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CONFIDENTIAL PORTIONS OF THIS EXCLUSIVE LICENSE AGREEMENT HAVE BEEN OMITTED PURSUANT TO REGULATION S-K ITEM 601(a)(5) OR 601(b)(10)(iv) OF THE SECURITIES ACT OF 1933, AS AMENDED. CERTAIN CONFIDENTIAL INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (i) IS NOT MATERIAL AND (ii) WOULD LIKELY CAUSE COMPETITIVE HARM TO 9 METERS BIOPHARMA, INC. IF PUBLICLY DISCLOSED. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT AT THE APPROPRIATE PLACES INDICATED BY [*].

Exclusive License Agreement

This Exclusive License Agreement (the “Agreement”) is entered into as of April 11, 2022 (the “Effective Date”) by and between 9 Meters Biopharma, Inc., a Delaware corporation having an address at 8480 Honeycutt Road, Suite 120 Raleigh, NC 27615 USA (“9 Meters”), and the EBRIS srl, a limited liability company organized under the laws of Italy, having its address at Via De Renzi n.50 Salerno (“EBRIS”).  9 Meters and EBRIS may be referred to herein individually as a “Party” or collectively, as the “Parties.”

Recitals

Whereas, 9 Meters has developed and owns or controls certain intellectual property rights with respect to the Compound (as defined below); and

Whereas,   EBRIS wishes  to perform certain clinical studies of a product containing the Compound in the EBRIS Field (as defined below), and 9 Meters wishes to obtain an option to license from EBRIS any new intellectual property resulting from such development. 

Now, Therefore, in consideration of the foregoing and the covenants and promises contained in this Agreement, the Parties agree as follows:

1.Definitions.  The following capitalized terms shall have the subsequent meanings when used in this Agreement.
1.1“20-Day VWAP” means, as of a particular date (the “Reference Date”), the average of the Daily VWAP of a share of 9 Meters’ common stock for each of the twenty (20) consecutive trading days ending on and including the Reference Date. “Daily VWAP” means, for any trading day, the per share volume-weighted average price of 9 Meters’ common stock as displayed on Bloomberg, L.P. (or its equivalent successor if such service is not available) in respect of the period of time from the scheduled open of trading until the scheduled close of trading of the primary trading session on such trading day on the Nasdaq Global Select Market or such other U.S. stock exchange on which 9 Meters’ common stock is then listed.  The Daily VWAP will be determined without regard to after-hours trading or any other trading outside of the regular trading session trading hours. 
1.2“9 Meters Know-How” means the Know-How Controlled by 9 Meters or its Affiliates as of the Effective Date that directly relates to the Compound or Current Product and is necessary for the performance of the Development Program.
1.3“9 Meters Patents” means all Patents Controlled by 9 Meters or its Affiliates as of the Effective Date that Cover Compound or Products and are necessary to perform the Development Program.  
1.4“9 Meters Technology” means the 9 Meters Know-How and the 9 Meters Patents.

1.5“Act” means, as applicable, the United States Federal Food, Drug and Cosmetic Act, 21 U.S.C. §§ 301 et seq., and/or the Public Health Service Act, 42 U.S.C. §§ 262 et seq., as such may be amended from time to time.
1.6“ADE” means any Adverse Event associated with any Product (including Adverse Drug Reactions).
1.7“Adverse Event” or “AE” means any untoward medical occurrence in a patient or clinical investigation subject administered Products and which does not necessarily have to have a causal relationship with such treatment.
1.8“Adverse Reaction” or “Adverse Drug Reaction” or “ADR” means a response to any Product which is noxious and unintended and which occurs at doses normally used in man for prophylaxis, diagnosis or therapy of disease or for modification of physiological function.
1.9“Affiliate” means, with respect to a party, any person, corporation or other business entity which, directly or indirectly through one or more intermediaries, actually controls, is actually controlled by, or is under common control with such party.  As used in this Section 1.9, “control” means to possess, directly or indirectly, the power to affirmatively direct the management and policies of such person, corporation or other business entity, whether through ownership of at least fifty percent (50%) of the voting securities or by contract relating to voting rights or corporate governance.
1.10“Alba License” means that certain License Agreement, dated February 26, 2016, between Alba Therapeutics Corporation (“Alba”) and 9 Meters.
1.11“Alba Patents” means the 9 Meters Patents Controlled by 9 Meters pursuant to the Alba License, which, as of the Effective Date, include those Patents identified as such on Exhibit A.
1.12“Alba Know-How” means that Know-How Controlled by 9 Meters pursuant to the Alba License.
1.13“API” means active pharmaceutical ingredient.
1.14“Applicable Laws” means, individually and collectively, any and all applicable United States, federal, state, local, foreign or multinational laws (including data protection and privacy laws), statutes, standards, codes, ordinances, rules, resolutions, promulgations, directives, administrative circulars and regulations of any kind whatsoever, of any Governmental Authority within the applicable jurisdiction, together with any orders, writs, judgments, injunctions, decrees, stipulations, rulings, determinations or awards entered by or with any Governmental Authority, or any license, franchise, permit, or similar right granted under any of the foregoing, or any similar provision having the force or effect of law.
1.15“Biosimilar” means, with respect to any Product:
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(i) any biological product that is approved, or for which approval would reasonably be anticipated or required to be sought, in the EBRIS Field (a) by or from a regulatory authority under the biosimilar or biosimilarity standard set forth in the United States under 42 U.S.C. §§ 262(i)(2) and (k), or any similar standard under applicable, law, rule, or regulation in any other jurisdiction; and (b) in reliance in whole or in part, on a prior Regulatory Approval (or on any safety or efficacy data submitted in support of such prior Regulatory Approval) of such Product or its disease designation.  For countries or jurisdictions where no explicit biosimilar laws, rules, or regulations exist, Biosimilar includes products which have been deemed to be a biosimilar or otherwise deemed interchangeable by a regulatory authority in such country or jurisdiction; or
(ii) another biologic product, which does not differ in any clinically meaningful way from such Product with respect to its amino acid sequence, analytical comparability, safety or efficacy and is being (or would reasonably be anticipated to be) developed or approved for one or more indications in the EBRIS Field for which the given Product has received Regulatory Approval.
1.16“BLA” means a Biologics License Application under the United States’ Public Health Services Act and Federal Food, Drug and Cosmetics Act, each as amended, and the regulations promulgated thereunder, or a comparable filing for Regulatory Approval in any country.
1.17“Calendar Quarter” means the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September 30 and December 31.
1.18“Calendar Year” means the respective periods of twelve (12) months commencing on January 1 and ending on December 31. The first Calendar Year under this Agreement shall commence as of the Effective Date and end on December 31 of the same year.
1.19“Change of Control” means, with respect to either Party, (a) the acquisition by a Third Party, in one transaction or a series of related transactions, of direct or indirect beneficial ownership of more than fifty percent (50%) of the outstanding voting equity securities of such Party (excluding, for clarity, an acquisition by a Third Party where the equity holders of such acquired Party immediately prior to such transaction hold a majority of the voting shares of outstanding capital stock of the surviving entity immediately following such transaction); (b) a merger or consolidation involving such Party, as a result of which a Third Party acquires direct or indirect beneficial ownership of more than fifty percent (50%) of the voting power of the surviving entity immediately after such merger, reorganization or consolidation; or (c) a sale or transfer of all or substantially all of the assets of such Party (or those assets related to the subject matter of this Agreement), including such Party’s interest in this Agreement, in one transaction or a series of related transactions to a Third Party.
1.20“Commence” or “Commencement,” when used to describe a Phase 1 Trial, Phase 2 Trial, Phase 3 Trial, or any other human clinical trial of a Product, means the first dosing of the first patient or subject for such trial.
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1.21“Commercialization” means all activities that are undertaken after Regulatory Approval of the Product and that relate to the commercial marketing and sale of such Product, including but not limited advertising, marketing, promotion, distribution, and/or sales.
1.22“Commercially Reasonable Efforts” means the carrying out of obligations or tasks in a manner consistent with the efforts a Party devotes to research, development or marketing of a pharmaceutical product or products of similar market potential, profit potential or strategic value resulting from its own research efforts or for its own benefit, taking into account technical, regulatory and intellectual property factors, target product profiles, product designation, product labeling, past performance, costs, economic return, the regulatory environment and competitive market conditions in the therapeutic or market niche, all based on conditions then prevailing, and subject to and in consideration of, in each case, the resources available to such Party and within such Party’s organization for such efforts.
1.23“Compound” means the Current Compound and any analogs or derivatives thereof. 
1.24“Confidential Information” means all information and know-how and any tangible embodiments thereof provided by or on behalf of one Party to the other Party either in connection with the discussions and negotiations pertaining to this Agreement or the Option Agreement, or in the course of performing under the Option Agreement or this Agreement, which may include data, knowledge, practices, processes, ideas, research plans, formulation or manufacturing processes and techniques, scientific, manufacturing, marketing and business plans, and financial and personnel matters relating to the disclosing Party or to its present or future products, sales, suppliers, customers, employees, investors or business; provided, that, information or know-how of a Party will not be deemed Confidential Information of such Party for purposes of this Agreement if such information or know-how:  (a) was already known to the receiving Party, other than under an obligation of confidentiality or non-use, at the time of disclosure to such receiving Party, as can be shown by written records; (b) was generally available or known to parties reasonably skilled in the field to which such information or know-how pertains, or was otherwise part of the public domain, at the time of its disclosure to such receiving Party; (c) became generally available or known to parties reasonably skilled in the field to which such information or know-how pertains, or otherwise became part of the public domain, after its disclosure to such receiving Party through no fault of the receiving Party; (d) was disclosed to such receiving Party, other than under an obligation of confidentiality or non-use, by a Third Party who had no obligation to the disclosing Party not to disclose such information or know-how to others, as can be shown by written records; or (e) was independently discovered or developed by such receiving Party, as can be shown by its written records, without the use or benefit of, or reliance on, Confidential Information belonging to the disclosing Party.
1.25“Controlled” means, with respect to any intellectual property or right therein, the possession by a Party of the ability to grant a license or sublicense as provided for herein without violating the terms of any arrangement or agreements between such Party and any Third Party or incurring any additional payments to any Third Party.
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1.26“Cover” means that the use, manufacture, sale, offer for sale, development, commercialization or importation of the subject matter in question by an unlicensed entity would infringe a Valid Claim of a Patent.
1.27“Current Compound” means larazotide acetate.
1.28“Current Product” means that Product incorporating the Current Compound as its sole API that is described on Exhibit B.
1.29“Develop” or “Development” means, with respect to a Product, engaging in preclinical, clinical, and other development activities, including but not limited for purposes of supporting Regulatory Approval of a new labeled use therefor, and which may include but is not limited to research, pre-clinical, clinical and regulatory activities directed towards obtaining Regulatory Approval of a Product in the Territory.
1.30“Development Program” means the US Study and, if applicable pursuant to Section 3.2, the EU Study.
1.31“Development Program Know-How” means any Know-How, other than Joint Know-How, invented, conceived, first reduced to practice, or generated, as applicable, by EBRIS, any Affiliate thereof, or any of their respective employee(s), agent(s), contractor(s), or representative(s), solely or jointly with any Third Party(ies), as a result of the performance of the Development Program or EBRIS’, its Affiliates’, or their respective employees’, agents’, contractors’, or representatives’ use of any Compound or 9 Meters’ Confidential Information
1.32“Development Program Patents” means any Patent coming under the Control of EBIS or any Affiliate thereof with respect to any Development Program Know-How.
1.33“Development Term” shall have the meaning set forth in Section 3.2.
1.34“Development Territory” means with respect to the US Study, the United States of America and, with respect to the EU Study, the United Kingdom and the member nations of the European Union.
1.35“DMF” means a drug master file, as provided for in 21 CFR § 314.420 or similar submission to or file maintained with the FDA or other Governmental Authority that may be used to provide confidential detailed information about facilities, processes, or articles used in the manufacturing, processing, packaging, and storing of one or more human drugs.
1.36“EBRIS Field” means the treatment of multi-system inflammatory syndrome in human children (MIS-C) or severe multi-system inflammatory syndrome in human adults (MIS-A).  
1.37“EBRIS Know-How” means all inventions, technology, methods, materials (including biological and pharmaceutical materials), know-how, studies, pre-clinical and clinical data (including toxicology and safety data), tests and assays, reports, manufacturing processes, 
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regulatory filings (including drafts) and approvals and other information Controlled by EBRIS or its Affiliates as of the Effective Date, or coming under the Control of EBRIS or its Affiliates following the Effective Date, necessary or useful for the research, development, change in use designation, commercialization, manufacture or testing of any Compound or Product, which shall include any Development Program Know-How and EBRIS’ and its Affiliates’ interest in any Joint Know-How.
1.38“EBRIS Patents” means all Patents Controlled by EBRIS or its Affiliates as of the Effective Date, or coming under the Control of EBRIS or its Affiliates following the Effective Date, that Cover Compound, Products, or any EBRIS Know-How, or which are necessary or useful to develop, manufacture and commercialize Compound or Products, which shall include any Development Program Patents and EBRIS’ and its Affiliates’ interest in any Joint Patents.
1.39“EBRIS Technology” means the EBRIS Know-How and the EBRIS Patents.
1.40“EMEA” means the European Medicines Agency or any successor agency thereof.
1.41“EU Trial” means a human clinical study with respect to the use of the Product to treat MIS-C and/or MIS-A, which study is to be conducted in patients in the EU, that is approved by 9 Meters pursuant to Section 3.2.
1.42“EUA” means an Emergency Use Authorization granted or issued in accordance with Section 564 of the Act.
1.43“Fair Market Value” means, with respect to shares of 9 Meters’ common stock, (i) if shares of 9 Meters’ common stock are not listed on a U.S. stock exchange as of the applicable date, the fair market value thereof as reasonably determined in good faith by 9 Meters’ Board of Directors, and (ii) if shares of 9 Meters’ common stock are listed on a U.S. stock exchange as of the applicable date, the 20-Day VWAP of 9 Meters’ common stock. 
1.44“FDA” means the United States Food and Drug Administration, or any successor federal agency thereto.
1.45“First Commercial Sale” means, with respect to a particular jurisdiction, the first sale in such jurisdiction, following Regulatory Approval in such jurisdiction, of a Product to a Third Party by 9 Meters, any Affiliate thereof, or any Sublicensee in such jurisdiction.
1.46“GCP” means all applicable current Good Clinical Practice standards for the design, conduct, performance, monitoring, auditing, recording, analyses and reporting of Clinical Trials, including, as applicable, (a) as set forth in the International Conference on Harmonisation of Technical Requirements for Registration of Pharmaceuticals for Human Use (“ICH”) Harmonised Tripartite Guideline for Good Clinical Practice (GCP/ICH/135/95) and any other guidelines for good clinical practice for trials on medicinal products in the Territory, (b) the Declaration of Helsinki (2004) as last amended at the 52nd World Medical Association in October 2000 and any further amendments or clarifications thereto, (c) U.S. Code of Federal 
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Regulations Title 21, Parts 50 (Protection of Human Subjects), 56 (Institutional Review Boards) and 312 (Investigational New Drug Application), as may be amended from time to time, and (d) the equivalent Applicable Laws in any relevant country, each as may be amended and applicable from time to time and in each case, that provide for, among other things, assurance that the clinical data and reported results are credible and accurate and protect the rights, integrity, and confidentiality of trial subjects.
1.47“Generic Equivalent” means, with respect to any Product on a country-by-country basis, a product that (a) contains the same active pharmaceutical ingredient(s) as such Product and  (b) is not marketed or sold in such country under the approval of the Regulatory Approval for such Product owned or controlled by 9 Meters, any Affiliate thereof, or any Sublicensee.
1.48“GLP” means all applicable current standards for laboratory activities for pharmaceuticals, as set forth in the FDA’s Good Laboratory Practice regulations as defined in 21 C.F.R. Part 58 or the Good Laboratory Practice principles of the Organization for Economic Co-Operation and Development, and such standards of good laboratory practice as are required by the European Union and other organizations and governmental agencies in countries in which a Licensed Product is intended to be sold, to the extent such standards are not less stringent than United States Good Laboratory Practice.
1.49“GMP” means all applicable current Good Manufacturing Practices including, as applicable, (a) the principles detailed in the U.S. Current Good Manufacturing Practices, 21 C.F.R. Parts 4, 210, 211, 601, 610 and 820, (b) European Directive 2003/94/EC and Eudralex 4, (c)  the principles detailed in the WHO TRS 986 Annex 2, TRS 961 Annex 6 and TRS 957 Annex 2, (d) ICH Q7 guidelines and (e) the equivalent Applicable Laws in any relevant country, each as may be amended and applicable from time to time.
1.50“Governmental Authority” means any court, agency, department or other instrumentality of any foreign, federal, state, county, city or other political subdivision (including any supra-national agency such as in the European Union).
1.51“IND” means an Investigational New Drug Application filed with the FDA or the equivalent application or filing filed with any equivalent agency or government authority outside of the United States (including any supra-national agency such as in the European Union) necessary to commence human clinical trials in such jurisdiction, and including all regulations at 21 CFR § 312 et. esq., and equivalent foreign regulations.
1.52“Joint Know-How” means any Know-How invented, conceived, first reduced to practice, or generated, as applicable, jointly by (i) by EBRIS, any Affiliate thereof, or any of their respective employee(s), agent(s), contractor(s), or representative(s) and (ii) 9 Meters, any Affiliate thereof, or their respective employee(s), agent(s), or representative(s) as a result of the performance of the Development Program or EBRIS’, its Affiliates’, or their respective employees’, agents’, contractors’, or representatives’ use of any Compound or 9 Meters’ Confidential Information.
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1.53“Joint Patents” means any Patent filed by or on behalf of (i) EBRIS or any Affiliate thereof and (ii) 9 Meters or any Affiliate thereof with respect to any invention or discovery included within the Joint Know-How and any Patent Controlled by (i) EBRIS or any Affiliate thereof and (ii) 9 Meters or any Affiliate thereof claiming priority to such a Patent.
1.54“Joint Technology” means Joint Know-How and Joint Patents.
1.55“Know-How” means any proprietary and confidential scientific or technical information, including inventions, discoveries, trade secrets, results and data of any type whatsoever, in any tangible or intangible form whatsoever, including any of the foregoing that are databases, safety information, practices, methods, techniques, specifications, formulations, formulae, knowledge, know-how, skill, experience, test data including pharmacological, medicinal chemistry, biological, chemical, biochemical, toxicological and clinical test data, analytical and quality control data, stability data, studies and procedures, manufacturing process and development information, results or data.  For clarity, Know-How excludes Patents.
1.56“NDA” means a new drug application (as defined in Title 21 of the United States Code of Federal Regulations, as amended from time to time) submitted to the FDA seeking regulatory approval to market and sell the Product in the United States (including a new drug application submitted under Section 505(b)(2) of the Act).
1.57“Net Sales” means gross amounts invoiced or, if not invoiced, otherwise received for 9 Meters’, its Affiliates’, and Sublicensees’ sales of Payment Products that are prescribed for use in the EBRIS Field (as reasonably determined in good faith by 9 Meters, its Affiliates, and Sublicensees by reference to IQVIA Inc. and/or Symphony Health Inc.), less the sum of the following, to the extent commercially reasonable and directly and solely related to the sale of such Payment Products: (1) trade, cash, quantity, and other discounts or price reductions, including retroactive price reductions; (2) rebates, credits, and chargeback payments granted to federal, state/provincial, local and other governments or managed health care organizations, including their agencies, purchasers, and/or reimbursers, under programs available or required by law, or reasonably entered into to sustain and/or increase market share for Payment Products; (3) sales, value added, use, excise, and/or similar taxes directly imposed and with reference to particular sales or transfers; (4) amounts allowed or credited for returned, defective, or expired Payment Products; (5) shipping, freight, handling, and insurance charges; (6) import or export duties, tariffs, or similar charges incurred with respect to the import or export of Payment Products into or out of any country; (7) amounts paid to distributors or wholesalers; and (8) bad debt and uncollectible amounts.  Such amounts shall be determined from the books and records of 9 Meters, its Affiliates, and Sublicensees maintained in accordance with United States generally accepted accounting principles or such other internationally-recognized accounting standards or principles as may be applied thereby, consistently applied.  Notwithstanding anything to the contrary, only sales of a Payment Product in a country during the Royalty Term for such Payment Product in such country shall be included in Net Sales.
No deductions from the amounts defined above may be made for commissions paid to individuals whether those individuals are associated with independent sales agencies or regularly employed by 9 Meters, its Affiliates, or Sublicensees, nor may deductions be made for cost of 
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collections.  Payment Products are considered “sold” when billed out or invoiced or, in the event such Payment Products are not billed out or invoiced, when the consideration for sale or provision of the Payment Products is received.  Notwithstanding the foregoing, Net Sales shall not include, and shall be deemed zero with respect to, (i) Products used by 9 Meters, its Affiliates, or Sublicensees for their own internal use, (ii) the distribution of  reasonable quantities of promotional samples of Payment Products, (iii) sales of any Products to any Governmental Authority, or (iv) Payment Products provided for research, development, charitable, or compassionate use purposes, or (iv) Payment Products provided to 9 Meters, an Affiliate, or a Sublicensee for purposes of resale, provided such resale is subject to royalties due to EBRIS under Section 5.4 of this Agreement.
Notwithstanding anything to the contrary, in the event that any Payment Product includes, in addition to a Compound, one or more other APIs (a “Combination Product”), the Net Sales of such Combination Product in a particular country, for the purposes of determining royalty payments due hereunder, shall be determined by multiplying the Net Sales of the Combination Product in such country by the fraction, A / (A+B) where A is the weighted average sale price of the Payment Product including the Compound (and not any of the other APIs included in the Combination Product) (the “Basic Product”) when sold separately in finished form in such country, and B is the weighted average sale price(s) of product(s) including the other API(s) (and not the Compound) (such products, “Other Products” ) sold separately in finished form in such country (if there is more than one Other Product, B shall equal the sum of all such Other Products’ weighted average sale prices in such country).
In the event that, with respect to any Combination Product sold in a particular country, the weighted average sale price of the  Basic Product in such country can be determined but the weighted average sale price(s) of the Other Product(s) in such country cannot be determined, Net Sales for purposes of determining royalty payments for such Combination Product in such country shall be calculated by multiplying the Net Sales of the Combination Product in such country by the fraction A / C where A is the weighted average sale price of the Basic Product when sold separately in finished form in such country and C is the weighted average sale price of the Combination Product in such country.

In the event that, with respect to any Combination Product sold in a particular country,  the weighted average sale price(s) of the Other Product(s) in such country can be determined but the weighted average sale price of the Basic Product cannot be determined, Net Sales for purposes of determining royalty payments shall be calculated by multiplying the Net Sales of the Combination Product by the following formula:  one (1) minus B / C where B is the weighted average sale price(s) of the Other Product(s) when sold separately in finished form in such country and C is the weighted average sale price of the Combination Product in such country (if there is more than one Other Product, B shall equal the sum of all such Other Products’ weighted average sale prices in such country).

In the event that, with respect to any Combination Product sold in a particular country, the weighted average sale price(s) in such country of neither the Basic Product nor the Other Product(s) in the Combination Product can be determined, the Net Sales of the Combination Product shall, for the purposes of determining royalty payments with respect to such 
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Combination Product, be reasonably determined in good faith by 9 Meters consistent with the ratios and related principles referenced above and based on the relative value of the Compound (and EBRIS Technology) and the other API(s) to such Combination Product.

The weighted average sale price for a Basic Product, Other Product(s), or Combination Product in a particular country shall be calculated once for each calendar year and such price shall be used during all applicable royalty reporting periods for such calendar year.  When determining the weighted average sale price of a Basic Product, Other Product(s), or Combination Product in a particular country, the weighted average sale price shall be calculated by dividing the sales dollars (translated into U.S. dollars) by the units of Basic Product, Combination Product, or Other Product sold in such country during the twelve (12) months (or the number of months sold in a partial calendar year) of that calendar year for the respective Basic Product, Other Product(s), or Combination Product.  For each calendar year, a reasonably forecasted weighted average sale price will be used for the Basic Product, Other Product(s), or Combination Product, which forecasted weighted average sale price will be, for each year other than the initial calendar year (or portion thereof) during which the Combination Product is sold, no less than the weighted average sale price for the Basic Product, Other Product(s), or Combination Product in a particular country calculated for the preceding calendar year. Any over or under payment due to a difference between forecasted and actual weighted average sale prices will be paid or credited in the first royalty payment of the following calendar year.  For the avoidance of doubt, excipients shall not be considered APIs for the purpose of this definition of Net Sales.

1.58“Option Expiration Date” means the date three (3) months following the later of (i) the end of the Development Term or (ii) EBRIS’ delivery to 9 Meters of all material Know-How generated in the course of the Development Program and the final study reports with respect to the US Trial, and, if conducted as part of the Development Program, EU Trial.
1.59“Patent(s)” means all patents and patent applications in any country or supranational jurisdiction, including any provisionals, substitutions, divisions, continuations, continuations-in-part, reissues, renewals, registrations, confirmations, reexaminations, extensions, any other pre- or post-grant forms of any of the foregoing, any confirmation patents or registration patents or patents of addition, utility models, patent term extensions or restorations, and supplementary protection certificates or requests for continued examinations and the like, including any and all foreign counterparts of any of the foregoing.
1.60“Payment Product” means a Product Covered by a Valid Claim of an EBRIS Patent in the country of use, sale, or manufacture or whose Regulatory Approval in the EBRIS Field in the country of use or sale relied upon, as a necessary portion of the application therefor submitted to the applicable Regulatory Authority, any EBRIS Know-How directly resulting from the conduct of the Development Program.
1.61“Phase II Clinical Trial” means (i) a study in humans of the safety, dose ranging and efficacy of a Product, which is prospectively designed to generate sufficient data (if successful) to commence a Phase III Clinical Trial or to file for accelerated approval, or otherwise consistent with the requirements of U.S. 21 C.F.R. §312.21(b), as amended from time 
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to time, or (ii) any analogous clinical trial described or defined in Applicable Laws and guidelines for a clinical trial conducted in another country in the Territory.
1.62“Phase III Clinical Trial” means (i) a controlled study in humans of the efficacy and safety of a Product, which is prospectively designed  in agreement with the FDA to demonstrate statistically whether such product is effective and safe for use in a particular indication in a manner sufficient to file for Regulatory Approval for human therapeutic or prophylactic use, or otherwise consistent with the requirements of U.S. 21 C.F.R. §312.21(c), as amended from time to time, or (ii) any analogous clinical trial described or defined in Applicable Laws and guidelines for a clinical trial conducted in another country in the Territory.
1.63“Product” means a product that incorporates or comprises the Compound or any analog or derivative thereof as its sole API or in combination with one or more other APIs.
1.64“Regulatory Approval” means any and all approvals (including supplements, amendments, pre- and post-approvals, pricing and reimbursement approvals), licenses, registrations, clearances, or authorizations of any national, supra-national (e.g., the European Commission or the Council of the European Union), regional, state or local regulatory agency, department, bureau, commission, council or other governmental entity, that are necessary for the manufacture, distribution, use, or, in 9 Meters’, its Affiliates’, or a Sublicensee’s reasonable judgment, sale of a Payment Product for human therapeutic, prophylactic, or diagnostic use in a particular jurisdiction, provided that, notwithstanding anything to the contrary, an EUA shall not be considered a Regulatory Approval.
1.65“Regulatory Authority” means any Governmental Authority with responsibility for granting any licenses or approvals necessary for the marketing and sale of pharmaceutical or biological products in a particular jurisdiction, including, without limitation, the FDA, and where applicable any ethics committee or any equivalent review board.
1.66 “Regulatory Filing” means, with respect to the United States, an NDA, BLA, or IND, any foreign counterparts or equivalents of any of the foregoing, any DMFs, and any other filings or submissions required by or provided to Regulatory Authorities relating to the Development or Commercialization of any Product or Service, including any supporting documentation, correspondence, meeting minutes, amendments, supplements, registrations, licenses, regulatory drug lists, advertising and promotion documents, adverse event files, complaint files, and manufacturing, shipping, or storage records with respect to any of the foregoing.
1.67“Royalty Term” means, on a Product-by-Product and country-by-country basis, the period of time commencing on the First Commercial Sale of a Product in a country and ending on the first day on which there is not at least one EBRIS Patent having a Valid Claim Covering the manufacture, use, or sale of such Product in such country.
1.68“Sublicensee” means a Third Party granted a sublicense to any of the rights granted to 9 Meters and its Affiliates under Section 2.4(2).
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1.69“Term” has the meaning assigned to it in Section 9.1.
1.70“Territory” means the world.
1.71“Third Party” means any entity other than (a) 9 Meters, (b) EBRIS, or (c) any Affiliate of either Party. 
1.72“US Study” means that human clinical trial of the Current Product described on Exhibit C.
1.73“Valid Claim” means a claim of any pending patent application or any issued, unexpired United States or granted foreign patent that has not been dedicated to the public, disclaimed, abandoned or held invalid or unenforceable by a court or other body of competent jurisdiction from which no further appeal can be taken, and that has not been explicitly disclaimed, or admitted in writing to be invalid or unenforceable or of a scope not Covering a particular product or service through reissue, disclaimer or otherwise, provided that, in order to be a Valid Claim, any claim being prosecuted in a pending patent application must be prosecuted in good faith and not have been pending for more than seven) years from the filing date of the first patent application (or equivalent concept in any such country) in the patent application family in the country in question, in which case it will cease to be considered a Valid Claim until the patent issues and recites said claim.
2.Licenses, Option, and Related Rights and Obligations
2.1License to EBRIS.  Subject to Section 2.3 below, 9 Meters hereby grants to EBRIS and its Affiliates an exclusive license, with the right to sublicense as set forth in Section 2.2, under the 9 Meters Technology to use Current Product to perform the Development Program in the Development Territory during the Development Term in the EBRIS Field.  
2.2Sublicensing.  EBRIS shall solely have the right to sublicense its rights under Section 2.1 to one or more Third Parties engaged by EBRIS to perform the Development Program, provided that any such sublicense must be approved in advance and in writing by 9 Meters.  EBRIS shall provide 9 Meters a written copy of each such sublicense (and each amendment thereto, if any) promptly following its execution.  Each sublicense shall (i) be subject to, and consistent with, the terms and conditions of this Agreement, (ii) be no less favorable to 9 Meters than this Agreement, (iii) not conflict with the terms of this Agreement, and (iv) contain terms and conditions reasonably sufficient to enable EBRIS to comply with the terms of this Agreement.  
2.39 Meters Option.  EBRIS hereby grants 9 Meters an exclusive option within the EBRIS Field (the “Option”) to be granted the rights set forth in Section 2.4(2) below on the terms set forth in this Agreement.  9 Meters shall be entitled to exercise such Option at any time prior to the Option Expiration Date by providing written notice thereof to EBRIS.  EBRIS shall not enter into (and it shall ensure that its Affiliates do not enter into) any agreement with any Third Party prior to the Option Expiration Date that would adversely affect its ability to grant the licenses set forth in Section 2.4(2) below to 9 Meters, nor enter into any discussions or 
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negotiations with any Third Party with respect to any such agreement prior to the Option Expiration Date.   

2.4Licenses to 9 Meters.

(1)Outside Field.  EBRIS hereby grants to 9 Meters and its Affiliates a perpetual, irrevocable, fully-paid, transferable exclusive license, with the right to sublicense, under the EBRIS Technology to the extent necessary to comply with Applicable Law, and/or satisfy any obligations to any Regulatory Authority, with respect to the manufacture, use, sale, offer for sale, import, or other exploitation of Compounds and Products outside the EBRIS Field, which license shall include a right of reference with respect to any Regulatory Filings owned or controlled by EBRIS or any Affiliate thereof.

