Document:

Exhibit 10.2

 

	

    	
 

	
 
	
2-15 OYE-CHO, MINATO-KU
    
	
 
	
NAGOYA 455-8555 JAPAN
    
			

 

EXECUTION VERSION

 

CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO RULE 24B-2 AND ARE SUBJECT TO A CONFIDENTIAL TREATMENT REQUEST. COPIES OF THIS EXHIBIT CONTAINING THE OMITTED INFORMATION HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. THE OMITTED PORTIONS OF THIS DOCUMENT ARE MARKED WITH A [***].

 

	
 
    	
Letter No.:   MRJ90-3-SKW-LA-1
    
	
 
    	
Date: December 7,   2012
    
	
 
    	
 
    
	
SkyWest, Inc.
    	
 
    
	
444 South River Road,
    	
 
    
	
St. George, Utah 84790, USA
    	
 
    

 

Subject:                            Amendment to APA

 

Reference:            The Aircraft Purchase Agreement No. MRJ90-3-SKW (the “APA”) between MITSUBISHI AIRCRAFT CORPORATION (“Seller”) and SKYWEST, INC. (“Customer”) relating to Model MRJ90 and MRJ70 Aircraft

 

Ladies and Gentlemen:

 

This letter agreement and the Annexes attached hereto (collectively, this “Letter Agreement”) are entered into, and shall become effective, as of the date executed by Customer, and amend and supplement the APA.

 

1.                                      Definitions; Interpretation.

 

1.1                               Except as otherwise expressly provided herein, (i) capitalized terms used but not otherwise defined in this Letter Agreement shall have the meanings set forth in the APA; (ii) any reference to an Annex shall be to an annex to this Letter Agreement; (iii) any reference to an Article (or sub-Article, paragraph or clause), Attachment, Exhibit, Schedule or Appendix shall be to an article (or sub-article, paragraph or clause) of, or an attachment, exhibit, schedule or appendix to, this Letter Agreement Main Text or the respective Annex in which such reference is made, as applicable; and (iv) except for 

 

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clause (i) of Article 1.2 of the APA Main Text, the rules of interpretation set forth in Article 1.2 of the APA Main Text are incorporated herein and shall apply mutatis mutandis hereto.

 

1.2                               The following terms used in this Letter Agreement shall have the meanings described below in this Article 1.2:

 

“Letter Agreement” shall have the meaning described in the introductory paragraph.

 

“Letter Agreement Main Text” shall mean the main text of this Letter Agreement, not including any annexes hereto.

 

2.                                      Effect of this Letter Agreement.

 

Except to the extent amended or supplemented by this Letter Agreement, the APA remains in full force and effect in accordance with its terms. In the event of any inconsistency between the terms and conditions of this Letter Agreement and the APA, the terms and conditions of this Letter Agreement shall prevail.

 

For the avoidance of doubt, if the APA is terminated with respect to a certain Aircraft, this Letter Agreement shall automatically and concurrently terminate with respect to such Aircraft.

 

3.                                      Non-Assignability.

 

The provisions of this Letter Agreement are personal to Customer and may not be assigned by Customer (including to any assignee of the APA or any of Customer’s rights thereunder) without the prior written consent of Seller (except as otherwise provided in Article 18 of the APA Main Text). Any attempted assignment by Customer in violation of the foregoing shall be null and void.  Consent by Seller to the assignment of the APA and/or any of Customer’s rights thereunder shall not constitute consent to the assignment of this Letter Agreement

 

4.                                      Confidentiality of the Terms and Conditions of this Letter Agreement.

 

The terms and conditions of this Letter Agreement shall constitute the Confidential Information of Seller and Customer shall keep the terms and conditions of this Letter Agreement confidential in accordance with the provisions regarding confidentiality set forth in Article 23 of the APA Main Text, which are hereby incorporated herein and shall apply mutatis mutandis to this Letter Agreement; provided that, notwithstanding the provision in Article 23 of the APA Main Text permitting Customer to disclose Confidential Information to any assignee in the context of an 

 

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applicable assignment, the terms and condition of this Letter Agreement (i) may be disclosed only to a potential assignee of this Letter Agreement with respect to whom Seller has granted its prior written consent to such disclosure, such consent not to be unreasonably withheld or delayed and (ii) shall not be disclosed to any other person or entity simply because it is an assignee or potential assignee of the APA.

 

5.                                      Limitation of Liability.

 

Article 21 of the APA Main Text is hereby incorporated herein and shall be applied mutatis mutandis to this Letter Agreement.

 

6.                                      Annexes.

 

The Annexes 1 through 9 attached hereto constitute integral parts of this Letter Agreement and shall be binding upon each of parties hereto.

 

7.                                      Governing Law and Dispute Resolution.

 

This Letter Agreement shall be governed by and interpreted in accordance with the internal laws of the state of New York, USA (as permitted by Section 5-1401 of the New York General Obligations Law (or any similar successor provision)), without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the state of New York to the rights and duties of the parties hereto.  The United Nations Convention on Contracts for the International Sale of Goods shall not apply.  The dispute resolution provisions set forth in Article 24.2 of the APA Main Text are hereby incorporated herein and shall apply mutatis mutandis to any and all disputes, controversies or differences which may arise between the parties hereto out of or in relation to or in connection with this Letter Agreement.

 

8.                                      Entire Agreement.

 

The APA and this Letter Agreement constitute the entire agreement between the parties hereto with regard to the subject matter hereof, and supersede all prior or contemporaneous communications, negotiations and agreements (whether written or oral) of the parties hereto with respect to the subject matter hereof.

 

9.                                      Miscellaneous.

 

Article 22 and Article 25 of the APA Main Text are hereby incorporated herein and shall be applied mutatis mutandis to this Letter Agreement.

 

[Remainder of page intentionally left blank]

 

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If the foregoing correctly sets forth your understanding of our agreement with respect to the above matters please indicate your acceptance and approval below by signing in the space provided and returning one executed copy to Seller.

 

 

Very truly yours,

 

 

	
MITSUBISHI AIRCRAFT CORPORATION
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
ACCEPTED AND AGREED TO as of this date:
    	
                       ,   2012.
    
	
 
    	
 
    
	
 
    	
 
    
	
SKYWEST, INC.
    	
 
    
	
 
    	
 
    
	
By
    	
 
    	
 
    
	
Name: 
    	
Bradford R. Rich
    	
 
    
	
Title: 
    	
President
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
 
    	
 
    
	
Name: 
    	
Michael J. Kraupp
    	
 
    
	
Title: 
    	
Chief Financial Officer and Treasurer
    	
 
    

 

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Execution Version

 

ANNEX 1

 

AMENDMENT OF APA

 

The APA is hereby amended to the extent necessary to implement the following provisions:

 

1.                                      Definitions.

 

1.1                                              The following definitions in Article 1.1 of the APA Main Text are hereby replaced as follows:

 

“Cancelled Aircraft” shall mean any Aircraft with respect to which this APA is terminated in accordance with Articles 19.1, 19.2 or 19.3.

 

“Guaranteed Delivery Month” shall mean with respect to an Aircraft [***].

 

[***]

 

“Scheduled Delivery Month” shall mean with respect to an Aircraft [***].

 

[***]

 

1.2                                              The following new definitions are hereby added to Article 1.1 of the APA Main Text in appropriate alphabetical order:

 

“Airworthiness Directives” means any airworthiness directive of the applicable Civil Aviation Authority issued with respect to or applicable to the Aircraft.

 

[***]

 

[***]

 

“Convention” shall have the meaning described in Article 24.2.3.

 

“Initial Guaranteed Delivery Month” means [***].

 

[***]

 

“Letter Agreement” means the Letter Agreement No. MRJ90-3-SKW-LA-1 executed between Seller and Customer on December 7, 2012 relating to the Aircraft Purchase Agreement No. MRJ90-3-SKW.

 

“Net Initial Aircraft Basic Price” shall mean [***]

 

[***].

 

“Notice Recipient” shall have the meaning described in Article 24.2.3.

 

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“Payer”  shall have the meaning described in Article 6.4.

 

“Payee” shall have the meaning described in Article 6.4.

 

[***].

 

“Quarter” means a three (3) Month period as follows:

 

[***]

 

“Service Bulletin” means a document issued by the original equipment manufacturer with respect to the Aircraft which specifies an optional, recommended or mandatory compliance procedure related to improving performance, maintainability, reliability, and in some cases, may be issued to correct an airworthiness deficiency.

 

1.3                                               The definitions of “Disputed Obligation” and “Disputed Obligor” in Article 1.1 of the APA Main Text are hereby deleted in their entirety.

 

2.                                      Advance Payments.

 

Article 7.1 of the APA Main Text is hereby deleted in its entirety and replaced as follows:

 

7.1                                Advance Payments.

 

[***]

 

3.                                      Selected Optional Features  at the time of execution of the APA.

 

Customer acknowledges that Customer, at the time of execution of the APA, has selected the Optional Features listed in Schedules 1.1 and 1.2 to this Annex 1 (the “Selected Optional Features”) for all the Aircraft, at the per Aircraft prices (before escalation) listed in Schedules 1.1 and 1.2 to this Annex 1. With respect to each Aircraft, the aggregate amount of the prices of all of the Selected Optional Features shall be treated as a part of the Additional Aircraft Price, of which aggregate amount is described in Attachment 1 Rev. A to this Annex 1.

 

4.                                      Replacement of Attachment 1.

 

Attachment 1 to the APA is hereby replaced with Attachment 1 Rev. A to this Annex 1. All references to Attachment 1 to the APA in the APA and this Letter Agreement shall be deemed as references to Attachment 1 Rev. A to this Annex 1.

 

5.                                      Replacement of Attachment 2.

 

Attachment 2 to the APA is hereby replaced with Attachment 2 Rev. A to this Annex 1. All references to Attachment 2 to the APA in the APA and this Letter Agreement shall be deemed as references to Attachment 2 Rev. A to this Annex 1.

 

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6.                                      Replacement of Attachment 3.

 

Attachment 3 to the APA is hereby replaced with Attachment 3 Rev. A to this Annex 1. All references to Attachment 3 to the APA in the APA and this Letter Agreement shall be deemed as references to Attachment 3 Rev. A to this Annex 1.

 

7.                                      Development Changes.

 

The definition of “Development Change” in Article 13.2 of the APA Main Text is hereby replaced with the following:

 

A “Development Change” is a change to an Aircraft that [***].

 

8.                                      Taxes.

 

Article 6 of the APA Main Text is hereby deleted in its entirety and replaced as follows:

 

Article 6 Taxes.

 

[***]

 

9.                                      Suspension of Work in Case of Delinquent Payments.

 

[***]

 

10.                               Payment Invoices.

 

The following new Article 7.7 is hereby inserted into Article 7 of the APA Main Text:

 

7.7                                             Payment Invoices.

 

7.7.1 Each party owed payment under this APA shall, no later than [***] prior to the date when such payment is due, deliver a written invoice to the other party, setting forth in reasonable detail (i) the subject matter covered by such invoice, (ii) the date such payment is due and (iii) the amount of such payment.

