Document:

exh_101.htm

EXHIBIT 10.1

Master Services Agreement

 

THIS AGREEMENT (“Agreement”) is made on October 14, 2013 (the “Effective Date”).

 

BETWEEN

 

(1)      Buffalo BioLabs, LLC, a New York limited liability company with an address at 73 High Street, Buffalo, NY 14203 (“BBL”), and

 

(2)      Cleveland BioLabs, Inc., a Delaware corporation with an address at 73 High Street Buffalo, NY 14203 (“Sponsor”).

 

WHEREAS, CBLI and its subsidiaries has proprietary technology related to regulating cell death and involving:  (i) selective sensitization of cancer cells to treatment or modulation of FACT, MYC, MRP 1, and androgen receptor expression; or (ii) using activators of Toll-like receptors (TLRs) including parasite-related agents, antibodies, peptides, viruses and small molecules to treat cancer, modulate hematopoietic stem cells or to treat effects associated with total body and local radiation exposure, cancer treatment side effects, infection, inflammation, ligation-reperfusion injuries, and wound healing; or (iii) modulation of FACT to treat microbial and fungal infections (the “CBLI Technology”).

 

WHEREAS, BBL is engaging in laboratory operations in order to provide testing services for pharmaceutical pre-clinical research;

 

WHEREAS, Sponsor wishes to hire BBL to conduct research and consulting services (the “Services”) as more fully described in (a) the research plans (each, a “Research Plan”), (b) the statement(s) of work to each Research Plan (each, a “Research SOW”), and (c) other such statements of work for research and consulting services, which are not directly related to an appended Research Plan (each, an “Independent SOW”). Each Research Plan, Research SOW and Independent SOW shall be in the form substantially similar to that attached as Schedule 1 (Research Plan Form) or Schedule 2 (Statement of Work Form), respectfully, and shall be subject to the terms and conditions of this Agreement.

 

1. DEFINITIONS

 

Whenever used in this Agreement, the terms defined in this Article 1 shall have the meanings specified.

 

1.1 “Affiliates” of a party means companies, which directly or indirectly control, are controlled by or are under common control with such party.  For the purposes of this definition “control” (including “controlled by” and “under common control with”) as used with respect to any corporation or company, shall mean (a) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such corporation or company, whether through majority board membership, the ownership of voting securities by contract or otherwise, or (b) through the ownership of more than 50% of the voting shares or other ownership interest of a company.

 

1.2 “Confidential Information” means all information, materials, methods, procedures, techniques, strategies, policies, cell lines, molecules, compositions of matter, data activities and/or 

 

  

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documents of a party and any other confidential information about or belonging to disclosing party’s business, products, services, strategies, suppliers, licensors, licensees, agents, affiliates, customers, potential customers or others. Without limiting the foregoing, Sponsor Confidential Information shall also include applicable Sponsor Intellectual Property. All information regarding Sponsor or its subsidiaries known by or in the possession of or received by BBL, its employees, consultants or agents on, prior to, or following the Effective Date, shall be treated as Confidential Information unless it is explicitly marked as “Non-Confidential” or falls within an exception set forth in Section 12.5.

 

1.3  “Deliverables” means the results of the Research or Services, as applicable, that are to be delivered by BBL to Sponsor pursuant to a Research Plan, Research SOW or Independent SOW, as applicable.

 

1.4 “Intellectual Property” means ideas, concepts, discoveries, inventions, developments, know-how, trade secrets, techniques, methodologies, modifications, innovations, improvements, writings, documentation, electronic code, data and rights (whether or not protectable under state, federal or foreign patent, trademark, copyright or similar laws) or the like, whether or not written or otherwise fixed in any form or medium, regardless of the media on which contained and whether or not patentable or copyrightable.

 

1.5 “Key Person” means a person listed on Schedule 4, otherwise identified as a Key Person in a Research Plan or Statement of Work, or who is otherwise deemed to be essential to provision of the Services hereunder.

 

1.6 “Research” means the research, investigation, study and/or examinations performed as part of the Services set forth in a Statement of Work, as applicable.

 

1.7 “Results” means any research and development information, inventions and/or discoveries, whether patentable or not, know-how, protocols, procedures, composition of matter, raw and analyzed data, methods, technical data and information generated or developed in the course of the Research or in the course of BBL providing Services, as applicable, by or on behalf of the parties.

 

1.8 “Statements of Work” means Research SOWs and Independent SOWs.

 

2. TERM

 

This Agreement shall commence on the Effective Date and shall continue thereafter until completion or termination of the last Statement of Work under this Agreement, or termination of this Agreement in accordance with Article 13, whichever occurs first.  The term of each Statement of Work shall be as specified therein.

 

3. RESEARCH AND CONSULTING SERVICES

 

3.1 Statements of Work.  Sponsor retains BBL to consult in the execution, design, data analysis and reporting, management and development of the research and development program for the CBLI Technology.  Applied research, project management, product development and administrative services related thereto will be carried out as set forth in the attached Statements of Work, with such timetables, budgets and performance criteria as the parties agree in writing.

 

3.2 Change Orders.  Any changes to a Statement of Work or the scope or nature of Services to be rendered thereunder shall require a written change order, in a form substantially similar to that attached as Schedule 3 (“Change Order”), signed by an authorized representative of each party.  Such 

 

  

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changes may result in adjustments to the applicable fees and/or delivery schedule as reasonably agreed upon by the parties unless otherwise expressly provided for hereunder. BBL shall not be obligated to work on any change until the parties have agreed in writing on the impact of such change on the fees and/or delivery schedule.

 

3.3 Manner of Rendering Services; Location.  BBL shall retain sole discretion as to the method and means of performing the Services, including but not limited to the designation of personnel to perform the Services. BBL shall perform the Services in accordance with the terms of this Agreement, the applicable Research SOW or Independent SOW, and all applicable federal, state and local laws, rules regulations and guidances.

 

3.4 Acceptance.  Except as otherwise expressly provided in the applicable Statement of Work, the specific deliverables identified in the Statement of Work shall be deemed accepted by Sponsor within the date twenty (20) business days from the date of delivery by BBL (“Review Period”) unless, prior to the expiration of the Review Period, Sponsor provides BBL with written notice of any material non-compliance of the specific deliverable with the requirements and agreements set forth in the Statement of Work (“Defects”) and such notice contains detailed explanation of such Defects.  BBL shall correct such Defects, at no additional cost to Sponsor, and return the applicable deliverable to Sponsor as soon as is commercially practicable and in no event more than fourteen (14) days following notice of defect unless otherwise agreed in writing by the Parties (“Revised Work”).  Sponsor shall have ten (10) business days commencing from the date it receives the Revised Work to review the deliverable and verify that BBL corrected the Defect.

 

3.5 Joint Steering Committee.  The parties shall form a joint steering committee (the “Steering Committee”), which shall initially consist of two persons appointed by the Board of Directors of Sponsor and a senior scientific manager designated by BBL and who shall meet to review (a) Project IP (defined below) and (b) the plan of, status of and results of the Research no less frequently than quarterly. Such meetings shall be made on at least five (5) days’ prior notice and may be called by any member of the Steering Committee or a member of executive management of Sponsor. Within one week following such meetings, the Steering Committee shall provide a written report in form and substance reasonably acceptable to Sponsor. Based on such report of the Steering Committee, Sponsor may revise the Research Plan(s) and Sponsor and BBL shall use commercially reasonable efforts to revise any Statement(s) of Work affected by the recommendations of the Steering Committee within fifteen (15) calendar days following the meeting of the Steering Committee in accordance with this Section 3.5.  In the event Sponsor and BBL cannot reach agreement on revisions to the Statement(s) of Work, Sponsor may, in its sole discretion, immediately terminate any such Statement of Work.

 

3.6 Services Provided Under United States Government (“USG”) Contracts.  BBL acknowledges that some or all of the Services provided hereunder may be Services billable by Sponsor under its current or future contracts with the United States Government. When requested, BBL will provide the Sponsor with subcontract cost proposals to support Sponsor cost proposals to the USG. Therefore, BBL agrees to comply with Federal Acquisition Regulations (“FARs”) as may be listed Statements of Work directly relating to Services to be provided under a USG contract.

 

4. PERFORMANCE OBLIGATIONS OF THE PARTIES

 

4.1 Cooperation.  Sponsor shall be responsible for performing its obligations, if any, as set forth in the applicable Statement of Work.  Each party shall be entitled to rely on all decisions and approvals of the other party in connection with the Services.  In addition, Sponsor and BBL shall cooperate fully with each other and their agents and provide reasonable assistance for BBL to perform the Services, including but not limited to providing prompt access to each other’s personnel, materials, 

 

  

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software, systems, documentation and other information and resources reasonably required complete the Services.

 

4.2 Consent.  Each party shall obtain all consents necessary from third parties required for performance under this Agreement and any applicable Statement of Work.

 

5. FEES AND PAYMENT

 

5.1 Fees.  Sponsor shall pay to BBL the charges set forth in the applicable Statement of Work.  Except as otherwise set forth in the applicable Statement of Work, Sponsor shall pay all undisputed amounts due to BBL within thirty (30) days of the date of the applicable invoice (“Due Date”).  Sponsor will provide prompt notice of and basis for any disputed amounts. The parties shall cooperate in good faith to promptly resolve any invoicing disputes.  Undisputed amounts due may not be withheld or offset by Sponsor except as set forth herein.  All payments shall be made in U.S. dollars.  Without limiting any other rights or remedies available to BBL, if Sponsor fails to pay any undisputed amounts by the applicable due date, BBL shall have the right to suspend performance of the Research and Services and withhold delivery of any Deliverables until such time as full payment is received by BBL.  Sponsor shall pay all collection costs, including but not limited to legal costs, attorneys’ fees, court costs and collection agency fees on undisputed amounts not paid on the due date. Any undisputed portion of an invoice remaining unpaid for more than thirty (30) days past the Due Date shall accrue interest at a rate of the lesser of one (1%) percent per month or the highest rate allowed by law.

 

5.2 Taxes.  Sponsor shall be responsible for all applicable federal, state and local sales, use, excise, value-added and other taxes, tariffs and the like based upon or arising in connection with this Agreement, except for any taxes based on BBL's gross or net income.

 

5.3 Out of Pocket Expenses.  All reasonable out-of-pocket expenses incurred by BBL at Sponsor’s request including expenses for meals, lodging and travel arising from the performance of Services shall be paid by Sponsor payable as set forth in Section 5.1. BBL shall not incur any out-of-pocket expense in excess of $500.00 without prior written approval of Sponsor. If BBL has been notified that Sponsor intends to bill its Services under a USG contract held by the Sponsor, BBL agrees that Sponsor shall not be liable for payments of reimbursable expenses in excess of the per diem rates set forth by the USG unless Sponsor has provided prior written consent of the costs to be incurred in excess of the USG per diem rates.

 

5.4 Invoicing.  All invoices submitted by BBL shall include specific line-item details supporting the total amount of the invoice. For cost-type SOWs, BBL will provide a cost-type invoice showing all direct costs, indirect costs and fees billable under the SOW. Upon Sponsor’s request, BBL shall provide full back-up documents justifying all charges listed on any invoice submitted under this Agreement.

 

6. AUDITS

 

6.1 For Cause Audits.  If Sponsor reasonably believes that the Research or Services are not being performed, or were not performed, in compliance with the terms of this Agreement, Sponsor may schedule audits upon reasonable advance notice of not less than two (2) business days and during BBL’s regular business hours.  Sponsor or its agents may inspect BBL facilities and may audit records, including accounting records, relating to the Research or Services, subject to all confidentiality obligations and other restrictions herein or otherwise reasonably required by BBL prior to such inspection.  BBL will make available all such records and will provide reasonable assistance in the inspection or audit. Sponsor’s right to audit will continue for the term of the Agreement.  Audits in 

 

  

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accordance with the terms and conditions of this Section 6.1 may occur more frequently than one (1) time per calendar year, but in no case more than four (4) times per calendar year.

 

6.2 Financial Audits.  At Sponsor’s request and expense, BBL shall permit the Sponsor, or an independent accounting firm selected by Sponsor, and reasonably acceptable to BBL to have access to financial information relating to BBL’s business operations to: (1) allow an assessment of BBL’s financial viability (“Financial Audit”), (2) comply with any pass-through contract and grant audit and financial compliance responsibilities, and (3) properly assemble and validate any and all financial information that might be required of Sponsor for external reporting purposes, e.g. in the event that Sponsor is required to consolidate BBL for external financial reporting purposes.  Sponsor would request such an audit only upon reasonable advance notice of not less than ten (10) business days and during BBL’s regular business hours and one (1) time per calendar year during the term of this Agreement.  BBL will not be asked to identify its non-Sponsor clients or disclose any confidential business information provided by those clients.  Sponsor shall cause its accounting firm to retain all such information subject to the confidentiality restrictions of Article 10 of this Agreement.

 

6.3 Quality Audits.  At Sponsor’s request, BBL shall permit Sponsor to perform one quality audit per year without cause, and additional visits if warranted. Sponsor is allowed to review and access: BBL Quality Systems, original study records and other primary documents, redacted government inspection reports such as FDA redacted 483s, areas of the BBL facility relevant to provision of Services to Sponsor, including laboratories and warehousing facilities (“Quality Audit”). Sponsor would request such an audit only upon reasonable advance notice of not less than ten (10) business days and during BBL’s regular business hours and one (1) time per calendar year during the term of this Agreement.  BBL will not be asked to identify its non-Sponsor clients or disclose any confidential business information provided by those clients.  Sponsor shall cause its accounting firm to retain all such information subject to the confidentiality restrictions of Article 10 of this Agreement.

