Document:

Exhibit 10.1

 Exhibit 10.1 
 Execution Version 
 REGISTRATION RIGHTS AGREEMENT 

BY AND AMONG 
 TEEKAY OFFSHORE PARTNERS L.P. 
 AND 

THE INVESTORS NAMED ON SCHEDULE A HERETO 

  

 TABLE OF CONTENTS 

 

							
	 ARTICLE I DEFINITIONS
	  			
			
	 Section 1.01
	  	Definitions	  	 	1	  
	 Section 1.02
	  	Registrable Securities	  	 	3	  
		
	 ARTICLE II REGISTRATION RIGHTS
	  			
			
	 Section 2.01
	  	Registration	  	 	3	  
	 Section 2.02
	  	Piggyback Rights	  	 	4	  
	 Section 2.03
	  	Delay Rights	  	 	6	  
	 Section 2.04
	  	Underwritten Offerings	  	 	7	  
	 Section 2.05
	  	Sale Procedures	  	 	8	  
	 Section 2.06
	  	Cooperation by Holders	  	 	11	  
	 Section 2.07
	  	Restrictions on Public Sale by Holders of Registrable Securities	  	 	11	  
	 Section 2.08
	  	Expenses	  	 	11	  
	 Section 2.09
	  	Indemnification	  	 	12	  
	 Section 2.10
	  	Rule 144 Reporting	  	 	14	  
	 Section 2.11
	  	Transfer or Assignment of Registration Rights	  	 	15	  
	 Section 2.12
	  	Limitation on Subsequent Registration Rights	  	 	15	  
		
	 ARTICLE III MISCELLANEOUS
	  			
			
	 Section 3.01
	  	Communications	  	 	15	  
	 Section 3.02
	  	Successor and Assigns	  	 	16	  
	 Section 3.03
	  	Assignment of Rights	  	 	16	  
	 Section 3.04
	  	Recapitalization, Exchanges, Etc. Affecting the Units	  	 	16	  
	 Section 3.05
	  	Aggregation of Registrable Securities	  	 	16	  
	 Section 3.06
	  	Specific Performance	  	 	16	  
	 Section 3.07
	  	Counterparts	  	 	17	  
	 Section 3.08
	  	Headings	  	 	17	  
	 Section 3.09
	  	Governing Law	  	 	17	  
	 Section 3.10
	  	Severability of Provisions	  	 	17	  
	 Section 3.11
	  	Entire Agreement	  	 	17	  
	 Section 3.12
	  	Amendment	  	 	17	  
	 Section 3.13
	  	No Presumption	  	 	17	  
	 Section 3.14
	  	Obligations Limited to Parties to Agreement	  	 	17	  
	 Section 3.15
	  	Interpretation	  	 	18	  
		
	Schedule A – Investor List; Notice and Contact Information; Opt-Out	  			

  

 REGISTRATION RIGHTS AGREEMENT 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of November 25, 2011, by and
among Teekay Offshore Partners L.P., a Marshall Islands limited partnership (the “Partnership”), and each of the Persons set forth on Schedule A to this Agreement (each, an “Investor” and collectively, the
“Investors”). 
 WHEREAS, this Agreement is made in connection with the entry into the Common Unit Purchase
Agreement, dated as of November 9, 2011, by and among the Partnership and the Investors (the “Common Unit Purchase Agreement”); and 
 WHEREAS, the Partnership has agreed to provide the registration and other rights set forth in this Agreement for the benefit of the Investors pursuant to the Common Unit Purchase Agreement. 

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by each party hereto, the parties hereby agree as follows: 
 ARTICLE
I 
 DEFINITIONS 
 Section 1.01 Definitions. Capitalized terms used herein without definition shall have the meanings given to them in the Common Unit Purchase Agreement. The terms set forth below are used
herein as so defined: 
 “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause
the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
 “Agreement” has the meaning specified therefor in the introductory paragraph of this Agreement. 
 “Commission” means the U.S. Securities and Exchange Commission. 

“Common Unit Purchase Agreement” has the meaning specified therefor in the recitals of this Agreement. 

“Effectiveness Period” has the meaning specified therefor in Section 2.01(a) of this Agreement. 

“General Partner” means Teekay Offshore GP L.L.C., a Marshall Islands limited liability company. 

“Holder” means the record holder of any Registrable Securities. 

  
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 “Included Registrable Securities” has the meaning specified therefor in
Section 2.02(a) of this Agreement. 
 “Investor” and “Investors” have the meanings
specified therefor in the introductory paragraph of this Agreement. 
 “Liquidated Damages” has the meaning
specified therefor in Section 2.01(b) of this Agreement. 
 “Liquidated Damages Multiplier” means
the product of the Common Unit Price times the number of Purchased Units purchased by such Investor and that may not be disposed of without restriction pursuant to any section of Rule 144 (or any similar provision then in effect) under the
Securities Act. 
 “Losses” has the meaning specified therefor in Section 2.09(a) of this
Agreement. 
 “Managing Underwriter” means, with respect to any Underwritten Offering, the book-running lead
manager of such Underwritten Offering. 
 “Opt-Out Notice” has the meaning specified therefor in
Section 2.02(a) of this Agreement. 
 “Parity Securities” has the meaning specified therefor in
Section 2.02(b) of this Agreement. 
 “Partnership” has the meaning specified therefor in the
introductory paragraph of this Agreement. 
 “Person” means an individual or a corporation, limited liability
company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity. 
 “Registrable Securities” means (i) the Common Units to be acquired by the Investors pursuant to the Common Unit Purchase Agreement and (ii) any Common Units issued as
Liquidated Damages pursuant to Section 2.01(b) of this Agreement. 
 “Registration Expenses”
has the meaning specified therefor in Section 2.08(b) of this Agreement. 
 “Registration
Statement” has the meaning specified therefor in Section 2.01(a) of this Agreement. 
 “Selling
Expenses” has the meaning specified therefor in Section 2.08(b) of this Agreement. 
 “Selling
Holder” means a Holder who is selling Registrable Securities pursuant to a registration statement. 

  
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 “Selling Holder Indemnified Persons” has the meaning specified therefor in
Section 2.09(a) of this Agreement. 
 “Underwritten Offering” means an offering (including an
offering pursuant to a Registration Statement) in which Common Units are sold to an underwriter on a firm commitment basis for reoffering to the public or an offering that is a “bought deal” with one or more investment banks. 

Section 1.02 Registrable Securities. Any Registrable Security will cease to be a Registrable Security (a) when a
registration statement covering such Registrable Security becomes or has been declared effective by the Commission and such Registrable Security has been sold or disposed of pursuant to such effective registration statement; (b) when such
Registrable Security has been disposed of pursuant to any section of Rule 144 (or any similar provision then in effect) under the Securities Act; (c) when such Registrable Security is held by the Partnership or one of its subsidiaries or
Affiliates; (d) when such Registrable Security has been sold or disposed of in a private transaction in which the transferor’s rights under this Agreement are not assigned to the transferee of such securities pursuant to
Section 2.11 hereof or (e) one year after the Closing Date. 
 ARTICLE II 

REGISTRATION RIGHTS 
 Section 2.01 Registration. 
 (a) Effectiveness Deadline.
Following the date hereof, but no later than 30 days following the Closing Date, the Partnership shall prepare and file a registration statement (the “Registration Statement”) under the Securities Act with respect to all of the
Registrable Securities. The Registration Statement filed pursuant to this Section 2.01(a) shall be on such appropriate registration form of the Commission as shall be selected by the Partnership. The Partnership shall use its
commercially reasonable efforts to cause the Registration Statement to become effective on or as soon as practicable after the Closing Date. Any Registration Statement shall provide for the resale pursuant to any method or combination of methods
legally available to, and reasonably requested by, the Holders of any and all Registrable Securities covered by such Registration Statement. The Partnership shall use its commercially reasonable efforts to cause the Registration Statement filed
pursuant to this Section 2.01(a) to be effective, supplemented and amended to the extent necessary to ensure that it is available for the resale of all Registrable Securities by the Holders until all Registrable Securities covered by
such Registration Statement have ceased to be Registrable Securities (the “Effectiveness Period”). The Registration Statement when effective (including the documents incorporated therein by reference) will comply as to form in all
material respects with all applicable requirements of the Securities Act and the Exchange Act and will, when it becomes effective, not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading (in the case of any prospectus contained in such Registration Statement, in the light of the circumstances under which a statement is made). As soon as practicable following the date that the
Registration Statement becomes effective, but in any event within two (2) Business Days of such date, the Partnership shall provide the Holders with written notice of the effectiveness of the Registration Statement. 

  
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 (b) Failure to Go Effective. If the Registration Statement required by
Section 2.01(a) is not declared effective within 90 days after the Closing Date, then each Holder shall be entitled to a payment (with respect to the Purchased Units of each such Holder), as liquidated damages and not as a penalty, of
0.25% of the Liquidated Damages Multiplier per 30-day period, that shall accrue daily, for the first 60 days following the 90th day after the Closing Date, increasing by an additional 0.25% of the Liquidated Damages Multiplier per 30-day period
following the 60th date after such 90th day, that shall accrue daily, for each subsequent 30 days, up to a maximum of 1.00% of the Liquidated Damages Multiplier per 30-day period (the “Liquidated Damages”); provided, however,
that the aggregate amount of Liquidated Damages payable by the Partnership per Purchased Unit may not exceed 5.0% of the Common Unit Price. The Liquidated Damages payable pursuant to the immediately preceding sentence shall be payable within ten
(10) Business Days after the end of each such 30-day period. Any Liquidated Damages shall be paid to each Holder in immediately available funds; provided, however, if the Partnership certifies that it is unable to pay Liquidated
Damages in cash because such payment would result in a breach under a credit facility or other debt instrument, then the Partnership may pay the Liquidated Damages in kind in the form of the issuance of additional Common Units. Upon any issuance of
Common Units as Liquidated Damages, the Partnership shall promptly (i) prepare and file an amendment to the Registration Statement prior to its effectiveness adding such Common Units to such Registration Statement as additional Registrable
Securities and (ii) prepare and file a supplemental listing application with the NYSE to list such additional Common Units. The determination of the number of Common Units to be issued as Liquidated Damages shall be equal to the amount of
Liquidated Damages divided by the volume-weighted average closing price of the Common Units on the NYSE for the ten (10) trading days immediately preceding the date on which the Liquidated Damages payment is due, less a discount to such average
closing price of 2.00%. The payment of Liquidated Damages to a Holder shall cease at the earlier of (i) the Registration Statement becoming effective or (ii) the Purchased Units of such Holder becoming eligible for resale without
restriction under any section of Rule 144 (or any similar provision then in effect) under the Securities Act, assuming that each Holder is not an Affiliate of the Partnership, and any payment of Liquidated Damages shall be prorated for any period of
less than 30 days in which the payment of Liquidated Damages ceases. If the Partnership is unable to cause a Registration Statement to go effective within 180 days after the Closing Date as a result of an acquisition, merger, reorganization,
disposition or other similar transaction, then the Partnership may request a waiver of the Liquidated Damages, and each Holder may individually grant or withhold its consent to such request in its discretion. The foregoing Liquidated Damages shall
be the sole and exclusive remedy of the Holders for any failure of the Registration Statement to be declared effective. 