 

7.7.2 In the event that the party receiving the payment invoice disputes the validity of the payment requirement or the payment amount, such party shall provide written notice of such dispute to the other party prior to such payment’s due date, together with an explanation in reasonable detail setting forth the basis for such dispute.  Such dispute shall not affect in any way the obligation to pay any undisputed amounts set forth in the applicable invoice by such payments due date or affect the accrual of any interest due on any payment rightfully due under this Agreement.

 

7.7.3 For purposes of this section 7.7 and the invoices contemplated herein, “Business Day” shall mean (i) if the invoice is to be delivered to Customer, a day on which commercial banks are open for general business in New York, New York, or (ii) if the invoice is to be delivered to Seller, a day on which commercial banks are open for general business in Tokyo, Japan.

 

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11.                               Notice of Delivery Dates.

 

[***]

 

12.                               Excusable Delay.

 

Articles 9.1, 9.2 and 9.3 of the APA Main Text are deleted in their entirety and replaced with the following:

 

9.1                                     Excusable Delay.

 

[***]

 

9.2                                     [***]

 

9.3                                     Effect of Termination.

 

[***]

 

13.                               Non-Excusable Delay.

 

A new Article 10.6 is added to the APA Main Text, and Articles 10.2 through 10.5 of the APA Main Text are deleted in their entirety and replaced with the following:

 

10.2                              [***]

 

10.3                              [***]

 

10.4                              Effect of Termination.

 

[***]

 

10.5                              Exclusivity of Liquidated Damages; Waivers.

 

10.6                              [***]

 

14.                                                               Manufacturer Changes.

 

Article 13.1.3 of the APA Main Text is deleted in its entirety and replaced with the following:

 

13.1.3 [***]

 

15.                                                               Ground Inspection Protocol/Acceptance Flight Protocol.

 

Articles 14.1.2 and 14.2.2 of the APA Main Text are hereby deleted in their entirety and replaced with the following:

 

14.1.2              Seller shall provide to Customer, at least [***] calendar days prior to the first day of the Scheduled Delivery Month of the first Aircraft, commercially reasonable procedures, subject matter and acceptance criteria for the Ground Inspection (the “Ground Inspection Protocol”). Within 

 

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[***] calendar days of receipt of the Ground Inspection Protocol, both Parties shall discuss and agree to a mutually acceptable Ground Inspection Protocol, each party acting reasonably.  If, within [***] calendar days of receipt of the Ground Inspection Protocol, the Parties cannot reach agreement on a mutually acceptable Ground Inspection Protocol, Seller may adjust the Scheduled Delivery Month and the Guaranteed Delivery Month for each affected Aircraft to reflect the time required to reach such an agreement.

 

14.2.2              Seller shall provide to Customer, at least [***] calendar days prior to the first day of the Scheduled Delivery Month of the first Aircraft, commercially reasonable procedures, subject matter and acceptance criteria for the Acceptance Flight (the “Acceptance Flight Protocol”). Within [***] calendar days of receipt of the Acceptance Flight Protocol, both Parties shall discuss and agree to a mutually acceptable Acceptance Flight Protocol, each party acting reasonably. If, within [***] calendar days of receipt of the Acceptance Flight Protocol, the Parties cannot reach agreement on a mutually acceptable Acceptance Flight Protocol, Seller may adjust the Scheduled Delivery Month and the Guaranteed Delivery Month for each affected Aircraft to reflect the time required to reach such an agreement.

 

16.                                                               [***].

 

[***]

 

17.                                                               Indemnity.

 

17.1                                 Article 17.2.1 of the APA Main Text is hereby replaced with the following:

 

17.2.1                      Customer shall indemnify, defend and hold harmless each Seller Party providing customer support services pursuant to the terms of this APA, and solely in such party’s capacity as a customer support provider, as contemplated in this APA, from and against claims, suits, actions, liabilities, damages and costs, including court costs and reasonable attorneys’ fees, whether in contract or in tort or otherwise, caused by [***].

 

17.2                                 [***]

 

18.                                                               Leverage Transaction.

 

18.1                        The following new Articles 18.7, 18.8, and 18.9 are hereby inserted into Article 18 of the APA Main Text:

 

18.7                             Leverage Lease Transaction.

 

[***]

 

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18.8                             Return of Advance Payments.

 

[***]

 

18.9                             Mortgage Financing.

 

If an Aircraft is purchased by Customer or any Subsidiary of Customer and in connection therewith the Aircraft is financed, Seller shall upon the request of Customer execute and deliver a consent and agreement substantially in the form of Appendix IV hereto (which shall be discussed and mutually agreed by the parties as soon as reasonably practical following the execution of this APA).

 

19.                                                               Termination and Seller’s Remedies.

 

Article 19 of the APA Main Text is hereby deleted in its entirety and replaced with the following:

 

19.1                               Termination by Either Party.

 

Either party hereto may immediately terminate this APA with respect to any or all of the Aircraft before delivery by providing written notice to the other party hereto setting forth the reason for such termination if the other party hereto:

 

19.1.1                                              fails to perform or comply in any material respect with any material agreement or covenant contained herein, unless within [***] calendar days following written notice of such failure such other party cures such failure or submits a bona fide notice of dispute regarding such failure pursuant to Article 24.2.1;

 

19.1.2                                              ceases doing business as a going concern;

 

19.1.3                                              suspends all or substantially all of its business operations and the same are not re-commenced within [***] calendar days;

 

19.1.4                                              makes an assignment for the benefit of creditors;

 

19.1.5                                              becomes insolvent, generally does not pay its debts as they become due, or admits in writing its inability to pay its debts;

 

19.1.6                                              (i) petitions for or acquiesces to the appointment of any receiver, trustee or similar officer to liquidate or conserve its business or any substantial part of its assets, (ii) commences any legal proceeding such as bankruptcy, reorganization, readjustment of debt, dissolution, or liquidation available for the relief of financially distressed debtors or (iii) becomes the object of any such proceeding unless the proceeding is dismissed or stayed within a reasonable period, not to exceed [***] calendar days; or is issued or has levied against it or any significant part of its property a writ of attachment (or is subject to an execution or any similar process, including procedures for collection of tax delinquency), which is not released, stayed, bonded or vacated within [***] calendar days after such issue or levy,

 

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[***]

 

19.2                        Termination by Seller for Non-Payment.

 

In addition to its right to terminate under Article 19.1 (and, accordingly, without being subject to the [***] calendar day cure period under Article 19.1.1), Seller may immediately terminate this APA with respect to any or all of the Aircraft, by delivery of written notice to Customer, if Customer defaults in the payment of any portion of an Aircraft Price for any Aircraft (including, for the avoidance of doubt, any Advance Payment) as and when due and payable under this APA.

 

19.3                        Termination by Customer.

 

19.3.1                                In addition to its right to terminate this APA in whole or in part as otherwise expressly provided in this APA, Customer may immediately terminate this APA with respect to any or all Aircraft, in the event that:

 

[***]

 

19.3.2                                [***]

 

19.3.3                               If Customer terminates this APA with respect to any (but not all) Aircraft pursuant to this Article 19.3, all terms and conditions of this APA with respect to all other Aircraft shall remain in full force and effect.

 

19.4                        Seller’s Remedies.

 

19.4.1                      In the event that Seller terminates this APA with respect to an Aircraft for any of the reasons stated in Article 19.1 or 19.2 :

 

(i)                                     all rights (including property rights), if any, which Customer may have or may have had in or to this APA and side letters and supplemental agreements related hereto or thereto (if any) with respect to the Cancelled Aircraft shall become null and void immediately upon such termination;

 

(ii)                                  Customer shall immediately pay to Seller (a) the monetary value of all services that have been rendered by Seller (that are due but not yet paid for by Customer) with respect to the Cancelled Aircraft under this APA and side letters and supplemental agreements related hereto or thereto (if any) as of the date of termination, (b) [***], all the unpaid Advance Payments for the Cancelled Aircraft (including those not yet due as of the termination) (except for termination by Seller due to Customer’s commencing or otherwise becoming the object of a Chapter 7 bankruptcy proceeding or other liquidation for the relief of financially distressed debtors, [***]) and (c) any other amounts payable by Customer to Seller outstanding with respect to the Cancelled Aircraft as of the date of termination;

 

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(iii)                               in addition to the amounts described in Article 19.4.1(ii), Customer shall pay Seller for any and all damages resulting from termination of this APA with respect to the Cancelled Aircraft, including any and all storage, maintenance and other costs that are necessary and appropriate in  connection with the sale, lease or other disposition of the Cancelled Aircraft (including the costs of modifications to the Cancelled Aircraft such as modifications to the paint scheme, markings, BFE and optional features);

 

(iv)                              if the aggregate of all amounts paid by Customer with respect to the Cancelled Aircraft exceeds the aggregate of any and all costs, expenses, losses and damages incurred by Seller with respect to such Cancelled Aircraft as a result of Customer’s default and/or the termination of this APA, Seller shall return such excess amount to Customer. Customer acknowledges that Seller shall have all rights permitted hereunder or by law to recover from Customer all amounts described in Articles 19.4.1(ii) and (iii), even if such costs, expenses, losses and damages are, in the aggregate, more than the amount previously paid by Customer with respect to such Cancelled Aircraft; and

 

(v)                                 Seller may sell, lease or otherwise dispose of the Cancelled Aircraft to a third party free of any claim by Customer.

 

19.4.2                Seller’s rights and remedies under this Article 19.4 constitute Seller’s exclusive rights and remedies with respect to termination of this APA by Seller for the reasons stated in Articles 19.1 and 19.2.

 

19.5                              Customer’s Remedies.

 

19.5.1                      [***]

 

19.5.2                      Customer’s rights and remedies stated in this Article 19 constitute Customer’s sole and exclusive rights and remedies with respect to termination by Customer of this APA for the reasons stated under Articles 19.1 and 19.3.

 

19.6                              Survival.

 

Articles 1, 9.3, 10.4, 17, 18.1, 18.5, 18.6, 18.7, 18.8, 18.9 and Articles 19 through 25 shall survive termination of this APA for whatever reason with respect to the Cancelled Aircraft. For the avoidance of doubt, all terms and conditions of this APA with respect to any Aircraft other than the Cancelled Aircraft will continue to remain in full force and effect.

 

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20.                                                                              Insurance.

 

Articles 20.1, 20.2 and 20.3 of the APA Main Text are deleted in their entirety and replaced as follows:

 

20.1                                         Insurance Requirements.

 

As long as an Aircraft is operated by Customer, a Subsidiary of Customer or a lessee of Customer, Customer shall (or shall cause such Subsidiary of Customer or lessee of Customer, as applicable, that operates the Aircraft to) purchase and maintain aviation insurance with insurers of recognized reputation and responsibility as follows:

 

20.1.1                    Comprehensive aircraft hull and liability insurance, including aircraft third party, passenger liability (including passengers’ baggage and personal effects), cargo and mail legal liability, and all-risk ground and flight physical damage, with a combined single limit of not less than [***], and war risk hull and liability insurance as provided by the FAA program or by commercial providers of such insurance with a combined single limit no less than [***], in each case, of a scope and coverage (except as [***].

