Document:

Share Purchase Agreement

 EXHIBIT 10.1 

SHARE PURCHASE AGREEMENT 

BY AND AMONG 

RESEARCH IN MOTION CORPORATION 

2236008 ONTARIO INC. 

RESEARCH IN MOTION LIMITED 

AND 

HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED 

HARMAN HOLDING GMBH & CO. KG 

DATED APRIL 9, 2010 

 TABLE OF CONTENTS 

 

					
	ARTICLE I	  	DEFINITIONS	  	2
			
	ARTICLE II	  	PURCHASE AND SALE	  	17
			
	ARTICLE III	  	REPRESENTATIONS AND WARRANTIES OF THE SELLERS	  	20
			
	ARTICLE IV	  	REPRESENTATIONS AND WARRANTIES OF THE BUYERS AND THE GUARANTOR	  	46
			
	ARTICLE V	  	COVENANTS	  	48
			
	ARTICLE VI	  	TAX MATTERS	  	63
			
	ARTICLE VII	  	CONDITIONS TO CLOSING	  	71
			
	ARTICLE VIII	  	TERMINATION	  	73
			
	ARTICLE IX	  	INDEMNIFICATION	  	75
			
	ARTICLE X	  	MISCELLANEOUS	  	81

 SHARE PURCHASE AGREEMENT 

THIS SHARE PURCHASE AGREEMENT is dated April 9, 2010, by and among 2236008 Ontario Inc., a corporation existing under the laws of Ontario
(“Buyer 1”), Research In Motion Corporation, a corporation existing under the laws of Delaware (“Buyer 2”, and together with Buyer 1, each a “Buyer”, and collectively, the
“Buyers”), Research In Motion Limited, a corporation existing under the laws of Ontario (the “Guarantor”), Harman International Industries, Incorporated, a corporation existing under the laws of Delaware
(“Parent”) and Harman Holding GmbH & Co. KG, a limited partnership existing under the laws of Germany (“GmbH”, and together with Parent, each a “Seller”, and collectively, the
“Sellers”). 
 W I T N E S S E T H : 

WHEREAS, the Buyers wish to acquire QNX Software Systems Co., an unlimited liability company existing under the laws of Nova Scotia
(“QSSC”), QNX Software Systems, Inc., a corporation existing under the laws of California (“QSSI”) and QNX Software Systems (Wavemakers), Inc., a limited company existing under the laws of Nova Scotia
(“Wavemakers”, and together with QSSC and QSSI, each a “Company” and, collectively, the “Companies”); 

WHEREAS, Parent owns (i) 10,000 common shares of QSSI (the “QSSI Shares”), such QSSI Shares being all of the issued and
outstanding shares of QSSI, and (ii) 100 common shares of Wavemakers (the “Wavemaker Shares”), such Wavemaker Shares being all of the issued and outstanding shares of Wavemakers; 

WHEREAS, GmbH owns 100,100 common shares of QSSC (the “QSSC Shares”, and together with the QSSI Shares and the Wavemaker Shares,
each a “Share”, and collectively, the “Shares”), such QSSC Shares being all of the issued and outstanding shares of QSSC; 

WHEREAS, the Buyers desire to purchase from the Sellers and the Sellers desire to sell to the Buyers all of the Shares; 

WHEREAS, the Buyers are wholly-owned subsidiaries of the Guarantor and the Guarantor wishes to guarantee the performance by the Buyers of their
obligations pursuant to this Agreement; and 
 WHEREAS, it is the intention of the parties that, upon consummation of the purchase and
sale of the Shares pursuant to this Agreement, the Buyers shall own all of the outstanding shares of the Companies. 

 NOW, THEREFORE, in consideration of the foregoing, the representations, warranties, covenants and
agreements herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as follows: 

ARTICLE I 

DEFINITIONS 
  

	1.1	Definitions. Capitalized terms used in this Agreement shall have the meanings specified below. 

 

	 	(a)	“Adjustment Amount” means the absolute amount of the difference between (i) the Estimated Working Capital Amount and (ii) the Closing Date
Working Capital Amount. 

  

	 	(b)	“Affiliate” means, with respect to any Person, any other Person who directly or indirectly controls, is controlled by, or is under direct or indirect
common control with, such Person. A Person shall be deemed to “control” another Person if such Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such other Person,
whether through the ownership of voting securities, by contract or otherwise; and the term “controlled” shall have a similar meaning. 

  

	 	(c)	“Applicable Laws” means, in respect of any Person, property, transaction, event or course of conduct, any applicable domestic or foreign law, including
any applicable statute, regulation, by-law, ordinance or treaty, and any applicable guideline, protocol, code, official directive, rule, standard, requirement, policy, order, judgment, injunction and/or decree of a Governmental Authority whether or
not having the force of law. 

  

	 	(d)	“Applicable Privacy Laws” means any and all Applicable Laws relating to privacy and the collection, use, storage, retention, disclosure, and transfer
of Personal Information in all applicable jurisdictions worldwide. 

  

	 	(e)	“Balance Sheet” means the unaudited consolidated balance sheet of the QNX Entities as at March 31, 2010 prepared in accordance with GAAP.

  

	 	(f)	“Benefit Arrangement” means each employment, severance or other similar contract, arrangement or policy (written or oral) and each plan or arrangement
(written or oral) providing for severance benefits, insurance coverage (including any self-insured arrangements), workers’ compensation, disability benefits, supplemental unemployment benefits, vacation benefits, co-sponsor savings programs,
retirement benefits or for retention arrangements, deferred compensation, profit-sharing, bonuses, stock options, stock appreciation rights or other forms of incentive compensation or post-retirement insurance, compensation or benefits.

  

	 	(g)	“Business” means the business of the QNX Entities, including the development and worldwide Commercialization of the Company IP, as currently conducted
by the QNX Entities. 

  

 - 2 - 

	 	(h)	“Business Day” means any day that is not a Saturday, a Sunday or other day on which commercial banks in the City of New York, New York and the City of
Toronto, Ontario are required or authorized by Law to be closed. 

  

	 	(i)	“Claim” means a claim for indemnification by an Indemnified Person pursuant to Section 9.2 or 9.3. 

 

	 	(j)	“Closing Date” means the date of the Closing. 

  

	 	(k)	“Closing Date Balance Sheet” means the unaudited consolidated balance sheet of the QNX Entities as of the Closing Date, prepared in accordance with
GAAP and in a manner entirely consistent with the manner of preparation of the Balance Sheet, except as modified as shown on Schedule 1.1(k) of the Disclosure Letter. 

 

	 	(l)	“Closing Date Financial Statements” means the Closing Date Balance Sheet and the Closing Date Working Capital Statement. 

 

	 	(m)	“Closing Date Working Capital Amount” means the Working Capital determined as of the Closing Date based upon the Closing Date Balance Sheet.

  

	 	(n)	“Closing Date Working Capital Statement” means a statement which sets forth the Closing Date Working Capital Amount and the manner by which it was
calculated. 

  

	 	(o)	“Closing Time” means 10:00 a.m., Toronto time, on the Closing Date, or such other time on the Closing Date as may be agreed upon in writing between the
Buyers and the Sellers. 

  

	 	(p)	“Code” means the United States Internal Revenue Code of 1986, as amended. 

 

	 	(q)	“Combined Tax Return” means any consolidated, combined, unitary or other similar Tax Return or any Tax Return with respect to any profit and/or loss
sharing group, affiliated group relief, group payment or similar group or fiscal unity which includes Parent or any of its subsidiaries (other than any such Tax Returns that include only QNX Entities). 

 

	 	(r)	“Commercialize” means to make and have made (including purchasing, licensing or otherwise acquiring products, services, Software, Technology or
components thereof or establishing facilities used in making or having made any product, service, Software or Technology or components thereof), use, copy, reproduce, sell, import, export, offer for sale, license, market, distribute, practice any
method or process claimed in any patent, benefit from or commercially exploit any Intellectual Property Rights and grant sublicenses (and permit the granting of sublicenses) to do any or all of the foregoing. 

 

	 	(s)	“Commissioner of Competition” means the Commissioner of Competition appointed under the Competition Act. 

 

 - 3 - 

	 	(t)	“Company IP” means the Owned IP and the Licensed IP. 

  

	 	(u)	“Competition Act” means the Competition Act (Canada). 

 

	 	(v)	“Competition Act Approval” means either: (i) the Buyers shall have received an advance ruling certificate pursuant to
Section 102 of the Competition Act in connection with the transactions contemplated by this Agreement; or (ii) the applicable waiting period under Part IX of the Competition Act shall have expired or the Commissioner of
Competition shall have provided the parties with a waiver from compliance with Part IX of the Competition Act pursuant to subsection 113(c) of Competition Act and the Commissioner of Competition shall have confirmed in writing that the
Commissioner of Competition’s review of the transactions contemplated by this Agreement has been completed and that the Commissioner of Competition has no grounds on which to apply for an order under Section 92 or Section 100 of the
Competition Act and, in either case, no inquiry shall be ongoing nor shall the Commissioner of Competition have threatened or otherwise indicated the commencement of an inquiry under Section 10 of the Competition Act.

  

	 	(w)	“COTS Software” means all Software for which licenses are generally and currently available on reasonable terms through commercial distributors or in
consumer retail stores. 

  

	 	(x)	“Current Assets” means the “current assets” of the QNX Entities, determined on a consolidated basis in accordance with GAAP consistently
applied, which are directly used in the operations of the QNX Entities and based upon the Closing Date Balance Sheet. 

  

	 	(y)	“Current Liabilities” means all “current liabilities”, whether absolute, conditional, contingent, payable, accrued or otherwise due within
365 days of the Closing Date of the QNX Entities determined on a consolidated basis in accordance with GAAP consistently applied, and based upon the Closing Date Balance Sheet. 

 

	 	(z)	“Debt” means all indebtedness for money borrowed and guarantees thereof of the QNX Entities, including any Liens related thereto, other than any
Related Party Debt. 

  

	 	(aa)	“Developers” means any Person who at any time wrote, authored, created, developed, conceived of, produced, made or tested any of the Owned Software or
contributed to any of the foregoing activities whatsoever. 

  

	 	(bb)	“Direct Claim” means a Claim which originates pursuant to this Agreement and does not involve a Third Party Claim. 

 

	 	(cc)	“Disclosure Letter” means the disclosure letter of the Sellers delivered to the Buyers contemporaneously with the execution and delivery of this
Agreement. 

  

 - 4 - 

	 	(dd)	“Employees” means (x) all employees of each of the QNX Entities and (y) all employees of Parent and its Affiliates (other than the QNX
Entities) listed in Schedule 1.1(dd) of the Disclosure Letter whose primary duties involve providing services to the QNX Entities whether by contract or otherwise, and “Employee” means any one of them. 

 

	 	(ee)	“Environmental Law” means any Applicable Law relating to the protection, preservation or restoration of the environment (including indoor spaces),
including those pertaining to: 

  

	 	(i)	reporting, licensing, permitting, investigating, remediating, monitoring and cleaning up in connection with any presence or Release, or the threat of the same, of
Hazardous Substances; and 

  

	 	(ii)	the manufacture, processing, distribution, use, treatment, storage, presence, disposal, recycling, transport, handling and the like of Hazardous Substances, including
those pertaining to occupational health and safety. 

  

	 	(ff)	“ERISA” means the United States Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated
thereunder. 

  

	 	(gg)	“Estimated Working Capital Amount” means -$4,019,789 (negative four million nineteen thousand seven hundred and eighty nine United Stated Dollars).

  

	 	(hh)	“Governmental Authority” means any (i) federal, provincial, state, regional, municipal, territorial, county, district, local or other government,
domestic or foreign; (ii) governmental or quasi-governmental authority of any nature (including any agency, branch, department, ministry, commission, board, court or tribunal); (iii) body exercising any administrative, executive, judicial,
legislative, police, regulatory, expropriation or Tax Authority, domestic or foreign; or (iv) self-regulatory organization or stock exchange having jurisdiction in the relevant circumstances. 

 

	 	(ii)	“Hazardous Substance” means any substance or material that is prohibited, controlled or otherwise regulated by any Environmental Law, including
pollutants, contaminants, dangerous goods or substances, toxic or hazardous substances or materials, wastes (including solid non-hazardous wastes and liquid wastes), petroleum or other hydrocarbons, including any derivative, breakdown or by-product
related to any such substance or material. 

  

	 	(jj)	“Intellectual Property Rights” means: 

  

	 	(i)	 any and all worldwide intellectual or industrial property rights provided under (A) patent law, (B) copyright law, (C) trademark law
(including service marks, trademarks, trade names, indicia, logos, and domain names), (D) design patent or industrial design law, (E) integrated circuit topography, semi-conductor chip, or mask work law or (F) any other

  

 - 5 - 

	 	
applicable statutory provision or common law principle, including confidential information, moral rights, and trade secret law, that provides a right in ideas, processes, systems, methods,
Software, formulae, algorithms, concepts, inventions, works, or know-how, or the expression or use thereof, and including all work in progress thereof, and all past, present, and future causes of action, remedies, rights of recovery, and claims for
damage, accounting for profits, royalties, or other relief relating, referring, or pertaining to any of the foregoing; and 

  

	 	(ii)	any and all applications or registrations in or to any of the subject matters in Section 1.1(jj)(i) above. 

 

	 	(kk)	“knowledge of the Sellers” means to the actual knowledge, information and belief of those individuals listed in Schedule 1.1(kk) of the Disclosure
Letter after reasonable inquiry. 

  

	 	(ll)	“Laws” means all laws (statutory, common or otherwise), codes, ordinances, regulations, rules, orders, judgments, writs, injunctions, acts, guidelines,
policies, directions, decrees or other requirements of any Governmental Authority (in each case having the force of law). 

  

	 	(mm)	“Lease” means any lease, agreement to lease, license or other agreement pursuant to which any QNX Entity occupies or is entitled to occupy any lands or
premises. 

  

	 	(nn)	“Leased Real Property” means any Premises leased by any QNX Entity pursuant to a Lease. 

 

	 	(oo)	“Liability” means any liability (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or
unaccrued, whether liquidated or unliquidated, and whether due or to become due), including any liability for Taxes. 

  

	 	(pp)	“Licensed IP” means all Technology and Names (other than Owned Software and Owned IP), including all Intellectual Property Rights therein, that are
used in the Business as conducted on the date hereof by any of the QNX Entities, as authorized by or under license, contract, settlement, agreement, trust, bailment or otherwise. 

 

	 	(qq)	“Lien” or “Liens” means any mortgage, hypothec, pledge, security interest, encumbrance, encroachment, claim, right of possession,
other defect in title or lien or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof), any sale of receivables with recourse against any of the QNX Entities, any filing or agreement to
file a financing statement as debtor under any personal property registry, the Uniform Commercial Code, or any similar statute (other than to reflect ownership by a third party of property leased to any of the QNX Entities under a lease which
is not in the nature of a conditional sale or title retention agreement), or any subordination arrangement in favour of another Person. 

  

 - 6 - 

	 	(rr)	“Loss” means any loss, injury, liability, damage, cost or expense (including reasonable legal fees and expenses) of any kind or nature suffered or
incurred by an Indemnified Person in connection with any Claim made by it hereunder, including in respect of any proceeding, assessment, judgment, settlement or compromise relating thereto. 

 

	 	(ss)	“Material Adverse Effect” means (i) any result, occurrence, fact, change, event, or effect that has, or would reasonably be expected to have, a
material adverse effect on the business, assets, liabilities, financial condition or results of operations of the QNX Entities, taken as a whole; or (ii) any result, occurrence, fact, change, event or effect that materially impairs or
materially delays or would reasonably be expected to materially impair or materially delay the ability of the Sellers or the QNX Entities (as applicable) to consummate the transactions contemplated by, or perform their obligations under, this
Agreement; but in each case of clauses (i) and (ii) excluding any result, occurrence, fact, change, event or effect resulting from or relating to (A) general political or economic conditions, general financial or capital market
conditions or general conditions in any of the industries in which the QNX Entities primarily operate, to the extent that they do not materially disproportionately affect the QNX Entities, taken as a whole, in relation to the other companies in the
industries in which the QNX Entities primarily operate, (B) an outbreak or escalation of hostilities or any act of terrorism involving the United States, Canada or any other country or the declaration by the United States, Canada or any other
country of a national emergency or war to the extent that they do not materially disproportionately affect the QNX Entities, taken as a whole, in relation to the other companies in the industries in which the QNX Entities primarily operate,
(C) any changes in Law, generally accepted accounting principles used in Canada, GAAP or any authoritative interpretations thereof, (D) any result, occurrence, fact, change, event or effect, including loss of customers, suppliers or
employees of the QNX Entities, arising out of or attributable to the announcement or pendency of the transactions contemplated by, this Agreement and/or the other Transaction Documents (including the identity of the Buyers or their Affiliates),
(E) any action taken or failed to be taken by Parent or any of its Affiliates at the written request of a Buyer or that is required by this Agreement and/or the other Transaction Documents, (F) any effect arising out of or attributable to
a failure to meet Parent’s internal forecasts for the Business (provided that (i) this clause (F) shall not be construed as providing that the underlying cause or causes of such failure may not be taken into consideration in
determining whether a Material Adverse Effect has occurred or would reasonably be expected to occur, and (ii) this clause (F) shall not be construed as implying that Parent is making any representation or warranty hereunder with regard to
any internal forecasts for the Business) or (G) any breach of this Agreement by the Buyers or their Affiliates. 

  

	 	(tt)	“Material Customer” means any of the customers (including any Affiliates of such customers) of the QNX Entities listed in Schedule 1.1(tt) of the
Disclosure Letter. 

  

 - 7 - 

	 	(uu)	“Material Supplier” means any of the suppliers (including any Affiliates of such suppliers) of the QNX Entities listed in Schedule 1.1(uu) of the
Disclosure Letter. 

  

	 	(vv)	“Names” means business names, trade names, domain names, trading styles and logos. 

 

	 	(ww)	“Non-Resident Seller” means a Seller who is a non-resident person within the meaning of section 116 of the Tax Act. 

 

	 	(xx)	“Open Source Materials” means any Software or any other computer programs or other Technology or content (“Materials”) (i) that
is distributed as “free software”, “open source software” or under a similar licensing or distribution model (including any of the licenses listed at http://www.opensource.org/licenses), (ii) that contain, or are derived
from, any Materials that are distributed pursuant to any license that requires, as a condition of the use, modification and/or distribution of such Materials, that Materials (“Derivative Materials”) so incorporated into, derived
from, or distributed with such Materials be: (A) disclosed or distributed in Source Code form; (B) licensed for the purpose of making modifications or derivative works; (C) reproduced and/or redistributed at no or minimal charge; or
(D) permitted to be reverse engineered; or (iii) that is distributed under open source license terms identified in: (Y) the Third Party License Terms Lists identified in Section 1.4(a)(ii) of Schedule 3.35 of the Disclosure
Letter; or (Z) the Black Duck Bill of Materials set forth in Exhibit 1 of Schedule 3.51(b) of the Disclosure Letter. 

  

	 	(yy)	“Owned IP” means all (i) patents, filed patent applications and draft patent applications (including provisional patent applications, utility
patents, divisional patents, continuations, continuations in part, reissue, reexamination, and all similar patents and applications) listed in Section 1.1 of Schedule 3.35 of the Disclosure Letter, (ii) registered trademarks, registered
trade names, registered service marks and registered copyrights and any pending applications therefor, and domain names (including any pending applications) listed in Sections 1.2 and 1.3 of Schedule 3.35 of the Disclosure Letter, and
(iii) other Intellectual Property Rights in the Owned Software and in the other items and materials listed in Section 1.5 of Schedule 3.35 of the Disclosure Letter. 

 

	 	(zz)	“Owned Real Property” means any Premises owned by any of the QNX Entities. 

 

	 	(aaa)	“Owned Software” means the QNX Software and all Software listed in Section 1.5 of Schedule 3.35 of the Disclosure Letter.

  

	 	(bbb)	“Parent Name” and “Parent Marks” means the names and marks, respectively, of Parent or any of its Affiliates (other than the QNX
Entities), including “Harman International”, either alone or in combination with other words and all marks, trade dress, logos, monograms, domain names and other source identifiers confusingly similar to or embodying any of the foregoing,
either alone or in combination with other words. 

  

 - 8 - 

	 	(ccc)	“Permitted Liens” means: 

  

	 	(i)	reservations, limitations, provisos and conditions expressed in the original grant from the Crown (provided the same have been complied with in all material respects);

  

	 	(ii)	easements, servitudes, party wall agreements, rights of way and other similar rights and agreements (including easements, rights of way and agreements for sewers,
drains, gas and water mains or electric light and power or telephone, telecommunications or cable conduits, poles, wires and cables) which do not and will not, in the aggregate, materially impair the use of the real property for the purpose for
which it is used or materially impair the ordinary conduct of the Business; 

  

	 	(iii)	registered municipal agreements and registered agreements with publicly regulated utilities, provided that such agreements have been complied with in all material
respects or security has been posted to ensure their compliance and completion; 

  

	 	(iv)	defects or irregularities in title which are of a minor nature and do not, in the aggregate, materially impair the use of the real property for the purpose for which it
is used or materially impair the ordinary conduct of the Business; 

  

	 	(v)	statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen, workmen, repairmen and other Liens imposed by Law in the ordinary course of
business; 

  

	 	(vi)	liens for Taxes not yet due or liens for Taxes which are due but the validity of which are being contested in good faith by a QNX Entity by appropriate proceedings or
that may thereafter be paid without penalty; and 

  

	 	(vii)	zoning and building by-laws and ordinances, municipal by-laws and regulations, development agreements and restrictive covenants which do not and will not, in the
aggregate, materially adversely affect or impair the use of the real property for the purpose for which it is used, provided that they have been complied with in all material respects. 

 

	 	(ddd)	“Person” means an individual, sole proprietorship, corporation, partnership, limited partnership, association, joint venture, syndicate, trust,
Governmental Authority or other entity or organization. 

  

	 	(eee)	“Personal Information” means the type of information regulated by Applicable Privacy Laws and collected, used or disclosed by any of the QNX Entities,
including information such as an individual’s name, address, age, gender, identification number, income, family status, citizenship, employment, assets, liabilities, source of funds, payment records, credit information, personal references and
health records, but does not include the name, title or business address or telephone number of an employee. 

  

 - 9 - 

	 	(fff)	“Post-Closing Period” means any taxable period beginning after the Closing Date and, in the case of any Straddle Period, the portion of such period
beginning immediately after the Closing Date (and, for Canadian income tax purposes, a taxable period beginning on the Closing Date). 

  

	 	(ggg)	“Pre-Closing Period” means any taxable period that ends on or before the Closing Date and, in the case of any Straddle Period, the portion of such
period ending on and including the Closing Date. 

  

	 	(hhh)	“Premises” means all real and immoveable property, buildings and facilities owned or occupied by any of the QNX Entities in connection with the
Business. 

  

	 	(iii)	“Prime Rate” means, at any time, the annual rate of interest which — Bank establishes at its
principal office in New York as the reference rate of interest to determine interest rates it will charge at such time for demand loans in U.S. dollars made to its customers in the United States and which it refers to as its “prime rate of
interest”. 

  

	 	(jjj)	“Published Source Code” means all Owned Software consisting of Source Code made available under Foundry27 or otherwise made available to licensees of
any QNX Entity without obligations to keep such Source Code confidential. 

  

	 	(kkk)	“QNX Entities” means, collectively, the Companies and the Subsidiaries, and “QNX Entity” means any one of them.

  

	 	(lll)	“QNX Product Suite” means the computer operating system, middleware and development tool software products listed in Section 1.4 of Schedule 3.35
of the Disclosure Letter. 

  

	 	(mmm)	“QNX Proprietary Software” means all Software included in the computer operating system, middleware, and development tool software products commonly
referred to as “QNX Software Development Platform version 6.4.1” (or such later versions released by the Sellers prior to the Closing Date), including, without limitation, all QNX Aviage Middleware products, but for greater certainty not
limiting the use of such Software to such software products, but excluding the Licensed IP set forth in Section 1.6(a) of Schedule 3.35 or on Schedule 3.51(b) of the Disclosure Letter or COTS Software. 

 

	 	(nnn)	 “QNX Software” means the QNX Product Suite, but excluding (i) Open Source Materials, as identified for the QNX 6 generation of
the QNX Product Suite in the License Guides and Third Party License Terms Lists in Sections 1.4(a)(ii)-(iv) of Schedule 3.35 of the Disclosure Letter, (ii) Licensed IP in the QNX Product Suites, as identified in Section 1.6 of
Schedule 3.35 of the Disclosure Letter, (iii) any other third Person’s Software or Intellectual Property Rights identified in the License Guides or Third Party License Terms Lists identified in Sections

  

 - 10 - 

	 	
1.4(a)(ii)-(iv) of Schedule 3.35 of the Disclosure Letter as not being included or licensed by the QNX Entities as part of the QNX Product Suite; and (iv) COTS Software.

  

	 	(ooo)	“Reciprocal Requirements” means a requirement that Technology of any of the QNX Entities be: (i) disclosed or distributed in source code form;
(ii) licensed for the purpose of making modifications or derivative works; or (iii) reproduced or redistributed at no or minimal charge. 

  

	 	(ppp)	“Related Party” means (i) any Seller and (ii) any officer, director or Affiliate of any of the QNX Entities. 

 

	 	(qqq)	“Related Party Debt” means (i) all indebtedness for money borrowed of any of the QNX Entities owed to or for the benefit of a Seller or any of its
Affiliates and (ii) all guarantees for money borrowed of any of the QNX Entities in favor of or for the benefit of a Seller or any of its Affiliates (other than a QNX Entity). 

 

	 	(rrr)	“Release” means any release or discharge of any Hazardous Substance into or onto air, land (surface or subsurface), surface water and/or groundwater,
including any discharge, spray, injection, inoculation, abandonment, deposit, spillage, leakage, seepage, pouring, emission, emptying, throwing, dumping, placing, exhausting, escape, leach, migration, dispersal, dispensing or disposal.

  

	 	(sss)	“Software” means any computer program, operating system, applications system, firmware, software or rights thereto of any nature, whether operational,
under development or inactive, including all object code, Source Code, program files, data files, computer related data, field and data definitions and relationships, data definition specifications, data models, program and system logic, interfaces,
program modules, routines, sub-routines, algorithms, program architecture, design concepts, system designs, order of operations, so-called “look and feel”, user interface, graphic elements, program structure, sequence and organization,
screen displays and report layouts, technical manuals, flowcharts, diagrams, user manuals and all other documentation, whether in machine-readable form, programming language or any other language or symbols, and whether stored, encoded, recorded or
written on disk, tape, film, memory, device, paper or other media of any nature. 

  

	 	(ttt)	“Source Code” means the human-readable form of a computer instruction, including related system documentation, applicable comments and procedural codes
such as job control language. 

  

	 	(uuu)	 “Source Materials” means, in relation to items of Software, supporting materials that would enable a reasonably competent and skilled
embedded operating system kernel programmer to compile, debug and support and/or make improvements to such Software in a commercially reasonable manner including (i) any Source Code related thereto, reasonably annotated, (ii) technical and
system documentation including detailed design, functional, operational, and technical 

  

 - 11 - 

	 	
documentation, flow charts, diagrams, file layouts, report layouts, screen layouts, business rules, data and database models and structures, which was made or obtained in relation to the design
and development of such Software and compilation instructions related to such Software, (iii) listing by name, version and vendor of relevant third Persons’ compilers, utilities and other Software that are necessary for normal operation of
such Software to which the Source Materials related including, with respect to the current release of the QNX 6 generation of the QNX Software, information reasonably sufficient to procure a license from such vendors, (iv) a reasonably detailed
listing of relevant equipment and information necessary for normal operation of such Software, and (v) all other information reasonably necessary to rebuild, install, and otherwise implement such Software in the context of the applicable
system(s) including all relevant tools, programs, files, encryption keys, make files, installation instructions, systems settings, and database settings. 

  

	 	(vvv)	“Straddle Period” means any taxable period beginning on or prior to and ending after the Closing Date, except that for Canadian income tax purposes, a
Straddle Period shall not include any taxable period beginning on the Closing Date. 

  

	 	(www)	“Subsidiaries” means, collectively, the entities set out in Schedule 1.1(www) of the Disclosure Letter, and “Subsidiary” refers to any
one of them. 

  

	 	(xxx)	“subsidiary” means, with respect to any Person, a Person that is controlled directly or indirectly by another Person and includes a subsidiary of that
subsidiary and, for purposes of this definition, a Person controls a second Person if (i) the Person, directly or indirectly, beneficially owns or exercises control or direction over securities of the second Person carrying votes which, if
exercised, would entitle the Person to elect a majority of the directors of the second Person, unless the Person beneficially owns or exercises control or direction over voting securities only to secure an obligation, (ii) the second Person is
a partnership and the Person beneficially owns or exercises control or direction over more than 50 percent of the interests in the partnership, or (iii) the second Person is a limited partnership, the Person is the general partner of the
limited partnership or the control Person of the general partner. 

  

	 	(yyy)	“Tax” (and, with correlative meaning, “Taxes”) means all federal, provincial, state, local, foreign or other taxes, duties, premiums,
assessments, imposts, levies and other charges of any kind whatsoever that are similar in nature to taxes imposed by any Tax Authority, together with all interest, penalties, fines, additions to tax or other additional amounts imposed in respect
thereof, imposed by any Tax Authority, including those levied on, or measured by, or referred to as income, gross receipts, profits, capital, transfer, land transfer, sales, goods and services, ad valorem, use, value-added, excise, stamp,
withholding, business, franchising, property (both real and personal), payroll, employee withholding, employment, occupation, health, social service, environmental, education and social security taxes, all surtaxes and all customs duties and import
and export taxes. 

  

 - 12 - 

	 	(zzz)	“Tax Act” means the Income Tax Act (Canada). 

  

	 	(aaaa)	“Tax Assets” means any Tax Item that could reduce a Tax, including net operating loss, net capital loss, general business credit, foreign tax credit,
charitable deduction or credit related to alternative minimum tax or other Tax credit. 

  

	 	(bbbb)	“Tax Authority” means any Governmental Authority responsible for the imposition or administration of any Tax. 

 

	 	(cccc)	“Tax Returns” means all returns, declarations, reports, claims for refund, forms, designations, estimates, information statements and other documents
relating to Taxes required to be submitted to a Tax Authority, including all schedules and attachments thereto, and including all amendments thereof, and the term “Tax Return” means any one of the foregoing Tax Returns.

  

	 	(dddd)	“Technology” means technology and related information of whatever nature or kind, in all cases whether or not finished or a work in progress and
whether or not subject to any Intellectual Property Rights and whether or not fixed in any medium or reduced to practice, including (i) Software, Source Code and Source Materials and including all versions thereof; (ii) trade secrets,
industrial designs and copyrights; (iii) inventions, formulae, product formulations, processes and processing methods, technology and techniques; (iv) know-how, research and technical data; and (v) white papers, product literature,
draft patent applications, software, studies, findings, algorithms, instructions, guides, manuals and designs. 

  

	 	(eeee)	“Third Party Claim” means any action, suit, demand, claim or proceeding in law or equity asserted by any third Person that is not an Affiliate of the
applicable Indemnified Person. 

  

	 	(ffff)	“Transaction Documents” means the Mutual Non-Solicitation Agreement in the form attached hereto as Exhibit A and the Transition Services Agreement
in the form attached hereto as Exhibit C. 

  

	 	(gggg)	“Unpublished Source Code” means all Owned Software that is Source Code but that is not Published Source Code. 

 

	 	(hhhh)	“U.S. Employees” means Employees who are employed by a United States entity. 

 

	 	(iiii)	“Working Capital” means Current Assets minus Current Liabilities. 

 

 - 13 - 

 In addition to the foregoing, each of the following terms is defined in the Section set forth opposite
such term: 
  

			
	 Term
	  	 Section

		
	Agreement	  	1.1(jjjj)(i)
	Annual Financial Statements	  	3.12
	ARC	  	5.7(b)
	Buyer or Buyers	  	Preamble
	Buyer 1	  	Preamble
	Buyer 2	  	Preamble
	Buyer DC Plans	  	5.13(f)
	Buyer Indemnified Person	  	9.2
	Buyer Tax Indemnitee	  	6.2(a)
	Buyer Taxes	  	6.2(a)
	CFIUS	  	5.7(f)
	CFIUS Approval	  	5.7(f)
	Closing	  	2.5
	Company or Companies	  	Preamble
	Confidentiality Agreement	  	5.4
	Contest Relevant Time	  	6.5(d)
	Delivering Party	  	6.3(b)
	End Date	  	8.1(b)(ii)
	Environmental Permits	  	3.104
	Excess Taxes	  	6.5(b)
	Exon-Florio/FINSA	  	5.7(f)
	Financial Statements	  	3.12
	FINSA	  	5.7(f)
	GAAP	  	1.1(jjjj)(vi)
	GmbH	  	Preamble
	Guaranteed Obligations	  	5.16(a)
	Guaranteed Parties	  	5.16(a)
	Guarantor	  	Preamble
	Guaranty	  	5.16(a)
	Impermissible Past Practice	  	6.3(b)
	Indemnified Person	  	9.4
	Indemnifying Person	  	9.4
	Indemnity Deadline	  	9.1
	Independent	  	2.4(a)
	Independent Auditor	  	2.4(a)
	Institute	  	10.13
	Interim Financial Statements	  	3.12
	Material Contracts	  	3.22(a)
	Ontario Courts	  	10.12
	Parent	  	Preamble
	Parent Taxes	  	6.2(a)
	Permit	  	3.29
	Pre-Acquisition Reorganization	  	5.11
	Property Taxes	  	6.16(a)
	Purchase Price	  	2.2

  

 - 14 - 

			
	 Term
	  	 Section

		
	QNX Benefit Arrangement	  	3.88
	QSSC	  	Preamble
	QSSC Shares	  	Preamble
	QSSI	  	Preamble
	QSSI Shares	  	Preamble
	Qualified Plans	  	5.13(f)
	Review Period	  	2.4(a)
	Second Request	  	5.7(e)
	Seller or Sellers	  	Preamble
	Seller Group	  	6.16(b)
	Seller Indemnified Person	  	9.3
	Seller Tax Indemnitee	  	6.2(b)
	Share or Shares	  	Preamble
	Specified Section 6.3(b) Return	  	6.3(b)
	Tax Benefit	  	6.16(c)
	Tax Claim	  	6.16(d)
	Tax Item	  	6.16(e)
	Tax Proceeding	  	6.16(f)
	Tax Representations	  	3.86
	Tax Return Due Date	  	6.3(b)
	Tax Timing Payment	  	6.7(a)
	Third Party	  	9.6(b)
	Transfer Taxes	  	6.8
	Transition Services Agreement	  	7.2(h)
	Transition Services Date	  	5.13(d)
	Wavemaker Shares	  	Preamble
	Wavemakers	  	Preamble
	WC Objection Notice	  	2.4(a)
	WC Taxes	  	6.2(a)
	Welfare Benefits	  	5.13(e)

  

	 	(jjjj)	In this Agreement, except as otherwise expressly provided or as the context otherwise requires: 

 

	 	(i)	“Agreement” means this Agreement as from time to time supplemented or amended as provided herein; 

 

	 	(ii)	a reference to an Article, a Section or an Exhibit is to an Article, a Section or an Exhibit of this Agreement; 

 

	 	(iii)	the inclusion of headings is for convenience of reference only and shall not affect the construction or interpretation of this Agreement; 

 

	 	(iv)	 the word “including”, when following a general statement or term, is not to be construed as limiting the general statement or term to
any specific 

  

 - 15 - 

	 	
item or matter set forth or to similar items or matters, but rather as permitting the general statement or term to refer also to all other items or matters that could reasonably fall within its
broadest possible scope and whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”;

  

	 	(v)	the term “made available to the Buyers” and words of similar import means that the relevant documents, instruments or materials were either provided
directly to the Buyers through the Sellers or their representatives or posted and made available to the Buyers for review in the electronic dataroom maintained by the Sellers; 

 

	 	(vi)	a financial accounting term not otherwise defined herein has the meaning assigned to it, and every financial accounting calculation to be made hereunder is to be made,
in accordance with accounting principles generally accepted in the United States applied on a consistent basis (“GAAP”); 

  

	 	(vii)	all dollar amounts referred to in this Agreement are in lawful money of the United States of America; 

 

	 	(viii)	a reference to a statute includes all regulations made thereunder, all amendments to the statute or regulations in force from time to time, and every statute or
regulation that supplements or supersedes such statute or regulations; 

  

	 	(ix)	a reference to a Person includes any successor to that Person; 

  

	 	(x)	to the extent any representations, warranties, covenants or agreements contained herein relate, directly or indirectly, to a subsidiary of any party, each such
provision shall be construed as a covenant by such party to cause (to the fullest extent to which it is legally capable) such subsidiary to perform the required action; 

 

	 	(xi)	a word importing the masculine gender includes the feminine and neuter, a word in the singular includes the plural, a word importing a corporate entity includes an
individual, and vice versa; 

  

	 	(xii)	a reference to “received” or “obtained” means being received or obtained by any method whatsoever, including by written or oral means;

  

	 	(xiii)	a reference to “approval”, “authorization” or “consent” of any party means written approval, authorization or consent; and

  

	 	(xiv)	the language used in this Agreement is the language chosen by the parties to express their mutual intent and no rule of strict construction shall be applied against any
party proposing any such language. 

  

 - 16 - 

	1.2	Exhibits. The following are Exhibits to this Agreement: 

  

					
	Exhibit A	  	-	 	Form of Mutual Non-Solicitation Agreement
			
	Exhibit B	  	-	 	Form of Opinion of Sellers’ Canadian Counsel
			
	Exhibit C	  	-	 	Form of Transition Services Agreement
			
	Exhibit D	  		 	Form of FIRPTA Certificate

ARTICLE II 

PURCHASE AND SALE 
  

	2.1	Purchase and Sale. On the terms and subject to the conditions of this Agreement, (i) Parent agrees to sell, assign, transfer and deliver to Buyer 2 at the
Closing, the QSSI Shares, free and clear of any Liens, (ii) Parent agrees to sell, assign, transfer and deliver to Buyer 1 at the Closing, the Wavemaker Shares, free and clear of any Liens, and (iii) GmbH agrees to sell, assign, transfer
and deliver to Buyer 1 at the Closing the QSSC Shares, free and clear of any Liens. On the terms and subject to the conditions of this Agreement, (a) Buyer 2 agrees to purchase from Parent at the Closing, the QSSI Shares, free and clear of any
Liens, (b) Buyer 1 agrees to purchase from Parent at the Closing, the Wavemaker Shares, free and clear of any Liens, and (c) Buyer 1 agrees to purchase from GmbH at the Closing, the QSSC Shares, free and clear of any Liens.

