Document:

Exhibit 4.10

 

Execution Copy

 

Loan Agreement - Affimed Group

 

(1)                                Affimed GmbH (as Borrower)

 

(2)                                Affimed N.V. (as Guarantor)

 

(3)                                Silicon Valley Bank (as Bank)

 

Dated 8 January 2021

 

OSBORNE CLARKE RECHTSANWÄLTE STEUERBERATER PARTNERSCHAFT MBB

 

osborneclarke.com

 

 

Table of Content

 

	
Clause
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
Accounting and other   Terms
    	
 
    	
3
    
	
2.
    	
Loan and Terms of   Payment
    	
 
    	
3
    
	
3.
    	
Conditions of Loans
    	
 
    	
7
    
	
4.
    	
Security Documents
    	
 
    	
9
    
	
5.
    	
Representations and   Warranties
    	
 
    	
9
    
	
6.
    	
Affirmative Covenants
    	
 
    	
12
    
	
7.
    	
Negative Covenants
    	
 
    	
15
    
	
8.
    	
Events of Default
    	
 
    	
16
    
	
9.
    	
Bank’s Rights and   Remedies
    	
 
    	
19
    
	
10.
    	
Guarantee (Garantie) and indemnity (Ausfallhaftung)
    	
 
    	
23
    
	
11.
    	
Notices
    	
 
    	
25
    
	
12.
    	
Choice of Law and   Jurisdiction
    	
 
    	
26
    
	
13.
    	
General Provisions
    	
 
    	
26
    
	
14.
    	
Definitions
    	
 
    	
29
    

 

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LOAN AGREEMENT

 

TERM LOAN

 

(EUROS)

 

This LOAN AGREEMENT (this “Agreement”) is made on 8 January 2021

 

between

 

(1)                                Affimed GmbH, a limited liability company incorporated under the laws of Germany registered with the Commercial Register of the local court of Mannheim under registration number HRB 721206 and whose registered office is at Im Neuenheimer Feld 582, 69120 Heidelberg, Germany (the “Borrower”);

 

(2)                                Affimed N.V., a limited liability company (naamloze vennootschap), incorporated and existing under the laws of the Netherlands, having its official seat in Amsterdam and its registered office address at Im Neuenheimer Feld 582, 69120 Heidelberg, Germany and registered with the trade register of the Dutch Chambers of Commerce under registration number 60673389 (the “Guarantor”), and

 

(3)                                SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054, United States of America acting through its branch at Guiollettstraße 48, 60325 Frankfurt am Main, Germany (the “Bank”)

 

it is agreed as follows:

 

1.                                     ACCOUNTING AND OTHER TERMS

 

1.1                              Accounting Terms. Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP; provided that if at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either Borrower or Bank shall so request, Borrower and Bank shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; provided, further, that, until so amended, (a) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (b) Borrower shall provide Bank financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. Notwithstanding the foregoing, all financial calculations (whether for pricing, covenants, or otherwise) shall be made on a consolidated basis. The term “financial statements” includes the notes and schedules.

 

1.2                              Definitions and interpretation. Capitalised terms not otherwise defined in this Agreement shall have the meanings set out in Clause 14 (Definitions) and the principles of interpretation set out in Clause 14 (Definitions’) shall apply to this Agreement.

 

2.                                     LOAN AND TERMS OF PAYMENT

 

2.1                              Term Loan.

 

(a)                                Availability. Bank shall make one (1) term loan facility available to Borrower in an amount up to the Term Loan Amount in Euros subject to the satisfaction of the terms and conditions of this Agreement in up to three tranches as follows:

 

(i)                                   tranche 1 (“Tranche 1”) is an amount up to the Tranche 1 Term Loan Amount, available for drawdown on any Business Day during the Tranche 1 Availability Period;

 

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(ii)           tranche 2 (“Tranche 2”) is an amount up to the Tranche 2 Term Loan Amount available for drawdown on any Business Day during the Tranche 2 Availability Period (if the Tranche 2 Conditions are satisfied and the Borrower has elected to draw down Tranche 2); and

 

(iii)          tranche 3 (“Tranche 3”) is an amount up to the Tranche 3 Term Loan Amount available for drawdown on any Business Day during the Tranche 3 Availability Period (if the Tranche 3 Conditions are satisfied and the Borrower has elected to draw down Tranche 3).

 

(b)                                Repayment.

 

(i)                                     Repayment of Tranche 1: Borrower shall repay Tranche 1 as follows:

 

(A)          where the Borrower has drawn down under Tranche 3, in twenty-nine (29) equal instalments of €333,333.33 beginning on 1 June 2023 and one final instalment of €333,333.43, each such instalment shall be payable on the last Business Day of each month, with the first instalment to be made on Friday, 30 June 2023; or

 

(B)          where the Borrower has not drawn down under Tranche 3, in thirty-five (35) equal instalments of €277,777.77 beginning on 1 December 2022 and one final instalment of €277,778.00, each such instalment shall be payable on the last Business Day of each month, with the first instalment to be made on Friday, 30 December 2022.

 

(ii)                                  Repayment of Tranche 2: Borrower shall repay Tranche 2 as follows:

 

(A)          where the Borrower has drawn down under Tranche 3, in thirty (30) equal instalments of €250,000.00 beginning on 1 June 2023, each such instalment shall be payable on the last Business Day of each month, with the first instalment to be made on Friday, 30 June 2023; or

 

(B)          where the Borrower has not drawn down under Tranche 3, in thirty-five (35) equal instalments of €208,333.33 beginning on 1 December 2022 and one final instalment of €208,333.45, each such instalment shall be payable on the last Business Day of each month, with the first instalment to be made on Friday, 30 December 2022.

 

(iii)          Repayment of Tranche 3: Borrower shall repay Tranche 3 in thirty (30) equal instalments of €250,000.00 beginning on 1 June 2023, each such instalment shall be payable on the last Business Day of each month, with the first instalment to be made on Friday, 30 June 2023.

 

(iv)          Borrower shall repay all principal, interest, and other amounts outstanding under this Agreement in full on the Term Loan Maturity Date.

 

(c)                                 Purpose. Borrower shall apply amounts borrowed by it under the Facility towards its general corporate purposes.

 

(d)                                Mandatory Prepayment Upon Change in Control. If a Change in Control occurs:

 

(i)                                    the Borrower shall promptly notify Bank upon becoming aware of that Change in Control;

 

(ii)                                  Bank shall not be obliged to fund a Credit Extension; and

 

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(iii)          if Bank so requires, within 14 days of Borrower notifying Bank of the Change in Control, cancel the Facilities made available under this Agreement and declare all outstanding Term Loans to be due and payable together with (A) all accrued interest on the Term Loans plus (B) all other sums, if any, that shall have become due and payable, with respect to any past due amounts.

 

If the Bank has not exercised its right to require prepayment under paragraph (iii) above, it shall continue to be obliged to fund a Credit Extension after expiry of the 14 days period mentioned in paragraph (iii) above.

 

(e)                                Mandatory Prepayment Upon an Acceleration. If the Term Loan is accelerated following the occurrence of an Event of Default, Borrower shall immediately pay to Bank an amount equal to the sum of: (i) all outstanding principal plus accrued interest plus (ii) all other sums, if any, that shall have become due and payable, including interest at the Default Rate applicable to any such sum.

 

(f)                                 Permitted Prepayment of Term Loan. Borrower shall have the option to prepay the Term Loans advanced by Bank under this Agreement prior to the Term Loan Maturity Date, provided (i) Borrower provides written notice to Bank of its election to prepay the whole of the Term Loans at least thirty (30) days prior to such prepayment, and (ii) Borrower pays, in the case of prepayment of the entirety of the Term Loans, on the date of such prepayment (A) all outstanding principal plus accrued interest on the Term Loans plus (B) all other sums, if any, that shall have become due and payable, with respect to any past due amounts.

 

2.2                             Payment of Interest on Term Loan.

 

(a)                               Interest Rate.

 

Subject to Clause 2.2(b) (Default Rate), each Term Loan shall accrue interest at a rate equal to the aggregate of (i) Euro Base Rate and (ii) the Margin per annum. Interest shall be payable in accordance with Clause 2.2(d) (Payments) below.

 

(b)                               Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations (other than interest) shall bear interest at a rate per annum which is three percentage points (3.00%) above the rate that is otherwise applicable thereto (the “Default Rate”) unless Bank otherwise elects from time to time in its sole discretion to impose a smaller increase. If the Borrower fails to pay interest payable by it under the Loan Documents on its due date, lump sum damages (pauschalierter Schadensersatz) shall accrue on the overdue amount from the due date up to the date of actual payment at a rate which is 3% (300 basis points) per annum higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Term Loan drawing for successive interest periods, each of a duration selected by the Bank (acting reasonably). In the case of lump sum damages, the Borrower shall be free to prove that no damages have arisen or that damages have not arisen in the asserted amount and the Bank shall be entitled to prove that further damages have arisen. Fees and expenses which are required to be paid by Borrower pursuant to the Loan Documents (including Bank Expenses) but are not paid when due shall bear interest until paid at a rate equal to the Default Rate. Payment or acceptance of lump sum damages provided in this Clause 2.2(b) (Default Rate) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank.

 

(c)                                Computation; 360-Day Year. In computing interest, the date of the making of any Credit Extension shall be included and the date of payment shall be excluded; provided, however, that if any Credit Extension is repaid on the same day on which it is made, such day shall be included in computing interest on such Credit Extension. Interest on each Term Loan is computed on the basis of a 360 day year for the actual number of days elapsed.

 

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(d)                                Payments. Interest on the Term Loan is payable monthly in arrears on the last calendar day of each month (“Interest Payment Date”) commencing on the relevant funding date for Tranche 1, Tranche 2 and Tranche 3, respectively.

 

(e)                                 Notification of rates of Interest. Bank shall promptly notify the Borrower of the determination of a rate of interest under this Agreement.

 

(f)                                  Non-Business Days. An Interest Payment Date which would fall on a day which is not a Business Day, shall instead take place on the preceding Business Day in that calendar month.

 

(g)                                 Market disruption. If, before close of business on the Quotation Day for the relevant Interest Period, Bank determines that the cost to it of funding the Term Loan from whatever source it may reasonably select from the wholesale market for the relevant currency would be in excess of the Euro Base Rate, then Clause 2.2(h) (Cost of Funds) shall apply to the Term Loan for the relevant Interest Period.

 

(h)                                Cost of funds. If this Clause 2.2(h) applies, the rate of interest on the Term Loan for the relevant Interest Period shall be the percentage rate per annum which is the sum of:

 

(i)                                    the Margin; and

 

(ii)                                the rate determined by Bank to be that which expresses as a percentage rate per annum the cost to Bank of funding the Term Loan from whatever source it may reasonably select.

 

If this Clause 2.2(h) applies, Bank shall, as soon as practicable, notify the Borrower.

 

2.3                              Fees. Borrower shall pay to Bank:

 

(a)                                Bank Expenses. All Bank Expenses, when due; and

 

(b)                                Fee Letter. Fees in accordance with the Dutch fee letter.

 

2.4                              Currency calculations:

 

(a)                                Calculations as to equivalents of Euro amounts in other currencies shall for the purposes of or in connection with any Loan Document be conclusively made and determined by Bank at its spot rate of exchange for the purchase of the relevant currency in the London foreign exchange market applicable at the time of such calculation. Borrower shall, within three (3) Business Days of demand, indemnify Bank against any cost, loss or liability arising out of or as a result of the conversion. Borrower waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that which it is expressed to be payable.

 

(b)                                Without prejudice to the rights of Bank under this Agreement, on the occurrence of a Euro Event, or at any time thereafter, Bank will have the right, to the fullest extent permitted by law, by notice to Borrower that any amounts outstanding as at the date of such notice shall be converted into Dollars (provided they are freely available in the market) or, solely where Dollars are not freely available in the market, into any other currency freely available to Bank. From the date of such notice, such amounts outstanding shall be converted into such other currency in accordance with paragraph (a) above.

 

2.5                              Payments; Application of Payments.

 

(a)                                All payments (including prepayments) to be made by Borrower under any Loan Document shall be made in immediately available funds, without set-off or counterclaim, before midday Frankfurt time on the date when due. Payments of principal and/or interest received after midday Frankfurt time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment shall be due 

 

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the next Business Day, and additional fees or interest, as applicable, shall continue to accrue until paid.

 

(b)                                Bank shall be entitled (at its sole discretion) to apply the whole or any part of collected funds against the Facility or credit such collected funds to a deposit account of Borrower with Bank (or an account maintained by an Affiliate of Bank), and the order and method of application of such credited funds shall be in the reasonable discretion of Bank taking into account the legitimate business interests of the Borrower unless an Event of Default is continuing in which case the Bank shall have absolute sole discretion. Borrower shall have no right to specify the order or the accounts to which Bank shall allocate or apply any payments required to be made by Borrower to Bank or otherwise received by Bank under this Agreement when any such allocation or application is not specified elsewhere in this Agreement.

 

(c)                                 All payments of principal and interest (including prepayments) to be made by Borrower and all payments of any fees due under this Agreement to be made by Borrower shall be made to Bank’s Euro accounts, as set out in Exhibit C (Client Payment Instructions) of this Agreement.

 

3.                                     CONDITIONS OF LOANS

 

3.1                              Conditions Precedent to Initial Credit Extension. Bank’s obligation to make the Credit Extensions in respect of Tranche 1, Tranche 2 and Tranche 3 is subject to the condition precedent that Bank shall have received, in form and substance reasonably satisfactory to Bank, such documents and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including the following:

 

(a)                                this Agreement duly executed by each Obligor;

 

(b)                                each Security Document duly executed by the relevant Obligor and any ancillary notices, filings or other documents required therein, save those required to be delivered after the date of the relevant Security Document (in each case as set out therein);

 

(c)                                 a certificate duly signed by two managing directors of the Guarantor with respect to its constitutional documents, authorised signatories and resolutions (managing and supervisory board or equivalent corporate bodies (to the extent required) authorising the execution and delivery of any Loan Documents to which Guarantor is a party;

 

(d)                                a certificate duly signed by two managing directors (Geschäftsführer) of Borrower with respect to its constitutional documents, authorised signatories and resolutions (managing and supervisory board and general meeting of shareholders or equivalent corporate bodies) (to the extent required) authorising the execution and delivery of this Agreement and the other Loan Documents to which Borrower is a party;

 

(e)                                 a Perfection Certificate for each Obligor signed by a Responsible Officer;

 

(f)                                  subordination agreements in the form required by Bank in respect of any shareholder, director, officer or intra-group loan to an Obligor or any loan from a secured creditor (other than Bank) to an Obligor together with the duly executed original signatures thereto;

 

(g)                                 a legal opinion of Borrower’s German counsel (authority) in respect of Borrower delivered to Bank on or about the date of this Agreement;

 

(h)                                a legal opinion of Bank’s German counsel (enforceability) delivered to Bank on or about the date of this Agreement;

 

(i)                                    a legal opinion of Borrower’s Dutch counsel (authority) in respect of Guarantor delivered to Bank on or about the date of this Agreement;

 

(j)                                   a legal opinion of Bank’s Dutch counsel (enforceability) in respect of the Guarantor delivered to Bank on or about the date of this Agreement;

 

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(k)                                evidence satisfactory to Bank that the insurance policies required by Clause 6.4 (Insurance) are in full force and effect, together with, in respect of non-German insurance policies only, appropriate evidence showing Bank as first loss payee and/or additional insured clauses or endorsements in favour of Bank;

 

(l)                                    payment of the fees and Bank Expenses then due and payable;

 

(m)                             signed consent for Bank to: (i) use Borrower’s logo; (ii) use a tombstone to highlight the transaction; and (iii) issue a press release in a form acceptable to Borrower and Bank highlighting and summarising the credit facilities extended by Bank to Borrower under this Agreement, for marketing purposes; and

 

(n)                                such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate and notified by the Bank to the Borrower by the date of signing of this Agreement.

 

3.2                              Conditions Precedent to all Credit Extensions. Bank’s obligations to make each Credit Extension is subject to the following:

 

(a)                                except as otherwise provided in Clause 3.3 (Covenant to Deliver), timely receipt of any Payment Request Form;

 

(b)                                the requirements of Clause 2.1 (a)(i) in relation to Tranche 1, Clause 2.1 (a)(ii) in relation to Tranche 2 and Clause 2.1 (a)(iii) in relation to Tranche 3 have been satisfied in full to the satisfaction of Bank;

 

(c)                                 the representations and warranties in Clause 5 (Representations and Warranties’) shall be true in all respects on the date of the Payment Request Form and on the effective date of each Credit Extension;

 

(d)                                no Event of Default shall have occurred and be continuing or result from the Credit Extension; and

 

(e)                                 in Bank’s reasonable opinion acting in good faith, there has not been any material impairment in the general affairs, management, results of operational, financial condition or the prospects of repayment of the Obligations.

 

3.3                              Covenant to Deliver. Borrower agrees to deliver to Bank each item required to be delivered to Bank under this Agreement as a condition precedent to any Credit Extension. Borrower expressly agrees that a Credit Extension made prior to the receipt by Bank of any such item shall not constitute a waiver by Bank of Borrower’s obligation to deliver such item, and the making of any Credit Extension in the absence of a required item shall be in Bank’s sole discretion.

 

3.4                              Procedures for Borrowing. Together with any such electronic or facsimile notification, Borrower shall deliver to Bank by electronic mail or facsimile the completed Payment Request Form executed by a Responsible Officer or his or her designee. Bank may rely on any telephone notice given by a Person whom Bank believes is a Responsible Officer or designee. Subject to the prior satisfaction of all other applicable conditions to the making of the Term Loan set out in this Agreement and in accordance to Clause 2.1 (Term Loan) above, to obtain the Term Loan, Borrower must notify Bank (which notice shall be irrevocable) by electronic mail, or telephone by midday London time on or before the date falling 5 Business Days prior to the proposed drawdown date for Tranche 1, Tranche 2 or Tranche 3 (as applicable). Such notice shall be in the form of a completed Payment Request Form in the form attached as Exhibit A and shall specify (i) the date the Term Loan is to be made, which day shall be a Business Day during the Tranche 1 Availability Period (in the case of Tranche 1), a Business Day during the Tranche 2 Availability Period (in the case of Tranche 2) and a Business Day during the Tranche 3 Availability Period (in the case of Tranche 3); (ii) the amount of such Term Loan; and (iii) such other procedural requirements as Bank has notified to Borrower in advance of the date of such 

 

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Payment Request Form. If such notification is by telephone, Borrower must promptly confirm the notification by delivering to Bank a completed Payment Request Form in the form attached at Exhibit A. Bank shall transfer the amount of the Term Loan to the Designated Account. Bank may make the Term Loan based on instructions from a Responsible Officer or his or her designee or without instructions if the Term Loan is necessary to meet Obligations which have become due. Bank may rely on any telephone notice given by a Person whom Bank reasonably believes is a Responsible Officer or designee. Borrower shall indemnify Bank for any loss Bank suffers due to such reliance unless caused by Bank’s negligence or intentional misconduct.

 

4.                                      SECURITY DOCUMENTS

 

All Obligations shall be secured by the properties, rights and assets of each Obligor in respect of which such Obligor has granted to Bank a security interest under, and pursuant to the terms and conditions of, the Security Documents now, or in the future, in which such Obligor obtains an interest, or the power to transfer rights, as set out in the Security Documents. Borrower represents, warrants and covenants that the security interests granted or to be granted in favour of Bank shall continue to have at all times the rank agreed under, and pursuant to the terms and conditions of, the Security Documents (subject only to Permitted Liens that may have superior priority to Bank’s Liens and subject to the conditionality of the assignment of Obligor’s Intellectual Property). If this Agreement is terminated, Bank’s lien and security interest in the Collateral shall continue until Borrower fully and irrevocably satisfies the Obligations.

 

Each Obligor shall provide Bank with a first ranking security interest in respect of its Intellectual Property the validity of which is conditioned solely upon the occurrence of a trigger event defined in the relevant Security Document without any further determination, notification, request, consent or other action of any party being required.

 

Any guarantee in this Agreement or Security Document does not apply to any liability to the extent that it would result in such guarantee constituting unlawful financial assistance within the meaning of article 2:98c of the Dutch Civil Code or any equivalent and applicable provisions under the laws of the jurisdiction of incorporation of the relevant Obligor.

 

5.                                      REPRESENTATIONS AND WARRANTIES

 

Each Obligor represents and warrants to Bank as follows:

 

5.1                              Due Incorporation and Authorisation; Power and Authority. Borrower is a private limited company, duly incorporated and validly existing under the laws of Germany and has power to carry on its business as it is now being conducted and to own its property and other assets. Guarantor is a limited liability company (naamloze vennootschap), duly incorporated and validly existing under the laws of the Netherlands and has power to carry on its business as it is now being conducted and to own its property and other assets. In connection with this Agreement, Borrower has delivered to Bank a Perfection Certificate. Each Obligor represents and warrants to Bank that: (a) each Obligor’s exact legal name is that indicated on the Perfection Certificate and, if applicable, on the signature page hereof; and (b) each Obligor is an organisation of the type, and is incorporated in the jurisdiction, set out in the Perfection Certificate; and (c) the Perfection Certificate accurately sets out each Obligor’s registered number or accurately states that the relevant Obligor has none; and (d) the Perfection Certificate accurately sets out each Obligor’s place of business and its registered office as well as each Obligor’s postal address if different from its registered office, and (e) all other information set out in the Perfection Certificate pertaining to each Obligor and each of its Subsidiaries/Affiliates is accurate and complete (it being understood and agreed that Borrower may from time to time update certain information in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific provisions in this Agreement). No Obligor is a FATCA FFI.

 

The execution, delivery and performance of this Agreement and the other Loan Documents are within the corporate powers of the relevant Obligor which is a party thereto, have been duly authorised by all necessary corporate and other action and do not and will not conflict with (i) any law or regulation applicable to it; (ii) the constitutional documents of the relevant Obligor or 

 

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any other organisational documents; (iii) any agreement or instrument binding on the relevant Obligor or (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect) or (v) constitute an event of default under any material agreement by which the relevant Obligor is bound. No Obligor is in default under any agreement to which it is a party or by which it or its assets are bound in which the default could reasonably be expected to have a material adverse effect on the relevant Obligor’s business.

 

5.2                              Collateral. Each Obligor has good title to the Collateral granted by it under the Security Documents, free of Liens except Permitted Liens. No Obligor has any deposit accounts other than the Designated Account and the deposit accounts, if any, described in the Perfection Certificate delivered to Bank in connection herewith, or of which the relevant Obligor has given Bank notice and taken such actions as are necessary to give Bank a perfected security interest therein.

 

The Collateral is not in the possession of any third party Bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate. None of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to Clause 7.5 (Encumbrance).

 

Subject to any Lien granted under any Security Document, each Obligor is the sole owner of the Intellectual Property which it owns or purports to own except for (a) non-exclusive licences granted to its customers in the ordinary course of business, (b) over-the-counter software that is commercially available to the public, and (c) Intellectual Property licensed to that Obligor and noted on the Perfection Certificate. Each Patent which it owns or purports to own and which is material to an Obligor’s business is valid and enforceable, and no part of the Intellectual Property which an Obligor owns or purports to own and which is material to that Obligor’s business has been adjudged invalid or unenforceable, in whole or in part. To the best of the Obligor’s knowledge, no claim has been made that any part of the Intellectual Property infringes the rights of any third party except to the extent such claim would not reasonably be expected to have a material adverse effect on any Obligor’s business.

 

Except as noted on the Perfection Certificate, Borrower is not a party to, nor is it bound by, any Restricted Licence.

 

5.3                              Litigation. Other than as disclosed in writing by the Borrower (i) on or prior to the date of this Agreement as set out in Exhibit D, (ii) after the date of this Agreement (1) prior to any drawdown of Tranche 2 or/and Tranche 3 or (2) in any Compliance Certificate delivered to Bank after the date of this Agreement, there are no actions or proceedings pending or, to the knowledge of the Obligor’s Responsible Officers, threatened by or against an Obligor or any of its Subsidiaries or Affiliates, involving more than, individually or in the aggregate, Five Hundred Thousand Euros (€500,000) (or its equivalent in any other currency).

 

5.4                              Financial Statements; Financial Condition.

 

(a)                                All audited financial statements for Guarantor and any of its Subsidiaries and/or Affiliates delivered to Bank fairly represent Guarantor’s (such Subsidiaries/Affiliates) financial condition and Guarantor’s results of operations.

 

(b)                                All other financial statements consolidated or otherwise for Borrower and any of its Subsidiaries and/or Affiliates delivered to Bank fairly represent in all material respects Borrower’s (such Subsidiaries/Affiliates) financial condition and Borrower’s results of operations.

 

(c)                                 There has not been any material deterioration in Borrower’s financial condition (or that of its Subsidiaries/Affiliates) since the date of the most recent financial statements submitted to Bank.

 

5.5                              Solvency. The Borrower is, if subject to German insolvency law, not unable to pay its debts (zahlungsunfähig) nor is it over-indebted (überschuldet), all in the sense of sections 17 or 19 of

 

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the German Insolvency Act (Insolvenzordnung), and the Guarantor is not unable to pay its debts within the meaning of the Dutch Insolvency Act (Faillissementswef) and has not stopped paying its debts as they fall due or, by reason of actual or anticipated financial difficulties, suspends making payments on any of its debts, and to the extent the Borrower has its centre of main interest in Germany, the fair saleable value of the Borrower’s, assets (including goodwill minus disposition costs) exceeds the amount of its liabilities (taking into account its actual and contingent liabilities).

 

5.6                            Regulatory Compliance. No Obligor has breached any laws, ordinances or rules or regulations, the breach of which could reasonably be expected to cause a Material Adverse Change. None of Obligor’s (or any of its Subsidiaries/Affiliates) property or assets have been used by that Obligor or, to the best of its knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Each Obligor (and each of its Subsidiaries/Affiliates) has obtained all consents, approvals and authorisations of, made all declarations or filings with, and given all notices to, all Government Authorities that are necessary to continue its business as currently conducted, except where the failure to do so could not reasonably be expected to be detrimental to that Obligor’s business.

 

5.7                            Subsidiaries; Investments. No Obligor owns any stock, partnership interest or other equity securities except for Permitted Investments.

 

5.8                            Taxation. Each Obligor has complied in all material respects with all Taxation laws in all jurisdictions in which it is subject to Taxation and has paid all Taxes due and payable by it and no claims are being asserted against it in respect of Taxes save for assessments in relation to the ordinary course of the business of each Obligor or claims contested in good faith and in respect of which adequate provision has been made and disclosed in the latest accounts of each Obligor or information delivered to Bank under this Agreement.

 

5.9                            Full Disclosure. No written representation, warranty or other statement of any Obligor in any certificate or written statement given to Bank, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Bank, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognised by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results).

 

5.10                     No winding-up. No Obligor has taken any corporate or other action and no application has been made or have any other steps been taken or legal proceedings been started or (to the best of each Obligor’s knowledge and belief having made due and proper enquiry) threatened against any Obligor or any of its Subsidiaries/Affiliates for its winding-up or for the appointment of a trustee, liquidator, receiver, administrative receiver, administrator or similar officer of it or of any or all of its assets.

 

5.11                     Licences. No Obligor is a party to, or is bound by, any licence (other than over the counter software that is commercially available to the public) or other agreement with respect to which that Obligor is the licensee that prohibits or otherwise restricts that Obligor from granting a charge in its interest in such licence or agreement or any other property, save as disclosed in the Perfection Certificate or in any Compliance Certificate delivered to Bank after the date of this Agreement but prior to drawdown of Tranche 3. Each Obligor shall provide written notice to Bank within ten (10) days of entering or becoming bound by, any such licence or agreement which is reasonably likely to have a material impact on that Obligor’s business or financial condition. Each Obligor shall take such steps as Bank reasonably requests to obtain the consent of, authorisation by or waiver by, any Person whose consent or waiver is necessary for all such licences or contract rights to be deemed Collateral and for Bank to have a charge in it that might otherwise be restricted or prohibited by law or by the terms of any such licence or agreement, whether now existing or entered into in the future.

 

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5.12                       Subordinated Debt. All loan amounts due to officers, directors (including managing directors (Geschäftsführer)), shareholders and any secured creditors (other than Bank) of Borrower have been subordinated to the Obligations.

 

5.13                       Definition of “Knowledge. For purposes of the Loan Documents, whenever a representation or warranty is made to an Obligor’s knowledge or awareness, to the “best of’ Obligor’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge, after reasonable investigation, of the Responsible Officers.

 

5.14                       Central Works Council. No (central) works’ council (including (centrale) ondernemingsraad) has jurisdiction in respect of any transaction contemplated by any Loan Document.

 

6.                                     AFFIRMATIVE COVENANTS

 

Each Obligor shall do the following:

 

6.1                              Government Compliance.

 

(a)                                Maintain its legal existence in its jurisdiction of incorporation or formation and maintain qualification in each jurisdiction in which the failure to do so would reasonably be expected to be detrimental to the relevant Obligor’s business or operations. The Obligor shall and shall procure that each of its Subsidiaries/Affiliates shall comply with all laws, ordinances and regulations to which it is subject, noncompliance with which could be detrimental to that Obligor’s business or operations or would reasonably be expected to cause a Material Adverse Change.

 

(b)                                Obtain all of the Governmental Approvals (if any) necessary to carry on its business and for the performance by each Obligor of its obligations under the Loan Documents to which it is a party and the grant of a security interest to Bank in all of its present and future property and assets, including the Governmental Approvals for any drug trials carried out by it or on its behalf. Each Obligor shall promptly provide copies of any such obtained Governmental Approvals to Bank.

 

6.2                              Financial Statements, Reports, Certificates. Borrower shall deliver to Bank:

 

(a)                                Monthly Financial Statements. As soon as available, but no later than thirty (30) days after the last day of each month, a company prepared financial report as mutually agreed between the Parties prior to the execution of this Agreement covering Guarantor’s and each of its Subsidiary’s operations for such month certified by a Responsible Officer and in a form acceptable to Bank;

 

(b)                                Monthly Compliance Certificate. Within thirty (30) days after the last day of each month, a duly completed Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such month, Borrower was in full compliance with all of the terms and conditions of this Agreement, and providing such other information as Bank shall reasonably request, in particular any material updates on the business operations, any management meetings (by presentation of the minutes of such meetings) and the development of the cash balance of the Borrower and its Subsidiaries/Affiliates;

 

(c)                                 Quarterly Financial Statements. As soon as available, but no later than 45 days after the last day of each quarter-end and 90 days in case of each year end, quarterly financial statements consistent with those filed with SEC (if applicable);

 

(d)                                Annual Operating Budgets and Projections. As soon as available, but no later than 90 days after the financial year end of each Obligor (and at least once in every twelve month period), such Obligor’s annual operating budgets to include, without limitation, balance sheet and income statement, and financial projections for the following financial year (on a monthly basis) as approved by such Obligor’s shareholders (or management and/or supervisory board (Aufsichtsraf)) or board of directors, as the case may be, together with any related business 

 

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forecasts used in the preparation of such annual financial projections in a form acceptable to the Bank;

 

(e)                                 Other Statements. Within five (5) days of delivery, copies of all statements, reports and notices made available to Borrower’s security holders or to any holders of Subordinated Debt;

 

(f)                                  Legal Action Notice. A prompt report of any legal actions pending or threatened in writing against any Obligor or any of its Subsidiaries/Affiliates that could result in damages or costs to Borrower or any of its Subsidiaries/Affiliates of, individually or in the aggregate, Five Hundred Thousand Euros (€500,000) (or its equivalent in any other currency) or more;

 

(g)                                 Intellectual Property Notice. Prompt written notice of (i) any material change in the composition of the Intellectual Property, (ii) the registration of any copyright, including any subsequent ownership right of any Obligor in or to any Intellectual Property not previously disclosed in writing to Bank, and/or (iii) that Obligor’s knowledge of an event that could reasonably be expected materially and adversely to affect the value of the Intellectual Property;

 

(h)                                Other Information. Budgets, sales projections, and other financial information and any other information reasonably requested by Bank (unless disclosure of such information to Bank is prohibited by law); and;

 

(i)                                    Board Minutes and Agenda. As soon as available but no later than thirty (30) days after the date of any Obligor’s management meeting, a copy of the agenda provided for such board meeting and minutes of such meeting.

