Document:

EX-10.2

 Exhibit 10.2 

EQUITY PURCHASE AGREEMENT 
 by and
between 
 PSEG POWER LLC, 

PARKWAY GENERATION, LLC 
 and 

EASTERN CORRIDOR PARTSCO, LLC 
  

 
 Dated as of
August 12, 2021 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	
	ARTICLE I	  

	
	DEFINITIONS; INTERPRETATION	  

			
	 Section 1.1
	 	Defined Terms	  	 	2	 
	 Section 1.2
	 	Other Definitions	  	 	16	 
	
	ARTICLE II	  

	
	THE SALE	  

			
	 Section 2.1
	 	Sale and Purchase	  	 	19	 
	 Section 2.2
	 	Closing Purchase Price	  	 	19	 
	 Section 2.3
	 	Closing	  	 	19	 
	 Section 2.4
	 	Closing Working Capital and Net Cash Adjustments	  	 	20	 
	 Section 2.5
	 	Post-Closing Statements	  	 	21	 
	 Section 2.6
	 	Reconciliation of Initial Closing Statement	  	 	22	 
	 Section 2.7
	 	Post-Closing Adjustment	  	 	23	 
	 Section 2.8
	 	Withholding	  	 	24	 
	
	ARTICLE III	  

	
	REPRESENTATIONS AND WARRANTIES OF SELLER	  

			
	 Section 3.1
	 	Organization and Qualification; Subsidiaries	  	 	25	 
	 Section 3.2
	 	Capitalization of the Transferred Entities	  	 	25	 
	 Section 3.3
	 	Authority Relative to this Agreement	  	 	26	 
	 Section 3.4
	 	Consents and Approvals; No Violations	  	 	26	 
	 Section 3.5
	 	Financial Information; Liabilities	  	 	27	 
	 Section 3.6
	 	Absence of Certain Changes or Events	  	 	28	 
	 Section 3.7
	 	Litigation	  	 	28	 
	 Section 3.8
	 	Compliance with Laws	  	 	28	 
	 Section 3.9
	 	Permits	  	 	29	 
	 Section 3.10
	 	Employee Benefit Plans	  	 	29	 
	 Section 3.11
	 	Employees; Labor Matters	  	 	31	 
	 Section 3.12
	 	Real Property	  	 	32	 
	 Section 3.13
	 	Taxes	  	 	33	 
	 Section 3.14
	 	Environmental Matters	  	 	35	 
	 Section 3.15
	 	Material Contracts	  	 	36	 
	 Section 3.16
	 	Intellectual Property	  	 	38	 
	 Section 3.17
	 	Sufficiency and Condition of Assets	  	 	39	 
	 Section 3.18
	 	Brokers	  	 	39	 
	 Section 3.19
	 	Insurance	  	 	39	 
	 Section 3.20
	 	Affiliate Arrangements	  	 	40	 

  
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	 Section 3.21
	 	No Other Representations or Warranties; No Reliance	  	 	40	 
	
	ARTICLE IV	  

	
	 REPRESENTATIONS AND WARRANTIES 

OF PURCHASER
	  

 

	 Section 4.1
	 	Organization and Qualification	  	 	40	 
	 Section 4.2
	 	Authority Relative to this Agreement	  	 	41	 
	 Section 4.3
	 	Consents and Approvals; No Violations	  	 	41	 
	 Section 4.4
	 	Litigation	  	 	42	 
	 Section 4.5
	 	Brokers	  	 	42	 
	 Section 4.6
	 	Financing	  	 	42	 
	 Section 4.7
	 	Limited Guaranty	  	 	44	 
	 Section 4.8
	 	Solvency	  	 	44	 
	 Section 4.9
	 	Investment Decision	  	 	44	 
	 Section 4.10
	 	Independent Investigation	  	 	44	 
	 Section 4.11
	 	Investments	  	 	45	 
	 Section 4.12
	 	Certain Acknowledgments	  	 	45	 
	 Section 4.13
	 	No Other Representations or Warranties; No Reliance	  	 	46	 
	