 

20.1.2                    Workers’ compensation as required by the appropriate jurisdiction and employer’s liability with a limit of not less than [***] combined single limit; and

 

20.1.3                    Other property and liability insurance coverages of the types and in the amounts that would be considered reasonably prudent for a business organization of Contractor’s size and nature, under the insurance market conditions in effect at the time of placement.  All coverages described in this Article 20.1 shall be placed with deductibles reasonably prudent for a business organization of Customer’s size and nature, under the insurance market conditions in effect at the time of placement.

 

20.1.4                    With respect to the policies of insurance provided for in this Article 20.1.1, Customer shall be responsible for any deductible amounts described in the applicable policies.

 

20.1.5                    [***]

 

20.1.6                    Notwithstanding anything in this APA to the contrary, in no event shall either party or their respective insurers waive any claim against the other party for contribution toward property damage claims and/or third party claims for bodily injury, property damage or wrongful death to the extent of such other party’s percentage of fault as determined by a trier of fact (including an arbitrator) in either a proceeding brought by a third party or a contribution proceeding brought by one party against the other.

 

20.2                                         Evidence of Insurance Coverage.

 

20.2.1                    At least [***] (Japan) prior to the Scheduled Delivery Date of each Aircraft, Customer shall furnish to Seller evidence reasonably satisfactory to Seller of such insurance coverage, including the form of certificate to be delivered on the Scheduled Delivery Date of the Aircraft or other 

 

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certificates certifying that such insurance are in full force and effect.  This evidence may be a certificate of insurance which will be dated and delivered on the Scheduled Delivery Date of the Aircraft.

 

20.2.2                    If Customer fails to provide to Seller such certificate of insurance, Seller may withhold delivery of such Aircraft until the receipt of such certificate of insurance, provided that notwithstanding anything to the contrary in this APA (i) the Aircraft shall be deemed delivered on the Scheduled Delivery Date despite the fact that possession (as well as delivery of the bill of sale) is withheld until the delivery of certificate of insurance and (ii) Customer shall (a) be deemed to have signed and delivered the Certificate of Acceptance and to have accepted delivery of the Aircraft, and (b) immediately pay the balance of the Aircraft Price and reimburse Seller upon demand for all costs incurred by Seller as a result of such delay (e.g., costs of storing and maintaining of the Aircraft).

 

20.2.3                    Upon request of Seller, annual renewal certificates with respect to all insurance required hereunder shall be submitted to Seller before the expiration of the policy periods. The failure of Seller to demand compliance with this Article 20.2 in any year shall not in any way relieve Customer of its obligations hereunder nor constitute a waiver by Seller of these obligations.

 

20.3                                    Noncompliance with Insurance Requirements.

 

[***]

 

21.                                       Limitation of Liability.

 

Article 21 of the APA Main Text is hereby replaced with the following:

 

Article 21                                Limitation of Liability

 

21.1                Limitation of Liability.

 

21.1.1                                      EXCEPT IN THE CASE OF FRAUD OR INTENTIONAL MISREPRESENTATION BY A PARTY HERETO, THIS APA SETS FORTH THE EXCLUSIVE WARRANTIES, LIABILITIES AND OBLIGATIONS OF THE PARTIES AND THE EXCLUSIVE REMEDIES AVAILABLE TO THE PARTIES IN SUBSTITUTION FOR ALL OTHER REMEDIES OR RIGHTS TO WHICH SUCH PARTY MAY OTHERWISE BE ENTITLED, AND EACH PARTY (ON BEHALF OF ITSELF AND EACH SELLER PARTY OR CUSTOMER PARTY RESPECTIVELY), HEREBY WAIVES, RELEASES AND RENOUNCES, (I) ALL OTHER WARRANTIES, OBLIGATIONS, GUARANTEES AND LIABILITIES OF THE OTHER PARTY AND (II) ALL OTHER RIGHTS, CLAIMS AND REMEDIES (KNOWN OR UNKNOWN) AGAINST THE OTHER PARTY, WHETHER EXPRESS OR IMPLIED BY CONTRACT, TORT, OR STATUTORY LAW OR OTHERWISE, WITH RESPECT TO ANY MATTERS ARISING OUT OF OR IN CONNECTION WITH THIS APA.

 

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21.1.2                                      WITHOUT LIMITING THE GENERALITY OF THE FOREGOING AND EXCEPT IN THE CASE OF FRAUD OR INTENTIONAL MISREPRESENTATION BY A SELLER PARTY, THIS APA SETS FORTH THE EXCLUSIVE WARRANTIES, LIABILITIES AND OBLIGATIONS OF SELLER AND THE EXCLUSIVE REMEDIES  AVAILABLE TO CUSTOMER, IN SUBSTITUTION FOR ALL OTHER REMEDIES OR RIGHTS TO WHICH CUSTOMER MAY OTHERWISE BE ENTITLED, WITH RESPECT TO ANY MATTERS ARISING OUT OF OR IN CONNECTION WITH ANY DEFECT OR NONCONFORMITY OR PROBLEM OF ANY KIND IN ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY, PART OR SERVICE DELIVERED OR PROVIDED UNDER THIS APA, AND CUSTOMER (ON BEHALF OF ITSELF AND EACH OTHER CUSTOMER PARTY) HEREBY WAIVES, RELEASES AND RENOUNCES, (I) ALL OTHER WARRANTIES, OBLIGATIONS, GUARANTEES AND LIABILITIES OF THE SELLER PARTIES AND (II) ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF EACH CUSTOMER PARTY (KNOWN OR UNKNOWN) AGAINST EACH SELLER PARTY, WITH RESPECT TO ANY MATTERS ARISING OUT OF OR IN CONNECTION WITH ANY DEFECT OR NONCONFORMITY OR PROBLEM OF ANY KIND IN ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY, PART OR SERVICE DELIVERED OR PROVIDED UNDER THIS APA, WHETHER EXPRESS OR IMPLIED BY CONTRACT, TORT, OR STATUTORY LAW OR OTHERWISE, INCLUDING ANY:

 

(i)             IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY GENERAL OR PARTICULAR PURPOSE, OR OF NON-INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS;

 

(ii)          IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE;

 

(iii)       RIGHT, CLAIM OR REMEDY FOR BREACH OF CONTRACT;

 

(iv)      RIGHT, CLAIM OR REMEDY FOR TORT, UNDER ANY THEORY OF LIABILITY, HOWEVER ALLEGED, INCLUDING ACTIONS OR CLAIMS FOR NEGLIGENCE (WHETHER ACTIVE, PASSIVE OR IMPUTED), IMPLIED WARRANTY, STRICT LIABILITY OR FAILURE TO WARN; AND

 

(v)         RIGHT, CLAIM OR REMEDY FOR LOSS OF, OR DAMAGE OF ANY KIND, TO ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART.

 

21.1.3                          CUSTOMER ACKNOWLEDGES AND AGREES THAT, SUBJECT TO THE INTRODUCTORY EXCEPTION IN ARTICLE 21.1.2, THE RIGHTS, WARRANTIES AND REMEDIES PROVIDED FOR IN THIS APA ARE ADEQUATE AND SUFFICIENT TO PROTECT CUSTOMER FROM ANY DEFECT OR NONCONFORMITY OR PROBLEM OF ANY KIND IN ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY, PART OR SERVICE UNDER THIS APA.

 

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21.1.4              [***]

 

21.2                         Exclusion of Consequential and other Damages.

 

EXCEPT WITH RESPECT TO A BREACH OF THE CONFIDENTIALITY OBLIGATIONS UNDER ARTICLE 23 AND NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS APA, NEITHER PARTY SHALL HAVE ANY OBLIGATION OR LIABILITY TO THE OTHER PARTY, WHETHER ARISING IN CONTRACT (INCLUDING WARRANTY OR INDEMNITY), TORT (INCLUDING ACTIVE, PASSIVE OR IMPUTED NEGLIGENCE OR PRODUCT LIABILITY), OR OTHERWISE, FOR ANY INCIDENTAL (EXCEPT AS PROVIDED UNDER ARTICLES 15.1.3 AND 19.4.1(iii)), CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES, OR FOR ANY LOSS OF USE, REVENUE OR PROFIT, ARISING OUT OF OR IN CONNECTION WITH THIS APA, INCLUDING ANY AIRCRAFT, GOODS OR SERVICES CONTEMPLATED OR PROVIDED HEREUNDER.

 

21.3                         Contribution Toward Third Party Claims.

 

CLAIMS BY EITHER PARTY AGAINST THE OTHER (OR ANY SELLER PARTY OR CUSTOMER PARTY AS THE CASE MAY BE) FOR CONTRIBUTION TOWARD THIRD PARTY BODILY INJURY OR PROPERTY DAMAGE CLAIMS ARE EXPRESSLY NOT WAIVED HEREUNDER AND ARE LIMITED TO THE EXTENT OF SUCH OTHER PARTY’S PERCENTAGE OF FAULT AS DETERMINED BY THE TRIER OF FACT, INCLUDING AN ARBITRATOR, AND LIMITED TO SUCH PERCENTAGE OF FAULT IRRESPECTIVE OF PRINCIPLES OF JOINT AND SEVERAL LIABILITY, CO-TORTFEASOR LIABILITY, AND JUDGMENT CO-TORTFEASOR LIABILITY.

 

21.4                         No Duplicate Remedies.

 

Neither party hereto shall be obligated to provide to the other party hereto any remedy in duplicate for matters covered by any other remedy which has been provided under any contracts between the parties hereto.

 

21.5                         Termination Rights.

 

Nothing in this Article 21 shall be deemed to limit any termination rights or other rights provided in this APA with respect to the failure of any party to perform or otherwise comply with any covenant or obligation set forth in this APA.

 

22.                               Confidentiality.

 

22.1                         Article 23.2.2 of the APA Main Text is hereby deleted in its entirety.

 

22.2                         The following new Articles 23.4 and 23.5 are hereby inserted into Article 23 of the APA Main Text.

 

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23.4         [***]

 

23.5         [***]

 

23.                               Dispute Resolution.

 

Article 24.2 of the APA Main Text is hereby replaced with the following:

 

24.2                                       Dispute Resolution.

 

24.2.1                       To the extent that any dispute, controversy or difference between the parties hereto arising out of, relating to, or in connection with this APA cannot be solved amicably, either party hereto may provide a notice of dispute to the other party.  Upon receipt of such notice, the parties hereto shall attempt to resolve such dispute, controversy or difference amicably through good faith discussions  involving senior executive officers of both Parties.  In the event that any such dispute, controversy or difference by the parties hereto cannot be resolved amicably within [***] calendar days after receipt of the foregoing notice, either party may bring an action or proceeding seeking the enforcement of this APA.

