Document:

Exhibit 4.1

 

Execution Version

 

 

NYSE EURONEXT

 

to

 

WILMINGTON TRUST COMPANY,

as Trustee

 

and

 

CITIBANK, N.A.,

as Authenticating Agent, Calculation Agent, Paying Agent,

Security Registrar and Transfer Agent

 

 

Second Supplemental Indenture

Dated as of October 5, 2012

 

to Senior Indenture

Dated as of May 29, 2008

 

Establishing a series of Securities designated

2.000% Notes due 2017

 

 

SECOND SUPPLEMENTAL INDENTURE, dated as of October 5, 2012 (herein called the “Second Supplemental Indenture”), between NYSE Euronext, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company”), and Wilmington Trust Company, as Trustee under the Original Indenture referred to below (hereinafter called the “Trustee”).

 

WITNESSETH:

 

WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture dated as of May 29, 2008 (herein called the “Original Indenture”), to provide for the issuance from time to time in one or more series of its debentures, notes, bonds or other evidences of indebtedness (herein called the “Securities”), the form and terms of which are to be established as set forth in Sections 201 and 301 of the Original Indenture;

 

WHEREAS, Section 901 of the Original Indenture provides, among other things, that the Company and the Trustee may enter into indentures supplemental to the Original Indenture to, among other things, establish the form and terms of the Securities of any series as permitted in Sections 201 and 301 of the Original Indenture;

 

WHEREAS, the Company desires to create a series of the Securities in an aggregate principal amount of $850,000,000 to be designated the “2.000% Notes due 2017” (herein called the “Senior Notes”) and all action on the part of the Company necessary to authorize the issuance of the Senior Notes under the Original Indenture and this Second Supplemental Indenture has been duly taken;

 

 

 

 

WHEREAS, the Company desires to issue the Senior Notes in accordance with Section 2.3 of this Second Supplemental Indenture and treat the Senior Notes as a single series of Securities for all purposes, as amended or supplemented from time to time in accordance with the terms of this Second Supplemental Indenture and the Original Indenture;

 

WHEREAS the Company has appointed Citibank, N.A., a national banking association duly organized and existing under the laws of the United States of America, as Authenticating Agent (the “Authenticating Agent”), Calculation Agent (the “Calculation Agent”), Paying Agent (the “Paying Agent”), Security Registrar (the “Security Registrar”), and Transfer Agent (the “Transfer Agent”) pursuant to the Paying Agency Agreement, dated as of May 29, 2008 (as supplemented, modified and amended from time to time), among the Company, the Authenticating Agent and the Trustee; and

 

WHEREAS, all acts and things necessary to make the Senior Notes, when executed by the Company and completed, authenticated and delivered by the Trustee as provided in the Original Indenture and this Second Supplemental Indenture, the valid and binding obligations of the Company and to constitute a valid and binding supplemental indenture and agreement according to its terms, have been done and performed.

 

NOW, THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE WITNESSETH:

 

That in consideration of the premises and of the acceptance and purchase of the Senior Notes by the Holders thereof and of the acceptance of this trust by the Trustee, the Company covenants and agrees with the Trustee, for the equal benefit of Holders of the Senior Notes, as follows:

 

 

ARTICLE ONE

 

DEFINITIONS

 

Except to the extent such terms are otherwise defined in this Second Supplemental Indenture or the context clearly requires otherwise, all terms used in this Second Supplemental Indenture which are defined in the Original Indenture or the form of Senior Note attached hereto as Exhibit A, have the meanings assigned to them therein.

 

In addition, as used in this Second Supplemental Indenture, the following terms have the following meanings:

 

“Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the Redemption Date.

 

“Attributable Debt” with regard to a Sale and Lease-Back Transaction with respect to any Principal Property means, at the time of determination, the present value of the total net amount of rent required to be paid under such lease during the remaining term thereof (including any period for which such lease has been extended), discounted at the rate of interest set forth or implicit in the terms of such lease (or, if not practicable to determine such rate, the weighted average interest rate per annum borne by the securities of all series then Outstanding under the Original Indenture and this Second Supplemental Indenture) compounded semi-annually. In the 

 

 

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case of any lease which is terminable by the lessee upon the payment of a penalty, such net amount shall be the lesser of (x) the net amount determined assuming termination upon the first date such lease may be terminated (in which case the net amount shall also include the amount of the penalty, but shall not include any rent that would be required to be paid under such lease subsequent to the first date upon which it may be so terminated) or (y) the net amount determined assuming no such termination.

 

“Bankruptcy Law” means Title 11, U.S. Code or any similar Federal or state law for the relief of debtors (or any law involving equivalent concepts applicable outside the United States of America).

 

“Below Investment Grade Rating Event” means the Senior Notes are rated below an Investment Grade Rating by each of the Rating Agencies on any date during the period commencing 60 days prior to the date of the first public notice of an arrangement that could result in a Change of Control and ending at the end of the 60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Senior Notes is under publicly announced consideration for possible downgrade by any of the Rating Agencies); provided that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Triggering Event hereunder) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Holders of the Senior Notes in writing at their request that the reduction was the result, in whole or in part, of any event or circumstance comprising or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating Event).  

 

“Capital Stock” means (i) in the case of a corporation or a company, corporate stock or shares; (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; (iii) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and (iv) any other interest or participation that confers on a person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing person.

 

“Change of Control” means the occurrence of any of the following: (1) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its Subsidiaries taken as a whole to any Person or group of related persons for purposes of Section 13(d) of the Exchange Act (a “Group”) other than the Company or one of its Subsidiaries; (2) the approval by the holders of the Company’s common stock of any plan or proposal for the liquidation or dissolution of the Company; (3) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any Person or Group becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding number of shares of the Company’s voting stock; or (4) the first day on which a majority of the members of the Company’s Board of Directors are not Continuing Directors.

 

 

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“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event occurring in respect of that Change of Control.

 

“Comparable Treasury Issue” means the United States Treasury security selected by a Reference Treasury Dealer selected by the Company as having a maturity comparable to the remaining term of the Senior Notes to be redeemed that would be used, at the time of selection and under customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Senior Notes.

 

 

“Comparable Treasury Price” means, with respect to any Redemption Date, the average of the Reference Treasury Dealer Quotations for that Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or if the Calculation Agent is provided fewer than four Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations.

 

 

“Continuing Directors” means, as of any date of determination, any member of the Company’s Board of Directors who (1) was a member of such Board of Directors on the date of the issuance of the Senior Notes; or (2) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election (either by a specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election as a director, without objection to such nomination).

 

 

“Definitive Securities” means certificated Securities registered in the name of the Holder thereof and issued in accordance with Section 2.2(b) hereof, substantially in the form of Exhibit A hereto, except that such Security shall not bear the Global Security Legend.

 

“Depositary” means DTC, together with any Person succeeding thereto by merger, consolidation or acquisition of all or substantially all of its assets, including substantially all of its securities payment and transfer operations.

 

“DTC” means The Depository Trust Company, having a principal office at 55 Water Street, New York, New York 10041-0099.

 

“Global Security Legend” means the legend set forth in Section 204 of the Original Indenture.

 

“Indebtedness” means any indebtedness (whether being principal, premium, interest or other amounts) for or in respect of any notes, bonds, debentures, debenture stock, loan stock or other securities or any borrowed money or any liability under or in respect of any acceptance or acceptance credit.

 

“Indirect Participant” means a Person who holds a beneficial interest in a Global Security through a Participant.

 

“Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P.

 

 

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“Issue Date” means October 5, 2012, the date on which the Senior Notes are originally issued under this Second Supplemental Indenture.

 

“Lien” means any lien, mortgage, deed of trust, hypothecation, pledge, security interest, charge or encumbrance of any kind.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Non-U.S. Person” means any corporation, partnership, individual or fiduciary that is, as to the United States of America, a foreign corporation, a non-resident alien individual who has not made a valid election to be treated as a United States resident, a non-resident fiduciary of a foreign estate or trust, or a foreign partnership, one or more of the members of which is, as to the United States of America, a foreign corporation, a non-resident alien individual or a non-resident fiduciary of a foreign estate or trust.

 

“Participant” means, with respect to the Depositary, a Person who has an account with the Depositary.

 

“Person” means any individual, firm, corporation, partnership, association, joint venture, tribunal, trust, government or political subdivision or agency or instrumentality thereof, or any other entity or organization and includes a “person” as used in Section 13(d)(3) of the Exchange Act.

 

“Principal Property” means the land, improvements, buildings, fixtures and equipment (including any leasehold interest therein) constituting a corporate office, facility or other asset which is owned or leased by the Company or any of its Significant Subsidiaries unless the Company’s Board of Directors has determined in good faith that such office or facility is not of material importance to the total business conducted by the Company and its Significant Subsidiaries taken as a whole. With respect to any Sale and Lease-Back Transaction or series of related Sale and Lease-Back Transactions, the determination of whether any property is a Principal Property shall be determined by reference to all properties affected by such transaction or series of transactions.

 

“Rating Agencies” means (1) each of Moody’s and S&P; and (2) if any of Moody’s or S&P ceases to rate the Senior Notes or fails to make a rating of the Senior Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as certified by an executive officer of the Company) as a replacement agency for Moody’s or S&P, or both of them, as the case may be.

 

“Redemption Date” means the Tax Redemption Date or the Optional Redemption Date, as applicable.

 

“Redemption Price” means the Tax Redemption Price or the Optional Redemption Price, as applicable.

 

“Reference Treasury Dealer” means each of Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and SG Americas Securities, LLC and their respective successors and any other primary U.S. government securities dealer in New York City the Company selects. If any of the 

 

 

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foregoing ceases to be a primary U.S. government securities dealer in New York City, the Company must substitute another primary U.S. government securities dealer in New York City.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company and the Calculation Agent by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day before the Redemption Date.

 

 

“Regular Record Date” means the March 20 and September 20, whether or not a Business Day, immediately preceding the applicable Interest Payment Date.

 

 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

 

“Sale and Lease-Back Transaction” means any arrangement with any person providing for the leasing by the Company or any of its Significant Subsidiaries of any Principal Property, whether now owned or hereafter acquired, which Principal Property has been or is to be sold or transferred by the Company or such Significant Subsidiary to such person.

 

“Senior Notes” has the meaning given to such term in the preamble hereof.

 

“Significant Subsidiary” with respect to any person, means any Subsidiary of such person that satisfies the criteria for a “significant subsidiary” set forth in Rule l-02(w) of Regulation S-X under the Exchange Act.

 

“Subsidiary” means any corporation, limited liability company or other similar type of business entity in which the Company and/or one or more of its subsidiaries together own more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of the board of directors or similar governing body of such corporation, limited liability company or other similar type of business entity, directly or indirectly.

 

ARTICLE TWO

 

TERMS AND ISSUANCE OF THE 2.000% NOTES DUE 2017

 

Section 2.1. Issue of Senior Notes. A series of Securities which shall be designated the “2.000% Notes due 2017” shall be executed, authenticated and delivered in accordance with the provisions of, and shall in all respects be subject to, the terms, conditions and covenants of, the Original Indenture and this Second Supplemental Indenture (including the form of Senior Notes set forth hereto as Exhibit A). The aggregate principal amount of Senior Notes which may be authenticated and delivered under this Second Supplemental Indenture shall not, except as permitted by the provisions of the Original Indenture, initially exceed $850,000,000; provided that the Company may from time to time or at any time, without the consent of the Holders of the Senior Notes, issue additional Senior Notes, which additional Senior Notes shall increase the aggregate principal amount of, and shall be consolidated and form a single series with, the Senior Notes.

 

 

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Section 2.2. Form of Senior Notes; Incorporation of Terms. (a) The Senior Notes shall be issued initially in the form of one or more Global Securities and, together with the Authenticating Agent’s certificate of authentication thereon, shall be in substantially the form set forth in Exhibit A attached hereto. The Senior Notes may have such notations, legends or endorsements approved as to form by the Company and required, as applicable, by law, stock exchange or depository rules and agreements to which the Company is subject and/or usage. The terms of the Senior Notes set forth in Exhibit A are herein incorporated by reference and are part of the terms of this Second Supplemental Indenture. The Senior Notes shall be issuable in definitive, fully registered form without coupons only in minimum denominations of $2,000 and any integral multiples of $1,000 in excess thereof.

 

(b) Senior Notes issued in global form shall be substantially in the form of Exhibit A attached hereto (including the Global Security Legend thereon). Senior Notes issued in definitive certificated form in accordance with the terms of the Original Indenture and the Supplemental Indenture, if any, shall be substantially in the form of Exhibit A attached hereto (but without the Global Security Legend thereon). Each Global Security shall represent such of the outstanding Senior Notes as shall be specified therein and each shall provide that it shall represent the aggregate principal amount of Outstanding Senior Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Senior Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Security to reflect the amount of any increase or decrease in the aggregate principal amount of Outstanding Senior Notes represented thereby shall be made by the Transfer Agent in accordance with instructions given by the Holder thereof as required by Section 2.7 hereof.

