Document:

SECURED CREDITOR ASSET PURCHASE AGREEMENT

PRIVATE UCC SALE

 

This SECURED CREDITOR ASSET PURCHASE AGREEMENT
PRIVATE UCC SALE (the “Agreement”) is hereby entered into on July 2, 2013 (the “Effective
Date”), by and between SILICON VALLEY BANK, a California state-chartered bank (“Seller”),
pursuant to C.R.S. § 9-617 for itself and for and on behalf of SOUTHWEST WINDPOWER, INC., a Delaware corporation (“Borrower”),
with an address of 3003 Tasman Drive, Santa Clara, California 95054, and XZERES CORP, a Nevada corporation (the “Purchaser”),
with principal offices located at 9025 SW Hillman Ct., Suite 3126, Wilsonville, Oregon 97070.

RECITALS

 

Borrower and Seller are
parties to that certain Second Amended and Restated Loan and Security Agreement dated January 31, 2011, as amended and modified,
evidencing a revolving line of credit extended by Seller to Borrower and that certain Loan and Security Agreement (EXIM Loan Facility)
dated January 31, 2011 evidencing a loan from Seller to Borrower in the maximum principal amount of $3,000,000, amended and modified
(collectively, the “Loan and Security Agreements”). The Loan and Security Agreements together with all other
documents, instruments and writings that relate to the Loan and Security Agreements are collectively referred to herein as the
“Loan Documents.”

 

As security for the Loan
Documents, Borrower granted to Seller a security interest in all or substantially all of Borrower’s assets, and proceeds
thereof, (the “Collateral”).

 

Seller’s security
interest in the Collateral is perfected by the following, among other things: (1) a UCC-1 Financing Statement filed on February
25, 2005 against Borrower under Initial Filing No. 50615766 in the Office of the Delaware Department of State, as amended by a
filing in the same office on September 15, 2009 at Amendment Filing No. 2009 2953237; (2) a UCC-1 Financing Statement filed on
February 7, 2011 against Borrower under Initial Filing No. 2011 0439656 in the Office of the Delaware Department of State; and
(3) Assignments filed with the U.S. Patent and Trademark Office for Patent No. 5746576 on May 2, 2005 at Reel/Frame No. 016513/0193,
for Trademark Serial No. 78979165 on January 12, 2010 at Reel/Frame No. 4129/0861, for Patent No. 7420288 on January 12, 2010 at
Reel/Frame No. 023758/0759, for Patent No. 8018081 on January 12, 2010 at Reel/Frame No. 023758/0759, for Patent No. 7573146 on
January 12, 2010 at Reel/Frame No. 023758/0759, and for Patent No. 6703718 on May 2, 2005 at Reel/Frame No. 016513/0193.

 

Borrower is in default
of its obligations under the Loan Documents for failure to make payments under the Loan Documents according to their terms, among
other defaults, and Seller has exercised its secured creditor rights.

 

On May 23, 2013, Seller
gave notice of private sale in accordance with C.R.S. § 4-9-610 to all persons required to be notified under C.R.S. §
4-9-610 and, as a result of which, Seller is authorized pursuant to C.R.S. § 4-9-617 to
transfer Borrower’s right, title and interest in the Collateral.

 

Seller desires to sell
to Purchaser, and Purchaser desires to purchase from Seller, certain of the Collateral, on the terms and conditions set forth in
this Agreement.

     

	 

    	 

    

AGREEMENT

 

NOW, THEREFORE, in consideration
of the above Recitals and the mutual covenants hereinafter set forth, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Purchaser and Seller hereby agree as follows:

 

Purchase and Sale of
Transferred Assets; Excluded Assets.

 

Seller agrees that on the
Closing Date (as defined below), it shall sell to Purchaser, and Purchaser agrees to purchase from Seller, through a private sale
under § 9-610 of the Uniform Commercial Code, all of Borrower’s right, title and interest in and to the assets described
on Exhibit A attached hereto (collectively, the “Transferred Assets”). Purchaser acknowledges that certain of
the Transferred Assets, such as permits and licenses, if any, may not permit transfer by their terms without the consent of the
counter-party thereto.

 

Excluded Assets. The
following assets are excluded from this private sale transaction (collectively, the “Excluded Assets”):

 

Cash and cash equivalents;

 

Investment property, consisting
of the equity interests in the German subsidiary, the China Sub, Deerpath Energy and Sunwind Solutions;

 

Title to any leased equipment owned
by third parties;

 

Rights of Seller under this Agreement;
and

 

Any asset Purchaser elects to abandon
(after Purchaser provides Seller with written notice of such abandonment which notice must be delivered
in writing within 30 days of the Closing Date with respect to the assets at the Flagstaff Premises as contemplated in the Access
Agreement and, with respect to all other assets abandoned, within 10 business days of the election to abandon).

 

Purchase Price.
As consideration for the sale, transfer, and conveyance of the Transferred Assets by Seller, Purchaser agrees to pay and deliver
$654,321.00 U.S. Dollars in immediately available funds to Seller at Closing (the “Purchase Price”) for all
of the Transferred Assets. The sale will be free and clear of all security interests and liens of Seller, and all security interests
and liens subordinate to those of Seller, as and to the extent provided in Section 9-617 of the Uniform Commercial Code.

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Obligations Assumed.

 

Liabilities.
Purchaser agrees, upon consummation of, and effective as of, the Closing, to assume those (and only those) liabilities of Seller
and of Borrower expressly listed below in this Section 3.a. (collectively, the “Assumed Liabilities”):

 

Costs, expenses and liabilities
arising from or attributable to the assumption, ownership and operation of the Transferred Assets (but only to the extent Purchaser
has taken possession, custody and control, and not abandoned in accordance with this Agreement,
of such Transferred Assets) arising after the Closing and not to the extent attributed to any period prior to the closing (except
with respect to the obligations specified in Section 3.a.(iii) and (iv) below);

 

Any applicable transfer tax as more
fully described Section 11 below and in the Bill of Sale;

 

At Purchaser’s sole option,
any charges, including outstanding freight and demurrage charges, associated with one or all of the containers located outside
of the United States, it being acknowledged and agreed by Seller that Purchaser, at its option, may abandon any and all assets
located in such containers; and

 

At Purchaser’s sole option,
any charges associated with obtaining possession of the assets located in the Tempe Warehouse, it being acknowledged and agreed
by Seller that Purchaser, at its option, may abandon any and all such assets.