(2)Upon Option Exercise.  The following portions of this Section 2.4(2) shall only become effective upon 9 Meters’ exercise of the Option:
(i)EBRIS hereby grants to 9 Meters and its Affiliates an exclusive license, with the right to sublicense as set forth in Section 2.2(2)(ii) and transferable with this Agreement pursuant to Section 13.2, under the EBRIS Technology and EBRIS’ and its Affiliates’ rights in Joint Technology to make, have made, use, have used, sell, have sold, offer for sale, have offered for sale, import, and otherwise exploit Compounds and Products in the EBRIS Field, which license shall include a right of reference with respect to any Regulatory Filings owned or controlled by EBRIS or any Affiliate thereof;
(ii)The rights granted under Section 2.4(2)(i) may be sublicensed to one or more Third Parties (through multiple tiers), including the right of Sublicensees to further sublicense such rights.  9 Meters shall provide EBRIS a written copy of each such sublicense (and each amendment thereto, if any) within thirty (30) days following its execution, provided that such copy may be redacted if/as necessary to protect the confidential or proprietary information of any Sublicensee.  Each sublicense shall (i) be subject to, and consistent with, the applicable terms and conditions of this Agreement, (ii) not conflict with the terms of this Agreement, and (iii) contain terms and conditions reasonably sufficient to enable 9 Meters to comply with the terms of this Agreement; and
(iii)EBRIS shall not, and shall ensure that its Affiliates do not, directly or indirectly, without 9 Meters’ prior written consent, (a) perform any research, development, or other activities in the EBRIS Field using any Compound or Product or (b) enable, permit, or provide any assistance to any Third Party with respect to any of the foregoing activities, or grant any Third Party any rights to engage in any of the foregoing activities, in the EBRIS Field.
2.5No Implied Licenses.  Except as expressly set forth in this Agreement, neither Party, by virtue of this Agreement, shall acquire any license or other interest, by implication or otherwise, in any materials, Know-How, or intellectual property rights owned, licensed, or controlled by the other Party or its Affiliates.
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2.6Section 365(n).  All licenses granted under this Agreement are deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of right to “intellectual property” as defined in Section 101 of such Code. The Parties agree that 9 Meters may fully exercise all of its rights and elections under the U.S. Bankruptcy Code and any foreign equivalent thereto in any country having jurisdiction over a Party, its Affiliates, or its assets.  The Parties further agree that, in the event 9 Meters elects to retain its rights as a licensee under such Code, 9 Meters shall be entitled to complete access to any technology or intellectual property licensed to it hereunder and all embodiments of such technology and intellectual property.  Such embodiments of the technology and intellectual property shall be delivered to 9 Meters not later than:
(3)the commencement of bankruptcy proceedings against EBRIS, upon written request, unless EBRIS elects to perform its obligations under this Agreement, or
(4)if not delivered above under this Section 2.6, upon the rejection of this Agreement by or on behalf of EBRIS, upon 9 Meters’ written request.

3.    Development Program
    3.1    US Trial.  EBRIS shall use Commercially Reasonable Efforts to perform the US Trial in accordance with GCP, GLP, Applicable Laws, and the protocol therefor set forth on Exhibit C.  EBRIS shall not amend, or permit any amendment to, the protocol for the US Trial without 9 Meters’ prior written consent.  EBRIS shall provide 9 Meters with a copy of any draft study report, and the final study report, with respect to the US Study, within five (5) Business Days of EBRIS’ completion or receipt thereof, as applicable.

3.2    EU Trial.  If EBRIS wishes to perform the EU Trial, it shall provide written notice thereof to 9 Meters, which notice shall contain an initial proposed protocol for the EU Trial and a copy of all material EBRIS Know-How Controlled by EBRIS as of such notice, during the period following the delivery of the initial draft study report concerning the US Trial and prior to ninety (90) days of the earlier of (1) its provision of the final study report for the US Study to 9 Meters, (2) the date three (3) months following the final administration of Product to a subject in the US Trial, or (3) the date three (3) months following the Effective Date (such period, the “EU Trial Option Period”).  If EBRIS provides such notice during the EU Trial Option Period, 9 Meters shall have a period of forty-five (45) days following such notice within which to approve EBRIS’ conduct of the EU Trial, such approval not to be unreasonably withheld.  If 9 Meters does not provide written notice denying EBRIS’ request for such approval within such forty-five (45) day period, it shall be deemed to have approved such request.  Upon 9 Meters’ approval of such request pursuant to such notice, EBRIS shall be entitled to perform the EU Trial as part of the Development Program, provided that (i) the EU Trial shall only be performed pursuant to a protocol approved in advance and in writing by 9 Meters, such approval not to be unreasonably withheld, (ii) any amendment to any 9 Meters-approved protocol shall also require the prior written approval of 9 Meters, such approval not to be unreasonably withheld, (iii) the EU Trial must Commence within date three (3) months following 9 Meters’ approval (whether actual or deemed) of EBRIS’ request to perform the EU Trial pursuant to the foregoing, and (iv) EBRIS 
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shall promptly provide 9 Meters with copies of any and all regulatory communications, correspondence, filings, or submissions related to the EU Trial.  If (a) EBRIS does not provide the above-described notice requesting the ability to perform the EU Trial during the EU Trial Option Period, (b) 9 Meters reasonably denies or withholds approval of such request, (c) the protocol for the EU Trial is not approved by 9 Meters as contemplated above, or (d) the EU Trial does not Commence within date three (3) months following 9 Meters’ approval (whether actual or deemed) of EBRIS’ request to perform the EU Trial pursuant to the foregoing, EBRIS shall not be entitled to perform, and the Development Program shall not include, the EU Trial (and the period from the Effective Date until the occurrence of (a), (b), (c), or (d), as applicable, the “Development Term”). EBRIS shall provide 9 Meters with a copy of any draft study report, and the final study report, with respect to the EU Study, within five (5) Business Days of EBRIS’ completion or receipt thereof, as applicable

3.3    Trial Materials.  9 Meters has provided prior to the Effective Date, and/or shall provide (to the extent not previously provided) within thirty (30) days of the Effective Date, EBRIS the Current Compound and/or Current Product set forth on Exhibit D; such Current Compound and/or Current Product shall only be used to perform the US Trial, and any such Current Compound and/or Current Product remaining following the completion or early termination of the US Trial shall be promptly returned to 9 Meters as reasonably directed thereby.  If 9 Meters approves the conduct of the EU Trial pursuant to Section 3.2, the Parties shall use reasonable, good faith efforts to negotiate and agree upon the terms under which 9 Meters would supply Current Compound or Product for use in the EU Trial at a reasonable price to be paid by EBRIS to 9 Meters therefor.

3.4    Reporting.  From and after the Effective Date, EBRIS shall keep 9 Meters regularly informed in reasonable detail of the progress of the Development Program, including providing quarterly written updates with respect thereto to 9 Meters within ten (10) Business Days of the end of each Calendar Quarter and, if and as requested by 9 Meters from time-to-time, providing 9 Meters any EBRIS Know-How.  In addition, from and after the Effective Date, upon the reasonable request of 9 Meters, but no more frequently than one time in each calendar month, 9 Meters and EBRIS shall meet by telephone, videoconference, or in-person at a mutually agreeable location to discuss the topics described in the progress reports, and such other topics related to EBRIS’ research or development with respect to Compounds and Products as 9 Meters may reasonably request.

3.5    Contractors.  EBRIS shall only be entitled to use Third Parties to perform any portion of Development Program (or manufacture on behalf of EBRIS or its Affiliates any Current Compound or Products for use therein) that are approved in advance and in writing by 9 Meters.  EBRIS shall ensure that any Third Parties used to perform any portion of the Development Program (or manufacture on behalf of EBRIS or its Affiliates any Current Compound or Products for use therein) execute legally enforceable, written agreements with EBRIS or an Affiliate thereof that are consistent with this Agreement and contain provisions sufficient to enable EBRIS’ and its Affiliates’ to comply with their obligations under this Agreement, and any such agreement shall, except as authorized in advance and in writing by 9 Meters, assign to EBRIS all right, title, and interest in any Compound- or Product-related Know-
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How generated in the performance of the Development Program (or manufacture on behalf of EBRIS or its Affiliates of any Current Compound or Products for use therein).

3.5    Recordkeeping.  EBRIS shall maintain (and ensure that its Affiliates and any Third Parties involved in the performance of any portion of the Development Program maintain) reasonably complete and accurate records of all work conducted in furtherance of the Development Program and all material results, data and developments made in conducting such activities.  Such records shall be maintained in reasonably sufficient detail and in good scientific manner reasonably appropriate for patent and regulatory purposes.

4.    Regulatory; Post-Option Exercise Development.
4.1    Interactions With Authorities.
(1)    After the Effective Date, each Party shall provide to the other Party a copy of any material correspondence or materials that it or an Affiliate thereof receives that is from a Governmental Authority regarding any Product in the EBRIS Field. Such correspondence or summary shall be provided within five (5) Business Days of receipt thereof by the relevant Party.  9 Meters shall be provided reasonable advance written notice of all material meetings, conferences, or calls between Governmental Authorities and EBRIS or any Affiliate thereof  concerning any Product or portion of the Development Program and 9 Meters shall be permitted to have one regulatory representative attend all such meetings, conferences, or calls.  With respect to any Product, EBRIS shall provide 9 Meters with copies of any materials relating to any material regulatory matter related to any Product or Development Program and, when reasonably practicable, shall provide copies of any documents to be presented to any Governmental Authority in respect of such matters reasonably prior to their presentation thereto, so that 9 Meters, if practicable, shall have an opportunity to review in advance.
(2)    EBRIS shall provide 9 Meters with (i) a copy of all safety-related correspondence with any Governmental Authority within five (5) Business Days of its receipt or submission and (ii) any other information concerning any ADE, AE, or ADR concerning any Product coming into EBRIS’ or any of its Affiliates’ knowledge or possession that EBRIS believes or is informed by 9 Meters to be reasonably necessary to enable 9 Meters, any Affiliate thereof, or any licensee or sublicensee of any of the foregoing to comply with any applicable legal or regulatory requirements of any jurisdiction with respect to any Product, on such time frame as is reasonably sufficient to enable such compliance in a timely manner.

(5)The Parties agree that, upon the written request of 9 Meters, (i) they shall use Commercially Reasonable Efforts in good faith to negotiate and execute one or more customary and reasonable forms of safety data exchange agreements and/or pharmacovigilance agreements intended to enable 9 Meters to comply with its reporting, monitoring, and related obligations under Applicable Law with respect to Products.
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4.2    Following 9 Meters Option Exercise.  If 9 Meters exercises the Option, then, effective thereafter:
(1)    EBRIS shall promptly transfer to 9 Meters, at no additional cost, all EBRIS Know-How, including all pre-clinical data, trade secrets, efficacy data, and other data related to any Product generated under this Agreement. In no event shall such transfer be completed later than thirty (30) days after such exercise;
(2)    9 Meters shall, as between the Parties, own and be responsible for preparing, submitting and supporting all Regulatory Approvals and Regulatory Filings for Products in each country in the Territory.  Upon 9 Meters’ request, EBRIS shall provide to 9 Meters, on a timely basis, copies of all scientific, technical, pre-clinical data, and other material data and information within the EBRIS Technology relating to or intended to support any Regulatory Filing for Compounds or Products;
(3)    9 Meters shall provide EBRIS a yearly written update, within ninety (90) days of the end of each Calendar Year, summarizing the progress and results of its, its Affiliates’, and Sublicensees’ efforts to develop and commercialize Products in the EBRIS Field, and any ongoing plans with respect thereto; and

(6)9 Meters shall comply, and shall ensure that its Affiliates and any Sublicensees comply, with all Applicable Laws in the exercise of the rights granted under this Agreement.

5.    Financial Terms
5.1    Development Program.  EBRIS shall, as between the Parties, be responsible for all costs and expenses related to the performance of the Development Program.
5.2    Equity and MIS-C Trial Fee

    (1)    Equity.  9 Meters shall, within ten (10) business days of the Effective Date, issue to EBRIS such number of shares of 9 Meters’ unregistered common stock as is equal to five hundred thousand dollars (US$500,000) divided by the Fair Market Value of 9 Meters’ common stock as of the Effective Date.  Such issuance will be contingent upon EBRIS’ execution of the form of subscription agreement attached hereto as Schedule 5.2(1).

    (2)    MIS-C Trial Fee.  EBRIS shall provide written notice to 9 Meters upon final database lock with respect to a Phase II Clinical Trial that was conducted by or on behalf of EBRIS, included in the Development Program, and explicitly intended, as evidenced by its protocol, to test the efficacy of the Product for the treatment of MIS-C.  9 Meters shall, no later than thirty (30) days following 9 Meters’ receipt of the notice of database lock described above, pay EBRIS five hundred thousand dollars (US$500,000) in cash.

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5.3    Option Exercise Fee.  If 9 Meters exercises the Option, 9 Meters shall, within sixty (60) days of 9 Meters’ exercise of the Option, pay EBRIS one million dollars (US$1,000,000) in cash or in unregistered shares of common stock, at the election of 9 Meters in accordance with Section 5.10.

5.4    Royalty Payments.  If 9 Meters exercises the Option, 9 Meters shall, subject to the adjustments set forth in Section 5.7 below, pay to  EBRIS an amount equal to [*]percent ([*]%) of Net Sales in the United States of America by 9 Meters, its Affiliates, and Sublicensees in cash or in unregistered shares of common stock, at the election of 9 Meters in accordance with Section 5.10.
5.5    Development Milestone Payments.  If 9 Meters exercises the Option, 9 Meters shall pay EBRIS each applicable amount set forth on Exhibit E within sixty (60) days of the achievement of the corresponding milestone indicated on Exhibit E, which payments shall be non-refundable and non-creditable and shall be paid in cash or in unregistered shares of common stock, at the election of 9 Meters in accordance with Section 5.10, provided that, notwithdstanding anything to the contrary:
        (1)    if there are, during the twelve (12) Calendar Months preceding the Calendar Month in which a particular milestone event on Exhibit E is achieved, more than [*] and fewer than [*] diagnosed cases of MIS-C in the United States, the applicable payment due for such milestone shall be [*] percent ([*]%) of the amount set forth on Exhibit E therefor; and

        (2)    if there are, during the twelve (12) Calendar Months preceding the Calendar Month in which a particular milestone event on Exhibit E is achieved, [*] or fewer diagnosed cases of MIS-C in the United States, the applicable payment due for such milestone shall be [*] percent ([*]%) of the amount set forth on Exhibit E therefor.

Each milestone payment in Exhibit E above (as it may be adjusted pursuant to the foregoing) shall only be paid once under this Agreement, upon the initial achievement of the applicable milestone, and the total amounts payable to 9 Meters under this Section 5.5 shall not in any event exceed fifty six million dollars (US$56,000,000).
5.6    Sales Milestone Payments.  If 9 Meters exercises the Option, 9 Meters shall pay EBRIS the following amounts in cash or in unregistered shares of common stock, at the election of 9 Meters in accordance with Section 5.10, which shall be non-refundable and non-creditable, within sixty (60) days of the end of the Calendar Year during which such milestone was first achieved.
						
	Net Sales of all Products in a Single Calendar Year	Payment
	Greater than US$[*]
	US$[*]

	Greater than US$[*]
	US$[*]