 

Section 2.3. Execution and Authentication. The Authenticating Agent, upon a Company Order and pursuant to the terms of the Original Indenture and this Second Supplemental Indenture, shall authenticate and deliver Senior Notes for original issue in an initial aggregate principal amount of $850,000,000. Such Company Order shall specify the amount of the Senior Notes to be authenticated, the date on which the original issue of Senior Notes is to be authenticated and the aggregate principal amount of Senior Notes outstanding on the date of authentication. All of the Senior Notes issued under this Second Supplemental Indenture shall be treated as a single series for all purposes under the Original Indenture and this Second Supplemental Indenture, including, without limitation, waivers, amendments and offers to purchase.

 

Section 2.4. Depositary for Global Securities. The Depositary for the Senior Notes issued under this Second Supplemental Indenture shall be DTC in the City of New York.

 

Section 2.5. Place of Payment. The Place of Payment in respect of the Senior Notes will be at the principal office or agency of the Company in The City of New York, State of New York or at the office or agency of the Paying Agent in The City of New York, State of New York, which, at the date hereof, is located at c/o Citibank, N.A., 111 Wall Street, 15th Floor Window, New York, NY 10005, Attention: Corporate Trust Services – NYSE Euronext 2.000% Notes due 2017.

 

Section 2.6. Transfer and Exchange.

 

 

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(a) The transfer and exchange of beneficial interests in the Global Securities shall be effected through the Depositary, in accordance with the provisions of the Original Indenture, this Second Supplemental Indenture and the then applicable procedures of the Depositary (the “Applicable Procedures”). In connection with all transfers and exchanges of beneficial interests, the transferor of such beneficial interest must deliver to the Transfer Agent either (A)(1) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to credit or cause to be credited a beneficial interest in another Global Security in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with such increase or, if Definitive Securities are at such time permitted to be issued pursuant to this Second Supplemental Indenture and the Original Indenture, (B)(1) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to cause to be issued a Definitive Security in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given by the Depositary to the Security Registrar containing information regarding the Person in whose name such Definitive Security shall be registered to effect the transfer or exchange referred to in (1) above. Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global Securities contained in the Original Indenture, this Second Supplemental Indenture and the Senior Notes or otherwise applicable under the Securities Act, the Security Registrar shall adjust the principal amount of the relevant Global Securities pursuant to Section 2.7 hereof.

 

(b) Upon request by a Holder of Definitive Securities and such Holder’s compliance with the provisions of this Section 2.6(b), the Security Registrar shall register the transfer or exchange of Definitive Securities. Prior to such registration of transfer or exchange, the requesting Holder shall present or surrender to the Transfer Agent the Definitive Securities duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Security Registrar duly executed by such Holder or by its attorney, duly authorized in writing. The Authenticating Agent shall cancel any such Definitive Securities so surrendered, and the Company shall execute and, upon receipt of a Company Order pursuant to Section 303 of the Original Indenture, the Authenticating Agent shall authenticate and deliver to the Person designated in the instructions a new Definitive Security in the appropriate principal amount. Any Definitive Security issued pursuant to this Section 2.6(b) shall be registered in such name or names and in such authorized denomination or denominations as the Holder of such beneficial interest shall instruct the Security Registrar through instructions from the Depositary and the Participant or Indirect Participant. The Paying Agent shall deliver such Definitive Securities to the Persons in whose names such Definitive Securities are so registered. In addition, the requesting Holder shall provide any additional certifications, documents and information, as applicable, required pursuant to Section 305 of the Original Indenture.

 

Section 2.7 Cancellation and/or Adjustment of Global Securities. At such time as all beneficial interests in a particular Global Security have been exchanged for Definitive Securities or a particular Global Security has been redeemed, repurchased or canceled in whole and not in part, each such Global Security shall be returned to or retained and canceled by the Security Registrar in accordance with Section 309 of the Original Indenture. At any time prior to such cancellation, if any beneficial interest in a Global Security is exchanged for or transferred to a 

 

  

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Person who will take delivery thereof in the form of a beneficial interest in another Global Security or for Definitive Securities, the principal amount of Securities represented by such Global Security shall be reduced accordingly and an endorsement shall be made on such Global Security by the Security Registrar or by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Security, such other Global Security shall be increased accordingly and an endorsement shall be made on such Global Security by the Security Registrar or by the Depositary at the direction of the Security Registrar to reflect such increase.

 

Section 2.8. Events of Default. The provisions of Section 501 of the Original Indenture shall be applicable to the Senior Notes; provided, however, that clauses (1), (2), (3), (5), (6), (7) and (8) of Section 501 shall now read as follows:

 

“(1) default in the payment of any interest or Additional Amounts upon any Senior Note when it becomes due and payable and the default continues for a period of 30 days;

 

(2) default in the payment of the principal of or premium, if any, on any Senior Note at its Maturity, upon acceleration, upon redemption or otherwise (including the failure to make a payment to purchase the Senior Notes tendered pursuant to a Change of Control Offer);

 

(3) a default in the performance, or breach, of the Company’s obligations under Section 801 of the Original Indenture;

 

(4) a default on any Indebtedness of the Company or any of its Significant Subsidiaries having an aggregate amount of at least $100,000,000, constituting a default either of payment of principal or which results in acceleration of the Indebtedness, and after the Company has been notified of the default by the Trustee or Holders of 25% in principal amount of the Senior Notes the Company does not cure the default within 10 days;

 

(5) one or more final judgments for the payment of money in an aggregate amount in excess of $100,000,000 above available insurance coverage shall be rendered against the Company or any of its Significant Subsidiaries and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not be effectively stayed, but only if such judgment is an event of default at that time under any of the Company’s credit facilities in place on the date hereof (the “Existing Facilities”) or any credit facility that the Company enters into to replace an Existing Facility at its maturity or otherwise;

 

(6) the entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Company or any of its Significant Subsidiaries in an involuntary case or proceeding under any applicable Bankruptcy Law, insolvency, reorganization or other similar law or (B) a decree or order adjudging the Company or any of its Significant Subsidiaries as bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company or any of its Significant Subsidiaries under any applicable Bankruptcy Law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or any of its Significant Subsidiaries or of any substantial part of its or their property, or ordering the winding up or liquidation of its or their affairs, and the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect for a period of 60 consecutive days; and

 

  

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(7) the commencement by the Company or any of its Significant Subsidiaries of a voluntary case or proceeding under any applicable Bankruptcy Law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it or them to the entry of a decree or order for relief in respect of the Company or any of its Significant Subsidiaries in an involuntary case or proceeding under any applicable Bankruptcy Law, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it or them, or the filing by it or them of a petition or answer or consent seeking reorganization or relief under any applicable Federal or State law, or the consent by it or them to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or any of its Significant Subsidiaries or of any substantial part of its or their property, or the making by it or them of an assignment for the benefit of creditors, or the admission by it or them in writing of its or their inability to pay its or their debts generally as they become due, or the taking of corporate action by the Company or any of its Significant Subsidiaries in furtherance of any such action.”

 

Section 2.9. Company May Consolidate, Etc., Only on Certain Terms. The provisions of Section 801 of the Original Indenture shall be applicable to the Senior Notes; provided, however, that clause (3) shall now read as follows: “the Company has delivered to the Trustee and the Paying Agent an Officers’ Certificate stating that such consolidation, merger, conveyance, transfer or lease comply with this Article.”

 

Section 2.10. Limits on Exchange or Transfer of a Global Security. The provisions of clause (2)(C) of Section 305 of the Original Indenture shall not apply to the Senior Notes.

 

ARTICLE THREE

 

COVENANTS

 

Section 3.1. Offer to Repurchase upon Change of Control.

 

(a) Upon the occurrence of a Change of Control Triggering Event with respect to the Senior Notes, unless the Company shall have exercised its right pursuant to Article Four hereof to redeem the Senior Notes, each Holder of the Notes shall have the right to require the Company to repurchase all or, at the Holder’s option, any part (equal to $2,000 or any integral multiple of $1,000 in excess thereof), of such Holder’s Senior Notes (a “Change of Control Offer”) for payment in cash equal to 101% of the aggregate principal amount of the Senior Notes repurchased plus accrued but unpaid interest, if any, on the Senior Notes to be repurchased, to, but excluding, the change in control payment date (the “Change of Control Payment”).

 

(b) Within 30 days following any Change of Control Triggering Event with respect to the Senior Notes, the Company shall cause a notice to be mailed to Holders of the Senior Notes, with a copy to the Trustee and the Paying Agent for the Notes, describing the transaction or transactions that constitute the Change of Control Triggering Event and offering to repurchase the Senior Notes on the date specified in the notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”), pursuant to the procedures required by the Senior Notes and described in such notice. The Company shall comply with the requirements of applicable securities laws and regulations 

 

  

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in connection with the repurchase of the Securities of such series as a result of a Change of Control Triggering Event.

 

(c) On the Change of Control Payment Date, the Company shall, to the extent lawful:

 

(i) accept for payment all Senior Notes or portions of Senior Notes properly tendered pursuant to the Change of Control Offer;

 

(ii) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Senior Notes or portions of Senior Notes properly tendered; and

 

(iii) deliver or cause to be delivered to the Paying Agent the Senior Notes properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Senior Notes or portions of Senior Notes being purchased by the Company.

 

(d) The Paying Agent shall promptly mail, to each Holder who properly tendered Senior Notes, the Change of Control Payment for such Senior Notes, and the Authenticating Agent shall promptly authenticate and mail (or cause to be transferred by book entry) to each such Holder a new Senior Note equal in principal amount to any unpurchased portion of the Senior Notes surrendered, if any; provided that each new Senior Note will be in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof.

 

(e) The Company shall not be required to make a Change of Control Offer upon a Change of Control Triggering Event if a third party makes a Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Second Supplemental Indenture applicable to a Change of Control Offer made by the Company and purchases all Senior Notes properly tendered and not withdrawn under such Change of Control Offer. In the event that such third party terminates or defaults its Change of Control Offer, the Company shall be required to make a Change of Control Offer treating the date of such termination or default as though it were the date of the Change of Control Triggering Event.

 

(f) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations to the extent such laws and regulations are applicable in connection with the repurchase of Senior Notes as a result of a Change of Control Triggering Event. To the extent that the provision of any such securities laws or regulations conflicts with this Section 3.1, the Company shall comply with those securities laws and regulations and shall not be deemed to have breached its obligations under this Section 3.1 by virtue of any such conflict.

 

Section 3.2. Additional Amounts. The Company shall pay to any Holder (including, for purposes of this Section 3.2, any beneficial owner) of any Senior Notes who is a Non-U.S. Person such additional amounts as may be necessary so that every net payment of principal of and interest on the Senior Notes to such Holder, after deduction or withholding for or on account of any present or future tax, assessment or other governmental charge imposed upon such Holder by the United States of America or a political subdivision or any taxing authority thereof or therein, will not be less than the amount provided in the Senior Notes to be then due and payable (such amounts, the “Additional Amounts”); provided, however, that the Company shall not be required to make any payment of Additional Amounts for or on account of:

 

  

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(a) any tax, assessment or other governmental charge that would not have been imposed but for (1) the existence of any present or former connection between such Holder, or between a fiduciary, settlor, beneficiary of, member or shareholder of, or possessor of a power over, such Holder, if such Holder is an estate, trust, partnership or corporation, and the United States of America including, without limitation, such Holder, or such fiduciary, settlor, beneficiary, member, shareholder or possessor, being or having been a citizen or resident of the United States of America or treated as a resident thereof or being or having been engaged in trade or business or present in the United States of America, or (2) the presentation of any Senior Note for payment on a date more than 30 days after the later of (x) the date on which such payment becomes due and payable and (y) the date on which payment thereof is duly provided for;

 

(b) any estate, inheritance, gift, sales, transfer, excise, personal property or similar tax, assessment or other governmental charge;

 

(c) any tax, assessment or other governmental charge imposed on foreign personal holding company income or by reason of such Holder’s past or present status as a passive foreign investment company, a controlled foreign corporation or a personal holding company with respect to the United States of America, or as a corporation which accumulates earnings to avoid United States federal income tax;

 

(d) any tax, assessment or other governmental charge which is payable otherwise than by withholding from payment of principal of or interest on such Holder’s Senior Notes;

 

(e) any tax, assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of or interest on the Senior Notes if such payment can be made without withholding by any other paying agent;

 

(f) any tax, assessment or other governmental charge which would not have been imposed but for the failure to comply with certification, information, documentation or other reporting requirements concerning the nationality, residence, identity or connections with the United States of America of any Holder of the Senior Notes, if such compliance is required by statute or by regulation of the U.S. Treasury Department as a precondition to relief or exemption from such tax, assessment or other governmental charge;

 

(g) any tax, assessment or other governmental charge imposed on interest received by (1) a 10% shareholder (as defined in Section 871(h)(3)(B) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), and the regulations that may be promulgated thereunder) of the Company or (2) a controlled foreign corporation with respect to the Company within the meaning of the Code;

 

(h) any withholding or deduction that is imposed on a payment to an individual and is required to be made pursuant to European Union Directive 2003/48/EC relating to the taxation of savings adopted on June 3, 2003 by the European Union’s Economic and Financial Affairs Council, or any law implementing or complying with, or introduced in order to conform to, such Directive; or

 

(i) any combination of items (a), (b), (c), (d), (e), (f), (g) and (h) in this Section 3.2;

 

nor shall any Additional Amounts be paid to any Holder who is a fiduciary or partnership to the extent that a beneficiary or settlor with respect to such fiduciary or a member of such partnership 

 

  

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or a beneficial owner thereof, would not have been entitled to the payment of such Additional Amounts had such beneficiary, settlor, member or beneficial owner been the Holder.