 

6.3                              Taxes. Each Obligor shall make, and cause each of its Subsidiaries/Affiliates to make, timely payment of all material Taxes or assessments (other than taxes and assessments which that Obligor or a Subsidiary/Affiliate of Borrower is contesting in good faith, with adequate reserves maintained in accordance with GAAP) and will deliver to Bank, on demand, appropriate certificates attesting to such payments.

 

6.4                              Insurance. Each Obligor shall keep its business and the Collateral insured for risks (including third party liability appropriate to a company undertaking clinical trials) and in amounts as Bank may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Bank in its reasonable discretion as are typical for the industry in the relevant jurisdiction of an Obligor, for companies similar to that Obligor. All non-German property policies shall have a lender’s loss payee endorsement showing Bank as first loss payee (to the extent available and customary). All non-German policies (or their respective endorsements) shall provide that the insurer shall give Bank at least twenty (20) days’ notice before cancelling its policy (to the extent available and customary). At Bank’s request, each Obligor shall deliver certified copies of policies and evidence of all premium payments. Proceeds payable under any policy (other than liability insurances or insurances covering any third party) taken out by or otherwise vested in an Obligor shall, at Bank’s option, be payable to Bank on account of the Obligations. If an Obligor fails to obtain insurance as required under this Clause 6.4 (Insurance) or to pay any amount or furnish any required proof of payment to third Persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this Clause 6.4 (Insurance), and take any action under the policies Bank deems prudent.

 

6.5                              Bank Accounts.

 

(a)                                All Designated Accounts and the Obligor’s other depository and operating accounts maintained outside the UK shall be maintained with the banks disclosed to Bank in the Perfection Certificate or any other bank or financial institution acceptable to Bank. The Borrower shall maintain all of its UK depository and operating accounts and securities/investment accounts and excess funds (if any) with Bank’s UK branch unless such banking relationship is in conflict with the Borrower’s treasury policy or audit committee.

 

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(b)                                Each Obligor shall promptly notify Bank, in writing, of any deposit, operating or securities/investment account proposed to be opened by it with any institution other than Bank or an Affiliate of Bank. In addition, for each such account that an Obligor at any time opens or maintains, that Obligor shall, at Bank’s request and option, pursuant to an agreement in form and substance acceptable to Bank, cause the bank or securities intermediary to agree that such account is the collateral of Bank pursuant to the terms of the Loan Documents, which control agreement may not be terminated without the prior written consent of Bank. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of an Obligor’s employees.

 

6.6                              Protection and Registration of Intellectual Property Rights.

 

(a)                                Each Obligor shall take reasonable steps to: (i) protect, defend and maintain the validity and enforceability of the Intellectual Property; (ii) promptly upon becoming aware thereof advise Bank in writing of material infringements of the Intellectual Property; and (iii) not allow any Intellectual Property material to that Obligor’s business to be abandoned, forfeited or dedicated to the public without Bank’s prior written consent.

 

(b)                                Each Obligor shall provide written notice to Bank within ten (10) days of entering or becoming bound by any Restricted Licence (other than over-the-counter software that is commercially available to the public). Each Obligor shall take such steps as Bank requests to obtain the consent of, or waiver by, any Person whose consent or waiver is necessary for (i) any Restricted Licence to be deemed “Collateral” and for Bank to have a security interest (subject to the conditionality of the IP security assignment agreement) in it that might otherwise be restricted or prohibited by law or by the terms of any such Restricted Licence, whether now existing or entered into in the future, and (ii) Bank to have the ability in the event of a realisation of any Collateral to dispose of such Collateral in accordance with Bank’s rights and remedies under the IP security assignment agreement and the other Loan Documents.

 

6.7                              Studies. Borrower shall use all commercially reasonable efforts to ensure that all Studies and/or clinical trials conducted by it or on its behalf strictly comply with the following as they are applicable in the country/countries in which the Studies and/or clinical trials are conducted:

 

(a)                                laws and regulations and government guidelines relating to Studies/clinical trials;

 

(b)                                all Government Approvals and good clinical practice;

 

(c)                                 ethics committee approval(s);

 

(d)                                the terms of the applicable protocols; and

 

(e)                                 any other requirements of the responsible regulatory or competent authorities;

 

and (if requested by Bank) shall provide reasonable evidence of such compliance (save where provision of such evidence would involve Borrower contravening the law, in particular, data privacy laws).

 

6.8                              Litigation Cooperation. From the date hereof and continuing until all Obligations have been irrevocably discharged and Bank has no commitment or liability hereunder, make available to Bank, without expense to Bank, each Obligor and its officers, employees and agents and that Obligor’s books and records, to the extent that Bank may deem them reasonably necessary to institute or defend any third-party action or proceeding instituted by or against Bank with respect to any Collateral or relating to that Obligor.

 

6.9                              Access to Collateral; Books and Records. Allow Bank, or its agents, at reasonable times, on five (5) Business Days’ notice (provided no notice is required if an Event of Default has occurred and is continuing), to inspect the Collateral and audit and copy the Obligor’s Books. Such inspections or audits shall be conducted no more often than once every twelve (12) 

 

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months unless an Event of Default has occurred and is continuing and shall be carried out at the expense of the relevant Obligor.

 

6.10                       Hedging Transactions. Should an Obligor propose to enter into a Hedging Transaction over €250,000 in value, Bank shall have the first right to provide such Hedging Transaction to the Obligor; provided, however, if Bank is not competitive with current market conditions for such Hedging Transaction then such Hedging Transaction may be maintained with another financial institution.

 

6.11                       Further Assurances. Each Obligor shall execute any further instruments and take further action as Bank reasonably requests to perfect or continue Bank’s security interest in the Collateral or to effect the purposes of this Agreement.

 

7.                                      NEGATIVE COVENANTS

 

No Obligor shall do any of the following without Bank’s prior written consent or as expressly permitted in any sub-clause of this Clause 7.

 

7.1                              Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”), or permit any of its Subsidiaries/Affiliates to Transfer, all or any part of its business or property, except for Transfers: (a) of Inventory in the ordinary course of business; (b) of worn-out or obsolete Equipment; (c) required to effect or comply with the terms of any Permitted Liens and Permitted Investments; (d) of licences for the use of the property of Obligor or its Subsidiaries/Affiliates in the ordinary course of business. Obligor shall not enter into an agreement with any Person other than Bank which restricts the subsequent granting of a security interest in the Intellectual Property.

 

7.2                              Changes in Business, Ownership, Management or Business Locations, (a) Engage in or permit any of its Subsidiaries/Affiliates to engage in any business other than the businesses currently engaged in by Obligor or such Subsidiary or reasonably related thereto as at the Effective Date, (b) liquidate or dissolve, (c) have a change in senior management (including, without limitation, the resignation of any Person occupying the roles of Chief Executive Officer, Chief Science Officer or Chief Financial Officer from time to time without (i) Obligor notifying Bank of the change as soon as practical after the Obligor has completed its internal procedures with respect to the approval/ authorization of such change; and (ii) either: (1) if it is intended that that Person be replaced, the Obligor to use reasonable endeavours to ensure a suitably qualified replacement Person is appointed within 180 days of the resignation or removal of his or her predecessor and to update the Bank on the hiring process as well as to disclose to Bank the identity of a replacement Person at the Obligor’s earliest convenience (taking into account the Obligor’s internal procedures for such replacement) or (2) if it is not intended that such Person be replaced, notify the Bank that another suitably qualified member of the senior management team will perform the functions of the outgoing member; or (d) permit or suffer any Change in Control.

 

No Obligor shall, without at least ten (10) days prior written notice to Bank: (1) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than Fifty Thousand Euros (€50,000 (or its equivalent in any other currency)) in Obligor’s assets or property) or deliver any portion of the Collateral valued, individually or in the aggregate, in excess of One Hundred Thousand Euros (€100,000) (or its equivalent in any other currency) to a Bailee at a location other than to a Bailee and at a location already disclosed in the Perfection Certificate, (2) change its jurisdiction of organisation, registration or incorporation, (3) change its organisational structure or type or; (4) change its legal name. If an Obligor intends to deliver any portion of the Collateral valued, individually or in the aggregate, in excess of One Hundred Thousand Euros (€100,000) (or its equivalent in any other currency) to a Bailee, and Bank and such Bailee are not already parties to a Bailee Agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral, then Obligor will first receive the written consent of Bank, and such Bailee shall execute and deliver a Bailee Agreement in form and substance satisfactory to Bank in its sole discretion.

 

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7.3                              Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries/Affiliates to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries/Affiliates to acquire, all or substantially all of the share capital or property of another Person. A Subsidiary of the Borrower may merge or consolidate into another Subsidiary of Borrower or into Borrower.

 

7.4                              Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any of its Subsidiaries/Affiliates to do so, other than the Permitted Indebtedness.

 

7.5                              Encumbrance. Create, incur, allow, or suffer any Lien on any of, the Collateral or its right, title and interest in any Intellectual Property, or assign or convey any right to receive income, or permit any of its Subsidiaries/Affiliates to do so, except for Permitted Liens, permit any Collateral not to be subject to the first priority security interest granted by the Security Documents, except as is otherwise permitted in Clause 7.1 (Dispositions’) and the definition of “Permitted Liens”.

 

7.6                              Distributions; Investments, (a) Directly or indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted Investments, or permit any of its Subsidiaries/Affiliates to do so; or (b) pay any dividends or make any distribution or payment or redeem, or purchase any of its share capital or give any financial assistance in respect of the purchase of any of its share capital.

 

7.7                              Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Obligor, except for transactions that are in the ordinary course of Obligor’s business, upon fair and reasonable terms that are no less favourable to Obligor than would be obtained in an arm’s length transaction with a non-affiliated Person and transactions permitted pursuant to the terms of Clause 7.1 (Dispositions).

 

7.8                              Subordinated Debt, (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) without Bank’s prior written consent, amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to the Obligations owed to Bank.

 

7.9                              Opening of New Bank Accounts. Obligor undertakes not to open any new bank accounts that are not the subject of a first priority security interest under the German Security Documents either in Germany or elsewhere unless (i) with the prior written consent of Bank and (ii) under the proviso that Bank will obtain, contemporaneously with the opening of any such account, a first priority security interest over such account in accordance with the requirements of the applicable local laws (in particular Germany) and in each case under terms and conditions acceptable to Bank.

 

7.10                       Joint Ventures. No Obligor shall enter into any joint venture or partnership, whether with another company, unincorporated firm, undertaking, association or any other entity other than in the ordinary course of business and on arms-length terms or with the prior written consent of the Bank (such consent not to be unreasonably conditioned, withheld or delayed).

 

8.                                     EVENTS OF DEFAULT

 

Any one of the following shall constitute an event of default (an “Event of Default”):

 

8.1                              Payment Default. An Obligor fails to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day cure period shall not apply to payments due on the Term Loan Maturity Date). During such cure period, the failure to make any payment specified under clause (a) or (b) of this Clause 8.1 is not an Event of Default (but no Credit Extension will be made during the cure period).

 

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8.2                              Covenant Default.

 

(a)                                An Obligor fails to perform any obligation in Clause 6 (Affirmative Covenants) or breaches any covenant in Clause 7 (Negative Covenants); or

 

(b)                                An Obligor fails to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or in any Loan Document to which it is a party or in any other present or future agreement between an Obligor and Bank, and as to any default (other than those specified in this Clause 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) Business Days after the occurrence thereof (but no Credit Extensions shall be made during such cure period). Cure periods provided under this Clause 8.2 shall not apply to any covenant that requires something to be satisfied, completed or tested on or by a certain date.

 

8.3                              Material Adverse Change. A Material Adverse Change occurs.

 

8.4                              Attachment, (i) Any material portion of the assets of an Obligor or any Subsidiary’s/Affiliate’s is attached, seized, levied on, or comes into possession of a trustee, receiver, creditor or encumbrancer (provisional) and the attachment (including but not limited to conservatoir beslag), seizure or levy is not removed in ten (10) days; (ii) the service of proceedings upon an Obligor or any of its Subsidiaries/Affiliates seeking to attach, by trustee or similar process, any funds of an Obligor or any such Subsidiary/Affiliates on deposit with Bank, or any entity under control of Bank (including a subsidiary of Bank); (iii) an Obligor or any of its Subsidiaries/Affiliates is injuncted, restrained, or prevented by court order from conducting a material part of its business; (iv) in respect of a judgment or other claim a garnishment lien (Pfändungspfandrechf) on a material portion of the assets of an Obligor or any of its Subsidiaries/Affiliates is perfected; or (v) a notice of pledge (Mitteilung über Pfändung), levy, seizure (Arrest) or assessment is filed against an asset of an Obligor or any of its Subsidiaries/Affiliates by any government department or agency and not paid within 10 Business Days after such Obligor or Subsidiary/Affiliates (as the case may be) receives notice.

 

The occurrence of any of the events in (i) to paragraph (v) above (inclusive) will not be an Event of Default if stayed or if a bond, surety (Bürgschaft) or guarantee (Garantie) is posted pending appeal by the Obligor or Subsidiary/AffiHate (as appropriate) (but no Credit Extensions shall be made until stayed or posting of the bond, surety or guarantee).

 

8.5                              Insolvency. Any of the following occurs in respect of an Obligor: (i) if it is subject to German insolvency law, it is unable to pay its debt (zahlungsunfähig) over-indebted (überschuldet), all in the sense of sections 17 and 19 of the German Insolvency Act (Insolvenzordnung); (ii) it admits its inability to pay its debts as they fall due; (iii) it suspends (or threatens to suspend) making payment on any of its debts or announces an intention to do so; (iv) a moratorium is declared in respect of any of its indebtedness; (v) by reason of actual or anticipated inability to pay debts as they fall due or insolvency it begins negotiations with its creditors (or any class of them) (other than the Bank) for the rescheduling of its indebtedness; or (vi) Guarantor files a notice under Section 36 of the Tax Collection Act of the Netherlands (Invorderingswet 1990), or (vii) is being dissolved (ontbonden); or in respect of any other Obligor any equivalent measure under any applicable law.

 

8.6                              Insolvency Proceedings. Any of the following occurs in respect of an Obligor or any Subsidiaries/Affiliates of an Obligor (each of which shall be an “Insolvency Proceeding”): (i) any step is taken with a view to a moratorium or a composition, assignment or similar arrangement with any of its creditors; (ii) a meeting of its shareholders or directors (or managing directors (as applicable)) is convened for the purpose of considering any resolution for, to petition for or to make an application to or to file documents with a court or any registrar for, its winding-up, administration or dissolution or any such resolution is passed; (iii) managing director(s) of an Obligor or any creditors of an Obligor request the opening of insolvency proceedings; (iv) an order is made for the opening of insolvency proceedings (Insolvenzverfahren) or preliminary insolvency proceedings (vorläufiges Insolvenzverfahren), its winding-up, administration or dissolution, or any Person not acting frivolously or vexatiously presents a petition, or makes an application to or files documents with a court or any registrar, 

 

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for its winding-up, administration or dissolution, or gives notice to Bank of an intention to appoint an administrator and such petition, application or filing is not withdrawn within 10 Business Days; (v) any liquidator, receiver, administrative receiver (Insolvenzverwalter), preliminary administrative receiver (vorläufiger Insolvenzverwalter), administrator or similar officer is appointed in respect of it or any of its assets; (vi) its shareholders or directors (or managing directors (as applicable)) request the appointment of, or give notice of their intention to appoint, a liquidator, receiver, administrator or similar officer; or (vii) any analogous proceedings takes place in any other jurisdiction.

 

8.7                              Other Agreements. There is, under any agreement to which an Obligor is a party with a third party or parties, (a) any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount individually or in the aggregate in excess of Two Hundred thousand Euros (€200,000); or (b) any default by an Obligor, the result of which could be materially detrimental to such Obligor’s business.

 

8.8                              Judgments. If an enforceable judgment, arbitration award, order or decree for the payment of money in an amount, individually or in the aggregate, of at least One Million Euros (€1,000,000) (or its equivalent in any other currency) shall be rendered against an Obligor or any of its Subsidiaries/Affiliates and shall remain unsatisfied or unstayed for a period often (10) days of it being made (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment, order or decree).

 

8.9                              Misrepresentations. If any representation or warranty or statement in writing made by an Obligor or any Person acting for an Obligor in, or in connection with the negotiation of, any Loan Document or in any notice, certificate or statement of fact referred to in or delivered under any Loan Document or in any other written material delivered to Bank is or shall prove to be untrue or incorrect or misleading when made or deemed to be made or repeated under such Loan Document and as to any default (other than those specified in this Clause 8 under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) Business Days after the occurrence thereof (but no Credit Extensions shall be made during such cure period). Cure periods provided under this Clause 8.9 shall not apply to any covenant that requires something to be satisfied, completed or tested on or by a certain date.

 

8.10                       Subordinated Debt. Any document, instrument, or agreement evidencing any Subordinated Debt shall for any reason be revoked or invalidated or otherwise cease to be in full force and effect, any Person shall be in breach thereof or contest in any manner the validity or enforceability thereof or deny that it has any further liability or obligation thereunder, or the Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement.

 

8.11                       Other Agreements with Bank. An Obligor, or any Subsidiaries/Affiliates of an Obligor fails to perform any of its obligations under any agreement between the relevant Obligor, or any Subsidiaries of an Obligor and Bank or any of its Affiliates and such failure results in an event of default (howsoever described under such agreement) or otherwise gives Bank the right to demand accelerated repayment of moneys payable thereunder and as to any event of default (other than those specified in this Clause 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) Business Days after the occurrence thereof (but no Credit Extensions shall be made during such cure period). Cure periods provided under this Clause 8.11 shall not apply to any covenant that requires something to be satisfied, completed or tested on or by a certain date.

 

8.12                       Governmental Approvals. Any Governmental Approval shall have been (a) revoked, rescinded, suspended, modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications for renewal of any of such Governmental Approval or that could result in the Governmental Authority taking any of the actions described in (a) above, and such decision or such revocation, rescission, suspension, modification or non-renewal (i) is, or could reasonably be expected to be, a Material Adverse Change, or (ii) adversely affects the legal qualifications of an Obligor or any Subsidiaries/Affiliates of an Obligor to hold such 

 

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Governmental Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of an Obligor or any Subsidiaries/Affiliates of an Obligor to hold any Governmental Approval in any other jurisdiction.

 

9.                                     BANK’S RIGHTS AND REMEDIES

 

9.1                              Rights and Remedies. When an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the following:

 

(a)                                declare all Obligations immediately due and payable;

 

(b)                                stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Bank;

 

(c)                                 verify the amount of, demand payment of and performance under, and collect any Receivables, settle or adjust disputes and claims directly with account debtors for amounts, on terms and in any order that the Bank considers advisable and notify any Person owing the Obligors money of the Bank’s Security Interest in such funds. After the occurrence of an Event of Default, any amounts received by any Obligor shall be held in trust by such Obligor for the Bank, and, if requested by the Bank, such Obligor shall immediately deliver such receipts to the Bank in the form received from the account debtor, with proper endorsements for deposit;

 

(d)                                make any payments and do any acts it considers necessary or reasonable to protect its security interest in the Collateral. Borrower shall assemble the Collateral if Bank requests and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a licence to enter and occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies;

 

(e)                                 apply towards the discharge of the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by Bank owing to or for the credit or the account of Borrower;

 

(f)                                  ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral in accordance with the terms of the underlying Security Documents. Bank is hereby granted a non-exclusive, royalty-free licence or other right to use, without charge, Borrower’s labels, Patents, Copyrights, rights of use of any name, trade secrets, trade names, Trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral in accordance with the terms of the underlying Security Documents and, in connection with Bank’s exercise of its rights under this Clause, Borrower’s rights under all licences and all franchise agreements inure to Bank’s benefit;

 

(g)                                 place a “hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any control agreement or similar agreements providing control of any Collateral, in each case in accordance with the terms of the underlying Security Documents; and

 

(h)                                exercise any rights and remedies available to Bank under the Security Documents or applicable law.

 

9.2                              Protective Payments. If an Obligor fails to obtain the insurance called for by Clause 6.4 (Insurance) or fails to pay any premium thereon or fails to pay any other amount which Obligor is obliged to pay under this Agreement or any other Loan Document, Bank may obtain such insurance or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the interest rate then applicable to the Obligations, and secured by the Collateral. Bank will make reasonable efforts to provide Obligor with notice of Bank obtaining such insurance at the time it is obtained or within a reasonable 

 

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time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default.

 

9.3                              Bank Expenses. Any Bank Expenses are immediately due and payable, and shall bear interest at the then applicable rate and be secured by the Collateral. No payments by Bank shall be deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default.

 

9.4                              Application of Payments and Proceeds Upon Default. If an Event of Default has occurred and is continuing, Bank may apply any funds in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of accounts or other disposition of the Collateral, or otherwise, to the Obligations in such order as Bank shall determine in its sole discretion. Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower shall remain liable to Bank for any deficiency. If Bank, in its good faith business judgement, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser on any sale of Collateral, Bankshall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor.

 

9.5                              Bank’s Liability for Collateral. So long as Bank complies with reasonable banking practices regarding the safekeeping of Collateral Bank shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any Bailee or other Person. Each Obligor bears all risk of loss of or damage or destruction to the Collateral granted by it.

 

9.6                              Remedies Cumulative. Bank’s failure, at any time or times, to require strict performance by an Obligor of any provision of this Agreement or any other Loan Document to which it is a party shall not waive, affect, or diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by Bank and then is only effective for the specific instance and purpose for which it is given. Bank’s rights and remedies under this Agreement and the other Loan Documents are cumulative. Bank has all rights and remedies provided by law, or in equity. Bank’s exercise of one right or remedy is not an election and Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence.

 

9.7                              Withholding; Gross-up. All payments to be made by Borrower under this Agreement, whether in respect of principal, interest, fees or otherwise, shall (save insofar as required by law to the contrary) be paid in full without set-off or counterclaim and free and clear of and without any deduction or withholding or payment for or on account of any Taxes (other than a FATCA Deduction) that may be imposed in Germany or any other jurisdiction (a “Tax Deduction”) from which payment may be made by Borrower under this Agreement. If Borrower shall be required by law to effect any deduction or withholding or payment as aforesaid from or in connection with any payment made under this Agreement for the account of Bank then:

 

(a)                                Borrower shall promptly notify Bank upon becoming aware of the relevant requirements to deduct any such Tax Deduction;

 

(b)                                Borrower shall ensure that such Tax Deduction does not exceed the minimum legal liability therefor, shall remit the amount of such Tax to the appropriate Taxation authority and shall forthwith pay to Bank such additional amount as will result in the immediate receipt by Bank of the full amount which would otherwise have been receivable hereunder had no such Tax Deduction been made; and

 

(c)                                 Borrower shall not later than fifty (50) days after each Tax Deduction forward to Bank documentary evidence reasonably required by Bank in respect of the payment of any such Taxes.

 

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9.8                              Mitigation. If the Bank receives the benefit of any credit, payments or reimbursement in respect of the payment of any amount by an Obligor under this Clause 9 it shall (to the extent that it can do so without prejudice to the retention of such benefit) pay to the Obligor such part of that benefit as in its absolute discretion will leave it (after such payment) in no more or less favourable position than it would have been in if no Tax Payment had been required by the Obligor. For these purposes a “Tax Payment” means an increase in a payment made by the Obligor to the Bank under Clause 9.7 (Withholding; gross up).

 

9.9                              VAT.

 

(a)                                All amounts expressed to be payable under a Loan Document to the Bank which (in whole or in part) constitute the consideration for any supply or service for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply or service. Accordingly if VAT is or becomes chargeable on any supply or service made by the Bank to any Obligor under a Loan Document and the Bank is required to account to the relevant tax authority for the VAT, that Obligor must pay to the Bank (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and the Bank shall provide an appropriate VAT invoice to that Obligor).

 

(b)                                Where a Loan Document requires any Obligor to reimburse or indemnify the Bank for any cost or expense, that Obligor shall reimburse or indemnify (as the case may be) the Bank for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that the Bank reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

 

(c)                                 In relation to any supply or service made by the Bank to any Obligor under a Loan Document, if reasonably requested by the Bank, that Obligor must promptly provide the Bank with details of its VAT registration and such other information as is reasonably requested in connection with the Bank’s VAT reporting requirements in relation to such supply.

 

9.10                       FATCA information.

 

(a)                                Subject to paragraph (c) below, each Party shall within ten Business Days of a reasonable request by another Party:

 

(i)                                    confirm to that other Party whether it is:

 

(A)                               a FATCA Exempt Party; or

 

(B)                               not a FATCA Exempt Party; and

 

(ii)           supply to that other Party such forms, documentation and other information relating to its status under FATCA as that other Party reasonably requests for the purposes of that other Party’s compliance with FATCA.

 

(iii)          supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes of that other Party’s compliance with any other law, regulation, or exchange of information regime.

 

(b)                                If a Party confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.

 

(c)                                 Paragraph (a) above shall not oblige any Party to do anything which would or might in its reasonable opinion constitute a breach of:

 

(i)                                    any law or regulation;

 

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(ii)                                 any fiduciary duty; or

 

(iii)                              any duty of confidentiality.

 

(d)                                If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with paragraph (a)(ii) above (including, for the avoidance of doubt, where paragraph (c) above applies), then such Party shall be treated for the purposes of the Loan Documents as if it were not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.

 

9.11                       FATCA Deduction. Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction. Each Party shall, promptly upon becoming aware that it must make a FATCA Deduction in respect of a payment to another Party (or that there is any change in the rate or the basis of such FATCA Deduction), notify the Party to which it is making the payment.

 

9.12                       Illegality. If it shall become unlawful for Bank to continue to fund or maintain any Credit Extensions, or to perform its obligations hereunder, upon demand by Bank, Borrower shall prepay the Credit Extensions in full with all accrued interest thereon and all other amounts payable by Borrower hereunder.

 

9.13                       Additional Costs.

 

(a)                                Borrower shall pay Bank, upon demand by Bank, from time to time such amounts as Bank may determine to be necessary to compensate it for any costs incurred by Bank that Bank determines are attributable to its making or maintaining of any amount receivable by Bank hereunder in respect of any Credit Extensions relating thereto (such increases in costs and reductions in amounts receivable being herein called “Additional Costs”), in each case resulting from any regulatory change which:

 

(i)                                    changes the basis of taxation of any amounts payable to Bank under this Agreement in respect of any Credit Extensions (other than changes which affect taxes measured by or imposed on the overall net income of Bank by the jurisdiction in which Bank has its principal office);

 

(ii)                                 imposes or modifies any reserve, special deposit or similar requirements relating to any extensions of credit or other assets of, or any deposits with, or other liabilities of Bank; or

 

(iii)                              imposes any other condition affecting this Agreement (or any of such extensions of credit or liabilities),

 

(each of the events specified at paragraphs (i), (ii) and (iii) being a “Regulatory Change”).

 

(b)                                Bank will notify Borrower of any event occurring after the Effective Date which will entitle Bank to compensation pursuant to this Clause 9.13 (Additional Costs) as promptly as practicable after it obtains knowledge thereof and determines to request such compensation. Bank will furnish Borrower with a statement setting out the basis and amount of each request by Bank for compensation under this Clause 9.13 (Additional Costs). Determinations and allocations by Bank for purposes of this Clause 9.13 (Additional Costs) of the effect of any Regulatory Change on its costs of maintaining its obligations to make Credit Extensions, of making or maintaining Credit Extensions, or on amounts receivable by it in respect of Credit Extensions, and of the additional amounts required to compensate Bank in respect of any Additional Costs, shall be conclusive absent manifest error.

 

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(c)                                 If Bank shall determine that the adoption or implementation of any applicable law, rule, regulation, or treaty regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank, or comparable agency charged with the interpretation or administration thereof, or compliance by Bank (or its applicable lending office) with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank, or comparable agency, has or would have the effect of reducing the rate of return on capital of Bank or any Person or entity controlling Bank (a “Parent”) as a consequence of its obligations hereunder to a level below that which Bank (or its Parent) could have achieved but for such adoption, change, or compliance (taking into consideration policies with respect to capital adequacy) by an amount deemed by Bank to be material, then from time to time, within ten (10) days after demand by Bank, Borrower shall pay to Bank such additional amount or amounts as will compensate Bank for such reduction. A statement of Bank claiming compensation under this Clause 9.13 (Additional Costs) and setting out the additional amount or amounts to be paid to it hereunder shall be conclusive absent manifest error.

 

10.                              GUARANTEE (GARANTIE) AND INDEMNITY (AUSFALLHAFTUNG)

 

10.1                       The Guarantor irrevocably and unconditionally:

 

(a)                                guarantees (garantiert) by way of an independent payment obligation (selbständiges Zahlungsversprechen) to the Bank to pay to it any amount of principal, interest, costs, expenses or other amount under or in connection with the Loan Documents that has not been fully and irrevocably paid by an Obligor; the payment shall be due (fällig) within three Business Days of a written demand by the Bank stating the sum demanded from the Guarantor and that such sum is an amount of principal, interest, costs, expenses or other amount under or in connection with the Loan Documents that has not been fully and irrevocably paid by an Obligor; and

 

(b)                                undertakes vis-ä-vis the Bank to indemnify (schadlos halten) the Bank against any cost, loss or liability suffered by the Bank if any obligation of an Obligor under or in connection with any Loan Document or any obligation guaranteed by it is or becomes unenforceable, invalid or illegal. The amount of the cost, loss or liability shall be equal to the amount which the Bank would otherwise have been entitled to recover (Ersatz des positiven Interesses) and that claim shall be due (fällig) within three Business Days of a written demand by the Bank.

 

(c)                                 For the avoidance of doubt this guarantee and indemnity does not constitute a guarantee upon first demand (Garantie auf erstes Anfordern) and, in particular, receipt of such written demand shall not preclude any rights and/or defences the Guarantor may have with respect to any payment requested by the Bank under this guarantee and indemnity.

 

10.2                       This guarantee and indemnity is independent and separate from the obligations of any Obligor and is a continuing guarantee and indemnity which will extend to the ultimate balance of sums payable by any Obligor under the Loan Documents, regardless of any intermediate payment or discharge in whole or in part. The guarantee and indemnity shall extend to any additional obligations of an Obligor resulting from any amendment, novation, supplement, extension, restatement or replacement of any Loan Document, including without limitation any extension of or increase in any facility or the addition of a new facility under any Loan Document.

 

10.3                       If any payment by an Obligor or any discharge given by the Bank (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is avoided or reduced as a result of insolvency or any similar event:

 

(a)                                the liability of each Obligor shall continue as if the payment, discharge, avoidance or reduction had not occurred; and

 

(b)                                the Bank shall be entitled to recover the value or amount of that security or payment from each Obligor, as if the payment, discharge, avoidance or reduction had not occurred.

