Document:

ex10-2.htm

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”) is made and entered into as of [●], by and between Digital Power Corporation (the “Company”), a California corporation, with offices at 49430 Lakeview Boulevard, Fremont, CA 94538, and [●],with an address at [●] (the “Purchaser”).

 

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

 

	
1.
	
Definitions. As used in this Agreement, the following terms shall have the respective meanings set forth in this Section 1.

 

“Advice” shall have the meaning set forth in Section 6(c).

 

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 144.

 

“Business Day” means any day except Saturday, Sunday and any day that shall be a federal legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

“Commission” means the Securities and Exchange Commission.

 

“Common Stock” means the Company’s common stock, no par value.

 

“Effective Date” means the date that the Registration Statement filed pursuant to Section 2(a) is first declared effective by the Commission.

 

“Effectiveness Date” means: (a) with respect to the initial Registration Statement required to be filed to cover the resale by the Holder of the Registrable Securities, the earlier of: (i) the 90th day (120th day if the Registration Statement is subject to Commission review) following the date hereof or (ii) the fifth trading day following the date on which the Company is notified by the Commission that the initial Registration Statement will not be reviewed or is no longer subject to further review and comments, and (b) with respect to any additional Registration Statements that may be required pursuant to Sections 2(a) and (b) hereof, the earlier of: (i) the 90th day (120th day if the Registration Statement is subject to Commission review) following the date on which the Company first knows, or reasonably should have known, that such additional Registration Statement is required under such Sections or (ii) the fifth trading day following the date on which the Company is notified by the Commission that such additional Registration Statement will not be reviewed or is no longer subject to further review and comments. “Effectiveness Date” shall also have the meaning specified in Section 2(b).

 

“Effectiveness Period” shall have the meaning set forth in Section 2(a).

 

“Exchange Act” means the Securities Exchange Act of 1934.

 

“Filing Date” means: (a) with respect to the initial Registration Statement required to be filed to cover the resale by the Holder of the Registrable Securities, the 30th day following the date hereof, and (b) with respect to any additional Registration Statements that may be required pursuant to Sections 2(a) and (b) hereof, the 30th day following the date on which the Company first knows, or reasonably should have known, that such additional Registration Statement is required under such Sections.

 

 

 

 

 

“Holder” or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying Party” shall have the meaning set forth in Section 5(c).

 

“Losses” shall have the meaning set forth in Section 5(a).

 

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

“Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

 

“Registrable Securities” means the shares of Common Stock for which the Series C Preferred Stock may be converted and the Warrants may be exercised, together with any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event, or any Series C Preferred Stock conversion rate or Warrant exercise price adjustment with respect thereto.

 

“Registration Statement” means each of the following: (i) an initial registration statement which is required to register the resale of the Registrable Securities, and (ii) each additional registration statement, if any, contemplated by Sections 2(a) and (b), and including, in each case, the Prospectus, amendments and supplements to each such registration statement or Prospectus, including pre-and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

 

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“Securities Act” means the Securities Act of 1933.

 

“Selling Stockholders” shall have meaning defined in Section 3(b)(iii)

 

“Series C Preferred Stock” means the shares of Series C Preferred Stock of the Company, which is part of the Unit. 

 

“Transfer Agent” means the transfer agent for the Common Stock.

 

“Transaction Documents” means this Agreement, the Series C Preferred Stock, the Warrants, and any other documents or agreements executed in connection with the transactions contemplated hereunder and in the Series C Preferred Stock and Warrants.

 

“Units” means the Units purchased by the Purchaser each Unit consisting of 20,000 shares of Series C Preferred Stock and Warrants to purchase 80,000 shares of Common stock. 

 

“Warrants” means Warrants to purchase shares of Common Stock at $1.00 per share.

 

	
2.
	
Registration.

 

(a)     Initial Registration Statements. On or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all Registrable Securities not already covered by an existing and effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415. The Registration Statement shall be on Form S-3, or another appropriate form for such purpose, and shall contain such other documentation as may be required by the Commission. The Company shall cause the Registration Statement to be declared effective under the Securities Act as soon as possible but, in any event, no later than the Effectiveness Date, and shall use its best efforts to keep the Registration Statement continuously effective under the Securities Act until the date that is two years after the date that the Registration Statement is declared effective by the Commission or such earlier date when all Registrable Securities covered by the Registration Statement have been sold or may be sold pursuant to Rule 144(b)(1) as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the affected Holder (the “Effectiveness Period”). It is agreed and understood that the Company shall, from time to time, be obligated to file an additional Registration Statement to cover any Registrable Securities that are not registered for resale pursuant to a pre-existing Registration Statement. 

 

(b)     Additional Registration Statements. If for any reason the Commission does not permit all of the Registrable Securities to be included in the Registration Statement filed pursuant to Section 2(a), then the Company shall prepare and file as soon as possible after the date on which the Commission shall indicate as being the first date or time that such filing may be made, but in any event by the 30th day following such date, an additional Registration Statement covering the resale of all Registrable Securities not already covered by an existing and effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415, on Form S-3 or another appropriate form for such purpose. Each such Registration Statement shall contain such other documentation as may be required by the Commission. The Company shall cause each such Registration Statement to be declared effective under the Securities Act as soon as possible (the “Effectiveness Date”) and shall use its best efforts to keep such Registration Statement continuously effective under the Securities Act during the entire Effectiveness Period. 