  

	2.2	Purchase Price. The purchase price for the Shares payable by the Buyers to the Sellers for the Shares shall be equal to $200,000,000 (two hundred million United
States Dollars) subject to the adjustment provided for in Section 2.4 (the “Purchase Price”) and shall be allocated among the Sellers in the percentages set forth in Schedule 2.2 of the Disclosure Letter. Any adjustment to the
Purchase Price pursuant to Section 2.4 shall be allocated to the Seller selling the Shares of the Company to which such adjustment relates. 

  

	2.3	Payment at the Closing. At the Closing, the Buyers shall pay to the Sellers the Purchase Price by wire transfer in accordance with Schedule 2.2 of the Disclosure
Letter. No amount shall be deducted or withheld pursuant to Section 116 of the Tax Act from the Purchase Price or any other amounts payable by Buyers under this Agreement. 

 

	2.4	Payment of Adjustment Amount. 

  

	 	(a)	 As soon as practicable following the Closing Date, and in any event no later than twenty (20) Business Days after the Closing Date, the Buyers
shall cause to be prepared and deliver to the Sellers the Closing Date Financial Statements with a 

 

 - 17 - 

	 	
calculation of the Adjustment Amount, which Closing Date Financial Statements shall be accompanied by working papers and other supporting documentation, to be supplemented as necessary by such
additional documentation as the Sellers may reasonably request following delivery of the Closing Date Financial Statements. The Sellers shall have fifteen (15) Business Days (the “Review Period”) following receipt of the
Closing Date Financial Statements in which to review the Closing Date Financial Statements, and the Buyers shall provide Parent and its independent accountants reasonable access during normal business hours to the personnel, properties, books and
records of the Business and the QNX Entities for such purpose. The Buyers agree that, following the Closing Time through the date that the Closing Date Working Capital Amount and the Adjustment Amount become final and binding, they will not take any
actions with respect to any accounting books, records, policies or procedures on which the Closing Date Financial Statements or the Estimated Working Capital Amount are based that would impact the determination of the Closing Date Working Capital
Amount or the Adjustment Amount or the preparation of calculations included in the WC Objection Notice. If at any time during the Review Period, the Sellers determine that they have any objection to the Closing Date Financial Statements or any
aspect of the calculation of Closing Date Working Capital Amount, the Sellers may send a written notice (the “WC Objection Notice”) explaining in reasonable detail such objection(s); provided, that the WC Objection Notice shall be
delivered to the Buyers no later than five (5) Business Days following the last day of the Review Period. The Buyers and the Sellers shall endeavour, in good faith, to resolve the matters described in the WC Objection Notice. If the Buyers and
the Sellers are unable to resolve any of the matters described in the WC Objection Notice and agree in writing to that resolution within twenty (20) days after the Sellers’ receipt thereof, the Buyers and the Sellers shall promptly submit
those items then remaining unresolved to PricewaterhouseCoopers, or if they refuse or are unable to act, a nationally recognized United States accounting firm which shall be independent of the Buyers and the Sellers and their respective Affiliates
(“Independent”) and reasonably acceptable to the Sellers and the Buyers. If the Buyers and the Sellers cannot agree to the selection of such an accounting firm within a further period of five (5) days, an accounting firm that
is Independent shall be selected by two nationally recognized United States accounting firms, one of which shall be nominated by the Buyers and the other of which shall be nominated by the Sellers. The accounting firm so determined in accordance
with the provisions of this Section 2.4 shall hereinafter be referred to as the “Independent Auditor”. The Independent Auditor shall determine the Closing Date Working Capital Amount and the Adjustment Amount. With respect to
each disputed line item, such determination, if not in accordance with the position of either the Buyers or the Sellers, shall not be in excess of the higher, nor less than the lower, of the amounts advocated by the Sellers in the WC Objection
Notice or by the Buyers in the Closing Date Financial Statements with respect to such disputed line item. During the review by the Independent Auditor, the Buyers and the Sellers and their accountants will each make available to the Independent
Auditor interviews with such individuals, and such information, 

  

 - 18 - 

	 	
books and records and work papers, as may be reasonably required by the Independent Auditor to fulfill its obligations under this Section 2.4; provided, however, that the accountants of the
Sellers or the Buyers shall not be obliged to make any work papers available to the Independent Auditor except in accordance with such accountants’ normal disclosure procedures and then only after such firm has signed a customary agreement
relating to such access to work papers in form and substance reasonably acceptable to such accountant. The Sellers on the one hand, and the Buyers on the other hand, shall each bear one-half of the fees, costs and expenses of the Independent
Auditor; provided, however, that if the Independent Auditor determines that one party to the dispute is the prevailing party, then the non-prevailing party shall alone be responsible for the fees, costs and expenses of dispute resolution incurred by
all parties. 

  

	 	(b)	If the Closing Date Working Capital Amount is greater than the Estimated Working Capital Amount, the Buyers shall promptly pay the Sellers the Adjustment Amount by wire
transfer to the account of the Sellers as the Sellers shall notify the Buyers in writing, together with interest at the Prime Rate from the Closing Date until the date of payment. 

 

	 	(c)	If the Closing Date Working Capital Amount is less than the Estimated Working Capital Amount, the Sellers shall promptly pay to the Buyers the Adjustment Amount by wire
transfer to the account of the Buyers as the Buyers shall notify the Sellers in writing, together with interest at the Prime Rate from the Closing Date until the date of payment. 

 

	 	(d)	The Buyers and the Sellers will execute, if requested by the Independent Auditor, a reasonable engagement letter, including customary indemnities. The Independent
Auditor shall act as an expert and not an arbitrator to determine, based solely on the provisions of this Section 2.4 and the representations by the Buyers and the Sellers, only on those issues still in dispute and only as to whether such
amounts were arrived at in conformity with this Agreement. The Independent Auditor’s determination shall be made within thirty (30) days of its selection, or such other period as mutually agreed to by the Buyers and the Sellers, and shall
be set forth in a written statement delivered to the Buyers and the Sellers. The information and the occurrence of the proceedings under this Section 2.4 shall be treated as confidential information. The Independent Auditor shall be bound by a
mutually agreeable confidentiality agreement. The procedures of this Section 2.4 are exclusive and, except as set forth below, the determination of the Independent Auditor shall be final and binding on the parties hereto absent an error in
calculation, which the parties shall draw to the attention of the Independent Auditor for correction. The decision rendered pursuant to this Section 2.4 may be filed as a judgment in any court of competent jurisdiction. Either the Buyers or the
Sellers may seek specific enforcement or take other necessary legal action to enforce any decision under this Section 2.4. The other party’s only defense to such a request for specific enforcement or other legal action shall be fraud by or
on the part of the Independent Auditor. Absent such fraud, such other party shall reimburse the party seeking enforcement for its expenses related to such enforcement. 

 

 - 19 - 

	 	(e)	The determination and adjustment of the Purchase Price in accordance with the provisions of this Article II shall not limit or affect any other rights or causes of
action the Buyers or Sellers may have with respect to the representations, warranties, covenants and indemnities in their favor contained in this Agreement. 

 

	2.5	Closing. Upon the terms and subject to the conditions of this Agreement, the closing (the “Closing”) of the purchase and sale of the Shares
hereunder shall take place at 10:00 a.m. (Toronto time), on the second Business Day after the satisfaction or (to the extent permitted by Applicable Law) waiver of the conditions set forth in Article VII (other than those conditions to be
satisfied or waived by action taken at the Closing, but subject to satisfaction or waiver of such conditions), at the offices of the Buyers’ counsel in Toronto, Ontario or at such other time or place as the Buyers and the Sellers may agree in
writing. At the Closing: 

  

	 	(a)	Parent shall deliver to Buyer 2 all certificates representing the QSSI Shares duly endorsed for transfer to Buyer 2; 

 

	 	(b)	Parent shall deliver to Buyer 1 all certificates representing the Wavemaker Shares duly endorsed for transfer to Buyer 1; 

 

	 	(c)	GmbH shall deliver to Buyer 1 all certificates representing the QSSC Shares duly endorsed for transfer to Buyer 1; 

 

	 	(d)	each of the Buyers and the Sellers shall deliver the Transaction Documents to which such Buyer or Seller is a party and all other documents required to be delivered by
such Buyer or Seller pursuant to this Agreement; 

  

	 	(e)	the Buyers shall pay the Purchase Price as set forth in Section 2.2; and 

 

	 	(f)	each of the Sellers, the Buyers and QNX Entities shall execute and deliver any other instruments, documents and certificates that are required to be delivered pursuant
to this Agreement. 

 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE SELLERS 

Except as set forth in the Disclosure Letter (with specific reference to the Section or subsection of this Agreement to which the information stated
in such disclosure relates; provided that information contained in any section or subsection of the Disclosure Letter shall be deemed to be disclosed with respect to any other Section or subsection of this Agreement only to the extent
that it is readily apparent on the face of such disclosure that such information is applicable to such other Section or subsection of this Agreement), each of the Sellers hereby jointly and severally represent and warrant to the Buyers as
follows and acknowledge that the Buyers are relying upon the following representations and warranties in connection with the purchase of the Shares: 

Authorization, Execution and Approvals 
  

	3.1	Each of the Sellers is duly incorporated or duly formed and validly existing under the laws of its jurisdiction of incorporation or formation, as the case may be.
Schedule 3.1 of the Disclosure Letter sets out the name and jurisdiction of incorporation or formation, as the case may be, of each of the Sellers. Each of the Sellers has all requisite power, authority and capacity to own the Shares and enter into
and perform its obligations under this Agreement and each of the Transaction Documents to which it is a party. 

  

 - 20 - 

	3.2	Each of the QNX Entities is duly incorporated or duly formed and validly existing under the laws of its jurisdiction of incorporation or formation, as the case may be.
Schedule 3.2 of the Disclosure Letter sets out the name and jurisdiction of incorporation or formation, as the case may be, of each of the QNX Entities. Each of the QNX Entities has all requisite power, authority and capacity to own, lease and
operate its properties and assets and to carry on its business as now conducted. The Sellers have made available to the Buyers true, correct and complete copies of the certificate of incorporation, articles of incorporation, articles of association,
by-laws, partnership agreements and all other similar applicable organizational documents of each of the QNX Entities, as amended and in effect on the date hereof. The Sellers have made available to the Buyers the minute books of each of the QNX
Entities, which, since November 30, 2004, are true, complete and correct in all material respects. The Subsidiaries are the only subsidiaries of any of the Companies. 

 

	3.3	Each of the QNX Entities is duly registered, licensed, or qualified to carry on business and is in good standing (where applicable) in each jurisdiction in which the
character of its properties and assets owned or leased or the nature of its business makes such registration, licensing or qualification necessary, except where the failure to be so registered, licensed or qualified or in good standing has not had
or would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the QNX Entities, taken as a whole, the Business or the results of operations of the Business. 

 

	3.4	This Agreement has been duly executed and delivered by each of the Sellers and constitutes a legal, valid and binding obligation of each of the Sellers, enforceable
against each of the Sellers in accordance with its terms, subject to bankruptcy, insolvency, moratorium and other similar laws relating to or affecting creditors’ rights generally, and the fact that equitable remedies, including the remedies of
specific performance and injunction, may only be granted in the discretion of a court of competent jurisdiction. At the Closing Time, each of the Transaction Documents to which a Seller or a QNX Entity is a party will be duly executed and delivered
by such Seller or QNX Entity and will constitute, when executed, a legal, valid and binding obligation of each Seller and QNX Entity that is a party thereto, enforceable against each such Seller or QNX Entity in accordance with its terms, subject to
bankruptcy, insolvency, moratorium and other similar laws relating to or affecting creditors’ rights generally, and the fact that equitable remedies, including the remedies of specific performance and injunction, may only be granted in the
discretion of a court of competent jurisdiction. 

  

 - 21 - 

	3.5	The execution, delivery and performance of this Agreement and the Transaction Documents and the completion of the transactions contemplated by this Agreement and the
Transaction Documents have been duly and validly authorized by all necessary corporate action on the part of each of the Sellers and no other corporate proceedings or approvals are required on the part of any of the Sellers to authorize this
Agreement or the Transaction Documents or to consummate the transactions contemplated by this Agreement or the Transaction Documents. 

  

	3.6	Except as set forth in Schedule 3.6 of the Disclosure Letter, except as otherwise provided in Sections 3.7, 3.8, 4.4, 4.5 or 4.6 and except (in the case of clause
(v)) as may result from any facts or circumstances relating to the Buyers or their Affiliates, the execution, delivery and performance of this Agreement and each of the Transaction Documents by the Sellers and the QNX Entities (as applicable), and
the consummation of the transactions contemplated by this Agreement and the Transaction Documents by the Sellers and the QNX Entities (as applicable), do not and will not: (i) conflict with, violate or result in a breach of, any of the
provisions of the certificate of incorporation, articles of incorporation, articles of association, by-laws, partnership agreement or other similar organizational documents, as applicable, of any of the Sellers or any of the QNX Entities;
(ii) conflict with, violate or result in a breach of, or constitute a default (or an event, condition or occurrence which, with notice or passage of time or both, would constitute a default) under, or give rise to any termination rights, rights
of first refusal or other buy-sell rights or the amendment, acceleration or cancellation of or change in any rights or obligations of any Person under, any Material Contact, any settlement agreement binding upon any of the QNX Entities regarding
actions, suits, judgments, investigations or proceedings or any agreement listed on Exhibit 5 of Schedule 3.35 of the Disclosure Letter; (iii) cause any third party indebtedness owing by any of the QNX Entities to become due and payable before
its stated maturity or cause any available credit to cease to be available; (iv) result in the creation or imposition of, give rise to, or trigger, any Lien upon any of the shares (including the Shares) or assets of any of the QNX Entities; or
(v) contravene or result in a violation of any Applicable Law, except in the case of clauses (ii) through (v) to the extent that necessary consents, approvals or other authorizations have been obtained or as have not had or would not
reasonably be expected to have a Material Adverse Effect. 

  

	3.7	 Schedule 3.7 of the Disclosure Letter sets forth a correct and complete list of each consent, waiver, authorization or approval of, each notice or
declaration to, and each filing or registration with, any Governmental Authority that is required by any of the Sellers or any of the QNX Entities in connection with the execution, delivery and performance of this Agreement and the Transaction
Documents or the consummation of the transactions contemplated by this Agreement and the Transaction Documents, except for such consents, waivers, authorizations, approvals, notices, declarations, filings and registrations (i) the failure of
which to obtain or make would not prevent or materially delay the consummation of the transactions contemplated by this Agreement or would not have and would not reasonably be expected to have, individually or in the aggregate, a

  

 - 22 - 

	 	
material adverse effect on the QNX Entities, taken as a whole, the Business or the results of operations of the Business; (ii) that are otherwise provided in Sections 4.4, 4.5 or 4.6;
or (iii) required by facts or circumstances relating to the Buyers or their Affiliates. 

  

	3.8	Except as set forth in Schedule 3.8 of the Disclosure Letter, provided that all consents, approvals, authorizations and other actions described in Section 3.6 or
3.7 have been obtained or taken and except as otherwise provided in Sections 4.4, 4.5 or 4.6, (i) no consent, waiver, authorization, approval or other action by any other Person; and (ii) no notice or declaration to or filing or
registration with any other Person, in each case, under any Material Contract, any settlement agreement binding upon any of the QNX Entities regarding actions, suits, judgments, investigations or proceedings or any agreement listed on Exhibit 5 of
Schedule 3.35 of the Disclosure Letter is required or necessary for the: 

  

	 	(a)	execution, delivery and performance of this Agreement by each of the Sellers; and 

 

	 	(b)	the consummation of the transactions contemplated by this Agreement; 

except in the case of such consents, waivers, authorizations, approvals, notices, declarations, filing, or registrations the failure of
which to obtain or make would not reasonably be expected to have a Material Adverse Effect. 
  

	3.9	Each of the QNX Entities is not a reporting issuer under the Securities Act (Ontario) or under the securities legislation of any other province or territory in
Canada where such concept exists and is not a registrant under the United States Securities Exchange Act of 1934. There is no published market for any securities of any of the QNX Entities. 

Capital Structure 
  

	3.10	Schedule 3.10 of the Disclosure Letter sets out the authorized and issued and outstanding shares and voting securities of, and other equity and ownership interests in,
each of the QNX Entities and the names of the registered and beneficial owners of such shares, voting securities, and other equity interests. Except as set forth in Schedule 3.10 of the Disclosure Letter, no shares or voting securities of, or other
equity interests in, any QNX Entity are issued, reserved for issuance or outstanding. All of the shares, voting securities, and other equity and ownership interests indicated on Schedule 3.10 of the Disclosure Letter as being outstanding have been
duly authorized and validly issued, are fully paid and non-assessable, and were issued in accordance with the registration or qualification requirements of all relevant securities laws or pursuant to valid exemptions therefrom. Except as set out in
Schedule 3.10 of the Disclosure Letter, the shares, voting securities, and other equity interests set out in Schedule 3.10 of the Disclosure Letter are legally and beneficially owned by the applicable Seller (as set out in Schedule 3.10 of the
Disclosure Letter) free and clear of all Liens, and all Liens set forth on Schedule 3.10 will be released in full on the Closing Date. 

  

	3.11	 (a) There are no outstanding or authorized options, warrants, rights, subscriptions, claims of any character, agreements, obligations, convertible
or exchangeable securities, or other commitments contingent or otherwise, relating to the shares or voting securities of, or other equity interests in, any QNX Entity, pursuant to which such QNX Entity is or may

  

 - 23 - 

	 	
become obligated to issue, deliver, sell, redeem or repurchase, or cause to be issued, delivered, sold, redeemed or repurchased, shares or voting securities of, or other equity interests in, such
QNX Entity or any securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire, any shares or voting securities of, or other equity interests in, such QNX Entity; (b) there are no outstanding or authorized
stock appreciation, phantom stock, profit participation or similar rights or obligations with respect to the shares or voting securities of, or other equity interests in, any QNX Entity; and (c) no QNX Entity has any authorized or outstanding
bonds, debentures, notes or other indebtedness the holders of which have the right to vote (or that are convertible into, exchangeable for, or evidencing the right to subscribe for or acquire securities having the right to vote) with the shareholder
of any QNX Entity on any matter. There are no irrevocable proxies and no stockholder agreements, voting trusts or voting agreements or other agreements or understandings with respect to any capital stock of, or other equity or voting interests in,
any QNX Entity. The parties set forth on Schedule 3.11 of the Disclosure Letter have waived their contractual right to make an offer for or otherwise acquire any of the QNX Entities, and none of the Sellers nor any of the QNX Entities is party
to any other contract containing such a contractual right. 

 Financial Statements 

 

	3.12	The (i) unaudited consolidated balance sheet of the QNX Entities at June 30, 2009 and the related statement of profits and losses for the QNX Entities for the
fiscal year ended June 30, 2009 (the “Annual Financial Statements”) and (ii) the Balance Sheet and the related statement of profits and losses for the QNX Entities for the nine (9) months ended March 31, 2010
(the “Interim Financial Statements”, and together with the Annual Financial Statements, collectively, the “Financial Statements”): 

 

	 	(a)	are set out in Schedule 3.12 of the Disclosure Letter; 

  

	 	(b)	are consistent with the books and accounts of the QNX Entities as at the respective dates of the Financial Statements; 

 

	 	(c)	present fairly, in all material respects, the consolidated financial position of the QNX Entities, the results of their operations as at the respective dates of the
Financial Statements and through the periods indicated in the Financial Statements and cash flows of the QNX Entities all in accordance with GAAP, except (i) as disclosed in the notes to such Financial Statements, if any, (ii) for the
absence of complete footnotes, and (iii) in the case of the Interim Financial Statements, subject to normal year-end adjustments; 

  

	 	(d)	have been prepared in all material respects in accordance with GAAP consistently applied; and 

 

	 	(e)	present fairly, in all material respects, the assets and liabilities of the QNX Entities as at the respective dates of the Financial Statements all in accordance with
GAAP, except (i) as disclosed in the notes to such Financial Statements, if any, (ii) the absence of complete footnotes, and (iii) in the case of the Interim Financial Statements, subject to normal year-end adjustments.

  

 - 24 - 

	3.13	The inventory reflected on the Balance Sheet is in all material respects good and merchantable material, of a quality and quantity usable or saleable in the ordinary
course of the Business and is carried on the Financial Statements in all material respects in accordance with GAAP. 

  

	3.14	Except as set forth in Schedule 3.14 of the Disclosure Letter, all accounts receivable reflected on the Balance Sheet are in all material respects (i) bona
fide, and (ii) subject to an allowance for doubtful accounts that has been reflected on the Balance Sheet in accordance with GAAP and consistent with past practice collectible without set-off or counterclaim. 

 

	3.15	Except as set forth in Schedule 3.15 of the Disclosure Letter or as contemplated by this Agreement, since December 31, 2009, the Business and affairs of the QNX
Entities have, in all material respects, been carried on and operated in the ordinary course. 

  

	3.16	Except as set forth in the Balance Sheet or in Schedule 3.16 of the Disclosure Letter, there are no Liabilities of any QNX Entity of any kind whatsoever, whether
accrued, contingent, absolute, determined, determinable or otherwise, except for Liabilities for Taxes and Liabilities incurred in the ordinary course of business consistent with past practice since December 31, 2009 and which are not and would
not reasonably be expected to be, individually or in the aggregate, material and adverse to the QNX Entities, taken as a whole, the Business or the results of operations of the Business. Schedule 3.16 sets forth a true and correct in all material
respects list as of the date hereof of all (a) outstanding Debt of the QNX Entities and (b) Debt of any third parties (other than a QNX Entity) for which a QNX Entity is a guarantor. 

 

	3.17	From December 31, 2009 through the date hereof: 

  

	 	(a)	no dividend or other distribution of any kind has been declared or paid by any QNX Entity, and there has not been any repurchase, redemption or other acquisition by any
QNX Entity of any outstanding shares of capital or other securities of, or other equity interests in, any QNX Entity; 

  

	 	(b)	except as set out in Schedule 3.17 of the Disclosure Letter, no capital expenditures or commitments therefor have been made by any QNX Entity in excess of $50,000;

  

	 	(c)	Parent and/or the QNX Entities have maintained insurance on the assets of the QNX Entities as they were insured on December 31, 2009, except for omissions that
would not materially adversely affect coverage; 

  

	 	(d)	there has been no result, occurrence, fact, change, event or effect that has had or would reasonably be expected to have a Material Adverse Effect;

  

 - 25 - 

	 	(e)	except as set out in Schedule 3.17 of the Disclosure Letter, none of the QNX Entities or their Affiliates has paid or agreed to pay any compensation, pension, bonus,
share of profits or other benefit to, or for the benefit of, any Employee or director or officer of any of the QNX Entities except in the normal course of business consistent with past practice; none of the QNX Entities has increased the
compensation paid or payable to any director, officer or management Employee except, with respect to Employees only, in the normal course of business consistent with past practice; none of the QNX Entities has granted any severance or termination
pay to any Employee or director or officer of any of the QNX Entities, except, in the case of Employees, in the normal course of business consistent with past practice; none of the QNX Entities has entered into any employment deferred compensation
or other similar arrangement (or any amendment to any such existing arrangement) with any Employee or director or officer of any of the QNX Entities except in the normal course of business consistent with past practice; and no material QNX Benefit
Arrangement has been adopted or materially amended; and 

  

	 	(f)	there has not been: 

  

	 	(i)	any amendment of any right, privilege, restriction or condition attaching to any outstanding equity securities of any of the QNX Entities; 

 

	 	(ii)	any incurrence, assumption or guarantee by any of the QNX Entities of any indebtedness for borrowed money; 

 

	 	(iii)	any making of any loan, advance or capital contribution to or investment by any of the QNX Entities in any Person other than (A) in the ordinary course of
business, or (B) not in excess of $100,000 in the aggregate; 

  

	 	(iv)	any Lien (other than Permitted Liens) incurred by any of the QNX Entities other than in the ordinary course of business; or 

 

	 	(v)	except as set out in Schedule 3.17, any cancellation of, material changes in, material amendment to or defaults on any material license agreements or joint venture
agreements. 

 Company Assets 
  

	3.18	Except as set forth in Schedule 3.18 of the Disclosure Letter, the QNX Entities (either jointly, or any QNX Entity severally) have good and marketable title to all
property and assets reflected on the Balance Sheet or acquired after March 31, 2010, free and clear of all Liens (except Permitted Liens). With respect to leased property and assets, each of the QNX Entities is in compliance in all material
respects with such leases and holds a valid leasehold interest free of any Liens (except Permitted Liens). All facilities, machinery, equipment, fixtures, vehicles and other properties owned, leased or used by the QNX Entities to conduct their
business are in good operating condition and repair, and are reasonably fit and usable for the purposes for which they are being used in each case in all material respects. This representation does not concern Owned Real Property, Leased Real
Property or Intellectual Property Rights. 

  

 - 26 - 

	3.19	Except as set out in Schedule 3.19, the assets owned or leased by the QNX Entities, or the assets which they otherwise have the right to use, together with any services
to be provided under the Transition Services Agreement, constitute all of the assets reasonably necessary to conduct the Business substantially as currently conducted by the QNX Entities on the date hereof. 

Litigation and Suits 
  

	3.20	As of the date hereof, except as set out in Schedule 3.20 of the Disclosure Letter, none of the QNX Entities has notice of, or has been served with notice of, any
actions, suits, judgments, investigations or proceedings and, to the knowledge of the Sellers, none are pending or, in the past two (2) years, have been threatened against, any of the QNX Entities or any Employee or director or officer of any
of the QNX Entities (in his or her capacity as such) at law or in equity or before or by any federal, provincial, state, municipal or other governmental department, commission, court, board, bureau or other Governmental Authority. As of the date
hereof, except as set out in Schedule 3.20 of the Disclosure Letter, none of the Sellers has notice of, or has been served with notice of, any actions, suits, judgments, investigations or proceedings and, to the knowledge of the Sellers, none are
pending or, in the past two (2) years, have been threatened against, any of the Sellers at law or in equity or before or by any federal, provincial, state, municipal or other governmental department, commission, court, board, bureau or other
Governmental Authority that has had, or would reasonably be expected to have the effect of prohibiting or materially impairing the overall conduct of the Business as currently conducted by the QNX Entities. 

 

	3.21	As of the date hereof, there is no settlement, judgment, injunction, order or decree binding upon any of the QNX Entities that has had, or would have the effect of
prohibiting or materially impairing any current business practice of any of the QNX Entities, any acquisition of property by any of the QNX Entities, or the overall conduct of the Business as currently conducted by the QNX Entities.

 Material Contracts 
  

					
	3.22	 	(a)	 	Except for the agreements, contracts, plans, leases, arrangements or commitments set out in Schedule 3.22 of the Disclosure Letter (the “Material Contracts”), true
and complete copies in all material respects of which have been made available to the Buyers, none of the QNX Entities is a party to or subject to:

  

	 	(i)	any Lease providing for annual rentals in excess of $50,000; 

  

	 	(ii)	any contract (excluding (A) all purchase orders, sales orders, delivery orders and similar contracts, (B) contracts with accountants, legal advisors and
payroll providers and (C) invoices for taxes, utilities and credit card charges) for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments by any QNX Entity in excess of $100,000;

  

 - 27 - 

	 	(iii)	any written agreement (excluding (A) any purchase orders, sales orders, delivery orders and similar agreements dating prior to July 1, 2008 and (B) any
purchase orders, sales orders, delivery orders and similar agreements dated after July 1, 2008 that are for aggregate amounts not in excess of $250,000) between any QNX Entity and (I) a Material Customer or (II) a Seller or any of its
Affiliates (other than a QNX Entity); 

  

	 	(iv)	any license agreement, support agreement, consulting agreement or engineering services agreement providing for annual payments to any of the QNX Entities in excess of
$500,000; 

  

	 	(v)	any partnership, joint venture or other similar contract, arrangement or agreement; 

 

	 	(vi)	any contract relating to indebtedness for borrowed money or the deferred purchase price of real property (whether incurred, assumed, guaranteed or secured by any
asset); 

  

	 	(vii)	any contract with publishers, distributors, resellers or localization or translation partners providing for annual payments to any of the QNX Entities in excess of
$50,000; or 

  

	 	(viii)	any contract not otherwise covered above in this Section 3.22 that, if such contract were terminated, would have a Material Adverse Effect.

  

	 	(b)	Each Material Contract is a valid and binding agreement of each QNX Entity that is a party thereto, and is in full force and effect, and none of the QNX Entities, nor,
to the knowledge of the Sellers, any other party thereto, is in breach or default in any material respect under the terms of any Material Contract. 

  

	 	(c)	No party to any Material Contract has provided any written or, to the knowledge of Sellers, oral notice to terminate such Material Contract. 

 

	3.23	Except as set out in Schedule 3.23 of the Disclosure Letter, there are no provisions in any Material Contract under which any of the QNX Entities is restricted in any
material respect from selling, licensing or otherwise distributing any of its products to any class of customers, in any geographic area, during any period of time or in any market or market segment. 

 

	3.24	Except as set out in Schedule 3.23 of the Disclosure Letter, there are no provisions for exclusive contracting with respect to goods and services or similar such
provisions in any Material Contract. 

  

	3.25	Except as set out in Schedule 3.25 of the Disclosure Letter, there are no “most favoured nations” or similar such favourable pricing or commercial terms in
any Material Contract. 

  

 - 28 - 

	3.26	None of the QNX Entities is a party to any agreement that by its terms explicitly entitles any distributor, reseller or agent to any payment in excess of $50,000 on
termination, expiration or failure to renew such agreement by any contract. 

  

	3.27	Except as set out in Schedule 3.27 of the Disclosure Letter, none of the QNX Entities is subject to any agreement which immediately following the Closing Time would
restrict or limit any QNX Entity’s right to incur, assume or guarantee any indebtedness for borrowed money or to sell, lease or transfer (by dividend or otherwise) any equity ownership interests of any of the QNX Entities.

  

	3.28	Schedule 3.28 of the Disclosure Letter sets out a list of all insurance policies and fidelity bonds placed by any of the QNX Entities or any of the Sellers covering any
of the assets, business, equipment, properties, operations, Employees, officers and directors of the QNX Entities. As of the date hereof, there is no claim by any of the QNX Entities or any of the Sellers pending under any of such policies or bonds
as to which coverage has been questioned, denied or disputed by the underwriters of such policies or bonds. All premiums payable under all such policies and bonds necessary to maintain such policies and bonds in full force and effect to the limits
of such policies and bonds have been paid, and each of the QNX Entities and the Sellers, as the case may be, is otherwise in compliance in all material respects with the terms and conditions of all such policies and bonds, except where the failure
to comply would not result in loss of coverage or otherwise impair the ability of the QNX Entities to collect the full amount of the coverage under such policies. Unless otherwise set forth in Schedule 3.28 of the Disclosure Letter, such policies of
insurance and bonds (or other policies and bonds providing substantially similar insurance coverage) have been in effect since April 9, 2007 and as of the date hereof are in full force and effect. To the knowledge of the Sellers, as of the date
hereof no written notice has been received threatening termination of, or a material premium increase with respect to, any of such policies or bonds. 

  

	3.29	Except as set out in Schedule 3.29 of the Disclosure Letter, each of the QNX Entities holds all licenses, permits, registrations or approvals issued by a Governmental
Authority necessary for the conduct of the Business as currently conducted and the ownership and occupancy of its property and assets, except such licenses, permits, registrations or approvals the absence of which has not had or would not reasonably
be expected to have a Material Adverse Effect (collectively, “Permits”). Except for such failures to be valid and in full force and effect as have not had or would not reasonably be expected to have a Material Adverse Effect, each
Permit is valid and in full force and effect and no Permit will be terminated or become terminable as a result of the transactions contemplated hereby. 

  

	3.30	None of the QNX Entities is in default in any material respect under (i) any mortgage, loan agreement, indenture or evidence of indebtedness for borrowed money to
which any QNX Entity is a party, or (ii) any judgment, order or injunction of any court, arbitrator or governmental body, agency, official or other Governmental Authority. 

 

	3.31	 Except for Goldman, Sachs & Co., there is no investment banker, broker, finder or other intermediary which has been retained by or is
authorized to act on behalf of any of the 

  

 - 29 - 

	 	
Sellers or any of the QNX Entities who might be entitled to any fee or commission from any of the Buyers or any of the QNX Entities or any of their respective Affiliates upon consummation of the
transactions contemplated by this Agreement, and any such fee or commission will be paid for solely by the Sellers. 

  

	3.32	Except as disclosed in Schedule 3.32 of the Disclosure Letter, there are no loans, leases or royalty agreements between any of the QNX Entities and any of the Sellers
or any Affiliate of any of the Sellers (other than another QNX Entity). 

  

	3.33	To the knowledge of Sellers (in the case of clauses (a) and (b) only), as of the date hereof none of the current officers or directors of any of the QNX
Entities: (a) has any material direct or indirect interest in any entity that does business with any of the QNX Entities; (b) has any direct or indirect interest in any material property, asset or right which is material and is used by any
of the QNX Entities in the conduct of the Business; or (c) has any contractual relationship with any of the QNX Entities other than such relationships which occur from being an officer or director of any of the QNX Entities.

  

	3.34	Since the date that is 180 days prior to the date of this Agreement (a) no Material Customer or Material Supplier has ceased to do business with the QNX Entities
and (b) to the knowledge of the Sellers, no Material Customer or Material Supplier has threatened to terminate its relationship with the QNX Entities, which threat would reasonably be expected to result in such a termination.

 Intellectual Property Rights 
  

	3.35	Schedule 3.35 of the Disclosure Letter sets forth a true and accurate description, in all material respects of: (i) all the patents, filed patent applications and
draft patent applications (including provisional patent applications, utility patents, divisional patents, continuations, continuations in part, reissue, reexamination, and all similar patents and applications) throughout the world that relate to
the Owned Software or other Technology that the QNX Entities own the Intellectual Property Rights to; (ii) registered trademarks, registered trade names, registered service marks and registered copyrights and any pending applications therefor,
and domain names (including any pending applications) owned by any QNX Entity; (iii) the QNX Product Suite; and (iv) the Licensed IP other than Open Source Materials and COTS Software, provided that the QNX Entities shall not be required
to list any trade secrets. The Sellers have made available to the Buyers true, correct and complete copies in all material respects of all available invention disclosure forms of the QNX Entities that relate to the Owned IP.

  

	3.36	Except as set forth in Schedule 3.36 of the Disclosure Letter, the QNX Entities (either jointly, or any QNX Entity severally) exclusively hold all rights, title and
interest in and to the Owned IP (excluding moral rights therein) with good and marketable title thereto free and clear of all third party rights, interests or other Liens, whether contingent or otherwise, and as to the moral rights in the QNX 6
generation of the QNX Software, waivers in favour of the QNX Entities, its successors and assigns, have been provided to the QNX Entities from all relevant third Persons other than employees of contractors. 

 

 - 30 - 

	3.37	Except as set forth in Schedule 3.37 of the Disclosure Letter: 

  

	 	(a)	the Owned IP and, to the knowledge of the Sellers, the Licensed IP, includes all of the Intellectual Property Rights necessary in order to enable the Business to be
conducted substantially in the manner in which the Business is conducted on the date hereof; 

  

	 	(b)	Section 1.6 of Schedule 3.35 of the Disclosure Letter sets forth a description, in all material respects, of the Licensed IP, other than licenses of Open Source
Materials and other than licenses of COTS Software. The licenses listed in Section 1.6 of Schedule 3.35 of the Disclosure Letter are in full force and effect, no QNX Entity is in material default under any such licenses, and, to the knowledge
of the Sellers, no party to any of such licenses has exercised any termination rights with respect thereto; 

  

	 	(c)	to the knowledge of the Sellers, as of the date hereof, no QNX Entity is the subject of any pending or threatened action, suit, judgment, investigation, allegation or
proceeding, and no QNX Entity has received any written notice in the past two (2) years in the case of trademarks, service marks, trade names, indicia, logos, and domain names, and since November 30, 2004 in the case of any other
Intellectual Property Rights, in each case, that involves a claim of infringement, unauthorized use, or violation of any Intellectual Property Rights of any third Person, against any QNX Entity or that challenges the ownership or use rights by a QNX
Entity of, or the validity or enforceability of, any Intellectual Property Right, whether Owned IP or Licensed IP, in connection with the Business; 

  

	 	(d)	in the past two (2) years in the case of trademarks, service marks, trade names, indicia, logos, and domain names, and since November 30, 2004 in the case of
any other Intellectual Property Rights, no QNX Entity has made any written assertion or claim or is involved in any pending or, to the knowledge of the Sellers, threatened action, suit, judgment, investigation or proceeding alleging that any Person
has infringed, violated, misused or misappropriated any Owned IP; and 

  

	 	(e)	all of each QNX Entity’s rights in respect of all of the Owned IP consisting of patents and copyrights are valid and enforceable. 

 

	3.38	Except as listed in Schedule 3.38 of the Disclosure Letter: 

  

	 	(a)	the Owned Software does not include and is not a derivative work of any third Persons’ Technology, other than Open Source Materials, except (i) for inclusions
or derivative works that have been licensed to the QNX Entities for such use by such third Persons under their Intellectual Property Rights, or (ii) where the Intellectual Property Rights for such inclusions or derivative works have been
assigned to the QNX Entities. 

  

 - 31 - 

	 	(b)	the unregistered Names that are Owned IP and currently used by the QNX Entities in the Business are not, to the knowledge of the Sellers, owned or registered in the
name of, and the other Owned IP is not owned by or registered in the name of, any current owner other than a QNX Entity, or in the name of any former owner or current or former shareholder, partner, director, executive, officer, employee, salesman,
agent, customer, representative or contractor of any QNX Entity or other party, nor does any such person have any interest therein or right thereto, including but not limited to the right to royalty payments; 

 

	 	(c)	none of the Owned Software, the Owned IP (other than unregistered Names) or, to the knowledge of the Sellers, the conduct of the Business or the use of unregistered
Names by the QNX Entities in the Business that are Owned IP materially infringes, misuses, misappropriates or otherwise violates the Intellectual Property Rights of any Person; 

 

	 	(d)	to the knowledge of the Sellers, the Licensed IP does not infringe, misuse, misappropriate or otherwise violate the Intellectual Property Rights of any Person;

  

	 	(e)	each of the QNX Entities has the right to transfer, convey or assign to any Person without any consent of, waiver from or payment to any Person whatsoever, the full
right, title and interest of such QNX Entity in the Owned IP (other than, with respect to enforcement rights in such Owned IP, as limited by Applicable Law) including the right to assign to any Person such QNX Entity’s right to transfer, convey
or assign the Owned IP to another Person; 

  

	 	(f)	each QNX Entity has the exclusive right (subject to all formerly-granted and continuing non-exclusive rights granted to third Persons), and, to the extent permitted by
Applicable Law, has the right to grant to others such exclusive or non-exclusive right, to use, modify, create derivative works of, publish, distribute, sublicense, and otherwise fully exploit the Owned Software and the Owned IP (other than
unregistered Names) and, to the knowledge of the Sellers, to use, modify, create derivative works of, publish, distribute, sublicense, and otherwise fully exploit the unregistered Names that are Owned IP and are currently used by the QNX Entities in
the Business in order to enable the Business to be conducted substantially in the manner in which the Business is conducted on the date hereof and to obtain and defend all Intellectual Property Rights therein; and 

 

	 	(g)	none of the QNX Entities is a party to any contract or commitment or is under any obligation to pay any royalty, license or other fee with respect to the use of Owned
Software or the Owned IP. 

