Document:

Prepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

FOURTH AMENDMENT TO
  NOTE PURCHASE AGREEMENT    
  

    This  FOURTH AMENDMENT TO NOTE PURCHASE AGREEMENT (this "Amendment"), dated as of April 30, 2001 is made by and between  FLOW
INTERNATIONAL CORPORATION, a Delaware corporation (the "Company"), and each of CONNECTICUT GENERAL LIFE INSURANCE
COMPANY and LIFE INSURANCE COMPANY OF NORTH AMERICA (the "Holders"). 

 
 

BACKGROUND    
  

    A.  Pursuant
to the Note Purchase Agreement (as amended prior to the date hereof, the "Existing Note Agreement;" and,
after giving effect to this Amendment, the "Note Agreement"), dated as of September 1, 1995, between the Company and each of the Holders, the Company issued and the Holders purchased Fifteen
Million Dollars ($15,000,000) in aggregate principal amount of the Company's 7.20% Notes due September 26, 2005 (the "Notes"). 

    B.  In
connection with the issuance by the Company of subordinated notes and warrants and the amendment of certain bank credit documents, it is necessary to amend the
Existing Note Agreement to make changes to certain existing provisions thereof and to add certain additional provisions thereto. 

    C.  The
Company and the Holders desire to enter into this Amendment to effectuate the above-mentioned amendments. 

    NOW, THEREFORE, in order to induce the Holders to grant the amendments specified below and in consideration of other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged) the Company and the Holders agree as follows: 

	1.
	Definitions. 

All
capitalized terms used, but not specifically defined, in this Amendment have the respective meanings assigned to them in the Existing Note Agreement as amended hereby. 

	2.
	Effective Date. 

The
provisions of Section 4 shall take effect as of April 30, 2001 provided that the following conditions precedent have been satisfied: 

	(a)
	Consenting Parties—Holders holding not less than sixty-six and two-thirds percent
(662/3%) in aggregate principal amount of the Notes then outstanding (exclusive of Notes then owned by any one or more of the Company, any Subsidiaries and any affiliates) and the
Company shall have duly authorized, executed and delivered this Amendment;

	(b)
	No Defaults—no Default or Event of Default exists after giving effect to the amendments set forth in Section 4, as
of the date hereof and as of the date of the closing of the purchase and sale of the Company's 13% Subordinated Notes due 2008;

	(c)
	Subordinated Notes—the Holders shall have approved the issuance and the terms of, and the covenants and other agreements
applicable to, the 13% Subordinated Notes due 2008 to be issued by the Company, including the subordination of such Subordinated Notes to the Notes on terms and conditions acceptable to the Holders,
which approval shall be evidenced by the Holders' execution and delivery of this Amendment to the Company; and

	(d)
	Payment of Fees and Expenses—the Company shall have paid the legal fees and disbursements of the Holders'
in-house legal department allocable to this Amendment. 

1

 

	3.
	False or Misleading Information. 

The
amendments set forth in Section 4 shall terminate and shall be null and void and of no force and effect if any written materials furnished in connection with this Amendment shall have been
false or misleading in any material respect when made. 

	4.
	Amendments. 
	(a)
	Section 8.1(g). Section 8.1(g) of the Existing Note Agreement shall be amended and restated in its entirety as follows: 

    (g) Delivery of Notices to Bank Agent and to Subordinated Noteholders; Delivery of Addresses—(i) to
the extent not otherwise required to be delivered to the holders of the Notes pursuant to the provisions of this Section 8.1 (x) contemporaneously with the delivery to the Bank Agent,
copies of all notices, reports and financial information delivered to the Bank Agent in accordance with the terms of the Bank Credit Agreement and (y) contemporaneously with the delivery to the
holders of the Subordinated Notes, copies of all notices, reports and financial information delivered to the holders of the Subordinated Notes in accordance with the terms of the Subordinated Note
Purchase Agreement; (ii) notice of any default under the Bank Credit Agreement or the Subordinated Note Purchase Agreement; and (iii) concurrently with the delivery of any notice
pursuant to the preceding clause (ii) and from time to time in the event of any changes thereto, the names and addresses of the holders of indebtedness under the Bank Credit Agreement and the
holders of the notes issued pursuant to the Subordinated Note Purchase Agreement, and the name and address of any agent acting on their behalf. 