 

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10.4                      Excluded Defences

 

(a)                               The obligations of the Guarantor under this Clause 10 will not be affected by an act, omission, matter or thing which relates to the principal obligation (or purported obligation) of any Obligor and which would reduce, release or prejudice any of its obligations under this Clause 10, including any personal defences of any Obligor (Einreden des Hauptschuldners) or any right of revocation (Anfechtung) or set-off (Aufrechnung) of any Obligor.

 

(b)                               The obligations of the Guarantor under this Clause 10 are independent from any other security or guarantee which may have been or will be given to the Bank. In particular, the obligations of the Guarantor under this Clause 10 will not be affected by any of the following:

 

(i)            changes the basis of taxation of any amounts payable to Bank under this Agreement in respect of any Credit Extensions (other than changes which affect taxes measured by or imposed on the overall net income of Bank by the jurisdiction in which Bank has its principal office);

 

(ii)           the release of, or any time (Stundung), waiver or consent granted to, any other Obligor from or in respect of its obligations under or in connection with the Bank;

 

(iii)          the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Obligor or any other person or any failure to realise the full value of any security;

 

(iv)          any incapacity or lack of power, authority or legal personality of or dissolution or a deterioration of the financial condition of any other Obligor; or

 

(v)           any unenforceability, illegality or invalidity of any obligation of any other Obligor under any Loan Document.

 

(c)                                For the avoidance of doubt nothing in this Clause 10 shall preclude any defences that the Guarantor (in its capacity as Guarantor only) may have against the Bank that the guarantee and indemnity does not constitute its legal, valid, binding or enforceable obligations.

 

10.5                      Without prejudice to the generality of this Clause 10, the Guarantor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental) variation, increase, extension or addition of or to any of the Loan Documents and/or any facility or amount made available under any of the Loan Documents for the purposes of or in connection with any of the following: business acquisitions of any nature; increasing working capital; enabling investor distributions to be made; carrying out restructurings; refinancing existing facilities; refinancing any other indebtedness; making facilities available to new borrowers; any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and any fees, costs and/or expenses associated with any of the foregoing.

 

10.6                      The Bank shall not be required to proceed against or enforce any other rights or security or claim payment from any person before claiming from the Guarantor under this Clause 10. This applies irrespective of any provision of a Loan Document to the contrary.

 

10.7                      Unless:

 

(a)                               all amounts which may be or become payable by the Obligors under the Loan Documents have been irrevocably paid in full; or

 

(b)                               the Bank otherwise directs,

 

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the Guarantor will not, after a claim has been made or by virtue of any payment by it under this Clause 10, receive, claim or have the benefit of any payment from or on account of any Obligor, or exercise any right of set-off against any Obligor.

 

10.8                       Until all amounts which may be or become payable by the Obligors under or in connection with the Loan Documents have been irrevocably paid in full and unless the Bank otherwise directs, the Guarantor will not exercise any rights which it may have by reason of performance by it of its obligations under the Loan Documents or by reason of any amount being payable, or liability arising, under this Clause 10:

 

(a)                                to be indemnified by an Obligor;

 

(b)                                to claim any contribution from any other guarantor of any Obligor’s obligations under the Loan Documents;

 

(c)                                 to exercise any right of set-off against any Obligor; and/or

 

(d)                                to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Bank under the Loan Documents or of any other guarantee or security taken pursuant to, or in connection with, the Loan Documents by the Bank;

 

10.9                       If the Guarantor receives any benefit, payment or distribution in relation to the rights referred to in this Clause 10.9, it shall hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Bank by the Obligors under or in connection with the Loan Documents to be repaid in full on trust for the Bank and shall promptly pay or transfer the same to the Bank or as the Bank may direct and in its discretion for application in payment of the obligations under the Loan Documents.

 

10.10                This guarantee is in addition to and is not in any way prejudiced by any other guarantee or security now or subsequently held by the Bank.

 

11.                              NOTICES

 

All notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be in writing and shall be validly served, given, or delivered: (a) upon the earlier of actual receipt and 3 Business Days after such communication is deposited in the mail, first class, registered or certified mail return receipt requested; (b) upon transmission and receipt of a transmission confirmation, when sent by electronic mail; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid if the overnight courier has promised overnight delivery; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, or email address indicated below. Each Party may change its mailing or electronic mail address by giving the other Parties written notice thereof in accordance with the terms of this Clause 11 (Notices).

 

If to Borrower:                Affimed GmbH

 

Im Neuenheimer Feld 582

69120 Heidelberg

Germany

 

Attn: Michael Wolf

 

Email: m.wolf@affimed.com

 

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If to Guarantor:           Affimed N.V.

 

Im Neuenheimer Feld 582 

69120 Heidelberg 

Germany

 

Attn: Michael Wolf

 

Email: m.wolf@affimed.com

 

If to Bank:                                     Silicon Valley Bank

 

3003 Tasman Drive, Santa Clara, CA 95054

 

with a copy to:                 Silicon Valley Bank, Germany

 

Guiollettstraße 48

 

60325 Frankfurt am Main

 

Germany

 

Attn: Mr. Oscar Jazdowski

 

Email: ojazdowski@svb.com

 

12.                             CHOICE OF LAW AND JURISDICTION

 

12.1                      This Agreement and any non-contractual obligations arising out of or in connection with it are governed by German law.

 

12.2                      The courts of Frankfurt am Main, Germany, have exclusive jurisdiction to settle any dispute (a “Dispute”) arising out of or in connection with this Agreement (including a dispute regarding the existence, validity or termination of this Agreement or any non-contractual obligations arising out of or in connection with this Agreement). It is agreed that the courts of Frankfurt am Main, Germany, are the most appropriate and convenient courts to settle Disputes and accordingly no party will argue to the contrary.

 

12.3                      This Clause 12 (Choice of Law and Jurisdiction) is for the benefit of Bank only. As a result, Bank shall not be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, Bank may take concurrent proceedings in any number of jurisdictions.

 

13.                             GENERAL PROVISIONS

 

13.1                      Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party hereto. Borrower may not assign this Agreement or assign any rights or transfer any Obligations under it without Bank’s prior written consent which may be granted or withheld in Bank’s absolute discretion. Bank has the right, with prior written notice, 

 

26

 

but without the consent of Borrower, to sell, transfer, assign, assign and transfer by assumption of contract (Vertragsübernahme), negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights and benefits under this Agreement, the Loan Documents or any related agreement provided that (a) the Bank shall be responsible for reasonable and properly incurred external costs incurred in connection with such assignment or transfer and (b) such assignment or transfer shall not be made to a direct competitor of the Borrower.

 

13.2                     Indemnity. Borrower hereby indemnifies, defends and holds Bank and its directors, officers, employees, agents, attorneys-in-fact or any other Person representing Bank (each an “Indemnified Person”) harmless against: (a) all obligations, demands, claims, and liabilities asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Bank Expenses incurred, or paid by such Indemnified Person from, following or consequential to the transactions between Bank and Borrower (including legal and audit fees and expenses), except to the extent that obligations, demands, claims, liabilities or losses are directly attributable to (y) any Indemnified Person’s gross negligence (grobe Fahrlässigkeit) or wilful misconduct (Vorsatz) or (z) such Indemnified Person’s negligent (fahrlässig) breach of Material Obligations.

 

13.3                     Right of Set-Off. Bank may set off any matured obligation due from Borrower under the Loan Documents against any matured obligation owed by Bank to Borrower, regardless of the place of payment, banking branch or currency of either obligation. Further, Borrower authorises Bank to apply (without prior notice) any credit balance (whether or not then due) to which Borrower is at any time beneficially entitled on any account at, any sum held to its order by and/or any liability or obligation (whether or not matured) of, any office of Bank in or towards satisfaction of any sum then due and payable by it to Bank under any of the Loan Documents and unpaid. For these purposes, Bank may convert one currency into another, provided that nothing in this Clause 13.3 (Right of Set-Off) shall be effective to create a charge. Bank shall not be obliged to exercise any of its rights under this Clause 13.3 (Right of Set-Off), which shall be without prejudice and in addition to any right of set-off, combination of accounts, lien or other right (including the benefit of the Loan Documents) to which it is at any time otherwise entitled (whether by operation of law, contract or otherwise).

 

13.4                     Partial invalidity. The Parties agree that should at any time, any provisions of this Agreement be or become void (nichtig), invalid or due to any reason ineffective (unwirksam) this will indisputably (unwiderlegbar) not affect the validity or effectiveness of the remaining provisions and this Agreement will remain valid and effective, save for the void, invalid or ineffective provisions, without any Party having to argue (darlegen) and prove (beweisen) the Parties’ intent to uphold this Agreement even without the void, invalid or ineffective provisions. The void, invalid or ineffective provision and unintended gaps shall be replaced by such valid and effective provision that in legal and economic terms comes closest to what the Parties intended or would have intended in accordance with the purpose of this Agreement if they had considered the point at the time of conclusion of this Agreement.

 

13.5                     Correction of Loan Documents. Bank may correct patent errors and complete any blanks in the Loan Documents consistent with the agreement of the parties.

 

13.6                     Amendments in Writing; Remedies; Waiver; Integration. All amendments to this Agreement including this Clause 13.6 must be in writing signed by each Party. Without limiting the generality of the foregoing, no oral promise or statement, nor any action, inaction, delay, failure to require performance or course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document. The Bank’s rights and remedies under the Loan Documents and all other agreements are cumulative and not exclusive of any rights or remedies provided by law. The Bank has all rights and remedies provided by law. The Bank’s exercise of one right or remedy is not an election, and the Bank’s waiver of any Event of Default is not a continuing waiver. The Bank’s delay is not a waiver, election, or acquiescence. No waiver shall be effective unless signed by the Bank and then is only effective for the specific instance and purpose for which it was given. The Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and 

 

27

 

negotiations between the parties hereto about the subject matter of the Loan Documents merge into the Loan Documents.

 

13.7                       Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, are an original, and all taken together, constitute one Agreement.

 

13.8                       Survival. All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been paid in full and satisfied.

 

13.9                       Confidentiality. In handling any confidential information, Bank shall exercise the care of a prudent merchant (sorgfältiger Kaufmann), but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates; (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, Bank first obtains a non-disclosure agreement with the prospective transferee’s or purchaser’s agreement and provided further that Bank shall not be liable for any breach of such non-disclosure agreement); (c) as required by law, regulation, subpoena, or other order; (d) to Bank’s regulators or as otherwise required in connection with Bank’s examination or audit; (e) as Bank considers appropriate in exercising its rights or remedies under the Loan Documents and (f) to third-party service providers of Bank so long as such service providers have executed a confidentiality agreement with Bank with terms no less restrictive than those contained herein. Confidential information does not include information that is either: (i) in the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank; or (ii) disclosed to Bank by a third party if Bank does not know that the third party is prohibited from disclosing the information.

 

Bank may use confidential information for the development of databases, reporting purposes, and market analysis so long as such confidential information is aggregated and anonymised prior to distribution unless otherwise expressly prohibited by Borrower. The provisions of the immediately preceding sentence shall survive the termination of this Agreement.

 

13.10                Calculations and certificates.

 

(a)                                The Parties to this Agreement may choose to conclude this Agreement by an exchange of signed signature page(s), transmitted by any means of telecommunication (telekommunikative Übermittlung) such as by way of fax or attached as an electronic photocopy (pdf., tif., etc.) to electronic mail.

 

(b)                                If the Parties to this Agreement choose to conclude this Agreement pursuant to Clause 13.10(a) above, they will transmit the signed signature page(s) of this Agreement to Osborne Clarke Rechtsanwälte Steuerberater Partnerschaft mbB, attention to Antje Günther at antje.guenther@osborneclarke.com or Reinhard Bunjes at reinhard.bunjes@osborneclarke.com (each a “Recipient”). The Agreement will be considered concluded once one of the Recipients has actually received the signed signature page(s) (Zugang der Unterschriftsseite(n)) from all Parties to this Agreement and at the time of the receipt of the last outstanding signature page(s).

 

(c)                                 For the purposes of this Clause 13.10 only, the Parties to this Agreement appoint each Recipient as their attorney (Empfangsvertreter) and expressly allow (gestatten) each Recipient to collect the signed signature page(s) from all and for all Parties to this Agreement. For the avoidance of doubt, each Recipient will have no further duties connected with its position as Recipient. In particular, each Recipient may assume the conformity to the authentic original(s) of the signature page(s) transmitted to it by means of telecommunication, the genuineness of all signatures on the original signature page(s) and the signing authority of the signatories.

 

13.11                Contractual recognition of bail-in. Notwithstanding any other term of any Loan Document or any other agreement, arrangement or understanding between the parties, each party acknowledges and accepts that any liability of any party to any other party under or in 

 

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connection with the Loan Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect of:

 

(a)                              any Bail-In Action in relation to any such liability, including (without limitation):

 

(i)                                    a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such liability;

 

(ii)                                 a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and

 

(iii)                              a cancellation of any such liability; and

 

(b)                              a variation of any term of any Loan Document to the extent necessary to give effect to any Bail- In Action in relation to any such liability.

 

14.                            DEFINITIONS

 

14.1                     Definitions. In this Agreement:

 

“Additional Costs” is defined in Clause 9.13(a) (Additional Costs’).

 

“Affiliate” is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members.

 

“Affimed N.V.” means Affimed N.V., a public company incorporated in The Netherlands, having Dutch Trade Register number 60673389 and whose statutory seat is in Amsterdam and whose registered address is at Im Neuenheimer Feld 582, 69120, Heidelberg, Germany.

 

“Agreed Form” means in relation to any document the form of that document specifically agreed by or on behalf of Borrower and Bank.

 

“Agreement” is defined in the preamble to this Agreement.

 

“Bail-In Action” means the exercise of any Write-down and Conversion Powers.

 

“Bail-In Legislation” means: (a) in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms, the relevant implementing law or regulation from time to time ; and (b) in relation to any other state, any analogous law or regulation from time to time which requires contractual recognition of any Write-down and Conversion Powers contained in that law or regulation.

 

“Bailee” means each of a landlord (Vermieter), warehouseman (Lagerhalter), carrier (Frachtführer) or shipper (Spediteur) or other Person that is furnished with a statutory lien over assets of an Obligor.

 

“Bailee Agreement” means an agreement between the Bank and a Bailee on the priority of the Bailee’s statutory lien.

 

“Bank” is defined in the preamble to this Agreement.

 

“Bank Expenses” are (a) all audit fees and expenses; (b) all reasonable costs and out-of- pocket expenses (including reasonable legal fees and expenses) for preparing, negotiating, closing and administering, the Loan Documents (including any amendments or replacements thereof) or otherwise incurred with respect to an Obligor in connection with any Term Loan and

 

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(b) all costs and expenses (including legal fees and expenses) for defending and enforcing the Loan Documents (including appeals or Insolvency Proceedings) or granting any waivers or concessions or otherwise incurred with respect to an Obligor in connection with any Term Loan and/or any Loan Document.

 

“Borrower” is defined in the preamble to this Agreement.

 

“Borrower’s Auditors” means any of Ernst & Young, KPMG, Deloitte and Price Waterhouse Coopers or any other independent certified public accounting firm acceptable to Bank in its reasonable discretion.

 

“Business Day” is any day that is not: a Saturday, Sunday, a day on which Bank is closed or a day on which leading banks are closed in Frankfurt, Germany, Heidelberg, Germany, the City of London, England and/or the State of California, and which is a Target Day.

 

“Change in Control” means:

 

(a)                                any event, transaction, or occurrence as a result of which any Person other than a trustee or other fiduciary holding shares under an employee benefit plan of Borrower, is or becomes a beneficial owner, directly or indirectly, of shares of Borrower, representing over fifty per cent (50%) of the combined voting power of Borrower’s then outstanding shares; or (ii) during any period of twelve consecutive calendar months, individuals who at the beginning of such period were appointed as managing directors or constituted the Board of Directors of the Guarantor (together with any new directors whose election by the shareholder’s meeting or Board of Directors of the Guarantor (as applicable) was approved by a vote of not less than two-thirds of the directors then still in office who either were directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason other than death, age or disability; and/or

 

(b)                                any event, transaction, or occurrence as a result of which any Person or group of Persons acting in concert gains direct or indirect control of the Guarantor. For the purpose of this paragraph (b):

 

(i)               “acting in concert” means a group of Persons who, pursuant to an agreement or understanding (whether formal or informal), actively cooperate, through the acquisition directly or indirectly of shares in the Guarantor by any of them, either directly or indirectly, to obtain or consolidate control of the Guarantor; and

 

(ii)              “control” means holding beneficially of fifty per cent (50%) or more of the issued share capital of the Guarantor (whether byway of acquisition or hostile takeover).

 

“Collateral” is any and all present and future property, rights and assets of an Obligor which are subject to any Lien in favour of Bank.

 

“Compliance Certificate” means the certificate in the form of Exhibit B to this Agreement.

 

“Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (i) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (ii) any obligations for undrawn letters of credit for the account of that Person; and (iii) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designed to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent

 

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Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement.

 

“Copyrights” are all copyright rights, applications or registrations and like protections in each work or authorship or derivative work, whether published or not (whether or not it is a trade secret) now or later existing, created, acquired or held; to the extent copyrights not transferable by law, any exploitation rights relating to copyright protected work.

 

“Credit Extension” is each Term Loan or any other extension of credit by Bank for Borrower’s benefit under this Agreement.

 

“Default Rate” is defined in Clause 2.2(b) (Default Rate).

 

“Designated Account” means the account held with Silicon Valley Bank, Account No. 20149581, Sort Code 62-10-00.

 

“Dispute” is defined in Clause 12 (Choice of Law and Jurisdiction).

 

“Dutch Fee Letter” means the letter or letters dated on or about this Agreement between the Bank and the Borrower.

 

“Euro Base Rate” means the European Central Bank’s base rate of interest (Main refinancing operations (fixed rate)) as published from time to time and if such rate is less than zero, the Euro Base Rate shall be deemed to be zero.

 

“EEA Member Country” means any member state of the European Union, Iceland, Liechtenstein and Norway.

 

“Effective Date” is means the date of this Agreement.

 

“Equipment” is all present and future machinery, equipment, tenant improvements, furniture, fixture vehicles (including motor vehicles and trailers), tools, parts and attachments in which an Obligor or any of its Subsidiaries/Affiliates has any interest.

 

“Euro Event” means any of the following circumstances:

 

(a)                                     the withdrawal of any Participating Member State;

 

(b)                                     the abolition of the Economic and Monetary Union;

 

(c)                                      the creation by a Participating Member State of a currency other than Euro; or

 

(d)                                     the promulgation of a currency by any Participating Member State that redenominates (or purports to redenominate) any Euro obligations into a new currency.

 

“Euros” or use of the sign “€” or use of the abbreviation “EUR” means the lawful currency of any Participating Member State.

 

“Event of Default” means any of the events set out in Clause 8 (Events of Default).

 

“Facility” means the facility made available under this Agreement.

 

“FATCA” means:

 

(a)                                sections 1471 to 1474 of the Code or any associated regulations or other official guidance;

 

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(b)                                any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating to an inter-governmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred to in paragraph (a) above; or

 

(c)                                 any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraphs (a) or (b) above with the IRS, the US government or any governmental or taxation authority in any other jurisdiction.

 

“FATCA Deduction” means a deduction or withholding from a payment under a Loan Document required by FATCA.

 

“FATCA Exempt Party” means a Party that is entitled to receive payments free from any FATCA Deduction.

 

“FATCA FFI” means a foreign financial institution as defined in section 1471(d)(4) of the Code which, if the Bank is not a FATCA Exempt Party, could be required to make a FATCA Deduction.

 

“Foreign Currency” means any lawful money that is not Euro.

 

“Funding Date” is any date on which a Credit Extension is made to or for the account of Borrower which shall be a Business Day.

 

“GAAP” is generally accepted accounting principles in the jurisdiction of incorporation of the relevant Obligor, including, in each case, IFRS.

 

“German Security Documents” means, individually and collectively each of, (a) a certain security assignment agreement (accounts receivable) between Borrower and Bank, (b) a certain account pledge agreement between Borrower and Bank, (c) a certain account pledge agreement between Guarantor and Bank, (d) a certain share pledge agreement between Guarantor, Bank and Borrower, (e) a certain security transfer agreement between Borrower and Bank, (f) a certain conditional IP rights assignment agreement between the Borrower and the Bank, and (g) any and all other German law security agreements, mortgages or other collateral granted to Bank by Borrower as security for the Obligations, now or in the future.

 

“Governmental Approval” is any consent, authorisation, approval, order, licence, franchise, permit, certificate, accreditation, registration, exemption, notarisation, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

 

“Governmental Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, Regulatory Authority, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self- regulatory organisation or an agency of the European Union.

 

“Group” means Affimed N.V. and each of its Subsidiaries from time to time.

 

“Guarantor” is defined in the preamble to this Agreement.

 

“Hedging Transaction” means (i) any foreign exchange transaction involving the purchase or sale of a specific amount of currency on a specified date or (ii) any other transaction, in each case, solely for the purpose of hedging interest payable under this Agreement where the principal amount hedged is greater than €250,000.

 

“IFRS” are the International Financial Reporting Standards, a collection of guidelines and rules set by the International Accounting Standards Board (www.iasb.org) which are applicable to the circumstances as of the date of determination.

 

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“Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations and (d) Contingent Obligations of an Obligor.

 

“Indemnified Person” is defined in Clause 13.2 (Indemnity).

 

“Insolvency Proceeding” is defined in Clause 8.6 (Insolvency Proceedings).

 

“Intellectual Property” means all of any Obligor’s present and future right, title, and interest in and to the following:

 

(a)                                its Copyrights, Trademarks and Patents;

 

(b)                                any and all trade secrets and trade secret rights, including any rights to unpatented inventions, know-how and operating manuals;

 

(c)                                 any and all source codes;

 

(d)                                any and all registered designs and other design rights which may be available to an Obligor;

 

(e)                                 any and all goodwill and trade secrets;

 

(f)                                  any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above; and

 

(g)                                 all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents; and

 

(h)                                any and all exploitation rights relating to any of the above.

 

“Interest Payment Date” has the meaning given to that term in Clause 2.2(d) (Payments).

 

“Interest Period” means each period commencing on an Interest Payment Date and ending on the date one day prior to the next Interest Payment Date.

 

“Inventory” is present and future inventory in which Obligor or any of its Subsidiaries/Affiliates has any interest, including merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products intended for sale or lease or to be furnished under a contract of service, of every kind and description now or later owned by or in the custody or possession, actual or constructive, of Obligor or any Subsidiaries/Affiliates (as applicable), including inventory temporarily out of its custody or possession or in transit and including returns on any accounts or other proceeds (including insurance proceeds) from the sale or disposition of any of the foregoing and any documents of title.

 

“Investment” is any beneficial ownership of stocks, shares, bonds and securities (including any partnership interest) in any Person, or any loan, advance or capital contribution to any Person.

 

“IRS” means the US Internal Revenue Service.

 

“Lien” is a mortgage, lien, deed of trust, levy, charge, assignment, pledge, security interest or other encumbrance.

 

“Loan Documents” are, collectively, this Agreement, the Perfection Certificates, the Security Documents and any loan, notes or guarantees executed by an Obligor in favour of Bank, and

 

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any other present or future agreement between an Obligor and Bank and/or entered into for the benefit of Bank in connection with this Agreement, all as amended, extended or restated.

 

“Margin” means 5.5 per cent, per annum.

 

“Material Adverse Change” is: (i) a material impairment in the perfection or priority of Bank’s security interest in the Collateral; (ii) a material adverse change in the business, operations, or financial condition of an Obligor or (iii) a material impairment of the prospect of repayment of any portion of the Obligations.

 

“Obligations” are all present and future monies, liabilities, obligations, debts, principal, interest, Bank Expenses and other amounts owing by any Obligor to Bank, in each case whether actual or contingent (including, but without limitation, Contingent Obligations) and whether owing as principal or as surety or in any other capacity or of any nature arising under or in connection with this Agreement, the other Loan Documents or otherwise howsoever and wherever arising, and including interest accruing after Insolvency Proceedings begin.

 

“Obligor” means each of (a) the Borrower; (b) the Guarantor and (c) any other Person that from time to time provides a Lien or a guarantee in favour of Bank on account of the Obligations of Borrower under this Agreement.

 

“Obligor’s Books” are all the books and records of an Obligor including ledgers, records regarding the Obligors’ assets or liabilities, the Collateral, business operations or financial condition and all computer programs or discs or any equipment containing the information.

 

“Participating Member State” means any member state of the European Union that has the Euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

 

“Patents” are patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

 

“Payment Request Form” is that certain form attached hereto as Exhibit A.

 

“Perfection Certificate” means a certificate signed by a Responsible Officer of an Obligor provided to Bank as a condition precedent to the initial Credit Extension and which contains details about an Obligor’s assets and liabilities, officers and shareholders and other information as set out therein.

 

“Permitted Indebtedness” is:

 

(a)                                 Borrower’s Indebtedness to Bank under this Agreement or the Loan Documents;

 

(b)                                 Subordinated Debt;

 

(c)                                  Indebtedness existing on the Effective Date and shown on a Perfection Certificate (other than, following the date of the initial Credit Extension, Indebtedness disclosed on a Perfection Certificate which is being repaid using the proceeds of the initial Credit Extension);

 

(d)                                 unsecured Indebtedness to trade creditors and Indebtedness secured by customary (extended) retention of title arrangements ((verlängerte) Eigentumsvorbehalte), in each case incurred in the ordinary course of business;

 

(e)                                  Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business;

 

(f)                                   Indebtedness secured by Liens permitted under clauses (a) and (c) of the definition of “Permitted Liens”;

 

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(g)                                 extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness permitted under paragraphs (a) to (c) inclusive above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon an Obligor or a Subsidiary/Affiliate of an Obligor, as the case may be; and

 

(h)                                  permitted by Bank in writing at any time after the date of this Agreement.

 

“Permitted Investments” are:

 

(a)                                Investments (including Subsidiaries/Affiliates) existing on the Effective Date and shown on the Perfection Certificate, including any commitments the Borrower has made as of the date of this Agreement in connection with any Investments (including Subsidiaries/Affiliates) and which Borrower has disclosed in writing to the Bank in the Perfection Certificate;

 

(b)                                Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower’s business;

 

(c)                                 Investments consisting of deposit accounts in which Bank has a perfected security interest;

 

(d)                                Investments accepted in connection with Transfers permitted by Clause 7.1 (Dispositions);

 

(e)                                 Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries/Affiliates pursuant to employee share purchase plans or agreements approved by Borrower’s Board of Directors;

 

(f)                                  Investments (including debt obligations) received in connection with the bankruptcy or reorganisation of customers or suppliers and in settlement of unfulfilled obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business;

 

(g)                                 Investments consisting of notes receivable of, or prepaid royalties and other credit extensions to, customers and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (h) shall not apply to Investments of Borrower in any Subsidiary/Affiliate; and

 

(h)                                Investments by the Borrower in its Subsidiaries/Affiliates to cover operating costs in the ordinary course of business of such Subsidiary/Affiliate, provided that such Investments shall not exceed:

 

(i)                                    in the case of AbCheck s.r.o., a limited liability company (spolecnost s rucenim omezenym) incorporated in the Czech Republic, having company number 28471512, and Affimed Inc., a corporation incorporated under the laws of Delaware and having company number 47-3374648, an aggregate amount of €5,000,000 (Euro Five Million) per annum; and

 

(ii)                                 in the case of any other Subsidiary/Affiliate, such amount per calendar month as is agreed in writing between the Lender and the Borrower from time to time.

 

“Permitted Liens” are:

 

(a)                                  Liens arising under this Agreement or other Loan Documents in favour of the Bank;

 

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(b)                                 Liens for taxes, fees, assessments or other government charges or levies, either being contested in good faith or payment of which can be lawfully withheld and for which Borrower maintains adequate reserves on its Books, if they have no priority over any of Bank’s Liens;

 

(c)                                  Purchase money Liens (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more than One Hundred Thousand Euros (€100,000) in the aggregate amount outstanding, or (ii) existing on equipment when acquired, if the Lien is confined to the equipment itself and improvements and the proceeds of the equipment;

 

(d)                                 Leases or subleases and non-exclusive licences or sub-licences granted in the ordinary course of Borrower’s business, if the leases, subleases, licences and sub-licences permit granting Bank a security interest;

 

(e)                                  Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) to (d) inclusive, but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase;

 

(f)                                   Liens in favour of other financial institutions arising in connection with Borrower’s deposit accounts held at such institutions (including but not limited to any security interest or right to set-off arising under any general business conditions (AGB Banken and/or under articles 24 or 25 respectively of the general terms and conditions (algemene voorwaarden) of any member of the Dutch Bankers’ Association (Nederlandse Vereniging van Banken)) of any bank in Germany, the Netherlands and/or any other comparable provisions in other countries), provided that (i) Bank has a perfected security interest in the amounts held in such deposit accounts; (ii) such security interest of Bank takes priority to any such Lien of the relevant deposit account bank; and (iii) the relevant deposit account bank has acknowledged that the Bank’s security interest has priority over its Lien;

 

(g)                                  guarantees or other Liens by a Dutch Obligor in favour of another Obligor under section 2:403 et. seq. of the Dutch Civil Code (or similar provision of applicable law or regulation);

 

(h)                                 guarantees or other Liens by a Dutch Obligor in favour of another Obligor in respect of any fiscal unity (corporate income tax or value added tax) consisting solely of Obligors; and

 

(i)                                     any Lien arising by operation of law and in the ordinary course of business of Borrower including customary retention of title arrangements (Eigentumsvorbehalte) securing German trade creditors.

 

“Person” is any individual, sole proprietorship, partnership (including but not limited to a general partnership and a limited partnership), limited liability company, joint venture, company, trust, unincorporated organisation, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.

 

“Quotation Day” means, in relation to any period for which an interest rate is to be determined, two TARGET Days before the first day of that period (unless market practice differs in the Relevant Market for Euro in which case the Quotation day will be determined by Bank in accordance with market practice in the Relevant Market (and if quotations would normally be given on more than one day, the Quotation Day will be the last of those days)

 

“Regulatory Authority” any competent authority in any country or region that regulates medicines and healthcare and life sciences products, including the Medicines and Healthcare products Regulatory Agency, the European Medicines Agency, ethics committees and the US Food and Drug Administration.

 

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“Regulatory Change” is defined in Clause 9.13(a) (Additional Costs).

 

“Relevant Market” means the European interbank market.

 

“Requirement of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Resolution Authority” means any body which has authority to exercise any Write-down and Conversion Powers.

 

“Responsible Officer” is each managing director (Geschäftsführer), director (including a statutair bestuurder) or other equivalent officer of an Obligor.

 

“Restricted Licence” is any material licence or other agreement with respect to which an Obligor is the licensee (a) that prohibits or otherwise restricts Obligor from granting a security interest in Obligor’s interest in such licence or agreement or any other property, or (b) for which a default under or termination of could interfere with Bank’s right to sell any Collateral.

 

“Security Documents” means each of:

 

(a)                                a Netherlands law omnibus deed of pledge;

 

(b)                                the German Security Documents; and

 

(c)                                 all other Liens granted in favour of the Bank as security for the Obligations now or in the future.

 

“Studies” means each of:

 

(a)                                AFM13-104;

 

(b)                                AFM24-101; and/or

 

(c)                                 any other study or clinical trials agreed between Borrower and Bank to be included as a study within the meaning of “Studies”.

 

“Subordinated Debt” is debt incurred by an Obligor subordinated to Borrower’s debt to Bank (pursuant to a subordination agreement entered into between Bank, the relevant Obligor and the subordinated creditor), on terms acceptable to Bank.