 

Section 3.3. Limitations on Liens. The Company shall not (nor shall it permit any of its Significant Subsidiaries to) create or permit to exist any Lien on any Principal Property of the Company or any of its Significant Subsidiaries (or any stock or Indebtedness of any of its Significant Subsidiaries), whether such Principal Property, or stock or Indebtedness is now existing or owned or hereafter acquired, to secure any Indebtedness, unless the Company shall contemporaneously secure the Senior Notes equally and ratably with (or, at the option of the Company, prior to) such secured Indebtedness.

 

The foregoing restriction, however, will not apply to the following “Permitted Liens”:

 

(a) Liens imposed by law or any governmental authority for taxes, assessments or charges that are not yet due or are being contested in good faith by appropriate proceedings or for commitments that have not been violated;

 

(b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and similar Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than 30 days or where the validity or amount thereof is being contested in good faith by appropriate proceedings;

 

(c) pledges and deposits made in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations;

 

(d) 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, in each case in the ordinary course of business;

 

(e) judgment Liens in respect of judgments that do not constitute an event of default under the Original Indenture or this Second Supplemental Indenture;

 

(f) Liens resulting in the ordinary course of the operations of the Company or any Significant Subsidiary relating to clearing or settlement activities, provided that at any time the aggregate amount of any such given Lien does not exceed the aggregate amount of deposits of cash or securities received from third parties by the Company or any Significant Subsidiary in the ordinary course of operations relating to clearing or settlement activities;

 

(g) Liens on (1) any property or asset prior to the acquisition thereof, provided that such Lien may only extend to such property or asset, or (2) property of a Significant Subsidiary where (A) such Significant Subsidiary becomes a Subsidiary after October 1, 2012, (B) the Lien exists at the time such Significant Subsidiary becomes a Subsidiary, (C) the Lien was not created in contemplation of such Significant Subsidiary becoming a Subsidiary, and (D) the principal amount secured by the Lien at the time such Significant Subsidiary becomes a Subsidiary is not subsequently increased or extended to any other assets other than those owned by the entity becoming a Subsidiary;

 

(h) any Lien existing on October 1, 2012;

 

(i) Liens upon real and/or tangible personal property acquired after October 1, 2012 (by purchase, construction or otherwise) by the Company or any Significant Subsidiary, each of 

 

  

13

  

 

which Liens was created for the purpose of securing Indebtedness representing, or incurred to finance, refinance or refund, the cost (including the cost of construction or improvement) of such property; provided that no such Lien shall extend to or cover any property other than the property so acquired and improvements thereon;

 

(j) Liens in favor of the Company or any Subsidiary;

 

(k) Liens arising from the sale of accounts receivable for which fair equivalent value is received;

 

(l) any extension, renewal or replacement (or successive extensions, renewals or replacements) in whole or in part, of any Liens referred to in the foregoing clauses (g), (h) and (i); provided that the principal amount of Indebtedness secured thereby and not otherwise authorized by this Section 3.3 shall not exceed the principal amount of Indebtedness, plus any premium or fee payable in connection with any such extension, renewal or replacement, so secured at the time of such extension, renewal or replacement;

 

(m) Liens securing obligations of the Company or any Subsidiary in respect of any swap agreements entered into in the ordinary course of business and for non-speculative purposes;

 

(n) easements, zoning restrictions, minor title imperfections, restrictions on use, rights of way and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of the Company or any Subsidiary;

 

(o) Liens on cash or securities received from third parties by the Company and its Subsidiaries in the ordinary course of clearing, depository and settlement operations that are granted to secure obligations incurred by the Company or any Subsidiary in the ordinary course of clearing, depository and settlement operations; provided that at any time the aggregate amount of obligations secured by such Liens incurred pursuant to this clause (o) do not exceed the aggregate amount of such cash or securities; and

 

(p) Liens on securities sold by the Company or any Subsidiary in repurchase agreements, reverse repurchase agreements, sell buy back and buy sell back agreements, securities lending and borrowing agreements and any other similar agreement or transaction entered into in the ordinary course of clearing, depository and settlement operations or in the management of liabilities.

 

Section 3.4. Limitation on Sale and Lease-Back Transactions. The Company shall not, and shall not permit any of its Significant Subsidiaries to, enter into any Sale and Lease-Back Transaction with respect to any Principal Property, other than any such Sale and Lease-Back Transaction involving a lease for a term of not more than three years or any such Sale and Lease-Back Transaction between the Company and one of its Subsidiaries or between its Subsidiaries, unless:

 

(a) the Company or such Significant Subsidiary, as applicable, could have incurred Indebtedness secured by a Lien on the Principal Property involved in such Sale and Lease-Back Transaction in an amount at least equal to the Attributable Debt with respect to such Sale 

 

  

14

  

 

and Lease-Back Transaction, without equally and ratably securing the Senior Notes, pursuant to Section 3.3; or

 

(b) the proceeds of such Sale and Lease-Back Transaction are at least equal to the fair market value of the affected Principal Property (as determined in good faith by the Board of Directors) and the Company applies an amount equal to the net proceeds of such Sale and Lease-Back Transaction within 365 days of such Sale and Lease-Back Transaction to any (or a combination) of:

 

(i) the prepayment or retirement of the Senior Notes,

 

(ii) the prepayment or retirement (other than any mandatory retirement, mandatory prepayment or sinking fund payment or by payment at maturity) of other Indebtedness of the Company or of one of its Subsidiaries (other than Indebtedness that is subordinated to the Senior Notes or Indebtedness owed to the Company or one of its Subsidiaries) that matures more than 12 months after its creation; or

 

(iii) the purchase, construction, development, expansion or improvement of other comparable property.

 

ARTICLE FOUR

 

REDEMPTION

 

Section 4.1.  Redemption Upon a Tax Event.  The Senior Notes may be redeemed (the “Tax Event Redemption”), in accordance with the procedures set forth in the Original Indenture, at the option of the Company, in whole, but not in part, on a date (such date, the “Tax Redemption Date”) to be fixed by the Company on not more than 60 days’ and not less than 30 days’ prior written notice, at a redemption price (the “Tax Redemption Price”) equal to 100% of the principal amount of the Senior Notes plus accrued but unpaid interest, if any, and any Additional Amounts thereon to the Tax Redemption Date, if the Company determines that as a result of any change in or amendment to the laws, treaties, regulations or rulings of the United States of America or any political subdivision or taxing authority thereof, or any proposed change in such laws, treaties, regulations or rulings, or any change in the official application, enforcement or interpretation of such laws, treaties, regulations or rulings, including a holding by a court of competent jurisdiction in the United States of America, or any other action, other than an action predicated on laws generally known on or before October 1, 2012 except for proposals before the U.S. Congress before such date, taken by any taxing authority or a court of competent jurisdiction in the United States of America, or the official proposal of any such action, whether or not such action or proposal was taken or made with respect to the Company, (A) the Company has or will become obligated to pay Additional Amounts or (B) there is a substantial possibility that the Company will be required to pay such Additional Amounts.

 

Prior to the publication of any notice of Tax Event Redemption pursuant to Section 1104 of the Original Indenture, the Company shall, in addition to the notice required in Section 1102 of the Original Indenture, deliver to the Trustee and the Paying Agent (1) an Officers’ Certificate stating that the Company is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the rights of the Company to so redeem have occurred and (2) an Opinion of Counsel to such effect based on such statement of facts.

 

  

15

  

Section 4.2.  Optional Redemption.  The Senior Notes may be redeemed (an “Optional Redemption”), in accordance with the procedures set forth in the Original Indenture, at the option of the Company, in whole or from time to time in part, on a date (such date, the “Optional Redemption Date”) to be fixed by the Company on not more than 60 days’ and not less than 30 days’ prior written notice, at a redemption price as calculated by a Reference Treasury Dealer selected by the Company (the “Optional Redemption Price”) equal to accrued but unpaid interest, if any, on the principal amount of the Senior Notes being redeemed to the Optional Redemption Date plus the greater of (A) 100% of the principal amount of the Senior Notes to be redeemed and (B) the sum of the present values of the remaining scheduled payments of principal and interest on the Senior Notes to be redeemed (exclusive of interest accrued to the Optional Redemption Date) discounted to the Optional Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus 25 basis points.

 

 

Prior to the publication of any notice of Optional Redemption pursuant to Section 1104 of the Original Indenture, the Company shall deliver to the Trustee and the Paying Agent the notice required in Section 1102 of the Original Indenture.

 

Section 4.3.  Notice of Redemption.  If the Company elects to redeem the Senior Notes pursuant to this Article Four, then it shall give notice to the Holders pursuant to Section 1104 of the Original Indenture.

 

The notice of redemption shall specify the following:

 

(a) the Redemption Date;

 

(b) a brief statement to the effect that the Senior Notes are being redeemed at the option of the Company pursuant to this Article Four and, in the case of Tax Event Redemption, a brief statement of the facts permitting such redemption;

 

(c) that on the Redemption Date, the Redemption Price will become due and payable and that interest thereon shall cease to accrue on and after such Redemption Date;

 

(d) the amount of the Redemption Price that will be due and payable on the Senior Notes on the Redemption Date;

 

(e) the place or places where the Senior Notes are to be surrendered for payment of the Redemption Price;

 

(f) that payment of the amounts due under clause (d) above will be made upon presentation and surrender of the Senior Notes;

 

(g) the CUSIP and ISIN numbers of the Senior Notes; and

 

(h) in the case of Optional Redemption,

 

(i) if the Company is not redeeming all Outstanding Senior Notes, the aggregate principal amount of Senior Notes that the Company is redeeming and the aggregate principal amount of Senior Notes that will be Outstanding after the partial redemption, as well as the identification of the particular Senior Notes, or portions of the particular Senior Notes, that the Company is redeeming; and

 

  

16

  

(ii) if the Company is redeeming only part of a Senior Note, the notice that relates to such Senior Note shall state that on and after the Redemption Date, upon surrender of such Senior Note, the Holder will receive, without charge, a new Senior Note or Senior Notes of authorized denominations for the principal amount of the Senior Note remaining unredeemed.

 

The notice of redemption regarding the Senior Notes shall be, at the election of the Company, given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the Company.

 

Section 4.4.  Deposit of Redemption Price.  On or before the opening of business on any Redemption Date, the Company shall deposit with the Trustee or with the Paying Agent or, if the Company is acting as its own paying agent, segregate and hold in trust as provided in Section 1003 of the Original Indenture, an amount of money sufficient to pay the Redemption Price of the Senior Notes to be redeemed on the Redemption Date.

 

Section 4.5.  Senior Notes Payable on Redemption Date.  The notice of redemption having been given as specified in Section 4.3, the Senior Notes shall, on the Redemption Date, become due and payable at the Redemption Price, and from and after such date, unless the Company shall default in the payment of the Redemption Price, any Additional Amounts and accrued but unpaid interest, if any, the Senior Notes shall cease to bear interest. Upon surrender of the Senior Notes for redemption in accordance with such notice, the Senior Notes shall be paid by the Company at the Redemption Price.

 

If the Senior Notes, having been called for redemption, shall not be so paid upon surrender thereof for redemption, the Redemption Price shall, until paid, bear interest from the Redemption Date at the interest rate borne by the Senior Notes.

 

ARTICLE FIVE

 

MISCELLANEOUS

 

Section 5.1. Execution as Supplemental Indenture. This Second Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture and, as provided in the Original Indenture, this Second Supplemental Indenture forms a part thereof.

 

Section 5.2. Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof, or with a provision of the Original Indenture, which is required to be included in this Second Supplemental Indenture, or in the Original Indenture, respectively, by any of the provisions of the Trust Indenture Act, such required provision shall control to the extent it is applicable.

 

Section 5.3. Effect of Headings. The Article and Section headings herein are for convenience only and shall not affect the construction hereof.

 

Section 5.4. Successors and Assigns. All covenants and agreements by the Company and the Trustee in this Second Supplemental Indenture shall bind its successors and assigns, whether so expressed or not.

 

  

17

  

Section 5.5. Separability Clause. In case any provision in this Second Supplemental Indenture or in the Senior Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 5.6. Benefits of Second Supplemental Indenture. Nothing in this Second Supplemental Indenture or in the Senior Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim under this Second Supplemental Indenture.