Section 2.02 Piggyback Rights 
 (a) Participation. In the event the Registrable Securities may not be disposed of without restriction pursuant to any section of Rule 144 (or any similar provision then in effect) under the
Securities Act, if the Partnership proposes to file (i) a prospectus supplement to an effective shelf registration statement, other than the Registration Statement contemplated by Section 2.01(a) of this Agreement and Holders may be
included without the filing of a post-effective amendment thereto, or (ii) a registration statement, other than a shelf registration statement, in each case, for the sale of Common Units in an Underwritten Offering for its own account and/or
another Person, then as soon as practicable following the engagement of counsel 

  
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by the Partnership to prepare the documents to be used in connection with an Underwritten Offering, the Partnership shall give notice (which may include, without limitation, notification by
electronic mail) of such proposed Underwritten Offering to each Holder that, together with its Affiliates, holds in the aggregate at least $10.0 million of the then-outstanding Registrable Securities (based on the Common Unit Price) and such notice
shall offer such Holders the opportunity to include in such Underwritten Offering such number of Registrable Securities (the “Included Registrable Securities”) as each such Holder may request in writing; provided, however,
that (i) the Partnership shall not be required to provide such opportunity to any such Holder that does not offer a minimum of $10.0 million of Registrable Securities (based on the Common Unit Price), or (ii) if the Partnership has been
advised by the Managing Underwriter that the inclusion of Registrable Securities for sale for the benefit of the Holders will have an adverse effect on the price, timing or distribution of the Common Units in the Underwritten Offering, then
(A) the Partnership shall not be required to offer such opportunity to the Holders or (B) if any Registrable Securities can be included in the Underwritten Offering in the opinion of the Managing Underwriter, then the amount of Registrable
Securities to be offered for the accounts of Holders shall be determined based on the provisions of Section 2.02(b). Any notice required to be provided in this Section 2.02(a) to Holders shall be provided on a Business Day
pursuant to Section 3.01 hereof. Each such Holder described in the proviso of the immediately preceding sentence shall then have two (2) Business Days (or one (1) Business Day in connection with any overnight or bought
Underwritten Offering) after notice has been delivered to request in writing the inclusion of Registrable Securities in the Underwritten Offering. If no written request for inclusion from such a Holder is received within the specified time, each
such Holder shall have no further right to participate in such Underwritten Offering. If, at any time after giving written notice of its intention to undertake an Underwritten Offering and prior to the closing of such Underwritten Offering, the
Partnership shall determine for any reason not to undertake or to delay such Underwritten Offering, the Partnership may, at its election, give written notice of such determination to the Selling Holders and, (x) in the case of a determination
not to undertake such Underwritten Offering, shall be relieved of its obligation to include any Included Registrable Securities in connection with such terminated Underwritten Offering, and (y) in the case of a determination to delay such
Underwritten Offering, shall be permitted to delay offering any Included Registrable Securities for the same period as the delay in the Underwritten Offering. Any Selling Holder shall have the right to withdraw such Selling Holder’s request for
inclusion of such Selling Holder’s Registrable Securities in such Underwritten Offering by giving written notice to the Partnership of such withdrawal at or prior to the time of pricing of such Underwritten Offering. Any Holder may deliver
written notice (an “Opt-Out Notice”) to the Partnership requesting that such Holder not receive notice from the Partnership of any proposed Underwritten Offering; provided, however, that such Holder may later revoke any such
Opt-Out Notice in writing. Following receipt of an Opt-Out Notice from a Holder (unless subsequently revoked), the Partnership shall not be required to deliver any notice to such Holder pursuant to this Section 2.02(a) and such Holder
shall no longer be entitled to participate in Underwritten Offerings by the Partnership pursuant to this Section 2.02(a). Each of the Holders on Schedule A hereto who has indicated it is delivering an Opt-Out Notice shall be
deemed to have delivered an Opt-Out Notice as of the date hereof. 
 (b) Priority. If the Managing Underwriter or
Underwriters of any proposed Underwritten Offering advise the Partnership that the total amount of Registrable Securities that the Selling Holders and any other Persons intend to include in such offering exceeds the number

  
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that can be sold in such offering without being likely to have an adverse effect on the price, timing or distribution of the Common Units offered or the market for the Common Units, then the
Common Units to be included in such Underwritten Offering shall include the number of Registrable Securities that such Managing Underwriter or Underwriters advise the Partnership can be sold without having such adverse effect, with such number to be
allocated (i) first, to the Partnership, (ii) second, to Teekay and its Affiliates pursuant to any registration rights existing as of the date of this Agreement and (iii) third, pro rata among the Selling Holders who have requested
participation in such Underwritten Offering and any other holder of securities of the Partnership (other than Teekay and its Affiliates) having rights of registration that are neither expressly senior nor subordinated to the Registrable Securities
(the “Parity Securities”). The pro rata allocations pursuant to clause (iii) above for each Selling Holder who has requested participation in such Underwritten Offering shall be the product of (a) the aggregate number of
Registrable Securities proposed to be sold in such Underwritten Offering multiplied by (b) the fraction derived by dividing (x) the number of Registrable Securities owned on the Closing Date by such Selling Holder by (y) the aggregate
number of Registrable Securities owned on the Closing Date by all Selling Holders who have requested participation in such Underwritten Offering plus the aggregate number of Parity Securities owned on the Closing Date by all holders of Parity
Securities that are participating in the Underwritten Offering. 
 (c) Termination of Piggyback Registration Rights. Each
Holder’s rights under Section 2.02 shall terminate upon such Holder (together with its Affiliates) ceasing to hold at least $10.0 million of Registrable Securities (based on the Common Unit Price). 

Section 2.03 Delay Rights. 
 Notwithstanding anything to the contrary contained herein, the Partnership may, upon written notice to any Selling Holder whose Registrable Securities are included in the Registration Statement or other
registration statement contemplated by this Agreement, suspend such Selling Holder’s use of any prospectus which is a part of the Registration Statement or other registration statement (in which event the Selling Holder shall discontinue sales
of the Registrable Securities pursuant to the Registration Statement or other registration statement contemplated by this Agreement but may settle any previously made sales of Registrable Securities) if (i) the Partnership is pursuing an
acquisition, merger, reorganization, disposition or other similar transaction and the Partnership determines in good faith that the Partnership’s ability to pursue or consummate such a transaction would be materially adversely affected by any
required disclosure of such transaction in the Registration Statement or other registration statement or (ii) the Partnership has experienced or is undertaking some other material non-public event the disclosure of which at such time, in the
good faith judgment of the Partnership, would materially adversely affect the Partnership; provided, however, in no event shall the Selling Holders be suspended from selling Registrable Securities pursuant to the Registration Statement or
other registration statement for a period that exceeds an aggregate of 60 days in any 180-day period or 105 days in any 365-day period, in each case, exclusive of days covered by any lock-up agreement executed by a Selling Holder in connection with
any Underwritten Offering. Upon disclosure of such information or the termination of the condition described above, the Partnership shall provide prompt notice to the Selling Holders whose Registrable Securities are included in the Registration
Statement, and shall promptly terminate any suspension of sales it 

  
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has put into effect and shall take such other reasonable actions to permit registered sales of Registrable Securities as contemplated in this Agreement. 

If (i) the Selling Holders shall be prohibited from selling their Registrable Securities under the Registration Statement or other
registration statement contemplated by this Agreement as a result of a suspension pursuant to the immediately preceding paragraph in excess of the periods permitted therein or (ii) the Registration Statement or other registration statement
contemplated by this Agreement is filed and declared effective but, during the Effectiveness Period, shall thereafter cease to be effective or fail to be usable for its intended purpose without being succeeded within 60 Business Days by a
post-effective amendment thereto, a supplement to the prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or l5(d) of the Exchange Act, then, until the suspension is lifted or a post-effective amendment,
supplement or report is filed with the Commission, but not including any day on which a suspension is lifted or such amendment, supplement or report is filed and declared effective, if applicable, the Partnership shall pay the Selling Holders an
amount equal to the Liquidated Damages, following the earlier of, as applicable, (x) the date on which the suspension period exceeded the permitted period and (y) the sixty-first (61st) Business Day after the Registration Statement or
other registration statement contemplated by this Agreement ceased to be effective or failed to be useable for its intended purposes, as liquidated damages and not as a penalty (for purposes of calculation Liquidated Damages, the date in (x) or
(y) above shall be deemed the “90th day,” as used in the definition of Liquidated Damages). For purposes of this paragraph, a suspension shall be deemed lifted on the date that notice that the suspension has been terminated is
delivered to the Selling Holders. Liquidated Damages pursuant to this paragraph also shall cease upon the Purchased Units of such Holder becoming eligible for resale without restriction under any section of Rule 144 (or any similar provision then in
effect) under the Securities Act, assuming that each Holder is not an Affiliate of the Partnership, and any payment of Liquidated Damages shall be prorated for any period of less than 30 days in which the payment of Liquidated Damages ceases. The
foregoing Liquidated Damages shall be the sole and exclusive remedy of the Holders for any suspension period or of the registration statement ceasing to be effective or failing to be useable for its intended purposes as described in this
Section 2.03. 
 Section 2.04 Underwritten Offerings 

(a) General Procedures. In connection with any Underwritten Offering under this Agreement, the Partnership shall be entitled to
select the Managing Underwriter or Underwriters. In connection with an Underwritten Offering contemplated by this Agreement in which a Selling Holder participates, each Selling Holder and the Partnership shall be obligated to enter into an
underwriting agreement that contains such representations, covenants, indemnities and other rights and obligations as are customary in underwriting agreements for firm commitment offerings of securities. No Selling Holder may participate in such
Underwritten Offering unless such Selling Holder agrees to sell its Registrable Securities on the basis provided in such underwriting agreement and completes and executes all questionnaires, powers of attorney, indemnities and other documents
reasonably required under the terms of such underwriting agreement. Each Selling Holder may, at its option, require that any or all of the representations and warranties by, and the other agreements on the part of, the Partnership to and for the
benefit of such underwriters also be made to and for such Selling Holder’s benefit and that any or all of the conditions precedent to the obligations of such underwriters under such underwriting

  
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agreement also be conditions precedent to its obligations. No Selling Holder shall be required to make any representations or warranties to or agreements with the Partnership or the underwriters
other than representations, warranties or agreements regarding such Selling Holder, its authority to enter into such underwriting agreement and to sell, and its ownership of, the securities being registered on its behalf, its intended method of
distribution and any other representation required by Law or customary for such an Underwritten Offering. If any Selling Holder disapproves of the terms of an underwriting, such Selling Holder may elect to withdraw therefrom by notice to the
Partnership and the Managing Underwriter; provided, however, that such withdrawal must be made up to and including the time of pricing of such Underwritten Offering. No such withdrawal or abandonment shall affect the Partnership’s
obligation to pay Registration Expenses. The Partnership’s management may but shall not be required to participate in a roadshow or similar marketing effort in connection with any Underwritten Offering. 

(b) No Demand Rights. Notwithstanding any other provision of this Agreement, no Holder shall be entitled to any “demand”
rights or similar rights that would require the Partnership to effect an Underwritten Offering solely on behalf of the Holders. 

Section 2.05 Sale Procedures. In connection with its obligations under this Article II, the Partnership will, as
expeditiously as possible: 
 (b) prepare and file with the Commission such amendments and supplements to the Registration
Statement and the prospectus used in connection therewith as may be necessary to keep the Registration Statement effective for the Effectiveness Period and as may be necessary to comply with the provisions of the Securities Act with respect to the
disposition of all Registrable Securities covered by the Registration Statement; 
 (c) if a prospectus supplement will be used
in connection with the marketing of an Underwritten Offering from the Registration Statement and the Managing Underwriter at any time shall notify the Partnership in writing that, in the reasonable judgment of such Managing Underwriter, inclusion of
detailed information to be used in such prospectus supplement is of material importance to the success of the Underwritten Offering of such Registrable Securities, the Partnership shall use its commercially reasonable efforts to include such
information in such prospectus supplement; 
 (d) furnish to each Selling Holder (i) as far in advance as reasonably
practicable before filing the Registration Statement or any other registration statement contemplated by this Agreement or any supplement or amendment thereto, upon request, copies of reasonably complete drafts of all such documents proposed to be
filed (including exhibits and each document incorporated by reference therein to the extent then required by the rules and regulations of the Commission), and provide each such Selling Holder the opportunity to object to any information pertaining
to such Selling Holder and its plan of distribution that is contained therein and make the corrections reasonably requested by such Selling Holder with respect to such information prior to filing the Registration Statement or such other registration
statement or supplement or amendment thereto, and (ii) such number of copies of the Registration Statement or such other registration statement and the prospectus included therein and any supplements and amendments thereto as such Selling
Holder may reasonably request in order to facilitate the 

  
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public sale or other disposition of the Registrable Securities covered by such Registration Statement or other registration statement; 