 

24.2.2                       Forum Selection.  Each party irrevocably and unconditionally (i) submits, itself to the exclusive jurisdiction of the United States District Court for the Southern District of New York (or, if such court does not accept jurisdiction, any New York state court sitting in the County of New York, New York) in any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this APA,  (ii) agrees that all claims in respect of any such action or proceeding may be heard and determined in such Federal court or, to the fullest extent permitted by law, in such New York state court, and (iii) waives, to the fullest extent permitted by law, any objection to venue laid therein.  Notwithstanding the preceding sentence, process in any action or proceeding referred to therein may be served by appropriate means on the other party outside of the Southern District of New York (or the County of New York, New York, as applicable). Because a breach of the provisions of this APA related to confidentiality obligations and/or intellectual property could not adequately be compensated by money damages, any party shall be entitled to an injunction restraining such breach or threatened breach and to specific performance of any such provision of this APA and, in either case, no bond or other security shall be required in connection therewith. Each party agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

24.2.3                       Waiver of Service of Process.  In the event a lawsuit or other legal proceeding is commenced relating to or arising out of this APA, the parties hereby consent to, and hereby waive any objections to, service of process by any of the following means:  (1) by personal delivery to the person identified in Article 22.2.1 as the recipient of notice for the applicable party (“Notice Recipient”); or (2) by certified mail or courier addressed to Notice Recipient[s], with such recipient’s signature required.  The parties hereby expressly waive any rights to service by means prescribed by the Hague Convention of 15 November 1965 on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters 

 

LA1-13

 

(the “Convention”), including any and all declarations, commentary, and questionnaire responses to the Convention promulgated by the United States or Japan authorities.  The parties further expressly waive the right to service by any means prescribed by rules, statutes, procedures, or laws of Japan and/or the United  States.  If service is effected by one of the two means set forth in this Article 24.2.3, the parties  agree not to raise defective service as an objection in any proceeding to enforce a judgment entered in the lawsuit or other legal proceeding.

 

24.2.4                       WAIVER OF JURY TRIAL.

 

EACH PARTY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO A JURY TRIAL WITH RESPECT TO ANY CLAIM OR CAUSE OF ACTION BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS APA, ANY TRANSACTION CONTEMPLATED BY THIS APA, ANY COURSE OF CONDUCT, ANY COURSE OF DEALING, ANY STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ANY ACTIONS OR OMISSIONS OF ANY PARTY HERETO OR OF ANY OTHER PERSON RELATING TO THIS APA.

 

24.                               Force Majeure.

 

Article 25.8 of the APA Main Text is hereby replaced with the following:

 

Neither party hereto shall be responsible to the other party hereto for non-performance, delay (other than delay in delivery, which shall be covered under Articles 9 and 10 and in Articles 4 of Annex 5 of this Letter Agreement) or deficiency in the performance of its respective obligations as a result of any cause beyond such party’s reasonable control, including but not limited to:

 

25.8.1              acts of God;

 

25.8.2              fire, earthquake, lightning, flood, typhoon, cyclone, hurricane, windstorm, tornado, tsunami, blizzards, landslide, volcanic activity, natural disasters, explosions;

 

25.8.3              any occurrence or accident causing bodily injury, sickness, disease, or death, or loss of or damage to property, loss of use of property, evacuation, or disruption of normal business activities arising out of or resulting from the radioactive, nuclear, toxic, explosive, chemical or other hazardous properties or byproduct material;

 

25.8.4              any exercise of the power of eminent domain, police power, expropriation, condemnation, confiscation, nationalization or other taking by any governmental authority;

 

25.8.5              epidemics, pandemics, animal to human or other abnormal transmissions of an infectious disease (including bird flu/influenza and swine flu/influenza), or quarantine restrictions;

 

LA1-14

 

25.8.6              total or constructive loss of the Aircraft (which, for the avoidance of any doubt, means the actual destruction of the affected Aircraft or such damage or destruction to a material portion of the affected Aircraft such that the affected Aircraft cannot be repaired by commercially reasonable efforts) to  the extent that such loss is not attributable to a negligent act or omission of the affected party;

 

25.8.7              changes in laws affecting allocation of materials or facilities necessary for the completion of the Aircraft;

 

25.8.8              war, civil war or warlike operations, acts of terrorism, riots, or any other armed hostility;

 

25.8.9              closure of harbors, docks, canals or other transportation systems;

 

25.8.10       blackouts or other loss or reduction of electrical power not attributable to a negligent act or omission of the affected party;

 

25.8.11       [***]

 

25.8.12       [***]

 

25.8.13       [***]

 

25.8.14       [***]

 

25.8.15       [***] (each, a “Force Majeure Event”),

 

provided that (a) the forgoing shall not relieve either party hereto from performing its obligations under this APA to the extent the same can be performed using reasonable diligent efforts notwithstanding the effects of the above-cited events or circumstances; (b) under no circumstance is Customer relieved by the events set forth in Article 25.8.14 above from its obligations under this APA, (c) under no circumstance is either party hereto relieved by any of the above-cited events or occurrences from its obligations to make any payment due under this APA, including payments under Article 10 and Article 4 of Annex 5 of the Letter Agreement, and (d) under no circumstances are Customer’s rights as provided in Articles 9, 10, 19 and Article 4 of Annex 5 of the Letter Agreement limited as a result of a Force Majeure Event occurring with respect to Seller.  If there occurs any Force Majeure Event, the party affected by such Force Majeure Event shall inform the other party hereto of the occurrence and details of such Force Majeure Event as soon as practicable, and after the cessation of such Force Majeure Event, the affected party shall promptly resume the performance of its obligations under this APA.

 

25.                            Seller’s Obligation.

 

Article 4 of Exhibit A of the APA is hereby replaced with the following:

 

LA1-15

 

4.                                      Seller’s Obligations

 

4.1                               Seller shall provide for the scheduled storage and installation of all BFE and obtain certification of all Aircraft containing installed BFE, as set forth in Part III.B of Attachment 4, at no additional charge to Customer. If Seller designates any additional  items as BFE after the date hereof (“Additional BFE”), the scheduled storage and installation services for such Additional BFE shall be subject to an amount equal to the lesser of (i) [***]

 

4.2                               All confidential information provided by the BFE Suppliers to Seller or otherwise provided as part of the BFE Software shall be deemed Confidential Information and shall be subject to Article 23 of the APA Main Text.  In addition to the permitted disclosures set forth in Article 23 of the APA Main Text, Seller shall have the right to disclose such Confidential Information to any third-party supplier or Civil Aviation Authority to the extent necessary in connection with the design, development, testing, qualification/certification, support, integration, operation and/or manufacture of the Aircraft, provided that (i) prior to the disclosure to any third-party supplier, such third-party supplier has entered into an agreement including confidentiality obligations and restrictions no less stringent than those set forth in Article 23 of the APA Main Text, and (ii) such third-party suppliers shall be deemed to be Representatives of Seller for the purpose of Article 23.1 of the APA Main Text.

 

4.3                               Prior to March 31, 2013, the parties shall meet and discuss each party’s then-current expectations (as applicable) for the BFE Documents and the requirements to be set forth therein (including any applicable deadlines for notifications and/or decisions to be made), as well as any near-term deadlines for Customer to choose the BFE, as contemplated in Article 2.1 of Exhibit A of the APA.  Thereafter and until the BFE Documents are finalized and delivered to Customer, the parties shall hold regular meetings at least once every six (6) months to discuss the BFE Documents and any then-current near-term deadlines for notifications and/or decisions to be made.

 

26.                                       Average Direct Hourly Labor Rate.

 

26.1                     The definition of “Average Direct Hourly Labor Rate” in Part 1 of Exhibit C of the APA is hereby replaced with the following:

 

“Average Direct Hourly Labor Rate” shall mean the rate to be used as Customer’s costs for one Direct Labor Hour [***].

 

26.2                     The Appendix to Part 1 (Labor Rate Escalation Adjustment Formula) of Exhibit C to the APA is hereby deleted.

 

27.                            Service Life Policy.

 

Seller will provide Customer with the Service Life Policy Commitment as provided in Schedule 1 to Annex 4.

 

28.                            Supplier Warranties.

 

Seller shall provide Customer with the Supplier Warranties as provided in Schedule 1 to 

 

LA1-16

 

Annex 4.

 

29.                               Seller Interface Commitment.

 

Seller shall provide Customer with the Seller Interface Commitment as provided in Schedule 1 to Annex 4.

 

30.                            Addition of Appendix III and Appendix IV.

 

Upon mutual agreement by the parties on the respective forms, Schedule 2 and Schedule 3 to this Annex 1 shall be added to the APA as a new Appendix III and Appendix IV to the APA as so attached hereto.

 

LA1-17

 

ATTACHMENT 1 REV A.

 

DESCRIPTION OF AIRCRAFT; PRICE

 

MRJ90

 

	
Aircraft Model/MTOW
    	
 
    	
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Detailed Specifications
    	
 
    	
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Quantity
    	
 
    	
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Engine Model
    	
 
    	
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Base   Aircraft Price (in January 2011 dollars)
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Additional Aircraft Price as of the execution of the APA
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
aggregate   price of Selected Optional Features as of the execution of the APA (listed in   Schedule 1 to this Annex 1)
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
aggregate   price of storage and installation of all BFE as of the execution of the APA
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
aggregate   price of all other changes to the aircraft for which Customer is required to   pay pursuant to Article 13 of the APA as of the execution of the APA
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Sub-Total of Additional Aircraft Price as of the   execution of the APA
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Aircraft Basic Price
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Initial Aircraft Basic   Price  
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Net Initial Aircraft Basic Price
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Base Month for Escalation Adjustment
    	
 
    	
[***]
    

 

LA1-18

 

MRJ70

 

	
Aircraft Model/MTOW
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Detailed Specifications
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Quantity
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Engine Model
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Base   Aircraft Price (in January 2011 dollars)
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Additional Aircraft Price as of the execution of the APA
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
aggregate   price of Selected Optional Features as of the execution of the APA (listed in   Schedule 1 to this Annex 1)
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
aggregate   price of storage and installation of all BFE as of the execution of the APA
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
aggregate   price of all other changes to the aircraft for which Customer is required to   pay pursuant to Article 13 of the APA as of the execution of the APA
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Sub-Total of Additional Aircraft Price as of the   execution of the APA
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Aircraft Basic Price
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Initial Aircraft Basic   Price
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Net Initial Aircraft Basic Price
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    
	
Base Month for Escalation Adjustment
    	
 
    	
[***]
    

 

LA1-19

 

ATTACHMENT 2 REV. A

 

[***]

 

	
 
    	
 
    	
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Net Initial
   Aircraft
   Basic Price 
   per one (1)
    	
 
    	