 

6.4 Corrective Measures.  BBL agrees to institute reasonable corrective measures in BBL’s sole discretion to address deficiencies identified in a Sponsor audit.

 

6.5 Study Records.  BBL shall maintain books and records, including, but not limited to protocols, protocol amendments, lab notebooks and raw data, relating to the conduct of any study conducted as part of such Services (the “Study Data”) for the longer of fifteen (15) years or two (2) years following regulatory approval of the product that the Study Data relates to and shall provide Sponsor with access to or copies of such records, at Sponsor’s expense, upon five (5) business day notice by Sponsor.  In the event that BBL plans to dispose of such records following the conclusion of the time-frame stated above, BBL shall provide Sponsor with thirty (30) days prior notice and an option to transfer such records to Sponsor, at Sponsor’s expense.

 

7. WARRANTIES

 

7.1 Warranties. BBL represents and warrants to Sponsor that:

 

7.1.1 this Agreement has been duly executed and delivered and constitutes a valid and binding agreement enforceable against BBL in accordance with its terms;

 

7.1.2 no authorization or approval from any third party is required in connection with BBL’s execution, delivery or performance of this Agreement;

 

  

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7.1.3 the execution, delivery and performance of this Agreement does not violate the laws of any jurisdiction or the terms or conditions of any other agreement to which BBL is a party or by which BBL is otherwise bound;

 

7.1.4 BBL will provide the Services and conduct the Research in a workmanlike and professional manner in accordance with the Statements of Work;

 

7.1.5 BBL will provide the Services and conduct the Research in accordance with all applicable federal, state and local laws, rules, regulations and guidances;

 

7.1.6 all work, or any part thereof, delivered to Sponsor under a Statement of Work, does not, and will not, upon delivery to Sponsor, to the best of BBL’s knowledge, infringe any patent right, copyright, trade secret right or other intellectual property right of a third party;

 

7.1.7 BBL shall use commercially reasonable efforts to ensure that the maintenance and calibration of all equipment used to provide Services hereunder is maintained;

 

7.1.8 BBL will comply with all appropriate animal welfare rules, as specified by law, Sponsor or the IACUC that governs animal studies conducted by BBL;

 

7.1.9 BBL shall provide thirty (30) day prior written notice prior to the involuntary termination of a Key Person, and immediate written notice upon the voluntary resignation of a Key Person;

 

7.1.10 BBL further warrants and represents that no individual that has been debarred by the FDA pursuant to 21 U.S.C. §335a (a) or (b) will perform or render, any services or assistance to BBL;

 

7.1.11 BBL has not, and agrees that it shall not, in connection with the transactions contemplated by this Agreement, or in connection with any other business transactions involving Sponsor, make any payment or transfer anything of value, directly or indirectly, to any government official or employee (including employees of a government corporation or public international organization) or to any political party or candidate for public office, or to any other person or entity for the purposes of obtaining or retaining business or an advantage in the conduct of business, or securing any improper advantage related to any business interest of Sponsor or other interest contemplated by this Agreement or that otherwise would violate, or cause a violation of the laws of the United State, including, without limitation, the U.S. Foreign Corrupt Practices Act (“FCPA”);

 

7.1.12 that it is familiar with the provisions of the FCPA, and agrees that:

 

	 	
(a)

	
except as disclosed to Sponsor, none of its employees, officers, directors, principals, agents, or owners is a foreign government official or affiliated with any foreign government official (including employees of a government corporation or public international organization) or to any political party or candidate for public office;

 

	 	
(b)

	
BBL shall disclose to Sponsor any future affiliation, direct or indirect (through another person or party), between the Consultant and a foreign government official;

 

  

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(c)

	
BBL shall maintain adequate records showing both the purpose and receipt of payments or expenses in relation to this Agreement or furthering the business of Sponsor and shall allow Sponsor to inspect such records upon reasonable notice;

 

	 	
(d)

	
BBL shall provide certifications of compliance with these provisions as and when requested by Sponsor;

 

	 	
(e)

	
notwithstanding any other provisions to the contrary, Sponsor may withhold payments under this Agreement and/or suspend or terminate this Agreement forthwith upon learning information giving it a factual basis to conclude that BBL has violated, or caused Sponsor to violate the FCPA, in the sole discretion of Sponsor; and

 

	 	
(f)

	
the terms of this Agreement may be disclosed to the USG and/or applicable foreign government, and any other relevant government agencies, if deemed appropriate by Sponsor;

 

7.1.13 BBL has no knowledge of any circumstances which may affect the accuracy of the foregoing warranties and representations, including, but not limited to, FDA or other governmental investigations of, or debarment proceedings against, BBL or any person or entity performing services or rendering assistance relating to activities taken pursuant to this Agreement, and BBL will immediately notify the Sponsor if BBL becomes aware of any such circumstances during the term of this Agreement.

 

7.2 Disclaimer.  EXCEPT FOR THE EXPRESS WARRANTIES AND REPRESENTATIONS STATED HEREIN, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES WHATSOEVER. BBL PROVIDES THE SERVICES AND DELIVERABLES ON AN “AS IS” BASIS. SPONSOR PROVIDES ANY MATERIALS UNDER THIS AGREEMENT ON AN “AS IS” BASIS. EACH PARTY, AND ITS RESPECTIVE AFFILIATES AND SUBCONTRACTORS HEREBY DISCLAIM ALL OTHER REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, INFORMATION CONTENT, INTERFERENCE WITH ENJOYMENT AND NON-INFRINGEMENT OF THIRD PARTY RIGHTS.  BBL DOES NOT WARRANT OR MAKE ANY REPRESENTATIONS REGARDING THE USE OF THE SERVICES OR DELIVERABLES. SPONSOR EXPRESSLY ACKNOWLEDGES AND AGREES THAT USE OF THE SERVICES AND DELIVERABLES OR THE OUTCOMES OBTAINED THEREFROM IS AT SPONSOR'S SOLE RISK.

 

8. REPRESENTATION ON SPONSOR PREFERRED CUSTOMER STATUS AND PRICING DISCOUNT.

 

If during the five (5) years after the Effective Date, BBL is offering pre-clinical research, clinical research and/or sample analysis services, Sponsor may avail itself of such services on a preferred customer basis as follows.  If Sponsor wishes BBL to provide such services, it will notify BBL and BBL will use reasonable commercial efforts to meet Sponsor’s reasonable requirements for such services on Sponsor’s timetable subject only to firm commitments made by BBL at the time it receives Sponsor’s notice.  Any such services would be provided at a discount of 10% to BBL’s then standard rates, and in addition to any volume discount that BBL would otherwise grant, and would be the subject of a separate agreement negotiated by the parties in good faith at the relevant time.  During the term and for such five (5) year period, representatives of the parties, upon such times and in such manner as mutually agreed 

 

  

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upon by the parties, shall conduct quarterly meetings (which may be held telephonically) to discuss Sponsor requirements and BBL availability in accordance with this Article 8.

 

9. INDEMNIFICATION AND LIMITATION OF LIABILITY

 

9.1 Indemnification by BBL. BBL shall indemnify, defend and hold harmless Sponsor and its affiliates and their respective directors, officers, employees, and agents (the “Sponsor Indemnitees”) from and against any and all costs, expenses, liabilities, damages, losses and harm (including reasonable legal expenses and attorneys’ fees) arising out of or resulting from any third party suits, claims, actions, or demands (collectively, “Claims”) to the extent resulting from or caused by: (a) BBL’s performance of the Services; (b) the negligence, recklessness or willful misconduct of BBL or its officers, directors, employees, or agents; or (c) BBL’s breach of its obligations, warranties, or representations under this Agreement, except in each case to the extent that a Claim arises out of or results from the negligence, recklessness or willful misconduct of any Sponsor Indemnitee or Sponsor’s breach of its obligations, warranties, or representations under this Agreement.

 

9.2 Indemnification by Sponsor. Sponsor shall indemnify, defend and hold harmless BBL and its directors, officers, employees, and agents (the “BBL Indemnitees”) from and against any and all Claims to the extent resulting from or caused by: (a) the negligence, recklessness or willful misconduct of any Sponsor Indemnitee; or (b) Sponsor’s breach of its obligations, warranties or representations under this Agreement, except in each case to the extent that a Claim arises out of or results from the negligence, recklessness or willful misconduct of any BBL Indemnitee or BBL’s breach of its obligations, warranties, or representations under this Agreement.

 

9.3 Indemnification Conditions and Procedures.  Each party’s agreement to indemnify, defend and hold harmless the other party is conditioned on the indemnified party: (i) providing written notice to the indemnifying party of any claim or demand for which is it seeking indemnification hereunder promptly after the indemnified party has knowledge of such claim; (ii) permitting the indemnifying party to assume full responsibility to investigate, prepare for and defend against any such claim or demand, except that the indemnified party may cooperate in the defense at its expense using its own counsel; (iii) assisting the indemnifying party, at the indemnifying party’s reasonable expense, in the investigation of, preparing for and defense of any such claim or demand; and (iv) not compromising or settling such claim or demand without the indemnifying party’s written consent.

 

9.4 Limitation on Liability. EXCEPT FOR DAMAGES AVAILABLE FOR BREACHES OF CONFIDENTIALITY OBLIGATIONS UNDER ARTICLE 12 AND THE INDEMNIFICATION RIGHTS AND OBLIGATIONS UNDER ARTICLE 9, (A) IN NO EVENT SHALL EITHER PARTY, NOR THEIR RESPECTIVE  AFFILIATES OR SUBCONTRACTORS BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING BUT NOT LIMITED TO ANY DAMAGES FOR LOSS OF PROFITS, BUSINESS OR SAVINGS, LOSS OF USE, BUSINESS INTERRUPTION OR THE LIKE), EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND (B) IN NO EVENT SHALL BBL’S, ITS AFFILIATES’ AND/OR ANY OF ITS SUBCONTRACTORS’ AGGREGATE LIABILITY FOR ANY CAUSE OF ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT EXCEED TWO TIMES (2X) THE FEES ACTUALLY PAID TO BBL IN CONNECTION WITH THE SERVICES UNDER WHICH SUCH ACTION AROSE DURING THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE DATE ON WHICH SUCH ACTION AROSE.  THE FOREGOING LIMITATIONS SHALL APPLY REGARDLESS OF THE CAUSE OR THE FORM OF ACTION (WHETHER BASED IN CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY, WARRANTY OR OTHERWISE) AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

 

  

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10. PROPRIETARY RIGHTS

 

10.1 Sponsor Intellectual Property. Sponsor, or, as applicable, its third party licensors, shall retain all right, title and interest in and to all Intellectual Property owned or known by Sponsor prior to the Effective Date or made or acquired by Sponsor during the term of this Agreement (collectively, “Sponsor Intellectual Property”). BBL acknowledges that Sponsor Intellectual Property constitutes valuable assets of Sponsor and, as applicable, shall be treated as Confidential Information of Sponsor pursuant to Article 12.  At the request of Sponsor and at Sponsor’s expense, BBL shall execute any documents reasonably required to confirm ownership of such rights and to secure proper patent, copyright, trademark or other protection, as appropriate, related thereto.  For the avoidance of doubt, if Sponsor supplies any Sponsor Intellectual Property to enable the Services, including without limitation methods, protocols, product, samples and reagents, neither BBL nor any permitted subcontractor hereunder shall acquire any rights in such intellectual property or materials except to the extent expressly provided herein and as otherwise reasonably necessary to perform the Services in accordance with the terms and conditions of this Agreement.

 

10.2 BBL Intellectual Property. Subject to the license set forth in Section 10.4, BBL shall retain all right, title and interest in and to all Intellectual Property owned by BBL prior to the Effective Date or made by BBL during the term of this Agreement independently of this Agreement (collectively, the “BBL Intellectual Property”).

 

10.3 Project Intellectual Property.

 

10.3.1 Sponsor shall own all right, title and interest in and to the Results and Deliverables and all Intellectual Property rights and know-how therein, as well as all Intellectual Property rights or know-how made or developed solely or jointly by BBL relating to the Services in the course of performing the Services or otherwise under this Agreement (collectively, “Project IP”).

 

10.3.2 BBL shall notify Sponsor in writing of any and all Project IP promptly after its conception, development or reduction to practice. BBL hereby assigns and transfers to Sponsor all of its right, title and interest in and to all Project IP. At the request of Sponsor and at Sponsor’s expense, BBL shall (and shall cause its employees to) execute any documents reasonably required to confirm ownership of such rights and to secure proper patent, copyright, trademark or other protection, as appropriate, related thereto. Sponsor shall have the sole right and discretion, at its expense, to prepare, file, prosecute and maintain any patent applications and patents claiming the Project IP.

 

10.4 License Grant to Sponsor. BBL hereby grants Sponsor a nonexclusive, irrevocable, perpetual, worldwide, fully paid-up license under all BBL Intellectual Property pertaining to or embodied within the Deliverables (a) to fully exploit any product or service based on, embodying, incorporating, or derived from the Deliverables, and (b) to exercise any and all other present or future rights in the Deliverables for any and all purposes; provided however, all such BBL Intellectual Property shall, as applicable, be treated as Confidential Information of BBL.  At the request and cost of Sponsor, BBL shall execute any documents reasonably required to confirm such rights.