  

	3.39	The granting by the QNX Entities of the right or consent to author, create and own derivative works of the Owned Software or the Owned IP in the ordinary course of
business has not had and would not reasonably be expected to have a Material Adverse Effect. 

  

 - 32 - 

	3.40	Except as listed in Schedule 3.40 of the Disclosure Letter, to the knowledge of the Sellers, there is no reason to believe that the QNX Entities would be unable to
obtain issued patents for the pending patent applications listed in Schedule 3.35 of the Disclosure Letter. Except as described in Schedule 3.40 of the Disclosure Letter, or otherwise in the normal conduct of the Business, since November 30,
2004, none of the QNX Entities has taken or failed to take any action which would prejudice any registration, issuance or maintenance of the Owned IP, other than unregistered Names, including a failure to renew or to pay all necessary or required
fees. 

  

	3.41	Except as listed in Schedule 3.41 of the Disclosure Letter, to the knowledge of the Sellers, each of the QNX Entities has the right to use, sublicense, Commercialize,
register, and otherwise fully exploit the registered trademarks listed in Schedule 3.35 of the Disclosure Letter in the operation of the Business substantially in the manner in which such trademarks are used in the Business as conducted on the date
hereof. 

  

	3.42	Except as listed in Schedule 3.42 of the Disclosure Letter, the QNX Entities have the full right and authority to Commercialize the Owned Software, the Owned IP (other
than unregistered Names) and, to the knowledge of the Sellers, the Licensed IP and the unregistered Names that are Owned IP and used by the QNX Entities in the Business, substantially in the manner in which the Owned Software, Owned IP and Licensed
IP are used in the Business as conducted on the date hereof, and the transactions contemplated by this Agreement, including the direct or indirect change of control of each of the QNX Entities, will not result in the termination of any QNX
Entity’s rights, trigger any additional obligations or liabilities of any QNX Entity or otherwise adversely impact the QNX Entities’ full right and authority to Commercialize the Owned Software, the Owned IP (other than unregistered Names)
and, to the knowledge of the Sellers, the Licensed IP and the unregistered Names that are Owned IP and used by the QNX Entities in the Business (including future development of the Owned Software) substantially in the manner in which the Owned
Software, Owned IP and Licensed IP are used in the Business as conducted on the date hereof or violate the rights of any third party (including any Intellectual Property Rights or contractual rights, including any rights of exclusivity) by
Commercializing the Owned Software or the Owned IP (other than unregistered Names) or, to the knowledge of the Sellers, by Commercializing the Licensed IP or the unregistered Names that are Owned IP and used by the QNX Entities in the Business,
substantially in the manner in which the Owned Software, Owned IP and Licensed IP are used in the Business as conducted on the date hereof. 

  

	3.43	Except as listed in Schedule 3.43 of the Disclosure Letter, the Owned Software and, to the knowledge of the Sellers, the Licensed IP and the use, copying, development,
publication, Commercialization, or other exploitation of the Owned Software, the Owned IP and, to the knowledge of the Sellers, the Licensed IP by the QNX Entities in the operation of the Business as conducted on the date hereof do not materially
violate or infringe or constitute a misappropriation or misuse of the Intellectual Property Rights of any Person. 

  

	3.44	 Except as listed in Schedule 3.44 of the Disclosure Letter, to the knowledge of the Sellers, the QNX Entities do not use, incorporate, include, or
reference any registered 

  

 - 33 - 

	 	
third party trademarks, trade-names, indicia, logos, designs, service marks, and/or slogans in connection with the operation of the QNX Software or the Commercialization of the Company IP in the
operation of the Business as conducted on the date hereof, in a manner that materially violates or infringes or constitutes a material misappropriation, misuse or dilution of the Intellectual Property Rights of any Person. 

 

	3.45	Except as listed in Schedule 3.45 of the Disclosure Letter, to the knowledge of the Sellers there is no claim, allegation, notice, demand, or statement of claim, or any
other proceeding, dispute or action related to any revenues owing to any of the QNX Entities or related to the Commercialization of any Company IP by the QNX Entities that, individually or in the aggregate, would reasonably be expected to have a
Material Adverse Effect. 

  

	3.46	Except as listed in Schedule 3.46 of the Disclosure Letter, since November 30, 2004 none of the QNX Entities has received any offers or invitations from a third
party to obtain a license to such third party’s Intellectual Property Rights, other than Intellectual Property Rights in trademarks, trade names, indicia, logos or domain names, for use in or with the Owned Software, in which such offer or
invitation the third party claims that the absence of such license will violate its Intellectual Property Rights. 

  

	3.47	Except as set forth in Schedule 3.47 of the Disclosure Letter, to the knowledge of the Sellers, in the past three (3) years in the case of trademarks, service
marks, trade names, indicia, logos, and domain names, and since November 30, 2004 for all other Intellectual Property Rights, no Person has materially infringed, misused or misappropriated Owned IP, and no Person is materially infringing,
misusing or misappropriating Owned IP. 

  

	3.48	Except as listed in Schedule 3.48 of the Disclosure Letter, none of the QNX Entities is obligated to provide, and has not entered into any other agreements or
transactions that are conditional upon providing, future enhancements, features not presently available on, or other enhancements in respect of its Software or other product of the QNX Entities in each case with a value in excess of $500,000.

  

	3.49	The QNX Entities have made available to the Buyers copies of (i) all current design plans that have received at least Gate 0 approval, and (ii) all current
error logs with respect to the current release of the QNX 6 generation of the QNX Software. 

  

	3.50	 Except as listed in Schedule 3.50 of the Disclosure Letter, each Developer who became an employee of any QNX Entity after November 30, 2004, and
each employer of Developers who are not QNX Employees who has entered into an agreement with any QNX Entity after November 30, 2004 (a) has executed an agreement containing non-disclosure and confidentiality obligations prior to providing
services to any of the QNX Entities and has, in the case of any Developer who is an employee of any QNX Entity, irrevocably waived in writing his or her respective moral rights in and to the Owned Software and, in the case of any employer of
Developers who are not QNX employees, has agreed to obtain such waivers of its employees’ respective moral rights in and to the Owned Software; and (b) was either (i) a full-time employee of a QNX Entity employed as a software
programmer and was not employed by any third party, who did not 

  

 - 34 - 

	 	
incorporate any previously existing work product or other materials proprietary to the Developers or any third party (except pursuant to a license with a QNX Entity permitting same) and who
validly assigned his or her Intellectual Property Rights (and assigned or waived all related rights) in the Owned Software to the QNX Entities pursuant to a written and signed agreement, or (ii) a contractor who assigned its Intellectual
Property Rights in the Owned Software to the QNX Entities pursuant to a written agreement, and to the knowledge of the Sellers no further consent, assignment or other action is required for the employees’ or contractors’ Intellectual
Property Rights to be assigned to, transferred to, or otherwise fully vested in the QNX Entities. 

  

	3.51	The Disclosure Letter accurately describes in: 

  

	 	(a)	Schedule 3.51(a), all QNX Software that the QNX Entities have decided to, and have been authorized to, distribute and license for business reasons as Open Source
Materials; and 

  

	 	(b)	Schedule 3.51(b), all Open Source Materials incorporated into, integrated or combined with, or distributed in conjunction or for use with, the QNX 6 generation of the
QNX Software; 

 and for each such use of Open Source Materials sets forth: (x) the applicable component of
the QNX Software; (y) the name of the applicable license, which may be incorporated by reference using an Internet link where applicable; and (z) to the extent known by the QNX Entities, the copyright notice of the Open Source Materials.

  

	3.52	To the knowledge of the Sellers, all use, modification, distribution and licensing by the QNX Entities of Open Source Materials has been done in all material respects
accordance with the terms of the applicable license(s) for such Open Source Materials, and, except as disclosed on Schedule 3.52 of the Disclosure Letter, no such use, modification, distribution or licensing will make the Owned Software or the Owned
IP (or any material portion thereof) subject to a license for Open Source Materials (including claims of infringement in connection with such license), or subject to Reciprocal Requirements, or otherwise result in a material loss or impairment of
any of the QNX Entities’ rights to Commercialize the Owned Software or the Owned IP in substantially the manner in which the Owned Software and the Owned IP are used in the Business as conducted on the date hereof. 

 

	3.53	Except as listed in Schedule 3.53 of the Disclosure Letter: 

  

	 	(a)	Except to the extent derived from the Licensed IP as duly authorized pursuant to a relevant and valid license relating to the Licensed IP, the QNX Software neither
contains nor embodies nor uses any third party Technology (including development tools and utilities) or Licensed IP in a manner that would materially infringe any third Person’s Intellectual Property Rights; and 

 

	 	(b)	the Owned Software and, to the knowledge of the Sellers, the Software licensed as Licensed IP contain all material Technology, other than Open Source Materials and COTS
Software, necessary to continue to Commercialize and maintain the QNX Software in order to enable the Business to be conducted substantially in the manner in which the Business is conducted on the date hereof. 

 

 - 35 - 

	3.54	Except as disclosed in Schedule 3.54 of the Disclosure Letter, to the knowledge of the Sellers none of the Licensed IP or Open Source Materials create any obligations
that would require the Owned IP or the Owned Software to be licensed to or licensed back to any third party in a manner that would materially detract from the Commercialization of the Owned Software or the Owned IP. 

 

	3.55	Except as disclosed in Schedule 3.55 of the Disclosure Letter, object code versions of the QNX Software have been provided by the QNX Entities to customers only
pursuant to written license agreements with the QNX Entities. 

  

	3.56	Since November 30, 2004, except as listed in Schedule 3.56 of the Disclosure Letter: (a) all customers of the QNX Entities with installed QNX Software and, to
the knowledge of the Sellers, all commercial end user customers of the QNX Entities with installed QNX Software, have accepted and have not rejected such Software; and (b) there are no outstanding or disputed claims against any QNX Entity by
any customer of the QNX Entities with installed QNX Software or, to the knowledge of the Sellers, by any end user with installed QNX Software. 

  

	3.57	Schedule 3.57 of the Disclosure Letter sets forth a description of all Published Source Code that is true and complete in all material respects. Except as listed in
Schedule 3.57 of the Disclosure Letter, none of the Unpublished Source Code for any QNX Software has been delivered or made available to any Person other than a Related Party and the QNX Entities have not agreed to or undertaken to or in any other
way promised to provide such Unpublished Source Code to any such Person. Each Person identified in Schedule 3.57 of the Disclosure Letter, including any subcontractor of any QNX Entity, is subject to non-disclosure and confidentiality obligations
that will not be affected by any direct or indirect change of control of any of the QNX Entities. 

  

	3.58	Except as listed in Schedule 3.58 of the Disclosure Letter, there are no customers, distributors or any other Persons: (a) entitled to be or that have been
enrolled as a beneficiary under a technology escrow or other similar arrangement with respect to the Source Code versions of any QNX Software; or (b) except pursuant to the terms of use posted on the Internet website http://www.foundry27.com, a
true and correct copy of which is included in Schedule 3.58 of the Disclosure Letter, or to a license agreement consistent with industry standards in the embedded software marketplace for the distribution of proprietary software with a QNX Entity
with respect to Published Source Code only, entitled to receive or have received more than an insignificant amount of the Source Code versions of any QNX Software or any material benefits or entitlements of any kind or nature in respect thereof or
related thereto (including receiving such Source Code versions of any QNX Software as a result of an event (including a direct or indirect change of control of any of the QNX Entities, bankruptcy of any of the QNX Entities, failure to provide
support or maintenance, or fulfillment of other conditions), upon request or otherwise) under an escrow arrangement. 

  

 - 36 - 

	3.59	Except as set out in Schedule 3.59 of the Disclosure Letter, no third Person shall become entitled to any portion of the Unpublished Source Code or any additional
Intellectual Property Rights of any of the QNX Entities solely as a result of this Agreement or the other transactions contemplated by this Agreement. 

  

	3.60	Except as listed in Schedule 3.60 of the Disclosure Letter, no distributors, sales agents, representatives or other persons, including any VAR or OEM resellers
identified in Schedule 3.61 of the Disclosure Letter: (a) have the right to use, market, sublicense or support any QNX Software on an exclusive basis, or (b) are entitled to any payment on termination, expiration or failure to renew such
agreement pursuant to any contract. 

  

	3.61	Schedule 3.61 of the Disclosure Letter lists all material licenses and reseller, distribution, maintenance, support, development and services agreements and all other
agreements, in each case to the extent executed in writing or in standard form (in the case of standard-form contracts that do not permit negotiation), between any of the QNX Entities and users of QNX Software, copies of each of which have been made
available to the Buyers. 

  

	3.62	None of the QNX Entities is in material breach of any of its obligations under the agreements listed in Schedule 3.61 of the Disclosure Letter.

  

	3.63	Schedule 3.63 of the Disclosure Letter is a complete, true and accurate list of all the critical issues relating to the current release of the QNX 6 generation of the
QNX Software as of the date hereof in the reasonable judgment of the persons listed on such Schedule. Except as indicated in Schedule 3.63 of the Disclosure Letter, the QNX Entities have fully resolved all such critical issues in all material
respects. 

  

	3.64	Since November 30, 2004 no material custom Software code developed for any third party, pursuant to a services engagement or installation of Software, has been
incorporated into the QNX Software, except in cases where the Intellectual Property Rights for such custom Software code have been retained by or assigned to the QNX Entities and where any underlying background Intellectual Property Rights in the
Technology have been licensed to the QNX Entities for such use. 

  

	3.65	With respect to the QNX 6 generation of the QNX Software (and, in the case of clause (c) below, solely with respect to the current release of the QNX 6 generation
of the QNX Software): 

  

	 	(a)	the QNX Entities maintain machine readable master-reproducible copies, Source Materials, technical documentation and user manuals for the most current releases or
versions of such Software and for all earlier releases or versions of such Software currently being supported by the QNX Entities; 

  

	 	(b)	in each case, the machine-readable copy of such Software identified in Exhibit 4(A) of Schedule 3.35 of the Disclosure Letter compiles from the corresponding Source
Code; and 

  

	 	(c)	 Except as set forth in error logs made available to Buyers, including the critical issues list in Schedule 3.63 of the Disclosure Letter, such
Software, when used in 

  

 - 37 - 

	 	
accordance with the associated documentation (including but not limited to developer documentation, applicable reference specifications, read-me files, installation notes, release notes and
customer bulletins) on a “Reference Platform” identified in Exhibit 4(C) of Schedule 3.35, operates substantially in accordance with such documentation without material operating defects. 

 

	3.66	Since November 30, 2004, except as listed in Schedule 3.66 of the Disclosure Letter, all current and former customers and end users of the QNX Entities have
received the QNX Software pursuant to end user license terms consistent with industry standards in the embedded software marketplace for the distribution of proprietary software applicable to such Owned Software substantially the same as set forth
in Schedule 3.66 of the Disclosure Letter (the “EULA”). 

  

	3.67	All United States government customers and all end users of the QNX Entities listed in Schedule 3.67 of the Disclosure Letter since November 30, 2004, have been
provided notice that the QNX Software is a “commercial item,” as that term is defined in 48 C.F.R. 2.101 (Oct. 1995), consisting of “commercial computer software” and “commercial computer software documentation,” as
such terms are used in 48 C.F.R. 12.212 (Sept. 1995), and is subject to the restrictions of United States Federal Acquisition Regulations (“FAR”) 12.212(a) (1995), 52.227-19 and 52.227-14 (ALT III) and Defense Federal Acquisition
Regulation Supplement (“DFARS”) 227.7202-1(a) and 227.7202-3(a) (1995) and 252.227-7013(c)(1)(ii) (OCT 1988), as applicable, or notice of similar effect. 

 

	3.68	Each of the QNX Entities has in all material respects adequately maintained all trade secret rights in, and has adequately maintained the confidentiality of, the
Unpublished Source Code. 

  

	3.69	None of the QNX Entities has materially breached any non-disclosure or confidentiality agreement with respect to Intellectual Property Rights between any of the QNX
Entities and any third Person and, to the knowledge of the Sellers, no third Person has breached any non-disclosure or confidentiality agreement with respect to Intellectual Property Rights between any of the QNX Entities and any third Person.

  

	3.70	Except as set out in Schedule 3.70 of the Disclosure Letter, no (a) government funding or (b) facilities of a university, college, other educational
institution, or research center were used in the development of the Owned Software or the Owned IP. 

  

	3.71	 None of the QNX Entities has taken any action or made any omission in material violation of any Applicable Laws governing imports into or exports from
Canada or the United States, or relating to economic sanctions or embargoes, including the Customs Act (Canada), the Customs Tariff Act (Canada), the Export and Import Permits Act (Canada), the United Nations Act
(Canada), the Special Economic Measures Act (Canada), the United States Export Administration Regulations and the Arms Export Control Act (United States) or any regulation, order, ruling, decision, judgment, injunction or decree
of any Canadian or U.S. Governmental Authority issued pursuant thereto. Except as set forth in Schedule 3.71 of the Disclosure Letter, to the knowledge of the Sellers, none of the QNX Entities has taken any action or made any omission in material
violation of any 

  

 - 38 - 

	 	
Applicable Laws governing imports into or exports from any country other than Canada or the United States, or relating to economic sanctions or embargoes under the Laws of any country other than
Canada or the United States, or any regulation, order, ruling, decision, judgment, injunction or decree of any Governmental Authority issued pursuant thereto. 

 

	3.72	Except as set forth in Schedule 3.72 of the Disclosure Letter, all permits, exemptions, or licenses required of the QNX Entities to import, use and distribute the
QNX Software have been obtained for Canada and the United States and, to the knowledge of the Sellers, for all other countries to or in which any of the QNX Entities currently sells or distributes such Software. 

 

	3.73	None of the QNX Software constitutes U.S.-origin technology pursuant to the Export Administration Regulations of the United States of America. 

Taxes 
  

	3.74	Except as would not have or reasonably be expected to have a Material Adverse Effect, and except as disclosed in Schedule 3.74 of the Disclosure Letter, each of the QNX
Entities has duly filed in a timely manner all Tax Returns with the appropriate Tax Authority with which it is required to file under any Applicable Laws and has duly completed and has correctly reported all income and other amounts and information
required to be reported thereon and all such Tax Returns are complete and correct and have been prepared in compliance with all Applicable Laws. 

  

	3.75	Except as would not have or reasonably be expected to have a Material Adverse Effect, and except as disclosed in Schedule 3.75 of the Disclosure Letter, each of the QNX
Entities has duly and timely paid all Taxes due and owing by it (whether or not such Taxes are shown or required to be shown on a Tax Return) including all installments or estimated payments on account of Taxes for the current year that are due and
payable by it and has duly and timely withheld from any amount paid or credited by it to or for the account or benefit of any Person, including any employee, shareholder, creditor, non-resident person or other third party, the amount of all Taxes
required by any Applicable Laws to be withheld from any such amount and has duly and timely remitted the same to the appropriate Governmental Authority. 

  

	3.76	Except as would not have or reasonably be expected to have a Material Adverse Effect, none of the QNX Entities has requested or entered into any agreement or other
arrangement or executed any waiver providing for any extension of time: (a) within which to file any Tax Return covering any Taxes for which it may be liable; (b) to file any elections, designations or similar filings relating to Taxes for
which it is or may be liable; (c) within which such QNX Entity is required to pay or remit any Taxes or amounts on account of Taxes; or (d) within which any Tax Authority may assess or collect Taxes for which such QNX Entity is or may be
liable. 

  

	3.77	 Except as disclosed in Schedule 3.77 of the Disclosure Letter, and except as would not have or reasonably be expected to have a Material Adverse
Effect, there are no actions, 

  

 - 39 - 

	 	
suits, proceedings, investigations, audits or claims now pending or threatened in writing, against any of the QNX Entities in respect of any Taxes and there are no matters under discussion, audit
or appeal with any Tax Authority relating to Taxes. 

  

	3.78	Except as would not have or reasonably be expected to have a Material Adverse Effect, no claim has been made in the past three (3) years by a Tax Authority in a
jurisdiction where the QNX Entities did not file Tax Returns that any QNX Entity is or may be subject to Taxes assessed by such jurisdiction or a filing requirement in that jurisdiction. 

 

	3.79	Except as would not have or reasonably be expected to have a Material Adverse Effect, none of the QNX Entities is a party to or bound by any Tax allocation or Tax
sharing agreement that will survive, with respect to such QNX Entity, the Closing. 

  

	3.80	Except as would not have or reasonably be expected to have a Material Adverse Effect, there are no Liens for Taxes (other than Permitted Liens) upon the assets of any
of the QNX Entities. 

  

	3.81	Except as disclosed in Schedule 3.81 of the Disclosure Letter, all material transactions between each QNX Entity that is a tax resident of the United States, Canada,
Germany or Japan and any non-resident person resident in the United States, Canada, Germany, or Japan with whom it was not dealing at arm’s length were conducted at arm’s length prices under the Applicable Laws of the United States,
Canada, Germany or Japan, as the case may be, and each QNX Entity has made or obtained records or documents supporting these prices sufficient to meet all Applicable Laws of the United States, Canada, Germany or Japan, as the case may be.

  

	3.82	Except as would not have or reasonably be expected to have a Material Adverse Effect, none of the QNX Entities has any Liability for Taxes of another person (other than
any Liability for Taxes of Parent or any of its subsidiaries (including the QNX Entities) under Treasury Regulations Section 1.1502-6 or any comparable rule of State, local or foreign law) (a) as a successor or transferee or (b) under
any contract or indemnity. 

  

	3.83	Except as listed in Schedule 3.83 of the Disclosure Letter, and except as would not have or reasonably be expected to have a Material Adverse Effect, each of the QNX
Entities has charged, collected and remitted on a timely basis all Taxes as required under applicable legislation to be charged, collected or remitted by it, on any sale, supply or delivery whatsoever, made by such QNX Entity.

  

	3.84	Except as would not have or reasonably be expected to have a Material Adverse Effect, none of Sections 78, 80, 80.01, 80.02, 80.03 or 80.04 of the Tax Act, or
any equivalent provision of the Tax legislation of any Canadian province, have applied or will apply with respect to any of the QNX Entities at any time up to and including the Closing Date. 

 

	3.85	 At no time during the period that ends at the Closing Time and begins 60 months prior to the Closing Date have either the QSSC Shares or the Wavemaker
Shares (or any shares of any predecessor companies) derived (nor will they derive between the date hereof and the Closing Date) more than 50% of their fair market value directly or indirectly from one or any combination of: (a) real or
immovable property situated in Canada, 

  

 - 40 - 

	 	
(b) Canadian resource properties, (c) timber resource properties, and (d) options in respect of, or interests in, or, for civil law purposes, rights in, property described in any
of clauses (a) to (c) of this Section 3.85, whether or not the property exists, (all within the meaning of and for purposes of the Tax Act). 

 

	3.86	Notwithstanding any other provision, it is agreed and understood that (a) the only representations and warranties of the Sellers relating to Taxes are the
representations and warranties contained in Sections 3.74 to 3.85 (the “Tax Representations”) and (b) Sellers do not make any representations and warranties as to the amount, quality or nature of Tax basis, net operating
loss, credits, earnings and profits or other Tax Assets or benefits that may exist at any time in or with respect to the QNX Entities, and shall not be required under any provision of this Agreement to be responsible for, pay or cause to be paid in
respect of, indemnify for or hold any person harmless against the absence or loss thereof. 

 Employees, Employee Benefits and
Independent Contractors 
  

	3.87	Sellers have provided the Buyers with a true and complete, in all material respects, list of (a) the names, job titles, length of service, annual base salary or
hourly wage rate, commission or bonus entitlements (if any), place of employment, legal employer, and annual vacation accrual of all Employees as of the date hereof; (b) whether any such Employees are, as of March 15, 2010, on an approved
or statutory leave of absence, and if so, the reason for such absence and expected date of return; and (c) all material employee handbooks and/or other manuals relating to such Employees, true and complete copies of which have been made
available to the Buyers. 

  

	3.88	Schedule 3.88 of the Disclosure Letter lists each material Benefit Arrangement that is not a QNX Benefit Arrangement that covers any Employee and each QNX Benefit
Arrangement and true and complete copies (or, with respect to Benefit Arrangements in the United States, descriptions) of each such Benefit Arrangement and QNX Benefit Arrangement have been made available to the Buyers. Schedule 3.88 of the
Disclosure Letter separately identifies each Benefit Arrangement that is sponsored or maintained directly by the QNX Entities, or with respect to which the QNX Entities would reasonably be expected to have material post-Closing Date liability (each,
a “QNX Benefit Arrangement”). Notwithstanding the foregoing, Schedule 3.88 of the Disclosure Letter does not list individual employment agreements of Employees employed outside the United States, true and complete copies in all
material respects of which have been made available to the Buyers. 

  

	3.89	With respect to the Employees and the former employees of each of the QNX Entities, there are no employee post-employment life insurance, medical or health plans in
effect and no Benefit Arrangement provides health and medical benefits after termination of employment except as required by Applicable Law, in all cases, other than post-termination coverage for periods of less than three (3) years pursuant to
employment agreements, severance programs, or COBRA (or similar non-US regulatory scheme) requirements, except as set forth on Schedule 3.89 of the Disclosure Letter. 

 

 - 41 - 

	3.90	All contributions and payments required to have been paid under each QNX Benefit Arrangement (including contributions and payments required to have been paid by Parent
or its Affiliates), have been paid. Except as set out in Schedule 3.90 of the Disclosure Letter, there has been no material (i) amendment to, (ii) written interpretation of, (iii) announcement (whether or not written) by any of the
QNX Entities relating to, or (iv) change in employee participation or coverage under, any QNX Benefit Arrangement that would reasonably be expected to increase materially the expense of maintaining such QNX Benefit Arrangement above the level of the
expense incurred in respect thereof for the fiscal year ended prior to the date hereof. 

  

	3.91	No Employee will become entitled to any bonus, retirement, change of control payment, severance or similar benefit or enhanced benefit as a result of the transactions
contemplated by this Agreement or the Transaction Documents. 

  

	3.92	To the knowledge of the Sellers, each QNX Benefit Arrangement has been administered in all material respects in accordance with its terms and each of the QNX Entities
and Parent and its Affiliates (other than the QNX Entities), as applicable, have in all material respects met their obligations with respect to each QNX Benefit Arrangement and made all required contributions thereto. To the knowledge of the
Sellers, each QNX Benefit Arrangement is in material compliance with all Applicable Laws. Except as would not reasonably be expected to result in material liability to the QNX Entities, all filings and reports as to each QNX Benefit Arrangement
required to have been submitted to any Governmental Authority have been submitted on or before their due date (including extensions). To the knowledge of Sellers, each QNX Benefit Arrangement is exempt from or in compliance with Section 409A of
the Code. 

  

	3.93	To the knowledge of Sellers, no act or omission has occurred and no condition exists with respect to any QNX Benefit Arrangement that would reasonably be expected to
subject any of the QNX Entities to (i) any material fine or penalty, (ii) any material contractual indemnification or contribution obligation protecting any fiduciary, insurer or service provider with respect to any QNX Benefit
Arrangement, or (iii) that would constitute a prohibited transaction that would subject the QNX Entities to an excise tax under Section 4975 of the Code. 

 

	3.94	Each of the QNX Entities is in material compliance and has materially complied with all other Applicable Laws in relation to the employment or engagement of all
Employees and consultants of each QNX Entity, as applicable, including work visas and immigration laws and regulations. 

  

	3.95	None of the QNX Entities: 

  

	 	(a)	is a party to any collective bargaining agreement, contract or legally binding commitment to any trade union or employee organization or group in respect of or
affecting Employees; 

  

	 	(b)	is currently engaged in any collective labour negotiation; 

  

 - 42 - 

	 	(c)	is a party to any material application, complaint or other material proceeding under any statute related to collective bargaining agreements; 

 

	 	(d)	has, since June 30, 2008, experienced any material strikes, grievances, claims of unfair labour practices or similar disputes in connection with any Employee; or

  

	 	(e)	has, since June 30, 2008, engaged in any material labour practice that has been determined to be “unfair” or otherwise in contravention of Applicable
Laws and none of the QNX Entities is aware of any pending or threatened complaint regarding any alleged unfair labour practices. 

Related Party Arrangements 
  

	3.96	No officer or director of any QNX Entity or, to the knowledge of the Sellers, any immediate family member or Affiliate of any officer or director of any QNX Entity is a
party to any agreement (whether oral or written) with the QNX Entities, other than employment, benefit, indemnification or other agreements entered into in connection with such officer’s or director’s position as a director or officer of a
QNX Entity. 

 Real or Immovable Property 
  

	3.97	Schedule 3.97 of the Disclosure Letter contains the municipal address of all Owned Real Property, together with the name of the QNX Entity that is the owner thereof.
QSSC has good and marketable title in fee simple to, and is the beneficial owner of, the Owned Real Property and the QNX Entities have the right to use or occupy all Leased Real Property pursuant to a lease, sublease, license or other agreement, in
each case free and clear of all Liens, except for Permitted Liens. 

  

	3.98	Schedule 3.98 of the Disclosure Letter contains the municipal address of all Leased Real Property, together with the name of the QNX Entity that is the tenant thereof.

  

	3.99	Correct and complete copies, in all material respects, of the Leases disclosed in Schedule 3.98 of the Disclosure Letter have been made available to the Buyers.

  

	3.100	The buildings and other structures located on the Owned Real Property and the operation and maintenance thereof, as now operated and maintained, comply in all material
respects with Applicable Laws; and such buildings and other structures are generally in good operating condition and in a state of good maintenance and repair, ordinary wear and tear excepted; none of such buildings or other structures encroaches
upon any land not owned or leased by a QNX Entity in a manner which materially impairs the use of such real property for the purpose for which it is presently being used or materially impairs the ordinary conduct of the Business; and there are no
restrictive covenants or other Applicable Laws which materially restrict or prohibit the use of the Owned Real Property or the buildings or structures located thereon for the purposes for which they are presently being used or materially impair the
ordinary conduct of the Business, other than Permitted Liens. 

  

 - 43 - 

	3.101	The Premises which are the subject of the Leases and the operation and maintenance of such Premises, as now operated and maintained, comply in all material respects
with Applicable Laws; and such Premises are generally in good operating condition and in a state of good maintenance and repair, ordinary wear and tear excepted. 

 

	3.102	To the knowledge of the Sellers, all Leases for the Leased Real Property under which any of the QNX Entities is a lessee or sublessee are in full force and effect and
are enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, moratorium and other similar laws relating to or affecting creditors’ rights generally, and the fact that equitable remedies, including the remedies
of specific performance and injunction, may only be granted in the discretion of a court of competent jurisdiction. There are no expropriation or similar proceedings, actual or threatened, of which the Sellers or any of the QNX Entities have
received written notice against the Owned Real Property or the Leased Real Property, or any part thereof. 

 Environmental 

  

	3.103	Except as disclosed on Schedule 3.103 of the Disclosure Letter, and except for any matters that have not and would not reasonably be expected to have a Material Adverse
Effect, the Business, property and assets of the QNX Entities are in compliance with all Environmental Laws and, to the knowledge of the Sellers, there does not exist any fact or facts that would give rise to non-compliance with any Environmental
Law that would reasonably be expected to have a Material Adverse Effect. 

  

	3.104	There are no Permits under any Environmental Law that are necessary for the conduct of the Business as currently conducted, except such licenses, permits, registrations
or approvals the absence of which has not had or would not reasonably be expected to have a Material Adverse Effect (collectively, “Environmental Permits”). Each Environmental Permit is valid and in full force and effect, except for
such failures to be valid and in full force and effect as have not had or would not reasonably be expected to have a Material Adverse Effect. 

  

	3.105	None of the QNX Entities has used any of the Owned Real Property or the Leased Real Property, or permitted such Owned Real Property or the Leased Real Property, to be
used to generate, manufacture, refine, treat, transport, store, handle, dispose, transfer, produce, process or Release any Hazardous Substance in violation of any Environmental Laws, except for such violations as have not and would not reasonably be
expected to have a Material Adverse Effect. To the knowledge of the Sellers, the Owned Real Property and the Leased Real Property, for so long as they have been owned or leased by the QNX Entities, have not been used for or been designated as a
waste disposal site. To the knowledge of the Sellers, since the later of (x) November 30, 2004 and (y) the date on which the Sellers commenced occupancy, to the date hereof there has been no Release of any Hazardous Substance in violation
of any Environmental Laws to any of the Owned Real Property or Leased Real Property that has had or would reasonably be expected to have a Material Adverse Effect. 

 

 - 44 - 

	3.106	Since November 30, 2004 to the date hereof, none of the QNX Entities has been convicted of an offence or been subjected to any judgment, injunction or other
proceeding or been fined or otherwise sentenced for non-compliance with any Environmental Laws, and none of the QNX Entities has settled any prosecution or other proceeding short of conviction in connection therewith. 

 

	3.107	Except as set forth on Schedule 3.107 of the Disclosure Letter, to the knowledge of the Sellers, there are no conditions that directly or indirectly relate to the soil,
the groundwater or indoor air quality at, on, in or below the Owned Real Property that would adversely affect the QNX Entities, taken as a whole, in a material manner. 

Compliance with Laws, Money Laundering and Corrupt Practices 
  

	3.108	Except as set forth on Schedule 3.108 of the Disclosure Letter, each of the QNX Entities is in material compliance with all Applicable Laws, including Applicable
Privacy Laws, except for such noncompliance the existence of which has not had, or would not reasonably be expected to have, a Material Adverse Effect. 

  

	3.109	Since November 30, 2004, the operations of the QNX Entities have been conducted in all material respects in compliance with financial record-keeping and reporting
requirements of the Proceeds of Crime (Money Laundering) and Terrorism Financing Act (Canada), and Sellers have instituted and maintain policies and procedures reasonably designed to ensure such continued compliance with such law.

  

	3.110	Since November 30, 2004, the QNX Entities have not made any payment and, to the knowledge of the Sellers, no officer, director or employee of any of the QNX
Entities has made any payment on behalf of any of the QNX Entities in violation of the Corruption of Foreign Public Officials Act (Canada) and the Foreign Corrupt Practices Act (U.S.), and Sellers have instituted and maintain policies
and procedures reasonably designed to ensure continued compliance with such laws, and the said policies and procedures have been implemented by the Sellers with respect to the QNX Entities. 

Miscellaneous 
  

	3.111	To the knowledge of the Sellers, no representation or warranty of any of the QNX Entities contained in this Agreement, and no statement contained in the Disclosure
Letter or any certificate provided to the Buyers pursuant to this Agreement, contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein not misleading. All
responses by the Sellers and the QNX Entities to the Buyers’ inquiries concerning the Business and the QNX Entities during Buyer’s due diligence investigation have been made in good faith with no intent to mislead the Buyers. The Sellers
and the QNX Entities have not withheld from the Buyers any material facts existing as of the date hereof concerning any of the QNX Entities or their respective assets or liabilities during the Buyer’s due diligence investigation with the intent
of misleading the Buyers for the purpose of inducing the Buyers to enter into this Agreement and consummate the transactions contemplated herein. To the knowledge of the Sellers, all documents delivered to the Buyers or made available to the Buyers
in the electronic dataroom maintained by the Sellers are true, accurate and complete copies in all material respects of the documents they purport to be. 

  

 - 45 - 

 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF THE BUYERS 

AND THE GUARANTOR 
 Each
of the Buyers and the Guarantor hereby jointly and severally represents and warrants to the Sellers that: 
  

	4.1	Organization and Existence. Each of the Buyers and the Guarantor is a corporation duly incorporated and validly existing under the laws of its jurisdiction of
incorporation. 

  

	4.2	Corporate Authorization. Each of the Buyers and the Guarantor has all requisite corporate power, authority and capacity to enter into and perform its obligations
under this Agreement and each of the Transaction Documents to which it is a party. The execution, delivery and performance of this Agreement and the Transaction Documents and the completion of the transactions contemplated by this Agreement and the
Transaction Documents have been duly and validly authorized by all necessary corporate action on the part of each of the Buyers and the Guarantor and no other corporate or shareholder approvals are required on the part of any of the Buyers or the
Guarantor to authorize this Agreement or the Transaction Documents or to consummate the transactions contemplated by this Agreement or the Transaction Documents. 

 

	4.3	Enforceability. This Agreement has been duly executed and delivered by each of the Buyers and the Guarantor and constitutes a legal, valid and binding obligation
of each of the Buyers and the Guarantor, enforceable against each of the Buyers and the Guarantor in accordance with its terms, subject to bankruptcy, insolvency, moratorium and other similar laws relating to or affecting creditors’ rights
generally, and the fact that equitable remedies, including the remedies of specific performance and injunction, may only be granted in the discretion of a court of competent jurisdiction. At the Closing Time, each of the Transaction Documents to
which a Buyer or the Guarantor is a party will be duly executed and delivered by such Buyer or Guarantor and will constitute, when executed, a legal, valid and binding obligation of such Buyer or the Guarantor, enforceable against such Buyer or the
Guarantor in accordance with its terms, subject to bankruptcy, insolvency, moratorium and other similar laws relating to or affecting creditors’ rights generally, and the fact that equitable remedies, including the remedies of specific
performance and injunction, may only be granted in the discretion of a court of competent jurisdiction. 

  

	4.4	 Non-Contravention. The execution, delivery and performance of this Agreement and each of the Transaction Documents, and the consummation of the
transactions contemplated by this Agreement and the Transaction Documents, do not and will not: (a) conflict with, violate or result in a breach of, any of the provisions of the certificate of incorporation, articles of incorporation or by-laws
of the Buyers or the Guarantor, or (b) contravene or result in a violation of (i) any Applicable Law or (ii) any agreement to 

 

 - 46 - 

	 	
which the Buyers or the Guarantors is a party, in each case in respect of this clause (B), that would prevent or significantly impede the purchase of the Shares by the Buyers or the completion of
the other transactions contemplated by this Agreement and the Transaction Documents. 

  

	4.5	Consents and Approvals. Except for CFIUS Approval and Competition Act Approval, no consent, waiver, authorization or approval of, or notice or declaration
to, or filing or registration with, any Governmental Authority or other Person is required by any of the Buyers or the Guarantor in connection with the execution, delivery and performance of this Agreement or the Transaction Documents or the
consummation of the transactions contemplated by this Agreement or the Transaction Documents. 