 

Section 5.7. Execution and Counterparts. This Second Supplemental Indenture may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

Section 5.8. Governing Law. This Second Supplemental Indenture and the Senior Notes shall be governed by and construed in accordance with the laws of the State of New York.

 

  

18

  

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

 

	
NYSE EURONEXT

	 
	  	  	 
	
By

	  	

/s/ Philippe Matsumoto

	 
	
Name:

	  	
Philippe Matsumoto

	 
	
Title:

	  	
Senior Vice President & Group Treasurer

	 
	  	 
	
WILMINGTON TRUST COMPANY,

as Trustee

	 
	  	  	 
	
By

	  	

/s/ Geoffrey J. Lewis

	 
	
Name:

	  	
Geoffrey J. Lewis

	 
	
Title:

	  	
Assistant Vice President

	 

 

Acknowledged:

 

	
CITIBANK, N.A.

as initial Authenticating Agent, Calculation Agent, Paying Agent, Security Registrar and Transfer Agent

	  	  
	
By

	  	

/s/ Cirino Emanuele

	
Name:

	  	
Cirino Emanuele

	
Title:

	  	
Vice President

 

 

  

19

  

 

 

EXHIBIT A

 

[FORM OF 2.000% NOTES DUE 2017]

 

[Insert any legend required by the Internal Revenue Code and the regulations thereunder.]

 

[THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.]

 

NYSE Euronext

 

2.000% Notes due 2017

 

	  	  	  
	
No.            

	
  

	
$            

 

      CUSIP No. 629491 AB7

          ISIN US629491AB74

 

NYSE Euronext, a corporation duly organized and existing under the laws of the State of Delaware (herein called the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to [Cede & Co.], or registered assigns, the principal sum of              Dollars on October 5, 2017, and to pay interest thereon from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on April 5 and October 5 in each year, commencing April 5, 2013 and at the Maturity thereof, at the rate of 2.000% per annum, until the principal hereof is paid or made available for payment, provided that any principal and premium, and any such installment of interest, which is overdue shall bear interest at the rate of 2.000% per annum (to the extent that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand. Interest on this Security shall accrue from the most recent Interest Payment Date, or, if no interest has been paid, from and including the Issue Date. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security is registered at the close of business on the Regular Record Date for such interest, which shall be March 20 or September 20 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest so payable, but not punctually paid or duly provided for, on any Interest Payment Date will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Paying Agent, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the 

 

  

A-1

  

 

requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

 

Payment of the principal of (and premium, if any) and any such interest on this Security will be made at the office or agency maintained for that purpose in New York, New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, against surrender of this Security in the case of any payment due at the Maturity of the principal hereof (other than any payment of interest that first becomes payable on a day other than an Interest Payment Date); provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register; and provided, further, that if this Security is a Global Security, payment may be made pursuant to the Applicable Procedures of the Depositary as permitted in the Indenture.

 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has been executed by the Trustee or the Authenticating Agent on its behalf referred to on the reverse hereof by manual or facsimile signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

  

A-2

  

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

	
NYSE EURONEXT

	 
	  	  	 
	
By:

	 	 	 
	
Name:

	  	
Philippe Matsumoto

	 
	
Title:

	  	
Senior Vice President & Group Treasurer

	 

 

	  	  	  	  	  
	  	  	  	  	
 

	
Attest:

 

	  	  
	
Name:

	  	
Janet L. McGinness

	  	  
	
Title:

	  	
Executive Vice President &

Corporate Secretary

	  	  

 

 

 

  

A-3

  

 

AUTHENTICATING AGENT’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated herein and referred to in the within-mentioned Indenture.

 

Dated:

 

	  	  	  
	
Citibank, N.A.,

not in its individual capacity but solely as Authenticating Agent

	  	  
	
By

	  	  
	  	  	
Authorized Signatory

 

 

  

A-4

  

[FORM OF REVERSE OF 2.000% NOTES DUE 2017]

 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), of the series hereinafter specified, issued and to be issued in one or more series under a Senior Indenture, dated as of May 29, 2008 as supplemented by the Second Supplemental Indenture, dated as of October 5, 2012 (as so supplemented, the “Indenture”), between the Company and Wilmington Trust Company, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which this Security are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof initially limited in aggregate principal amount to $850,000,000, provided that the Company may, without the consent of any Holder, at any time and from time to time increase the initial principal amount.

 

The Company shall be required to pay Additional Amounts to Holders which are Non-U.S. Persons under the circumstances specified in the Indenture.

 

The Securities are subject to redemption at the option of the Company, in whole, but not in part, on a date (such date, the “Tax Redemption Date”) to be fixed by the Company on not more than 60 days’ and not less than 30 days’ prior written notice, at a redemption price (the “Tax Redemption Price”) equal to 100% of the principal amount of the Securities plus accrued but unpaid interest, if any, and any Additional Amounts thereon to the Tax Redemption Date, if the Company determines that as a result of any change in or amendment to the laws, treaties, regulations or rulings of the United States of America or any political subdivision or taxing authority thereof, or any proposed change in such laws, treaties, regulations or rulings, or any change in the official application, enforcement or interpretation of such laws, treaties, regulations or rulings, including a holding by a court of competent jurisdiction in the United States of America, or any other action, other than an action predicated on laws generally known on or before October 1, 2012  except for proposals before the U.S. Congress before such date, taken by any taxing authority or a court of competent jurisdiction in the United States of America, or the official proposal of any such action, whether or not such action or proposal was taken or made with respect to the Company, (A) the Company has or will become obligated to pay Additional Amounts or (B) there is a substantial possibility that the Company will be required to pay such Additional Amounts.

 

The Securities are subject to redemption at the option of the Company, in whole or from time to time in part, on a date (such date, the “Optional Redemption Date”) to be fixed by the Company on not more than 60 days’ and not less than 30 days’ prior written notice, at a redemption price (such price, the “Optional Redemption Price”) equal to accrued but unpaid interest, if any, on the principal amount of the Senior Notes being redeemed to the Optional Redemption Date plus the greater of (A) 100% of the principal amount of the Securities to be redeemed and (B) the sum of the present values of the remaining scheduled payments of principal and interest on the Securities to be redeemed (not including any portion of such payments of interest accrued to the Optional Redemption Date) discounted to the Optional Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus 25 basis points.

 

  

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On or before the opening of business on any Redemption Date, the Company shall deposit with the Trustee or with the Paying Agent or, if the Company is acting as its own paying agent, segregate and hold in trust as provided in Section 1003 of the Indenture, an amount of money sufficient to pay the Redemption Price of the Securities to be redeemed on the Redemption Date.

 

The notice of redemption having been given as specified above, the Securities shall, on the Redemption Date, become due and payable at the Redemption Price, and from and after such date, unless the Company shall default in the payment of the Redemption Price, the Securities shall cease to bear interest. Upon surrender of the Securities for redemption in accordance with such notice, the Securities shall be paid by the Company at the Redemption Price.

 

If the Securities, having been called for redemption, shall not be so paid upon surrender thereof for redemption, the Redemption Price shall, until paid, bear interest from the Redemption Date at the interest rate borne by the Securities.

 

Upon the occurrence of a Change of Control Triggering Event (as defined in the Indenture), Holders of the Securities will have the right to require the Company to repurchase the Securities on the terms and conditions set forth in the Indenture.

 

The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security or certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture.

 

If an Event of Default with respect to the Securities of this series shall occur and be continuing, the unpaid principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions (i) permitting the Holders of not less than a majority in principal amount of the Securities of any series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture with respect to such series and (ii) permitting the Holders of a majority in principal amount of the Securities at the time Outstanding of any series to be affected under the Indenture (with each such series considered separately for this purpose), on behalf of the Holders of all Securities of such series, to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture, or for the appointment of a receiver or trustee, or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with 

 

  

A-6

  

 

respect to the Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee indemnity reasonably satisfactory to it, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.

 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

The Securities of this series are issuable only in registered form without coupons in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, the Securities of this series are exchangeable for a like aggregate principal amount of the Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same.

 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

[This Security is a Global Security and is subject to the provisions of the Senior Indenture relating to Global Securities, including the limitations in Section 305 thereof on transfers and exchanges of Global Securities, except as amended by Section 2.10 of the Second Supplemental Indenture.]

 

Interest on the principal balance of the Securities of this series shall be calculated on the basis of a 360-day year of twelve 30-day months.

 

  

A-7

  

THE SECURITIES OF THIS SERIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

All capitalized terms used but not defined in this Security shall have the meanings assigned to them in the Indenture. 

 

 

 

 

A-8ex10-9.htm

PURCHASE ORDER - TERMS AND CONDITIONS

1. CONTRACT.

(a) Each purchase order and purchase order revision (the “Order”) issued by GreenTech Automotive, Inc. (“Buyer”) is an offer to the Vendor named on the previous page (“Vendor” and  together the “Parties”) for the purchase of goods and/or services offered by Vendor, and includes and is governed by the express terms contained on the face of this Order, these Purchase Order - Terms and Conditions, the terms contained in any addendum or supplement to this Order issued by Buyer and accepted by Vendor  and any Release provided pursuant to Section 1(b) below (collectively, the “Terms”). Written acceptance of this Order by Vendor solely constitutes an acceptance by Buyer for the goods and products offered by Vendor subject to this Order (the “Goods”) or of the services offered by Vendor subject to Vendor’s quote and this Order (the “Services”). Any acceptance of this Order is limited to and conditional upon Vendor’s acceptance of the Terms. Any proposal for additional or different terms or any attempt by Vendor or Buyer to vary any of the Terms, whether in Vendor’s or Buyer’s quotation form, acknowledgement form, invoice, correspondence or otherwise, shall be deemed material and is hereby objected to and rejected, but any such proposal or attempted variance shall not operate as a rejection of this Order if Vendor accepts Buyer’s offer by commencement of work, shipment of the Goods or performance of the Services, or by other means acceptable to Buyer, in which case this Order shall be deemed accepted by Vendor without any additional or different terms or variations whatsoever. This Order does constitute an acceptance of any prior offer or proposal by Vendor, and any reference in this Order to any such prior offer or proposal (including any quotation issued by Vendor whether or not such quotation purports to contain Vendor’s terms of sale, if any) is solely to incorporate the description or specifications of the Goods and/or Services contained in such offer or proposal, but only to the extent that such description or specifications are not directly in conflict with the description and specifications contained in this Order. If this Order is found to be an acceptance of any prior offer or proposal by Vendor, such acceptance shall be limited to the Terms. Any additional or different terms in such prior offer or proposal shall be deemed material and are hereby objected to and rejected by Buyer. Buyer may cancel all or any part of this Order at any time prior to acceptance by Vendor.

(b) If an Order is placed by blanket purchase order, such blanket purchase order (a “Blanket Purchaser Order”) shall: (i) state on its face that it is a Blanket Purchase Order, (ii) identify an amount of time for fulfillment of the Blanket Purchase Order (the “Timeframe”), (iii) identify the quantity or quantities of Goods or Services that Buyer may purchase during such Timeframe (the “Blanket Quantity”), and (iv) identify the price(s) for such Blanket Quantity. Such Blanket Purchase Order may also give a specific delivery date for all or a portion of the Blanket Quantity. From time to time, the Buyer shall provide the Vendor a written notice (each, a “Release”) stating, (i) an amount of the Blanket Quantity to be delivered to Buyer, and (ii) the delivery location of such portion of the Blanket Quantity.  In addition to the other termination rights afforded the Buyer under this Purchase Order – Terms and Conditions, Buyer shall have the right to terminate all or a portion of the Blanket Purchase Order pursuant to Section 16(a) and shall only be liable for the amounts set forth in Section 16(d).

 

 

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(c) This Order contains the entire agreement between Buyer and Vendor and, except as otherwise expressly stated in this Order, supersedes all prior agreements, orders, quotations, proposals and other communications relating to the subject matter hereof, and there are no other understandings or agreements, verbal or otherwise, in relation hereto that exist between Buyer and Vendor. Notwithstanding the foregoing, any non-disclosure, noncompetition, non-solicitation or other similar restrictions in any prior agreements shall not be affected by the Terms or this Order.

(d) In the event of any conflict or inconsistency between the express terms contained on the face of this Order and these Purchase Order - Terms and Conditions, the express terms on the face of this Order shall govern.

2. QUALITY ASSURANCE. At the time of delivery, all articles, materials and work furnished, as applicable, shall be of good quality and free from any defects, and shall at all times be subject to inspection by Buyer and any applicable governmental authority or regulatory body (collectively, “Regulator”); but neither Buyer’s nor Regulator’s inspection, nor failure to inspect, shall relieve Vendor of any obligation hereunder. If in Buyer’s or Regulator’s opinion, any article, material or work fails to conform to specifications or is otherwise defective, Buyers sole recourse shall be through Vendor’s Warranty. No acceptance or payment by Buyer shall constitute a waiver of the foregoing; and nothing herein shall exclude or limit any warranties provided by law.