 

 

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(c)     Issuance of Legal Opinion. Within three business days after the Effectiveness Date of a Registration Statement, the Company shall cause its counsel to issue a blanket opinion in the form attached hereto as Exhibit A, to the Transfer Agent stating that the Shares, as defined therein, are subject to an effective registration statement and can be reissued free of restrictive legend upon notice of a sale by the Purchaser and confirmation by the Purchaser that it has complied with the prospectus delivery requirements, provided that the Company has not advised the Transfer Agent in writing that the opinion has been withdrawn. Copies of the blanket opinion required by this Section 2(c) shall be delivered to the Purchaser within the time period set forth above.

 

	
3.
	
Registration Procedures. In connection with the Company’s registration obligations hereunder, the Company shall:

 

(a)     Not less than four trading days prior to the filing of a Registration Statement or any related Prospectus or any amendment or supplement thereto, furnish to the Holder copies of all such documents proposed to be filed, which documents (other than those incorporated by reference) will be subject to review by such Holder. The Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall, in writing, reasonably object in good faith.

 

(b)     (i) Prepare and file with the Commission such amendments, including post-effective amendments, to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible, and in any event within ten trading days, to any comments received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably possible, provide the Holders true and complete copies of all correspondence from and to the Commission relating to such Registration Statement that pertains to the Holder as selling stockholder (the “Selling Stockholder”) but not any comments that would result in the disclosure to the Holder of material and non-public information concerning the Company; and (iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the Registration Statements and the disposition of all Registrable Securities covered by each Registration Statement.

 

(c)     Notify the Holder as promptly as reasonably possible (and, in the case of (i)(A) below, not less than four trading days prior to such filing) and (if requested by any such Holder) confirm such notice in writing no later than one trading day following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration Statement (the Company shall provide true and complete copies thereof and all written responses thereto to each of the Holders that pertain to such Holder as a Selling Stockholder or to the Plan of Distribution, but not information which the Company believes would constitute material and non-public information); and (C) with respect to each Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration Statement or Prospectus or for additional information that pertains to the Holder as Selling Stockholder or the Plan of Distribution; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

 

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(d)     Use its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(e)     Furnish to each Holder, without charge, at least one conformed copy of each Registration Statement and each amendment thereto and all exhibits to the extent requested by such Holder (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission; provided, however, that the Company shall have no obligation to provide any document pursuant to this clause that is available on the EDGAR system.

 

(f)     Promptly deliver to each Holder, without charge, as many copies of each Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Holder may reasonably request. The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto.

 

(g)     Prior to any public offering of Registrable Securities, use its best efforts to register or qualify or cooperate with the selling Holder in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws of those jurisdictions within the United States set forth on Schedule 3(g) hereto to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the Registration Statements; provided, however, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or subject the Company to any material tax in any such jurisdiction where it is not then so subject or to take such actions in states that require merit review.

 

(h)     Cooperate with the Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to the Registration Statements, which certificates shall be free, to the extent permitted by the Transaction Documents and applicable securities laws, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may request. The Company shall cause the Transfer Agent to transmit the Registrable Securities to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission system if the Company is then a participant in such system. 

 

(i)     Upon the occurrence of any event contemplated by Section 3(c)(v), as promptly as reasonably possible, prepare a supplement or amendment, including a post-effective amendment, to the affected Registration Statements or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

 

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The Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common Stock beneficially owned by such Holder and any Affiliate thereof.

 

4.             Registration Expenses. All fees and expenses incident to the Company’s performance of its obligation under this Agreement (excluding any underwriting discounts and selling commissions and all legal fees and expenses of legal counsel for any Holder) shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with the trading market on which the Common Stock is then listed for trading, and (B) in compliance with applicable state securities or Blue Sky laws), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the Holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.

 

5.             Indemnification. 

 

(a)     Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the officers, directors, agents, attorneys, investment advisors, partners, members, shareholders and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents, attorneys and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation and reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto) or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (1) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of an Advice, as defined in Section 6(c) below, or an amended or supplemented Prospectus, but only if and to the extent that following the receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission giving rise to such Loss would have been corrected. The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement.

 

 

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(b)     Indemnification by Holder. Each Holder shall, notwithstanding any termination of this Agreement, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents, attorneys and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents, attorneys or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising solely out of or based solely upon: (x) such Holder’s failure to comply with the prospectus delivery requirements of the Securities Act or (y) any untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising solely out of or based solely upon any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading to the extent, but only to the extent that, (1) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only if and to the extent that following the receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission giving rise to such Loss would have been corrected. In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

 

(c)     Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, however, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party.

 

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party); provided, however, that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys at any time for all Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding. 

 

 

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All fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten trading days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, however, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder).

 

(d)     Contribution. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 5(c), any reasonable attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms.

 

The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.

 

The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties.

 

6.             Miscellaneous

 

(a)     Remedies. In the event of a breach by the Company or by a Holder, of any of their obligations under this Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

 

 

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(b)     Compliance. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

(c)     Discontinued Disposition. Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section 3(c), such Holder will forthwith discontinue disposition of such Registrable Securities under the Registration Statement until such Holder’s receipt of the copies of the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company may provide appropriate stop orders to enforce the provisions of this paragraph.