	(b)
	Section 9.2A. The following new Section 9.2A is added to the Existing Note Agreement: 

    9.2A. Prepayment Upon Change of Control.

    In
the event that any Change of Control shall occur or the Company shall have knowledge of any proposed Change of Control that is likely to occur, the Company will give written notice
(the "Company Notice") of such fact in the manner provided in Section 19 hereof to the holders of the Notes. The Company Notice shall be delivered promptly upon receipt of such knowledge by the
Company and, in the case of a Change of Control of which the Company had no prior knowledge, no later than five Business Days following the occurrence of any Change of Control. The Company Notice
shall (1) describe the facts and circumstances of such Change of Control in reasonable detail, (2) make reference to this Section 9.2A and the right of the holders of the Notes to
require prepayment of the Notes on the terms and conditions provided for in this Section 9.2A, (3) offer in writing to prepay all, but not less than all, of the outstanding Notes,
together with accrued interest to the date of prepayment, plus a prepayment charge equal to the applicable Make-Whole Amount, and (4) specify a date for such prepayment (the "Change
of Control Prepayment Date"), which Change of Control Prepayment Date shall be not more than 45 days nor less than 20 days following the date of such Company Notice (subject to deferral
as provided in this Section 9.2A). Each holder of the then outstanding Notes shall have the right to accept such offer and require prepayment of the Notes held by such holder in full by written
notice to the Company (a "Noteholder Notice") given not later than 15 days after receipt of the Company Notice. The Company shall on the Change of Control Prepayment
Date prepay in full all of the Notes held by holders which have so accepted such offer of prepayment; provided that the obligation of the Company to
prepay the Notes pursuant to the requirement of this Section 9.2A is subject to the occurrence of the Change of Control giving rise to such
notice of optional prepayment. In the event that such Change of Control does not occur on the date specified for prepayment, the prepayment shall be deferred until and shall be made on the date on
which such Change of Control actually occurs. The prepayment price of the Notes payable upon the occurrence of any Change of Control shall be an amount equal to 100% of the outstanding principal
amount of the Notes so to be prepaid and accrued interest thereon to the date of such prepayment, plus a 

2

 

prepayment charge equal to the applicable Make-Whole Amount. In no event will the Company take any action to consummate or finalize a Change of Control unless contemporaneously with such
action the Company prepays all Notes required to be prepaid pursuant to this Section 9.2A. 

    For
purposes of this Section 9.2A: 

    "Acquiring
Person" means a "person" or "group of persons" within the meaning of Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended. 

    "Change
of Control" means the earliest to occur of: (a) the date a tender offer or exchange offer results in an Acquiring Person, directly or indirectly, beneficially owning
more than 50% of the Voting Stock of the Company then outstanding, or (b) the date an Acquiring Person becomes, directly or indirectly, the beneficial owner of more than 50% of the Voting Stock
of the Company then outstanding, or (c) the date of a merger between the Company and any other Person, a consolidation of the Company with any other Person or an acquisition of any other Person
by the Company, if immediately after such event, the Acquiring Person shall hold more than 50% of the Voting Stock of the Company outstanding immediately after giving effect to such merger,
consolidation or acquisition, or (d) the replacement (other than solely by reason of retirement, death or disability) of more than 50% of the members of the Board of Directors of the Company
over a 12-month period from the directors who constituted such Board of Directors at the beginning of such period and such replacement shall not have been approved by a vote of at least a
majority of the Board of Directors of the Company then still in office who either were members of such Board of Directors at the beginning of such 12-month period or whose election as
members of the Board of Directors was so previously approved. 