 

“Subsidiary” means a subsidiary within the meaning of sections 15-17 German Stock Corporation Act (Aktiengesetz).

 

“TARGET2” means the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilises a single shared platform and which was launched on 19 November 2007.

 

“TARGET Day” means any day on which TARGET2 is open for the settlement of payments in Euro.

 

“Taxes” means any present or future taxes, levies, duties, imposts or other charges or withholdings of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same), and “Tax” and “Taxation” have a corresponding meaning.

 

“Tax Deduction” has the meaning given to that term in Clause 9.7 (Withholding; Gross-up).

 

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“Tax Payment” has the meaning given to that term in Clause 9.7 (Withholding; Gross-up).

 

“Term Loan” is a drawing under Tranche 1, Tranche 2 or Tranche 3.

 

“Term Loan Amount” is an amount equal to the aggregate of:

 

(a)                                the Tranche 1 Term Loan Amount;

 

(b)                                the Tranche 2 Term Loan Amount; and

 

(c)                                 the Tranche 3 Term Loan Amount.

 

“Term Loan Maturity Date” is 1 November 2025.

 

“Trademarks” are trademark and service mark rights, registered or not, applications to register and registrations and like protections, and the entire goodwill of the business of Obligor connected with the trademarks.

 

“Tranche 1” has the meaning ascribed to it in Clause 2.1 (a)(i).

 

“Tranche 1 Availability Period” means the period commencing ten (10) Business Days after the date of this Agreement and ending on 28 February 2021.

 

“Tranche 1 Term Loan Payment” has the meaning ascribed to it in Clause 2.1 (b)(i).

 

“Tranche 1 Term Loan Amount” is an amount equal to ten million Euros (€10,000,000) (as reduced or cancelled in accordance with the terms of this Agreement).

 

“Tranche 2” has the meaning ascribed to it in Clause 2.1 (a)(ii).

 

“Tranche 2 Availability Period” means the period commencing ten (10) Business Days after the date of this Agreement and ending on 31 December 2021.

 

“Tranche 2 Conditions” means each of the following conditions:

 

(a)                                evidence in form and substance satisfactory to Bank of positive interim data on AFM13- 104;

 

(b)                                NASDAQ market capitalisation of Guarantor at funding of minimum USD two hundred million ($200,000,000) (the Bank may still fund if the market capitalisation is below this level in its sole discretion); and

 

(c)                                 the conditions in Clause 3.2 (Conditions Precedent to all Credit Extensions) are satisfied.

 

“Tranche 2 Term Loan Amount” is an amount equal to seven point five million Euros (€7,500,000) (as reduced or cancelled in accordance with the terms of this Agreement).

 

“Tranche 3” means the tranche described in Clause 2.1 (a)(iii).

 

“Tranche 3 Availability Period” means the period commencing ten (10) Business Days after the date of this Agreement and ending on 31 December 2022.

 

“Tranche 3 Conditions” means each of the following conditions:

 

(a)                                  evidence in form and substance satisfactory to Bank that the Borrower has received cumulative equity and/or business development cash received amounting to minimum forty million Euros (€40,000,000) excluding proceeds from at the market sales

 

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agreement dated May 13, 2020 and the Research and Collaboration Agreement between Borrower and Pharmavant 6 GmbH dated November 3, 2020;

 

(b)                                evidence in form and substance reasonably satisfactory to Bank as to positive final data in AFM13-104;

 

(c)                                 evidence in form and substance reasonably satisfactory to Bank as to positive data in AFM24-101 in minimum 1 expansion cohort; and

 

(d)                                the conditions in Clause 3.2 (Conditions Precedent to all Credit Extensions) are satisfied.

 

“Tranche 3 Term Loan Amount” is an amount equal to seven point five million Euros (€7,500,000) (as reduced or cancelled in accordance with the terms of this Agreement).

 

“Transfer” is defined in Clause 7.1 (Dispositions’).

 

“USD” and “$” means the lawful currency of the United States of America and in respect of all payments to be made under this Agreement means immediately available, freely-transferable cleared funds.

 

“Write-down and Conversion Powers” means in relation to any applicable Bail-In Legislation:

 

(a)                                any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued by a Person that is a bank or investment firm or other financial institution or affiliate of a bank, investment firm or other financial institution, to cancel, reduce, modify or change the form of a liability of such a Person or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that Person or any other Person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers underthat Bail-In Legislation that are related to or ancillary to any of those powers; and

 

(b)                                any similar or analogous powers under that Bail-In Legislation.

 

14.2                       Interpretation. In this Agreement, unless the context otherwise requires or the contrary intention appears:

 

(a)                                a reference to a provision of law is a reference to that provision as extended, applied, amended or enacted from time to time and includes any subordinate legislation;

 

(b)                                the singular includes the plural and vice versa, and reference to any gender includes the other genders;

 

(c)                                 references to this Agreement or any other agreement or document are to this Agreement or such other agreement or document as it may be validly varied, amended, supplemented, restated, renewed, novated or replaced from time to time;

 

(d)                                references to any party to this Agreement include a reference to its successors and permitted assigns and permitted transferees under this Agreement;

 

(e)                                 references to “written” or “in writing” include all forms of visible reproduction in permanent form, including electronic messages;

 

(f)                                  the words “execution”, “signed”, “signature” and words of like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based 

 

39

 

recordkeeping systems as the case may be, to the extent and as provided for in any applicable law;

 

(g)                                 the term “promptly” means without undue delay (unverzüglich);

 

(h)                                the headings used in this Agreement are for convenience only and shall not affect the interpretation of this Agreement;

 

(i)                                    the parties hereto mutually acknowledge that they and their lawyers have participated in the preparation and negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist;

 

(j)                                   any reference to:

 

(i)                                    a “month” is a reference to a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month (and “months” has a corresponding meaning) save that, where any such period would otherwise end on a day which is not a Business Day, it shall end on the next Business Day, unless that day falls in the calendar month succeeding that in which it would otherwise have ended, in which case it shall end on the preceding Business Day provided that, if a period starts on the last Business Day in a calendar month or if there is no numerically corresponding day in the month in which that period is to end, that period shall end on the last Business Day in that latter month;

 

(ii)                                 a “dispute” means any litigation or administrative or arbitration proceeding before or of any court, tribunal, arbitrator or governmental or municipal authority, any labour dispute, any dispute with any governmental or municipal authority and any other dispute of any kind;

 

(k)                                any covenant by a party not to do an act or thing includes an obligation not to permit or suffer such act or thing to be done;

 

(l)                                    the words “including” and “in particular” and any similar words or expressions are by way of illustration and emphasis only and do not operate to limit the generality or extent of any other words or expressions;

 

(m)                            all Exhibits to this Agreement form part of it and take effect as if set out in this Agreement, and any reference to this Agreement includes the Exhibits;

 

(n)                                a Default is “continuing” if it has not been remedied (to the extent capable of remedy) to the satisfaction of Bank or specifically waived in writing by Bank and an Event of Default is “continuing” if it has not been specifically waived in writing by Bank;

 

(o)                                Where the Borrower consists of more than one Person:

 

(i)                                    the obligations and liabilities of the Borrower shall take effect as joint and several obligations and liabilities on the part of such Persons;

 

(ii)                                 unless the context otherwise requires, all references to the Borrower shall take effect as references to such Persons or each of them;

 

(iii)                              neither Borrower shall be released from liability under this Agreement by reason of this Agreement not being or ceasing to be binding on the other Borrower;

 

(iv)                             any notice to or demand on the Borrowers shall be sufficiently served on both Borrowers if served on one Borrower.

 

40

 

(p)                                 references to Clauses and Exhibits refer to clauses of, and schedules and exhibits to, this Agreement.

 

13.3 Dutch terms

 

In this Agreement, where it relates to a Dutch entity, a reference to:

 

(a)                                 “gross negligence” means grove schuld;

 

(b)                                 “indemnify” means vrijwaren;

 

(c)                                  “negligence” means schuld;

 

(d)                                 “wilful misconduct” means opzet,

 

(e)                                  a “security interest” includes any mortgage (hypotheek), pledge (pandrechf), retention of title arrangement (eigendomsvoorbehoud), privilege (voorrechf), right of retention (recht van retentie), right to reclaim goods (recht van reclame), and, in general, any limited right (beperkt recht), created for the purpose of granting security (goederenrechtelijk zekerheidsrechf);

 

(f)                                   a “moratorium” includes surseance van betaling;

 

(g)                                  a “bankruptcy trustee” includes a curator;

 

(h)                                 an “administrator” includes a bewindvoerder,

 

(i)                                     “general partnership” includes vennootschap  onderfirma;

 

(j)                                    “limited partnership” includes commanditaire  vennootschap;

 

(k)                                 “partnership” includes maatschap

 

(l)                                     limited liability company includes a legal person within the meaning of articles 2:1 to 2:3 inclusive of the Dutch Civil Code

 

(m)                             “articles of association” includes Statuten;

 

(n)                                 “attachment” includes beslag;

 

(o)                                 “board of supervisory directors” includes raad van commissarissen;

 

(p)                                 “deed of incorporation” includes akte van oprichting;

 

(q)                                 “Dutch Civil Code” means Burgerlijk Wetboek; and

 

(r)                                    “works council”, “central works council” or “European works council” means an ondernemingsraad, centrale ondernemingsraaf or Europese ondernemingsraad respectively

 

[Signature page follows]

 

41

 

	
BORROWER:
    	
 
    
	
 
    	
 
    
	
EXECUTED   for and on behalf of AFFIMED GMBH   by:
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Dr. Adi Hoess
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Dr. Adi   Hoess
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Chief   Executive Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Dr. Wolfgang Fischer
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Dr. Wolfgang   Fischer
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Chief   Operating Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
GUARANTOR:
    	
 
    
	
 
    	
 
    
	
EXECUTED   for and on behalf of AFFIMED N.V.   by:
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Dr. Adi Hoess
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Dr. Adi   Hoess
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Chief   Executive Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Angus Smith
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Angus   Smith
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Chief   Financial Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
BANK:
    	
 
    
	
 
    	
 
    
	
EXECUTED   for and on behalf of SILICON VALLEY BANK by:
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Oscar Jazdowski
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Oscar   Jazdowski
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
General Manager, Silicon Valley Bank, Germany
    	
 
    
	
 
    	
 
    

 

SVB/Affimed 2020 Facility Agreement — Signature Page

 

 

EXHIBIT A

 

Loan Payment Request Form

 

DEADLINE FOR SAME DAY PROCESSING IS MIDDAY FRANKFURT TIME

 

Fax To: (617) 969-5965                                                                                                                                                                                                                                                                                     Date: _______________________

 

LOAN PAYMENT:

 

[NAME OF THE COMPANY]

 

From Account # ______________________________________ To Account # __________________________________ 

 

	
(Deposit Account #)
    	
(Loan   Account #)
    

 

Principal €___________________________________________ and/or Interest €__________________________________

 

Authorised Signature:_________________________                                   Phone Number:_____________________________

 

Print Name/Title:_____________________________

 

 

CREDIT EXTENSION:

 

Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an outgoing wire.

 

From Account #_______________________________________ To Account #___________________________________

 

	
(Loan Account #)
    	
(Deposit   Account #)
    

 

Amount of [Tranche 1] [Tranche 2] [Tranche 3] €_______________________________________

 

43

 

Date Term Loan is to be made ____________________ 20[·]

 

All Borrower’s representations and warranties in the Loan Agreement are true, correct and complete in all material respects on the date of the telephone transfer request for an advance, but those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date:

 

Authorised Signature:___________________________                             Phone Number:_____________________________

 

Print Name/Title: _______________________________

 

 

OUTGOING WIRE REQUEST:

 

Complete only if all or a portion of funds from the loan advance above is to be wired.

 

Deadline for same day processing is midday London Time.

 

Beneficiary Name: ___________________________________________

                                                                                            Amount of Wire: € _____________________________________________

 

Beneficiary Bank: ___________________________________________

                                                                                             Account Number: _____________________________________________

 

City and State:________________________________________

 

Beneficiary Bank Transit (ABA) #: ___________________ Beneficiary Bank Code (Swift, Sort, Chip, etc.): ________________

 

(For International Wire Only)

 

Intermediary Bank: _______________________________                Transit (ABA) #: _________________________________

 

For Further Credit to: ___________________________________________________________________________________

 

Special Instruction: ____________________________________________________________________________________

 

By signing below, we acknowledge and agree that our funds transfer request shall be processed in accordance with and subject to the terms and conditions set out in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by us.

 

44

 

Authorized Signature: ______________________________ 2nd Signature (if required):_______________________________

 

Print Name/Title: __________________________________ Print Name/Title: _____________________________________

 

Telephone #: ______________________________________

                             Telephone #:______________________________

 

45

 

EXHIBIT B

COMPLIANCE CERTIFICATE

 

TO:         SILICON VALLEY BANK

FROM:  [    ·    ]

 

(a)                                 The undersigned authorised officer of [    ·    ] (“Borrower”) certifies that under the terms and conditions of the Loan Agreement between, amongst others, Borrower and Bank (the “Agreement”), (1) Borrower is in complete compliance for the period ending                 with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) Borrower, and each of its Subsidiaries/Affiliates, has timely filed all required tax returns and reports, and Borrower has timely paid all taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Clause 5.8 (Taxation) of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries/Affiliates relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank.  Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered.  Capitalised terms used but not otherwise defined herein shall have the meanings given to them in the Agreement.

 

	
Please indicate compliance status   by circling Yes/No under “Complies” column.
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Reporting Covenant
    	
 
    	
Required
    	
 
    	
Complies
    	
 
    
	
 €   40,000,000.00 of cash at month end
    	
 
    	
Within 30 days of the end of each month
    	
 
    	
Yes o No o
    	
 
    
	
Monthly financial statements 
    	
 
    	
Within 30 days of the end of each month
    	
 
    	
Yes o No o
    	
 
    
	
Quarterly financial statement 
    	
 
    	
45 days following each quarter-end or 60 days   following each year-end
    	
 
    	
Yes o No o
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Annual Operating Budgets and Projections
    	
 
    	
Within 60 days after the expiration of the   immediately preceding financial year
    	
 
    	
Yes o No o
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

46

 

	
The following Intellectual   Property was registered after the Effective Date (if no registrations, state   “None”)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
The following legal   actions are pending (if none state “None”)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

The following are the exceptions with respect to the certification above:  (If no exceptions exist, state “No exceptions to note.”)

 

 

47

 

	
AFFIMED GMBH
    	
 
    	
BANK USE ONLY
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Received by:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
 
    	
AUTHORISED SIGNER
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Verified:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
AUTHORISED SIGNER
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Compliance   Status:     Yes o No o
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
AFFIMED   N.V.
    	
 
    	
BANK USE ONLY
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Received by:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
 
    	
AUTHORISED SIGNER
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Date
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Verified:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
AUTHORISED SIGNER
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Compliance Status:     Yes o No o
    

 

48

 

EXHIBIT C

CLIENT PAYMENT INSTRUCTIONS

 

49

 

EXHIBIT D

LITIGATION DISCLOSURES

 

none

 

50Exhibit 10.27

[*]: THE IDENTIFIED INFORMATION HAS BEEN OMITTED FROM THE AGREEMENT BECAUSE IT IS BOTH (i) NOT MATERIAL AND (ii) IS THE TYPE THE REGISTRANT TREATS AS PRIVATE CONFIDENTIAL
​
​
LIMITED LIABILITY COMPANY AGREEMENT

OF

CE RENEW CO, LLC

(a Delaware Limited Liability Company)
MEMBERSHIP INTERESTS IN THE COMPANY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR PURSUANT TO THE PROVISIONS OF ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS THEY HAVE BEEN REGISTERED UNDER SUCH ACT AND LAWS OR UNLESS REGISTRATION IS NOT REQUIRED.  IN ADDITION, SUBSTANTIAL RESTRICTIONS ON THE TRANSFER OF MEMBERSHIP INTERESTS IN THE COMPANY ARE CONTAINED IN THIS AGREEMENT.
​

​

TABLE OF CONTENTS
Page

ARTICLE 1 DEFINITIONS AND USAGE‌1

Section 1.1Definitions‌1

Section 1.2Rules of Usage‌9

ARTICLE 2 ORGANIZATION‌9

Section 2.1Formation‌9

Section 2.2Name‌10

Section 2.3Purpose‌10

Section 2.4Duration‌10

Section 2.5Principal Place of Business, Registered Office and Resident Agent‌10

Section 2.6Intention for Company‌10

Section 2.7Title‌11

Section 2.8Rejection of Agency‌11

Section 2.9Attention to Company‌11

Section 2.10Payment of Individual Obligations‌11

Section 2.11Other Businesses‌11

Section 2.12Representations and Warranties‌11

Section 2.13Limitation of Liability of Members‌12

Section 2.14Nature of Interest in the Company‌12

ARTICLE 3 MEMBERSHIP INTERESTS AND CAPITAL CONTRIBUTIONS‌12

Section 3.1Membership Interests‌12

Section 3.2Initial Contributions and Debt Conversion‌12

Section 3.3Contributions and Loans by Members for Operations and Other Purposes‌13

Section 3.4Creditors Not Benefited‌14

Section 3.5No Withdrawal Rights‌15

Section 3.6No Interest or Return of Capital‌15

Section 3.7Clean Option to Convert Class B Units‌15

Section 3.8BP Optional Conversion of Class B or C Units‌15

ARTICLE 4 MEETINGS AND ACTIONS OF THE MEMBERS‌15

Section 4.1Meetings‌15

Section 4.2Meetings of Voting Members; Manner of Acting‌15

Section 4.3Notice of Meetings; Waiver of Notice‌16

-2-

TABLE OF CONTENTS
(continued)
Page

Section 4.4Record Date‌16

Section 4.5Quorum‌16

Section 4.6Manner of Acting‌16

Section 4.7Action by Members Without a Meeting‌16

Section 4.8Proxies‌16

Section 4.9Rights to Vote‌16

ARTICLE 5 MANAGEMENT‌17

Section 5.1Authority of the Board of Directors‌17

Section 5.2Necessary Member Consents‌17

Section 5.3Board of Directors‌20

Section 5.4Meetings of the Board of Directors; Manner of Acting‌21

Section 5.5Delegation of Authority; Officers; Reliance‌22

Section 5.6Anti-corruption and Anti-money laundering‌23

Section 5.7HSSE, Operating Standards and Integrity Management‌24

ARTICLE 6 CERTAIN RELATED PARTY ARRANGEMENTS‌25

Section 6.1Construction of Facilities‌25

Section 6.2Gas Marketing Services‌25

Section 6.3Company A&A Services and O&A Agreement‌26

Section 6.4Member Information Requests‌26

ARTICLE 7 BUDGETS; REPORTS; CERTAIN TAX MATTERS‌27

Section 7.1Fiscal and Taxable Year‌27

Section 7.2Books of Account‌27

Section 7.3Budget‌28

Section 7.4Reports‌28

Section 7.5Tax Returns; Audits, Etc‌29

Section 7.6Bank Accounts‌31

Section 7.7Auditors‌32

ARTICLE 8 CAPITAL ACCOUNTS AND TAX ALLOCATIONS‌32

Section 8.1Members’ Capital Accounts‌32

Section 8.2Allocation of Profits and Losses‌33

Section 8.3Regulatory Allocations‌33

-3-

TABLE OF CONTENTS
(continued)
Page

Section 8.4Tax Allocations‌35

Section 8.5Interpretation‌36

ARTICLE 9 DISTRIBUTIONS‌36

Section 9.1Non-liquidating Distributions‌36

Section 9.2Liquidating Distributions‌37

Section 9.3PIK Priority Return‌37

Section 9.4Class B and C Redemption‌37

Section 9.5Limits on Distributions‌37

ARTICLE 10 LIABILITY; INDEMNIFICATION; EXCULPATION; LIMITATION OF LIABILITY‌37

Section 10.1Liability for Debts of the Company; Limited Liability‌37

Section 10.2Exculpation‌38

Section 10.3Insurance‌38

Section 10.4Indemnification‌39

Section 10.5Limitation on Damages‌39

Section 10.6Fiduciary Duties of Members and Directors‌40

Section 10.7Related Party Contracts‌40

ARTICLE 11 TRANSFERS OF MEMBERSHIP INTERESTS‌40

Section 11.1General Restriction on Transfer‌40

Section 11.2Transferees‌41

Section 11.3Right of First Refusal‌41

Section 11.4Transferee Bound‌43

Section 11.5Tag-Along Rights‌43

Section 11.6Additional Requirements‌43

Section 11.7Transferee’s Rights‌45

Section 11.8Involuntary Transfer‌45

Section 11.9Fair Market Value of the Membership Interest‌46

ARTICLE 12 DISSOLUTION AND WINDING UP‌47

Section 12.1Events of Dissolution‌47

Section 12.2Method of Liquidation‌47

-4-

TABLE OF CONTENTS
(continued)
Page

ARTICLE 13 OTHER MANAGEMENT ARRANGEMENTS AND DUTIES‌48

Section 13.1Management Dispute‌48

Section 13.2Deadlock Resolution‌48

ARTICLE 14 MISCELLANEOUS PROVISIONS‌49

Section 14.1Investment and Securities Matters‌49

Section 14.2Amendments‌50

Section 14.3Arbitration‌50

Section 14.4Consent to Jurisdiction‌51

Section 14.5Waiver of Jury Trial‌51

Section 14.6Waiver of Breach‌51

Section 14.7Severability‌51

Section 14.8Notices‌51

Section 14.9Entire Agreement‌52

Section 14.10Assignability‌53

Section 14.11Governing Law‌53

Section 14.12Counterparts‌53

Section 14.13No Third Party Rights Created Hereby‌53

Section 14.14Additional Action and Instruments‌53

Section 14.15No Drafter‌53

​
​
EXHIBITS
	Exhibit A
	Capital Contributions and Membership Interests

	Exhibit B
	A&A Services

	Exhibit C
	[Reserved.]

	Exhibit D
	BP plc Group Code of Conduct

	Exhibit E
	[Reserved.]

[*]
​
​
​

-5-

​

LIMITED LIABILITY COMPANY AGREEMENT
OF
CE RENEW CO LLC
a Delaware Limited Liability Company
THIS LIMITED LIABILITY COMPANY AGREEMENT (“Agreement”) of CE Renew Co, LLC, a Delaware limited liability company (the “Company”) is effective as of April 13, 2021 (the “Effective Date”), among Clean Energy, a California corporation (together with any permitted successor, “Clean”), BP Products North America Inc., a Maryland corporation (together with any permitted successor, “BP”), and any other Person admitted as a Member in accordance with the terms of this Agreement.
RECITALS
A.The Members desire to develop, construct, acquire, own, maintain, finance and operate Projects, directly through the Company or indirectly through Subsidiaries.
B.The Members anticipate that the Company or its Subsidiaries will enter into future agreements relating to the construction, maintenance and operation of Projects, and the marketing and sale of natural gas and associated environmental credits and attributes, which agreements may be with the Members or their Affiliates.
NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Members hereby agree as follows:
ARTICLE 1​
DEFINITIONS AND USAGE
Section 1.1Definitions.  In addition to the terms expressly defined in this Agreement, the following terms shall have the meanings as set forth in this Section 1.1:
“A&A Services” means those certain administration services to be provided by Clean to the Company, as set forth on Exhibit B.
“Act” means the Delaware Limited Liability Company Act, 6 Del C.  Section 18-101 et seq., as may be amended from time to time.  
[*]
“Adjusted Asset Value” means, with respect to any asset of the Company, the adjusted basis of such asset for federal income tax purposes, except as follows:
A.Unless the Board determines by a Supermajority Vote that an adjustment is unnecessary to reflect the relative interests of the Members in the Company, the Adjusted Asset Values of all Company assets will be adjusted to equal their gross Fair Market Values, as 

​

​

determined in accordance with this Agreement, taking Section 7701(g) of the IRC into account, as of the following times: (a) a Capital Contribution to the Company by a new or existing Member; (b) any distribution by the Company to a Member of more than a de minimis amount of Company property (other than cash); (c) any distribution by the Company to a Member of more than a de minimis amount of cash in connection with the redemption of all or a portion of a Member’s Membership Interests in the Company; (d) the acquisition of an interest in the Company by any new or existing Member upon the exercise of a non-compensatory option in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(s); and (e) at such other times as the Board reasonably determines necessary or advisable in order to comply with Treasury Regulations Sections 1.704-1(b) and 1.704-2.  If any non-compensatory options are outstanding upon the occurrence of an event described in clauses (a) through (e) above, the Company shall adjust the Adjusted Asset Value of its properties in accordance with Treasury Regulations Sections 1.704-1(b)(2)(iv)(f)(1) and 1.704-1(b)(2)(iv)(h)(2).
B.The Adjusted Asset Values of Company property will be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Sections 734(b) or 743(b) of the IRC, but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the Treasury Regulations; provided, however, that Adjusted Asset Values will not be adjusted pursuant to this paragraph to the extent that the Board reasonably determines that an adjustment pursuant to paragraph (ii) above is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this paragraph (iii).  
C.The Adjusted Asset Value of an asset will be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses.
The foregoing definition of Adjusted Asset Value is intended to comply with the provisions of Treasury Regulations Section 1.704-1(b)(2)(iv) and shall be interpreted and applied consistently therewith.
“Adjusted Capital Account Deficit” means, with respect to any Member, the deficit balance, if any, in such Member’s Capital Account as of the end of the relevant fiscal year or other period, after giving effect to the following adjustments:
A.such Capital Account shall be deemed to be increased by any amounts that such Member is obligated to restore to the Company (pursuant to this Agreement or otherwise pursuant to Treasury Regulations Section 1.704-1(b)(2)(ii)(c)) or is deemed to be obligated to restore pursuant to the penultimate sentence of Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5) (relating to allocations attributable to nonrecourse debt); and
B.such Capital Account shall be deemed to be decreased by the items described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6).
The foregoing definition of Adjusted Capital Account Deficit is intended to comply with the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted and applied consistently therewith.

2

​

“Affiliate” means, with respect to any Person, any other Person which directly or indirectly controls, is controlled by or is under common control with such Person.  As used in this definition, “control” (including, its correlative meaning “controlled by” and “under common control with”) shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of outstanding voting securities or partnership or other ownership interests, by contract or otherwise).
“Agreement” has the meaning given in the first paragraph of this Agreement.
“Annual Budget” has the meaning given in Section 7.3 of this Agreement.
[*]
“Available Funds” means Company cash on hand, as of the date of computation, including cash derived from any one or more of the following sources: (i) the Capital Contributions of the Members, (ii) the proceeds of any sale or other disposition of all or any portion of assets, including any insurance proceeds, and (iii) all net operating income.
“B FMV” shall be as defined in Section 11.9.
“Capital Contribution” means any contribution to the capital of the Company in cash or other assets by a Member in its capacity as such.  Any reference to the Capital Contribution of a Member shall include the Capital Contribution (or relevant portion thereof) made by a predecessor holder of the Membership Interest (or relevant portion thereof) of such Member.
“Certificate” means the Certificate of Formation of the Company filed with the Delaware Secretary of State, as the same may be amended from time to time.
“C FMV” shall be as defined in Section 11.9.
“Change of Control” means, with respect to any Member, an event (such as a Disposition of voting securities) that causes such Member to cease to be Controlled by such Member’s ultimate parent or ownership group.
“Class A Units” shall mean a unit of membership interest of the Company representing the Capital Contribution of a Member to the Company as set forth herein.
“Class B Units” shall mean a unit of membership interest of the Company representing the Capital Contribution of a Member to the Company as set forth herein.
“Class C Units” shall mean a unit of membership interest of the Company representing a payment-in-kind distribution with respect to Class B Units as set forth herein. 
“Clean Cash Contribution” has the meaning given in Section 3.2 of this Agreement.
“CLNE Loan” means that certain USD $50,000,000 Loan Agreement dated effective as of December 18, 2020 by and between BP Products North America Inc. and Clean Energy.

3

​

[*]
“Company” means CE Renew Co, LLC, a Delaware limited liability company.
“Contractor’s Representative” means the party identified as such in the relevant EPC Agreement for a Subsidiary or Project.  
“Control”, “Controlled”, and “Controlling” means the possession, directly or indirectly, of any of the following: (i) in the case of a corporation, more than fifty percent (50%) of the outstanding voting securities thereof; (ii) in the case of a limited liability company, partnership, limited partnership or joint venture, the right to more than fifty percent (50%) of the distributions (including liquidating distributions) therefrom; (iii) in the case of a trust or estate, including a business trust, more than fifty percent (50%) of the beneficial interest therein; (iv) in the case of any other entity, more than fifty percent (50%) of the economic or beneficial interest therein; or (v) in the case of any entity, the power or authority, through ownership of voting securities, by contract or otherwise, to exercise a controlling influence over the management of the entity.
“CPI” means a factor representing the change in the Consumer Price Index, All Urban Consumers for All Items (1982-84=100), in effect as of January 1 of each calendar year, as published by the United States Department of Labor, Bureau of Labor Statistics or any successor index thereof, or if such index is discontinued or unavailable and is not replaced, then another index published by the United States Department of Labor, Bureau of Labor Statistics as mutually agreed.
“Debt” means (i) indebtedness for borrowed money or indebtedness issued in substitution or exchange for borrowed money or for the deferred purchase price of property or services (other than trade payables arising in the ordinary course of business), (ii) indebtedness evidenced by any note, bond, debenture or other debt security, in each case, as of such date, (iii) obligations under any interest rate, currency or other hedging agreements (valued at the termination value thereof), in each case, as of such date, (iv) any drawn letter of credit, or (v) capitalized lease obligations.  
[*]
“Depreciation” means, with respect to any Company asset for any fiscal year or other period, the depreciation, depletion, amortization or other cost recovery deduction, as the case may be, allowed or allowable for federal income tax purposes with respect to such asset for such fiscal year or other period; provided, however, that if there is a difference between the Adjusted Asset Value and the adjusted tax basis of such asset, Depreciation will mean “book depreciation, depletion or amortization” as determined under Section 1.704-1(b)(2)(iv)(g)(3) of the Treasury Regulations; provided, further, that if any property has a zero adjusted basis for federal income tax purposes, Depreciation may be determined under any reasonable method selected by the Board.
“Disposition” means with respect to any Membership Interest, any sale, transfer, exchange, assignment, gift, alienation or other disposition of such Membership Interest; and “Dispose of” and “Disposes” have corresponding meanings.  A (i) sale or other disposition, by operation of law or otherwise, of all or substantially all of the equity ownership interest of a Member or (ii) a Change of Control, in each case, shall constitute a Disposition of the Membership Interests owned by such Member.