 

10.5 Discoveries.  For avoidance of all doubt, except as otherwise expressly provided herein, BBL shall not have the right to use, make, sell, import, export, create improvements, modify, enhance and/or create derivative works of materials provided by Sponsor, of the Sponsor Intellectual Property or of the Project IP (“Sponsor Intellectual Property Developments”), or have any or all of the foregoing done on its behalf.  Notwithstanding the foregoing, if BBL does, intentionally or unintentionally, take any of the foregoing actions in breach of this Agreement in addition to all rights and remedies available to Sponsor at law, in equity or otherwise provided herein, BBL: (a) shall promptly notify Sponsor in 

 

  

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writing of the nature of the breach including, without limitation, a detailed description of the Sponsor Intellectual Property Developments; (b) shall cooperate with Sponsor, at BBL’s cost, to take such measures as Sponsor reasonably determines necessary and/or desirable to secure or maintain the applicable Sponsor Intellectual Property Developments; and (c) on behalf of itself as well as its respective Affiliates, employees, agents, and contractors, without any further compensation, (i) hereby assign, cede, grant, transfer and set over to Sponsor all worldwide right, title and interest, in, to and under all Sponsor Intellectual Property Developments created, discovered, known, learned or invented by BBL as of the date of such creation, invention, discovery, fixation in a tangible media or, as applicable, reduction to practice, and (ii) further covenants and agrees to perform, at any time upon Sponsor’s request, all acts deemed necessary or desirable by Sponsor to permit and assist Sponsor in registering, recording, obtaining, maintaining, defending, enforcing and/or assigning Sponsor’s rights, title and interest in, to or under the Sponsor Intellectual Property Developments in any and all countries.

 

10.6 BBL Residual Knowledge. To the extent any ideas, concepts, know-how, and techniques acquired or used in the course of providing the Services are retained in the unaided memory of any BBL personnel (collectively “Residual Knowledge”), such BBL personnel shall be free to use such Residual Knowledge.

 

11. PUBLICITY

 

Neither party shall disclose the terms of this Agreement or any Statement of Work without the prior written consent of the other party, except that each party may: (a) make such disclosures as are necessary to comply with applicable laws, rules and regulations or as necessary to enforce this Agreement; (b) disclose the terms of this Agreement to such party's auditors, attorneys, bankers or investment bankers as necessary for their rendition of services to such party; and (c) disclose the terms of this Agreement to bona fide prospective investors, merger partners, strategic partners, or acquirors and their respective professional advisors, in connection with the negotiation, entry into and/or performance of a business transaction between such parties, including the conduct of due diligence involved in such transaction, provided, however, that such parties are subject to obligations of confidentiality and non-use at least as restrictive as those set forth in Article 12. During the term of this Agreement and for a reasonable time thereafter, both parties may use the other’s name and logo in a press release, marketing material and/or advertisement (“Marketing Material”) disclosing the existence of this Agreement but shall not disclose any of its subject matter, unless the other party first reviews and approves such Marketing Material, which approval shall not be unreasonably withheld or delayed by either party.  Except for the foregoing, neither party will use the other’s name for advertising or external publicity purposes without its consent, except that the parties may include in their promotional materials references to and quotations from publications of Results or Deliverables.

 

12. CONFIDENTIALITY

 

12.1 Confidentiality Obligations.  Neither party shall disclose, or permit to be disclosed, any Confidential Information to any third party without the disclosing party's prior written consent or except as expressly authorized hereunder.  Neither party shall use or reproduce the Confidential Information except as necessary to perform its obligations hereunder.  Each party shall take all reasonable precautions necessary to safeguard the confidentiality of the Confidential Information including, at a minimum, those precautions taken by such party to protect its own Confidential Information, which in no event shall be less than a reasonable degree of care.  The receiving party shall restrict the possession, knowledge and use of Confidential Information to its employees, agents and subcontractors who have a need to know for purposes of this Agreement and are bound by confidentiality obligations no less stringent than those contained herein.  The receiving party may disclose Confidential Information as required by law or court order, provided that the receiving party discloses only such information as is required by law and uses 

 

  

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reasonable efforts to obtain confidential treatment for any Confidential Information so disclosed. The receiving party promptly shall notify the disclosing party of any facts known to such party regarding any unauthorized disclosure or use of the Confidential Information. All Confidential Information shall remain the exclusive property of the disclosing party. The terms of this Section 12.1 shall survive for a period of five (5) years after any termination of this Agreement, except with respect to any information that constitutes a trade secret, in which case the terms of this Section 12.1 shall survive for so long as such information continues to constitute a trade secret, but in no event for a period of less than five (5) years after any termination of this Agreement.

 

12.2 Use of Confidential Information. During the term of this Agreement, each party will use the other party’s Confidential Information solely for the purpose of conducting the Services under the applicable Statement of Work or exercising such Party’s rights under this Agreement; provided, however, except as otherwise expressly provided herein and subject to Section 12.1 above and Section 12.3 below, each party shall immediately stop the use of and shall not use the other party’s Confidential Information after the date of the expiration or termination of this Agreement.

 

12.3 Physical Protection and Return of Confidential Information.  During the term of this Agreement and for a period of five (5) years thereafter, except with respect to any information that constitutes a trade secret, in which case the terms of this Section 12.3 shall survive for so long as such information continues to constitute a trade secret, but in no event for a period of less than five (5) years after the date of any termination or expiration of this Agreement, each party shall exercise reasonable precautions to physically protect the integrity and confidentiality of the other party’s Confidential Information.  Upon the sooner of the expiration or termination of this Agreement or the conclusion of the Services under the applicable Statement of Work, each party shall, in accordance with the other party’s instructions, return to the other party, or destroy at the other party’s option with written certification of such destruction sent to the other party’s mailing address for correspondence, all unused Confidential Information of the other party.

 

12.4 Injunctive Relief. Each party acknowledges that its breach of this Article 12 may cause irreparable injury to the party disclosing its Confidential Information and that such disclosing party may not be made whole by monetary damages. It is agreed accordingly that each party, in addition to any other remedy to which it is entitled, shall be entitled to seek and obtain injunctive and other equitable relief as a court of competent jurisdiction may order to prevent breaches of, and to compel specific performance of, the obligations of this Article 12. Each party hereby waives any requirement for the securing or posting of any bond in connection with any such remedy.  Such remedies shall not be deemed to be the exclusive remedies for a breach of this Article 12 but shall be in addition to all other remedies available at law or equity.

 

12.5 Limitations.  Neither party shall have any confidentiality and non-use obligations to the extent any information: (a) is public knowledge at the time of disclosure; (b) was demonstrably known by the receiving party before disclosure by the disclosing party, (c) becomes public knowledge or otherwise known to the receiving party after such disclosure, other than by breach of a confidentiality obligation; or (d) is independently developed by the receiving party by persons without use of or access to such Confidential Information, as demonstrated by contemporaneous written records.

 

13. TERMINATION

 

13.1 Termination for Convenience.  Sponsor may terminate this Agreement in its entirety or any Statement of Work at any time upon either (a) thirty (30) days written notice to BBL, if no Statements of Work are operational under the Agreement at the time of termination, or otherwise (b) upon ninety (90) days written notice to BBL, (a) or (b) to be known as (“Cancellation Notice Period”).  

 

  

11

  

Notwithstanding the foregoing, upon any such termination by Sponsor, Sponsor promptly shall pay to BBL all fees and other amounts due and owing under this Agreement and the applicable Statement(s) of Work for Services rendered and expenses incurred as of the effective date of termination.

 

13.2 Termination for Cause.  In addition to Sponsor’s termination rights otherwise set forth herein, either party shall be entitled to terminate this Agreement and/or any Statement of Work in the event of any material breach by the other party (including but not limited to any failure by Sponsor to make payments when due and any failure on the part of BBL to meet work deadlines as outlined in the applicable Statement of Work) if such breach is not cured within thirty (30) days after receipt of written notice thereof or within ten (10) days after receipt of such notice if such breach relates to the payment of fees or other amounts owed by Sponsor that are not subject to a bona-fide dispute evidenced in writing from Sponsor to BBL.  Upon any such termination, Sponsor promptly shall pay to BBL all fees and other undisputed amounts due and owing under this Agreement and the applicable Statement(s) of Work for Services rendered and expenses incurred as of the effective date of termination.  In the event of termination by Sponsor, Sponsor shall also pay BBL for other costs directly incurred by BBL activities necessary as a result from such early termination, and approved in writing and in advance by Sponsor.

 

13.3 Survival.  Termination of a Statement of Work shall not result in a termination of the entire Agreement unless so stated in the termination notice.  Notwithstanding anything to the contrary contained herein, the provisions of Articles 1, 5, 6, 7.2, 8, 9, 10 and 12-16 shall survive any termination of this Agreement.

 

14. ASSIGNMENT - SUBCONTRACTORS

 

Neither party shall, without the prior written consent of the non-assigning party, which shall not be unreasonably withheld or delayed, assign this Agreement or any rights or obligations hereunder, whether by operation of law or otherwise, except that no such consent is needed for any assignment to an affiliate or any entity that acquires all or substantially all of the assets of that party or to any successor in a merger or acquisition of that party, provided that any such assignment by Sponsor shall in no way expand the scope of Services to be performed or the costs to be incurred by BBL under this Agreement or any applicable Statement of Work.  Notwithstanding the foregoing, BBL shall be entitled to retain from time to time, the services of subcontractors to provide Services under this Agreement, provided, however, that any such subcontractors to be used by BBL to provide services hereunder shall be consented to by Sponsor, which consent shall not be unreasonably withheld or delayed.  Fees for such subcontractors shall be applied to and paid by BBL as part of the fees paid by Sponsor to BBL hereunder.

 

15. NOTICES

 

All notices or approvals required or permitted hereunder shall be in writing and shall be deemed to have been given upon: (a) receipt if sent by certified or registered mail, postage prepaid, return receipt requested; (b) delivery if sent by a courier service that confirms delivery in writing; (c) the date sent by facsimile, with a confirmation copy sent via national overnight courier, or (d) email to such email address(es) as may be specified in writing by a Party with an acknowledged receipt email, in each of (a) through (c) addressed to the address set forth on the first page of this Agreement. Either party may change its address for such communications by giving notice thereof to the other party in conformity with this Section.

 

16. MISCELLANEOUS

 

  

12

  

16.1 Independent Parties; No Authority to Bind.  The relationship of BBL and Sponsor is that of independent contractors.  Neither party nor their employees are agents, partners, employers, employees, joint venturers, have any other kind of relationship with the other party except as specified in Schedule 5.  Neither party shall have any authority to bind the other party to any obligation by contract or otherwise.

 

16.2 Non-Compete.  During the term of this Agreement and for a period of five (5) years thereafter, BBL shall not directly or indirectly compete with the business of Sponsor or its Affiliates or conduct research on its own behalf or on the behalf of others within the same field as the CBLI Technology.

 

16.3 Non-Solicitation of Employees.

 

16.3.1 Sponsor shall not knowingly solicit or hire any current or former employee of BBL if doing so will cause such person to violate the terms of any employment agreement with BBL unless BBL consents to such employment.  Nothing contained herein shall prohibit Sponsor from hiring any person who responds to a job posting advertised in publications of general circulation.  The terms of this Section shall survive for a period of twelve (12) months after any termination or expiration of this Agreement or, with respect to any particular employee, for a period of twelve (12) months after any termination of such employee’s employment with BBL. Notwithstanding anything to the contrary contained herein, Sponsor may offer employment to any Key Person that they have received notice of intent to terminate from BBL or have given voluntary resignation notice to BBL pursuant to Section 7.1.9.

 

16.3.2 BBL shall not knowingly solicit or hire any current or former employee of Sponsor if doing so will cause such person to violate the terms of any employment agreement with Sponsor unless Sponsor consents to such employment.  Nothing contained herein shall prohibit BBL from hiring any person who responds to a job posting advertised in publications of general circulation.  The terms of this Section shall survive for a period of twelve (12) months after any termination or expiration of this Agreement or, with respect to any particular employee, for a period of twelve (12) months after any termination of such employee’s employment with Sponsor.

 

16.4 Governing Law.  This Agreement will in all events and for all purposes shall be governed by the laws of the State of New York, irrespective of its choice of law principles that would dictate the application of the law of another jurisdiction.  The parties hereby agree to exclude, waive and opt-out of any application of the United Nations Convention of Contracts for the International Sale of Goods.  

 

16.5 Severability; Enforcement; No Waiver.  If any provision of this Agreement shall be deemed invalid or unenforceable, in whole or in part, in any jurisdiction, it will not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision and this Agreement shall be deemed amended to delete or modify, as necessary, the invalid or unenforceable provision to render it valid, enforceable and, insofar as possible, consistent with the original intent of the parties.  The failure of a party to require performance of any obligations of the other party hereunder shall not be deemed a waiver and shall not affect its right to enforce any provision of this Agreement at a subsequent time.

 

16.6 Construction; Headings.  Titles and headings to sections in this Agreement are inserted for convenience of reference only and are not intended to affect the interpretation or construction of this Agreement.  If an ambiguity or question of intent arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring either party 

 

  

13

  

by virtue of authorship of any of the provisions of this Agreement. The terms “herein,” “hereof,” “hereunder” and similar expressions refer to this Agreement and not to any particular section or other portion hereof.

 

16.7 Counterparts.  This Agreement, any Research Plan, Statements of Work or Change Order entered into hereunder may be executed in one or more duplicate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed counterpart of this Agreement, any Research Plan, any Statement of Work, or of any Change Order electronically or by facsimile shall be effective as delivery of an original executed counterpart of this Amendment.

 

16.8 Amendment.  Any term or provision of this Agreement may be amended, and the observance of any term of this Agreement may be waived, only by a writing signed by both parties to be bound thereby.

 

16.9 Force Majeure.  Neither party shall be liable for failure or delay in performing any of its obligations under this Agreement if the failure or delay results from any natural disaster, act of war or terrorism, is required in order to comply with any governmental regulation, request or order, or is necessitated by other circumstances beyond the reasonable control of the party so failing or delaying.  Notwithstanding the above, strikes, work stoppage or slowdown, and labor disputes, whether or not such labor event is in the control of the parties, shall not constitute an excusable delay for either party under this Agreement. Each party agrees to notify the other party promptly of any factor, occurrence or event coming to its attention that may affect its ability to meet its obligations under this Agreement.