 

(d)     Amendments and Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed by the Company and the Holder or Holders (as applicable) of no less than a majority of the then outstanding Registrable Securities. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right. 

 

(e)     Notices. All offers, acceptances, notices, requests, demands and other communications under this Agreement shall be in writing and, except as otherwise provided herein, shall be deemed to have been given only: (i) when delivered in person; (ii) one day after deposit with a nationally recognized overnight courier service; or, (iii) five days after having been mailed by certified or registered mail prepaid, to the parties at their respective addresses first set forth above, or at such other address as may be given in writing in future by either party to the other. Notice may also be given via electronic or facsimile transmission to a party who provides such party’s fax number or email address to the other party and shall be deemed to have been given if receipt thereof is confirmed by the recipient. If Notice is to be given to any other Person who is then the registered Holder, to the address of such Holder as it appears in the stock transfer books of the Company or such other address as may be designated in writing hereafter, in the same manner, by such Person. 

 

(f)     Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign its rights or obligations hereunder without the prior written consent of each Holder. Holders may assign their respective rights hereunder in the manner and to the Persons as permitted under the Transaction Documents.

 

(g)     Execution and Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile or electronic transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile or electronic signature were the original thereof.

 

 

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(h)     Governing Law; Venue. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates, employees or agents) may be commenced in the state and federal courts sitting in the County and State of New York,. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any Proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If any party shall commence a Proceeding to enforce any provisions of this Agreement, then the prevailing party in such Proceeding shall be reimbursed by the other party for its attorney’s fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding.

 

(i)     Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

 

(j)     Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

(k)     Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(l)     Independent Nature of Holder’s Obligations and Rights. The obligations of each Holder hereunder are several and not joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder. Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose.

 

(m)     Gender. The use herein of the masculine pronouns or similar terms shall be deemed to include the feminine and neuter genders as well and vice versa and the use of the singular pronouns shall be deemed to include the plural as well and vice versa.

 

(signature page to follow)

 

 

10

 

 

IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

 

DIGITAL POWER CORPORATION

 

 

	
By:
	
 
	 
	Name:	Amos Kohn	 
	Title:	President and Chief Executive Officer 	 
	 	 	 
	[●]	 	 
	 	 	 
	 	 	 
	By:	 	 
	Name:	[●]	 
	Title:	[●] 	 

 

 

11

 

 

EXHIBIT A

 

[●]

 

Computershare

250 Royall Street, 

Canton, MA 02021

 

Digital Power Corporation 

Registration Statement on Form S-3

 

 

Ladies and Gentlemen:

 

As counsel to Digital Power Corporation, a California corporation (the “Company”), we have been requested to render our opinion to you in connection with the resale by the individuals or entities listed on Schedule A attached hereto (the “Selling Stockholders”), of an aggregate of [amount] shares (the “Shares”) of the Company’s Common Stock.

 

A Registration Statement on Form S-3 under the Securities Act of 1933 (the “Act”), with respect to the resale of the Shares was declared effective by the Securities and Exchange Commission on [●]. Enclosed is the Prospectus dated [●]. We understand that the Shares are to be offered and sold in the manner described in the Prospectus.

 

Based upon the foregoing, upon request by the Selling Stockholders at any time while the registration statement remains effective, it is our opinion that the Shares have been registered for resale under the Act and new certificates evidencing the Shares upon their transfer or re-registration by the Selling Stockholders may be issued without restrictive legend. We will advise you if the registration statement is not available or effective at any point in the future.

 

	
 
	
Very truly yours,

	 	 
	 	 
	 	[●]

 

 

 

 

SCHEDULE 3(g)

 

BLUE SKY JURISDICTIONS

 

N/AEX-10.1

 Exhibit 10.1 

THIRD AMENDMENT TO 

AMENDED AND RESTATED CREDIT AGREEMENT 

THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of May 31, 2017,
among MERITAGE HOMES CORPORATION, a Maryland corporation (the “Borrower”), JPMORGAN CHASE BANK, N.A., as administrative agent on behalf of the Lenders (in such capacity, together with its successors and assigns in such capacity, the
“Administrative Agent”), and as Swingline Lender and as Issuing Lender and the Lenders party hereto. 
 RECITALS:

 A.    The Borrower, the Administrative Agent and the Lenders are parties to that certain Amended
and Restated Credit Agreement dated as of June 13, 2014, as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of July 9, 2015, and that certain Second Amendment to Amended and Restated Credit
Agreement dated as of June 29, 2016 (as the same may be further amended, modified and supplemented and in effect from time to time, the “Credit Agreement”; and, except as otherwise herein expressly provided, all capitalized
terms used herein shall have the meaning assigned to such terms in the Credit Agreement). 
 B.    The
Borrower, the Administrative Agent and the Lenders desire to amend the Credit Agreement as more fully set forth herein. 