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“Distributable Cash Flow” means any Available Funds not required to meet current or reasonably anticipated obligations of the Company and its Subsidiaries within the twelve (12) months, or such other date as is specified by the Board, following the date of computation, excluding Member Guaranteed Debt and including all other operating expenses, Debt service, capital expenditures, and establishment of reserves for repairs, replacement or otherwise and for contingent liabilities, as determined by Supermajority Vote of the Board.
“Encumber”, “Encumbering” or “Encumbrance” means the creation of a lien (statutory or otherwise), mortgage, deed of trust, claim, option, easement, charge, pledge, security interest, hypothecation, assignment, use restriction or other encumbrance of any kind or nature whatsoever, whether voluntary or involuntary, choate or inchoate (including any agreement to give any of the foregoing), and any conditional sale or other title retention agreement.
“EPC Agreement” means an Engineering, Procurement and Construction Agreement to be entered into from time to time between the Company or a Subsidiary of the Company and the relevant EPC contractor with respect to the construction of a Project.
“Facility Operator” means the entity selected as operator for a Subsidiary, under the relevant O&A Agreement
“Fair Market Value” of a Membership Interest, asset, the Company, non-cash consideration or other property means the fair market value as agreed in writing by all of the Members, or if they are unable to agree within ten (10) days, as determined by third party experts in accordance with Section 11.9 of this Agreement.
“Involuntary Transfer” means any of the following by or with respect to a Member of part or all of a Member’s Membership Interest (i) applying for or consenting to the appointment of, or the taking of possession by, a receiver, custodian, trustee, administrator, liquidator, or the like of the Member or of all or a substantial portion of the Member’s assets, (ii) admitting in writing its inability, or being generally unable or deemed unable under any applicable law, to pay its debts as such debts become due, (iii) convening a meeting of creditors for the purpose of consummating an out-of-court arrangement, or entering into a composition, extension, or similar arrangement, with creditors in respect of all or a substantial portion of the Member’s debts, (iv) making a general assignment for the benefit of its creditors, (v) placing itself or allowing itself to be placed, voluntarily or involuntarily, under the protection of the law of any jurisdiction relating to bankruptcy, insolvency, reorganization, winding-up or composition or adjustment of debts, (vi) taking any action for the purpose of effecting any of the foregoing or (vii) if a proceeding or case shall be commenced against such Member in any court of competent jurisdiction, seeking (a) the liquidation, reorganization, dissolution, winding-up or composition or readjustment of debts, of such Member, (b) the appointment of a trustee, receiver, custodian, administrator, liquidator or the like of such Member or of all or a substantial portion of such Member’s assets, (c) similar relief with respect to such Member under any law relating to bankruptcy, insolvency, reorganization, winding-up or composition or adjustment of debts, and such proceeding or case shall continue undismissed for a period of sixty (60) days, or an order, judgment or decree approving or ordering any of the foregoing shall be entered and continue unstayed and in effect for a period of sixty (60) days, or an order for relief or other legal instrument of similar effect against such Member shall be entered in an involuntary case under such law and shall continue for 

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a period of sixty (60) days or (d) any other Disposition of Membership Interests pursuant to the foregoing.
“IRC” means the Internal Revenue Code of 1986, as amended from time to time.
“Majority Vote” means the affirmative vote, approval or consent of Directors appointed by Members owning more than fifty percent (50%) of the Percentage Interests in the Company.
“Marketing Manager” means BP (or its Affiliate) in its role as Marketing Manager under the relevant Marketing Services Agreement for a Project.
“Marketing Services Agreement” means a Marketing Services Agreement to be entered into between BP (and/or its designated Affiliate) and the Company or a Subsidiary from time to time with respect to a Project prior to the NTP Date of such Project, which Management Services Agreement shall be in a form mutually agreed to by the Members within sixty (60) days of the execution of this Agreement (or such longer period as the Members may mutually agree), and with such changes as BP and the Company (subject to the consent of Clean) may mutually agree at such time.
“Member” means any Person admitted as a Member in accordance with the terms of this Agreement.
“Membership Interest” means a “limited liability company interest” within the meaning of the Act, which is personal property pursuant to Section 18-701 of the Act, and shall be deemed to include all Class A, Class B and Class C Units and other rights and obligations of a Member, including voting and approval rights, with respect to the Company.
“Member Guaranteed Debt” shall mean, to the extent any validly approved Support Obligation posted by a Member or its Affiliates is able to be drawn or called, the maximum aggregate principal amount of such Support Obligation that can be drawn or called and any reimbursement obligations of the providing member or its Affiliates arising therefrom, including any obligation of such Member or its affiliates to repay any principal, interest, costs, fees and expenses in respect of any such amounts drawn in respect of any letter of credit, guarantee or other credit support posted by such Member or its Affiliates, together with any interest, costs, fees and expenses in respect thereof.
“Member Loan” shall be as defined in Section 3.3D.
“Member Loan Return” shall mean, for a particular Member Loan and unless agreed otherwise, an amount of interest on the outstanding principal amount of such loan at a per annum rate of five (5) percentage points above the prime rate published from time to time by J.P.  Morgan Chase Bank N.A. (or its successor), compounded monthly, which rate shall be determined on the first day of each month and be applied to the average daily loan balance for the month.
“NTP Date” with respect to a Project means the date on which full notice to proceed is issued to the contractor under the EPC Agreement for such Project.  

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“O&A Agreement” means those certain operating and administration agreements to be entered into between a Subsidiary and the Facility Operator selected by the Company from time to time with respect to a Project in the form approved by the Company at such time.
“Operator” means Clean in its role as Operating and Administration contractor for the Company.
“Party” and “Parties” means those Persons that are a signatory to this Agreement and their related Indemnified Parties as applicable.
“Percentage Interest” means a Member’s percentage of the total Class A Units in the Company, and is set forth in Exhibit A (as such may be updated from time to time in accordance with this Agreement) and which the collective Percentage Interests of all Members shall always equal one hundred percent (100%).
“Person” means any individual and any legal entity, including any corporation, partnership (general or limited), limited liability company, trust or estate.
“Priority Return” means [*].
“Profits” and “Losses” means, for each fiscal year or other period, an amount equal to the Company’s taxable income or loss for such year or other period, determined in accordance with Section 703(a) of the IRC (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Section 703(a)(1) of the IRC shall be included in taxable income or loss), with the following adjustments: (i) any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses shall be added to such taxable income or loss; (ii) any expenditures of the Company described in Section 705(a)(2)(B) of the IRC or treated as Section 705(a)(2)(B) of the IRC expenditures pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i) shall be subtracted from such taxable income or loss; (iii) gain or loss resulting from any disposition of property with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Adjusted Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Adjusted Asset Value; (iv) in lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, the Company shall compute such deductions based on Depreciation; (v) if the Adjusted Asset Value of an asset is adjusted pursuant to clauses (ii) or (iii) of the definition of Adjusted Asset Value, then the amount of such adjustment shall be treated as an item of gain or loss and included in the computation of Profits and Losses; (vi) if any property is distributed in kind to any Member, the difference between its Fair Market Value and its Adjusted Asset Value at the time of distribution shall be treated as Profit or Loss, as the case may be, recognized by the Company; and (vii) items of Company gross income, gains, deductions and losses allocated pursuant to Section 8.2 shall not be included in the computation of Profits and Losses.
“Prohibited Transferee” means a Person which (i) is a specially designated national under US sanctions regulation or otherwise a Person with whom US persons may not transact business, (ii) is insolvent or in proceedings for insolvency, reorganization or liquidation, or (iii) refuses to 

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provide the Company with sufficient information as to its ultimate beneficial owners as may reasonably be required for know your customer and anti-money laundering requirements.
“Project” means a renewable gas project, owned by the Company or a Subsidiary, including all contracts, leases, permits, licenses, and rights associated therewith.
“Related Party Contract” means any contract between the Company or a Subsidiary and one or more Members and/or their respective Affiliates.
“Standby Rate” shall mean the 3 Month London Interbank Offered Rate as published on the Reuters Screen LIBOR01 (or any successor thereto) at approximately 11 am (London time) [*]. 
[*]
“Subsidiary” or “Subsidiaries” means any legal entity Controlled by the Company.
“Supermajority Vote” means (i) in the case of a vote by the Directors, the affirmative vote, approval or consent of the Directors appointed by Members owning at least a seventy-five percent (75%) Percentage Interests, and (ii) in the case of a vote by the Members, the affirmative vote, approval or consent by Members owning at least a seventy-five percent (75%) Percentage Interests.
“Support Obligations” shall mean any credit support (which may be in the form of letters of credit, guarantees, deposits, payment or performance bonds or other credit support) provided by a Member on behalf of the Company or any Subsidiary to a third-party funding provider relating to the development, construction, acquisition, ownership, maintenance or operation of the Projects, in each case, to the extent required under any Project contract approved by the Board.
“Third Party” means a Person who is neither a Member nor an Affiliate of a Member.
“Total B FMV” shall be as defined in Section 11.9.
“Total C FMV” shall be as defined in Section 11.9.
“Treasury Regulations” means the regulations promulgated under the IRC, as such regulations may be amended from time to time.
“Uncommitted” shall mean Capital Contributions attributable to the issuance of Class B Units which have not been specifically allocated to an approved Project.
“Unpaid Clean Payment Obligation” has the meaning given in Section 3.2 of this Agreement.
“US GAAP” means generally accepted accounting principles in the United States
promulgated by the Financial Accounting Standards Board, or its predecessors or successors, consistently applied.
​

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Other capitalized terms not otherwise defined in this Section 1.1 shall have the meanings given to such capitalized terms in the provisions of this Agreement in which such capitalized terms are defined.
Section 1.2Rules of Usage.  The following rules of usage shall apply to this Agreement.
A.Clean and BP are sometimes referred to herein individually as a “Member” and collectively as the “Members”.  References herein to a Member are also to its permitted successors and assigns.
B.The words “including” and “includes” and their derivatives mean “including without limitation”, “including but not limited to” and corresponding derivative expressions.  When introducing a series of items, the term “including” is not intended to limit the more general description that precedes the items listed.
C.The singular shall include the plural and the plural shall include the singular and any gender shall include all other genders, all as the meaning and context of this Agreement shall require.  Each defined term herein shall be equally applicable both to the singular and the plural forms of the term so defined.
D.The headings and recitals contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
E.Unless the context requires otherwise: (i) references to an “Article” “Section,” “Subsection” or “Clause” herein shall refer to an article, section, subsection or clause of this Agreement; (ii) references to an “Appendix,” “Exhibit” or “Schedule” herein shall refer to an appendix, exhibit or schedule attached to this Agreement, each of which is made a part hereof for all purposes; (iii) the words “this Agreement,” “hereof,” “hereunder,” “herein,” “hereby,” or words of similar import shall refer to this Agreement as a whole (including each Appendix, Exhibit or Schedule) and not to a particular Article, Section, subsection, clause or other subdivision hereof, (iv) currency amounts referenced herein, unless otherwise specified, are in United States Dollars; (v) a reference in this Agreement to another agreement shall be deemed to refer to such other agreement as now or hereafter amended; (vi) a reference to a document or instrument that is subject to change (such as the Annual Budget or delegation of authority) shall be deemed a reference to the most current version of the document or instrument at the time of consideration unless otherwise specifically noted; (vii) unless otherwise specified, any reference to a time of day shall be a reference to the then current time of day in Los Angeles, California, and any reference to a business day means a business day in Los Angeles, California; and (viii) any day appointed or specified by this Agreement for the payment of any money or doing of anything falls on a day which is not a business day, the day so appointed or specified will be deemed to be the next business day.
ARTICLE 2​
ORGANIZATION
Section 2.1Formation.  The Company has been organized as a Delaware limited liability company pursuant to the Act by the filing of the Certificate with the Delaware Secretary of State as required by the Act.  The Members hereby approve and ratify the filing of the 

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Certificate, confirm and agree to their status as Members of the Company, and execute this Agreement for the purpose of establishing the rights, duties and relationships of the Members.  To the extent that the rights or obligations of any Member are different by reason of any provisions of this Agreement than they would be under the Act in the absence of such provisions, this Agreement shall, to the extent permitted by the Act, control.
Section 2.2Name.  The name of the Company is CE Renew Co, LLC, or such other name as the Members shall select from time to time by a Supermajority Vote.  The Company may also conduct its business under one or more assumed names.  The appropriate Officers or other authorized representatives of the Company promptly shall execute, file and record, or cause to be executed, filed and recorded, any assumed or fictitious name certificates required by the laws of the State of Delaware or any state in which the Company conducts business.
Section 2.3Purpose.  The Company was formed for the following purposes, all limited within the United States:
A.to own, finance and oversee the construction of Projects and sell the resulting product or products, including renewable natural gas and environmental credits and green attributes, and to own the equity of companies which carry on the foregoing activities;
B.to engage in all such activities as are necessary, convenient, desirable, related or incidental to the foregoing purposes; and
C.when authorized by unanimous consent of the Members as provided in Section 5.2A, to engage in any other lawful activity permitted by the Act.
Section 2.4Duration.  The Company shall continue in existence in perpetuity after the effective date of the Certificate, unless dissolved sooner by the Members or by operation of law and its affairs are wound up in accordance with the Act or this Agreement.
Section 2.5Principal Place of Business, Registered Office and Resident Agent.  The principal office of the Company shall be located at 4675 MacArthur Court, Suite 800, Newport Beach, CA 92660, and/or such other address(es) as may be designated by the Members from time to time by a Supermajority Vote.  The initial resident agent of the Company in Delaware shall be CT Corporation.  The registered agent and/or resident office may be changed from time to time in accordance with the Act.  If the resident agent resigns, the Company shall promptly appoint a successor.
Section 2.6Intention for Company.  The Members have formed the Company as a limited liability company under the Act.  The Members specifically intend and agree that the Company shall not be a state law partnership (including a limited partnership), association, or any other venture, but a limited liability company under and pursuant to the Act.  The Members intend that the Company shall be treated as a “partnership” for U.S. federal and, if applicable, state income tax purposes, and each Member and the Company shall file all tax returns and shall otherwise take all tax and financial reporting positions in a manner consistent with such treatment.  Neither the Company nor any Member may make an election for the Company to be excluded from the application of the provisions of subchapter K of chapter 1 of subtitle A of the IRC or any similar 

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provisions of applicable state law, and no provision of this Agreement shall be construed to sanction or approve such an election.
Section 2.7Title.  All property of the Company shall be owned by the Company as an entity, and no Member shall have any ownership interest in such property in its individual name or right.  The Company shall hold all of its property in the name of the Company and not in the name of any Member.
Section 2.8Rejection of Agency.  The Members acknowledge and agree that they have no agency relationship with each other, that a Member shall have no agency and no vicarious liability for the acts or omissions of another Member, and that the Members are not partners under state law.  This is not intended to alter the terms of any Marketing Services Agreement.
Section 2.9Attention to Company.  Each Member shall be permitted to devote such time, effort, resources and attention to the Company as such Member as provided for by this Agreement and otherwise as such Member deems appropriate in the reasonable discretion of such Member, subject to their respective performance obligations under any Related Party Contracts.
Section 2.10Payment of Individual Obligations.  The Company’s credit and assets shall be used solely for the benefit of the Company, and no asset of the Company shall be transferred or encumbered for or in payment of any individual obligation of any Member.
Section 2.11Other Businesses.  All of the Parties acknowledge and agree that each Member may enter into other operating agreements, other agreements, transactions or business ventures with such other Persons.  Neither the Company nor any Member shall have any right by virtue of this Agreement in such independent ventures of the other Member or to any of the profits derived therefrom or any claim of any kind or nature with respect to the same.  The inclusion of this provision is not to be interpreted that any such claims exist or have any validity, and is only to clarify that, in the event that a court determines that such claims exist, such claims are knowingly, voluntarily and irrevocably waived by each Member and the Company.
Section 2.12Representations and Warranties.  
A.Each Member represents, warrants and covenants to the other Member and the Company, as to itself only, that:
(i)It is a company duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and is qualified to do business in all jurisdictions where the failure to qualify would materially and adversely affect its ability to execute or deliver, or perform its obligations under, this Agreement.
(ii)It has the power and authority to execute and deliver this Agreement (or the instrument pursuant to which such Member becomes bound hereby) and to perform its obligations under this Agreement.
(iii)The execution and delivery by it of this Agreement and the performance by it of its obligations under this Agreement have been duly authorized, and no other action on the part of such Member or its officers, managers, board of directors, partners or members 

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is necessary to authorize the execution and delivery by it of this Agreement and the performance by it of its obligations under this Agreement.
(iv)This Agreement has been duly executed and delivered by it and is a legal, valid and binding obligation of such Member, enforceable against such Member in accordance with its terms subject to limitations on enforceability under applicable bankruptcy, insolvency, reorganization, moratorium or other law relating to or affecting the rights of creditors, and subject to general principles of equity.
(v)The execution and delivery by it of this Agreement and the performance by it of its obligations under this Agreement (a) do not violate its organizational documents, (b) do not violate or conflict with, or constitute a breach or default (or any event which, with or without due notice or lapse of time, or both, would constitute a default) under, any material contract to which it is a party or by which it or its assets are bound and (c) do not violate any material term or provision of (A) its governmental approvals or (B) any applicable law.
(vi)It understands that the Company intends to be classified and taxed as a “partnership” for U.S. federal and, if applicable, state income tax purposes and not as a corporation or a publicly-traded partnership taxed as a corporation, and accordingly agrees that it will not transfer any Membership Interest in the Company except in compliance with the terms of this Agreement, or cause any such Membership Interest to be marketed, on or through an “established securities market” within the meaning of Section 7704(b)(1) of the IRC or a “secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704(b)(2) of the IRC, including an over-the-counter market or an interdealer quotation system that regularly disseminates firm buy or sell quotations.
Section 2.13Limitation of Liability of Members.  Each Member’s liability to provide capital or other assets to the Company shall be limited to the Capital Contributions and loans such Member is required to make to the Company pursuant to this Agreement to the extent such Capital Contributions or loans have not yet been made, and no Member shall have any further obligation to make any other contributions of capital or provide other property to the Company.
Section 2.14Nature of Interest in the Company.  A Member’s Membership Interests shall be personal property for all purposes.
ARTICLE 3​
MEMBERSHIP INTERESTS AND CAPITAL CONTRIBUTIONS
Section 3.1Membership Interests.  The Company shall have three classes of Membership Interests, Class A Units, Class B Units and Class C Units.[*] each of BP and Clean shall be admitted as a Member of the Company and shall own a Membership Interest in the Company with the Percentage Interest specified in Exhibit A, subject to adjustment only as unanimously agreed by the Members.
Section 3.2Initial Contributions and Debt Conversion.  [*]
 ​

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Section 3.3Contributions and Loans by Members for Operations and Other Purposes.  The Members acknowledge that the business of the Company may not produce sufficient revenue to discharge the operating costs and expenses of the Company and that additional Capital Contributions and loans from the Members may be necessary or desirable to pay the obligations of the Company as they become due.  Accordingly, the provisions set forth below shall apply with respect to any and all Capital Contributions or loans by the Members not governed by Section 3.2 or the other sections of this ARTICLE 3.  In addition, the Members intend that the Company fund the approved expenses of its Subsidiaries, including the capital costs of any Projects the Subsidiaries carry on.
A.Operating Costs and Expenses. If the business of the Company does not produce sufficient revenue to discharge the operating costs and expenses of the Company, such costs and expenses shall be paid from the initial Capital Contributions and from such other Capital Contributions and loans as may be expressly provided for hereunder.
B.Additional Capital Contributions and Loans.  Except as expressly set forth in this ARTICLE 3, no Member shall be obligated to make any subsequent or additional Capital Contributions to the Company or be obligated to make loans or advance funds to the Company for any purpose.
C.Capital Calls.  If the Members by a unanimous vote determine that additional Capital Contributions and/or loans to the Company are required to be made by the Members in excess of the initial Capital Contributions payable pursuant to Section 3.1 above, then the Board shall authorize a capital call for such amount to be contributed to the Company by the Members as set forth below (in each case, a “Capital Call”).  The Members shall make any additional Capital Calls in immediately available funds in proportion to their respective Percentage Interests. Following a Capital Call, the President or Secretary shall issue a notice of the Capital Call to each Member (a “Capital Call Notice”), which shall include the following information:
(i)The total amount requested from all of the Members pursuant to such Capital Call, whether such funds are to be provided as Capital Contributions and the purpose for such funds;
(ii)Each Member’s required Capital Contribution, based on their Percentage Interest as of the date of such Capital Call;
(iii)The purpose for which such Capital Contribution is to be made; and
(iv)The date on or before which the Member’s Capital Contribution or loan shall be due, which date shall not be less than thirty (30) days, nor more than ninety (90) days after receipt by a Member of the Capital Call Notice.
D.Member Loans.  If the Members have by the required vote approved an Annual Budget or a Project, and additional funds are required for matters covered by such Annual Budget or to fund the acquisition, construction and completion of a Project, but no Capital Call for such purpose is approved, either BP or Clean may request that the Member(s) provide a loan, each a “Member Loan”.  The Board shall provide each Member at least thirty 

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(30) days’ prior notice of the date on which such Member Loan shall be provided, and the aggregate amount sought.  If a single Member elects to provide the loan, it shall provide the total amount approved by the Board, and the amount so advanced then shall be deemed a loan to the Company.  If both Members elect to provide the loan, they shall each provide a loan for a share of the total in proportion to their Percentage Interests, or such other proportion as they may mutually agree.  Member Loans shall be repayable by the Company together with a Member Loan Return pursuant to the terms of this Agreement.  Unless agreed otherwise at the issuance of the Member Loan, the principal and Member Loan Return on the loan shall be deducted from Distributable Cash Flow otherwise payable by the Company to the Members hereunder.  If the funding would result in a cumulative overrun of more than twenty-five percent (25%) of either (i) the Annual Budget or (ii) the estimated budget for the Project established at the time of its approval, then the Members must by Supermajority Vote approve the request for loans
E.Company Interest in Subsidiaries.  If the Company or a Subsidiary has a requirement for operating or capital expenses which is approved by the Board, the initial Capital Contributions have been exhausted and no Member is required and no Member makes a Capital Contribution or Member loan pursuant to the preceding provisions of this Section 3.3, then the Company shall attempt to fund such requirement with third-party loans.
F.Support Obligations; Member Guaranteed Debt. Support Obligations provided by a Member or its Affiliate shall be subject to the Unanimous Approval of the Members. No Member shall be required to obtain and maintain, or to cause its Affiliates to obtain and maintain, any Support Obligations. The Company shall reimburse each Member and its Affiliates, as applicable (prior to making any distributions to the Members pursuant to Section 9.1 B), for all fees, costs and expenses incurred in respect of any undrawn and uncalled Support Obligations provided by them, and, in the case of Support Obligations in the form of cash collateral, guarantees or letters of credit, a monthly fee (in an amount to be approved by the unanimous vote of the Members) on the aggregate undrawn principal amount thereof, which fee shall be payable on the last day of each calendar month, or portion thereof, that such Support Obligation is outstanding. To the extent any validly approved Support Obligation posted by a Member or its Affiliates can be drawn or called, the aggregate principal amount of such Support Obligation that may be drawn or called in any reimbursement obligations of the providing Member or its Affiliates including any obligation of such Member or its Affiliates to repay any principal, interest, costs, fees and expenses in respect of any such amounts drawn in respect of any letter of credit, guarantee or other credit support posted by such Members Affiliates, shall be deemed a Member Guaranteed Debt. Member Guaranteed Debts shall be unsecured loans unless otherwise agreed by the Members, and shall bear interest in accordance of the terms and conditions of such Member Guaranteed Debt. Each of the Members hereby acknowledges and agrees that Available Funds of the Company will first be used for pay all principal and interest for Debt that is not Member Guaranteed Debt prior to utilizing any such Available Funds to service principal and interest for Member Guaranteed Debt. The Members further acknowledge and agree that all Member Guaranteed Debt shall be repaid on a pro rata basis as between the Members (i.e. In proportion to and to the extent of the Member Guaranteed Debt held by each Member respectively). 
Section 3.4Creditors Not Benefited.  Except as set forth in Section 11.1D, no Third Party creditor or other Third Party having dealings with any Member shall have the right to enforce 

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the right or obligation of any Member to make Capital Contributions or loans or to pursue any other right or remedy hereunder or at law or in equity, it being understood and agreed that the provisions of this Agreement shall be solely for the benefit of, and may be enforced solely by, the Parties and their respective successors and assigns.  Except as set forth in Section 11.1D, none of the rights or obligations of the Members herein set forth to make Capital Contributions or loans to the Company shall be deemed an asset of the Company for any purpose by any Third Party creditor or other Third Party, nor may such rights or obligations be sold, transferred or assigned by the Company or pledged or encumbered by the Company to secure any debt or other obligation of the Company or of any of the Members.
Section 3.5No Withdrawal Rights.  Except to the extent agreed in writing by the Members and without limiting BP’s rights under Section 9.4, the Members shall not have any right to withdraw as a Member or to withdraw their Capital Contributions or to receive any return of their Capital Contributions.  Upon any withdrawal of a Member approved by the other Member (other than in connection with a Disposition of all such Member’s Membership Interest), the Membership Interest of the withdrawing Member shall, automatically and without any further action of any Person, be deemed to have been redeemed by the Company for no consideration and shall be cancelled as of the effective date of such resignation, and the withdrawing Member shall have no further claim on any assets of the Company, nor right to receive any distributions from the Company, nor any other rights as a Member, nor shall the withdrawing Member have any liability to the Company other than as accrued or arising with respect to the period prior to the date of its withdrawal.  Such withdrawal does not modify the terms of, or serve to revoke or terminate, any guarantees previously given to the Company or to any third party by such Member or any Affiliate, and any such guarantees may only be modified or terminated as provided by their respective terms.
Section 3.6No Interest or Return of Capital.  Except as otherwise expressly provided in this Agreement or under the Act, no Member is entitled to receive any interest or return on any contributions to the Company or on the Member’s Capital Account, nor does any Member have any interest, right, or claim in or to any of the Company’s assets.
Section 3.7Clean Option to Convert Class B Units. [*]  
Section 3.8BP Optional Conversion of Class B or C Units.  [*] 
ARTICLE 4​
MEETINGS AND ACTIONS OF THE MEMBERS
Section 4.1Meetings.  The Members shall hold an annual meeting on the date agreed by the Board of Directors.  Other meetings of the Members may be called for any purpose or purposes by the Board of Directors or by any one or more Members entitled to vote by the terms of this Agreement (“Voting Members”) owning or holding at least a twenty percent (20%) Percentage Interests on the date such meeting is called.
Section 4.2Meetings of Voting Members; Manner of Acting.  The Member meetings shall be held normally by video conference or similar remote technology.  The Members shall unless otherwise mutually agreed, and if permissible under applicable health guidelines, hold one in person meeting per year in Cook County, Illinois, or such other place within the continental 

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United States as the Board of Directors may designate by a Supermajority Vote.  It is expected, but not required, that all meetings will coincide with the time and location of meetings of the Board of Directors.  Meetings of Members may be held by use of any means of communication by which all Voting Members participating in the meeting may simultaneously hear each other.
Section 4.3Notice of Meetings; Waiver of Notice.  Other than in the case of an emergency requiring imminent action, notice of a Member meeting shall be delivered, in the case of a telephonic meeting, no fewer than five (5) business days and, in the case of an in-person meeting, no fewer than ten (10) business days, nor in any case more than sixty (60) days before the date of the meeting, by or at the direction of the Board of Directors or the Members calling the meeting, to each Voting Member.
Section 4.4Record Date.  For the purpose of determining Members entitled to notice of or to vote at any meeting of Members or any adjournment of the meeting or to make a determination of Members for any other purpose, the date on which notice of the meeting is mailed (or otherwise delivered) shall be the record date for the determination of Members.
Section 4.5Quorum.  Voting Members owning or holding at least a seventy-five percent (75%) Percentage Interests, represented in person or by proxy, shall constitute a quorum at any meeting of Members.
Section 4.6Manner of Acting.  On matters on which the Members are entitled to vote under this Agreement, the affirmative vote of Voting Members owning or holding at least a majority of the Percentage Interests at such time shall be the act of the Members, unless the vote of a greater or lesser proportion or number is otherwise required by the Act or by this Agreement.
Section 4.7Action by Members Without a Meeting.  Action required or permitted to be taken at a meeting of the Members may be taken without a meeting if (A) the action is evidenced by a written consent describing the action taken, (B) the written consent is signed by the Members required to take the action as provided in Section 4.6, (C) the written consent is delivered to the Company for inclusion in the records of the Company, and (D) the action is one on which the Members are entitled to vote under Section 4.9.  Action taken under this Section 4.7 is effective when the Company receives a copy of the consent signed by the requisite Voting Members, unless the consent specifies a different effective date.  The Secretary shall promptly send written notice to each Member of any action taken by written consent pursuant to this Section 4.7.
Section 4.8Proxies.  At all meetings of Members, a Voting Member may vote in person or by proxy executed in writing by the Voting Member or by a duly authorized attorney- in-fact.  The proxy shall be delivered to the other Members before or at the time of the meeting.  No proxy shall be valid after eleven (11) months from the date of its execution, unless otherwise provided in the proxy.
Section 4.9Rights to Vote.  Notwithstanding anything to the contrary set forth in this ARTICLE 4 or elsewhere in this Agreement, the Members shall have no right to vote on any matter whatsoever, at a meeting, by consent in lieu of a meeting, or otherwise, except (A) with respect the matters set forth in Section 5.2, (B) with respect to amendments as provided in Section 14.2, and (C) on such other matters, if any, as to which the vote of Members is specifically required 

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under the terms of this Agreement or the Act.  Except as provided in Section 5.2, for the Members’ designation of the Board of Directors in accordance with Section 5.3, or as otherwise specifically provided for herein as contemplating action by the Members, the management of the Company is vested in the Board of Directors.
ARTICLE 5​
MANAGEMENT
Section 5.1Authority of the Board of Directors.  
A.Management.  The business and affairs of the Company shall be directed, managed and controlled by its Board of Directors (the “Board of Directors” or “Board”).  The Board of Directors shall be considered the “manager” of the Company as that term is defined under the Act.  Except as otherwise provided in this Agreement or by nonwaivable provisions of applicable law, the Board of Directors shall have the authority, power and discretion to establish policies and procedures for the Company, to manage, direct and control the business, affairs and properties of the Company, to make decisions regarding the same, and to perform any and all other acts or activities customary or incident to the Company’s business without obtaining the consent of the Members.  The Members may by a Supermajority Vote elect Officers of the Company as provided in Section 5.5 below.  The hiring of employees or the payment of any compensation to Officers or employees of the Company shall require the unanimous consent of the Members.
B.Project Approval. With respect to each potential Project, Clean will present the Board a proposal with a reasonable period for review that: (i) specifies the site(s) to be developed; (ii) provides details with respect to the developer who will be contracted to build the facilities; (iii) presents an early engineering and/or feasibility study or studies to support the proposal; (iv) estimates the total capital required to fund the Project through operations (including working capital forecasts); (v) outlines the proposed sources and uses of funding through operations (e.g. Class A Unit equity, Class B Unit equity, Member Guaranteed Debt, third-party debt, etc.); (vi) includes a preliminary HSSE assessment and (vii) includes the pro-forma economics for the Project on an agreed model. Each new Project must be approved unanimously by the Board. If either Board representative of either Member vote s against the approval of a potential Project, then neither the Company nor any Member shall have any obligation to proceed with the Project, and any Member may at its sole option elect  to independently proceed with the Project in such manner as it deems appropriate. 
C.General.  Unless authorized to do so by this Agreement, any of the Related Party Contracts, or the Board of Directors, no Member, Director, Officer, employee, attorney-in- fact or other agent of the Company shall have any power or authority to bind the Company in any way, to pledge its credit or to render it liable for any purpose.
Section 5.2Necessary Member Consents.  Notwithstanding anything to the contrary set forth in this Agreement, neither the Board of Directors nor any Member, Director, Officer, employee or agent of the Company shall have authority to take any of the following actions on behalf of the Company without obtaining the consent of the Members, either in writing or at a meeting of the Members, in the percentage set forth in this Section 5.2.  In each case, if a quorum 