  

	4.6	Absence of Restraints; Compliance with Laws. 

  

	 	(a)	To the knowledge of the Buyers and the Guarantor, there exist no facts or circumstances relating to the Buyers or the Guarantor (except for the consents, waivers,
authorizations, approvals, filings and registrations contemplated by Section 3.7) that would reasonably be expected to materially impair or delay the ability of any of the Buyers or the Guarantor to consummate the transactions contemplated by,
or to perform its obligations under, this Agreement and the Transaction Documents. 

  

	 	(b)	Each of the Buyers and the Guarantor are in material compliance with all Applicable Laws, except for such noncompliance the existence of which would not reasonably be
expected to materially impair or delay the ability of any of the Buyers or the Guarantor to consummate the transactions contemplated by, or to perform its obligations under, this Agreement and the Transaction Documents. 

 

	4.7	Securities Matters. The Shares are being acquired by the Buyers for their own account, and not with a view to, or for the offer or sale in connection with, any
public distribution or sale of the Shares or any interest in them. The Buyers have sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of its investment in the Shares, and the Buyers
are capable of bearing the economic risks of such investment, including a complete loss of their investment in the Shares. The Buyers acknowledge that the Shares have not been registered under any United States, Canadian or other federal, state or
provincial securities Laws, and understand and agree that they may not sell or dispose of any of the Shares except pursuant to a registered offering in compliance with, or in a transaction exempt from, the registration requirements of the United
States Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder and in compliance with applicable federal, state or provincial securities Laws. The Buyers acknowledge and agree that they (a) have had an
opportunity to discuss the business and affairs of the QNX Entities with the Sellers and the management of the Companies, and (b) have had reasonable access to (i) the books and records of the QNX Entities made available to them and
(ii) the electronic dataroom maintained by the Sellers for purposes of the transactions contemplated by this Agreement (without acknowledging that such books and records or any of the materials in such electronic dataroom are complete and
accurate). 

  

 - 47 - 

	4.8	Financial Ability. On the date hereof and on the Closing Date, the Buyers have and will have funds on hand sufficient to pay the Purchase Price and otherwise to
consummate the transactions contemplated hereby and by the other Transaction Documents. 

  

	4.9	No Brokers or Finders. Neither the Guarantor, any of the Buyers nor any of their Affiliates has engaged any broker, finder or other such intermediary, and has
not acted in such capacity, in connection with the sale of the Shares and the transactions contemplated by this Agreement and neither the Guarantor, any of the Buyers nor any of their Affiliates is under any obligation to pay, or is entitled to
receive, any broker or finder fee, commission or similar payment in connection with such transactions. 

ARTICLE V 

COVENANTS 
  

	5.1	Reasonable Efforts. Subject to the terms and conditions of this Agreement and subject to and in accordance with Applicable Law, each of the Sellers and the
Buyers agrees to use its commercially reasonable efforts to (a) promptly take, or cause to be taken, all actions reasonably necessary, proper or advisable and (b) assist and cooperate with the other parties in doing all things reasonably
necessary, proper or advisable, in each case, to consummate and make effective, as soon as reasonably practicable, the Closing and the other transactions contemplated by this Agreement and the Transaction Documents, including, the satisfaction of
such party’s respective conditions set forth in Article VII; provided that in no event shall the Sellers or their respective subsidiaries be required to pay any fee, penalty or other consideration to any third party for any consent
or approval required for the consummation of the transactions contemplated by this Agreement and the Transaction Documents under any contract or agreement. 

 

	5.2	Notices of Certain Events. The Sellers shall promptly notify the Buyers, and the Buyers shall promptly notify the Sellers of: 

 

	 	(a)	any notice or other communication from any Person received by it or its Affiliates alleging that the consent of such Person or its Affiliates is or may be required in
connection with the transactions contemplated by this Agreement or the Transaction Documents; 

  

	 	(b)	any written communication, or any material oral communication, from any Governmental Authority in connection with the transactions contemplated by this Agreement or the
Transaction Documents; 

  

	 	(c)	any actions, suits, claims, investigations or proceedings commenced or, to the knowledge of such party, threatened, that relate to or involve the QNX Entities or the
transactions contemplated by this Agreement or the Transaction Documents; 

  

	 	(d)	any of the QNX Entities entering into any employment deferred compensation or other similar arrangement (or amending any such existing arrangement) with any Employee or
director or officer of any of the QNX Entities; and 

  

 - 48 - 

	 	(e)	the adoption or amendment of any QNX Benefit Arrangement. 

In addition, and subject to Applicable Law, the Sellers shall promptly notify the Buyers of any material event occurring at a QNX Entity
outside the ordinary course of business of which the persons set forth on Schedule 5.2 of the Disclosure Letter actually become aware. Parent will instruct the Chief Executive Officer, Chief Financial Officer and General Counsel of QSSC to inform
them of any material event occurring at a QNX Entity outside the ordinary course of business of which they actually become aware. 
  

	5.3	Public Statements. No public announcement or statement concerning the transactions contemplated by this Agreement or the Transaction Documents shall be made by
the Sellers or any of their Affiliates without the prior written consent of the Buyers (such consent not to be unreasonably withheld or delayed) nor by the Buyers or any of their Affiliates without the prior written consent of the Sellers (such
consent not to be unreasonably withheld or delayed) unless such disclosure is consistent with other disclosure previously approved by the other party or otherwise made in accordance with this Section 5.3 or is required by Applicable Laws or the
applicable rules of any national stock exchange. If such disclosure is so required, the party required to make such disclosure shall use commercially reasonable efforts to enable the other parties to review and comment on such disclosure prior to
the release thereof. The Buyers and the Sellers agree to issue a mutually acceptable joint press release announcing this Agreement. 

  

	5.4	 Confidentiality. The terms of the non-disclosure agreement between the Guarantor and Parent effective November 20, 2009 (the
“Confidentiality Agreement”) are hereby incorporated into this Agreement other than the provisions of sections 5, 8(a), 9 (third sentence only), 12, 13 and 18 of the Confidentiality Agreement, which are hereby deleted. Further, all
of Parent’s and Parent’s Affiliates’ obligations and duties pursuant to the Confidentiality Agreement with respect to Confidential Information (as defined in the Confidentiality Agreement) (other than Section 4 (other than the
first sentence)) shall be deemed to extend to: (a) information in whatever form or medium that is proprietary, non-public and confidential to the QNX Entities and/or the Business including the Company IP and the Material Contracts (other than
Material Contracts with Parent or its Affiliates, but in any case subject to the terms thereof), in respect of and in connection with, and was obtained within, the period prior to the Closing Date; and (b) information in whatever form or medium
that is proprietary, non-public and confidential to the QNX Entities and/or the Business including the Company IP and the Material Contracts (other than Material Contracts with Parent or its Affiliates, but in any case subject to the terms thereof),
that is obtained in connection with the performance of Parent’s obligations under the Transition Services Agreement. Subject to the terms of the Confidentiality Agreement and this Section 5.4, Parent agrees that all such Confidential
Information will remain the property of the QNX Entities, and Parent will not, and will ensure that each of its controlled Affiliates do not, directly or indirectly use any such information for its own benefit or for the benefit of any third Person
(in each case other than in connection with the permitted uses described in the immediately following sentence, subject to the terms thereof). In the event that disclosure of any Confidential Information is required by Parent or any of its
Affiliates in accordance with Applicable Law or the applicable rules of any national stock exchange or in connection with (i) Tax Returns, or audits or judicial 

 

 - 49 - 

	 	
or administrative proceedings with respect to Taxes; (ii) the performance of Parent’s obligations under the Transition Services Agreement; or (iii) materials submitted to any
arbitration tribunal or court of competent jurisdiction in connection with any dispute among the parties, including in relation to a Claim pursuant to Section 9.2 or Section 9.3, Parent shall, and shall cause its relevant Affiliates to:
(x) other than in connection with a dispute between the parties, and to the extent reasonably practicable and permitted by Applicable Law, notify the QNX Entities and the Guarantor in advance of disclosure; (y) in the case of clause
(iii) above only, use reasonable efforts (at the QNX Entities’ sole cost and expense) to co-operate with the QNX Entities in maintaining the confidentiality of such Confidential Information; and (z) disclose such Confidential
Information only to the extent required or reasonably appropriate. 

  

	5.5	Operation of Business. During the period from the date of this Agreement and continuing until the earlier of the termination of this Agreement or the Closing
Time, except as may be required by Applicable Law, as may be expressly contemplated or required by this Agreement or the Transaction Documents (including this Section 5.5) and for the matters identified in Schedule 5.5 of the Disclosure Letter,
the Sellers shall cause the QNX Entities (except to the extent that the Buyers shall otherwise consent in writing (which consent shall not be unreasonably withheld or delayed)): (i) to carry on their business in all material respects in the
usual, regular and ordinary course consistent with past practice, (ii) to pay their debts when due, subject to good faith disputes over such debts, to pay or perform other obligations when due, (iii) to use commercially reasonable efforts
consistent with past practices and policies to preserve intact their present business organization, keep available the services of their present officers and Employees and preserve their relationships with customers, suppliers, distributors,
licensors, licensees, and others having business dealings with them and (iv) not to: 

  

	 	(a)	issue, deliver or sell or authorize or propose the issuance, delivery or sale of, or purchase or propose the purchase of, any shares of its capital stock or securities
convertible into shares of its capital stock, or subscriptions, rights, warrants or options to acquire, or other agreements or commitments of any character obligating it to issue any such shares or other convertible securities;

  

	 	(b)	incur any indebtedness for borrowed money or guarantee any such indebtedness or issue or sell any debt securities or warrants or rights to acquire any debt securities
or guarantee any debt securities of others in excess of $1,000,000 (one million United States Dollars) in the aggregate, except (i) as part of any cash-pooling arrangements, (ii) for any indebtedness for borrowed money among the QNX
Entities, (iii) for indebtedness for borrowed money incurred to replace, renew, extend, refinance or refund any existing indebtedness for borrowed money, or (iv) for guarantees by a QNX Entity of indebtedness of another QNX Entity, which
indebtedness is incurred in compliance with this Section 5.5(b); 

  

	 	(c)	 declare or pay any dividends on or make or agree to make any other distributions (other than cash dividends) in respect of any of its capital stock, or
split, combine or reclassify any of its capital stock or issue or authorize the issuance of any other securities in respect of, in lieu of or in substitution for shares of capital stock of

  

 - 50 - 

	 	
such party, or purchase or otherwise acquire, directly or indirectly, any shares of its capital stock, except for any such transactions by a Company or a wholly owned subsidiary of any of the
Companies; 

  

	 	(d)	except for transactions solely among the QNX Entities, acquire or agree to acquire by merging or consolidating with, or by purchasing a substantial equity interest in
or substantial portion of the assets of, or by any other manner, any business or any corporation, partnership or other business organization or division, or otherwise acquire or agree to acquire assets, other than (i) acquisitions of inventory,
(ii) acquisitions of assets in the ordinary course and (iii) acquisitions of assets outside the ordinary course with a value of not more than $100,000 in the aggregate; 

 

	 	(e)	except for transactions solely among the QNX Entities, and other than inventory and cash-pooling arrangements, sell, lease, license or otherwise dispose of any of its
properties or assets which are material, individually or in the aggregate, to the Business, except in the ordinary course of business; 

  

	 	(f)	except as required by Law, pursuant to the terms of a Benefit Arrangement as in effect on the date hereof, or pursuant to an action that applies uniformly to Employees
and to other similarly situated employees of Sellers and their Affiliates: (i) increase or agree to increase the compensation payable or to become payable to its directors, officers or Employees, other than in the ordinary course,
(ii) grant any additional severance or termination pay to, or enter into any employment or severance agreements with, directors, officers, Employees or agents, (iii) enter into any collective bargaining agreement, or (iv) establish,
adopt, enter into or amend in any material respect any QNX Benefit Arrangement; 

  

	 	(g)	revalue any of its material assets, including writing down the value of inventory or writing off notes or accounts receivable, except as required by GAAP, generally
accepted accounting principles or Applicable Law or otherwise applying generally to Parent and its subsidiaries and not specifically aimed at or only applying to the QNX Entities (it being agreed that such revaluation, write down or write off shall
not affect the calculation under Section 2.4); 

  

	 	(h)	amend or propose to amend its articles of incorporation, articles of association, by-laws, partnership agreement or other similar organizational documents;

  

	 	(i)	enter into any lease or contract for the purchase or sale of any real property with a value in excess of $250,000 in the aggregate, except in the ordinary course of
business; 

  

	 	(j)	change financial accounting methods other than such changes as are consistent with the changes required by GAAP, applicable generally accepted accounting principles or
Applicable Law or otherwise applying generally to Parent and its subsidiaries and not specifically aimed at or only applying to the QNX Entities (it being agreed that such change shall not affect the calculation under Section 2.4);

  

 - 51 - 

	 	(k)	amend or terminate any Material Contract other than in the ordinary course of business; 

 

	 	(l)	loan any amount to any Person, or guaranty or act as a surety for any obligation except (i) for loans and advances to employees in the ordinary course of business
(ii) for delayed payments by customers and prepaid expenses in the ordinary course of business, (iii) as required by or pursuant to existing contracts, (iv) as part of any cash-pooling arrangements or (v) as made in connection
with any transaction solely among the QNX Entities; 

  

	 	(m)	waive or release any material right or claim; 

  

	 	(n)	except (i) with respect to Taxes reportable on a Combined Tax Return, (ii) in the ordinary course of business, (iii) consistent with past practice,
(iv) as is required by Applicable Law, or (v) as would not reasonably be expected to have an adverse effect on the Buyers or the QNX Entities that is material, make or change any Tax election, change any annual accounting period, file any
amended Tax Return or enter into any closing agreement or settle any Tax claim or assessment relating to any of the QNX Entities, in each case for an amount that materially exceeds the amount reserved therefor. It is agreed and understood that the
only interim operating covenant relating to Taxes is the interim operating covenant contained in this Section 5.5(n); 

  

	 	(o)	make any material changes to the “hybrid software model” of the QNX Entities; 

 

	 	(p)	not release any Unpublished Source Code other than (i) in accordance with its ordinary course procedures applicable to Published Source Code or (ii) releases
of portions of Unpublished Source Code in the ordinary course consistent with past practice; 

  

	 	(q)	make any capital expenditures or commitments therefor in excess of $100,000 per fiscal quarter of the QNX Entities in the aggregate; 

 

	 	(r)	settle or compromise any action, claim or proceeding against any of the QNX Entities; 

 

	 	(s)	allow any current intellectual property registrations to lapse in the United States, Germany, China, Japan or Canada; or 

 

	 	(t)	take, or agree in writing or otherwise to take, any of the actions described in Sections 5.5(a) through 5.5(s) above. 

 

	5.6	Access to Information. 

  

	 	(a)	 Until the Closing Time, subject to any Applicable Law, applicable privileges and contractual confidentiality obligations, (i) the Sellers shall
allow and shall cause the QNX Entities to allow the Buyers and their representatives, accountants, legal counsel and advisors reasonable access during normal business hours upon

  

 - 52 - 

	 	
reasonable prior notice to the properties, files, books, records, and offices of the QNX Entities (and books and records of the Sellers to the extent related to the QNX Entities) for transition
planning purposes, including any and all information relating to taxes, legal advice, commitments, contracts, leases, licenses, personnel, environmental, health and safety, personal property and financial condition and such other information and
data as reasonably requested by the Buyers and (ii) the Sellers shall provide reasonable cooperation with the Buyers to arrange meetings during normal business hours between representatives of Buyers and personnel of the QNX Entities for
transition planning purposes. Until the Closing Time, subject to the Applicable Law, the Sellers shall cause the QNX Entities’ accountants to cooperate with the Buyers and their representatives in making available all financial information
reasonably requested; provided, however that the accountants of the Sellers or any of their Affiliates shall not be obliged to make any work papers available to any Person except in accordance with such accountants’ normal disclosure procedures
and then only after such Person has signed a customary agreement relating to such access to work papers in form and substance reasonably acceptable to such accountants. If so requested by the Sellers, the Buyers and the Guarantor shall enter into a
customary joint defense agreement with the Sellers and the QNX Entities with respect to any information to be provided to the Buyers pursuant to this Section 5.6(a). No information or knowledge obtained in any investigation pursuant to this
Section 5.6(a) or prior to the execution of this Agreement shall affect or be deemed to modify any representation or warranty contained in this Agreement or any of the Transaction Documents or in any document contemplated in this Agreement or
any of the Transaction Documents and no investigation made by the Buyers or their representatives shall affect the Buyers’ right to rely on any representation or warranty in this Agreement or any of the Transaction Documents or in any document
contemplated in this Agreement or any of the Transaction Documents. All such access shall be subject to the terms of the Confidentiality Agreement. 

  

	 	(b)	 From and after the Closing Time, subject to any Applicable Law, applicable privileges and contractual confidentiality obligations, in connection with
any Claim by a Buyer Indemnified Person pursuant to this Agreement, in connection with complying with Applicable Law, including any inquiry of any Governmental Authority or any public reporting requirements, or in connection with any actual or
threatened third party or regulatory action, suit, judgment or proceeding in each case in respect of the pre-Closing activities of the QNX Entities, the Buyers shall allow and shall cause the QNX Entities to allow the Sellers and their
representatives, accountants, legal counsel and advisors reasonable access during normal business hours upon reasonable notice to the relevant properties, files, books, records, and offices of the QNX Entities, including such additional information
relating to taxes, legal advice, commitments, contracts, leases, licenses, personnel, environmental, health and safety, personal property and financial condition and other information and data as reasonably requested by the Sellers. In connection
with any access permitted pursuant to this Section 5.6(b), the Buyers shall cause their and the QNX Entities’ accountants to cooperate with the Sellers and their representatives in making available all financial information

  

 - 53 - 

	 	
related to the underlying purpose of such access as reasonably requested; provided, however that such accountants shall not be obliged to make any work papers available to any Person except in
accordance with such accountants’ normal disclosure procedures and then only after such Person has signed a customary agreement relating to such access to work papers in form and substance reasonably acceptable to such accountants.

  

	 	(c)	The Sellers and the Buyers agree that each of them shall preserve and keep the records held by it relating to the QNX Entities and the Business for a period of six
(6) years from the Closing Date. In the event the Sellers, on the one hand, or the Buyers, on the other hand, wish to destroy such records, such party shall use reasonable efforts to first give ninety (90) days’ prior written notice
to the other and such other party shall have the right at its option and expense, upon prior written notice given to such party within that ninety (90) day period, to take possession of the records. 

 

	5.7	Regulatory and Other Authorizations; Consents. 

  

	 	(a)	The Buyers shall use their commercially reasonable efforts to (i) promptly obtain all authorizations, consents, orders and approvals of all federal, state,
provincial, local and foreign regulatory bodies and officials, including the Commissioner of Competition, that may be, or become, necessary for the execution and delivery of, performance of the obligations pursuant to, and consummation of the
transactions contemplated by, this Agreement and the Transaction Documents by the Buyers, (ii) take all such actions as may be requested by any such regulatory body or official to obtain such authorizations, consents, orders and approvals and
(iii) avoid the entry of, or to effect the dissolution of, any decree, order, judgment, injunction, temporary restraining order or other order in any suit or proceeding, that would otherwise have the effect of preventing or materially delaying
the consummation of the transactions contemplated by this Agreement and the Transaction Documents. Sellers will cooperate with the reasonable requests of the Buyers in seeking promptly to obtain all such authorizations, consents, orders and
approvals. Neither the Sellers nor the Buyers shall take any action that they should be reasonably aware would have the effect of materially delaying, impairing or impeding the receipt of any required approvals. 

 

	 	(b)	The Buyers shall submit, no later than one (1) Business Day after the date of this Agreement, a request for an advance ruling certificate (“ARC”)
pursuant to section 102 of the Competition Act in connection with the transactions contemplated by this Agreement and/or a letter from the Commissioner of Competition stating that she does not intend to make an application under section 92 of
the Competition Act or otherwise challenge the transactions contemplated by this Agreement. 

  

	 	(c)	 The Sellers and the Buyers each agree to make or cause to be made an appropriate filing of a notification with the Commissioner of Competition pursuant
to Part IX of the Competition Act, with respect to the transactions contemplated by this 

  

 - 54 - 

	 	
Agreement as promptly as practicable, and in any event, within fifteen (15) Business Days after the date of this Agreement and to supply as promptly as practicable any additional information
and documentary material that may be requested pursuant to the Competition Act. In addition, each party agrees to make promptly any filing that may be required with respect to the transactions contemplated by this Agreement under any other
antitrust or competition Law or by any other antitrust or competition authority and to supply as promptly as practicable any additional information and documentary material that may be requested pursuant to such filings. The Buyers shall have
responsibility for payment of the filing fees associated with the Competition Act filings, including the request for an ARC, and any other similar filings required in any other jurisdictions, and each of the Sellers and the Buyers shall have
responsibility for its other costs associated with the Competition Act filings, and any other similar filings required in any other jurisdictions. 

  

	 	(d)	Each party to this Agreement shall promptly notify the other parties of any oral or written communication it receives from any Governmental Authority relating to the
matters that are the subject of this Agreement, permit the other parties to review in advance any communication proposed to be made by such party to any Governmental Authority relating to the matters that are the subject of this Agreement and
provide the other parties with copies of all related correspondence, filings or other communications between them or any of their officers, directors, employees, representatives or agents, on the one hand, and any Governmental Authority or members
of its staff, on the other hand. No party to this Agreement shall agree to participate in any meeting with any Governmental Authority in respect of any such filings, investigation or other inquiry unless it consults with the other parties in advance
and, to the extent permitted by such Governmental Authority, gives the other parties the opportunity to attend and participate at such meeting. Subject to the Confidentiality Agreement and to Section 5.6, the parties to this Agreement will
coordinate and cooperate fully with each other in exchanging such information and providing such assistance as the other parties may reasonably request in connection with the foregoing and in seeking early termination of any applicable waiting
periods under the Competition Act or other antitrust or competition Laws. 

  

	 	(e)	In the event that the parties receive a request for additional information in response to the Competition Act filing or any filing required by any other
antitrust or competition Law or by any other antitrust or competition authority (a “Second Request”), the parties will use their respective best efforts to respond to such Second Request as promptly as possible and counsel for both
parties will closely cooperate with each other during the entire Second Request review process. 

  

	 	(f)	 The Buyers and the Sellers shall file with the Committee on Foreign Investment in the United States (“CFIUS”) the joint voluntary
notice under Section 721 of Title VII of the Defense Production Act of 1950, as amended, including the Exon-Florio and Foreign Investment and National Security Act (“FINSA”) amendments
(“Exon-Florio/FINSA”) and the regulations promulgated thereunder, in order to 

  

 - 55 - 

	 	
obtain the CFIUS Approval with respect to the transactions contemplated by this Agreement. The parties shall promptly provide CFIUS with any additional information requested by CFIUS during the
review process pursuant to Exon-Florio/FINSA. Subject to Section 5.7(g), the parties, in cooperation with each other, shall take all steps necessary to obtain (i) notification issued by CFIUS that it has determined that (A) the
transactions contemplated by this Agreement do not fall within the jurisdiction for review under Exon-Florio/FINSA, (B) it has concluded its review under Exon-Florio/FINSA and has determined not to conduct an investigation or (C) if an
investigation is conducted, that the United States government will not take action to prevent the consummation of the transactions contemplated by this Agreement or (ii) the President of the United States shall not take action to block or
prevent the consummation of transactions contemplated by this Agreement and the applicable time period for such action under Exon-Florio/FINSA shall have expired (the notification described in (i) or event described in (ii), the “CFIUS
Approval”) as promptly as practicable. 

  

	 	(g)	In connection with taking steps necessary to obtain the CFIUS Approval or the consent of the Commissioner of Competition, the Guarantor and the Buyers shall not be
required to (i) sell, divest, terminate, hold separate, or otherwise dispose of any of the material businesses, properties or assets of the Guarantor or the Buyers, or agree to any such action for the material businesses, properties or assets
of the QNX Entities, (i) agree to any condition materially affecting its control over or operation of their businesses or the businesses of the QNX Entities or (iii) agree to any other condition that would be reasonably likely to have a
material adverse effect on the businesses of the Guarantor, the Buyers or the QNX Entities. 

  

	 	(h)	The Buyers agree that complying with any of the steps referred to in this Section 5.7 shall not lead to any adjustments to the Purchase Price.

  

	 	(i)	Each party agrees to provide reasonable cooperation to the other party in connection with obtaining any other consents and approvals that may be required in connection
with the transactions contemplated by this Agreement and the Transaction Documents. 

  

	5.8	Termination of Rights to the Parent Name and Parent Marks. As soon as practicable after the Closing Date (and in any event within thirty (30) days
thereafter or, in the case of sales collateral, one hundred and eighty (180) days thereafter), the Buyers shall and shall cause each of their Affiliates (which shall include the QNX Entities) to (a) cease and discontinue all uses of the
Parent Name and Parent Marks and (b) complete the removal of the Parent Name and Parent Marks from all products, signage, vehicles, properties, technical information, promotional materials and other property of the QNX Entities.

  

	5.9	Resignation of Directors. The Sellers will cause each of the directors of the QNX Entities set out in Schedule 5.9 of the Disclosure Letter to resign or be
removed as a director of the QNX Entities, as applicable, effective immediately prior to the Closing Time. 

  

 - 56 - 

	5.10	Exclusive Dealing. During the period from the date of this Agreement until the earlier of (a) the date this Agreement is terminated in accordance with its
terms and (b) the Closing Date, the Sellers shall, and shall cause their respective controlled Affiliates to, and shall use commercially reasonable efforts to cause their directors, officers, employees, agents and other representatives to,
refrain from taking any action to solicit or engage in discussions (other than to advise of the terms of this provision) or negotiations with, or provide any information to or otherwise knowingly encourage or facilitate, any Person, other than the
Buyers (and their Affiliates), concerning the purchase (whether by merger, arrangement, recapitalization or other similar transaction) of (i) any shares, voting securities, other equity interests of or any options, warrants, rights,
subscriptions, or other securities convertible or exchangeable for shares, voting securities or other equity interests of any of the QNX Entities or (ii) any assets of any QNX Entity other than purchases of assets permitted under
Section 5.5. 

  

	5.11	Pre-Closing Reorganization. The Sellers shall, at the sole cost and expense of the Buyers, cause the QNX Entities to effect such reorganizations of the business,
operations and assets of the QNX Entities (each a “Pre-Acquisition Reorganization”) prior to or as of Closing as set forth on Schedule 5.11 of the Disclosure Letter and shall use commercially reasonable efforts to effect such other
Pre-Acquisition Reorganizations as the Buyers may request, acting reasonably and to which Sellers consent (such consent not to be unreasonably withheld), provided that any such Pre-Acquisition Reorganization (a) will not be prejudicial to the
Sellers; (b) is not prejudicial to the QNX Entities in the event that Closing is not completed; (c) will not result in any breach by the Sellers of any of its representations, warranties, covenants and agreements under this Agreement or
the other Transaction Documents (except if the Buyers waive in writing such breach); (d) will not require any material consent, approval, license, permit, order or authorization of, or registration, declaration or filing with, or permit from,
any Governmental Authority; (e) is not reasonably expected by the Sellers to result in any additional Taxes for the Sellers or any of the QNX Entities (whether or not the Closing is completed) and (f) will not result in any delay in the
completion of the transactions contemplated by this Agreement and the Transaction Documents. The Buyers shall provide the Sellers with written notice of any proposed Pre-Acquisition Reorganization at least twenty (20) days prior to the
anticipated Closing Date (provided that if the Sellers do not object within ten (10) days of receiving the Buyers’ notice, the Sellers’ consent will be deemed to have been given). 

 

	5.12	Transaction Documents. At the Closing, each applicable Seller and Buyer, as the case may be, shall take, and each Seller shall cause each applicable QNX Entity
to take, all actions reasonably necessary to duly execute and deliver the Transaction Documents. 

  

	5.13	Employees and Employment Benefits. 

  

	 	(a)	 The Sellers shall, or shall cause an Affiliate to, transfer to a QNX Entity prior to the Closing Date each Employee listed on Schedule 5.13(a) not
employed by a QNX Entity (including all employees on leave of absence, whether due to short-term disability, military leave, family leave, vacation, illness, or otherwise, but excluding U.S. Employees on long-term disability). Notwithstanding the

  

 - 57 - 

	 	
foregoing, the Sellers shall, or shall cause an Affiliate (other than the QNX Entities) to, employ prior to the Closing Date each Employee employed in the United States who is absent from active
employment as of immediately prior to the Closing Date due to long term disability, and any such employees shall no longer be considered Employees for purposes of this Agreement, effective as of immediately prior to the Closing Date.

  

	 	(b)	The Sellers shall, or shall cause an Affiliate to, transfer prior to the Closing Date to an entity other than a QNX Entity the employment of the individuals listed on
Section 5.13(b) of the Disclosure Letter. 

  

	 	(c)	The Buyers shall assume, and shall cause the QNX Entities to assume or retain, as applicable, all obligations and liabilities in respect of QNX Benefit Arrangements.

  

	 	(d)	The Buyers agree that service of Employees with the Sellers and their Affiliates (including the QNX Entities) before the Closing Date (or, with respect to U.S.
Employees, the date upon which the Sellers cease to provide employee benefits to the U.S. Employees under the Transition Services Agreement (the “Transition Services Date”)) (including any credited predecessor service) shall be
credited for all purposes under the employee benefit plans, programs and arrangements of the Buyers and their Affiliates (including the QNX Entities) following the Closing Date, to the same extent such service was counted under the applicable
corresponding Benefit Arrangement of Sellers and their Affiliates, except to the extent that such credit would result in duplication of benefits. 

  

	 	(e)	The Buyers shall provide, or shall cause the QNX Entities to provide, welfare benefits of the type described in Section 3(1) of ERISA (“Welfare
Benefits”) so as to ensure uninterrupted coverage of U.S. Employees in the United States. Such plans shall, with respect to each U.S. Employee, waive any pre-existing condition exclusions, evidence of insurability provisions, waiting period
requirements or any similar provision (except to the extent that such exclusion, provision, or requirement was applicable to such U.S. Employee under the applicable Benefit Arrangement of Sellers and their Affiliates in effect immediately prior to
the Closing Date). Buyer shall, no later than 10 days prior to the Closing Date, communicate details of post-Closing employee benefits to those Employees identified in Schedule 5.13(e) of the Disclosure Letter, including the provision of benefits
during the Transition Services Period, which shall include the paragraphs set forth on Schedule 5.13(e) of the Disclosure Letter (but which, for clarity, may include additional details, so long as not inconsistent with the terms of such paragraphs).

  

	 	(f)	 Effective as of the Closing Date, each U.S. Employee shall cease participation and benefit accrual under, and each QNX Entity shall cease to be a
contributing sponsor of, any Benefit Arrangement of Sellers and their Affiliates that is intended to qualify under Section 401 of the Code (“Qualified Plans”), and the Sellers and their Affiliates shall (subject to the
Buyers’ obligations set forth in this Section 5.13(f) to accept certain rollovers) retain all responsibility and liability for 

 

 - 58 - 

	 	
benefits accrued by U.S. Employees in Benefit Arrangements of Sellers and their Affiliates that are Qualified Plans. Effective as of the Transition Services Date, the Buyers shall cover, or cause
the QNX Entities to cover, the U.S. Employees under one or more defined contribution plans and trusts intended to qualify under Section 401(a) and Section 501(a) of the Code (the “Buyer DC Plans”). The terms of the Buyer
DC Plans, or of each such Buyer DC Plan, shall provide that such U.S. Employees shall have the right to make direct rollovers to the applicable Buyer DC Plan of their accounts in the applicable defined contribution Qualified Plan of the Sellers and
their Affiliates; provided, however, that the Buyer DC Plans will not accept a direct rollover of any notes evidencing loans made to such U.S. Employees. 

  

	 	(g)	Nothing contained in this Section 5.13 shall by itself be construed as requiring the Buyers and their Affiliates to continue any specific Benefit Arrangement or as
preventing the Buyer and its Affiliates from terminating (or modifying the terms of) the employment of any specific Employee. Nothing contained in this Section 5.13 shall constitute an amendment to any Benefit Arrangement or other employee
benefit plan, create any third party beneficiary rights or be enforceable by any employee of Sellers or Buyers or their respective Affiliates. 

  

	5.14	Intercompany Obligations; Debt; Cash. 

  

	 	(a)	Parent shall take, or cause to be taken, prior to the Closing Date, such action as may be necessary, so that, as of the Closing Time, there shall be no Related Party
Debt or other intercompany obligations (other than those obligations disclosed in Schedule 5.14(a) of the Disclosure Letter) between the QNX Entities, on the one hand, and Parent and its Affiliates (other than the QNX Entities), on the other hand.

  

	 	(b)	Sellers shall ensure that, as of the Closing Time, none of the QNX Entities shall have any outstanding Debt (other than Debt owed to another QNX Entity), and Sellers
shall on the Closing Date provide the Buyers with evidence of the foregoing. 

  

	 	(c)	Parent shall take, or cause to be taken, commercially reasonable efforts to remove, as of the Closing Time, all cash and cash equivalents from the QNX Entities in
excess of $300,000. Any cash and cash equivalents at the QNX Entities as of the Closing Time, including such $300,000 and any additional cash and cash equivalents, in the event that Parent is unable to remove all cash and cash equivalents in excess
of $300,000 from the QNX Entities in accordance with the preceding sentence, or in the event, and to the extent, that removing cash and cash equivalents from the QNX Entities would give rise to fees, costs or withholding or other Taxes, shall be
included in the adjustment to the Purchase Price pursuant to Section 2.4. 

  

	 	(d)	 Parent shall cause the QNX Entities to repay to Parent before the Closing Date all indebtedness of the QNX Entities originally incurred or owing by
Margi Systems, 

  

 - 59 - 

	 	
Inc. to Parent or its Affiliates and any interest owing in respect thereof. Parent shall cause the QNX Entities to pay before the Closing Date or shall otherwise be responsible for all
restructuring costs that constitute severance payments to former employees of Margi Systems, Inc. 

  

	5.15	Insurance. 

  

	 	(a)	From and after the Closing, the QNX Entities shall cease to be insured by Parent’s and its Affiliates’ insurance policies or by any of their self-insured
programs, other than by any insurance policies acquired directly by and in the name of one or more QNX Entities or self-insurance programs of the QNX Entities directly while an Affiliate or Subsidiary of Parent. 

 

	 	(b)	Notwithstanding Section 5.15(a), after the Closing Date but subject to the terms and conditions of such policies, and to the extent such coverage is available,
Parent will continue to provide the QNX Entities with access to occurrence-based policies of Parent that provide or include coverage for the QNX Entities with respect to acts or events that occurred prior to the Closing Date and shall reasonably
cooperate with the QNX Entities and take commercially reasonable actions as may be necessary to assist the QNX Entities in submitting claims with respect to acts or events that occurred prior to the Closing Date to which such policies are
responsive; provided that the QNX Entities shall be responsible for (and shall indemnify Parent for any Loss it or its Affiliates incurs in respect of) any deductibles, co-payments, self-insured retentions, catastrophic coverage charges,
administrative costs, taxes, surcharges, state assessments and other costs relating to such claims and Parent shall not be required to maintain such policies beyond their current terms. 

 

	 	(c)	 As may be necessary to enable the QNX Entities to exercise their rights under Section 5.15(b), Parent shall use commercially reasonable efforts to
provide to the QNX Entities: (i) applicable rights in respect of Parent’s occurrence-based policies as permitted under Applicable Law, (ii) information in its possession regarding any such claim under any applicable insurance policy
or reasonably requested by the applicable insurer, and (iii) further assistance in connection with prosecution of claims reasonably requested by the QNX Entities. The QNX Entities shall provide Parent and its Affiliates prompt written notice of
any claims that the QNX Entities desire to submit pursuant to Section 5.15(b) and shall provide to Parent and its subsidiaries all information as may be required by the applicable insurance policy or reasonably required by the applicable
insurer in connection with such claim. Parent shall retain exclusive right to control its insurance policies and programs, including the right to exhaust, settle, release, commute, buy-back or otherwise resolve disputes with respect to any of its
insurance policies and programs and to amend, modify or waive any rights under any such insurance policies and programs, notwithstanding whether any such policies or programs apply to any liabilities or claims the QNX Entities have made or could
make in the future; provided that in the event that Parent takes any such action it shall use its commercially reasonable efforts to ensure that such 

 

 - 60 - 

	 	
action does not adversely impact in a material respect the rights of the QNX Entities under this Section 5.15. The QNX Entities shall not, without the prior written consent of Parent, erode,
exhaust, settle, release, commute, buy-back or otherwise resolve disputes with respect to any of Parent’s or its Affiliates’ insurance policies and programs, or amend, modify or waive any rights under any such insurance policies and
programs. The QNX Entities shall cooperate with Parent and share such information as is reasonably necessary to permit Parent to manage and conduct its insurance matters. 

 

	 	(d)	The QNX Entities acknowledge that under claims made policies, including director and officer and fiduciary policies, of Parent and its Affiliates, all insurance
coverage for the QNX Entities for any occurrence, act, omission or event occurring and Liability or condition arising after the Closing Date shall terminate as of the Closing Date and, following the Closing Date, no claims may be brought against any
claims made policy of Parent and its Affiliates. Parent or its Affiliates shall purchase, at the request of and at the sole cost and expense of Buyers, prior to the Closing Date, run-off/tail coverage for the QNX Entities covering any occurrence,
act, omission or event occurring and Liability or condition existing prior to the Closing Date that were covered prior to the Closing Date under Parent’s or its Subsidiaries’ claims made insurance policies. Such run-off/tail coverage shall
provide coverage for claims made or reported for a period of six years after the Closing Date. 

  

	 	(e)	For the period between the date hereof and the Closing, Parent shall use its commercially reasonable efforts to maintain in place and shall cause the QNX Entities to
use their commercially reasonable efforts to maintain in place, in each case, in all material respects, all insurance coverage in place as at the date hereof the QNX Entities, their properties and assets. 

 

	5.16	Guaranty. 

  

	 	(a)	The Guarantor unconditionally and irrevocably guarantees (the “Guaranty”) in favour of the Sellers (the “Guaranteed Parties”) the full
and punctual performance by the Buyers of each and every covenant and agreement of each of the Buyers pursuant to this Agreement and pursuant to any of the Transaction Documents to which such Buyer is a party, including the payment of the Purchase
Price and other amounts under Article II and any payments for indemnification under Article IX (the “Guaranteed Obligations”). Upon the failure of any Buyer to pay any amounts due by it under Article II or
Article IX when and as the same shall become due, Guarantor hereby promises to pay, and shall upon receipt of written demand by Sellers forthwith pay, to Sellers such amounts in lawful money of the United States. Sellers shall only deliver such
written demand to the Guarantor, and any such written demand shall only be effective, upon failure or refusal by any Buyer punctually to pay or perform any of the Guaranteed Obligations in accordance with the terms of this Agreement. The Guaranty is
a guarantee of payment when due and not of collection. 