(e) if applicable, use its commercially reasonable efforts to register or qualify the Registrable Securities covered by the Registration
Statement or any other registration statement contemplated by this Agreement under the securities or blue sky laws of such jurisdictions as the Selling Holders or, in the case of an Underwritten Offering, the Managing Underwriter, shall reasonably
request; provided, however, that the Partnership will not be required to qualify generally to transact business in any jurisdiction where it is not then required to so qualify or to take any action that would subject it to general service of
process in any such jurisdiction where it is not then so subject; 
 (f) promptly notify each Selling Holder, at any time when a
prospectus relating thereto is required to be delivered by any of them under the Securities Act, of (i) the filing of the Registration Statement or any other registration statement contemplated by this Agreement or any prospectus or prospectus
supplement to be used in connection therewith, or any amendment or supplement thereto, and, with respect to such Registration Statement or any other registration statement or any post-effective amendment thereto, when the same has become effective;
and (ii) the receipt of any written comments from the Commission with respect to any filing referred to in clause (i) and any written request by the Commission for amendments or supplements to the Registration Statement or any other
registration statement or any prospectus or prospectus supplement thereto; 
 (g) immediately notify each Selling Holder, at any
time when a prospectus relating thereto is required to be delivered under the Securities Act, of (i) the happening of any event as a result of which the prospectus or prospectus supplement contained in the Registration Statement or any other
registration statement contemplated by this Agreement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading
(in the case of any prospectus contained therein, in the light of the circumstances under which a statement is made); (ii) the issuance or express threat of issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or any other registration statement contemplated by this Agreement, or the initiation of any proceedings for that purpose; or (iii) the receipt by the Partnership of any notification with respect to the suspension of the
qualification of any Registrable Securities for sale under the applicable securities or blue sky laws of any jurisdiction. Following the provision of such notice, the Partnership agrees to as promptly as practicable amend or supplement the
prospectus or prospectus supplement or take other appropriate action so that the prospectus or prospectus supplement does not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading in the light of the circumstances then existing and to take such other commercially reasonable action as is necessary to remove a stop order, suspension, threat thereof or proceedings related thereto;

 (h) upon request and subject to appropriate confidentiality obligations, furnish to each Selling Holder copies of any and all
transmittal letters or other correspondence with the Commission or any other governmental agency or self-regulatory body or other body having 

  
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jurisdiction (including any domestic or foreign securities exchange) relating to such offering of Registrable Securities; 
 (i) in the case of an Underwritten Offering, furnish upon request, (i) an opinion of counsel for the Partnership dated the date of the closing under the underwriting agreement and (ii) a
“cold comfort” letter, dated the pricing date of such Underwritten Offering and a letter of like kind dated the date of the closing under the underwriting agreement, in each case, signed by the independent public accountants who have
certified the Partnership’s financial statements included or incorporated by reference into the applicable registration statement, and each of the opinion and the “cold comfort” letter shall be in customary form and covering
substantially the same matters with respect to such registration statement (and the prospectus and any prospectus supplement included therein) as have been customarily covered in opinions of issuer’s counsel and in accountants’ letters
delivered to the underwriters in Underwritten Offerings of securities by the Partnership and such other matters as such underwriters may reasonably request; 
 (j) otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable,
an earnings statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder; 
 (k) make available to the appropriate representatives of the Managing Underwriter and Selling Holders access to such information and Partnership personnel as is reasonable and customary to enable such
parties to establish a due diligence defense under the Securities Act; provided, however, that the Partnership need not disclose any non-public information to any such representative unless and until such representative has entered into a
confidentiality agreement with the Partnership; 
 (l) cause all such Registrable Securities registered pursuant to this
Agreement to be listed on each securities exchange or nationally recognized quotation system on which similar securities issued by the Partnership are then listed; 
 (m) use its commercially reasonable efforts to cause the Registrable Securities to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the
business and operations of the Partnership to enable the Selling Holders to consummate the disposition of such Registrable Securities; 
 (n) provide a transfer agent and registrar for all Registrable Securities covered by such registration statement not later than the effective date of such registration statement; 

(o) enter into customary agreements and take such other actions as are reasonably requested by the Selling Holders or the underwriters,
if any, in order to expedite or facilitate the disposition of such Registrable Securities; and 
 (p) if requested by a Selling
Holder, (i) incorporate in a prospectus supplement or post-effective amendment such information as such Selling Holder reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including
information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable 

  
 10 

 
Securities to be sold in such offering and (ii) make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in
such prospectus supplement or post-effective amendment. 
 Each Selling Holder, upon receipt of notice from the Partnership of
the happening of any event of the kind described in subsection (g) of this Section 2.05, shall forthwith discontinue offers and sales of the Registrable Securities by means of a prospectus or prospectus supplement until such
Selling Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by subsection (g) of this Section 2.05 or until it is advised in writing by the Partnership that the use of the prospectus may
be resumed and has received copies of any additional or supplemental filings incorporated by reference in the prospectus, and, if so directed by the Partnership, such Selling Holder will, or will request the Managing Underwriter or Underwriters, if
any, to deliver to the Partnership (at the Partnership’s expense) all copies in their possession or control, other than permanent file copies then in such Selling Holder’s possession, of the prospectus covering such Registrable Securities
current at the time of receipt of such notice. 
 Section 2.06 Cooperation by Holders Notwithstanding anything to
the contrary, the Partnership shall have no obligation to include Registrable Securities of a Holder in the Registration Statement or in an Underwritten Offering pursuant to Section 2.02(a) who has failed to timely furnish such
information that the Partnership determines, after consultation with its counsel, is reasonably required in order for the registration statement or prospectus supplement, as applicable, to comply with the Securities Act. 

Section 2.07 Restrictions on Public Sale by Holders of Registrable Securities. Each Holder of Registrable Securities agrees
to enter into a customary letter agreement with underwriters providing such Holder will not effect any public sale or distribution of Registrable Securities during the 60 calendar day period beginning on the date of a prospectus or prospectus
supplement filed with the Commission with respect to the pricing of any Underwritten Offering, provided, however, that (i) the duration of the foregoing restrictions shall be no longer than the duration of the shortest restriction
generally imposed by the underwriters on the Partnership or the officers, directors or any other Affiliate of the Partnership on whom a restriction is imposed and (ii) the restrictions set forth in this Section 2.07 shall not apply
to any Registrable Securities that are included in such Underwritten Offering by such Holder. In addition, this Section 2.07 shall not apply to any Holder that is not entitled to participate in such Underwritten Offering, including,
without limitation, whether because such Holder delivered an Opt-Out Notice prior to receiving notice of the Underwritten Offering, because such Holder holds less than $10.0 million of the then-outstanding Registrable Securities or because the
Registrable Securities held by such Holder may be disposed of without restriction pursuant to any section of Rule 144 (or any similar provision then in effect) under the Securities Act. 

Section 2.08 Expenses 
 (a) Expenses. The Partnership will pay all reasonable Registration Expenses as determined by it in good faith, including, in the case of an Underwritten Offering, whether or not any sale is made
pursuant to such Underwritten Offering. Each Selling Holder shall pay its pro rata share of all Selling Expenses in connection with any sale of its Registrable Securities 

  
 11 

 
hereunder. In addition, except as otherwise provided in Section 2.09 hereof, the Partnership shall not be responsible for legal fees incurred by Holders in connection with the
exercise of such Holders’ rights hereunder. 
 (b) Certain Definitions. “Registration Expenses”
means all expenses incident to the Partnership’s performance under or compliance with this Agreement to effect the registration of Registrable Securities on the Registration Statement pursuant to Section 2.01(a) or an Underwritten
Offering covered under this Agreement, and the disposition of such Registrable Securities, including, without limitation, all registration, filing, securities exchange listing and NYSE fees, all registration, filing, qualification and other fees and
expenses of complying with securities or blue sky laws, fees of the Financial Industry Regulatory Authority, fees of transfer agents and registrars, all word processing, duplicating and printing expenses, and the fees and disbursements of counsel
and independent public accountants for the Partnership, including the expenses of any special audits or “cold comfort” letters required by or incident to such performance and compliance. “Selling Expenses” means all
underwriting fees, discounts and selling commissions or similar fees or arrangements allocable to the sale of the Registrable Securities. 
 Section 2.09 Indemnification 
 (a) By the Partnership. In the
event of a registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Partnership will indemnify and hold harmless each Selling Holder thereunder, its directors, officers, employees and agents and each
Person, if any, who controls such Selling Holder within the meaning of the Securities Act and the Exchange Act, and its directors, officers, employees or agents (collectively, the “Selling Holder Indemnified Persons”), against any
losses, claims, damages, expenses or liabilities (including reasonable attorneys’ fees and expenses) (collectively, “Losses”), joint or several, to which such Selling Holder Indemnified Person may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such Losses (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material
fact (in the case of any prospectus, in light of the circumstances under which such statement is made) contained in the Registration Statement or any other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus
supplement, issuer free writing prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein (in the case of a prospectus, in light of the circumstances under which they were made) not misleading, and will reimburse each such Selling Holder Indemnified Person for any legal or other
expenses reasonably incurred by them in connection with investigating or defending any such Loss or actions or proceedings; provided, however, that the Partnership will not be liable in any such case if and to the extent that any such Loss
arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by such Selling Holder Indemnified Person in writing specifically for use in the
Registration Statement or such other registration statement, or preliminary prospectus, prospectus supplement, free writing prospectus or final prospectus or any amendment or supplement thereto, as applicable. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of such Selling Holder 

  
 12 

 
Indemnified Person, and shall survive the transfer of such securities by such Selling Holder. 
 (b) By Each Selling Holder. Each Selling Holder agrees severally and not jointly to indemnify and hold harmless the Partnership, the General Partner, its directors, officers, employees and agents
and each Person, if any, who controls the Partnership within the meaning of the Securities Act or of the Exchange Act, and its directors, officers, employees and agents, to the same extent as the foregoing indemnity from the Partnership to the
Selling Holders, but only with respect to information regarding such Selling Holder furnished in writing by or on behalf of such Selling Holder expressly for inclusion in the Registration Statement or any other registration statement contemplated by
this Agreement, any preliminary prospectus, prospectus supplement, free writing prospectus or final prospectus contained therein, or any amendment or supplement thereof; provided, however, that the liability of each Selling Holder shall not
be greater in amount than the dollar amount of the proceeds (net of any Selling Expenses) received by such Selling Holder from the sale of the Registrable Securities giving rise to such indemnification. 

(c) Notice. Promptly after receipt by an indemnified party hereunder of notice of the commencement of any action, such indemnified
party shall, if a claim in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying party in writing thereof, but the omission so to notify the indemnifying party shall not relieve it from any liability that it
may have to any indemnified party other than under this Section 2.09. In any action brought against any indemnified party, it shall notify the indemnifying party of the commencement thereof. The indemnifying party shall be entitled to
participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party and, after notice from the indemnifying party to such indemnified party of its election so to
assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 2.09 for any legal expenses subsequently incurred by such indemnified party in connection with the defense
thereof other than reasonable out-of-pocket costs of investigation and of liaison with counsel so selected; provided, however, that, (i) if the indemnifying party has failed to assume the defense or employ counsel reasonably acceptable
to the indemnified party or (ii) if the defendants in any such action include both the indemnified party and the indemnifying party and counsel to the indemnified party shall have concluded that there may be reasonable defenses available to the
indemnified party that are different from or additional to those available to the indemnifying party, or if the interests of the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying party, then the
indemnified party shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the reasonable expenses and fees of such separate counsel and other reasonable
expenses related to such participation to be reimbursed by the indemnifying party as incurred. Notwithstanding any other provision of this Agreement, no indemnifying party shall settle any action brought against any indemnified party with respect to
which such indemnified party is entitled to indemnification hereunder without the consent of the indemnified party, unless the settlement thereof imposes no liability or obligation on, and includes a complete and unconditional release from all
liability of, the indemnified party. 
 (d) Contribution. If the indemnification provided for in this
Section 2.09 is held by a court or government agency of competent jurisdiction to be unavailable to any indemnified party 

  
 13 

 
or is insufficient to hold them harmless in respect of any Losses, then each such indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such Loss in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of such indemnified party on the other in connection with the statements or
omissions that resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that in no event shall such Selling Holder be required to contribute an aggregate amount in excess of the dollar amount of
proceeds (net of Selling Expenses) received by such Selling Holder from the sale of Registrable Securities giving rise to such indemnification. The relative fault of the indemnifying party on the one hand and the indemnified party on the other shall
be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact has been made by, or relates to, information supplied by such party,
and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just and equitable if contributions pursuant to this paragraph
were to be determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to herein. The amount paid by an indemnified party as a result of the Losses referred to in the
first sentence of this paragraph shall be deemed to include any legal and other expenses reasonably incurred by such indemnified party in connection with investigating or defending any Loss that is the subject of this paragraph. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who is not guilty of such fraudulent misrepresentation. 