C.    As of the date hereof, a new Lender, Mizuho Bank, Ltd., has become a Lender under the Credit
Agreement (as amended by this Amendment). 
 NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 

Section 1.    Amendment of Credit Agreement. Effective as of the Effective Date (as
hereinafter defined), the Credit Agreement is hereby amended as follows: 
 (a)    The cover page of the
Credit Agreement is hereby amended by amending and restating the references to Documentation Agents, Joint Lead Bookrunners and Joint Lead Arrangers to read in their entirety as follows: 

“BANK OF AMERICA, N.A., PNC CAPITAL MARKETS, LLC, ROYAL BANK OF CANADA, U.S. BANK
NATIONAL ASSOCIATION, and MIZUHO BANK, LTD., as Documentation Agents” 
 “JPMORGAN
CHASE BANK, N.A., CITIGROUP GLOBAL MARKETS INC., MERRILL LYNCH PIERCE, FENNER & SMITH INCORPORATED, PNC CAPITAL MARKETS, LLC, ROYAL BANK OF CANADA, U.S. BANK NATIONAL ASSOCIATION, and MIZUHO BANK, LTD., as Joint Lead Bookrunners” 

“JPMORGAN CHASE BANK, N.A., CITIGROUP GLOBAL MARKETS INC., MERRILL LYNCH PIERCE,
FENNER & SMITH INCORPORATED, PNC CAPITAL MARKETS, LLC, ROYAL BANK OF CANADA, U.S. BANK NATIONAL ASSOCIATION, and MIZUHO BANK, LTD., as Joint Lead Arrangers” 

 (b)    The opening paragraph on page 1 of the Credit
Agreement is hereby amended by removing “DEUTSCHE BANK SECURITIES INC.”, “MERRILL LYNCH PIERCE, FENNER & SMITH INCORPORATED” and “REGIONS BANK” from the list of entities identified as documentation agents, and
adding “BANK OF AMERICA, N.A.” and “MIZUHO BANK, LTD.” to the list of entities identified as documentation agents. 

(c)    The following defined terms is hereby added to Section 1.1 of the Credit
Agreement as follows: 
 “Lender Parent” means, with respect to any Lender,
any Person as to which such Lender is, directly or indirectly, a subsidiary. 
 (d)    The following
defined terms in Section 1.1 of the Credit Agreement are hereby amended and restated in their entirety to read as follows: 

“Arrangers”: collectively, JPMorgan Chase Bank, N.A., Citigroup Global
Markets Inc., Merrill Lynch Pierce, Fenner & Smith Incorporated, PNC Capital Markets, LLC, Royal Bank Of Canada, U.S. Bank National Association and Mizuho Bank, Ltd. 

“Class A Commitment”: as to any Class A Lender, the
obligation of such Class A Lender, if any, to make Class A Revolving Loans and participate in Swingline Loans and Letters of Credit in an aggregate principal and/or face amount not to exceed the amount set forth under the heading
“Commitment” opposite such Class A Lender’s name on Schedule 1.1A or in the Assignment and Assumption pursuant to which such Lender became a party hereto, as the same may be changed from time to time pursuant to the terms hereof.
The original aggregate amount of the Class A Commitments is $565,000,000. 

“Class A Termination Date”: July 9, 2021, subject,
however, to earlier termination of the Total Commitment pursuant of the terms of this Agreement. 

“Commitment”: with respect to each Class A Lender, such Class A
Lender’s Class A Commitment and with respect to each Class B Lender, such Class B Lender’s Class B Commitment. The original amount of the Total Commitment is $625,000,000. 

“Documentation Agent”: collectively, Bank of America, N.A., PNC Capital
Markets, LLC, Royal Bank Of Canada, U.S. Bank National Association, and Mizuho Bank, Ltd. 
 (e)    The
definition of “Defaulting Lender” in Section 1.1 of the Credit Agreement is hereby amended to add at the end of clause (d) thereof the following words: “(each such event in this clause (d), a
“Bankruptcy Event”)”. 
 (f)    Clause (a) of the definition of “Eligible
Assignee” in Section 1.1 of the Credit Agreement is hereby amended to add at the words “or its Lender Parent” after the words “Defaulting Lender”. 

(g)    The definition of “Federal Funds Effective Rate” in Section 1.1 of the
Credit Agreement is hereby amended to add the following proviso at the end: “, provided that if the Federal Funds Effective Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement”. 

  
 2 

 (h)    The definition of “L/C Commitment” in
Section 1.1 of the Credit Agreement is hereby amended and restated to read as follows: 

“L/C Commitment”: up to $312,500,000, provided, however, that
it is acknowledged and agreed that notwithstanding the foregoing maximum L/C Commitment, as of May 31, 2017, the aggregate amount of Issuing Lender Letter of Credit Commitments set forth on Schedule 3.1A is $250,000,000, and the
foregoing maximum L/C Commitment is subject to the consent by one or more Issuing Lenders to increase its Letter of Credit Commitment by an amount, which when added to the Letter of Credit Commitments of all the Issuing Lenders as of May 26,
2017, does not exceed the maximum L/C Commitment of $312,500,000; provided, further, however, that the maximum L/C Commitment automatically shall be increased by an amount equal to fifty percent (50%) of each dollar increase by
which the Total Commitments have been increased in accordance with Section 2.21, provided that one or more Issuing Lenders consents to increase its Letter of Credit Commitment by such increased amount and, if one or more
Issuing Lenders consents to increase its Letter of Credit Commitment by an amount less than such increased amount, then only the total amount of such aggregate increased Letter of Credit Commitment amount. 

