Document:

Exhibit

Registration Rights Agreement
Dated as of August 15, 2017
between
Norfolk Southern Corporation
and
Merrill Lynch, Pierce, Fenner & Smith Incorporated
and
Morgan Stanley & Co. LLC and 
Wells Fargo Securities, LLC

REGISTRATION RIGHTS AGREEMENT
This Registration Rights Agreement (the “Agreement”) is made and entered into this 15th day of August, 2017, between Norfolk Southern Corporation, a Virginia corporation (the “Company”), and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) and Morgan Stanley & Co. LLC (“Morgan Stanley”) and Wells Fargo Securities, LLC. (together with Merrill Lynch and Morgan Stanley, the “Dealer Managers” and each, a “Dealer Manager”).
The Company and each of the Dealer Managers are parties to the Dealer Manager Agreement, dated July 31, 2017, between the Company and the Dealer Managers (the “Dealer Manager Agreement”) under which the Dealer Managers have agreed to act as dealer managers in respect of the Company’s offers to exchange its outstanding 7.900% Notes due 2097, 6.000% Notes due 2111, 6.000% Notes due 2105, 7.050% Notes due 2037, 7.250% Notes due 2031, 7.800% Notes due 2027, 4.800% Notes due 2043 and 4.650% Notes due 2046 for a combination of (1) a cash payment and (2) up to $750,000,000 aggregate principal amount of the Company’s 4.050% Notes due 2052 (the “Securities”), as set forth in the Confidential Offering Memorandum dated July 31, 2017 and the press release issued by the Company on August 11, 2017 related thereto.  In order to induce the Dealer Managers to enter into the Dealer Manager Agreement, the Company has agreed with the Dealer Managers for the benefit of the holders of the Securities and their direct and indirect transferees to provide the registration rights set forth in this Agreement.
In consideration of the foregoing, the parties hereto agree as follows:
1.Definitions.
As used in this Agreement, the following capitalized defined terms shall have the following meanings:
“1933 Act” shall mean the Securities Act of 1933, as amended from time to time.
“1934 Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.
“Company” shall have the meaning set forth in the preamble and shall also include the Company’s successors.
“Dealer Manager Agreement” shall have the meaning set forth in the preamble.
“Depositary” shall mean The Depository Trust Company, or any other depositary appointed by the Company, provided, however, that such depositary must have an address in the Borough of Manhattan, in the City of New York.
“Exchange Notes” shall mean the 4.050% Notes due 2052 to be issued by the Company under the Indenture, having terms identical to the Securities, in all material respects (except that the Exchange Notes shall not be subject to the provisions hereof, restrictions on transfers and restrictive legends applicable to the Securities), to be offered to Holders of 

Securities in exchange for Transfer Restricted Securities pursuant to the Registered Exchange Offer.
“Exchange Offer Registration” shall mean a registration under the 1933 Act effected pursuant to Section 2.1 hereof.
“Exchange Offer Registration Statement” shall mean an exchange offer registration statement on Form S‐4 (or, if applicable, on another appropriate form), and all amendments and supplements to such registration statement, including the Prospectus contained therein, all exhibits thereto and all documents incorporated by reference therein.
“Exchange Period” shall have the meaning set forth in Section 2.1 hereof.  
“Final Closing Date” shall mean August 15, 2017.
“Holder” shall mean holders or beneficial owners of Transfer Restricted Securities issued under the Indenture and each Participating Broker-Dealer that is a holder or beneficial owner of Exchange Notes for so long as such Participating Broker-Dealer is required to deliver a prospectus meeting the requirements of the 1933 Act in connection with any resale of such Exchange Notes.
“Indenture” shall mean the Indenture relating to the Securities, dated as of the date hereof, between the Company and U.S. Bank National Association, as trustee, as the same may be amended, supplemented, waived or otherwise modified from time to time in accordance with the terms thereof.
“Majority Holders” shall mean the Holders (as such term is defined in the Indenture) of a majority of the aggregate principal amount of Transfer Restricted Securities Outstanding (as defined, with respect to a Transfer Restricted Security, under the Indenture); provided that whenever the consent or approval of Holders of a specified percentage of Transfer Restricted Securities is required hereunder, Transfer Restricted Securities held by the Company or any Affiliate (as such term is defined in the Indenture) of the Company shall be disregarded in determining whether such consent or approval was given by the Holders of such required percentage amount.
“Participating Broker-Dealer” shall mean any of the Dealer Managers and any other broker-dealer that receives Exchange Notes for its own account in the Registered Exchange Offer in exchange for Transfer Restricted Securities that were acquired by such broker-dealer as a result of market-making activities or other trading activities.
“Person” shall mean an individual, partnership (general or limited), corporation, limited liability company, trust or unincorporated organization, or a government or agency or political subdivision thereof.
“Prospectus” shall mean the prospectus included in a Registration Statement, including any preliminary prospectus, and any such prospectus as amended or supplemented by 

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any prospectus supplement, including any such prospectus supplement with respect to the terms of the offering of any portion of the Transfer Restricted Securities covered by a Shelf Registration Statement, and by all other amendments and supplements to a prospectus, including post-effective amendments, and in each case including all material incorporated by reference therein.
“Registered Exchange Offer” shall mean the exchange offer by the Company of the Exchange Notes for Transfer Restricted Securities pursuant to Section 2.1 hereof.
“Registration Expenses” shall mean any and all expenses incident to performance of or compliance by the Company with this Agreement, including without limitation: (i) all SEC, stock exchange or Financial Industry Regulatory Authority (“FINRA”) registration and filing fees, including, if applicable, the fees and expenses of any “qualified independent underwriter” (and the reasonable fees and disbursements of its counsel) that is required to be retained by any holder of Transfer Restricted Securities in accordance with the rules and regulations of FINRA, (ii) all fees and expenses incurred in connection with compliance with state securities or blue sky laws and compliance with the rules of FINRA (including reasonable fees and disbursements of counsel for any underwriters or Holders in connection with blue sky qualification of any of the Exchange Notes or Transfer Restricted Securities and any filings with FINRA), (iii) all expenses of any Persons in preparing or assisting in preparing, word processing, printing and distributing any Registration Statement, any Prospectus, any amendments or supplements thereto, any underwriting agreements, securities sales agreements and other documents relating to the performance of and compliance with this Agreement, (iv) all fees and expenses incurred in connection with the listing, if any, of any of the Transfer Restricted Securities on any securities exchange or exchanges, (v) all rating agency fees, (vi) the fees and disbursements of counsel for the Company and of the independent registered public accounting firm of the Company, including the expenses of any special audits or “comfort” letters required by or incident to such performance and compliance, (vii) the fees and expenses of the Trustee, and any escrow agent or custodian, (viii) the reasonable fees and expenses of the Dealer Managers in connection with the Registered Exchange Offer, including the reasonable fees and expenses of counsel to the Dealer Managers in connection therewith, (ix) the reasonable fees and disbursements of Sidley Austin LLP, special counsel representing the Holders of Transfer Restricted Securities (the “Special  Counsel”) and (x) any fees and disbursements of the underwriters customarily required to be paid by issuers or sellers of securities and the fees and expenses of any special experts retained by the Company in connection with any Registration Statement, but excluding underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition of Transfer Restricted Securities by a Holder.
“Registration Statement” shall mean any registration statement of the Company which covers any of the Exchange Notes or Transfer Restricted Securities pursuant to the provisions of this Agreement, and all amendments and supplements to any such Registration Statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein.

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“SEC” shall mean the United States Securities and Exchange Commission or any successor agency or government body performing the functions currently performed by the United States Securities and Exchange Commission.
“Shelf Registration” shall mean a registration effected pursuant to Section 2.2 of this Agreement.
“Shelf Registration Statement” shall mean a “shelf’ registration statement of the Company pursuant to the provisions of Section 2.2 of this Agreement which covers all of the Transfer Restricted Securities on an appropriate form under Rule 415 under the 1933 Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein.
“Transfer Restricted Securities” shall mean the Securities; provided, however, that Securities shall cease to be Transfer Restricted Securities on the earliest to occur of (i) the date on which such Securities have been exchanged by a Person other than a Participating Broker-Dealer for an Exchange Note in the Registered Exchange Offer, (ii) following the exchange by a Participating Broker-Dealer in the Registered Exchange Offer of a Security for an Exchange Note, the date on which such Exchange Note is sold to a purchaser who receives from such Participating Broker-Dealer on or prior to the date of such sale a copy of the Prospectus contained in the Exchange Offer Registration Statement, (iii) the date on which such Securities have been effectively registered under the 1933 Act and disposed of in accordance with the Shelf Registration Statement or (iv) the date on which such Securities are distributed to the public pursuant to Rule 144 under the 1933 Act.  Anything herein to the contrary notwithstanding, in any case where a Participating Broker-Dealer receives an Exchange Note in the Registered Exchange Offer, such Exchange Note shall be considered a Transfer Restricted Security until such time as it ceases to be a Transfer Restricted Security pursuant to clause (ii), (iii) or (iv) of the preceding sentence.
“Trustee” shall mean the trustee with respect to the Securities under the Indenture.
2.    Registration Under the 1933 Act.
2.1    Registered Exchange Offer.  The Company shall, for the benefit of the Holders, at the Company’s cost, (A) prepare and file with the SEC an Exchange Offer Registration Statement, within 180 days of the Final Closing Date, on an appropriate form under the 1933 Act with respect to offers for the issuance and delivery to the Holders, in exchange for the Transfer Restricted Securities, of a like principal amount of Exchange Notes, (B) use all commercially reasonable efforts to cause the Exchange Offer Registration Statement to be declared effective under the 1933 Act within 270 days of the Final Closing Date, (C) use all commercially reasonable efforts to keep the Exchange Offer Registration Statement effective until the closing of the Registered Exchange Offer and thereafter for so long as Participating Broker-Dealers are required to deliver a prospectus meeting the requirements of the 1933 Act in connection with any resales of Exchange Notes (such period shall in no event exceed 270 days 

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after the closing of the Registered Exchange Offer) and (D) use all commercially reasonable efforts to issue on or prior to 30 days, or longer, if required by United States federal securities laws, after the date on which the Exchange Offer Registration Statement was declared effective by the SEC, Exchange Notes in exchange for all Transfer Restricted Securities tendered prior thereto in the Registered Exchange Offer.
Upon the effectiveness of the Exchange Offer Registration Statement, the Company shall promptly commence the Registered Exchange Offer, it being the objective of such Registered Exchange Offer to enable each Holder eligible and electing to exchange Transfer Restricted Securities for Exchange Notes (assuming that such Holder (a) is not an affiliate of the Company within the meaning of Rule 405 under the 1933 Act, (b) is not a broker-dealer tendering Transfer Restricted Securities acquired directly from the Company for its own account, (c) acquired the Exchange Notes in the ordinary course of such Holder’s business and (d) has no arrangements or understandings with any Person to participate in the Registered Exchange Offer for the purpose of distributing the Exchange Notes) to transfer such Exchange Notes from and after their receipt without any limitations or restrictions under the 1933 Act and under state securities or blue sky laws.
In connection with the Registered Exchange Offer, the Company shall:
(a)    make available as promptly as practicable to each Holder a copy of the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related documents;
(b)    keep the Registered Exchange Offer open for acceptance for a period of not less than 30 calendar days after the date notice thereof is mailed to the Holders (or longer if required by applicable law) (such period referred to herein as the “Exchange  Period”);
(c)    utilize the services of the Depositary for the Registered Exchange Offer;
(d)    permit Holders to withdraw tendered Transfer Restricted Securities at any time prior to 5:00 p.m. (Eastern Time), on the last business day of the Exchange Period, by sending to the institution specified in the notice, a facsimile transmission or letter setting forth the name of such Holder, the principal amount of Transfer Restricted Securities delivered for exchange, and a statement that such Holder is withdrawing such Holder’s election to have such Transfer Restricted Securities exchanged;
(e)    notify each Holder that any Transfer Restricted Security not tendered will remain outstanding and continue to accrue interest, but will not retain any rights under this Agreement (except in the case of Participating Broker-Dealers as provided herein); and
(f)    otherwise comply in all respects with all applicable laws relating to the Registered Exchange Offer.

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The Exchange Notes shall be issued under the Indenture.  The Indenture has or, prior to the issuance of the Exchange Notes, shall have been qualified under the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”).
As soon as practicable after the close of the Registered Exchange Offer the Company shall:
(i)    accept for exchange all Transfer Restricted Securities duly tendered and not validly withdrawn pursuant to the Registered Exchange Offer in accordance with the terms of the Exchange Offer Registration Statement and the letter of transmittal which shall be an exhibit thereto;
(ii)    deliver to the Trustee for cancellation all Transfer Restricted Securities so accepted for exchange; and
(iii)    cause the Trustee promptly to authenticate and deliver Exchange Notes to each Holder of Transfer Restricted Securities so accepted for exchange in a principal amount equal to the principal amount of the Transfer Restricted Securities of such Holder so accepted for exchange.
Interest on each Exchange Note will accrue from the last date on which interest was paid on the Transfer Restricted Securities surrendered in exchange therefor or, if no interest has been paid on such Transfer Restricted Securities, from the date of original issuance.  The Registered Exchange Offer shall not be subject to any conditions, other than (i) that the Registered Exchange Offer or the making of any exchange by a Holder does not violate applicable law or any applicable interpretation of the staff of the SEC, (ii) the due tendering of Transfer Restricted Securities in accordance with such Registered Exchange Offer, (iii) that each Holder of Transfer Restricted Securities exchanged in such Registered Exchange Offer shall have represented that all Exchange Notes to be received by it shall be acquired in the ordinary course of its business and that at the time of the consummation of such Registered Exchange Offer it shall have no arrangement or understanding with any Person to participate in the distribution (within the meaning of the 1933 Act) of the Exchange Notes and shall have made such other representations as may be reasonably necessary under applicable SEC rules, regulations or interpretations to render the use of Form S‐4 or other appropriate form under the 1933 Act available and (iv) that no action or proceeding shall have been instituted or threatened in any court or by or before any governmental agency with respect to such Registered Exchange Offer which, in the Company’s judgment, would reasonably be expected to impair the ability of the Company to proceed with such Registered Exchange Offer.
2.2    Shelf Registration.  If with respect to the Registered Exchange Offer (i) the Company is not (A) required to file the Exchange Offer Registration Statement or (B) permitted to consummate the Registered Exchange Offer as contemplated by Section 2.1 hereof, in either case, because such Registered Exchange Offer is not permitted by applicable law or SEC policy, or (ii) any Holder of Transfer Restricted Securities notifies the Company after commencement of the Registered Exchange Offer and prior to the 20th business day following consummation of the Registered Exchange Offer that (A) it is prohibited by law or SEC policy 