  

 - 61 - 

	 	(b)	To the fullest extent permitted by Law, the Guarantor hereby expressly waives any and all rights or defenses arising by reason of any law which would otherwise require
any election of remedies by the Guaranteed Parties. The Guarantor waives promptness, diligence, notice of acceptance of this Guaranty and of the Guaranteed Obligations, presentment, demand for payment, notice of non-performance, default, dishonor
and protest, notice of the incurrence of any Guaranteed Obligations and all other notices of any kind (except for notices to be provided to the Buyers and the Guarantor in accordance with Section 10.1), all defenses which may be available by
virtue of any stay, moratorium law or other similar law now or hereafter in effect, any right to require the marshalling of assets of the Buyers or any other person interested in the transactions contemplated by this Agreement and the Transaction
Documents. The Guarantor acknowledges that it will receive substantial direct and indirect benefits from consummation of the transactions contemplated by this Agreement and the Transaction Documents and that the waivers set forth in this
Section 5.16 are knowingly made in contemplation of such benefits. The obligations of the Guarantor shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to any setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Guaranteed Obligations or otherwise (other than defense of
payment or performance). 

  

	 	(c)	Nothing contained in this Guaranty (including, for greater certainty, in Section 5.16(b) above) shall constitute or be construed as a waiver or release by the
Guarantor of, and the Guarantor shall be entitled to the full benefit of, the defenses, rights and remedies that would have been available to any Buyer in respect of the Guaranteed Obligations as if any demand hereunder had been made by the Sellers
upon such Buyer directly and without reference to this Guaranty, including all equities that exist between each Buyer and the Sellers in respect of the Guaranteed Obligations. Additionally, any demand made by the Sellers upon the Guarantor hereunder
shall be subject to all limitations and exclusions of liability under the terms of this Agreement then available to any of the Buyers in respect of the Guaranteed Obligations. 

 

	5.17	Investigation. EACH OF THE BUYERS AND THE GUARANTOR ACKNOWLEDGES AND AGREES THAT IT (I) HAS MADE ITS OWN INQUIRY AND INVESTIGATION INTO, AND, BASED THEREON
AND ON THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT, HAS FORMED AN INDEPENDENT JUDGMENT CONCERNING THE QNX ENTITIES, THE BUSINESS AND ANY OTHER RIGHTS OR OBLIGATIONS TO BE TRANSFERRED HEREUNDER OR PURSUANT HERETO. EACH OF THE
BUYERS AND THE GUARANTOR FURTHER ACKNOWLEDGES AND AGREES THAT THE ONLY REPRESENTATIONS AND WARRANTIES MADE BY THE SELLERS ARE THE REPRESENTATIONS AND WARRANTIES MADE IN THIS AGREEMENT AND THE TRANSACTION DOCUMENTS AND THAT IT HAS NOT RELIED UPON ANY
OTHER REPRESENTATIONS (WHETHER EXPRESS OR IMPLIED) THAT ARE NOT IN THIS AGREEMENT OR TRANSACTION DOCUMENTS. 

  

 - 62 - 

	5.18	Retention Bonuses. Promptly following each of the first and second anniversaries of the Closing Date, Parent will reimburse the QNX Entities for up to the
aggregate amount set forth on Schedule 5.18 of the Disclosure Letter for cash retention bonuses actually paid in the applicable year prior to such anniversary to the individuals set forth on Schedule 5.18 of the Disclosure Letter in accordance with
bona fide retention programs established by Buyer with respect to the QNX Entities. 

  

	5.19	Certain License Agreements. Between the date of this Agreement and the Closing Date, (a) Parent will cause Margi Systems, Inc. and QSSC to execute that
certain Software and Patent License Agreement providing for a worldwide, fully paid, royalty free, irrevocable, sublicensable, transferable and assignable right and license to the Intellectual Property Rights in the patents owned by Margi Systems,
Inc. with the right to sublicense and (b) Parent and QSSC will not amend or terminate that certain License Agreement entered into by them on the date of this Agreement. 

 

	5.20	Certain Filings and Other Actions. Between the date of this Agreement and the Closing Date, the Sellers shall use commercially reasonable efforts to effect and,
as applicable, to cause the QNX Entities to effect, the filings, assignments, recordations and registrations listed in Schedule 5.20 of the Disclosure Letter. 

ARTICLE VI 

TAX MATTERS 
  

	6.1	Election under Section 56.4 of the Tax Act. The Sellers and Buyer 1 agree to elect in prescribed form, or to the extent no such form
has been prescribed, in any form required by the applicable Tax Authority, to apply proposed paragraphs 56.4(3)(c) and 56.4(7)(h) of the Tax Act (and any corresponding provincial elections that may be applicable) in respect of this Agreement.
Each of the Sellers and Buyer 1 shall make such election in a timely manner consistent with this Agreement. Buyer 1 and the Sellers agree, including for purposes of the elections referred to herein, that no portion of the Purchase Price for the QSSC
Shares and the Wavemaker Shares is allocated to the covenants of the Sellers in the Mutual Non-Solicitation Agreement referred to herein. 

  

	6.2	Liability for Taxes. 

  

	 	(a)	 Parent shall be responsible for, pay or cause to be paid, indemnify the Buyers and each of their subsidiaries and Affiliates (including the QNX
Entities after the Closing Date) (each a “Buyer Tax Indemnitee”), and hold each Buyer Tax Indemnitee harmless from and against, any and all Taxes (i) of, or imposed on, the QNX Entities in respect of any Pre-Closing Period;
(ii) imposed upon QSSI for any taxable period that ends on or before or includes the Closing Date pursuant to Section 1.1502-6 of the United States Treasury Regulations or any similar provision of state or local law; (iii) of another
person imposed on any of the QNX Entities under any Tax sharing or Tax allocation agreement in respect of 

  

 - 63 - 

	 	
any Pre-Closing Period, (iv) imposed on or assessed against Buyer 1 pursuant to subsection 116(5) of the Tax Act (together with any interest and penalties related thereto), in respect of the
acquisition by Buyer 1 of the QSSC Shares and the Wavemaker Shares pursuant to this Agreement, or (v) attributable to any breach by Parent or any of its Affiliates of any covenant contained in this Agreement, in each case to the extent any such
Taxes are due or payable to any Tax Authority by the Buyer Tax Indemnitees under Applicable Law (collectively, “Parent Taxes”); provided, however, that notwithstanding the foregoing, Parent shall not be responsible for, and Parent
Taxes shall not include, any Taxes to the extent that such Taxes are specifically included as a Current Liability on the Closing Date Balance Sheet or the Closing Date Working Capital Statement (or the applicable worksheets thereto) (“WC
Taxes”) or result from (x) any breach by the Buyers or any of their Affiliates of any covenant contained in this Agreement; (y) any actions taken by any QNX Entity outside the ordinary course of business on the Closing Date after
the Closing Time; or (z) any Pre-Acquisition Reorganization (collectively, such Taxes referred to in clauses (x), (y) and (z), and any WC Taxes, “Buyer Taxes”, in each case whether or not such Buyer Taxes would have been
Parent Taxes but for the proviso contained in this Section 6.2(a)). For the avoidance of doubt, Taxes which Parent shall be responsible for pursuant to this Section 6.2(a) shall include all Taxes for any Pre-Closing Period of or
attributable to any QNX Entity in respect of income reported on or required to be shown in any Combined Tax Return that Parent is responsible for filing pursuant to Section 6.3(a) of this Agreement, other than any Buyer Taxes. Any indemnity
payment required to be made by Parent pursuant to this Section 6.2(a) (other than any indemnity payment for Taxes shown on a Specified Section 6.3(b) Return, which shall be dealt with in Section 6.3(b)) shall be made within thirty
(30) days of written notice from the Buyers, which notice shall not be delivered to Parent prior to a final determination with respect to the issue to which such indemnity relates. 

 

	 	(b)	 The Buyers shall be responsible for, pay or cause to be paid, indemnify Parent and its subsidiaries and Affiliates (other than the QNX Entities) (each
a “Seller Tax Indemnitee”), and hold each Seller Tax Indemnitee harmless from and against, (i) any Buyer Taxes and (ii) all Taxes of, or imposed on, the QNX Entities (and any Taxes of another person in respect of any
Post-Closing Period imposed on any of the QNX Entities under any Tax sharing or Tax allocation agreement) in respect of any Post-Closing Period, except to the extent that such Taxes are the responsibility of Parent under Section 6.2(a), in each
case to the extent any such Taxes are due or payable to any Tax Authority by the Seller Tax Indemnitees under Applicable Law. In the case of Taxes shown on a Tax Return, any indemnity payment required to be made by Buyers pursuant to this
Section 6.2(b) shall be made no later than two (2) Business Days prior to the Tax Return Due Date, provided, however, that with respect to any such indemnity payment for Taxes shown on a Tax Return for which Parent has the
filing responsibility under Section 6.3(a), Parent shall deliver to Buyers no later than twenty (20) days prior to the Tax Return Due Date a notice setting forth the amount of such indemnity payment and a description of the basis for such
indemnity payment pursuant to 

  

 - 64 - 

	 	
the relevant provisions of this Agreement. In any other case, any indemnity payment requirement to be made by Buyers pursuant to this Section 6.2(b) shall be made within thirty
(30) days of written notice from Parent, which notice shall not be delivered to Buyers prior to a final determination with respect to the issue to which such tax indemnity relates. 

 

	 	(c)	For purposes of this Agreement, in determining the Taxes attributable to the Pre-Closing Period included in any Straddle Period, (i) Property Taxes shall be equal
to the amount of such Property Taxes for the entire Straddle Period multiplied by a fraction, the numerator of which is the number of calendar days during the Straddle Period that are in the Pre-Closing Period and the denominator of which is the
number of calendar days in the entire Straddle Period and (ii) Taxes (other than Property Taxes) shall be computed as if such taxable period ended as of the end of the day on the Closing Date (and for such purpose, the taxable period of any
partnership or pass-through entity (including any of the Subsidiaries) in which any of the QNX Entities hold a beneficial interest will be treated as if such taxable period terminated at such time). 

 

	6.3	Filing Responsibility. 

  

	 	(a)	Parent shall prepare and file, or cause to be prepared and filed, when due: (i) all Tax Returns for any affiliated group of which Parent is the common parent,
(ii) any Tax Return which includes Parent or any other member of the Seller Group, (iii) all Combined Tax Returns, which shall include the QNX Entities to the extent required under Applicable Law or consistent with past practice, and
(iv) any other Tax Return of any of the QNX Entities required to be filed on or prior to the Closing Date. Parent shall pay all Taxes due in respect of the Tax Returns described in this Section 6.3(a), subject to Parent’s right of
indemnification or reimbursement for any such Taxes pursuant to Section 6.3(b). 

  

	 	(b)	 The Buyers shall, except to the extent that filing such Tax Returns is the responsibility of Parent under Section 6.3(a), prepare and file, or
cause to be prepared and filed, all Tax Returns with respect to each of the QNX Entities, provided, however, that with respect to any Straddle Period Tax Returns and any other Tax Returns of any of the QNX Entities that includes the Pre-Closing
Period and for which Buyers have a filing responsibility pursuant to this Section 6.3(b) (a “Specified Section 6.3(b) Return”): (i) Buyers shall furnish such Tax Returns to Parent for Parent’s review and comment
at least thirty (30) days prior to the due date for filing such Tax Return, including extensions (the “Tax Return Due Date”), (ii) Buyer shall not file such Tax Returns without the prior written consent of Parent, which
consent shall not be unreasonably withheld, conditioned or delayed, and (iii) such Tax Returns shall be prepared and filed in a manner consistent with past practice for the entity to which each such Tax Return relates, unless Buyers deliver to
Parent, or Parent delivers to Buyers, as the case may be, no later than the Opinion Due Date an Impermissible Past Practice Opinion, as defined below, provided, however, that, in the case of an Impermissible Past Practice, as defined below, if there
is more than one alternative practice permitted 

  

 - 65 - 

	 	
under Applicable Law, Parent shall determine which such alternative practice shall apply to the preparation and filing of such Tax Return. With respect to each Specified Section 6.3(b)
Return, no later than fifteen (15) days prior to the Tax Return Due Date, Parent shall provide to Buyers comments on such Tax Return and Buyers shall incorporate all reasonable comments of Parent (provided that to the extent a past practice
exists with respect to the aspect of the preparation and filing of such Tax Return that is subject to Parent’s comments, such comments are consistent with past practice, unless otherwise required by an intervening change in Applicable Laws, or
unless Parent delivers to Buyers no later than the Opinion Due Date, an Impermissible Past Practice Opinion). With respect to any Specified Section 6.3(b) Return, Parent shall pay, or cause to be paid, to the Buyers or its Affiliates (including
the QNX Entities), as applicable, the amount for which Parent is responsible under Section 6.2(a) no later than two (2) Business Days prior to the Tax Return Due Date, provided that Buyers have complied with their obligations under
this Section 6.3(b). For purposes of this Section 6.3(b), an Impermissible Past Practice Opinion shall mean an opinion, reasonably acceptable to the party receiving such opinion from the Delivering Party, of a nationally recognized
accounting firm at no less than a “should” level standard to the effect that the past practice from which the party delivering such opinion (the “Delivering Party”) seeks to diverge (an “Impermissible Past
Practice”) is not permitted under the requirements of Applicable Law. The Opinion Due Date shall mean, if a Buyer is the Delivering Party, no later than thirty (30) days prior to the Tax Return Due Date, and if Parent is the Delivering
Party, no later than fifteen (15) days prior to the Tax Return Due Date. 

  

	6.4	Cooperation and Exchange of Information. From and after the Closing Date, each party hereto shall, and shall cause its Affiliates to, provide the other party
hereto with such cooperation, documentation and information as either of them reasonably may request in connection with (a) filing any Tax Return or claim for refund, (b) determining a liability for Taxes, an indemnity or payment
obligation under this Article VI or a right to a refund of Taxes, (c) conducting any Tax Proceeding (which shall include granting any powers of attorney reasonably requested by the party entitled to control a Tax Proceeding pursuant to
Section 6.3(b)) or (d) determining an allocation of Taxes between a Pre-Closing Period and a Post-Closing Period. Such cooperation and information shall include providing copies of all relevant portions of relevant Tax Returns, together
with all relevant accompanying schedules and work papers (or portions thereof) and other supporting documentation. Notwithstanding any other provision of this Agreement, nothing herein shall require Parent or any of its Affiliates to provide access
to any Tax Returns, information, records or other material of Parent or any of its Affiliates relating to any Combined Tax Returns. 

  

	6.5	Contests. 

  

	 	(a)	If any Taxing Authority asserts a Tax Claim in respect of any QNX Entity, then the party hereto first receiving notice of such Tax Claim promptly shall provide written
notice thereof to the other party or parties hereto. Such notice shall specify in reasonable detail the basis for such Tax Claim and shall include a copy of the relevant portion of any correspondence received from the Taxing Authority.

  

 - 66 - 

	 	(b)	In the case of a Tax Proceeding involving a QNX Entity in respect of any taxable period that ends on or before the Closing Date Parent shall have the right to control,
at its own expense, such Tax Proceeding; provided, however, that with respect to any Tax Proceeding in respect solely of a QNX Entity, which Tax Proceeding would reasonably be expected to have an adverse effect on the Buyers or any of their
Affiliates (including the relevant QNX Entity) (i) Parent shall consult with Buyers before taking any significant action in connection with such Tax Proceeding, (ii) the Buyers shall be entitled to participate in such Tax Proceeding at
Buyer’s expense (along with counsel and other advisors of their choice) and (iii) Parent shall not settle, compromise or abandon any such Tax Proceeding without obtaining the prior written consent of the Buyers (which consent shall not be
unreasonably withheld or delayed), to the extent such settlement or compromise would reasonably be expected to result in an adverse effect on the Buyers that is material, provided that if such consent is withheld by Buyers, control of such Tax
Proceeding shall be assumed by Buyers at their own expense and Parent’s liability for any Taxes (including Parent Taxes) resulting from such Tax Proceeding shall not exceed the amount that would have been due under such settlement or compromise
(Parent’s liability for Taxes in excess of the amount that would so have been due, “Excess Taxes”) (and, notwithstanding any other provision, Buyer shall indemnify Parent against any such Excess Taxes, to the extent any such
Taxes are due or payable to any Tax Authority by Parent or any of its subsidiaries or Affiliates (other than any QNX Entity)). 

  

	 	(c)	In the case of a Tax Proceeding for a Straddle Period of a QNX Entity, the Buyers shall have the right to control, at their own expense, such Tax Proceeding; provided,
however, that (i) the Buyers shall consult with Parent before taking any significant action in connection with such Tax Proceeding, (ii) Parent shall be entitled to participate in such Tax Proceeding (along with counsel and other advisors
of its choice), (iii) Buyers shall take all actions in connection with such Tax Proceeding that relate to a Pre-Closing Period no differently than any action in connection with such Tax Proceeding that relates to a Post-Closing Period, and in
all cases shall treat any such Tax Proceeding as if any and all liability for Taxes resulting therefrom were the responsibility of Buyers and (iv) the Buyers shall not settle, compromise or abandon any such Tax Proceeding without obtaining the
prior written consent of Parent, which consent shall not be unreasonably withheld, conditioned or delayed, to the extent that such settlement or compromise would result in an indemnification payment by Parent for any Parent Taxes or otherwise
reasonably be expected to result in an adverse effect on Parent, provided that if such consent is withheld by Parent and Buyers have complied with all their covenants hereunder in relation to such Tax Proceeding, then, notwithstanding any other
provision of this Agreement, Parent’s liability for Taxes pursuant to Section 6.2(a) shall include and Parent shall indemnify the Buyers and each of their subsidiaries and Affiliates (including the QNX Entities) and hold them harmless from
and against the amount of Taxes resulting from such Tax Proceeding that are in excess of the amount that would have been due under such settlement or compromise. 

 

 - 67 - 

	 	(d)	In the case of a Tax Proceeding involving a QNX Entity (other than any Tax Proceeding described in Sections 6.5(b) or 6.5(c)) Buyers shall have the right to control, at
their own expense, such Tax Proceeding, Parent shall not have any right to participate in any such Tax Proceeding and Section 6.5(a) shall not apply to such a Tax Claim; provided, however, that if such Tax Proceeding would reasonably be
expected to have an adverse effect on Parent or any of its Affiliates, and only at such time when it becomes readily apparent that such Tax Proceedings would be expected to have such an effect (the “Contest Relevant Time”),
(i) the Buyer shall consult with Parent before taking any significant action in connection with such Tax Proceeding, (ii) Parent shall be entitled to participate in such Tax Proceeding (along with counsel and other advisors of its choice),
and (iii) from and after the Contest Relevant Time, the Buyers shall not settle, compromise or abandon any such Tax Proceeding without obtaining the prior written consent of Parent (which consent shall not be unreasonably withheld, conditioned
or delayed), to the extent that such settlement or compromise would result in an indemnification payment by Parent for any Parent Taxes or otherwise reasonably be expected to result in an adverse effect on Parent that is material.

  

	 	(e)	Notwithstanding any other provision, Parent shall have the exclusive right to control in all respects, including as to settlement, any Tax Proceeding relating to any
Combined Tax Return, the Buyers shall not have any right to participate in any such Tax Proceeding and Section 6.5(a) shall not apply to such a Tax Claim. 

 

	6.6	Tax Sharing Agreements. All liabilities and obligations between Parent or any member of the Seller Group, on the one hand, and the QNX Entities, on the other
hand, under any Tax allocation or Tax sharing agreement in effect prior to the Closing Date (other than this Agreement) shall cease and terminate as of the Closing Date. 

 

	6.7	Tax Benefits. 

  

	 	(a)	 If, as a result of any final determination with respect to any Tax Item for a Pre-Closing Period, there is an increase (i) in Taxes of any QNX
Entity in respect of which Parent has indemnified a Buyer Tax Indemnitee pursuant to Section 6.2(a), or (ii) in Taxes for which Parent (or with respect to any Taxes paid on or prior to the Closing Date, any QNX Entity) is or was otherwise
liable (and, in the case of such Taxes in this clause (ii), which Parent (or any QNX Entity) has paid on or prior to the Closing Date and which are not Buyer Taxes), and, solely as a result of such final determination, any QNX Entity (or Buyer or
any of its Subsidiaries or Affiliates) actually realizes a Tax Benefit for any Post-Closing Period (it being understood that Buyer agrees to file or cause to be filed (or shall cause the relevant QNX Entity to file or cause to be filed) all Tax
Returns (including amended Tax Returns) or other documents, to the extent permitted under Applicable Law, claiming (x) any such Tax Benefit, (y) any refund to which Parent is entitled under Section 6.7(b) below or (z) any Tax
Benefit to which 

  

 - 68 - 

	 	
Parent is entitled under Section 6.15 (whether as a payment to Parent or as a reduction of an indemnification payment required to be made by Parent)), then Buyers shall pay, or cause to be
paid, to Parent the amount of such Tax Benefit, provided, however, that any such amount shall not exceed the amount which Parent has paid to the Buyer Tax Indemnitees in respect of such final determination (a “Tax Timing Payment”).
Any such Tax Timing Payment shall be paid no later than thirty (30) days of the filing of any Tax Return in which such Tax Benefit is actually realized. Notwithstanding anything to the contrary in this Agreement, the Buyers shall not be
required to make any Tax Timing Payment under this Section 6.7(a) in respect of any Tax Benefit that is realized with respect to any taxable period following the seventh taxable period after the Closing Date. 

 

	 	(b)	Parent shall be entitled to any Tax refund (whether paid in cash or by credit of or against Taxes) of, or attributable to, the QNX Entities in respect of any
Pre-Closing Period (to the extent that such Tax refund was not specifically included as a Current Asset on the Closing Date Balance Sheet or the Closing Date Working Capital Statement (or the applicable worksheets thereto)), and Buyers shall pay, or
cause to be paid, to Parent any such Tax refund, net of any Taxes on the receipt thereof, within fifteen (15) calendar days of receipt or entitlement thereto. 

 

	6.8	Transfer Taxes. Notwithstanding any other provision of this Agreement, the Buyers, on the one hand, and Parent, on the other hand, shall be responsible for and
shall pay 50% of all documentary, registration, value added, transfer, stamp and similar Taxes, fees and costs (collectively, “Transfer Taxes”) imposed on the sale of the Shares pursuant to this Agreement, and each shall be entitled
to 50% of any refund or reduction in Transfer Taxes relating thereto. 

  

	6.9	Taxes Governed by Article VI. Claims for indemnification with respect to Taxes shall be governed by this Article VI but not by any other provision of
Article IX. 

  

	6.10	Survival. All rights and obligations under this Article VI shall survive the Closing Date and continue until sixty (60) days following the expiration
of the relevant statutes of limitation (including all periods of extension). The Tax Representations shall not survive the Closing. 

  

	6.11	Post-Closing Dispositions. For the avoidance of doubt, the covenants of the Buyers and the QNX Entities set forth in this Article VI shall apply to the
Buyers and the QNX Entities regardless of any post-Closing disposition of the QNX Entities by the Buyers or any of their Subsidiaries. 

  

	6.12	Tax Treatment of Payments. Parent, the Buyers, the QNX Entities and their respective Affiliates shall treat any and all payments under this Article VI or
Section 2.4 or Article IX as an adjustment to the Purchase Price for Tax purposes unless they are required to treat such payments otherwise by Applicable Laws. 

 

	6.13	Section 338 Election. The Buyers covenant that they shall not make, and shall cause their Affiliates not to make, an election under Section 338(g) of
the Code and the Treasury Regulations promulgated thereunder (or any similar election under state, local or foreign Tax law) with respect to any of the QNX Entities. 

 

 - 69 - 

	6.14	Tax Treatment. Buyers agree to treat, and cause their Affiliates to treat, for United States Federal income and applicable state and local Tax purposes, the sale
of all of the outstanding shares of QSSC as a sale and purchase of all the assets of QSSC and its Subsidiaries. 

  

	6.15	After-Tax Indemnification. The amount of any indemnification payment required to be made pursuant to this Agreement shall be (i) reduced by an amount equal
to any resulting actual Tax Benefit realized or to be realized by the indemnified party with respect to the taxable year in which the indemnification amount is received (or a prior taxable year), and (ii) increased by any Taxes attributable to
the receipt of such payment. If, as a result of the incurrence or payment of any indemnified Loss or Tax by an indemnified party, the indemnified party actually realizes a Tax Benefit with respect to a taxable year after the taxable year in which
the indemnification amount is received, then the indemnified party shall pay, or cause to be paid, to the indemnifying party the amount of such Tax Benefit, provided, however, that any such payment of the amount of a Tax Benefit shall be paid no
later than thirty (30) days of the filing of any Tax Return in which such Tax Benefit is actually realized and that any such amount to be paid by the indemnified party shall not exceed the amount which the indemnifying party paid to the
indemnified party and provided further, however, that the indemnified party shall not be required to make any payment of the amount of a Tax Benefit in respect of any Tax Benefit that is realized with respect to any taxable period following the
seventh taxable period after the Closing Date. 

  

	6.16	Definitions. For purposes of this Agreement, the following terms shall have the meanings ascribed to them below. 

 

	 	(a)	“Property Taxes” means real, personal, and intangible ad valorem property Taxes. 

 

	 	(b)	“Seller Group” means Parent and each of its Subsidiaries, other than the QNX Entities. 

 

	 	(c)	“Tax Benefit” means the reduction of (or refund of or credit against) Taxes actually realized as a direct result of any item of loss, deduction or
credit or any other item which decreases Taxes paid or payable, including any interest with respect thereto or interest that would have been payable but for such item, net of any Taxes imposed as a result of using or claiming any such credit against
Taxes in a prior year. For purposes of determining when such a reduction of (or refund of or credit against) Taxes has actually been realized, such item shall only be considered to have been applied after all other items of loss, deduction or credit
and any other items which decrease Taxes paid or payable otherwise available to the person claiming such item, in each case arising in the year with respect to which such reduction of (or refund of or credit against) Taxes would have been realized
before taking into account this last sentence of Section 6.16(c) (or any prior year), have been taken into account. 

  

 - 70 - 

	 	(d)	“Tax Claim” means any claim with respect to Taxes made by any Governmental Authority. 

 

	 	(e)	“Tax Item” means any item of income, gain, loss, deduction, credit, recapture of credit or any other item which increases or decreases Taxes paid or
payable, including an adjustment under Section 481 of the Code resulting from a change in accounting method. 

  

	 	(f)	“Tax Proceeding” means any Tax audit, contest, litigation, defense or other proceeding with or against any Governmental Authority or any Tax contest,
litigation, defense or other proceeding under any Tax sharing or Tax allocation agreement. 

 ARTICLE VII

 CONDITIONS TO CLOSING 
  

	7.1	Conditions to the Obligations of the Buyers and Sellers. The obligation of the Buyers and the Sellers to complete the transactions contemplated by this Agreement
is subject to satisfaction or waiver by the Buyers or the Sellers, as applicable, at or prior to Closing, of each of the following conditions: 

  

	 	(a)	No United States or Canadian judicial body shall have issued an order, judgment, injunction or similar decree (that has not been vacated, withdrawn or overturned)
restraining, enjoining or otherwise prohibiting the sale of the Shares; 

  

	 	(b)	The Competition Act Approval shall have been obtained; and 

  

	 	(c)	The parties shall have received the CFIUS Approval. 

  

	7.2	Conditions to the Obligation of the Buyers. The obligation of the Buyers to complete the transactions contemplated by this Agreement is subject to satisfaction
or waiver by the Buyers, at or prior to Closing, of each of the following conditions: 

  

	 	(a)	 the representations and warranties of the Sellers made in or pursuant to this Agreement (i) that are qualified by the expression “Material
Adverse Effect” shall (in the case of this clause (i)) be true and correct at the Closing Time as if made at and as of the Closing Time (except to the extent such representations and warranties expressly speak of an earlier date in which case
such representations and warranties shall be true and correct as of such earlier date) and (ii) that are not qualified by the expression “Material Adverse Effect” shall (in the case of this clause (ii)) be true and correct at the
Closing Time as if made at and as of the Closing Time (without giving effect to any “materiality” qualifications contained in such representations and warranties, and except to the extent such representations and warranties expressly speak
of an earlier date in which case 

  

 - 71 - 

	 	
such representations and warranties shall be true and correct as of such earlier date) except where the failure of any such representation or warranty to be so true and correct would not have or
reasonably be expected to have a Material Adverse Effect, and the Buyers shall have received a certificate confirming the foregoing, signed for and on behalf of the Sellers by two senior officers of each of the Sellers or other persons acceptable to
the Buyers, in form and substance reasonably satisfactory to the Buyers; 

  

	 	(b)	the covenants and agreements contained in this Agreement to be performed by the Sellers at or prior to the Closing Time shall have been performed in all material
respects and the Buyers shall have received a certificate confirming the foregoing, signed for and on behalf of the Sellers by two senior officers of each of the Sellers or other persons acceptable to the Buyers, in form and substance reasonably
satisfactory to the Buyers; 

  

	 	(c)	all Debt and Related Party Debt shall have been repaid, forgiven or otherwise extinguished including the release of any Liens with respect to such Debt and Related
Party Debt; 

  

	 	(d)	the Buyers shall have received resignations from each of the directors of the QNX Entities set out in Schedule 5.9 of the Disclosure Letter effective immediately prior
to the Closing; 

  

	 	(e)	the Buyers shall have received the originals of all of the share certificates representing the Shares, together with duly executed instruments of transfer, for transfer
to the Buyers; 

  

	 	(f)	the Buyers shall have received a duly executed and acknowledged certificate of non-foreign status from Parent as transferor that satisfies the requirements of
Section 1.1445-2(b)(2) of the United States Treasury Regulations Code substantially in the form attached hereto as Exhibit D; 

  

	 	(g)	the Buyers shall have received an opinion of the Sellers’ Canadian counsel, dated the Closing Date, substantially in the form attached hereto as Exhibit B;

  

	 	(h)	the Sellers shall have executed and delivered, or caused to be executed and delivered, to the Buyers (i) a Mutual Non-Solicitation Agreement in the form attached
here to as Exhibit A and (ii) a Transition Services Agreement in the form attached hereto as Exhibit C (the “Transition Services Agreement”); and 

 

	 	(i)	since the date of this Agreement, there shall not have been any event, occurrence, development, change, effect or state of circumstances or facts that has had or would
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

  

 - 72 - 

	7.3	Conditions to the Obligation of the Sellers. The obligation of the Sellers to complete the transactions contemplated by this Agreement is subject to satisfaction
or wavier by the Sellers, at or prior to Closing, of each of the following conditions: 

  

	 	(a)	the representations and warranties of the Buyers and the Guarantor made in or pursuant to this Agreement shall be true and correct in all material respects at the
Closing Time as if made at and as of the Closing Time (except to the extent such representations and warranties expressly speak of an earlier date in which case such representations and warranties shall be true and correct in all material respects
as of such earlier date) and the Sellers shall have received a certificate confirming the foregoing, signed for and on behalf of the Buyers and the Guarantor by two senior officers of each of the Buyers and the Guarantor or other persons acceptable
to the Sellers, in form and substance reasonably satisfactory to the Sellers; 

  

	 	(b)	the covenants and agreements contained in this Agreement to be performed by the Buyers and the Guarantor at or prior to the Closing Time shall have been performed in
all material respects and the Sellers shall have received a certificate confirming the foregoing, signed for and on behalf of the Buyers and the Guarantor by two senior officers of each of the Buyers and the Guarantor or other persons acceptable to
the Sellers, in form and substance reasonably satisfactory to the Sellers; and 

  

	 	(c)	the Buyers shall have executed and delivered, or caused to be executed and delivered, to the Sellers (i) a Mutual Non-Solicitation Agreement in the form attached
hereto as Exhibit A and (ii) the Transition Services Agreement. 

  

	7.4	Frustration of Closing Conditions. None of the Buyers, on one hand, or Sellers, on the other hand, may rely on the failure of any condition set forth in this
Article VII to be satisfied if such failure was caused by such party’s failure to use its commercially reasonable efforts to cause the Closing to occur, as required by Section 5.1 and Section 5.7. 

ARTICLE VIII 

TERMINATION 
  

	8.1	Termination. This Agreement may be terminated and the transactions contemplated hereby may be abandoned, at any time prior to the Closing Time:

  

	 	(a)	by mutual written consent of the Sellers, on the one hand, and the Buyers, on the other hand; 

 

	 	(b)	either by the Buyers or by the Sellers, by written notice to the other, if: 

 

	 	(i)	 any United States or Canadian judicial body shall have issued an order, judgment, injunction or similar decree (that has not been vacated,

  

 - 73 - 

	 	
withdrawn or overturned) permanently restraining, enjoining or otherwise prohibiting the sale of the Shares and such order, judgment, injunction or similar decree shall have become final and non
appealable; 

  

	 	(ii)	the Closing Date shall not have occurred on or prior to January 9, 2011 (the “End Date”); provided, that the right to terminate this
Agreement pursuant to this clause (ii) shall not be available to any party whose failure to fulfill, or cause to be fulfilled in any manner, any obligation under this Agreement has contributed to the failure of the Closing to have occurred by
the End Date; 

  

	 	(c)	by the Sellers, upon written notice to the Buyers, in the event that (i) any of the Buyers’ representations or warranties set forth in this Agreement shall
fail to be true and correct or (ii) the Buyers shall have breached any of their covenants or agreements set forth in this Agreement, in each case of clauses (i) and (ii) such that the conditions set forth in Section 7.1 or
Section 7.3 would not be satisfied and, in each such case of clauses (i) and (ii) such failure or breach shall not have been cured prior to the earlier of (x) thirty (30) Business Days following notice of such failure or
breach to the Sellers and (y) the End Date; provided, that no Seller shall have the right to terminate this Agreement pursuant to this Section 8.1(c) if any Seller is then in material breach of any of its covenants or agreements
contained in this Agreement; and 

  

	 	(d)	by the Buyers, upon written notice to the Sellers, in the event that (i) any of Sellers’ representations or warranties set forth in this Agreement shall fail
to be true and correct or (ii) the Sellers shall have breached any of their covenants or agreements set forth in this Agreement, in each case of clauses (i) and (ii), such that the conditions set forth in Section 7.1 or
Section 7.2 would not be satisfied and, in each such case of clauses (i) and (ii) such failure or breach shall not have been cured prior to the earlier of (x) thirty (30) Business Days following notice of such failure or
breach to the Buyers and (y) the End Date; provided, that no Buyer shall have the right to terminate this Agreement pursuant to this Section 8.1(d) if any Buyer is then in material breach of any of its covenants or agreements
contained in this Agreement. 

  

	8.2	Effect of Termination. In the event of the termination of this Agreement pursuant to Section 8.1 by Buyers, on the one hand, or Sellers, on the other hand,
written notice thereof shall forthwith be given to the other party specifying the provision hereof pursuant to which such termination is made, and this Agreement shall be terminated and become void and have no effect, except that Sections 5.4
(first sentence only), 10.2, 10.4, 10.9, 10.11, 10.12, and 10.13 and this Section 8.2 shall survive any termination of this Agreement. Nothing in this Section 8.2 shall relieve any party to this Agreement of liability for willful breach of
this Agreement. For avoidance of doubt, the terms and conditions of the Confidentiality Agreement survive termination of this Agreement for any reason. 

 

 - 74 - 

	8.3	Extension; Waiver. At any time prior to the Closing Time, either the Sellers or the Buyers may (a) extend the time for the performance of any of the
obligations or other acts of the other party, (b) waive any inaccuracies in the representations and warranties contained in this Agreement or in any document delivered pursuant to this Agreement or (c) waive compliance with any of the
agreements or conditions contained in this Agreement. Any such extension shall be valid only if set forth in an instrument in writing signed by the party granting such extension and any such waiver shall be subject to Section 10.3.

 ARTICLE IX 

INDEMNIFICATION 
  

	9.1	Survival of Representations and Warranties. All representations and warranties of the Sellers, the Buyers and the Guarantor in this Agreement and claims related
thereto shall survive the consummation of the transactions and continue as follows: 

  

	 	(a)	all representations and warranties in Article III and Article IV shall survive for eighteen (18) months from the Closing Date except as provided in this
Section 9.1; 

  

	 	(b)	the Tax Representations shall not survive the Closing Date; 

  

	 	(c)	the representations and warranties in Sections 3.103 through 3.107, inclusive, shall survive until sixty (60) days after expiration of all applicable statutes
of limitations; 

  

	 	(d)	the representations and warranties in Sections 3.1, 3.2 (first sentence only), 3.4, 3.5, 3.10 (last sentence only), 3.11 (last sentence only), 3.31, 4.1, 4.2, 4.3,
4.7 (first three sentences only) and 4.9 shall not expire; and 

  

	 	(e)	all claims for fraud or willful misconduct shall not expire, 

(in each case, the “Indemnity Deadline”); provided that if any claims for indemnification have been asserted after
the Closing Date prior to the Indemnity Deadline, the representations and warranties or covenants that are the basis for such claim shall continue in effect until final resolution of all such claims. 

All covenants to be performed by the Sellers, the Buyers and the Guarantor after the Closing Date shall continue for the period stated
therein, or, if no such period is stated, indefinitely; provided, however, that all Claims pursuant to Sections 9.2 or 9.3 for any breach of covenant to be performed between the date hereof and Closing shall be brought within twelve
(12) months of the Closing. 
  

	9.2	Indemnification by Sellers. From and after the Closing Date, the Sellers shall, jointly and severally, protect, defend, indemnify and hold harmless each of the
Buyers, the QNX Entities and their respective Affiliates, officers, directors and employees (each party seeking indemnification, a “Buyer Indemnified Person”) from and against: 

 

	 	(a)	any Loss of any Buyer Indemnified Person resulting from, or arising out of, any inaccuracy of any representation or warranty on the part of the Sellers contained in
this Agreement (without giving effect (other than in the case of the representations and warranties set forth in Sections 3.2 (fifth sentence only), 3.16, 3.17(d), 3.22(a), 3.35 through 3.73 (other than Sections 3.38(c), 3.43, 3.47, 3.52, 3.53(a)
and 3.64), 3.87, 3.88, 3.107 and 3.111) to any “Material Adverse Effect” or “materiality” qualifications contained in such representations and warranties); 

 

 - 75 - 

	 	(b)	any Loss of any Buyer Indemnified Person resulting from, or arising out of, any breach of any covenant on the part of the Sellers contained in this Agreement; and

  

	 	(c)	any Loss of any Buyer Indemnified Person resulting from or arising out of any derogation of, or limitation, restriction or detrimental impact on, the QNX Entities’
ownership of all rights, title and interest in and to the copyright in the QNX Proprietary Software and in and to all rights to confidential information therein from claims by third Persons (other than the Buyers and their Affiliates), including any
Losses from claims by third Persons for (i) copyright infringement or misappropriation of trade secrets by any QNX Entity in relation to, or in connection with or arising out of the QNX Proprietary Software, (ii) misappropriation of
confidential information embodied in the QNX Proprietary Software or (iii) any royalty, license or other fee for the QNX Entities’ continued exploitation or use of the QNX Proprietary Software. 