    "Voting
Stock" means Securities of any class or classes, the holders of which are ordinarily in the absence of contingencies, entitled to elect a majority of the corporate directors
(or Persons performing similar functions). 

	(c)
	Section 9.3: Section 9.3 of the Existing Note Agreement is hereby amended and restated in full as follows: 

    In
the case of each partial prepayment of the Notes pursuant to Section 9.2, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the
time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment. All partial prepayments made pursuant to
Section 9.2A shall be applied only to the Notes of the holders who have elected to participate in such prepayment. 

	(d)
	Section 11.3(a)(ii). Section 11.3(a)(ii) of the Existing Note Agreement is hereby amended and restated in full
as follows: 

(ii)(A)
at any time during the fiscal year ending April 30, 2002, Consolidated Debt does not exceed 65% of Consolidated Total Capitalization and (B) at any time
thereafter, Consolidated Debt does not exceed 60% of Consolidated Total Capitalization. 

	(e)
	Section 11.5. Section 11.5 of the Existing Note Agreement is hereby amended by the addition of the following subsection
(c) thereto: 

    (c) Prepayment of Subordinated Notes. The Company shall not prepay any of the Subordinated Notes pursuant to
Section 8.2 or 8.3 of the Subordinated Note Purchase Agreement until the Notes have been paid in full or provision therefor has been made satisfactory to the holders of the Notes; provided,
that, if any or all of the Holders of the Notes elect not to be prepaid in connection with an offer made by the Company pursuant to Section 9.2A, the Company shall be permitted to prepay the
Subordinated Notes to the extent 

3

 

that the holders thereof have elected to be prepaid pursuant to Section 8.3 of the Subordinated Note Purchase Agreement. 

	(f)
	Section 11.8. Section 11.8 of the Note Agreement shall be amended and restated in its entirety as follows: 

11.8 Minimum Fixed Charges Coverage.

    The
Company will not, at any time, permit the Fixed Charges Coverage Ratio to be less than 1.80 to 1. 

	(g)
	Section 11.13. The following new Section 11.13 is hereby added to the Existing Note Purchase Agreement: 

11.13 Amendments to Subordinated Note Purchase Agreement. 

    Without
the consent of the Required Holders, the Company shall not amend, waive or otherwise modify (i) the terms of Section 8 of the Subordinated Note Purchase
Agreement to permit or require the Subordinated Notes to be paid or prepaid, in whole or in part, prior to the dates set forth in the Subordinated Note Purchase Agreement as of the date of original
execution thereof, (ii) the terms of the Subordinated Notes to cause the maturity thereof to be less than 366 days after the maturity date of the Notes, or (iii) the terms of
Section 11 of the Subordinated Note Purchase Agreement as in effect on the date of the original execution thereof. 

	(h)
	Definitions—Existing. The following definitions in Schedule B are hereby amended and restated as set forth in full
below: 

    "Bank" means Bank of America, National Trust and Savings Association, doing business as Seafirst Bank. 

    "Bank Credit Agreement" means that certain Amended and Restated Credit Agreement dated as of December 29, 2000 among the Company
and the Bank, as Bank Agent and Lender, U.S. Bank National Association and Keybank National Association, as amended by the First Amendment dated as of February 28, 2001, and the Second
Amendment dated as of May 6, 2001, as the same may be further amended, modified or supplemented in accordance with the terms hereof. 

    "Intercreditor Agreement" means that certain Intercreditor Agreement dated as of August 31, 1998 among the Company, the Bank
Agent, the Bank Lenders, and the holders of the Notes, as amended from time to time in accordance with the provisions thereof, which Intercreditor Agreement replaced the Intercreditor Agreement dated
as of September 26, 1995 by and among the Company the holders of the Notes and U.S Bank National Association, individually and as collateral agent. 