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from participating in such Registered Exchange Offer, (B) it may not resell the Exchange Notes acquired by it in such Registered Exchange Offer to the public without delivering a prospectus and the Prospectus contained in the Exchange Offer Registration Statement is not appropriate or available for such resales or (C) it is a broker-dealer and owns Transfer Restricted Securities subject to such Registered Exchange Offer acquired directly from the Company or an Affiliate of the Company, the Company will:
(a)    As promptly as practicable, but no later than 45 days after the occurrence of such event, file with the SEC a Shelf Registration Statement to cover resales of the applicable Transfer Restricted Securities by the Holders of such Transfer Restricted Securities from time to time who satisfy the conditions set forth in Section 3(v) hereof relating to the provision of information in connection with the Shelf Registration Statement.
(b)    Use all commercially reasonable efforts to cause the Shelf Registration Statement to become effective under the 1933 Act no later than 90 days after the occurrence of such event.
(c)    Use all commercially reasonable efforts to keep the Shelf Registration Statement continuously effective in order to permit the Prospectus forming part thereof to be usable by Holders for a period of two years from the date the Shelf Registration Statement becomes effective under the 1933 Act, or for such shorter period that will terminate when all Transfer Restricted Securities covered by the Shelf Registration Statement have been sold pursuant to the Shelf Registration Statement or cease to be outstanding or otherwise to be Transfer Restricted Securities (the “Effectiveness  Period”); provided, however, that the Effectiveness Period in respect of the Shelf Registration Statement shall be extended to the extent required to permit dealers to comply with the applicable prospectus delivery requirements of Rule 174 under the 1933 Act and as otherwise provided herein.
(d)    Notwithstanding any other provisions hereof, use all commercially reasonable efforts to ensure that (i) any Shelf Registration Statement and any amendment thereto and any Prospectus forming part thereof and any supplement thereto complies in all material respects with the 1933 Act and the rules and regulations thereunder, (ii) any Shelf Registration Statement and any amendment thereto does not, when it becomes effective, 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 and (iii) any Prospectus forming part of any Shelf Registration Statement, and any supplement to such Prospectus (as amended or supplemented from time to time), does not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements, in light of the circumstances under which they were made, not misleading.
The Company shall not permit any securities other than Transfer Restricted Securities to be included in the Shelf Registration Statement.  The Company further agrees, if necessary, to supplement or amend the Shelf Registration Statement, as required by Section 3(b) 

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below, and to furnish to the Holders of Transfer Restricted Securities copies of any such supplement or amendment promptly after its being used or filed with the SEC.
2.3    Expenses.  The Company shall pay all Registration Expenses in connection with the registration pursuant to Section 2.1 or 2.2.  Each Holder shall pay all underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s Transfer Restricted Securities pursuant to the Shelf Registration Statement.
2.4    Effectiveness.  (a) The Company will be deemed not to have used all commercially reasonable efforts to cause the Exchange Offer Registration Statement or the Shelf Registration Statement, as the case may be, to become, or to remain, effective during the requisite period if the Company voluntarily takes any action that would, or omits to take any action which omission would, result in any such Registration Statement not being declared or becoming effective or in the Holders of Transfer Restricted Securities covered thereby not being able to exchange or offer and sell such Transfer Restricted Securities during that period as and to the extent contemplated hereby, unless such action is required by applicable law.
(a)    An Exchange Offer Registration Statement pursuant to Section 2.1 hereof or a Shelf Registration Statement pursuant to Section 2.2 hereof will not be deemed to have become effective unless it has been declared effective by the SEC or has otherwise become effective under the 1933 Act; provided, however, that if, after it has been declared or has otherwise become effective, the offering of Exchange Notes pursuant to an Exchange Offer Registration Statement or Transfer Restricted Securities pursuant to a Shelf Registration Statement is interfered with by any stop order, injunction or other order or requirement of the SEC or any other governmental agency or court, such Registration Statement will be deemed not to have become effective during the period of such interference, until the offering of Exchange Notes or Transfer Restricted Securities pursuant to such Registration Statement may legally resume.
2.5    Additional Interest.  If (a) the Company fails to file any of the Registration Statements required by this Agreement on or before the date specified herein for such filing, (b) the Exchange Offer Registration Statement or the Shelf Registration Statement, as applicable, has not been declared effective by the SEC or has not otherwise become effective under the 1933 Act on or prior to the deadlines for effectiveness specified in Section 2.1 and Section 2.2 of this Agreement (the “Effectiveness Target Date”), (c) the Company fails to consummate the Registered Exchange Offer within 30 days of the Effectiveness Target Date with respect to the Exchange Offer Registration Statement or (d) the Shelf Registration Statement or the Exchange Offer Registration Statement, as applicable, is declared or becomes effective but thereafter ceases to be effective or usable in connection with resales of Transfer Restricted Securities during the periods specified in this Agreement (each such event referred to in clauses (a) through (d) above, a “Registration Default”), the Company shall be required to pay to the Holders of the Securities an additional amount (“Additional Interest”) on such Securities equal to one-quarter of one percent per annum of the principal amount of such Securities, which amount will increase by one quarter of one percent per annum each 90-day period that such Additional Interest continues 

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to accrue under any such circumstance, provided that the maximum aggregate amount of Additional Interest payable hereunder will in no event exceed one half of one percent per annum.  Following the cure of all Registration Defaults, the accrual of Additional Interest will cease.
The Company shall notify the Trustee within three business days after each and every date on which an event occurs in respect of which Additional Interest is required to be paid (an “Event Date”).  Additional Interest shall be paid by depositing with the Trustee, in trust, for the benefit of the Holders of Transfer Restricted Securities, on or before the applicable semiannual interest payment date, immediately available funds in sums sufficient to pay the Additional Interest then due.  The Additional Interest due shall be payable on each interest payment date to the record Holder of Securities entitled to receive the interest payment to be paid on such date as set forth in the Indenture.  Each obligation to pay Additional Interest shall be deemed to accrue from and including the day following the applicable Event Date.
3.    Registration Procedures.
In connection with the obligations of the Company with respect to Registration Statements pursuant to Sections 2.1 and 2.2 hereof, the Company shall:
(a)    prepare and file with the SEC a Registration Statement on the appropriate form under the 1933 Act, which form (i) shall be selected by the Company, (ii) shall, in the case of a Shelf Registration Statement, be available for the sale of the Transfer Restricted Securities by the selling Holders thereof, (iii) shall comply as to form in all material respects with the requirements of the applicable form and include or incorporate by reference all financial statements required by the SEC to be filed therewith or incorporated by reference therein, and (iv) shall comply in all material respects with the requirements of Regulation S-T under the 1933 Act, and use all commercially reasonable efforts to cause such Registration Statement to become effective and remain effective in accordance with Section 2 hereof;
(b)    prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary under applicable law to keep such Registration Statement effective for the applicable period; and cause each Prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provision then in force) under the 1933 Act and comply with the provisions of the 1933 Act, the 1934 Act and the rules and regulations thereunder applicable to them with respect to the disposition of all securities covered by each Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the selling Holders thereof (including sales by any Participating Broker-Dealer);
(c)    in the case of a Shelf Registration, (i) notify each Holder of Transfer Restricted Securities to which its obligation to file a Shelf Registration Statement applies, at least five business days prior to filing, that a Shelf Registration Statement with respect to such Transfer Restricted Securities is being filed and advising such Holders that the distribution of such Transfer Restricted Securities will be made in accordance with the 

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method selected by the Majority Holders; (ii) furnish to each Holder of such Transfer Restricted Securities and to each underwriter of an underwritten offering of such Transfer Restricted Securities, if any, without charge, as many copies of each Prospectus, including each preliminary Prospectus, and any amendment or supplement thereto and such other documents as such Holder or underwriter may reasonably request, including financial statements and schedules and, if the Holder so requests, all exhibits in order to facilitate the public sale or other disposition of such Transfer Restricted Securities; and (iii) hereby consent to the use of the Prospectus or any amendment or supplement thereto by each of the selling Holders of such Transfer Restricted Securities in connection with the offering and sale of the Transfer Restricted Securities covered by the Prospectus or any amendment or supplement thereto;
(d)    use all commercially reasonable efforts to register or qualify the Transfer Restricted Securities under all applicable state securities or “blue sky” laws of such jurisdictions as any Holder of Transfer Restricted Securities covered by a Registration Statement and each underwriter of an underwritten offering of Transfer Restricted Securities shall reasonably request by the time the applicable Registration Statement is declared effective by the SEC, and do any and all other acts and things which may be reasonably necessary or advisable to enable each such Holder and underwriter to consummate the disposition in each such jurisdiction of such Transfer Restricted Securities owned by such Holder; provided, however, that the Company shall not be required to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), or (ii) take any action which would subject it to general service of process or taxation in any such jurisdiction where it is not then so subject;
(e)    notify promptly each Holder of Transfer Restricted Securities under a Shelf Registration or any Participating Broker-Dealer who has notified the Company that it is utilizing the Exchange Offer Registration Statement as provided in paragraph (f) below and, if requested by such Holder or Participating Broker-Dealer, confirm such advice in writing promptly (i) when a Registration Statement has become effective and when any post-effective amendments and supplements thereto become effective, (ii) of any request by the SEC or any state securities authority for post-effective amendments and supplements to a Registration Statement and Prospectus or for additional information after the Registration Statement has become effective, (iii) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, (iv) in the case of a Shelf Registration, if, between the effective date of a Registration Statement and the closing of any sale of Transfer Restricted Securities covered thereby, the representations and warranties of the Company contained in any underwriting agreement, securities sales agreement or other similar agreement, if any, relating to the offering cease to be true and correct in all material respects, (v) of the happening of any event or the discovery of any facts during the period a Registration Statement is effective which makes any statement made in such Registration Statement untrue in any material respect or which requires the making of any changes in such Registration Statement in order to 

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make the statements therein not misleading, (vi) of the happening of any event or the discovery of any facts during the period a Registration Statement is effective which makes any statement in the related Prospectus untrue in any material respect or which requires the making of any changes in such Prospectus in order to make the statements therein, in light of the circumstances under which they were made, not misleading, (vii) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Transfer Restricted Securities or the Exchange Notes, as the case may be, for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose and (viii) of any determination by the Company that a post-effective amendment to such Registration Statement would be appropriate;
(f)    (A) in the case of an Exchange Offer Registration (i) include in the Exchange Offer Registration Statement a section entitled “Plan of Distribution” which section shall be reasonably acceptable to the Dealer Managers on behalf of the Participating Broker-Dealers, and which shall contain a summary statement of the positions taken or policies made by the staff of the SEC with respect to the potential “underwriter” status of any broker-dealer that holds Transfer Restricted Securities acquired for their own account as a result of market-making activities or other trading activities and that will be the beneficial owner (as defined in Rule 13d-3 under the 1934 Act) of Exchange Notes to be received by such broker-dealer in the Registered Exchange Offer, whether such positions or policies have been publicly disseminated by the staff of the SEC or such positions or policies, in the reasonable judgment of the Dealer Managers on behalf of the Participating Broker-Dealers and their counsel, represent the prevailing views of the staff of the SEC, including a statement that any such broker-dealer who receives Exchange Notes for Transfer Restricted Securities pursuant to the Registered Exchange Offer may be deemed a statutory underwriter and must deliver a prospectus meeting the requirements of the 1933 Act in connection with any resale of such Exchange Notes, (ii) furnish to each Participating Broker-Dealer who has delivered to the Company the notice referred to in Section 3(e), without charge, as many copies of each Prospectus included in the Exchange Offer Registration Statement, including any preliminary prospectus, and any amendment or supplement thereto, as such Participating Broker-Dealer may reasonably request, (iii) hereby consent to the use of the Prospectus forming part of the Exchange Offer Registration Statement or any amendment or supplement thereto, by any Person subject to the prospectus delivery requirements of the SEC, including all Participating Broker-Dealers, in connection with the sale or transfer of the Exchange Notes covered by the Prospectus or any amendment or supplement thereto, and (iv) include in the transmittal letter or similar documentation to be executed by an exchange offeree in order to participate in the Registered Exchange Offer (x) the following provision:
“If the exchange offeree is a broker-dealer holding Transfer Restricted Securities acquired for its own account as a result of market-making activities or other trading activities, it will deliver a prospectus meeting the requirements of the 1933 Act in connection with any resale of Exchange Notes received in respect of 

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such Transfer Restricted Securities pursuant to the Registered Exchange Offer;” and
(y) a statement to the effect that by a broker-dealer making the acknowledgment described in clause (x) and by delivering a Prospectus in connection with the exchange of Transfer Restricted Securities, the broker-dealer will not be deemed to admit that it is an underwriter within the meaning of the 1933 Act;
(g)    (i) in the case of an Exchange Offer Registration, furnish counsel for the Dealer Managers and (ii) in the case of a Shelf Registration, furnish counsel for the Holders of Transfer Restricted Securities copies of any comment letters received from the SEC or any other request by the SEC or any state securities authority for amendments or supplements to a Registration Statement or a Prospectus or for additional information;
(h)    use all commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement at the earliest possible moment;
(i)    in the case of a Shelf Registration, furnish to each Holder of Transfer Restricted Securities to which the Shelf Registration applies, and each underwriter, if any, without charge, at least one conformed copy of each Registration Statement and any post-effective amendment thereto, including financial statements and schedules (without documents incorporated therein by reference and all exhibits thereto, unless requested);
(j)    in the case of a Shelf Registration, cooperate with the selling Holders of Transfer Restricted Securities to facilitate the timely preparation and delivery of certificates representing such Transfer Restricted Securities to be sold and not bearing any restrictive legends; and enable such Transfer Restricted Securities to be in such denominations (consistent with the provisions of the Indenture) and registered in such names as the selling Holders or the underwriters, if any, may reasonably request at least three business days prior to the closing of any sale of Transfer Restricted Securities;
(k)    upon the occurrence of any event or the discovery of any facts, each as contemplated by Sections 3(e)(v), 3(e)(vi) and 3(e)(vii) hereof, as promptly as practicable after the occurrence of such an event, use all commercially reasonable efforts to prepare a supplement or post-effective amendment to the Registration Statement or the related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of the Transfer Restricted Securities or Participating Broker-Dealers, such Prospectus will not contain at the time of such delivery any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading or will remain so qualified.  At such time as such public disclosure is otherwise made or the Company determines that such disclosure is not necessary, in each case to correct any misstatement of a material fact or to include any omitted material fact, the Company agrees promptly to notify each Holder of such 