 

16.10 Entire Agreement.  This Agreement, together with all Research Plans, Statements of Work and Change Orders entered into hereunder, constitute the entire understanding and agreement of the parties, whether written or oral, and supersedes all prior and contemporaneous agreements or understandings between the parties with respect to the Services and Deliverables to be furnished by BBL hereunder.  In the event of any conflict between the provisions of this Agreement and a Research Plan, Statement of Work or Change Order, the terms and conditions of this Agreement shall prevail, provided that the parties may agree in a Statement of Work to supersede the terms of this Agreement by specifically identifying and approving in the applicable Statement of Work the specific terms to be superseded, in which case such terms shall govern only with respect to that particular Statement of Work.  Any terms set forth on a purchase order or other written documentation provided by Sponsor are hereby rejected and shall not be binding on BBL.

 

 

[Signature Page Follows]

 

 

  

14

  

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

 

 

	
CLEVELAND BIOLABS, INC.

	 	
BUFFALO BIOLABS, INC.

	 	 	 	 	 
	 	 	 	 	 
	
By:

	
/s/ Yakov Kogan

	 	
By:

	
/s/ Dmitry Tyomkin

	 	 	 	 
	
Name: Yakov Kogan, Ph.D., MBA

Title: Chief Executive Officer

	 	
Name: Dmitry Tyomkin, MBA

Title: President & CEO

 

 

 

 

  

15

  

Master Services Agreement 

Cleveland BioLabs, Inc. (CBLI)/ Buffalo BioLabs (BBL)

Research Statement of Work #2

 

Schedule 1

 

Research PLAN (Example)

 

Research Plan No. u

[Period covered by Research Plan]

 

THIS RESEARCH PLAN NO. u (the “Research Plan”) is agreed upon by and between Cleveland BioLabs, Inc. (“Sponsor”) and Buffalo BioLabs, LLC (“BBL”) and upon execution will be incorporated into the Master Service Agreement between Sponsor and BBL dated October __, 2013 (the “Agreement”). Capitalized terms in this Research Plan will have the same meaning as set forth in the Agreement. 

 

This Research Plan provides a brief outline of the main research tasks, deliverables and milestones included within u main Research Programs to be pursued by BBL, based on the direct request and funding support by CBLI. 

 

1.  INTRODUCTION/ BASIC CONCEPTS AND LOGISTICS OF OPERATION

 

2.  RESEARCH PLAN

 

 

3.  MISCELLANEOUS

 

All terms and conditions of the Master Services Agreement remain the same, except as modified herein.  The work described in this Research Plan is intended solely to serve as guidance for Statements of Work to be executed pursuant to this Research Plan.  This Research Plan is incorporated into and made a part of the Master Services Agreement. This Research Plan may be executed in one or more duplicate counterparts, each of which shall be deemed an original, but which collectively shall constitute one and the same instrument.  Any term or provision of this Research Plan may be amended, and the observance of any term of this Agreement may be waived, only by a Change Order signed by both parties to be bound thereby. 

 

Schedule 2 – Statement of Work Example

16

  

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

 

 

	CLEVELAND BIOLABS, INC.	 	BUFFALO BIOLABS, INC.
	 	 	 	 	 
	By:	 	 	By:	 
	Name:	 	 	Name:	 
	Title:	 	 	Title:	 
	Date:	 	 	Date:	 

 

 

 

 

 

 

  

BBL

  

Master Services Agreement 

Cleveland BioLabs, Inc. (CBLI)/ Buffalo BioLabs (BBL)

Research Statement of Work #2

 

Schedule 2

 

Statement of Work (Example)

 

[Research][Independent] Statement of Work No. u 

 

to 

 

Master Service Agreement

 

	
Overview of Statement of Work

	
Work Related To

	
u

	
Term

	
u

	
Total SOW Value

	
u

	
Payment Schedule

	
u

	
BBL Contact

	
u

	
CBLI Contact

	
u

THIS [RESEARCH] STATEMENT OF WORK (the “[Research] SOW”) is by and between Cleveland BioLabs, Inc. (“Sponsor”) and Buffalo BioLabs, LLC (“BBL”) [and is related to Research Plan No. u. Upon execution this Research SOW will be incorporated into the Master Service Agreement between Sponsor and BBL dated October __, 2013 (the “Agreement”).  Capitalized terms in this Research SOW will have the same meaning as set forth in the Agreement.

 

1.  DELIVERABLES

 

2.  RESEARCH SERVICES

 

2.1. [Concise paragraph descriptions of services BBL will provide under the Research SOW]

2.2. 

 

3.  PROJECT PROGRESS TRACKING

 

BBL shall provide bi-weekly progress reports with all completed units of work (study reports, publications, etc.) attached to the reports as exhibits. [revise as needed]

 

4.  COMPENSATION

 

[Describe invoicing and payment schedule]

 

Payment can be made by sending a check or wire transfer to in accordance with the terms set forth in the MSA the account listed below.

 

Name on Account:  Buffalo BioLabs, LLC

 

Bank:

 

Schedule 2 – Statement of Work Example

2

  

Master Services Agreement 

Cleveland BioLabs, Inc. (CBLI)/ Buffalo BioLabs (BBL)

Research Statement of Work #2

 

Bank Address:

 

SWIFT:

 

ABA Routing Number:

 

Account Number:

 

Any modifications to the price of any above listed activity shall be agreed upon by the parties in writing.

 

5.  ARCHIVE

 

All materials (e.g., protocol, raw data, reports) received by BBL due to performance hereunder will be archived in accordance with Section 6.5 of the Agreement.  All study samples shall be stored in accordance with Sponsor protocol for a period of X years after study completion.

 

6.  Miscellaneous

 

All terms and conditions of the Master Services Agreement remain the same, except as modified herein.  The work described in this Statement of Work will be done in strict accordance with any protocol provided by Sponsor for such work or agreed to by Sponsor, if such protocol is developed by BBL.  This Statement of Work is incorporated into and made a part of the Master Services Agreement. This Statement of Work may be executed in one or more duplicate counterparts, each of which shall be deemed an original, but which collectively shall constitute one and the same instrument.  Any term or provision of this Statement of Work may be amended, and the observance of any term of this Agreement may be waived, only by a Change Order signed by both parties to be bound thereby. 

 

 

Schedule 2 – Statement of Work Example

3

  

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

 

 

	CLEVELAND BIOLABS, INC.	 	BUFFALO BIOLABS, INC.
	 	 	 	 	 
	By:	 	 	By:	 
	Name:	 	 	Name:	 
	Title:	 	 	Title:	 
	Date:	 	 	Date:	 

 

 

 

  

BBL

  

Schedule 3

 

Change Order (Example)

 

Upon execution hereof, this Change Order shall amend and supersede the terms of that certain Statement of Work between BBL and Sponsor dated as of ____________________, 20__ (“Statement of Work”) with respect to the subject matter hereof.

 

 

[INSERT REVISED TERMS]

 

 

 

Effect of Change Order.  Except as expressly amended herein, the terms of the Statement of Work shall remain unchanged and in full force and effect.  This Change Order shall be subject to the terms and conditions of that certain Consulting Services Agreement between BBL and Sponsor.

 

 

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have executed this Change Order as of the date signed below by an authorized representative of BBL.

 

 

	CLEVELAND BIOLABS, INC.	 	BUFFALO BIOLABS, INC.
	 	 	 	 	 
	By:	 	 	By:	 
	Name:	 	 	Name:	 
	Title:	 	 	Title:	 
	Date:	 	 	Date:	 

 

 

  

 

  

Schedule 4

 

Key Persons

 

 

Andrei Osterman

 

Frederick Bone

 

Ivan Bespalov

 

Peter Krasnov

 

Alexander Shakhov

 

Catherine Burkhart

 

Vadim Mett

 

Anatoli Glieberman

 

Patricia Baker

 

  

 

  

Schedule 5

 

Relationship between Parties

 

As of the Effective Date, the following employees are co-employed by BBL and Sponsor

 

	
Employee

	
Labor Allocation as of Effective Date

	 	
Buffalo BioLabs

	
Cleveland BioLabs

	
Bone, Frederic

	
90%

	
10%

	
Bratanova-Toshkova, Troitza

	
80%

	
20%

	
Burdelya, Lyudmila

	
20%

	
0%

	
Cheney, Alec

	
80%

	
20%

	
Eychner, Deirdre

	
70%

	
30%

	
Gleiberman, Anatoli

	
85%

	
15%

	
Griffin, Pearl

	
75%

	
25%

	
Krasnov, Peter

	
40%

	
60%

	
McCullough, Shayla

	
80%

	
20%

	
Osterman, Andrei

	
85%

	
15%

	
Shakhov, Alexander

	
70%

	
30%

	
Shakhova, Vera

	
70%

	
30%

 

As of the Effective Date, Andrei Gudkov, Ph.D., D.Sci. is the Chief Scientific Officer of Sponsor and the 100% owner and President of BBL.EX-10.2

 Exhibit 10.2 
  

 
  

FORM OF 
 LIMITED
LIABILITY COMPANY AGREEMENT 
 OF 

CHENIERE GP HOLDING COMPANY, LLC 

(a Delaware Limited Liability Company) 

[—], 2013 

 
  

 

 TABLE OF CONTENTS 

 

							
	Article I Definitions	  	 	2	  
	 SECTION 1.01
	  	Definitions	  	 	2	  
	 SECTION 1.02
	  	Construction	  	 	5	  
		
	Article II Organization	  	 	5	  
	 SECTION 2.01
	  	Formation and Conversion	  	 	5	  
	 SECTION 2.02
	  	Name	  	 	6	  
	 SECTION 2.03
	  	Registered Office; Registered Agent; Principal Office	  	 	6	  
	 SECTION 2.04
	  	Purposes	  	 	6	  
	 SECTION 2.05
	  	Term	  	 	6	  
	 SECTION 2.06
	  	No State Law Partnership	  	 	7	  
	 SECTION 2.07
	  	Title to Company Assets	  	 	7	  
	 SECTION 2.08
	  	Liability of Members, Directors And Officers	  	 	7	  
		
	Article III Membership	  	 	7	  
	 SECTION 3.01
	  	Membership Interests; Additional Members	  	 	7	  
	 SECTION 3.02
	  	Access To Information	  	 	8	  
	 SECTION 3.03
	  	Liability	  	 	8	  
		
	Article IV Capital Contributions	  	 	8	  
	 SECTION 4.01
	  	Initial Capital Contributions	  	 	8	  
	 SECTION 4.02
	  	Loans	  	 	8	  
	 SECTION 4.03
	  	Return of Contributions	  	 	9	  
		
	Article V Distributions	  	 	9	  
	 SECTION 5.01
	  	Distributions	  	 	9	  
	 SECTION 5.02
	  	Varying Interests	  	 	9	  
	 SECTION 5.03
	  	Limitations on Distributions	  	 	9	  
		
	Article VI Management	  	 	9	  
	 SECTION 6.01
	  	Management by Board of Directors	  	 	9	  
	 SECTION 6.02
	  	Number; Qualification; Tenure	  	 	10	  
	 SECTION 6.03
	  	Regular Meetings	  	 	10	  
	 SECTION 6.04
	  	Annual Meetings	  	 	10	  
	 SECTION 6.05
	  	Special Meetings	  	 	10	  
	 SECTION 6.06
	  	Action By Consent of Board or Committee of Board	  	 	10	  
	 SECTION 6.07
	  	Conference Telephone Meetings	  	 	11	  
	 SECTION 6.08
	  	Quorum	  	 	11	  
	 SECTION 6.09
	  	Vacancies; Increases in the Number of Directors	  	 	11	  
	 SECTION 6.10
	  	Committees	  	 	11	  
	 SECTION 6.11
	  	Resignation or Removal	  	 	12	  
	 SECTION 6.12
	  	Compensation	  	 	12	  
		
	Article VII Officers	  	 	12	  
	 SECTION 7.01
	  	Elected Officers	  	 	12	  

  
 -i- 

							
	 SECTION 7.02
	  	Election and Term of Office	  	 	13	  
	 SECTION 7.03
	  	Chairman of the Board	  	 	13	  
	 SECTION 7.04
	  	Chief Executive Officer	  	 	13	  
	 SECTION 7.05
	  	President	  	 	14	  
	 SECTION 7.06
	  	Chief Financial Officer	  	 	14	  
	 SECTION 7.07
	  	Chief Operating Officer	  	 	14	  
	 SECTION 7.08
	  	Vice Presidents	  	 	14	  
	 SECTION 7.09
	  	Treasurer	  	 	14	  
	 SECTION 7.10
	  	Secretary	  	 	15	  
	 SECTION 7.11
	  	Powers of Attorney	  	 	15	  
	 SECTION 7.12
	  	Delegation of Authority	  	 	15	  
	 SECTION 7.13
	  	Compensation and Expenses	  	 	15	  
	 SECTION 7.14
	  	Removal	  	 	16	  
	 SECTION 7.15
	  	Vacancies	  	 	16	  
		
	Article VIII Member Meetings	  	 	16	  
	 SECTION 8.01
	  	Meetings	  	 	16	  
	 SECTION 8.02
	  	Notice of a Meeting	  	 	16	  
	 SECTION 8.03
	  	Action by Consent of Members	  	 	16	  
	 SECTION 8.04
	  	Member Vote	  	 	17	  
	 SECTION 8.05
	  	Designation of Directors	  	 	17	  
	 SECTION 8.06
	  	Cheniere Separation Event; Effect	  	 	17	  
		