    "Security Agreement" means that certain Security Agreement dated as of August 31, 1998, by the Company in favor of the Bank
Agent as agent for itself, the other Bank Lenders and the holders of the Notes, as amended from time to time in accordance with the provisions thereof, which Security
Agreement replaced the Security Agreement dated as of September 26, 1995 by and among the Company, the holders of the Notes and U.S. Bank National Association. 

	(i)
	Definitions—New. Schedule B shall be amended by adding, in the correct alphabetical order, the following
definitions to the list of definitions: 

    "Acquiring Person" is defined in Section 9.2A. 

    "Change of Control" is defined in Section 9.2A. 

4

 

    "Change of Control Prepayment Date" is defined in Section 9.2A. 

    "Company Notice" is defined in Section 9.2A. 

    "Noteholder Notice" is defined in Section 9.2A. 

    "Subordinated Notes" means the 13% Subordinated Notes due 2008 issued by the Company pursuant to the Subordinated Note Purchase
Agreement. 

    "Subordinated Note Purchase Agreement" means the Subordinated Note Purchase Agreement dated as of April 30, 2001 between the
Company and each of the purchasers of the Subordinated Notes and Warrants (as defined therein) issued pursuant thereto, as amended from time to time to the extent permitted by the provisions hereof. 

    "Voting Stock" is defined in Section 9.2A. 

	6.
	Effect of Agreement. 

Except
as expressly provided in this Amendment, the Note Agreement and all documents and instruments executed in connection with, or contemplated by, the Note Agreement shall remain in full force and
effect, without modification or amendment. This Amendment shall be binding upon, and shall inure to the benefit of, the successors and assigns of the parties hereto and the holders from time to time
of the Notes. 

	7.
	Duplicate Originals: Execution in Counterpart. 

Two
or more duplicate originals of this Amendment may be signed by the parties, each of which shall be an original but all of which together shall constitute one and the same instrument. This
Amendment may be executed in one or more counterparts and shall be effective when at least one counterpart shall have been executed by each party to this Amendment, and each set of counterparts which,
collectively, show execution by each such party to this Amendment shall constitute one duplicate original. 

	8.
	Governing Law. 

This
Amendment shall be governed by, and construed and enforced in accordance with, internal Connecticut law. 

5

 

    IN WITNESS WHEREOF, the undersigned have each caused this Third Amendment to Note Purchase Agreement to be duly executed and delivered
by their respective, duly authorized officers as of the date first above written. 

	COMPANY:	 	 
	
FLOW INTERNATIONAL CORPORATION	
 	

 
	

 	

 	
 	

 
	By:	 	 	 
	 	
	 	 
	 	Name:	 	 
	 	Title:	 	 

	

 	
 	

 	

 	
 	

 
	 HOLDERS:	 	 
	

CONNECTICUT GENERAL LIFE INSURANCE COMPANY*
	

By: CIGNA Investments, Inc.	
 	

 
	

 	
 	

 	

 	
 	

 
	 	 	By:	 	 	 
	 	 	 	
 Name: Stephen A. Osborn

Title: Managing Director	 	 
	

 	
 	

 	

 	
 	

 
	 LIFE INSURANCE COMPANY OF NORTH AMERICA*	 	 
	

By: CIGNA Investments, Inc.	
 	

 
	

 	
 	

By:	

 	
 	

 
	 	 	 	
 Name: Stephen A. Osborn

Title: Managing Director	 	 

	*
	The
entity signing this agreement is either a holder of a Note referred to herein or the beneficial holder of such Note registered in the name of the nominee of such beneficial
holder. 

Signature
page to Fourth Amendment to Note Purchase Agreement dated as of April 30, 2001 by and between FLOW INTERNATIONAL CORPORATION, and each
of CONNECTICUT GENERAL LIFE INSURANCE COMPANY and LIFE INSURANCE COMPANY OF NORTH AMERICA.