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determination and to furnish each Holder such number of copies of the Prospectus as amended or supplemented, as such Holder may reasonably request;
(l)    in the case of a Shelf Registration, a reasonable time prior to the filing of any Registration Statement, any Prospectus, any amendment to a Registration Statement or amendment or supplement to a Prospectus or any document which is to be incorporated by reference into a Registration Statement or a Prospectus after initial filing of a Registration Statement, provide copies of such document to the Dealer Managers on behalf of such Holders; and make representatives of the Company as shall be reasonably requested by the Holders of Transfer Restricted Securities, or the Dealer Managers on behalf of such Holders, available for discussion of such document;
(m)    obtain a CUSIP number for all Exchange Notes or Transfer Restricted Securities, as the case may be, not later than the effective date of a Registration Statement, and provide the Trustee with printed certificates for the Exchange Notes or the Transfer Restricted Securities, as the case may be, in a form eligible for deposit with the Depositary;
(n)    (i) cause the Indenture to be qualified under the Trust Indenture Act in connection with the registration of the Exchange Notes or Transfer Restricted Securities, as the case may be, (ii) cooperate with the Trustee and the Holders to effect such changes to the Indenture as may be required for the Indenture to be so qualified in accordance with the terms of the Trust Indenture Act and (iii) execute, and use all commercially reasonable efforts to cause the Trustee to execute, all documents as may be required to effect such changes, and all other forms and documents required to be filed with the SEC to enable the Indenture to be so qualified in a timely manner;
(o)    in the case of a Shelf Registration, enter into agreements (including underwriting agreements) and take all other customary and appropriate actions in order to expedite or facilitate the disposition of such Transfer Restricted Securities and in such connection whether or not an underwriting agreement is entered into and whether or not the registration is an underwritten registration:
(i)    make such representations and warranties to the Holders of such Transfer Restricted Securities and the underwriters, if any, in form, substance and scope as are customarily made by issuers to underwriters in similar underwritten offerings as may be reasonably requested by them;
(ii)    obtain opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the managing underwriters, if any, and the holders of a majority in principal amount of the Transfer Restricted Securities being sold) addressed to each selling Holder and the underwriters, if any, covering the matters customarily covered in opinions requested in sales of securities or underwritten offerings and such other matters as may be reasonably requested by such Holders and underwriters;

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(iii)    obtain “comfort” letters and updates thereof from the Company’s independent registered public accounting firm (and, if necessary, any other independent registered public accounting firm of any subsidiary of the Company or of any business acquired by the Company for which financial statements are, or are required to be, included in the Registration Statement) addressed to the underwriters, if any, and use all commercially reasonable efforts to have such letter addressed to the selling Holders of Transfer Restricted Securities (in accordance with AS 6101:  Letters for Underwriters and Certain other Requesting Parties of the Public Company Accounting Oversight Board), such letters to be in customary form and covering matters of the type customarily covered in “comfort” letters to underwriters in connection with similar underwritten offerings;
(iv)    enter into a securities sales agreement with the Holders and an agent of the Holders providing for, among other things, the appointment of such agent for the selling Holders for the purpose of soliciting purchases of Transfer Restricted Securities, which agreement shall be in form, substance and scope customary for similar offerings;
(v)    if an underwriting agreement is entered into, cause the same to set forth indemnification provisions and procedures substantially equivalent to the indemnification provisions and procedures set forth in Section 4 hereof with respect to the underwriters and all other parties to be indemnified pursuant to said Section or, at the request of any underwriters, in the form customarily provided to such underwriters in similar types of transactions; and
(vi)    deliver such documents and certificates as may be reasonably requested and as are customarily delivered in similar offerings to the Holders of a majority in principal amount of the Transfer Restricted Securities being sold and the managing underwriters, if any.
The above shall be done at (i) the effectiveness of such Registration Statement (and each post-effective amendment thereto) and (ii) each closing under any underwriting or similar agreement as and to the extent required thereunder;
(p)    in the case of a Shelf Registration or if a Prospectus is required to be delivered by any Participating Broker-Dealer in the case of the Registered Exchange Offer, make available for inspection by representatives of the Holders of the Transfer Restricted Securities, any underwriters participating in any disposition pursuant to a Shelf Registration Statement, any Participating Broker-Dealer and any counsel or accountant retained by any of the foregoing, all financial and other records, pertinent corporate documents and properties of the Company reasonably requested by any such persons, and cause the respective officers, directors, employees, and any other agents of the Company to supply all information reasonably requested by any such representative, underwriter, special counsel or accountant in connection with a Registration Statement, and make such representatives of the Company available for discussion of such documents as shall be 

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reasonably requested by any such representative, underwriter, special counsel or accountant; provided that information which the Company determines in good faith, to be confidential and which it notifies such parties is confidential shall not be disclosed by such parties unless (i) such parties reasonably determine that the disclosure of such information is necessary to avoid or correct a material misstatement or omission in the applicable Registration Statement or the related Prospectus, (ii) such party reasonably determines, based on the advice of counsel, that disclosure of such information is required pursuant to a subpoena or other order for a court of competent jurisdiction or any other administrative agency or is otherwise required by applicable law, in which case each such party shall promptly notify, if permitted by applicable law, the Company or (iii) such information has been made generally available to the public;
(q)    (i) in the case of an Exchange Offer Registration, a reasonable time prior to the filing of any Exchange Offer Registration Statement, any Prospectus forming a part thereof, any amendment to an Exchange Offer Registration Statement or amendment or supplement to such Prospectus, provide copies of such document to the Dealer Managers and to Special Counsel and make such changes in any such document prior to the filing thereof as the Dealer Managers or Special Counsel may reasonably request and, except as otherwise required by applicable law, not file any such document in a form to which the Dealer Managers on behalf of the Holders of Transfer Restricted Securities and counsel to the Holders of Transfer Restricted Securities shall not have previously been advised and furnished a copy of or to which the Dealer Managers on behalf of the Holders of Transfer Restricted Securities or counsel to the Holders of Transfer Restricted Securities shall reasonably object, and make the representatives of the Company available for discussion of such documents as shall be reasonably requested by the Dealer Managers; and
(i)    in the case of a Shelf Registration, a reasonable time prior to filing any Shelf Registration Statement, any Prospectus forming a part thereof, any amendment to such Shelf Registration Statement or amendment or supplement to such Prospectus, provide copies of such document to the Holders of Transfer Restricted Securities, to the Dealer Managers, to counsel for the Holders and to the underwriter or underwriters of an underwritten offering of Transfer Restricted Securities, if any, make such changes in any such document prior to the filing thereof as the Dealer Managers, the counsel to the Holders or the underwriter or underwriters reasonably request and not file any such document in a form to which the Majority Holders, the Dealer Managers on behalf of the Holders of Transfer Restricted Securities, counsel for the Holders of Transfer Restricted Securities or any underwriter shall not have previously been advised and furnished a copy of or to which the Majority Holders, the Dealer Managers on behalf of the Holders of Transfer Restricted Securities, counsel to the Holders of Transfer Restricted Securities or any underwriter shall reasonably object, and make the representatives of the Company available for discussion of such document as shall be reasonably requested by the Holders of Transfer Restricted 

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Securities, counsel for the Holders of Transfer Restricted Securities or any underwriter;
(r)    in the case of a Shelf Registration, use all commercially reasonable efforts to cause all Transfer Restricted Securities to be listed on any securities exchange on which similar debt securities issued by the Company are then listed if requested by the Majority Holders, or if requested by the underwriter or underwriters of an underwritten offering of such Transfer Restricted Securities, if any;
(s)    in the case of a Shelf Registration, use all commercially reasonable efforts to cause the Transfer Restricted Securities to be rated by the appropriate rating agencies, if so requested by the Majority Holders, or if requested by the underwriter or underwriters of an underwritten offering of Transfer Restricted Securities, if any;
(t)    otherwise comply with all applicable rules and regulations of the SEC and make available to its security holders, as soon as reasonably practicable, an earnings statement covering at least 12 months which shall satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158 thereunder;
(u)    cooperate and assist in any filings required to be made with FINRA and, in the case of a Shelf Registration, in the performance of any due diligence investigation by any underwriter and its counsel (including any “qualified independent underwriter” that is required to be retained in accordance with the rules and regulations of FINRA); and
(v)    in the case of a Shelf Registration Statement, the Company may (as a condition to such Holder’s participation in the Shelf Registration) require each Holder of the Transfer Restricted Securities to furnish to the Company such information regarding the Holder and the proposed distribution by such Holder of such Transfer Restricted Securities as the Company may from time to time reasonably request in writing.
Each Holder agrees that, upon receipt of any notice from the Company of (i) the happening of any event or the discovery of any facts, each of the kind described in Section 3(e)(v) or 3(e)(vi) hereof, or (ii) the good faith determination of the Board of Directors or the Chief Executive Officer and Chief Financial Officer of the Company that the continued effectiveness of the applicable Registration Statement and use of the Prospectus would require disclosure of confidential information related to a material acquisition or divestiture of assets or a material corporate transaction, event or development, such Holder will forthwith discontinue disposition of Transfer Restricted Securities pursuant to a Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 3(k) hereof, and, if so directed by the Company, such Holder will deliver to the Company (at its expense) all copies in such Holder’s possession, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Transfer Restricted Securities current at the time of receipt of such notice; provided that the Company shall not allow the applicable Registration Statement to fail or cease to be effective or allow the Prospectus to be unusable pursuant to the provisions of this paragraph for more than 45 days during any year of effectiveness contemplated 

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by Section 2 hereof.  It is understood and agreed that the provisions of this paragraph shall not affect the Company’s obligations under Section 2.5 of this Agreement.
Each Holder of Transfer Restricted Securities hereby agrees with the Company and each other such Holder that no Holder of Transfer Restricted Securities may participate in any underwritten offering hereunder unless (a) the Company gives its prior written consent to such underwritten offering, (b) the underwriter or underwriters and manager or managers that will manage such offering shall be selected by the Majority Holders of such Transfer Restricted Securities included in such offering and shall be acceptable to the Company, (c) each Holder of Transfer Restricted Securities participating in such underwritten offering agrees to sell such Holder’s Transfer Restricted Securities on the basis provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements, and (d) each Holder of Transfer Restricted Securities participating in such underwritten offering completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements.
4.    Indemnification; Contribution.
(a)    With respect to the Securities, the Company agrees to indemnify and hold harmless each of the Dealer Managers, each Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls any such Person within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act with respect to the Securities as follows:
(i)    against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
(ii)    against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and

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(iii)    against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under subparagraph (i) or (ii) above;
provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by the Holder or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto).
(b)    Each Holder severally, but not jointly, agrees to indemnify and hold harmless the Company, each of the Dealer Managers, each Underwriter, each Participating Broker-Dealer and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company, each of the Dealer Managers, any Underwriter, any Participating Broker-Dealer or any other selling Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any and all loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Shelf Registration Statement (or any amendment thereto) or any Prospectus included therein (or any amendment or supplement thereto) in reliance upon and in conformity with written information with respect to such Holder furnished to the Company by such Holder expressly for use in the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that no such Holder shall be liable for any claims hereunder in excess of the amount of net proceeds received by such Holder from the sale of Transfer Restricted Securities pursuant to such Shelf Registration Statement.
(c)    Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action or proceeding commenced against it in respect of which indemnity may be sought hereunder, but failure so to notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement.  An indemnifying party may participate at its own expense in the defense of such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to the indemnified party.  No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, 

18

commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
(d)    If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.
(e)    If the indemnification provided for in this Section 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred, in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and the Holders, Underwriters, Participating Broker-Dealers and the Dealer Managers on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations.
The relative fault of the Company on the one hand and the Holders, Underwriters, Participating Broker-Dealers and the Dealer Managers on the other hand shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company, the Holders, Underwriters, Participating Broker-Dealers or the Dealer Managers and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.
The Company, the Holders, Underwriters, Participating Broker-Dealers and the Dealer Managers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Dealer Managers were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 4.  The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any 

19

investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission.
Notwithstanding the provisions of this Section 4, no Dealer Manager, Holder, Participating Broker-Dealer or Underwriter shall be required to contribute any amount in excess of the amount by which the net proceeds received by such Holder from the sale of the Securities exceeds the amount of any damages which such Dealer Manager, Holder, Participating Broker-Dealer or Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission with respect to the Securities from the sale of the Securities.
No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.
For purposes of this Section 4, each Person, if any, who controls a Dealer Manager, Holder, Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Dealer Manager, Holder, Participating Broker-Dealer or Underwriter and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company.  The Dealer Managers’ respective obligations to contribute pursuant to this Section 4 are several and not joint.
5.    Miscellaneous.
5.1    Rule 144 and Rule 144A.  For so long as the Company is subject to the reporting requirements of Section 13 or 15 of the 1934 Act, the Company covenants that it will file the reports required to be filed by it under the 1933 Act and Section 13(a) or 15(d) of the 1934 Act and the rules and regulations adopted by the SEC thereunder.  If the Company ceases to be so required to file such reports, the Company covenants that it will upon the request of any Holder of Transfer Restricted Securities (a) make publicly available such information as is necessary to permit sales pursuant to Rule 144 under the 1933 Act, (b) deliver such information to a prospective purchaser as is necessary to permit sales pursuant to Rule 144A under the 1933 Act and it will take such further action as any Holder of Transfer Restricted Securities may reasonably request, and (c) take such further action that is reasonable in the circumstances, in each case, to the extent required from time to time to enable such Holder to sell its Transfer Restricted Securities without registration under the 1933 Act within the limitation of the exemptions provided by (i) Rule 144 under the 1933 Act, as such Rule may be amended from time to time, (ii) Rule 144A under the 1933 Act, as such Rule may be amended from time to time, or (iii) any similar rules or regulations hereafter adopted by the SEC.  Upon the request of any Holder of Transfer Restricted Securities, the Company will deliver to such Holder a written statement as to whether it has complied with such requirements.

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5.2    No Inconsistent Agreements.  The Company has not entered into and the Company will not after the date of this Agreement enter into any agreement which is inconsistent with the rights granted to the Holders of Transfer Restricted Securities in this Agreement or otherwise conflicts with the provisions hereof.  The rights granted to the Holders hereunder do not and will not for the term of this Agreement in any way conflict with the rights granted to the holders of the Company’s other issued and outstanding securities under any such agreements.
5.3    Amendments and Waivers.  The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless the Company has obtained the written consent of Holders of at least a majority in aggregate principal amount of the outstanding Transfer Restricted Securities affected by such amendment, modification, supplement, waiver or departure.
5.4    Notices.  All notices and other communications provided for or permitted hereunder shall be made in writing by hand delivery, registered first-class mail, telex, telecopier, or any courier guaranteeing overnight delivery (a) if to a Holder, at the most current address given by such Holder to the Company by means of a notice given in accordance with the provisions of this Section 5.4, which address initially is the address set forth in the Dealer Manager Agreement with respect to the Dealer Managers; and (b) if to the Company, initially at the Company’s address set forth in the Dealer Manager Agreement, and thereafter at such other address of which notice is given in accordance with the provisions of this Section 5.4.
All such notices and communications shall be deemed to have been duly given:  at the time delivered by hand, if personally delivered; two business days after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged, if telecopied; and on the next business day if timely delivered to an air courier guaranteeing overnight delivery.
Copies of all such notices, demands, or other communications shall be concurrently delivered by the person giving the same to the Trustee under the Indenture, at the address specified in such Indenture.
5.5    Successor and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors, assigns and transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders; provided that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Transfer Restricted Securities in violation of the terms of the Dealer Manager Agreement or the Indenture.  If any transferee of any Holder shall acquire Transfer Restricted Securities, in any manner, whether by operation of law or otherwise, such Transfer Restricted Securities shall be held subject to all of the terms of this Agreement, and by taking and holding such Transfer Restricted Securities such person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement, including the restrictions on resale set forth in this Agreement and, if applicable, the Dealer Manager Agreement, and such person shall be entitled to receive the benefits hereof.