 

Liabilities and Obligations
Not Assumed. Except as expressly set forth in Section 3.a. above, Purchaser does not and shall not be deemed to assume
or become obligated in any way to pay any liabilities, debts or obligations of Seller or of Borrower whatsoever, including but
not limited to any liabilities or obligations, whether accrued, absolute, matured, contingent or otherwise, now or hereafter arising
from Borrower’s business activities that took place prior to the Closing or any liabilities arising at any time out of or
connected to the liquidation and winding down of Borrower’s business, including without limitation,
the cost of removing or otherwise disposing of abandoned assets at any location, including the Flagstaff premises, provided however
that Purchaser expressly acknowledges that Seller has not agreed and is not obligated to remove any assets abandoned by Purchaser
in accordance with this Agreement except as otherwise provided in the Access Agreement with respect solely to the Flagstaff premises.
All liabilities, debts and obligations of Seller and of Borrower not expressly assumed by Purchaser hereunder are hereinafter referred
to as the “Excluded Liabilities.”

 

No Obligations to Third
Parties. The execution and delivery of this Agreement shall not be deemed to confer any rights upon any person or entity
other than the parties hereto, or make any person or entity a third party beneficiary of this Agreement, or to obligate either
party to any person or entity other than the parties to this Agreement. Assumption by Purchaser of any liabilities or obligations
of Seller or of Borrower under Section 3.a. above shall in no way expand the rights or remedies of third parties against Purchaser
as compared to the rights and remedies such parties would have against Seller or Borrower if the Closing were not consummated.

 

Closing. Subject to
satisfaction of the conditions precedent set forth in Sections 5 and 6 below, the closing of the sale (the “Closing”)
will be held on or before July 2, 2013. The date on which the Closing is consummated is referred to herein as the “Closing
Date.”

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Seller’s Conditions
Precedent. Seller’s obligations to consummate the Closing shall be conditioned upon the satisfaction or waiver of the
following:

 

The representations, warranties,
and covenants of Purchaser made herein shall have been true when made and at all times after the date when made, to and including
the Closing Date, with the same force and effect as if made on and as of each such times, including the Closing Date.

 

As of the Closing Date, the
sale of the Transferred Assets by Seller or any of the transactions contemplated hereby are not prohibited by any stay or injunction
in any litigation, governmental action, or other proceeding, including, without limitation, the “automatic stay” under
11 U.S.C. § 362 in any pending case under Title 11 of the United States Code by or against Borrower.

 

Purchaser shall have paid
and delivered the Purchase Price.

 

Purchaser shall have executed
and delivered to Seller Purchaser’s counterparts of (1) an Assignment and Bill of Sale Agreement, (2) a Patent Assignment
Agreement, and (3) a Trademark Assignment Agreement, with respect to the Transferred Assets and Assumed Liabilities and each in
form and substance acceptable to the parties.

 

On the Closing Date, the private sale
transaction shall not be stayed or subject to other injunction.

 

Purchaser’s Conditions
Precedent. Purchaser’s obligations to consummate the Closing shall be conditioned upon the satisfaction or waiver of
the following:

 

The representations, warranties,
and covenants of Seller made herein shall have been true when made and at all times after the date when made, to and including
the Closing Date, with the same force and effect as if made on and as of each such time, including the Closing Date.

 

As of the Closing Date, the
sale of the Transferred Assets by Seller or any of the transactions contemplated hereby are not prohibited by any stay or injunction
in any litigation, governmental action, or other proceeding, including, without limitation, the “automatic stay” under
11 U.S.C. § 362 in any pending case under Title 11 of the United States Code by or against Borrower. No litigation shall
have been filed that would prevent closing or subject Purchaser to a claim for damages as a result of the transactions contemplated
hereby.

 

Seller shall have executed
and delivered to Purchaser Seller’s counterparts of (1) an Assignment and Bill of Sale Agreement, (2) a Patent Assignment
Agreement, (3) a Trademark Assignment Agreement, (4) an Access Agreement with LOCI 66, LLC, Northern Arizona Properties, LLC and
PHD Equities, LLC (the “Arizona Landlord”), (4) UCC-3 Partial Releases from SVB and (5) UCC-3 Partial Releases and
releases of the security assignments recorded with the United States Patent and Trademark Office and the [Copyright Office] by
each of (i) Altira Technology Fund V L.P. and (ii) Rockport Capital Partners II, L.P., with respect to the Transferred Assets and
Assumed Liabilities and each in form and substance acceptable to the Parties.

 

On the Closing Date, the
private sale transaction shall not be stayed or subject to other injunction.

 

Borrower has acknowledged
and agreed that as a result of the defaults and events of defaults under the Loan Documents, which have occurred and are continuing,
Seller has the right under the Loan Documents and the Uniform Commercial Code to sell the Transferred Assets free and clear of
all liens, claims and encumbrances without offset, defense or counterclaim of any kind or nature and has delivered peaceful possession
of all of the Transferred Assets to Seller.