	ARTICLE V	  

	
	ADDITIONAL AGREEMENTS	  

			
	 Section 5.1
	 	Access to Books and Records	  	 	46	 
	 Section 5.2
	 	Confidentiality	  	 	48	 
	 Section 5.3
	 	Required Actions	  	 	49	 
	 Section 5.4
	 	Conduct of Business	  	 	53	 
	 Section 5.5
	 	Consents	  	 	56	 
	 Section 5.6
	 	Public Announcements	  	 	59	 
	 Section 5.7
	 	Intercompany Accounts; Cash	  	 	60	 
	 Section 5.8
	 	Termination of Intercompany Arrangements	  	 	60	 
	 Section 5.9
	 	Guarantees; Commitments	  	 	61	 
	 Section 5.10
	 	Insurance	  	 	62	 
	 Section 5.11
	 	Litigation Support	  	 	63	 
	 Section 5.12
	 	Misallocated Assets and Misdirected Payments	  	 	63	 
	 Section 5.13
	 	Use of Marks	  	 	64	 
	 Section 5.14
	 	Non-Solicitation	  	 	64	 
	 Section 5.15
	 	Financing	  	 	64	 
	 Section 5.16
	 	R&W Insurance Policy	  	 	68	 
	 Section 5.17
	 	Certain Environmental Matters	  	 	68	 
	 Section 5.18
	 	Parts and Services	  	 	69	 
	 Section 5.19
	 	Restructuring Transactions	  	 	69	 
	 Section 5.20
	 	Certain RTO Matters	  	 	69	 
	 Section 5.21
	 	Bulk Transfer Laws	  	 	69	 
	 Section 5.22
	 	Risk of Loss	  	 	70	 

  
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	 Section 5.23
	 	Resignations	  	 	71	 
	 Section 5.24
	 	Bank Accounts	  	 	71	 
	 Section 5.25
	 	Release and Amendment of Certain Easements	  	 	71	 
	
	ARTICLE VI	  

	
	EMPLOYEE MATTERS	  

			
	 Section 6.1
	 	Continuation and Offers of Employment; Allocation of Liabilities	  	 	73	 
	 Section 6.2
	 	Terms and Conditions of Employment	  	 	74	 
	 Section 6.3
	 	Service Credit	  	 	75	 
	 Section 6.4
	 	Health Coverages	  	 	75	 
	 Section 6.5
	 	Severance Indemnity	  	 	76	 
	 Section 6.6
	 	Vacation, Sick Leave and Personal Time	  	 	76	 
	 Section 6.7
	 	Cash Incentive Compensation	  	 	76	 
	 Section 6.8
	 	Defined Contribution Plans	  	 	77	 
	 Section 6.9
	 	Seller Benefit Plans; Transferred Entity Benefit Plans	  	 	77	 
	 Section 6.10
	 	Pension Transfer	  	 	78	 
	 Section 6.11
	 	Post-Employment Welfare Benefits	  	 	80	 
	 Section 6.12
	 	Cooperation	  	 	81	 
	 Section 6.13
	 	No Third Party Beneficiaries	  	 	81	 
	
	ARTICLE VII	  

	
	TAX MATTERS	  

			
	 Section 7.1
	 	Cooperation and Exchange of Information	  	 	81	 
	 Section 7.2
	 	Purchase Price Allocation	  	 	82	 
	 Section 7.3
	 	Tax Sharing Agreements	  	 	83	 
	 Section 7.4
	 	Tax Treatment	  	 	84	 
	 Section 7.5
	 	Certain Post-Closing Tax Covenants	  	 	84	 
	 Section 7.6
	 	Transfer Taxes	  	 	84	 
	
	ARTICLE VIII	  

	
	CONDITIONS TO OBLIGATIONS TO CLOSE	  

			
	 Section 8.1
	 	Conditions to Obligation of Each Party to Close	  	 	84	 
	 Section 8.2
	 	Conditions to Purchaser’s Obligation to Close	  	 	85	 
	 Section 8.3
	 	Conditions to Seller’s Obligation to Close	  	 	85	 
	 Section 8.4
	 	Frustration of Closing Conditions	  	 	86	 
	