6

QuickLinks

FOURTH AMENDMENT TO NOTE PURCHASE AGREEMENT

BACKGROUNDPrepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 4.1    
  

     

  

June 28,
2001 

David
H. Russian

Chief Financial Officer

General Magic, Inc.

420 North Mary Avenue

Sunnyvale, CA 94086 

Dear
Mr. Russian: 

    The
purpose of this letter agreement (the "Agreement") is to set forth the terms and conditions pursuant to which Ladenburg Thalmann & Co. Inc. ("LTCO") shall
serve as non-exclusive placement agent in connection with the proposed offering of equity or equity-linked securities (the "Securities") of General Magic, Inc. (the "Company")
pursuant to a shelf registration statement or pursuant to a private placement (the "Offering"). The gross proceeds from the Offering will be up to $15,000,000. All references to dollars shall be to
U.S. dollars. The terms of such Offering and the Securities shall be as agreed to between the Company and the purchasers thereof. The Company may accept or reject any or all offers to purchase the
Securities, in whole or in part, in its sole discretion. 

    Upon
the terms and subject to the conditions of this Agreement, the parties hereto agree as follows: 

    1.  Appointment.  Subject to the terms and conditions of
this Agreement hereinafter set forth, the Company hereby retains LTCO, and LTCO hereby agrees to act as the Company's non-exclusive placement agent
and non-exclusive financial advisor in connection with the Offering, effective as of the date hereof. The Company expressly acknowledges and agrees that LTCO's obligations hereunder are on
a reasonable best efforts basis only and that the execution of this Agreement does not constitute a commitment by LTCO to purchase the Securities and does not ensure the successful placement of the
Securities or any portion thereof or the success of LTCO with respect to securing any other financing on behalf of the Company. LTCO shall not commence any selling efforts under the shelf registration
until the registration statement has been declared effective by the SEC. 

    2.  Fees and Compensation.  In consideration of the
services rendered by LTCO in connection with the Offering, the Company agrees to pay LTCO a cash fee payable upon each closing arranged by LTCO equal to 3.5% of the amount drawn down by the Company at
each such closing. All fees payable hereunder shall be paid to LTCO out of an attorney escrow account at the closing or by such other means acceptable to LTCO. 

    3.  Terms of Retention.  (a) Unless extended or
terminated in writing by the parties hereto in accordance with the provisions hereof, this Agreement shall remain in effect until the Termination Date of April 30, 2002. 

    (b) Notwithstanding
anything herein to the contrary, the obligation to pay the Fees and Compensation and Expenses described in Section 2, if any, and the
provisions of paragraphs 2, 5, and 8 of Exhibit A and all of Exhibit B and Exhibit C attached hereto, each of which exhibits is 

 

incorporated herein by reference, shall survive any termination or expiration of the Agreement. It is expressly understood and agreed by the parties hereto that any private financing of equity or debt
or other capital raising activity of the Company within 18 months of the termination or expiration of this Agreement, with any investors to whom the Company was introduced by LTCO or who was
contacted by LTCO, and who purchased Securities offered by the Company pursuant to the Registration Statement while this Agreement was in effect and disclosed to the Company in writing, shall result
in such fees and compensation being due and payable by the Company to LTCO under the same terms of Section 2 above.

    4.  [Intentionally omitted]  

    5.  Information.  The Company recognizes and confirms
that in completing its engagement hereunder, LTCO will be using and relying on publicly available information and on data, material and other information furnished to LTCO by the Company or the
Company's affiliates and agents. It is understood and agreed that in performing under this engagement, LTCO will rely upon the accuracy and completeness (in all material respects) of, and is not
assuming any responsibility for independent verification of, such publicly available information and the other information so furnished.
Notwithstanding the foregoing, it is understood that LTCO will conduct a due diligence investigation of the Company and the Company will cooperate in all respects with such investigation as a
condition of LTCO's obligations hereunder. 