(e) Other Indemnification. The provisions of this Section 2.09 shall be in addition to any other rights to
indemnification or contribution that an indemnified party may have pursuant to law, equity, contract or otherwise. 

Section 2.10 Rule 144 Reporting. With a view to making available the benefits of certain rules and regulations of the
Commission that may permit the sale of the Registrable Securities to the public without registration, the Partnership agrees to use its commercially reasonable efforts to: 
 (a) make and keep public information regarding the Partnership available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times from and after the date hereof;

 (b) file with the Commission in a timely manner all reports and other documents required of the Partnership under the
Securities Act and the Exchange Act at all times from and after the date hereof; and 
 (c) so long as a Holder owns any
Registrable Securities, furnish, unless otherwise available via EDGAR, to such Holder forthwith upon request a copy of the most recent annual or quarterly report of the Partnership, and such other reports and documents so filed as such Holder may
reasonably request in availing itself of any rule or regulation of the Commission allowing such Holder to sell any such securities without registration. 

  
 14 

 Section 2.11 Transfer or Assignment of Registration Rights. The rights to cause
the Partnership to register Registrable Securities granted to the Investors by the Partnership under this Article II may be transferred or assigned by any Investor to one or more transferees or assignees of Registrable Securities;
provided, however, that (a) unless the transferee or assignee is an Affiliate of, and after such transfer or assignment continues to be an Affiliate of, such Investor, the amount of Registrable Securities transferred or assigned to such
transferee or assignee shall represent at least $10.0 million of Registrable Securities (based on the Common Unit Price), (b) the Partnership is given written notice prior to any said transfer or assignment, stating the name and address of each
such transferee or assignee and identifying the securities with respect to which such registration rights are being transferred or assigned, and (c) each such transferee or assignee assumes in writing responsibility for its portion of the
obligations of such Investor under this Agreement. 
 Section 2.12 Limitation on Subsequent Registration Rights.
From and after the date hereof, the Partnership shall not, without the prior written consent of the Holders of a majority of the Registrable Securities, enter into any agreement with any current or future holder of any securities of the Partnership
that would allow such current or future holder to require the Partnership to include securities in any registration statement filed by the Partnership on a basis other than pari passu with, or expressly subordinate to the rights of, the
Holders of Registrable Securities hereunder. 
 ARTICLE III 

MISCELLANEOUS 
 Section 3.01 Communications. All notices and other communications provided for or permitted hereunder shall be made in writing by facsimile, electronic mail, courier service or personal
delivery: 
 (a) if to an Investor: 
 To the respective address listed on Schedule A hereof 
 with a copy to:

 Vinson & Elkins LLP 
 2200 Pennsylvania Ave., NW 
 Suite 500 West 

Washington, DC 20037 
 Attention: Catherine Gallagher 
 Facsimile: 202.879.8985 

(b) if to a transferee of an Investor, to such Holder at the address provided pursuant to Section 2.11 above; and 

(c) if to the Partnership: 
 Teekay Offshore Partners L.P. 
 4th Floor, Belvedere Building 

  
 15 

 69 Pitts Bay Road 
 Hamilton HM 08, Bermuda 
 Attention: Corporate Secretary 

Facsimile: (441) 292-3931 
 with a copy to: 
 Perkins Coie LLP 

1120 N.W. Couch Street, 10th Floor 
 Portland, OR 97209 
 Attention: David Matheson 

Facsimile: 503.346.2008 
 All such notices and communications shall be deemed to have been received at the time delivered by hand, if personally delivered; when receipt acknowledged, if sent via facsimile or sent via Internet
electronic mail; and when actually received, if sent by courier service or any other means. 
 Section 3.02 Successor
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties, including subsequent Holders of Registrable Securities to the extent permitted herein. 

Section 3.03 Assignment of Rights. All or any portion of the rights and obligations of any Investor under this Agreement may
be transferred or assigned by such Investor only in accordance with Section 2.11 hereof. 
 Section 3.04
Recapitalization, Exchanges, Etc. Affecting the Units. The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all units of the Partnership or any successor or assign of the Partnership
(whether by merger, consolidation, sale of assets or otherwise) that may be issued in respect of, in exchange for or in substitution of, the Registrable Securities, and shall be appropriately adjusted for combinations, unit splits,
recapitalizations, pro rata distributions of units and the like occurring after the date of this Agreement. 
 Section 3.05
Aggregation of Registrable Securities. All Registrable Securities held or acquired by Persons who are Affiliates of one another shall be aggregated together for the purpose of determining the availability of any rights and applicability of
any obligations under this Agreement. 
 Section 3.06 Specific Performance. Damages in the event of breach of this
Agreement by a party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed that each such Person, in addition to and without limiting any other remedy or right it may have, will have the right to an injunction or other
equitable relief in any court of competent jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground of lack of
jurisdiction or competence of the court to grant such an injunction or other equitable relief. The 

  
 16 

 
existence of this right will not preclude any such Person from pursuing any other rights and remedies at law or in equity that such Person may have. 

Section 3.07 Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement. 

Section 3.08 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise
affect the meaning hereof. 
 Section 3.09 Governing Law. THIS AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH, AND
GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK. 
 Section 3.10 Severability of Provisions. Any provision of
this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting or
impairing the validity or enforceability of such provision in any other jurisdiction. 
 Section 3.11 Entire
Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the rights granted by the Partnership set forth herein. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject matter. 
 Section 3.12 Amendment.
This Agreement may be amended only by means of a written amendment signed by the Partnership and the Holders of a majority of the then outstanding Registrable Securities; provided, however, that no such amendment shall materially and
adversely affect the rights of any Holder hereunder without the consent of such Holder. 
 Section 3.13 No
Presumption. If any claim is made by a party relating to any conflict, omission or ambiguity in this Agreement, no presumption or burden of proof or persuasion shall be implied by virtue of the fact that this Agreement was prepared by or at the
request of a particular party or its counsel. 
 Section 3.14 Obligations Limited to Parties to Agreement. Each of
the Parties hereto covenants, agrees and acknowledges that no Person other than the Investors (and their permitted transferees and assignees) and the Partnership shall have any obligation hereunder and that, notwithstanding that one or more of the
Investors may be a corporation, partnership or limited liability company, no recourse under this Agreement or under any documents or instruments delivered in connection herewith or therewith shall be had against any former, current or future
director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the Investors or any former, current or future director, officer, employee, agent, general or limited partner, manager, member,
stockholder or Affiliate of any of the 

  
 17 

 
foregoing, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any applicable Law, it being expressly agreed and acknowledged that no personal
liability whatsoever shall attach to, be imposed on or otherwise be incurred by any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the Investors or any
former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the foregoing, as such, for any obligations of the Investors under this Agreement or any documents or
instruments delivered in connection herewith or therewith or for any claim based on, in respect of or by reason of such obligation or its creation, except in each case for any transferee or assignee of a Investor hereunder. 

Section 3.15 Interpretation. Article and Section references to this Agreement, unless otherwise specified. All references to
instruments, documents, contracts and agreements are references to such instruments, documents, contracts and agreements as the same may be amended, supplemented and otherwise modified from time to time, unless otherwise specified. The word
“including” shall mean “including but not limited to.” Whenever any determination, consent or approval is to be made or given by an Investor under this Agreement, such action shall be in such Investor’s sole discretion
unless otherwise specified. 
 [Signature pages to follow] 

  
 18 

 IN WITNESS WHEREOF, the Parties hereto execute this Agreement, effective as of the date
first above written. 
  

			
	TEEKAY OFFSHORE PARTNERS L.P.
		
	By:	 	TEEKAY OFFSHORE GP L.L.C.,
(its General Partner)
		
	By:	 	        /s/ Mark Cave
		 	Name: Mark Cave
		 	Title: Secretary

 Signature Page to Registration Rights Agreement 

 
			
	KAYNE ANDERSON MLP INVESTMENT COMPANY
		
	By:	 	KA Fund Advisors, LLC, as Manager
		
	By:	 	      /s/ James C. Baker
		 	Name: James C. Baker
		 	Title: Senior Managing Director

  

			
	KAYNE ANDERSON ENERGY TOTAL RETURN FUND, INC.
		
	By:	 	KA Fund Advisors, LLC, as Manager
		
	By:	 	      /s/ James C. Baker
		 	Name: James C. Baker
		 	Title: Senior Managing Director

  

			
	KAYNE ANDERSON MIDSTREAM/ENERGY FUND, INC.
		
	By:	 	KA Fund Advisors, LLC, as Manager
		
	By:	 	      /s/ James C. Baker
		 	Name: James C. Baker
		 	Title: Senior Managing Director

  

			
	KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY
		
	By:	 	KA Fund Advisors, LLC, as Manager
		
	By:	 	      /s/ James C. Baker
		 	Name: James C. Baker
		 	Title: Senior Managing Director

  

			
	KA FIRST RESERVE, LLC
		
	By:	 	KA Fund Advisors, LLC, as Manager
		
	By:	 	      /s/ James C. Baker
		 	Name: James C. Baker
		 	Title: Senior Managing Director

 Signature Page to Registration Rights Agreement 

 
			
	KAYNE ANDERSON MLP FUND, LP
	
	By: Kayne Anderson Capital Advisors, L.P., as its general partner
		
	By:	 	      /s/ David Shladovsky
		 	Name: David Shladovsky
		 	Title: General Counsel

  

			
	KAYNE ANDERSON CAPITAL INCOME PARTNERS (QP), LP
	
	By: Kayne Anderson Capital Advisors, L.P., as its general partner
		
	By:	 	      /s/ David Shladovsky
		 	Name: David Shladovsky
		 	Title: General Counsel

  

			
	KAYNE ANDERSON NON-TRADITIONAL INVESTMENTS, LP
	
	By: Kayne Anderson Capital Advisors, L.P., as its general partner
		
	By:	 	      /s/ David Shladovsky
		 	Name: David Shladovsky
		 	Title: General Counsel

  

			
	KAYNE ANDERSON MIDSTREAM INSTITUTIONAL FUND, LP
	
	By: Kayne Anderson Capital Advisors, L.P., as its general partner
		
	By:	 	      /s/ David Shladovsky
		 	Name: David Shladovsky
		 	Title: General Counsel

 Signature Page to Registration Rights Agreement 

 
			
	CLEARBRIDGE ENERGY MLP FUND INC.
	
	By: CLEARBRIDGE ADVISORS, LLC
		
	By:	 	      /s/ Harry D. Cohen
		 	Name: Harry D. Cohen
		 	Title: Chief Investment Officer

  

			
	FAMCO MLP & ENERGY INCOME FUND
		
	By:	 	      /s/ Quinn T. Kiley
		 	Name: Quinn T. Kiley
		 	Title: Manager

  

			
	FAMCO MLP & ENERGY INFRASTRUCTURE FUND
		
	By:	 	      /s/ Quinn T. Kiley
		 	Name: Quinn T. Kiley
		 	Title: Manager

  

			
	FIDUCIARY/CLAYMORE MLP OPPORTUNITY FUND
		
	By:	 	      /s/ Quinn T. Kiley
		 	Name: Quinn T. Kiley
		 	Title: Manager

  

			
	MLP & STRATEGIC EQUITY FUND INC.
		