	 Article IX Indemnification of Directors, Officers, Employees and Agents
	  	 	17	  
	 SECTION 9.01
	  	Indemnification	  	 	17	  
		
	 Article X Taxes, Books, Records, Reports, and Bank Accounts
	  	 	19	  
	 SECTION 10.01
	  	Federal Income Tax Treatment	  	 	19	  
	 SECTION 10.02
	  	Maintenance of Books	  	 	19	  
	 SECTION 10.03
	  	Reports	  	 	20	  
	 SECTION 10.04
	  	Bank Accounts	  	 	20	  
		
	 Article XI Dissolution, Winding-Up, Termination and Conversion
	  	 	20	  
	 SECTION 11.01
	  	Dissolution	  	 	20	  
	 SECTION 11.02
	  	Winding-Up and Termination	  	 	21	  
	 SECTION 11.03
	  	Certificate of Cancellation	  	 	22	  
		
	 Article XII Transfer Of Membership Interest
	  	 	22	  
		
	 Article XIII General Provisions
	  	 	22	  
	 SECTION 13.01
	  	Offset	  	 	22	  
	 SECTION 13.02
	  	Notices	  	 	22	  
	 SECTION 13.03
	  	Entire Agreement; Superseding Effect	  	 	23	  
	 SECTION 13.04
	  	Effect of Waiver or Consent	  	 	23	  
	 SECTION 13.05
	  	Amendment or Restatement	  	 	23	  
	 SECTION 13.06
	  	Binding Effect	  	 	24	  
	 SECTION 13.07
	  	Governing Law; Severability	  	 	24	  
	 SECTION 13.08
	  	Further Assurances	  	 	24	  
	 SECTION 13.09
	  	Counterparts	  	 	24	  

  
 ii 

 LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 CHENIERE GP HOLDING
COMPANY, LLC 
 A Delaware Limited Liability Company 

This LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) of CHENIERE GP HOLDING COMPANY, LLC, a
Delaware limited liability company (the “Company”), dated as of [—], 2013, is adopted, executed and agreed to by Cheniere Energy Partners LP Holdings, LLC, a Delaware
limited liability company (“Cheniere Holdings”), and Cheniere LNG Terminals, LLC, a Delaware limited liability company (“Terminals”), as the initial Members of the Company. 

WHEREAS, Cheniere Energy Partners GP, Inc. (the “Corporation”) was formed as a Delaware corporation
pursuant to the filing of the Certificate of Incorporation of the Corporation with the Secretary of State of the State of Delaware on July 18, 2012 (the “Certificate of Incorporation”); 

WHEREAS, the Corporation’s business was to act as the sole member of Cheniere Energy Partners GP, LLC; 

WHEREAS, by written consent, the board of directors of the Corporation adopted a resolution adopting and approving the conversion of the
Corporation to a Delaware limited liability company and the adoption of this Agreement, pursuant to the General Corporation Law of the State of Delaware, as amended from time to time (the “DGCL”); 

WHEREAS, on the date hereof, the Corporation was converted to a limited liability company (the “Conversion”) pursuant
to Section 266 of the DGCL and Section 18-214 of the Act, by the filing with the Secretary of State of the State of Delaware of a Certificate of Conversion to Limited Liability Company and a Certificate of Formation of the Company (the
“Certificate”); and 
 WHEREAS, pursuant to this Agreement and effective simultaneously with the Conversion, the
sole stockholder of the Corporation immediately prior to the Conversion is admitted to the Company as a member of the Company owning the limited liability company interests in the Company as set forth on Exhibit A attached hereto. 

NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

 ARTICLE I 

DEFINITIONS 

SECTION 1.01 Definitions. As used in this Agreement, the following terms have the respective meanings set forth below or set forth
in the Sections referred to below (unless otherwise expressly provided herein): 
 “Act” means the
Delaware Limited Liability Company Act, 6 Del. C. Sections 18-101, et seq., as amended, supplemented or restated from time to time, and any successor to such statute. 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one
or more intermediaries controls, is controlled by or is under common control with the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

“Agreement” means this Limited Liability Company Agreement of Cheniere GP Holding Company, LLC, as
amended from time to time. 
 “Applicable Law” means any United States federal, state,
local or foreign law, statute, rule, regulation, order, writ, injunction, judgment, decree or permit of any Governmental Authority. 

“Bankruptcy” or “Bankrupt” means, with respect to any Person, that (a) such
Person (i) makes a general assignment for the benefit of creditors; (ii) files a voluntary bankruptcy petition; (iii) becomes the subject of an order for relief or is declared insolvent in any federal or state bankruptcy or insolvency
proceedings; (iv) files a petition or answer seeking for such Person a reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any Applicable Law; (v) files an answer or other pleading
admitting or failing to contest the material allegations of a petition filed against such Person in a proceeding of the type described in subclauses (i) through (iv) of this clause (a); or (vi) seeks, consents to or acquiesces in the
appointment of a trustee, receiver or liquidator of such Person or of all or any substantial part of such Person’s properties; or (b) a proceeding seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or
similar relief under any Applicable Law has been commenced against such Person and 120 Days have expired without dismissal thereof or with respect to which, without such Person’s consent or acquiescence, a trustee, receiver or liquidator of
such Person or of all or any substantial part of such Person’s properties has been appointed and 90 Days have expired without such appointment having been vacated or stayed, or 90 Days have expired after the date of expiration of a stay, if the
appointment has not previously been vacated. The foregoing definition of “Bankruptcy” is intended to replace and shall supersede and replace the definition of “Bankruptcy” set forth in the Act. 

“Board” has the meaning given such term in Section 6.01. 

“Business Day” means Monday through Friday of each week, except that a legal holiday recognized as such
by the government of the United States of America or the State of Texas shall not be regarded as a Business Day. 

  
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 “Capital Contribution” means, with respect to any Member,
the amount of money and the agreed fair value of any property (other than money) contributed to the Company by such Member in respect of the issuance of a Membership Interest to such Member. Any reference in this Agreement to the Capital
Contribution of a Member shall include a Capital Contribution of its predecessors in interest. 

“Certificate” has the meaning given to such term in the recitals. 

“Certificate of Incorporation” has the meaning given such term in the recitals. 

“Cheniere Separation Event” means the occurrence of any event or series of related events that result in
Cheniere Energy, Inc. ceasing to own greater than 25% of the outstanding Common Shares (as defined in the Company Agreement) or ceasing to own greater than 25% of the outstanding Voting Shares (as defined in the Company Agreement).

 “Cheniere Holdings” means Cheniere Energy Partners LP Holdings, LLC, a Delaware limited
liability company.  
 “Class A Directors” has the meaning given such term in Section
8.05. 
 “Class B Director” has the meaning given such term in Section 8.05.

 “Class A Member” means a Member who holds a Class A Membership Interest in its
capacity as such a holder. 
 “Class B Member” means a Member who holds a Class B
Membership Interest in its capacity as such a holder. 
 “Class A Membership Interest”
means, with respect to any Class A Member at any time, (a) that Class A Member’s status as a Class A Member; (b) all rights, benefits and privileges enjoyed by that Class A Member (under the Act, this Agreement or
otherwise) in its capacity as a Class A Member, including that Class A Member’s rights to vote, consent and approve and otherwise to participate in the management of the Company; and (c) all obligations, duties and liabilities
imposed on that Class A Member (under the Act, this Agreement or otherwise) in its capacity as a Class A Member. For the avoidance of doubt, no Class A Member shall be entitled to any share of the income, gain, loss, deduction and
credits of the Company or have the right to receive distributions from the Company.  
 “Class B
Membership Interest” means, with respect to any Class B Member at any time, (a) that Class B Member’s status as a Class B Member; (b) that Class B Member’s share of the income, gain, loss, deduction and credits of,
and the right to receive distributions from, the Company; (c) all other rights, benefits and privileges enjoyed by that Class B Member (under the Act, this Agreement or otherwise) in its capacity as a Class B Member, including that Class B
Member’s rights to vote, consent and approve and otherwise to participate in the management of the Company; and (d) all obligations, duties and liabilities imposed on that Class B Member (under the Act, this Agreement or otherwise) in its
capacity as a Class B Member, including any obligations to make Capital Contributions. 

  
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 “Company” means Cheniere GP Holding Company, LLC, a
Delaware limited liability company. 
 “Company Agreement” means that certain Amended and Restated
Limited Liability Company Agreement of Cheniere Holdings, dated as of [—], 2013, as the same may be further amended and restated from time to time. 

“Company Property” means any and all property, both real and personal, tangible and intangible, whether contributed or
otherwise acquired, owned by the Company. 
 “Conversion” has the meaning given such term in the
recitals. 
 “Corporation” has the meaning given such term in the recitals.

 “Day” means a calendar day; provided, however, that, if any
period of Days referred to in this Agreement shall end on a Day that is not a Business Day, then the expiration of such period shall be automatically extended until the end of the next succeeding Business Day. 

“Director” or “Directors” has the meaning given such term in Section 6.02.

 “Dissolution Event” has the meaning given such term in Section 11.01(a). 

“DGCL” has the meaning given such term in the recitals. 

“GAAP” means generally accepted accounting principles as applied in the United States.

 “Governmental Authority” or “Governmental” means any federal,
state, local or foreign court or governmental or regulatory agency or authority or any arbitration board, tribunal or mediator having jurisdiction over the Company or its assets or Members. 

“Indemnitee” means (a) any Person who is or was an Affiliate of the Company, (b) any Person
who is or was a member, partner, officer, director, employee, agent or trustee of the Company or any Affiliate of the Company and (c) any Person who is or was serving at the request of the Company or any Affiliate of the Company as an officer,
director, employee, member, partner, agent, fiduciary or trustee of another Person; provided, however, that a Person shall not be an Indemnitee by reason of providing, on a fee-for-services basis, trustee,
fiduciary or custodial services. 
 “Members” means (i) prior to a Cheniere
Separation Event, the Class A Members, Class B Members and any Person hereafter admitted to the Company as a member as provided in this Agreement and (ii) after a Cheniere Separation Event, the Class B Members and any Person hereafter
admitted to the Company as a member as provided in this Agreement. For the avoidance of doubt, such term does not include any Person who has ceased to be a member of the Company, including pursuant to Section 8.06. 

“Membership Interests” means (i) prior to a Cheniere Separation Event, the Class A Membership
Interests and the Class B Membership Interests and (ii) after a Cheniere Separation Event, the Class B Membership Interests. 

  
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 “Officer” means any person elected as an officer of the
Company as provided in Section 7.01, but such term does not include any person who has ceased to be an officer of the Company. 

“Person” means an individual or a corporation, limited liability company, partnership, joint venture,
trust, unincorporated organization, association, Government Authority or political subdivision thereof or other entity. 

“Registered Public Accountants” means a firm of independent registered certified public accountants
selected from time to time by the Board. 
 “Sharing Ratio” means, subject in
each case to adjustments in accordance with this Agreement, (a) in the case of a Member executing this Agreement as of the date of this Agreement or a Person acquiring such Member’s Membership Interest, the percentage specified for that
Member as its Sharing Ratio on Exhibit A, and (b) in the case of Membership Interests issued pursuant to Section 3.01, the Sharing Ratio established pursuant thereto; provided, however, that the total of all Sharing
Ratios shall always equal 100%. The Class A Member shall have a Sharing Ratio equal to 0%. 

“Term” has the meaning given such term in Section 2.05. 

“Terminals” means Cheniere LNG Terminals, LLC, a Delaware limited liability company. 

SECTION 1.02 Construction. 

Unless the context requires otherwise, (a) the gender of all words used in this Agreement includes the masculine, feminine and neuter;
(b) the singular forms of nouns, pronouns and verbs shall include the plural and vice versa; (c) all references to Articles and Sections refer to articles and sections in this Agreement, each of which is made a part for all purposes;
(d) all references to Applicable Laws refer to such Applicable Laws as they may be amended from time to time, and references to particular provisions of an Applicable Law include any corresponding provisions or any succeeding Applicable Law;
(e) references to money refer to the legal currency of the United States of America; and (f) the term “include” or “includes” means includes, without limitation, and “including” means including, without
limitation. 
 ARTICLE II 

ORGANIZATION 

SECTION 2.01 Formation and Conversion. 

Effective as of the time of the Conversion and without any further action by any Person, (i) the Certificate of Incorporation and the
bylaws of the Corporation, each in effect at the effective time of the Conversion, are replaced and superseded in their entirety by the Certificate and this Agreement in respect of all periods beginning on or after the Conversion, (ii) the sole
stockholder of the Corporation immediately prior to the Conversion is automatically admitted to the Company as a member of the Company upon its execution of this Agreement, (iii) the shares of stock in the Corporation issued and outstanding
immediately prior to the effective time of the Conversion are collectively converted into all of the Class B Membership Interests in the 

  
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Company, and the ownership of limited liability company interests in the Company by the members of the Company upon the Conversion is set forth on Exhibit A attached hereto, (iv) the
Members are continuing the business of the Corporation without dissolution in the form of a Delaware limited liability company governed by this Agreement, (v) in accordance with Section 266 of DGCL and Section 18-214(g) of the Act,
the Company shall constitute a continuation of the existence of the Corporation in the form of a Delaware limited liability company and, for all purposes of the laws of the State of Delaware, shall be deemed to be the same entity as the Corporation,
and (vi) all certificates evidencing shares of capital stock in the Corporation issued by the Corporation and outstanding immediately prior to the Conversion shall be surrendered to the Company and shall be canceled on the books and records of
the Corporation. Upon its execution of this Agreement, Cheniere Holdings was admitted as a member of the Company. 
 SECTION 2.02
Name. 
 The name of the Company is “Cheniere GP Holding Company, LLC” and all Company business
must be conducted in that name or such other names that comply with Applicable Law as the Directors may select. 