3. CUSTOMER REQUIREMENTS.

(a) Vendor acknowledges that the Goods and/or Services under this Order may be sold, or incorporated into products or services that may be sold or leased, by Buyer as or to an original equipment manufacturer of motor vehicles, whether directly or indirectly, to an upper tier supplier or any other third party customer (collectively, the “Customer”). Vendor is not responsible for such changed warranty to the Customer unless such is explicit in the Order and Buyer provides copy of specific terms or obligations. Vendor shall take reasonable steps to comply with such requirements and do all other things as Buyer deems necessary or desirable and within Vendor’s control without additional expense to Vendor, to enable Buyer to meet Buyer’s obligations under the terms and conditions of the Customer Warranty and any contract, purchase order or other document related thereto (the “Customer Terms”), including: delivery, packaging and labeling requirements; warranties and warranty periods; intellectual property rights and indemnification; confidentiality; access to facilities and records; ensuring the Goods when sold to the Customer comply with any specification set forth; and replacement and service parts; provided however that Vendor acknowledges that the Goods shall be sold or leased by the Buyer to customers in the European Union so shall comply with any legal requirements relating thereto.

(b) Subject to Buyer’s and Vendor’s acceptance of Customer Terms as set forth in Section 3(a), if there is any conflict or inconsistency between the provisions of the Customer Terms and any provision of this Order, Buyer shall have the right to have the provisions of the Customer Terms prevail to the extent necessary or desirable to resolve such conflict or inconsistency as long as Vendor has agreed and at Buyer’s expense.

 

 

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(c) If the Customer directed, recommended or requested that Vendor be the source from whom Buyer is to obtain the Goods and/or Services and Customer and Vendor have a formal agreement relating to the Order: (i) Buyer reserves the absolute right to pay Vendor for the Goods and/or Services only after and to the extent of, and in proportion to, Buyer’s actual receipt of payment from the Customer for those products or services into which the Goods and/or Services are incorporated; (ii) any lengthening of the Customer’s payment terms to Buyer for those products or services into which the Goods and/or Services are incorporated shall, be mutually agreed upon by the Parties.

4. TAXES. Unless otherwise provided herein or by law, Vendor shall pay all sales, use, excise, port fees and other taxes, charges, and contributions now or hereafter imposed on, or with respect to, or measured by the articles, materials or work furnished or the compensation paid to, persons  employed in connection with performance hereunder; and Vendor shall release, indemnify, defend and hold Buyer harmless against any liability and expense by reason of Vendor’s failure to pay same.

5. DELIVERY DELAYS, SHIPPING AND DUTIES/TAXES.

(a) Other than by reason of an excusable delay (as defined in Section 5(b)), if after accepting this Order pursuant to Section 1 Vendor fails or refuses to proceed with this Order or fails to deliver the Goods and/or perform the Services within the delivery date(s) and time(s) specified in this Order or any applicable Release (in any such case, a “delay”), Buyer may, without liability to Vendor and without limiting or affecting Buyer’s other rights or remedies available hereunder or at law: (i) cancel the then remaining balance of this Order; or (ii) direct expedited shipment and/or incur premium freight or special transportation costs, and Vendor shall pay, upon demand, all excess costs incurred thereby, including additional handling charges and other expenses (whether related or not) resulting therefrom; provided that if such costs exceed 30% of the Order (the “Threshold Costs”), Vendor shall only be liable for the Threshold Costs and the reasonable expenses that exceed 30%. Vendor shall not be responsible for any other direct, consequential and incidental damages incurred by Buyer as a result of a delay, other than by reason of an excusable delay, including the cost of any line shutdown(s) and the cost of obtaining the Goods and/or Services from alternate sources. Buyer’s actions in obtaining substitute or replacement Goods and/or Services shall not limit Buyer’s rights and remedies available hereunder or at law.

(b) As used in this Order, the term “excusable delay” means at any time Buyer requests to shorten a delivery date quoted by Vendor and any delay in making or accepting deliveries or performance which results without fault or negligence on the part of the party involved and which is due to causes or events beyond its reasonable control, such as acts of God,  or of a public enemy that causes materials or component supply delays, any preference, , priority or allocation order issued by government or any other acts of government, fires, floods, epidemics, quarantine restrictions, freight embargoes, unusually severe weather, explosions, riots, war (whether declared or not), terrorism, acts of the other party and delays of a subcontractor or supplier due to such causes. As used in this Order, the term “excusable delay” shall not, however, mean or include any delay arising from or as a result of: (i) Vendor’s financial difficulties; (ii) a change in cost or availability of materials or components based on market conditions or supplier actions affecting Vendor or any of its subcontractors or suppliers.

 

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(c) An excusable delay shall not constitute a default hereunder, provided that if Buyer or Vendor is subject to one or more excusable delays that persist for more than thirty (30) days in the aggregate, Buyer or Vendor may cancel the then remaining balance of this Order, without liability to Vendor and without limiting or affecting Buyer’s other rights or remedies available hereunder or at law.

(d) Vendor, shall use reasonable efforts to mitigate any adverse effects or costs to Buyer due to any actual or potential delay, including: (i) the implementation of a production and/or performance contingency plan; and (ii) upon Buyer’s express written authorization and Order that has been accepted by Vendor, increasing Vendor’s inventory of finished Goods to a level sufficient to sustain deliveries during such delay.

(e) Whenever any actual or reasonably certain or significant potential delay threatens to delay deliveries or Vendor’s performance under this Order, Vendor shall immediately give written notice thereof to Buyer. Such notice shall include all relevant information with respect to such delay, including the anticipated duration and impact of such delay if known.

(f) Buyer may delay acceptance of delivery of the Goods and/or performance of the Services and such delay does not affect or delay payment, by reason of an excusable delay, in which case Vendor shall hold the Goods and/or delay performance of the Services, at Buyer’s direction, until the cause of the excusable delay has been removed.

(g) If, under the express terms of this Order, Buyer grants Vendor exclusive or “single source” rights to supply the Goods and/or Services to Buyer, such rights shall not restrict Buyer’s right to procure substitute or replacement Goods and/or Services for the duration of any delay (whether or not by reason of an excusable delay) and for a reasonable period thereafter, without liability to Vendor.

 (h) Unless otherwise expressly stated in this Order, Vendor shall not charge Buyer for shipment preparation, labeling, packing, boxing, crating or shipping. Vendor shall promptly notify Buyer in writing if Vendor is unable to deliver and/or perform in the quantities and on the delivery dates and times agreed upon by Vendor and Buyer. Goods delivered in excess of the quantities or in advance of delivery dates or times so specified shall be at Vendor’s risk and may be returned to Vendor by Buyer, and all transportation charges both to and from the original destination shall be paid by Vendor. Unless otherwise expressly stated in this Order, prices include customs duties and expenses, tariffs and all federal, provincial, state and local taxes (including all export taxes, import taxes, excise taxes, sales taxes and value added or similar “turnover” taxes) applicable to the manufacture, sale or provision of the Goods and/or Services as they are delivered to Buyer.

 

 

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6. PAYMENT.

(a) Except as otherwise expressly stated in this Order which shall match the Vendor’s quote, and subject to Section 3(c) and Section 7, Buyer shall pay net invoices (subject to applicable withholding taxes, if any) by the later of: (i) sixty (60) days after the end of the month during which the Goods were delivered and/or Services performed, as the case may be; or (ii) sixty (60) days after the invoice date. In the event of late payment by Buyer, Vendor shall be entitled to any lien or retention of title against the Goods and/or Services or to claim any set-off against amounts due or which may become due to Vendor from Buyer or its subsidiaries or affiliates. In order to be payable, invoices must be correct and complete, with appropriate supporting documentation and other information reasonably required by Buyer.

(b) Notwithstanding the foregoing and except as otherwise expressly stated in this Order which shall match the Vendor’s quote, where Buyer is entitled to receive payment or reimbursement from the Customer for the Goods and/or Services to be provided by Vendor to Buyer under this Order that constitute Tooling (as such term is defined in Section 11(b)), Vendor shall be entitled to receive payment under this Order for such Tooling only after and to the extent of, and in proportion to, Buyer’s actual receipt of such payment or reimbursement from the Customer.

7. DEDUCTION, SET-OFF, RECOUPMENT.

(a) In addition to any right of deduction, set-off or recoupment provided by law, all amounts due or to become due to Vendor from Buyer (including any applicable value added or similar “turnover” tax payable, if any) shall be considered net of indebtedness or obligations of Vendor to Buyer, and upon agreement by Vendor, Buyer may deduct, set-off or recoup any such indebtedness or obligations from and against any amounts due or to become due to Vendor from Buyer (including any applicable value added or similar turnover taxes payable, if any) and however and whenever arising. Buyer may do so without notice to Vendor.

(b) In the event of any insolvency or financial distress of Vendor or for any other reason(s) giving rise to Vendor’s inability (or, in Buyer’s opinion, potential inability) to perform its obligations under this Order, if Buyer retains legal counsel, accountants or other third party advisors to provide services related to Buyer’s business relationship with Vendor, Buyer shall have the right to fully recover its out of pocket fees and costs related to such legal, accounting or other third party services, and to specifically deduct, set-off or recoup such fees and costs from amounts due or to become due to Vendor from Buyer.

(c) In the event of any insolvency or financial distress of Buyer or for any other reason(s) giving rise to Buyer’s inability (or, in Vendor’s opinion, potential inability) to perform its obligations under this Order, if Buyer retains legal counsel, accountants or other third party advisors to provide services related to Vendor’s business relationship with Buyer, Vendor shall have the right to fully recover its out of pocket fees and costs related to such legal, accounting or other third party services, and to specifically deduct, set-off or recoup such fees and costs from amounts due or to become due to Buyer from Vendor.

 

 

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(d) For purposes of this Agreement, the terms “Buyer” and “Vendor” shall mean and include each of Buyer and Vendor, respectively, and its subsidiaries and affiliates.

8. CHANGES.

(a) Buyer reserves the right upon Vendor’s pre-approval to make changes, or to require Vendor to make changes, to the drawings, specifications and other provisions of this Order, as well as any subcontractors or suppliers used or intended to be used by Vendor. If any such change results in an increase or a decrease in the cost of, or the time required for, manufacturing or delivering the Goods and/or performing the Services, an equitable adjustment may be made in the price or delivery schedule, or both, and this Order shall, subject to the agreement of Buyer and Vendor, be modified in writing accordingly. No claim under this Section 8 shall be asserted by Vendor after ninty (90) days following the notification of the change by Buyer.

(b) Vendor shall not, without Buyer’s prior written authorization, make any changes to specifications, designs, drawings, materials, part numbers (or other types of identification), processes, procedures or the location of the facilities used by Vendor for the performance of its obligations under this Order.

9. PRICE WARRANTIES AND COMPETITIVENESS.

(a) Vendor represents and warrants that the prices for the Goods and/or Services are, and shall remain, no less favorable to Buyer than the prices currently extended to any other customer of Vendor for the same or substantially similar goods or services in the same or substantially similar quantities and delivery requirements. If Vendor reduces the prices of such same or substantially similar goods or services and quantities and delivery requirements during the term of this Order, Vendor shall reduce the prices of the Goods and/or Services correspondingly.

(b) Except as otherwise expressly stated in this Order, Vendor represents and warrants that the prices for the Goods and/or Services are complete, and that no surcharges, premiums or other additional charges of any type shall be added, without Buyer’s prior written consent. Vendor expressly assumes the risk, but if such event results in an additional cost to Vendor in excess of 25% of the price of an Order may terminate the Order, in  any event or cause (whether or not foreseen) affecting such prices, including any foreign exchange rate changes, increases in raw materials costs, inflation, increases in labor, MRO (maintenance, repair and operations), utilities and other manufacturing costs, etc.

(c) Vendor shall ensure that the Goods and/or Services remain competitive, in terms of price, quality, delivery, performance and service, with substantially similar goods, volumes and services provided by Vendor to 3rd parties.

 

 

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(d) For a period of six months after each Order, Buyer shall provide Vendor with the right to first quote any potential Orders that relate to the goods and services provided by Vendor.  Such right shall extend for a period of (5) days from the date Vendor receives request to quote from Buyer.

10. WARRANTIES REGARDING GOODS AND SERVICES.

(a) Vendor’s sole Warranty (“Warranty”) is outlined in Exhibit A.

(b) The Vendor’s Warranty and Warranty period are available to, and for the benefit of, Buyer, its subsidiaries and affiliates, their respective successors and assigns, the Customer and users of the Goods and/or Services but only Buyer may submit a claim under such Warranty.

11. MATERIALS, EQUIPMENT, TOOLS AND FACILITIES.

(a) Unless otherwise expressly stated in this Order, Vendor shall, at its own expense, supply and, as applicable, maintain in good condition and repair and replace when necessary or reasonably required, all materials, equipment, tools, jigs, dies, gauges, fixtures, moulds, patterns, drawings, specifications, samples, supplies and facilities that are under control of or are owned by Vendor and that are required to perform this Order.