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Seller
acknowledges that substantially all of the intellectual property used by, licensed to and/or belonging to Borrower is recorded
in machine readable form utilizing one or more commonly available formats on a computer hard drive that is in the possession of
a third party service provider.  Seller represents that, as a condition to Closing, Seller shall cause the third party service
provider, at Seller’s sole cost and expense, to bring the computer containing such hard drive to the Closing to permit downloading
of all of such intellectual property at the Closing onto media owned by Purchaser; and after all such intellectual property has
been downloaded without being corrupted and confirmed by Purchaser that it is in a readable format, Seller shall direct the third
party service provider to erase all such data wherever contained on the hard drive before returning the computer to one of Borrower’s
former officers.  Such third party service provider shall provide Seller with a certificate that all data previously contained
on the computer has been completely erased and or obliterated and that such data can no longer be replicated, in whole or in any
part from the computer’s hard drive, a copy of which certificate Seller shall deliver at the Closing to Purchaser. Seller
acknowledges that, as of the Closing Date, the downloading of all such intellectual property may not have been completed, and Seller
hereby undertakes and agrees to ensure that the third party service provider, at Seller’s sole cost and expense, shall continue
to make the computer containing such intellectual property available to Purchaser until such downloading has been completed. 
In addition, Seller hereby further undertakes and agrees, at Seller’s sole cost and expense, to
ensure that Borrower, or any other party in possession of Borrower’s financial books and records, delivers to the third party
service provider, in an electronic and machine readable form, all of Borrower’s financial books and records for the period
commencing as of July 1, 2011 through the date hereof, and cause the third party service provider to permit Purchaser to download
such financial information in a readable format, without corruption until such time as the download is completed. Seller
agrees that this undertaking shall survive Closing. With respect to the foregoing, Purchaser shall use its bests efforts to cooperate
in obtaining such information. The parties acknowledge and agree that the intellectual property and financial data transferred
to Purchaser as part of the Transferred Assets may include information not related to the Transferred Assets and the transaction
contemplated herein, including, but not limited to, information regarding business lines of Borrower previously sold, and Purchaser
hereby agrees to keep such information confidential or where possible promptly destroy such information. Seller and Purchaser agree
that this undertaking will survive Closing.

 

Closing Obligations.
At Closing, Purchaser will deliver to Seller (a) the Purchase Price via wire transfer and (b) Purchaser’s executed counterparts
of the documents set forth in Section 5.d. Seller will deliver to Purchaser Seller’s executed counterparts of the documents
set forth in Section 6.c. The parties hereto further agree to execute and deliver to the other party any other documentation reasonably
required or requested by the other party to effectuate the intent of the parties to this Agreement, including documentation required
by the United States or foreign patent offices (and otherwise consistent with Article 9 of the Uniform Commercial Code) necessary
to implement a proper chain of title in their assignment and ownership records. Following the Closing, Purchaser will have the
right to immediate possession of the Transferred Assets.

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Representations and
Warranties of Seller. Except as expressly set forth in writing in this Agreement, the Transferred Assets are being sold “AS
IS” and “WHERE IS” with no representations or warranties of any kind, express or implied, oral or written, with
respect to the physical condition, location, accessibility, faults or value of the Transferred Assets. Except as expressly set
forth in writing in this Agreement, there is no warranty relating to possession, quiet enjoyment or the like in this disposition.
Seller hereby expressly disclaims any and all warranties, express or implied, relating to the Transferred Assets, including without
limitation, the warranty of merchantability and fitness for a particular purchase or any other fact or matter not expressly set
forth herein. Upon the Closing, Purchaser shall assume all responsibility, shipping costs, storage costs, liability and obligation
for the physical condition and status of the Transferred Assets, to the extent Purchaser takes possession, custody and/or control
of the Transferred Assets. Seller makes no express or implied warranties, representations or endorsements whatsoever, including,
without limitation, warranties of merchantability, non-infringement or fitness for a particular purpose with regard to the Transferred
Assets, and Seller hereby expressly disclaims any such warranties to the maximum extent permitted by applicable law. Seller makes
no representation or warranty and shall have no liability whatsoever on behalf of Seller or any third parties with regard to the
operation, performance, nonperformance, quality, availability, completeness, accuracy or security any of the Transferred Assets
or the delay, error, or interruption of the flow of information in connection with use of any of the foregoing. Seller has not
undertaken any independent investigation (nor does Seller intend to do so) and Seller disclaims any liability as a result of or
obligation to do so, to determine if there is any pending, threatened or potential inquiry, claim, investigation, litigation, proceeding
or decree by any federal, state or local authority, or administrative agency, or any private party against or relating to the Transferred
Assets, or if the Transferred Assets infringe any third party’s intellectual property rights. Purchaser is sophisticated
with respect to the Transferred Assets, and in fact, has conducted its own due diligence with respect to the Transferred Assets,
and is entering into this transaction at arm’s length and in good faith Notwithstanding the foregoing, Seller represents
and warrants to Purchaser, as follows:

 

Seller (i) is a corporation
duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation; (ii) has all requisite
corporate power and authority to execute, deliver, and perform the transactions contemplated hereby; and (iii) is duly qualified
or authorized to conduct business and is in good standing as a foreign corporation in any jurisdictions for which such qualification
or authorization is required of Seller in order to consummate the transactions contemplated hereby.

 

The execution, delivery,
and performance by Seller of this Agreement and the consummation of the transaction contemplated hereby are within the power of
Seller and have been duly authorized by all necessary actions on the part of Seller. The execution of this Agreement by Seller
constitutes, or will constitute, a legal valid and binding obligation of Seller, enforceable against Seller in accordance with
its terms, except as limited by bankruptcy, insolvency, or other laws of general application relating to or affecting the enforcement
of creditors’ rights generally and general principles of equity.

 

No consent, approval authorization
or order of, or registration or filing with, or notice to, any court or governmental agency or body having jurisdiction or regulatory
authority over Seller (or any of its properties) is required for (i) Seller’s execution and delivery of this Agreement (and
each agreement executed and delivered by it in connection herewith) or (ii) the consummation by Seller of the transactions contemplated
by this Agreement (and each agreement executed and delivered by it in connection herewith) or, to the extent so required, such
consent, approval, authorization, order, registration, filing or notice has been obtained, made or given (as applicable) and is
still in full force and effect.

 

Borrower is in default of
its obligations under the Loan Documents and other obligations owing to Seller and Seller has validly exercised its rights under
the Loan Documents and applicable law in foreclosing on the Collateral and Transferred Assets. Seller has a valid and perfected
first priority security interest in the Collateral and Transferred Assets; provided, however, Seller makes no warranty regarding
its security interest, if any, in any causes of action of Borrower.