SECTION 2.03 Registered Office; Registered Agent; Principal Office. 

The name of the Company’s registered agent for service of process is Corporation Service Company, and the address of the Company’s
registered office and registered agent in the State of Delaware is 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808. The principal place of business of the Company shall be located at 700 Milam Street, Suite 800, Houston, Texas 77002.
The Members may change the Company’s registered agent or the location of the Company’s registered office or principal place of business as the Members may from time to time determine by filing an amendment to the Company’s Certificate
of Formation. The Company may have such other offices as the Members may designate. 
 SECTION 2.04 Purposes. 

The purposes of the Company are to act as the sole member of Cheniere Partners’ general partner and to engage in any lawful business or
activity ancillary or related thereto. The Company shall possess and may exercise all of the powers and privileges granted by the Act, by any other Applicable Law or by this Agreement, together with any powers incidental thereto, including such
powers and privileges as are necessary or appropriate to the conduct, promotion or attainment of the businesses, purposes or activities of the Company. 

SECTION 2.05 Term. 

The period of existence of the Company (the “Term”) commenced upon the filing of the Certificate of
Incorporation with the Secretary of State of Delaware and shall end at such time as a certificate of cancellation is filed with the Secretary of State of the State of Delaware in accordance with Section 11.03. 

  
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 SECTION 2.06 No State Law Partnership. 

It is intended that the Company shall be a limited liability company formed under the Applicable Laws of the State of Delaware and shall not be
a partnership (including a limited partnership) or joint venture, and that no Member shall be a partner or joint venturer of any other party for any purposes other than federal, state, local and foreign income tax purposes, and this Agreement may
not be construed to suggest otherwise. 
 SECTION 2.07 Title to Company Assets. 

Title to Company assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Company as an
entity, and no Member shall have any ownership interest in such Company assets or portion thereof. 
 SECTION 2.08 Liability of
Members, Directors And Officers. 
 No Member, Director or Officer, solely by reason of being a Member, Director or Officer, shall be
liable, under a judgment, decree or order of a court, or in any other manner, for a debt, obligation or liability of the Company, whether arising in contract, tort or otherwise, or for the acts or omissions of any other Member, Director, Officer,
agent or employee of the Company or its Affiliates. The failure of the Company to observe any formalities or requirements relating to the exercise of its powers or management of its business or affairs shall not be grounds for imposing liability for
any such debts, obligations or liabilities of the Company. 
 ARTICLE III 

MEMBERSHIP 

SECTION 3.01 Membership Interests; Additional Members. 

Cheniere Holdings is the initial Class A Member and Terminals is the initial Class B Member, holding the respective Membership Interests
as reflected on Exhibit A hereto. Additional Person(s) may be admitted to the Company as Members upon the unanimous approval of the existing Members, without any approval of the Board, on such terms and conditions as the Members
determine at the time of such admission. The terms of admission or issuance of limited liability company interests in the Company must specify the Sharing Ratios applicable thereto and may provide for the creation of different classes or groups of
Members or limited liability company interests in the Company having different rights, powers and duties. The Members may reflect the creation of any new class or group in an amendment to this Agreement, executed in accordance with
Section 13.05, indicating the different rights, powers and duties thereof. Any such amendment shall be approved and executed by the Members. Any such admission is effective only after such new Member has executed and delivered to the Members
and the Company an instrument containing the notice address of the new Member and such new Member’s ratification of this Agreement and agreement to be bound by it. Upon the admission of a new Member, Exhibit A will be updated to
reflect such admission. 

  
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 SECTION 3.02 Access To Information. 

Each Member shall be entitled to receive any information that it may request concerning the Company, for any purpose reasonably related
to its interest in the Company; provided, however, that this Section 3.02 shall not obligate the Company to create any information that does not already exist at the time of such request (other than to convert existing information from
one medium to another, such as providing a printout of information that is stored in a computer database). Each Member shall also have the right, upon reasonable notice and at all reasonable times during usual business hours, to inspect the
properties of the Company and to audit, examine and make copies of the books of account and other records of the Company, for any purpose reasonably related to its interest in the Company. Such right may be exercised through any agent or employee of
such Member designated in writing by it or by an independent public accountant, engineer, attorney or other consultant so designated. All costs and expenses incurred in any inspection, examination or audit made on such Member’s behalf shall be
borne by such Member. 
 SECTION 3.03 Liability. 

Except as otherwise required under the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or
otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Member or beneficial owner of any Membership Interest shall be personally liable for or otherwise obligated with respect to any such debt, obligation or
liability of the Company by reason of being a Member or beneficial owner of such Membership Interest. The Members and beneficial owners agree that their rights, duties and obligations in their capacities as Members and beneficial owners are only as
set forth in this Agreement and as otherwise arise under the Act. Furthermore, the Members and beneficial owners agree that the existence of any rights of a Member or beneficial owner, or the exercise or forbearance from exercise of any such rights
shall not create any duties or obligations of the Member or beneficial owner in their capacities as such, nor shall such rights be construed to enlarge or otherwise alter in any manner the duties and obligations of the Member or beneficial owner.

 ARTICLE IV 
 CAPITAL
CONTRIBUTIONS 
 SECTION 4.01 Initial Capital Contributions. 

Cheniere Holdings and Terminals are deemed to have made the Capital Contributions as reflected on Exhibit A in exchange for all of the
Class A Membership Interests and Class B Membership Interests in the Company, respectively. Upon the admission of a subsequent Member, Exhibit A shall be updated to reflect the Capital Contribution attributable to such Member. After
admission as a Member, no Member shall be obligated to make any additional capital contributions to the Company. 
 SECTION 4.02
Loans. 
 If the Company does not have sufficient cash to pay its obligations, any Member may advance all or part of the needed funds
to or on behalf of the Company. An advance described in this Section 4.02 constitutes a loan from the Member to the Company, shall bear interest at a rate comparable to the rate the Company could obtain from third parties, from the date of the
advance until the date of payment, and is not a Capital Contribution. 

  
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 SECTION 4.03 Return of Contributions. 

Except as expressly provided herein, no Member is entitled to the return of any part of its Capital Contributions or to be paid interest in
respect of its Capital Contributions. An unrepaid Capital Contribution is not a liability of the Company or of any Member. A Member is not required to contribute or to lend any cash or property to the Company to enable the Company to return any
Member’s Capital Contributions. 
 ARTICLE V 

DISTRIBUTIONS 

SECTION 5.01 Distributions. 

Except as otherwise provided in Section 11.02, cash may be distributed at such time and in such amounts as the Board shall determine to
the Members in accordance with their respective Sharing Ratios. Such distributions shall be made concurrently to such Members as reflected on the books of the Company on the date set for purposes of such distribution. 

SECTION 5.02 Varying Interests. 

All distributions shall be made, to the Persons shown on the records of the Company to have been Members as of the last calendar day of the
period for which the distribution is to be made. 
 SECTION 5.03 Limitations on Distributions. 

No distribution shall be declared and paid unless, after the distribution is made, the fair value of assets of the Company would exceed the
liabilities of the Company, except liabilities to the Members on account of their Capital Contributions. Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make a distribution to any Member on account of
its interest in the Company if such distribution would violate any Applicable Law. 
 ARTICLE VI 

MANAGEMENT 

SECTION 6.01 Management by Board of Directors. 

The business and affairs of the Company shall be fully vested in, and managed by, a Board of Directors (the
“Board”) and, subject to the discretion of the Board, Officers elected pursuant to Article VII. The Directors and Officers shall collectively constitute “managers” of the Company within the meaning of the Act.
Except as otherwise specifically provided in this Agreement, no Member, by virtue of having the status of a Member, shall have or attempt to exercise or assert any management power over the business and affairs of the Company or shall have or
attempt to exercise or assert actual or apparent authority to enter contracts on behalf of, or to otherwise bind, the Company. Except as otherwise provided in this Agreement, the  

  
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authority and functions of the Board, on the one hand, and of the Officers, on the other hand, shall be identical to the authority and functions of the board of directors and officers,
respectively, of a corporation organized under the DGCL. The Officers shall be vested with such powers and duties as are set forth in Article VII and as are specified by the Board. Accordingly, except as otherwise specifically provided in this
Agreement, the business and affairs of the Company shall be managed under the direction of the Board, and the day-to-day activities of the Company shall be conducted on the Company’s behalf by the Officers who shall be agents of the Company.

 SECTION 6.02 Number; Qualification; Tenure. 

Prior to a Cheniere Separation Event, the number of directors constituting the Board shall be four (4) (each a
“Director” and, collectively, the “Directors”). A Director need not be a Member nor a resident of the State of Delaware. Each Director shall be designated by the Members in accordance with
Section 8.05 and shall serve as a Director of the Company until their death or removal from office or until their successors are elected and qualified. The Board in its discretion may elect from among the Directors a chairman of the Board of
Directors who shall preside at meetings of the Directors. 
 SECTION 6.03 Regular Meetings. 

Regular meetings of the Board shall be held at such time and place as shall be designated from time to time by resolution of the Board. Notice
of such regular meetings shall not be required. 
 SECTION 6.04 Annual Meetings. 

Annual meetings of the Board shall be held, without further notice, immediately following the annual meeting of the Members, and at the same
place, or at such other time and place as shall be fixed with the consent in writing of all of the Directors. 
 SECTION 6.05
Special Meetings. 
 A special meeting of the Board or any committee thereof may be called by any member of the Board or a committee
thereof on at least three (3) days notice to the other members of such Board or committee, either personally or by mail, telephone, telegraph or electronic mail. Any such notice, or waiver thereof, need not state the purpose of such meeting,
except for amendments to this Agreement and as may otherwise be required by Applicable Law. Attendance of a Director at a meeting shall constitute a waiver of notice of such meeting, except where such Director attends the meeting for the express
purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened. 

SECTION 6.06 Action By Consent of Board or Committee of Board. 

Subject to Article XIII, and to the extent permitted by Applicable Law, any action required or permitted to be taken at a meeting of the Board
or any committee thereof may be 

  
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taken without a meeting, without prior notice and without a vote, so long as a consent or consents in writing, setting forth the action so taken, are signed by at least as many members of, and
the types of members of, the Board or committee thereof as would have been required to take such action at a meeting of the Board or such committee thereof at which all members of the Board or committee were present. 

SECTION 6.07 Conference Telephone Meetings. 

Directors or members of any committee of the Board may participate in and hold a meeting of the Board or such committee by means of conference
telephone, video conference or similar communications equipment by means of which all Persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at such meeting. 

SECTION 6.08 Quorum. 

A majority of all Directors, present in person or participating in accordance with Section 6.07, shall constitute a quorum for the
transaction of business, unless a greater number is required by Applicable Law; but if at any meeting of the Board there shall be less than a quorum present, a majority of the Directors present may adjourn the meeting from time to time, without
notice, other than announcement at the meeting, until a quorum shall be present. Except as otherwise required by Applicable Law, all decisions of the Board, or any committee thereof, shall require the affirmative vote of a majority of the members of
the Board, or any committee thereof, respectively, present at a meeting duly called in accordance with this Article VI. The Directors present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the
withdrawal of enough Directors to leave less than a quorum. 
 SECTION 6.09 Vacancies; Increases in the Number of Directors.

 Vacancies shall be filled by the Members in accordance with Section 8.05. Any Director so chosen shall hold office until the next
annual election and until his successor shall be duly elected and shall qualify, unless sooner displaced. 
 SECTION 6.10
Committees. 
 (a) The Board may establish committees of the Board and may delegate any of its responsibilities, except as otherwise
prohibited by Applicable Law, to such committees. 
 (b) A majority of any committee, present in person or participating in accordance with
Section 6.07, shall constitute a quorum for the transaction of business of such committee, and the affirmative vote of a majority of the committee members present shall be necessary for the adoption by it of any resolution, unless the
affirmative vote of a majority of the members of any such committee is required by Applicable Law or otherwise. 
 (c) A majority of any
committee may determine its action and fix the time and place of its meetings unless the Board shall otherwise provide. Notice of such meetings shall be given to each member of the committee in the manner provided for in Section 13.02. The
Board shall have power at any time to fill vacancies in, to change the membership of, or to dissolve any such committee. 

  
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 (d) Any committee established pursuant to this Section 6.10 shall choose its own chairman
and keep regular minutes of its proceedings and report the same to the Board when requested. 
 (e) The Board may designate one or more
Directors as alternate members of any committee who may replace any absent or disqualified member at any meeting of such committee. In the absence or disqualification of a member of a committee, the member or members present at any meeting and not
disqualified from voting, whether or not constituting a quorum, may unanimously appoint another member of the Board to act at the meeting in the place of the absent or disqualified member. 

Nothing herein shall be deemed to prevent the Board from appointing one or more committees consisting in whole or in part of persons
who are not Directors; provided, however, that no such committee shall have or may exercise any authority of the Board. 

SECTION 6.11 Resignation or Removal. 

Any Director may resign at any time upon written notice to the Board or any Director or Officer of the Company. Such resignation shall take
effect at the time specified in such written notice, and unless otherwise specified therein, no acceptance of such resignation shall be necessary to make it effective. 

Any Director or the entire Board may be removed at any time, with or without cause, by the Member designating such Director;
provided, that the Class A Directors shall be removed immediately upon a Cheniere Separation Event without any further action by the Members. 

Vacancies in the Board caused by any such resignation or removal shall be filled in accordance with Section 6.09. 

SECTION 6.12 Compensation. 

The members of the Board who are neither Officers nor employees of the Company or any Affiliate thereof shall be entitled to compensation for
their service as directors and committee members at rates established from time to time by resolution of the Board and shall be reimbursed for out-of-pocket expenses incurred in connection with attending meetings of the Board or committees thereof.