	ARTICLE IX	  

	
	TERMINATION	  

			
	 Section 9.1
	 	Termination	  	 	86	 

  
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	 Section 9.2
	 	Notice of Termination	  	 	87	 
	 Section 9.3
	 	Effect of Termination	  	 	87	 
	 Section 9.4
	 	Extension; Waiver	  	 	88	 
	
	ARTICLE X	  

	
	INDEMNIFICATION	  

			
	 Section 10.1
	 	Survival of Representations, Warranties, Covenants and Agreements	  	 	89	 
	 Section 10.2
	 	Indemnification by Seller	  	 	90	 
	 Section 10.3
	 	Indemnification by Purchaser	  	 	90	 
	 Section 10.4
	 	Indemnification Procedures	  	 	91	 
	 Section 10.5
	 	Exclusive Remedy	  	 	92	 
	 Section 10.6
	 	Additional Indemnification Provisions	  	 	93	 
	 Section 10.7
	 	Limitation of Liability	  	 	93	 
	 Section 10.8
	 	Mitigation	  	 	94	 
	 Section 10.9
	 	Remediation and Access Agreement	  	 	94	 
	
	ARTICLE XI	  

	
	GENERAL PROVISIONS	  

			
	 Section 11.1
	 	Interpretation; Absence of Presumption	  	 	94	 
	 Section 11.2
	 	Headings; Definitions	  	 	96	 
	 Section 11.3
	 	Governing Law; Jurisdiction and Forum; Waiver of Jury Trial	  	 	96	 
	 Section 11.4
	 	Entire Agreement	  	 	97	 
	 Section 11.5
	 	No Third Party Beneficiaries	  	 	97	 
	 Section 11.6
	 	Expenses	  	 	97	 
	 Section 11.7
	 	Notices	  	 	97	 
	 Section 11.8
	 	Successors and Assigns	  	 	98	 
	 Section 11.9
	 	Amendments and Waivers	  	 	99	 
	 Section 11.10
	 	Severability	  	 	99	 
	 Section 11.11
	 	Specific Performance	  	 	99	 
	 Section 11.12
	 	Waiver of Conflicts Regarding Representation; Nonassertion of Attorney-Client Privilege	  	 	100	 
	 Section 11.13
	 	Financing Provisions	  	 	101	 
	 Section 11.14
	 	No Admission	  	 	102	 
	 Section 11.15
	 	Non-Recourse	  	 	102	 
	 Section 11.16
	 	Counterparts	  	 	102	 
	 Section 11.17
	 	Additional EPA	  	 	103	 

  
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 Exhibits 
  

			
	Exhibit A:	  	Form of Transition Services Agreement
	Exhibit B:	  	Form of Services Agreement
	Exhibit C:	  	Form of CSG Agreement Consent to Assignment
	Exhibit D:	  	Form of Remediation and Access Agreement
	Exhibit E:	  	Summary of Terms and Conditions of the Parts and Services Sharing Agreement

 Schedules 
 Schedule I:
Accounting Principles 
 Schedule II: Timing Adjustment Principles 

Seller Disclosure Schedule 
 Purchaser Disclosure Schedule 

  
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 EQUITY PURCHASE AGREEMENT 

This EQUITY PURCHASE AGREEMENT (this “Agreement”), dated as of August 12, 2021, is by and between PSEG Power LLC,
a Delaware limited liability company (“Seller”), Parkway Generation, LLC, a Delaware limited liability company (“Purchaser”) and Eastern Corridor PartsCo, LLC, a Delaware limited liability company
(“PartsCo”). 
 RECITALS 