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5.6    Third Party Beneficiaries.  Each Holder and Participating Broker-Dealer shall be a third party beneficiary to the agreements made hereunder between the Company, on the one hand, and the Dealer Managers, on the other hand, and shall have the right to enforce such agreements directly to the extent they deem such enforcement necessary or advisable to protect their rights or the rights of other Holders hereunder.  Each Holder by its acquisition of Securities shall be deemed to have agreed to the provisions of Section 4(b) hereof.
5.7    Specific Enforcement.  Without limiting the remedies available to the Dealer Managers and the Holders, the Company acknowledges that any failure by the Company to comply with its obligations under Sections 2.1 through 2.4 hereof may result in material irreparable injury to the Holders for which there is no adequate remedy at law, that it would not be possible to measure damages for such injuries precisely and that, in the event of any such failure, any Holder may obtain such relief as may be required to specifically enforce the Company’s obligations under Sections 2.1 through 2.4 hereof.
5.8    Restriction on Resales.  The Company will not, and will cause their “affiliates” (as such term is defined in Rule 144(a)(1) under the 1933 Act) not to, resell any Securities which are “restricted securities” (as such term is defined under Rule 144(a)(3) under the 1933 Act) that have been reacquired by any of them and shall immediately upon any purchase of any such Securities submit such Securities to the Trustee for cancellation.
5.9    Counterparts.  This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.
5.10    Headings.  The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.
5.11    GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS THEREOF.
5.12    Severability.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.
[Signature Page Follows]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
NORFOLK SOUTHERN CORPORATION 
 
 
By:        /s/ C.H. Allison, Jr.     
    Name:  C.H. Allison, Jr. 
    Title:  Vice President and Treasurer

[Signature Page to Registration Rights Agreement]

Confirmed and accepted as 
of the date first above written:
MERRILL LYNCH, PIERCE, FENNER & SMITH 
INCORPORATED
By:            /s/ David Scott                 
    Name:  David Scott 
    Title:    Managing Director
MORGAN STANLEY & CO. LLC
By:        /s/ Yurij Slyz                 
    Name:  Yurij Slyz 
    Title:    Executive Director
WELLS FARGO SECURITIES, LLC 
By:        /s/ Brian Thomas             
    Name:  Brian Thomas 
    Title:    Director

[Signature Page to Registration Rights Agreement]atlw_ex101.htm

EXHIBIT 10.1

 

 

W I R E L E S S N E T W O R K, W O R L D’ S O N E A N D O N L Y W H O L E S A L E C A R R I E R N E T W O R K

 

DESIGN AND MANUFACTURING SERVICES AGREEMENT

 

This Design and Manufacturing Services Agreement (“Agreement”) is entered into as of this 11 day of August 2017 (“Effective Date”) by and between ViaLight Communications GmbH, a Bavarian corporation, having its principal place of business at Friedrichshafenerstr.1, D-82205 Gilching, Germany (“ViaLight”), and Airborne Wireless Network, Inc., a Nevada corporation, having its principal place of business at 4115 Guardian Street, Suite C, Simi Valley, California 93063, U.S.A. (“ABWN”). 

 

RECITALS 

 

WHEREAS, ABWN is in the business of developing, marketing and licensing a fully meshed high-speed broadband airborne wireless network by linking commercial aircraft inflight, which is known as the ”Infinitus Information Super Highway” AKA (“Infinitus”). 

 

WHEREAS, ABWN desires to utilize with Infinitus a hybrid system which shall employ laser based communications, managed by a radio frequency control system, and which would help guide the lasers to their respective targets and which would carry the links during weather related interruptions of the laser.

 

WHEREAS, ViaLight has developed a field proven, functional high-speed commercial laser communication system, which can process signals from transponders mounted on stratospheric balloons and, at some point in the future, on satellites thousands of miles away.

 

WHEREAS, ABWN and ViaLight desire that ViaLight assist in the development of such a hybrid radio frequency-laser based communication system for use by Infinitus, whereby ViaLight will manufacture and deliver such laser equipment, that is necessary and appropriate to develop and use for such a hybrid radio frequency-laser based communication system.

 

WHEREAS, ABWN desires that ViaLight perform certain design and manufacturing services, including, but not limited to: purchasing, assembly and manufacture, testing and delivery of the Products defined in the Product Information Documents; 

 

WHEREAS, the parties desire to define the general terms and conditions governing ViaLight’s design, manufacture and delivery of such Products, all as further set forth in this Agreement; and 

 

WHEREAS, ABWN desires to work with ViaLight to design, manufacture and fulfill certain custom Products specifically for ABWN. 

 

4115 Guardian Street • Suite - C • Simi Valley • California 93063-3382 • Telephone +1 805-583-4302 • www.airbornewirelessnetwork.com

 

	 
	 
	

 
	 

 

NOW, THEREFORE, in consideration of the mutual covenants, promises and undertakings set forth herein, and for other good and valuable consideration, ABWN and ViaLight agree as follows: 

 

	1.	DEFINITIONS

 

	
 
	1.1.	“Affiliate” shall mean a person that directly, or indirectly by one or more intermediaries, controls, or is controlled by, or is under, control with, a party to this Agreement.
	
 
	
 
	
 

	
 
	1.2.	“ABWN Consigned Items” shall mean, collectively, the ABWN Equipment and ABWN Material. 
	
 
	
 
	
 

	
 
	1.3.	“ABWN Equipment” shall mean the test equipment, fixtures, appurtenances, test hardware and software, and any other items provided or to be provided by ABWN to ViaLight that are used to design and manufacture Existing and/or Custom Products, as listed in the applicable Product Information Document. 
	
 
	
 
	
 

	
 
	1.4. 	“ABWN Material” shall mean any Components or materials that are used to design and manufacture Existing and/or Custom Products that are provided by ABWN to ViaLight as Customer Furnished Items. 
	
 
	
 
	
 

	
 
	1.5.	“ABWN Requirements Document” shall mean ABWN’s requirements for documentation associated with Existing and/or Custom Products as amended in writing pursuant to the terms of this Agreement.
	
 
	
 
	
 

	
 
	1.6. 	“Components” shall mean the component parts that comprise a finished Product.
	
 
	
 
	
 

	
 
	1.7. 	“Component Cost” shall mean the cost paid by ViaLight for a Component.
	
 
	
 
	
 

	
 
	1.8.	“Component Lead Time” shall mean the minimum amount of time necessary to purchase a Component in order to meet the current Forecast. Product Lead Times may be specified in a Product Information Document. 
	
 
	
 
	
 

	
 
	1.9. 	“Custom Product” shall be defined by a significant modification to the Existing ViaLight Technology/ Product. This includes cases of significant redesign, significant miniaturization, significant enhancement of the data rate and similar cases.
	
 
	
 
	
 

	
 
	1.10. 	“Custom Product Information Document” shall be defined as the Product Information Document pertaining to a Custom Product as defined in Article 1.9.
	
 
	
 
	
 

	
 
	1.11. 	“Custom Design Services” shall mean laser equipment design, radio frequency equipment design, mechanical design, firmware design, electrical design, system or sub-system design, component engineering or other design services as specified in a Statement of Work.

 

	 
	2
	

 
	 

 

 

W I R E L E S S N E T W O R K, W O R L D’ S O N E A N D O N L Y W H O L E S A L E C A R R I E R N E T W O R K

 

	
 
	1.12. 	“Deliverable” shall mean any of the following: Product Specifications, Test Plan, related custom prototypes, Final Deliverable and a top-level Product Information Document. 
	
 
	
 
	
 

	
 
	1.13.	“Excess Components” shall mean Unique Components and Special Components on hand at ViaLight’s site that are in excess of the amount needed for the current Forecast; provided, however, that such Components were purchased by ViaLight in order to meet a previous Forecast. A Component shall not be an “Excess Component” if it was purchased outside of the Component Lead Time necessary to meet the Forecast in effect at the time of purchase. 
	
 
	
 
	
 

	
 
	1.14. 	“Final Deliverable” shall mean the Deliverable that is delivered to ABWN by ViaLight after ABWN’s acceptance of the Pre-production unit, as necessary, and completion of first inspections of a Product by ABWN. The Final Deliverable shall be the Product to be manufactured pursuant to this Agreement. 
	
 
	
 
	
 

	
 
	1.15. 	“Forecast” shall have the definition set forth in Section 7.4. 
	
 
	
 
	
 

	
 
	1.16.	“Long Lead Time Component” shall mean a Component that has a lead time greater than the associated Product Lead Time. 
	
 
	
 
	
 

	
 
	1.17.	 “Min/Max Components” shall mean the Components necessary to build the minimum and maximum levels of Product inventory required by ABWN, as specified in a Product Information Document. 
	
 
	
 
	
 

	
 
	1.18.	“MOQ Components” shall mean the Components purchased by ViaLight pursuant to minimum order requirements from a Supplier as approved by ViaLight in writing and specified in a Product Information Document.
	
 
	
 
	
 

	
 
	1.19. 	“NCNR Components” shall mean non-cancelable and non-returnable Components purchased by ViaLight as agreed to in writing by ABWN and specified in a Product Information Document.
	
 
	
 
	
 

	
 
	1.20.	“Obsolete Component” shall mean a Unique Component and a Special Component that will no longer be utilized in the manufacture of a Product. A Component shall not be an “Obsolete Component” if it was purchased outside of the Component Lead Time necessary to meet the Forecast in effect at the time of purchase. 
	
 
	
 
	
 

	
 
	1.21. 	“Product Lead Time” shall mean the pre-determined amount of time that is agreed by the parties and set forth in a Product Information Document.
	
 
	
 
	
 

	
 
	1.22.	“Product” shall mean the product set forth in a Product Information Document. 

 

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	1.23.	“Product Information Document” shall mean the document that contains the information and details set forth in Exhibit A and other information related to the manufacture and ownership of a Product (as updated by the parties from time to time). Without limiting the foregoing, a Product Information Document shall contain the following items: (a) sub-system level bill of materials and pricing, (b) identification of unique sub-systems, (c) Product Specifications, (d) identification of any Tooling and ABWN Equipment necessary or useful to the manufacture of the Product, (e) ownership of any Tooling and ABWN Equipment, (d) Test Plan, (f) the approved vendor list (“AVL”) in accordance with any FAA, or similar government regulatory agency, regulations/requests. 
	
 
	
 
	
 

	
 
	1.24.	“Product Specifications” shall mean the technical and functional specifications for a Product as outlined in a Product Information Document (as may be amended by the parties in writing pursuant to the provisions of this Agreement). 
	
 
	
 
	
 

	
 
	1.25. 	“Slow Moving Inventory” shall mean a Unique Component/sub-system that has been on hand at ViaLight’s premises for more than six (6) months; provided, however, such Component/sub-system was not purchased outside of the Component/sub-system Lead Time necessary to meet the Forecast in effect at the time of purchase. 
	
 
	
 
	
 

	
 
	1.26. 	“Special Components” shall mean NCNR Components, MOQ Components, Long Lead Time Components and Min/Max Components for a particular Product. 
	
 
	
 
	
 

	
 
	1.27. 	“Statement of Work” shall mean the written statement of work for each Product or design project that contains (at a minimum) the information set forth in Exhibit C (as amended in writing from time to time upon mutual agreement of the parties). 
	
 
	
 
	
 

	
 
	1.28.	“Supplier” shall mean a third-party supplier of Components, ABWN Equipment, ABWN Materials or Tooling.
	
 
	
 
	
 

	
 
	1.29. 	“Test Plan” shall mean the specifications for testing a Product that are defined by ViaLight and approved by ABWN for such Product.
	
 
	
 
	
 

	
 
	1.30.	“Tooling” shall mean the tooling, equipment or other materials used in the manufacture of a Product that are supplied by a third party and are paid for by ABWN in accordance with the terms of this Agreement.
	
 
	
 
	
 

	
 
	1.31. 	“Unique Components” shall mean Components that are specific and unique to a Product and that are not sold by a Supplier in the ordinary course of business to any party (other than ABWN) as specified in a Product Information Document.
	
 
	
 
	
 

	
 
	1.32. 	“ViaLight’s Existing Technology” shall mean ViaLight’s products, prototypes, breadboards, designs and design drawings, any other relevant documents, testing and manufacturing processes/procedures/software, software/firmware/VHDL code, algorithms (FEC coding, PAT, etc.) documentation, manuals, interface documents, data, memoranda, notes, information, testing equipment. 

 

	 
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	2.	PROCESS

 

	
 
	2.1. 	ABWN Requirements Document. ABWN shall be responsible for the definition of each Product and delivery of the associated ABWN Requirements Document. The ABWN Requirements Document shall reflect the existing ViaLight’s Product Specification and/or other Custom Design Services requested by ABWN.
	
 
	
 
	
 

	
 
	2.2. 	Proposal. ViaLight shall provide a proposal to ABWN outlining the estimated product prices, Delivery Dates, schedules and Deliverables associated with each Product defined in an ABWN Requirements Document. If agreed upon by ABWN, the parties shall execute a Statement of Work that specifies the terms of such proposal.
	
 
	
 
	
 

	
 
	2.3. 	Custom Design Services. ViaLight shall perform the Custom Design Services as outlined in a Statement of Work and the associated ABWN Requirements Document. This shall include completion and acceptance (as defined in Article 3) of each of the following Deliverables: Product Specifications, Test Plan, necessary prototypes, Final Deliverable and the associated Product Information Document. If the terms of a Product Information Document and this Agreement shall conflict in any way, the terms of such Product Information Document shall prevail.
	
 
	
 
	
 

	
 
	2.4. 	Testing. ViaLight shall perform Product testing in accordance with the Test Plan.

 

	3.	ACCEPTANCE

 

	
 
	3.1. 	When ViaLight has completed a Deliverable, ViaLight will deliver it to ABWN. ABWN will accept or reject such Deliverable within thirty (30) calendar days after delivery (unless another time period is specified in a Statement of Work). If ABWN legitimately rejects a Deliverable, ViaLight will use its reasonable commercial efforts to promptly correct the failures properly specified in the rejection notice (at no additional cost to ABWN) within thirty (30) calendar days. In the event that ViaLight expects that the correction of a particular failure is not possible within thirty (30) calendar days, the parties will determine a reasonable remedy period in good faith. When it believes that it has made the necessary corrections, ViaLight will again deliver such Deliverable to ABWN and the acceptance/rejection/correction provisions above shall be reapplied until the Deliverable is accepted; provided, however, that upon a second or any subsequent legitimate rejection, ABWN may terminate the respective project or Product by ten (10) calendar day notice, unless such Deliverable is accepted during the ten (10) calendar day notice period. In the event that ABWN (i) fails to reject such Deliverable within the aforementioned thirty (30) calendar day period or (ii) uses such Deliverable according to its intended use, such Deliverable shall be deemed accepted. The cost incurred from such termination hereunder shall be mutually agreed upon and equitably allocated between the parties in accordance with their responsibility for its underlying cause.

 

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	4.	MANUFACTURE AND SALE OF PRODUCTS

 

	
 
	4.1.	Upon the completion and agreement of a Product Information Document, ViaLight shall manufacture and sell to ABWN the Product in accordance with the associated Product Specifications and other terms set forth in this Agreement and the associated Product Information Document.