5.7    Adjustments.
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(1)Biosimilar or Generic Entry.  In the event (i) a Third Party has obtained Regulatory Approval of a Biosimilar or Generic Equivalent in a particular country with respect to a particular Payment Product, then, beginning with the Calendar Quarter in which such Regulatory Approval is obtained, the royalty rate(s) applicable to Net Sales of such Payment Product in such country shall be reduced by [*] percent ([*]%) of then-applicable royalty rate.
(7)Third Party Licenses.  If 9 Meters, any Affiliate thereof, or any Sublicensee has, prior to the Effective Date, obtained, or, following the Effective Date, reasonably determines in good faith that it is reasonably necessary or useful  to obtain a license or other right from a Third Party under any Patent Covering or Know-How concerning any Payment Product (including in connection with the settlement of a patent infringement claim) (in each case, “Third Party IP Payments”), then Licensee may deduct [*] percent ([*]%) of the Third Party IP Payments paid by Licensee, any of its Affiliates, or any Sublicensee to such Third Party from any amounts payable by 9 Meters to EBRIS under this Section 5.
(8)Compulsory Licenses.  If, during the term of this Agreement for a particular Payment Product in a particular country, a compulsory license is required to be granted to a Third Party under the Applicable Laws of such country in the Territory, the Party receiving notice thereof or otherwise becoming aware thereof shall promptly notify the other Party thereof and the Parties shall use good faith efforts to meet and discuss alternatives available to them, if any, in connection with such compulsory license and/or any consideration to be paid therefor.  The Parties hereby agree that, notwithstanding anything to the contrary, (i) the royalty payable to EBRIS under this Agreement with respect to Net Sales of Products sold in any country in which a compulsory license has been granted for such Products shall not in any event exceed the royalty, if any, payable by any compulsory licensee with respect to sales of such Products under such compulsory license (or sublicense granted thereunder), (ii) sales of Products subject to a compulsory license in a particular country by a compulsory licensee (or any sublicensee thereof) under such license (or sublicense thereunder) shall not be included within Net Sales for any purposes hereunder, and (iii) if there are royalties payable to 9 Meters, EBRIS, or any Affiliate of either of the foregoing with respect to the sale of Products under a compulsory license (or any sublicense thereof) by any compulsory licensee (or sublicensee thereof), the Parties shall use good faith efforts to agree on a commercially reasonable method and terms for dividing between them such royalties that are actually received by one or both Parties (or their Affiliates) thereunder; provided that, in no event with respect to any country in which a compulsory license is granted will (x) either EBRIS or 9 Meters be required to pay the other Party any royalties with respect to sales of Products by Third Parties under such compulsory licenses (or sublicenses thereunder) in excess of the royalties or similar amounts actually received by such Party or its Affiliates with respect to such sales under such compulsory license (or sublicenses thereunder) or (y) 9 Meters and its Affiliates be required to pay EBRIS and any other licensors of 9 Meters or its Affiliates with respect to Products sold under a compulsory license (or sublicense thereunder), or intellectual property rights related thereto, total aggregate royalties or similar amounts greater than the royalties actually received by 9 Meters and its Affiliates in connection with any such compulsory license (or sublicense thereunder).
(9)Adjustments Cumulative.  The adjustments set forth in this Section 5.7 are cumulative and shall not be limited in any respect except as explicitly set forth above.
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5.8    Royalty Term.  No payments shall be triggered under this Section 5 by any Payment Product as a result of any achievements thereby in a country or sales thereof in a country following the Royalty Term applicable thereto.
5.9    Payments and Payment Reports.  Except as provided in Sections 5.2, 5.3, 5.5, and 5.6, all royalties and payments due under this Section 5 shall be paid within ninety (90) days of the end of each Calendar Quarter during which Net Sales occur or the applicable sales milestone is achieved.  Each royalty payment shall be accompanied by a statement stating (as applicable) Net Sales, by country, of each Product sold during the relevant Calendar Quarter by 9 Meters, its Affiliates, and Sublicensees and calculating royalties and milestones due for such Calendar Quarter.
5.10    Payment Method.
(1)    General.  Subject to compliance with applicable laws and stock market rules, 9 Meters may, upon written notice given to EBRIS at least five (5) business days prior to any payment being due under Section 5.3, 5.4, 5.5, or 5.6, elect to pay all or up to eighty percent (80%) of such payment in the form of shares of 9 Meters’ unregistered common stock (such notice, the “Payment Method Notice”).  Except to the extent set forth in any Payment Method Notice from 9 Meters to EBRIS, all payments will be made in U.S. dollars. In no event shall the aggregate amount of common stock issued, or issuable, pursuant to the terms of this Agreement exceed the maximum amount permitted under Nasdaq rules without 9 Meters’ stockholder approval, and to the extent such stockholder approval is not obtained, any remaining amount of payments will be made in cash.
(2)    Share Payments. The portions of any payments due under this Agreement to EBRIS elected by 9 Meters to be paid in common stock will be calculated by dviding the applicable portion of the applicable payment due as set forth in Section 5.3, 5.4, 5.5, or 5.6, by the Fair Market Value calculated as of the date of the Payment Method Notice, and such shares of common stock will be issued promptly following EBRIS’s receipt of the Payment Method Notice and subsequent delivery by EBRIS to 9 Meters of a subscription agreement in the form of the attached hereto as Schedule 5.2(1), inclusive of any changes to the form of subscription agreement as may be reasonably requested in advance by 9 Meters. 
(3)    Cash Payments. All payments (or portion(s) thereof) due under this Agreement to EBRIS to be paid in cash by 9 Meters shall be made by bank wire transfer in immediately available funds to an account designated by EBRIS in writing.  All such payments hereunder shall be made in the legal currency of the United States of America.
5.11    Taxes.  The Parties agree to cooperate with one another and use reasonable efforts to reduce or eliminate tax withholding or similar obligations in respect of royalties and other payments made by 9 Meters to EBRIS under this Agreement. To the extent 9 Meters is required to deduct and withhold taxes on any payment to EBRIS, 9 Meters shall deduct any such amount from the amount payable to EBRIS, pay the amounts of such taxes to the proper governmental 
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authority in a timely manner, and promptly transmit to EBRIS an official tax certificate or other evidence of such withholding sufficient to enable EBRIS to claim such payment of taxes. EBRIS shall provide 9 Meters any tax forms that may be reasonably necessary in order for 9 Meters not to withhold tax or to withhold tax at a reduced rate under an applicable bilateral income tax treaty. Each Party shall provide the other with reasonable assistance to enable the recovery, as permitted by applicable laws, of withholding taxes, value added taxes, or similar obligations resulting from payments made under this Agreement, such recovery to be for the benefit of the Party bearing such withholding tax or value added tax. 9 Meters shall require its Affiliates and Sublicensees to cooperate with EBRIS in a manner consistent with this Section 5.11.
5.12    Interest.   All late payments under the Agreement shall bear interest at the rate of 30-day LIBOR for United States dollars as of the date such payment was due, taken from a widely accepted source of published interest rates, plus [*] ([*]) percentage points, or, if lower, the highest rate permitted by Applicable Law, until the date such payment is made
5.13    Records; Audits.  9 Meters shall keep such records as are reasonably required to determine, in a manner, with respect to any financial records, consistent with generally accepted accounting principles in the United States, the amounts due under this Agreement; such records must be kept for a minimum of three (3) years following the calendar year to which such records pertain.  At the request (and expense) of EBRIS, 9 Meters shall permit EBRIS to engage an independent certified public accounting firm reasonably acceptable to 9 Meters, at reasonable times not more than once a year and upon reasonable notice, to examine only those records as may be necessary to determine, with respect to any calendar year ending not more than three (3) years prior to EBRIS’ request, the correctness or completeness of any royalty report or payment made under this Agreement.  EBRIS shall promptly provide a copy of the results of any such audit or examination to 9 Meters.  EBRIS shall bear the full cost of the performance of any such audit or examination, unless such audit or examination discloses an underpayment exceeding the greater of (i) [*] percent ([*]%) of the amount actually due hereunder with respect to any particular Calendar Year or (ii) US$[*], in which case 9 Meters shall bear the reasonable, documented cost of the performance of such audit or examination.  9 Meters shall promptly pay to EBRIS the amount of any underpayment of royalties revealed by such an examination and review. Any overpayment by 9 Meters of royalties or any other amount paid to EBRIS revealed by an examination and review shall, in 9 Meters’ sole discretion, (i) be fully-creditable against future payments under this Agreement or (ii) refunded to 9 Meters within thirty (30) days of its request.  
6.    Patent Prosecution and Maintenance; Patent Marking.
6.1    EBRIS Patents other than Joint Patents. 
(1)    EBRIS shall, as between the Parties, control and the preparation, filing, prosecution, and maintenance of the EBRIS Patents that are not Joint Patents. 9 Meters shall be given reasonable opportunity to advise EBRIS in the filing, prosecution, maintenance, and defense of such EBRIS Patents. 9 Meters shall be provided with copies of all prosecution documents relating to such EBRIS Patents, so that 9 Meters will have a reasonable opportunity to offer comments and remarks on such EBRIS Patents, such comments and remarks to be given 
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due consideration by EBRIS.  EBRIS shall provide reasonable advance written notice to 9 Meters before abandoning any such EBRIS Patent, or any claim contained therein, Covering any Product.  The reasonable, documented external costs incurred following 9 Meters’ exercise of its Option with respect to the filing, prosecution, and maintenance of such  EBRIS Patents shall be borne by 9 Meters, subject to Sections 6.1(2) and 6.1(3) below. The EBRIS Patents Controlled by EBRIS as of the Effective Date are set forth in Exhibit F; Exhibit F may be updated periodically to reflect the further prosecution of EBRIS Patents, the addition of any EBRIS Patents coming under the Control of EBRIS after the Effective Date, and/or the effects of Section 6.1(2) or 6.1(3).
(2)    This Section 6.1(2) shall only apply upon 9 Meters’ exercise of the Option.  EBRIS will provide reasonable advance written notice of any required foreign patent filings and associated fees for any EBRIS Patents that are not Joint Patents.  9 Meters must thereafter inform EBRIS in writing which foreign countries, if any, in which 9 Meters desires patent protection.  EBRIS may elect to seek patent protection for the technology Covered by the EBRIS Patents that are not Joint Patents in countries not so designated by 9 Meters, in which case EBRIS shall be responsible for expenses attendant thereto as described in Section 6.1(3).  However, in such instances, such patent applications in such countries will not be 9 Meters Patents, Exhibit F shall be deemed to be so amended accordingly, if necessary, and 9 Meters forfeits all rights under this Agreement to such patent applications and resulting patents in such countries.
(3)    This Section 6.1(3) shall only apply upon 9 Meters’ exercise of the Option.  If 9 Meters provides EBRIS with written notification that it will no longer support the filing, prosecution, or maintenance of a specified patent(s) and/or patent application(s) within the EBRIS Patents that are not Joint Patents, then 9 Meters’ responsibility for fees and costs related to the filing, prosecution, and maintenance of such EBRIS Patents will terminate sixty (60) days after EBRIS’ receipt of such written notification.  However, in such instances, sixty (60) days after EBRIS’ receipt of written notification, such patents and/or patent applications will no longer be included in the EBRIS Patents (and Exhibit F shall be deemed to be so amended accordingly), and 9 Meters surrenders all rights under this Agreement to such patents, patent applications, and any patents issuing therefrom.
6.2    Joint Patents.    
(1)Prosecution.  The Parties shall use reasonable good faith efforts to agree in writing as soon as possible upon the conception or first reduction to practice of any invention within the Joint Know-How on which Party should be responsible for filing, Prosecuting and maintaining all Joint Patents with respect thereto (such Party, the “Responsible Party”) and how the costs of such filing, Prosecution, and maintenance shall be allocated between the Parties, provided that, following Licensor’s exercise of the Option, 9 Meters shall be the Responsible Party unless and until otherwise elected in writing by 9 Meters.  The Responsible Party will promptly inform the other Party of (i) the filing (including by supplying the other Party with a copy of the specification as filed and the filing receipt) and (ii) the grant of those Joint Patents for which it is responsible pursuant to the foregoing.
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(10)Liaising.  Each Party will be given reasonable opportunities to advise the Responsible Party with respect to the Patent Prosecution of any Joint Patents.  The Responsible Party will: (a) instruct any patent counsel responsible for Patent Prosecution of any of the Joint Patents for which it is responsible to furnish the other Party with copies of all material correspondence relating to such Patents from the United States Patent and Trademark Office and any foreign patent office, as well as copies of all proposed responses to such correspondence in time for the other Party to review and comment on such response; (b) give the other Party an opportunity to review the text of each patent application constituting a Joint Patent before filing; (c) reasonably consult with the other Party with respect thereto; (d) supply the other Party with a copy of any such application was filed, together with notice of its filing date and serial number; and (e) keep the other Party reasonably advised of the status of actual and prospective patent filings for the applicable Joint Patents.  Each Responsible Party shall give the other Party the reasonable opportunity to provide comments on and make requests of the Responsible Party concerning the preparation, filing, and Prosecution of the Joint Patents for which such Responsible Party is responsible, and shall reasonably consider such comments and requests, including with due consideration of such cost/benefit analysis as the other Party may reasonably provide or suggest.
(11)Abandonment.  The Responsible Party shall not stop Patent Prosecution or maintenance with respect to any Joint Patent for which it is responsible (“Joint Abandonment”) unless it first gives the other Party prior written notice of such Joint Abandonment, which notice shall (1) specify the specific Joint Patent(s) subject to such Joint Abandonment and (2) be given at least sixty (60) days prior to any fee, abandonment, or similar deadlines relating to such Joint Patent(s). If a Responsible Party provides the other Party with such a notification of Joint Abandonment, then the other Party shall have the right, upon written notice to the Responsible Party given during such sixty (60) day period, to assume control of Patent Prosecution with respect to such Joint Patents, in which case such Joint Patent shall remain subject to all of the applicable terms of this Agreement with respect thereto.
(12)Cooperation; Costs and Expenses.  The Company shall cooperate (and cause its Affiliates to cooperate) with Lilly as reasonably requested thereby with respect to the preparation, filing, Prosecution, maintenance, and defense of the Lilly Control Patents, at Lilly’s expense.  Lilly shall cooperate (and cause its Affiliates to cooperate) with Company as reasonably requested thereby with respect to the preparation, filing, Prosecution, maintenance, and defense of the Company Control Patents, at Company’s expense.  The Company shall be responsible for all costs and expenses associated with its and its Affiliates’ filing, Prosecution and maintenance of all Company Control Patents and Lilly shall be responsible for all costs and expenses associated with its and its Affiliates’ filing, Prosecution and maintenance of all Lilly Control Patents
6.3    Patent Term Extensions.  This Section 6.3 shall only apply upon 9 Meters’ exercise of the Option.  9 Meters shall promptly notify EBRIS of the issuance of each Regulatory Approval and, if and as requested by 9 Meters in writing, EBRIS shall apply or enable 9 Meters to apply for a patent term extension, adjustment or restoration, supplementary protection certificate, or other form of market exclusivity conferred by applicable laws, rules, regulations, or guidelines (collectively, “Patent Term Extensions”) in the relevant country of the Territory.  
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EBRIS shall use Commercially Reasonable Efforts to, if and as requested by 9 Meters, obtain (or assist 9 Meters in obtaining) all available Patent Term Extensions.
6.4    Patent Marking.  To an extent reasonably possible, given the nature of the products that are subject to this Agreement, 9 Meters shall, and shall use Commercially Reasonable Efforts to ensure that Sublicensees and 9 Meters’ Affiliates, permanently and legibly mark all Products and related documentation manufactured for commercial sale in the United States under this Agreement with a patent notice as may be permitted or required under Title 35, United States Code.  Further, and without limitation of the foregoing, to the extent permitted by applicable laws and regulations, EBRIS shall mark, and shall use Commercially Reasonable Efforts to cause any Affiliate or Sublicensee to mark, Products (through a marking on containers, packaging or labels) made, sold, or otherwise disposed of by it or them with any notice of patent rights reasonably necessary, in any country where Products are sold, to (i) enable EBRIS Patents (to the extent relating to Products or their use or manufacture) to be enforced to their full extent or (ii) ensure the availability of all potential legal or equitable remedies with respect to any infringement of any EBRIS Patents (to the extent relating to Products or their use or manufacture).
7.Patent Infringement.
2.7Notice.  If either Party becomes aware of any actual, potential, or alleged infringement of (i) any of the rights to EBRIS Patents granted to 9 Meters under this Agreement with respect to Products or (ii) Joint Patents, such Party shall give to the other Party prompt and reasonably detailed written notice of such actual, potential, or alleged infringement. 
2.8Hatch-Waxman Act Litigation.  Notwithstanding anything herein to the contrary, should a Party or an Affiliate thereof receive, with respect to any EBRIS Patent or Joint Patent, a certification for a Product pursuant to the Drug Price Competition and Patent Term Restoration Act of 1984 (Public Law 98-417), as amended (the “Hatch-Waxman Act”), or its equivalent in a country other than the United States of America, then such Party shall immediately provide the other Party with a copy of such certification.  The Party with the right to bring suit under the Hatch-Waxman Act on account of such certification shall have fifteen (15) business days from the date on which it receives or provides a copy of such certification to provide written notice to the other Party (“H-W Suit Notice”) stating whether it will bring suit, at its expense, within a thirty (30) day period from the date of such certification.  Should such fifteen (15) business day period expire without the applicable Party providing such H-W Suit Notice, or such thirty (30) day period without such Party bringing such suit, then the other Party shall be free immediately to bring suit in its name, provided that, notwithstanding the foregoing, following 9 Meters’ exercise of the Option, (i) EBRIS’ rights to bring any suit under this Section 7.2 with respect to any EBRIS Patents shall be subject to 9 Meters’ prior written consent and (ii) EBRIS shall not take any action in the course of exercising its rights under this Section 7.2 that materially limits the scope, validity, or enforceability of, or otherwise may adversely effect, any EBRIS Patents.
2.9EBRIS Patents Other than Joint Patents.  This Section 7.3 shall, notwithstanding anything to the contrary, only become effective if and when 9 Meters exercises 
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the Option.  With respect to any actual, potential, or alleged infringement of the rights to EBRIS Patents granted under this Agreement, 9 Meters shall have the exclusive first right, but not the obligation, to, initiate, prosecute, and control any action or legal proceedings, and/or enter into a settlement, including any declaratory judgment action, with respect to such alleged infringement. EBRIS shall have the right, at its cost and expense, to participate in any such action and to be represented by counsel of its own choice.  If, within six (6) months of the notice above of any such infringement, 9 Meters (i) shall have been unsuccessful in persuading the alleged infringer to desist, (ii) shall not have brought and shall not be diligently prosecuting an infringement action, and (iii) has not entered into settlement discussions with respect to such infringement, or if 9 Meters notifies EBRIS that it has decided not to undertake any of the foregoing against any such alleged infringer, then EBRIS shall then have the right to bring suit to enforce such EBRIS Patents at its own expense.  In any such litigation brought by 9 Meters, 9 Meters shall have the right to use and sue in EBRIS’ name and join EBRIS as a party to such litigation, and EBRIS shall cooperate reasonably, as requested by 9 Meters and at 9 Meters’ expense (which expense shall be reasonable).
2.10Joint Patents.  With respect to any actual, potential, or alleged infringement of any Joint Patents, 9 Meters shall have the exclusive first right, but not the obligation, to, initiate, prosecute, and control any action or legal proceedings, and/or enter into a settlement, including any declaratory judgment action, with respect to such alleged infringement. EBRIS shall have the right, at its cost and expense, to participate in any such action and to be represented by counsel of its own choice.  If, within six (6) months of the notice above of any such infringement, 9 Meters (i) shall have been unsuccessful in persuading the alleged infringer to desist, (ii) shall not have brought and shall not be diligently prosecuting an infringement action, and (iii) has not entered into settlement discussions with respect to such infringement, or if 9 Meters notifies EBRIS that it has decided not to undertake any of the foregoing against any such alleged infringer, then EBRIS shall then have the right to bring suit to enforce such Joint Patents at its own expense.  In any such litigation brought by 9 Meters, 9 Meters shall have the right to use and sue in EBRIS’ name and join EBRIS as a party to such litigation, and EBRIS shall cooperate reasonably, as requested by 9 Meters and at 9 Meters’ expense (which expense shall be reasonable).
2.11Infringement of Third Party Rights.  In the event that a claim of infringement of a Third Party’s Patents is made or brought against either Party with respect to the manufacture, use, sale, or importation of any Product, the Party receiving such claim shall promptly inform the other Party in writing, and the Parties shall consult with each other in order to develop a strategy for addressing the alleged infringement. Each Party shall reasonably cooperate with the other in any investigations undertaken to determine any potential infringement.  As between the Parties, 9 Meters shall have the first and primary right at its own expense to defend, control the defense of, and/or settle any such claim against 9 Meters, its Affiliates, or Sublicensees, using counsel of its own choice, provided however that, in the course of such defense or settlement (or negotiations related thereto), 9 Meters shall not take any action that would reasonably be anticipated to materially and adversely affect any EBRIS Patent(s) or the enforceability or validity of any claim contained therein without, in each case, EBRIS’s prior written consent.
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2.12Litigation Control.  The Party pursuing or controlling any action or defense under Section 7.2, 7.3, 7.4 or 7.5 (the “Controlling Party”) shall be free to enter into a settlement, consent judgment, or other voluntary disposition of any such action or defense, provided, however, that (i) the Controlling Party shall provide the other Party (the “Secondary Party”) a reasonable opportunity to consult with the Controlling Party with respect thereto prior to entering into any settlement or voluntary disposition thereof, (ii) any settlement, consent judgment or other voluntary disposition of such actions which (1) subjects the Secondary Party to any non-indemnified liability or obligation or (2) admits fault or wrongdoing on the part of Secondary Party must, in each case, be approved in writing by Secondary Party, and (iii) any settlement, consent judgment or other voluntary disposition of such actions which materially and adversely affects any EBRIS Patents or Joint Patents shall not be entered into, consented to, approved, or agreed upon without the Secondary Party’s prior written approval.  With respect to clause (ii) above, the Secondary Party shall provide the Controlling Party notice of its approval or denial of such approval within fifteen (15) business days of any request for such approval by the Controlling Party, provided that (X) in the event Secondary Party wishes to deny such approval, such notice shall include a written description of Secondary Party’s reasonable objections to the proposed settlement, consent judgment, or other voluntary disposition and (Y) Secondary Party shall be deemed to have approved such proposed settlement, consent judgment, or other voluntary disposition in the event it fails to provide such notice within such fifteen (15) business day period. Notwithstanding anything to the contrary, the Secondary Party, at its expense, shall have the right, at its cost and expense, to be represented by counsel of its choice in any proceeding governed by this Section 7.6. Any recovery or damages received by the Controlling Party with respect to the infringement of any rights to EBRIS Patents granted to 9 Meters under this Agreement or infringement of the Joint Patents generally shall be used first to reimburse the Parties for unreimbursed reasonable, documented expenses incurred in connection with such action; the remainder of such recovery or damages shall be split as follows:
(13)if 9 Meters exercises the Option, then, in the case of an infringement of the rights to the EBRIS Patents (including EBRIS’ interest in any Joint Patents) granted under Section 2.4, [*] percent ([*]%) of such recovery or damages shall be retained by the Controlling Party and [*] percent ([*]%) shall be paid to Secondary Party;
(14)any such remaining recovery or damages received by the Controlling Party with respect to any other infringement of the EBRIS Patents (other than the Joint Patents) shall be retained by or paid to EBRIS; and
(15)any such remaining recovery or damages received by the Controlling Party with respect to any infringement of the Joint Patents, other than an infringement of the rights thereto granted to 9 Meters under Section 2.4, shall be split [*] percent ([*]%) to the Controlling Party and [*] percent ([*]%) to the Secondary Party.
2.1Reimbursement.  Each Party shall invoice the other Party for any reasonable, documented costs incurred that are to be borne by the other Party pursuant to this Section 7.  Each Party shall pay the other Party such amounts within thirty (30) days of its receipt of any such invoice, except to the extent such amounts are the subject of a good faith dispute, in which 
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the amounts subject to such dispute shall be due within thirty (30) days of the resolution of such dispute.
2.2Trademarks.  9 Meters may, in its sole discretion, select trademarks for the Products (“Product Marks”) and shall own all such trademarks.  To the extent 9 Meters pursues trademarks for Products, as between the parties, 9 Meters shall have the sole responsibility for the filing, prosecution and maintenance of registrations of trademarks for Products, at its sole expense.
8.Confidentiality
8.1Confidentiality Obligations.  The Parties agree that, for the Term and for five (5) years thereafter, each Party will keep completely confidential and will not publish, submit for publication or otherwise disclose, and will not use for any purpose except for the purposes contemplated by this Agreement, any Confidential Information of the other Party.  
8.2Authorized Disclosure.  Each Party may disclose Confidential Information of the other Party to the extent that such disclosure is:
(a)made in response to a valid order of a court of competent jurisdiction; provided, however, that in each case such disclosing Party will, to the extent reasonably practicable, (i) first have given written notice to the other Party and given such other Party a reasonable opportunity to take appropriate action and (ii) cooperate with such other Party as necessary to obtain an appropriate protective order or other protective remedy or treatment; provided, further, that in each case, the Confidential Information disclosed in response to such court or governmental order will be limited to that information which is legally required to be disclosed in response to such court or governmental order, as determined in good faith by counsel to the Party that is obligated to disclose Confidential Information pursuant to such order;
(b)otherwise required to be disclosed by law or regulation or the requirements of any stock exchange to which a Party is subject; provided, however, that the Party that is so required will provide such other Party with written notice of such disclosure reasonably in advance thereof to the extent reasonably practicable and reasonable measures will be taken to assure confidential treatment of such information, including such measures as may be reasonably requested by the disclosing Party with respect to such Confidential Information;
(c)made by such Party, in connection with the performance of this Agreement, to such Party’s Affiliates, sublicensees, directors, officers, employees, consultants, representatives or agents, or to other Third Parties, in each case on a need to know basis and solely to use such information for business purposes relevant to and permitted by this Agreement, and provided that (i) each individual and entity to whom such Confidential Information is disclosed is bound in writing to non-use and non-disclosure obligations at least as restrictive as those set forth in this Agreement and (ii) the Party making such disclosure shall be liable for such Third Parties’ compliance with such obligations; or
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(d)made by such Party to existing or potential acquirers, existing or potential collaborators, investment bankers, accountants, attorneys, existing or potential investors, merger candidates, partners, venture capital firms or other financial institutions or investors for use of such information for business purposes relevant to this Agreement or for due diligence in connection with the financing, licensing or acquisition of such Party (or such Party’s acquisition of, or merger with, a Third Party), and provided that (i) each individual and entity to whom such Confidential Information is disclosed is bound in writing to non-use and non-disclosure obligations (or in the case of attorneys, an equivalent professional duty of confidentiality) at least as restrictive as those set forth in this Agreement and (ii) the Party making such disclosure shall be liable for such Third Parties’ compliance with such obligations.
9 Meters shall also be entitled to disclose in confidence this Agreement and any Confidential Information of EBRIS to Alba as necessary to comply with 9 Meters’ obligations under the Alba License.
8.3Publicity.  Press releases or other similar public communication by either Party not required by law, regulation, or the requirements of any stock exchange to which a Party is subject and disclosing the existence or terms of this Agreement, or concerning either Party’s performance or exercise of its rights under this Agreement, will require the advance written approval of the other Party, which approval will not be unreasonably withheld, conditioned or delayed.  The foregoing notwithstanding, communications required by applicable law, regulation, or the requirements of any stock exchange to which a Party is subject, and disclosures of information for which consent has previously been obtained, will not require advance approval, but will be provided to the other Party as soon as practicable after the release or communication thereof, provided that, with respect to any such communications required by applicable law or the requirements of any stock exchange to which a Party is subject, the Party required to make such disclosure shall, to the extent reasonable practicable and such disclosure does not include information for which consent has previously been obtained, provide the other Party a reasonable opportunity to review and comment on such communications.  
8.4Publications.  Subject to this Section 8.4, each Party shall have the right to publish, present or otherwise disclose, including in scientific journals or promotional literature, information pertaining to EBRIS Technology or any Product; provided, however, that:
(1) if 9 Meters, any Affiliate thereof, or any Sublicensee desires to publish or present any such information, then the following procedure shall apply: (i) 9 Meters shall first provide a copy of the proposed publication or presentation to EBRIS for review and comment for a period not to exceed thirty (30) days in advance of any submission for publication or presentation (the “Review Period”); (ii) if during the Review Period 9 Meters receives written notice from EBRIS identifying specific Confidential Information of EBRIS in such a proposed publication or presentation, then, at the request of EBRIS in such notice and at EBRIS’s option, 9 Meters shall, and 9 Meters shall ensure that its Affiliates and Sublicensees, delete such Confidential Information from the proposed publication and/or delay such publication or presentation for an additional sixty (60) days in order to permit EBRIS to file a patent application covering such Confidential Information; and
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(2)if EBRIS or any Affiliate thereof desires to publish or present any such information pertaining to any Product, then EBRIS shall first provide a copy of the proposed publication or presentation to 9 Meters for review and approval for a period not to exceed thirty (30) days in advance of any submission for publication or presentation, such approval not to be unreasonably withheld, provided that the foregoing shall not, in any event, limit EBRIS’s ability to file for and obtain patent protection for any inventions described or enabled in such proposed publication or presentation.
9.Term and Termination
9.1Term.  This Agreement shall become effective on the Effective Date and, subject to any earlier termination pursuant to Section 9.2, 9.3, 9.4, 9.5, or 9.6, shall continue until (a) if 9 Meters does not exercise the Option prior to the Option Expiration Date, the Option Expiration Date or (b) if 9 Meters does exercise the Option prior to the Option Expiration Date, on a Product-by-Product and country-by-country basis, expiration of the Royalty Term applicable to each Product in each country (the “Term”).  Upon expiration of this Agreement with respect to a particular Product in a particular country, EBRIS and its Affiliates shall have the perpetual, unrestricted, fully-paid, royalty-free right, with rights of sublicense, to make, have made, use, sell, offer for sale, and import in such country such Products.
9.2Termination for Material Breach.  If either Party materially breaches this Agreement at any time, the non-breaching Party shall have the right to terminate this Agreement by written notice to the breaching Party, if such material breach is not cured within [*] ([*]) days after written notice is given by the non-breaching Party to the breaching Party specifying the material breach.
9.3Termination for Financial Insecurity.   In the event that either Party files for protection under bankruptcy laws, makes an assignment for the benefit of creditors, appoints or suffers appointment of a receiver or trustee over its property, files a petition under any bankruptcy or insolvency act or has any such petition filed against it which is not discharged within [*] ([*]) days of the filing thereof, then the other Party may terminate this Agreement effective immediately upon written notice to such Party.
9.4Termination for Health or Safety.  Either Party may terminate this Agreement prior to the Option Expiration Date upon written notice to the other Party if and as necessary to, as reasonably determined in good faith by such Party, protect the health or safety of subjects or patients participating in the US Trial or EU Trial.
9.5Termination for Convenience by 9 Meters.  Following the Option Expiration Date, this Agreement may be terminated by 9 Meters, in its sole discretion, upon [*] ([*]) [*] written notice to 9 Meters.
9.6Termination of Alba License.  If the Alba License terminates during the Development Term, and 9 Meters or an Affiliate thereof does not obtain, upon or prior to such termination, sufficient rights in the Alba Patents and Alba Know-How to enable the rights granted to EBRIS under this Agreement with respect thereto to continue following such 
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termination, this Agreement will automatically terminate upon such termination and 9 Meters will promptly notify EBRIS thereof in writing.
9.7Effects of Termination. 
(3)Upon any termination (but not expiration) of this Agreement, all licenses granted under this Agreement shall, except to the extent surviving pursuant to Section 9.8 below, terminate.
(4)Notwithstanding any provision herein to the contrary, in the event (A) 9 Meters has exercised the Option, and 9 Meters or an Affiliate thereof has entered into any sublicense agreement granting any Third Party rights under EBRIS Technology to Develop and/or Commercialize Products as permitted by this Agreement (but which agreement must, in any event, include rights for such Third Party to Commercialize Products), (B) this Agreement is terminated by 9 Meters pursuant to Section 9.2, 9.3, 9.4, 9.5, or 9.6 and (C) the applicable sublicensee is not in material breach of such sublicense, (i) such sublicense (including any rights to payment thereunder to the extent reasonably attributable to the rights to EBRIS Technology granted thereunder) shall, to the extent concerning the EBRIS Technology, not imposing obligations on EBRIS in excess of those contained in this Agreement, and provided for in such sublicense, be automatically assigned to EBRIS and (ii) EBRIS shall grant such Third Party the rights granted with respect to EBRIS Technology under the assigned sublicense, subject to such Third Party’s compliance with its terms.  Language to the effect of the foregoing shall be included in any sublicense granted under this Agreement that provides for the survival rights contemplated by this Section 9.7(2).
(5)Any rights or remedies set forth in this Section 9 are not exclusive, and shall not limit any other legal or equitable remedies that are available to the Parties
9.1Survival. Termination or expiration of this Agreement for any reason will be without prejudice to any rights that will have accrued to the benefit of any Party prior to such termination or expiration.   The following provisions shall survive any expiration or termination of this Agreement: 1, 2.4(1), 2.6, 3.5, 5.10, 5.11, 5.12, 5.13 (for the period(s) set forth therein), 8, 9.7, 9.8, 10.3, 11, 12, and 13, together with any Sections referenced in such surviving provisions or necessary to give them effect.
10.Representations and Warranties
10.1Representations, Warranties, and Covenants of 9 Meters.  9 Meters represents and warrants to EBRIS as follows as of the Effective Date:
(1)9 Meters is a corporation, duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation, with full corporate power and authority to operate its properties and to carry on its business as presently conducted.  
(2)9 Meters has full power and authority to execute, deliver and perform this Agreement.  There are no liens or other encumbrances on the 9 Meters Technology or any part 
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thereof which would interfere with the rights granted to EBRIS hereunder.  This Agreement constitutes the legally binding and valid obligation of 9 Meters, enforceable in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, moratorium and other laws affecting creditors’ rights generally.  
(3)The execution, delivery and performance by 9 Meters of this Agreement and the consummation of the transactions contemplated hereby will not result in any violation of, conflict with, result in a breach of or constitute a default under any contract or agreement to which 9 Meters is a party.
9 Meters shall not terminate the Alba License during the Development Term and shall use Commercially Reasonable Efforts to comply with the Alba License during the Development Term.
10.2Representations and Warranties of EBRIS.  EBRIS represents and warrants to 9 Meters as follows:
(4)EBRIS is a corporation, duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation, with full corporate power and authority to operate its properties and to carry on its business as presently conducted.  
(5)EBRIS has full power and authority to execute, deliver and perform this Agreement.  This Agreement constitutes the legally binding and valid obligations of EBRIS, enforceable in accordance with their terms, except as such enforcement may be limited by applicable bankruptcy, moratorium and other laws affecting creditors’ rights generally.
(6)The execution, delivery and performance by EBRIS of this Agreement and the consummation of the transactions contemplated thereby will not result in any violation of, conflict with, result in a breach of or constitute a default under any contract or agreement material to EBRIS, its business or its assets.
(7)No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority on the part of EBRIS is required in connection with the execution, delivery and performance of this Agreement.
(8)There is no action, suit, proceeding or investigation pending or, to EBRIS’ knowledge, currently threatened against or affecting EBRIS or that questions the validity of this Agreement, or the right of EBRIS to enter into this Agreement or consummate the transactions contemplated hereby and to EBRIS’ knowledge, there is no basis for the foregoing.
(9)Neither EBRIS nor any Affiliate thereof is aware of any Third Party intellectual property rights (including any Patent(s)) that would be infringed or misappropriated by the performance of the Development Program.
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1.1  Disclaimer. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS AGREEMENT, INCLUDING SECTIONS 10.1 AND 10.2, AS APPLICABLE, THE PARTIES MAKE NO REPRESENTATIONS AND GRANT NO WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND THE PARTIES EACH SPECIFICALLY DISCLAIM ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE, OR AS TO THE SUCCESS OR LIKELIHOOD OF SUCCESS OF THE RESEARCH, DEVELOPMENT OR COMMERCIALIZATION OF THE COMPOUND OR PRODUCT UNDER THIS AGREEMENT.
11.Indemnities; Limits on Liability 
11.1Indemnification by 9 Meters.  Subject to Section 11.3, 9 Meters hereby agrees to defend, indemnify and hold harmless EBRIS and its Affiliates and each of their directors, officers, employees and agents (“EBRIS Indemnitees”) from and against all suits, claims, proceedings or causes of action brought by Third Parties (“Claims”), and all associated damages, liabilities, expenses and/or loss, including reasonable legal expenses and reasonable attorneys’ fees (“Losses”), to the extent arising out of 9 Meters’ (i) gross negligence or willful misconduct, (ii) failure to comply with any applicable law, rule, or regulation, or (iii) 9 Meters’ exercise of the rights granted under Section 2.4, except to the extent resulting from the gross negligence or willful misconduct, breach of this Agreement, failure to comply with applicable laws, rules, or regulations, or Development, Commercialization, manufacture, use, import, export, or sale of any Product by, in each case, EBRIS, any Affiliates thereof, or any of EBRIS’ or its Affiliates’, officers, directors, employees, contractors, agents, other representatives, successors, or assigns (collectively, “EBRIS Representatives”).
11.2Indemnification by EBRIS.  Subject to Section 11.3, EBRIS hereby agrees to indemnify, defend and hold 9 Meters, its Affiliates, and 9 Meters’ and its Affiliates’ officers, directors, employees, contractors, agents, other representatives, successors, and assigns (collectively, “9 Meters Indemnitees”) harmless from and against any Claims brought by a Third Party against any 9 Meters Indemnitee(s), and any associated Losses, resulting from (I) EBRIS’, its Affiliates’, or any EBRIS Representative’s (i) gross negligence or willful misconduct, (ii) breach of this Agreement, (iii) failure to comply with applicable laws, rules, or regulations, or (iv) Development, Commercialization, manufacture, use, import, export, or sale of any Product, except to the extent such Losses result from 9 Meters’ (A) gross negligence or willful misconduct, (B) breach of this Agreement, or (C) failure to comply with any applicable laws, rules, or regulations.
11.3Indemnification Procedures.  Each Party’s agreement to indemnify, defend, and hold harmless under Section 11.1 or 11.2, as applicable, is conditioned upon the indemnified party (a) providing written notice to the indemnifying Party of any claim, demand or action arising out of the indemnified matter as soon as reasonably possible, and in any event no later than within [*] ([*]) days after the indemnified Party has actual knowledge of such claim, demand or action, (b) permitting the indemnifying Party to assume control over the investigation of, preparation and defense against, and settlement or voluntary disposition of any such claim, 
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demand or action, (c) assisting the indemnifying Party, at the indemnifying Party’s reasonable expense, in the investigation, preparation, defense, and settlement or voluntary disposition of any such claim, demand or action, and (d) not compromising, settling, or entering into any voluntary disposition of any such claim, demand or action without the indemnifying Party’s prior written consent, which consent shall not be unreasonably withheld; provided, however, that, if the party entitled to indemnification fails to promptly notify the indemnifying Party pursuant to the foregoing clause (a), the indemnifying Party will only be relieved of its indemnification obligation to the extent materially prejudiced by such failure.  In no event may the indemnifying Party compromise, settle, or enter into any voluntary disposition of any claim, demand or action in any manner that admits material fault or wrongdoing on the part of the indemnified party or incurs non-indemnified liability on the part of the indemnified party without the prior written consent of the indemnified party, and in no event may the indemnifying Party settle, compromise, or agree to any voluntary disposition of any matter subject to indemnification hereunder in any manner which may materially and adversely affect any portion of the EBRIS Patents, or 9 Meters’ ability to exploit 9 Meters Technology, without 9 Meters’ prior written consent.
11.4Indemnification of Alba.  EBRIS will defend, indemnify, and hold harmless Alba, its Affiliates, and its and their officers, directors, employees, consultants, contractors, agents, and representatives, and their successors and assigns (each individually an “Alba Party” and all, collectively “Alba Parties”), against any and all claims, costs or liabilities, including attorney’s fees and court costs at trial and appellate levels, for any loss, damage, personal injury, or loss of life: 
(i)caused by the actions of EBRIS, its Affiliates, or its or their sublicensees, or their officers, servants, or agents, or Third Parties acting on behalf of or under authorization from EBRIS, its Affiliates or its or their sublicensees, in the performance of this Agreement;
(ii)arising out of use of Alba Patents by EBRIS, its Affiliates, or its or their sublicensees or their officers, servants, or agents, or by any Third Party acting on behalf of or under authorization from EBRIS, its Affiliates, or its or their sublicensees; or 
(iii)arising out of use by a Third Party of products, processes, or protocols  developed either by EBRIS, its Affiliates, or its or their sublicensees or their officers, servants, or agents, or by Third Parties acting on behalf of or under authorization from EBRIS, its Affiliates or its or their sublicensees, using Alba Patents licensed hereunder, provided such use was consistent with any instructions, protocols or supervision provided by EBRIS.
EBRIS’ agreement to defend, indemnify and hold harmless an Alba Party is conditioned upon (1) Alba or 9 Meters promptly notifying EBRIS  in writing after it receives notice of a claim subject to indemnification under this Section 11.4 and (2) the Alba Party seeking indemnification 
cooperating with EBRIS in the defense of such claim.  EBRIS’ agreement to defend, indemnify and hold harmless an Alba Party will not apply to any claim, cost, or liability attributable to the negligent act or willful misconduct of the Alba Party.

    33

11.5Limitation of Liability.  IN NO EVENT SHALL EITHER PARTY OR ITS AFFILIATES BE LIABLE TO THE OTHER PARTY OR ANY AFFILIATE THEREOF FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES, OR LOST PROFITS, BUSINESS, OPPORTUNITY, OR GOODWILL, WHETHER BASED UPON A CLAIM OR ACTION OF CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT, OR OTHERWISE, ARISING OUT OF THIS AGREEMENT, PROVIDED THAT, NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE FOREGOING SHALL NOT BE CONSTRUED TO LIMIT THE INDEMNITY OBLIGATIONS SET FORTH IN SECTIONS 11.1, 11.2, 11.3, AND 11.4 ABOVE OR EITHER PARTY’S LIABILITY FOR PATENT INFRINGEMENT OR BREACH OF ARTICLE 8.
11.6Insurance.  EBRIS shall carry and maintain comprehensive liability insurance coverage for itself, its officers, employees and agents, in the minimum amounts of $[*] per claim and $[*] aggregate (inclusive of umbrella coverage), applicable to bodily injury and property damage. Prior to the initiation of any human trials in any geographical location with any Product hereunder, EBRIS will establish and maintain Product & Clinical Trials Liability insurance coverage in the amount of $[*] per claim and $[*] aggregate. EBRIS warrants that its liability insurance will cover contractually assumed obligation for product liability claims referred to in Section 11.2 or 11.4, when/if human clinical trials are commenced. A certificate evidencing the required insurance coverage will be delivered to 9 Meters: (i) at or before execution of this Agreement; (ii) each time there is a change in EBRIS’ insurance coverage; and (iii) each time EBRIS’ insurance coverage is renewed. EBRIS agrees to require its insurance carrier(s) to notify 9 Meters within 15 days prior to cancellation of EBRIS’ insurance coverage, except in the case of cancellation for nonpayment of premium, where 10 days advance notice will be provided. If EBRIS does not secure liability insurance written on an occurrence basis, but instead secures liability insurance written on a claims-made basis, EBRIS warrants that it will purchase extending reported coverage or otherwise provide insurance satisfying its obligations hereunder for a period of not less than three years following termination of this Agreement.
12.Dispute Resolution.    In the event that a dispute arises between the Parties in the course of this Agreement, the dispute will be referred to the attention of the highest ranking executive officer of 9 Meters and the highest ranking executive officer of EBRIS or their designees (the “Executive Officers”).  The Executive Officers will meet as soon as reasonably possible thereafter and in good faith attempt to resolve such dispute.  If, within [*] ([*]) days after referral of such dispute to the Executive Officers by either Party, the Executive Officers are unable to resolve such dispute, either Party will have the right to have the dispute resolved by binding arbitration, initiated by either Party on [*] ([*]) business days notice to the other Party following the expiration of the [*] ([*]) day period referenced above (the “Initiation Notice”), under the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) then pertaining (available at www.adr.org), except where those rules conflict with this provision, in which case this provision controls, applying the laws of the State of New York, without regards to its conflicts of law provisions, before three (3) independent, neutral arbitrators experienced in the pharmaceutical industry and licensing transactions in such industry.  The place of arbitration shall be New York, New York.  9 Meters and EBRIS shall each be entitled to select one (1) such arbitrator, with the two (2) such arbitrators so selected selecting the third (3rd) such arbitrator.  In 
    34

the event either Party fails to select its arbitrator within [*] ([*]) business days of the Initiation Notice, the arbitrator selected by the other Party within such [*] ([*]) business day period shall be entitled to select such arbitrator.  The arbitration shall be conducted in English.  The decision of the arbitrators will be final and binding on the Parties, and any decision of the arbitrators may be enforced in any court of competent jurisdiction.  Each Party shall bear its own expenses and an equal share of the reasonable, documented expenses of the arbitration panel and any fees required by AAA to submit such matter to arbitration, unless the panel determines that any such fees or expenses are to be paid by the non-prevailing Party.  Notwithstanding the foregoing, either Party may seek injunctive, equitable, or similar relief from a court of competent jurisdiction in accordance with Section 13.6 as necessary to enforce its rights hereunder without the requirement of arbitration
13.Miscellaneous 
13.1Force Majeure.  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, to the extent, and for so long as, such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party, including fire, floods, embargoes, power shortage or failure, acts of war (whether war be declared or not), insurrections, riots, terrorism, civil commotions, strikes, lockouts or other labor disturbances, acts of God or any acts, omissions or delays in acting by any governmental authority or the other Party, provided that, notwithstanding the foregoing, the payment of amounts due under this Agreement may not be delayed due to a force majeure affecting the Party required to make such payment.
13.2Assignment/Change of Control.  Each Party may assign or transfer this Agreement: (a) without the consent of the other Party, (i) to an Affiliate of the assigning Party or (ii) in connection with the transfer or sale of all or substantially all of the assigning Party’s assets or business (or that portion thereof related, in either case, to this Agreement), or in the event of the assigning Party’s merger or consolidation, change in control, or similar transaction; and (b) in any other circumstance, only with the prior written consent of the other Party, such consent not to be unreasonably withheld. Any permitted assignee of either Party shall, as a condition to such assignment, assume all obligations of its assignor arising under this Agreement following such assignment.  Any purported assignment by a Party of this Agreement in violation of this Section 13.2 shall be null and void.  
13.3Severability.  If one or more provisions of this Agreement is held to be invalid, illegal or unenforceable, the Parties shall substitute, by mutual consent, valid provisions for such invalid, illegal or unenforceable provisions which valid provisions are, in their economic effect, sufficiently similar to the invalid provisions that it can be reasonably assumed that the Parties would have entered into this Agreement with such provisions.  In the event that such provisions cannot be agreed upon, the invalidity, illegality or unenforceability of one or more provisions of the Agreement shall not affect the validity of this Agreement as a whole.
13.4Notices.  Any notice, consent or report required or permitted to be given or made under this Agreement by one Party to the other Party shall be in English and in writing, delivered 
    35

personally or by U.S. first class mail or express courier providing evidence of receipt, postage prepaid (where applicable), at the following address for a Party (or such other address for a Party as may be specified by like notice):
If to 9 Meters:        [*]

With a copy (which shall not constitute notice) to:

[*]

If to EBRIS:        [*]

With a copy (which shall not constitute notice) to:

                    [*]

All such notices, consents or reports shall be effective upon receipt.

13.5Applicable Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflicts of law principles that would provide for application of the law of a jurisdiction other than the State of New York and excluding the United Nations Convention on Contracts for the International Sales of Goods.
13.6 Jurisdiction.  Each Party (a) irrevocably submits to the exclusive jurisdiction in the United States District Court for the Southern District of New York and any state courts sitting in New York, New York (collectively, the “Courts”), for purposes of any action, suit or other proceeding arising out of this Agreement, and (b) agrees not to raise any objection at any time to the laying or maintaining of the venue of any such action, suit or proceeding in any of the Courts, irrevocably waives any claim that such action, suit or other proceeding has been brought in an inconvenient forum and further irrevocably waives the right to object, with respect to such action, suit or other proceeding, that such Court does not have any jurisdiction over such Party.
13.7Entire Agreement.  This Agreement (including the Exhibits attached hereto) contains the entire agreement by the Parties with respect to the subject matter hereof and supersedes any prior express or implied agreements, understandings and representations, either oral or written, which may have related to the subject matter hereof in any way.  
13.8Interpretation.  The captions to the several Articles and Sections of this Agreement are not a part of this Agreement, but are included for convenience of reference and shall not affect its meaning or interpretation.  In this Agreement: (a) the word “including” shall be deemed to be followed by the phrase “without limitation”, “including but not limited to”, or like expression; (b) the singular shall include the plural and vice versa; and (c) masculine, feminine and neuter pronouns and expressions shall be interchangeable. 
    36

13.9Independent Contractors.  It is expressly agreed that EBRIS and 9 Meters shall be independent contractors and that the relationship between the two Parties shall not constitute a partnership, joint venture or agency or other fiduciary relationship.  Neither EBRIS nor 9 Meters shall have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other Party, without the prior written consent of the other Party to do so.
13.10Waiver; Amendment.  Except as otherwise expressly provided in this Agreement, any term of this Agreement may be waived only by a written instrument executed by a duly authorized representative of the Party waiving compliance.  The delay or failure of any Party at any time to require performance of any provision of this Agreement shall in no manner affect such Party’s rights at a later time to enforce the same.  This Agreement may be amended, and any term of this Agreement may be modified, only by a written instrument executed by a duly authorized representative of each Party.
13.11Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, successors and permitted assigns.
13.12Counterparts.  This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Facsimile and other reasonable forms of electronic signatures (e.g., .pdf, DocuSign, etc.) shall have the same effect as their originals.
13.13United States Dollars.  References in this Agreement to “Dollars” or “$” shall mean the legal tender of the United States of America.
13.14No Strict Construction.  This Agreement has been prepared jointly and shall not be strictly construed against either Party.
13.15Export Control.  This Agreement is subject to all of the United States laws and regulations controlling the export of technical data, computer software, laboratory prototypes and other commodities and technology.  It is understood that 9 Meters is subject to United States laws and regulations controlling the export of technical data, computer software, laboratory prototypes and other commodities (including the Arms Export Control Act, as amended and the Export Administration Act of 1979), and that its obligations under this Agreement are contingent on compliance with applicable United States export laws and regulations. The transfer of certain technical data and commodities may require a license from the cognizant agency of the United States Government and/or written assurances by EBRIS that EBRIS will not export data or commodities to certain foreign countries without prior approval of such agency.  9 Meters makes no promise or representation that a license is not required nor that, if required, it will be issued.
13.16Responsibility for Affiliates.  The Parties recognize that each Party may perform some or all of its obligations, or exercise its rights, under this Agreement through such Party’s Affiliates, provided, however, that each Party shall remain responsible for the payment and performance by its Affiliates and shall cause its Affiliates to comply with the provisions of this Agreement.  Any breach of any provision of this Agreement by any Affiliate of a Party shall be 
    37

deemed a breach hereof by such Party, with such Party being liable hereunder with respect to such breach as if such Party itself had breached this Agreement.
[Signature page to follow.]