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of the Members is present at a meeting duly called in accordance with this Agreement, the required percentage of Members shall be calculated with reference to those Members attending the meeting.
A.Matters Requiring a Unanimous Vote of the Members.  The following actions require the unanimous consent of all Members, either by written consent or at a meeting duly called:
(i)Performance of any act which is in contravention of or inconsistent with this Agreement;
(ii)Performance of any act which would make it impossible to carry on the ordinary business of the Company, except in connection with a Dissolution Event;
(iii)Possession by the Company of property or assignment of its rights in specific Company property for other than a Company purpose or incidental thereto;
(iv)Commencing any proceedings to wind up, dissolve, reorganize or liquidate the Company, or to make any assignment for the benefit of creditors;
(v)Making any distribution or payments of funds to any Member or its Affiliates except for distributions to Members in accordance with this Agreement and payments made pursuant to a Related Party Contract approved in accordance with this Agreement;
(vi)Any amendment to this Agreement or the Certificate, other than ministerial changes, non-material changes or changes to correct patent errors (including amendments to Exhibit A pursuant to Section 3.1), it being understood that any change to Section 5.6 (Anti-corruption and Anti-money laundering) shall be deemed material;
(vii)Transferring, selling or otherwise disposing of assets of the Company which either: (a) have a Fair Market Value of more than [*], or (b) would represent more than [*] percent [*] of the total assets of the Company immediately prior to completing such transaction;
(viii)Entering into any business other than as authorized by Section 2.3A and B of this Agreement;
(ix)Entering into any merger or consolidation with another legal entity; or continuing the Company under the laws of any jurisdiction other than Delaware or converting the Company to a corporation, a master limited partnership or an entity taxable as a corporation for federal income tax purposes;
(x)Undertaking an initial public offering; 
(xi)Approving a Capital Call in excess of the Member’s initial Capital Contributions.
(xii)Entering into any derivative or swap transactions;

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(xiii)Entering into, materially amending, or terminating other than for cause any Related Party Contract, other than those with an anticipated expenditure and revenue over their term of less than [*];
(xiv)Approving any financial statements of the Company or any Subsidiary;
(xv)Acquiring any assets, real property or equipment with a value at the time of acquisition greater than[*], other than as authorized in the Annual Budget;
(xvi)Except for BP’s rights pursuant to Section 3.2, making any material decision regarding the instigation or resolution of litigation or an administrative or regulatory proceeding, that (a) involves a claim of more than [*] in which the Company or a Subsidiary is involved or (b) that imposes on the Company or a Subsidiary, an obligation of specific performance or an admission of guilt or penalty for non-compliance which, in either case, would cost in excess of [*] to remedy;
(xvii)The adoption of any binding business, financial or operating plan of the Company (including any project model for the Company or a Project);
(xviii)The adoption of the Annual Budget, or any material modification of the Annual Budget resulting in more than a [*] percent [*] increase to the Company;
(xix)Issuing Membership Interests to any Person, issuing any new class of Membership Interests, redeeming or purchasing or accepting a gift of any Membership Interests, or entering into any agreement to do any of the items in this clause;
(xx)Awarding, entering into, materially amending, terminating or waiving compliance with the terms of (a) any single contract pursuant to which the Company or any Subsidiary is individually obligated for more than [*] or to which any Person is obligated to the Company for more than  [*] or (b) any group of contracts pursuant to which the Company or any Subsidiary is obligated for more than [*] in the aggregate during any ninety (90) day period or to which any Person is obligated to the Company for more than [*] in the aggregate during any ninety (90) day period;
(xxi)Entering into, renewing, approving or amending compensation, benefit, incentive, welfare or other plans or agreements for the benefit of employees, Officers and staff of the Company or a Subsidiary;
(xxii)Hiring, compensating or terminating Officers and key employees of the Company or a Subsidiary, and determining their delegated authority;
(xxiii)The incurrence of Debt by the Company or any Subsidiary and entering into or materially modifying any agreement that specifies the terms of any Debt facilities of the Company or any Subsidiary or entering into any guarantees or indemnities by the Company or any subsidiary, in any of such cases other than in the ordinary course of business;

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(xxiv)Creating and/or granting any mortgage, charge, pledge or other material encumbrance over an asset or undertaking of the Company or a Subsidiary;
(xxv)The grant of a general power of attorney;
(xxvi)The delegation by the Board of any of its power to a committee thereof or otherwise;
(xxvii)The purchase or other acquisition of or the sale or other disposition of equity or Debt securities of another Person;
(xxviii)Engaging in any other business unrelated to the vehicle fuel, natural gas or renewable natural gas industry;
(xxix)Repaying Debt on an accelerated schedule;
(xxx)Determining the Company’s principal place of business;
(xxxi)Authorizing any lien or pledge of a Membership Interest by a Member other than Clean or BP; 
(xxxii)Approval of capital expenditures of more than [*] percent  [*] of either (a) the Annual Budget or (b) the estimated budget for the Project established at the time of its approval;
(xxxiii) Approval of subsidiary O&A agreements
(xxxiv) Approval of abandoning or shutting down an existing Project whether in the form of direct termination of project or dilution of the Company’s interest in a subsidiary.
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Section 5.3Board of Directors.  
A.Number and Designation.  The number of directors comprising the Board shall be four (4) (each, a “Director”).  The Members shall designate the members of the Board of Directors as follows:
(i)two (2) Directors shall be designated by Clean; and
(ii)two (2) Directors shall be designated by BP;
B.Term of Service; Replacement Directors. The term of service of each member of the Board of Directors shall extend from such Director’s appointment by a Member until such Director’s resignation or such Director’s release or removal by the Member appointing such Director.  If at any time any Director ceases to serve on the Board of Directors (whether due to resignation, removal or otherwise), the Member responsible for the designation of such Director pursuant Section 5.3A to shall designate a replacement for such Director by written 

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notice to the Board of Directors and the other Member.  Any Member entitled to designate a specific Director may remove such Director, at any time and from time to time, with or without cause, in such Member’s sole discretion, and such Member shall give written notice of such removal to the other Member and to the Board of Directors.  The initial Directors appointed by each Member shall be as set forth in a notice from such Member to the other Member and the Company.  If the number of directors a Member is entitled to designate changes to pursuant to Section 5.3A changes, then (i) a Member entitled to designate an additional Director may do so at any time in writing after becoming entitled to do so, (ii) if the Member is entitled to designate fewer Directors but at least one, it shall promptly designate which Director(s) are to be removed, and if it does not do so within thirty (30) days, the other Member may designate the Director(s) to be removed; and (iii) if a Member is no longer entitled to designate any Directors, all of its designated Directors shall be automatically deemed to be removed.
C.Eligibility.  Only an individual (and not an entity) may serve as a Director.  Directors need not be Members of the Company. Directors will serve consistent with [*].
D.Resignation.  A Director may resign on any date by giving written notice to the Company, who shall advise the Board of Directors of such resignation.  Such resignation shall take effect on the date specified therein or, if no date is specified, then on the date of receipt of the resignation by the Company, and unless otherwise specified therein, acceptance of such resignation shall not be necessary to make it effective.
E.Vacancies.  A vacancy or vacancies in the Board of Directors occurring for any reason, including the resignation or removal of a Director, shall be filled by the Member with the power to designate such Director in accordance with Section 5.3A.
F.Obligations Other than as a Director.  The Directors shall not be required to manage the Company as their sole and exclusive function and they may have other business interests and may engage in other activities in addition to those relating to the Company.
Section 5.4Meetings of the Board of Directors; Manner of Acting.  
A.Location and Calling of Meetings.  The Board of Directors shall meet no less often than quarterly, but meetings will be held in any event when called by any Director as set forth below.  The meetings shall be held by video conference, except that if the Members elect to have a physical meeting, it shall be held within Cook County, Illinois, or at such other location within the continental United States determined by a Supermajority Vote of the Board of Directors.  Meetings of the Board of Directors may be held in person or by use of any means of communication by which all Directors participating in the meeting may simultaneously hear each other.  The Member appointing a Director shall be responsible for any costs or expense of travel, lodging or meals or other expenses of such Director attending the meeting.
B.Notice of Meetings; Waiver of Notice.  Written notice stating the date, time, and location of the meeting and the purpose or purposes for which the meeting is called shall be delivered to each Director for a telephonic meeting, no fewer than three (3) business days and, for an in-person meeting, no fewer than five (5) business days before the date of the meeting.  Whenever any notice whatsoever is required to be given to any Director under this Agreement 

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or the Act, a waiver thereof in writing, signed on any date, whether before or after the date and time of the meeting, by the Director entitled to such notice shall be deemed equivalent to the giving of such notice.
C.Quorum.  A quorum for the transaction of business at any meeting of the Board of Directors shall require at least one (1) Director appointed by each Member, unless one Member is entitled to appoint four (4) or more Directors, in which case a quorum shall require at least one Director appointed by the Member entitled to appoint such four (4) or more Directors.  If none of the Directors appointed by a Member attend a meeting which has been duly called, other than for reasons beyond such Directors’ reasonable control, then a second meeting may be called.  If none of the Directors appointed by the same Member fail to attend the second meeting, other than for reasons beyond such Directors’ reasonable control, after due notice has been given or waived as provided in this Agreement, then a quorum for such meeting shall be determined without regard to the Directors appointed by such Member.
D.Manner of Acting; Actions Without a Meeting.
(i)In any matter requiring the vote, consent or approval of the Board of Directors, each Director shall be entitled to a number of votes equal to (a) the Percentage Interest held, or deemed held, by the Member designating such Director pursuant to Section 5.3, multiplied by 100 and divided by (b) the number of Directors designated by such Member pursuant to Section 5.3.  Notwithstanding the foregoing, or anything else to the contrary contained in this Agreement, if a Director fails to attend a Board of Directors meeting, any other Director appointed by the same Member as the absent Director shall be entitled to cast all of the votes of the absent Director, with or without explicit authorization to do so by such absent Director.
(ii)Except as otherwise required by the Act or by this Agreement, a Majority Vote shall be the act of the Board of Directors.  The Board of Directors shall only act collectively at meetings or by written consent in accordance with the terms of this Agreement.
(iii)The Board of Directors may also take action without a meeting of the Board by written consent of Directors representing the requisite Percentage Interests required to take action on such matter at a meeting of the Board.  A copy of any such written consent shall be provided to each Director and shall be filed in the records of the Company.
E.Capital Calls.  Any Capital Call requires the unanimous consent of the Board, subject to the provisions of Section 3.3D with respect to Member Loans.
Section 5.5Delegation of Authority; Officers; Reliance.  
A.Delegation of Authority.  The Members may, from time to time, delegate by a Supermajority Vote to one or more individuals (who need not be Members of the Company) such authority and duties as the Board of Directors may deem advisable to carry out the day-to- day business of the Company and may enter into contracts with such individuals for such purpose.
B.Other Officers.  The Members may, from time to time and by a Supermajority Vote, assign titles (including president, vice president, secretary and treasurer) to 

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any such other individuals selected by the Board of Directors (each an “Officer” and together the “Officers”).
C.Revocation, Limitation.  Any delegation pursuant to this Section 5.5 may be revoked at any time by Supermajority Vote of the Members.  A delegation of authority pursuant to this Section, or the assignment of a title pursuant to this Section, shall not, of itself, create any contract or employment rights.
D.Reliance.  Any Person conducting business with the Company may rely on the authority of any Officer in taking any action that is in the name of the Company without inquiry into the provisions of this Agreement or compliance therewith.
E.Execution of Documents.  Any one or more of the authorized Officers of the Company, or any other Person authorized by the Members, may execute documents or instruments on behalf of the Company, including agreements, contracts, checks (including initiating wires and other electronic money transfers), mortgages, leases, deeds and bills of sale.  This Section 5.5E relates only to the execution of documents or instruments on behalf of the Company by Officers or other Persons authorized by the Members to execute such documents or instruments.  Any approval required for such documents or instruments, or the transactions contemplated therein, shall be governed by other sections of this Agreement.  For purposes of executing this Agreement and documenting the Capital Contributions of the Members, any Officer shall be authorized to sign on behalf of the Company.
Section 5.6Anti-corruption and Anti-money laundering.  
A.The Company and its Subsidiaries shall comply with all anti-bribery, anti-corruption and anti-money laundering laws applicable to the Company and, whether or not applicable as a matter of law, the Bribery Act 2010 of the United Kingdom, the Foreign Corrupt Practices Act 1977 of the United States of America, and the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, as such may be amended and modified from time-to-time (collectively, “Anti-Corruption Laws”).
B.The Company and its Subsidiaries shall have a zero-tolerance policy towards bribery and corruption.  The Company, its Subsidiaries and their respective Directors, Officers, employees and service providers (including their respective subcontractors, agents and other intermediaries) will not, offer, give, promise to give or authorize the giving to any Person whosoever, or solicit, accept or agree to accept from any Person, either directly or indirectly, anything of value including gifts or entertainment or Facilitation Payments, as defined by the Foreign Corrupt Practices Act of 1977, as amended, in order to obtain, influence, induce or reward any improper advantage in connection with its business (the “Anti-Corruption Obligation”).
C.The Company shall immediately report to all Members owning at least a twenty-five percent (25%) Percentage Interests (and to each of BP and Clean as long as they own any Membership Interest):

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(i)any request or demand received by the Company, a Subsidiary, or any service provider engaged by the Company or a Subsidiary that could amount to a breach of the Anti-Corruption Laws or Anti-Corruption Obligation; or
(ii)any allegations, proceedings or investigations relating to bribery, corruption or money laundering against any of the Company or its Subsidiaries, and their respective directors, officers, employees or service providers.
D.The Company shall comply, and shall cause each of its Subsidiaries to comply, with the principles of the BP plc group code of conduct attached as Exhibit D to this Agreement, (“BP Code”).  The Company and its Subsidiaries shall have in place, maintain and enforce its own policies and procedures which are designed to ensure, and which are reasonably expected to continue to ensure, compliance with Anti-Corruption Laws, the Anti-Corruption Obligation and the BP Code.  The policy of the Company and the Subsidiaries shall be to comply with applicable laws and regulations.
E.The Company shall adopt on behalf of itself and its Subsidiaries account opening and know your customer procedures in accordance with reasonable and prudent anti- money laundering practice.
F.The Company and its Subsidiaries shall not make any contributions to candidates for political office.
Section 5.7HSSE, Operating Standards and Integrity Management.  
A.The Company’s policy is to have its Projects and the Projects owned by its Subsidiaries operated in accordance with good industry practice and applicable health, safety, security and environmental (“HSSE”) laws and regulations.  When contracting for the design and construction of a Project, as well as the operation of a Project, the Company shall require the construction contractor and subsequently the operator to put in place a project plan and to then provide status updates in order to demonstrate the Project is being executed according to such plan.  These status updates shall include progress reporting measurements and metrics, a summary of activities and accomplishments since the last status report, planned activities for the upcoming reporting period, any issues that could impact on the schedule, and a summary of specific activities that have been completed.  In particular, these status updates would cover:
(i)the construction contractor’s management of the design, construction and engineering of the Project facilities and any potential issues that may cause delay to the Project, or may impact the provision of any products and/or services to the Company in accordance with the contract;
(ii)progress in obtaining land rights and all necessary permits, approvals, consents and licenses to develop and support the Project; and
(iii)progress in Project staffing and any competency issues.
B.The Company shall cause the Operator to provide reports in such form as the Board may by Supermajority Vote approve.

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C.The Company shall also require the construction contractor and subsequently the operator to have an HSSE plan for the Project, with status updates and reporting of HSSE metrics, progress against milestones, summary of HSSE activities in prior reporting period and planned HSSE activities for the upcoming reporting period.  The Company shall include in all contracts HSSE provisions that provide for compliance with HSSE law, give the Company the right to conduct an HSSE audit once the Project facilities are ready for operation and, thereafter, audits on a periodic basis, together with prompt reporting to the Company of HSSE incidents.
ARTICLE 6​
CERTAIN RELATED PARTY ARRANGEMENTS
Section 6.1Construction of Facilities.  The Company and/or the relevant Subsidiary shall from time to time enter into EPC Agreements for one or more Projects.  The Construction Manager under an EPC Agreement shall have the responsibility for the design, construction and commissioning of a Project to the extent provided pursuant to the terms of the applicable EPC Agreement.  
Section 6.2Gas Marketing Services.  
A.Clean and BP shall cooperate in good faith to agree to a mutually acceptable form of Marketing Services Agreement within sixty (60) days after the Effective Date.  The Company and/or the relevant Subsidiary and BP (or an Affiliate of BP approved by the Board), as “Gas Marketer”, shall enter into a Marketing Services Agreement for each Project for a term equal to the term of the gas rights agreement for the Project.  The Marketing Services Agreement shall provide for the Gas Marketer’s offtake of all renewable natural gas, and offtake and administration of environmental credits, green energy attributes, transportation of renewable natural gas, and optimization of renewable natural gas sales agreements. 
B.Each Gas Marketing Agreement shall provide that if the Gas Marketer is in material breach for a period of more than ninety (90) days after notice of such breach has been given, and is not making diligent efforts to cure such material breach, then the Gas Marketer’s fee shall be reduced as provided in such agreement.  If such material breach has not been cured within one hundred and eighty (180) days of the original notice, or two hundred and seventy (270) days if the Gas Marketer is making diligent efforts to cure the material breach, then the Company shall be entitled to terminate the agreement.  The Company may agree to shorten the periods provided for in this Section, but any agreement to lengthen them shall require the Supermajority Vote of the Board.
C.As long as Clean or a Clean Affiliate as a successor Member owns at least a twenty-five percent (25%) Percentage Interests, if it wishes the Company to exercise its rights to give notice of material breach and/or a notice of termination as provided above, and BP or its successor Member does not agree, then Clean or its successor Clean Affiliate may proceed as provided in ARTICLE 13 of this Agreement with respect to Deadlock.
D.The entry into a Marketing Services Agreement with a party other than BP or an approved Affiliate of BP shall require the unanimous consent of the Members.

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Section 6.3Company A&A Services and O&A Agreement.  
A.Clean shall provide the A&A Services set forth on Exhibit B for the operation of the Company and subject to the supervision of the Board of Directors as provided herein.  In addition to the audit rights of the Members provided in Section 7.4 and Section 7.5, Clean shall permit  any Member that owns at least a twenty-five percent (25%) Percentage Interests,  to audit and inspect the records, assets and operations of the Company or any Subsidiary in connection with Clean’s provision of the A&A Services, and shall, and shall cause Clean’s personnel performing the A&A Services to, comply with all reasonable audit and inspection requests during normal business hours.  Clean shall provide the A&A Services in accordance with good industry practice and Applicable Law, on an arms length basis when contracting with Clean’s Affiliates, and in accordance with the other requirements of Sections 5.6 and 5.7.  
B.If Clean is in material breach of the A&A Services for a period of more than ninety (90) days after notice of such breach has been given, and is not making diligent efforts to cure such material breach, then Clean shall cease to be entitled to any fee in excess of reimbursement of expenses until such material breach has been cured, or until it commences diligent efforts to cure.  If such material breach has not been cured within one hundred and eighty (180) days of the original notice, or two hundred and seventy (270) days if Clean is making diligent efforts to cure the material breach, then the Company shall be entitled to terminate Clean as provider of the A&A Services.  The Company may agree to shorten the periods provided for in this Section, but any agreement to lengthen them shall require the Supermajority Vote of the Board.  
C.As long as BP or a BP Affiliate as a successor Member owns at least a twenty-five percent (25%) Percentage Interests, if it wishes the Company to exercise its rights to give notice of material breach and/or a notice of terminate as provided above, and Clean or its successor Member does not agree, then BP or its successor BP Affiliate may proceed as provided in ARTICLE 13 of this Agreement with respect to Deadlock.
Section 6.4Member Information Requests.  
A.All information disclosed to or exchanged by any Members shall be subject to [*].
B.Any Member owning at least twenty-five percent (25%) Percentage Interests shall be entitled, consistent [*], to make information requests, inspect and review Operator’s and Company’s relevant records, discuss with Operator’s designated contact questions, and inspect Company or Subsidiary facilities, relating to Operator’s performance under this Agreement and the status, condition and existence of Company or Subsidiary assets and operations.  Prior to any inspection and review, the Member shall specify the scope and purpose of the requests, inspection, review and questions.  The scope of the requests, inspection, review and questions may include, but are not limited to, (i) compliance by the Company or Subsidiary and Operator with applicable law, including environmental law; (ii) compliance by the Operator with the relevant O&A Agreement, including the Prudent Operating and Maintenance Standards and the Anti-Bribery provisions thereof; (iii) review of the Company or 

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Subsidiary bank accounts and all transactions therein, and (iv) information supplied by and reports made by Operator pursuant the O&A Agreement.  Such member shall designate an individual (the “Company Representative”) and one more alternates to be the recipient of reports and documents supplied by Operator and to coordinate requests with Operator.
C.Inspections and audits shall be made at Operator’s regular address, or the Owner’s facility when relevant, during normal business hours and upon reasonable advance notice.  A Member shall exercise the rights conferred in this Section 6.4 in good faith in a commercially reasonable manner.  The Company Representative and the Operator shall work together to schedule calls or in person meetings to review routine information requests monthly or on such other reasonable frequency as may be agreed.  However, in the event of emergencies, or cases where the Member has reason to believe a compliance, anti-money laundering, HSSE or other serious issue has arisen, more frequent contact will be needed.  Physical inspections or audits at Operator’s or Company facilities’ will normally be conducted no more frequently than annually absent good cause, such as investigation of HSSE incidents.  Such Member and its Company Representative shall be subject to confidentiality obligations as provided in this Agreement.
Section 6.5 Management Fee. Subject to the terms of this Agreement, including Section 3.2, as part of the A&A Services, Clean will oversee the day-to-day operations of the Company and related administrative and financial matters.  In consideration for the A&A Services, the Company shall pay Clean a fee (the “Management Fee”) as provided in this Section 6.5. The Management Fee shall be  [*] per year per Project operated by the Company or any Subsidiary of the Company.  The Management Fee for a Project shall be prorated in the case of a partial year of operation for such Project.  The Management Fee for each Project shall be due for the period starting on the first day of the month after the NTP Date for such Project, and shall end for such Project upon the earlier of: (i) termination of the relevant EPC Agreement without completion of the Project, (ii) failure of the project to obtain or maintain pathways under relevant LCFS, RINs or other similar green attribute programs, (iii) sale of the Project,  (iv) abandonment of the Project prior to commissioning, or (v) the decommissioning of the Project. For the avoidance of doubt, no Management Fee shall accrue for any Project that is not owned by the Company or a Subsidiary of Company. The Management Fee shall be payable in monthly installments, by the 10th day of the calendar month following the month for which it is paid, to the account designated by Clean for such purpose. 
ARTICLE 7​
BUDGETS; REPORTS; CERTAIN TAX MATTERS
Section 7.1Fiscal and Taxable Year.  The fiscal year of the Company shall be the calendar year, which shall be the taxable year of the Company unless otherwise required by applicable law.
Section 7.2Books of Account.  At all times during the continuance of the Company, Clean shall maintain separate books of account for the Company in accordance with US GAAP.  Such books of account shall at all times be maintained at such place that has been designated by the Company and notified to each of the Members.

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Section 7.3Budget.  No less than thirty (30) days prior to the start of each calendar year, the Board of Directors shall adopt, by Supermajority Vote, an annual budget for the Company and each Subsidiary (the “Annual Budget”), as approved, adjusted or amended by the Board, or as otherwise remaining in effect as set forth in this Section 7.3).  The Annual Budget shall be in a form approved by the Members by a Supermajority Vote.  If a proposed Annual Budget does not receive Member approval as set forth herein, then the previous year’s Annual Budget, adjusted by the percentage increase in the CPI (if any) for the prior year (excepting out non-recurring or non-routine costs with additions for estimated expenditures for scheduled plant maintenance or turnaround or as required by good industry practices) shall continue in effect as the Annual Budget for the next calendar year or until a new Annual Budget is adopted by the Members by Supermajority Vote.  From time to time during the course of a calendar year, the Operator may submit for approval to the Members proposed amendments to the then current Annual Budget, which the Members shall consider in good faith, but shall not be obligated to approve.  Any matters for which Majority Vote or Supermajority Vote of the Members is required under ARTICLE 5 which are included in an Annual Budget approved by the Board, shall themselves be deemed to have been approved by the requisite vote (Majority Vote or Supermajority Vote, as applicable) of the Board.
Section 7.4Reports.  
A.Required Reports.  The Company shall, to the extent required by the Act, deliver or cause to be delivered to each Member with reasonable promptness, such information and financial data concerning the Company as any Member may from time to time reasonably request and consistent with [*].
B.Additional Reports to Members.  The Board shall provide, or cause to be provided, to each Member the following:
(i)within ten (10) business days after the end of each month and within thirty (30) business days after the end of each quarter, on an unaudited basis for the previous quarter and pro-forma basis for the next 12 months: (1) a balance sheet; (2) an income statement; (3) a statement of cash flows; (4) the following analytics with respect to each Subsidiary: a profit and loss analysis of all costs associated with the Subsidiary on a trailing twelve (12) month basis, including revenue, costs of goods sold, selling and general administrative expenses (“SG&A”), depreciation (separately stated from SG&A), with each analysis broken down by the total dollar and cents per gallon sold; and (5) a statement of Members equity
(ii)within forty-five (45) days after the end of each fiscal year, audited financial statements for the most recently ended fiscal year;
(iii)within ninety (90) days after the end of each fiscal year, to each Person who was a Member at any time during such fiscal year, to the extent the Board can do so on a commercially reasonable basis, all information necessary for the preparation of such Person’s U.S. federal and state income tax returns.
(iv)Periodic reports in the form of the attached Exhibit F with respect to the construction and operation of each Subsidiary and Project.  The Board shall direct the 

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production and delivery of  quarterly and annual reports within 45 days after the end of the relevant period.  The Board may by Supermajority Vote add additional items to the Periodic Reports.
C.Member Information Requests.  Any Member owning at least a twenty-five percent (25%) Percentage Interests in the Company shall have the right to inspect and audit the books and records of the Company at reasonable times and location and to audit health, safety, security and environmental compliance at the Company facilities at reasonable times (in each case, to avoid undue interference with the Company’s business).  Each Member may inspect and audit the relevant records of the Operator relating to its role as operator (including the nondiscrimination requirement), and Clean, relating to the provision of the A&A Services, subject to the confidentiality obligations [*] in this Agreement.  
D.The audit rights with respect to any calendar year shall terminate on and as of the last day of the second calendar year immediately following the calendar year in.  A Member may exercise its audit rights hereunder by giving reasonable written notice to the Company of the desire to perform such audit, which notice shall include the estimated timing and other particulars related to such audit.  The audit shall be conducted during normal business hours of the Company.  The audit shall not unreasonably interfere with the operation of the Company.
The Company shall cause the Operator to provide any Member owning at least a twenty percent (20%) Percentage Interests in the Company with information and access to Operator personnel in accordance with the Operating Agreement.  The costs related thereto shall be paid by the Member requesting such access.
Section 7.5Tax Returns; Audits, Etc.  
A.Tax Returns.  Clean Energy shall prepare and timely file (taking into account any extensions), or cause to be prepared and timely filed (taking into account any extensions), all tax returns of the Company.  Clean Energy shall use reasonable efforts to provide any such income tax returns of the Company to each Member with the necessary information, including Schedule K-1s, with respect to the operations of the Company to allow such Member to file its own tax returns.
B.Elections.  Clean shall make the following tax elections on the appropriate tax returns:
(i) to adopt the accrual method of accounting;
(ii)to elect to deduct the organizational expenses of the Company as permitted by Section 709(b) of the IRC; and
(iii)to elect to deduct and/or amortize the start-up expenditures of the Company as permitted by Section 195(b) of the IRC.  
Except to the extent expressly provided otherwise in this Agreement, Clean Energy may make any other election or tax-related decision or determination that Clean Energy may deem appropriate and in the best interests of the Company; provided, that Clean Energy shall endeavor to not make 

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any such election, decision or determination that reasonably would be expected to disproportionately and adversely affect any Member that owns more than twenty-five percent (25%) of the Percentage Interests in the Company without such Member’s written consent (not to be unreasonably withheld, conditioned or delayed).
C.Audits, Etc.  Clean shall act as the “partnership representative” of the Company, within the meaning of Section 6223 of the IRC and, in any event, shall serve in a similar role with respect to state and local tax matters (the “Partnership Representative”).  To the extent applicable, Clean shall be entitled to designate, remove and replace an individual as the “designated individual” (or analogous representative) for U.S. federal and analogous state and local income tax purposes.  The Partnership Representative is authorized to represent the Company, at the Company’s expense, in connection with all examinations of the Company’s affairs by tax authorities, including administrative and judicial proceedings, and to expend Company funds for professional services and costs associated therewith.  Any direct or indirect costs and expenses incurred by the Partnership Representative, acting in its capacity as such, shall be deemed costs and expenses of the Company, and the Company shall reimburse the Partnership Representative for such amounts.  The Partnership Representative shall not settle or compromise any material matter raised by the Internal Revenue Service without the approval of the Board of Directors and any Member that owns more than twenty-five percent (25%) of the Percentage Interests in the Company and who would be disproportionately adversely affected, such approval not to be unreasonably withheld.  The Partnership Representative shall keep the Members informed of, and the Members shall be given an opportunity to participate in a non-binding manner in, all such matters.
D.Company Tax Attributes.  Notwithstanding anything to the contrary set forth in this Agreement: (i) each Member hereby covenants to treat each item of income, gain, loss, deduction, or credit attributable to the Company in a manner consistent with the treatment of such income, gain, loss, deduction or credit on the U.S. federal income tax return of the Company; (ii) each Member hereby agrees to indemnify and hold harmless the Company from such Member’s share of any tax attributable to any adjustment to the income, gain, loss, deduction or credit of the Company pursuant to Section 6225 of the IRC; provided, however, the Company shall make a “push out” election, pursuant to Section 6226 of the IRC, with respect to any “imputed underpayment” of the Company, unless otherwise unanimously determined by the Members each of which owns more than twenty-five percent (25%) of the Percentage Interests in the Company; and (iii) neither the Board, any Director nor the Partnership Representative (in its capacity as such) will be liable to the Company or any Member for any tax attributable to the income, gain, loss, deduction or credit reported on the U.S. federal income tax return of the Company or as determined in a notice of final partnership adjustment pursuant to Section 6225.  Each Member’s covenants and indemnity obligations under this Section 7.5D shall continue after such Member transfers its interest in the Company or after a withdrawal by such Member.
E.Withholding Requirements.  The Company will at all times be entitled to make payments with respect to each Member in amounts required to discharge any obligation of the Company to withhold or make payments to any U.S. federal, state, local or foreign taxing authority (“Taxing Authority”) with respect to any distribution or allocation of income or gain to such Member and to withhold (or deduct) the same from distributions to such Member.  Any funds withheld from a distribution by reason of this Section 7.5E nonetheless shall be deemed 