 

	5.	ENGINEERING CHANGE ORDERS 

 

	
 
	5.1. 	ABWN Proposed Changes. ABWN may propose changes to a Product or Product Information Document at any time. Such changes may include, but are not limited to, changes to applicable drawings, designs or specifications; required method of shipment or packing; or place of delivery. In the event that ABWN decides to make a change, and ViaLight agrees to the proposed change, ABWN shall issue an engineering change order in writing to ViaLight specifying the change (“ABWN ECO”). For standard ABWN ECOs, ViaLight shall provide a written acknowledgement within twenty (20) calendar days of receipt of such ABWN ECO. For all investigations and assessments of design impacts, price impact must also be elaborated by Vialight and will be reflected in a Change Proposal. ABWN will cover the additional expenses for such investigations and assessments. ABWN shall review such proposed schedule and estimates and either accept or reject the Acknowledgement. If ABWN accepts the Acknowledgement, ABWN shall pay ViaLight the amounts specified in the Acknowledgement in accordance with the terms agreed to by the parties. Notwithstanding the above, with the exception of approved Unique Components and Special Components, ABWN shall not be responsible for reimbursing ViaLight for Obsolete Components that were purchased outside of the Product Lead Time necessary to meet the Forecast in effect at the time of the ABWN ECO.
	
 
	
 
	
 

	
 
	5.2. 	ViaLight Proposed Changes.
	
 
	
 
	
 

	
 
	5.2.1. 	General Restrictions. Subject to the terms of this section, ViaLight may not (a) relocate any part of the facility in which Product(s) are manufactured without advising ABWN; (b) make any change to Product Specifications or the manufacturing procedures or quality assurance processes associated with Product(s); or (c) change any other ABWN requirements related to a Product, including without limitation, the manufacturing or supply of such Product (each of clauses (a), (b) and (c) shall be considered an “Engineering Change”) without following the prescribed procedure in section 5.2.2.

 

	 
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	5.2.2. 	Change Procedure. When ViaLight desires to implement an Engineering Change, ViaLight shall issue an engineering change order in writing to ABWN specifying the change (“ViaLight ECO”). The ViaLight ECO shall include, without limitation, sufficient details regarding the nature of the proposed Engineering Change, the reason for the proposed change, details regarding its implementation, the impact of the change (including scheduling and pricing), and the proposed implementation date of the Engineering Change. Promptly after issuing any ViaLight ECO, ViaLight shall, at a mutually agreed upon cost, provide ABWN with sufficient evaluation samples of the affected Product (after having incorporated the Engineering Change) within an agreed upon implementation period as well as any other information requested by ABWN to enable ABWN to evaluate such Engineering Change. ABWN may, acting in its sole discretion, reject any Engineering Change and shall notify ViaLight in writing of such rejection within twenty (20) calendar days from its receipt of appropriate Product samples and other information. While ABWN is considering an Engineering Change or if ABWN rejects an Engineering Change, ViaLight shall continue to perform the Custom Design Services and manufacture and supply such Existing and/or Custom Product, in accordance with the terms of this Agreement, without such Engineering Change, unless the ViaLight Engineering Change request is triggered by product safety issues. If ABWN provides its written approval of such Engineering Change, ViaLight shall implement such Engineering Change on a mutually agreed schedule and price.

 

	6.	SUBCONTRACTORS

 

ViaLight shall be responsible for the activities of Subcontractors and will provide any information the FAA, or similar government regulatory agencies, may require. ABWN will not be responsible for payment or other obligations to any Subcontractors, unless otherwise agreed in writing. If, for any reason, there are any difficulties between ViaLight and its supply chain causing ViaLight to delay its delivery commitment in excess of ten (10) calendar days, ViaLight agrees to notify ABWN as soon as practical, and no later than seven (7) calendar days, and discuss mutually beneficial resolutions.

 

	7.	PURCHASE ORDERS

 

	
 
	7.1. 	Purchase Orders. ABWN purchase orders may be issued in writing, by mail or facsimile, or by electronic means as the parties may from time to time agree. ABWN’s purchase orders for Products shall include the following: a) Identification of Products ordered by ABWN part number and descriptions; b) Quantity to be purchased; c) the total Price of Products ordered based on the pricing agreed to during regularly scheduled planning meetings; d) Date the Product is to be delivered (“Delivery Date”); e) Shipping destination; and f) Labeling instructions.

 

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	7.1.1. 	Purchase Orders for “End of Life Product”. ABWN may place one (1) final binding purchase order, within the last purchase period identified by ViaLight. ABWN reserves the right to discontinue procurement of any “End of Life Product”. Any Product designated as an End of Life Product will be identified to ViaLight in writing at least one hundred eighty days (180) calendar days in advance of the last shipment, and issue purchase orders of End of Life Product with quantity forecasted for those one hundred eighty (180) days to ViaLight. ABWN acknowledges that orders placed for End of Life Products are non-cancelable and non-returnable and cannot be rescheduled. In the event that any purchase orders for End of Life Products are agreed upon by ViaLight to be cancelled, ABWN shall be liable for any damage or losses caused to ViaLight, including, without limitation, the actual costs of materials, shipping and labor costs incurred by ViaLight, compensation to a Supplier of ViaLight. ABWN acknowledges and agrees that ViaLight may, with ABWN’s prior written consent, be required to purchase a minimum quantity of materials which are manufactured for ABWN’s End of Life Products. In the event that ABWN’s purchase order for End of Life Products do not satisfy the minimum order quantity of such materials, ABWN shall be fully liable for the costs or expenses of such excess materials, and may either help re-sell or pay for such excess materials.

 

	
 
	7.2. 	Controlling Terms. All purchase orders and invoices pursuant to this Agreement shall be subject only to the terms and conditions hereof. In the event that the terms of any such purchase order, confirmation or similar document, conflicts with, or are in addition to, the terms of this Agreement, the terms of this Agreement shall govern regardless of execution of any such document by either of the parties. No other ViaLight or ABWN terms and/or conditions shall apply to this Agreement or the purchase orders, unless otherwise agreed by the parties in writing.
	
 
	
 
	
 

	
 
	7.3. 	Purchase Order Process. All purchase orders received by ViaLight shall be deemed accepted by ViaLight, unless ViaLight notifies ABWN within fifteen (15) calendar days of receipt that such purchase order is not in compliance with the terms of this Agreement. If ViaLight has any reason to believe it will not meet the required shipment date, it shall notify ABWN within the aforementioned fifteen (15) calendar day period. ABWN shall have the right to track the status of any purchase order via email or phone call. ViaLight shall provide ABWN with an electronic shipping notification within two (2) business days after a Product has shipped. Invoicing will be daily with all relevant and accurate tracking numbers and freight charges included with each invoice. ViaLight shall include in all invoices any and all information pertaining to the shipping of a Product as reasonably requested by ABWN.
	
 
	
 
	
 

	
 
	7.4. 	Forecasts. Before the beginning of each calendar month during the term of this Agreement, ABWN shall provide a non-binding, rolling twelve (12) month forecast setting forth ABWN’s demand for Products (“Forecast”). ABWN will update the Forecast on a monthly basis, the first 3 months of each contract period, of which shall be binding.
	
 
	
 
	
 

	
 
	7.5. 	Cancellation of Purchase Orders. ABWN may provide ViaLight with a cancellation notice at any time. ViaLight shall, upon receipt of such a notice, stop work on such units of Products to the extent specified therein. Notwithstanding anything to the contrary herein, ABWN shall be liable for the costs incurred from such cancellation in accordance with Article 12 of this Agreement.

 

	 
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	8.	DELIVERY TERMS

 

	
 
	8.1. 	Packaging. ViaLight shall package and label Products in accordance with the packaging and shipping specifications specified in the associated Product Specifications. ViaLight shall not mark or label a Product, except as set forth in the associated Product Specifications. ViaLight shall be responsible for any loss or damage to Products due to ViaLight’s failure to preserve, package or handle a Product in accordance with ABWN’s packaging and shipping specifications. ViaLight will have all risk of loss, damage or destruction to the ordered Products until delivery to a carrier specified by ABWN in writing.
	
 
	
 
	
 

	
 
	8.2. 	Shipping. All Products shall ship from a ViaLight-approved premise in order to meet the associated Delivery Dates.
	
 
	
 
	
 

	
 
	8.3. 	Late Shipments. ViaLight shall immediately notify ABWN in writing upon becoming aware that any part of a shipment of Products will not be, or has not been, delivered by the associated Delivery Date and shall provide reasons for the delay and a revised Delivery Date. ViaLight’s revised Delivery Date must take into account the use of all reasonable means available to expedite production and delivery of the delayed Products, including, without limitation, expediting the procurement of materials, using expedited transportation means and labor overtime (“Accelerated Measures”). In the event of such delay, ABWN may assess a charge of not more than 4% of the total price of the affected shipment to ViaLight as a result of such delayed delivery.
	
 
	
 
	
 

	
 
	8.4. 	Inspection. Notwithstanding any prior inspection or payment by ABWN, all Products shall be subject to final inspection and acceptance by ABWN within thirty (30) calendar days after delivery.
	
 
	
 
	
 

	
 
	8.5. 	Shipping Documentation. ViaLight shall maintain complete and accurate shipping documentation for all shipments for a minimum of three (3) years following the date of shipment. Shipment documentation includes.
	
 
	
 
	
 

	
 
	8.6. 	the purchase order, packing slip, commercial invoice, carrier waybill, any information pertaining to direct fulfillment of each Product and ViaLight’s billing invoice. ABWN and its authorized agents and representatives shall have access to such records for purposes of performing an audit during normal business hours during the term of this Agreement and during periods which ViaLight is required to retain such records at the ViaLight manufacturing site.
	
 
	
 
	
 

	
 
	8.7. 	Allocation. ViaLight agrees to apply its reasonable efforts to meet allocation requirements based on the Forecast from section 7.4.

 

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	9.	PRICING AND PAYMENT TERMS 

 

	
 
	9.1. 	Prices. The initial price for a Product shall be set forth in the associated Product Information Document. Prices will be reviewed on a quarterly basis and are subject to anticipated reductions as provided in this Agreement.
	
 
	
 
	
 

	
 
	9.2. 	Non-Recurring Engineering Fee. As consideration for the Tooling and any other items specifically outlined in a Product Information Document, ABWN shall pay to ViaLight a non-recurring engineering fee as specified in the associated Product Information Document or Statement of Work (as the case may be).
	
 
	
 
	
 

	
 
	9.3. 	Taxes. Prices stated in a Product Information Document are in U.S. Dollars and are inclusive of all taxes, other than taxes on a party’s net income, which shall be the sole responsibility of that party.
	
 
	
 
	
 

	
 
	9.4. 	Payment Terms. The payment schedule applicable for each Purchase Order for Products to be delivered to ABWN is defined in Exhibit X per pre-production coordination meeting. All undisputed payments due hereunder shall be paid in U.S. Dollars not later than thirty (30) calendar days following the invoice date of receipt.
	
 
	
 
	
 

	
 
	9.5. 	Quarterly Report. Within the last five (5) days of every quarter, ViaLight shall provide ABWN with a detailed accounts receivable aging report (in electronic format detailed in Exhibit D).
	
 
	
 
	
 

	
 
	9.6. 	Non-approved Charges. ABWN shall not be liable without ABWN’s prior approval, which cannot be withheld without reasonable cause, to ViaLight for any overtime charges, freight charges or Component price increases incurred by ViaLight.

 

	10.	COST REDUCTIONS

 

	
 
	10.1. 	Cost Reduction. ViaLight shall use commercially diligent efforts to achieve ongoing reductions in the overall pricing as outlined in Exhibit D.

 

	11.	SOURCING

 

	
 
	11.1. 	Sourcing of Components. ViaLight shall be responsible for the procurement of the Components. ViaLight agrees to use reasonable efforts to ensure that obsolescence issues are not affecting the delivery of Products and the life of Products.

 

	12.	INVENTORY LIABILITY

 

	
 
	12.1. 	Inventory Liability Report. ViaLight shall provide ABWN with a quarterly report setting forth the number of Slow Moving Inventory, Excess Components and Obsolete Components.
	
 
	
 
	
 

	
 
	12.2. 	Disposition Process for Obsolete Components and Excess Components. On a quarterly basis (based on ABWN’s fiscal quarter), the following disposition process shall be followed for all Obsolete Components and Excess Components:

	 
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	12.2.1. 	ViaLight shall use diligent commercial efforts throughout each such fiscal quarter to sell such Slow-Moving Inventory, Obsolete Components and/or Excess Components; provided, however, any and all differences between the purchase prices and the market prices shall be absorbed by ABWN.
	
 
	
 
	
 

	
 
	12.2.2. 	If ViaLight is unable to sell such Obsolete Components and/or Excess Components that ABWN has previously agreed to before the end of such fiscal quarter, then ABWN will either (a) pay an agreed upon price to ViaLight to cover the cost of both the Component and the cost of scrapping such Component, (b) pay an agreed upon price to ViaLight to cover the acquisition of the Component by ABWN (and delivery to a third party location in agreement with ViaLight) or (c) pay an agreed upon carrying cost to ViaLight and ViaLight shall retain such Obsolete Components and/or Excess Components in inventory on ABWN’s behalf; provided, however, that (i) Obsolete Components need not be carried by ViaLight in excess of three (3) months and either clause (a) or (b) shall be applicable after the three (3) month period has ended and (ii) Excess Components need not be carried by ViaLight in excess of one (1) year and either clause (a) or (b) shall be applicable after the one (1) year period has ended.
	
 
	
 
	
 

	
 
	12.3.	Disposition Process for Slow Moving Inventory. Before the end of each such fiscal quarter, ABWN and ViaLight shall agree upon a carrying cost to be paid by ABWN to ViaLight in order to retain (on ABWN’s behalf) any Slow Moving Inventory; provided, however, that Slow Moving Inventory need not be carried by ViaLight in excess of one (1) fiscal year and after such one (1) year period has ended, ABWN will either (a) pay an agreed upon price to ViaLight to cover the cost of both such Component and the cost of scrapping such Component, or (b) pay an agreed upon price to ViaLight to cover the acquisition of such Component by ABWN (and delivery to a third party location).
	
 
	
 
	
 

	
 
	12.4. 	Mitigation. Subject to the notification requirements set forth herein, ViaLight will exercise commercially reasonable efforts to mitigate ABWN’s liability for Excess Components, Obsolete Components, Slow Moving Inventory and Special Components, including, without limitation, by canceling or rescheduling materials orders, selling materials or utilizing the materials for other customers. However, ViaLight shall obtain prior written consent from ABWN prior to any sale of any A Part Component (as defined in the Product Information Document). Upon request from ABWN, ViaLight shall provide ABWN with evidence of such efforts to mitigate liability. Unless otherwise contained herein, the maximum total ABWN liability for any Slow-Moving Inventory, Excess Components or Obsolete Components may not exceed ViaLight’s unit price for such Components as set forth in the Product Information Document.

 

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	12.5. 	Cancelled Purchase Orders. In the event that ABWN cancels a Purchase Order as per article 7.5, ABWN shall be liable for all costs incurred as a result of that Purchase Order up to the date of cancellation.
	