For the absence of doubt, the above provisions of this Section 9.2 shall not apply to the Tax Representations or other Tax matters,
indemnification by Sellers with respect to Taxes being governed by Article VI. 
  

	9.3	Indemnification by Buyers. From and after the Closing Date, the Buyers and the Guarantor shall, jointly and severally, protect, defend, indemnify and hold
harmless each of the Sellers and their respective Affiliates, officers, directors and employees (each party seeking indemnification, a “Seller Indemnified Person”) from and against: 

 

	 	(a)	any Loss of any Seller Indemnified Person resulting from, or arising out of, any inaccuracy of any representation or warranty on the part of the Buyers or the Guarantor
contained in this Agreement (without giving effect to any “Material Adverse Effect” or “materiality” qualifications contained in such representations and warranties); and 

 

	 	(b)	any Loss of any Seller Indemnified Person resulting from, or arising out of, any breach of any covenant on the part of the Buyers or the Guarantor contained in this
Agreement. 

  

	9.4	 Notice of Claim. A Person that may be entitled to be indemnified under this Article IX (the “Indemnified Person”), shall
promptly notify the party or parties liable for such indemnification (the “Indemnifying Person”), in writing of any pending or threatened claim or demand that the Buyers or Sellers, as applicable, have determined give rise or would
reasonably be expected to give rise to a right of indemnification under this 

  

 - 76 - 

	 	
Article IX; provided, however, that the failure to provide such notice shall not release any party from any of its obligations under this Article IX except to the extent
the Indemnifying Party is prejudiced by such failure, it being understood that notices of any Claims must be delivered prior to the expiration of any applicable survival period specified in Section 9.1 for such representation, warranty,
covenant or agreement. Notice of any Claim shall specify with reasonable particularity (to the extent that the information is available): 

  

	 	(a)	whether the Claim is a Direct Claim or a Third Party Claim; 

  

	 	(b)	the factual basis for the Claim, and any provisions of this Agreement, or of any Applicable Laws, relied upon; and 

 

	 	(c)	the amount of the Claim or, if an amount is not then determinable, an approximate and reasonable estimate of the potential amount of the Claim or a statement that such
Indemnified Person is unable in good faith at such time to quantify such amount. 

  

	9.5	Procedure for Indemnification; Direct Claims. Following receipt of notice of a Direct Claim, the Indemnifying Person shall have thirty (30) days to make
such investigation of the Direct Claim as the Indemnifying Person considers necessary or desirable. For the purpose of such investigation, the Indemnified Person shall make available to the Indemnifying Person and its representatives the information
relied upon by the Indemnified Person to substantiate the Direct Claim. If the Indemnified Person and the Indemnifying Person agree at or prior to the expiration of such thirty (30)-day period (or any extension thereof agreed upon by the Indemnified
Person and the Indemnifying Person) as to the validity and amount of the Direct Claim, the Indemnifying Person shall immediately pay to the Indemnified Person the full agreed upon amount of the Direct Claim. If the Indemnified Person and the
Indemnifying Person do not agree within such period (or any mutually agreed upon extension thereof), the Indemnified Person and the Indemnifying Person agree that the Indemnified Person shall be entitled to commence an arbitration proceeding in
accordance with the procedures under Section 10.13 to recover the full amount of the Loss with respect to the Direct Claim and any costs incidental to the proceeding. 

 

	9.6	Procedure for Indemnification; Third Party Claims. 

  

	 	(a)	With respect to any Third Party Claim for which indemnity is sought pursuant to (i) Section 9.3(a) or 9.3(b), the Indemnifying Person shall assume the defense and
control of such Third Party Claim, but shall allow the Indemnified Person a reasonable opportunity to participate in the defense of such Third Party Claim with its own counsel and at its own expense and (ii) Section 9.2(a), 9.2(b) or
9.2(c), the Buyers shall assume the defense and control of such Third Party Claim (with outside legal counsel acceptable to the Indemnifying Party), but shall allow the Indemnifying Party a reasonable opportunity to participate in the defense of
such Third Party Claim with its own counsel and at its own expense (provided that any such expenses shall be counted as Losses for purposes of calculating the cap on indemnification set forth in Section 9.8(b)(ii)). 

 

 - 77 - 

	 	(b)	In the event that any Third Party Claim for which indemnity is sought pursuant to Section 9.2(a), 9.2(b), 9.2(c), 9.3(a) or 9.3(b) is of a nature such that the
Indemnified Person is required by Applicable Laws to make a payment to any Person (a “Third Party”) with respect to such Third Party Claim before the completion of settlement negotiations or related legal proceedings, the
Indemnified Person may make such payment and the Indemnifying Person shall, forthwith after demand by the Indemnified Person, reimburse the Indemnified Person for any such payment. If the amount of any liability under the Third Party Claim which is
indemnifiable hereunder and in respect of which such a payment was made, as finally determined, is less than the amount which was paid by the Indemnifying Person to the Indemnified Person, the Indemnified Person shall, forthwith after receipt of the
difference from the Third Party, pay such difference to the Indemnifying Person. 

  

	 	(c)	The Indemnified Person and the Indemnifying Person shall cooperate fully with each other with respect to Third Party Claims, shall keep each other fully advised with
respect thereto (including supplying copies of all relevant documentation promptly as it becomes available) and shall each designate a senior officer who will keep himself or herself informed about and be prepared to discuss the Third Party Claim
with his or her counterpart and with legal counsel at all reasonable times. 

  

	 	(d)	With respect to any Third Party Claim for which indemnity is sought pursuant to (i) Section 9.3(a) or 9.3(b) the Indemnifying Party shall be authorized to consent
to a settlement of, or the entry of any judgment arising from, any Third Party Claim, without the consent of any Indemnified Person; provided that the Indemnifying Party shall (A) pay or cause to be paid all amounts in such settlement or
judgment and (B) obtain, as a condition of any settlement or other resolution, a release of the Indemnified Person affected by such Third Party Claim and (ii) Section 9.2(a), 9.2(b) or 9.2(c), the Buyers shall not consent to a
settlement of, or the entry of any judgment arising from, such Third Party Claim, without the consent of the Sellers. 

  

	 	(e)	The above provisions of this Section 9.6 shall not apply to Tax Proceedings. 

 

	9.7	No Right to Set-off. Notwithstanding any other provisions of this Agreement or the Transaction Documents to the contrary, no party shall have any right to
off-set or set-off any payment due pursuant to this Article IX against any other payment to be made pursuant to this Agreement or the Transaction Documents or otherwise. 

 

 - 78 - 

	9.8	Sellers Limits on Indemnification. Subject to Section 9.10 but otherwise notwithstanding any other provision of this Agreement to the contrary, Sellers
shall not be required to indemnify, defend or hold harmless any Buyer Indemnified Person against, or reimburse any Buyer Indemnified Person for: 

  

	 	(a)	any Losses pursuant to Section 9.2(a) or 9.2(b), (i) to the extent such Loss was taken into account in the Adjustment Amount procedures set forth in
Section 2.4, (ii) in excess of $40,000,000 (forty million United States Dollars) (less any amounts paid pursuant to Section 9.2(c)), (iii) with respect to any claim unless such claim involves Losses (A) pursuant to 9.2(a),
and solely in respect of breaches of the representations and warranties set forth in Sections 3.37(a) (solely with respect to any Claim related to the infringement, unauthorized use, or violation of any Intellectual Property Rights), 3.37(e),
3.38(a), 3.38(c), 3.43, 3.47, 3.52, 3.53(a) and 3.64, in excess of $600,000 and (B) in all other cases, in excess of $25,000 (in the case of clauses (A) and (B), nor shall such claims be applied to or considered for purposes of calculating
the aggregate amount of Claims for purposes of the following clause (iv)) and (iv) unless the aggregate amount of Claims for indemnification pursuant to Sections 9.2(a), 9.2(b) and 9.2(c) are in excess of $6,000,000 (six million United
States Dollars) (provided, however, that after the aggregate amount of such Claims are in excess of such amount, the Buyers shall be entitled to receive the full amount of the Buyers’ Claims, subject to the other limitations set
forth in this Article IX); and 

  

	 	(b)	any Losses pursuant to Section 9.2(c), (i) to the extent such Loss was taken into account in the Adjustment Amount procedures set forth in Section 2.4,
(ii) in excess of $80,000,000 (eighty million United States Dollars) (less any amounts paid pursuant to Section 9.2(a) or 9.2(b)), (iii) with respect to any claim unless such claim involves Losses in excess of $25,000 (nor shall any
such claims be applied to or considered for purposes of calculating the aggregate amount of Claims for purposes of the following clause (iv)), (iv) unless the aggregate amount of Claims for indemnification pursuant to Sections 9.2(a),
9.2(b) and 9.2(c) are in excess of $6,000,000 (six million United States Dollars) (provided, however, that after the aggregate amount of such Claims are in excess of such amount, the Buyers shall be entitled to receive the full amount
of the Buyers’ Claims, subject to the other limitations set forth in this Article IX) and (v) on or following the date that is twenty one (21) months from the Closing Date (provided that if any claims for indemnification
pursuant to Section 9.2(c) have been asserted prior to such date, such claims and the obligations of the Sellers pursuant to Section 9.2(c) shall continue in effect until final resolution of all such claims). 

 

	 	(c)	For the avoidance of doubt, in any case Sellers shall not be required to indemnify, defend or hold harmless any Buyer Indemnified Person against, or reimburse any Buyer
Indemnified Person for amounts (i) under this Article IX in excess of $80,000,000 (eighty million United States Dollars) in the aggregate, (ii) under Sections 9.2(a) and 9.2(b) in excess of $40,000,000 (forty million United
States Dollars) in the aggregate and (iii) in respect of a particular Claim, under both Sections 9.2(a) or 9.2(b), on the one hand, and Section 9.2(c), on the other hand. If any Claim for indemnity by the Buyers pursuant to
Section 9.2(a) may be brought as a breach of any representation or warranty set forth in Section 3.37(a), 3.37(e), 3.38(a), 3.38(c), 3.43, 3.47, 3.52, 3.53(a) or 3.64, then such Claim shall only be brought as a breach under such
representations or warranties and shall not be brought under any other representations or warranties. 

  

 - 79 - 

	9.9	Buyers Limits on Indemnification. Notwithstanding any other provision of this Agreement to the contrary, Buyers shall not be required to indemnify, defend or
hold harmless any Seller Indemnified Person against, or reimburse any Seller Indemnified Person for any Losses pursuant to Section 9.3(a) or 9.3(b), (a) if such Loss was included in connection with the Adjustment Amount procedures set
forth in Section 2.4, (b) in excess of $40,000,000 (forty million United States Dollars), (c) with respect to any claim unless such claim involves Losses in excess of $25,000 (nor shall such claims be applied to or considered for
purposes of calculating the aggregate amount of Claims for purposes of the following clause (d)) and (d) unless the aggregate amount of Claims for indemnification pursuant to Sections 9.3(a) and 9.3(b) are in excess of $6,000,000 (six
million United States Dollars) (provided, however, that after the aggregate amount of such Claims are in excess of such amount, the Sellers shall be entitled to receive the full amount of the Sellers’ Claims, subject to the other
limitations set forth in this Article IX). 

  

	9.10	Indemnification for Fraud, Etc. Notwithstanding Section 9.8, in the event of a Claim by the Buyers based on fraud or willful misconduct or a Claim by the
Buyers for breach of Sections 3.10 (the last sentence only) or 3.11 (last sentence only), the reference to $40,000,000 (forty million United States Dollars) in Section 9.8(a)(ii), the reference to $80,000,000 (eighty million United States
Dollars)in Section 9.8(b)(ii) shall be replaced with $200,000,000 (two hundred million United States Dollars). 

  

	9.11	Exclusive Remedies. Except (a) as provided in Section 10.2 with respect to breaches or threatened breaches of this Agreement, (b) with respect to
the Adjustment Amount procedures set forth in Section 2.4 and (c) with respect to any matter relating to Taxes (which shall be governed by Article VI), Sellers and the Buyers acknowledge and agree that, following the Closing, the
indemnification provisions of this Article IX shall be the sole and exclusive remedies of Sellers and the Buyers, respectively, for any Losses (including any Losses from claims for breach of contract, warranty, tortious conduct (including
negligence) or otherwise and whether predicated on common law, statute, strict liability, or otherwise) that each party may at any time suffer or incur, or become subject to, as a result of, or in connection with, any breach of any representation or
warranty in this Agreement by the other party or any failure by the other party to perform or comply with any covenant or agreement in this Agreement that, by its terms, was to have been performed, or complied with, by such other party prior to the
Closing. Without limiting the generality of the foregoing, the parties hereby irrevocably waive any right of rescission they may otherwise have or to which they may become entitled. 

 

	9.12	 Additional Indemnification Provisions. With respect to each of the indemnification obligations set forth in this Article IX or in any
Transaction Document (a) all Losses shall be net of any third party insurance proceeds that have been recovered by the Indemnified Person in connection with the facts giving rise to the right of indemnification, (b) other than in the case
of fraud, in no event shall an Indemnifying Person have liability to an Indemnified Person for any consequential, special, incidental, indirect or punitive damages, lost profits or similar items (provided that any such damages actually owed by

  

 - 80 - 

	 	
an Indemnified Person to a third Person that is not an Affiliate of such Indemnified Person with respect to an indemnifiable Third Party Claim will be indemnifiable Losses subject to the
limitations of this Article IX so long as such damages were not caused by the wanton misconduct of any Indemnified Person) and (c) the Sellers shall have no liability to indemnify any Indemnified Person with respect to any Losses caused by or
resulting from (i) any action taken at the direction of the Buyers or (ii) the Sellers’ and the QNX Entities’ having taken or having refrained from taking any action in order to be in compliance with Section 5.5.

  

	9.13	Mitigation. Each of the parties agrees to take all reasonable steps to mitigate their respective Losses upon and after becoming aware of any event or condition
that would reasonably be expected to give rise to any Losses that are indemnifiable hereunder. 

  

	9.14	No Jury Trial. The parties expressly waive any right to have claims brought in relation to this Agreement heard by a jury and, subject to Section 10.13,
agree that any such claims shall be heard before a judge sitting alone. 

 ARTICLE X 

MISCELLANEOUS 
  

	10.1	Notices. All notices, requests and other communications to any party hereunder shall be sufficient if in writing and sent by facsimile transmission (provided
that any notice received by facsimile transmission or otherwise at the addressee’s location on any non-Business Day or any Business Day after 5:00 p.m. (addressee’s local time) shall be deemed to have been received at 9:00 a.m.
(addressee’s local time) on the next Business Day), by reliable overnight delivery service (with proof of service) or hand delivery, and shall be given, 

if to the Buyers, to: 

c/o Research In Motion Limited 

Attn: President 

c/o 295 Phillip Street 

Waterloo, Ontario, Canada 

N2L 3W8 
 Fax:
(519) 888-7835 
 with a copy (excluding invoices) to: 

c/o Research In Motion Limited 

Attn: Legal Department 

176 Columbia Street 

West Waterloo, Ontario, Canada 

N2L 3L3 
 Fax:
(519) 888-7349 
  

 - 81 - 

 If to the Sellers, to: 

Harman International Industries, Incorporated 

Attn: Legal Department 

400 Atlantic Street, 15th Floor 

Stamford, CT 06901, USA 

Fax: (203) 328-3978 

with a copy (excluding invoices) to: 

Wachtell, Lipton, Rosen & Katz 

Attn: Joshua R. Cammaker 

51 West 52nd Street 

New York, NY 10019, USA 

Fax: (212) 403-2000 

if to the Guarantor, to: 

Research In Motion Limited 

Attn: President 

c/o 295 Phillip Street 

Waterloo, Ontario, Canada 

N2L 3W8 
 Fax:
(519) 888-7835 
 with a copy (excluding invoices) to: 

c/o Research In Motion Limited 

Attn: Legal Department 

176 Columbia Street 

West Waterloo, Ontario, Canada 

N2L 3L3 
 Fax:
(519) 888-7349 
 Any party to this Agreement may modify the notification details specified in this paragraph by delivering
written notice of such modifications to each of the other parties as provided in this Section 10.1; provided, however, that any such modification shall only be effective on the date specified in such notice or five Business Days
after the notice is given, whichever is later. 
  

	10.2	 Remedies. The parties acknowledge and agree that an award of damages would be inadequate for any breach of this Agreement by any party or its
representatives, advisors or agents and that such breach would cause the non-breaching party irreparable harm. Accordingly, the parties agree that, in the event of any such breach or threatened breach of this Agreement by one of the parties, the
Sellers (if the Buyers or the Guarantor is the breaching party) or the Buyers (if the Sellers are the breaching party) will be entitled, without the requirement of posting a bond or other security, to equitable relief, including the issuance of
injunctive relief by the Ontario Courts to compel performance of such 

  

 - 82 - 

	 	
party’s obligations, or to prevent such party from breaches or threatened breaches of this Agreement and the granting of specific performance of such party’s obligations hereunder.
Except as otherwise expressly provided herein, such remedies will not be the exclusive remedies for any breach of this Agreement but will be in addition to all other remedies available at law or in equity to each of the parties.

  

	10.3	Amendments; No Waivers. 

  

	 	(a)	Except as expressly provided otherwise herein, no amendment or waiver of this Agreement shall be binding unless executed in writing and signed, in the case of an
amendment, by the Buyers, the Sellers and the Guarantor or, in the case of a waiver, by the party against whom the waiver is to be effective. No waiver of any provision of this Agreement shall constitute a waiver of any other provision nor shall any
waiver of any provision of this Agreement constitute a continuing waiver unless expressly provided for herein or therein. No investigation or waiver made by or on behalf of any party shall have the effect of waiving, diminishing the scope of or
otherwise affecting any representation or warranty made by any other party pursuant to this Agreement. 

  

	 	(b)	No failure or delay by any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise
thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

  

	10.4	Expenses. Except as may be otherwise specified in this Agreement or the Transaction Documents, each party shall be responsible for and bear all of its own costs
and expenses incurred in connection with this Agreement and the Transaction Documents, including expenses of its representatives incurred at any time in connection with pursuing or consummating the transactions contemplated by this Agreement and the
Transaction Documents, whether or not the Closing shall have occurred. For greater certainty, the Sellers shall be responsible for and bear all of the costs and expenses, including legal fees, of the QNX Entities relating to the period up to and
including the Closing Time. 

  

	10.5	Benefit of the Agreement. Subject to Section 10.6, the provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective heirs, executors, successors and assigns. 

  

	10.6	Assignment. No party to this Agreement may assign its rights, interests or obligations under this Agreement (whether by operation of law or otherwise) without
the prior written consent of the other parties, and any such purported assignment is void; provided that the Sellers may assign any or all of their rights and obligations under this Agreement to any subsidiary of Parent so long as no such assignment
shall release the Sellers from any liability or obligation under this Agreement. 

  

 - 83 - 

	10.7	Further Assurances. 

  

	 	(a)	From time to time after the Closing, each party will, at the request of any other party and without further consideration, execute and deliver to the requesting party
such other documents, and take such other action, as such requesting party may reasonably request in order to vest in the Buyers good, valid and marketable title to the Shares and the Intellectual Property Rights owned by each QNX Entity and to give
the Buyers contractual rights to the Intellectual Property Rights licensed to each QNX Entity. 

  

	 	(b)	If, after the Closing, the Sellers or their Affiliates receive any funds that are the property of the Buyer or its Affiliates (including the Companies), Parent shall,
or shall cause one of its Affiliates to, remit any such funds, and any cash and cash equivalents of the QNX Entities included in the adjustment to the Purchase Price in accordance with Section 5.14, promptly to Buyer or such Affiliate. If,
after the Closing, the Buyer or its Affiliates (including the Companies) receive any funds that are the property of the Sellers or their Affiliates, the Buyer shall, or shall cause one of its Affiliates to, remit any such funds promptly to such
Seller or such Affiliate. 

  

	10.8	No Third Party Beneficiaries. This Agreement is for the sole benefit of the parties and their permitted successors and assigns, and nothing in this Agreement,
express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy. No provision of this Agreement shall create any third party beneficiary or other rights in any employee or former employee
(including any beneficiary or dependent thereof) of the QNX Entities in respect of continued employment (or resumed employment) with the QNX Entities, and no provision of this Agreement shall create any such rights in any such Persons in respect of
any benefits that may be provided, directly or indirectly, under any Benefit Arrangement or any plan or arrangement that may be established by the Buyers or any of their Affiliates. 

 

	10.9	Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the Province of Ontario and the laws of Canada applicable
therein, including all matters of construction, validity and performance, in each case without reference to any conflict of Law rules that might lead to the application of the Laws of any other jurisdiction. 

 

	10.10	Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each party shall have received a counterpart hereof signed by the other parties hereto. This Agreement may be executed and delivered by facsimile
transmission and such facsimile copy will be deemed to be an original. 

  

	10.11	 Entire Agreement. Except as otherwise expressly provided in this Agreement or the Transaction Documents, this Agreement, the Transaction
Documents and the Confidentiality Agreement constitute the entire agreement among the parties with respect to the transactions contemplated by this Agreement and the Transaction Documents and supersede all prior agreements, understandings and
negotiations, both written and oral, 

  

 - 84 - 

	 	
among the parties with respect to the subject matter hereof. No representation, inducement, promise, understanding, condition or warranty not set forth herein has been made or relied upon by any
party with respect to this Agreement. 

  

	10.12	Jurisdiction. Subject to Section 10.13, any suit, action or proceeding seeking to enforce any provision of, or arising out of or relating to, this Agreement
or any of the Transaction Documents shall be brought in the courts of the Province of Ontario (the “Ontario Courts”), and each of the parties hereby consents to the jurisdiction of such courts (and of the appropriate appellate
courts) in any such suit, action or proceeding and agrees that it will not bring any action relating to this Agreement or the Transaction Documents in any court other than the Ontario Courts. Each of the parties hereby waives (a) any obligation
to forum or venue laid therein, (b) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than failure to serve in accordance with this Section 10.12 and (c) any claim that it
or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of
judgment or otherwise). Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the Province of Ontario, by means of the notice procedures set forth in Section 10.1 and each
party agrees that service of any process, summons, notice or document by registered mail (return receipt requested and first-class postage prepaid) to the respective addresses set forth in Section 10.1 shall be effective service of process for
any suit or proceeding in connection with this Agreement or the transactions contemplated by this Agreement. 

  

	10.13	Arbitration. Any dispute between or amongst the parties arising in relation to a Claim pursuant to Section 9.2 or Section 9.3 shall be resolved through
arbitration administered by and in accordance with the National Arbitration Rules of the ADR Institute of Canada Inc. (the “Institute”) pursuant to the International Commercial Arbitration Act (Ontario) and based upon the
following: 

  

	 	(a)	the arbitration tribunal shall consist of one arbitrator appointed by mutual agreement of the parties, or in the event of failure to agree on an arbitrator within ten
(10) Business Days of the date on which a dispute is determined to be resolved through arbitration, then either party may request that the Institute appoint the arbitrator from the list of qualified arbitrators maintained by the Institute. If
the Institute fails to appoint an arbitrator within fourteen (14) Business Days of being asked to do so, any party hereto may apply to have the arbitrator appointed by a judge of the Ontario Superior Court of Justice; 

 

	 	(b)	the seat of the arbitration shall be in Toronto, Ontario and it shall be conducted in the English language; 

 

	 	(c)	the arbitration award(s) shall be given in writing and shall be final and binding on the parties and shall deal with the question of costs of arbitration and all
matters related thereto; and 

  

 - 85 - 

	 	(d)	judgment upon the award rendered may be entered in any court having jurisdiction, or, application may be made to such court for a judicial recognition of the award or
an order of enforcement thereof, as the case may be. 

  

	10.14	Severability. Any term or provision of this Agreement that is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the
extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is declared invalid, illegal or incapable of
being enforced by any court of law having jurisdiction over the parties and this Agreement, the parties shall engage in good faith negotiations to modify this Agreement so as to effect the original intent of the parties as closely as possible in an
acceptable, valid and enforceable manner to the end that the transactions contemplated by this Agreement are fulfilled to the fullest extent possible. 

[Signature Page Follows] 
  

 - 86 - 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first
above written. 
  

			
	2236008 ONTARIO INC.
		
	Per:	 	 /s/ James Yersh

		 	Authorized Signatory
	
	RESEARCH IN MOTION CORPORATION
		
	Per:	 	 /s/ Jim Balsillie

		 	Authorized Signatory
	
	RESEARCH IN MOTION LIMITED
		
	Per:	 	 /s/ James Yersh

		 	Authorized Signatory

			
	HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
		
	Per:	 	 /s/ Todd A. Suko

		 	Authorized Signatory
	
	HARMAN HOLDING GMBH & CO. KG
		
	By:	 	Harman Management GmbH, as General Partner
		
	Per:	 	 /s/ Michael Mauser

		 	Authorized Signatory
		
	Per:	 	 /s/ Frank Groth

		 	Authorized Signatory

  

 - 2 -Amended and Restated Services Agreement

 Exhibit 10.20 

AMENDED AND RESTATED 

SERVICES AGREEMENT 

dated as of 

April 8, 2010 

between 

Express, LLC 

and 
 Limited
Brands, Inc. 

 TABLE OF CONTENTS 

 

			
	 	  	Page
		
	 Article 1 Definitions
	  	1
	 Section 1.01. Definitions
	  	1
	 Section 1.02. Internal Reference
	  	4
		
	 Article 2 PURCHASE AND SALE OF SERVICES
	  	4
	 Section 2.01. Purchase and Sale of Services
	  	4
	 Section 2.02. Additional Services
	  	5
		
	 Article 3 SERVICE COSTS
	  	5
	 Section 3.01. Service Costs Generally
	  	5
	 Section 3.02. Subcontractors
	  	6
	 Section 3.03. Title to Assets; Methods, etc.
	  	6
	 Section 3.04. Customary Billing
	  	7
	 Section 3.05. Pass-Through Pilling
	  	7
	 Section 3.06. Percent of Sales Billing
	  	7
	 Section 3.07. Fixed Fee Billing
	  	8
	 Section 3.08. Capital Investments
	  	8
	 Section 3.09. Invoicing and Settlement of Costs
	  	8
	 Section 3.10. Amended Schedules
	  	10
		
	 Article 4 PROVISION OF SERVICES; INDEMNIFICATION
	  	10
	 Section 4.01. General Standard of Service
	  	10
	 Section 4.02. Ownership of Products
	  	11
	 Section 4.03. Review Meetings
	  	11
	 Section 4.04. Limitation of Liability
	  	11
	 Section 4.05. Indemnification of Limited Brands by the Company
	  	12
	 Section 4.06. Indemnification of the Company by Limited Brands
	  	12
	 Section 4.07. Notice of Certain Matters
	  	13
	 Section 4.08. Indemnification Procedures
	  	13
		
	 Article 5 TERM AND TERMINATION
	  	14
	 Section 5.01. Term
	  	14
	 Section 5.02. Termination by the Parties.
	  	14
	 Section 5.03. Transfer of Associates
	  	14
	 Section 5.04. Effect of Termination.
	  	15
	 Section 5.05. Notification of Change of Control
	  	16
		
	 Article 6 MISCELLANEOUS
	  	16
	 Section 6.01. Confidential Information; Non-Solicitation
	  	16
	 Section 6.02. Audits
	  	17
	 Section 6.03. No Agency
	  	18
	 Section 6.04. Force Majeure
	  	18
	 Section 6.05. Entire Agreement; Successors and Assigns
	  	19

  

 i 

			
	 Section 6.06. Notices
	  	19
	 Section 6.07. Governing Law
	  	21
	 Section 6.08. Jurisdiction
	  	21
	 Section 6.09. WAIVER OF JURY TRIAL
	  	21
	 Section 6.10. Severability
	  	21
	 Section 6.11. Amendment
	  	21
	 Section 6.12. Counterparts
	  	22
	 Section 6.13. Headings; Interpretation and Construction
	  	22
	 Section 6.14. Mutual Contribution
	  	22

  

			
	Schedule I	  	Information Technology Services
	Schedule II	  	Production and Sourcing Support Services

  

 ii 

 AMENDED AND RESTATED SERVICES AGREEMENT 

This Amended and Restated Services Agreement (this “Agreement”) is entered into as of April 8, 2010 by and between
Express, LLC, a Delaware limited liability company (the “Company”), and Limited Brands, Inc., a Delaware corporation (“Limited Brands”). 

W I T N E S S E T H: 

WHEREAS, on July 6, 2007, the Company and Limited Brands entered into that certain Services Agreement (the “Prior
Agreement”) whereby the Company obtained certain services from Limited Brands, on the terms and subject to the conditions set forth therein; and 

WHEREAS, the Company and Limited Brands desire to amend and restate the terms of the Prior Agreement, effective as of the date hereof; it
being understood and agreed by each of the undersigned that each party’s obligations pursuant to the Prior Agreement shall survive until such obligations have been performed in accordance with the terms thereof. 

NOW, THEREFORE, the parties hereto agree as follows: 

ARTICLE 1 

DEFINITIONS 

Section 1.01. Definitions. (a) All terms used but not defined herein shall have the meanings ascribed to them in the
Unit Purchase Agreement. The following terms, as used herein, have, the following meanings, applicable to both the singular and the plural forms of the terms described: 

“Agreement” has the meaning ascribed thereto in the preamble hereto, as such agreement may be amended and supplemented
from time to time in accordance with its terms. 
 “Change of Control of the Company” means any
“Transfer” (as defined in the LLC Agreement), transaction or series of transactions which results in (i) any Person (other than Buyer and its Affiliates or Limited Brands and its Affiliates) acquiring directly or indirectly 25%
or more of the Total Voting Power of Express Parent LLC (“Parent”) or (ii) any Person (other than Buyer and its Affiliates or Limited Brands and its Affiliates) acquiring “control” (as defined in the Affiliate
definition of Section 1.01 of the Unit Purchase Agreement) of Parent. 
 “Disengagement Costs”
means any and all direct or indirect out-of-pocket fees, and all other out-of-pocket costs, charges and expenses of any kind incurred by the Limited Entities, the Company and/or its Subsidiaries in connection with the termination of this Agreement
and/or relating to the cessation of Services hereunder including, without limitation, all third party charges, costs and/or fees; all third party cancellation and/or termination charges, costs and/or fees; the market value of all Disengagement
Services provided by other Persons (but not Limited Brands’ personnel) and a portion (as determined in this paragraph below) of the out-of-pocket costs of appropriate severance payments to all employees of the Limited Entities (the
“Severance Payments”) that will be terminated by the Limited Entities as a result of the termination of this Agreement and/or the cessation of any Services hereunder (each a “Severed Employee” and collectively the
“Severed Employees”) as specified below. Consistent with 

 
Section 6.01(d) of this Agreement, Limited Brands will at the request of the Company allow the Company to provide to each Severed Employee the opportunity to become an employee of the
Company but in the event that any such Severed Employee chooses not to become an employee of the Company, Limited Brands will pay each such Severed Employee’s Severance Payments as determined and specified below. With respect to any such
Severed Employee that accepts the Company’s offer of employment, no such Severance Payments shall be made to such Severed Employee provided that Limited Brands is notified in writing that such Severed Employee has accepted the Company’s
offer of employment prior to Limited Brands’ payment of Severance Payments to any such Severed Employee (which shall not occur until such Severed Employee’s termination of employment). In connection with the foregoing, (i) the Company
and Limited Brands shall determine by mutual agreement in good faith the amount of such Severance Payments for each Severed Employee and in each case such Severance Payments shall be no less than the amount of severance that would be paid if
determined consistent with the then applicable guidelines of Limited Brands relating to severance payments (it being agreed that in no event shall the Company be responsible for any severance in any separate agreement between the Limited Entities
and any affected employee which provides for severance payments in addition to, or in lieu of, those provided by the then applicable guidelines of Limited Brands relating to severance payments except for any severance obligations arising in
customary agreements executed by Limited Brands’ associates ranking Vice President or above which agreements do not provide for more than 12 months Severance Payments payable to such Limited Brands’ associates and in which case the
severance provisions of the applicable customary agreements shall govern the amount of Severance Payments to be made to each applicable Severed Employee); (ii) the Company shall pay a portion of the Severance Payments to be made to each Severed
Employee in an amount equal to (A) the aggregate Severance Payments to be paid to each such Severed Employee multiplied by (B) a percentage which Limited Brands and the Company shall determine in good faith by dividing the estimated amount
of hours that each such Severed Employee dedicated to performing the Services hereunder on an annualized basis by the total hours of work time for each such Severed Employee on an annualized basis; and (iii) the Company and Limited Brands
otherwise shall work collaboratively and each shall have an ongoing affirmative duty to endeavor in good faith, using commercially reasonable efforts, to mitigate the amount of Disengagement Costs upon the termination of this Agreement and/or the
cessation of any Service hereunder. Notwithstanding anything in this Agreement to the contrary, due to the one time nature of the Disengagement Costs, the parties acknowledge and agree that in no event shall any allocated costs or mark-up be
included in the calculation of the Disengagement Costs. 
 “Disengagement Services” means all Services provided
hereunder primarily for the purpose of disengaging and transitioning Services from Limited Brands to the Company. 

“Limited Entities” means Limited Brands and its Subsidiaries, and “Limited Entity” means any of the
Limited Entities. 
 “Products” means apparel and accessory or other merchandise (of a type typically sold by
the Company) acquired for re-sale by the Company. 
 “Schedules” means Schedules I and II hereto, any
additional Schedule hereto by written agreement of the parties, and Schedule IX (Customer and Marketing Services) to the Prior Agreement (the terms and conditions of which are hereby incorporated herein and made a part hereof by this reference).

  

 2 

 “Service Recipient” means the Company and Limited Stores, LLC (or any other
entity receiving services equivalent to the Services on behalf of the business operated by Limited Stores, LLC as of the Closing Date). 

“Services” means all of the various ongoing and other services described in any and all of the Schedules, together with
the Disengagement Services. “Service” means any of the Services. 
 “Subsidiary” (and,
collectively, “Subsidiaries”) means, at any time, with respect to any Person (the “Subject Person”), (1) any Person of which either (x) more than 50% of the shares of stock or other interests entitled to
vote in the election of directors or comparable Persons performing similar functions (excluding shares or other interests entitled to vote only upon the failure to pay dividends thereon or other contingencies) or (y) more than a 50% interest in
the profits or capital of such Person, are at the time owned or controlled, directly or indirectly by the Subject Person or (2) any Person whose assets, or portions thereof, are consolidated with the net earnings of the Subject Person and are
recorded on the books of the Subject Person for financial reporting purposes in accordance with generally accepted accounting principles in effect in the country in which the Subject Person is incorporated. 

“Total Voting Power” means the aggregate number of Units of Parent then issued and outstanding. 

“Unit Purchase Agreement” means that certain Unit Purchase Agreement, dated as of May 15, 2007, as amended on
July 6, 2007, among Express Investment Corp., Limited Brands Store Operations, Inc., Express Holding, LLC and Limited Brands. 

(a) Each of the following terms is defined in the Section set forth opposite such term: 

 

			
	 Term
	  	Section
	 Additional Service(s)
	  	2.02
	 Administrative Charge
	  	3.01
	 Allocated Cost
	  	3.01
	 Assets
	  	3.03
	 Applicable Employee
	  	6.01
	 Capital Investment(s)
	  	3.08
	 Change of Control Notice
	  	5.05
	 Company Indemnified Person(s)
	  	4.06
	 Confidential Information
	  	6.01
	 Cost Component(s)
	  	3.01
	 Customary Billing
	  	3.01/3.04
	 Damages
	  	4.05

  

 3 

			
	 Term
	  	Section
	 Fixed-Fee Billing
	  	3.01/3.07
	 Force Majeure
	  	6.04
	 Indemnified Party
	  	4.08
	 Indemnifying Party
	  	4.08
	 Limited Indemnified Person(s)
	  	4.04
	 Net Sales Ratio
	  	3.06
	 Non-Company Costs
	  	3.01
	 Non-Compliance Notice
	  	4.07
	 Pass-Through Billing
	  	3.01/3.05
	 Percent of Sales Billing
	  	3.01/3.06
	 Proposed Change
	  	3.10
	 Review Meetings
	  	4.03
	 Service Costs
	  	3.01
	 significant increase
	  	3.10
	 Specific Billing
	  	3.01
	 Subcontractor
	  	3.02

 Section 1.02.
Internal Reference. Unless the context indicates otherwise, references to articles, sections and paragraphs shall refer to the corresponding articles, sections and paragraphs in this Agreement and references to the parties shall mean the
parties to this Agreement. 
 ARTICLE 2 

PURCHASE AND SALE OF SERVICES 

Section 2.01. Purchase and Sale of Services. (a) On the terms and subject to the conditions of this Agreement, Limited Brands
agrees to provide to the Company, or procure the provision to the Company of, and the Company agrees to purchase from Limited Brands, the Services. 

(b) Notwithstanding anything herein to the contrary, (1) the Services to be provided to the Company under this Agreement shall, at
the Company’s request, be provided to each Subsidiary of the Company which is directly involved in the operation of Express stores, and (2) Limited Brands shall have the right, in its sole and absolute discretion, to satisfy its obligation
to provide or procure Services hereunder by causing one or more of its Subsidiaries (directly or through one or more Subcontractors as set forth in Section 3.02) to provide or procure such Services in the manner set forth on the Schedules,
(3) in no event shall Limited Brands be required to provide the Company with any Service for any fiscal year at volumes or levels more than 110% of the volumes or levels provided to the Company in the immediately preceding fiscal year with
respect to such Service and (4) with respect to all Services, except as otherwise expressly provided herein, Limited Brands will only make recommendations regarding such Services and the Company shall have the sole responsibility to make and
will make all final decisions and determinations regarding the same. With respect to Services provided to, or 
  

 4 

 
procured on behalf of, any Subsidiary of the Company, the Company agrees to pay or to cause such Subsidiary to pay all amounts payable by or in respect of such Services pursuant to this
Agreement. 
 (c) Notwithstanding anything in this Agreement to the contrary, Limited Brands shall not be obligated to provide
any Service hereunder where the consent of a third party is reasonably required for the provision of such Service. Limited Brands and the Company each shall use its reasonable commercial efforts to cooperate in obtaining any such consent (the terms
of which shall not impose any obligations or conditions on Limited Brands) and the Company shall bear any and all out-of-pocket costs incurred in connection with the obtaining of such consent. 