(b) Notwithstanding any other provision in this Order, Parties expressly acknowledges and agrees that: all materials, parts, components, assemblies, equipment, tools, jigs, dies, gauges, fixtures, moulds, patterns, drawings, specifications, samples, supplies and facilities, including any replacements thereof, any materials affixed or attached thereto and any special tooling manufactured, produced or provided by Vendor for the performance of its obligations under this Order are and shall remain the property of Vendor (collectively, “Tooling”).  Parties further agree: (i) all materials, parts, components, assemblies, equipment, tools, jigs, dies, gauges, fixtures, moulds, patterns, drawings, specifications, samples, supplies and facilities, including any replacements thereof, any materials affixed or attached thereto and any special tooling manufactured, paid for (excluding any Tooling the cost of which is fully or substantially amortized in the price of the Goods and/or Services), produced or provided and paid for by Buyer for the performance of its obligations under this Order are and shall remain the property of Buyer (collectively, “Specialized Tooling”) or collectively, the (“Buyer’s Property”), shall be held by Vendor on a bailment basis and remain the property of, with both title and the right of possession in, Buyer and without limiting or affecting any other rights or remedies available hereunder. Vendor shall assign to Buyer all contract rights or claims in which Vendor has an interest with respect to the Buyer’s Property and, upon request by Buyer and in the event no payment is due and payable by Buyer beyond any applicable grace period, shall execute bills of sale, financing statements or other documents reasonably requested by Buyer to evidence Buyer’s ownership of the Buyer’s Property. In addition to any other right or remedy with respect to the Buyer’s Property given to Buyer by statute or rule of law, Vendor acknowledges that this Order only to the extent the Order contains Specialized Tolling paid for by Buyer creates or provides for a “security interest” and/or a “purchase-money security interest” (within the meaning of applicable personal property security legislation) in favor of Buyer in the Buyer’s Property which may be registered or otherwise protected by Buyer at any time in Buyer’s sole discretion. The 

 

 

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Buyer’s Property, while in the custody or control of Vendor or its subcontractors, suppliers or agents, shall be held at Vendor’s risk, shall be kept insured by Vendor, at Vendor’s expense, against loss or damage in an amount equal to the replacement cost thereof, and shall be subject to removal on Buyer’s written request. Vendor shall promptly notify Buyer of the location of the Buyer’s Property, if any is located at any place other than Vendor’s cell supplier of or Vendor’s premises. Unless otherwise expressly stated in this Order, Vendor shall maintain accounting and property control records for the Buyer’s Property in accordance with sound industrial practices. Vendor shall, at Vendor’s expense, maintain the Buyer’s Property in good condition and repair throughout the useful life thereof (as determined by Buyer in accordance with sound industrial practices), and shall replace any of the Buyer’s Property if, as and when necessary or reasonably required. Buyer does not provide any warranties with respect to the Buyer’s Property. Upon completion or termination of this Order, Vendor shall retain on a bailment basis for Buyer, as aforesaid, all Buyer’s Property in the custody or control of Vendor, at Vendor’s expense, until disposition directions are received from Buyer. Upon receipt of Buyer’s demand or disposition directions, Vendor shall, at Vendor’s expense, properly prepare the Buyer’s Property for shipment and shall deliver it to such location(s) as may be specified by Buyer. The Buyer’s Property shall be in no less than the same condition as originally received by Vendor, normal use and reasonable wear and tear excepted. If Buyer or Vendor defaults under this Order, Vendor shall, upon Buyer’s demand, immediately deliver the Buyer’s Property to Buyer and, if Buyer so requests, grant Buyer reasonable access to Vendor’s premises (including, as applicable, the premises of Vendor’s subcontractors, suppliers and agents) for the purpose of removing the Buyer’s Property. To the extent not prohibited by law, as long as Buyer does not owe any payables to Vendor that are past the any applicable grace period, Vendor waives any lien or similar right which Vendor may have with respect to the Buyer’s Property. Buyer shall be responsible for personal property taxes, if any, assessed against the Buyer’s Property while in the custody or control of Vendor or its subcontractors, suppliers or agents.

 

(c) All Buyer’s Property referenced in Section 11(b)(i) to be manufactured, produced or provided by Vendor in conjunction with this Order must be in strict accordance with the specifications set forth in this Order or as otherwise specified by Buyer to Vendor.

(d) Vendor shall use the Buyer’s Property referenced in Section 11(b)(i) solely for the purpose of performing its obligations under this Order unless Buyer gives its written consent to use Buyer’s Property for another purpose.

(e) All Buyer’s Property shall be tagged, marked or otherwise clearly identified by Vendor as the property of Buyer (or as Buyer may otherwise direct).

(f)  This Section 11 shall not apply to any Tooling purchased under a purchase order unless such purchase order specifically states that it is governed by these terms and conditions.

 

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12. INTELLECTUAL PROPERTY.

(a) Vendor shall indemnify and hold Buyer, its subsidiaries and affiliates, their respective successors, assigns, representatives, employees and agents, the Customer and users of products or services incorporating the Goods and/or Services, harmless from and against all liabilities, demands, claims, losses, costs, damages and expenses of any nature or kind (including court costs, legal and other professional fees, and other costs associated with any indemnified party’s administrative time, labor and materials) arising from or relating to the infringement or alleged infringement of any patent, trademark, service mark, copyright, industrial design, mask work, trade secret or other intellectual property right for or on account of the manufacture, sale or use of the Goods and/or Services, or of the products or services incorporating the Goods and/or Services.  Buyer shall indemnify and hold Vendor, its subsidiaries and affiliates, their respective successors, assigns, representatives, employees and agents, the Customer and users of products or services harmless from and against all liabilities, demands, claims, losses, costs, damages and expenses of any nature or kind (including court costs, legal and other professional fees, and other costs associated with any indemnified party’s administrative time, labor and materials) arising from or relating to the infringement or alleged infringement of any patent, trademark, service mark, copyright, industrial design, mask work, trade secret or other intellectual property right for or on account of the manufacture, sale or use is based on a claim that Buyer’s combination of the Goods and/or Services with other goods, services (including without limitation Buyer’s products).  Buyer shall notify Vendor of any suit filed against Buyer or other indemnified parties herein, on account of any such infringement or alleged infringement as stated above and in the event infringement is solely relating to the Goods’ and/or Services alone, shall give Vendor control of the defense of such suit, insofar as Buyer has the authority to do so, and reasonable information and assistance in connection therewith, all at Vendor’s expense. Buyer and other indemnified parties herein shall have the right to be represented by their own legal counsel and actively participate in any such suit, and the reasonable costs of such representation shall be paid by Vendor on demand. If a claim of infringement or alleged infringement based solely on the Goods and/or Services results or is reasonably anticipated to result in an injunction or other legal order preventing Vendor from supplying or Buyer from using the Goods and/or Services for their intended purpose, Vendor shall, at its expense, (i) secure a valid license or other applicable rights to permit such continued supply or use, (ii) modify (with the prior approval of Buyer and, if applicable the Customer) the Goods and/or Services so that they become non-infringing, so long as the modifications do not significantly alter or affect the form, fit, function, operation or performance of the Goods and/or Services, or (iii) replace (with the prior consent of Buyer and, if applicable, the Customer) the Goods and/or Services with non-infringing, but substantially equivalent goods and/or services.

(b) Solely with respect to the use, installation, sale, lease or servicing of the Goods that have been paid in accordance with an Order by Buyer, Vendor hereby grants to Buyer, its subsidiaries and affiliates, and their respective successors and assigns (including any of their authorized distributors or dealers), and Buyer hereby accepts, a non-exclusive, irrevocable, royalty-free (such royalty deemed included in the price of the Goods and Services), worldwide license, including the right to sublicense to others in connection with providing the Goods and/or Services to Buyer or the Customer, under: (i) patents, industrial designs, technical information, know how, processes of manufacture, trade secrets and other intellectual property, owned or controlled by Vendor or its subsidiaries and affiliates, and relating to the Goods and/or Services under this Order or their installing, servicing, use, sell, lease and import the Goods and/or Services under this Order, and (ii) any works of authorship fixed in any tangible medium of expression (including drawings, prints, manuals and specifications) furnished by Vendor in the course of Vendor’s activities under this Order,  (all items in clauses (i) and (ii) above, collectively, “Vendor’s Intellectual Property”, and such license in respect thereof, the “License”). In the event Buyer wishes to obtain the supply of the Goods and/or Services from a third party Buyer may request and upon written agreement by Vendor, Buyer may obtain a royalty bearing License. Nothing herein shall grant Buyer or subsequent assigns the license or right to create derivative works.

 

 

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(c) To the extent that Vendor creates or develops any inventions, discoveries or improvements in the performance of Vendor’s obligations under this Order which are paid for by Buyer and specified as development work in an Order, Vendor shall: (i) assign to Buyer each such invention, discovery or improvement (whether or not patentable) that is conceived or first reduced to practice by Vendor, or by any person employed by or working under the direction of Vendor, in the performance of Vendor’s obligations under this Order; and (ii) promptly disclose in an acceptable form to Buyer all such inventions, discoveries or improvements and cause Vendor’s employees to sign any papers necessary to enable Buyer to obtain title to and to file applications for patents throughout the world. To the extent that any works of authorship (including, without limitation, software and computer programs) are created or developed in the performance of Vendor’s obligations under this Order which are paid for by Buyer and specified as development work in an Order, such works shall be considered “works made for hire”, and to the extent that such works do not qualify as “works made for hire”, Vendor hereby assigns to Buyer all right, title, and interest in all copyrights and moral rights therein.

(d) Vendor shall not manufacture or provide, or offer to manufacture or provide, any goods or services that are significantly based upon Buyer’s intellectual property and/or the drawings or specifications in respect of the Buyer’s goods and services, or any derivatives thereof, whether for its own purposes (other than to satisfy its obligations under this Order), for the Customer or any other third parties, without Buyer’s prior written consent. The foregoing restriction shall not apply in respect of “standard”, “off-the-shelf” or “catalogue” goods or services that have been routinely manufactured or provided by Vendor and developed by Vendor, in each case, prior to this Order and independently of Vendor’s relationship with Buyer.

(e) Buyer shall not manufacture or provide, or offer to manufacture or provide, any goods or services that are based solely upon Vendor’s intellectual property and/or the drawings or specifications in respect of the Goods and/or Services, or any derivatives thereof, whether for its own purposes (other than to satisfy its obligations) for the Customer or any other third parties, without Vendor’s prior written consent.

 

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13. CONFIDENTIALITY AND NON-DISCLOSURE.

(a) Parties shall, and shall cause each subcontractor to, consider and treat all Information (as defined in Section 13(b)) as confidential, shall safeguard such Information in an appropriate and reasonable manner (but being at least the same as that used by either party alone to protect its own information of the same or a similar nature and relative importance), and shall not disclose any Information to any other person (including a competitor of Parties or a person, who with knowledge of the Information, could damage either Parties; competitive position), or use any Information against the interests of the Parties or for any purpose except as required by this Order, without the other party’s prior written consent; provided however that Buyer may disclose Vendor’s confidential information to a lender or third party that is contemplated financing, making a loan, making an equity investment or entering into a joint venture or other arrangement for the purchase or sale of the Goods or Buyer’s products provided such party enters into a confidentiality agreement prior to such disclosure. Each party retains all rights with respect to their Information, and neither Party  shall acquire, nor attempt to obtain (whether by filing applications, asserting claims, disputing the other party’s rights or otherwise) any patent, trademark, copyright, license or other rights in respect of the other Party’s Information. Neither Party shall allow any Information to be reproduced, communicated or in any way used, in whole or in part, in connection with services or goods furnished to others, without the other Party’s prior written consent.

(b) For the purposes of this Order, “Information” means (i) all prints, designs, drawings, layouts, specifications, instructions, developments, technical data, test data, computations, analyses, models, samples, prototypes, materials, products, parts lists, costs and pricing, methods, processes, systems, plans, forecasts, reports, working papers and other information (whether or not commercial, financial, business or technical in nature) furnished by or on behalf of either Party and/or, if applicable, the Customer and/or Sub-Contractors, (ii) all notes, analyses, compilations, studies, interpretations or other documents, whether in hard copy or electronic form, prepared by the respective Party or its subcontractor, which contain, reflect or are based upon, in whole or in part, the Information set forth in (i) above, and (iii) all terms and conditions and any other information relating to this Order.

(c) Vendor shall not advertise or otherwise publicly disclose the fact that Buyer has contracted to purchase the Goods and/or Services from Vendor, without Buyer’s prior written consent or unless required to do so by operation of law or regulation.

(d) The Parties agrees, and agrees to cause any subcontractor, to promptly return or destroy the Information upon the either Party’s request. The Parties will promptly inform each other if it becomes aware of any misappropriation, misuse or improper disclosure of any Information. In the event the Vendor uses any subcontractor to provide goods or services in connection with this Order, the Vendor agrees to cause such subcontractor to be bound provisions substantially similar to this section.  Nothing in this Section 13 shall restrict either Party’s disclosure of information to the extent required by law.