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   (Amts. Due/Mos. Prior to Delivery): (*1)
    	
 
    
	
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LA1-20

 

	
 
    	
 
    	
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Net Initial
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LA1-21

 

	
 
    	
 
    	
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Net Initial
   Aircraft
   Basic Price 
   per one (1)
    	
 
    	
Advance Payment Per Aircraft (U.S.$)
   (Amts. Due/Mos. Prior to Delivery): (*1)
    	
 
    
	
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aircraft
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    [***]
    	
 
    	
[***]
    [***]
    	
 
    
	
43
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
44
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
45
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
46
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
47
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
48
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
49
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
50
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
51
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
52
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
53
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
54
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
55
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
56
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
57
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
58
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
59
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
60
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
61
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
62
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
63
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
64
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    

 

LA1-22

 

	
 
    	
 
    	
Aircraft
    	
 
    	
 
    	
 
    	
Net Initial
   Aircraft
   Basic Price 
   per one (1)
    	
 
    	
Advance Payment Per Aircraft (U.S.$)
   (Amts. Due/Mos. Prior to Delivery): (*1)
    	
 
    
	
No
    	
 
    	
Model and
   Version
    	
 
    	
[***]
    	
 
    	
aircraft
    (U.S.$)
    	
 
    	
[***]
    [***]
    	
 
    	
[***]
    [***]
    	
 
    	
[***]
    [***]
    	
 
    	
[***]
    [***]
    	
 
    
	
65
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
66
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
67
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
68
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
69
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
70
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
71
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
72
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
73
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
74
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
75
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
76
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
77
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
78
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
79
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
80
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
81
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
82
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
83
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
84
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
85
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
86
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    

 

LA1-23

 

	
 
    	
 
    	
Aircraft
    	
 
    	
 
    	
 
    	
Net Initial
   Aircraft
   Basic Price 
   per one (1)
    	
 
    	
Advance Payment Per Aircraft (U.S.$)
   (Amts. Due/Mos. Prior to Delivery): (*1)
    	
 
    
	
No
    	
 
    	
Model and
   Version
    	
 
    	
[***]
    	
 
    	
aircraft
    (U.S.$)
    	
 
    	
[***]
    [***]
    	
 
    	
[***]
    [***]
    	
 
    	
[***]
    [***]
    	
 
    	
[***]
    [***]
    	
 
    
	
87
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
88
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
89
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
90
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
91
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
92
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
93
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
94
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
95
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
96
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
97
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
98
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
99
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
100
    	
 
    	
MRJ90
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    

 

[***]

 

LA1-24

 

ATTACHMENT 3 REV. A

 

[***]

 

[***]

 

LA1-25

 

SCHEDULE 1.1

 

SELECTED OPTIONAL FEATURES FOR MRJ90

 

1.              This Schedule 1.1 (SELECTED OPTIONAL FEATURES) describes the Selected Optional Features that Customer has selected for incorporation into the respective MRJ90 Aircraft as of the date of the execution of the APA.

 

2.              The aggregate amount of the prices of all of the Selected Optional Features listed in this Schedule 1.1, on a per MRJ90 Aircraft Basis, [***].

 

	
 
    	
 
    	
Item
    	
 
    	
Quantity
    	
 
    	
Unit Price
    	
 
    	
Total Price
    	
 
    	
Base
   Month/
   Year
    	
 
    
	
[***]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CA03-00003
    	
 
    	
MRJ90 Design   Weight Upgrade (STD to LR)
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
23
    	
 
    	
COMMUNICATION
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CA23-00005
    	
 
    	
ACARS
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
25
    	
 
    	
EQUIPMENT & FURNISHING
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CA25-00007
    	
 
    	
Premium Class Seat   — Single Seat
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CA25-00008
    	
 
    	
Premium Class Seat   — Double Seat
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CA25-00022
    	
 
    	
Coffee Maker
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CA25-00044
    	
 
    	
G4 Galley
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CA25-00048
    	
 
    	
Class Divider —   Hard Type (3 abreast)
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CA 25-00052
    	
 
    	
S2S Stowage
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
34
    	
 
    	
NAVIGATION
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CA34-00006
    	
 
    	
Flight Management System with GPS and DME (2nd System)
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    

 

LA1-26

 

	
 
    	
 
    	
Item
    	
 
    	
Quantity
    	
 
    	
Unit Price
    	
 
    	
Total Price
    	
 
    	
Base
   Month/
   Year
    	
 
    
	
CA34-00010
    	
 
    	
Mode S Transponder with ADS-B out Function
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CA34-00011
    	
 
    	
Radio Altimeter
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
38
    	
 
    	
WATER & WASTE
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CA38-00002
    	
 
    	
Water System for   G1
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    

 

LA1-27

 

SCHEDULE 1.2

 

SELECTED OPTIONAL FEATURES FOR MRJ70

 

1.                      This Schedule 1.2 (SELECTED OPTIONAL FEATURES) describes the Selected Optional Features that Customer has selected for incorporation into the respective MRJ70 Aircraft as of the date of the execution of the APA.

 

2.              The aggregate amount of the prices of all of the Selected Optional Features listed in this Schedule 1.2, on a per MRJ70 Aircraft Basis, [***]

 

	
 
    	
 
    	
 
    	
 
    	
Item
    	
 
    	
Quantity
    	
 
    	
Unit Price
    	
 
    	
Total Price
    	
 
    	
Base
   Month/
   Year
    	
 
    
	
 
    	
 
    	
[***]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
CA03-00006
    	
 
    	
MRJ70 Design   Weight Upgrade (STD to LR)
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
23
    	
 
    	
COMMUNICATION
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
CA23-00005
    	
 
    	
ACARS
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
25
    	
 
    	
EQUIPMENT & FURNISHING
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
CA25-00007
    	
 
    	
Premium Class Seat   — Single Seat
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
CA25-00008
    	
 
    	
Premium Class Seat   — Double Seat
    	
 
    	
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CA25-00022
    	
 
    	
Coffee Maker
    	
 
    	
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CA25-00028
    	
 
    	
L1 Lavatory
    	
 
    	
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CA25-00044
    	
 
    	
G4 Galley
    	
 
    	
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CA25-00047
    	
 
    	
Class Divider —   Soft & Movable Type (3 abreast)
    	
 
    	
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LA1-28

 

	
 
    	
 
    	
34
    	
 
    	
NAVIGATION
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
CA34-00006
    	
 
    	
Flight Management System with GPS and DME (2nd System)
    	
 
    	
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CA34-00010
    	
 
    	
Mode S Transponder with ADS-B out Function
    	
 
    	
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CA34-00011
    	
 
    	
Radio Altimeter
    	
 
    	
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38
    	
 
    	
WATER & WASTE
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
CA38-00002
    	
 
    	
Water System for   G1
    	
 
    	
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LA1-29

 

SCHEDULE 2

 

APPENDIX III

 

FORM PURCHASE AGREEMENT ASSIGNMENT

 

[To Be Agreed and Inserted]

 

LA1-30

 

SCHEDULE 3

 

APPENDIX IV

 

FORM CONSENT AND AGREEMENT

 

[To Be Agreed and Inserted]

 

LA1-31

 

EXECUTION VERSION

 

ANNEX 2

 

[***]

 

[***]

 

LA2-1

 

EXECUTION VERSION

 

ANNEX 3

 

ESCALATION [***]

 

[***]

 

LA 3-1

 

EXECUTION VERSION

 

ANNEX 4

 

CUSTOMER SUPPORT

 

This Annex 4 amends and supplements Exhibit B (Customer Support Document) of the APA.

 

1.                                     Customer Provision of Data.

 

Article 3 of Part 1 of Exhibit B of the APA is hereby replaced with the following:

 

Customer will provide any data reasonably required by Seller for the provision of the customer support services described in this Exhibit B and will ensure that Seller and Customer Support Providers have the right to use such data for such purpose; [***]

 

2.                                     Customer Support Providers.

 

Article 8 of Part 1 of Exhibit B of the APA is hereby replaced with the following:

 

Notwithstanding anything to the contrary in this APA (including Article 18.1 of the APA Main Text and this Exhibit), Seller may enter into agreements with Customer Support Providers pursuant to which such Customer Support Providers may perform any of Seller’s support obligations under this Exhibit B (including training services, technical support and spare parts support), and such performance by Customer’s Support Providers shall satisfy Seller’s obligations hereunder, [***]

 

3.                                     [***]

 

[***]

 

4.                                     Airworthiness Directives/Service Bulletins.

 

Seller shall provide Customer with certain support regarding Airworthiness Directives and mandatory Service Bulletins as provided in Schedule 1 to this Annex 4.

 

5.                                     Customer Cooperation for Seller Personnel.

 

Article 2 of Part 1 of Exhibit B of the APA is hereby replaced with the following:

 

If requested by Seller, Customer shall make (and shall cause the Customer Parties, as applicable, to make) commercially reasonable efforts to assist the Seller personnel who perform any customer support services described in this Customer Support Document in obtaining all necessary work permits and all necessary facility and airport security clearances and identification passes.

 

LA4-1

 

6.                                     [***].

 

[***]

 

7.                                     Field Services.

 

[***]

 

8.                                     Technical Support.

 

[***]

 

9.                                     Flight Operational Engineering Support.

 

Article 4.1 of Part 2 of Exhibit B of the APA is hereby replaced with the following:

 

Seller shall, if requested by Customer, provide flight operational engineering support with respect to the Aircraft. [***].

 

Article 4.2 of Part 2 of Exhibit B of the APA is hereby replaced with the following:

 

[***].

 

10.                              Operational Maintenance Information.

 

10.1                       Article 5.1 of Part 2 of Exhibit B of the APA is hereby replaced with the following:

 

Seller shall provide, on a periodic basis and in any event no less than quarterly, Customer with Operational Maintenance Information available to Seller for such quarter.

 

10.2                       [***].

 

11.                              Pilot Training.

 

The initial paragraph of Article 2.1 of Part 3 of Exhibit B of the APA is hereby replaced with the following:

 

[***]

 

12.                              Maintenance Technician Training.

 

The initial paragraph of Article 3.1 of Part 3 of Exhibit B of the APA is hereby replaced with the following:

 

[***]

 

13.                              Flight Attendant Training.

 

The initial paragraph of Article 4.1 of Part 3 of Exhibit B of the APA is hereby replaced with the following:

 

[***]

 

LA4-2

 

14.                             Aircraft Dispatcher Training.

 

The initial paragraph of Article 5.1 of Part 3 of Exhibit B of the APA is hereby replaced with the following:

 

[***]

 

15.                              Revision Service.

 

Seller will provide Customer with revisions to Technical Information as provided in Schedule 1 to this Annex 4.