 

Seller placed Notices of
Private Sale Under Uniform Commercial Code, in the form previously provided to Purchaser in the United States Mail, first class,
postage prepaid, addressed to those persons on the mailing list attached to said Notices on May 23, 2013, which are all persons
required to be notified and has otherwise complied with all applicable legal requirements to conduct and consummate the private
sale transaction.

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Representations and Warranties
of Purchaser. Purchaser represents and warrants to Seller, as follows:

 

Purchaser (i) is a duly organized
limited liability company, validly existing, and in good standing under the laws of the State of Nevada; and (ii) has all requisite
power and authority to execute, deliver, and perform the transactions contemplated hereby.

 

The execution, delivery,
and performance by Purchaser of this Agreement and the consummation of the transaction contemplated hereby are within the power
of Purchaser and have been duly authorized by all necessary actions on the part of Purchaser. The execution of this Agreement by
Purchaser constitutes, or will constitute, a legal valid and binding obligation of Purchaser, enforceable against Purchaser in
accordance with its terms, except as limited by bankruptcy, insolvency, or other laws of general application relating to or affecting
the enforcement of creditors’ right generally and general principles of equity.

 

No consent, approval, authorization
or order of, or registration or filing with, or notice to, any court or governmental agency or body having jurisdiction or regulatory
authority over Purchaser (or any of its properties) is required for (i) Purchaser’s execution and delivery of this Agreement
(and each agreement executed and delivered by it in connection herewith) or (ii) the consummation by Purchaser of the transactions
contemplated by this Agreement (and each agreement executed and delivered by it in connection herewith) or, to the extent so required,
such consent, approval, authorization, order, registration, filing or notice has been obtained, made or given (as applicable) and
is still in full force and effect.

 

No person or entity acting
on behalf of Purchaser or any of its affiliates or under the authority of any of them is or will be entitled to any brokers or
“finders” fee or any other commission or similar fee, directly or indirectly, from Purchaser or any of its affiliates
in connection with any of the transactions contemplated hereby.

 

Expenses. Except
as provided in the next sentence or as otherwise provided in this Agreement, Purchaser and Seller shall each bear their own expenses
incurred in connection with the transactions contemplated by this Agreement. Notwithstanding the foregoing, if either party breaches
this Agreement, the breaching party shall be responsible for the costs and expenses, including reasonable attorneys’ fees,
incurred by the other party in enforcing this Agreement against such breaching party by the non-breaching party.

 

Transfer Taxes.
Purchaser shall pay all sales, use, excise, stamp, documentary, filing, recording, transfer or similar fees or taxes or governmental
charges, if any, as levied by any taxing authority or governmental agency as a result of the transfer of Transferred Assets contemplated
by this Agreement. Purchaser hereby agrees to file all necessary documents with respect to such amounts in a timely manner.

 

Post-Closing Access
to Borrower Books and Records. Following the Closing and for a period of 18 months thereafter, Purchaser agrees to provide
Borrower with reasonable access during normal business hours to all of Borrower’s books and records included in the Transferred
Assets, if any, as Borrower may reasonably request and at Borrower’s cost and expense.

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Survival; Indemnity.

 

The representations of Seller
and Purchaser herein shall survive Closing. Purchaser hereby agrees to indemnify, defend and hold Seller harmless from and against,
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, proceedings, costs, expenses and disbursements
of any kind or nature whatsoever (including, without limitation, all reasonable costs and expenses of attorneys) which may be imposed
on, incurred by, or asserted against Seller in any way relating to or arising out of, or alleged to relate or arise out of, any
breach by Purchaser of any covenant made herein, or the inaccuracy or untruth of any representation or warranty of Purchaser made
herein, or the use or ownership of the Transferred Assets after the Closing Date.

 

Seller hereby agrees to indemnify,
defend and hold Purchaser harmless from and against, any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, proceedings, costs, expenses and disbursements of any kind or nature whatsoever (including, without limitation,
all reasonable costs and expenses of attorneys) which may be imposed on, incurred by, or asserted against Purchaser in any way
relating to or arising out of, or alleged to relate or arise out of, any breach by Seller of any covenant made herein, or the inaccuracy
or untruth of any representation or warranty of Seller made herein.

 

Notices. Any notice
or other communication provided for herein or given hereunder to a party hereto shall be in writing, and shall be deemed given
when personally delivered to a party set forth below or when sent by telecopy providing a transmission confirmation (provided that
such notice is immediately sent by a recognized overnight delivery service), or three (3) days after mailed by first class mail,
registered, or certified, return receipt requested, postage prepaid, or when delivered by nationally-recognized overnight delivery
service, with proof of delivery, delivery charges prepaid, in any case addressed as follows.

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 If to Seller:
	Silicon Valley Bank
	380 Interlocken Crescent Suite 600
	Broomfield, CO  80021
	Telephone:  303-410-3518
	Facsimile:  303-469-9028
	Email: bmiller@svb.com
	Attention: Brad Miller
	 
	With copy to:
	Bieging Shapiro & Barber LLP
	4582 S. Ulster St. Pkwy., Suite 1650
	Denver, CO 80237
	Telephone: 720-488-0220
	Facsimile: 720-488-7711
	Email: dbarber@bsblawyers.com 
	Attention: Duncan E. Barber, Esq
	 
	If to Purchaser:
	Xzeres Corp.
	9025 SW Hillman Ct., Suite 3126
	Wilsonville, Oregon 97070
	Telephone: 503-388-7350
	Facsimile: 
	Email: SShum@xzeres.com
	Attention: Steve Shum
	 
	With copy to:
	Renewable Power Resources, LLC
	430 East 56th Street, 4G
	New York, NY 10022
	Telephone:  212-757-1800
	Facsimile:   212-208-2922
	Email: reid@contplants.com
	Attention: Mr. Reid Krakower
	 
	With a copy to:
	Otterbourg, Steindler, Houston & Rosen, P.C.
	230 Park Avenue
	New York, NY  10169
	Telephone:  212-905-3630
	Facsimile: 212-682-6104
	Email: akramer@oshr.com
	Attention: Andrew M. Kramer

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Miscellaneous.