(i)    Section 2.20 of the Credit Agreement is hereby amended by adding the following subsection (d) at the
end of such Section: 
 “(d)     If (i) a Bankruptcy Event or
a Bail-In Action with respect to a Lender Parent shall occur following the date hereof and for so long as such event shall continue or (ii) any Swingline Lender or the Issuing Lender has a good faith
belief that any Lender has defaulted in fulfilling its obligations under one or more other agreements in which such Lender commits to extend credit, no Swingline Lender shall be required to fund any Swingline Loan and the Issuing Lender shall not be
required to issue, amend or increase any Letter of Credit, unless the Swingline Lender or the Issuing Lender, as the case may be, shall have entered into arrangements with the Borrower or such Lender, satisfactory to the Swingline Lender or the
Issuing Lender, as the case may be, to defease any risk to it in respect of such Lender hereunder.”. 

(j)    Section 2.21 of the Credit Agreement is hereby amended by replacing the amount “$600,000,000” in
such Section with the amount “$725,000,000”. 
 (k)    Section 7.1(c) of the Credit Agreement is hereby
amended and restated to read as follows: 
 “(c) Minimum Net Worth Test. As of
the end of each fiscal quarter, fail to maintain minimum Consolidated Tangible Net Worth of not less than (a) $987,407,400 plus (b) the sum of (i) 50% of the cumulative Consolidated Net Income, if positive, of the Loan Parties and their
Subsidiaries plus (ii) 50% of the net proceeds from any equity offerings of Borrower, in each case, from and after March 31, 2017.” 

(l)    Section 7.7 of the Credit Agreement is hereby deleted in its entirety and replaced with the words
“Intentionally omitted”. 
 (m)    Schedule 1.1A of the Credit Agreement is hereby deleted in its
entirety and replaced with Schedule 1.1A attached hereto. 

  
 3 

 Section 2.    Existing Revolving Loans. With
respect to existing outstanding Revolving Loans as of the Effective Date and the increase in Total Commitments of the Lenders, on the Effective Date, Borrower shall borrow Revolving Loans from each Lender in accordance with its Commitment as of the
Effective Date on a pro rata basis in an amount determined by reference to the amount of each Type of Loan (and, in the case of Eurodollar Loans, of each Eurodollar Tranche) which would then have been outstanding from such Lender if (x) each
such Type or Eurodollar Tranche had been borrowed or effected on the Effective Date and (y) the aggregate amount of each such Type or Eurodollar Tranche requested to be so borrowed or effected had been proportionately increased, and shall
accordingly repay on a pro rata basis outstanding Revolving Loans of each Lender with Commitments immediately prior to the Effective Date on a pro rata basis in an amount determined by reference to the amount of each Type of Loan (and, in the case
of Eurodollar Loans, of each Eurodollar Tranche) which would then have been outstanding from such Lender if (x) each such Type or Eurodollar Tranche had been borrowed or effected on the Effective Date and (y) the aggregate amount of each
such Type or Eurodollar Tranche requested to be so borrowed or effected had been proportionately decreased, and, if applicable in connection with such increased Commitments and repayment, Borrower shall pay all amounts due under
Section 2.17. The Eurodollar Base Rate applicable to any Eurodollar Loan borrowed pursuant to the preceding sentence shall equal the rate then applicable to the Eurodollar Loans of the other Lenders in the same Eurodollar
Tranche (or, until the expiration of the then-current Interest Period, such other rate as shall be agreed upon between Borrower and the relevant Lender). 

Section 3.    New Lender. As of the Effective Date, Mizuho Bank, Ltd., pursuant to a New
Lender Supplement dated as of the Effective Date, has become a Lender under the Credit Agreement (as amended by this Amendment) with the Commitment set forth in Schedule 1.1A attached hereto. 

Section 4.    Effective Date. Subject to the satisfaction of the conditions set forth in
Section 6 hereof, this Amendment shall be effective as of the date of this Amendment (the “Effective Date”). 

Section 5.    Representations. The Borrower hereby represents and warrants to the
Administrative Agent and the Lenders, as follows: 
 (a)    Each of the representations and warranties
contained in the Credit Agreement, as amended by this Amendment, or any of the other Loan Documents, is true and correct in all material respects (except any representations and warranties which are qualified by materiality, shall be correct and
accurate in all respects) on and as of the date hereof except if any such representation or warranty was made as of a specific date, then the same shall have been true and correct in all material respects as of such specific date; 

(b)    As of the date hereof and immediately after giving effect to this Amendment and the actions
contemplated hereby, no Default or Event of Default has occurred and is continuing; 
 (c)    Borrower
has all necessary corporate power and authority to execute, deliver and perform its obligations under this Amendment; the execution, delivery and performance of this Amendment has been duly authorized by all necessary corporate action on the part of
Borrower; and this Amendment has been duly and validly executed and delivered by Borrower and constitutes the legal, valid and binding obligation of Borrower, enforceable in accordance with its respective terms, except as such enforceability may be
limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and (ii) the application of general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law); 
 (d)    This Amendment
(i) does not require any consent or approval of, registration or 

  
 4 

 
filing with, or any other action by, any governmental authority, except for such as have been obtained or made and are in full force and effect, (ii) will not violate any applicable law or
regulation, the certificate of incorporation or by-laws of Borrower, or any order of any governmental authority and (iii) will not violate or result in a default under any Contractual Obligation of
Borrower; 
 (e)    Neither the Borrower nor any Guarantor is an EEA Financial Institution. 