WHEREAS, Seller owns one hundred percent (100%) of the outstanding limited liability company interests (the “Units”) of PSEG
Fossil LLC, a Delaware limited liability company (the “Transferred Company”); 
 WHEREAS, concurrently with the execution
of this Agreement, Seller, Generation Bridge II, LLC (“Additional Purchaser”) and PartsCo are entering into an equity purchase agreement (the “NY/CT EPA”) relating to the direct or indirect purchase and sale of the
limited liability company interests of PSEG Power Connecticut LLC, PSEG New Haven LLC and PSEG Power New York LLC; 
 WHEREAS, Seller
desires to sell and transfer, and Purchaser desires to purchase, all of Seller’s right, title and interest in and to the Units for the consideration set forth in Section 2.2, subject to the adjustments and all other
terms and conditions set forth in this Agreement; 
 WHEREAS, concurrently with the execution of this Agreement, and as a condition and
inducement to Seller’s willingness to enter into this Agreement, the Equity Investors have duly executed and delivered to Seller a guaranty, dated as of the date of this Agreement, in favor of Seller (the “Limited Guaranty”);

 WHEREAS, concurrently with the execution of this Agreement, Seller, Purchaser and the Transferred Company are entering into a letter
agreement relating to certain gas distribution matters which will become effective at and subject to the Closing (the “BGSS Asset Letter Agreement”); 

WHEREAS, for U.S. federal income tax purposes, the parties intend the acquisition of the Units pursuant to this Agreement to be treated as a
purchase and sale of all of the assets of the Transferred Company (and of any other Transferred Entity that is a disregarded entity for U.S. federal income tax purposes) that constitutes an “applicable asset acquisition” within the meaning
of Section 1060 of the Code; 
 WHEREAS, the parties desire to enter into the Parts and Services Sharing Agreement at or prior to the
Closing; and 
 WHEREAS, the parties desire to make certain representations, warranties, covenants and agreements in connection with this
Agreement. 
 NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows: 

 Article I 

DEFINITIONS; INTERPRETATION 

Section 1.1 Defined Terms. For purposes of this Agreement, the following terms shall have the following meanings: 

“Action” shall mean any claim, action, suit, arbitration, litigation, governmental investigation or proceeding. 

“Additional Affiliate Easements” shall have the meaning set forth in Section 5.4(a) of the Seller
Disclosure Schedule. 
 “Adjustment Date” shall mean January 1, 2022. 

“Affiliate” shall mean, with respect to any Person, any other Person that directly, or through one or more intermediaries,
controls or is controlled by or is under common control with such first Person; provided, that in the case of Purchaser, “Affiliate” or “Affiliates” shall exclude ArcLight Capital Partners, LLC and its other portfolio
companies, or its or their subsidiaries, sponsors or partners, except for purposes of any indemnities, disclaimers, releases or waivers hereunder in favor of (or for the benefit of) Purchaser or its Affiliates hereunder, the terms
“Affiliate” shall include such Persons; provided, further, that in the case of Purchaser with respect to Section 5.3, Affiliate shall include ArcLight Energy Partners Fund VII, L.P.;
provided, further, that in the case of Seller, “Affiliate” or “Affiliates” shall exclude PSE&G and its direct or indirect wholly-owned subsidiaries; and provided, further, that from and after the
Closing, (a) none of the Transferred Entities shall be considered an Affiliate of Seller or any of Seller’s Affiliates and (b) none of Seller or any of Seller’s Affiliates shall be considered an Affiliate of any Transferred
Entity. 
 “Ancillary Agreements” shall mean the Transition Services Agreement, the Services Agreement, the Remediation and
Access Agreement, the CSG Agreement Consent to Assignment, the BGSS Asset Letter Agreement and the Parts and Services Sharing Agreement. 