	By:	 	      /s/ Quinn T. Kiley
		 	Name: Quinn T. Kiley
		 	Title: Manager

 Signature Page to Registration Rights Agreement 

 
			
	NUVEEN ENERGY MLP TOTAL RETURN FUND
		
	By:	 	      /s/ Quinn T. Kiley
		 	Name: Quinn T. Kiley
		 	Title: Manager

  

			
	TEACHERS’ RETIREMENT SYSTEM OF OKLAHOMA
		
	By:	 	       /s/ Quinn T. Kiley
		 	Name: Quinn T. Kiley
		 	Title: Manager

  

			
	SALIENT MLP & ENERGY INFRASTRUCTURE FUND
	By: Salient Capital Advisors, LLC, its Investment Manager
		
	By:	 	      /s/ Greg Reid
		 	Name: Greg Reid
		 	Title: President and Managing Director

  

			
	SALIENT MLP FUND, LP
	By: Salient Capital Advisors, LLC, its Investment Manager
		
	By:	 	      /s/ Greg Reid
		 	Name: Greg Reid
		 	Title: President and Managing Director

 Signature Page to Registration Rights Agreement 

 
			
	H-E-B BRAND SAVINGS AND RETIREMENT PLAN TRUST
	By: Salient Capital Advisors, LLC, its Investment Manager
		
	By:	 	      /s/ Greg Reid
		 	Name: Greg Reid
		 	Title: President and Managing Director

  

			
	 TORTOISE NORTH AMERICAN ENERGY CORP.
  

		
	By:	 	      /s/ Zachary A. Hamel
		 	Name: Zachary A. Hamel
		 	Title: Senior Vice President

  

			
	 TORTOISE PIPELINE AND ENERGY FUND

 

		
	By:	 	      /s/ Zachary A. Hamel
		 	Name: Zachary A. Hamel
		 	Title: President

 Signature Page to Registration Rights Agreement 

 Schedule A – Investor Name; Notice and Contact Information; Opt Out 

 

					
	 Purchasers
	  	 Notice and Contact Information
	  	 Opt-Out at Date
Hereof

	 Kayne Anderson MLP Investment Company
	  	 Kayne Anderson Capital Advisors, L.P.
 717 Texas, Suite 3100
 Houston, Texas 77002
 Attn: James C. Baker
 Facsimile: (713) 655-7359

Email: jbaker@kaynecapital.com
  

and:
 1800 Avenue of the Stars, 2nd Floor
 Los Angeles, California 90067
 Attn: David Shladovsky, Esq.

Facsimile: (310) 284-6490
 Email:
dshladovsky@kaynecapital.com
	  	Yes
			
	 Kayne Anderson Energy Total Return Fund, Inc.
	  	 Kayne Anderson Capital Advisors, L.P.
 717 Texas, Suite 3100
 Houston, Texas 77002
 Attn: James C. Baker
 Facsimile: (713) 655-7359

Email: jbaker@kaynecapital.com
  

and:
 1800 Avenue of the Stars, 2nd Floor
 Los Angeles, California 90067
 Attn: David Shladovsky, Esq.

Facsimile: (310) 284-6490
 Email:
dshladovsky@kaynecapital.com
	  	Yes
			
	 Kayne Anderson Midstream/Energy Fund, Inc.
	  	 Kayne Anderson Capital Advisors, L.P.
 717 Texas, Suite 3100
 Houston, Texas 77002
 Attn: James C. Baker
 Facsimile: (713) 655-7359

Email: jbaker@kaynecapital.com
  

and:
 1800 Avenue of the Stars, 2nd Floor
	  	Yes

  
 Schedule A
to Registration Rights Agreement 

					
	 Purchasers
	  	 Notice and Contact Information
	  	 Opt-Out at Date
Hereof

		  	 Los Angeles, California 90067

Attn: David Shladovsky, Esq.
 Facsimile: (310)
284-6490
 Email: dshladovsky@kaynecapital.com
	  	
			
	 Kayne Anderson Energy Development Company
	  	 Kayne Anderson Capital Advisors, L.P.
 717 Texas, Suite 3100
 Houston, Texas 77002
 Attn: James C. Baker
 Facsimile: (713) 655-7359

Email: jbaker@kaynecapital.com
  

and:
 1800 Avenue of the Stars, 2nd Floor
 Los Angeles, California 90067
 Attn: David Shladovsky, Esq.

Facsimile: (310) 284-6490
 Email:
dshladovsky@kaynecapital.com
	  	Yes
			
	 Kayne Anderson MLP Fund, LP
	  	 Kayne Anderson Capital Advisors, L.P.
 717 Texas, Suite 3100
 Houston, Texas 77002
 Attn: James C. Baker
 Facsimile: (713) 655-7359

Email: jbaker@kaynecapital.com 
  

and:
 1800 Avenue of the Stars, 2nd Floor
 Los Angeles, California 90067
 Attn: David Shladovsky, Esq.

Facsimile: (310) 284-6490
 Email:
dshladovsky@kaynecapital.com
	  	Yes
			
	 Kayne Anderson Capital Income Partners (QP), LP
	  	 Kayne Anderson Capital Advisors, L.P.
 717 Texas, Suite 3100
 Houston, Texas 77002
 Attn: James C. Baker
 Facsimile: (713) 655-7359

Email: jbaker@kaynecapital.com
	  	Yes

  
 Schedule A
to Registration Rights Agreement 

					
	 Purchasers
	  	 Notice and Contact Information
	  	 Opt-Out at Date
Hereof

		  	 and:
 1800 Avenue of the
Stars, 2nd Floor

Los Angeles, California 90067
 Attn: David
Shladovsky, Esq.
 Facsimile: (310) 284-6490
 Email: dshladovsky@kaynecapital.com
	  	
			
	 Kayne Anderson Non-Traditional Investments, LP
	  	 Kayne Anderson Capital Advisors, L.P.
 717 Texas, Suite 3100
 Houston, Texas 77002
 Attn: James C. Baker
 Facsimile: (713) 655-7359

Email: jbaker@kaynecapital.com
  

and:
 1800 Avenue of the Stars, 2nd Floor
 Los Angeles, California 90067
 Attn: David Shladovsky, Esq.

Facsimile: (310) 284-6490
 Email:
dshladovsky@kaynecapital.com
	  	Yes
			
	 Kayne Anderson Midstream Institutional Fund, LP
	  	 Kayne Anderson Capital Advisors, L.P.
 717 Texas, Suite 3100
 Houston, Texas 77002
 Attn: James C. Baker
 Facsimile: (713) 655-7359

Email: jbaker@kaynecapital.com 
  

and:
 1800 Avenue of the Stars, 2nd Floor
 Los Angeles, California 90067
 Attn: David Shladovsky, Esq.

Facsimile: (310) 284-6490
 Email:
dshladovsky@kaynecapital.com
	  	Yes
			
	 KA First Reserve, LLC
	  	 Kayne Anderson Capital Advisors, L.P.
 717 Texas, Suite 3100
 Houston, Texas 77002
	  	Yes

  
 Schedule A
to Registration Rights Agreement 

					
	 Purchasers
	  	 Notice and Contact Information
	  	 Opt-Out at Date
Hereof

		  	 Attn: James C. Baker

Facsimile: (713) 655-7359
 Email:
jbaker@kaynecapital.com
  
 with a copy to:

Gary Reaves
 First Reserve Corporation

600 Travis, Suite 6000
 Houston TX
77002
 Facsimile: (713) 437-5147

Email: greaves@firstreserve.com
	  	
			
	 Tortoise North American Energy Corp.
	  	 Tortoise Capital Advisors, LLC

11550 Ash Street, Suite 300
 Leawood, KS
66211
 Attn: Zachary A. Hamel
	  	Yes
			
	 Tortoise Pipeline and Energy Fund
	  	 Tortoise Capital Advisors, LLC

11550 Ash Street, Suite 300
 Leawood, KS
66211
 Attn: Zachary A. Hamel
	  	Yes
			
	 Fiduciary/Claymore MLP Opportunity Fund
	  	 Fiduciary Asset Management, Inc.

8235 Forsyth Blvd., Suite 700
 St. Louis, MO,
63105
 Attn: Susan Steiner
 Fax: (314)
446-1445
	  	Yes
			
	 FAMCO MLP & Energy Income Fund
	  	 Fiduciary Asset Management, Inc.

8235 Forsyth Blvd., Suite 700
 St. Louis, MO,
63105
 Attn: Susan Steiner
 Fax: (314)
446-1445
	  	Yes
			
	 Nuveen Energy MLP Total Return Fund
	  	 Fiduciary Asset Management, Inc.

8235 Forsyth Blvd., Suite 700
 St. Louis, MO,
63105
 Attn: Susan Steiner
 Fax: (314)
446-1445
	  	Yes

  
 Schedule A
to Registration Rights Agreement 

					
	 Purchasers
	  	 Notice and Contact Information
	  	 Opt-Out at Date
Hereof

	 FAMCO MLP & Energy Infrastructure Fund
	  	 Fiduciary Asset Management, Inc.

8235 Forsyth Blvd., Suite 700
 St. Louis, MO,
63105
 Attn: Susan Steiner
 Fax: (314)
446-1445
	  	Yes
			
	 MLP & Strategic Equity Fund Inc.
	  	 Fiduciary Asset Management, Inc.

8235 Forsyth Blvd., Suite 700
 St. Louis, MO,
63105
 Attn: Susan Steiner
 Fax: (314)
446-1445
	  	Yes
			
	 Teachers’ Retirement System of Oklahoma
	  	 Fiduciary Asset Management, Inc.

8235 Forsyth Blvd., Suite 700
 St. Louis, MO,
63105
 Attn: Susan Steiner
 Fax: (314)
446-1445
	  	Yes
			
	 ClearBridge Energy MLP Fund Inc.
	  	 ClearBridge Advisors, LLC
 620
8th Avenue, 47th FL
 New York, New York 10018
 Attn: Patrick Collier
  

with a copy to:
 ClearBridge Advisors,
LLC
 620 8th Avenue, 47th FL
 New York,
New York 10018
 Attn: Barbara Brooke Manning, Esq.
	  	No
			
	 Salient MLP & Energy Infrastructure Fund
	  	 Salient Partners
 4265 San
Felipe, 8th FL
 Houston, TX 77027

Attn: Greg Reid
	  	No
			
	 Salient MLP Fund, LP
	  	 Salient Partners
 4265 San
Felipe, 8th FL
 Houston, TX 77027

Attn: Greg Reid
	  	No
			
	 H-E-B Brand Savings and Retirement Plan Trust
	  	 Salient Partners
 4265 San
Felipe, 8th FL
 Houston, TX 77027

Attn: Greg Reid
	  	No

  
 Schedule A
to Registration Rights AgreementUnassociated Document

 

STOCK PURCHASE AGREEMENT

 

by and among

 

SUSTAINABLE GROWTH GROUP AMERICA, INC.

 

JOHN HOLCOMB,

 

and

 

BONANZA ONE, INC.

 

 

DATED AS OF DECEMBER 13, 2011

 

  

  

  

 

STOCK PURCHASE AGREEMENT

 

This STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of December 13, 2011 (sometimes referred to herein as the “Closing Date”), by and among Sustainable Growth Group America, Inc. (“Buyer”), a Delaware corporation, John Holcomb (“Seller”) and Bonanza One, Inc. (the “Company”), a Nevada corporation.

 

RECITALS

 

WHEREAS, Seller is the record owner of 1,500,000 shares of common stock, par value $0.0001 per share (the “Shares”) of the Company; and

 

WHEREAS, Seller wishes to sell to Buyer, and Buyer wishes to purchase from Seller, the Shares, all on the terms and conditions hereinafter set forth.

 

AGREEMENT

 

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

 

ARTICLE 1

DEFINITIONS

 

1.1           Definitions.  For purposes of this Agreement, the following terms shall have the respective meanings given below:

 

	
“Affiliate” means an affiliate as defined in Rule 405 under the Securities Act and includes any past and present Affiliate of a Person.

 

	
“Affiliated Group” means an affiliated group as defined in Section 1504 of the Code (or analogous combined, consolidated or unitary group defined under state, local or foreign income Tax law).

 

	
“Agreement” has the meaning set forth in the preamble hereto.

 

	
“Buyer Indemnified Party” has the meaning set forth in Section 6.1(a).

 

	
“Buyer” has the meaning set forth in the preamble hereto.

 

	
“Closing Date” has the meaning set forth in the preamble hereto.

 

	
“Closing” has the meaning set forth in Section 2.1.

 

	
“Code” means the Internal Revenue Code of 1986, as amended.