    6.  Registration.  Following execution of this Agreement,
the Company shall prepare and, following review and approval by LTCO's counsel, file with the SEC a registration statement on Form S-3 (such registration statement being hereinafter
referred to as the "Registration Statement"). From time to time in connection with any particular sale of Securities, the Company will, at its own expense, obtain any registration or qualification
required to sell any Securities under the Blue Sky laws of any applicable jurisdictions, as reasonably requested by LTCO, and shall pay any filing fees required by NASD Regulation, Inc. in
connection with their review of the terms of this Agreement, if so required. 

    7.  No General Solicitation.  The Securities will be
offered only by approaching prospective purchasers on an individual basis. No general solicitation or general advertising in any form will be used in connection with the offering of the Securities.
From and after the execution of this Agreement until the completion of the Offering, the Company shall pre-clear any proposed press release which mentions this Agreement or the Offering
with LTCO, except to the extent that the Company is advised by counsel that such release is required by law and pre-clearance is not practicable. 

    8.  Closing.  The closing of the sale of the Securities
shall be subject to customary closing conditions, including the provision by the Company to LTCO of officers' certificates, opinions of counsel and, prior to the first takedown from the Registration
Statement only, a "cold comfort" letter from the Company's auditors. 

    9.  Miscellaneous.  This Agreement together with the
attached Exhibits A through C constitutes the entire understanding and agreement between the parties with respect to its subject matter and there are no agreements or understandings with
respect to the subject matter hereof which are not contained in this Agreement. This Agreement may be modified only in writing signed by the party to be charged hereunder. 

    If
the foregoing correctly sets forth our agreement, please confirm this by signing and returning to us the duplicate copy of this letter. 

2

 

    We appreciate this opportunity to be of service and are looking forward to working with you on this matter. 

	 	 	 	Very truly yours,
	

 	

 	
 	

LADENBURG THALMANN & CO. INC.
	

 	

 	
 	

By:	

/s/ ROBERT KROPP   
 Name: Robert Kropp

Title: Director, I.B.
	

Agreed to and accepted

as of the date first written above:	
 	

 	

 
	

GENERAL MAGIC, INC.	
 	

 	

 
	

By:	

/s/ K.M. LAYTON   
 Name: Kathleen M. Layton

Title: President and CEO	
 	

 	

 

3

 
 
 

EXHIBIT A    
  

 
 

STANDARD TERMS AND CONDITIONS    
  

	1.
	The
Company shall promptly provide LTCO with all relevant information about the Company (to the extent available to the Company in the case of parties other than the Company) that
shall be
reasonably requested or required by LTCO, which information shall be complete and accurate in all material respects at the time furnished.

	2.
	[Intentionally
omitted]

	3.
	The
Company recognizes that in order for LTCO to perform properly its obligations in a professional manner, it is necessary that LTCO be informed of and, to the extent practicable,
participate in meetings and discussions between the Company and any prospective purchaser of the securities, relating to the matters covered by the terms of LTCO's engagement.

	4.
	The
Company agrees that any report or opinion, oral or written, delivered to it by LTCO is prepared solely for its confidential use and shall not be reproduced, summarized, or
referred to in any public document or given or otherwise divulged to any other person without LTCO's prior written consent, except as may be required by applicable law or regulation.

	5.
	No
fee payable to LTCO pursuant to any other agreement with the Company or payable by the Company to any agent, lender or investor shall reduce or otherwise affect any fee payable
by the Company to LTCO hereunder. If LTCO engages any other broker-dealer or other finder to assist LTCO in the placement of the Offering, then the fees of such other broker-dealer or finder shall be
paid by LTCO.

	6.
	The
Company represents and warrants that: (a) it has full right, power and authority to enter into this Agreement and to perform all of its obligations hereunder;
(b) this Agreement has been duly authorized and executed by and constitutes a valid and binding agreement of the Company enforceable in accordance with its terms; and (c) the execution
and delivery of this Agreement and the consummation of the transactions contemplated hereby do not conflict with or result in a breach of (i) the Company's certificate of incorporation or
by-laws or (ii) any material agreement to which the Company is a party or by which any of its property or assets is bound.