Section 6.    Conditions to the Effectiveness of this Amendment. It shall be a condition
precedent to the effectiveness of this Amendment that each of the following conditions are satisfied: 

(a)    the parties hereto shall have executed and delivered counterparts of this Amendment to the
Administrative Agent; 
 (b)    each Guarantor shall have executed and delivered a Reaffirmation of
Amended and Restated Guarantee Agreement, in the form of the Reaffirmation of Guarantee Agreement attached hereto as Exhibit A; 

(c)    to the extent changed since June 29, 2016, Borrower shall have delivered to the Administrative
Agent updated corporate formation and organizational documents of Borrower and Guarantors (certified by Borrower, Guarantors or public officials, as appropriate), including resolutions and incumbency certificates; 

(d)    Administrative Agent shall have received such opinions with respect to Borrower as Administrative
Agent may require concerning the due authorization, execution, delivery and enforceability of this Amendment; 

(e)    no Default or Event of Default shall exist as of the Effective Date; 

(f)    Borrower shall have delivered to the Administrative Agent a duly executed Compliance Certificate
and a Borrowing Base Certificate, each for the period ending March 31, 2017; 
 (g)    Borrower
shall have delivered to Administrative Agent a copy of the filed Form 10-Q for Borrower and its Subsidiaries for the fiscal quarter ended March 31, 2017; 

(h)    Borrower shall have delivered to Administrative Agent such other agreements, instruments and
documents as Administrative Agent, its counsel or any Lender shall reasonably request; 

(i)    Borrower shall have paid to the Administrative Agent and the Lenders all fees required to be paid
in connection with this Amendment; and 
 (j)    Borrower shall have paid to the Administrative Agent
all of the Administrative Agent’s reasonable out of pocket costs and expenses, including legal fees, incurred in connection with this Amendment. 

Section 7.    Reaffirmation and Ratification. Borrower hereby: (a) reaffirms, ratifies,
confirms, and acknowledges its obligations under the Loan Documents and agrees to continue to be bound thereby and perform thereunder; (b) agrees and acknowledges that all such Loan Documents and all of Borrower’s obligations thereunder
are and remain in full force and effect and, except as expressly provided herein, have not been modified; and (c) acknowledges and agrees that to its knowledge it has no defenses, offsets or counterclaims of any kind or nature whatsoever to its
obligations under the Loan Documents. 

  
 5 

 Section 8.    Miscellaneous. 

(a)    GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK. 
 (b)    Amendments, Etc. The terms of this Amendment may be
waived, modified and amended only by an instrument in writing duly executed by Borrower and the Administrative Agent (with any required consent of the Lenders pursuant to the Credit Agreement). Any such waiver, modification or amendment shall be
binding upon Borrower, the Administrative Agent and each Lender (including the Swingline Lender and each Issuing Lender). 

(c)    Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the
respective successors and assigns of Borrower, the Administrative Agent and the Lenders (including the Swingline Lender and each Issuing Lender). 

(d)    Captions. The captions and section headings used herein are for convenience of reference
only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment. 

(e)    Counterparts. This Amendment may be executed in any number of counterparts, all of which
taken together shall constitute one and the same instrument and any of the parties hereto may execute this Amendment by signing any such counterpart. Delivery of an executed signature page of this Amendment by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof. 
 (f)    Severability. Any
provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 

[Signature pages follow.] 

  
 6 

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

					
	MERITAGE HOMES CORPORATION, as Borrower
		
	By:	 	/s/ Hilla Sferruzza
		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

 [Signatures continue on the next page.] 

 
					
	JPMORGAN CHASE BANK, N.A., as Administrative Agent, Issuing Lender, Swingline Lender and as a Class A Lender
		
	By:	 	/s/ Chiara Carter
	Name:	 	Chiara Carter
	Title:	 	Executive Director

 [Signatures continue on the next page.] 

 
			
	CITIBANK, N.A., as a Class A Lender
		
	By:	 	/s/ Michael Vondriska
	Name:	 	Michael Vondriska
	Title:	 	Vice President

 [Signatures continue on the next page.] 

 
			
	BANK OF AMERICA, N.A., as a Class A Lender and an Issuing Lender
		
	By:	 	/s/ Thomas W. Nowak
	Name:	 	Thomas A. Nowak
	Title:	 	Vide President

 
					
	REGIONS BANK, as a Class A Lender and an Issuing Lender
		
	By:	 	/s/ Randall S. Reid
		 	Name:	 	Randall S. Reid
		 	Title:	 	Senior Vice President

 [Signatures continue on the next page.] 

 
					
	U.S. BANK NATIONAL ASSOCIATION, as a Class A Lender and an Issuing Lender
		
	By:	 	/s/ Adrian B. Montero
		 	Name:	 	Adrian B. Montero
		 	Title:	 	Senior Vice President

 [Signatures continue on the next page.] 

 
					
	ROYAL BANK OF CANADA, as a Class A Lender
		
	By:	 	/s/ Sheena Lee
		 	Name:	 	Sheena Lee
		 	Title:	 	Authorized Signatory

 [Signatures continue on the next page.] 