 

 

 

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14. COMPLIANCE WITH LAWS.

(a) Vendor’s performance of its obligations under this Order shall be in compliance with all applicable laws, including foreign, federal, provincial, state and local laws, ordinances, rules, codes, standards and regulations, as promulgated, enacted and amended from time to time, that are applicable to this Order or the use of the Goods to the Customer, including any specifications for the Goods set forth in any law applicable to the sale of the Goods to the Customer, (collectively, “Laws”). Vendor shall furnish Buyer with certificates of compliance, where required under such applicable Laws or when requested by Buyer. Each invoice rendered to Buyer under this Order shall constitute written assurance by Vendor that Vendor has fully complied with all applicable Laws.

(b) Vendor shall package, label and transport the Goods and their containers, in particular those which constitute a safety, health, poison, fire, explosion, environmental, transportation or other hazard, in compliance with all applicable Laws in effect in the place to which the Goods are shipped or as otherwise specified by Buyer. Upon request, Vendor shall furnish Buyer with information regarding the ingredients of the Goods.

(c) Vendor represents and warrants that neither it nor any of its subcontractors or suppliers utilize or will utilize any form of forced or involuntary labor in the United Status relating to the supply of the Goods and/or Services under this Order. Within the framework of its commercial dealings with Buyer, Vendor shall not engage in any actions or practices which may lead to criminal or civil liability due to fraud, bribery, embezzlement, unfair competition or other forms of corruption on the part of persons employed by Vendor or third parties for the benefit of Vendor.

(d) Parties represents and warrants that neither it, its subcontractors, nor any of their officers, directors, employees, agents or other representatives has or will perform any act that violates the Foreign Corrupt Practices Act of 1977, as amended by the International Anti-bribery and Fair Competition Act of 1998, including pay, offer or promise to pay or give any money, gift, service or anything else of value, either directly or through a third party, to any (A) official or employee of any government authority or instrumentality, public international organization, or of any agency or subdivision thereof, or (B) political party, official thereof or to any candidate for political office; in each case for the purpose of (i) influencing any act or decision of that person in his official capacity, including a decision to fail to perform his or her official function, (ii) inducing such person to use his or her influence with such organization to affect or influence any act or decision thereof or (iii) securing any improper advantage. In the event either Party uses any subcontractor to provide goods or services in connection with this Order, they agree to cause such subcontractor to be bound by provisions substantially similar to this Section 14.

(e) Parties shall indemnify and hold the other party, its subsidiaries and affiliates, their respective successors, assigns, representatives, employees and agents and the Customer, harmless from and against all liabilities, demands, claims, losses, costs, damages and expenses of any kind and nature (including personal injury, property damage, consequential and special damages, court costs, legal and other professional fees, and other costs associated with any indemnified party’s administrative time, labor and materials) arising from or relating to the other Party’s or any subcontractor’s failure to comply with this Section 14.

 

 

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15. INSURANCE.

(a) Vendor shall maintain and carry: (i) property and general liability insurance, including public liability, property damage liability, product liability and contractual liability coverage; and (ii) workers’ compensation and employers’ liability insurance covering all employees engaged in the performance of this Order; in each case, in such amounts and with such limits (subject to Section 15(b)) and with such insurers that are acceptable to Buyer, acting reasonably.

(b) Unless otherwise expressly stated in this Order, Vendor’s liability insurance policies shall have combined single limits of no less than five million U.S. dollars (U.S. $5,000,000) per occurrence and in the aggregate; provided that such limits shall not limit Vendor’s liability under this Order. Vendor’s property insurance policies shall be written on a “replacement cost” basis, and Vendor’s workers’ compensation policies shall be in compliance with applicable statutory requirements and limits.

(c) Vendor shall furnish Buyer with certificates or other satisfactory proof of insurance confirming the foregoing insurance coverage within ten (10) days of Buyer’s request. Any such certificate shall provide for terms and conditions satisfactory to Buyer whereby, among other things: (i) the interest of Buyer in such insurance coverage has been recognized, whether by way of designating Buyer as loss payee or otherwise as may be requested by Buyer from time to time; and (ii) Buyer shall receive not less than thirty (30) days prior written notice from the insurer before any termination or reduction in the amount or scope of coverage can occur, with Buyer having the right (at Vendor’s expense), but not the obligation, to maintain such insurance coverage prior to the expiration of such notice. The receipt or review of such certificates or other proof of insurance coverage at any time by Buyer shall not relieve Vendor from its insurance obligations hereunder or reduce or modify such insurance obligations.

16. TERMINATION UPON NOTICE.

(a) In addition to any other rights of Buyer to terminate this Order, Buyer may, in its sole discretion for any or no reason, upon thirty (30) days prior written notice to Vendor or, if applicable, such shorter period as may be required by the Customer, terminate this Order, in whole or in part at any time, and notwithstanding the existence of any excusable delay or other events or circumstances affecting Vendor. Buyer’s notice to Vendor may be given by facsimile, e-mail or other form of electronic transmission, and shall state the extent and effective date of termination. Vendor may not terminate this Order for any reason, except as otherwise expressly provided in this Order.

(b) Upon receipt of notice of termination from Buyer under Section 16(a), Vendor shall, as of the effective date of termination and to the extent directed by Buyer: (i) stop work under this Order and any other orders related to work terminated by such notice; (ii) protect all property in Vendor’s possession or control in which Buyer has or may acquire an interest, including the Buyer’s Property; and (iii) if this Order is terminated in full, cease to be bound to deliver and/or perform, and Buyer shall cease to be bound to receive delivery and/or performance of, any further Goods and/or Services (other than the minimum quantities specified in this Order, if any). Vendor shall promptly submit to Buyer any claims relating to such termination, and in any event within thirty (30) days (unless Buyer agrees otherwise) from the effective date of such termination.  Vendor hereby grants Buyer the right to audit and inspect its books, records and other documents relating to any termination claims or any other claim under this Order.

 

 

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(c) Subject to Section 16(d), if Buyer and Vendor cannot agree within a reasonable time upon the amount of fair compensation for Buyer’s termination of this Order, Buyer shall, in addition to making payment of the price specified in this Order for the Goods and/or Services delivered or performed and accepted by Buyer prior to the effective date of termination, pay to Vendor the following amounts, without duplication: (i) the price specified in this Order for the Goods and/or Services manufactured or provided in accordance with the terms of this Order but not previously paid for;(ii) the actual costs of work-in-process and parts and raw materials inventory incurred by Vendor in performing its obligations under this Order, to the extent such costs are reasonable in amount and are properly allocated or apportioned under generally accepted accounting principles to the terminated portion of this Order; and (iii) any other costs or allowances that Buyer, in its sole discretion, may elect to recognize and pay. Buyer shall not be obligated to make any payment for: (x) the Goods and/or Services or work-in-process or parts or raw materials inventory that are manufactured, provided or procured by Vendor in amounts in excess of those authorized in any Order, that are damaged or destroyed or that are not merchantable or useable; (y) work-in-process or parts or raw materials inventory that can be returned to Vendor’s suppliers or subcontractors for credit. Payments made in connection with a termination of this Order under Section 16(a) shall not exceed the aggregate price for the Goods and/or Services that would have been manufactured or provided by Vendor in the absence of termination. Except as provided in this Section 16(c), Buyer shall not be liable for and shall not be required to make payments to Vendor, directly or indirectly (whether on account of claims by Vendor’s subcontractors or otherwise), for any losses arising from or attributable to failure to realize anticipated revenues, savings or profits, unabsorbed overheads, interest on claims, product development and engineering costs, capital costs, facilities and equipment rearrangement costs or rentals, unamortized depreciation costs or general and administrative burden charges, unless (and only to the extent that) any of the foregoing are otherwise expressly stated in this Order . Notwithstanding anything herein, nothing shall limit Vendor’s remedy under law.

(d) If a Blanket Purchase Order is terminated, in whole or in part, as set forth in Section 16(a), the liability of the Buyer to Vendor under Section 16 shall be limited solely to the difference between (i) the aggregate price that would have been paid by the Buyer for the Goods and Services actually delivered to Buyer under the Blanket Purchase Order if such reduced quantity had been know to Vendor at the time it accepted the Blanket Purchase Order, and (ii) the aggregate invoice price for Goods and Services actually delivered to the Buyer under the Blanket Purchase Order. Any pricing proposal delivered to the Buyer by Vendor prior to delivery of a Blanket Purchase Order shall be used to calculate the amount owed by Buyer to Vendor pursuant to this Section 16(d). To the extent any Release has been issued by Buyer to Vendor and such Goods or Services set forth in the Release have not been delivered to Buyer on or prior to termination in accordance with Section 16(a), any liability relating to such Release shall be determined as set forth in Section 16(c). For purposes of this Section 16(d), “actually delivered” shall mean any Goods or Services accepted by the Buyer as conforming Goods or Services pursuant to a Blanket Purchase Order or related Release on or prior to the date this Order is terminated, in whole or in part, pursuant to Section 16(a).

 

 

 

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(e) Vendor may, with Buyer’s prior written consent, retain or sell at an agreed price any of the Goods and/or Services or work in process, parts or raw materials inventory, the cost of which is allocated or apportioned to this Order under Section 16(c)(ii), and shall credit or pay the amounts so agreed or  delivery of any Goods, work in process, parts or raw materials inventory not so retained or sold.

(f) Any termination under this Section 18 shall not affect the entitlement of Buyer with respect to the Buyer’s Property, including pursuant to Section 11(b).

17. TERMINATION UPON INSOLVENCY, BANKRUPTCY, ETC.

Either party may terminate this Order, without liability to the other party: (i) in the event of the insolvency, bankruptcy, reorganization, arrangement, receivership or liquidation by or against the other party; (ii) in the event that the other party makes an assignment for the benefit of its creditors, seeks protection from its creditors under applicable laws or ceases to carry on business in the ordinary course; or (iii) if a receiver is appointed in respect of the other party or all or part of its property (collectively, an “Insolvency Event”). In the event of such termination, the other party shall be liable for all costs, damages and expenses suffered by the party that terminates this Order. Any such termination shall not affect the entitlement of Buyer with respect to the Buyer’s Property, including pursuant to Section 11(b).

 

 

18. SERVICE AND REPLACEMENT PARTS.

(a) Lifetime Buy Rights. Vendor acknowledges its obligation to manufacture, supply and support the Goods and Services.  If, however, Vendor seeks to discontinue the supply or support of any Goods and Services (a “Discontinued Product”), Vendor will give notice to Buyer no less than twelve (12) months in advance of the last date the Discontinued Product can be ordered.  After receipt of notice of Discontinued Product, Buyer may, at its option: (i) place a one-time order, such order shall not be a blanket order, from Vendor such quantity of the Discontinued Product as Buyer deems necessary at a price no higher than the last price paid by Buyer to Vendor for the Goods; and (ii) manufacture the Discontinued Product under a royalty agreement with Vendor.

(b) At Buyer’s request and expense, Vendor shall make service literature and other materials available to support Buyer’s service part or replacement part sales activities.

19. BUYER’S WEBSITE.

 Unless otherwise provided herein, this Agreement may not be modified unless in writing and signed by an authorized representative of each party. Any express waiver or failure to exercise promptly any right under this Agreement will not create a continuing waiver or any expectation of non-enforcement.

 

 

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20. SUBCONTRACTS. Vendor shall ensure that the terms of its contracts with its and subcontractors and suppliers provide Buyer and the Customer with all of the rights specified in this Order, including but not limited to those set forth in Section 3(a).

21. ASSIGNMENT.

Vendor shall not assign this Order hereunder or any interest herein, except that Vendor may, with Buyer’s prior written consent, make an assignment of monies due or which may become due hereunder to a bank or other financing institution; provided that any such assignment by Vendor shall be subject to deduction, set-off, recoupment or any other lawful means of enforcing any present or future claims that Buyer may have against Vendor, and provided further that any such assignment shall not be made to more than a single assignee.   Buyer shall have the right to assign this Order or its interest herein, without Vendor’s consent, to any of its subsidiaries or affiliates or to any purchaser or successor to Buyer’s business.

22. REMEDIES.

The remedies reserved in this Order shall be cumulative and not alternative, and may be exercised separately or together, in any order or combination, and are in addition to any other remedies provided for or allowed by law, at equity or otherwise.

 

 

23. WAIVER. Either party’s failure to insist on the performance by the other party of any Term or failure to exercise any right or remedy reserved in this Order, or either party’s waiver of any breach or default hereunder by the other party shall not, thereafter, waive any other terms, conditions, rights, remedies, breaches or defaults, whether of the same or a similar type or not.

24. MODIFICATIONS. No modification of this Order, including any waiver of or addition to any of the Terms, shall be binding upon either Party, unless made in writing and signed by the Parties’ authorized representative(s).

25. SEVERABILITY. If any provision of this Order is invalid or unenforceable under any statute, regulation, ordinance, executive order or other rule of law, such provision shall be deemed reformed or deleted, as the case may be, but only to the extent necessary to comply with such statute, regulation, ordinance, order or rule, and the remaining provisions of this Order shall remain in full force and effect.