    38

In Witness Whereof, the Parties have executed this Agreement by their proper officers as of the date and year first above written.

						
	9 Meters Biopharma, Inc.
	
	

By:         /s/ John Temperato_
Name:   John Temperato___
Title:   President and CEO
	EBRIS srl
By:         /s/ Gerardo Attianese___
Name:   Gerardo Attianese _____
Title:   CEO EBRIS srl__________

    39

Exhibit A

9 Meters Patents

All Patents listed below are Alba Patents.

																					
	MLB Ref.	Title	Application No.	Appl. Date	Registration No.	Status	Country
	[*]	[*]	[*]	[*]	[*]	[*]	[*]

Exhibit B

Current Product

[*]

Exhibit C

US Trial

[*]

Exhibit D

Current Product Transferred to EBRIS

[*]

Schedule 5.2(1)

Subscription Agreement

THE SECURITIES SUBJECT TO THIS SUBSCRIPTION AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION.  THERE ARE FURTHER RESTRICTIONS ON THE TRANSFERABILITY OF THE SECURITIES DESCRIBED HEREIN.  THE PURCHASE OF THE SECURITIES INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK OF THE LOSS OF THEIR ENTIRE INVESTMENT.
NAME OF SUBSCRIBER:  EBRIS srl
9 METERS BIOPHARMA, INC.
SUBSCRIPTION AGREEMENT
The undersigned (the “Purchaser”) understands that 9 Meters Biopharma, Inc., a corporation organized under the laws of Delaware (the “Company”), is offering shares of its common stock (the “Securities”), to the Purchaser in partial consideration for entering into the Exclusive License Agreement dated as of the date hereof (the “Exclusive License Agreement”).  The Purchaser further understands that the offering is being made without registration of the Securities under the Securities Act of 1933, as amended (the “Securities Act”), or any securities law of any state of the United States or of any other jurisdiction, and is being made only to “accredited investors” (as defined in Rule 501 of Regulation D under the Securities Act).
1.Subscription.  Subject to the terms and conditions hereof, the Purchaser hereby irrevocably subscribes to and agrees to receive the number of Securities set forth in Appendix A hereto, as described above.  The Purchaser acknowledges that the Securities will be subject to restrictions on transfer as set forth on each security certificate, if any, and as further described in this subscription agreement (the “Subscription Agreement”).
2.Representations and Warranties of the Purchaser.  The Purchaser hereby represents and warrants to and covenants with the Company that:
a.General.
i.The Purchaser has all requisite authority (and in the case of an individual, the capacity) to obtain the Securities, enter into this Subscription Agreement and to perform all the obligations required to be performed by the Purchaser hereunder, and such purchase will not contravene any law, rule or regulation binding on the Purchaser or any investment guideline or restriction applicable to the Purchaser.
ii.The Purchaser is a resident of the country set forth on the signature page hereto and is not acquiring the Securities as a nominee or agent or otherwise for any other person.  The Purchaser will comply with all applicable laws and regulations in effect in any jurisdiction in which the Purchaser purchases or sells Securities and obtain any consent, approval or permission required for such purchases or sales under the laws and regulations of any jurisdiction to which the Purchaser is subject or in which the Purchaser makes such purchases or sales, and the Company shall have no responsibility therefor.

iii.If the Purchaser is not a United States person (as defined by Section 7701(a)(30) of the Code), the Purchaser hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares. The Purchaser’s subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of the Purchaser’s jurisdiction.  The transactions contemplated hereby used to purchase the Securities do not violate the anti-money laundering provisions of the Money Laundering Control Act of 1986 or the Bank Secrecy Act of 1970, as amended by the USA Patriot Act of 2001.
b.Information Concerning the Company.
iv.The Purchaser understands and accepts that the purchase of the Securities involves various risks, including the risks outlined in this Subscription Agreement.  The Purchaser represents that it is able to bear any loss associated with an investment in the Securities.
v.The Purchaser is familiar with the business and financial condition and operations of the Company.  The Purchaser has had access to such information concerning the Company and the Securities as it deems necessary to enable it to make an informed investment decision concerning the purchase of the Securities.
vi.The Purchaser has had, during the course of the transactions and prior to the Purchaser’s acquisition of the Securities, the opportunity to ask questions of, and receive answer from, the Company concerning the terms and conditions of the offering and to obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify the accuracy of any information furnished to the Purchaser or to which the Purchaser had access.
vii.The Purchaser understands that no federal or state agency has passed upon the merits or risks of an investment in the Securities or made any finding or determination concerning the fairness or advisability of this investment.
a.Non-reliance.
viii.The Purchaser represents that it is not relying on (and will not at any time rely on) any communication (written or oral) of the Company or any of its affiliates, as investment advice or as a recommendation to purchase the Securities, it being understood that any information and explanations provided by the Company and related to the terms and conditions of the Securities and the transaction documents shall not be considered investment advice or a recommendation to purchase the Securities.
ix.The Purchaser confirms that the Company has not (A) given any guarantee or representation as to the potential success, return, effect or benefit (either legal, regulatory, tax, financial, accounting or otherwise) of an investment in the Securities or (B) made any representation to the Purchaser regarding the legality of an investment in the Securities under applicable legal investment or similar laws or regulations.  In deciding to purchase the Securities, the Purchaser is not relying on the advice or recommendations of the Company and the Purchaser has made its own independent decision that the investment in the Securities is suitable and appropriate for the Purchaser.
    3

c.Status of Purchaser.
x.The Purchaser has such knowledge, skill and experience in business, financial and investment matters that the Purchaser is capable of evaluating the merits and risks of an investment in the Securities.  With the assistance of the Purchaser’s own professional advisors, to the extent that the Purchaser has deemed appropriate, the Purchaser has made its own legal, tax, accounting and financial evaluation of the merits and risks of an investment in the Securities and the consequences of this Subscription Agreement.  The Purchaser has considered the suitability of the Securities as an investment in light of its own circumstances and financial condition and the Purchaser is able to bear the risks associated with an investment in the Securities and its authority to invest in the Securities.
xi.The Purchaser is an “accredited investor” as defined in Rule 501(a) under the Securities Act.  The Purchaser agrees to furnish any additional information requested by the Company or any of its affiliates to assure compliance with applicable U.S. federal and state securities laws in connection with the purchase and sale of the Securities.
b.Restrictions on Transfer or Sale of Securities.  As applies to the Purchaser:
xii.The Purchaser is acquiring the Securities solely for the Purchaser’s own beneficial account, for investment purposes, and not with a view to, or for resale in connection with, any distribution of the Securities in violation of applicable securities laws.  The Purchaser understands that the Securities have not been registered under the Securities Act or any State Securities Laws by reason of specific exemptions under the provisions thereof which depend in part upon the investment intent of the Purchaser and of the other representations made by the Purchaser in this Subscription Agreement.  The Purchaser understands that the Company is relying upon the representations and agreements contained in this Subscription Agreement (and any supplemental information) for the purpose of determining whether this transaction meets the requirements for such exemptions.
xiii.The Purchaser understands that the Securities are “restricted securities” under applicable federal securities laws and that the Securities Act and the rules of the U.S. Securities and Exchange Commission (the “Commission”) provide in substance that the Purchaser may not sell, transfer or otherwise dispose of the Securities except pursuant to an effective registration statement under the Securities Act or an exemption therefrom, and the Purchaser understands that the Company has no obligation or intention to register any of the Securities, or to take action so as to permit sales pursuant to the Securities Act, including Rule 144 promulgated thereunder (“Rule 144”).  The Purchaser understands that the Securities may not be sold pursuant to Rule 144 unless all of the conditions of that Rule are met, including, in many cases, the availability of current information to the public about the Company.  Such information is not now available and the Company has no plans to make such information available.  Consequently, the Purchaser understands that the Purchaser must bear the economic risks of the investment in the Securities for an indefinite period of time.
xiv.The Purchaser agrees: (A) that the Purchaser will not sell, assign, pledge, give, transfer or otherwise dispose of the Securities or any interest therein, or make any offer or attempt to do any of the foregoing, except pursuant to a registration of the Securities under the Securities Act and all applicable State Securities Laws, or in a transaction which is exempt from the registration provisions of the Securities Act and all applicable State Securities Laws; (B) that the certificates representing the Securities will bear a legend making reference to the foregoing restrictions; and (C) that the Company and its affiliates shall not be required to give effect to any purported transfer of such Securities except upon compliance with the foregoing restrictions.
    4

xv.The Purchaser acknowledges that neither the Company nor any other person offered to sell the Securities to it by means of any form of general solicitation or advertising, including but not limited to (A) any advertisement, article, notice or other communication published in or on any newspaper, magazine, website, internet site or similar media or broadcast over television or radio or (B) any seminar or meeting whose attendees were invited by any general solicitation or general advertising.
3.Legend.  The certificates representing the Securities sold pursuant to this Subscription Agreement will be imprinted with a legend in substantially the following form:
“THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.”
4.Waiver of Jury Trial.  THE PURCHASER IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS SUBSCRIPTION AGREEMENT.
5.Submission to Jurisdiction.  With respect to any suit, action or proceeding relating to any offers, purchases or sales of the Securities by the Purchaser (“Proceedings”), the Purchaser irrevocably submits to the exclusive jurisdiction of the federal or state courts located in North Carolina.
6.Governing Law.  This Subscription Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina.
7.Survival.  All representations, warranties and covenants contained in this Subscription Agreement shall survive (i) the acceptance of the subscription by the Company and the closing, (ii) changes in the transactions, documents and instruments governing the offering which are not material or which are to the benefit of the Purchaser and (iii) the death or disability of the Purchaser.
8.Notification of Changes.  The Purchaser hereby covenants and agrees to notify the Company upon the occurrence of any event prior to the closing of the purchase of the Securities pursuant to this Subscription Agreement which would cause any representation, warranty, or covenant of the Purchaser contained in this Subscription Agreement to be false or incorrect.
9.Severability.  If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.
    5

10.Notice.  The Purchaser agrees that the Company may deliver any notice, including any notice of any meeting of the shareholders of the Company, to the Purchaser by electronic mail or other electronic means and that any notice sent to the Purchaser by the Company by such means will be deemed effective when sent as provided in the Delaware General Corporation Law.  The Purchaser and the Company agree that the Purchaser may terminate this Section 11 at any time by written notice to the Company and such notice of termination of this Section 11 shall be effective upon receipt by the Company.
[SIGNATURE PAGE FOLLOWS]
    6

IN WITNESS WHEREOF, the Purchaser has executed this Subscription Agreement as of [_____] [___], 20__.
PURCHASER:
EBRIS srl
By:        
Name:    
Title:    
PURCHASER CONTACT INFORMATION:
Email:    ___________________________
Address:    __________________________
    __________________________
State/Country
of Domicile
or Formation:    __________________________
Taxpayer I.D.
No.:        
AGGREGATE SUBSCRIPTION AMOUNT:  Services provided as referenced in the Exclusive License Agreement
The offer to purchase the Securities as set forth above is confirmed and accepted by the Company as to [_____] shares of common stock.
9 METERS BIOPHARMA, INC.
By:        
Name:    
Title:    

APPENDIX A
CONSIDERATION TO BE DELIVERED
						
	Securities to be Acquired	Aggregate Purchase Price to be Paid/
Form of Consideration

	[___] shares of common stock	

    2

Exhibit E

Development Milestones

						
	Milestone	Payment Due
(except as otherwise set forth in Section 5.5)

	A. [*]
	US$[*]

	B. [*]
	US$[*]

	C. [*]
	US$[*]

	D. [*]
	US$[*]

Exhibit F

EBRIS Patents

[*]Document

Exhibit 10.1
Execution Copy

			
	

AMENDED AND RESTATED METALS CONSIGNMENT AGREEMENT

Dated as of August 12, 2022
by and among
BANK OF MONTREAL
as the Metal Consignor

and

MATERION CORPORATION;
MATERION ADVANCED MATERIALS TECHNOLOGIES AND SERVICES INC.; 
MATERION TECHNICAL MATERIALS INC.; 
MATERION BRUSH INC.; and
MATERION ADVANCED MATERIALS TECHNOLOGIES AND SERVICES CORP.;

as the Customers

			
	

    
			
	NAI-1529679909v8

TABLE OF CONTENTS

Page

						
	ARTICLE 1    DEFINITIONS
	1

	ARTICLE 2    CONSIGNMENT FACILITY
	12

	Section 2.1.    Consigned Metal; Title.
	12

	Section 2.2.    Valuation
	14

	Section 2.3.    Consignment Fees; Payments by the Customers.
	15

	Section 2.4.    Requests for Consignments under the Consignment Facility.
	16

	Section 2.5.    Conversion Options.
	17

	Section 2.6.    Indemnity
	17

	Section 2.7.    Maintenance of Consignment Limits.
	17

	Section 2.8.    Late Fee
	18

	Section 2.9.    Default Rate
	18

	Section 2.10.    Termination; Return of Consigned Metal.
	18

	Section 2.11.    Facility Fee
	19

	Section 2.12.    Commingling
	19

	Section 2.13.    Customer Agent
	19

	ARTICLE 3    [RESERVED]
	20

	ARTICLE 4    SEGREGATED STORAGE FACILITY
	20

	Section 4.1.    Segregated Storage Facility
	20

	Section 4.2.    Periodic Removal of Stored Metal
	20

	Section 4.3.    Removal of Stored Metal at Request of the Metal Consignor
	20

	Section 4.4.    Stored Metal Not Subject to Fees
	21

	Section 4.5.    Access to Segregated Storage Facility
	21

	Section 4.6.    Security Interest
	21

									
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TABLE OF CONTENTS
(continued)
Page

						
	Section 4.7.    Risk of Loss
	21

	Section 4.8.    Waiver of Setoff
	21

	Section 4.9.    Termination of Segregated Storage Facility
	21

	ARTICLE 5    [RESERVED]
	22

	ARTICLE 6    CONDITIONS
	22

	Section 6.1.    Conditions to the Effectiveness of this Agreement
	22

	Section 6.2.    Conditions to Transactions
	22

	Section 6.3.    Customers’ Confirmation
	23

	ARTICLE 7    SECURITY; SUBORDINATION
	23

	Section 7.1.    Collateral
	23

	Section 7.2.    Identification of Collateral
	23

	Section 7.3.    Additional Credit Support
	23

	Section 7.4.    Intercreditor Agreements
	24

	Section 7.5.    Security Documents
	24

	ARTICLE 8    REPRESENTATIONS AND WARRANTIES
	24

	Section 8.1.    Existence and Standing
	24

	Section 8.2.    Authorization and Validity
	24

	Section 8.3.    No Conflict; Government Consent
	24

	Section 8.4.    Security Interest in Collateral
	25

	Section 8.5.    Financial Statements
	25

	Section 8.6.    Material Adverse Change
	25

	Section 8.7.    Taxes
	25

	Section 8.8.    Litigation and Environmental Matters.
	25

									
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	NAI-1529679909v8

TABLE OF CONTENTS
(continued)
Page

						
	Section 8.9.    Compliance With Laws
	26

	Section 8.10.    Investment Company Act
	26

	Section 8.11.    Solvency.
	26

	Section 8.12.    Shared Benefits of Agreement
	26

	Section 8.13.    Specifically Designated National and Blocked Persons
	26

	Section 8.14.    Anti-Money Laundering
	27

	ARTICLE 9    AFFIRMATIVE AND NEGATIVE COVENANTS
	27

	Section 9.1.    Financial and Collateral Reporting
	27

	Section 9.2.    Use of Consignments
	28

	Section 9.3.    Notices
	28

	Section 9.4.    Conduct of Business
	29

	Section 9.5.    Payment of Obligations
	29

	Section 9.6.    Compliance with Laws and Material Contractual Obligations
	29

	Section 9.7.    Inspections; Field Exams
	29

	Section 9.8.    [Reserved].
	29

	Section 9.9.    [Reserved].
	29

	Section 9.10.    Additional Collateral; Further Assurances.
	29

	Section 9.11.    Restricted Payments
	30

	Section 9.12.    Indebtedness
	30

	Section 9.13.    Fundamental Changes and Asset Sales.
	31

	Section 9.14.    Liens
	32

	Section 9.15.    Change of Name or Location
	34

	Section 9.16.    Amendments to Agreements.
	34

									
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TABLE OF CONTENTS
(continued)
Page

						
	Section 9.17.    Financial Covenants.
	35

	Section 9.18.    Subordination of Intercompany Notes
	35

	Section 9.19.    [Reserved].
	35

	Section 9.20.    Consigned Metal
	35

	Section 9.21.    Metal Intercreditor Agreement.
	35

	Section 9.22.    [Reserved].
	36

	Section 9.23.    Location of Metal.
	36

	Section 9.24.    Permitted Metals Agreements.
	37

	Section 9.25.    Insurance and Safekeeping.
	37

	ARTICLE 10    EVENTS OF DEFAULT AND ACCELERATION
	38

	Section 10.1.    Events of Default
	38

	Section 10.2.    Waiver
	40

	ARTICLE 11    AMENDMENTS/WAIVERS
	41

	ARTICLE 12    INDEMNIFICATION
	41

	ARTICLE 13    SETOFF
	41

	ARTICLE 14    ASSIGNMENTS
	42

	Section 14.1.    Assignment by Customers
	42

	Section 14.2.    Participations
	42

	Section 14.3.    Pledges
	43

	ARTICLE 15    EXPENSES
	43

	ARTICLE 16    GOVERNING LAW; JURY TRIAL WAIVER; CONSENT TO JURISDICTION; MISCELLANEOUS
	43

	Section 16.1.    Governing Law
	43

									
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TABLE OF CONTENTS
(continued)
Page

						
	Section 16.2.    Forum; Waiver of Jury Trial
	43

	Section 16.3.    Usury
	44

	Section 16.4.    Additional Costs
	44

	Section 16.5.    Capital Adequacy
	45

	Section 16.6.    Certificate
	45

	Section 16.7.    Survival of Representations and Covenants
	45

	Section 16.8.    Notices
	46

	Section 16.9.    Lost Documents
	48

	Section 16.10.    Waiver
	48

	Section 16.11.    Severability
	48

	Section 16.12.    Section Headings, Etc
	48

	Section 16.13.    Counterparts
	48

	Section 16.14.    Disclaimer of Reliance
	48

	Section 16.15.    Environmental Indemnification
	48

	Section 16.16.    Joint and Several Obligations; Suretyship Waivers and Consents.
	49

	Section 16.17.    Recording of Conversations
	51

	Section 16.18.    Amendment and Restatement
	51

									
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	NAI-1529679909v8

AMENDED AND RESTATED METALS CONSIGNMENT AGREEMENT
THIS AMENDED AND RESTATED METALS CONSIGNMENT AGREEMENT (as may be amended, supplemented, extended, restated or otherwise modified from time to time, this “Agreement”), dated as of August 12, 2022 (the “Effective Date”), is by and among: BANK OF MONTREAL (“BMO”), a Canadian chartered bank (the “Metal Consignor”); MATERION CORPORATION, an Ohio corporation (“BEM”); MATERION ADVANCED MATERIALS TECHNOLOGIES AND SERVICES INC., a New York corporation (“WAM”); MATERION TECHNICAL MATERIALS INC., an Ohio corporation (“TMI”); MATERION BRUSH INC., an Ohio corporation (“BWI”); MATERION ADVANCED MATERIALS TECHNOLOGIES AND SERVICES CORP., a New Mexico corporation (“AC”); and such other Subsidiaries of BEM who may from time to time become parties by means of their execution and delivery with the Metal Consignor of a Joinder Agreement under the Metals Consignment Agreement (as defined below).  BEM, WAM, TMI, BWI, AC, and such Subsidiaries are herein sometimes referred to collectively as the “Customers” and each individually as a “Customer”. 
BACKGROUND
The Customers and the Metal Consignor desire to enter into this Agreement to amend and restate in its entirety that certain Metals Consignment Agreement, dated as of August 27, 2019 (as amended, the “Original Agreement”), by and among the Customers and the Metal Consignor, pursuant to which the Metal Consignor extends to the Customers (1) a committed metals consignment facility in respect of copper, gold, silver, platinum and palladium, and an uncommitted metals consignment facility in respect of rhodium, ruthenium and tantalum, and (2) a metals storage facility.  This Agreement amends and restates in its entirety the Original Agreement and, as of the Effective Date, (a) this Agreement shall supersede and entirely replace the Original Agreement, and (b) all “Obligations” outstanding under the Original Agreement shall constitute Obligations outstanding under this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and of the mutual promises hereinafter contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:
ARTICLE 1
DEFINITIONS
When used herein, the terms set forth below shall be defined as follows:
“Additional Credit Support” has the meaning set forth in Section 7.3 hereof.
“Additional Credit Support Locations” means, collectively, the Approved Foreign Locations and the Approved Subconsignee Locations.
“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.
“Aggregate Secured Metal Facility Indebtedness” means the aggregate value (as determined in accordance with Section 2.2 hereof) of all Metal outstanding on consignment, loan, conditional sale or lease from the Metal Consignor under this Agreement and from all Approved Consignors under Permitted Metal Agreements plus any unpaid purchase price for such Metal that has been withdrawn and is required to be purchased and paid for in full under this Agreement or such Permitted Metal Agreements.
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	NAI-1529679909v8

“Aggregate Secured Metal Limit” means the maximum aggregate value of all Consigned Metal (as defined in the Metal Intercreditor Agreement) permitted to be outstanding at any particular time pursuant to the Metal Intercreditor Agreement.
“Agreement” has the meaning set forth in the Preamble.
“AML Laws” has the meaning set forth in Section 8.14(a) hereof.
“Anti-Terrorism Laws” means any applicable laws relating primarily to terrorism or money laundering, including Executive Order No. 13224 (effective September 24, 2001), the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, The Currency and Foreign Transactions Reporting Act, and the Trading with the Enemy Act (as any of the foregoing applicable laws may from time to time be amended, renewed, extended, or replaced).
“Approved Consignor” means a Person who supplies precious, semi-precious or base metals to any of the Customers on a secured basis (whether styled as a consignment, loan, conditional sale, lease or other secured financing) and who is a party to the Metal Intercreditor Agreement.
“Approved Domestic Location(s)” means the Premises of any of the Customers located in the continental United States and listed under the appropriate heading on Schedule 1 attached hereto, as it may be amended by the parties from time to time, and each other location located in the continental United States approved by the Metal Consignor (or the Collateral Agent) in writing from time to time.
“Approved Foreign Location(s)” means locations located outside of the continental United States and listed under the appropriate heading on Schedule 1 attached hereto, as it may be amended by the parties from time to time, and each other location located outside of the continental United States approved by the Metal Consignor (or the Collateral Agent) in writing from time to time.
“Approved Locations” means, collectively (a) the Approved Domestic Locations, (b) the Approved Foreign Locations, (c) the locations of the Approved Refiners/Fabricators, and (d) the Approved Subconsignee Locations.
“Approved Refiners/Fabricators” means the refiners and fabricators listed under the appropriate heading on Schedule 1 attached hereto, as it may be amended by the parties from time to time, and such other fabricators and refiners as may be approved by the Metal Consignor (or the Collateral Agent) in writing from time to time.
“Approved Storage Facility Location(s)” means the Premises of any of the Customers located in the continental United States and listed under the appropriate heading on Schedule 1 attached hereto, as it may be amended by the parties from time to time, and each other location located in the continental United States approved by the Metal Consignor in writing from time to time.  
“Approved Subconsignee Locations” means, collectively, the locations described in Schedule 1 attached hereto, as it may be amended by the parties from time to time, and each other location approved by the Metal Consignor (or the Collateral Agent) in writing from time to time, where Consigned Metal may be located while in the possession of Approved Subconsignees.
“Approved Subconsignee Metal” means all Consigned Metal outstanding on sub-consignment from the Customers to Approved Subconsignees.
“Approved Subconsignees” means the subconsignees listed under the appropriate heading on Schedule 1 attached hereto, as it may be amended by the parties from time to time, and each other subconsignee approved by the Metal Consignor (or the Collateral Agent) in writing from time to time.
“Bankruptcy Code” means Title 11 of the United States Code (11 U.S.C. § 101 et seq.) as amended from time to time, and any rule or regulation promulgated thereunder.
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	NAI-1529679909v8

“BASF Lease” has the meaning set forth in Section 9.21(c) hereof.
“Business Day” means any day that is not a Saturday, Sunday or other day that is a legal holiday under the laws of the State of New York or the Province of Ontario or is a day on which banking institutions in such state or province are authorized or required by Law to close.
“Capitalized Lease” of a Person means any lease of property by such Person as lessee which would be capitalized on a balance sheet of such Person prepared in accordance with GAAP; provided that, notwithstanding the foregoing, for purposes of this Agreement, any lease (or similar arrangement) that would constitute an “operating lease” under GAAP as in effect on December 31, 2015 (or would have constituted an “operating lease” had such lease or similar arrangement been in effect on such date) shall constitute an “operating lease” hereunder.
“Capitalized Lease Obligations” of a Person means the aggregate amount of the obligations of such Person under Capitalized Leases which would be shown as a liability on a balance sheet of such Person prepared in accordance with GAAP; provided that, notwithstanding the foregoing, for purposes of this Agreement, any lease (or similar arrangement) that would constitute an “operating lease” under GAAP as in effect on December 31, 2015 (or would have constituted an “operating lease” had such lease or similar arrangement been in effect on such date) shall constitute an “operating lease” hereunder and the obligations thereunder shall not constitute Capitalized Lease Obligations.
“Category” means, with respect to any Metal, its nature as Copper, Gold, Silver, Platinum, Palladium, Rhodium, Ruthenium or Tantalum.
“Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof), of equity interests representing more than 20% of the aggregate ordinary voting power represented by the issued and outstanding equity interests of BEM; (b) occupation of a majority of the seats (other than vacant seats) on the board of directors of BEM by Persons who were neither (i) nominated by the board of directors of BEM nor (ii) appointed by directors so nominated; or (c) the occurrence of a change in control, or other similar provision, as defined in any agreement or instrument evidencing any Material Indebtedness (triggering a default or mandatory prepayment, which default or mandatory prepayment has not been waived in writing).
“Client” means any third-party customer or client of a Customer that delivers (whether by physical delivery or by means of entries in any “pool account”, “toll account”, or similar arrangement) Client Metal to such Customer pursuant to an arrangement (each, a “Client-Customer Arrangement”) whereby, in the ordinary course of such Customer’s business, it (a) refines such Client Metal for such third-party customer or client, or (b) uses such Client Metal to manufacture or fabricate one or more products or provide other services for such third-party customer or client.
“Client-Customer Arrangement” has the meaning set forth in the definition of “Client”.
“Client Metal” means any Metal or other property owned or held by any Client, and any Metal or other property consigned, loaned or provisionally sold to any Client by any Person other than a Customer.
“Code” means the Internal Revenue Code of 1986, as amended, reformed or otherwise modified from time to time, and any rule or regulation issued thereunder.
“Collateral” means all of the Customers’ respective right, title and interest (if any) in the following property and assets, whether now owned or existing or hereafter acquired or arising, regardless of where located:
(a)all Metal of such Customer (whether such Metal is now or hereafter owned by, or consigned or loaned to such Customer) or in which such Customer now or hereafter holds or acquires an 
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	NAI-1529679909v8

interest, in each case, whether located at the premises of a Customer, or in the possession of fabricators, refiners or third parties;
(a)all Inventory of such Customer, whether now existing or hereafter arising, which contains or consists of Metal; and
(b)all products and proceeds of any and all of the foregoing of any kind or nature, including, but not limited to, (i)  the liquidation of Collateral described in clauses (a) and (b) above, (ii) any other sale or disposition of the Collateral, to the extent such proceeds and products are attributable to the Collateral described in clauses (a) and (b) above, and (iii) proceeds of any insurance policies and claims against third parties.
“Collateral Agent” means Bank of Montreal, in its capacity as Collateral Agent for itself and for the Approved Consignors pursuant to the Metal Intercreditor Agreement, or any successor Collateral Agent thereto.
“Collateral Compliance Certificate” shall have the meaning set forth in Section 9.1(d) hereof.
“Consigned Metal” means Metal which has been consigned to a Customer pursuant to the Consignment Facility.
“Consignment” means a consignment or lease of Metal by the Metal Consignor to a Customer under the Consignment Facility.
“Consignment Facility” means the facility established pursuant to Article 2 hereof, whereby a Customer may request Consignments of Metal from the Metal Consignor.
“Consignment Facility Indebtedness” means the value (as determined in accordance with Section 2.2 hereof) of all Consigned Metal plus any unpaid purchase price for Consigned Metal that has been withdrawn from Consignment and is required to be purchased under the Consignment Facility.
“Consignment Limit” means $150,000,000. 
“Consolidated” or “consolidated” means, wherever used in conjunction with a financial statement, covenant or definition, such financial statement, covenant or definition shall (unless otherwise specifically stated) refer to BEM and its Subsidiaries on a consolidated basis determined, calculated or applied in accordance with GAAP.
“Consolidated EBITDA” means, with reference to any period, Consolidated Net Income plus, to the extent deducted from revenues in determining Consolidated Net Income, (a) Consolidated Interest Expense, (b) Consolidated Tax Expense, (c) depreciation, (d) amortization, (e) depletion expense, and (f) nonrecurring losses incurred other than in the ordinary course of business, minus, to the extent included in Consolidated Net Income, nonrecurring gains realized other than in the ordinary course of business, all calculated for BEM and its Subsidiaries on a consolidated basis.
“Consolidated Funded Debt” means all Indebtedness for borrowed money and Capitalized Leases, including, without limitation, current, long-term and Subordinated Indebtedness, for BEM and its Subsidiaries on a Consolidated basis, provided that for purposes of this definition, obligations under the following will not be considered in calculating Consolidated Funded Debt: (a) obligations under Swap Agreements, (b) obligations under this Agreement and obligations under other Permitted Metals Agreements, and (c) Indebtedness under any sale and leaseback transaction.
“Consolidated Interest Expense” means, with reference to any period, the interest expense of BEM and its Subsidiaries calculated on a consolidated basis for such period (but not including any up-front fees); provided that, notwithstanding the foregoing, for purposes of this Agreement, any lease (or similar arrangement) that would constitute an “operating lease” under GAAP as in effect on December 
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	NAI-1529679909v8