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distributed to the Member in question for all purposes under this Agreement.  If the Company in good faith makes any payment to a Taxing Authority in respect of a Member hereunder that is not withheld from actual distributions to the Member, the Member shall reimburse the Company for the amount of such payment, on demand.  The amount of a Member’s reimbursement obligation under this Section 7.5E, to the extent not paid, shall be deducted from the distributions to such Member, and any amounts so deducted shall constitute a repayment of such Member’s obligation hereunder.  Each Member’s reimbursement obligation under this Section 7.5E shall continue after such Member transfers its interest in the Company or after a withdrawal by such Member.  Each Member agrees to furnish the Company with any representations and forms as shall reasonably be requested by the Company to assist it in determining the extent of, and in fulfilling, any withholding obligations it may have.  Each Member agrees to indemnify and hold harmless the Company and the other Members from and against any liability with respect to taxes, interest or penalties which may be asserted by reason of the failure to deduct and withhold tax on amounts distributable or allocable to such Member.  Any amount payable as indemnity hereunder by a Member will be paid promptly to the Company, and if not so paid, the Company will be entitled to retain any distributions due to such Member in an amount equal to the amount payable.
Section 7.6Bank Accounts.  
One or more Company bank accounts may be established, and checks issued on these accounts shall be signed by the Person authorized by the Board.  Except for changes authorized by a Supermajority Vote of the Board, the principles in this Section 7.6 shall apply.
A.Any bank account shall only be opened in a U.S. domiciled national banking association that meets a minimum credit requirement of A- by Standard and Poor’s (or equivalent) or, in the case of [*], has a credit rating of no less than BBB by Standard and Poor’s (or equivalent) and either Member may cause Company to replace [*] with a new bank, in the event of a downgrade, and the Members shall be notified prior to the opening of an account with a new bank.  All bank and investment accounts will be in Company’s name.  The Company shall not commingle its funds with the funds of any other Person.  All Subsidiary bank and investment accounts will be in the name of the relevant Subsidiary and will not have commingled funds.
B.Company funds may only be invested in:
(i)readily marketable securities issued by the United States or any
(ii)agency or instrumentality thereof and backed by the full faith and credit of the United States maturing within three months or less from the date of acquisition,
(iii)readily marketable securities issued by any state or municipality within the United States of America or any political subdivision, agency or instrumentality thereof, maturing within three months or less from the date of acquisition and rated “A” or better by any recognized rating agency,
(iv)readily marketable commercial paper rated “Prime 1” by Moody’s Investors Service, Inc. or “A 1” by Standard and Poor’s Rating Group (or comparably rated by such 

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organizations or any successors thereto if the rating system is changed or there are such successors) and maturing in not more than three months after the date of acquisition or
(v)certificates of deposit or time deposits issued by any incorporated bank organized and doing business under the laws of the United States of America which is rated at least “A” or “A2” by Standard and Poor’s Rating Group or Moody’s Investors Service, Inc., which is not in excess of federally insured amounts, and which matures within three months or less from the date of acquisition.
Section 7.7Auditors.  The Company shall prepare annual financial reports audited in accordance with US GAAP.  The Company’s independent public auditors shall be selected by Supermajority Vote of the Board.  The Company shall seek bids from three of the following  pre- qualified firms before the Board makes its initial selection of a firm, or of any replacement firm.  The pre-qualified firms are: KPMG US LLP, BDO USA LLP, EY, Plante Moran and PricewaterhouseCoopers LLP, and the list of pre-qualified firms may be amended by Supermajority Vote of the Board.  The independent auditors shall be a recognized national or international firm with at least 100 employees.  
ARTICLE 8​
CAPITAL ACCOUNTS AND TAX ALLOCATIONS
Section 8.1Members’ Capital Accounts.  
A.Adjustments.  The Company shall maintain a separate capital account for each Member (“Capital Account”) generally in accordance with Section 704(b) of the IRC and Treasury Regulations Sections 1.704-1(b) and 1.704.2.  The Capital Account of each Member shall be:
(i)increased by: (a) the aggregate amount of such Member’s cash contributions to the Company, (b) the Adjusted Asset Value of property contributed by such Member to the Company, net of liabilities secured by such property that the Company is considered to assume, or take subject to, under Section 752 of the IRC, (c) Profits and items of income and gain allocated to such Member pursuant to this ARTICLE 8 and (d) any other increases required by Treasury Regulations; and
(ii)decreased by: (a) cash distributions made to such Member from the Company, (b) the Fair Market Value of property distributed in kind to such Member as determined by the Board, net of liabilities secured by such property that such Member is deemed to assume, or take subject to, under Section 752 of the IRC, (c) Losses and items of loss or deduction allocated to such Member pursuant to this ARTICLE 8 and (d) any other decreases required by Treasury Regulations.
B.Transfers.  If a Membership Interest, or any portion of one, is transferred in accordance with this Agreement, the transferee shall succeed to the Capital Account of the transferring Member or to any portion that is transferred. 
C.Tax Laws.  The provisions of this Agreement regarding the establishment and maintenance of Capital Accounts generally are intended to comply with Treasury 

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Regulations Sections 1.704-1(b)(2)(iv) and 1.704-2 and shall be interpreted and applied to comply with such Treasury Regulations to the greatest extent possible.
Section 8.2Allocation of Profits and Losses.  Except as otherwise provided in this Agreement, the Profits and Losses (and, to the extent necessary, individual items of gross income, gain, loss, deduction or credit) of the Company for each taxable year (or portion thereof) shall be allocated among the Members in a manner such that, after giving effect to any special allocations required by Section 8.3, the Capital Account balance of each Member, immediately after making such allocation, is, as nearly as possible, equal to the distributions that would be made to such Member if the Company were dissolved, its affairs wound up and its assets sold for cash equal to their Adjusted Asset Value, all Company liabilities were satisfied (limited with respect to each non-recourse liability as defined in the Treasury Regulations under Section 704 of the IRC to the Adjusted Asset Value of the assets securing such liability), and the net assets of the Company were distributed in accordance with Section 9.2 of this Agreement immediately after making such allocation, reduced by each such Member’s share of “partnership minimum gain” and “partnership non-recourse debt minimum gain,” as determined in the Treasury Regulations under Section 704 of the IRC.  The Board of Directors may, to the extent necessary to cause the allocations contained herein to comply with the requirements of Sections 1.704-1(b) and 1.704-2 of the Treasury Regulations, make such other assumptions as are necessary or appropriate in order to effectuate the intended economic arrangement of the Members.
Section 8.3Regulatory Allocations.  Notwithstanding Section 8.2, the following special allocations shall apply under the circumstances described herein:
A.Deficit Capital Account and Nonrecourse Debt Rules.  The special rules in this Section 8.3A apply, in the following order (unless expressly stated otherwise), to take into account the possibility of Members having deficit Capital Account balances for which they are not economically responsible and the effect of the Company incurring nonrecourse debt.
(i)Minimum Gain Chargeback.  If there is a net decrease in “partnership minimum gain” (within the meaning of Treasury Regulations Section 1.704-2(d)) during any fiscal year, each Member shall be allocated items of income and gain for such year (and, if necessary, for subsequent fiscal years) equal to such Member’s share of the net decrease in partnership minimum gain within the meaning of Treasury Regulations Section 1.704-2(g)(2), except to the extent not required by Treasury Regulations Section 1.704-2(f).  To the extent that this Section 8.3A(i) is inconsistent with Treasury Regulations Section 1.704-2(f) or incomplete with respect to such regulation, the minimum gain chargeback provided for herein shall be applied and interpreted in accordance with such regulation.
(ii)Member Minimum Gain Chargeback.  If there is a net decrease in Member nonrecourse debt minimum gain attributable to any Member nonrecourse debt during any fiscal year (determined in accordance with Treasury Regulations Section 1.704-2(i)(3)) each Member who has a share of the Member nonrecourse debt minimum gain attributable to such Member nonrecourse debt (determined in accordance with Treasury Regulations Section 1.704- 2(i)(5)) shall be allocated items of income and gain for such fiscal year (and, if necessary, subsequent fiscal years) equal to such Member’s share of the net decrease in Member nonrecourse debt minimum gain, except to the extent not required by Treasury Regulations Section 1.704-

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2(i)(4).  To the extent that this Section 8.3A(ii) is inconsistent with Treasury Regulations Section 1.704-2(i) or incomplete with respect to such regulation, the Member nonrecourse debt minimum gain chargeback provided for herein shall be applied and interpreted in accordance with such regulation.
(iii)Limitation on Loss Allocations.  The Losses allocated to any Member pursuant to Section 8.2 with respect to any fiscal year shall not exceed the maximum amount of Losses that can be so allocated without causing such Member to have an Adjusted Capital Account Deficit at the end of such fiscal year.  All Losses in excess of the limitation set forth in this Section 8.3A(iii) shall be allocated as follows and in the following order of priority:
(a)first, to those Members who will not be subject to this limitation, on a pro rata basis in proportion to their respective Percentage Interests; and
(b)second, any remaining amount to the Members in proportion to their respective Percentage Interests.
(iv)Deficit Account Chargeback and Qualified Income Offset.  If any Member has an Adjusted Capital Account Deficit at the end of any fiscal year, including an Adjusted Capital Account Deficit for such Member caused or increased by an adjustment, allocation or distribution described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) or (6), such Member shall be allocated items of income and gain (consisting of a pro rata portion of each item of Company income, including gross income and gain) in an amount and manner sufficient to eliminate such Adjusted Capital Account Deficit as quickly as possible; provided, however, that an allocation pursuant to this Section 8.3A(iv) shall be made if and only to the extent that such Member would have an Adjusted Capital Account Deficit after all other allocations provided for in this Agreement have been tentatively made as if this Section 8.3A(iv) were not in this Agreement.  The foregoing is intended to be a “qualified income offset” provision as described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted and applied in all respects in accordance with such regulation.
(v)Member Nonrecourse Deductions.  Any “partner nonrecourse deductions” (as defined in Treasury Regulations Section 1.704-2(i)) for any fiscal year or other period shall be allocated to the Member who bears the economic risk of loss with respect to the partner nonrecourse debt to which such partner nonrecourse deductions are attributable in accordance with Treasury Regulations Section 1.704-2(i).
(vi)Curative Allocations.  The allocations provided for in Section 8.3A(i) through (v) above (the “Tax Regulatory Allocations”), will not be consistent with the manner in which the Members intend to divide Profits and Losses and similar items.  Accordingly, Profits, Losses and other items will be reallocated among the Members to the extent possible and without duplication (in the same fiscal year, and to the extent necessary, in subsequent fiscal years) in a manner consistent with Treasury Regulations Sections 1.704-1(b) and 1.704-2 so as to prevent the Tax Regulatory Allocations from distorting the manner in which Profits, Losses and other items are intended to be allocated among the Members pursuant to Section 8.2.

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(vii)Change in Regulations.  If the Treasury Regulations incorporating the Tax Regulatory Allocations are hereafter changed or if new Treasury Regulations are hereafter adopted, and such change or new regulations, in the opinion of independent recognized tax counsel for the Company, make it necessary to revise the Tax Regulatory Allocations or provide further special allocation rules in order to avoid a significant risk that a material portion of any allocation set forth in this ARTICLE 8 would not be respected for U.S. Federal income tax purposes, this Agreement shall be amended in such a manner as, in the opinion of such counsel, is necessary or desirable, taking into account the economic interests of the Members as a whole and all other relevant factors, to avoid or reduce significantly such risk to the extent possible without materially changing the amounts that otherwise would be distributable to any Member pursuant to this Agreement.
B.Change in Members’ Membership Interests.  If there is a change in any Member’s share of the Company’s Profits, Losses or other items during any year (whether by reason of a Disposition of all or a portion of a Member’s Membership Interest or otherwise), allocations among the Members shall be made in accordance with their interests in the Company from time to time during such year in accordance with Section 706 of the IRC, using the closing of the books method, except that depreciation, amortization and similar items shall be deemed to accrue ratably on a daily basis over the entire year during which the corresponding asset is owned by the Company for the entire year, and over the portion of a year after such asset is placed in service by the Company if such asset is placed in service during the year.
C.Nonrecourse Deductions and Nonrecourse Debt Sharing.  For purposes of this Agreement, the Members shall be deemed to be allocated nonrecourse deductions (within the meaning of Treasury Regulations Section 1.704-2) in proportion to their respective Percentage Interest.  Solely for purposes of determining a Member’s proportionate share of the “excess nonrecourse liabilities” of the Company (within the meaning of Treasury Regulations Section 1.752-3(a)(3)), the Members’ interests in Company profits are their respective Percentage Interests.
Section 8.4Tax Allocations.  
A.Generally.  Except as set forth in Section 8.4B, allocations for tax purposes of items of income, gain, loss and deduction, and credits and basis therefor, shall be made in the same manner as allocations as set forth in Section 8.2 and Section 8.3.  Allocations pursuant to this Section 8.4A are solely for purposes of U.S. federal, state, local and foreign income taxes and shall not affect, or in any way be taken into account in computing, any Member’s Capital Account or share of Profits, Losses, other items or distributions pursuant to any provision of this Agreement.
B.Special Rules.  Items of income, gain, loss, and deduction with respect to any property contributed to the Company by any Member as a Capital Contribution shall, solely for income tax purposes, be allocated among the Members in a way that takes account of any variation between the adjusted basis of such property to the Company for U.S. federal income tax purposes and its value for Capital Account purposes, in accordance with Section 704(c) of the IRC and the Treasury Regulations promulgated thereunder.  If the value of property of the Company is adjusted pursuant to the definition of Adjusted Asset Value, solely for income tax 

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purposes, subsequent allocations of income, gain, loss, and deduction with respect to the property shall take account of any variation between the adjusted basis of the asset for federal income tax purposes and such adjusted value, in accordance with Section 704(c) of the IRC and the principles set forth in Treasury Regulations Section 1.704-1(b)(2)(iv)(g).  Unless otherwise determined by a Supermajority Vote, the Board shall use the “traditional method with curative allocations” as prescribed by Treasury Regulations Section 1.704-3(c) with respect to any such variations described in this Section 8.4B.  Each item of income, gain, loss, deduction and credit and all other items governed by Section 702(a) of the IRC shall be allocated among the Members in proportion to the allocation of Profits, Losses and other items to such Members hereunder; provided, that any gain recognized from any disposition of a Company asset which is treated as ordinary income because it is attributable to the recapture of any depreciation or amortization shall be allocated among the Members in the same ratio as the prior allocations of Profits, Losses or other items that included such depreciation or amortization, but not in excess of the gain otherwise allocable to each such Member.  If, as a result of an exercise of a non-compensatory option to acquire an interest in the Company, a Capital Account reallocation is required under Treasury Regulations Section 1.704-1(b)(2)(iv)(s)(3), the Company shall make corrective allocations pursuant to Treasury Regulations Section 1.704-1(b)(4)(x).
Section 8.5Interpretation.  The provisions of this ARTICLE 8 shall be interpreted in a manner consistent with Section 704 of the IRC and the Treasury Regulations promulgated thereunder to the greatest extent possible.
ARTICLE 9​
DISTRIBUTIONS
Section 9.1Non-liquidating Distributions.  
A.Distributions for Taxes.  Subject to any restrictions imposed by third-party loans made to the Company, the Board shall make distributions from Distributable Cash Flow to the Members, pro rata in proportion to each Member’s Percentage Interest, within ninety (90) days after the end of each fiscal year of the Company (including any short fiscal year of the Company) in an aggregate amount sufficient such that the amount of distributions received by each Member pursuant to this Section 9.1A for such year and pursuant to Section 9.1B(iv) during such year equals or exceeds its estimated income tax liability for such year.  For this purpose, the estimated income tax liability of a Member for a year equals (i) the highest normal (exclusive of personal holding company, accumulated income, alternative minimum tax and other similar taxes) combined federal and state income tax rate in effect for individuals or corporations (whichever is higher) for such year multiplied by (ii) the net taxable income of the Company for such year allocated to such Member.  The calculation of net taxable income under this paragraph shall not include any built-in gain or built-in loss (if any) allocated to a Member under this Agreement under the principles of Section 704(c) of the IRC.  Such distributions are hereinafter referred to as “Tax Distributions”.  Tax Distributions, if any, shall be in cash and shall be treated as an advance of each Member’s distributions pursuant to Section 9.1B.
B.Distributable Cash Flow.  Except as otherwise provided herein, Distributable Cash Flow, after making provision for any Tax Distributions, shall be distributed 

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to the Members monthly or at such other times as determined by a unanimous consent of the Board as follows:  
(i)First, unless agreed otherwise by the Members, to repay any outstanding principal and interest of Member Guaranteed Debt on a pro-rata basis to the extent there are multiple Member Guaranteed Debt facilities outstanding;
(ii)Second, to repay principal and Member Loan Returns on any loan made by any Member to the Company pursuant to ARTICLE 3, with such repayments applied first to Member Loan Return and then to principal (in the case of multiple loans from multiple Members, repayments of such loans shall be made first with respect to any loans made by the Member pursuant to Section 3.3D and thereafter in accordance with the priorities among the Members established by the terms of such loans and this Agreement and otherwise in accordance with the priorities established by the Board); 
(iii)  Third, to BP to the extent of its accrued but unpaid Priority Return on its Class B and C Units; 
(iv) Fourth, to BP to the extent of any Class B and C Redemption Payments then due; 
(v) Thereafter, subject to Section 3.2, to the Members pro rata in proportion to their respective Percentage Interests.
C.Distribution of Sale Proceeds.  The proceeds from any sale of a Project, or of any assets of the Company shall be distributed to the Members within the next regular distribution in accordance with the priorities of Section 9.1B.
Section 9.2Liquidating Distributions.  Notwithstanding Section 9.1 of this Agreement, if the Company is liquidated under ARTICLE 11 of this Agreement or is liquidated within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Treasury Regulations, liquidating distributions shall be made as provided in Section 12.2. 
Section 9.3PIK Priority Return.  [*] 
Section 9.4Class B and C Redemption.  [*] 
Section 9.5Limits on Distributions.  Notwithstanding anything to the contrary set forth in this Agreement, no distribution under this ARTICLE 9 shall be declared or made if such distribution would violate the Act or any other applicable law.
ARTICLE 10​
LIABILITY; INDEMNIFICATION; EXCULPATION; LIMITATION OF LIABILITY
Section 10.1Liability for Debts of the Company; Limited Liability.  

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A.No Member Liability for Debts.  Except as otherwise provided in the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Member shall be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member.  This Section 10.1 does not affect the liability of a Member or a Member Affiliate under any guaranty contained in a separate instrument.
B.No Member Liability to Third Parties.  Except as otherwise expressly required by applicable law, a Member, solely in its capacity as such, shall have no liability to Third Parties in excess of the unfunded Capital Contributions required to be made by such Member under this Agreement.
Section 10.2Exculpation.  
A.General.  Subject to applicable law, no Indemnified Party (as defined herein) shall be liable, in damages or otherwise, to the Company, the Members or any of their Affiliates for any act or omission performed or omitted by any of them in good faith (including any act or omission performed or omitted by any of them in reliance upon and in accordance with the opinion or advice of experts, including of legal counsel as to matters of law, of accountants as to matters of accounting or of investment bankers or appraisers as to matters of valuation), except (i) for any act taken by such Indemnified Party purporting to bind the Company that has not been authorized pursuant to this Agreement; or (ii) in the case of any Director of the Company, for any act or omission with respect to which such Director was fraudulent or in which such Director was grossly negligent or engaged in willful misconduct.  Subject to applicable law, no Member shall be liable, in damages or otherwise, to the Company, the Members or any of their Affiliates for any act or omission performed or omitted by any of them, except (i) for any act taken by such Member purporting to bind the Company that has not been authorized pursuant to this Agreement; or (ii) any act or omission with respect to which such Member which was fraudulent or was grossly negligent or engaged in willful misconduct.
B.Restricted Duties.  The provisions of this Agreement, to the extent that they restrict the duties and liabilities of an Indemnified Party otherwise existing at law or in equity, are agreed by the Parties hereto to replace such other duties and liabilities of such Indemnified Party, to the maximum extent permitted by applicable law.
C.Other Business Interests.  Each Member and any of their respective Affiliates will continue to have other business interests and may engage in other activities in addition to those relating to the Company. Subject to Section 5.6, the Members and their respective Affiliates may engage in and possess an interest in other business ventures of every kind and description, independently or with others, and neither the Company, the Members nor their respective Affiliates shall have any rights in or to such independent ventures of the other Members, members of the Board or their respective Affiliates or the income or profits therefrom by virtue of this Agreement, even if competitive with the Company or any Project.
Section 10.3Insurance.  The Company shall procure and maintain commercial general liability insurance with the coverage, scope and limits as approved by the Board with respect to the Projects and the Company’s business.

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Section 10.4Indemnification.  
A.Indemnification by Company.  To the fullest extent permitted by applicable law (including Section 18-108 of the Act), the Company shall and does hereby agree to indemnify, defend and hold harmless and pay all judgments and claims against each Director, Member, any Affiliate thereof, their respective officers, directors, employees, shareholders, partners, managers and members and each Officer of the Company (each, an “Indemnified Party,” and each of which shall be a Third Party beneficiary of this Agreement solely for purposes of this Section 10.4), from and against any loss or damage incurred by an Indemnified Party for any act or omission taken or suffered by such Indemnified Party in good faith (including any act or omission taken or suffered by any of them in reliance upon and in accordance with the opinion or advice of experts, including of legal counsel as to matters of law, of accountants as to matters of accounting or of investment bankers or appraisers as to matters of valuation) in connection with the Project or any other aspect of the Company’s business, including costs and reasonable attorneys’ fees and any amount expended in the settlement of any claim or loss or damage, except with respect to (i) any act taken by such Indemnified Party purporting to bind the Company that has not been authorized pursuant to the terms of this Agreement; or (ii) in the case of any Director, Member or any Officer (including their respective officers, directors, employees, shareholders, partners, managers and members or any of their Affiliates), any act or omission with respect to which such Director, Member or Officer (including their respective officers, directors, employees, shareholders, partners, managers and members or any of their Affiliates) acted fraudulently or was grossly negligent or engaged in willful misconduct.
B.Expenses.  Expenses reasonably incurred by an Indemnified Party in defense or settlement of any claim that may be subject to a right of indemnification hereunder shall be advanced by the Company prior to the final disposition thereof upon receipt of an undertaking by or on behalf of such Indemnified Party to repay such amount to the extent that it shall be determined upon final adjudication after all possible appeals have been exhausted that such Indemnified Party is not entitled to be indemnified hereunder.
C.Continuation of Indemnification.  The indemnification and advancement of expenses provided by, or granted pursuant to, this ARTICLE 10 shall continue as to a Person notwithstanding that such Person has ceased to be an Indemnified Person or an Officer of the Company.
Section 10.5Limitation on Damages.  IN NO EVENT SHALL EITHER MEMBER BE LIABLE TO THE OTHER MEMBER, THE COMPANY OR ANY OTHER INDEMNIFIED PARTY FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE, EXCEPT TO THE EXTENT THAT SUCH DAMAGES ARISE OUT OF THE NEGLIGENT OR FRAUDULENT ACTS OR WILLFUL MISCONDUCT OF SUCH MEMBER OR ITS RESPECTIVE INDEMNIFIED PARTY.  Notwithstanding anything to the contrary set forth in this Agreement, no limitation or disclaimer of liability shall apply to claims or liabilities for damages resulting from the intentional breach of any material obligations of secrecy, confidentiality or non-use contained in this Agreement.

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Section 10.6Fiduciary Duties of Members and Directors.  No Member or its appointed Director has any duty to the Company or the other Member solely by reason of acting in its capacity as a Member or Director, except to refrain from (A) any act or omission that constitutes a violation of the implied contractual covenant of good faith and fair dealing under Delaware law and (B) any transaction in which the applicable Member receives a personal benefit in violation or breach of any provision of this Agreement.  Thus, without limiting the foregoing, neither a Member or Director (i) violates any obligation under this Agreement or any applicable law because the Member’s conduct furthers its interests or its Member’s interest and (ii) has no duty or obligation to consider any interest or effect on the other Member or any other Person (other than the Company).  The provisions of this Agreement expressly replace, eliminate and otherwise supplant those duties (including fiduciary duties pursuant to Section 18-1101 of the Act) that a Member might otherwise have under applicable law and the Act.  The Members agree that the provisions of this Section 10.6 are “express” and “conspicuous” for all purposes of applicable laws.
Section 10.7Related Party Contracts.  Nothing in this ARTICLE 10 shall in any way be construed to limit the liability or obligations of a Member or its Affiliates under any Related Party Contract and no Member or its Affiliates and no Indemnified Party of any Member shall be entitled to indemnification pursuant to the terms of this Agreement from the Company or the other Member in connection with any actions or omissions by such Member, Affiliate of a Member or Indemnified Party under or in connection with any Related Party Contract, as to which the terms of the Related Party Contract (including the indemnification provisions thereof) shall control.
ARTICLE 11​
TRANSFERS OF MEMBERSHIP INTERESTS
Section 11.1General Restriction on Transfer.  
A.General.  No Member may Dispose of all or part of its Membership Interests or any interest therein except for (i) any Disposition made pursuant to the terms of this Agreement of all and not less than all of its interest approved by the other Member in its sole discretion, other than in the case of a Disposition to an Affiliate of such Member or (ii) any repurchase of Membership Interests by the Company approved by the Board.
B.Acknowledgment of Reasonableness.  Each Member acknowledges its independent determination as to the reasonableness of the restrictions on Disposition and other restrictions and conditions imposed by this Agreement in light of the purposes and objectives of this Agreement and the relationship among the Members and the Company.  The provisions of this Agreement shall be specifically enforceable by the Company or any Member.  Each Member waives and releases any and all claims challenging the restrictions on Disposition set forth in this Agreement or the enforceability thereof.
C.No Registration or Recognition of Disposition Contrary to Agreement.  Without prejudice to any other recourses that may be exercised in such a case, any Disposition of the Membership Interests effected in contravention of this Agreement (whether directly or indirectly), including any Encumbrance created, incurred, assumed or suffered to exist, directly or indirectly, in contravention hereof, shall, for all intents and purposes, be null, void and without 

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effect.  The Board shall not approve or ratify any such Disposition (including, for avoidance of doubt, any such Encumbrance), and such Disposition shall not be registered in the books of the Company, any such registration being without effect.
D.Encumbrances of Membership Interests.  A Member may Encumber its Membership Interest in favor of any creditor of such Member or any of its Affiliates (or in favor of a collateral agent on behalf of one or more creditors of such Member or any of its Affiliates) as security for the indebtedness of such Member or any of its Affiliates, provided that any Disposition upon foreclosure of such Encumbrance (or Disposition in lieu of such foreclosure) must comply with the applicable requirements of Section 11.4 and Section 11.6.  Any such Encumbrance, and any Disposition upon foreclosure of such Encumbrance (or Disposition in lieu of such foreclosure) that complies with such requirements, shall be a permitted Disposition hereunder.
Section 11.2Transferees.  A Member may Dispose of all, but not less than all, of the Membership Interests owned by it to a party (“Transferee”) which is not a Prohibited Transferee, on the condition that such Member and Transferee comply with the provisions of this Section 11.2 and the other provisions of this ARTICLE 11.  If the Transferee is not an Affiliate of the Member, then unless waived by the affirmative vote of the Board, the Member must comply with the provisions of Section 11.3 (Right of First Refusal).  If the Transferee is an Affiliate of the Member, then the provisions of Section 11.3 and Section 11.5 do not apply.
Section 11.3Right of First Refusal.  A Member may Dispose of its Membership Interests to any Person (the “ROFR Transferee”) after receiving approval of the other Member, subject to the terms of this Section 11.3, on the condition that such Member and Transferee comply with the provisions of Section 11.4. The Disposition by a Member of all of its Membership Interest to an Affiliate shall not be subject to the Right of first refusal contained in this Section 11.3.
A.Notice of Proposed Transfer.  Before any Member may Dispose of any Membership Interests pursuant to this Section to any Person that is not an Affiliate of such Member, the selling Member must send to the Company and to the other Member a copy of a written offer executed by and binding upon the proposed ROFR Transferee (conditioned solely upon the waiver or non-exercise of all rights of the Company and the Members under, and due compliance with all of provisions of, this Agreement) (a “Good Faith Offer”) to purchase all, but not less than all, of the selling Member’s Membership Interests (the “Offered Interest”), together with a written notice signed by the selling Member (the “Transfer Notice”) stating (i) a bona fide intention to Dispose of such Offered Interest for the price and on the terms contained in the ROFR Transferee’s offer, (ii) the name, address and telephone number of the proposed Transferee, (iii) confirmation that the Offered Interest constitutes all of the total Membership Interest owned by the selling Member and (iv) the bona fide cash price or, in reasonable detail, other consideration, per share for which the selling Member proposes to Dispose of such Offered Interest (the “Offered Price”).  Upon the request of the Company or the other Member, the selling Member will promptly furnish information to the Company and to the other Member as may be reasonably requested to establish that the offer is bona fide and the ROFR Transferee is financially capable of carrying out the terms of the offer.  A transfer to an Affiliate which is not a Prohibited Transferee is not subject to the Right of First Refusal in this section.

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B.Right of First Refusal.  
(i)The non-selling Member shall have the right of first refusal (the “Right of First Refusal”) to purchase all, but not less than all, of the Offered Interest on the terms set forth in the Good Faith Offer by giving written notice of the exercise (“Exercise Notice”) of such right to the selling Member within thirty (30) days after the date on which the Transfer Notice is deemed to have been delivered to the Company and the non-selling Member (the “First Refusal Period”).  If the non-selling Member does not timely exercise its rights under this Section 11.3B with respect to all of the Offered Interests, then the selling Member may Dispose of all of the Offered Interest to the designated ROFR Transferee in accordance with Section 11.4.
(ii)The purchase price for the Offered Interest pursuant to exercise of a Right of First Refusal under this Section 11.3 will be the Offered Price and will be payable as set forth in Section 11.3B(ii) hereof.  If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration will be determined in good faith by a Supermajority Vote of the Board, or if no such approval can be obtained, determination of the Fair Market Value of such non-cash consideration as provided in Section 11.9 of this Agreement.
(iii)The closing of any purchase under this Section 11.3 and payment of the purchase price for the Offered Interest purchased by the purchasing Member shall occur at the principal offices of the Company, on a date reasonably acceptable to the parties within sixty (60) days after the date the Exercise Notice is given.  Payment of the total purchase price will be made, at the option of the purchasing Member, (x) by wire transfer of immediately available funds, or (y) if the terms described in the Transfer Notice included payments other than in cash, on the terms set forth in the Transfer Notice.  At the closing, the selling Member shall execute and deliver to the purchasing Member customary instruments of transfer for the Offered Interest.
C.Sale to Transferee.  If the non-selling Member has waived or failed to timely exercise its Right of First Refusal under this Section 11.3 with respect to all of the Offered Interest, then, subject to any other rights contained in this Agreement, the selling Member may Dispose of all of the Offered Interest to the ROFR Transferee, such Disposition to be made only in strict accordance with the terms stated in the Transfer Notice.  If such Transfer is not consummated within sixty (60) days after the expiration of the First Refusal Period, or within such longer period as is provided for in the Good Faith Offer, the Offered Interest shall again be subject to all of the restrictions on Disposition set forth in this Agreement.  If the Offered Interest is Disposed of to a ROFR Transferee in accordance herewith, then the selling Member and ROFR Transferee shall, as conditions precedent to such Dispositions, comply with the requirements set forth in Section 11.4, whereupon the ROFR Transferee shall be a Member of the Company.
D.Inapplicability to Encumbrance of Membership Interests.  The requirements of this Section 11.3 shall not apply to an Encumbrance by a Member of its Membership Interests in favor of any creditor of such Member or any of its Affiliates (or in favor of a collateral agent on behalf of one or more creditors of such Member or any of its Affiliates) as security for the indebtedness of such Member or any of its Affiliates or to any Disposition upon foreclosure of the Encumbrance of any Membership Interest (or Disposition in lieu of such foreclosure) that complies with the applicable requirements of Section 11.4 and Section 11.6.