 

  

  

  

 

	
“Company Debt” means, with respect to the Company, (a) all obligations for borrowed money or funded indebtedness, whether or not contingent (including without limitation, all principal, interest, premiums, penalties, fees, expenses, indemnities, and breakage costs); (b) any indebtedness evidenced by any note, bond, debenture or other debt security; (c) all obligations for the deferred purchase price of property or services other than those incurred in the ordinary course of business; (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by the Company (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property); (e) all obligations under leases that have been or should be recorded as capital leases in accordance with GAAP; (f) all obligations, contingent or otherwise, of the Company under acceptance, letter of credit or similar facilities; (g) any “earn-out” payment obligations; (h) all indebtedness of others referred to in clauses (a) through (g) above guaranteed directly or indirectly in any manner by the Company; and (h) all indebtedness referred to in clauses (a) through (h) above secured by (or for which the holder of such Company Debt has an existing right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned by the Company, even though the Company has not assumed or become liable for the payment of such Company Debt.

 

	
“Company” has the meaning set forth in the preamble hereto.

 

	
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

	
“Financial Statements” has the meaning set forth in Section 3.6(c).

 

	
“GAAP” means U.S. generally accepted accounting principles.

 

	
“Governmental Authority” means any government or quasi-governmental organization or political subdivision, whether federal, state, local, municipal or foreign, or any agency, bureau, commission, court, agency, commission, department, official, political subdivision, tribunal, arbitration panel or other or instrumentality of any such organization or subdivision, or any federal, state, local or foreign court or arbitrator.

 

	
“Liens” means any claims, liens, charges, restrictions, options, preemptive rights, mortgages, hypothecations, assessments, pledges, encumbrances or security interests of any kind or nature whatsoever.

 

	
“Losses” has the meaning set forth in Section 6.1(b).

 

	
“Material Adverse Effect” means a material adverse effect on: (i) the assets, liabilities, results of operations, condition (financial or otherwise) or business of the Company; or (ii) the ability of the Company to perform its obligations hereunder.

 

	
“OFAC” has the meaning set forth in Section 3.26.

 

	
“Permits” means any license, permit, franchise, authorization, certificate of authority, qualification, franchise, concession, approval, consent, ratification, permission, clearance, confirmation, endorsement, waiver, certification, designation, rating, registration, qualification or authorization issued, granted, given or otherwise made available by or under the authority of any Governmental Authority or pursuant to any Law.

 

  

2

  

 

	
“Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated association, corporation, entity or government (whether federal, state, county, city or otherwise, including, but not limited to, any instrumentality, division, agency or department thereof).

 

	
“Purchase Price” has the meaning set forth in Section 2.2.

 

	
“SEC” means the U.S. Securities and Exchange Commission.

 

	
“SEC Reports” has the meaning set forth in Section 3.6(a).

 

	
“Securities Act” means the Securities Act of 1933, as amended.

 

	
“Seller Indemnified Party” has the meaning set forth in Section 6.1(a).

 

	
“Seller” has the meaning set forth in the preamble hereto.

 

	
“Shares” has the meaning set forth in the recitals hereto.

 

	
“Tax Returns” means returns, declarations, reports, claims for refund, information returns or other documents (including any related or supporting schedules, statements or information) filed or required to be filed in connection with the determination, assessment or collection of any Taxes of any party or the administration of any laws, regulations or administrative requirements relating to any Taxes.

 

	
“Tax” means any federal, state, local or foreign income, gross receipts, franchise, estimated, alternative minimum, add-on minimum, sales, use, transfer, registration, value added, excise, natural resources, severance, stamp, occupation, premium, windfall profit, environmental, customs, duties, real property, personal property, capital stock, social security, unemployment, disability, payroll, license, employee or other withholding, or other tax, of any kind whatsoever, including any interest, penalties or additions to tax or additional amounts in respect of the foregoing; the foregoing shall include any transferee or secondary liability for a Tax and any liability assumed by agreement or arising as a result of being (or ceasing to be) a member of any Affiliated Group (or being included (or required to be included) in any Tax Return relating thereto).

 

	
“Transaction Documents” means all agreements and instruments contemplated by and being delivered pursuant to or in connection with this Agreement.

 

ARTICLE 2

PURCHASE AND SALE OF STOCK

 

2.1           Purchase and Sale of the Shares.  Seller, in reliance upon the representations and warranties of Buyer contained herein and on the terms and conditions herein set forth, hereby agrees to sell, assign, transfer, convey and deliver to Buyer at the closing of the transactions (the “Closing”) contemplated by this Agreement all of his right, title and interest in and to all of the Shares free and clear of all liens and encumbrances.  Buyer, in reliance upon the representations and warranties of Seller contained herein and on the terms and conditions hereinafter set forth, hereby agrees to purchase the Shares from Seller at the Closing for a purchase price as set forth in Section 2.2.

 

  

3

  

 

2.2           Purchase Price.  The aggregate purchase price for the Shares (the “Purchase Price”) shall be $50,000.

 

2.3           Payment of Purchase Price.  The Purchase Price shall be paid by Buyer to Seller at the Closing by wire transfer of immediately available funds to Seller’s designated bank account.

 

2.4           Closing.  The Closing will take place remotely via the exchange of documents and signatures on the Closing Date.  All proceedings to be taken and all documents to be executed and delivered by all parties at the Closing will be deemed to have been taken and executed simultaneously and no proceedings will be deemed to have been taken nor documents executed or delivered until all have been taken, executed and delivered.

 

ARTICLE 3

SELLER’S REPRESENTATIONS AND WARRANTIES

 

Seller hereby represents and warrants to Buyer as of the date hereof as follows:

 

3.1           Organization and Qualification of the Company.  The Company is a corporation duly organized, validly existing, and in good standing under the laws of the State of Nevada. The Company has the corporate power to own all of its properties and assets and to carry on its business in all material respects as it is now being conducted, including qualifications to do business as a foreign corporation in the states in which the character and location of the assets owned by it or the nature of the business transacted by it requires qualification, except where failure to be so qualified would not have a Material Adverse Effect.

 

3.2           ­Authority.  

 

(a)           Seller has full power, right and authority to enter into and perform his obligations under this Agreement and each of the Transaction Documents to which Seller is a party and to consummate the transactions contemplated hereby and thereby.  This Agreement and each of the Transaction Documents to which Seller is a party have been duly executed and delivered by Seller and constitute the legal, valid and binding obligations, enforceable against Seller in accordance with their respective terms, except as limited by (a) applicable bankruptcy, reorganization, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally from time to time in effect and (b) the availability of equitable remedies (regardless of whether enforceability is considered in a proceeding at law or in equity).  No permits, approvals or consents of or notifications to (x) any Governmental Authorities or (y) any other Persons are necessary in connection with the execution, delivery and performance by Seller of this Agreement, the other Transaction Documents and the consummation by Seller of the transactions contemplated hereby and thereby.

 

(b)           The Company has the requisite power and authority to execute and deliver this Agreement and each of the Transaction Documents to which the Company is a party and to consummate the transactions contemplated hereby and thereby.  The execution and delivery of this Agreement and each of the Transaction Documents to which the Company is a party and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary corporate action on the part of the Company.  This Agreement and each of the Transaction Documents to which the Company is a party have been duly executed and delivered by the Company and represent the legal, valid and binding obligations of the Company, enforceable against it in accordance with their respective terms, except as limited by (a) applicable bankruptcy, reorganization, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally from time to time in effect and (b) the availability of equitable remedies (regardless of whether enforceability is considered in a proceeding at law or in equity).  No permits, approvals or consents of or notifications to (x) any Governmental Authorities or (y) any other Persons are necessary in connection with the execution, delivery and performance by the Company of this Agreement, the other Transaction Documents and the consummation by the Company of the transactions contemplated hereby and thereby.

 

  

4

  

 

3.3           Subsidiaries.  The Company does not have, directly or indirectly, any ownership in any Person.

 

3.4           Capital Stock.  

 

(a)           The Company is authorized to issue 10,000,000 shares of Common Stock and has 1,500,000 shares of Common Stock outstanding as of the date of this Agreement.  All issued and outstanding shares of Common Stock are legally issued, fully paid and non-assessable and were not issued in violation of the preemptive or other rights of any person or entity.  No shares of any capital stock of the Company are reserved for issuance upon the exercise of outstanding options or warrants to purchase any capital stock or other equity-linked securities of the Company.  All outstanding capital stock have been issued and granted in compliance with all applicable securities laws and regulations.  There are no requirements set forth in any material contracts, agreements, franchises, license agreements, debt instruments or other commitments to which the Company is a party or by which it or any of its assets or properties are bound.

 

(b)           There are no equity securities or other ownership interests of any class of any equity security of the Company, or any securities exchangeable or convertible into or exercisable for such equity securities or other ownership interests, issued, reserved for issuance or outstanding.   There are no subscriptions, options, warrants, equity securities, partnership interests or similar ownership interests, calls, rights (including preemptive rights), commitments or agreements of any character to which the Company is a party or by which it is bound obligating the Company to issue, deliver or sell, or cause to be issued, delivered or sold, or repurchase, redeem or otherwise acquire, or cause the repurchase, redemption or acquisition of, any shares of capital stock, partnership interests or similar ownership interests of the Company or obligating the Company to grant, extend, accelerate the vesting of or enter into any such subscription, option, warrant, equity security, call, right, commitment or agreement.  There is no plan or arrangement to issue any securities of the Company.

 

(c)           There are no registration rights, and there is no voting trust, proxy, rights plan, anti-takeover plan or other agreement or understanding to which the Company or Seller is a party or by which the Company or Seller is bound with respect to any equity security of any class of the Company, and there are no agreements to which the Company or Seller is a party which conflict with this Agreement or the transactions contemplated herein or otherwise prohibit the consummation of the transactions contemplated hereunder.

 

3.5           Title to Shares.  Seller is the beneficial and record owner of all of the issued and outstanding Shares, free and clear of any Liens whatsoever.  Seller has good and marketable title to the Shares.  Upon consummation of the transactions provided for in this Agreement in accordance with the terms hereof, Buyer will acquire good and marketable title to all of the Shares, free and clear of any Liens whatsoever, other than transfer restrictions under federal and state securities laws and any Liens granted by Buyer.

 

  

5

  

 

3.6           SEC Filings; Financial Statements.

 

(a)           The Company and Seller have made available to Buyer a correct and complete copy, or there has been available on the EDGAR system maintained by the SEC, copies of each report, registration statement and definitive proxy statement filed by the Company with the SEC for the five (5) years prior to the date of this Agreement (the “SEC Reports”), which are all the forms, reports and documents filed by the Company with the SEC for the five (5) years prior to the date of this Agreement.  As of their respective dates, the SEC Reports: (i) were prepared in accordance and complied in all material respects with the requirements of the Securities Act or the Exchange Act, as the case may be, and the rules and regulations of the SEC thereunder applicable to such SEC Reports, and (ii) did not at the time they were filed (and if amended or superseded by a filing prior to the date of this Agreement then on the date of such filing and as so amended or superseded) contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(b)           The Company is subject to the reporting and filing requirements of the Exchange Act.  The Company is not aware of any deficient or outstanding filings or unresolved staff comments with the SEC as of the date of this Agreement in connection with any of its filing requirements

 

(c)           Each set of financial statements (including, in each case, any related notes thereto) contained in the SEC Reports (collectively, the “Financial Statements”) comply as to form in all material respects with the published rules and regulations of the SEC with respect thereto, were prepared in accordance with GAAP, applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited statements, do not contain footnotes as permitted by Form 10-Q promulgated under the Exchange Act) and each fairly presents in all material respects the financial position of the Company at the respective dates thereof and the results of its operations and cash flows for the periods indicated, except that the unaudited interim financial statements were or are subject to normal adjustments which were not or are not expected to have a Material Adverse Effect.

 

(d)           As of the date of all balance sheets included in the SEC Reports, except as and to the extent reflected or reserved against therein, the Company had no liabilities or obligations (absolute or contingent) which should be reflected in the balance sheets or the notes thereto prepared in accordance with GAAP, and all assets reflected therein are properly reported and present fairly the value of the assets of the Company, in accordance with GAAP.  All statements of operations, stockholders’ equity and cash flows included in the SEC Reports reflect fairly the information required to be set forth therein by GAAP.

 

(e)           Since January 1, 2006, the Company has maintained 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.

 

  

6

  

 

(f)           The books and records, financial and otherwise, of the Company are in all material aspects complete and correct and have been maintained in accordance with good business and accounting practices.