 
					
	PNC BANK, NATIONAL ASSOCIATION, as a Class A Lender
		
	By:	 	/s/ J. Richard Litton
		 	Name:	 	J. Richard Litton
		 	Title:	 	Senior Vice President

 [Signatures continue on the next page.] 

 
			
	ZB, N.A. dba National Bank of Arizona, a national banking association, as a Class A Lender
		
	By:	 	/s/ Eric Damko
	Name:	 	Eric Damko
	Title:	 	Vice President

 [Signatures continue on the next page.] 

 
			
	TEXAS CAPITAL BANK, N.A., as a Class A Lender
		
	By:	 	 /s/ Carolynn Alexander

		 	Name: Carolynn Alexander
		 	Title: Senior Vice President

 [Signatures continue on the next page.] 

 
					
	COMERICA BANK, as a Class A Lender
		
	By:	 	/s/ Casey L. Stevenson
		 	Name:	 	Casey L. Stevenson
		 	Title:	 	Vice President

 [Signatures continue on the next page.] 

 
			
	FLAGSTAR BANK, FSB, as a Class A Lender
		
	By:	 	/s/ Philip Trujillo
	Name:	 	Philip Trujillo
	Title:	 	Vice President

 [Signatures continue on the next page.] 

 
			
	MIZUHO BANK, LTD., as a Class A Lender
		
	By:	 	/s/ John Davies
	Name:	 	John Davies
	Title:	 	Authorized Signatory

 EXHIBIT A 

REAFFIRMATION OF AMENDED AND RESTATED GUARANTEE AGREEMENT 

As consideration for the agreements and covenants contained in the within Amendment, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, each of the undersigned (“Guarantor”), as a guarantor under that certain Amended and Restated Guarantee Agreement, dated as of June 13, 2014, as
reaffirmed by that certain Reaffirmation of Amended and Restated Guarantee Agreement dated as of July 9, 2015 and that certain Reaffirmation of Amended and Restated Guarantee Agreement dated as of June 29, 2016 (collectively, the
“Guarantee Agreement”), delivered to the Administrative Agent in connection with the extension of credit made by the Lenders pursuant to the Credit Agreement referred to above, hereby acknowledges, covenants and agrees as follows:

 1.    By the execution hereof, such Guarantor hereby consents to the within Amendment and all the
modifications to the Loan Documents contemplated in connection therewith. 
 2.    References to the
Guarantee Agreement in any or all of the Loan Documents shall be deemed to include references to the Guarantee Agreement as reaffirmed and ratified by this Reaffirmation of Guarantee Agreement. 

3.    Such Guarantor reaffirms that the Guarantee Agreement remains unchanged and in full force and
effect. 
 4.    Such Guarantor reaffirms all of its respective obligations contained in the Guarantee
Agreement, which shall remain in full force and effect for all the obligations of such Guarantor now or hereafter owing to Administrative Agent (on behalf of the Lenders) pursuant to the terms and conditions of the Guarantee Agreement and
acknowledges, agrees, represents and warrants that no agreements exist with respect to the Guarantee Agreement or with respect to the obligations of the Guarantor thereunder except those specifically set forth in this Reaffirmation of Guarantee
Agreement. 
 5.    As of the date hereof and immediately after giving effect to this Amendment and the
actions contemplated thereby, each of the representations and warranties of such Guarantor contained in the Guarantee Agreement, as amended by this Amendment, is true and correct in all material respects. 

6.    Such Guarantor acknowledges and agrees that it has entered into and delivered this Reaffirmation of
Guarantee Agreement of Guarantor’s own free will, voluntarily and without coercion or duress of any kind, and has been represented in connection herewith by counsel of its choice and is fully aware of the terms contained in this Reaffirmation
of Guarantee Agreement. 
 7.    Such Guarantor represents and warrants that it is not an EEA Financial
Institution. 
 [Signature page follows.] 

 IN WITNESS WHEREOF, each Guarantor has caused this Reaffirmation of Amended and Restated
Guarantee to be duly executed and delivered as of May     , 2017. 
  

					
	GUARANTORS:
	
	MERITAGE PASEO CROSSING, LLC
		
	By:	 	Meritage Homes of Arizona, Inc.
	Its:	 	Sole Member
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MERITAGE PASEO CONSTRUCTION, LLC
		
	By:	 	Meritage Homes Construction, Inc.
	Its:	 	Sole Member
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	 Financial Officer and Assistant

Secretary

	
	MERITAGE HOMES OF ARIZONA, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	 Financial Officer and Assistant

Secretary

	
	MERITAGE HOMES CONSTRUCTION, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	 Financial Officer and Assistant

Secretary

 [Signatures continue on the next page.] 

  
 Signature Page to
Reaffirmation 

 
					
	MERITAGE HOMES OF TEXAS HOLDING, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and-Assistant
		 		 	Secretary
	
	MERITAGE HOMES OF CALIFORNIA, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MERITAGE HOMES OF TEXAS JOINT VENTURE HOLDING COMPANY, LLC
		
	By:	 	Meritage Homes of Texas, LLC
	Its:	 	Sole Member
		
	By:	 	Meritage Homes of Texas Holding, Inc.
	Its:	 	Sole Member
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MERITAGE HOLDINGS, L.L.C.
		