 ARTICLE VII 

OFFICERS 

SECTION 7.01 Elected Officers. 

The Officers of the Company shall serve at the pleasure of the Board. Such Officers shall have the authority and duties delegated to each of
them, respectively, by the Board from time to time. No Officer need be a Member or Director. Any number of Offices may be held by the 

  
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same Person. The Officers of the Company shall be a Chairman of the Board, a Chief Executive Officer, a Chief Financial Officer, a Secretary, a Treasurer and such other officers (including,
without limitation, a President, a Chief Operating Officer, Executive Vice Presidents, Senior Vice Presidents and Vice Presidents) as the Board from time to time may deem proper. 

The Chairman of the Board shall be chosen by the Board from among the Directors. All Officers elected by the Board shall each have such powers
and duties as generally pertain to their respective offices, subject to the specific provisions of this Article VII and shall perform such additional duties as the Board may, from time to time, delegate to them. The Board or any committee thereof
may from time to time elect or appoint, as the case may be, such other Officers (including one or more Vice Presidents, Controllers, Assistant Secretaries and Assistant Treasurers) and agents, as may be necessary or desirable for the conduct of the
business of the Company. Such other Officers and agents shall have such duties and shall hold their offices for such terms as shall be provided in this Agreement or as may be prescribed by the Board or such committee, as the case may be. 

SECTION 7.02 Election and Term of Office. 

The Officers of the Company shall be elected annually by the Board at the regular meeting of the Board held after the annual meeting of the
Members or at such time and for such term as the Board shall determine. Each Officer shall hold office until such Person’s successor shall have been duly elected and shall have qualified or until such Person’s death or until he or she
shall resign or be removed pursuant to Section 7.14. 
 SECTION 7.03 Chairman of the Board. 

The Chairman of the Board shall preside at all meetings of the Board. If the Chairman is unable to preside at a meeting of the Board and the
Chief Executive Officer is also unable to preside at such meeting pursuant to Section 7.04 and the President is also unable to preside at such meeting pursuant to Section 7.05, then the Directors may appoint another Director to preside at
such meeting. The Directors also may elect a Vice-Chairman to act in the place of the Chairman upon his absence or inability to act. 

SECTION 7.04 Chief Executive Officer. 

The Chief Executive Officer shall be responsible for the general management of the affairs of the Company and shall perform all duties
incidental to such Person’s office that may be required by Applicable Law and all such other duties as are properly required of him or her by the Board. The Chief Executive Officer shall supervise generally the affairs of the Company, its other
Officers, employees and agents and may take all actions that the Company may legally take. He or she shall make reports to the Board and the Members and shall see that all orders and resolutions of the Board and of any committee thereof are carried
into effect. The Chief Executive Officer shall have full authority to execute all deeds, mortgages, bonds, contracts, documents or other instruments, except in cases where the execution thereof shall be expressly delegated by the Board to some other
Officer or agent of the Company or shall be required by Applicable Law to be otherwise executed. The Chairman of the Board may serve in the capacity of Chief Executive Officer. If the Chairman of the Board does not so serve, then the Chief Executive
Officer, if he or she is also a Director, shall, in the absence of or because of the inability of the Chairman of the Board to act, perform all duties of the Chairman of the Board and preside at all meetings of the Board. 

  
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 SECTION 7.05 President. 

The Chief Executive Officer may serve in the capacity as President. If the Chief Executive Officer does not so serve, then the President shall
assist the Chief Executive Officer in the administration and operation of the Company’s business and general supervision of its policies and affairs. The President shall have full authority to execute all deeds, mortgages, bonds, contracts,
documents or other instruments, except in cases where the execution thereof shall be expressly delegated by the Board to some other Officer or agent of the Company or shall be required by Applicable Law to be otherwise executed. In the absence of
the Chairman of the Board and a Chief Executive Officer, the President, if he or she is also a Director, shall preside at all meetings of the Board. 

SECTION 7.06 Chief Financial Officer. 

The Chief Financial Officer shall be responsible for financial reporting for the Company and shall perform all duties incidental to such
Person’s office that may be required by Applicable Law and all such other duties as are properly required by of him or her by the Board. He or she shall make reports to the Board and shall see that all orders and resolutions of the Board and
any committee thereof relating to financial reporting are carried into effect. He or she shall also render to the Board or the Chief Executive Officer, whenever any of them request it, an account of all of his or her transactions as Chief Executive
Officer and of the financial condition of the Company. The Chief Financial Officer shall have the same power as the Chief Executive Officer to execute documents on behalf of the Company. 

SECTION 7.07 Chief Operating Officer. 

The Chief Operating Officer of the Company shall assist the President and Chief Executive Officer in the administration and operation of the
Company’s business and general supervision of its policies and affairs. 
 SECTION 7.08 Vice Presidents. 

Each Executive Vice President and Senior Vice President and any Vice President shall have such powers and shall perform such duties as may from
time to time be assigned to him or her by the Board, the President or the Chief Executive Officer. 
 SECTION 7.09 Treasurer.

 (a) The Treasurer shall exercise general supervision over the receipt, custody and disbursement of Company funds. The Treasurer shall, in
general, perform all duties incident to the office of Treasurer and shall have such further powers and duties and shall be subject to such directions as may be granted or imposed from time to time by the Board and the Chief Financial Officer. 

  
 -14- 

 (b) Assistant Treasurers shall have such authority and perform such duties of the Treasurer as
may be provided in this Agreement or assigned to them by the Board or the Treasurer. Assistant Treasurers shall assist the Treasurer in the performance of the duties assigned to the Treasurer and, in assisting the Treasurer, each Assistant Treasurer
shall for such purpose have the powers of the Treasurer. During the Treasurer’s absence or inability or refusal to act, the Treasurer’s authority and duties shall be possessed by such Assistant Treasurer or Assistant Treasurers as the
Board may designate. 
 SECTION 7.10 Secretary. 

(a) The Secretary shall keep or cause to be kept, in one or more books provided for that purpose, the minutes of all meetings or actions of the
Board, the committees of the Board and the Members. The Secretary shall (i) see that all notices are duly given in accordance with the provisions of this Agreement and as required by Applicable Law; (ii) be custodian of the records and the
seal of the Company and affix and attest the seal to all documents to be executed on behalf of the Company under its seal; (iii) see that the books, reports, statements, certificates and other documents and records required by Applicable Law to
be kept and filed are properly kept and filed; and (iv) in general, perform all of the duties incident to the office of Secretary and such other duties as from time to time may be assigned to the Secretary by the Board. 

(b) Assistant Secretaries shall have such authority and perform such duties of the Secretary as may be provided in this Agreement or assigned
to them by the Board or the Secretary. Assistant Secretaries shall assist the Secretary in the performance of the duties assigned to the Secretary, and in assisting the Secretary, each Assistant Secretary shall for such purpose have the powers of
the Secretary. During the Secretary’s absence or inability or refusal to act, the Secretary’s authority and duties shall be possessed by such Assistant Secretary or Assistant Secretaries as the Board may designate. 

SECTION 7.11 Powers of Attorney. 

The Company may grant powers of attorney or other authority as appropriate to establish and evidence the authority of the Officers and other
Persons. 
 SECTION 7.12 Delegation of Authority. 

Unless otherwise provided by this Agreement or by resolution of the Board, no Officer shall have the power or authority to delegate to any
Person such Officer’s rights and powers as an Officer to manage the business and affairs of the Company. 
 SECTION 7.13
Compensation and Expenses. 
 The salaries or other compensation, if any, of the Officers and agents of the Company shall be
fixed from time to time by the Board; provided, however, that no such Officer or agent shall have any contractual rights against the Company for compensation by virtue of such election or appointment beyond the date of the election or
appointment of such Person’s successor, such Person’s death, such Person’s resignation or such Person’s removal, whichever event shall first occur, except as otherwise provided in an employment contract or under an employee
deferred compensation plan. 

  
 -15- 

 The Officers and agents shall be entitled to be reimbursed for out-of-pocket costs and expenses
incurred in the course of their service hereunder. 
 SECTION 7.14 Removal. 

Any Officer elected, or agent appointed, by the Board may be removed, either with or without cause, by the affirmative vote of a majority of
the Board whenever, in their judgment, the best interests of the Company would be served thereby. 
 SECTION 7.15 Vacancies.

 A newly created elected office and a vacancy in any elected office because of death, resignation or removal may be filled by the Board for
the unexpired portion of the term at any meeting of the Board. 
 ARTICLE VIII 

MEMBER MEETINGS 

SECTION 8.01 Meetings. 

Except as otherwise provided in this Agreement, all acts of the Members to be taken hereunder shall be taken in the manner provided in this
Article VIII. An annual meeting of the Members for the election of Directors and the transaction of such other business as may properly come before the meeting shall be held at such time and place as the Board shall specify from time to time.
Special meetings of the Members may be called by the Board or by any Member. A Member shall call a meeting by delivering to the Board one or more requests in writing stating that the signing Member wishes to call a meeting and indicating the general
or specific purposes for which the meeting is to be called. 
 SECTION 8.02 Notice of a Meeting. 

Notice of a meeting called pursuant to Section 8.01 shall be given to the Members in writing by mail or other means of communication in
accordance with Section 13.02. The notice shall be deemed to have been given at the time when deposited in the mail or sent by other means of communication. 

Attendance of a Member at a meeting shall constitute a waiver of notice of such meeting, except where a Member attends the meeting for the
express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened. 

SECTION 8.03 Action by Consent of Members. 

Notwithstanding any provision contained in this Article VIII, any action that may be taken at a meeting of the Members may be taken without a
meeting if a written consent setting forth such action is signed by the Members holding not less than the minimum percentage of the Membership Interests that would be necessary to authorize or take such action at a meeting at which all of the
Members entitled to vote on such matter were present and voted. 

  
 -16- 

 SECTION 8.04 Member Vote. 

Unless a provision of this Agreement specifically provides otherwise, prior to a Cheniere Separation Event, any provision of this Agreement
requiring the authorization of, or action taken by, the Members shall require the approval of the Members holding a majority of the Class A Membership Interests. 

SECTION 8.05 Designation of Directors. 

Prior to a Cheniere Separation Event, (a) the Class A Members shall have the right to designate three
(3) Directors (the “Class A Directors”), who shall initially be [—], [—] and
[—], and (b) the Class B Members shall have the right to designate one (1) Director (the “Class B Director”), who shall initially be [—]. After a Cheniere Separation Event, the Class B Members shall have the right to designate all of the Directors. 

SECTION 8.06 Cheniere Separation Event; Effect. 

(a) Upon the occurrence of a Cheniere Separation Event, the Class A Membership Interests shall be redeemed in their entirety for an
aggregate of one dollar ($1), effective concurrently with the consummation of the Cheniere Separation Event. Upon any such redemption, the Class A Membership Interests shall no longer constitute issued and outstanding Membership Interests and
the Class A Members shall cease to be Members of the Company. 
 (b) Notwithstanding any other provision of this Agreement, at any time
after a Cheniere Separation Event, the rights, powers and obligations of the Class A Members under this Agreement shall vest in the remaining Members and any provision herein that requires a Member to make a delivery to, or to obtain the
consent of, the other Members of the Company shall be disregarded until such time as an additional Person is admitted as Member of the Company. 

ARTICLE IX 

INDEMNIFICATION OF DIRECTORS, 

OFFICERS, EMPLOYEES AND AGENTS 

SECTION 9.01 Indemnification. 

(a) To the fullest extent permitted by law, but subject to the limitations expressly provided in this Agreement, all Indemnitees shall
be indemnified and held harmless by the Company from and against any and all losses, claims, damages, liabilities, whether joint or several, expenses (including legal fees and expenses), judgments, fines, penalties, interest, settlements or other
amounts arising from any and all claims, demands, actions, suits or proceedings, whether civil, criminal, administrative or investigative, in which any Indemnitee may be involved, or is threatened to be involved, as a party or otherwise, by reason
of the Indemnitee’s serving or having served, or taking or having taken any action or inaction in, any capacity that causes or caused the Indemnitee to be an Indemnitee; provided, however, that the Indemnitee shall not be indemnified and
held harmless if there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the matter for which the Indemnitee is seeking indemnification pursuant to this Section 9.01, the
Indemnitee acted in bad faith, engaged in fraud or willful misconduct or, in the case of a criminal  

  
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matter, acted with knowledge that the Indemnitee’s conduct was unlawful. Any indemnification pursuant to this Section 9.01 shall be made only out of the assets of the Company, it being
agreed that the Members shall not be liable for such indemnification and shall have no obligation to contribute or loan any monies or property to the Company to enable it to effectuate such indemnification. 

(b) To the fullest extent permitted by law, expenses (including legal fees and expenses) incurred by an Indemnitee who is indemnified pursuant
to Section 9.01(a) in defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Company prior to the final disposition of such claim, demand, action, suit or proceeding, upon receipt by the Company of
any undertaking by or on behalf of the Indemnitee to repay such amount if it shall be determined that the Indemnitee is not entitled to be indemnified as authorized in this Section 9.01. 

(c) The indemnification provided by this Section 9.01 shall be in addition to any other rights to which an Indemnitee may be entitled
under any agreement, as a matter of law or otherwise, both as to actions in the Indemnitee’s capacity as an Indemnitee and as to actions in any other capacity, and shall continue as to an Indemnitee who has ceased to serve in such capacity and
shall inure to the benefit of the heirs, successors, assigns and administrators of the Indemnitee. 
 (d) The Company may purchase and
maintain insurance on behalf of the Company, its Affiliates, the Board, the Officers and such other Persons as the Board shall determine, against any liability that may be asserted against, or expense that may be incurred by, such Person in
connection with the Company’s activities or such Person’s activities on behalf of the Company, regardless of whether the Company would have the power to indemnify such Person against such liability under the provisions of this Agreement.