 

3.7           Exchange Act Compliance.  The Company is in compliance with, and current in, all of the reporting, filing and other requirements under the Exchange Act.  No capital stock of the Company is registered under Section 12(g) of the Exchange Act. All of the SEC Reports have been filed on a timely basis or have received a valid extension of such time of filing and have filed any such SEC Reports prior to the expiration of any such extension.

 

3.8           Absence of Undisclosed Liabilities.  The Company does not have any material debts, liabilities or obligations of any nature (whether accrued, absolute, contingent, direct, indirect, perfected, inchoate, unliquidated or otherwise and whether due or to become due) arising out of transactions entered into at or prior to the Closing, or any transaction, series of transactions, action or inaction at or prior to the Closing, or any state of facts or condition existing at or prior to the Closing (regardless of when such liability or obligation is asserted), including liabilities or obligations on account of Taxes or governmental charges or penalties, interest or fines thereon or in respect thereof, except for liabilities specifically delineated on the SEC Reports.

 

3.9           Absence of Certain Changes or Events.  Since the date of the Company’s December 31, 2010 balance sheet included in the SEC Reports:

 

(a)           There has not been a Material Adverse Effect;

 

(b)           The Company has not: (i) amended its Articles of Incorporation or Bylaws; (ii) declared or made, or agreed to declare or make any payment of dividends or distributions of any assets of any kind whatsoever to stockholders or purchased or redeemed, or agreed to purchase or redeem, any of its capital stock; (iii) waived any rights of value which in the aggregate are outside of the ordinary course of business or material considering the business of the Company; (iv) made any material change in its method of management, operation, or accounting; (v) entered into any transactions or agreements of any kind or nature; (vi) made any accrual or arrangement for or payment of bonuses or special compensation of any kind or any severance or termination pay to any present or former officer or employee; (vii) increased the rate of compensation payable or to become payable by it to any of its officers or directors or any of its salaried employees; or (viii) made any increase in any profit sharing, bonus, deferred compensation, insurance, pension, retirement, or other employee benefit plan, payment, or arrangement, made to, for or with its officers, directors, or employees;

 

(c)           The Company has not: (i) granted or agreed to grant any options, warrants, or other rights for its stock, bonds, or other corporate securities calling for the issuance thereof; (ii) borrowed or agreed to borrow any funds or incurred, or become subject to, any material obligation or liability (absolute or contingent); (iii) paid or agreed to pay any material obligations or liabilities (absolute or contingent) other than current liabilities reflected in or shown on the most recent Parent balance sheet and current liabilities incurred since that date in the ordinary course of business and professional and other fees and expenses in connection with the preparation of this Agreement and the consummation of the transaction contemplated hereby; (iv) sold or transferred, or agreed to sell or transfer, any of its assets, properties, or rights, or canceled, or agreed to cancel, any debts or claims; (v) made or permitted any amendment or termination of any contract, agreement, or license to which it is a party if such amendment or termination is material, considering the business of the Company; or (vi) issued, delivered or agreed to issue or deliver, any stock, bonds or other corporate securities including debentures (whether authorized and unissued or held as treasury stock), except in connection with this Agreement; and

 

  

7

  

 

(d)           The Company has not become subject to any law or regulation which materially and adversely affects, or in the future, may adversely affect, the business, operations, properties, assets or condition of the Company.

 

3.10           Material Contracts.

 

(a)           The Company is not a party to or bound by, and its assets, products, technology and properties are not bound by, any material contract, franchise, license agreement, agreement, debt instrument or other commitments whether such agreement is in writing or oral;

 

(b)           The Company is not a party to or bound by, and the properties of the Company are not subject to any contract, agreement, other commitment or instrument; any charter or other corporate restriction; or any judgment, order, writ, injunction, decree, or award which materially and adversely affects, the business operations, properties, assets, or condition of the Company;

 

(c)           The Company is not a party to any oral or written (i) contract for the employment of any officer or employee; (ii) profit sharing, bonus, deferred compensation, stock option, severance pay, pension benefit or retirement plan, (iii) agreement, contract, or indenture relating to the borrowing of money, (iv) guaranty of any obligation, other than one on which the Company is a primary obligor all of which are reflected in the Company balance sheet, for the borrowing of money or otherwise; (v) collective bargaining agreement; or (vi) agreement with any present or former employee, officer or director of the Company; and

 

(d)           (i) there exists no contract, agreement or arrangement between the Company and any predecessor and any person who was at the time of such contract, agreement or arrangement an officer, director, or person owning of record or known by the Company to own beneficially, five percent (5%) or more of the issued and outstanding capital stock of the Company and which is to be performed in whole or in part after the date hereof or was entered into not more than three years prior to the date hereof; (ii) no officer, director or five percent (5%) shareholder of the Company has, or has had since inception of the Company, any known interest, direct or indirect, in any such transaction with the Company which was material to the business of the Company; and (iii) the Company has no commitment, whether written or oral, to lend any funds to, borrow any money from, or enter into any other transaction with, any such affiliated person.

 

(e)           The Company is not in default in any respect under the terms of any outstanding contract, agreement, lease or other commitment which is material to the business, operations, properties, assets or condition of the Company and there is no event of default in any material respect under any such contract, agreement, lease or other commitment in respect of which the Company has not taken adequate steps to prevent such a default from occurring.

 

  

8

  

 

3.11           Licenses and Permits.  The Company holds all Permits that are legally required or necessary or material for the current conduct, ownership, use, occupancy or operation of the business of the Company or the Company’s real property.  The Company and Seller are in compliance in all material respects with such Permits, all of which are in full force and effect, and the Company has not received any notices (written or oral) to the contrary.

 

3.12           Noncontravention.  Neither the execution and delivery of this Agreement or any Transaction Documents by the Company or Seller, nor the consummation by the Company or Seller of the transactions contemplated herein or therein, nor compliance by the Company or Seller with any of the provisions hereof, will (a) conflict with or result in a breach of any provisions of the Company’s Articles of Incorporation or Bylaws, (b) constitute or result in the breach of any term, condition or provision of, or constitute a default under, or give rise to any right of termination, cancellation or acceleration with respect to, or result in the creation or imposition of a Lien upon the Shares, pursuant to any contract, franchise, license agreement, agreement, arrangement, debt instrument or other commitments or instruments to which the Company or Seller is a Party, (c) require a filing with or a Permit from any Governmental Authority, or (d) violate any order or law applicable to the Company or Seller or any of the property or assets of the Company or Seller.   No consent is necessary for the consummation by the Company and Seller of the transactions contemplated by this Agreement.

 

3.13           Title to Property.  The Company does not own or lease any real property or personal property.  There are no options or other contracts under which the Company has a right or obligation to acquire or lease any interest in real property or personal property.

 

3.14           Litigation.  There is no action, suit, proceeding or investigation pending or threatened by or against the Company or Seller, or affecting the Company or Seller or the properties of the Company or Seller, at law or in equity, before any court or other Governmental Authority, domestic or foreign, or before any arbitrator of any kind.  The Company is not in default with respect to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator or Governmental Authority.

 

3.15           Compliance With Laws and Regulations.  Each of Seller and the Company have complied with all applicable statutes and regulations of any federal, provincial, state or other applicable Governmental Authority.  This compliance includes, but is not limited to, the filing of all reports, filings and schedules to date with federal, provincial and state securities authorities. No authorization, approval, consent or order of, or registration, declaration or filing with, any court or other Governmental Authority is required in connection with the execution and delivery by Seller or the Company of this Agreement and the consummation by Seller or the Company of the transactions contemplated hereby.

 

3.16           Intellectual Property.  The Company does not own, license or otherwise have any right, title or interest in any intellectual property.

 

3.17           Employees; Employee Benefit Plans.  Except as disclosed in the SEC Reports, the Company has not had since its inception had, and does not currently have, any employees, officers, directors, agents or consultants.  The Company maintains no employee benefit plans or programs of any kind or nature.

 

  

9

  

 

3.18           Taxes.  The Company has no liabilities with respect to the payment of any federal, state, county, local or other Taxes (including any deficiencies, interest or penalties), except for Taxes accrued but not yet due and payable.  All Taxes due and payable by the Company have been paid in full or reserved for in the Financial Statements.  The liability for Taxes of the Company reflected in the Financial Statements will be sufficient in all material respects to provide for all interest, penalties, assessments or deficiencies which, as of the date hereof, were due and unpaid and the appropriate accrual for other unpaid Taxes not yet due.  The Company has timely filed all federal, state, county, local and foreign tax returns which it is required to have filed, and such returns are complete and correct in all material respects.  Any deficiencies proposed as a result of any governmental audits have been paid or settled, and there are no present disputes as to Taxes payable by the Company.  There are no unexpired waivers by the Company of any statute of limitations with respect to any Taxes, and the Company is not a party to any action or proceedings by any Governmental Authority for the collection or assessment of Taxes.

 

3.19           Company Debt.  Set forth on Schedule 3.19 attached hereto is a true and complete list of all Company Debt including the amount of principal and unpaid interest outstanding under each instrument evidencing such Company Debt as of the Closing Date and a description of the collateral, if any, securing such Company Debt.

 

3.20           Insurance Policies.  The Company does not hold or maintain, nor is the Company obligated to hold or maintain, any insurance on behalf for itself or its assets or for any officer, director, employee or stockholder of the Company.

 

3.21           Bank Accounts; Power of Attorney.  Set forth on Schedule 3.21 attached hereto is a true and complete list of: (a) all accounts with banks, money market mutual funds or securities or other financial institutions maintained by the Company within the past twelve (12) months, the account numbers thereof, and all persons authorized to sign or act on behalf of the Company, (b) all safe deposit boxes and other similar custodial arrangements maintained by the Company within the past twelve (12) months, (c) the check ledger for the last 12 months, and (d) the names of all persons holding powers of attorney from the Company or who are otherwise authorized to act on behalf of the Company with respect to any matter, other than its officers and directors, and a summary of the terms of such powers or authorizations.

 

3.22           Solvency.  The Company has not: (a) made a general assignment for the benefit of creditors; (b) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary petition by its creditors; (c) suffered the appointment of a receiver to take possession of all, or substantially all, of its assets; (d) suffered the attachment or other judicial seizure of all, or substantially all, of its assets; (e) admitted in writing its inability to pay its debts as they come due; or (f) made an offer of settlement, extension or composition to its creditors generally.

 

3.23           Foreign Corrupt Practices Act.  None of the Company, Seller nor any agent or other person acting on behalf of the Company or Seller, has, directly or indirectly: (a) used any funds, or will use any proceeds from the transactions contemplated hereby, for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (b) 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, or made any other unlawful payment, (c) failed to disclose fully any contribution made by the Company, Seller, any Person acting on behalf of the Company or Seller or any members of the Company’s management which is in violation of any legal requirement, or (d) has violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder which was applicable to the Company or Seller.

 

  

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3.24           OFAC.  None of the Company, Seller nor any director, officer, agent, employee, affiliate or person acting on behalf of the Company or Seller, is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company has not heretofore engaged in any transaction to lend, contribute or otherwise make available it funds or the funds of any joint venture partner or other person or entity towards any sales or operations in Cuba, Iran, Syria, Sudan, Myanmar or any other country sanctioned by OFAC or for the purpose of financing the activities of any person or entity currently subject to any U.S. sanctions administered by OFAC.

 

3.25           No Misrepresentation.  The information concerning the Company and Seller set forth in this Agreement, including the representations and warranties of Seller set forth in this Agreement or in any of the certificates, schedules, lists, documents, exhibits, or other instruments delivered, or to be delivered, to Seller as contemplated by any provision hereof (including, but not limited to, the Transaction Documents), is complete and accurate in all material respects and does not contain any untrue statements of a material fact or omit to state a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading.

 

3.26           Brokers.  No broker, finder or similar agent has been employed by or on behalf of the Company or Seller, and no Person with which the Company or Seller has had any dealings or communications of any kind is entitled to any brokerage commission or finder’s fee in connection with this Agreement or the transactions contemplated hereby.