31, 2015 (or would have constituted an “operating lease” had such lease or similar arrangement been in effect on such date) shall constitute an “operating lease” hereunder and any payments owed thereunder shall not constitute or be included in interest expense.
“Consolidated Net Income” means, with reference to any period, the net income (or loss) of BEM and its Subsidiaries calculated on a Consolidated basis for such period.
“Consolidated Net Worth” means, on any date, all amounts that would be included under stockholders’ equity on a consolidated balance sheet of BEM and its consolidated Subsidiaries, as determined on a consolidated basis in accordance with GAAP.
“Consolidated Tax Expense” means, with reference to any period, the tax expense of BEM and its Subsidiaries calculated on a Consolidated basis for such period.
“Consolidated Total Assets” means, as of the date of any determination thereof, total assets of BEM and its Subsidiaries calculated in accordance with GAAP on a consolidated basis as of such date.
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto. 
“Copper” means copper meeting the London Market Exchange Grade A Specifications, unless otherwise agreed in writing between the Metal Consignor and the Customer Agent.
“Customer” has the meaning set forth in the Preamble.
“Customer Agent” means BEM, in its capacity as agent of the Customers, or any other Customer appointed by the Metal Consignor in its sole discretion and approved in writing by BEM.
“Default” means (a) an Event of Default or (b) an event or condition that, but for the requirement that time elapse or notice be given or both, would constitute an Event of Default.
“Dollars”, “U.S. Dollars” and “$” means lawful currency of the United States.
“Drawdown Date” means the date on which any Consignment under the Consignment Facility is made or is to be made and the date on which any Consignment under the Consignment Facility is converted or continued in accordance with Section 2.5 hereof.
“Effective Date” has the meaning set forth in the Preamble.
“Environmental Laws” means all federal, state, provincial, foreign or local statutes, laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions or binding agreements issued, promulgated or entered into by any governmental authority, relating in any way to the protection of public health as it relates to exposure to Hazardous Materials or the protection of the environment, preservation or reclamation of natural resources or the management, or release or threatened release of any Hazardous Material.
“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of investigation and environmental remediation, governmental response costs, natural resource damages, fines, penalties or indemnities), of the Customers directly or indirectly resulting from, based upon or relating to (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the presence, release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
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	NAI-1529679909v8

“Equity Metal” means Metal owned by the Customers (excluding therefrom, however, (i)  the aggregate amount of all Metal which is on consignment, loan or conditional sale from an Approved Consignor and (ii) all Approved Subconsignee Metal), which is free and clear of all Liens (other than Permitted Metal Liens) and which is located at one or more of the Customers’ Premises which are also Approved Domestic Locations.
“Event of Default” means each and every event specified in Section 10.1 hereof.
“Fiscal Month” means any of the monthly accounting periods of BEM.
“Fiscal Quarter” means any of the quarterly accounting periods of BEM.
“Fiscal Year” means any of the annual accounting periods of BEM ending on December 31 of each year.
“Fixed Consignment Fee” means a consignment fee calculated in accordance with the provisions of Section 2.3(d) hereof.
“Fixed Rate Consignment” means a Consignment bearing a Fixed Consignment Fee.
“Fixed Rate Period” means, with respect to the Consignment of Metal based upon a Fixed Consignment Fee, the period beginning on the Drawdown Date and ending on such date as the parties may agree upon from time to time and as reflected in the confirmation of such Consignment.      
“Floating Consignment Fee” means a consignment fee calculated in accordance with the provisions of Section 2.3(c) hereof.
“Floating Rate Consignment(s)” means a Consignment bearing a Floating Consignment Fee.
“GAAP” means generally accepted accounting principles in the United States of America.
“German Guarantee” has the meaning set forth in Section 10.1(k) hereof.
“German Precious Metals Agreement” means that certain Amended and Restated Precious Metals Agreement, dated as of even date herewith, by and between the Metal Consignor and Materion Advanced Materials Germany GmbH (“MAMG”), as amended, supplemented or modified from time to time.
“Gold” means gold having a minimum degree of fineness of ninety-nine and 50/100 percent (99.50%), in bars of approximately four hundred (400) troy ounces, one hundred (100) troy ounces or one (1) kilo (32.150 troy ounces) each, or in bags of gold grain of approximately one hundred (100) troy ounces each, in form available to the Metal Consignor, or in such other degree of fineness or form as the parties may agree upon from time to time.
“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls or materials containing same, radon gas, infectious or medical wastes, harmful biological agents, and all other substances or wastes of any nature regulated pursuant to or that could give rise to liability under any Environmental Law. 
“Indebtedness” of a Person means, without duplication, such Person’s (a) obligations for borrowed money, (b) obligations representing the deferred purchase price of property or services (other than accounts payable arising in the ordinary course of such Person’s business payable on terms customary in the trade), (c) obligations, whether or not assumed, secured by Liens or payable out of the proceeds or production from property now or hereafter owned or acquired by such Person, (d) obligations which are evidenced by notes, acceptances, or other similar instruments, (e) obligations of such Person to 
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	NAI-1529679909v8

purchase securities or other property arising out of or in connection with the sale of the same or substantially similar securities or property or any other off-balance sheet liabilities, (f) Capitalized Lease Obligations, (g) contingent obligations for which the underlying transaction constitutes Indebtedness under this definition, (h) the stated face amount of all letters of credit or bankers’ acceptances issued for the account of such Person and, without duplication, all reimbursement obligations with respect to such issued letters of credit, (i) any and all obligations, contingent or otherwise, whether now existing or hereafter arising, under or in connection with Swap Agreements, including, without limitation, Net Marked-to-Market Exposure, and (j) obligations of such Person under any sale and leaseback transaction.
“Indemnified Liabilities” shall have the meaning set forth in Section 16.15 hereof. 
“Indemnified Party” shall have the meaning set forth in Article 12 hereof.
“Intercreditor Agreements” means (a) the Lender Intercreditor Agreement, and (b) the Metal Intercreditor Agreement, as each may be amended from time to time.
“Interest Coverage Ratio” means, the ratio, determined as of the end of each Fiscal Quarter of BEM for the then most-recently ended four Fiscal Quarters of (a) Consolidated EBITDA to (b) Consolidated Interest Expense.
“Inventory” shall have the meaning set forth in Article 9 of the Uniform Commercial Code.
“ISDA Agreement” means any ISDA Master Agreement at any time in existence between one or more Customers and the Metal Consignor, together with the Schedule related thereto, and any confirmation thereunder, as amended, restated, supplemented or otherwise modified from time to time.
“JM” has the meaning set forth in Section 2.2(f) hereof.
“Joinder Agreement” means a Joinder Agreement in a form reasonably acceptable to the parties hereto pursuant to which each operating Subsidiary of BEM which holds Consigned Metal may become a Customer and a party to this Agreement.
“Lender Intercreditor Agreement” means the Second Amended and Restated Intercreditor Agreement, dated as of August 27, 2019, by and between the Metal Consignor (as the “Metals Agent” thereunder, on behalf of itself and the Approved Consignors) and the Senior Credit Agent (on behalf of the Lenders under the Senior Credit Agreement), as may be amended, restated or supplemented from time to time.
“Leverage Ratio” means, the ratio, determined as of the end of each Fiscal Quarter of BEM for the then most-recently ended four Fiscal Quarters of (a)(x) Consolidated Funded Debt minus (y) Qualified Cash to (b) Consolidated EBITDA.
“Lien” means any lien (statutory or other), mortgage, security interest, consignment interest, pledge, hypothecation, assignment, deposit arrangement, encumbrance or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, the interest of a vendor or lessor under any conditional sale, Capitalized Lease or other title retention agreement).
“Material Adverse Effect” means a material adverse effect on (a) the business, assets, property or financial condition of BEM and its Subsidiaries taken as a whole, (b) the ability of the Customers, taken as a whole, to perform their material obligations under this Agreement, or (c) a material portion of the Collateral subject to this Agreement or the Metal Consignor’s rights with respect to such Collateral.
“Material Indebtedness” means any Indebtedness (other than the Obligations), or obligations in respect of one or more Swap Agreements, of any one or more of the Customers in an aggregate principal amount exceeding $20,000,000 (or the equivalent thereof in currencies other than Dollars).  For purposes 
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	NAI-1529679909v8

of determining Material Indebtedness, the “principal amount” of the obligations of the Customers in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Customer would be required to pay if such Swap Agreement were terminated at such time.
“Maturity Date” means August 31, 2025.  Any obligations of the Customers under this Agreement which are not paid when due on or before the Maturity Date shall remain subject to the provisions of this Agreement until all Obligations are paid and performed in full. 
“Metal” means each of Copper, Gold, Silver, Platinum, Palladium, Rhodium, Ruthenium and Tantalum.
“Metal Consignor” has the meaning set forth in the Preamble.
“Metal Consignor’s Address” means 151 West 42nd Street, 9th Floor, New York, NY 10036, Attn: Bimal Das, MD & Global Head, Metals Sales and Structuring, or such other person or address as the Metal Consignor shall designate from time to time in accordance with the provisions hereof.
“Metal Documents” means this Agreement, the Security Documents, the Metal Hedging Transactions, each ISDA Agreement (if any) and all agreements, instruments and documents relating thereto which have been executed or delivered by or on behalf of a Customer.
“Metal Hedging Transaction” means any transaction (including any agreement with respect thereto) now existing or hereafter entered into by a Customer and the Metal Consignor which is a swap, forward, option, cap, floor, collar, cross-currency transaction or other similar transaction (including any option with respect to any of these transactions) or any combination thereof, whether linked to one or more Consignments, interest rates, price indices or other financial measures, which is designed to hedge or mitigate risks to which a Customer has exposure with respect to Metal.
“Metal Intercreditor Agreement” means the Second Amended and Restated Intercreditor and Collateral Agency Agreement, dated as of August 27, 2019, by and among the Metal Consignor, as the Collateral Agent thereunder, and the Approved Consignors, as may be amended, restated or supplemented from time to time.
“Net Marked-to-Market Exposure” means, as of any date of determination, the excess (if any) of all unrealized losses over all unrealized profits of the Customers arising from Swap Agreements and Metal Hedging Transactions.  As used in this definition, “unrealized losses” means the fair market value of the costs to a Customer of replacing such Swap Agreement or Metal Hedging Transaction as of the date of determination (assuming the Swap Agreement or Metal Hedging Transaction were to be terminated as of that date), and “unrealized profits” means the fair market value of the gain to such Customer of replacing such Swap Agreement or Metal Hedging Transaction as of the date of determination (assuming such Swap Agreement or Metal Hedging Transaction were to be terminated as of that date) and, with respect to Metal Hedging Transactions, as reasonably determined and communicated by the Metal Consignor to the Customer Agent and, to the extent applicable to the particular Metal Hedging Transaction, using the value of underlying Metal calculated in accordance with Section 2.2 hereof.
“Obligations” means any and all Indebtedness, obligations and liabilities of the Customers to the Metal Consignor of every kind and description, direct or indirect, joint or several, absolute or contingent, due or to become due, whether for payment or performance, now existing or hereafter arising under this Agreement or any other Metal Document, including, without limitation, all Indebtedness and obligations of the Customer under the Consignment Facility, the Segregated Storage Facility and the Metal Hedging Transactions, and all interest, taxes, fees, charges, expenses and attorneys’ fees chargeable to the Customers hereunder or thereunder.
“OFAC” has the meaning set forth in Section 8.14(b) hereof.
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“Original Agreement” has the meaning set forth in the Background Paragraph.
“Palladium” means palladium having a minimum degree of fineness of ninety-nine and 95/100 percent (99.95%), in sponge, plate or ingots, in form available to the Metal Consignor, or in such other degree of fineness or form as the parties may agree upon from time to time.
“Participant” has the meaning set forth in Section 14.2(a) hereof.
“Permitted Liens” has the meaning set forth in Section 9.14 hereof.
“Permitted Metal Liens” has the meaning set forth in Section 9.14 hereof.
“Permitted Metals Agreements” means copper, gold, silver, platinum, palladium, rhodium, ruthenium, tantalum and other precious, semi-precious or base metal consignment, loan, conditional sale or lease agreements or arrangements entered into from time to time by BEM or any of its Subsidiaries, to the extent permitted Sections 9.12(h) and 9.21 hereof.  The term “Permitted Metals Agreements” shall not include Client-Customer Arrangements.
“Person” means an individual, corporation, partnership, limited liability company, joint venture, trust, or unincorporated organization.
“Physical Metal Deficiency” shall have the meaning set forth in Section 9.24(b) hereof.
“Platinum” means platinum having a minimum degree of fineness of ninety-nine and 95/100 percent (99.95%), in sponge or plate, in form available to the Metal Consignor, or in such other degree of fineness or form as the parties may agree upon from time to time.
“Pledge and Security Agreement” means that certain Fourth Amended and Restated Pledge and Security Agreement, dated as of October 27, 2021, among BEM, the Grantors as defined therein and the Senior Credit Agent, as may be amended, restated or supplemented, or otherwise replaced from time to time.
“Premises” means any real estate owned, used or leased by a Customer or an Affiliate of a Customer.
“Prime Rate” means the variable per annum rate of interest so designated from time to time by the Metal Consignor as its U.S. Dollar “base rate” for U.S. Dollar commercial loans made by the Metal Consignor in the United States.  The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate being charged to any customer.  Changes in the rate of interest resulting from changes in the Prime Rate shall take place immediately without notice or demand of any kind.
“Qualified Cash” means, at any time the same is to be determined, unrestricted and unencumbered (other than Liens permitted under this Agreement) cash, and cash equivalent investments, of BEM or any Subsidiary as reflected on the most recent consolidated balance sheet of BEM and its Subsidiaries in each case at such time; provided that Qualified Cash shall not exceed $25,000,000.
“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any equity interests in any Customer, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such equity interests in any Customer or any option, warrant or other right to acquire any such equity interests in a Customer.
“Rhodium” means rhodium having a minimum degree of fineness of ninety-nine and 90/100 percent (99.90%) in form available to the Metal Consignor, or in such other degree of fineness or form as the parties may agree upon from time to time.
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“Ruthenium” means ruthenium having a minimum degree of fineness of ninety-nine and 90/100 percent (99.90%) in form available to the Metal Consignor, or in such other degree of fineness or form as the parties may agree upon from time to time.
“Sanctioned Country” means, at any time, any country or territory which is the subject or target of any Sanctions broadly restricting or prohibiting dealings with such country, territory or government.
“Sanctioned Person” means, at any time: (i) any Person listed in any list of Specially Designated Nationals or equivalent maintained by the United States government (including by OFAC, the U.S. Department of State or the U.S. Department of Commerce), the Canadian government, the United Nations Security Council or the European Union or any of its member states’ governments; (ii) any Person who to any Customer’s actual knowledge is controlled by any Person described in clause (i) hereof; or (iii) any Person who is 50% or more directly owned by one or more than one person described in clauses (i) and (ii) hereof.
“Sanctions” means economic or financial sanctions or trade embargoes enacted, imposed, administered or enforced from time to time via executive order, rule, regulation or other law relating to anti-bribery, anti-corruption, terrorism or money laundering by (i) the U.S. government, including those administered by OFAC, the U.S. Department of State or the U.S. Department of Commerce, (ii) the Canadian government; (iii) the United Nations Security Council; or (iv) the European Union or any of its member states’ governments.
“Security Documents” means the Intercreditor Agreements and all agreements delivered in connection with the foregoing, and any other agreements now or hereafter securing the Obligations of the Customers to the Metal Consignor.
“Segregated Storage Facility” means a safekeeping vault at an Approved Storage Facility Location in which one or more Customers will hold Stored Metal which shall be clearly marked as belonging to the Metal Consignor and shall be segregated from all other material and metal. 
“Senior Credit Agent” means JPMorgan Chase, N.A., as administrative agent.
“Senior Credit Agreement” means that certain Fourth Amended and Restated Credit Agreement, dated as of October 27, 2021, among Materion Corporation, Materion Netherlands B.V., the other Foreign Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party hereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Wells Fargo Bank, National Association and Bank of America, N.A., as Co-Syndication Agents and KeyBank National Association, as Documentation Agent, as may be amended, restated or supplemented, or refinanced or otherwise replaced from time to time.
“Silver” means silver having a minimum degree of fineness of ninety-nine and 90/100 percent (99.90%), in bars of approximately one thousand (1,000) troy ounces each, in form available to the Metal Consignor, or in such other degree of fineness or form as the parties may agree upon from time to time.
“Stored Metal” shall have the meaning set forth in Section 4.1 hereof.
“Stored Metal Limit” means $125,000,000.
“Subordinated Indebtedness” means Indebtedness of the Customer which is subordinated in writing to all Obligations of the Customer to the Metal Consignor on terms satisfactory to the Metal Consignor.
“Subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, 
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limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more Subsidiaries of the parent or by the parent and one or more Subsidiaries of the parent.
“Swap Agreement” means any transaction (including an agreement with respect thereto) now existing or hereafter entered into by any Customer which is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of these transactions) or any combination thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures.
“Tantalum” means tantalum having such degree of fineness and in such form as the parties may agree upon from time to time.
“Uniform Commercial Code” or “UCC” means the Uniform Commercial Code in effect or the date hereof in the State of New York, or such other jurisdiction if otherwise required by applicable law.
To the extent not defined in this Article 1, unless the context otherwise requires, accounting and financial terms used in this Agreement shall have the meanings attributed to them by GAAP (provided that, if the Customer Agent notifies the Metal Consignor that the Customer Agent requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Metal Consignor notifies the Customer Agent that it requests an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith), and all other terms contained in this Agreement shall have the meanings attributed to them by Article 9 of the Uniform Commercial Code in force in the State of New York, as of the date hereof to the extent the same are used or defined therein.
ARTICLE 2
CONSIGNMENT FACILITY
Section 2.1.Consigned Metal; Title.
(a)Subject to the terms and conditions herein set forth and provided that no Default has occurred and is then continuing, the Metal Consignor hereby commits to consign Metal that is Copper, Gold, Silver, Platinum and Palladium to the Customers from time to time, and agrees on an uncommitted basis to consign Metal that is Rhodium, Ruthenium and Tantalum, in each case, in such amounts as are requested by the Customer Agent on behalf of the Customers in the manner set forth herein on any Business Day during the period from the date hereof until the Maturity Date; provided, however, that no Consignment shall be made if, after giving effect thereto, the Consignment Facility Indebtedness would exceed the Consignment Limit.  For greater clarity, any Consignment of Rhodium, Ruthenium or Tantalum shall be made by the Metal Consignor on an uncommitted basis, subject to Metal Consignor’s absolute and sole discretion whether to enter into such transaction if it so decides.
(b)The commodities to be consigned to the Customers by the Metal Consignor under the Consignment Facility will consist of Metal as defined herein; provided, however, that notwithstanding anything in this Agreement to the contrary, unless the parties otherwise agree, and subject to Section 2.1(h) below, the fineness of Metal shall be as set forth in the definition of such Category of Metal.  EXCEPT FOR THE FINENESS OF THE CONSIGNED METAL AND THE QUANTITY THEREOF WITH RESPECT TO EACH CONSIGNMENT, THE METAL CONSIGNOR MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS 
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OR IMPLIED, WITH RESPECT TO THE METAL CONSIGNED OR TO BE CONSIGNED OR SOLD HEREUNDER, WHETHER AS TO MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER MATTER, AND THE METAL CONSIGNOR HEREBY DISCLAIMS ALL SUCH WARRANTIES.
(c)Metal shall be consigned to the Customers by the Metal Consignor in amounts as requested by the Customer Agent on behalf of the Customers from time to time in accordance, and in compliance, with the terms and provisions hereof.  Subject to Section 2.7 below, it is understood that at no time shall the Consignment Facility Indebtedness exceed the Consignment Limit.
(d)All deliveries of Metal requested by the Customer Agent on behalf of the Customers shall be made at the Customers’ expense and risk by a recognized reputable carrier of the Metal Consignor’s reasonable selection or, at the request of the Customer Agent on behalf of the Customers, by the Metal Consignor crediting the account of a Customer with a third party designated by the parties for such purpose.  Following the delivery of Consigned Metal to a Customer in accordance with Customer Agent’s instructions, the Customers shall insure the Consigned Metal, including all Consigned Metal which is in transit between Approved Locations, until such time as the Consigned Metal being returned to the Metal Consignor has been received by the Metal Consignor, or purchased by a Customer.
(e)Title to Consigned Metal shall remain in the Metal Consignor until such Consigned Metal is purchased and withdrawn from Consignment by a Customer, and Consigned Metal shall for the purposes of this Agreement be deemed to be outstanding on Consignment until paid for in full, whereupon title to such purchased Consigned Metal shall pass to the Customer to whom such Metal was consigned, or until such Consigned Metal is returned or redelivered by the Customer as provided in Section 2.3(e) or 2.7(a)(ii) hereof.  Each Customer hereby authorizes the Metal Consignor to file financing statements against such Customer with respect to the Consigned Metal, and each Customer agrees, upon request of the Metal Consignor, to execute and deliver such other documents as may be reasonably requested by the Metal Consignor to further evidence or perfect the Metal Consignor’s interests as consignor and, for precautionary purposes, as a secured party under the Uniform Commercial Code.
(f)Until Consigned Metal is purchased and withdrawn from Consignment and paid for in full, such Consigned Metal and Inventory containing such Consigned Metal shall at all times be physically located (i) at one or more Approved Locations, or (ii) in transit between any Approved Locations.
(g)The Customers shall pay all license fees, assessments and sales, use, excise, property and other taxes now or hereafter imposed by any governmental body or authority with respect to the possession, use, sale, transfer, consignment, delivery or ownership of all Metal consisting of Consigned Metal (exclusive, however, of taxes imposed or measured by the income of the Metal Consignor and franchise taxes imposed on the Metal Consignor).
(h)The Metal Consignor shall not be liable for any delay in delivery or for any inability to deliver Metal hereunder directly or indirectly resulting from or relating to any unavailability or scarcity of Metals, foreign or domestic embargoes, seizure, acts of God, insurrections, strikes, war, terrorism, the adoption or enactment of any law, ordinance, regulation, ruling or order directly or indirectly interfering with the production, sale, consignment or delivery of Metal generally, lack of transportation, fire, flood, explosions or other accidents, or events or contingencies beyond the reasonable control of the Metal Consignor.
Section 2.1.Valuation.  For the purpose of this Agreement:  
(i)the value of Copper on a particular valuation date shall be the official price for a cash buyer of Copper on such valuation date as customarily set by the London Metal Exchange, or if no such price is available for such date, then on the basis of said official price on the next previous day for which such price was available; 
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(j)the value of Gold on a particular valuation date shall be the gold price PM on such valuation date as published by the London Bullion Market Association (“LBMA”), or if no such price is available for such date, then the gold price PM on the next previous day for which such price was available;
(k)the value of Silver on a particular valuation date shall be the silver price on such valuation date published by the LBMA, or if no such price is available for such date, then the silver price on the next previous day for which such price was available; 
(l)the value of Platinum on a particular valuation date shall be the LBMA platinum price PM on such valuation date, or if no such price is available for such date, then the LBMA platinum price PM on the next previous day for which such price was available; 
(m)the value of Palladium on a particular valuation date shall be the LBMA palladium price PM on such valuation date, or if no such price is available for such date, then the LBMA palladium price PM on the next previous day for which such price was available; 
(n)the value of Rhodium on a particular valuation date shall be the Johnson Matthey Base Price for rhodium published at 9:30 a.m. (New York time) by Johnson Matthey PLC (“JM”) on such date;
(o)the value of Ruthenium shall be the fair market value of such Ruthenium as reasonably determined by the Metal Consignor from time to time; and
(p)the value of Tantalum shall be the fair market value of such Tantalum as reasonably determined by the Metal Consignor from time to time.
    In the event that the London Metal Exchange, the LBMA or JM shall discontinue or alter in any material respect its usual practice of quoting a price for Copper, Gold, Silver, Platinum, Palladium or Rhodium, as applicable, on any day for which such a price is necessary for the purposes of this Agreement, the Metal Consignor shall so notify the Customers, and the Metal Consignor, using its reasonable discretion, shall announce a substituted index or mechanism which shall thereupon become the method of valuation hereunder until the London Metal Exchange, the LBMA or JM, as applicable, shall resume its usual practices of quoting such prices.
Section 2.2.Consignment Fees; Payments by the Customers.
(q)During such time as Metal is consigned to any Customer hereunder and until the same is withdrawn from consignment and returned to the Metal Consignor or paid for in full by the Customer as hereinafter provided, the Customers will pay to the Metal Consignor, a fee computed daily on the value of such Consigned Metal as hereinafter set forth.  Such fee shall be accrued on a daily basis and, in the case of Floating Rate Consignments, shall be paid monthly in arrears, not later than the fifth (5th) Business Day following the receipt of invoice, and in the case of Fixed Rate Consignments, shall be paid monthly in arrears, not later than the fifth (5th) Business Day following the receipt of invoice, and on the last day of the Fixed Rate Period with respect thereto.  All fees payable under this Article 2 shall be computed on the basis of a 360-day year, counting the actual number of days elapsed.
(r)The Customer may elect to pay either a Floating Consignment Fee or, provided that no Default has occurred and is then continuing, a Fixed Consignment Fee with respect to each Consignment of Metal under the Consignment Facility, subject to the terms and conditions hereinafter set forth.
(s)Each Floating Consignment Fee will be calculated for the period commencing with the Drawdown Date and shall be at the rate per annum calculated by the Metal Consignor and specified by the Metal Consignor from time to time by written notice, delivered to the Customer Agent at 
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least four (4) days, or such other period as agreed by Metal Consignor, prior to the effective date of such rate.
(t)Each Fixed Consignment Fee will be calculated for a specific quantity and Category of Metal consigned to a Customer for a specific Fixed Rate Period based on a fixed price per ounce at a commercially reasonable fixed rate (by reference to applicable market conditions at the time) agreed upon by the applicable Customer(s) (or the Customer Agent) and the Metal Consignor, as set forth in the confirmation of such Fixed Rate Consignment.  Once the specific quantity and Category of Metal and the specific Fixed Rate Period have been selected and the Fixed Consignment Fee determined and agreed to by the Customer(s) (or the Customer Agent), such selections shall be irrevocable and binding on the Customers and shall obligate the Customers to accept the Consignment requested from the Metal Consignor in the quantity, in the Category and at the Fixed Consignment Fee for the Fixed Rate Period specified.
(u)At such time as a Customer shall purchase and withdraw Consigned Metal from Consignment under the Consignment Facility, it shall become obligated to (i) pay to the Metal Consignor (x) a purchase price computed in accordance with Section 2.2 hereof if such purchase is effected by the Customer (and the Customer has notified the Metal Consignor) prior to 2:30 p.m., New York time, on any Business Day, plus any applicable market premium, or (y) such other purchase price as shall be mutually agreed upon by the Metal Consignor and the Customer, or (ii) deliver Metal to the Metal Consignor’s pool accounts, loco London, free and clear of all Liens (other than Liens in favor of the Metal Consignor) a quantity of Metal equal to the Metal purchased.  All payments of purchase price for Consigned Metal or deliveries of Metal are to be made on the applicable settlement date set forth in the confirmation for such purchase or such other settlement date as agreed between the Customer(s) (or the Customer Agent) and the Metal Consignor, provided, however, title to such Consigned Metal shall not pass to the Customer until the payment in full of such purchase price.  Consigned Metal shall be deemed to have been purchased and withdrawn from Consignment, and payment of the purchase price shall become due, at the earlier of (A) such time as a Customer shall notify the Metal Consignor that it elects to purchase such Consigned Metal, or (B) such time as a Customer shall sell and deliver such Consigned Metal to its customers in the ordinary course of its business.
(v)Each Customer hereby authorizes the Metal Consignor to charge such Customer’s account at any time and from time to time for the purpose of paying any amounts which are at any time payable by the Customers under this Section 2.3.  Accordingly, all payments to be made by the Customers under this Section 2.3 may be automatically debited to any Customer’s account.
(w)All payments (other than payments in the form of Metal) shall be made by the Customers at the Metal Consignor’s Address herein set forth or such other place as the Metal Consignor may from time to time specify in writing, or by bank wire sent in accordance with the Metal Consignor’s instructions, in lawful currency of the United States of America in immediately available funds, without counterclaim or setoff and free and clear of, and without any deduction or withholding for, any taxes or other payments.
(x)All payments shall be applied first to the payment of all reasonable, out-of-pocket fees, expenses and other amounts then due and payable to the Metal Consignor under this Section 2.3 (excluding purchase price for Consigned Metal and consignment fees), then to accrued consignment fees and the balance on account of outstanding purchase price for Consigned Metal; provided, however, that after the occurrence and during the continuance of an Event of Default, payments will be applied to the Obligations of the Customers to the Metal Consignor as the Metal Consignor determines in its sole discretion.
Section 2.2.Requests for Consignments under the Consignment Facility.
(y)The Customer Agent shall give to the Metal Consignor notice by telephone or electronic means of each request for a Consignment of Metal.  Subject to agreement with respect to any Floating Consignment Fee or Fixed Consignment Fee (to the extent applicable), each such notice shall be 
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irrevocable and binding on the Customers and shall obligate the Customers to accept the consignment requested.
(z)Requests for any Floating Rate Consignments shall be furnished to the Metal Consignor no later than 2:00 p.m. (New York time) one (1) Business Day prior to the proposed Drawdown Date or as otherwise mutually agreed.  Each such notice shall specify (i) the amount and form of Metal requested, and (ii) the proposed Drawdown Date of such Consignment.
(aa)Requests for any Fixed Rate Consignments shall be furnished to the Metal Consignor by 3:00 p.m. (New York time) three (3) Business Days prior to the proposed Drawdown Date or as otherwise mutually agreed.  Each such notice shall specify (i) the amount and form of Metal requested, (ii) the proposed Drawdown Date of such Consignment, and (iii) the Fixed Rate Period for such Consignment.
(ab)The Customers irrevocably authorize the Metal Consignor to make or cause to be made, at or about the time of the Drawdown Date of any Consignment of Metal or at the time of receipt of any payment of purchase price for Consigned Metal or any redelivery of Consigned Metal, an appropriate notation on the Metal Consignor’s books and records reflecting the making of such Consignment of Metal or (as the case may be) the receipt of such purchase price for Consigned Metal, or any redelivery of Consigned Metal.  The amount of the Consignment Facility Indebtedness set forth in the Metal Consignor’s books and records shall be prima facie evidence of the Consignment Facility Indebtedness owing and unpaid to the Metal Consignor, but the failure to record, or any error in so recording, any such amount on the Metal Consignor’s books and records shall not limit or otherwise affect the obligations of the Customers hereunder to pay and perform their obligation under the Consignment Facility when due.
Section 2.3.Conversion Options.
(ac)Subject to the provisions hereof, the Customer Agent may elect from time to time to convert an outstanding Floating Rate Consignment to a Fixed Rate Consignment and to convert an outstanding Fixed Rate Consignment to a Floating Rate Consignment, provided that (i) with respect to any such conversion of a Fixed Rate Consignment into a Floating Rate Consignment, such conversion shall only be made on the last day of the Fixed Rate Period with respect thereto; (ii) with respect to any such conversion of a Floating Rate Consignment to a Fixed Rate Consignment, the Customer Agent shall give the Metal Consignor at least three (3) Business Days’ prior written notice (or as otherwise mutually agreed) of the day on which such election is effective; and (iii) no Consignment may be converted into a Fixed Rate Consignment when a Default has occurred and is continuing hereunder.  The Customer Agent shall give to the Metal Consignor notice of its decision to convert an outstanding consignment.  All or any part of outstanding Consignments under the Consignment Facility may be converted as provided herein.  Subject to agreement with respect to any Floating Consignment Fee or Fixed Consignment Fee (to the extent applicable), each such request shall be irrevocable.
(ad)Subject to the provisions hereof, Fixed Rate Consignments may be continued as such upon the expiration of a Fixed Rate Period with respect thereto by the Customer Agent giving to the Metal Consignor notice of the Customers’ decision to continue an outstanding Consignment as such at least three (3) Business Days prior to the day on which such election is effective (or as otherwise mutually agreed); provided that no Fixed Rate Consignment may be continued as such while a Default has occurred and is continuing, but shall be automatically converted to a Floating Rate Consignment on the last day of the first Fixed Rate Period relating thereto ending during the continuance of such Default.  In the event that the Customer Agent does not notify the Metal Consignor of its election hereunder with respect to any Consignment, such Consignment shall be automatically converted to a Floating Rate Consignment at the end of the applicable Fixed Rate Period.
Section 2.1.Indemnity.  In addition to the indemnities provided in Article 12 and Section 16.15 (but without any duplication of remedy or recovery), each Customer shall indemnify the Metal Consignor and hold the Metal Consignor harmless from and against any loss, cost or expense (including loss of anticipated profits) that the Metal Consignor has sustained or incurred as a consequence of (a) default by any Customer in payment of any Fixed Rate Consignments as and when due and payable 
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(including, without limitation, as a result of prepayment or late payment of the purchase price for the Consigned Metal or the acceleration of the Consignment Facility Indebtedness pursuant to the terms of this Agreement), which expenses shall include any such loss or expense arising from interest or fees payable by the Metal Consignor to lenders of funds obtained by it in the ordinary course of business in order to maintain its Fixed Rate Consignments; (b) default by any Customer in taking a Consignment or conversion after the Customer Agent (or any Customer) had given (or pursuant to Section 2.5 is deemed to have given) its request therefor; and (c) the purchase of Consigned Metal bearing a Fixed Consignment Fee or the making of any conversion of any such Consignment to a Floating Rate Consignment on a day that is not the last day of the applicable Fixed Rate Period with respect thereto, including interest or fees payable by the Metal Consignor to lenders of funds obtained by it in the ordinary course of business in order to maintain any such Consignments.