 
	
 
	
 

	
 
	12.6. 	Exceptions. If the Forecast for any period is reduced due a Warranty defect or due to an Epidemic Failure for which ViaLight bears responsibility, then ABWN shall not be liable (under this section or otherwise) for any Component or Product costs or expenses related to such reduction.

 

	13.	REPORTING

 

	
 
	13.1. 	Accounting Records. ViaLight shall maintain complete and accurate records of all amounts billed and billable to ABWN and payments made by ABWN hereunder (in accordance with U.S. generally accepted accounting practices) for a period of three (3) years following the expiration or termination of this Agreement. ViaLight agrees to provide reasonable supporting documentation concerning any disputed invoice to ABWN within thirty (30) calendar days after ABWN provides written notice of such dispute to ViaLight.

 

	14.	COMMUNICATION

 

	
 
	14.1. 	General Communication. ViaLight agrees to use its commercially diligent efforts to provide ABWN with written notice as soon as commercially practicable upon the occurrence of any event that could affect a Product. This includes, but is not limited to: supply chain issues (e.g., shortages in Components or other materials necessary for the manufacture of a Product, issues with Suppliers or relationships with Suppliers, Supplier corrective action report notices, etc.), design issues (e.g., issues with design validation testing), delivery issues (e.g., transit delays, strikes, etc.) operational issues (e.g., work order fall-outs greater than 90%) and ViaLight business issues (e.g., change in business stability, any material press releases regarding ViaLight business, etc.).
	
 
	
 
	
 

	
 
	14.2. 	Bi-annual Coordination Meetings. ABWN and ViaLight agree to hold bi-annual coordination face-to-face meetings (i.e. 2 times per year) to discuss planning and coordination of program and quality management, location to be mutually agreed (nominally, one at each organization’s location).

 

	15.	QUALITY

 

	
 
	15.1. 	Quality Control. ViaLight acknowledges and agrees that all Products will be designed and manufactured in accordance with ViaLight’s Quality Standards, and in compliance with necessary FAA and similar government agency regulations as notified by ABWN, applicable for similar products and, also, in accordance with the Quality Control Standards set forth by ABWN.
	
 
	
 
	
 

	
 
	15.2. 	Quality Control Personnel. ABWN may, at its option and expense, send its quality control personnel, given 2 calendar weeks’ notice, to ViaLight’s facilities to assist in or observe the work in progress. ABWN may, from time to time, suggest commercially reasonable modifications to ViaLight’s procedures for performing the services under this Agreement for the purpose of enhancing or assuring quality, and ViaLight shall, using ViaLight’s best judgment, act in good faith to either (a) comply with such suggestions or (b) explain to ABWN why any such suggestion is not in the best interests of ABWN or why such suggestion should not be implemented. Changes to VLC or supplier processes, procedures, or quality standards resulting in cost increase or decrease shall be identified as per the ECO clauses above.

 

	 
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	15.3. 	Facility Inspection. ViaLight shall, whenever reasonably requested by ABWN, permit ABWN, or a third party acting on behalf of ABWN, the opportunity to inspect (at ViaLight’s facility) the processes and procedures used by ViaLight to perform its obligations under this Agreement. ABWN and the third party acting on behalf of ABWN shall always respect ViaLight’s instructions regarding confidentiality and protection of business secrets. ABWN shall provide ViaLight with at least two calendar weeks’ (2) notice prior to any such inspection. All such requests will be made from ABWN to ViaLight in writing.

 

	16.	QUARTERLY REVIEWS

 

	
 
	16.1. 	Administrative Reviews. After receipt of the information set forth in Section 16.1, ABWN and ViaLight shall, given one (1) calendar weeks’ notice upon ABWN’s request, meet (by telephone, videoconference or in person) to discuss ViaLight’s performance, prices and other issues relating to this Agreement, including, but not limited to, ViaLight’s performance with regard to technology, quality, cost, availability and ease of doing business (collectively “TQCAB”). At each such meeting, Product prices shall be reviewed for adjustments, and the parties shall agree on the appropriate price adjustments and the manner and the timing of their implementation, on a fair and reasonable basis. The parties will mutually agree upon and set price reduction targets for each of the new two (2) fiscal quarters based on Forecast and other factors affecting price, including, without limitation, those listed in Product Information Documents and identify actions and corresponding responsibilities of the parties required to achieve the target price reductions. If ViaLight fails to implement previously agreed targets with respect to ViaLight TQCAB, then ABWN and ViaLight will cooperate to identify the cause of such failure in order for both parties to achieve the target price reductions afterward.

 

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	17.	TOOLING, TRAINING, ABWN EQUIPMENT & ABWN MATERIALS 

 

	
 
	17.1. 	Provision of ABWN Consigned Items. ABWN may provide ABWN Consigned Items to ViaLight free of charge pursuant to the terms and conditions of this Agreement for use by ViaLight in the design, testing, manufacture and supply of Existing Products (non-exclusively) and for Custom Product exclusively for and to ABWN. ViaLight shall use ABWN Materials on a “first-in, first-out” basis to reduce the risk of obsolete or unusable material.
	
 
	
 
	
 

	
 
	17.2. 	Storage. Except as otherwise provided in the Agreement, ViaLight shall, at its cost, subject to Section 12, be responsible for safekeeping at its manufacturing facility all ABWN Consigned Items and Tooling, shall maintain the same in good condition and repair, except for normal wear and tear, shall store the ABWN Consigned Items and Tooling at such facility in a place that meets the requirements of this Agreement and shall segregate such ABWN Consigned Items and Tooling from other customer’s materials. All such ABWN Consigned Items and Tooling, while in the possession or under the control of ViaLight, shall be at ViaLight’s risk and ViaLight will be liable for any culpably caused damages to ABWN’s Consigned Items. For the avoidance of doubt, any deterioration of ABWN’s Consigned Items caused by ViaLight’s orderly use of ABWN’s Consigned Items or regular tear and wear shall not be considered damage in the sense of the preceding sentence.
	
 
	
 
	
 

	
 
	17.3. 	Orders for ABWN Materials. After execution of this Agreement, ViaLight shall order, take delivery of or pay for, by way of a purchase order, those ABWN Materials, if any, required to manufacture the Products ordered by ABWN within the lead time of Product manufacturing and in accordance with the Purchase Orders issued by ABWN. All purchase orders submitted to ABWN by ViaLight shall include a description of the required ABWN Materials, the quantities ordered, the prices thereof, the proposed Delivery Dates, and such other information as the parties may agree from time to time. Amounts due from ViaLight will be paid no later than forty-five (45) calendar days following the invoice date, which shall be no earlier than the shipment date. ViaLight purchase orders may be issued in writing, by mail or facsimile, or by electronic means, as the parties may from time to time agree.

 

	
 
	17.4. 	Tracking. ViaLight shall maintain complete and accurate records of the quantity of ABWN Materials received from ABWN, along with the quantity used in Products shipped to or on behalf of ABWN and the quantity wasted in the manufacture, test and supply of Products. ViaLight shall provide such records or related information as required from time to time by ABWN during the term of this Agreement, and ABWN may, on ten (10) calendar days’ notice to ViaLight, audit such information at ViaLight’s manufacturing premises. ViaLight shall maintain and properly safeguard any such wasted ABWN Materials, so that they may be audited hereunder and salvaged, should ABWN desire.

 

	 
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	17.5. 	Permitted Use. ABWN grants ViaLight a limited license to use the ABWN Consigned Items and Tooling only as set forth in this Agreement. ViaLight acknowledges and agrees that ViaLight is only a bailee of the ABWN Consigned Items and Tooling on the terms and conditions set out this Agreement, and that ViaLight will use them in accordance with any operation instructions provided or government regulations. ViaLight will not pledge or otherwise encumber the ABWN Consigned Items or Tooling. In the event the premises in which the ABWN Consigned Items or Tooling are installed are encumbered in any way (e.g. a financial institution has a security interest in the premises or property thereon or a landlord), ViaLight shall provide notice to any party having such an interest that (a) the ABWN Consigned Items or Tooling are contained within such premises; (b) the ABWN Consigned Items and Tooling are the property of ABWN; (c) any encumbrance regarding those premises or ViaLight’s property does not extend to the ABWN Consigned Items or Tooling; and (d) ABWN retains its rights of recovery and repossession of the ABWN Consigned Items and Tooling. ViaLight shall immediately report to ABWN: (i) any attempted seizure or attachment of the ABWN Consigned Items or Tooling by ViaLight’s creditors; (ii) any petition in bankruptcy, insolvency, receivership or similar proceedings filed by, or against, ViaLight; or (iii) any arrangement, composition or similar agreement for the benefit of ViaLight’s creditors.
	
 
	
 
	
 

	
 
	17.6.	Prohibited Uses. ViaLight shall use the ABWN Consigned Items and Tooling only for the permitted use as described in this Agreement and only for the exclusive benefit of ABWN. Any use or activity by or on behalf of ViaLight associated with ABWN Consigned Items or Tooling that is not expressly permitted by this Agreement is prohibited. Without limiting the generality of the immediately preceding sentence, ViaLight shall not, and shall not allow others, to: (i) modify, alter, disassemble, cut, destroy, cleave, crush or reverse-engineer ABWN Consigned Items or Tooling; (ii) sell, rent, lend, donate, give any guaranty or security interest in, transfer possession or purport to transfer title in any way of, ABWN Consigned Items or Tooling to any third party; (iii) allow any employee, agent or contractor not adequately trained to work with ABWN Consigned Items or Tooling or not involved in the testing or demonstrations of the ABWN Consigned Items or Tooling to have access to the ABWN Consigned Items or Tooling; or (iv) use or transport the ABWN Consigned Items or Tooling outside of ViaLight’s facilities without written permission from ABWN.
	
 
	
 
	
 

	
 
	17.7. 	Costs. In the event any ABWN Consigned Item or Tooling may require repair, upgrading or calibration or has exceeded its useful life, ViaLight shall so notify ABWN and ABWN shall reimburse or replace such ABWN Consigned Item or Tooling. Both parties acknowledge and agree that such reimbursement shall only be for materially significant, actual incurred costs. While in the possession and under the control of ViaLight, ViaLight shall bear all risk of loss regarding, and be liable for any damage to, the ABWN Consigned Items and Tooling (reasonable wear and tear excepted). ViaLight will assure ABWN that standard manufacturing practices will be applied to the ABWN Consigned Items and Tooling against loss or damage during the term of this Agreement. ViaLight shall pay to ABWN the new replacement cost as assessed by ABWN and agreed by ViaLight, of any ABWN Consigned Item or Tooling that is lost, stolen, destroyed or damaged beyond repair when not adhering to standard manufacturing practices. ViaLight shall bear no risk of loss or not be liable for any damage to the ABWN Consigned Items and Tooling if ABWN delays or refuses to receive ViaLight’s return of such ABWN Consigned Items and Tooling either after expiration or termination of this Agreement or upon ViaLight’s reasonable request. Any item, article, accessory, document or thing supplied in conjunction with the ABWN Consigned Items (including operation manuals) or Tooling not returned to ABWN, at ABWN’s request, and ViaLight is willing to keep upon termination or expiration of this Agreement, shall be paid for by ViaLight in an amount determined by ABWN.

 

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	17.8. 	Tooling. As it applies to ABWN-provided Tooling, the obligations of ViaLight set forth in this article shall apply regardless of whether the Tooling is located at ViaLight’s premises or a third-party premises. ViaLight shall, upon request from ABWN, transfer all right, title and interest to the Tooling to ABWN, free and clear of any liens or other encumbrances. Upon any termination or expiration of this Agreement, ViaLight shall assist and cooperate in good faith with the physical transfer by ABWN of the Tooling to other locations designated by ABWN, at ABWN’s cost.
	
 
	
 
	
 

	
 
	17.9. 	Training. As it applies to ABWN-provided tooling, the obligation to provide training and support rests with ABWN.
	
 
	
 
	
 

	
 
	17.10.	Delivery of ABWN Consigned Items. ViaLight shall, at ABWN’s cost, assist with any customs/export/trade related approvals, duties and/or other obligations as may be required for the delivery of the ABWN Materials, ABWN Equipment and Tooling.

 

	18.	OWNERSHIP

 

	
 
	18.1. 	ABWN Property. Subject to Section 18.2, ABWN shall own all right, title and interest in and to each Custom Product Information Document, all relevant Product(s), or portions of Products currently under accepted Purchase Order, in production with final payment from ABWN.
	
 
	
 
	
 

	
 
	18.1.1. 	Tooling and ABWN Consigned Material ABWN shall own all right, title, and interest to all ABWN-provided Tooling and ABWN Consigned Material.
	
 
	
 
	
 

	
 
	18.2. 	ABWN Inventions and Intellectual Property. Any and all ABWN-generated Product designs, inventions or improvements specifically for ABWN Custom Products are the sole property of ABWN as defined in Exhibit Y Section 1.
	
 
	
 
	
 

	
 
	18.3. 	ViaLight Property. All right, title and interest in and to ViaLight’s Existing Technology, ViaLight’s products, intellectual property rights and Confidential Information (“ViaLight’s Existing Technology” as defined Exhibit E Section 2) shall remain ViaLight’s exclusive property. ViaLight shall retain all right, title and ownership to any discoveries, inventions, technical information, procedures, designs, manufacturing or other processes, software, firmware, technology, know-how or other intellectual property rights comprising ViaLight’s design, design techniques, design data, or manufacturing processes. “ViaLight’s Existing Technology” and “ViaLight Process Technology” shall be deemed “ViaLight Property.”

 

	 
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	18.4. 	Product Licensing. During the term of this Agreement, ViaLight hereby grants to ABWN a worldwide, irrevocable, perpetual, non-exclusive, fully paid, royalty free, right and license to distribute, use, import, export, offer to sell, and sell any Custom Product or ViaLight Product owned by ABWN to any third party. Such right does not include the right to reproduce, re-engineer or divest ViaLight’s underlying Existing Technology.

	
 
	18.4.1. 	Licensing ABWN Inventions and Intellectual Property. Upon request by ViaLight, ABWN shall grant ViaLight a non-exclusive license at standard market conditions to the ABWN Inventions and Intellectual Property incorporated into Existing or Custom Products. The license shall be negotiated between the parties, in good faith, and subject to a separate agreement.

 

	
 
	18.4.2. 	Emergency License. Upon the request of ABWN, ViaLight will grant to ABWN, to the extent legally permitted, a world-wide non-exclusive and timely limited license ("Emergency License”) to all rights that are not already assigned to ABWN under this Agreement and that are necessary to manufacture and distribute a particular Product and for these purposes to use the respective technology, production know-how and other information as contained in respective hardcopy or digital or electronic storage devises ("Manufacturing Information") condition precedent to:

 

	
 
	(i)	a filing of a bankruptcy or insolvency proceeding by or against ViaLight or the insolvency administrator decides not to fulfill this Agreement, or;
	
 
	
 
	
 

	
 
	(ii)	ViaLight’s inability to supply ABWN with the agreed quantity of a particular Product over an uninterrupted period of 9 months.
	
 
	
 
	
 

	
 
	
 
	
The Emergency License is limited to the residual term of this Agreement or ViaLight’s announcement to ABWN to continue supply within a reasonable time, whichever occurs first.