 

ARTICLE 4

BUYER’S REPRESENTATIONS AND WARRANTIES

 

Buyer hereby represents and warrants to Seller as of the date hereof as follows:

 

4.1           Organization.  Buyer is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware.

 

4.2           Authorization.  Buyer has full power, right and authority to enter into and perform his obligations under this Agreement and each of the Transaction Documents to which Buyer is a party and to consummate the transactions contemplated hereby and thereby.  This Agreement and each of the Transaction Documents to which Buyer is a party have been duly executed and delivered by Buyer and constitute the legal, valid and binding obligations, enforceable against Buyer in accordance with their respective terms, except as limited by (a) applicable bankruptcy, reorganization, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally from time to time in effect and (b) the availability of equitable remedies (regardless of whether enforceability is considered in a proceeding at law or in equity).  No permits, approvals or consents of or notifications to (x) any Governmental Authorities or (y) any other Persons are necessary in connection with the execution, delivery and performance by Buyer of this Agreement, the other Transaction Documents and the consummation by Buyer of the transactions contemplated hereby and thereby.

 

  

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4.3           Noncontravention.  The execution, delivery and performance of this Agreement and the Transaction Documents by Buyer will not violate and conflict with, or result in the breach of any of the terms, conditions, or provisions of Buyer’s Certificate of Incorporation or Bylaws or of any contract, agreement, mortgage, or other instrument or obligation of any nature to which Buyer is a party or by which Buyer is bound.

 

4.4           No Misrepresentation.  None of the representations and warranties of Buyer set forth in this Agreement or in any of the certificates, schedules, lists, documents, exhibits, or other instruments delivered, or to be delivered, to Seller as contemplated by any provision hereof (including, but not limited to, the Transaction Documents), contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements contained herein or therein not misleading.

 

ARTICLE 5

CLOSING DELIVERABLES

 

5.1           Deliveries of the Seller.  At the Closing, Seller will execute and deliver or cause to be executed and delivered to Buyer:

 

(a)           a release in the form attached hereto as Exhibit A;

 

(b)           a certificate dated the Closing Date and signed by Seller, certifying that (i) there are no existing liabilities of the Company as of the Closing Date, and (ii) there are no actions, suits, proceedings or investigations pending or threatened, which might result in an action to enjoin or prevent the consummation of the transactions contemplated by this Agreement, or which might result in a Material Adverse Effect;

 

(c)           the original stock certificates representing the Shares, with duly executed stock powers attached thereto in proper form for transfer;

 

(d)           a certificate of good standing for the Company, dated not more than ten (10) business days prior to the Closing Date, issued by the Secretary of State of the State of Nevada;

 

(e)           the Articles of Incorporation of the Company certified by the Secretary of State of the State of Nevada and a copy of the bylaws of the Company, certified by an officer of the Company;

 

(f)           copies of resolutions of the Board of Directors of the Company, certified by the Secretary of the Company as having been duly and validly adopted and being in full force and effect, authorizing the execution and delivery of this Agreement and the Transaction Documents and the performance of the Company’s obligations under this Agreement and the Transaction Documents;

 

(g)           all consents, approvals, waivers or amendments pursuant to all contracts, licenses, permits, trademarks and other intangibles in connection with the transactions contemplated herein, or for the continued operation of the Company after the Closing Date on the basis as presently operated;

 

  

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(h)           the written resignation of all the officers and directors of the Company, effective as of the Closing;

 

(i)           all minute books, stock ledgers and similar corporate records of the Company; and

 

(j)           such other documents and instruments as Buyer or its counsel reasonably shall deem necessary to consummate the transactions contemplated hereby.

 

All documents delivered to Buyer shall be in form and substance reasonably satisfactory to Buyer.

 

5.2           Deliveries of Buyer.  At the Closing, Buyer will deliver to Seller simultaneously with the delivery of the items referred to in Section 5.1 above:

 

(a)           the payment of the Purchase Price, as provided in Section 2.3; and

 

(b)           such other documents and instruments as Seller or its counsel reasonably shall deem necessary to consummate the transactions contemplated hereby.

 

All documents delivered to Seller shall be in form and substance reasonably satisfactory to Seller.

 

ARTICLE 6

COVENANTS AND AGREEMENTS

 

6.1           Indemnification.

 

(a)           From and after the Closing, Seller agrees to indemnify, defend, save and hold harmless Buyer and its respective Affiliates, and their respective directors, officers, shareholders, employees and agents (each, a “Buyer Indemnified Party”), from and against any and all loss, liability, cost, damage, deficiency, Tax, penalty, fine or expense, whether or not arising out of any claims by or on behalf of any party to this Agreement or any third-party claims, including interest, reasonable attorneys’, consultants’ and experts’ fees and expenses and all amounts paid in investigation, defense or settlement of any of the foregoing (individually and collectively, the “Losses”) sustained or incurred by any Buyer Indemnified Party relating to, resulting from, based upon or arising out of any breach of any representations or warranties of Seller set forth in Article 3; provided, however, that the Company shall not be liable for any portion of any Loss(es) resulting from a breach by Buyer of any of its obligations under this Agreement or from Buyer’s gross negligence, fraud or willful misconduct.

 

(b)           From and after the Closing, Buyer agrees to indemnify, defend, save and hold harmless Seller and its respective Affiliates, and their respective directors, officers, shareholders, employees and agents (each, a “Seller Indemnified Party”), from and against any and all Losses sustained or incurred by any Seller Indemnified Party relating to, resulting from or arising out of any breach of the representations of Buyer set forth in Article 4; provided, however, that  Buyer shall not be liable for any portion of any Loss(es) resulting from a breach by the Company of any of its obligations under this Agreement or from the Company’s gross negligence, fraud or willful misconduct.

 

  

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(c)           Notwithstanding anything herein to the contrary, in no event shall the aggregate indemnity obligations hereunder of Buyer to the Company Indemnified Parties exceed Fifty Thousand Dollars ($50,000).

 

6.2           Further Cooperation.  Following the Closing, upon the terms and subject to the conditions set forth in this Agreement, each of the parties agrees that it shall use its commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations to consummate and make effective this Agreement and the transactions contemplated herein, including executing all documents and taking such other actions as another party may reasonably request in order to consummate the transactions provided for herein and to accomplish the purposes of this Agreement.

 

6.3           Remedies.  Buyer and Seller agree that the covenants and obligations contained in this Agreement relate to special, unique and extraordinary matters and that a violation of any of the terms hereof or thereof would cause irreparable injury in an amount which would be impossible to estimate or determine and for which any remedy at law would be inadequate.  As such, Buyer and Seller agree that if either such party fails or refuses to fulfill any of its respective obligations under this Agreement or the other Transaction Documents or to make any payment or deliver any instrument required hereunder or thereunder, then the other such party shall have the remedy of specific performance, which remedy shall be cumulative and nonexclusive and shall be in addition to any other rights and remedies otherwise available under any other contract or at law or in equity and to which such other party might be entitled.

 

6.4           Survival.  The representations and warranties of the parties shall survive indefinitely.  With respect to the covenants and agreements contained in this Agreement that contemplate performance after the Closing Date (including the provisions of this Article 6), such obligations shall survive until the expiration of the applicable statute of limitations.

 

ARTICLE 7

MISCELLANEOUS

 

7.1           Notices, Consents, etc.  Any and all notices, requests or other communications hereunder shall be given in writing and delivered by: (a) regular, overnight or registered or certified mail (return receipt requested), with first class postage prepaid; (b) hand delivery; (c) facsimile transmission; or (d) overnight courier service, to the parties at the following addresses or facsimile numbers:

 

(a)           If to Seller:

 

John Holcomb

146 Parkside Lane

Mooresville, North Carolina 28117

Tel:      (704) 660-0546

Fax:     [____]

 

  

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with a copy to:

John F. Hanzel, P.A.

19425-G Liverpool Parkway

Cornelius, NC 28031

Tel:  (704) 892-1375

Fax:  (704) 892-5784

 

(b)           If to Buyer:

 

Sustainable Growth Group America, Inc.

610 1st Street

Vero Beach, Florida 32962

Attn: David B. Stockard

Tel:  (772) 492-9310

Fax:  (772) 492-9329

 

with a copy to:

Katten Muchin Rosenman LLP

575 Madison Avenue

New York, New York 10022

Attn: Evan L. Greebel, Esq.

Tel:    (212) 940-6383

Fax:    (212) 940-5883

 

or at such other address or number as shall be designated by either of the parties in a notice to the other party given in accordance with this Section 7.1.  Except as otherwise provided in this Agreement, all such communications shall be deemed to have been duly given: (a) in the case of a notice sent by regular or registered or certified mail, three business days after it is duly deposited in the mails; (b) in the case of a notice delivered by hand, when personally delivered; (c) in the case of a notice sent by facsimile, upon transmission subject to telephone confirmation of receipt; and (d) in the case of a notice sent by overnight mail or overnight courier service, the next business day after such notice is mailed or delivered to such courier, in each case given or addressed as aforesaid.

 

7.2           Public Announcements.  No party shall make any public announcement or filing with respect to the transactions provided for herein without the prior consent of the other party hereto.  To the extent reasonably feasible, any press release or other announcement or notice regarding the transactions contemplated by this Agreement shall be made jointly by the parties.

 

7.3           Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without giving effect 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 (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 County of New York, in the State of New York.  Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the County of New York, in the State of New York for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, 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.  Each party hereto 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 manner permitted by law.  EACH PARTY HERETO (INCLUDING ITS AFFILIATES, AGENTS, OFFICERS, DIRECTORS AND EMPLOYEES) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

  

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7.4           Severability.  The invalidity or unenforceability of any term, phrase, clause, paragraph, restriction, covenant, agreement or other provision of this Agreement shall in no way affect the validity or enforcement of any other provision or any part thereof.

 

7.5           Amendment and Waiver.  Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or existing.  At any time prior to the Closing Date, this Agreement may by amended by a writing signed by all parties hereto, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance may be extended by a writing signed by the party or parties for whose benefit the provision is intended.

 

7.6           Counterparts.  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, 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 signature page were an original thereof.

 

7.7           Expenses.  Each of the parties hereto will bear their own respective expenses, including legal, accounting and professional fees, incurred in connection with negotiating and preparing this Agreement and in closing and carrying out the transactions contemplated by this Agreement; provided, however, that Seller shall bear all such expenses incurred by the Company.

 

7.8           Headings.  The subject headings of Articles and Sections of this Agreement are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions.

 

  

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7.9           Assignment.  This Agreement is intended to bind and inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns.  This Agreement will not be assignable or delegable by either party without the prior written consent of the other party; provided, however, that nothing in this Agreement will limit Buyer’s ability to assign its rights or delegate its responsibilities, liabilities, and obligations under this Agreement to any person at any time without the consent of Seller.

 

7.10           Entire Agreement.  This Agreement represents the entire agreement between the parties relating to the subject matter thereof and supersedes all prior agreements, understandings and negotiations, written or oral, with respect to such subject matter.

 

7.11           Third Parties.  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 or entity.

 

7.12           Interpretative Matters.  Unless the context otherwise requires, (a) all references to Articles, Sections, Exhibits or Schedules are to Articles, Sections, Exhibits or Schedules in or attached to this Agreement, (b) each accounting term not otherwise defined in this Agreement has the meaning assigned to it in accordance with GAAP, and (c) words in the singular or plural include the singular and plural and pronouns stated in either the masculine, the feminine or neuter gender shall include the masculine, feminine and neuter and the term “including” shall mean by way of example and not by way of limitation.

 

7.13           No Strict Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction will be applied against any party hereto.

 

[Signature page follows]

 

  

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

 

	 	 
BUYER:

	 
	 	 	 
	 	 
SUSTAINABLE GROWTH GROUP AMERICA, INC.

	 
	 	 	 	 
	 	
By: 

	/s/ Gregg Fryett	 
	 	 	Name: Gregg Fryett	 
	 	 	Title: Chairman	 
	 	 	 	 
	 	 	 	 
	 	 
SELLER:

	 
	 	 	 	 
	 	 
/s/ John Holcomb

	 
	 	John Holcomb	 
	 	 	 	 
	 	 	 	 
	 	 
COMPANY:

	 
	 	 	 	 
	 	 
BONANZA ONE, INC.

	 
	 	 	 	 
	 	 
By: 

	/s/ John Holcomb	 
	 	 	Name: John Holcomb	 
	 	 	Title: President	 

 

 

STOCK PURCHASE AGREEMENT

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