Section 2.2.Maintenance of Consignment Limits.
(ae)If the Consignment Facility Indebtedness at any time exceeds the Consignment Limit, the Customers will promptly, and in any event within five (5) Business Days of the date of the occurrence of such excess, without further notice or demand by the Metal Consignor:
(i)make payment to the Metal Consignor, as provided in Section 2.3(e) hereof, for Consigned Metal having an aggregate value sufficient to result in the remaining Consignment Facility Indebtedness being not more than the Consignment Limit,
(ii)deliver to the Metal Consignor’s pool accounts, loco London, or in a form otherwise agreed by the Metal Consignor, Metal free and clear of all Liens (other than Liens in favor of the Metal Consignor) having an aggregate value (as determined in accordance with Section 2.2 hereof) sufficient to result in the remaining Consignment Facility Indebtedness being not more than the Consignment Limit, or
(iii)engage in any combination of the actions in clauses (i) and (ii) above such that the remaining Consignment Facility Indebtedness does not exceed the Consignment Limit.
(af)Any physical return of Metal to the Metal Consignor shall be at a location as determined by the Metal Consignor in its sole discretion, shall be at the Customers’ expense and risk, and shall only be credited to the Customers’ account upon the Metal Consignor’s assaying the value thereof, which assay shall be undertaken by the Metal Consignor as soon as practicable following physical receipt of such Metal.
(ag)All deliveries and returns of Metal made by the Customers to the Metal Consignor under this Agreement will be free of all Liens, derived in all cases from sources on the LBMA Good Delivery List or as otherwise mutually agreed, and made in accordance with the directions of the Metal Consignor or, in the absence of such directions, in a commercially acceptable manner to the Metal Consignor.  The Customer shall bear the cost of such delivery and shall bear the risk of loss of or damage to such Consignment until delivery is made by it to the Metal Consignor.
(ah)Each Customer hereby authorizes the Metal Consignor to charge such Customer’s account at any time and from time to time for the purpose of paying any amounts which are at any time payable by the Customer under this Section 2.7.
Section 2.3.Late Fee.  If the entire amount of a required purchase price payment and/or consignment fee payment under the Consignment Facility is not paid in full within ten (10) Business Days after the same is due, the Customers shall pay to the Metal Consignor, to the extent permitted by applicable law, by bank wire to a bank of the Metal Consignor’s choice, a late fee on the unpaid amount equal to (x) such amount, multiplied by (y) the Prime Rate plus 2%.
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Section 2.4.Default Rate.  Upon the occurrence and during the continuance of an Event of Default, the then applicable rates at which Floating Consignment Fees and Fixed Consignment Fees are calculated and charged hereunder shall, to the extent permitted by applicable law, at the Metal Consignor’s option, increase by the Prime Rate plus 2% per annum.