Section 2.02. Additional Services. In addition to the Services to be provided or procured by Limited Brands in accordance
with Section 2.01, if requested by the Company, and to the extent that Limited Brands and the Company may mutually agree, Limited Brands shall provide additional services to the Company (the “Additional Services”, and each an
“Additional Service”). The scope of any such Additional Services, as well as the term, costs, and other terms and conditions applicable to such Additional Services, shall be as mutually agreed by Limited Brands and the Company and
shall be reflected in amendments or additions to the Schedules as mutually agreed by Limited Brands and the Company. It is understood and agreed that (1) Limited Brands shall be under no obligation to provide or procure any such Additional
Service requested by the Company and (2) any decision to provide or procure any such Additional Service shall be made by Limited Brands in its sole discretion. 

ARTICLE 3 

SERVICE COSTS 

Section 3.01. Service Costs Generally. (a) The Schedules indicate, with respect to each Service listed therein, whether
the costs to be charged to the Company for such Service are determined by (1) the customary billing method described in Section 3.04 (“Customary Billing”), (2) the pass-through billing method described in
Section 3.05 (“Pass-Through Billing”), (3) the percentage of net sales method described in Section 3.06 (“Percent of Sales Billing”), (4) the fixed fee method described in Section 3.07
(“Fixed Fee Billing”), (5) a specific billing method to be mutually agreed upon by the Company and Limited Brands (“Specific Billing”), which may include, without limitation, a cost-plus billing method based
upon the aggregate costs incurred by Limited Brands relative to the particular Service plus a percentage of such costs in consideration of Limited Brands’ procurement and administration (hereinafter referred to as an “Administrative
Charge”) of such Service or (6) some combination thereof. The amounts calculated by the Limited Entities pursuant to the Customary Billing, Pass-Through Billing, Percent of Sales Billing, Fixed Fee Billing and Specific Billing methods
applicable to Services provided to the Company and charged to the Company as provided herein, together with any and all Disengagement Costs incurred in connection with the provision of any and all Disengagement Services, are collectively referred to
herein as the “Service Costs.” 
 (b) The Company agrees to pay to Limited Brands or its designee in the manner
set forth in Section 3.09 the Service Costs applicable to each of the Services actually provided or procured by Limited Brands. 
  

 5 

 (c) The Service Costs calculated pursuant to each of the specific billing methods described
herein may include without limitation (and without duplication) one or more of the following costs: (1) direct (i.e., out-of-pocket) costs incurred by the Limited Entities in providing the Services, (2) a reasonably and fairly
allocated portion of costs or expenses (including without limitation service-specific overhead costs and the costs of depreciation of new and existing assets) incurred by one or more of the Limited Entities in providing services to one or more of
the Limited Entities, their Affiliates and the Company (each, an “Allocated Cost”), and (3) third party costs incurred by the Limited Entities in providing the Services (each of (1)-(3), a “Cost Component” and
collectively, the “Cost Components”). 
 (d) The parties intend and agree that this Agreement provide for the
orderly and efficient transition of the Company and its business to stand-alone functionality and that the methods of calculation of each of the Service Costs hereunder shall permit the Limited Entities to receive full reimbursement for all
overhead, administrative and supervisory costs and expenses incurred directly or indirectly by the Limited Entities in connection with the provision of the Services consistent with the manner in which Limited Brands charges and/or receives
reimbursement from its Affiliates from time to time (including, without limitation, one or more of the Cost Components) together with any other amounts agreed to by the parties including, but not limited to, specified mark-ups as provided in the
Schedules or as otherwise agreed by the parties. Except as otherwise provided herein or in any of the Transaction Documents, the method of allocating Service Costs (including, without limitation, with respect to each of the Cost Components)
hereunder shall be generally consistent with the 2007 cost allocation under the Prior Agreement. It is further understood and agreed that when any Service Costs for Services hereunder are to be determined or agreed upon by Limited Brands and the
Company (whether before or after the Closing Date), such Service Costs shall, except as otherwise set forth in this Agreement, in all events include all pertinent Cost Components, plus if mutually agreed to by the parties, an Administrative Charge
therefor. 
 Section 3.02. Subcontractors. Limited Brands shall have the right, directly or through one or more
Subsidiaries, to hire or engage one or more subcontractors or other third parties (each, a “Subcontractor”) to perform all or any of its obligations under this Agreement; provided, however, and notwithstanding the foregoing,
Limited Brands shall retain responsibility for the provision of such Services to the Company but shall not be responsible for any actions or omissions of any Subcontractors including, but not limited to, the negligence and/or misconduct of any such
Subcontractors. If Limited Brands elects to commence the provision of specified Services hereunder through a Subcontractor that is not engaged with respect to the Service in question by Limited Brands as of the date hereof, then the Company shall
have the right to terminate such specified Services on ten days prior written notice to Limited Brands and to engage such Subcontractor to perform such specified Services directly for the Company and the Company shall have no further liability or
obligation to Limited Brands with respect to such terminated Service except as set forth in Section 4.05 and Section 5.03(a) of this Agreement. 

Section 3.03. Title to Assets; Methods, etc. (a) All procedures, methods, systems, strategies, tools, equipment, facilities
and other resources used by any Limited Entity in connection with the provision of Services hereunder (including all intellectual property rights whether existing or created in connection with the provision of the Services or otherwise)
(collectively, the “Assets”) shall remain the property of such Limited Entity and shall at all times 

 

 6 

 
be under the sole direction and control of Limited Brands; provided, however, and unless Limited Brands is prohibited by Law or contractual restriction, Limited Brands hereby assigns to the
Company any and all of its rights and/or ownership interests (as the case may be), if any, to any and all design information (whether with respect to apparel, real estate or otherwise) that is exclusively associated with the Company or the Express
brand and that currently exists or is created as a result of Limited Brands’ provision of the Services hereunder. 
 (b)
Notwithstanding any other provisions of this Agreement, but subject to the terms of Section 4.01 of this Agreement, Limited Brands shall have the right in its sole discretion to modify or change the methods of operation and delivery of the
Services so long as such modification or change does not materially and adversely impact the functionality of the Services for their intended use. 

Section 3.04. Customary Billing. The Service Costs to which the Customary Billing method applies shall, subject to
Section 3.01(c) and (d), be calculated on a basis that is substantially equivalent to the basis on which costs are attributed (whether through direct or indirect charges, allocations or otherwise) from time to time, now or in the future, to
other companies or businesses operated by Limited Brands for the same or comparable services (including, without limitation, one or more of the Cost Components), plus an Administrative Charge therefor; provided, that (i) in respect of any
particular Services, if Limited Brands does not generally attribute costs associated with the same or comparable services to other companies or businesses operated by Limited Brands as provided above, then the Customary Billing method for such
Services shall be equivalent to the market value of all Services provided by Limited Brands personnel and other Persons (including, without limitation, all Cost Components) which are reasonably allocable to the provision of such Services to the
Company and (ii) if Limited Brands provides financial relief from time to time to any companies or businesses operated by Limited Brands with respect to any costs, fees, expenses and/or allocations that are otherwise generally allocated to or
paid by companies or businesses operated by Limited Brands, the Company shall not be entitled to the same financial relief. 

Section 3.05. Pass-Through Pilling. The costs of Services to which the Pass-Through Billing method applies shall, subject to
Section 3.01(c) and (d), be equal to the aggregate amount of the third-party costs and expenses incurred (which costs shall include but not be limited to adjustments for attributable rebates and the costs incurred in connection with obtaining
the consent of any party to a contract or agreement to which any Limited Entity is a party where such consent is related to and reasonably required for the provision of any Service; it being agreed that Limited Brands shall consult in advance with
the Company prior to incurring any such cost to obtain the consent of the third party, and shall obtain the Company’s approval to incur such cost, which approval shall not be unreasonably withheld) by any Limited Entity on behalf of the
Company, plus an Administrative Charge therefor. 
 Section 3.06. Percent of Sales Billing. The costs of Services to
which the Percent-of-Sales Billing method applies shall, subject to Section 3.01(c) and (d), be equal to the amount obtained by multiplying (x) the aggregate cost incurred each month by the Limited Entities in providing such Services to
one or more businesses of Limited Brands and to all Service Recipients by (y) the Net Sales Ratio for such month, plus an Administrative Charge therefor. “Net Sales Ratio” means the net sales of the Company for a particular
month divided by the 
  

 7 

 
aggregate net sales of all businesses of Limited Brands, combined with (i) the net sales of the Company to which costs for such month are being allocated and (ii) the net sales of any
Service Recipient other than Company receiving such Services to which costs for such month are being allocated. In order to permit Limited Brands to calculate the billing method provided for in this Section 3.06 (and for no other purpose), the
Company shall provide Limited Brands with all reasonably necessary sales information not later than the close of business on the first Business Day immediately following such calendar month. 

Section 3.07. Fixed Fee Billing. The cost of Services to which the Fixed Fee Billing method applies shall be in the amount
set forth in the applicable Schedule. 
 Section 3.08. Capital Investments. (a) Subject to clauses
(b)-(c) hereto, Limited Brands shall have the right from time to time to make such capital investments as one or more of the Limited Entities deems reasonably necessary to support performance of the Services. Costs incurred by Limited Brands in
connection with such capital investments (including without limitation transportation and installation costs) (“Capital Investments”, and each a “Capital Investment”) shall be part of the Service Costs (in addition
to any Service Costs determined pursuant to any of the billing methods described in Section 3.01(a) hereof), it being agreed that there shall be no allocation of any of the Limited Entities’ internal costs, and no mark-up with respect to
any Capital Investment) and shall be reimbursed by the Company pursuant to the procedures set forth in Section 3.09(c). 

(b) Capital Investment costs incurred by Limited Brands on the Company’s behalf in connection with store design and construction
shall be paid for by the Company directly. 
 (c) For Capital Investments specifically incurred on behalf of the Company which
support the Services hereunder, the Company shall reimburse Limited Brands for, and shall retain title to, such Capital Investments. Limited Brands shall consult with the Company with respect to any such Capital Investment in excess of $100,000 and
for any Capital Investments from and after such time as the aggregate amount of all Capital Investments exceeds $1,000,000; provided, further, that if the Company declines to pay for such Capital Investment, Limited Brands may terminate such
Service if, in the reasonable judgment of Limited Brands, the provision of such Service is not practicable without the making of such Capital Investments, and the Company shall have no further liability or obligations to Limited Brands with respect
to such terminated Service except as set forth in Section 4.05 and Section 5.03(d) of this Agreement. 

Section 3.09. Invoicing and Settlement of Costs. (a) Limited Brands shall (or shall cause one or more of the Limited
Entities to) invoice the Chief Financial Officer of the Company on a monthly basis (not later than the fifteenth day of the following month), for the Service Costs (including, without limitation, invoices for Disengagement Costs as contemplated by
Sections 5.01 and 5.03(a)(3) hereof) incurred in the prior month, and will provide to the Company the same billing data and level of detail as Limited Brands customarily provides to the other businesses operated by Limited Brands and such other
supporting data, particularly in connection with Disengagement Costs, as the Company may reasonably request. Limited Brands shall use its commercially reasonable efforts to cause invoices to be presented to the Company on the schedule set forth in
this Article 3, but no delay in presentation of an invoice shall affect the Company’s obligation to pay the full amount of such invoice, when presented, on the terms set forth herein. 

 

 8 

 (b) Except as provided in Section 3.09(c) or as specifically provided elsewhere in this
Agreement or in any Schedule hereto, the Company agrees to pay on or before 30 days after the date on which Limited Brands invoices the Company for the Service Costs, all amounts invoiced by Limited Brands pursuant to Section 3.09(a). Such
payments shall be made by the Company by wire transfer of immediately available funds to an account designated by Limited Brands. 

(c) Subject to Section 3.08(c), the Company shall pay Limited Brands by wire transfer or other methods mutually agreeable to the
parties, all amounts with respect to Capital Investments within 10 Business Days of the date on which Limited Brands invoices the Company for such Capital Investments (either in whole or in part). Limited Brands shall be under no obligation to make
any Capital Investment before receipt of the Company’s advance payment for such expenditure. 
 (d) If the Company fails to
pay the full amount of any invoice under this Agreement within 15 days of the relevant payment due date, the Company shall be obligated to pay, in addition to the amount due on such payment due date, interest on such amount at the greater of
(1) 12% or (2) the Reference Rate plus 5%, in each, case per annum compounded monthly from the relevant payment due date through the date of payment; provided that such interest rate shall not exceed the maximum rate permitted by
applicable law. All payments made shall be applied first to unpaid interest and then to amounts invoiced but unpaid. If the Company fails to pay the full amount of any invoice within 30 days of the relevant payment due date, such failure shall be
considered a material breach of this Agreement, and to the extent the aggregate amount of such overdue unpaid invoices exceeds $250,000, Limited Brands may, after 10 days’ prior notice to the Company of its election to suspend, without
liability suspend its obligations hereunder to provide any and/or all Services to the Company until such time as such invoices have been paid in full. 

(e) For certain Services, Service Costs may be invoiced to the Company on an estimated basis. In such cases the method of estimation will
be reasonably determined by Limited Brands and will be made available to the Company. Any estimated costs invoiced pursuant to this Section 3.09(e) shall be invoiced and paid pursuant to the procedures set forth in this Section 3.09. At
such point in time as the actual costs for any Services previously invoiced on an estimated basis are determined, Limited Brands will notify the Company of such actual costs (and provide reasonable supporting documentation therefor) and will notify
the Company if any adjustment is necessary to reimburse one party for any difference between the actual and estimated costs. If in any case (1) an adjustment is necessary in favor of the Company, Limited Brands will reimburse the Company for
the amount of such adjustment at the time such notice is given and (2) an adjustment is necessary in favor of Limited Brands, Limited Brands will provide an invoice to the Company therefor and the Company shall reimburse Limited Brands for the
amount of such adjustment no later than 30 days after receipt of such invoice. Limited Brands shall have the right to notify the Company of such adjustment and, as applicable, to receive payment from the Company or make payment to the Company for
the amount of such difference, whether or not such notification and adjustment is made with respect to any Limited Entity receiving comparable services. 
  

 9 

 Section 3.10. Amended Schedules. (a) Prior to January 31 of each year
for so long as the relevant Services continue to be provided under this Agreement, Limited Brands may not more than once with respect to each upcoming Fiscal Year of Limited Brands prepare and deliver to the Company amended versions of the
Schedules, setting forth with respect to the Services described in such Schedules, proposed changes in any of the methodologies used to calculate the Service Costs (each, a “Proposed Change”) and, to the extent available, the
Service Costs estimated to be payable for such Services for the then current Fiscal Year of Limited Brands. Except as the Company and Limited Brands may otherwise agree, and except as specifically described in this Agreement, any Proposed Change
shall be accompanied by a statement providing reasonable justification of, and support for, such Proposed Change. Upon receipt of any notice of a Proposed Change, the Company shall, within 21 days, provide a written statement to Limited Brands
stating any objection to the Proposed Change and the reasons therefor. Limited Brands and the Company shall work together in good faith to resolve any such objections in a manner reasonably satisfactory to both parties. In any case, after all
Proposed Changes for a Fiscal Year have been submitted to the Company, Limited Brands shall be available for a meeting at the Company’s request to review all such Proposed Changes prior to the date inch Proposed Changes are to take effect.
Subject to Section 3.10(b), all Proposed Changes shall take effect no sooner than 60 days after notification to the Company of such Proposed Changes, but not before February 1 of the applicable fiscal year (e.g., a Proposed Change
delivered in March 2010 would take effect on June 1, 2010). 
 (b) Notwithstanding any other provision of this Agreement,
if a Proposed Change for a particular Service would result in a significant increase in the amount of Service Costs that the Company would be obligated to pay under this Agreement as compared to those that would be payable were such Proposed Change
not made, then the Company shall have the right during such 60-day period following receipt of notice of such Proposed Change to terminate such Service upon written notice to Limited Brands, and such termination shall be effective within the time
period specified in the pertinent Schedule (or if not so specified, within 30 days after Limited Brands’ receipt of such notice of termination). If the Company terminates such Service in accordance with this Section 3.10(b), Limited Brands
shall continue to provide such Service until the effective date of such termination on the financial terms (or reasonable estimate thereof) existing prior to the Proposed Change. For purposes of this paragraph, a “significant
increase” means an aggregate increase of more than 10% over the total amount of Service Costs applicable to any such Service during the previous Fiscal Year of Limited Brands (it being agreed that the terms and conditions of this
Section 3.10 shall not apply with respect to the Services described in Schedule II – Production and Sourcing Support Services); provided, such increase is at least $100,000 with respect to any allocated overhead cost and provided such
increase is at least $500,000 with respect to any non-allocated overhead cost (each such amount as annually adjusted for changes pursuant to the U.S. Department of Commerce Services Index). 

ARTICLE 4 

PROVISION OF SERVICES; INDEMNIFICATION 

Section 4.01. General Standard of Service. Except as otherwise agreed with the Company or expressly provided in this
Agreement, and provided that Limited Brands or any of its Affiliates is not restricted by contract with third parties or by applicable law, Limited Brands agrees that the nature, quality, and standard of care applicable to the delivery of the
Services 
  

 10 

 
hereunder shall be substantially the same as that of the Services which Limited Brands generally provides from time to time, now or in the future, to its Subsidiaries and Affiliates throughout
its companies or businesses. Management of and control over the provision of the Services (including without limitation the determination or designation at any time of the Assets, employees and other resources of the Limited Entities to be used in
connection with the provision of the Services) shall reside solely with Limited Brands. Without limiting the generality of the foregoing, all labor matters relating to any associates of Limited Brands and its Subsidiaries (including, without
limitation, any associates of any Limited Entity involved in the provision of Services to the Company) shall be within the exclusive control of Limited Brands, and the Company shall take no action affecting such matters. 

Section 4.02. Ownership of Products. Notwithstanding any other provision of this Agreement, and except as otherwise expressly
provided in the Schedules or in a separate written agreement that is not, by its terms, superseded by this Agreement, title to all Products or other materials that are transported, shipped, warehoused or otherwise held in the custody of any Limited
Entity on behalf of the Company shall at all times remain with the Company, and the Company shall at all times be the owner of record of such Products or other materials, and, subject to Section 4.04, shall be solely responsible for any matters
arising from or relating to such Products or other materials. 
 Section 4.03. Review Meetings. The parties agree to
hold review meetings (the “Review Meetings”) not less than once each Fiscal Year of Limited Brands on a date to be set by management of Limited Brands with the consent of the Company, which shall not be unreasonably withheld,
conditioned or delayed. Representatives of the Company and of all Limited Entities which are providing Services to the Company at the time of the meeting shall attend the Review Meeting and shall review and discuss any operational, strategic or
other issues raised by any participant with respect to the provision of the Services, including any Proposed Changes pursuant to Section 3.10 prior to their effective date. The parties intend that information exchanged at such Review Meetings
shall be in addition to ongoing communication between representatives of the Company and the Limited Entities with respect to the provision of the Services hereunder. 

Section 4.04. Limitation of Liability. (a) The Company agrees that none of the Limited Entities and their respective
directors, officers, partners, members, managers, agents, and employees (each, a “Limited Indemnified Person”, and collectively, “Limited Indemnified Persons”) shall have any liability, whether direct or indirect,
in contract or tort or otherwise, to the Company or any other Person for or in connection with the Services rendered or to be rendered by any Limited Indemnified Person pursuant to this Agreement, the transactions contemplated hereby or any Limited
Indemnified Person’s actions or inactions in connection with any such Services or transactions, except for damages which have resulted from such Limited Indemnified Person’s gross negligence or willful misconduct in connection with any
such Services, actions or inactions or breach of such Limited Indemnified Person’s obligations hereunder. 
 (b)
Notwithstanding the provisions of Section 4.04(a) or any other provision of this Agreement, none of the Limited Indemnified Persons shall be liable for any special, indirect, incidental, punitive or consequential damages of any kind whatsoever
(including, without 
  

 11 

 
limitation, attorneys’ fees) in any way due to, resulting from or arising in connection with any of the Services or the performance of or failure to perform Limited Brands’ obligations
under this Agreement. This disclaimer applies without limitation (1) to claims arising from the provision of the Services or any failure or delay in connection therewith; (2) to claims for lost profits or lost opportunities;
(3) regardless of the form of action, whether in contract, tort (including negligence), strict liability, or otherwise; and (4) regardless of whether such damages are foreseeable or whether Limited Brands has been advised of the
possibility of such damages. 
 (c) In addition to the foregoing, the Company agrees that it shall, in all circumstances, use
commercially reasonable efforts to mitigate and otherwise minimize its and its Subsidiaries’ damages, whether direct or indirect, due to, resulting from or arising in connection with any failure by Limited Brands to comply fully with its
obligations under this Agreement. 
 Section 4.05. Indemnification of Limited Brands by the Company. The Company
agrees to and shall indemnify and hold harmless each Limited Indemnified Person from and against any and all damage, loss, liability and expense (including, without limitation, reasonable expenses of investigation and reasonable attorneys’ fees
and expenses in connection with any action, suit or proceeding) (“Damages”) incurred or suffered by any Limited Indemnified Person arising out of or in connection with Services rendered or to be rendered by any Limited Indemnified
Person pursuant to this Agreement, any transaction entered into in connection with the Services to be performed hereunder or any Limited Indemnified Person’s actions or inaction in connection with any such Services or transactions; provided
that the Company shall not be responsible for any damages of any Limited Indemnified Person that have resulted from such Limited Indemnified Person’s negligence or willful misconduct in connection with any of the advice, actions, inaction, or
Services referred to above (it being understood and agreed that the provision by any Limited Entity of any of the Services without obtaining the consent of any party to any contract or agreement to which any Limited Entity is a party as of the date
hereof shall not constitute negligence or willful misconduct by any Limited Entity). 
 Section 4.06. Indemnification of
the Company by Limited Brands. Except as set forth in Section 4.07, Limited Brands agrees to indemnify and hold harmless the Company and its Subsidiaries and their respective directors, officers, partners, members, managers, agents, and
employees (each, a “Company Indemnified Person”, and collectively “Company Indemnified Persons”) from and against any and all Damages incurred or suffered by any Company Indemnified Person arising out of the gross
negligence or willful misconduct of any Limited Indemnified Person in connection with the Services rendered or to be rendered pursuant to this Agreement. Notwithstanding the provisions of this Section 4.06 or any other provision of this
Agreement, none of the Limited Indemnified Persons shall be liable for any special, indirect, incidental, punitive or consequential damages of any kind whatsoever (including, without limitation, attorneys’ fees) in any way due to, resulting
from or arising in connection with any of the Services or the performance of or failure to perform Limited Brands’ obligations under this Agreement. This disclaimer applies without limitation (1) to claims arising from the provision of the
Services or any failure or delay in connection therewith; (2) to claims for lost profits or lost opportunities; (3) regardless of the form of action, whether in contract, tort (including negligence), strict liability, or otherwise; and
(4) regardless of whether such damages are foreseeable or whether Limited Brands has been advised of the possibility of such damages. 
  

 12 

 Section 4.07. Notice of Certain Matters. If the Company at any time believes
that Limited Brands is not in full compliance with its obligations under this Agreement, the Company shall so notify Limited Brands in writing promptly (but not later than 30 days) after becoming aware of such possible noncompliance by Limited
Brands. Such notice (a “Non-Compliance Notice”) shall set forth in reasonable detail the basis for the Company’s belief as well as the Company’s view as to the steps to be taken by Limited Brands to address the possible
non-compliance. For the 30 days after receipt of such a notice, appropriate representatives of Limited Brands and the Company shall work in good faith to develop a plan to resolve the matters referred to in the Non-Compliance Notice. If such matters
are not resolved through such discussions, the Company may elect to terminate Limited Brands’ obligation to provide or procure, and its obligation to purchase, the Service or Services referred to in its Non-Compliance Notice in accordance with
Section 5.02. In the event such matters are resolved through such discussions, the Company shall not be entitled to deliver another Non-Compliance Notice or pursue other remedies with respect to same or any substantially similar matter so long
as Limited Brands complies in all material respects with the terms of such resolution, if any. 
 Section 4.08.
Indemnification Procedures. (a) Each party and any other indemnified persons shall be entitled to the indemnity described in this Article 4, provided that, in the case of third party claims, the following conditions are met (the party obliged
to provide indemnification is referred to as the “Indemnifying Party,” and the party entitled to be indemnified is referred to as the “Indemnified Party”): 

(1) Promptly upon learning of any claim for which indemnification is sought from the Indemnifying Party, the Indemnified Party shall
notify the Indemnifying Party of such claim and shall furnish to the Indemnifying Party all information known and reasonably available to the Indemnified Party related to such claim; provided that any failure to comply with the provisions of
this clause (1) shall not relieve the Indemnifying Party of its indemnification obligations except to the extent such failure shall have adversely prejudiced the Indemnifying Party. 

(2) In the event of the commencement of litigation on the basis of such claim, the Indemnified Party shall tender the defense of such
litigation to the Indemnifying Party, and the Indemnifying Party shall promptly assume and thereafter diligently prosecute the defense of such claim, and the Indemnifying Party shall bear all Damages in connection therewith, using counsel selected
by the Indemnifying Party (which shall be subject to the Indemnified Party’s approval, which shall not be unreasonably withheld, conditioned or delayed). The Indemnified Party shall be entitled to engage separate counsel and participate in such
defense; provided that the fees and expenses and such separate counsel shall be paid by the Indemnified Party unless the interests of the Indemnified Party and the Indemnifying Party are in conflict so that they cannot be adequately
represented by the same counsel, in which event the reasonable fees and expenses of such separate counsel shall be paid by the Indemnifying Party following a final determination of the indemnification liabilities hereunder. 

(3) Neither the Indemnifying Party nor the Indemnified Party shall settle any such claim without the prior written consent of the other
party, which consent may be withheld in the other party’s sole discretion if such settlement would require the expenditure of funds by the other party or admit on behalf of, or otherwise attribute to, the other party any fault or misconduct. To
the extent that both Limited Brands and the Company are required to bear 
  

 13 

 
damages, claims, costs and expenses with respect to a particular claim, the intent of Limited Brands and the Company is that they shall bear such damages, claims, costs and expenses in proportion
to their respective degrees of responsibility for such claim as allocated in this Article 4 or, if not allocated herein, then in accordance with their respective percentages of fault or responsibility for such claims. 

(b) Except as otherwise specifically set forth herein, the terms of this Article 4 shall provide the exclusive remedy for monetary
damages of Limited Indemnified Persons and Company Indemnified Persons with respect to Damages associated with the matters set forth in this Agreement. 

ARTICLE 5 
 TERM
AND TERMINATION 
 Section 5.01. Term. Except as otherwise provided in this Article 5 or as otherwise agreed in
writing by the parties, this Agreement shall be effective as of the date hereof and Limited Brands’ obligation to provide or procure, and the Company’s obligation to purchase, each Service hereunder shall cease as of the earlier of
(a) the date of termination of this Agreement or a particular Service as determined in accordance with Section 5.02 hereof or (b) the applicable termination date for such Service as set forth in the applicable Schedule (or if no
termination date is specified, July 6, 2010). 
 Notwithstanding anything contained herein to the contrary, the Company
shall be solely responsible for and shall pay to Limited Brands in accordance with the provisions of Section 3.09 hereof any and all Disengagement Costs incurred in connection with the provision of any and all Disengagement Services.

 Section 5.02. Termination by the Parties. 

(a) In addition to any rights of termination otherwise expressly provided for under this Agreement, the Company may terminate Services
hereunder if Limited Brands shall have failed to perform any of its material obligations under this Agreement relating to such Service, the Company has notified Limited Brands in writing of such failure, and such failure shall have continued for a
period of 30 days after receipt by Limited Brands of written notice of such failure. 
 (b) In addition to any rights of
termination otherwise expressly provided for under this Agreement: (i) Limited Brands, at its option, may terminate Services hereunder if the Company shall have failed to perform any of its material obligations under this Agreement relating to
such Service, Limited Brands has notified the Company in writing of such failure, and such failure shall have continued for a period of 30 days after receipt by the Company of written notice of such failure and (ii) Limited Brands, at its
option, may terminate this Agreement or any Services hereunder by providing written notice of termination to the Company upon or following a Change of Control of the Company. 

Section 5.03. Transfer of Associates. Notwithstanding anything in the Schedules to the contrary, in the event that Limited
Brands and the Company mutually agree in writing or otherwise to transfer any Limited Brands’ associates to Express during the term of this 

 

 14 

 
Agreement, Limited Brands’ obligation to provide the specific Services that were performed by the Limited Brands’ associates so transferred to the Company, and the Company’s
obligation to accept and pay for such Services, shall cease effective as of the date of the transfer, unless the parties agree otherwise. 

Section 5.04. Effect of Termination. 

(a) Upon termination of any Service pursuant to this Agreement, or upon termination of this Agreement in accordance with its terms,
Limited Brands shall have no further obligation to provide the terminated Service (or any Service, in the case of termination of this Agreement) or to perform its obligations hereunder relating to any such terminated Service, and the Company shall
have no obligation to purchase any such Services from Limited Brands, pay any fees relating to such services or make any other payments hereunder; provided that the foregoing shall not in any way operate to impair or destroy any of the rights
or remedies of either party or to relieve either party of its obligations to comply with the provisions of this Agreement which have accrued prior to the effective date of termination. Notwithstanding such termination, but subject to the other terms
of this Agreement, (1) the Company shall remain liable to Limited Brands for all Service Costs incurred before or after the effective date of termination of this Agreement by any Limited Entity on behalf of the Company to the extent that such
Services Costs were incurred in connection with or to assist Limited Brands in the provision of any Services prior to the effective date of the termination (including without limitation (A) the aggregate outstanding amount of any capital
expenditure incurred by any Limited Entity on behalf of the Company in accordance with the terms of this Agreement, and (B) any amounts owed under any non-cancelable or other contract or agreement entered into by any Limited Entity on behalf of
or for the benefit of the Company with the prior written consent of the Company); (2) Limited Brands shall continue to charge the Company for administrative and program costs and Administrative Charges relating to benefits paid after but
incurred prior to the termination of any Service and other services reasonably required to be provided after the termination of such Service and the Company shall be obligated to pay such expenses in accordance with the terms of this Agreement;
(3) the Company shall be responsible for and shall pay to Limited Brands in accordance with the provisions of Sections 3.09 and/or 5.01 hereof all Disengagement Costs relating to the termination of any Service hereunder for any reason; and
(4) the provisions of Articles 3, 4, 5 and 6 shall survive any such termination indefinitely. 
 (b) Limited Brands shall
invoice the Company for the aggregate outstanding amount payable to Limited Brands pursuant to Section 5.03(a)(1), (a)(2) and (a)(3), and the Company shall pay such amount within 30 days of receipt of such invoice, by wire transfer of
immediately available funds to an account designated by Limited Brands. 
 (c) As soon as practicable, and in any event no later
than 30 days after termination of this Agreement or any of the Services hereunder in accordance with the terms of this Agreement, each party shall return to the other party in accordance with such other party’s instructions and at such other
party’s expense, all of the other party’s materials and Confidential Information in its possession or control (including, without limitation, all Confidential Information and any copies thereof) relating to the terminated Service (or if
the Agreement is terminated in its entirety, all such materials and Confidential Information). 
  

 15 

 (d) Following the delivery of a notice with respect to the termination of any Service,
Limited Brands and the Company, commencing promptly following such notice, shall cooperate in good faith to provide for an orderly transition of such Service to the Company or to a successor service provider in accordance with a transition schedule
reasonably requested by the Company. 
 Section 5.05. Notification of Change of Control. To the extent permitted by
applicable law, the Company shall promptly notify Limited Brands of any Change of Control of the Company (or any definitive agreement, arrangement or plan which, if consummated, would result in such a Change of Control of the Company), setting forth
the date and circumstances of such Change of Control of the Company and the identity of the third party(ies) involved in such Change of Control of the Company (such notice, the “Change of Control Notice”). 

ARTICLE 6 

MISCELLANEOUS 

Section 6.01. Confidential Information; Non-Solicitation. (a) Confidential Information. Either party may provide to
the other party certain confidential, proprietary and trade secret business and technical information in connection with the performance of this Agreement (“Confidential Information”). All information shall be presumed to be
Confidential Information unless such information is generally available to the public (other than by the receiving party in violation of this Section 6.01) or if a disclosing party acknowledges in writing that such information is not
Confidential Information. Each party shall preserve the confidentiality of all Confidential Information that is provided by the other party in connection with this Agreement, and shall not, without the prior written consent of the other party,
disclose, display or make available to any Person, or use for its own or any other Person’s benefit, other than as necessary in performance of its obligations under this Agreement, any Confidential Information of the other party;
provided that a party may disclose such portion of the Confidential Information relating to the other party to the extent, but only to the extent, that the disclosing party reasonably believes that such disclosure is required in connection
with litigation between the parties hereto relating directly to this Agreement, under applicable law, pursuant to court order or as a consequence of the rules of a securities exchange; provided, further that the disclosing party first
notifies the other party hereto of such requirement and allows such party a reasonable opportunity to seek a protective order or other appropriate remedy to prevent such disclosure. The parties shall exercise a commercially reasonable standard of
care to safeguard all Confidential Information of the other party against improper disclosure or use. The parties acknowledge that money damages would not be a sufficient remedy for any breach of the provision of this Section 6.01 and that the
non-breaching party shall be entitled to equitable relief in a court of law in the event of, or to prevent, a breach or threatened breach of this Section 6.01. 

(b) Notwithstanding the provisions of Section 6.01(a), upon a Change of Control of the Company, the Company shall (1) promptly
(but in no event later than 10 days after the occurrence of such Change of Control of the Company) return to Limited Brands or destroy all Confidential Information in its possession (or in the possession of any of its Affiliates) relating to Limited
Brands or any of its Affiliates, (2) no longer be permitted to use such Confidential Information in its business or operations (or the business or operations of any of its Affiliates) and (3) promptly (but in no event later than 30 days
after the occurrence of such Change of 
  

 16 

 
Control of the Company) deliver a written certificate to Limited Brands executed by the Company’s Chief Executive Officer expressly acknowledging the obligations set forth in clauses
(1) and (2) of this sentence and certifying that the Company has and will continue to adhere to such requirements. 

(c) Third-Party Non-Disclosure Agreements. To the extent that any third-party proprietor of information or software to be
disclosed or made available to the Company in connection with performance of Services requires a specific form of non-disclosure agreement as a condition of its consent to use of the same for the benefit of the Company or to permit the Company
access to such information or software, the Company will execute (and will cause the Company employees to execute, if required) any such form. 

(d) Non-Solicitation. (i) From the date hereof and until the expiration of 12 months from the termination of all of the
Services under this Agreement, and except as otherwise expressly provided in the Schedules or in this Agreement, (A) Limited Brands hereby agrees to abide by the non-solicitation restrictions contained in Section 9.04(d) of the LLC
Agreement to the same extent as if it were a “Member” and (B) none of the Company nor any of its controlled Affiliates will (nor shall the Company, so long as it is controlled by Golden Gate Private Equity, Inc., permit Golden
Gate Private Equity, Inc. and its managed investments funds to) without the prior written consent of Limited Brands, directly or indirectly solicit any Applicable Employee for employment, encourage any Applicable Employee to leave Limited
Brands’ or its Affiliates’ employ or employ any Applicable Employee. “Applicable Employee” means any employee of Limited Brands or any of its Affiliates who has performed any of the Services under this Agreement or with
whom the Company or any of its Affiliates otherwise has had any contact at any time during the performance of the Services hereunder. 

(ii) Notwithstanding anything contained in this Agreement or in the Schedules to the contrary, including, but not limited to,
Section 6.01(d)(i) above, Limited Brands and the Company will jointly develop an orderly process whereby, for a reasonable period of time prior to the scheduled termination of any specific Services hereunder, employees of the Limited Entities
whose job duties are primarily comprised of providing the specific Services scheduled to be terminated hereunder will be given the opportunity to become employees of the Company. 

(iii) Further notwithstanding anything in this Agreement or in the Schedules to the contrary, including, but not limited to,
Section 6.01(d)(i) above, if the Company wishes to hire (under circumstances other than as described in Section 6.01(d)(ii) above) any employees of the Limited Entities whose job duties are primarily comprised of providing specific
Services hereunder, Limited Brands and the Company will jointly develop an orderly process whereby such employees may be given the opportunity to become employees of the Company so long as there is no adverse financial impact to the Limited Entities
in connection with transferring such employees to the Company and/or terminating early the specific Services which such employees provide unless the Company agrees to fully compensate Limited Brands for the full amount of said adverse financial
impact. 
 Section 6.02. Audits. (a) Throughout the term of this Agreement and for 1 year thereafter, the
Company shall have the right once within each 12 month period, at its own expense and on 30 days advance written notice to Limited Brands, to have its auditors or other 

 

 17 

 
representatives audit the books and records of any Limited Entity for the sole purpose of certifying the accuracy of the Service Costs and Cost Components charged by Limited Brands to the Company
in accordance with the terms of this Agreement for the preceding 12-month period. The Company shall provide to Limited Brands a copy of each such audit report promptly after its receipt thereof. In the event that any such audit indicates any
overpayment or underpayment of amounts paid to Limited Brands by the Company, the applicable party shall pay to the other party (within 30 days following the date of delivery of such audit report to Limited Brands) the amount of such overpayment or
underpayment, as the case may be, plus (if the overpayment or underpayment amount exceeds $100,000.00) interest accruing monthly from the date of such overpayment or underpayment until such amount is paid at the Reference Rate, compounded monthly
from the relevant payment due date through the date of payment (provided that such interest rate shall not exceed the maximum rate permitted by applicable law). 

(b) Notwithstanding any other provision of this Agreement, upon a Change of Control of the Company, (1) the Company only shall be
permitted to exercise its rights under Section 6.02(a) by employing the services of a third party auditor reasonably acceptable to Limited Brands, (2) the Company and its Affiliates shall have no access to such auditor’s workpapers
and (3) such audit or shall agree in writing to be bound by a confidentiality agreement with respect to the foregoing on terms reasonably acceptable to Limited Brands. 

Section 6.03. No Agency. (a) Nothing in this Agreement shall constitute or be deemed to constitute a partnership, agency or
joint venture between the parties hereto or, except as is necessary for performance of the Services, shall constitute or be deemed to constitute any party the agent or employee of the other party for any purpose whatsoever and neither party shall
have authority or power to make any statements, representations or commitments of any kind, take any action which shall be binding on the other, or bind the other or to contract in the name of, or create a liability against, the other in any way or
for any purpose. 
 (b) Nothing in this Agreement shall establish or be deemed to establish any fiduciary relationship between
the parties hereto. The parties’ respective rights and obligations hereunder shall be limited to the contractual rights and obligations expressly set forth herein on the terms and conditions set forth herein. 