“Benefit Plan” shall mean each “employee benefit plan” (as defined in Section 3(3) of ERISA, whether or not
subject thereto) and any other policy, plan, program, agreement or arrangement that provides for compensation or benefits, including any employment agreement, cash or equity-based bonus, incentive arrangement, severance or retention arrangement,
vacation policy, pension or retirement plan, or health and welfare plan, health reimbursement account, wellness program, tuition reimbursement or post retirement supplemental health plan, in each case, sponsored, maintained or contributed to (or
required to be contributed to) by Seller Parent or any of its Affiliates for the benefit of any Business Employee or other individual service provider of the Business or under which Seller Parent or any of its Affiliates has any obligation or
liability in respect of any Business Employees or other individual service provider of the Business, other than any plan, program or arrangement sponsored exclusively by a Governmental Entity. 

  
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 “Bifurcation” means the process of separating out the Transferred Entities
and the Transferred Entities (as defined in the NY/CT EPA) for the purposes of accomplishing the transactions contemplated by this Agreement and the NY/CT EPA. 

“Books and Records” means all files, documents, instruments, papers, books, reports, operating logs, maintenance logs,
records, vendor lists, customer lists, lists of sales representatives, pricing lists, drawings, tapes, microfilms, photographs, studies, letters, budgets, ledgers, journals, title policies, supplier lists, regulatory filings, market research
reports, marketing plans, other marketing-related information and materials, sales and promotional materials, operating data and plans, technical documentation (design specifications, functional requirements, operating instructions, logic manuals,
flow charts, etc.), user documentation (installation guides, user manuals, training materials, release notes, working papers, etc.), internal and external correspondence, accounting records and other documents relating to any Transferred Entity or
its operation, business, assets and properties, or any Facility (including correspondence with contractors, customers, suppliers, vendors and the like), and other similar materials in whatever form (including electronic), but excluding materials
relating to the transactions contemplated hereby as well as any materials that are legally privileged where such privilege belongs to a person or entity other than a Transferred Entity. 

“Business” shall mean the business of owning and operating the natural gas and/or
oil-fired power plants set forth on Section 1.1(b) of the Seller Disclosure Schedule (each, a “Facility”), as conducted prior to the date hereof and as of the Closing
by Seller and its Affiliates (directly and indirectly through the Transferred Entities). For the avoidance of doubt, the “Business” shall not include any former, present or future rights, assets, properties, businesses, operations or
activities of Seller Parent or any of its Subsidiaries (other than as set forth in the immediately preceding sentence) or as set forth on Section 1.1(c) of the Seller Disclosure Schedule (collectively, the “Excluded
Assets”) or any Liabilities to the extent primarily relating to the Excluded Assets and not to the Business or the Transferred Entities, including those Liabilities set forth on Section 1.1(d) of the Seller Disclosure
Schedule (collectively, the “Excluded Liabilities”), and no such Excluded Assets or Excluded Liabilities shall, directly or indirectly, be transferred to Purchaser in connection with the Sale or the other transactions
contemplated by this Agreement. 
 “Business Day” shall mean any day that is not a Saturday, a Sunday or other day on which
commercial banks in the City of New York, New York are required or authorized by Law to be closed. 
 “Business Employee”
shall mean each employee of the Seller Parent or any of its Affiliates whose primary work location is a Facility of Seller and its Affiliates (including the Transferred Entities) and who is primarily engaged in supporting the day-to-day operation of the Facilities. 
 “Business
Material Adverse Effect” shall mean any event, change, development or effect that has had or would reasonably be expected to have, a material adverse effect on the business, assets, properties, liabilities, financial condition or results of
operations of the Business and the Transferred Entities , taken as a whole; provided, that no such event, change, development or effect resulting or arising from or in connection with any of the following matters shall be