26. NOTICES. Except as otherwise expressly stated in this Order, any notice given or other communication sent under this Order shall be in writing and shall be properly delivered to its addressee by hand, prepaid courier, registered or certified mail, e-mail or other form of electronic transmission (receipt confirmed) or facsimile (receipt confirmed) at the applicable address or facsimile number noted on the face of this Order. Any notice or communication given as provided herein shall be deemed to have been received at the time of its delivery if delivered by hand, on the business day following its dispatch if transmitted by courier, e-mail, other electronic transmission or facsimile, or on the third business day following its mailing if sent by registered or certified mail. Either party may notify the other party, in the manner provided for herein, of any change of applicable address or facsimile number for the purpose of giving notices or sending communications under this Order.

 

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27. SURVIVAL. The obligations of Vendor to Buyer that are intended to survive termination of the Order shall survive any termination of this Order, including the obligations set forth in Section 18(a).

28. DEFAULT.

(a)  If Vendor shall (i) materially breach any provision hereof, and such breach shall not be corrected within five (5) days after written notice from Buyer to Vendor (or, if such breach is not correctable within five (5) days, then immediately upon receipt of such notice in accordance with Section 26), (ii) become insolvent, enters voluntary or involuntary bankruptcy or receivership or in the event of default, sequestration or seizure of Vendor’s operations under a mortgage, lien or privilege, then Buyer will have the right (without prejudice to any other rights or remedies it may have hereunder or by operation of law) to terminate all or a portion of the Order without any further liability to Vendor. A waiver of any one default hereunder shall not be considered a waiver to any subsequent default. Time is of the essence hereof, and Buyer’s right to require strict performance by Vendor shall not be affected by any waiver, forbearance or course of dealing.

(b) If Buyer shall (i) fail to pay amounts due and owing under this Order following any applicable grace period, and such breach shall not be corrected within five (5) days after written notice from Vendor to Buyer, or (ii) become insolvent, enters voluntary or involuntary bankruptcy or receivership or in the event of default, sequestration or seizure of Buyer’s operations under a mortgage, lien or privilege, then Vendor will have the right (without prejudice to any other rights or remedies it may have hereunder or by operation of law) to terminate all or a portion of the Order without any further liability to Buyer.

29. INDEPENDENT CONTRACTOR. Vendor is an independent contractor with respect to performance of all work, materials and articles provided hereunder and neither Vendor nor anyone employed by Vendor shall be deemed for any purpose to be the employee, agent, servant or representative of Buyer for performance of any work or service hereunder. Buyer shall have no direction or control of Vendor or its employees, agents or subcontractors and reserves no right to direct or control Vendor, its employees, agents or subcontractors, Buyer being interested only in the results to be obtained. The articles, materials and work furnished, as applicable, hereunder shall meet the approval of Buyer and be subject to the general right of inspection provided herein for Buyer to secure the satisfactory completion thereof for such sole remedy shall be the Vendor’s Warranty or other remedies provided herein.

30. APPLICABLE LAW AND VENUE. This Order shall be construed and enforced in accordance with and governed by the laws of the State of Mississippi (excluding conflicts of law rules) and the federal laws of the United States, as applicable. For greater certainty, the United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Order.

 

 

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31.  DISPUTE RESOLUTION.  In the event of a dispute under this Order, both Parties agree to negotiate in good faith for a period of thirty (30) days following delivery of a notice of dispute by one party to the other party.   If the parties fail to reach an agreement within such thirty (30) day period of time, then either party may submit such dispute to binding arbitration to be governed by the Commercial Arbitration guidelines of the American Arbitration Association with all such arbitrations to take place in Tunica, Mississippi.

	
Flux Power, Inc.

	  	  	
GreenTech Automotive, Inc.

	  
	
Signature:

	
/s/ Chris Anthony

	  	
Signature:

	
/s/ Gary Tang

	
Title:

	
Chief Executive Officer

	  	
Title:

	
EVP Finance

	
Date:

	
4/27/2012

	  	
Date:

	
4/27/2012

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EXHIBIT A

Flux Power, Inc.

Limited Warranty

 

Flux Power, Inc. Battery and Battery Management Systems Limited Parts and Labor Goods Warranty for GreenTech Automotive as referenced in the Agreement.

 

General Warranty

Vendor provides to Buyer this limited warranty of the Battery Management System, related hardware and any portion of the battery excluding battery cells (“BMS”) for a period of five (5) years or sixty thousand miles, whichever comes first.  The Vendor warrants that the BMS shall (i) conform to all drawings and specifications furnished by Vendor; (ii) comply with all applicable United States and European Union laws, regulations, rules, codes and standards, and use reasonable efforts within the next year to comply with Denmark laws, regulations, rules, codes and standards of the BMS; (iii) be free from any defects in design; (iv) be free from any defects in materials, service and workmanship; (v) be fit, sufficient and suitable for the particular purpose for which Vendor has designed; and (vi) be free of all liens, claims, charges and encumbrances whatsoever.

Battery Cell Warranty

Vendor provides to Buyer this limited, amortized over the life of the cell, warranty of Vendor’s battery cell (“Cell”) for a period of five (5) years or sixty thousand miles whichever comes first for 100% of the price paid or replacement thereof for a Failed Cell (as defined below) if the failure occurs in the first, second and/or third year; fifty percent of the price paid or replacement thereof for a Failed Cell if the failure occurs in the fourth year; and thirty-three percent of the price paid or replacement thereof for a Failed Cell if the failure occurs in the fifth year.  The decision whether a Failed Cell will be result in a full (or partial) refund or a replacement shall be at the discretion of the Buyer where Vendor has the ability to over a replaceable Cell in like condition within a year of the Failed Cell.  A “Failed Cell” shall mean at any time the Cell’s capacity, taken as a whole, is below sixty (60) percent of the stated capacity as specified in the cell specifications provided by the Vendor and is within the parameters covered under the Battery Cell Warranty and all limitations defined herein (the “Capacity”).  The Vendor warrants that each Cell shall comply with all applicable United States and European Union laws, regulations, rules, codes and standards, and use reasonable efforts within the next year to comply with Denmark laws, regulations, rules, codes and standards of the Cell and its contents.

Goods Warranty

The BMS, Cell and all other portions of the battery herein after (“Goods”) and the General Warranty and the Cell Warranty (herein after “Goods Warranty”) period shall commence on the earlier of (i) the date the Goods were delivered by the Buyer to the end-user of the battery, or (ii) six months from Buyer’s receipt of the Goods.

 

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Goods Remedy

The Buyer, by itself or through a distributor, shall make an initial determination of whether a Good violates this warranty by using reasonably appropriate testing of the Goods. If a claim is received by Vendor that any of the Goods fail to meet the Good’s Warranty, Vendor shall, upon notice thereof from Buyer, shall promptly review and respond to claim.  If Vendor needs to perform additional analysis regarding the claim and needs the Goods to perform such analysis Vendor shall issue a return merchandise authorization (“RMA”) number such that the Goods can be shipped back to Vendor, at Buyer’s costs.  Upon completing an analysis, which shall not exceed 30 thirty days, on the Goods relating to the claim Vendor shall issue an RMA analysis report which shall provide details regarding the results of the analysis and if the Goods are warrantied per the Goods Warranty.  In the event Vendor agrees that the Goods are under warranty the RMA analysis report shall also identify the reimbursement method for the failed good selected by Buyer where Vendor has the ability to over a replaceable Cell in like condition within a year of the Failed Cell (“Failed Good”) which may include providing replacement Goods in the same or better condition as it relates to the life of a Good.  Any payment and shipping costs or other reasonable and related costs, upon pre-approval by Vendor, made by Buyer for Failed Good shall be refunded by Vendor, except to the extent that Vendor promptly replaces or corrects the same at Vendor’s expense.  In the event Vendor fails to either replace or refund the amount paid in accordance with the Goods Warranty or respond to a claim within (30) thirty days from receipt of the Goods under an RMA, Vendor is deemed to agree to the Goods are covered by the Goods Warranty and Buyer may take a credit for such claim.  If Vendor disputes a claim made by Buyer than such dispute shall be discussed between Vendor and Buyer and if unresolved shall than be raised to respective executive managements within each party for a discussion prior to taking further action.

Additionally, Vendor shall indemnify and hold Buyer, its subsidiaries and affiliates, their respective successors, assigns, representatives, employees and agents, the Customer and users of the Goods, harmless from and against all liabilities, demands, claims, losses, costs, damages and expenses of any nature or kind (including consequential and special damages, death, personal injury, property damage, lost profits and other economic losses, recall or other Customer field service action costs at rates mutually agreed upon in schedule, production interruption costs, inspection, handling and reworking charges, court costs, legal and other professional fees, and other costs associated with any indemnified party’s administrative time, labor and materials) only as it relates to a Failed Good, court costs, legal and other professional fees, labor and materials arising from or relating to: (i) any breach of the Vendor’s Warranties; (ii) any other acts, omissions or negligence of Vendor or of any of its subcontractors or suppliers in connection with Vendor’s performance of its obligations under this Order.

Buyer shall indemnify and hold Vendor, its subsidiaries and affiliates, their respective successors, assigns, representatives, employees and agents, harmless from and against all liabilities, demands, claims, losses, costs, damages and expenses of any nature or kind (including consequential and special damages, death, personal injury, property damage, lost profits and other economic losses, recall or other Customer field service action costs, production interruption costs, inspection, handling and reworking charges, court costs, legal and other professional fees, and other costs associated with any indemnified party’s administrative time, labor and materials) that are related to the failure of components of the Buyer’s vehicles that are not the Goods.

 

 

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Conditions, Limitation and Exclusions

Buyer must use reasonable efforts to notify Vendor when made aware of a possible claim.  Only Buyer and its authorized distributors may make a warranty claim on behalf of their Customers, channel partners and users of the Goods.

Warranty Limitations

This warranty is void if (i) the Goods’ date code or serial number is intentionally defaced, missing or altered and there is no other means of determining ownership of the Goods; (ii) the Goods have been damaged by improper installation, loose connections, failure of another part in the vehicle system or the claim results from accident, misuse, improper charging, neglect, or improper service; (iii) the Goods have been tampered with, modified or used in a manner contrary to its intended purpose which significantly affects the Goods ability to perform in accordance with their stated purpose; and (iv) the Goods have been damaged as a result from abuse, accidents, fire (if such fire is not caused by the battery, BMS or Cells), flood, or other acts of God; and (v) except in the event of normal maintenance (including root cause analysis), a cell cannot be associated and identified with a specific BMS upon assembly with a BMS at the Buyer’s facility and during the remainder of the cell life and such identification is at no fault of the BMS.

This Warranty does not cover damages that result from abuse, accidents, or fire, flood or other acts of God unless such accident or fire resulted from the battery, the BMS or a Cell. Removal, installation transportation, labor, damage to other components, personal damage or injury and/or any injury or liability to other persons or property are specifically included from this limited warranty.

Additional warranty limitations are product and use specific and will be further defined in the attachments hereto which may be updated and added to upon mutually agreement by the parties.

General Provisions

The Goods may be modified or improved over time in subsequent versions of the Goods. Vendor reserves the right to make changes to future versions of the Goods without assuming any obligation to make such changes on your Goods unless such change is a result of a series of product liability claims whether or not claims result in a product recall. Your Goods have been engineered and tested by Vendor.  However, as Vendor gains additional field experience with the Goods, if Vendor determines that there is a systematic defect in the Goods, Vendor may initiate a voluntary Goods recall at Vendor’s cost. Any replacement Good shall have a warranty period equal to the warranty period that would have been applicable to the original Good if it was not replaced.  The remedies set forth in this paragraph are your sole and exclusive remedy in the event of a voluntary recall unless a warranty claim is made prior to delivery of the Goods pursuant to the voluntary recall. In the event you choose not to participate in a voluntary recall after three (3) months after delivery of such voluntary recall notice, to the extent permitted by law, the express warranties set forth herein shall be void.

 

 

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THE DURATION OF ANY IMPLIED WARRANTY INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE SHALL BE LIMITED TO THE DURATION OF THE APPLICABLE EXPRESS WARRANTY SET FORTH ABOVE.

 

 

 

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ATTACHEMENT A

 

Flux’s Acceptable Limitations:

Warranty Limitations for the Buyer’s Product (MyCar Model Number ____)

For a 5yr 60,000mile on Buyer’s 15KWh+ systems using Buyer’s current 72v 250a drive system:  The Cell Warranty is void if at no cause by the BMS: (a) any individual cell within a battery pack extends outside the voltage range of 2.3 volts to 3.9 volts, (f) the amount of discharge current exceeds 500 amp peak for longer than 10 seconds at any one time, (g) the maximum constant charge current exceeds 50 amps at any one time and the maximum peak charge current exceeds 100 amps at any one time, (h) the battery has exceeded the temperature rage of a negative -25 degrees Celsius to a positive 65 degrees Celsius while in operation. 

 

 

 

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