 

	
 
	18.5. 	Assignment. The parties hereby make any and all assignments necessary to accomplish the ownership provisions of this article. In interpreting such ownership provisions, anything made or conceived or reduced to practice by an employee or contractor of a party in the course of performance under this Agreement will be deemed so made or conceived or reduced to practice by that party; each party has and will have appropriate agreements with all such employees and contractors’ necessary to fully effect the provisions of this article.

 

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	18.6. 	Perfection. A party being assigned any proprietary right under this Agreement will have the exclusive right to, and, at such party’s expense, the assigning party agrees to assist such party in every appropriate way (including, without limitation, becoming a nominal party) to, evidence, record and perfect an assignment and to apply for and obtain recordation of, and from time to time enforce, maintain, and defend such proprietary rights. Each party will execute all documents as the other may reasonably request for such purposes.
	
 
	
 
	
 

	
 
	18.7.	Proprietary Rights Notices. ViaLight agrees to properly mark each Product and any accompanying documentation with ABWN’s copyright or other proprietary rights notice, as directed by ABWN, to indicate ABWN’s Intellectual Property Rights in such Products. Unless otherwise provided herein, nothing in this Agreement shall be construed as a grant of any license, right or interest in any trademark, trade name or service mark of either party, or any third party from whom either party may have acquired license rights.
	
 
	
 
	
 

	
 
	18.8. 	Trademark Use. All trademarks, service marks, trade names or logos identifying the ABWN Custom Products or ABWN (the “Marks”) are the exclusive property of ABWN. ViaLight will not take any action that jeopardizes ABWN’s proprietary rights or acquire any rights in the Marks, except as specifically set forth below. ViaLight will not register, directly or indirectly, any trademark, service mark, trade name, copyright, company name or other proprietary or commercial right which is identical or confusingly similar to any Mark or which constitute a translation into other languages. ViaLight will use the Marks exclusively to identify the Products containing ABWN’s Intellectual Property. Any use of the Marks shall clearly identify ABWN as the owner of the Marks. ViaLight will immediately notify ABWN if ViaLight learns (i) of any potential infringement of any Mark by a third party, or (ii) that the use of any Mark may infringe the proprietary rights of a third party. ABWN will determine the steps to be taken in those circumstances. In connection with any potential infringement of or by any Mark, ViaLight will (i) provide ABWN with the assistance that ABWN may reasonably request, and (ii) not take steps on its own without ABWN’s prior approval.

 

	19.	WARRANTIES

 

	
 
	19.1. 	Authority. Each party warrants that it has the right and authority to enter into this Agreement and perform its obligations hereunder.
	
 
	
 
	
 

	
 
	19.2. 	Quality. ViaLight shall perform and hereby warrants that all Products, when delivered in accordance with the purchase order, will have passed the test and quality control procedures set forth in the Operations Supplier Quality Manual and will meet the associated Product Specifications for such Product.

 

	 
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	19.4. 	Service Warranty. Any and all warranty services to be provided by ViaLight hereunder shall be performed to a standard reasonably acceptable in the industry.
	
 
	
 
	
 

	
 
	19.5. 	Design Warranty. ViaLight shall perform the Design Services so as to produce a Final Deliverable that conforms in all material respects to the associated Product Information Document, the associated Statement of Work and the associated ABWN Requirements Document.
	
 
	
 
	
 

	
 
	19.6. 	Warranty Process. Products that fail to meet the Warranty during the Warranty Period shall be returned to ViaLight (pursuant to the RMA process set forth in Section 19.9) and, at ABWN’s option, ViaLight shall, at ViaLight’s cost and decision, promptly repair or replace such Product at no cost to ABWN. All Products repaired or replaced under warranty shall be warranted for a period equal to the remainder of the original Warranty Period.
	
 
	
 
	
 

	
 
	19.7. 	Out of Warranty Process. Products that fail to meet the Warranty after the Warranty Period shall be returned to ViaLight (pursuant to the RMA process set forth in Section 19.9) and ViaLight shall promptly repair such Product, if appropriate. ABWN shall pay the fee set forth in the associated Product Information Document for all such repairs.
	
 
	
 
	
 

	
 
	19.8. 	Replacement of Product. Upon request from ABWN, ViaLight will deliver a replacement of any Product that does not meet the Warranty requirements (whether or not under the Warranty Period). 
	
 
	
 
	
 

	
 
	19.9. 	Product Returns. Within forty-eight (48) hours after receipt of a request to return a Product, ViaLight shall issue a Return Materials Authorization number (“RMA”). If no RMA is issued within two (2) business days plus a one (1) business day grace period (three (3) business days total), ABWN may return such Product without further notice to ViaLight and without an RMA. In the event that a Product is determined to not meet the Warranty, ViaLight shall pay all costs associated with the transportation of such returned Product, including the cost of transportation from ABWN to ViaLight’s premises, and when applicable, transportation of replacement or repaired Products to ABWN, as well as all insurance costs associated with such returned Products and such repaired and replacement Products. In all other circumstances, freight costs shall be paid by ABWN. Any Products repaired by ViaLight shall not be considered as “new” Products.

 

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	19.10. 	Failure Analysis. ViaLight shall, within ten (10) calendar days of receipt of any Product, complete a basic failure analysis on such Product. Upon ABWN’s request, ViaLight shall perform next level failure analysis and deliver a written report of such analysis and ViaLight’s findings within ten (10) calendar days.
	
 
	
 
	
 

	
 
	19.11. 	No Trouble Found (“NTF”) – In-Warranty / Out of Warranty. To the extent the monthly (by calendar month) NTF rate for a particular Product does not exceed the percentage specified in the associated Product Information Document (“NTF Percentage”), there will be no charge associated with any Product returned which is determined by ViaLight to be NTF after testing. NTF charges, which may be established and amended by both parties in writing from time to time, will apply only in the event that the number of products determined to be NTF exceeds the NTF Percentage of the total of such Product returned to ViaLight for repair within any calendar month. 
	
 
	
 
	
 

	
 
	19.12. 	Epidemic Failure. If, during any consecutive ninety (90) calendar day period of the term during this Agreement, the percentage of Products that fail to meet the Warranty (as a result of the same symptom and same cause) is cumulatively equal to or in excess of the “Product Warranty Failure Percentage” set forth in the associated Product Information Document for the same cause, then such failure shall be considered an “Epidemic Failure.”
	
 
	
 
	
 

	
 
	19.13. 	Warranty Exclusions. Warranties set forth in this Article 19 shall not apply to defects or malfunction of a Product arising from (i) improperly installed, repaired, altered or otherwise modified (other than by ViaLight or ViaLight’s Subcontractors); (ii) misuse, abuse, negligence or accident, (other than by ViaLight or ViaLight’s Subcontractors); or (iii) ABWN Materials, if any.
	
 
	
 
	
 

	
 
	19.14. 	General Warranty Exclusions. Except for those defined in articles 19.1 through 19.5, all other Warranties are excluded.

 

	20.	TERM AND TERMINATION

 

	
 
	20.1. 	Term. This Agreement shall begin upon the Effective Date and, unless earlier terminated as provided herein, shall continue in effect for five (5) years (“Initial Term”). The Agreement shall automatically renew for additional one (1) year terms unless and until either party provides written notice of non-renewal at least one (1) year prior to the end of any such term.

 

	 
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	20.2. 	Termination of Agreement.
	
 
	
 
	
 

	
 
	20.2.1. 	For Breach. If a party materially breaches any provision of this Agreement, the non-breaching party may terminate this Agreement upon thirty (30) calendar days written notice (fifteen (15) calendar days for breach of Section 9.4, Payment Terms) thereof unless such breach is cured within the applicable notice period. 
	
 
	
 
	
 

	
 
	20.2.2. 	Termination for Convenience. Either party may terminate this Agreement, or any part thereof, at any time for its sole convenience by giving twelve (12) month advance written notice of termination to the other party. Upon receipt of such notice from ABWN, ViaLight will, except to the extent otherwise specified in such notice, immediately stop all work previously authorized.
	
 
	
 
	
 

	
 
	20.2.3. 	Effect of Termination. No termination or expiration of this Agreement shall (i) relieve either party from any of its obligations hereunder which have accrued on or before the effective date of such termination or expiration, including, without limitation, any obligation to pay to the other party any and all amounts owed pursuant to this Agreement; (ii) affect any rights of either party with respect to any breach of this Agreement; or (iii) cancel any purchase order for the Product placed by ABWN and accepted by ViaLight pursuant to this Agreement. Unfilled purchase orders (or portions thereof) that are not cancelled by the non-breaching party will be filled and paid for in accordance with the terms of this Agreement. 
	
 
	
 
	
 

	
 
	20.3. 	Survivability and Obligations Upon Termination. Sections 8.5, 9.4, 13.1, 13.2, 17.7, 17.8, and Articles 18 through 29, inclusive, shall survive the termination of this Agreement. Furthermore, in the event of any termination or expiration of this Agreement (a) ViaLight shall deliver all Tooling, ABWN Equipment and ABWN Material to ABWN within five (5) business days after termination or otherwise agreed period (or upon ABWN’s demand), (b) each party shall return or destroy the other party’s Confidential Information.

 

	21.	TRANSITION SERVICES

 

	
 
	21.1. 	Transition after Termination. Following any termination or expiration of this Agreement, each party shall assist and cooperate in good faith with the other party to enable an orderly dissolution of the relationship created by this agreement. For the avoidance of doubt, nothing in this Agreement shall constitute or be interpreted as an obligation to ViaLight to transfer, license or make available any information, know-how or IP-rights regarding ViaLight Property to ABWN or a third party for the period following its termination or expiration.

 

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	22.	EXPORT. In exporting and importing Products, each party agrees (a) to comply with all export and import laws, rules, policies, procedures, restrictions and regulations of the Department of Commerce or other United States or foreign agency or authority, and (b) not to export or import, or allow the export or re-export or import of any goods in violation of any such restrictions, laws or regulations. Each party shall obtain all licenses, permits and approvals required by any government in connection with performing its obligations hereunder; provided, however, that in doing so each party shall at all times fully protect the Confidential Information and proprietary rights of the other party. ABWN shall provide the export classification for each Product to ViaLight. Each party will indemnify and hold the other party harmless for any breach by such party of this Article 22. 

 

	23.	INDEPENDENT CONTRACTOR. Each party shall be deemed to be an independent contractor to the other party, and not its agent, joint venture, partner or employee. Neither party shall have any authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other party. 

 

	24.	CONFIDENTIALITY

 

	
 
	24.1. 	Proprietary Information. Prior to and during the performance of their obligations specified in this Agreement, the parties may disclose or furnish to each other proprietary marketing, technical or business information that constitute confidential information due to its nature, either verbally or in tangible form (the “Confidential Information”); the Product Information Documents, any information concerning Product design, construction, assembly, manufacture, development, or architecture of a Product and information concerning Customers shall be deemed to be the Confidential Information of ABWN. Confidential Information of the disclosing party shall be held in confidence by the receiving party and not directly or indirectly disclosed, copied or used by the receiving party (except as necessary to perform under this Agreement). Each party agrees that, except as may be required by law, including the rules and regulations of the United States Securities and Exchange Commission, the terms and existence of this Agreement are confidential, and neither party shall disclose such information. Notwithstanding the foregoing, each party may, without further consent of the other party, disclose the contents of this Agreement to its shareholders, potential acquirers, accountants, professional and financial advisors, insurers and other persons necessary for the functioning of such party’s business operations.
	
 
	
 
	
 

	
 
	24.2. 	Non-Confidential Information. Confidential Information shall not include information that (a) is already known to the receiving party without any obligation of confidentiality; (b) has entered the public domain through no action or inaction of the receiving party; (c) is generally available to the public; (d) was disclosed to the receiving party by a third party not in violation of the disclosing party’s proprietary rights or (e) independently developed by the receiving party without access to the Confidential Information or (f) is required to be disclosed in accordance with a judicial or other governmental order; provided, however, the receiving party, subject to what is permitted under the applicable law, either (i) gives the disclosing party reasonable notice prior to such disclosure to allow the disclosing party a reasonable opportunity to seek a protective order or equivalent, or (ii) obtains a written assurance from the competent judicial or governmental entity that it will afford Confidential Information the highest level of protection afforded under the applicable law.

 

	 
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	24.3.	Injunction. The Confidential Information of the disclosing party constitutes valuable trade secrets of the disclosing party and the unauthorized disclosure or use of such Confidential Information by the receiving party will cause irreparable harm, for which no remedies of law will be adequate. Accordingly, the disclosing party shall be entitled to injunctive relief against the receiving party in the event that the receiving party breaches the confidentiality obligations set forth in this article.

 

	
 
	24.4. 	Insider Trading. ViaLight acknowledges that it is aware that ABWN is a publicly-traded company and that ABWN’s Confidential Information may constitute material non-public information under U.S. securities laws and regulations. As such, ViaLight shall ensure that its Officers and Directors are contractually prohibited from transacting in ABWN’s securities based on such Confidential Information or from communicating such Confidential Information to others in connection with the trading of such securities.
	
 
	
 
	
 

	
 
	24.5. 	Data Security. The receiving party shall implement safeguards and procedures to prevent unauthorized access to, and the destruction, loss, misuse or improper alteration of, all Confidential Information of the disclosing party. If the receiving party becomes aware of any unauthorized access to the disclosing party’s Confidential Information, it shall report immediately in detail such incident to the disclosing party and take appropriate remedial actions. ViaLight will comply with written requirements mutually agreed to by ABWN and ViaLight for ViaLight and ViaLight’s Subcontractors, as ViaLight is notified of such requirements which may be revised from time to time. In addition to such requirements, ViaLight will also adhere to data security requirements and procedures, that provide for, without limitation: (i) appropriate industry standard security systems, computers and technologies, including firewalls and encryption; (ii) for certain equipment (e.g. classified equipment) physical security procedures, including security guards and regular monitoring of all work areas; (iii) background checks on all of ViaLight’s personnel and Subcontractors; (iv) restriction of use and copying of ABWN Confidential Information on a “need-to-know” basis and only at authorized locations; (v) appropriate levels of regular monitoring of the transport and storage of ABWN Confidential Information; (vi) appropriate levels of regular monitoring of password procedures; and (vii) appropriate levels of regular and random monitoring of Suppliers, Subcontractors and employees providing Design Services or working on Existing or Custom Products deliverable to ABWN.

 

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	25.	INDEMNIFICATION

 

	
 
	25.1. 	ABWN Indemnification of ViaLight. ABWN shall indemnify, defend, and hold harmless ViaLight and its employees, directors, officers, agents, subsidiaries, successors and assigns (each a “ViaLight Party”) from any costs deriving from and against third party claims asserted against each ViaLight Party to the extent such claims (I) assert that (a) the ABWN Requirements Documents (or any process, method, design, product or component that directly and necessarily results from compliance with the ABWN Requirements Documents); (b) ABWN Consigned Items; (c) Marks; or (d) modifications made to each Product Information Document as instructed by ABWN, infringes any patent, trademark, mask work, copyright, trade secret or other intellectual property right of a third party; or (II) are based on the gross negligence or willful misconduct of ABWN or its agents; provided, however, (i) ViaLight gives prompt written notice of each such claim; and (ii) ViaLight reasonably cooperates in the defense or settlement of each such claim. ViaLight may participate in the defense of each such claim, with its own counsel at its own expense. ABWN shall pay any final judgment on each such claim and will pay any settlement costs to which it agrees. ABWN shall not be responsible for any settlement costs to which it does not agree in writing.
	