(c) Except as otherwise specifically provided for herein, each party shall be responsible for compliance with all applicable laws, rules,
regulations and orders of governmental authorities, for obtaining required licenses and permits, for the payments of all applicable taxes and for the conduct and compensation of its employees. 

Section 6.04. Force Majeure. (a) Neither party shall be held liable or responsible to the other party nor be deemed to
have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement when such failure or delay is caused by or results from causes beyond the reasonable control of the affected party,
including, but not limited to, fire; floods; storms; embargoes, war or acts of war (declared or undeclared); insurrections, riots or other civil commotions; acts of terrorism, strikes, lockouts, or other labor disturbances; explosions; sabotage;
accidents; governmental orders; changes in statutes, rules or regulations; delays by unaffiliated suppliers or carriers; shortages of fuel, power, raw materials or components; acts of God; or acts, omissions, or delays in acting by any governmental
or 
  

 18 

 
military authority, or the other party (collectively, “Force Majeure”); provided, however, it is understood that (i) this Section 6.04 only operates to suspend,
and not to discharge, a party’s obligations under this Agreement, and that when the causes of the failure or delay are removed or alleviated the affected party shall resume performance of its obligations hereunder and (ii) this
Section 6.04 shall not excuse a party’s obligation to pay money; provided, that the Company shall not be obligated to pay for any particular Service during the pendency of the Limited Entities’ failure to provide such particular
Service. A party that is unable to fulfill its obligations due to any Force Majeure event shall (1) promptly after the occurrence thereof give notice to the other party with details of such event and (2) use its commercially reasonable
efforts to remedy such event as promptly as practicable. If Limited Brands is unable to provide any of the Services due to Force Majeure, both parties shall exert commercially reasonable efforts to cooperatively seek a solution that is mutually
satisfactory, such as the subcontracting of all or part of the provision of the Services under the supervision of Limited Brands for the period of time during or affected by the Force Majeure. 

(b) Promptly on becoming aware of Force Majeure causing a delay in performance or preventing performance of any obligations imposed by
this Agreement (and termination of such delay), the Company shall have the right, but not the obligation, to engage Subcontractors to perform such obligations for the duration of such period that Force Majeure delays or prevents the performance of
such obligation by a party. 
 Section 6.05. Entire Agreement; Successors and Assigns. (a) This Agreement
(including the Schedules constituting a part of this Agreement (for the avoidance of doubt, such Schedules include Schedule IX (Customer and Marketing Services) to the Prior Agreement) and any other writing signed by authorized representatives of
the parties after the date hereof that specifically references this Agreement constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements, understandings and negotiations, both
written and oral, between the parties with respect to the subject matter hereof. This Agreement is not intended to confer upon any Person other than the parties hereto any rights or remedies hereunder. 

(b) This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties hereto. Except as
expressly provided herein, neither party may assign, delegate or otherwise transfer any rights or duties under this Agreement to any party without the prior written consent of the other party hereto. 

Section 6.06. Notices. (a) Any notice, instruction, direction or demand under the terms of this Agreement required to be in
writing shall be duly given upon delivery, if delivered by hand, facsimile transmission (with the original copy promptly thereafter delivered by mail), or mail, to the following addresses: 

 

	 	(i)	If to the Company to: 

 Express,
LLC 
 One Limited Parkway 

Columbus, Ohio 43230 

Fax: (614) 415-4858 

Attention: Chief Financial Officer 
  

 19 

 
with a copy (which shall not constitute notice) to: 
 Kirkland &
Ellis LLP 
 555 California Street 

San Francisco, CA 94104 

Fax: (415) 439-1680 

Attention: Mikaal Shoaib 
  

	 	(ii)	If to Limited Brands, to: 

Limited Brands, Inc. 

Three Limited Parkway 

Columbus, OH 43230 

Fax: (614) 415-7188 

Attention: Office of General Counsel 

with copies (which shall not constitute notice) to: 

Limited Brands, Inc. 

Three Limited Parkway 

Columbus, OH 43230 

Fax: 614-415-8098 

Attention: Office of Treasurer 

Vorys Sater Seymour and Pease LLP 

52 E. Gay Street 

P.O. Box. 1008 

Columbus, OH 43216-1008 

Fax: 614-719-5028 

Attention: John P. Wellner, Esq. 

or to such other addresses or telecopy number and with such other copies, as such party may hereafter specify for the purpose by notice to the other
parties. All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5 p.m. in the place of receipt and such day is a Business Day in the place of receipt.
Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt. Each such notice, request or other communication shall be effective (1) if given by
telecopy, when such telecopy is transmitted to the telecopy number specified in this Section and evidence of receipt is received or (2) if given by any other means, upon delivery or refusal of delivery at the address specified in this
Section 6.06. 
 (b) Notwithstanding the provisions of 6.06(a) above, the parties hereto hereby expressly acknowledge and
agree that any notices, consents or approvals contemplated to be given by either party to the other hereunder in connection with the day-to-day implementation or 

 

 20 

 
provision of particular Services pursuant to the ordinary course of business may be given orally or in writing other than in accordance with Section 6.06(a) above by director-level employees
(or above), which notices, consents and/or approvals shall be binding and on which notices, consents and/or approvals, the other party shall be entitled to rely. The parties further acknowledge and agree that this Section 6.06(b) is intended
solely to facilitate the effective and efficient provision of the Services contemplated by this Agreement and it is not intended to, nor shall it be interpreted to, (i) permit the giving of any other type of notices, direction or demand other
than in accordance with the provisions of said Section 6.06(a) or (ii) increase or decrease billing methods, Service Costs or the scope of Services under this Agreement. 

Section 6.07. Governing Law. This Agreement shall be construed in accordance with the laws of the State of Ohio, without
regard to conflict, of laws and rules of such state. 
 Section 6.08. Jurisdiction. Except as otherwise expressly
provided in this Agreement, the parties hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated thereby shall
be brought either in (i) the United States District Court for the Southern District of Ohio, Eastern Division or (ii) the Court of Common Pleas of Franklin County, Ohio, and each of the parties hereby irrevocably consents to the
jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of
the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served
on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 6.06 shall be deemed effective
service of process on such party. 
 Section 6.09. WAIVER OF JURY TRIAL. THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

Section 6.10. Severability. If any provision of this Agreement shall be invalid or unenforceable, such invalidity or
unenforceability shall not render the entire Agreement invalid. Rather, the Agreement shall be construed as if not containing the particular invalid or unenforceable provision, and the rights and obligations of each party shall be construed and
enforced accordingly. 
 Section 6.11. Amendment. (a) This Agreement may not be amended or modified except in
writing signed by the parties hereto. 
 (b) Any term or provision of this Agreement may be waived, or the time for its
performance may be extended, by the party or parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently authorized for the purposes of this Agreement if it is memorialized in writing by the waiving party. No course of
dealing, manner of performance or failure of any party hereto to enforce at any time any provision of this Agreement shall be 
  

 21 

 
construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of any party thereafter to enforce each and every such
provision in accordance with its terms. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. 

Section 6.12. Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed an
original and all of which, when taken together, shall constitute one agreement. An executed copy or counterpart hereof delivered by facsimile shall be deemed an original instrument. 

Section 6.13. Headings; Interpretation and Construction. The headings to sections of this Agreement and the table of contents
to this Agreement are inserted for convenience of reference only and in no way define, limit or describe the scope of this Agreement or the meaning of any provisions of this Agreement. The words “include,” “includes,”
“including” and “such as” are deemed to be followed by the phrase “, without limitation,”. All references to “$” or “dollars” shall be to United States dollars and all references to
“days” shall be to calendar days unless otherwise specified. Any reference to the masculine, feminine or neuter gender shall include such other genders, and references to the singular or plural shall include the other, in each case unless
the context otherwise requires. The Schedules hereto shall be deemed to be incorporated in and an integral part of this Agreement. In the event of any conflict or inconsistency between the terms and conditions of this Agreement and the terms and
conditions of any of the Schedules, the terms and conditions of the Schedules shall prevail to resolve any inconsistency. 

Section 6.14. Mutual Contribution. The parties to this Agreement and their counsel have mutually contributed to its drafting.
Consequently, no provision of this Agreement shall be construed against any party on the ground that party drafted the provision or caused it to be drafted. 

[Remainder of page intentionally left blank; next page is signature page] 

 

 22 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their duly
authorized representatives to be effective as of the date first written above. 
  

			
	LIMITED BRANDS, INC.
		
	By:	 	 /s/ Gail M. Stern

		 	Gail M. Stern
	Its:	 	Senior Vice President, Legal
	
	EXPRESS, LLC
		
	By:	 	 /s/ Matthew C. Moellering

		 	Matthew C. Moellering
	Its:	 	Chief Administrative Officer, Executive Vice President, Chief Financial Officer, Treasurer and Secretary

 

 [SIGNATURE PAGE] 

  

SCHEDULE I 

INFORMATION TECHNOLOGY 

SERVICES 
  

 

 Schedule I 

Information Technology Services 

Limited Brands’ obligation to provide or procure, and the Company’s obligation to purchase, the Services described in this
Schedule I commenced on the Closing Date and shall terminate, except as expressly identified below, on July 6, 2010 (the “Termination Date”). Except as provided herein, the costs for the services on this Schedule shall be
billed at 105% of the amount determined pursuant to the Customary Billing method (except with respect to costs incurred in connection with obtaining the consent of any party to a contract or agreement to which any Limited Entity is a party where
such consent is related to and reasonably required for the provision of any Service, which shall be billed at 100% of the amount determined pursuant to the Pass-Through Billing method). 

All information technology equipment resources and services including onsite equipment and shared equipment described herein or otherwise
used or viewed in connection with or related to the provision of the Services hereunder shall remain the property of Limited Entities, or their service providers, as applicable, (including all wide area network and local area network,
telecommunications equipment and wiring infrastructure supporting the Company), except as expressly provided herein. Limited Brands agrees that during the term of this Agreement, Limited Brands shall provide to the Company dedicated labor resources
as well as part-time resources from other Limited Technology Services, Inc. (“LTS”) personnel, consistent in all material respects with the resources provided to the Company as of the Closing Date. 

The Company shall comply with all policies and procedures generally applicable to Limited Entities in connection with the Services
provided under this Schedule, including without limitation Limited Brands’ Policy on Associates’ Use of Electronic Equipment/Information and Communications and the Access Control requirements, attached as Appendices A and B, respectively,
to Schedule II (Information Technology Services) to the Prior Agreement. 
 The levels of service specified in the Service Level
Agreement between Express, LLC and LTS, effective 2/04/07, attached as Appendix C to Schedule II (Information Technology Services) to the Prior Agreement (“SLA”; the tables of service levels provided upon request) define the
targeted level of service to be provided, subject to changes in equivalent levels of service that affect other Limited Entities generally. Limited Brands and the Company acknowledge and agree that: (i) the service levels in the SLA constitute
non-binding principles that represent only a target level for the Services on this Schedule I that Limited Brands will use commercially reasonable efforts to achieve the targeted service levels during the term of this Schedule I; (ii) neither
the SLA itself nor its inclusion in this Schedule constitutes a representation, warranty, covenant or guarantee that any or all of the levels of service set forth therein have been met prior to the commencement of Services or will be met during the
provision of Services under this Schedule I; (iii) nothing in this paragraph shall amend, modify or supercede (A) the nature, quality and standard of care applicable to the delivery of the Services hereunder as set forth in
Section 4.01 of the Agreement, or (B) the limitation of liability of any Limited Indemnified Person pursuant to Section 4.04 of the Agreement. 
  

 I-2 

	1.	Computing Platform Services 

Limited Brands will provide the operating environments, with capacity and resource-availability not less than that used by the Company as
of the Closing Date, and with the business applications set forth in Appendix D-1 to Schedule II (Information Technology Services) to the Prior Agreement and the systems software set forth in Appendix D-2 to Schedule II (Information Technology
Services) to the Prior Agreement. Subject to the foregoing minimum environment, resource and capacity commitments, the specific configurations and the specific applications and systems software made available may change at the option of Limited
Brands, including changes required for regulatory, security and/or contractual compliance. Limited Brands shall notify the Company via written or oral notice reasonably in advance of such changes. Services to be provided in this Schedule do not
include any material technology migrations, conversions or other major technology projects (including, without limitation, the INSIGHT implementation). 
  

	2.	Support Services 

2.1 Point-of-Sale Service Support, Required Changes and Ownership 

Limited Brands will provide help desk and second level support for the business applications set forth in Appendix D-1 to
Schedule II (Information Technology Services) to the Prior Agreement. 
 In addition, where necessary for Limited
Brands’ regulatory, security and/or contractual compliance, on reasonable written or oral advance notice Limited Brands may require that the Company utilize equipment and/or products and implement applications designated or provided by Limited
Brands. 
 Routers located at the Company stores and used for persistent connectivity and equipment at the
Company stores used for return authorizations are owned by the third party providers of the services and shall remain the property of the third party service provider. Point-of-sale equipment, which includes the register, signature capture,
controller, wiring and any other peripheral equipment related to point-of-sale, is the property of the Company. 

2.2 Point-of-Sale Equipment Sourcing and Refurbishing 

Limited Brands will use reasonable commercial efforts to source, refurbish and ship NCR point-of-sale equipment and
related back-office hardware, consistent with past practice, but subject to availability. Any such equipment and related hardware purchased by the Company through Limited Brands will be owned by the Company. 

2.3 Point-of-Sale and Store Telecommunications Support 

Limited Brands will provide first and second level support for hardware and software problems, plus store
telecommunications. 
  

 I-3 

 2.4 Point-of-Sale Support for New Stores 

Limited Brands will provide: 
  

	 	A.	Installation and set-up of refurbished equipment 

  

	 	B.	Installation of telecommunications equipment. 

2.5 Production Support in Data Center 24 by 7 

Limited Brands will provide computing service related to the following, consistent with those services provided to the
Company as of the Closing Date: 
  

	 	•	 	 Batch jobs 

  

	 	•	 	 Printing 

  

	 	•	 	 Backups 

  

	 	•	 	 System level problem resolution 

  

	 	•	 	 Store polling and re-alignment 

2.6 Electronic Commerce (EDI) Support 

Limited Brands will continue the level of support for EDI consistent with those services provided to the Company as of the
Closing Date. The Company understands that these support services shall exclude new development and new processes. It is understood that EDI support includes the addition of vendors to the EDI transaction set that exists as of the date of the Prior
Agreement, so long as Limited Brands will be adding the new transaction sets for other businesses of Limited Brands. Limited Brands will not add transaction sets required solely by the Company. In addition, EDI support does not include additional
EDI documents. 
 2.7 PC/LAN/WAN Support 

Limited Brands will provide the following PC/LAN/WAN support to the Company: 

 

	 	1.	Help desk support 

  

	 	2.	Desk top/laptop PC support 

  

	 	3.	NT server support - including intranet server support, but excluding intranet development 

 

	 	4.	LAN support 

  

	 	5.	Support for browser access to the Internet (the Company shall be solely responsible for all matters related to any of the Company’s websites)

  

	 	6.	Support for remote dial access to network 

  

 I-4 

	 	7.	E-mail support 

  

	 	8.	Wide area network (WAN) support. 

All physical local area network (LAN) and wide area network (WAN) equipment located at office facilities used by the
Company and at the Company stores, will remain the property of Limited Brands following the termination of the Services hereunder. This includes but is not limited to routers, switches, hubs and wiring. Limited Brands will support this LAN and WAN
equipment until the earlier of termination of this Schedule I or, if applicable, the termination of the applicable Service. Desktop units (including personal computers, printers, peripherals and monitors) and NT servers located in office facilities
used by the Company and at the Company stores that are solely used by the Company are the property of the Company. In the event the Company relocates its offices to facilities other than those occupied as of the Closing Date, if the parties mutually
agree that Limited Brands will continue to provide PC/LAN/WAN support Services under this Schedule at the new facility, the parties will negotiate in good faith to establish a Specific Billing method for the Services to be provided at the new
facility, which will take into account the Cost Components associated with providing such Services, and reflect a five percent (5%) Administrative Charge. 

2.8 Upgrades and Replacements 

Limited Brands will perform upgrades to and may, in its sole discretion, implement replacements of the software
applications and systems software used by the Company (those applications listed in Appendix D-1 and D-2 to Schedule II (Information Technology Services) to the Prior Agreement) in conjunction with the implementation of such upgrades or replacements
either (a) for Limited Entities generally; or (b) with respect to any other Limited Entities that have similar or the same software; or (c) as necessary for continued supportability of the Company’s applications. Limited Brands
will use commercially reasonable efforts to minimize upgrades and replacements. Provided, however, that Limited Brands will continue to operate the Island Pacific software during the term of this Schedule I, subject to any election by the Company
under Section 3. 
 The Company has moved to the new Mast platform for wave 1. The Company participated in
all training and all work necessary to ensure a smooth transition. The Company and Limited Brands worked together to facilitate wave 1 go-live in an orderly fashion. 

In connection with any Capital Investment which relates to an upgrade of the Limited Brands system(s) (as opposed to
software) from time to time, Limited Brands shall notify the Company in advance of Limited Brands’ intent to make such Capital Investment, unless such upgrade results from an emergency or constitutes required maintenance to protect and/or
preserve the system(s). Within thirty (30) days after the Company’s receipt of such a notice, the Company shall either (i) agree to such Capital Investment and reimburse Limited Brands for its allocable portion of the cost thereof in
accordance with Section 3.08 of the Agreement or (ii) reject such Capital Investment and 
  

 I-5 

 
convert to or modify its own system, at its sole cost and expense. If the Company shall fail to respond to any such notice or to convert to or modify its own system within said thirty
(30) day period, then the Company shall be obligated to participate in such Capital Investment and to reimburse Limited Brands for its allocable portion of the cost thereof in accordance with Section 3.08 of the Agreement, it being
understood that under no circumstances shall Limited Brands be required to maintain any then-existing or prior system solely for benefit of the Company or to delay any system(s) upgrade in order to allow the Company to make an election regarding a
Capital Investment pursuant hereto. 
 2.9 LBOS and DM Dashboard Technical Support 

During the term of the LBOS License Agreement, Limited Brands will (i) provide first and second level support, consistent with past
practices, for the Limited Brands proprietary software licensed under the LBOS License Agreement; (ii) upon the request of the Company, provide training to designated individual associates of the Company, on a “train the trainer”
basis, on the use of LBOS to facilitate such associates then providing training throughout the Company, and (iii) upon Company’s election to participate in the development of updates to LBOS, as provided below, deliver to the Company, for
use under the LBOS License Agreement, updates to LBOS released for use by the Limited Entities generally. 
 Limited Brands shall
notify the Company in advance of Limited Brands’ intent to develop upgrades to LBOS. Within thirty (30) days after the Company’s receipt of such a notice, the Company shall either (i) agree to such participate in the development
of such upgrade to LBOS and reimburse Limited Brands for its allocable portion of the cost thereof in accordance with Section 3.08 of the Agreement or (ii) reject such upgrade to LBOS. If the Company shall fail to respond to any such
notice, then the Company shall not participate in such upgrade to LBOS. If the Company elects to participate in the development of such updates to LBOS, the Company will designate one or more persons to be available to Limited Brands from time to
time to participate in developing and adapting such updates for use by the Company. 
 2.10 ACES Rollout

 Limited Brands will provide Services to complete the ACES (automated labor scheduling) project rollout for the Company.

 2.11 Test and Learn Program 

Limited Brands shall make available to the Company the “Test and Learn” program, provided by a third party, if permitted by such
third party, at the Company’s sole cost and expense. 
  

	3.	Transition Services 

 At
any time following July 7, 2008, the Company may deliver ten (10) months’ notice of early termination of any individual Service without terminating all of the Services, so long as it is reasonably possible to terminate separately any
such individual Service from the remaining 
  

 I-6 

 
Services which Limited Brands will still be providing under this Schedule I or the Agreement. Disengagement Services will be provided by Limited Brands for the terminated individual Service as
soon as reasonably possible, commencing not later than ninety (90) days following the Company’s notice of early termination and concluding within a time reasonable under the circumstances; provided, however, that Limited Brands shall not
be obligated to provide Disengagement Services during the annual freeze period of November 1 through January 15; and provided further, however, that the Company shall be responsible for and shall pay to Limited Brands with respect to each
individual Service terminated early pursuant hereto (i) all Disengagement Costs relating to such terminated Service, including, without limitation, all cancellation and/or termination charges, costs and/or fees under third party contracts, and
(ii) any and all other out-of-pocket charges, costs, fees and/or expenses incurred by the Limited Entities as a consequence of the termination of such Service. After the effectiveness of such termination, the Company shall no longer be
obligated to pay for the terminated Services (provided that any Service Costs paid or due with respect to sums due by Limited Entities to third parties representing non-refunded pre-paid but unused amounts will not be refunded) and provided
that the Company must pay for all Services received through such date of termination. With respect to each individual terminated Service, the Company and Limited Brands will mutually cooperate to identify post conversion Service needs and will
identify personnel resources for potential transfer to the Company, subject to acceptance by the identified personnel of such a request for transfer in employment. 

All transition Services will be developed and will be performed in accordance with approved design specifications, and will be supported
by LTS or other designated Limited Entity through the Termination Date. It is understood and agreed that when any Service Costs for Services under this Schedule I are to be determined or agreed upon by Limited Brands and the Company after the
Closing Date, the provisions of Section 3.01(d) of the Agreement shall control. 
 3.1 Disengagement
Services 
 Limited Brands will be responsible for the conversion of the business applications listed on
Appendix D-1 to Schedule II (Information Technology Services) to the Prior Agreement up to the point of “turnover”, as declared by Limited Brands in conjunction with the Company. On “turnover”, as declared by Limited Brands, the
Company will become fully responsible for the application, operating system, and data. “Turnover” will be defined by Limited Brands and the Company for various aspects of the migration, and may vary from one aspect of the Services to
another. 
 Disengagement Services will be provided under a Specific Billing method to be negotiated in good faith by the parties
which will take into account the Cost Components (which will include, without limitation, the Disengagement Costs) associated with Limited Brands’ provision of Disengagement Services to the Company. The following Disengagement Services will be
provided: 
  

	 	•	 	 Management of each migration effort. 

  

 I-7 

	 	•	 	 The Company shall provide staff necessary to assist in this effort in order to facilitate eventual assumption of responsibility for the application.
Limited Brands will provide all necessary staff that may be required due to specialized knowledge required by systems unique to the Company. 

  

	 	•	 	 Consulting with the Company executive team concerning the hardware and operating system environment in use at Limited Brands, as well as the hardware
and operating system environment appropriate for the Company’s standalone instance of each of the above, but shall not include sizing, tailoring or tuning of the environment of the Company’s standalone configuration after turnover.

  

	 	•	 	 Copies of the Company’s data, both current and all reasonably available historical, will be made available to complete a conversion. This data
will be provided in magnetic tape format or FTP, as Limited Brands and the Company mutually agree (or such other format compatible with devices in use at Limited Brands, as the Company reasonably requests). 

Copies of all application software directly licensed to the Company shall also be made available to complete a conversion, subject to any
license agreements governing use of that software. These programs include any and all application software and utilities licensed directly to the Company and used to operate its systems. Applications and operating system software licensed to Limited
Entities and made available to or used for the benefit of the Company under this Schedule shall not be available for the Company’s use after the transition unless the applicable licensor consents. 

Through completion of each migration, Limited Brands agrees to continue the archiving and record-keeping activities in support of the
Company which are in practice prior to the Closing Date. 
 3.2 Other Transition Services 

In the event Limited Brands is required to provide transition services to the Company in response to a discovery request made to the
Company that relates to electronically stored data (“ESI Services”), the ESI Services will be provided under a Specific Billing method to be negotiated in good faith by the parties which will take into account the Cost Components
associated with providing the ESI Services to the Company, plus a five percent (5%) Administrative Charge. 
 If the
Company and Limited Brands mutually agree that Limited Brands will provide any services not specifically covered by this Schedule I (“Requested Project”), the Requested Project will be provided under a Specific Billing method to be
negotiated in good faith by the parties which will take into account the Cost Components associated with providing the Requested Project services to the Company, plus a five percent (5%) Administrative Charge and the parties will further
negotiate and specify in writing the timing of the implementation of the Requested Project and any other supplemental terms relevant to providing the Requested Project. The parties agree specifically to discuss the INSIGHT implementation and to
mutually determine whether this implementation should be provided to the Company under this Section 3.2. 
  

 I-8 

	4.	Telecommunications Services 

4.1 For so long as the Company’s principal place of business is located in office space leased to the Company by any Limited Entity
(but not exceeding three (3) years from the Closing Date), Limited Brands will provide move/add/change Services for the Company’s offices at such leased principal place of business location. 

4.2 The Company shall enter into an Affiliate Participation Enrollment Agreement (“Affiliate Agreement”) satisfactory to
Limited Brands under the Verizon Service Agreement, effective June 1, 2004, between Limited Brands and Verizon Business Network Services, Inc. on behalf of MCI Communications Services, Inc. d/b/a Verizon Business Services and Verizon Select
Services Inc. and Verizon Network Integration Corp. and all amendments thereto (“Verizon Services Agreement”). For so long as Limited Brands elects to so provide such Services (which may not be beyond the Termination Date without
the consent of the Company) and subject to the consent of Verizon, Limited Brands shall provide the Company with and the Company shall purchase from Limited Brands the services that are provided to Limited Brands under such Verizon Services
Agreement (x) at the office facilities used by the Company, (y) at the Company retail store locations and (z) at other affiliated locations as mutually agreed between Limited Brands and the Company and as provided in the Verizon
Services Agreement. All such Services will be provided under the terms of the Affiliate Agreement and Verizon Services Agreement. Limited Brands will provide the Company with not less than sixty (60) days written notice of any election by
Limited Brands to cease providing the Services described in this Section 4.2. Any expenditures of the Company under the Verizon Services Agreement shall be deemed expenditures of Limited Brands for purposes of meeting the Minimum Annual Volume
Commitment under the Verizon Service Agreement, and will be reflected in pricing passed through to the Company. 
 4.3 The
Company shall enter into a Former Affiliate Enrollment Form (“Enrollment Agreement”) satisfactory to Limited Brands under the terms of the Sprint Master Services Agreement between Sprint Communications Company L.P. and Limited
Brands, effective March 25, 2004 (“Sprint Services Agreement”). For so long as Limited Brands elects to so provide such Services (which may not be beyond the Termination Date without the consent of the Company) and subject to
the consent of Sprint and Sprint’s execution of the Enrollment Agreement, Limited Brands shall provide the Company with and the Company shall purchase from Limited Brands the services that are provided to Limited Brands under such Sprint
Services Agreement (x) at office facilities used by the Company, and (y) at other affiliated locations as mutually agreed between Limited Brands and the Company and as provided in the Sprint Services Agreement. Limited Brands will provide
the Company with not less than sixty (60) days written notice of any election by Limited Brands to cease providing the Services described in this Section 4.3. All such Services will be provided under the terms of the Enrollment Agreement
and Sprint Services Agreement. Any expenditures of the Company under the Sprint Services Agreement shall be deemed expenditures of Limited Brands for purposes of meeting the Minimum Service Commitment under the Sprint Service Agreement, and will be
reflected in pricing passed through to the Company. 
  

 I-9 

 4.4 The telephone system located at office facilities used by the Company and at the Company
stores and the voice messaging (voice mail) system are both shared resources of Limited Brands. Accordingly, Limited Brands will retain ownership of all related hardware and software—including telephone desk top units located at office
facilities used by the Company. Telephone desk top units located at the Company stores are the property of the Company. All purchased cell phones and pagers in the possession of associates or employees of the Company are the property of Limited
Brands; provided, however, that the Company’s associates and/or employees may retain possession of and continue to use such cell phones and pagers so long as the telecommunications Services are provided by Limited Brands pursuant to
Section 4 of this Schedule I, or in the event that the Company switches to the same telecommunications provider following termination of such Services under this Agreement. 

4.5 Notwithstanding anything to the contrary in the Agreement or this Schedule I, the Company shall have no obligation to procure from
Limited Brands store and home office telecommunications services if (i) the Company provides at least nine (9) months prior written notice to Limited Brands and (ii) the Company is able to procure the same services at pricing at least
ten percent (10%) more favorable to the Company than the pricing provided for under the Agreement and this Schedule I. 
  

 I-10 

  

SCHEDULE II 

PRODUCTION AND SOURCING 

SUPPORT SERVICES 
  

 

 Schedule II 

Production and Sourcing Support Services 

Except as otherwise provided in the Agreement, Limited Brands’ obligation to provide or procure, and the Company’s obligation
to purchase, the Services described in this Schedule II (the “P&S Services”) commenced on the Closing Date and will terminate as specified below in this Schedule II. 

 

	I.	Obligations of the Company 

The Company agrees that it shall: 
  

	 	•	 	 Provide to Limited Brands forecast, budget, planning and other guidance by Product type and season and in form, substance and timing similar to that
provided prior to the Closing Date, to enable Limited Brands to appropriately manage strategic sourcing and planning therefor; and 

  

	 	•	 	 Provide to Limited Brands its reasonable assistance at its sole cost and expense to enable Limited Brands to properly perform the P&S Services.

  

	II.	General Description of Services 

In a manner consistent with the provision of such services to the Company as of the Closing Date and to the other businesses of Limited
Brands at the time of such services, Limited Brands will provide the following P&S Services necessary for Products procured through Limited Brands or any of its Subsidiaries: 

 

	 	•	 	 Providing support to the Company in connection with design, technical development, sample development, fitting, Product approval, estimate costing,
compliance testing, pre-production management and other related preproduction services. 

  

	 	•	 	 Providing support to the Company in connection with Product estimating and costing and department cost log management services.

  

	 	•	 	 Providing support to the Company in connection with Product specification, finalization, tracking, calendar and critical path management services.

  

	 	•	 	 Providing support to the Company in connection with Color standard development and bulk color management services. 

 

	 	•	 	 Vendor identification, development, certification, set up, order negotiation, claims, interface, capacity and capability, relationship and management
services. 

  

	 	•	 	 Vendor compliance, auditing (including country of origin and labor standards), inspection, evaluation and monitoring services.

  

 II-2 

	 	•	 	 Purchase order initiation, production management, tracking, maintenance and delivery services. 

 

	 	•	 	 Product compliance, quality assurance management services. 

 

	 	•	 	 Product export, import, customs, regulatory, compliance and documentation management services. 

 

	 	•	 	 New Product innovation, research and development, and information gathering and distribution services. 

 

	 	•	 	 Raw material management and raw material liability management services. 

For clarity regarding the foregoing, it is the parties’ intention that Limited Brands’ P&S Services with respect to any
Products shall be completed as and when Limited Brands’ delivery duties for such Products have been satisfied (e.g., DDP the Company’s warehouse). 
  

	III.	Transfer of Certain P&S Services to the Company 

At all times after the Closing Date, Limited Brands will continue to provide the P&S Services stated above in this Schedule II except
for pre-production and front-end P&S Services which will not be performed for the Company by Limited Brands but will be performed by the Company with some support provided by Limited Brands. In connection therewith, on the Closing Date, all U.S.
based Limited Brands’ associates that were providing the P&S Services to the Company were given the opportunity to transfer to the Company and the Company and Limited Brands developed an orderly process for effectuating the same. The
Company and Limited Brands agree that as of the date of the Prior Agreement, there are approximately 84 Limited Brands’ associates providing the P&S Services to the Company. 

All Limited Brands’ associates transferring to the Company received compensation, benefits and severance from the Company in
accordance with the requirements of the Unit Purchase Agreement. With respect to any such Limited Brands’ associates that declined such transfer opportunity, the costs of termination and severance for such associates shall be part of the
Disengagement Costs. 
  

	IV.	Purchase Obligations; Costs; Required Services 

During the first year after the Closing Date: 
  

	 	•	 	 The Company agreed that it shall purchase a minimum of 90% of its requirements for Products and related P&S Services from Limited Brands
substantially as they are provided on the date of the Prior Agreement, and as otherwise described in the Prior Agreement. The 90% requirements threshold described above shall be calculated on all Products typically sourced by the Company including,
but not limited to, apparel and lingerie, but excluding accessories and licensed product categories. For purposes of this Schedule II, all references herein to a percentage of “requirements” means the specified percentage of total dollars
spent on all Products sourced by the Company during the relevant time period including, but not limited to, apparel and lingerie, but excluding accessories and licensed product categories. 

 

 II-3 

	 	•	 	 The cost for the P&S Services for the first year after the Closing Date shall be the “Landed Duty Price” of Products. For purposes
of this Schedule II, Landed Duty Price, consistent with past practice, includes the costs of the Products, all customs charges, reasonably estimated shipping costs, and the agreed margin, all calculated in accordance with the Customary Billing
method (excluding any separate mark-up or Administrative Charge other than the agreed margin described herein). The agreed margin for the first year after the Closing Date shall be as provided in Schedule VIII (Production and Sourcing Support
Services) to the Prior Agreement. All other direct expenses (such as third-party fees and travel expenses) not otherwise included in Landed Duty Price incurred in connection with the provisions of the P&S Services will be billed under the
Pass-Through Billing method, plus a 5.0% Administrative Charge (“Other Direct Expenses Cost”). 

During the second year after the Closing Date: 
  

	 	•	 	 The Company agreed that it shall purchase not less than 80% of its requirements for Products and related P&S Services from Limited Brands. The 80%
requirements threshold described above shall be calculated on all Products typically sourced by the Company, including, but not limited to, apparel and lingerie, but excluding accessories and licensed product categories; and

  

	 	•	 	 The costs for the P&S Services will be the Landed Duty Price (other than with respect to the agreed margin, which shall be as provided in Schedule
VIII (Production and Sourcing Support Services) to the Prior Agreement) plus Other Direct Expenses Cost. The agreed upon margin for the second year after the Closing Date shall be as provided in Schedule VIII (Production and Sourcing Support
Services) to the Prior Agreement. 

 During the third year after the Closing Date: 

 

	 	•	 	 The Company agrees that it shall purchase not less than 60% of its requirements for Products and related P&S Services from Limited Brands. The 60%
requirements threshold described above shall be calculated on all Products typically sourced by the Company, including, but not limited to, apparel and lingerie, but excluding accessories and licensed product categories; and

  

	 	•	 	 The costs for the P&S Services will be the Landed Duty Price (other than with respect to the agreed margin, which shall be the same margin as for
the first and second year after the Closing Date, as provided in Schedule VIII (Production and Sourcing Support Services) to the Prior Agreement), plus Other Direct Expenses Cost. The agreed upon margin for the third year after the Closing Date
shall be the same margin as for the first and second year after the Closing Date, as provided in Schedule VIII (Production and Sourcing Support Services) to the Prior Agreement. 

 

 II-4 

 In addition to any other amounts payable hereunder, during the first, second and third years
after the Closing Date, the Company will pay Limited Brands an amount equal to Limited Brands’ actual costs directly or indirectly incurred (including, but not limited to, all Cost Components other than any incremental Administrative Charges
except the 5% markup described below) in connection with Limited Brands providing the Company customs, labor and other related compliance services through Independent Production Services or a similar entity (the “Required Services”)
plus a 5% Administrative Charge for all products sourced by the Company through sources other than Limited Brands. 
 Commencing
on the third anniversary of the Closing Date, the Company may obtain all Products and related P&S Services on the open market; provided, however, at all times that the Limited Entities shall continue to own directly or indirectly at least 20% of
the Total Voting Power of Express Parent, LLC, a Delaware limited liability company, the Company shall be required to obtain the Required Services from Limited Brands in connection with all products sourced by the Company through sources other than
Limited Brands and the Company shall pay Limited Brands an amount equal to the costs directly or indirectly incurred by Limited Brands (including, but not limited to, all Cost Components other than any incremental Administrative Charges except the
5% markup described below) in connection with the same plus a 5% Administrative Charge. 
  

	V.	Miscellaneous 

 All
additional specific terms regarding the sale of Products by Limited Brands and/or its Subsidiaries to the Company, and the Company’s purchase of such Products, shall be governed by Limited Brands’ standard sale terms which have been
provided to Buyer and the Company, including those terms in the Apparel Master Sourcing Agreement provided to the Buyer and the Company. In addition, specific terms regarding the sale and purchase of the Products shall be governed by the chargeback
policy attached as Annex A to Schedule VIII (Production and Sourcing Support Services) to the Prior Agreement. To the extent that the terms of the Apparel Master Sourcing Agreement conflict with such chargeback policy, the terms of such chargeback
policy shall control. 
 Notwithstanding any other provisions of this Agreement, and unless otherwise agreed by Limited Brands,
Limited Brands shall not be obligated to but shall have the right to provide P&S Services which in Limited Brands’ reasonable determination have different production and sourcing profiles (e.g. for personal care products, hazardous
products) than the P&S Services which Limited Brands was handling as of the Closing Date. 
 The Company acknowledges and
agrees that while the P&S Services may relate to certain creative and design work, Limited Brands will not be responsible in connection therewith for any intellectual property searches, clearances, registrations and the like (collectively,
“IP Work”), and that the Company will be solely responsible for such IP Work, and, therefore, the Company hereby waives and shall have no right to pursue Limited Brands for Damages that relate to or arise out of or in connection
with the IP Work. For the avoidance of doubt, Limited Brands acknowledges and agrees that it does not have any interest in and to such creative and design work. To the extent that Limited Brands incurs or suffers any Damages relating to, arising out
of or in connection with its creative and design work, the Company will indemnify and hold Limited Brands harmless therefrom in accordance with the provisions of Section 4.05 of the Agreement. 

 

 II-5 

 Notwithstanding anything to the contrary herein, the Company and Limited Brands recognize,
that if the Company breaches any provision of this Schedule II Limited Brands will suffer irreparable harm but the damages will be difficult to measure. Therefore, in light of the actual harm that will be caused to Limited Brands, the difficulties
of proof of loss and the non-feasibility of otherwise obtaining an adequate remedy, the Company agrees to be liable to Limited Brands, as liquidated damages on account of such breach, and in addition to any other amounts due hereunder, in the amount
of the then applicable margin (i.e., as provided in Schedule VIII (Production and Sourcing Support Services) to the Prior Agreement) in the Landed Duty Price of all products, merchandise, inventory, work-in-process, product components, raw
materials, product packaging and labeling, other goods and all other items purchased by the Company and intended for resale by the Company, or intended to be used in, with, or in connection with products or merchandise intended for resale by the
Company which the Company is otherwise required to source through Limited Brands as provided herein (collectively, “Company Products”), regardless of the source of such Company Products, during the continuation of such breach. The
Company shall pay such liquidated damages which have accrued during any fiscal year of Limited Brands on or before the last day of such fiscal year. 
  

 II-6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]