 

Entire Agreement.
This Agreement, together with the schedules and exhibits attached hereto, constitutes the entire agreement of the parties hereto
regarding the purchase and sale of the Transferred Assets, and all prior agreements, understandings, representations and statements,
oral or written, are superseded hereby.

 

Captions. Section
captions used in this Agreement are for convenience only, and do not affect the construction of this Agreement.

 

Counterpart Execution.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall together
constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement by facsimile
transmission shall be effective as delivery of a manually executed counterpart thereof and shall be deemed an original signature
for all purposes.

 

Severability. If any
provision of this Agreement shall for any reason be held to be invalid or unenforceable, such invalidity or unenforceability shall
not affect any other provision of this Agreement, but this Agreement shall be construed as if such invalid or unenforceable provision
had never been contained in this Agreement.

 

Further Assurances.
At any time or from time to time after the Closing, without further consideration, either party shall, at the request of the other
party, execute and deliver such further instruments and documents as the other party may reasonably request as may be reasonably
necessary to evidence or effect the consummation of the transactions contemplated by this Agreement.

 

Amendments and Waivers.
No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by Purchaser and
Seller. No waiver by any party hereto of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional
or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder
or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

 

Governing Law. This
Agreement shall be governed by and interpreted in accordance with the internal laws of the State of Colorado (without reference
to conflicts of law principles).

 

Waiver of Trial by Jury.
SELLER AND PURCHASER HEREBY EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, CAUSE OF ACTION, OR PROCEEDING
ARISING UNDER OR WITH RESPECT TO THIS AGREEMENT, OR IN ANY WAY CONNECTED WITH, OR RELATED TO, OR INCIDENTAL TO, THE DEALINGS OF
THE PARTIES HERETO WITH RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING
OR HEREAFTER ARISING, AND IRRESPECTIVE OF WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE. SELLER AND PURCHASER HEREBY AGREE THAT
ANY SUCH CLAIM, DEMAND, ACTION, CAUSE OF ACTION, OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY AND THAT ANY PARTY
HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE OTHER
PARTY OR PARTIES HERETO TO WAIVER OF ITS OR THEIR RIGHT TO TRIAL BY JURY.

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Submission to Jurisdiction;
Selection of Forum. EACH PARTY HERETO (A) AGREES THAT IT SHALL BRING ANY ACTION OR PROCEEDING IN RESPECT OF ANY CLAIM
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTAINED IN OR CONTEMPLATED BY THIS AGREEMENT, WHETHER IN TORT
OR CONTRACT OR AT LAW OR IN EQUITY, EXCLUSIVELY IN (I) THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO OR IN
THE EVENT THAT SUCH COURT LACKS SUBJECT MATTER JURISDICTION OVER THE ACTION OR PROCEEDING, (II) IN AN APPROPRIATE STATE COURT
LOCATED IN DENVER COUNTY, COLORADO (SUCH COURT IS HEREAFTER REFERRED TO AS THE “CHOSEN COURT”) AND (B) IRREVOCABLY
SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE CHOSEN COURT, (C) WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION
TO LAYING VENUE IN ANY SUCH ACTION OR PROCEEDING IN THE CHOSEN COURT, (D) WAIVES ANY ARGUMENT THAT THE CHOSEN COURT IS AN
INCONVENIENT FORUM OR DOES NOT HAVE JURISDICTION OVER ANY PARTY THERETO, AND (E) AGREES THAT SERVICE OR PROCESS UPON ANY PARTY
IN ANY SUCH ACTION OR PROCEEDING SHALL BE EFFECTIVE IF NOTICE IS GIVEN IN ACCORDANCE WITH SECTION 13 OF THIS AGREEMENT.

 

Construction. The
parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.
Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations
promulgated thereunder, unless the context requires otherwise. The word “including” shall mean “including without
limitation”.

 

No Third-Party Beneficiaries.
This Agreement shall not confer any rights or remedies upon any person or entity other than the parties hereto and their respective
successors and permitted assigns.

 

Successor and Assigns.
This Agreement shall be binding upon and inure to the benefit of the parties named herein and their respective successors and permitted
assigns. Neither party may assign its rights or interests hereunder without providing the other party with prior written notice;
provided, however, that Purchaser shall be entitled to assign its rights under this agreement to an entity wholly-owned by it.
Neither party may delegate all or any of its obligations or duties hereunder, without the prior written consent of the other party.

 

Fees and Expenses.
Seller and Purchaser shall each bear their own expenses, including but not limited to legal fees, incident to the negotiation and
preparation of this Agreement and the consummation of the transactions contemplated hereby.

 

Confidentiality. Purchaser
and Seller agree that they will hold in confidence all information, data and documents obtained by them or any of their representatives
from any representative, officer or employee of each other, and that none of them nor any of their representatives will disclose
any such information, data or documents to any third party and none of them will discuss this Agreement or the transactions contemplated
hereby with any party other than officers, employees, agents and representatives of the party or their legal counsel and financing
sources deemed necessary to the completion of the transactions described herein.

 

Survival. The parties’
representations, warranties and obligations contained in this Agreement shall survive the Closing.

    	11

    	 

    

IN WITNESS WHEREOF, Purchaser
and Seller have caused this Agreement to be executed as of the day and year first above written.

	SELLER:
	SILICON VALLEY BANK, a California State Chartered Bank
	Pursuant to C.R.S. § 9-617
	For itself and for and on behalf of Southwest Windpower, Inc., a Delaware corporation
	By:
    /s/ Shelia Colson
	Name: Sheila Colson
	 
	PURCHASER:
	Its:  Managing Director
	XZERES CORP.,
	a Nevada corporation
	By:
    /s/ Steve Shum
	Name: Steve Shum
	Its: CFO

    	12

    	 

    

EXHIBIT A

TRANSFERRED ASSETS

All goods and equipment,
including without limitation, all machinery, fixtures, vehicles (including motor vehicles and trailers), spare
parts, prototypes, fixtures, furnishings, computers and other tangible personal property, including all software, manuals, maintenance,
engineering records, any warranties, guaranties, permits or licenses relating thereto and other tangible personal property (including
all software and engineering files necessary to manufacture the Skystream 3.7) located in the following known locations:

 

(i) Broomfield, Co;

(ii) Tempe, AZ (warehouse);

(iii) Flagstaff, AZ (manufacturing facility
and 3 storage locations);

(iv) Germany (office); and

(v) Phoenix, AZ (warehouse);

 

All inventory, including,
without limitation, all merchandise, raw materials, parts, supplies, packing and shipping materials, work in progress and finished
products, including the assets in the containers located in Antwerp and Germany;

 

All General intangibles
(as defined in the Uniform Commercial Code) including, without limitation, goodwill, trademarks, service marks, trade styles, trade
names, patents, patent applications, leases, license agreement, franchise agreements, royalty agreements,
permits, licenses, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, computer programs,
computer discs, computer tapes, literature, reports, vendor lists, billing records, customer and supplier correspondence, catalogs,
design rights, domain names and email addresses including any information stored on computers or other hard drives in the possession,
custody and control of Borrower’s management (both present and former);

 

All patents (issued, pending
and any patent applications), trademarks, service marks, trade names and logos, copyright rights, copyright applications, copyright
registrations and like protections in each work of authorship and derivative work thereof, including without limitation, all E-Books,
videos and white papers, graphics, artwork, whether published or unpublished; all trade secret rights, including all rights to
unpatented inventions, know how, improvements, unregistered designs, drawings, prototypes, models, discoveries technology, research
and development, operating manuals, license rights and agreements and confidential information; all mask work or similar rights
available for protection of semiconductor chips, including any information stored on computers or other hard drives in the possession,
custody and control of Borrower’s management (both present and former);

 

All Accounts (as defined
in the Uniform Commercial Code), including accounts receivable and other sums owing to Borrower;

 

To the extent Seller has
a security interest therein, all causes of action, rights of action and remedies arising out of or relating to any of the foregoing
including, any right to enforce any restrictive covenant against any person or entity; and

 

Copies
of all financial books, records and data for the 2 year period commencing as of July 1, 2011.

    	13ex_10.htm

Exhibit 10.1

AMENDMENT NO. 2 TO CREDIT AGREEMENT

THIS AMENDMENT NO. 2 TO CREDIT AGREEMENT dated as of July 5, 2013 (this “Amendment”), is among AMERICAN APPAREL (USA), LLC, a California limited liability company (“AA USA”), AMERICAN APPAREL RETAIL, INC., a California corporation (“AA Retail”), AMERICAN APPAREL DYEING & FINISHING, INC., a California corporation (“AA Dyeing & Finishing”), KCL KNITTING, LLC, a California limited liability company (“KCL” and, together with AA USA, AA Retail and AA Dyeing & Finishing, collectively, the “Borrowers” and each, individually, a “Borrower”), AMERICAN APPAREL, INC., a Delaware corporation (“Holdings”), FRESH AIR FREIGHT, INC., a California corporation (“Fresh Air” and, together with Holdings, collectively, the “Guarantors” and each, individually, a “Guarantor”), CAPITAL ONE LEVERAGE FINANCE CORP., as administrative agent (in such capacity, the “Administrative Agent”), and each of the Lenders party hereto.

 

RECITALS:

A.         The Borrowers, the other borrowers from time to time party thereto, the Guarantors, the other guarantors from time to time party thereto, the lenders from time to time party thereto (collectively, “Lenders”) and the Administrative Agent have entered into that certain Credit Agreement dated as of April 4, 2013 (as amended by that certain Amendment No. 1 to Credit Agreement dated as of May 22, 2013, the “Credit Agreement”).  Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement.

 

B.         The Guarantors have entered into that certain Guaranty dated as of April 4, 2013, in favor of the Administrative Agent.

 

C.         The Borrowers have requested that the Administrative Agent and Lenders amend certain provisions of the Credit Agreement.

 

D.         Subject to the terms and conditions set forth below, the Administrative Agent and Lenders party hereto are willing to so amend the Credit Agreement.

 

In furtherance of the foregoing, the parties agree as follows:

 

Section 1.         AMENDMENTS.  Subject to the covenants, terms and conditions set forth herein and in reliance upon the representations and warranties set forth herein, the Credit Agreement is amended as follows:

(a)        The existing definitions in Section 1.01 of the Credit Agreement for the terms “Appraiser,” “Business Day,” “Required Lenders” and “Swing Line Sublimit” are deleted in their entirety and the following new definitions for such terms are added in lieu thereof:

“Appraiser” means an appraisal firm reasonably acceptable to the Administrative Agent.

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the state where the Administrative Agent’s Office is located and, if such day relates to the calculation of the Eurodollar Rate, means any such day that is a London Banking Day; provided that, for purposes of the definition of “Defaulting Lender,” Section 2.01 and Section 2.02 only, “Business

  

  

  

Day” shall exclude any other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, Canada.

“Required Lenders” means, as of any date of determinations, two or more Lenders holding more than 66 2/3% of the sum of the (a) Total Outstandings (with the aggregate amount of each Revolving Credit Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “held” by such Lender for purposes of this definition) and (b) aggregate unused Commitments; provided that (i) the unused Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders; and (ii) if there are only two (2) Lenders, “Required Lenders” shall mean both Lenders, and if there is only one (1) Lender, “Required Lenders” shall mean such Lender.  Additionally, solely for this definition, a Lender and its Affiliates shall collectively constitute one (1) Lender.

“Swing Line Sublimit” means $7,500,000.

(b)        The existing Section 8.03 of the Credit Agreement is amended by deleting clause (vii) in its entirety and inserting the following in lieu thereof:

 

(vii)         Seventh, to payment of that portion of the Obligations constituting unpaid principal on the Swing Line Loan and unpaid L/C Borrowings, ratably among the holders thereof in proportion to the respective amounts described in this clause Seventh held by them;

(c)         The existing Section 9.03 of the Credit Agreement is amended by deleting the last sentence of the second paragraph thereof in its entirety and inserting the following in lieu thereof:

The Administrative Agent shall promptly notify the Lenders or each other Lender, as the case may be, upon obtaining actual knowledge of the existence of a Default or Event of Default; provided that the Administrative Agent shall not be deemed to have knowledge of any Default or Event of Default unless and until notice describing such Default or Event of Default is given to the Administrative Agent in writing by a Credit Party, a Lender or the L/C Issuer.  The Administrative Agent shall hold all security for itself and for and on behalf of the Secured Parties, in accordance with this Agreement and the other Loan Documents.  The Administrative Agent shall provide copies of all Security Documents requested by any Lender and follow the instructions of the Required Lenders with respect to perfecting and maintaining the security granted to the Administrative Agent under this Agreement or Security Documents, provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose it to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law.