 
	
 
	
 

	
 
	25.2. 	ViaLight Indemnification of ABWN. ViaLight shall indemnify, defend, and hold harmless ABWN and its employees, directors, officers, subsidiaries, agents, successors and assigns (each an “ABWN Party”) from any costs deriving from and against third party claims asserted against each ABWN Party to the extent such claims (a) assert that the design or manufacturing process used by ViaLight in the manufacture of Products hereunder or the design of a Product or any method, process outlined in or component of a Product Information Document infringes any patent, trademark, mask work copyright, trade secret or other intellectual property right of a third party; or (b) are based on the gross negligence or willful misconduct of ViaLight or its agents; provided, however, ABWN shall be required to (i) give ViaLight prompt written notice of each such claim and (ii) ABWN reasonably cooperates in the defense or settlement of each such claim. ViaLight shall pay any final judgment on each such claim and will pay any settlement costs to which it agrees. ViaLight shall not be responsible for any settlement costs to which it does not agree in writing. This section does not apply to the extent each such claim is specific to the (A) ABWN Consigned Items, or other materials procured from ABWN’s designated suppliers or otherwise provided by ABWN; (B) unauthorized modifications or other unauthorized alterations made by a party other than ViaLight to a Product after delivery; (C) modifications or other alterations made to a Product Information Document as instructed by ABWN; (D) process, method, design, product or component that directly and necessarily results from compliance with an ABWN Requirements Document or have been specifically requested by ABWN ; or (E) Marks.
	
 
	
 
	
 

	
 
	25.3. 	Correction. If ViaLight reasonably believes that a certain manufacturing process or method used by ViaLight in the manufacture of a Product or the manufacture or sale or use of a Product may be enjoined, ViaLight shall use all diligent commercial efforts to either promptly (a) procure for ABWN the right to continue to use the same or (b) replace or modify the same to make it non-infringing.

 

	 
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	26.	LIENS AND SECURITY INTERESTS. During the term of this Agreement, ViaLight warrants that ViaLight has not and will not, directly or indirectly create, incur or permit to exist any lien, encumbrance or security interest on or with respect to the Components or Products or any portion thereof.

 

	27.	NON-COMPETITION AND NON-SOLICITATION

 

	
 
	27.1. 	Non-Competition. During the term of this Agreement and for a period of twelve (12) months after the termination or expiration of this Agreement (the “Non-Competition Period”), ViaLight shall not, and shall cause each of its Affiliates not to, directly or indirectly, anywhere in the United States or within any other geographical area or territory in the world where ABWN’s Products and Services are promoted, marketed, sold, distributed or used, engage in the business of owning, licensing, developing, marketing, manufacturing, producing, selling or distributing products and services that compete with ABWN’s Products and Services and the application of ABWN’s commercial manned aircraft to manned aircraft airborne mesh network up to 12km altitude.
	
 
	
 
	
 

	
 
	27.2. 	Non-Solicitation. During the Non-Competition Period, the Parties shall not, and shall cause each of their Affiliates not to, (a) directly or indirectly, hire, engage or employ (as an employee, consultant or otherwise) any employee or independent contractor of the other Party (collectively, “Employees”), (b) by or through any director, officer or agent of either Party, directly or indirectly, solicit for employment or the engagement of services of any Employee or induce or attempt to induce any Employee to leave his or her employment with the respective Party, or in any way intentionally interfere with the employment relationship between any Employee and the respective Party, in each case, for the purpose of employing or engaging the services of such Employee or soliciting such Employee to become an employee or consultant of the other Party or any of their Affiliates or any other person; provided, however, that nothing herein shall preclude a Party from employing or soliciting any Employee (i) who independently responds to any public advertisement or general solicitation (such as a newspaper advertisement or internet posting) not specifically targeting such a Party’s Employee or (ii) following the termination of such Party’s Employee’s employment with the Party for any reason; provided, however, that one Party has not induced such Employee from the other Party to terminate his or her employment in breach of the initiating Party’s obligations hereunder, or (c) take any action or attempt to take any action with the intent of impairing any material relationship, contractual or otherwise, between a Party and any customer, supplier, consultant, independent contractor, distributor, or reseller.

 

4115 Guardian Street • Suite - C • Simi Valley • California 93063-3382 • Telephone +1 805-583-4302 • www.airbornewirelessnetwork.com

 

	 
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	27.3. 	Reasonableness of Restrictions. ViaLight acknowledges that the restrictive covenants contained in this article are necessary for the protection of the business investment by Airborne in the acquisition of the Products pursuant to this Agreement and are reasonable in terms of time, geographic area, scope and content.
	
 
	
 
	
 

	
 
	27.4. 	Remedies. ABWN and ViaLight acknowledge that either or both Parties shall be damaged irreparably in the event any of the provisions of this article are not performed in accordance with their specific terms or otherwise are breached, and money damages or other legal remedies would not be an adequate remedy for any such damages. It is, accordingly, agreed that in addition to any other remedies available to either Party pursuant to this Agreement, or otherwise, (i) either Party shall be entitled to an injunction or injunctions to prevent breaches of this article and to enforce specifically the terms and provisions of this article, without bond or other security being required, and (ii) the right of specific enforcement is an integral part of the transactions and relationship contemplated by this Agreement and without those rights, neither Party would not have entered into this Agreement.

 

	28.	MISCELLANEOUS.

 

	
 
	28.1. 	Assignability. Neither party shall transfer or assign any of its rights or obligations hereunder without the prior written consent of the other party and any transfer or obligations hereunder without the prior written consent of the both parties shall be void and of no effect. Notwithstanding the foregoing, ABWN may assign this Agreement without consent to an acquirer of all or substantially all of ABWN’s equity, assets or business; however, that such acquirer is not the competitor of ViaLight.
	
 
	
 
	
 

	
 
	28.2. 	Insurance. ViaLight shall maintain (at its own expense) all necessary insurance required by local laws or statutes of those jurisdictions in which ViaLight has operations, which may include, but not limited to, workmen’s compensation, disability, and unemployment insurance, as well as public liability, product liability, property damage, and automobile liability insurance against any and all losses, claims, demands, proceedings, damages, costs, charges and expenses for injuries or damage to any person or property arising out of or in connection with this Agreement that are the result of the fault or negligence of ViaLight.
	
 
	
 
	
 

	
 
	28.3. 	Obligatory Nature; No Third-Party Beneficiary. The terms and provisions of this Agreement shall be obligating and inure to the benefit of the parties, and their respective successors and permitted assigns, and is made solely and specifically for their benefit. No other person shall have any right, interest or claim hereunder or be entitled to any benefits under or on account of this Agreement as a third-party beneficiary or otherwise.

 

	 
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	28.4. 	Waiver. No waiver of any covenant, representation, warranty, condition, or limitation specified in this Agreement shall be valid unless the same is made in writing and duly executed by the party making the waiver. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver.
	
 
	
 
	
 

	
 
	28.5. 	Number and Gender. Whenever the singular number is used in this Agreement, and when required by the context, the same shall include the plural, and vice versa; the masculine gender shall include the feminine and neuter genders, and vice versa; and the word "person" shall include corporation, firm, trust, estate, joint venture, governmental agency, sole proprietorship, political subdivision, company, congregation, organization, fraternal order, club, league, society, municipality, association, joint stock company, partnership or other form of entity, whether active or passive.
	
 
	
 
	
 

	
 
	28.6. 	Governing Law and Venue. This Agreement shall in all respects be governed by and construed in accordance with the laws of the State of California, without regard to conflicts of law’s provisions and without regard to the United Nations Convention on Contracts for the International Sale of Goods. The sole and exclusive venue and jurisdiction for all disputes arising from this Agreement shall be the state and federal courts located in Los Angeles County, California, and each party hereby consents to such jurisdiction and venue.

 

	
 
	28.7. 	Severability. In the event any provision of this Agreement or the subject matter of this Agreement, for any reason, is determined by a court of competent jurisdiction to be invalid, such determination shall not affect the validity of any remaining provision or subject matter of this Agreement, which remaining provision or subject matter shall remain in full force and effect as if this Agreement had been executed with the invalid provision or subject matter thereof eliminated. It is hereby declared the intention of the parties that they would have executed the remaining provisions or subject matter of this Agreement without including any such provision or subject matter which, for any reason, may be hereafter determined to be invalid.
	
 
	
 
	
 

	
 
	28.8. 	Entire Agreement. This Agreement is the final written expression and the complete and exclusive statement of all the agreements, conditions, promises, representations, warranties and covenants among the parties with respect to the subject matter of this Agreement; and this Agreement supersedes all prior or contemporaneous agreements, negotiations, representations, warranties, covenants, understandings and discussions by and among the parties, their respective representatives, and any other person, with respect to the subject matter specified in this Agreement. Each of the parties represents, warrants and covenants that, in executing this Agreement, such party has relied solely on the terms, conditions and provisions specified in this Agreement. Each of the parties, additionally, represents, warrants and covenants that, in executing and delivering this Agreement, such party has placed no reliance whatsoever on any statement, representation, warranty, covenant or promise of the other party, or any other person, not specified expressly in this Agreement, or upon the failure of any party or any other person to make any statement, representation, warranty, covenant or disclosure of any nature whatsoever. The parties have included this section to preclude (i) any claim that any party was in any manner whatsoever induced fraudulently to enter into, execute and deliver this Agreement and (ii) the introduction of parol evidence to vary, interpret, supersede, modify, amend, annul, supplement or contradict the terms, conditions and provisions of this Agreement.

 

4115 Guardian Street • Suite - C • Simi Valley • California 93063-3382 • Telephone +1 805-583-4302 • www.airbornewirelessnetwork.com

 

	 
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	28.9. 	Notices. Any notice, direction or instrument required or permitted to be given pursuant to this Agreement shall be given in writing by (a) telegram, facsimile transmission, electronic transmission, or similar method, if confirmed by mail as herein provided; (b) by mail, if mailed postage prepaid, by certified mail, return receipt requested; or (c) hand delivery to any party at the addresses of the parties specified below. If given by telegram, facsimile transmission, electronic transmission or similar method or by hand delivery, such notice, direction or instrument shall be deemed to have been given or made on the day on which it was given, and if mailed, shall be deemed to have been given or made on the second (2nd) business day following the day after which it was mailed. Any party may, from time to time by similar notice, give notice of any change of address, and in such event, the address of such party shall be deemed to be changed accordingly. The address, telephone number and facsimile transmission number for the notice of each party are:

 

If to ViaLight:

 

ViaLight Communications GmbH

Friedrichshafenerstr.1, 

D-82205 Gilching, Germany

Facsimile number: __________________________

Email Address: _____________________________

 

If to ABWN:

 

4115 Guardian Street, 

Suite C, Simi Valley, 

California 93063, U.S.A.

Facsimile number: __________________________

Email Address: _____________________________

 

or at such other address as the party affected may designate in a written notice to such other party in compliance with this section.

 

	 
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	28.10. 	Captions and Interpretations. Captions of the provisions of the articles and sections of this Agreement are for convenience and reference only, and the words specified therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction, or meaning of the provisions of this Agreement. The provisions of this Agreement, in all cases, shall be construed in accordance with the fair meaning of those provisions, as if prepared by both parties and not strictly for or against either party. Each party has reviewed this Agreement. The rule of construction which requires a court to resolve any ambiguities against the drafting party shall not apply in interpreting the provisions of this Agreement.
	
 
	
 
	
 

	
 
	28.11. 	Amendments. Any provision hereof may be amended and the observance of any provision of this Agreement may be waived (either generally or in any particular instance and either retroactively or prospectively) only with the written consent of ABWN and ViaLight. It is the intention of the parties, however, that this Agreement control as to additional or different terms of any invoices, confirmations or similar documents (other than additional terms (e.g. quantities, proposed shipping dates, etc.) expressly contemplated herein as to be supplied in such documents) even if accepted in writing by both parties. 
	
 
	
 
	
 

	
 
	28.12. 	Execution in Counterparts. This Agreement may be prepared in multiple copies and forwarded to each of the parties for execution. The signatures of both of the parties may be affixed to one copy or to separate copies of this Agreement, and when all such copies are received and signed by both of the parties, those copies shall constitute one agreement, which is not otherwise separable or divisible.
	
 
	
 
	
 

	
 
	28.13. 	Force Majeure. If any party is rendered unable, completely or partially, by the occurrence of an event of "force majeure" (hereinafter defined) to perform such party's obligations created by the provisions of this Agreement, such party shall give to the other party prompt written notice of the event of "force majeure" with reasonably complete particulars concerning such event; thereupon, the obligations of the party giving such notice, so far as those obligations are affected by the event of "force majeure," shall be suspended during, but no longer than, the continuance of the event of "force majeure." The party affected by such event of "force majeure" shall use all reasonable diligence to resolve, eliminate and terminate the event of "force majeure" as quickly as practicable. The requirement that an event of "force majeure" shall be remedied with all reasonable dispatch as hereinabove specified, shall not require the settlement of strikes, lockouts or other labor difficulties by the party involved, contrary to such party's wishes, and the resolution of any and all such difficulties shall be handled entirely within the discretion of the party concerned. The term "force majeure" as used in this Agreement shall be defined as and mean any act of God, strike, civil disturbance, lockout or other industrial disturbance, act of the public enemy, war, blockade, public riot, earthquake, tornado, hurricane, lightning, fire, public demonstration, storm, flood, explosion, governmental action, governmental delay, restraint or inaction, unavailability of personnel, unavailability of equipment, and any other cause or event, whether of the type enumerated specifically in this section or otherwise, which is not reasonably within the control of the party claiming such suspension.

 

4115 Guardian Street • Suite - C • Simi Valley • California 93063-3382 • Telephone +1 805-583-4302 • www.airbornewirelessnetwork.com

 

	 
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	28.14. 	Consent to Agreement. By executing this Agreement, each party, for itself represents such party has read or caused to be read this Agreement in all particulars, and consents to the rights, conditions, duties and responsibilities imposed upon such party as specified in this Agreement. Each party represents, warrants and covenants that such party executes and delivers this Agreement of its own free will and with no threat, undue influence, menace, coercion or duress, whether economic or physical. Moreover, each party represents, warrants, and covenants that such party executes this Agreement acting on such party's own independent judgment.

 

The parties agree to amend and update the Exhibits as necessary upon mutual agreement.

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, all as of the Effective Date. 

 

 

	
ViaLight Communications GmbH
	
 
	
ABWN
	
 

	
 
	Markus Knapel	
 
	
 
	/s/ Michael J Warren	
 

	
By:
	
/s/ Markus Knapel
	
 
	
By:
	
Michael J Warren
	
 

	
Title:
	
CEO
	
 
	
Title:
	
CEO
	
 

 

 

	
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