 (e) For purposes of this Section 9.01, (i) the Company shall be deemed to have requested an Indemnitee to serve as fiduciary of
an employee benefit plan whenever the performance by the Indemnitee of its duties to the Company also imposes duties on, or otherwise involves services by, the Indemnitee to the plan or participants or beneficiaries of the plan; (ii) excise
taxes assessed on an Indemnitee with respect to an employee benefit plan pursuant to Applicable Law shall constitute “fines” within the meaning of Section 9.01(a); and (iii) action taken or omitted by the Indemnitee with respect
to any employee benefit plan in the performance of the Indemnitee’s duties for a purpose reasonably believed by such Indemnitee to be in the best interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose
that is in the best interests of the Company. 
 (f) An Indemnitee shall not be denied indemnification in whole or in part under this
Section 9.01 because the Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement. 

(g) The provisions of this Section 9.01 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and
shall not be deemed to create any rights for the benefit of any other Persons. 

  
 -18- 

 (h) No amendment, modification or repeal of this Section 9.01 or any provision hereof shall
in any manner terminate, reduce or impair the right of any past, present or future Indemnitee to be indemnified by the Company, nor the obligations of the Company to indemnify any such Indemnitee under and in accordance with the provisions of this
Section 9.01 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when
such claims may arise or be asserted. 
 (i) Notwithstanding anything to the contrary set forth in this Agreement, no Indemnitee shall be
liable for monetary damages to the Company, the Members or any other Persons who have acquired limited liability company interests in the Company or are otherwise bound by this Agreement, for losses sustained or liabilities incurred as a result of
any act or omission of an Indemnitee unless there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the matter in question, the Indemnitee acted in bad faith or engaged in
fraud, willful misconduct or, in the case of a criminal matter, acted with knowledge that the Indemnitee’s conduct was criminal. 
 (j)
Subject to its obligations and duties as set forth in Article VI, the Board and any committee thereof may exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or
through the Company’s Officers or agents, and neither the Board nor any committee thereof shall be responsible for any misconduct or negligence on the part of any such Officer or agent appointed by the Board or any committee thereof in good
faith. 
 (k) To the extent that, at law or in equity, an Indemnitee has duties (including fiduciary duties) and liabilities relating
thereto to the Company, such Indemnitee, acting in connection with the Company’s business or affairs, shall not be liable to the Company or to any Member for its good faith reliance on the provisions of this Agreement. The provisions of this
Agreement, to the extent that they restrict or otherwise modify or eliminate the duties and liabilities of an Indemnitee otherwise existing at law or in equity, are agreed by the Members to replace such other duties and liabilities of such
Indemnitee. 
 (l) Any amendment, modification or repeal of subsections (i), (j) (k) or (l) of this Section 9.01 shall be
prospective only and shall not in any way affect the limitations on liability under such subsections as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in
whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted. 
 ARTICLE X

 TAXES, BOOKS, RECORDS, REPORTS, AND BANK ACCOUNTS 

SECTION 10.01 Federal income Tax Treatment. 

For federal income tax purposes, the Company shall be disregarded as an entity separate from its owner. No federal income tax return shall be
filed by the Company. 
 SECTION 10.02 Maintenance of Books. 

  
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 (a) The Board shall cause to be kept a record containing the minutes of the proceedings of the
meetings of the Board and of the Members, appropriate registers, books of records and accounts and such supporting documentation of transactions as may be necessary for the proper conduct of the business of the Company and as are required to be
maintained by Applicable Law. 
 (b) The books of account of the Company shall be (i) maintained on the basis of a fiscal year that is
the calendar year, (ii) maintained on an accrual basis in accordance with GAAP, consistently applied and (iii) audited by the Registered Public Accountants at the end of each calendar year. 

SECTION 10.03 Reports. 

With respect to each calendar year, the Board shall prepare, or cause to be prepared, and deliver, or cause to be delivered, to each Member
such reports, forecasts, studies, budgets and other information as the Members may reasonably request from time to time. 

SECTION 10.04 Bank Accounts. 

Funds of the Company shall be deposited in such banks or other depositories as shall be designated from time to time by the Board. All
withdrawals from any such depository shall be made only as authorized by the Board and shall be made only by check, wire transfer, debit memorandum or other written instruction. 

ARTICLE XI 
 DISSOLUTION,
WINDING-UP, TERMINATION AND CONVERSION 
 SECTION 11.01 Dissolution. 

(a) The Company shall dissolve and its affairs shall be wound up on the first to occur of the following events (each, a
“Dissolution Event”): 
 (i) the unanimous consent of the Board; 

(ii) entry of a decree of judicial dissolution of the Company under Section 18-802
of the Act; or 
 (iii) the termination of the legal existence of the last remaining member of the Company or the occurrence
of any other event which terminates the continued membership of the last remaining member of the Company in the Company, unless the Company is continued without dissolution in a manner permitted by this Agreement or the Act. 

(b) No other event shall cause a dissolution of the Company. 

(c) Upon the occurrence of any event that causes the last remaining Member to cease to be a member of the Company, to the fullest extent
permitted by law, the personal representative of the last remaining Member is hereby authorized to, and shall, within 90 days after the occurrence of the event that terminated the continued membership of the last remaining

  
 -20- 

 
Member in the Company, agree in writing (i) to continue the Company and (ii) to the admission of the personal representative or its nominee or designee, as the case may be, as a
substitute Member of the Company, effective as of the occurrence of the event that terminated the continued membership of the last remaining Member in the Company. 

(d) Notwithstanding any other provision of this Agreement, the Bankruptcy of a Member shall not cause such Member to cease to be a member of
the Company and, upon the occurrence of such an event, the Company shall continue without dissolution. 
 SECTION 11.02 Winding-Up
and Termination. 
 (a) On the occurrence of a Dissolution Event of the type described in Section 11.01, the Board shall select one
or more Persons to act as liquidator. The liquidator shall proceed diligently to wind up the affairs of the Company and make final distributions as provided herein and in the Act. The costs of winding up shall be borne as a Company expense. Until
final distribution, the liquidator shall continue to operate the Company properties with all of the power and authority of the Board. The steps to be accomplished by the liquidator are as follows: 

(i) as promptly as possible after dissolution and again after final winding up, the liquidator shall cause a proper accounting
to be made by a recognized firm of certified public accountants of the Company’s assets, liabilities and operations through the last Day of the month in which the dissolution occurs or the final winding up is completed, as applicable; 

(ii) the liquidator shall discharge from Company funds all of the debts, liabilities and obligations of the Company (including
all expenses incurred in winding up) or otherwise make adequate provision for payment and discharge thereof (including the establishment of a cash escrow fund for contingent liabilities in such amount and for such term as the liquidator may
reasonably determine); and 
 (iii) all remaining assets of the Company shall be distributed to the Members as follows: 

(A) the liquidator may sell any or all Company Property, including to Members; and 

(B) all Company Property (including cash) shall be distributed to the Members in accordance with their respective Sharing
Ratios. 
 (b) To the fullest extent permitted by law, the distribution of cash or property to a Member in accordance with the provisions of
this Section 11.02 constitutes a complete return to the Member of its Capital Contributions and a complete distribution to the Member of its Membership Interest and all of the Company’s property and constitutes a compromise to which all
Members have consented pursuant to Section 18-502(b) of the Act. To the extent that a Member returns funds to the Company, it has no claim against any other Member for those funds. 

  
 -21- 

 SECTION 11.03 Certificate of Cancellation. 

Upon completion of the distribution of Company assets as provided herein, the Members (or such other Person or Persons as the Act may require
or permit) shall file a certificate of cancellation with the Secretary of State of the State of Delaware and take such other actions as may be necessary to terminate the existence of the Company. Upon the filing of such certificate of cancellation,
the existence of the Company shall terminate (and the Term shall end), except as may be otherwise provided by the Act or by Applicable Law. 

ARTICLE XII 
 TRANSFER OF
MEMBERSHIP INTEREST 
 The Members may sell, assign or otherwise transfer all or any portion of such Members’ Membership Interest
at any time to any Person. 
 ARTICLE XIII 

GENERAL PROVISIONS 

SECTION 13.01 Offset. 

Whenever the Company is to pay any sum to any Member, any amounts that Member owes the Company may be deducted from that sum before payment.

 SECTION 13.02 Notices. 

Except as expressly set forth to the contrary in this Agreement, all notices, demands, requests, consents, approvals or other communications
required or permitted to be given hereunder or that are given with respect to this Agreement shall be in writing and shall be personally served, delivered by reputable air courier service with charges prepaid, or transmitted by hand delivery,
telegram, telex, facsimile or electronic mail, addressed as set forth below, or to such other address as such party shall have specified most recently by written notice. Notice shall be deemed given on the date of service or transmission if
personally served or transmitted by telegram, telex, facsimile or electronic mail. Notice otherwise sent as provided herein shall be deemed given upon delivery of such notice: 

To the Company: 
 Cheniere GP
Holding Company, LLC 
 700 Milam Street, Suite 800 

Houston, Texas 77002 
 Attn:
President 
 Telephone: (713) 375-5000 

Fax: (713) 375-6000 

  
 -22- 

 To Cheniere Holdings: 

Cheniere Energy Partners LP Holdings, LLC 

700 Milam Street, Suite 800 

Houston, Texas 77002 
 Attn:
President 
 Telephone: (713) 375-5000 

Fax: (713) 375-6000 
 To
Terminals: 
 Cheniere LNG Terminals, LLC 

700 Milam Street, Suite 800 

Houston, Texas 77002 
 Attn:
President 
 Telephone: (713) 375-5000 

Fax: (713) 375-6000 

Whenever any notice is required to be given by Applicable Law, the Certificate or this Agreement, a written waiver thereof, signed by the
Person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. 

SECTION 13.03 Entire Agreement; Superseding Effect. 

This Agreement constitutes the entire agreement of the Members, in such capacity, relative to the formation, operation and continuation of the
Company and supersedes all prior contracts or agreements with respect to such subject matter, whether oral or written. 
 SECTION 13.04
Effect of Waiver or Consent. 
 Except as otherwise provided in this Agreement, a waiver or consent, express or implied, to or of any
breach or default by any Person in the performance by that Person of its obligations with respect to the Company is not a consent or waiver to or of any other breach or default in the performance by that Person of the same or any other obligations
of that Person with respect to the Company. Except as otherwise provided in this Agreement, failure on the part of a Person to complain of any act of any Person or to declare any Person in default with respect to the Company, irrespective of how
long that failure continues, does not constitute a waiver by that Person of its rights with respect to that default until the applicable statute-of-limitations period has run. 

SECTION 13.05 Amendment or Restatement. 

This Agreement or the Certificate may be amended or restated only by a written instrument executed (or, in the case of the Certificate,
approved) by all of the Members. 

  
 -23- 

 SECTION 13.06 Binding Effect. 

This Agreement is binding on and shall inure to the benefit of the Members and their respective heirs, legal representatives, successors and
permitted assigns. 
 SECTION 13.07 Governing Law; Severability. 

THIS AGREEMENT IS GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF DELAWARE, EXCLUDING ANY CONFLICT-OF-LAWS RULE
OR PRINCIPLE THAT MIGHT REFER THE GOVERNANCE OR THE CONSTRUCTION OF THIS AGREEMENT TO THE LAW OF ANOTHER JURISDICTION. In the event of a direct conflict between the provisions of this Agreement and any mandatory, non-waivable provision of the Act,
such provision of the Act shall control. If any provision of the Act provides that it may be varied or superseded in a limited liability company agreement (or otherwise by agreement of the members or managers of a limited liability company), such
provision shall be deemed superseded and waived in its entirety if this Agreement contains a provision addressing the same issue or subject matter. If any provision of this Agreement or the application thereof to any Person or circumstance is held
invalid or unenforceable to any extent, (a) the remainder of this Agreement and the application of that provision to other Person or circumstances is not affected thereby and that provision shall be enforced to the greatest extent permitted by
Applicable Law, and (b) the Members or Directors (as the case may be) shall negotiate in good faith to replace that provision with a new provision that is valid and enforceable and that puts the Members in substantially the same economic,
business and legal position as they would have been in if the original provision had been valid and enforceable. 
 SECTION 13.08
Further Assurances. 
 In connection with this Agreement and the transactions contemplated hereby, each Member shall execute and
deliver any additional documents and instruments and perform any additional acts that may be necessary or appropriate to effectuate and perform the provisions of this Agreement and those transactions. 

SECTION 13.09 Counterparts. 

This Agreement may be executed in any number of counterparts with the same effect as if all signing parties had signed the same document. All
counterparts shall be construed together and constitute the same instrument. 

  
 -24- 

 IN WITNESS WHEREOF, the Members has executed this Agreement as of the date first set forth above.

  

			
	MEMBERS
	
	CHENIERE ENERGY PARTNERS LP HOLDINGS, LLC
		
	By:	 	  

	Name:	 	[—]
	Title:	 	[—]
	
	CHENIERE LNG TERMINALS, LLC
		
	By:	 	  

	Name:	 	[—]
	Title:	 	[—]

 EXHIBIT A 
  

																	
	 MEMBER
	  	CLASS A
MEMBERSHIP
INTEREST	 	 	CLASS B
MEMBERSHIP
INTEREST	 	 	CAPITAL
CONTRIBUTION	 	  	SHARING
RATIOS	 
	 Cheniere Energy Partners LP Holdings, LLC
	  	 	100	% 	 	 	0	% 	 	$	0	  	  	 	0	% 
	 Cheniere LNG Terminals, LLC
	  	 	0	% 	 	 	100	% 	 	$	1,000.00	  	  	 	100	%

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