  
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deemed, either alone or in combination, to constitute or contribute to, or be taken into account in determining whether there has been, a Business Material Adverse Effect: (a) the general
conditions and trends in the industries or businesses in which the Business is operated or in which any of the Transferred Entities operate, including competition in geographic, product, service, or regional transmission organization areas,
(b) general political, economic, regulatory, financial, capital, commodity or power market conditions, whether local, regional, national, domestic, foreign or global (including interest rates, exchange rates, tariffs, commodity prices, trade
wars and credit markets), (c) any act of civil unrest, war or terrorism, cyberterrorism, military activity, sabotage, cybercrime or cyberattack, including an outbreak or escalation of hostilities involving the United States or any other Governmental
Entity or the declaration by the United States or any other Governmental Entity of a national emergency or war, or any worsening of any such conditions, (d) any conditions resulting from natural or manmade disasters, including earthquakes,
hurricanes, tsunamis, typhoons, lightning, hail storms, blizzards, tornadoes, droughts, floods, cyclones, arctic frosts, mudslides, wildfires, epidemics, pandemics or disease outbreaks (including COVID-19),
supply shortages or disruptions or other acts of God, (e) the failure of the financial or operating performance of the Transferred Entities to meet internal or analyst projections, forecasts or budgets for any period (provided, that the
underlying causes thereof, to the extent not otherwise excluded by this definition, may be deemed to contribute to a Business Material Adverse Effect; provided, further, that this clause (e) shall not be construed as implying that
Seller is making any representation or warranty hereunder with respect to any internal or analyst projections, forecasts or budgets, and no such representations or warranties are being made), (f) any action taken or omitted to be taken by or at the
express written request or with the express written consent of Purchaser or that is expressly required or expressly permitted by this Agreement, (g) the execution or announcement of this Agreement or the terms hereof (including the identity of
Purchaser) or the announcement, pendency or consummation of the transactions contemplated hereby including the impact thereof on the relationships, contractual or otherwise, of the Business with customers, employees, suppliers or other business
relationships (provided that the exception in this clause (g) shall not be applicable with respect to the representations and warranties in Section 3.3 or Section 3.4), (h) changes in any
Laws (including Environmental Laws and COVID-19 Measures), industry standards or GAAP or other applicable accounting principles or standards or any authoritative interpretations thereof, (i) any labor
strike, organizing campaign, work stoppage, slowdown, lockout or other labor dispute, (j) the Retained Businesses, the Excluded Assets or the Excluded Liabilities or (k) any Event of Loss or Taking that is taken into account for purposes
of Section 5.22; provided, that any adverse event, change, development or effect resulting from the matters described in clauses (a), (b), (c), (d) and (h) may be taken into account in determining whether there
has been a Business Material Adverse Effect to the extent, and only to the extent, that it has a materially disproportionate effect on the Business and the Transferred Entities, taken as a whole, relative to similarly situated businesses in the
industries in which the Business and the Transferred Entities operate (in which case only such incremental materially disproportionate effect may be taken into account in determining whether there has been a Business Material Adverse Effect). 

  
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 “Capex Adjustment” means, for each project set forth in the Capital
Expenditure Budget , the amounts set forth in such Capital Expenditure Budget for each such project minus costs incurred and paid by Seller in connection with such projects prior to the earlier of (A) the Adjustment Date and (B) the
Closing Date, without duplication of any items that are taken into account in Working Capital. The Capex Adjustment for each project shall not be less than $0. 

“Capital Expenditure Budget” means the capital expenditure and major maintenance budget indicating capital projects with
respect to the Facilities, in each case as set forth on Schedule 1.1(f) of the Seller Disclosure Schedule, which for purposes of clarification shall not include allocations of any indirect costs or overhead, and shall be subject to daily
proration for the applicable monthly budget for the initial month and the month in which the Adjustment Date or the Closing, as applicable, occurs. 

“Cash” shall mean the aggregate of all cash and cash equivalents of the Transferred Entities as of the applicable time of
determination, calculated in accordance with the Accounting Principles; provided that Cash will (i) be increased by all deposits in transit or amounts held for deposit that have not yet cleared, other wire transfers and drafts deposited or
received and available for deposit, in each case for the benefit of the Transferred Entities, (ii) will be reduced by all outstanding and uncleared checks and drafts of the Transferred Entities and (iii) will exclude all Restricted Cash.