	By:	 	Meritage Homes of Texas Holding, Inc.
	Its:	 	Sole Member
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary

 [Signatures continue on the next page.] 

  
 Signature Page to
Reaffirmation 

 
					
	MERITAGE HOMES OF NEVADA, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MTH-CAVALIER, LLC
		
	By:	 	Meritage Homes Construction, Inc.
	Its:	 	Sole Member
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MTH GOLF, LLC
		
	By:	 	Meritage Homes Construction, Inc.
	Its:	 	Sole Member
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MERITAGE HOMES OF COLORADO, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary

 [Signatures continue on the next page.] 

  
 Signature Page to
Reaffirmation 

 
					
	MERITAGE HOMES OF FLORIDA, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	CALIFORNIA URBAN HOMES, LLC
		
	By:	 	Meritage Homes of California, Inc.
	Its:	 	Sole Member and Manager
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MERITAGE HOMES OF TEXAS, LLC
		
	By:	 	Meritage Homes of Texas Holding, Inc.
	Its:	 	Sole Member
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MERITAGE HOMES OPERATING COMPANY, LLC
		
	By:	 	Meritage Holdings, L.L.C.
	Its:	 	Manager
		
	By:	 	Meritage Homes of Texas Holding, Inc.
	Its:	 	Sole Member
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary

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Reaffirmation 

 
					
	WW PROJECT SELLER, LLC
		
	By:	 	Meritage Paseo Crossing, LLC
	Its:	 	Sole Member
		
	By:	 	Meritage Homes of Arizona, Inc.
	Its:	 	Sole Member
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MERITAGE HOMES OF THE CAROLINAS, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	CAREFREE TITLE AGENCY, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	M&M FORT MYERS HOLDINGS, LLC
		
	By:	 	Meritage Paseo Crossing, LLC
	Its:	 	Sole Member and Manager
		
	By:	 	Meritage Homes of Arizona, Inc.
	Its:	 	Sole Member
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary

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 Signature Page to
Reaffirmation 

 
					
	MERITAGE HOMES OF FLORIDA REALTY LLC
		
	By:	 	Meritage Homes of Florida, Inc.
	Its:	 	Manager and Sole Member
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MERITAGE HOMES OF TENNESSEE, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MERITAGE HOMES OF SOUTH CAROLINA, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MTH REALTY LLC
		
	By:	 	Meritage Paseo Crossing, LLC
	Its:	 	Manager and Sole Member
		
	By:	 	Meritage Homes of Arizona, Inc.
	Its:	 	Sole Member
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary

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 Signature Page to
Reaffirmation 

 
					
	MERITAGE HOMES OF GEORGIA, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MTH GA REALTY LLC
		
	By:	 	Meritage Homes of Georgia, Inc.
	Its:	 	Manager and Sole Member
			
		 	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MTH SC REALTY LLC
		
	By:	 	Meritage Homes of South Carolina, Inc.
	Its:	 	Manager and Sole Member
			
		 	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MTH SHELF CO., INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary

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 Signature Page to
Reaffirmation of Guarantee Agreement 

 
					
	MLC HOLDINGS, INC., dba MLC LAND HOLDINGS, INC.
		
	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary
	
	MERITAGE HOMES OF GEORGIA REALTY, LLC
		
	By:	 	Meritage Homes of Georgia, Inc.
	Its:	 	Manager and Sole Member
			
		 	By:	 	  

		 	Name:	 	Hilla Sferruzza
		 	Title:	 	Executive Vice President, Chief
		 		 	Financial Officer and Assistant
		 		 	Secretary

  
 Signature Page to
Reaffirmation of Guarantee Agreement 

 Schedule 1.1A 

Commitments 
  

									
	 Lender
	  	Class A or Class B	 	  	Commitment	 
	 JPMorgan Chase Bank, N.A.
	  	 	Class A Lender	 	  	$	60,000,000	 
	 Citibank, N.A.
	  	 	Class A Lender	 	  	$	60,000,000	 
	 Bank of America, N.A.
	  	 	Class A Lender	 	  	$	60,000,000	 
	 Deutsche Bank AG New York Branch
	  	 	Class B Lender	 	  	$	60,000,000	 
	 Royal Bank of Canada
	  	 	Class A Lender	 	  	$	60,000,000	 
	 PNC Bank, National Association
	  	 	Class A Lender	 	  	$	60,000,000	 
	 U.S. Bank National Association
	  	 	Class A Lender	 	  	$	60,000,000	 
	 Mizuho Bank, Ltd.
	  	 	Class A Lender	 	  	$	60,000,000	 
	 ZB, N.A. dba National Bank of Arizona, a national banking association
	  	 	Class A Lender	 	  	$	40,000,000	 
	 Regions Bank
	  	 	Class A Lender	 	  	$	30,000,000	 
	 Texas Capital Bank, N.A.
	  	 	Class A Lender	 	  	$	30,000,000	 
	 Flagstar Bank, FSB
	  	 	Class A Lender	 	  	$	25,000,000	 
	 Comerica Bank
	  	 	Class A Lender	 	  	$	20,000,000	 
		  				  	  
	  
	 
	 TOTAL
	  				  	$	625,000,000

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