 

LA4-3

 

Schedule 1

 

To

 

ANNEX 4

 

1.                                              Airworthiness Directives/Service Bulletins.

 

[***]

 

2.                                              Revision Service.

 

Article 3 of Part 5 of Exhibit B of the APA is hereby replaced with the following:

 

3.                                              Service Life Policy.

 

Articles 1 (Service Life Policy) and 2 (Price) of Part 3 of Exhibit C of the APA are hereby replaced with the following:

 

1.                                              Service Life Policy.

 

1.1                                       SLP Commitment.

 

[***]

 

2.                                              Price.

 

The price which Customer shall pay for the Correction of Failed SLP Components  shall be calculated pursuant to the following formula:

 

[***]

 

4.                                              Supplier Warranties.

 

Article 1 of Part 4 of Exhibit C of the APA is hereby replaced with the following:

 

1. Seller shall use commercially reasonable efforts to (i) obtain, prior to the execution date of a definitive agreement regarding a maintenance services program for the Aircraft, from each Supplier of Supplier Parts that were selected and purchased by Seller and installed in the Aircraft at the time of the delivery:

 

(a)                                 warranties for defects in design, including selection of materials and the process of manufacture;

 

(b)                                 warranties for defects in materials and workmanship, including the process of manufacture; and

 

(c)                                  indemnification provisions for the benefit of Customer substantially similar to the provisions of Article 17.1.1 and Article 17.1.2 of the APA with respect to the systems, accessories, equipment or parts provided by such Supplier with respect to the Aircraft,

 

in each case that are enforceable and assignable by Customer to its permitted assignees under this APA, and (ii) furnish, prior to the execution date of a definitive agreement regarding a maintenance services program for the Aircraft, copies of the warranties and indemnities to be

 

LA4-4

 

provided to Customer with respect to Supplier Parts.

 

5.                                      Seller Interface Commitment.

 

Article 1 of Part 5 of Exhibit C of the APA is hereby replaced with the following:

 

1. In the event that Customer experiences an Interface Problem in an Aircraft within [***] after the delivery of such Aircraft, Seller shall, without additional charge to Customer, promptly investigate and analyze the cause or causes of such Interface Problem. Seller shall, promptly after the conclusion of its investigation, advise Customer of Seller’s opinion as to the causes of such Interface Problem and Seller’s recommendation as to corrective actions.

 

LA4-5

 

EXECUTION VERSION

 

ANNEX 5

 

SPECIAL ARRANGEMENTS

 

1.                                      Model Change Option.

 

[***]

 

2.                                      Additional Delivery Positions.

 

[***]

 

3.                                      [***].

 

[***]

 

4.                                      [***].

 

[***]

 

4.1                               Supplemental Definitions for this Annex 5.

 

In addition to the terms defined in Article 1.1 of the APA Main Text, the following terms shall have the meanings described below in this Annex 5.

 

[***]

 

4.2                               [***]

 

4.3                               [***]

 

4.4                               [***]

 

4.5                               [***]

 

4.6                               [***]

 

4.7                               [***]

 

4.8                               Reserved.

 

4.9                               [***]

 

4.10                                [***]

 

5.                                      [***]

 

[***]

 

LA5-1

 

6.                                      [***]

 

[***]

 

LA5-2

 

EXECUTION VERSION

 

ANNEX 6

 

DISPATCH RELIABILITY GUARANTEE

 

[***]

 

LA6-1

 

EXECUTION VERSION

 

ANNEX 7

 

FUEL BURN GUARANTEE

 

[***]

 

LA7-1

 

EXECUTION VERSION

 

ANNEX 8

 

[***]

 

[***]

 

LA8-1

 

Execution Version

 

ANNEX 9

 

OPTION AIRCRAFT

 

1.                                      Definitions

 

Except as expressly provided herein, capitalized terms used but not otherwise defined in this Annex 9 shall have the meanings described in the APA and this Letter Agreement. All Article references are references to Articles in this Annex 9 unless otherwise noted. The following terms used in this Annex 9 shall have the meanings described below in this Article 1:

 

“Option Aircraft” shall mean the aircraft which may be purchased [***] by Customer at its option pursuant to Article 2.1 below, with the same model and type as the “Aircraft” contemplated in the APA.

 

[***]

 

[***]

 

[***]

 

“Purchase Option” shall have the meaning described in Article 2.1.

 

[***]

 

2.                                      Purchase Option.

 

2.1                               Customer shall have the option to purchase any or all of the one hundred (100) Option Aircraft [***] on the terms and conditions set forth herein (each such option to purchase [***], a “Purchase Option”).

 

2.2                               [***]

 

LA9-1

 

2.3                               [***]

 

2.4                               Upon the exercise of a Purchase Option [***] in accordance with Article 2.3 above, the parties agree that, except as set forth in this Annex 9, from the date in which the Purchase Option is exercised, the terms and conditions set forth in the APA and this Letter Agreement with respect to “Aircraft” shall apply prospectively to the Option Aircraft for which the Purchase Option was exercised  and, accordingly, the following provisions shall apply:

 

(i)                                     each use of the term “Aircraft” in the APA and the Letter Agreement shall be deemed to refer to Aircraft and the Option Aircraft for which the Purchase Option has been exercised in accordance with Article 2.3 above from the date such Purchase Option has been so exercised, and all other terms and conditions of the APA and the Letter Agreement shall not otherwise be amended and shall remain in full force and effect; and

 

(ii)                                  Attachments 1 and 2 to the APA shall be amended to reflect the exercise of such Purchase Option [***].

 

For the avoidance of doubt, prior to the exercise of a Purchase Option [***]  in accordance with Article 2.3 above, Option Aircraft shall not be “Aircraft” under the APA and this Letter Agreement and no term and condition with respect to an “Aircraft” in the APA or this Letter Agreement shall apply retroactively to any Option Aircraft.

 

2.5                               [***]

 

3.                                      Option Period

 

3.1                               Subject to Article 3.2 below, the delivery schedule of the Option Aircraft shall commence during 2021 and end on or before the end of the fourth Quarter of 2024 [***]  (the “Option Period”).  [***].

 

3.2                               [***].

 

4.                                      [***]

 

[***].

 

5.                                      [***]

 

[***].

 

LA9-2EXHIBIT 10.1

 

COMMON STOCK PURCHASE AGREEMENT

 

This Common Stock Purchase Agreement (this “Agreement”) is dated as of December 12, 2012, between Synta Pharmaceuticals Corp., a Delaware Corporation (the “Company”), and the purchaser identified on the signature pages hereto (including its successors and assigns, the “Purchaser”).

 

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

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:

 

ARTICLE I.
 DEFINITIONS

 

1.1          Definitions.  In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1:

 

“Action” shall have the meaning ascribed to such term in Section 3.1(j).

 

“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 405 under the Securities Act.

 

“Board of Directors” means the board of directors of the Company.

 

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

 

“Closing” means the closing of the purchase and sale of the Shares pursuant to Section 2.1.

 

“Closing Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchaser’s obligations to pay the Subscription Amount and (ii) the Company’s obligations to deliver the Shares, in each case, have been satisfied or waived, but in no event later than the fourth Trading Day following the date hereof.

 

“Commission” means the United States Securities and Exchange Commission.

 

1

 

“Common Stock” means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.

 

“Common Stock Equivalents” means any securities of the Company which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

“Company Counsel” means Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., with offices located at One Financial Center, Boston, MA 02111.

 

“Environmental Laws” shall have the meaning ascribed to such term in Section 3.1(dd).

 

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

 

“FDA” shall have the meaning ascribed to such term in Section 3.1(aa).

 

“GAAP” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Intellectual Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

 

“Liens” means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction, other than restrictions imposed by securities laws.

 

“Material Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material Permits” shall have the meaning ascribed to such term in Section 3.1(m).

 

“NASDAQ” means The NASDAQ Global Market.

 

“Per Share Purchase Price” equals $8.60, subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement and prior to the Closing.

 

“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 informal investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

2

 

“Prospectus” means the base prospectus included in the Registration Statement, including the Prospectus Supplement and all other documents and information deemed to be part of the Prospectus by incorporation by reference or otherwise, as amended from time to time.

 

“Prospectus Supplement” means any supplement to the Prospectus complying with Rule 424(b) of the Securities Act, including the prospectus supplement that will be filed with the Commission and delivered by the Company to the Purchaser at or prior to the Closing including the documents incorporated by reference therein.

 

“Purchaser Party” shall have the meaning ascribed to such term in Section 4.5.

 

“Registration Statement” means the effective registration statement with Commission file No. 333-176022 which registers the sale of the Shares to the Purchaser, including all exhibits, financial schedules and all documents and information deemed to be part of the Registration Statement by incorporation by reference or otherwise, as amended from time to time, including the information (if any) contained in the Prospectus Supplement and deemed to be part thereof under the rules of the Securities Act.

 

“Required Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Shares” means the shares of Common Stock issued or issuable to the Purchaser pursuant to this Agreement.

 

“Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable Common Stock).

 

“Subscription Amount” means the aggregate amount to be paid for Shares purchased hereunder as specified below the Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,” in United States dollars and in immediately available funds.

 

“Subsidiary” means any subsidiary of the Company as set forth on Exhibit 21.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading Day” means a day on which the Common Stock is traded on NASDAQ.

 

3

 

“Transaction Documents” means this Agreement and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer Agent” means ComputerShare Trust Company, the current transfer agent of the Company.

 

ARTICLE II.
 PURCHASE AND SALE

 

2.1          Closing.  On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchaser agrees to purchase, Shares in an amount as set forth on the signature page hereto executed by the Purchaser.  Promptly after receipt of the Shares referenced in Section 2.2(a)(iii), the Purchaser shall deliver to the Company, via wire transfer or a certified check, immediately available funds equal to the Purchaser’s Subscription Amount as set forth on the signature page hereto executed by the Purchaser, and the Company and the Purchaser shall deliver the other items set forth in Section 2.2 deliverable at or prior to the Closing.  Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of Company Counsel or such other location as the parties shall mutually agree. In the event the Closing Date has not occurred on or prior to the fourth Trading Day following the date hereof due to a failure by the Company to satisfy any of the applicable conditions precedent, the Purchaser’s obligations hereunder shall terminate.

 

2.2          Deliveries.

 

(a)           On or prior to the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser the following:

 

(i)            this Agreement duly executed by the Company;

 

(ii)           a legal opinion of Company Counsel in form and substance reasonably satisfactory to the Purchaser;

 

(iii)          a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver via the Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”) a number of Shares equal to the Purchaser’s Subscription Amount divided by the Per Share Purchase Price, registered in the name of the Purchaser; and

 

(iv)          the Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

 

(b)           On or prior to the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i)            this Agreement duly executed by the Purchaser; and

 

4

 

(ii)           after receipt of the Shares referenced in Section 2.2(a)(iii), the Purchaser’s Subscription Amount by wire transfer to the account as specified in writing by the Company.