Section 2.5.Termination; Return of Consigned Metal.
(ai)The Consignment Facility shall terminate on the Maturity Date.  ALL SUMS OUTSTANDING AND ALL OBLIGATIONS OUTSTANDING UNDER THE CONSIGNMENT FACILITY WILL BE DUE AND PAYABLE UPON THE EARLIER OF (I) THE OCCURRENCE OF AN EVENT OF DEFAULT AND THE METAL CONSIGNOR’S ACCELERATION OF THE OBLIGATIONS AS A RESULT THEREOF, OR (II) THE MATURITY DATE; PROVIDED THAT, IN RESPECT OF ANY CONSIGNMENT WITH A TERM THAT MATURES AFTER THE MATURITY DATE, ALL OBLIGATIONS IN RESPECT THEREOF SHALL BE DUE AND PAYABLE ON THE LAST DAY OF ITS TERM OR THE MATURITY DATE, AS DETERMINED BY THE METAL CONSIGNOR IN ITS DISCRETION AND COMMUNICATED TO THE CUSTOMER AGENT IN WRITING AT LEAST 30 DAYS PRIOR TO THE MATURITY DATE.  Upon termination of the Consignment Facility, the Metal Consignor may credit any amounts then held by it to reduce the amount of the Consignment Facility Indebtedness in accordance with the provisions of Article 13 hereof.  Termination of the Consignment Facility shall not affect the Customers’ duty to pay and perform their Obligations to the Metal Consignor under the Consignment Facility in full.  Notwithstanding termination, until all Obligations have been fully satisfied, the Metal Consignor shall retain the consignment interests and security interests granted under this Agreement and under the Security Documents, and, except for those specific covenants and conditions dealing with the consigning of Metal, all terms and conditions of this Agreement shall remain in full force and effect.
(aj)Upon termination of the Consignment Facility for any reason, the Customer shall immediately upon the effective date of termination (i) make payment for all Consigned Metal theretofore consigned to but not purchased and paid for in full by the Customers under the Consignment Facility, the purchase price thereof to be determined in accordance with Section 2.3(e) hereof; (ii) deliver to the Metal Consignor, to the Metal Consignor’s pool accounts, or in loco London form, any Consigned Metal theretofore consigned to but not purchased and paid for in full by the Customers under the Consignment Facility; or (iii) any combination of the foregoing.  Any physical return of Consigned Metal to the Metal Consignor shall be at the Customers’ expense and risk and shall only be credited to the Customers’ account upon the Metal Consignor’s assaying the value thereof, which assay shall be undertaken by the Metal Consignor as soon as practicable following physical receipt of such Metal.
Section 2.4.Facility Fee.  Customers shall pay to the Metal Consignor monthly within five (5) Business Days after receipt of invoice from the Metal Consignor, a facility fee calculated at the rate of 0.15% per annum on the average daily unused portion of the Consignment Limit during any month (or portion thereof) occurring on or after the Effective Date.
Section 2.5.Commingling.  Subject to Article 4 hereof with respect to the segregation of Stored Metal, and subject to the continuing security interests therein granted by Section 7.1 hereof, the Customers and the Metal Consignor agree that the Customers, in the ordinary course of their business, shall be permitted to commingle Consigned Metals with any other Metals or Metal-containing or other alloys owned or held by the Customers.
Section 2.6.Customer Agent.  For purposes of this Agreement, the Customers (a) authorize the Customer Agent, to make such requests, give such notices or furnish such certificates to the Metal Consignor as may be required or permitted by this Agreement or any Metal Document for the benefit of the Customers and (b) authorize the Customer Agent and the Metal Consignor to treat such requests, notices, certificates or consents given or made by the Customer Agent to have been made, given or 
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furnished by the Customers for purposes of this Agreement. The Metal Consignor shall be entitled to rely on each such request, notice, certificate or consent made, given or furnished by the Customer Agent pursuant to the provisions of this Agreement or any other Metal Document as being made or furnished on behalf of, and with the effect of irrevocably binding, such Customer. Each warranty, covenant, agreement and undertaking made on its behalf by the Customer Agent shall be deemed for all purposes to have been made by each Customer and shall be binding upon and enforceable against each Customer to the same extent as if the same had been made directly by each Customer.
ARTICLE 3
[RESERVED]
ARTICLE 4
SEGREGATED STORAGE FACILITY
Section 4.1.Segregated Storage Facility.  The Metal Consignor may elect in its sole discretion from time to time to deliver to one or more Segregated Storage Facilities identifiable Metal pursuant to this Article 4 (“Stored Metal”); provided, however, that unless the Metal Consignor shall otherwise agree, (a) the Stored Metal shall be delivered in such amounts as may be requested by the Customer Agent provided that the aggregate value of all Stored Metal outstanding and subject to this Article 4 and valued in accordance with the provisions of Section 2.2 hereof shall not exceed the Stored Metal Limit at any time, and (b) deliveries of Stored Metal shall occur no more frequently than on a weekly basis.  Upon delivery of the Metal to a Segregated Storage Facility pursuant to this Section 4.1, the Customer Agent will sign and return to the Metal Consignor a receipt for the Metal so delivered, which receipt shall indicate that the Metal constitutes Stored Metal held for the Metal Consignor’s account pursuant to the terms of this Article 4.  The Customer Agent will hold the Stored Metal in a Segregated Storage Facility, and the Customer Agent will indicate in its books and records that the Stored Metal is owned by and belongs to the Metal Consignor and is being held for the Metal Consignor’s account pursuant to the terms of this Article 4.  Except as hereinafter provided, title to the Stored Metal will at all times remain solely in the Metal Consignor, and neither the Customer Agent nor, for the avoidance of doubt, any Customer:  (a) will acquire any interest in the Stored Metal except as hereinafter permitted; (b) except as permitted in Section 4.2 or 4.3, will remove the Stored Metal from the Segregated Storage Facility; and (c) will create or incur, any Lien whatsoever on any of the Stored Metal, other than any Lien that is claimed by or granted by the Metal Consignor.  Except as provided in Section 4.2, the Stored Metal will not become part of the Customer Agent’s (or, for the avoidance of doubt, any Customer’s) Inventory for any purposes.  
Section 4.2. Periodic Removal of Stored Metal.  Upon notifying the Metal Consignor using the Metal Consignor’s approved notice procedures, the Customer Agent may remove Stored Metal from a Segregated Storage Facility in such quantities as may be required by a Customer for its manufacturing operations; provided, however, all quantities of Stored Metal so removed from the Segregated Storage Facility:  (a) shall immediately and without further action become and be deemed to constitute Consigned Metal under Article 2 of this Agreement and shall be subject to all of the terms and conditions of this Agreement, including Article 2 hereof; or (b) shall be paid for in full upon terms agreed to at such time by the Customer Agent and the Metal Consignor.  If, following removal of the Stored Metal from the Segregated Storage Facility and its designation as Consigned Metal pursuant to Article 2 of this Agreement, the Consignment Limit is exceeded, the Customer Agent will promptly and without further notice from or demand by the Metal Consignor, take such action as is required by Section 2.7 hereof to reduce the amount of Consigned Metal outstanding pursuant to the Consignment Facility to an amount at or below the Consignment Limit.
Section 4.3.Removal of Stored Metal at Request of the Metal Consignor.  From time to time, the Metal Consignor may provide the Customer Agent with reasonable written instructions specifying that a quantity of Stored Metal must be delivered to the Metal Consignor or to a designated third party located in the continental United States and within a 100-mile radius of where such Stored Metal is then located.  Following receipt of such instructions, the Customer Agent shall promptly arrange for the delivery of such quantity of Stored Metal in accordance with such instructions.  Except as provided in Section 4.2 hereof, the Customer Agent may only remove Stored Metal from safekeeping in 
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order to deliver such Stored Metal to the Metal Consignor or to a third party in accordance with the Metal Consignor’s written instructions.  The Customer Agent may only transfer Stored Metal to a third party for the Metal Consignor’s account pursuant to the terms of this Agreement notwithstanding the fact that the Customer Agent may hold other Metal for the Metal Consignor’s account.  
Section 4.4.Stored Metal Not Subject to Fees.  Neither Customer Agent, on the one hand, nor the Metal Consignor, on the other hand, shall be required to pay to the other any consignment fees, market premiums or any other fees with respect to the Stored Metal while it is in a Segregated Storage Facility, and no consignment fees shall be imposed until such time as the Customer Agent removes Stored Metal from its Segregated Storage Facility pursuant to the provisions of Section 4.2 hereof.
Section 4.5.Access to Segregated Storage Facility.  Notwithstanding anything to the contrary in this Agreement, Customer Agent will at all times provide to the Metal Consignor access to each Segregated Storage Facility and to its related premises and related books and records during regular business hours, with or without notice, in order to permit the Metal Consignor to verify compliance with the terms of this Article 4; provided, however, that in the event that the Metal Consignor has a reasonable belief that any removal of Stored Metal from a Segregated Storage Facility is not in compliance with Section 4.2 or 4.3, then the Metal Consignor shall have immediate access to the relevant Segregated Storage Facility and the related premises.  While on the Premises, the Metal Consignor shall follow all generally applicable safety, health and security policies.
Section 4.6.Security Interest.  The Customer Agent and the Metal Consignor agree and intend that all Stored Metal within a Segregated Storage Facility shall be owned solely by the Metal Consignor, and no Customer shall have or be deemed to have any right, title or interest in under and to the Stored Metal; provided, however, that to the extent any Customer is so deemed by operation of law or otherwise to have any right title or interest in, under or to the Stored Metal, such Customer hereby grants to the Metal Consignor a security interest in all right, title and interest of such Customer, if any, in, under and to the Stored Metal to secure the payment and performance of all Obligations contained in this Agreement, including, without limitation, the provisions of this Article 4.  Each Customer hereby agrees that the Metal Consignor is authorized to prepare and file any Uniform Commercial Code financing statements and continuations thereof reasonably deemed necessary or appropriate by the Metal Consignor to evidence its ownership interest and security interest in the Stored Metal.  
Section 4.7.Risk of Loss.  The Customers will be liable to the Metal Consignor for any theft, loss or conversion of any Stored Metal held pursuant to the terms of this Article 4 or for any casualty to any Stored Metal held pursuant to the terms of this Article 4 and will maintain in full force and effect insurance conforming to that required pursuant to Section 9.25(d) hereof in an amount sufficient to cover the Stored Metal and naming the Metal Consignor as a loss payee and as an additional insured as its interest may appear, and will deliver to the Metal Consignor proof that such insurance is in full force and effect prior to the first shipment of Stored Metal pursuant to the terms of this Article 4.
Section 4.8. Waiver of Setoff.  Customer Agent (and, for the avoidance of doubt, each Customer) hereby waives any and all Liens, rights of setoff or other claims against the Stored Metal held for the Metal Consignor pursuant to the terms of this Article 4.
Section 4.9.Termination of Segregated Storage Facility.  All Segregated Storage Facilities shall terminate on the Maturity Date or on such earlier date as the Metal Consignor accelerates the Obligations by reason of the occurrence of an Event of Default hereunder.  In addition, the Customer Agent, on the one hand, or the Metal Consignor, on the other hand, may at any time on thirty (30) days prior written notice to the other terminate any particular Segregated Storage Facility.  Upon termination of a Segregated Storage Facility, Customer Agent shall return at its sole expense and risk to the Metal Consignor in accordance with the Metal Consignor’s reasonable written instruction all Stored Metal that was delivered to the Customers.  Termination of any particular Segregated Storage Facility shall not affect any Customer’s duty to perform its obligations to the Metal Consignor under this Article 4.
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ARTICLE 5
[RESERVED]
ARTICLE 6
CONDITIONS
Section 6.1.Conditions to the Effectiveness of this Agreement.  The effectiveness of this Agreement is subject to the satisfaction (or the Metal Consignor’s waiver) of all of the following conditions precedent:
(a)The Metal Consignor shall have received all applicable fees and expenses required to be paid by the Customers on or before the date hereof;
(b)The representations and warranties set forth in Article 8 hereof shall be true and correct in all material respects on and as of the date hereof;
(c)The Metal Consignor shall have received the fully executed German Precious Metals Agreement and the German Guarantee, each in form and substance satisfactory to Metal Consignor (with the Metal Consignor’s execution and delivery of this Agreement constituting its satisfaction with the receipt and form of the German Precious Metals Agreement and the German Guarantee); and 
(d)No Default or Event of Default, shall have occurred and be continuing.
Section 6.2.Conditions to Transactions.  This Agreement amends and restates in its entirety the Original Agreement and, as of the Effective Date, (i) this Agreement shall supersede and entirely replace the Original Agreement, (ii) all “Consigned Metal” outstanding under the Original Agreement shall constitute Consigned Metal under this Agreement, and (iii) all other “Obligations” outstanding under the Original Agreement shall constitute Obligations outstanding under this Agreement.  From and after the Effective Date, the obligation of the Metal Consignor to make any subsequent Consignments, Metal Hedging Transactions or deliveries under the Segregated Storage Facility is subject to the following conditions precedent:
(e)All representations and warranties of the Customers set forth in this Agreement (except those made as of a specific date) shall be true and correct in all material respects as of the date such Consignment or Metal Hedging Transaction is requested and is to occur or delivery is requested to be made.
(f)After giving effect to such requested Consignment, Metal Hedging Transaction or delivery (both as of the proposed date thereof and, on a pro forma basis as of the last day of the most recent Fiscal Quarter for which financial statements have been delivered to the Metal Consignor), no Default or Event of Default shall have occurred and be continuing, or shall result from the requested transaction.
(g)No Customer is the subject of any voluntary or involuntary petition under any chapter of the Bankruptcy Code, or any proceeding seeking the appointment of a receiver, trustee or custodian of any of its property or business.
(h)No event(s) shall have occurred, and no circumstance(s) shall exist, which individually or in the aggregate with other such circumstances or events, has had, or could reasonably be expected to have, a Material Adverse Effect.
Section 6.1.Customers’ Confirmation.  Each request by the Customer Agent on behalf of a Customer to the Metal Consignor for the delivery of Metal under the Consignment Facility and the Segregated Storage Facility, and for a Metal Hedging Transaction, shall be deemed to be a representation 
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and warranty to the Metal Consignor that the respective conditions specified in Section 6.2 for such Consignment and/or Metal Hedging Transaction has been satisfied.
ARTICLE 7
SECURITY; SUBORDINATION
Section 7.1.Collateral.  The intent of the parties hereto is to create a true Consignment from the Metal Consignor to the Customers and for title to remain with the Metal Consignor; provided, however, that in the event that this Agreement, any other Metal Document or the transactions contemplated hereby or thereby are construed at any time with respect to any Consigned Metal as other than a true Consignment from Metal Consignor to the Customers, then as security for its Obligations, each Customer hereby grants the Metal Consignor a first priority perfected Lien (subject to Liens arising by operation of law) on the Collateral securing all present and future Obligations of such Customer to the Metal Consignor under this Agreement and any Consignment hereunder.  Except as contemplated by the Intercreditor Agreements and any Client-Customer Arrangements, the Obligations of the Customers shall at all times be secured by such first priority perfected Lien on the Collateral.  
Section 7.2.Identification of Collateral.  For the purpose of identifying the Collateral, so long as Metal of a particular Category is subject to any Consignment, all Metal of such Category in the possession or control of each Customer, or Metal of such Category held by a third party for the account of a Customer, shall constitute Collateral notwithstanding that (i) such Metal is in alloyed form or is contained in raw materials, work-in-process, or finished goods, (ii) such Metal was delivered to, or credited to the account of, a Customer by a third party in exchange for or in consideration of Metal delivered by the Metal Consignor to such third party, (iii) such Metal was sold by a Customer to the Metal Consignor and then consigned or loaned back to such Customer pursuant to this Agreement, (iv) such Metal has been commingled with other Inventory of the Customers, or (v) such Metal is otherwise demonstrably not the actual Metal physically delivered by the Metal Consignor.
Section 7.3.Additional Credit Support.  As continuing security for the prompt and punctual payment and performance of all Obligations and/or as may be required by the Metal Intercreditor Agreement, the Customers (or the Customer Agent) shall cause any combination of (a) one or more stand-by letters of credit in favor of the Metal Consignor (or the Collateral Agent), in form and substance reasonably acceptable to the Metal Consignor (or the Collateral Agent), issued and delivered to Metal Consignor by JPMorgan Chase Bank, N.A. or any other domestic bank reasonably acceptable to Metal Consignor, (b) one or more surety, performance or other bonds, in form and substance reasonably acceptable to the Metal Consignor (or the Collateral Agent), or (c) any other type of collateral, including but not limited to cash or precious metal (collectively, “Additional Credit Support”) to be in effect for the benefit of the Metal Consignor (or to the Collateral Agent for the benefit of the Metal Consignor and the other Approved Consignors) in an amount at least equal to the aggregate value (as determined in accordance with Section 2.2 hereof) of any Consigned Metal held at Additional Credit Support Locations.  If the Customers (or the Customer Agent) propose to use any Additional Credit Support referenced in clause (b) or (c) above, then the type and combination of such Additional Credit Support will be subject to the written approval of the Metal Consignor (or the Collateral Agent), in the sole discretion of the Metal Consignor (or the Collateral Agent).
Section 7.4.Intercreditor Agreements.  Notwithstanding any provision contained herein to the contrary, as among the Metal Consignor, the lenders under the Senior Credit Agreement and the Approved Consignors, the priority of security interests and consignment interests of the Metal Consignor under this Agreement shall at all times be subject to, and evidenced and confirmed by, the Intercreditor Agreements.
Section 7.5.Security Documents.  Each Customer agrees to execute and deliver any and all Security Documents, in form and substance reasonably satisfactory to the Metal Consignor and take such action as the Metal Consignor may reasonably request from time to time in order to cause the Metal Consignor to be secured at all times as described in this Agreement.
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ARTICLE 8
REPRESENTATIONS AND WARRANTIES
As a material inducement to the Metal Consignor to enter into this Agreement and to provide Metal and financial accommodations contemplated hereby, each Customer hereby represents and warrants to the Metal Consignor (which representations and warranties shall survive the execution of this Agreement, the Consignments of Metal, the creation of the Segregated Storage Facility, and the entering into of any Metal Hedging Transaction) that:
Section 8.1.Existence and Standing.  Each Customer is a corporation or a limited liability company (as applicable) duly and properly incorporated or organized, validly existing and (to the extent such concept applies to such entity) in good standing or full force and effect under the laws of its jurisdiction of incorporation or organization (as applicable) and has all requisite corporate or limited liability company (as applicable) authority to conduct its business in each jurisdiction in which its business is conducted.
Section 8.2.Authorization and Validity.  Each Customer has the power and authority and legal right to execute and deliver the Metal Documents to which it is a party and to perform its obligations thereunder.  The execution and delivery by each Customer of the Metal Documents to which it is a party and the performance of its obligations thereunder have been duly authorized by proper proceedings, and the Metal Documents to which such Customer is a party constitute legal, valid and binding obligations of such Customer enforceable against such Customer in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and except as the same may be subject to general principles of equity.
Section 8.3.No Conflict; Government Consent.  Neither the execution and delivery by any Customer of the Metal Documents to which it is a party, nor the consummation of the transactions therein contemplated, nor compliance with the provisions thereof will violate (a) any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on such Customer, (b) any Customer’s articles or certificate of incorporation or organization (as applicable) or by-laws, code of regulations or operating agreement (as applicable), or (c) the provisions of any indenture, instrument or agreement to which any Customer is a party or is subject, or by which it, or its property, is bound, or conflict with or constitute a default thereunder, or result in, or require, the creation or imposition of any Lien (other than Permitted Liens) in, of or on the property of such Customer pursuant to the terms of any such indenture, instrument or agreement.  No order, consent, adjudication, approval, license, authorization, or validation of, or filing (other than the filing of the appropriate Security Documents), recording or registration with, or exemption by, or other action in respect of any governmental or public body or authority, or any subdivision thereof, which has not been obtained by a Customer, is required to be obtained by any Customer in connection with the execution and delivery of the Metal Documents, the transactions under this Agreement, the payment and performance by the Customer of the Obligations or the legality, validity, binding effect or enforceability of any of the Metal Documents.
Section 8.4.Security Interest in Collateral.  The provisions of this Agreement and the other Metal Documents (once delivered hereunder) will create legal and valid Liens on all the Collateral in favor of the Metal Consignor, and such Liens will constitute perfected and continuing Liens on the Collateral, securing the Obligations, enforceable against the applicable Customer, and having priority over all other Liens on the Collateral except in the case of (a) Permitted Metal Liens, to the extent any such Permitted Metal Liens would have priority over the Liens in favor of the Metal Consignor pursuant to any applicable law or agreement, (b) Liens perfected only by possession (including possession of any certificate of title) to the extent the Metal Consignor has not obtained or does not maintain possession of such Collateral, and (c) an alteration of such priorities pursuant to the Intercreditor Agreements.
Section 8.5.Financial Statements.  The audited consolidated financial statements of BEM and its Subsidiaries for the period ending on December 31, 2021 heretofore delivered to the Metal Consignor and each of the other financial statements now or hereafter delivered pursuant to Section 9.1 were prepared in accordance with GAAP (as in effect on the date such statements were prepared) and 
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fairly present the consolidated financial condition and operations of BEM and its Subsidiaries at such date and the consolidated results of their operations for the period then ended.
Section 8.6.Material Adverse Change.  Since the date of the most recent financial statements delivered pursuant to Section 9.1 hereof, there has been no change in the business, property, condition (financial or otherwise) or results of operations of the Customers which could reasonably be expected to have a Material Adverse Effect.
Section 8.7.Taxes.  The Customers have filed all U.S. federal, state and local tax returns and all other tax returns which are required to be filed and have paid all material taxes due pursuant to said returns or pursuant to any assessment received by any Customer, except such taxes, if any, that are being contested in good faith by appropriate proceedings and for which the applicable Customer has set aside on its books adequate reserves except to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect.
Section 8.8.Litigation and Environmental Matters.
(a)There are no actions, suits, proceedings or investigations by or before any arbitrator or governmental authority pending against or, to the knowledge of any Customer, threatened against or affecting the Customers (i) as to which there is a reasonable possibility of an adverse determination and that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that question the validity of this Agreement or the transactions contemplated hereby.  There are no labor controversies pending against or, to the knowledge of any Customer, threatened against or affecting any Customer (i) which could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, or (ii) that question the validity of this Agreement or the transactions contemplated hereby.
(b)Except with respect to any matters reflected in the Financial Statements or that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, no Customer (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any judgment, decree, order or other similar requirement of or agreement with any governmental authority or other Person under any Environmental Laws (iii) has received written notice of any claim with respect to any Environmental Liability, the subject of which is unresolved or for which ongoing obligations remain, or (iv) knows of any circumstances, conditions, events or incidents including, without limitation, the release, emission, discharge, presence or disposal of or exposure to any Hazardous Materials that that could reasonably be expected to form the basis of any claim of Environmental Liability against or affecting the Customers.
Section 8.9.Compliance With Laws.  Each Customer is in compliance with all laws, regulations and orders of any governmental authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.
Section 8.10.Investment Company Act.  No Customer is an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.
Section 8.11.Solvency.
(c)Immediately after the making of each Consignment, and after giving effect thereto, (i) the fair value of the assets of each Customer, at a fair valuation, will exceed the debts and liabilities, subordinated, contingent or otherwise, of each Customer; (ii) the present fair saleable value of the property of each Customer will be greater than the amount that will be required to pay the probable liability of each Customer on its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (iii) each Customer will be able to pay its debts 
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and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (iv) each Customer will not have unreasonably small capital with which to conduct the businesses in which it is engaged as such businesses are now conducted and are proposed to be conducted after the date hereof.
(d)The Customers do not intend to and do not believe that they will, incur debts beyond their ability to pay such debts as they mature, taking into account the timing of and amounts of cash to be received by them and the timing of the amounts of cash to be payable on or in respect of its Indebtedness.
Section 8.1.Shared Benefits of Agreement.  Each Customer expects to derive benefit (and its board of directors or other governing body has determined that it may reasonably be expected to derive benefit), directly and indirectly, from the Metal supplied, and financial accommodations extended, by the Metal Consignor to any of the Customers pursuant to this Agreement.  Each Customer has determined that execution, delivery, and performance of this Agreement and any other Metal Documents to be executed by such Customer is within its purpose, will be of direct and indirect benefit to such Customer, and is in its best interest.
Section 8.2.Specifically Designated National and Blocked Persons.  No Customer is, nor to the knowledge of any Customer, is any director, officer, employee or authorized agent of any Customer or Affiliate of any Customer, a Sanctioned Person or located in a Sanctioned Country.  No Customer is in violation of any Sanctions applicable to such Customer and none of the transactions contemplated hereby or by any Metal Document will violate any such Sanctions applicable to it.  Each Customer has implemented and maintains in effect adequate internal procedures reasonably designed to ensure compliance with applicable Sanctions.  No Customer will, directly or indirectly, use the proceeds of the transactions contemplated by this Agreement, or lend, contribute or otherwise authorize the giving or offering of any financial or other advantage to any person, such that the activities, business or person to be funded, at the time of such funding, are subject to Sanctions or in any manner that would result in a violation of any Sanctions.  No Customer nor any of its Affiliates is in violation of any Anti-Terrorism Law or engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any Anti-Terrorism Law.
Section 8.3.Anti-Money Laundering. 
(e)Each Customer is in compliance and will continue to comply with all applicable laws, regulations, rules and government guidance primarily relating to the prevention of money laundering and terrorist financing (collectively “AML Laws”) in any jurisdiction where it operates and provides services;
(f)Each Customer has policies and controls designed to ensure compliance with economic and export sanctions programs and will continue to comply with the applicable economic and export sanctions administered in the local jurisdictions where each such Customer operates and provides services, including, where applicable, the U.S. Treasury Department’s Office of Foreign Asset Control (“OFAC”); 
(g)The Customers maintain policies and procedures designed to ensure that their customers, employees and vendors comply with AML Laws and Sanctions.  Upon the Metal Consignor’s request, each Customer will confirm in writing that such Customer has followed its policies and procedures established to comply with AML Laws and economic sanctions programs; and
(h)Each Customer agrees to notify the Metal Consignor promptly whenever such Customer receives any written notices from any governing or regulatory entity pertaining to such Customer’s alleged non-compliance with AML Laws or OFAC.
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ARTICLE 9
AFFIRMATIVE AND NEGATIVE COVENANTS
From the date hereof and until (a) the Obligations have been paid and performed in full, and (b) the Metal Consignor’s commitments and obligations, have been terminated, each Customer jointly and severally agrees that from and after the date hereof and until the payment and performance in full of all Obligations:
Section 9.1.Financial and Collateral Reporting.  Each Customer will maintain a system of accounting established and administered in accordance with GAAP, and will furnish to the Metal Consignor:
(a)within ninety (90) days after the close of each Fiscal Year of BEM, its audited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all reported on by Ernst & Young LLP or other independent public accountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of BEM and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;
(b)within forty-five (45) days after the end of each of the first three Fiscal Quarters of each Fiscal Year of BEM, BEM’s consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such Fiscal Quarter and the then elapsed portion of the Fiscal Year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous Fiscal Year, all certified by one of its executive officers as presenting fairly in all material respects the financial condition and results of operations of BEM and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes and any matters;
(c)concurrently with any delivery of financial statements under Section 9.1(a) or 9.1(b) above, a certificate of an executive officer of BEM (i) showing the calculations necessary to determine compliance with this Agreement, and (ii) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto;
(d)as soon as available but in any event within twenty (20) days after the close of each Fiscal Month, a certificate as of the last day of such Fiscal Month (each a “Collateral Compliance Certificate”) detailing on a consolidating basis, in form reasonably acceptable to the Metal Consignor, the quantity and location of all Metal owned or otherwise held by the Customers (including all Metal outstanding under Permitted Metals Agreements and all Client Metal subject to any Client-Customer Arrangement) as well as Collateral supporting the Net Marked-to-Market Exposure of all Metal Hedging Transactions; and 
(e)as soon as available, but in any event not more than thirty (30) days prior to the end of each Fiscal Year of BEM, a copy of the plan and forecast (including a projected consolidated and consolidating balance sheet, income statement and funds flow statement) of BEM for the upcoming Fiscal Year; and
(f)promptly following any request therefor, such other information regarding the operations, business affairs and financial condition of the Customers, or compliance with the terms of this Agreement, as the Metal Consignor may reasonably request.
Section 9.2.Use of Consignments.  Each Customer will use the Consigned Metal for general corporate purposes of the Customers not otherwise prohibited by this Agreement.
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Section 9.3.Notices.  Each Customer through the Customer Agent, will give prompt notice in writing to the Metal Consignor of:  (a) the occurrence of any Event of Default; (b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or governmental authority against or affecting any Customer that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; (c) any Lien (other than Permitted Metal Liens) attaching or asserted against any material portion of the Collateral; (d) any loss, damage, or destruction to the Collateral in the amount of $1,000,000 or more, whether or not covered by insurance; (e) the occurrence of any “Default” under the Senior Credit Agreement or any “Event of Default” under any Permitted Metals Agreement which is subject to the Metal Intercreditor Agreement; (f) the occurrence of any “Default” or “Event of Default” under any other Permitted Metal Agreement not described in the preceding clause (e) which has resulted in the exercise or commencement of any creditor remedies thereunder against Metal in the possession, custody or control of any Customer; (g) any corporate reorganization involving any of the Customers; (h) any breaches, threats or incidents related to the physical security or safekeeping of the Collateral of which it becomes aware, and (i) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.  Each notice delivered under this Section 9.3 shall be accompanied by a statement of an executive officer of the Customer Agent setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.
Section 9.4.Conduct of Business.  Each Customer will do or cause to be done (a) all things necessary to preserve, renew and keep in full force and effect its legal existence and (b) take, or cause to be taken, all reasonable actions to maintain the rights, qualifications, licenses, permits, privileges, franchises, governmental authorizations and intellectual property rights material to the conduct of its business, and maintain all requisite authority to conduct its business in each jurisdiction in which its business is conducted, except, in the case of this clause (b), to the extent failure to do so could not reasonably be expected to result in a Material Adverse Effect; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution otherwise permitted by this Agreement.
Section 9.5.Payment of Obligations.  Each Customer will pay its obligations, including tax liabilities, that, if not paid, could result in a Material Adverse Effect before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) such Customer has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect.
Section 9.6.Compliance with Laws and Material Contractual Obligations.  Each Customer will (a) comply with all laws, rules, regulations and orders of any governmental authority applicable to it or its property (including without limitation Environmental Laws) and (b) perform in all material respects its obligations under material agreements to which it is a party, in each case except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.
Section 9.7.Inspections; Field Exams.  Each Customer will permit the Metal Consignor, by its respective employees, representatives and agents, from time to time during normal business hours and without disruption to the Customers’ normal business operations to (a) inspect any of the Metal, the Collateral, and the books, financial records and written policies, records and other documents related to the procedures and controls of such Customer, (b) examine, audit and make extracts or copies of the books of accounts, financial records and written policies, records and other documents related to the procedures and controls of such Customer, (c) have access to its properties, facilities, the Collateral and its advisors, officers, directors and employees to discuss the affairs, finances and accounts of such Customer, and (d) review, evaluate and make test verifications and counts of the Collateral of each Customer, and (e) on not less than forty-eight (48) hours’ notice conduct field exams of each Customer at the sole cost and expense of each Customer.  If an Event of Default has occurred and is continuing, each Customer shall provide such access to the Metal Consignor at all times and without notice and without regard to whether such access will disrupt the Customers’ normal business operations.  During any inspection conducted at a Customer’s Premises, the Metal Consignor will, and will cause its employees, representatives and agents to, comply with all health, safety and security requirements of general application in effect at any such property or location where Collateral or books and records are located. 
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Section 9.8.[Reserved].
Section 9.9.[Reserved].
Section 9.10.Additional Collateral; Further Assurances.
(a)Subject to applicable law, each Customer shall, unless the Metal Consignor otherwise consents, cause each operating Subsidiary of BEM which holds Consigned Metal to become or remain a Customer and become a party to this Agreement by executing a Joinder Agreement.
(b)Without limiting the foregoing, each Customer shall, and shall cause each of BEM’s Subsidiaries which is required to become a Customer pursuant to the terms of this Agreement to, execute and deliver, or cause to be executed and delivered, to the Metal Consignor such other documents and agreements, and shall take or cause to be taken such actions as the Metal Consignor may, from time to time, reasonably request to carry out the terms and conditions of this Agreement and the other Metal Documents.
Section 9.11.Restricted Payments.  No Customer will declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except (a) BEM may declare and pay dividends with respect to its equity interests payable solely in additional shares of its common stock, (b) Subsidiaries of BEM may declare and pay dividends ratably with respect to their equity interests, (c) BEM may make Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans for management or employees of BEM or its Subsidiaries and (d) BEM and its Subsidiaries may make any other Restricted Payment so long as no Default or Event of Default has occurred and is continuing prior to making such Restricted Payment or would arise after giving effect (including pro forma effect) thereto and the aggregate amount of such Restricted Payments does not exceed 10% of Consolidated Net Worth as of the most recently ended Fiscal Quarter of BEM for which financial statements have been delivered; provided that, the foregoing aggregate limitation for Restricted Payments shall not apply as long as the Leverage Ratio does not exceed 2.75 to 1.00 immediately prior to and immediately after giving effect to any such Restricted Payment.
Section 9.12.Indebtedness.  The Customers will not, nor will they permit any other Customer to, create, incur or suffer to exist any Indebtedness, except:
(a)the Obligations;
(b)Indebtedness existing on the date hereof and extensions, renewals and replacements of any such Indebtedness;
(c)Indebtedness of any Customer to any other Customer or to any Subsidiary of BEM;
(d)Guarantees by BEM of Indebtedness of any of its Subsidiaries and by any such Subsidiary of Indebtedness of BEM or any other such Subsidiary;
(e)Indebtedness of any Customer incurred to finance the acquisition, construction or improvement of any assets, including Capitalized Lease Obligations and any Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof, and extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof; provided that the aggregate principal amount of Indebtedness incurred in any Fiscal Year pursuant to this clause (e) shall not exceed $25,000,000;
(f)contingent obligations (i) by endorsement of instruments for deposit or collection in the ordinary course of business, (ii) consisting of the reimbursement obligations in respect of letter of credit obligations permitted by the Senior Credit Agreement, and (iii) consisting of the guarantees of 
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Indebtedness incurred for the benefit of any Subsidiary of BEM if the primary obligation is expressly permitted elsewhere in this Section 9.12;
(g)Indebtedness arising under Swap Agreements and Metal Hedging Transactions having a Net Marked-to-Market Exposure not exceeding $50,000,000, which amount shall include the Swap Agreements and Metal Hedging Transactions in existence on the Effective Date;
(h)Indebtedness arising under this Agreement and all other Permitted Metals Agreements in an aggregate principal amount not to exceed the Aggregate Secured Metal Limit;
(i)Indebtedness arising under or permitted by the Senior Credit Agreement;
(j)unsecured Indebtedness of a Customer (including unsecured Subordinated Indebtedness to the extent subordinated to the Obligations on terms reasonably acceptable to the Metal Consignor) in the form of publicly issued notes, to the extent not otherwise permitted under this Section 9.12, and any Indebtedness of a Customer constituting refinancings, renewals or replacements of any such Indebtedness; provided that (i) both immediately prior to and after giving effect (including giving effect on a pro forma basis) thereto, no Default or Event of Default shall exist or would result therefrom, (ii) such Indebtedness matures after, and does not require any scheduled amortization or other scheduled payments of principal prior to, the date that is 181 days after the Maturity Date (it being understood that any provision requiring an offer to purchase such Indebtedness as a result of change of control or asset sale shall not violate the foregoing restriction), (iii) such Indebtedness is not guaranteed by any Subsidiary of BEM that is not a Customer (which guarantees, if such Indebtedness is subordinated, shall be expressly subordinated to the Obligations on terms not less favorable to the Metal Consignor than the subordination terms of such Subordinated Indebtedness), (iv) the covenants applicable to such Indebtedness are not more onerous or more restrictive in any material respect (taken as a whole) than the applicable covenants set forth in this Agreement and (v) both immediately prior to and after giving effect (including giving effect on a pro forma basis) thereto, the Customers would be in compliance with Section 9.17; and
(k)other unsecured Indebtedness in an amount not in excess of $150,000,000.
Section 9.13.Fundamental Changes and Asset Sales.
(c)No Customer will merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) any of its assets, or any of the equity interests of any of its Subsidiaries (in each case, whether now owned or hereafter acquired), or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Event of Default shall have occurred and be continuing:
(i)any Person may merge into BEM in a transaction in which BEM is the surviving corporation;
(ii)any Customer may merge into any other Customer (provided that any such merger involving BEM must result in BEM as the surviving entity);
(iii)any Customer may sell, transfer, lease or otherwise dispose of its assets to any other Customer;
(iv)each Customer may (A) sell inventory in the ordinary course of business, (B) effect sales, trade-ins or dispositions of equipment that is obsolete or no longer useful in any meaningful way in its business, (C) enter into licenses of technology in the ordinary course of business, and (D) make any other sales, transfers, leases or dispositions that, together with all other property of the Customers previously leased, sold or disposed of during any Fiscal Year of BEM, does not represent property with a book value that (1) is greater than 10% of the Consolidated Total Assets of BEM or (2) is responsible for more than 10% of the consolidated net sales or of the Consolidated Net Income of BEM, 
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in each case, as would be shown in the consolidated financial statements of BEM as at the beginning of the four-quarter period ending with the quarter in which such determination is made (or if financial statements have not been delivered hereunder for that quarter which begins the four quarter period, then the financial statements delivered hereunder for the quarter ending immediately prior to that quarter); 
(v)any Customer may liquidate or dissolve if BEM determines in good faith that such liquidation or dissolution is in the best interests of BEM and is not materially disadvantageous to the Metal Consignor, and all Consigned Metal consigned to such Customer is either returned to the Metal Consignor or purchased and paid for pursuant to this Agreement; provided that no such liquidation or dissolution shall be permitted hereunder that could reasonably be expected to have a Material Adverse Effect; and
(vi)any Customer may engage in:  (A) any sale, transfer, lease or other disposal of accounts receivable (excluding sales or dispositions in a factoring arrangement) in connection with the compromise, settlement or collection thereof; (B) sale and leaseback transactions; (C) any sale, transfer, lease or other disposal resulting from any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of a Customer or any Subsidiary; (D) leases, subleases, licenses or sublicenses of real or personal property in the ordinary course of business, in each case that do not materially interfere with the business of BEM and its Subsidiaries; (E) the termination, surrender or sublease of leases (as lessee), licenses (as licensee), subleases (as sublessee) and sublicenses (as sublicensee) in the ordinary course of business; (F) any sale, transfer, lease or other disposal of fixed assets which are replaced by comparable fixed assets within 180 days of such sale, transfer or lease; (G) any sale, transfer, lease or other disposal of non-core assets, including equity interests; (H) any surrender or waiver of contractual rights or the settlement, release or surrender of contractual rights or other litigation claims in the ordinary course of business; (I) the termination of any Swap Agreement; (J) any like kind exchange of property; and (K) dispositions of cash and cash equivalent investments.
(g)No Customer will engage to any material extent in any business other than businesses of the type conducted by the Customers on the date of this Agreement and businesses reasonably related thereto.
(h)No Customer will change its Fiscal Year from the basis in effect on the date of this Agreement.
Section 9.14.Liens.  No Customer will create, incur, or suffer to exist any Lien in, of, or on any of the Collateral of such Customer, except the following (collectively, “Permitted Liens”):
(d)Liens created pursuant to any Metal Document;
(e)Liens arising in connection with Permitted Metals Agreements subject to the Metal Intercreditor Agreement to the extent required by Section 9.21; 
(f)Liens arising in connection with the Senior Credit Agreement subject to the Lender Intercreditor Agreement;
(g)any Lien on any property or asset of any Customer existing on the date hereof; provided that such Lien shall secure only those obligations which it secures on the date hereof and extensions, renewals and replacements thereof;
(h)any Lien existing on any property or asset prior to the acquisition thereof by any Customer or existing on any property or asset of any Person that becomes a Customer after the date hereof prior to the time such Person becomes a Customer; provided that (i) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Customer, as the case may be, (ii) such Lien shall not apply to any other property or assets of a Customer and (iii) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person 
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becomes a Customer, as the case may be, and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;
(i)Liens on assets acquired, constructed or improved by any Customer; provided that (i) such security interests secure Indebtedness permitted by Section 9.12(e), (ii) the Indebtedness secured thereby does not exceed the cost of acquiring, constructing or improving such assets and (iii) such security interests shall not apply to any other property or assets of the Customer;
(j)Liens for taxes, fees, assessments, or other governmental charges or levies on the Collateral of any Customer if such Liens (i) shall not at the time be delinquent by more than 30 days (after giving effect to any grace period), (ii) are being contested in good faith by appropriate proceedings diligently pursued and for which adequate reserves shall have been provided on the Customer’s books, or (iii) subject to the provisions of Section 9.5, do not secure obligations in excess of $15,000,000 and a stay of enforcement of such Lien is in effect;
(k)Liens imposed by law, such as carrier’s, warehousemen’s, and mechanic’s Liens and other similar Liens arising in the ordinary course of business which secure payment of obligations not more than 30 days past due or which are being contested in good faith by appropriate proceedings diligently pursued and for which adequate reserves shall have been provided on the Customer’s books;
(l)statutory Liens in favor of landlords of real property leased by a Customer; provided that, the Customer is current with respect to payment of all rent and other material amounts due to such landlord under any lease of such real property or is contesting such amounts in good faith by appropriate proceedings;
(m)Liens arising out of pledges or deposits under worker’s compensation laws, unemployment insurance, old age pensions, or other social security or retirement benefits, or similar legislation or to secure the performance of bids, tenders, or contracts (other than for the repayment of Indebtedness) or to secure indemnity, performance, or other similar bonds for the performance of bids, tenders, or contracts (other than for the repayment of Indebtedness) or to secure statutory obligations (other than liens arising under ERISA or Environmental Laws) or surety or appeal bonds, or to secure indemnity, performance, or other similar bonds;
(n)the equivalent of the types of Liens discussed in clauses (g) through (j) above, inclusive, in any jurisdiction in which the Customer is engaged in business or owns property or assets;
(o)Liens arising from judgments or orders under circumstances that do not constitute an Event of Default under Section 10.1(l);
(p)Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business;
(q)Liens arising from precautionary UCC financing statement filings (or similar filings under other applicable law) in connection with operating leases and other ordinary course transactions and which, in each case, do not relate to any Indebtedness;
(r)Liens in favor of or asserted by any Client in Client Metals under or in connection with any Client-Customer Arrangement; and
(s)other Liens not otherwise permitted above so long as the aggregate principal amount of the obligations subject to such Liens does not at any time exceed $20,000,000.
The Permitted Liens referred to in this Section 9.14, excluding those referred to in clauses (e), (g) and (p) above, are referred to in this Agreement as “Permitted Metal Liens”.
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Section 9.15.Change of Name or Location.  No Customer shall (a) change its name as it appears in official filings in the state of its incorporation or organization, (b) change its chief executive office, principal place of business, mailing address, corporate offices or warehouses or locations at which Collateral is held or stored, or the location of its records concerning the Collateral, (c) change the type of entity that it is, (d) change its organization identification number, if any, issued by its state of incorporation or other organization, or (e) change its state of incorporation or organization, in each case, without at least fifteen (15) Business Days’ prior written notice to the Metal Consignor and the Metal Consignor shall have either (i) determined that such event or occurrence will not adversely affect the validity, perfection or priority of the Metal Consignor’s security interest in the Collateral, or (ii) after the Metal Consignor’s written acknowledgement that any reasonable action requested by the Metal Consignor in connection therewith, including to continue the perfection of any Liens in favor of the Metal Consignor in any Collateral, has been completed or taken, and, provided that, with respect to any Customer, any new location shall be in continental U.S.
Section 9.16.Amendments to Agreements.
(a)No Customer will amend or terminate its articles of incorporation, charter, by-laws, code of regulations or other organizational document in any manner that could reasonably be expected to materially and adversely affect the Metal Consignor’s Liens on the Collateral.
(b)The Customers shall not amend, amend and restate, supplement or otherwise modify, or permit to be amended, amended and restated, supplemented or otherwise modified, any of the terms of the Senior Credit Agreement, the Pledge and Security Agreement or any agreements entered into in connection therewith in a manner that could reasonably be expected to have a Material Adverse Effect.
(c)If the Senior Credit Agreement is hereafter amended, refinanced or otherwise replaced (including, without limitation, with an unsecured credit facility), the parties hereto shall negotiate in good faith to make appropriate modifications to this Agreement acceptable to the parties hereto, such that the applicable representations, warranties, agreements, covenants and Events of Default herein conform to their corresponding provisions of such amended, refinanced or replaced credit facility; provided, however, that the Metal Consignor will not be required to make any such modifications to the extent they would affect the Applicable Margin or cause the Metal Consignor to surrender, modify, alter, release or otherwise compromise its security interest in the Collateral.
Section 9.17.Financial Covenants.
(t)Maximum Leverage Ratio.  BEM will not permit the Leverage Ratio determined as of the end of each of its Fiscal Quarters for the then most-recently ended four Fiscal Quarters, to be more than (i) 4.50 to 1.00 for each of the Fiscal Quarters of the 2022 Fiscal Year, (ii) 4.00 to 1.00 for the first and second Fiscal Quarters of the 2023 Fiscal Year, and (ii) 3.50 to 1.00 for each Fiscal Quarter ending thereafter; provided that, with respect to any period occurring on or after the completion of the second Fiscal Quarter of the 2023 Fiscal Year, to the extent BEM or any of its Subsidiaries (x) consummates during any period of four consecutive Fiscal Quarters for which financial statements are available one or more acquisitions for which the aggregate consideration, including assumed debt, for all such acquisitions, is $100,000,000 or more and (y) within 30 days of consummating such acquisition or acquisitions referred to in clause (x) of this proviso, BEM notifies the Metal Consignor that BEM elects to increase the maximum Leverage Ratio threshold as a result thereof, then the maximum Leverage Ratio threshold for the Fiscal Quarter in which such election is made by BEM and the immediately three following Fiscal Quarters shall be increased to 4.00 to 1.00.  Not more than one such election may be made by BEM.
(u)Minimum Interest Coverage Ratio.  BEM will not permit the Interest Coverage Ratio, determined as of the end of each of its Fiscal Quarters for the then most-recently ended four Fiscal Quarters, to be less than 3.00 to 1.00.
Section 9.18.Subordination of Intercompany Notes.  All Indebtedness evidenced by an intercompany note, together with all accrued interest thereon, and any other indebtedness for borrowed 
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money now owing or which hereafter may become owing by or from a Customer to any other Customer, howsoever such Indebtedness may be hereafter created, extended, renewed or evidenced, together with all accrued interest thereon and any and all other obligations and liabilities of any kind owing by or from a Customer to any other Customer shall at all times and in all respects be subordinate and junior in right of payment to any and all obligations, liabilities and indebtedness of any kind of the Customers to the Metal Consignor including, without limitation, the Obligations, and any extensions, renewals, modifications, and amendments thereof and all accrued interest thereon and any fees owing by the Customers to the Metal Consignor; provided, however, that the Customers may make payments in respect of intercompany notes as long as such payment will not result in an Event of Default.
Section 9.19.[Reserved].
Section 9.20.Consigned Metal.  No Customer shall grant any security interest or ownership rights to any of its customers with respect to any of the Consigned Metal whether or not such customers have prepaid orders for the Consigned Metal or any products or property which does or will include the Consigned Metal.  Notwithstanding the foregoing, the parties agree that any Client may file financing statements or other public notices with respect to any Client Metal subject to any Client-Customer Arrangement.
Section 9.21.Metal Intercreditor Agreement.
(i)No Customer shall obtain Metal on a secured basis (whether styled as a consignment, loan, conditional sale or other secured financing) from any supplier, lender, consignor or financial institution other than the Metal Consignor unless (i) no Metal of the same Category is outstanding on Consignment to any Customer under Article 2 hereof, or (ii) such other supplier, lender, consignor or financial institution executes and delivers to the Metal Consignor a counterpart or joinder to the Metal Intercreditor Agreement in form and substance reasonably acceptable to Collateral Agent.
(j)Notwithstanding any provision contained in this Agreement to the contrary, if any Customer holds any Metal of a particular Category on a secured basis (whether styled as a consignment, loan, conditional sale or other secured financing) pursuant to any Permitted Metals Agreement (other than this Agreement), the Customers will not have the right to obtain Consignments of the same Category of Metals under this Agreement unless the supplier, lender, consignor or financial institution under such Permitted Metals Agreement executes and delivers to the Metal Consignor an intercreditor agreement (which may be the Metal Intercreditor Agreement) in form and substance reasonably acceptable to the Metal Consignor.  In its capacity as Metal Consignor (and not as the Collateral Agent) or in the event Metal Consignor no longer serves as the Collateral Agent, Metal Consignor agrees that, notwithstanding any provision of this Agreement to the contrary, to the extent the Customers (or any of them) provide security, certificates of insurance, credit support, access rights, appraisals, reports, notices or any other items directly to the Collateral Agent for the benefit of the Approved Consignors, the Customers will not be required to provide any such items to the Metal Consignor hereunder, including, without limitation:  (i) Additional Credit Support as contemplated by Section 7.3; (ii) financial reports and certifications as contemplated by Section 9.1; (iii) any notices contemplated by Section 9.3; (iv) the right to conduct inspections or field exams as contemplated by Section 9.7; (v) notices with respect to Permitted Metals Agreements as contemplated by Section 9.24; and (vi) insurance coverage and certificates of insurance as contemplated by Section 9.25.  
(k)Notwithstanding anything to the contrary set forth in this Agreement, the foregoing Sections 9.21(a) and 9.21(b) shall not apply to any Metal that a Customer obtains from any supplier, lender, consignor or financial institution on an unsecured basis, and each Customer shall be entitled to obtain any Category of Metals on an unsecured basis from any supplier, lender, consignor or financial institution.  For purposes of this Section 9.21(c) only, the parties to this Agreement agree that the Lease, dated as of December 20, 2006, between WAM and BASF Corporation (as the assigned of BASF Catalysts, LLC), as amended, modified or restated from time to time (the “BASF Lease”), will be deemed unsecured; provided, however, that the Customers shall ensure that the aggregate value of the metals consigned or leased under the BASF Lease does not exceed $100,000,000.
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(l)For the avoidance of doubt, each Customer shall be entitled to (i) purchase Metals for cash from any Person, and (ii) enter into Client-Customer Arrangements in the ordinary course of such Customer’s business.
Section 9.22.[Reserved].
Section 9.23.Location of Metal.
(v)The Customers shall at all times maintain one hundred percent (100%) of the Consigned Metal physically located at (i) one or more Approved Locations, (ii) in transit between any Approved Locations, or (iii) in transit to Metal Consignor.
(w)The Customers shall not permit the value (as determined pursuant to Section 2.2 hereof) of all Metal of the Customers in the possession of, or in transit to, Approved Refiners/Fabricators to exceed $100,000,000 at any time (or such other amount as may be approved by the Metal Consignor or the Collateral Agent from time to time).
(x)The Customers shall not permit the value (as determined pursuant to Section 2.2 hereof) of all Metal of the Customers in the possession of, or in transit to, Approved Subconsignees to exceed $50,000,000 at any time (or such other amount as may be approved by the Metal Consignor or the Collateral Agent from time to time).
Section 9.24.Permitted Metals Agreements.
(l)The Customers shall provide the Metal Consignor with (i) prompt written notice of each Permitted Metals Agreement entered into by any Customer from time to time, (ii) a copy of each Permitted Metals Agreement, (iii) notice of any Lien filed in connection with a Permitted Metals Agreement, and (iv) such additional information as the Metal Consignor may reasonably request from time to time with respect to all Permitted Metals Agreements.
(m)(i)    The Customers shall ensure that (A) the aggregate value (determined in accordance with Section 2.2 hereof) of all Metal held by the Customers (which may include Metal obtained or held by any Customer pursuant to this Agreement, any Permitted Metal Agreement and any Client-Customer Arrangement) at all Approved Locations or in transit between Approved Locations, plus the amount of Additional Credit Support in excess of the Net Marked-to-Market Exposure of all Metal Hedging Transactions, at all times equals or exceeds (B) the sum of: (1) the aggregate value (determined in accordance with Section 2.2 hereof) of Consigned Metal consigned or leased to the Customers under this Agreement, plus (2) the aggregate value (determined in accordance with Section 2.2 hereof) of Metal outstanding to the Customers under all Permitted Metals Agreements (other than this Agreement), plus (3) the aggregate value (determined in accordance with Section 2.2 hereof) of Metal outstanding to the Customers under any Client-Customer Arrangement.
(i)If it is determined that a Physical Metal Deficiency (as defined below) exists, then within forty-five (45) days of the Customer Agent becoming aware of such Physical Metal Deficiency, the Customers shall (A) purchase or otherwise acquire Equity Metal, or (B) increase the amount of Additional Credit Support, or (C) provide a Collateral Compliance Certificate evidencing a reduction in such Physical Metal Deficiency, or (D) engage in any combination of the foregoing, to the extent necessary to cure such Physical Metal Deficiency.  During such forty-five (45)-day period, the Customer’s failure to comply with Section 9.24(b)(i) shall not be deemed to be a Default under this Agreement.  As used in this Agreement, the term “Physical Metal Deficiency” means the amount, if any, by which (1) the amount determined pursuant to Section 9.24(b)(i)(B) exceeds (2) the amount determined pursuant to Section 9.24(b)(i)(A).  Notwithstanding anything to the contrary in this Section 9.24(b)(ii), if the amount of the Physical Metal Deficiency equals or exceeds $20,000,000, the Customers shall have five (5) Business Days to cure such Physical Metal Deficiency in accordance with this Section 9.24(b)(ii).   
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(y)The Customers shall ensure that at all times the Aggregate Secured Metal Facility Indebtedness does not exceed the Aggregate Secured Metal Limit.
Section 9.25.Insurance and Safekeeping.
(m)The Customers will bear all risk of loss, damage or disappearance from any cause whatsoever (including, but not limited to, that resulting from fire, theft by any means including fraud, accidental damage and transit risks, confiscation, expropriation, nationalization, deprivation, war, riots, strikes and civil commotion) with respect to the Consigned Metal or Stored Metal from the time delivered by the Metal Consignor until returned to the Metal Consignor or purchased by the Customer, as provided in this Agreement.  Each Customer hereby acknowledges and agrees that it will implement controls consistent with appropriate standards for its industry, including monitoring, detecting, assessing, reporting and responding to security threats or incidents.
(n)Until such time as the Consigned Metal or Stored Metal being returned to the Metal Consignor has been received by Metal Consignor, or purchased by the Customer, as provided in this Agreement, the Customer will afford the Consigned Metal or Stored Metal no less safekeeping protection than it affords Metal held for its own account.
(o)If the Metal Consignor delivers written notice to the Customer Agent setting forth the basis for its reasonable belief that an Approved Storage Facility Location offers inadequate safekeeping protection for the Stored Metal, the applicable Customer shall transfer all Stored Metal, contained at such Approved Storage Facility Location to another Approved Storage Facility Location (if any) within ten (10) days following receipt of such notice.  If the Collateral Agent and Metal Consignor jointly deliver written notice to the Customer Agent setting forth the basis for their reasonable belief that an Approved Location offers inadequate safekeeping protection for the Consigned Metal, the applicable Customer shall:  (i) with respect to Approved Locations that are not Approved Refiner/Fabricator Locations or Approved Subconsignee Locations, transfer all Consigned Metal contained at such Approved Location to another Approved Location within ten (10) days following receipt of such notice, and (ii) with respect to Approved Refiner/Fabricator Locations or Approved Subconsigneee Locations, use its commercially reasonable efforts to transfer all Consigned Metal contained as such Approved Location to another Approved Location as quickly as possible taking into account the reasonable completion of outstanding or committed refining, fabrication or other third party activities undertaken in the ordinary course of business.
(p)Each Customer will arrange and maintain insurance coverage reasonably acceptable to the Metal Consignor on the Consigned Metal and Stored Metal in such amounts and covering such risks as is usually carried by companies engaged in a similar business.  Without limiting the foregoing, each Customer will maintain all risk property/cargo insurance sufficient to cover the Consigned Metal and Stored Metal on a replacement cost basis and insurance to cover theft of the Consigned Metal or Stored Metal by any means, including via computer, and the Metal Consignor will be included as a loss payee under this insurance.  The Customer Agent shall, upon request, deliver to the Metal Consignor evidence of such insurance, including but not limited to a certificate of insurance, and such certificate of insurance will provide that the insurer will provide thirty (30) days’ prior written notice of cancellation, non-renewal or material modification to the Metal Consignor and note the Metal Consignor as a loss payee.
ARTICLE 10
EVENTS OF DEFAULT AND ACCELERATION
Section 10.1.Events of Default.  In each case of the occurrence of any one or more of the following events (each of which is herein called an “Event of Default”):
(a)any representation or warranty made or deemed made by or on behalf of a Customer herein or in any of the Metal Documents or in any certificate, statement or agreement furnished in writing by the Customers in connection with this Agreement or any Metal Document shall prove to be false or misleading in any material respect; or
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(b)default in the payment of any Obligation, when the same shall become due and payable, whether at the due date thereof or at a date fixed for payment or by acceleration or otherwise and continuation thereof for a period of two (2) Business Days; or
(c)(i) default by any Customer in the due observance or performance of, or compliance with, any covenant or agreement contained in any of Section 9.2, 9.3 or 9.4 (with respect to a Customer’s legal existence), Section 9.7, Sections 9.11 through 9.21, inclusive, or Section 9.24(b); or (ii) default by any Customer in the due observance or performance of, or compliance with, any covenant or agreement contained in Section 4.3 and continuance of such default for two (2) Business Days after occurrence; or (iii) default by any Customer in the due observance or performance of, or compliance with, any covenant or agreement contained in Section 9.23 and continuance of such default for five (5) Business Days after occurrence; or 
(d)default by any Customer (other than a default which constitutes an Event of Default under another subsection of this Section 10.1) in the due observance or performance of, or compliance with, any other covenant, condition or agreement to be observed or performed pursuant to the terms of this Agreement or pursuant to the terms of any other Metal Document and which default shall continue unremedied for thirty (30) days after Customer Agent’s receipt of written notice thereof from the Metal Consignor; or|
(e)any Customer shall (i) make an assignment for the benefit of creditors; or (ii) file or suffer the filing of any voluntary or involuntary petition under any chapter of the Bankruptcy Code by or against any Customer; provided, however, that the involuntary filing of a petition in bankruptcy against a Customer shall not constitute an Event of Default unless such Customer fails to object and the petition is not stayed or discharged within sixty (60) days after the filing thereof; or (iii) apply for or permit the appointment of a receiver, trustee or custodian of any of the property or business of any Customer; or (iv) become insolvent or suffer the entry of an order for relief under the Bankruptcy Code; or (v) make an admission in writing of its inability to pay its debts as they become due; or
(f)the occurrence of any loss, theft, destruction of or damage to any of the Consigned Metal or Stored Metal which is not either adequately covered by insurance payable to the Metal Consignor or paid for by the Customer as provided in this Agreement within fifteen (15) days of such occurrence; or
(g)the occurrence of any attachment of any Lien (other than a Permitted Metal Lien) on any of the Consigned Metal or Stored Metal; or
(h)the occurrence of any attachment of any Lien (other than a Permitted Metal Lien) on any other Collateral and such attachment shall not be discharged within thirty (30) days of the date such attachment was made; or
(i)(i) an “Event of Default” shall occur under and as defined in the Senior Credit Agreement; (ii) an “Event of Default” shall occur under and as defined in any Permitted Metals Agreement that is subject to the Metal Intercreditor Agreement; or (iii) a default shall occur with respect to any evidence of Material Indebtedness of any Customer (which may include any Metal Hedging Transaction if the Indebtedness covered thereby qualifies as Material Indebtedness at the time of determination), if the effect of such default is to accelerate the maturity of such Material Indebtedness or to permit the holder thereof to cause such Material Indebtedness to become due prior to the stated maturity thereof; or if any Material Indebtedness of any Customer is not paid, when due and payable, whether at the due date thereof or a date fixed for prepayment or otherwise; or
(j)any Change in Control shall occur; or
(k)(i) any guarantee issued in favor of the Metal Consignor in accordance with the German Precious Metals Agreement (a “German Guarantee”) shall fail to be in full force and effect, or any Customer or applicable guarantor thereunder otherwise ceases to guarantee the obligations of MAMG 
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under the German Precious Metals Agreement in accordance with the terms thereof or (ii) the Metal Consignor exercises any of its available rights or remedies under any German Guaranty due to a failure by MAMG to make a payment to Metal Consignor in accordance with the term of the German Precious Metals Agreement, and Metal Consignor fails to receive payment or satisfaction in full under such German Guarantee pursuant to the terms of and within the time period specified therein; or
(l)one or more judgments for the payment of money in an aggregate amount in excess of $20,000,000 (or the equivalent thereof in currencies other than dollars) shall be rendered against any Customer and the same shall remain undischarged for a period of thirty (30) consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the Customer to enforce any such judgment; or
(m)(i) any Security Document or this Agreement shall for any reason (other than the Metal Consignor’s negligence) fail to create a valid and perfected first priority security interest in any material portion of the Collateral purported to be covered thereby, except as permitted by the terms of any Metal Document, or (ii) any Security Document shall fail to remain in full force or effect or any action shall be taken by a Customer or other party thereto (other than the Metal Consignor) to discontinue or to assert the invalidity or unenforceability of any Security Document; or
(n)any material provision of any Metal Document for any reason ceases to be valid, binding and enforceable in accordance with its terms, or any Customer shall challenge the enforceability of any Metal Document (including, without limitation, any Intercreditor Agreement) or shall assert in writing, or engage in any action or inaction based on any such assertion, that any provision of any of the Metal Documents has ceased to be or otherwise is not valid, binding and enforceable in accordance with its terms; or
(o)the Customers shall fail to maintain the Additional Credit Support as required by Section 7.3, or the issuer of any Additional Credit Support shall seek to adversely modify, revoke or terminate its liability thereunder, or any governmental agency shall seek to limit, defer, postpone or terminate the Metal Consignor’s rights or the issuer’s liability under any Additional Credit Support, and such matter shall continue for ten (10) Business Days after occurrence, unless the Customers have demonstrated to the Metal Consignor’s reasonable satisfaction that the loss of such Additional Credit Support is adequately offset by other Collateral;
then in any such event, immediately upon the occurrence of the Event of Default set forth in clause (e) above, and during the continuance of such Event of Default, at the option of the Metal Consignor in all other cases, (i) the obligations of the Metal Consignor hereunder shall terminate, (ii) the Customers shall promptly return to the Metal Consignor all Consigned Metal theretofore consigned to but not purchased and paid for by the Customers, (iii) the Customer Agent shall promptly return to the Metal Consignor all Stored Metal not purchased and paid for by any Customer and shall otherwise grant, or cause any applicable Customer to grant, the Metal Consignor immediate access to any Stored Metal in order to allow for the Metal Consignor’s recovery thereof, (iv) all the Customers’ obligations to the Metal Consignor (including, without limitation, those under the Consignment Facility, the Segregated Storage Facility and any Metal Hedging Transactions) shall become immediately due and payable without presentment, demand or notice, all of which are hereby expressly waived, notwithstanding any credit or time allowed to the Customers or any instrument evidencing the Customers’ Obligations to the Metal Consignor; (v) the Metal Consignor may draw against any Additional Credit Support securing this Agreement; and (vi) the Customers shall deliver cash collateral to the Metal Consignor equal to the Net Marked-to-Market Exposure of all Metal Hedging Transactions to be held by the Metal Consignor and on such terms and conditions as shall be satisfactory to the Metal Consignor in its sole discretion.  The Metal Consignor shall in addition have all of the rights and remedies of a secured party under the Uniform Commercial Code with respect to any Collateral now or hereafter securing the Customer’s Obligations hereunder.  The Customers shall, at the Metal Consignor’s request, immediately assemble all such Collateral and Metal, and the Metal Consignor may go upon the Customer’s Premises to take immediate possession thereof.
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Section 10.2.Waiver.  No failure or delay on the Metal Consignor’s part to exercise or to enforce any of the Metal Consignor’s rights hereunder or under any other instruments or agreement evidencing the Customers’ Obligations to the Metal Consignor or to require strict compliance with the terms hereof or thereof in any one or more instances and no course of conduct on the Metal Consignor’s part shall constitute or be deemed to constitute a waiver or relinquishment of any such rights hereunder unless it shall have signed a waiver thereof in writing and no such waiver, unless expressly stated therein, shall be effective as to any transaction which occurs after the date of such waiver or as to any continuance of a breach after such waiver.  The Metal Consignor’s rights hereunder shall continue unimpaired notwithstanding any extension of time, compromise or other indulgence granted by the Metal Consignor to the Customers with respect to the Customers’ Obligations to the Metal Consignor or any instrument given the Metal Consignor in connection therewith, and each Customer hereby waives notice of any such extension, compromise or other indulgence and consent to be bound thereby as if they had expressly agreed thereto in advance.
ARTICLE 11
AMENDMENTS/WAIVERS
This Agreement (including the Schedules hereto) and the other Metal Documents constitute the entire agreement of the parties herein and supersede any and all prior agreements, written or oral, as to the matters contained herein (including the Original Agreement), and no modification or waiver of any provision hereof or of any Metal Document, nor consent to the departure by the Customers therefrom, shall be effective unless the same is in writing, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given.
ARTICLE 12
INDEMNIFICATION
Each Customer, jointly and severally, agrees to indemnify and hold harmless the Metal Consignor and each of its Affiliates and any of their respective officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against any Indemnified Liabilities that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or related to  this Agreement, the Security Documents or any other Metal Documents executed or delivered in connection herewith or any early termination thereof, and any related documents or the transactions contemplated hereby or thereby, including but not limited to: (a) any Indemnified Liabilities arising out of or relating to a breach, act, or omission by or of the Customer Agent, any Customer, any Approved Refiner/Fabricator, any Approved Subconsignee or any of their respective Affiliates, or any third party having custody over any Metal in any location or in transit, including any Approved Location, Approved Storage Facility Location or Approved Subconsignee Location; (b) any violation of applicable law; or (c) any incorrect, incomplete or untrue information or documentation provided by or through any Customer in connection with the storage of the Metals; except to the extent that such Indemnified Liability is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct.  In any such litigation, or preparation therefor, the Metal Consignor shall be entitled to select a single firm for its own counsel and, in addition to the foregoing indemnity, each Customer agrees to pay promptly the reasonable fees and expenses of such counsel, except to the extent that such expenses related to the litigation have been determined in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct.  This indemnification shall survive and continue for the benefit of all Indemnified Parties.
ARTICLE 13
SETOFF
Each Customer hereby grants to the Metal Consignor, a continuing Lien and right of setoff as security for all liabilities and obligations to the Metal Consignor, whether now existing or hereafter arising, upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Metal Consignor.  At any time upon the occurrence and during the continuance of an Event of Default, without demand or notice (any such notice being expressly waived by 
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each  Customer), but without any duplication in recovery, the Metal Consignor may setoff the same or any part thereof and apply the same to any liability or obligation of any Customer even though unmatured and regardless of the adequacy of any other Collateral (other than obligations and liabilities under any Metal Hedging Transaction which are adequately cash-collateralized).  ANY AND ALL RIGHTS TO REQUIRE THE METAL CONSIGNOR TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF THE CUSTOMER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED BY EACH CUSTOMER.
ARTICLE 14
ASSIGNMENTS
Section 14.1.Assignment by Customers.  The rights of the Customers under this Agreement may not be assigned to any third party without the prior written consent of the Metal Consignor.  All covenants and agreements of the Customers contained herein shall bind the Customers and their successors and assigns, and shall inure to the benefit of the Metal Consignor, its successors and assigns.  Subject to and without limitation of Sections 14.2 and 14.3, Metal Consignor may at any time assign or transfer all or any of its rights and/or obligations hereunder, provided such assignment or transfer is to its successors in title or to a wholly-owned subsidiary, an Affiliate, or a branch or office of Metal Consignor and each such assignee is entitled to rely on the provisions contained in this Article 14.
Section 14.2.Participations.  
(a)The Metal Consignor shall have the unrestricted right at any time and from time to time, and without the consent of or notice to the Customers, to grant to one or more banks or other financial institutions (each, a “Participant”) participating interests in the Metal Consignor’s obligations under this Agreement (other than the Segregated Storage Facility) and/or any or all of the commitments held by the Metal Consignor under this Agreement (other than the Segregated Storage Facility).  In the event of any such grant by the Metal Consignor of a participating interest to a Participant, whether or not upon notice to the Customers, Metal Consignor shall remain responsible for the performance of its obligations hereunder and the Customers shall continue to deal solely and directly with Metal Consignor in connection with Metal Consignor’s rights and obligations hereunder.  Subject to the terms and provisions of any Metal Document, the Metal Consignor may furnish any information concerning the Customers in its possession from time to time to prospective Participants, provided that Metal Consignor shall require any such prospective Participant to agree in writing to maintain the confidentiality of such information;
(b)The Metal Consignor may sell participations to a Participant in all or a portion of such Metal Consignor’s rights and obligations under this Agreement (including all or a portion of its commitment to consign Metal); provided that each of the Customers and the Metal Consignor must give its prior written consent to the sale of such participation (which consent shall not be unreasonably withheld but which consent must be obtained prior to the release of any information to such participant); and provided further that any consent of the Customers otherwise required under this Section shall not be required if an Event of Default has occurred and is continuing.  In addition, any sale of a participation shall provide that (i) such Metal Consignor’s obligations under this Agreement shall remain unchanged, (ii) such Metal Consignor shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Customers shall continue to deal solely and directly with the Metal Consignor in connection with the rights and obligations of the parties under this Agreement.  Any agreement or instrument pursuant to which the Metal Consignor sells such a participation shall provide that the Metal Consignor shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement.
Section 14.3.Pledges.  The Metal Consignor may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or 
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assignment of a security interest shall release the Metal Consignor from any of its obligations hereunder or substitute any such assignee for such Metal Consignor as a party hereto.
ARTICLE 15
EXPENSES
The Customers shall pay upon demand all reasonable out-of-pocket expenses of the Metal Consignor in connection with the preparation, administration, collection, waiver or amendment of credit terms, or in connection with the Metal Consignor’s exercise, preservation or enforcement of any of its rights or remedies hereunder and under the Security Documents, including, without limitation, reasonable fees of outside legal counsel or the allocated costs of in-house legal counsel, accounting, consulting, brokerage or other costs relating to any appraisals or examinations conducted in connection with the loan and consignment or any Collateral therefor, and the amount of all such expenses shall, until paid, bear interest at the rate applicable to principal hereunder (including any applicable default rate specified in this Agreement) and be an obligation secured by any Collateral.
ARTICLE 16
GOVERNING LAW; JURY TRIAL WAIVER; CONSENT TO JURISDICTION; MISCELLANEOUS
Section 16.1.Governing Law.  This Agreement and the rights and obligations of the parties hereunder shall be construed and interpreted in accordance with the laws of the State of New York (excluding the laws applicable to conflicts or choice of law).  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.
Section 16.2.Forum; Waiver of Jury Trial.  EACH CUSTOMER HEREBY IRREVOCABLY AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS AGREEMENT OR ANY OF THE OTHER METAL DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON CUSTOMER BY MAIL AT THE CUSTOMER’S ADDRESS SET FORTH IN THIS AGREEMENT.  EACH CUSTOMER HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT FORUM.  EACH CUSTOMER AND THE METAL CONSIGNOR MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER METAL DOCUMENTS AT ANY TIME EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF THE METAL CONSIGNOR RELATING TO THE ADMINISTRATION OF THE CONSIGNMENTS, THE METAL HEDGING TRANSACTIONS, AND THE SEGREGATED STORAGE FACILITY, OR ENFORCEMENT OF THE METAL DOCUMENTS, AND AGREE THAT NEITHER PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED.  EXCEPT AS PROHIBITED BY LAW, EACH CUSTOMER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES.  EACH CUSTOMER CERTIFIES THAT NO REPRESENTATIVE OF METAL CONSIGNOR OR ATTORNEY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE METAL CONSIGNOR WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER.  THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR THE METAL CONSIGNOR TO ACCEPT THIS AGREEMENT AND EXTENDS THE FACILITIES HEREUNDER.
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Section 16.3.Usury.  All agreements between the Customers and the Metal Consignor are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of maturity of the Indebtedness or Obligations evidenced hereby or otherwise, shall the amount paid or agreed to be paid to the Metal Consignor for the use or the forbearance of the Indebtedness or Obligations evidenced hereby exceed the maximum permissible under applicable law.  As used herein, the term “applicable law” shall mean the law in effect as of the date hereof provided, however that in the event there is a change in the law which results in a higher permissible rate of interest, then this Agreement shall be governed by such new law as of its effective date.  In this regard, it is expressly agreed that it is the intent of the Customers and the Metal Consignor in the execution, delivery and acceptance of this Agreement to contract in strict compliance with the laws of the State of New York from time to time in effect.  If, under or from any circumstances whatsoever, fulfillment of any provision hereof or of any of the other Metal Documents at the time of performance of such provision shall be due, shall involve transcending the limit of such validity prescribed by applicable law, then the obligation to be fulfilled shall automatically be reduced to the limits of such validity, and if under or from circumstances whatsoever the Metal Consignor should ever receive as interest and amount which would exceed the highest lawful rate, such amount which would be excessive interest shall be applied to the reduction of the non-interest portion of the Obligations evidenced hereby and not to the payment of interest.  This provision shall control every other provision of all agreements between the Customers and the Metal Consignor.
Section 16.4. Additional Costs.  If any present or future applicable law, which expression, as used herein, includes statutes, rules and regulations thereunder and interpretations thereof by any competent court or by any governmental or other regulatory body or official charged with the administration or the interpretation thereof and requests, directives, instructions and notices at any time or from time to time hereafter made upon or otherwise issued to the Metal Consignor by any central bank or other fiscal, monetary or other authority (whether or not having the force of law), shall:
(a)subject the Metal Consignor to any tax (except for taxes on income or profits), levy, impost, duty, charge, fee, deduction or withholding of any nature with respect to the making of Fixed Rate Consignments, or
(b)materially change the basis of taxation (except for changes in taxes on income or profits) of payments to the Metal Consignor of the principal of or the interest on Fixed Rate Consignments or any other amounts payable to the Metal Consignor under this Agreement for Fixed Rate Consignments, or
(c)impose or increase or render applicable (other than to the extent specifically provided for elsewhere in this Agreement) any special deposit, reserve, assessment, liquidity, capital adequacy or other similar requirements (whether or not having the force of law) against assets held by, or deposits in or for the account of, or loans by, or commitments of the Metal Consignor as they relate to this Agreement, or
(d)impose on the Metal Consignor any other conditions or requirements with respect to Fixed Rate Consignments or any class of commitments of which any of Fixed Rate Consignments form a part;
(e)and the result of any of the foregoing is:
(i)to increase the cost to the Metal Consignor of making, funding, issuing, renewing, extending or maintaining any of the Fixed Rate Consignments, or
(ii)to reduce the amount of principal, interest or other amount payable to the Metal Consignor hereunder on account of any of the Fixed Rate Consignments, or
(iii)to require the Metal Consignor to make any payment or to forego any interest or other sum payable hereunder, the amount of which payment or foregone interest or other sum 
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is calculated by reference to the gross amount of any sum receivable or deemed received by the Metal Consignor for the Customers hereunder,
then, and in each such case, the Customers will, upon demand by the Metal Consignor, at any time and from time to time and as often as the occasion therefor may arise, pay to the Metal Consignor such additional amounts as will be sufficient to compensate the Metal Consignor for such additional cost, reduction, payment or foregone interest or other sum.
Section 16.5.Capital Adequacy.  If any present or future law, governmental rule, regulation, policy, guideline or directive (whether or not having the force of law) or the interpretation thereof by a court or governmental authority with appropriate jurisdiction affects the amount of capital required or expected to be maintained by the Metal Consignor or any corporation controlling the Metal Consignor and the Metal Consignor determines that the amount of capital required to be maintained by them, or any of them, is increased by or based upon the existence of Fixed Rate Consignments made or deemed to be made pursuant hereto or the commitments of the Metal Consignor hereunder, then the Metal Consignor may notify the Customer of such fact, and the Customers shall pay to the Metal Consignor from time to time upon demand, as an additional fee payable hereunder, such amount as the Metal Consignor shall determine and certify in a notice to the Customers to be an amount that will adequately compensate the Metal Consignor in light of these circumstances for its increased costs of maintaining such capital.  The Metal Consignor shall allocate such cost increases among its customers in good faith and on an equitable basis.
Section 16.6.Certificate.  A certificate setting forth any additional amounts payable pursuant to Sections 16.4 and 16.5 and a brief explanation of such amounts which are due, submitted by the Metal Consignor to the Customers, shall be prima facie evidence that such amounts are due and owing.
Section 16.7.Survival of Representations and Covenants.  This Agreement and all covenants, agreements, representations and warranties made herein and in the certificates delivered pursuant hereto, shall survive the consigning of Consigned Metal by the Metal Consignor to the Customers, the entering into of Metal Hedging Transactions and the execution and delivery to the Metal Consignor of this Agreement, and shall continue in full force and effect so long as any Obligation is outstanding and unpaid.  Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party; and all covenants, promises and agreements contained in this Agreement by or on behalf of the Customers shall inure to the benefit of the successors and assigns of the Metal Consignor.
Section 16.8.Notices.  All notices, requests, demands and other communications provided for hereunder shall be in writing (including telecopied or electronic communication) and mailed or faxed or delivered to the applicable party at the addresses indicated below or, in the case of electronic communication, at the e-mail address designated by each party.
    If to the Metal Consignor:

BMO Capital Markets
100 King Street West, 6th Floor
Toronto, ON M5X 1H3 
Attn:     Ajanth Packiyarajah
Email:    ajanth.packiyarajah@bmo.com 
Tel:     416.359.7314

Bank of Montreal
151 West 42nd Street, 9th Floor
New York, NY 10036
Attn:     Harry Lampart
Email:    harry.lampart@bmo.com 
Tel:     212.499.5997
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and

Associate General Counsel and Managing Director
Derivatives Legal Group/Legal and Regulatory Compliance
Bank of Montreal
First Canadian Place, 100 King Street West, 20th Floor
Toronto, ON M5X 1A1 
Email:                

in each case (except for routine communications) with a copy to:

Torys LLP
1114 Avenue of the Americas
New York, NY 10036
Attention: Darien G. Leung
Email: dleung@torys.com
Tel: (212) 880-6012            

If to the Customer:

c/o Materion Corporation
6070 Parkland Blvd.
Mayfield Heights, Ohio 44124
Attention:  Chris Eberhardt, Vice President, Tax and Treasury
Email:  christopher.eberhardt@materion.com
Fax: (216) 481-2523

in each case (except for routine communications) with a copy to:

Jones Day
325 John H. McConnell Blvd., Suite 600
Columbus, Ohio 43215
Attention:  Jeffrey D. Litle, Esq.
Email:  jdlitle@jonesday.com
Fax:  (614) 461-4198
or, as to each party, at such other address as shall be designated by such parties in a written notice to the other party complying as to delivery with the terms of this Section.  All such notices, requests, demands and other communication shall be deemed given upon receipt by the party to whom such notice is directed.
The address of the Metal Consignor for payment by or on behalf of the Customers hereunder shall be provided to the Customer Agent by the Metal Consignor from time to time or upon request by the Customer Agent.
Section 16.9.Lost Documents.  Upon receipt of an affidavit of an officer of the Metal Consignor as to the loss, theft, destruction or mutilation of this Agreement or any Security Document which is not of public record, and, in the case of any such loss, theft, destruction or mutilation, the Customers will execute and deliver, in lieu thereof, a replacement Agreement or Security Document.
Section 16.10.Waiver.  Neither any failure nor any delay on the part of the Metal Consignor in exercising any right, power or privilege hereunder or under any other instrument given as security therefor, shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or future exercise, or the exercise of any right, power or privilege.
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Section 16.11.Severability.  Any provision of this Agreement or any of the Security Documents or other Credit Documents which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.
Section 16.12.Section Headings, Etc.  Any Article and Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.
Section 16.13.Counterparts.  This Agreement may be executed by the parties hereto in several counterparts hereof and by the different parties hereto on separate counterparts hereof, each of which shall be an original and all of which counterparts shall together constitute one and the same agreement.  Delivery of an executed signature page of this Agreement by facsimile transmission or e-mail of a pdf copy shall be effective as an in-hand delivery of an original executed counterpart hereof.
Section 16.14.Disclaimer of Reliance.  Neither the Metal Consignor nor the Customers have relied on any oral representations concerning any of the terms or conditions of this Agreement or any of the Security Documents in entering into the same.  Each party acknowledges and agrees that none of the officers of any other party has made any representations that are inconsistent with the terms and provisions of this Agreement and the Security Documents, and no party has relied on any oral promises or representations in connection therewith.
Section 16.15.Environmental Indemnification.  In addition to the other indemnification obligations provided under this Agreement and in consideration of the execution and delivery of this Agreement by the Metal Consignor and the making of consignments and other extensions of credit, each Customer hereby indemnifies, exonerates and holds the Indemnified Parties free and harmless from and against any and all claims, actions, causes of action, suits, losses, costs, settlement payments, fees, liabilities and damages, and expenses incurred in connection therewith (irrespective of whether any such Indemnified Party is a party to the action for which indemnification hereunder is sought), including reasonable attorneys’ fees and disbursements (collectively, the “Indemnified Liabilities”), incurred by the Indemnified Parties or any of them as a result of, or arising out of, or relating to:
(f)any investigation, litigation or proceeding related to any environmental cleanup, audit, compliance or other matter relating to the protection of the environment or the release by the Customers of any Hazardous Material; or
(g)the presence on or under, or the escape, seepage, leakage, spillage, discharge, emission, discharging or releases from, any real property owned or operated by any Customer of any Hazardous Material (including any losses, liabilities, damages, injuries, costs, expense or claims asserted or arising under any Environmental Law), regardless of whether caused by, or within the control of, a Customer;
except, in each case arising by reason of an Indemnified Party’s gross negligence or willful misconduct.  If and to the extent that the foregoing undertaking may be unenforceable for any reason, the Customer agrees to make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.  Notwithstanding anything to the contrary herein contained, the obligations and liabilities under this Section shall survive and continue in full force and effect and shall not be terminated, discharged or released in whole or in part irrespective of whether all the Obligations have been paid in full or the Metal Consignor’s commitment to consign Metal has been terminated.
Section 16.1.Joint and Several Obligations; Suretyship Waivers and Consents.
(h)Without limiting any other provision of this Agreement, each Customer shall be jointly and severally liable for any and all covenants, agreements, Obligations (including, for purposes of 
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clarity, any indemnification obligations), and representations and warranties under this Agreement, any Metal Hedging Transaction, the Security Documents and any other Metal Document.
(i)Each Customer unconditionally guarantees to the Metal Consignor, jointly with the other Customers and severally, as a primary obligor and not merely as a surety, the due and punctual payment and performance of the Obligations for the ratable benefit of the Metal Consignor. Each Customer consents and agrees that the Metal Consignor may, at any time and from time to time, without notice or demand, whether before or after any actual or purported termination, repudiation or revocation of this Agreement by any Customer, and without affecting the enforceability or continuing effectiveness hereof as to such Customer: (i) with the written consent of the other Customers, supplement, restate, modify, amend, increase, decrease, extend, renew or otherwise change the time for payment or the terms of this Agreement or any part thereof, including any increase or decrease of the rate(s) of interest thereon; (ii) supplement, restate, modify, amend, increase, decrease or waive, or enter into or give any agreement, approval or consent with respect to, this Agreement or any part thereof, or any of the Security Documents, or any condition, covenant, default, remedy, right, representation or term thereof or thereunder; (iii) accept partial payments; (iv) release, reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer or enforce any security or guarantees, and apply any security and direct the order or manner of sale thereof as the Metal Consignor in its sole and absolute discretion may determine; (v) release any Person from any personal liability with respect to this Agreement or any part thereof; (vi) settle, release on terms satisfactory to the Metal Consignor or by operation of applicable law or otherwise liquidate or enforce any security or guaranty in any manner, consent to the transfer of any security and bid and purchase at any sale; or (vii) consent to the merger, change or any other restructuring or termination of the corporate or partnership existence of any Customer or any other Person, and correspondingly restructure the Obligations evidenced hereby, and any such merger, change, restructuring or termination shall not affect the liability of any Customer or the continuing effectiveness hereof, or the enforceability hereof with respect to all or any part of the Obligations evidenced hereby.
(j)The Metal Consignor may enforce this Agreement independently as to each Customer and independently of any other remedy or security the Metal Consignor at any time may have or hold in connection with the Obligations evidenced hereby, and it shall not be necessary for the Metal Consignor to marshal assets in favor of any Customer or any other Person or to proceed upon or against or exhaust any security or remedy before proceeding to enforce this Agreement.  Each Customer expressly waives any right to require the Metal Consignor to marshal assets in favor of any Customer or any other Person or to proceed against any other Customer or any Collateral provided by any Person, and agrees that the Metal Consignor may proceed against Customers or any Collateral in such order as it shall determine in its sole and absolute discretion.
(k)Each Customer further agrees that its guaranty hereunder constitutes a guaranty of payment when due and not of collection, and waives any right to require that any resort be had by the Metal Consignor to any security held for the payment of the Obligations or to any balance of any deposit account or credit on the books of the Metal Consignor in favor of the Customer or any other person.
(l)The Metal Consignor’s rights hereunder shall be reinstated and revived, and the enforceability of this Agreement shall continue, with respect to any amount at any time paid on account of the Customers’ Obligations to the Metal Consignor which thereafter shall be required to be restored or returned by the Metal Consignor, all as though such amount had not been paid.
(m)To the maximum extent permitted by applicable law, each Customer expressly waives any and all suretyship defenses now or hereafter arising or asserted by reason of (i) any disability or other defense of the other Customers with respect to the Obligations evidenced hereby, (ii) the unenforceability or invalidity of any security or guaranty for the Obligations evidenced hereby or the lack of perfection or continuing perfection or failure of priority of any security for the Obligations evidenced hereby, (iii) the cessation for any cause whatsoever of the liability of the other Customers (other than by reason of the full payment and performance of all Obligations), (iv) any failure of the Metal Consignor to comply with applicable law in connection with the sale or other disposition of any Collateral or other security for any Obligation, (v) any act or omission of the Metal Consignor or others that directly or indirectly results in or aids the discharge or release of any Customer or the Obligations evidenced hereby 
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or any security or guaranty therefor by operation of law or otherwise, (vi) the avoidance of any Lien in favor of the Metal Consignor for any reason, (vii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Metal Document or any other agreement, including with respect to any other Customer under this Agreement; (viii) any default, failure or delay, willful or otherwise, in the performance of the Obligations; (ix) any change in the corporate existence, structure or ownership of any Customer, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting any Customer or its assets or any resulting release or discharge of any Obligation (other than the payment in full in cash or immediately available funds of all the Obligations); (x) the existence of any claim, set-off or other rights that any Customer may have at any time against any other Customer, the Metal Consignor, or any other corporation or person, whether in connection herewith or any unrelated transactions, provided that nothing herein will prevent the assertion of any such claim by separate suit or compulsory counterclaim; (xi) any other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any representation by the Metal Consignor that might otherwise constitute a defense to, or a legal or equitable discharge of, any Customer or any other guarantor or surety or (xii) any action taken by the Metal Consignor that is authorized by this Section or any other provision hereof or of any Security Document.  Until such time, if any, as all of the Obligations have been paid and performed in full and no portion of any commitments of the Metal Consignor to consign Metal to the Customers under any agreement remains in effect, no Customer shall have any right of subrogation, contribution, reimbursement or indemnity from any other Customer, and each Customer (only in its capacity as a guarantor or surety) expressly waives any right to enforce any remedy that the Metal Consignor now has or hereafter may have against any other Person and waives the benefit of, or any right to participate in, any Collateral now or hereafter held by the Metal Consignor.  If any amount shall be paid to any Customer on account of any subrogation rights at any time prior to payment in full of the Obligations, such amount shall be held by such Customer in trust for the Metal Consignor, segregated from other funds of such Customer, and shall, forthwith upon receipt by such Customer, be paid to the Metal Consignor to be credited and applied against the Obligations, whether matured or unmatured, in accordance with the terms of the Agreement.
(n)In furtherance of the foregoing and not in limitation of any other right that the Metal Consignor has at law or in equity against any Customer by virtue hereof, upon the failure of any Customer to pay any Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise (but, in each case, subject to any grace period provided in this Agreement), each Customer hereby promises to and will forthwith pay, or cause to be paid, to the Metal Consignor such unpaid Obligation. Upon payment by any Customer of any sums to the Metal Consignor as provided above, all rights of such Customer against the owing Customer arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be fully subordinated to the indefeasible payment in full in cash of the Obligations (except for contingent indemnities and cost and expense reimbursement obligations to the extent no claim has been made).
(o)In the event that in any action or proceeding involving any state or foreign corporate law, or any state, Federal or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, the obligations of any Customer under this Agreement shall be held or determined to be void, avoidable, invalid or unenforceable (including, without limitation, because of any applicable state or Federal law relating to fraudulent conveyances or transfers), then, notwithstanding any other provision of this Agreement to the contrary, the amount of such liability of a Customer shall, without any further action by any Customer, Collateral Agent or the Metal Consignor, be automatically limited and reduced to the highest amount that is valid and enforceable (such highest amount determined hereunder being the relevant Customer’s “Maximum Liability”).  This Section with respect to the Maximum Liability of each Customer is intended solely to preserve the rights of Collateral Agent and the Metal Consignor to the maximum extent not subject to avoidance under applicable law, and no party to this Agreement nor any other person or entity shall have any right or claim under this Section with respect to such Maximum Liability, except to the extent necessary so that the obligations of any Customer hereunder shall not be rendered void, voidable, invalid or unenforceable under applicable law.
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Section 16.16.Recording of Conversations. Each party (a) consents to the recording of telephone conversations between the trading, marketing and other relevant personnel of the parties in connection with this Agreement, any Consignment, any confirmation and any potential transaction, (b) agrees to obtain any necessary consent of, and give any necessary notice of such recording to, its relevant personnel and (c) agrees, to the extent permitted by applicable law, that recordings may be submitted in evidence in any proceedings between the parties.
Section 16.17.Amendment and Restatement.  This Agreement amends and restates in its entirety the Original Agreement and, as of the Effective Date, (a) this Agreement shall supersede and entirely replace the Original Agreement, (b) all “Consigned Metal” outstanding under the Original Agreement shall constitute Consigned Metal under this Agreement, and (c) all other “Obligations” outstanding under the Original Agreement shall constitute Obligations outstanding under this Agreement.
[Remainder of page intentionally left blank; Signature page follows.]
    
    
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IN WITNESS WHEREOF, the Metal Consignor and the Customers have caused this Agreement to be duly executed and delivered by their respective duly authorized representatives as of the day and year first above written.
						
	CUSTOMERS:
	
	MATERION CORPORATION

By:    /s/ Christopher Eberhardt        
Name:    Christopher Eberhardt            
Title:    Vice President, Tax and Treasury    
	MATERION ADVANCED MATERIALS TECHNOLOGIES AND SERVICES INC.

By:    /s/ Christopher Eberhardt        
Name:    Christopher Eberhardt            
Title:    Vice President and Treasurer        

	MATERION TECHNICAL MATERIALS INC.

By:    /s/ Christopher Eberhardt        
Name:    Christopher Eberhardt            
Title:    Vice President and Treasurer        
	MATERION BRUSH INC.

By:    /s/ Christopher Eberhardt        
Name:    Christopher Eberhardt            
Title:    Vice President and Treasurer        

		MATERION ADVANCED MATERIALS TECHNOLOGIES AND SERVICES CORP.

By:    /s/ Christopher Eberhardt        
Name:    Christopher Eberhardt            
Title:    Vice President, Treasurer and Secretary    

	METAL CONSIGNOR:
	
	BANK OF MONTREAL

By:    /s/ Bimal Das                
Name: Bimal Das
Title: Managing Director
	

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