	7.
	Nothing
contained in this Agreement shall be construed to place LTCO and the Company in the relationship of partners or joint venturers. Neither LTCO nor the Company shall represent
itself as the agent or legal representative of the other for any purpose whatsoever nor shall either have the power to obligate or bind the other in any manner whatsoever. LTCO, in performing its
services hereunder, shall at all times be an independent contractor.

	8.
	This
Agreement has been and is made solely for the benefit of LTCO and the Company and each of the persons, agents, employees, officers, directors and controlling persons referred
to in Exhibit B and their respective heirs, executors, personal representatives, successors and assigns, and nothing contained in this Agreement shall confer any rights upon, nor shall this
Agreement be construed to create any rights in, any person who is not party to such Agreement, other than as set forth in this paragraph.

	9.
	The
rights and obligations of either party under this Agreement may not be assigned without the prior written consent of the other party hereto and any other purported assignment
shall be null and void.

	10.
	All
communications hereunder, except as may be otherwise specifically provided herein, shall be in writing and shall be mailed, hand delivered, or sent by a recognized overnight
courier service such 

4

 

as
Federal Express, via facsimile and confirmed by letter, to the party to whom it is addressed at the following addresses or such other address as such party may advise the other in writing: 

To
the Company:

David H. Russian

Chief Financial Officer

420 North Mary Avenue

Sunnyvale, CA 94086

Telephone: (408) 495-4000

Facsimile: (408) 774-4033 

To
LTCO:

Ladenburg Thalmann & Co. Inc.

590 Madison Avenue

New York, NY 10022

Attention: Robert J. Kropp

Telephone: (212) 409-2000

Facsimile: (212) 409-2169 

All
notices hereunder shall be effective upon receipt by the party to which it is addressed. 

5

 
 
 

EXHIBIT B    
  

 
 

INDEMNIFICATION    
  

    The Company agrees that it shall indemnify and hold harmless, LTCO, its stockholders, directors, officers, employees, agents, affiliates and controlling
persons within the meaning of Section 20 of the Securities Exchange Act of 1934 and Section 15 of the Securities Act of 1933, each as amended (any and all of whom are referred to as an
"Indemnified Party"), from and against any and all losses, claims, damages, liabilities, or expenses, and all actions in respect thereof (including, but not limited to, all legal or other expenses
reasonably incurred by an Indemnified Party in connection with the investigation, preparation, defense or settlement of any claim, action or proceeding, whether or not resulting in any liability),
incurred by an Indemnified Party: (a) arising out of, or in connection with, any actions taken or omitted to be taken by the Company, its affiliates, employees or agents, or any untrue
statement or alleged untrue statement of a material fact contained in any of the financial or other information contained in the registration statement and/or final prospectus furnished to LTCO by or
on behalf of the Company or the omission or alleged omission of 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; or (b) with respect to, caused by, or otherwise arising out of any transaction contemplated by the Agreement or LTCO's performing the services contemplated
hereunder; provided, however, the Company will not be liable under clause (b) hereof to the extent, and only to the extent, that any loss,
claim, damage, liability or expense is finally judicially determined to have resulted primarily from LTCO's gross negligence, willful misconduct, or bad faith in performing such services. 

    If
the indemnification provided for herein is conclusively determined (by an entry of final judgment by a court of competent jurisdiction and the expiration of the time or denial of
the right to appeal) to be unavailable or insufficient to hold any Indemnified Party harmless in respect to any losses, claims, damages, liabilities or expenses referred to herein, then the Company
shall contribute to the amounts paid or payable by such Indemnified Party in such proportion as is appropriate and equitable under all circumstances taking into account the relative benefits received
by the Company on the one hand and LTCO on the other, from the transaction or proposed transaction under the Agreement or, if allocation on that basis is not permitted under applicable law, in such
proportion as is appropriate to reflect not only the relative benefits received by the Company on the one hand and LTCO on the other, but also the relative fault of the Company and LTCO;  provided, however, in no event shall the aggregate contribution of LTCO and/or any Indemnified Party be in excess of the net compensation actually
received by LTCO and/or such Indemnified Party pursuant to this Agreement. 