(d)         The existing Schedule 2.01 to the Credit Agreement is deleted in its entirety and Schedule 2.01 attached hereto is inserted in lieu thereof.  For the avoidance of doubt, the revised Schedule 2.01 includes the increase in the Commitments pursuant to Section 2.21 of the Credit Agreement and that certain Revolving Credit Facility Increase Request dated as of July 3, 2013.  As of the Amendment Effective Date, Borrowers have fully utilized the increase option under Section 2.21 of the Credit Agreement, and the Revolving Credit Facility may not be further increased pursuant to such Section.

(d)         The existing Schedule 6.20 to the Credit Agreement is deleted in its entirety and Schedule 6.20 attached hereto is inserted in lieu thereof.

  

2

  

The amendments to the Credit Agreement are limited to the extent specifically set forth above and no other terms, covenants or provisions of the Credit Agreement are intended to be affected hereby.

Section 2.         CONDITIONS PRECEDENT.  The parties hereto agree that the amendments set forth in Section 1 above shall not be effective until the satisfaction of each of the following conditions precedent (the date on which such conditions precedent are satisfied or waived, the “Amendment Effective Date”):

(a)         Documentation.  The Administrative Agent shall have received (i) a counterpart of this Amendment, duly executed and delivered by each Borrower, each Guarantor and each Lender, and (ii) such other documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of each Credit Party, the authorization of this Amendment and any other legal matters relating to the Credit Parties or the transactions contemplated hereby.

(b)         Revolving Credit Facility Increase and Assignment.  (i) The Revolving Credit Facility shall have been increased in accordance with Section 2.21(e) of the Credit Agreement such that, as of the Amendment Effective Date, the Commitments are $50,000,000, and the Administrative Agent shall have received each document or certificate required pursuant to Section 2.21(e) of the Credit Agreement; and (ii) the Administrative Agent shall have received an Assignment and Assumption Agreement, duly executed by Bank of Montreal, Chicago Branch and the Borrower Agent.

(c)         Fees and Expenses. All fees and expenses of counsel to the Administrative Agent estimated to date shall have been paid in full (without prejudice to final settling of accounts for such fees and expenses), in each case to the extent invoiced.

Section 3.         REPRESENTATIONS AND WARRANTIES.

(a)         In order to induce the Administrative Agent and Lenders to enter into this Amendment, each Credit Party represents and warrants to the Administrative Agent and Lenders as follows:

(i)           The representations and warranties made by such Credit Party contained in Article V of the Credit Agreement are true and correct in all material respects (but without any duplication of any materiality qualifications) on and as of the date hereof, except to the extent that such representations and warranties expressly relate to an earlier date in which case such representations and warranties are true and correct in all material respects (but without any duplication of any materiality qualifications) on and as of such earlier date.

(ii)           Since the Balance Sheet Date, no act, event, condition or circumstance has occurred or arisen which, individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect.

(iii)           No Default or Event of Default has occurred and is continuing or will exist after giving effect to this Amendment.

(b)         In order to induce the Administrative Agent and Lenders to enter into this Amendment, each Credit Party represents and warrants to the Administrative Agent and Lenders that this Amendment has been duly authorized, executed and delivered by such Credit Party and constitutes its legal, valid and binding obligation.

  

3

  

Section 4.         MISCELLANEOUS

(a)         Ratification and Confirmation of Loan Documents.  Each Credit Party hereby consents, acknowledges and agrees to the amendments set forth herein and hereby confirms and ratifies in all respects the Loan Documents to which such Person is a party (including, without limitation, with respect to each Guarantor, the continuation of its payment and performance obligations under the Guaranty upon and after the effectiveness of the amendments contemplated hereby and, with respect to each Credit Party, the continuation and existence of the liens granted under the Security Documents to secure the Obligations).

(b)         Fees and Expenses.  The Borrowers, jointly and severally, shall promptly pay on demand (and, in any event, within 10 Business Days after demand therefor) all reasonable costs and expenses of the Administrative Agent in connection with the preparation, reproduction, execution, and delivery of this Amendment and any other documents prepared in connection herewith, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent.

(c)         Headings.  Section and subsection headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose or be given any substantive effect.

(d)         Governing Law; Waiver of Jury Trial.  This Amendment shall be governed by and construed in accordance with the laws of the State of New York, and shall be further subject to the provisions of Section 10.14 of the Credit Agreement.

(e)         Counterparts.  This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and all of which when taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or electronic transmission (including .pdf file) shall be effective as delivery of a manually executed counterpart hereof.

(f)          Entire Agreement.  This Amendment, together with all the Loan Documents (collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relating to such subject matter.  No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied on any such promise, condition, representation or warranty.  Each of the parties hereto acknowledges that, except as otherwise expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to the other.  None of the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise except in a writing signed by the parties hereto for such purpose.

(g)          Enforceability.  Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable as to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto.

(h)          Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of each Borrower, each Guarantor, the Administrative Agent, each Lender and their respective successors and assigns (subject to Section 10.06 of the Credit Agreement).

[Remainder of page intentionally left blank; signatures begin on following page]

  

4

  

The following parties have caused this Amendment No. 2 to Credit Agreement to be executed as of the date first written above.

	  	
BORROWERS:

	  	  
	  	
AMERICAN APPAREL (USA), LLC

	  	  
	  	  
	  	
By:

	 	
 /s/ John Luttrell

	  	  	 	
Name:

	 	
John Luttrell

	  	  	 	
Title:

	 	
Chief Financial Officer

	  	  
	  	  
	  	
AMERICAN APPAREL RETAIL, INC.