 

2.3          Closing Conditions.

 

(a)           The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)            the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Purchaser contained herein (unless as of a specific date therein);

 

(ii)           all obligations, covenants and agreements of the Purchaser required to be performed at or prior to the Closing Date shall have been performed in all material respects; and

 

(iii)          the delivery by the Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

(b)           The obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)            the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date therein);

 

(ii)           all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed in all material respects;

 

(iii)          the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv)          there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(v)           from the date hereof through the Closing Date, the Company shall not have received notice of any violation of any law, rule or regulation, or stock exchange rule, from any governmental, regulatory or self-regulatory authority including, without limitation, the Commission or NASDAQ and trading in the Common Stock shall not have been suspended by the Commission or NASDAQ (except for any suspension of trading of limited duration agreed to by the Company in connection with this offering, which suspension shall be terminated prior to the Closing), and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, nor shall a banking moratorium have been

 

5

 

declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of the Purchaser, makes it impracticable or inadvisable to purchase the Shares at the Closing.

 

ARTICLE III.
 REPRESENTATIONS AND WARRANTIES

 

3.1          Representations and Warranties of the Company.  Except as disclosed in the SEC Reports or the Registration Statement and the Prospectus, the Company hereby makes the following representations and warranties to the Purchaser:

 

(a)           Subsidiaries.  All of the direct and indirect subsidiaries of the Company are set forth on Exhibit 21.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.  Except as disclosed in the SEC Reports, the Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

(b)           Organization and Qualification.  The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing (where such concept is recognized) under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted and as described in the Prospectus.  Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents.  Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c)           Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.  The execution and delivery of each of the Transaction Documents by the

 

6

 

Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection therewith other than in connection with the Required Approvals, which will be obtained by the Company on or prior to the Closing Date.  Each Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, assuming due authorization, execution and delivery by the Purchaser thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in respect of the Purchaser in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law or public policy.

 

(d)           No Conflicts.  The execution, delivery and performance by the Company of the Transaction Documents, the issuance and sale of the Shares and the consummation by it of the transactions contemplated hereby and thereby to which it is a party do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to result in a Material Adverse Effect.

 

(e)           Filings, Consents and Approvals.  The Company is not required to obtain any consent, waiver, authorization or order of, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the filings required pursuant to Section 4.2 of this Agreement, (ii) the filing with the Commission of the Prospectus Supplement, (iii) an application to NASDAQ for the listing of the Shares for trading thereon in the time and manner required thereby, and (iv) such filings as are required to be made under applicable state securities laws or FINRA (collectively, the “Required Approvals”).  All Required Approvals necessary for the transactions contemplated by the Transaction

 

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Documents, including the delivery of the Shares to the Purchaser, will have been obtained by the Company on or prior to the Closing Date.

 

(f)            Issuance of the Shares; Registration.  The Shares are duly authorized and, when issued, paid for and delivered in accordance with this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company and free and clear of any and all restrictions on transfer and shall not bear any restrictive legend of any kind.  The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement. The Registration Statement was declared effective on August 28, 2008 (the “Effective Date”).  The Registration Statement is effective under the Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the use of the Prospectus has been issued by the Commission and no proceedings for that purpose have been instituted or are threatened by the Commission.  Any required filing of the Prospectus Supplement will be made in the manner and within the time period required by such Rule 424(b).  At the time the Registration Statement and any amendments thereto became effective, at the date of this Agreement and at the Closing Date, the Registration Statement and any amendments thereto conformed and will conform in all material respects to the requirements of the Securities Act and did not and 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 not misleading; and the Prospectus and any amendments or supplements thereto, at the time the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(g)           Capitalization.  The authorized capitalization of the Company is as set forth in the SEC Reports and in the Prospectus.  No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents.  Except as described in the SEC Reports and pursuant to the Company’s stock plans, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional Common Stock or Common Stock Equivalents.  The issuance and sale of the Shares will not obligate the Company to issue Common Stock or other securities to any Person (other than the Purchaser) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all applicable federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.  No further

 

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approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Shares.  There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

(h)           SEC Reports; Financial Statements.  The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.  As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Exchange Act, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject to the disqualification provisions set forth in Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.  Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(i)            Material Changes; Undisclosed Events, Liabilities or Developments.  Since the date of the latest audited financial statements included within the SEC Reports, except as disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except (1) pursuant to existing Company stock plans, (2) shares purchased by a director in the Company’s underwritten public offering on January 11, 2012, (3) shares purchased by certain directors and officers in the Company’s registered direct offering on

 

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July 27, 2012, and (4) except to the extent any officer, director or Affiliate may purchase shares of common stock in this offering.  The Company does not have pending before the Commission any request for confidential treatment of information.  Except for the issuance of the Shares contemplated by this Agreement, no event, liability, or development has occurred or exists with respect to the Company or its Subsidiaries or their respective business, properties, operations or financial condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been disclosed in the Registration Statement and the Prospectus.

 

(j)            Litigation.  There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) could adversely affect or challenge the legality, validity or enforceability of any of the Transaction Documents or the Shares or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect.  There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or, to the Company’s knowledge, any current director or officer of the Company.  The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

(k)           Labor Relations.  No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect.  None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good.  To the knowledge of the Company, no executive officer is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters.  The Company and its Subsidiaries are in compliance with all applicable U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(l)            Compliance.  Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any

 

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Subsidiary under), nor has the Company or any Subsidiary received notice that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or governmental body or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business, except in each case as would not have or reasonably be expected to result in a Material Adverse Effect.

 

(m)          Regulatory Permits.  The Company and its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could not or would not reasonably be expected to, individually or in the aggregate, result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit, except for such revocation or modification as would not have or reasonably be expected to result in a Material Adverse Effect.

 

(n)           Title to Assets.  Except as described in the SEC Reports, the Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens created under license or collaboration agreements relating to the Company’s products or Intellectual Property Rights and Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties.  Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance, except where such non-compliance would not have or reasonably be expected to result in a Material Adverse Effect.

 

(o)           Patents and Trademarks.  The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights necessary or material for use in connection with their respective businesses as described in the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).  Neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years from the date of this Agreement.  Neither the Company nor any Subsidiary has received, since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or

 

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infringe upon the rights of any Person, except as would not have a Material Adverse Effect.  To the knowledge of the Company, all such Intellectual Property Rights are enforceable.

 

(p)           Insurance.  The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged.  Neither the Company nor any Subsidiary has been notified that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have or reasonably be expected to result in a Material Adverse Effect.

 

(q)           Transactions With Affiliates and Employees.  Except as set forth in the SEC Reports or with respect to the purchase of Shares in this offering, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, that would be required to be disclosed in the Registration Statement or the Prospectus and is not so disclosed.

 

(r)            Sarbanes-Oxley; Internal Accounting Controls.  The Company is in material compliance with any and all requirements of the Sarbanes-Oxley Act of 2002 that are applicable to the Company and effective as of the date hereof, and any and all rules and regulations promulgated by the Commission thereunder that are applicable to the Company and effective as of the date hereof and as of the Closing Date. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to provide reasonable assurance that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.

 

(s)            Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as

 

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amended.  The Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration under the Investment Company Act of 1940, as amended.

 

(t)            Listing and Maintenance Requirements.  The Common Stock is registered pursuant to Section 12(b) of the Exchange Act, and the Company has taken no action designed to, or which is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration.  The Company has not in the 12 months preceding the date hereof received notice from NASDAQ to the effect that the Company is not in compliance with the listing or maintenance requirements of NASDAQ, and the Company is in material compliance with all such listing and maintenance requirements.

 

(u)           Disclosure.  Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided the Purchaser or its agents or counsel with any information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the Registration Statement.   The Company understands and confirms that the Purchaser will rely on the foregoing representation in effecting transactions in securities of the Company.  The Company acknowledges and agrees that Purchaser makes or has made no representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

(v)           Tax Status.  Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary has filed all necessary United States federal and state income and all foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon.  There are no unpaid taxes in any material amount claimed to be overdue by the Company by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for any such claim.

 

(w)          Foreign Corrupt Practices.  Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(x)           Accountants.  Ernst & Young LLP, who have audited certain financial statements and related schedules included or incorporated by reference in the Registration Statement and the Prospectus, is an independent registered public accounting firm as required by the Securities Act and the Public Company Accounting Oversight Board.

 

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(y)           Acknowledgement Regarding Purchaser’s Trading Activity.  Anything in this Agreement or elsewhere herein to the contrary notwithstanding (except for Sections 3.2(e) and 4.6 hereof), it is understood and acknowledged by the Company that: (i) the Purchaser has not been asked by the Company to agree, nor has the Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Shares for any specified term; (ii) past or future open market or other transactions by the Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions, before or after the Closing, may negatively impact the market price of the Company’s publicly-traded securities; (iii) the Purchaser, and counter-parties in “derivative” transactions to which the Purchaser is a party, directly or indirectly, presently may have a “short” position in the Common Stock, and (iv) the Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction.  The Company further understands and acknowledges that (y) the Purchaser may engage in hedging activities at various times during the period that the Shares are outstanding, and (z) such hedging activities (if any) could reduce the value of the existing stockholders’ equity interests in the Company at and after the time that the hedging activities are being conducted.  The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.

 

(z)           Regulation M Compliance.  Neither the Company, nor any of the Company’s officers, directors or Affiliates has taken or will take, directly or indirectly, any action designed or intended to stabilize or manipulate the price of any security of the Company, or which caused or resulted in, or which might in the future reasonably be expected to cause or result in, stabilization or manipulation of the price of any security of the Company or any other actions which would directly or indirectly violate Regulation M of the Exchange Act.

 

(aa)         FDA.  The studies, tests and preclinical and clinical trials conducted by or on behalf of or sponsored by the Company or in which the Company or its product candidates have participated that are described in the Registration Statement and Prospectus or the results of which are referred to in the Registration Statement or Prospectus were and, if still pending, are being conducted (and with respect to such clinical trials being conducted on behalf of the Company, are, to the Company’s knowledge, being conducted) in all material respects in accordance with medical and scientific research procedures that the Company reasonably believes are appropriate and in compliance with all applicable laws and authorizations, including, without limitation, the Federal Food, Drug and Cosmetic Act and the rules and regulations promulgated thereunder. The descriptions in the Registration Statement and Prospectus of the results of such clinical trials are accurate and fairly present the data derived from such clinical trials, and the Company has no knowledge of any studies or tests performed by or on behalf of the Company the results of which are materially inconsistent with or otherwise materially call into question the results described or referred to in the Registration Statement and Prospectus. Except to the extent disclosed in the Registration Statement and the Prospectus, the Company has not received any notices or other correspondence from the United States Food and Drug Administration (“FDA”) or any other

 

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governmental agency requiring the termination, suspension or modification of any clinical trials that are described in the Registration Statement or Prospectus or the results of which are referred to in the Registration Statement or Prospectus.