    The
Company shall not settle or compromise or consent to the entry of any judgment in or otherwise seek to terminate any pending or threatened action, claim, suit or proceeding in
which any Indemnified Party is or could be a party and as to which indemnification or contribution could have been sought by such Indemnified Party hereunder (whether or not such Indemnified Party is
a party thereto), unless such consent or termination includes an express unconditional release of such Indemnified Party,
reasonably satisfactory in form and substance to such Indemnified Party, from all losses, claims, damages, liabilities or expenses arising out of such action, claim, suit or proceeding. 

    In
the event any Indemnified Party shall incur any expenses covered by this Exhibit B, the Company shall reimburse the Indemnified Party for such covered expenses within ten
(10) business days of the Indemnified Party's delivery to the Company of an invoice therefor, with receipts attached. Such obligation of the Company to so advance funds may be conditioned upon
the Company's receipt of a written undertaking from the Indemnified Party to repay such amounts within ten (10) business days after a final, non-appealable judicial determination
that such Indemnified Party was not entitled to indemnification hereunder. 

6

 

    The foregoing indemnification and contribution provisions are not in lieu of, but in addition to, any rights which any Indemnified Party may have at common law hereunder or otherwise,
and shall remain in full force and effect following the expiration or termination of LTCO's engagement and shall be binding on any successors or assigns of the Company and successors or assigns to all
or substantially all of the Company's business or assets. 

7

 
 
 

EXHIBIT C    
  

 
 

JURISDICTION    
  

    The Company and LTCO each hereby irrevocably: (a) submits to the jurisdiction of any court of the State of New York or any federal court sitting in the
State of New York for the purposes of any suit, action or other proceeding arising out of the Agreement between the Company and LTCO which is brought by or against the Company or LTCO;
(b) agrees that all claims in respect of any suit, action or proceeding may be heard and determined in any such court; and (c) to the extent that the Company or LTCO has acquired, or
hereafter may acquire, any immunity from jurisdiction of any such court or from any legal process therein, the Company and LTCO each hereby waives, to the fullest extent permitted by law, such
immunity. The prevailing party in any litigation respecting this Agreement shall be entitled to an award of its costs, including reasonable attorneys' fees, in connection therewith. 

    The
Company and LTCO each waives, and agrees not to assert in any such suit, action or proceeding, in each case, to the fullest extent permitted by applicable law, any claim that:
(a) it is not personally subject to the jurisdiction of any such court; (b) it is immune from any legal process (whether through service or notice, attachment prior to judgment,
attachment in the aid of execution, execution or otherwise) with respect to it or its property; (c) any such suit, action or proceeding is brought in an inconvenient forum; (d) the venue
of any such suit, action or proceeding is improper; or (e) this Agreement may not be enforced in or by any such court. 

    Any
process against the Company or LTCO in, or in connection with, any suit, action or proceeding filed in the United States District Court for the Southern District of New York or
any other court of the State of New York, arising out of or relating to this Agreement or any transaction or agreement contemplated hereby, may be served personally, or by first class mail or
overnight courier (with the same effect as though served personally) addressed to the party being served at the address set forth in the Agreement between the Company and LTCO. 

    Nothing
in these provisions shall affect any party's right to serve process in any manner permitted by law or limit its rights to bring a proceeding in the competent courts of any
jurisdiction or jurisdictions or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction. 

    This
Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of law principles. 

8

QuickLinks

Exhibit 4.1

EXHIBIT A

STANDARD TERMS AND CONDITIONS

EXHIBIT B

INDEMNIFICATION

EXHIBIT C

JURISDICTION

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}]]