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Section 11.4Transferee Bound.  Notwithstanding anything to the contrary set forth in this Agreement, no Disposition of Membership Interests by any Member, and no Disposition upon foreclosure of the Encumbrance of any Membership Interest (or Disposition in lieu of such foreclosure), shall occur or be permitted unless the Person to whom the Disposition is made, if not already a Party, undertakes to be bound, mutatis mutandis, by all of the provisions of this Agreement applicable to the Member who Disposes of the Membership Interests as if the Person to whom the Disposition is made was such Member, and complies with any reasonable terms and conditions determined by the Board (including, if applicable, those provided in Section 11.6), whereupon the Person to whom the Disposition is made shall be admitted as a Member of the Company and entitled and subject to all of the provisions hereof applicable to such Member as if the Person to whom the Disposition is made was such Member, and shall be a “Member” and a Party.  Upon any such Disposition, the Person to whom the Disposition is made shall be jointly and severally bound with the Member who Disposes of the Membership Interests, unless otherwise agreed by the Board.
Section 11.5Tag-Along Rights.  
A.General.  If a Member receives a Good Faith Offer for all of the Membership Interests held by it that such Member wishes to accept as indicated in a Transfer Notice given pursuant to Section 11.3A, and the other Member notifies the selling Member before the expiration of the First Refusal Period that such non-selling Member wishes to exercise its rights under this Section 11.5, then such non-selling Member shall have the right (the “Tag-Along Right”) to require the Third Party purchaser pursuant to the Good Faith Offer to purchase all of the non-selling Member’s Membership Interests in the Company. The Tag Along Right in this Section 11.5 shall not apply to a transfer by a Member to an Affiliate.
B.Exercise.  If a Member fails to give notice of its intent to exercise its Tag-Along Right within the First Refusal Period as provided in Section 11.5A, then such Member shall be deemed to have declined to exercise its Tag-Along Right in respect of the Good Faith Offer in question.
C.Inapplicability​ ​to Encumbrance of Membership Interests.  The requirements of this Section 11.5 shall not apply to an Encumbrance by a Member of its Membership Interests in favor of any creditor of such Member or any of its Affiliates (or in favor of a collateral agent on behalf of one or more creditors of such Member or any of its Affiliates) as security for the indebtedness of such Member or any of its Affiliates or to any Disposition upon foreclosure of the Encumbrance of any Membership Interest (or Disposition in lieu of such foreclosure) that complies with the applicable requirements of Section 11.4 and Section 11.6.
Section 11.6Additional Requirements.  In addition to the requirements set forth in Section 11.4, any Disposition of a Membership Interest shall be subject to, and made in compliance with, all of the following conditions:
A.Except in the case of an Encumbrance by a Member of its Membership Interests pursuant to Section 11.1D, or a Disposition upon foreclosure of the Encumbrance of any Membership Interest (or Disposition in lieu of such foreclosure), the selling Member shall (if requested by the Company) provide the Company with an opinion of counsel, in form and 

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substance reasonably satisfactory to the Company’s counsel, that neither the offering nor the sale of the Membership Interest (i) violates any provision of federal or state securities laws or comparable laws or causes the loss of any exemption from federal or state securities laws that may be available with respect to any of the Membership Interests, (ii) violates the Act or other state laws governing the Company, (iii) results in the termination of the Company under applicable law, or (iv) results in the treatment of the Company as a “publicly traded partnership” taxable as a corporation for federal income tax purposes;
B.The Transferee of the selling Member’s Membership Interest shall furnish to the Company (if requested by the Company) such transferee’s taxpayer identification number and any and all other information or documentation (including any applicable IRS Form(s) permitted by applicable law) necessary or appropriate for the Company to file all required federal and state tax returns;
C.The Transferee of the selling Member’s Membership Interest shall execute and deliver to the Company an agreement, in form and substance reasonably satisfactory to the Company, by which the transferee agrees to be bound by all of the terms and provisions of this Agreement including, with respect to any subsequent transfer of Membership Interests by such transferee, the terms and conditions of this ARTICLE 11;
D.The selling Member or the Transferee shall reimburse the Company (if requested by the Company) for all reasonable costs and expenses the Company incurs in connection with (i) the transfer of the Membership Interest or (ii) in assuring compliance with the terms and provisions of this ARTICLE 11 in connection with the transfer;
E.No Disposition of a Membership Interest pursuant to the terms of this Agreement (whether in connection with a buyout, purchase option, forced sale or otherwise) shall terminate or otherwise adversely affect any Member’s rights, privileges or obligations under the terms of any Related Party Contract;
F.If either Member acquires the entire Membership Interest of the other Member pursuant to the terms hereof, the acquiring Member and the transferring Member shall use commercially reasonable efforts to have any guarantees of the transferring Member or such Member’s Affiliate relating to a Project terminated and released in their entirety (including by issuing substitute guarantees therefor); and
G.If any guarantee of the transferring Member or such Member’s Affiliate relating to a Project is not terminated and released in its entirety, then the acquiring Member shall, from the date of the acquisition of the Membership Interest, irrevocably and unconditionally indemnify and hold the transferring Member and its Affiliates, officers, directors, employees and agents harmless from and against any and all losses and damages relating to, resulting from or arising under any such guarantee; provided, that such indemnity shall only apply to losses and damages relating to, resulting from or arising out of actions or events occurring after the date of such acquisition of Membership Interest.

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Section 11.7Transferee’s Rights.  
A.Rights Limited.  Except for a transfer made in compliance with the provisions of this Section 11.7, notwithstanding the voluntary or involuntary sale, transfer, assignment, encumbrance, pledge, conveyance, gift or other disposition of part or all of any Membership Interest to any transferee, whether or not in compliance with the other provisions of this ARTICLE 11, (i) under no circumstances shall any actual or purported purchaser, assignee, transferee, successor, creditor or other party be admitted as a substitute Member, (ii) any transferee acquiring a Membership Interest in compliance with this ARTICLE 11 shall only be entitled to the allocations and distributions with respect to such Membership Interest that the transferring Member would be entitled to receive with respect to such Membership Interest under this Agreement, and (iii) such Transferee shall have no other rights (including any rights to vote or participate in the affairs of the Company), unless in any such case the Transferee is admitted as a Member in accordance with Section 11.7B.
B.Admission as Member.  A Transferee shall be admitted to the Company as a substitute Member only on satisfaction of the following terms and conditions:
(i)In the case of a Disposition to an Affiliate or a ROFR Transferee, upon compliance by such Permitted Transferee or ROFR Transferee with Section 11.4 hereof;
(ii)In the case of a Disposition of a Membership Interest other than to an Affiliate or a ROFR Transferee,
(a)except in the case of any transferee of a Membership Interest upon a foreclosure of the Encumbrance of such Membership Interest (or Disposition in lieu of such foreclosure) that complies with the applicable requirements of Section 11.4 and Section 11.6, the Transferee’s admission as a Member is approved by a Supermajority Vote of the Board;
(b)the Transferee executes an amendment to this Agreement agreeing to be bound by all the terms and provisions of this Agreement; and
(c)the Transferee reimburses the Company for all reasonable costs and expenses the Company incurred in connection with the Transferee’s admission to the Company; and
(iii)In the case of a Disposition to any Transferee, the Transferee complies with the other provisions of this Agreement applicable to the Transferee’s purchase or acquisition of such Membership Interest, including Section 11.6 of this Agreement.
Section 11.8Involuntary Transfer.  
A.Forced Sale.  If any Member suffers an Involuntary Transfer, then the non-defaulting Member shall have the right and option to purchase all but not less than all of the Membership Interests of the defaulting Member pursuant to this Section 11.8.  In order to exercise such option to purchase, the non-defaulting Member shall provide written notice to the defaulting Member within ninety (90) days after the non-defaulting Member receives notice of such Involuntary Transfer.

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B.Purchase Price; Closing.  If a Member exercises its purchase option under Section 11.8A, the purchase price shall be equal to the Fair Market Value of the Membership Interest of the defaulting Member as of the last day of the month in which the material default or Involuntary Transfer took place.  The purchase price shall be payable by the delivery to the defaulting Member (or, if different, to the seller of the defaulting Member’s Membership Interest) of cash in the amount of the purchase price.  The closing on the sale of the Membership Interests pursuant to this Section 11.8 shall take place at the reasonable convenience of the Parties, but in no event, less than thirty (30) days nor more than sixty (60) days following the latter of (i) the exercise of the option to purchase the Membership Interests of the defaulting Member by the non-defaulting Member or (ii) the establishment of the purchase price for such Membership Interests, as provided herein.
Section 11.9Fair Market Value of the Membership Interest.  For the purposes of this Agreement, the Fair Market Value of the Membership Interests of a Member shall equal: the (x) sum of (i) B FMV, (ii) C FMV, and (iii) the Fair Market Value of the Company, less Total B FMV and Total C FMV, multiplied by (y) the Percentage Interest of such Member.  In reaching this value, there shall not be any minority discount or any discount as a result of a Member owning a fifty percent (50%) or less Membership Interest.  If the Members cannot agree on the Fair Market Value of the Company within thirty (30) days following the exercise of the option to purchase, then the Members shall appoint a mutually agreeable appraiser to establish the Fair Market Value.  The appraiser shall submit a written determination of the Fair Market Value of the Company within thirty (30) days after the appraiser’s appointment.  The appraisal shall be final and binding on the Parties and enforceable by the issuance of appropriate orders by a court of competent jurisdiction.  If the Parties cannot agree on a mutually agreeable appraiser within the allotted time period, then within fifteen (15) days thereafter, each Party shall have the option to designate one qualified independent appraiser by written notice to the other Party.  Each of the appraisers shall submit, within thirty (30) days after both of them have been designated, a written appraisal of the Fair Market Value of the Company.  If the appraisals differ by ten (10%) percent or less (using the lower appraisal as the base to compute the percentage), the Fair Market Value shall be the average of the two appraisals.  If the appraisals differ by more than ten (10%) percent, the two appraisers shall select a third qualified appraiser.  The third appraiser so chosen shall then within thirty (30) days, select one of the first two appraisals as the Fair Market Value of the Company as a whole.  Such appraisal shall be final and binding on the Parties and enforceable by the issuance of appropriate orders by a court of competent jurisdiction.  Each Member shall pay the costs and expenses of their appraiser, and the Members shall each pay fifty percent (50%) of the costs and expenses of the third appraiser.  If one Member fails, refuses or otherwise neglects to appoint an appraiser, the other Member’s appraiser shall determine the Fair Market Value of the Company, and this determination shall be final and binding on the Members and enforceable by the issuance of appropriate orders by a court of competent jurisdiction.
[*]
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ARTICLE 12​
DISSOLUTION AND WINDING UP
Section 12.1Events of Dissolution.  The Company shall be dissolved upon the happening of any of the following events:
A.upon the approval of all the Members;
B.the entry of a judgment, order or decree of a court of competent jurisdiction adjudicating the Company to be a bankrupt, and the expiration without appeal of the period, if any, allowed by applicable law in which to appeal therefrom; or
C.the entry of a decree of judicial dissolution under the Act.
The Parties to this Agreement acknowledge and agree that (i) neither Member has any fiduciary duty to any other Member of the Company with respect to matters relating to the dissolution of the Company other than as provided in Section 10.6, and (ii), to the extent that any court finds that a Member has such a fiduciary duty, the election of a Member to dissolve the Company pursuant to this Section 12.1 does not constitute a breach of such fiduciary duty, and all Parties knowingly, voluntarily and irrevocably waive any such claims for any alleged breach of fiduciary duty.  The inclusion of this provision is not to be interpreted that any such claims exist or have any validity and is only to clarify that, in the event that a court determines that such claims exist, such claims are knowingly, voluntarily and irrevocably waived by all Parties.
Section 12.2Method of Liquidation.  Upon the happening of any event specified in Section 12.1, with respect to which the Company is not continued and its business and affairs are discontinued, the Board or, if there is no remaining Director, a Person selected by majority vote of the Members, shall immediately commence to wind up the Company’s affairs and shall liquidate the assets of the Company as promptly as possible, unless the Board, or other liquidator, as the case may be, shall determine that an immediate sale of Company assets would cause undue loss to the Company, in which event (A) the liquidation may be deferred for a reasonable time, and/or (B) all or part of the Company assets may be distributed in kind with written approval of all Members.  The Members shall continue to share in distributions and allocations of Profits and Losses during the period of liquidation in the same proportions as before dissolution.  During the liquidation period, the Board shall have the right to continue to operate and otherwise deal with Company property to the same extent the Board had such right before the dissolution of the Company.  The proceeds from liquidation of the Company, including repayment of any debts of Members to the Company, shall be applied in the order of priority as follows:
(i)To repayment of creditors of the Company, including any Member who is a creditor (including any loans made by any Member pursuant to ARTICLE 3 and Priority Returns) to the extent otherwise permitted by law, in satisfaction of liabilities of the Company (whether by payment or the making of reasonable provision for payment thereof) other than (a) liabilities for which reasonable provision for payment has been made and (b) liabilities for distributions or payments, if any, to Members and former Members pursuant to the Act; then
(ii)To the extent not paid under subparagraph (i) above, to the repayment of any other unpaid Company debts, loans or obligations to any Member (including any loans made 

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by any Member pursuant to any provisions of ARTICLE 3 and any Member Loan Return relating thereto; provided, however, that any payments to any Member with respect to any loan from such Member shall be made in accordance with ARTICLE 3; and then
(iii)To the holders of Class B and Class C Units, in proportion to the sum of (i) the accrued and unpaid Priority Return corresponding to such Class B and Class C Units and (ii) notional value of the outstanding Class B and C Units valued at the Class B/C Redemption Price;
(iv)To the Members, either in cash or in kind, as determined by the Board of Directors, in proportion to their respective Percentage Interests.
ARTICLE 13​
OTHER MANAGEMENT ARRANGEMENTS AND DUTIES
Section 13.1Management Dispute.  If the Board of Directors is deadlocked, then either Member shall send written notice of the dispute (a “Deadlock Notice”) to the other Member describing the dispute and specifying which category of dispute is involved.  If a resolution to the dispute cannot be resolved for a period of ninety (90) consecutive days, then the dispute shall be submitted to the dispute resolution procedures set forth in Section 13.2.
Section 13.2Deadlock Resolution.  Without limiting the availability of the Parties to obtain equitable relief from courts of competent jurisdiction in accordance with this Agreement, any deadlock of the Members or the Board (each a “Deadlock”) shall be resolved as set forth in this Section 13.2.   After a Member has given a Deadlock Notice, representatives of each Member shall promptly meet to attempt to resolve such matter.  If there is no such resolution within thirty (30) days of the receipt of the Deadlock Notice, then a senior representative of each of the Members shall meet personally at a mutually agreeable location within fifteen (15) business days of the expiration of such 15-day period in an attempt to resolve the Deadlock.  During the continuation of any Deadlock, the Company shall continue to operate in a manner consistent with its prior practices and this Agreement.  Until such time as such Deadlock is resolved, no Capital Calls shall be approved by the Board and all prospective development of the Projects shall cease; provided, however, in the event the Company has outstanding contractual commitments with respect to the development activities of a Project, the Company may continue to perform under such commitments until their satisfaction.  If the Deadlock is with respect to the approval of the Company’s Annual Budget, the Company shall operate its business in accordance with the previous year’s Annual Budget.  If the representative of the Members or their respective President or Chief Executive Officers are unable to reach agreement on resolution of Deadlock within one hundred eighty (180) days from the delivery of the initial Deadlock Notice, a written request for mediation may be made by either Member.  The mediation shall take place in Wilmington, Delaware or such other location as the Members may agree.  The mediation shall be conducted before a single mediator to be agreed upon by the Members.  If they cannot agree, each Member shall select a mediator and such mediators shall together unanimously select a neutral mediator who shall conduct the mediation.  Each Member shall bear the expenses of its mediator and all of the Members shall equally bear the fees and expenses of the final mediator.  The decision of the mediator shall not be binding upon the Members.  If the Members are not in agreement after 

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completion of mediation, either Member may bring the matter to final and binding arbitration as provided in Section 14.3 of this Agreement.
ARTICLE 14​
MISCELLANEOUS PROVISIONS
Section 14.1Investment and Securities Matters.  Each of the Members represent, acknowledge, and agree, as of the date of this Agreement and as of the date on which any of them may acquire additional Membership Interests in the Company under this Agreement, the following:
A.Transferability.  The Membership Interests in the Company are not and will not be registered under either the Securities Act or any applicable state securities law and, therefore, may not be resold or transferred unless they are registered or unless an exemption from registration is available.
B.No Registration or Exemption.  The Company has not agreed to register any of the Membership Interests in the Company for distribution in accordance with the provisions of the Securities Act or any applicable state securities laws, and the Company has not agreed to comply with any exemption from registration under the Securities Act or any applicable state securities laws for the sale or transfer of such Membership Interests.  Consequently, the Members may be required to hold the Membership Interests indefinitely, unless and until registered under the Securities Act and any applicable state securities laws or unless and until an exemption from registration is available, in which case the Members may still be limited as to the amount of Membership Interests that may be sold or transferred.  In any case, the Members each agree that they will not sell, assign, pledge, hypothecate, donate, or otherwise transfer any Membership interest in the Company unless such a transaction complies with this Agreement, and, in no case, whether or not for consideration, unless and until such Membership Interest is registered or determined to be exempt from registration on the basis of a favorable opinion of the Company’s counsel or submission to the Company of such other evidence as may be satisfactory to the Company’s counsel that any such transfer will not violate the Securities Act or any applicable state securities laws.
C.Disclosure.  Each Member has had full and complete access to any and all of the information pertaining to the Company and the Member’s investment in the Membership Interests that the Member considers appropriate.  Each Member has received and reviewed to his or her satisfaction, and is familiar with, the contents of all the agreements, reports, financial statements, and other materials relating to the Company and the Membership Interests that the Member considers appropriate.
D.Information.  Each Member has had an opportunity to ask questions and receive answers concerning the Member’s investment in the Membership Interests and to obtain any additional information that the Company possesses or can obtain without unreasonable effort and expense that might, in the Member’s judgment, be necessary to verify any information that has been provided to the Member.
E.Restrictions.  There are restrictions on the transferability of the Membership Interests in the Company, there is no established public market for the Membership Interests, 

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and, accordingly, it might not be possible to liquidate the Membership Interests readily, or at all, in case of an emergency or otherwise.
F.Risk.  An investment in the Membership Interests in the Company involves a certain degree of risk, and each Member has taken full cognizance of and understands all of the risks associated with the investment.  The investment is highly speculative, and no assurance has or can be given with respect to the investment’s suitability or performance.
G.Knowledge.  Each Member has the knowledge and experience in financial and business matters to be capable of evaluating the merits and risks associated with the investment in the Membership Interests in the Company or, if not, has obtained the advice of an attorney, certified public accountant, or registered investment advisor with respect to the investment.
H.No Liquidity.  Each Member has adequate means of providing for his or her own current needs and possible personal contingencies, has no need for liquidity in his or her investment in the Membership Interests, and is able to bear the economic risks of the investment for an indefinite period.
I.Own Account.  Each Member has acquired the Membership Interests in the Company for the Member’s own account and for investment purposes only.  No Member has acquired Membership Interests in the Company for the account of others or with a view to distributing the Membership interests.
J.No Public Finding.  No federal or state agency has made any finding or determination as to the fairness of the Company’s Membership Interests for public investment nor any recommendation or endorsement of the Company’s Membership Interests.
K.No General Offer.  The Membership Interests in the Company have not been offered or sold through general advertising or general solicitation.
L.No Commission.  No commission has been paid or given directly or indirectly for soliciting any Member’s investment in the Company’s Membership Interests.
M.       Accredited Investor. Such Member is an “accredited investor” within the meaning of SEC Rule 501 of Regulation D, as presently in effect.
Section 14.2Amendments.  The Members may amend this Agreement at any time.  Any amendment shall be effective only if approved by the unanimous vote of the Members as provided in this Agreement.
Section 14.3Arbitration.  The Members desire to settle without litigation all future disputes which may arise between the Members relating to or arising out of this Agreement.  Accordingly, the Members agree to engage in good faith negotiations to resolve any such disputes, within thirty (30) days, and, if applicable, to follow the procedures set forth in ARTICLE 12 with respect to resolution of a Deadlock.  If the Members are unable to resolve any such disputes, then the claim, controversy or dispute shall be settled by mandatory and binding arbitration in New York, New York, in accordance with the Commercial Arbitration Rules of the International 

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Chamber of Commerce , and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof, pursuant to applicable law.  Notwithstanding the foregoing, a Party may file a claim for equitable or injunctive relief in the appropriate court, pursuant to Section 14.4.
The prevailing Party in any arbitration proceeding or in any court proceeding shall have the right to recover from the other Party all costs and expenses, including reasonable attorneys’ fees and expenses of counsel, incurred by the prevailing Party in such arbitration proceeding or litigation.  The arbitrator shall, and hereby is directed to, award such costs and expenses to the prevailing Party.  Nothing in this second paragraph of this Section 14.3 shall be interpreted to suggest that arbitration is not mandatory, except under the circumstances set forth in the last sentence of the immediately preceding paragraph of this Section 14.3.
Section 14.4Consent to Jurisdiction.  The Members agree and consent to the jurisdiction of the federal and state courts of the State of Delaware, with venue in Wilmington as the exclusive forums to resolve any disputes arising out of or relating to this Agreement as they relate to proceedings in aid of arbitration proceedings and the enforcement of any award.  Both Parties further acknowledge and agree that service may be effected upon them by serving the complaint or other legal document, together with the summons, by certified mail, return receipt requested, to the address indicated in this Agreement.  If any Member institutes a lawsuit in any jurisdiction other than in accordance with this Section 14.4, the other Member shall have the right to terminate such lawsuit and remove the same to the above courts and the Member initially filing the lawsuit shall be responsible for all costs and expenses, including reasonable attorney fees, incurred by the Member removing the case to the forum agreed upon in this Agreement.
Section 14.5Waiver of Jury Trial.  Each Party, after having had an opportunity to consult with their attorney, knowingly, voluntarily and intentionally (and without duress or coercion) waives any right any of them may have to a trial by jury in any litigation based upon or arising out of this Agreement or based on any course of conduct, dealing, statements (whether oral or written) or actions of any Party relating to this Agreement.  No Party shall seek to consolidate, by counterclaim or otherwise, any such action in which a jury trial has been waived with any other action in which a jury trial cannot be or has not been waived.  These provisions shall not be deemed to have been modified in any respect or relinquished by any Party except by a written instrument executed by all of the Parties.
Section 14.6Waiver of Breach.  The waiver of breach of any provision of this Agreement shall not operate as or be construed as a waiver of any subsequent breach.  Each and every right, remedy, and power hereby granted to any Party or allowed it by law shall be cumulative and not exclusive of any other.
Section 14.7Severability.  If any term hereof shall be deemed to be invalid, illegal or unenforceable, such provision shall be deemed amended to conform to applicable laws so as to be valid, legal and enforceable or, if it cannot be so amended, it shall be deleted from this Agreement and the balance of this Agreement shall continue in full force and effect.
Section 14.8Notices.  All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given or sent upon the date of 

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such service if (A) served personally upon the Party for whom intended, (B) sent by Federal Express or other nationally recognized over-night carrier or (C) by e-mail:
If to Clean:
With a copy to (which shall not constitute Notice):
Clean Energy
4675 MacArthur Court, Suite 800
Newport Beach, CA 92660
Attn: SVP Renewable Fuels
Email: nate.jensen@cleanenergyfuels.com
If to BP:
BP Products North America Inc.
30 South Wacker Drive
Chicago, IL 60606
Attn: Sr.  Vice President US Biogas
Email: sean.reavis@bp.com
With a copy to (which shall not constitute Notice):
BP Products North America Inc.
30 South Wacker Drive
Chicago, IL 60606
Attn: GOA Legal Notice
Email: GOALegalNotice@bp.com
or to any other addresses designated in writing by the receiving Party to the other Parties in accordance with the provisions of this Agreement.
Any notice duly given or sent as provided above shall be deemed received (i) on the date such notice was duly given if served personally upon the Party for whom intended; (ii) three (3) days after the date such notice was receipted for, if mailed by registered or certified mail, as provided herein; (iii) the next business day if sent by Federal Express or other nationally recognized over-night carrier; (iv) on the date of the confirmation receipt for any notice that was sent by facsimile; or (v) the date on which the e-mail which contains such notice was received.
Section 14.9Entire Agreement.  This Agreement constitutes the entire agreement among the Parties with respect to the subject matter of this Agreement.  This Agreement supersedes and terminates any and all other previous or contemporaneous communications, representations, understandings, agreements, negotiations, and discussions, whether oral or written, between the Parties with respect to the subject matter.  The Parties acknowledge and agree that there are no written or oral agreements, understandings, or representations directly or indirectly related to this Agreement or the subject matter that are not expressly set forth herein.

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Section 14.10Assignability.  The rights and obligations of the Parties under this Agreement may not be assigned or delegated except for the assignment of a Membership Interest in compliance with and subject to the terms and conditions of ARTICLE 11.
Section 14.11Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware (without regard to choice of law provisions) notwithstanding that any Party is or may later become domiciled in a different state or jurisdiction.
Section 14.12Counterparts.  This Agreement may be executed in duplicate original counterparts, and all copies of this Agreement so executed shall be deemed to be one Agreement.
Section 14.13No Third Party Rights Created Hereby.  Except as expressly set forth herein, the provisions of this Agreement are solely for the purpose of defining the interests and rights of the Board and Members, inter se; no other Person, firm or entity (i.e., a Party who is not a signatory hereto or a permitted successor to such signatory hereto) shall have any right, power, title or interest by way of subrogation or otherwise, in and to the rights, powers, titles and provisions of this Agreement.
Section 14.14Additional Action and Instruments.  Each Member hereby agrees to do such further acts and things and to execute any and all instruments necessary or desirable and as reasonably required in the future to carry out the full intent and purpose of this Agreement.
Section 14.15No Drafter.  The parties have participated jointly in the negotiation and drafting of this Agreement.  If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.
[Signature Page Follows.]
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.
MEMBERS:

CLEAN ENERGY

By: /s/ J. Nathan Jensen
Name:  J. Nathan Jensen
Title:  Senior Vice President, Co-Head Renewable
Fuels & Chief Legal Officer
BP PRODUCTS NORTH AMERICA INC.

By: /s/ Sean Reavis
Name: Sean Reavis
Title: Vice President
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[Signature page to LLC Agreement]

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EXHIBIT A

CAPITAL CONTRIBUTIONS AND MEMBERSHIP INTERESTS
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	Member
	Initial Capital Contribution *
	Membership Interests
	Percentage Interests

	BP
	$50,000,000
	30,000,000 Class A
20,000,000 Class B
	50%

	Clean
	$30,000,000
	30,000,000 Class A
	50%

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		* 
	The form of funding of the initial Capital Contribution by each Member is set forth in the [*], the [*] and Section 3.2. 

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EXHIBIT B

A&A SERVICES
		1.	Clean shall perform the following services for the Company, in exchange for a base management fee of [*] per annum, payable in monthly installments, plus a per-project management fee of [*] per annum for each project contributed to the Company. Financial Management

a.Set up and maintain a Sharepoint site to house the shared data outlined below.
b.Maintain separate books of account for the Company and Subsidiaries in accordance with Section 7.2 of the Limited Liability Company Agreement.
c.Prepare the annual budget for the Company and Subsidiaries for approval by the Board of Directors, in accordance with Section 7.3 of the Limited Liability Company Agreement.
d.Provide the Required Reports, Additional Reports and Member Information Requests to Members in in accordance with Section 7.4 of the Limited Liability Company Agreement.
e.Serve as tax representative for the Company and Subsidiaries in accordance with Section 7.5 and Article 8 of the Limited Liability Company Agreement.
f.Establish and maintain bank accounts for the Company and Subsidiaries. Oversee disbursement of funds for Board approved investments, dividends, and reimbursements, in accordance with Section 7.6 of the Limited Liability Company Agreement. On behalf of the Company, review, approve and pay invoices related to the Company. Prepare Company invoices, collect and deposit Company receivables. Subsidiary invoices and receivables are handled pursuant to the relevant Subsidiary O&A Agreements or LLC agreements.
g.Recommend an independent auditor to the Board and oversee the preparation of an annual audit, in accordance with Section 7.7 of the Limited Liability Company Agreement.
h.Maintain Capital Accounts in accordance Article 8 of the Limited Liability Company Agreement
i.If so directed by Board, coordinate the negotiation and execution of Third Party debt facility at the Company or Subsidiaries. Facilitate timely payments in accordance with such negotiated terms.
j.Provide appropriate financial internal control support for the Company and Subsidiaries. 
k.Prepare and retain records for all administrative tasks related to necessary Board approvals. Included but not limited to the following:

	i.		Prepare numbers and obtain approval from the Members for Capital Calls in accordance with Section 3.3C

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	ii.		Prepare numbers and obtain approval from the Members for Distributions in accordance with Article 9

	iii.		Prepare Board Meeting materials and send to Members three (3) business days in advance of the meeting

	iv.		Document Board Meeting minutes

	v.		Retain a record of all Board approvals

	vi.		Provide any other necessary administrative support

l.Oversee regulatory reporting which the Company is required to perform to the extent not covered in the Subsidiary agreements
m.Prepare quarterly pro-forma forecast for financial statements
n.Maintain and renew permits and licenses (as applicable) held by the Company. All Subsidiary permits and licenses will be addressed in the relevant Subsidiary agreements

		2.	Asset Management

a.Administer certain operating and administration agreements between the Company, Subsidiaries and Facility Operator as outlined in the O&A Agreement. 
b.Administer certain EPC Agreements between the Company, Subsidiaries, and the EPC Contractor.
c.Direct Facility Operators to maintain operational records, required permits and compliance with applicable laws and industry standards including applicable health, safety, security and environmental (“HSSE”) regulations, in accordance with Section 5.7 of the Limited Liability Company Agreement. 
d.Facilitate the Required Reports, Additional Reports and Member Information Requests to Members in in accordance with Section 7.4 of the Limited Liability Company Agreement, and in the form attached as Exhibit G.

		3.	Management Fee 

a.In consideration for the management of the day-to-day operations of the Company, the provision of the services in this Exhibit, the Company will pay Clean a Management Fee, as defined in Section 6.5. This Management Fee will be reviewed annually the Board.
b.Clean Energy will also be eligible for the reimbursement of reasonable third-party expenses incurred in the performance of its duties under this Agreement.

		4.	  Service Standards

Clean shall provide all services in accordance with Applicable Law and good industry practice.  Clean shall enter into agreements with and pay its contractors and service providers, including Affiliates, on an arms length basis.  Clean as Operator shall comply with the Anti-Corruption Laws, the Anti-Corruption Obligation, the principles of the BP Code, and the other requirements of Sections 5.6 and 5.7 of the Limited Liability Company Agreement.  A breach of the Anti-Corruption Laws, the Anti-Corruption Obligation, or in any material respect of the 

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principles of the BP Code or the other requirements of Section 5.6 or 5.7 is in each case deemed to be a material breach for the purpose of Section 5 below.
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		5.	Material Breach

a.If Clean is in material breach for a period of more than ninety (90) days after notice of Such breach has been given by BP or the Company and is not making diligent efforts to cure such material breach, then the Administrator shall cease to any fee in excess of reimbursement of expenses until such material breach has been cured, or until it commences diligent efforts to cure. If such material breach has not been cured within one hundred and eighty (180) days of the original notice, or two hundred and seventy (270) days if the Administrator is making diligent efforts to cure the material breach, then the Company shall be entitled to terminate this Agreement. Any agreement to lengthen the Cure periods in this section with requires a Supermajority Vote of the Board of the Company.

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EXHIBIT C

[RESERVED.]
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EXHIBIT D

BP CODE OF CONDUCT
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[*]
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EXHIBIT E

[RESERVED.]
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EXHIBIT F
[*]
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EXHIBIT G
[*]

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