	  	  
	  	  
	  	
By:

	 	
 /s/ John Luttrell

	  	  	 	
Name:

	 	
John Luttrell

	  	  	 	
Title:

	 	
Chief Financial Officer

	  	  
	  	  
	  	
AMERICAN APPAREL DYEING & FINISHING, INC.

	  	  
	  	  
	  	
By:

	 	
 /s/ John Luttrell

	  	  	 	
Name:

	 	
John Luttrell

	  	  	 	
Title:

	 	
Chief Financial Officer

	  	  
	  	  
	  	
KCL KNITTING, LLC

	  	  
	  	  
	  	
By:

	 	
 /s/ John Luttrell

	  	  	 	
Name:

	 	
John Luttrell

	  	  	 	
Title:

	 	
Chief Financial Officer

 

 

AMENDMENT NO. 2 TO CREDIT AGREEMENT 

Signature Page

  

  

  

	  	
GUARANTORS:

	  	  
	  	
AMERICAN APPAREL, INC.

	  	  
	  	  
	  	
By:

	 	
 /s/ John Luttrell

	  	  	 	
Name:

	 	
John Luttrell

	  	  	 	
Title:

	 	
Chief Financial Officer

	  	  
	  	  
	  	
FRESH AIR FREIGHT, INC.

	  	  
	  	  
	  	
By:

	 	
 /s/ John Luttrell

	  	  	 	
Name:

	 	
John Luttrell

	  	  	 	
Title:

	 	
Chief Financial Officer

 

 

 

AMENDMENT NO. 2 TO CREDIT AGREEMENT 

Signature Page

  

  

  

	  	
ADMINISTRATIVE AGENT AND LENDERS:

	  	  
	  	
CAPITAL ONE LEVERAGE FINANCE CORP.,

	  	
as Administrative Agent and Lender

	  	  
	  	  	 	  
	  	
By:

	 	
 /s/ Julianne Low

	  	  	 	
Name:

	 	
Julianne Low

	  	  	 	
Title:

	 	
Vice President

AMENDMENT NO. 2 TO CREDIT AGREEMENT 

Signature Page

  

  

  

	  	
BANK OF MONTREAL, CHICAGO BRANCH,

	  	
as Lender

	  	  
	  	  
	  	
By:

	 	
/s/ Larry Allan Swiniarski

	  	  	 	
Name:

	 	
Larry Allan Swiniarski

	  	  	 	
Title:

	 	
Director, Bank of Montreal, Chicago Branch

AMENDMENT NO. 2 TO CREDIT AGREEMENT 

Signature Page

  

  

  

SCHEDULE 2.01

 

Commitments and Applicable Percentages

	
Lender

	  	
Commitment

	  	
Applicable

Percentage

	
Capital One Leverage Finance Corp.

	  	
$

	
35,000,000.00

	  	
70.000000000%

	
Bank of Montreal, Chicago Branch

	  	
$

	
15,000,000.00

	  	
30.000000000%

	
Total

	  	
$

	
50,000,000.00

	  	
100.000000000%

  

  

  

SCHEDULE 6.20

 

Post Closing Obligations

The Credit Parties shall deliver, or cause to be delivered, to the Administrative Agent as soon as possible, but in any event within the time periods set forth below (or such longer period as the Administrative Agent may otherwise agree), in each case, in form and substance reasonably satisfactory to the Administrative Agent:

Within 90 days after the Closing Date:

1.         A duly executed Agency Account Agreement among the applicable Credit Parties, the Administrative Agent, U.S. Bank National Association, as Senior Notes Trustee, and HSBC Bank USA, National Association, as depositary bank, with respect to the Credit Parties’ deposit accounts maintained at HSBC Bank USA, National Association required to be subject to an Agency Account Agreement pursuant to the terms of Section 6.17 of the Credit Agreement.

2.         A duly executed Agency Account Agreement among the applicable Credit Parties, the Administrative Agent, U.S. Bank National Association, as Senior Notes Trustee, and U.S. Bank National Association, as depositary bank, with respect to the Credit Parties’ deposit accounts maintained at U.S. Bank National Association required to be subject to an Agency Account Agreement pursuant to the terms of Section 6.17 of the Credit Agreement.

3.         Evidence satisfactory to the Administrative Agent that the Lien in favor of Bank of America, N.A. on the Permitted Bank of America Cash Collateral has been terminated.

4.         Evidence satisfactory to the Administrative Agent that the Lien in favor of Crystal Financial LLC on the Permitted Crystal Cash Collateral has been terminated.

Within 120 days after the Closing Date:

5.         A copy of all commercial property, liability and trade credit insurance policies, a certificate of insurance with respect thereto and an endorsement from an independent insurance broker naming the Administrative Agent as lender’s loss payee or additional insured, as applicable, thereunder, which shall be in amounts, types and terms and conditions reasonably satisfactory to the Administrative Agent.

6.         A duly executed Collateral Assignment of Lease between AA USA and Utica Leaseco, LLC pursuant to which AA USA assigns all of its interests in that certain Equipment Lease Agreement dated November 13, 2012 between AA USA, as lessee, and Utica Leaseco, LLC, as lessor, to the Administrative Agent.

7.         A duly executed Agency Account Agreement among the applicable Credit Parties, the Administrative Agent, U.S. Bank National Association, as Senior Notes Trustee, and Bank of America, N.A., as depositary bank, with respect to the Credit Parties’ deposit accounts maintained at Bank of America, N.A. required to be subject to an Agency Account Agreement pursuant to the terms of Section 6.17 of the Credit Agreement.

  

  

  

No later than December 31, 2013:

8.         Evidence satisfactory to the Administrative Agent that all of the Credit Parties’ deposit accounts maintained at U.S. Bank National Association as of the Closing Date have been closed; provided that, at all times after July 5, 2013, the Credit Parties’ operating account number 153499249377 and payroll account number 153492249492 shall be the only deposit accounts maintained by the Credit Parties at U.S. Bank National Association until December 31, 2013 (or such longer period as the Administrative Agent may otherwise agree.

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