 

(bb)         Office of Foreign Assets Control.  Neither the Company nor, to the Company’s knowledge, any director, officer, agent, employee or affiliate of the Company is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(cc)         Money Laundering.  The operations of the Company are and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

(dd)         The Company and its Subsidiaries are in compliance with all foreign, federal, state and local rules, laws and regulations relating to the use, treatment, storage and disposal of hazardous or toxic substances or waste and protection of health and safety or the environment which are applicable to their businesses (“Environmental Laws”), except where the failure to comply would not, singly or in the aggregate, have a Material Adverse Effect.  There has been no storage, generation, transportation, handling, treatment, disposal, discharge, emission, or other release of any kind of toxic or other wastes or other hazardous substances by, due to, or caused by the Company or any of its Subsidiaries (or, to the Company’s knowledge, any other entity for whose acts or omissions the Company or any of its Subsidiaries is or may otherwise be liable) upon any of the property now or previously owned or leased by the Company or any of its Subsidiaries, or upon any other property, in violation of any law, statute, ordinance, rule, regulation, order, judgment, decree or permit or which would, under any law, statute, ordinance, rule (including rule of common law), regulation, order, judgment, decree or permit, give rise to any liability, except for any violation or liability which would not, singly or in the aggregate with all such violations and liabilities, have a Material Adverse Effect; and there has been no disposal, discharge, emission or other release of any kind onto such property or into the environment surrounding such property of any toxic or other wastes or other hazardous substances with respect to which the Company has knowledge, except for any such disposal, discharge, emission, or other release of any kind which would not, singly or in the aggregate with all such discharges and other releases, have a Material Adverse Effect.  In the ordinary course of business, the Company and its subsidiaries conduct periodic reviews of the effect of Environmental Laws on their businesses and assets, in the course of which they identify and evaluate associated costs and liabilities (including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws, any related constraints on operating activities and any potential liabilities to third parties).  On the basis of such reviews, the Company and its

 

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subsidiaries have reasonably concluded that such associated costs and liabilities would not have, singly or in the aggregate, a Material Adverse Effect.

 

3.2          Representations and Warranties of the Purchaser.  The Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

(a)           Organization; Authority.  The Purchaser is either an individual or an entity duly organized, validly existing and in good standing (where such concept is recognized) under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and performance by the Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of the Purchaser.  Each Transaction Document to which it is a party has been duly executed by or on behalf of the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, assuming due authorization, execution and delivery by the Company thereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law or public policy.

 

(b)           No Conflicts.  The execution, delivery and performance by the Purchaser of the Transaction Documents and the consummation by it of the transactions contemplated hereby and thereby to which it is a party do not and will not (i) conflict with or violate any provision of the Purchaser’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Purchaser, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Purchaser debt or otherwise) or other understanding to which the Purchaser is a party or by which any property or asset of the Purchaser is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Purchaser is subject (including federal and state securities laws and regulations), or by which any property or asset of the Purchaser is bound or affected except in the case of each of clauses (ii) and (iii), such as would not reasonably be expected to have a material adverse effect on the Purchaser’s ability to perform in any material respect its obligations under any Transaction Documents.

 

(c)           Certain Transactions and Confidentiality.  Other than consummating the transactions contemplated hereunder, the Purchaser has not, nor has any Person acting on

 

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behalf of or pursuant to any understanding with the Purchaser, directly or indirectly executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that the Purchaser first became aware of the transactions contemplated hereunder and ending immediately following the issuance of the initial press release described in Section 4.2 below.  Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of the Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of the Purchaser’s assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Shares covered by this Agreement.  Other than to other Persons party to this Agreement and to representatives of the Purchaser, the Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to the identification of the availability of, or securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future.

 

(d)           Prospectus.  The Purchaser represents that it has received or can obtain on the Commission’s EDGAR filing system at www.sec.gov the Prospectus, which is part of the Registration Statement.

 

The Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect the Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties contained in any other Transaction Document.

 

ARTICLE IV.
 OTHER AGREEMENTS OF THE PARTIES

 

4.1          Integration.  The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares for purposes of the rules and regulations of NASDAQ such that it would require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.2          Securities Laws Disclosure; Publicity.  The Company shall, by 9:30 a.m. (New York City time) on the Trading Day immediately following the date hereof, issue a press release disclosing the material terms of the transactions contemplated hereby. From and after the issuance of such press release, the Company shall have publicly disclosed all material, non-public information delivered to the Purchaser by the Company or any of its subsidiaries, or any of its respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents.  The Company shall as soon as practicable, but in any event within four Business Days following the date hereof, file a Report on Form 8-K disclosing the material terms of the transactions contemplated hereby, which Form 8-K shall

 

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include this Agreement and any other material Transaction Documents as exhibits thereto.  The Company shall not publicly disclose the name of the Purchaser, or include the name of the Purchaser in any filing with the Commission or any regulatory agency or NASDAQ, without the prior written consent of the Purchaser, except (a) as required by federal securities law in connection with the filing of final Transaction Documents (including signature pages thereto) with the Commission and (b) to the extent such disclosure is required by law or NASDAQ regulations, in each case the Company shall provide the Purchaser with prior notice of such disclosure.

 

4.3          Non-Public Information.  Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf will provide the Purchaser or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto the Purchaser shall have executed a written agreement with the Company regarding the confidentiality and use of such information.  The Company understands and confirms that the Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

4.4          Use of Proceeds.  The Company shall use the net proceeds from the sale of the Shares hereunder substantially as set forth in the Prospectus Supplement.

 

4.5          Indemnification of Purchaser.   Subject to the provisions of this Section 4.5, the Company will indemnify and hold the Purchaser and its directors, trustees, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls the Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur due to a claim by a third party as a result of or relating to any action instituted against the Purchaser in any capacity, or its Affiliates, by any stockholder of the Company who is not an Affiliate of the Purchaser, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a material breach of the Purchaser’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings the Purchaser may have with any such stockholder or any material violations by the Purchaser of state or federal securities laws or any conduct by the Purchaser which constitutes fraud, gross negligence, or willful misconduct).  If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party.  Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii)

 

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the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel for all Purchaser Parties entitled to indemnification hereunder.  The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s material breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The Company will have the exclusive right to settle any claim or proceeding, provided that the Company will not settle any such claim, action or proceeding without the prior written consent of the Purchaser Party, which will not be unreasonably withheld or delayed; provided, however, that such consent shall not be required if the settlement includes a full and unconditional release satisfactory to the Purchaser Party from all liability arising or that may arise out of such claim or proceeding and does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any Purchaser Party and is only comprised of a cash settlement.

 

4.6          Certain Transactions and Confidentiality. The Purchaser covenants that it will not execute any purchases or sales, including Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced (or should have been announced as so provided) pursuant to the initial press release as described in Section 4.2 in violation of securities laws.  The Purchaser covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.2, the Purchaser will maintain the confidentiality of the existence and terms of this transaction.  Notwithstanding the foregoing and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) the Purchaser makes no representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.2 (or should have been announced as so provided), (ii) the Purchaser shall not be restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.2 and (iii) the Purchaser shall not have any duty of confidentiality to the Company or its Subsidiaries after the earlier of (x) issuance of the initial press release as described in Section 4.2 and (y) 9:30 a.m. (New York City time) on the Trading Day immediately following the date hereof.  Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of the Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of the Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Shares covered by this Agreement.

 

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ARTICLE V.
 MISCELLANEOUS

 

5.1          Fees and Expenses.  Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.  The Company shall pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Shares to the Purchaser.

 

5.2          Entire Agreement.  The Transaction Documents contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters.

 

5.3          Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile or email at the facsimile number or email address set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or email at the facsimile number or email address set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as set forth on the signature pages attached hereto.

 

5.4          Headings.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

5.5          Successors and Assigns.  This Agreement has been and is made for the benefit of the Purchaser, the Company and their respective successors and assigns.  The term “successors and assigns” shall not include any purchaser of Shares from the Purchaser merely because of such purchase.

 

5.6          No Third-Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.5.

 

5.7          Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof.  Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the State of Delaware. Each party hereby irrevocably

 

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submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Delaware for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or 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.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

5.8          Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

5.9          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 commercially 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.

 

5.10        Remedies.  In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Purchaser and the Company will be entitled to specific performance under the Transaction Documents.  The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

 

5.11        Independent Nature of Purchaser’s Obligations and Rights.  The Purchaser acknowledges that the Company is also entering into common stock purchase agreements in form and substance identical to this Agreement with other purchasers contemporaneously herewith.  The obligations of the Purchaser under any Transaction Document are several and not joint with the obligations of any other such purchaser of the Company’s securities, and the Purchaser shall not be responsible in any way for the performance or non-performance of the

 

21

 

obligations of any other such purchaser of the Company’s securities under any other document.  Nothing contained herein or in any Transaction Document, and no action taken by the Purchaser pursuant thereto, shall be deemed to constitute a partnership, an association, a joint venture or any other kind of entity with any other such purchaser, or create a presumption that the Purchaser and any other such purchaser are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents and any other documents.  The Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other purchaser to be joined as an additional party in any proceeding for such purpose.  The Purchaser has been represented by its own separate legal counsel in its review and negotiation of the Transaction Documents.

 

5.12        Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

 

5.13        Construction. The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto.

 

5.14        WAIVER OF JURY TRIAL.  IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

(Signature Pages Follow)

 

22

 

IN WITNESS WHEREOF, the parties hereto have caused this Common Stock Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

 

	
SYNTA   PHARMACEUTICALS CORP.
    	
 
    	
Address   for Notice:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
 
    	
 
    	
Synta   Pharmaceuticals Corp. 
    
	
 
    	
Name:   
    	
 
    	
545   Hartwell Avenue 
    
	
 
    	
Title:   
    	
 
    	
Lexington,   MA 20421 
    
	
 
    	
 
    	
 
    	
Attn:   
    	
Wendy   E. Rieder, Esq. 
    
	
 
    	
 
    	
 
    	
 
    	
General   Counsel 
    
	
 
    	
 
    	
 
    	
Fax: 781-240-1066 
    
	
 
    	
 
    	
 
    	
Email:   wrieder@syntapharma.com
    
	
With a copy to (which shall not constitute   notice):
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Mintz, Levin, Cohn, Ferris, 

Glovsky and Popeo, P.C.  

One Financial Center  

Boston, MA 02111  

Attn: Brian P. Keane  

Fax: 617-542-2241  

Email: bkeane@mintz.com
    

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

23

 

[PURCHASER SIGNATURE PAGE TO SYNTA COMMON STOCK PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF, the undersigned have caused this Common Stock Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
Name   of Purchaser:
    	
 
    
	
 
    	
 
    
	
Signature   of Authorized Signatory of Purchaser:
    	
 
    
	
 
    	
 
    
	
Name   of Authorized Signatory:
    	
 
    
	
 
    	
 
    
	
Title   of Authorized Signatory:
    	
 
    
	
 
    	
 
    
	
Email   Address of Authorized Signatory:
    	
 
    
	
 
    	
 
    
	
Facsimile   Number of Authorized Signatory:
    	
 
    
								

 

Address of Purchaser:

 

 

Address or DWAC Instructions for Delivery of Shares for Purchaser:

 

 

	
Subscription   Amount: $
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
 
    
					

 

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