 “CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the
Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq. 
 “Code” shall mean the U.S.
Internal Revenue Code of 1986, as amended. 
 “Combined Tax Return” shall mean any affiliated, combined, consolidated,
unitary, group or other Tax Return that includes, or reflects the assets, liabilities or activities of, Seller Parent or any of its Affiliates (other than the Transferred Entities), on the one hand, and any of the Transferred Entities, on the other
hand. 
 “Competition Laws” shall mean any domestic, federal, foreign or supranational Laws that are designed or intended
to prohibit, restrict or regulate actions having the purpose or effect of monopolization or lessening of competition through merger or acquisition or restraint of trade means. 

“Confidentiality Agreement” shall mean the nondisclosure agreement, dated as of December 23, 2020, by and between PSEG
Services Corporation and ArcLight Capital Partners, LLC, as may be amended, modified, waived or assigned from time to time in accordance with its terms. 

“Constructive Termination” shall mean that, during the Continuation Period, (i) Purchaser or its Affiliates reduces a
Transferred MAST Employee’s annual rate of base salary as of immediately prior to the Closing by twenty percent (20%) or more, or (ii) Purchaser or its Affiliates requires a Transferred MAST Employee to increase his or her one-way commuting distance by more than fifty (50) miles. If, during the Continuation Period, Purchaser or its Affiliates takes an action that constitutes a Constructive Termination with respect to a
Transferred MAST Employee, Purchaser or one of its Affiliates shall provide written notification to such Transferred MAST Employee within five (5) days of taking such action that he or she 

  
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has experienced a Constructive Termination and may resign and receive severance in accordance with the requirements of Section 6.2 if (A) such employee provides
written notice to Purchaser of his or her intent to resign due to a Constructive Termination within sixty (60) days after the earlier of (1) the initial occurrence of the event and (2) the date such employee receives the written
notification of the Constructive Termination event from Purchaser and (B) Purchaser does not remedy the alleged Constructive Termination event within thirty (30) days of receipt of such notice from the applicable Transferred MAST Employee.

 “Contract” shall mean any legally binding lease, contract, license, arrangement, option, instrument or other agreement,
other than a Permit or Benefit Plan. 
 “control” shall mean, as to any Person, the power to direct or cause the direction
of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise (and the terms “controlled by” and “under common control with” shall have correlative
meanings). 
 “COVID-19” shall mean SARS-CoV-2 or COVID-19, and any evolutions thereof or related, associated or other epidemics, pandemics or disease outbreaks. 

“COVID-19 Measures” shall mean any voluntary or mandatory quarantine, “shelter
in place,” “stay at home,” social distancing, shutdown, masking, closure, sequester or any other Law, decree, judgment, injunction or other order, directive, guidelines or recommendations by any Governmental Entity or industry group
in connection with or in response to COVID-19, including the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. 116-136) and any administrative or other
guidance published with respect thereto by any Governmental Entity. 
 “CSG Agreement” shall mean that certain Rate
Schedule Contract Service Gas Transportation Service Agreement, dated as of October 1, 2013, by and between Seller, Purchaser and PSE&G. 

“CSG Agreement Consent to Assignment” shall mean the Consent to Assignment relating to the CSG Agreement, to be entered into
concurrently with this Agreement in the form of Exhibit C hereto. 
 “Eligible Bank” shall mean a commercial bank or
trust company organized under the laws of the United States (a) with senior unsecured debt rating of at least “A3” by Moody’s and “A-” by S&P, (b) with a
shareholders’ equity of at least ten billion dollars ($10,000,000,000), and (c) that is otherwise acceptable to Seller in its sole discretion. 

“Environment” means any surface water, groundwater, land surface, subsurface strata, onshore and offshore (including river
and bay) sediment, plant or animal life, natural resources, air (including indoor air and ambient air) and soil. 
 “Environmental
Laws” shall mean any applicable federal, state or local Law relating to pollution or the protection or restoration of the Environment or human health or safety (in the case of human health or safety, as it relates to exposure to Hazardous
Substances). 

  
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 “Environmental Liability” shall mean any and all administrative, regulatory
or judicial Actions, suits, notices of noncompliance or violation, demands, demand letters, Orders, claims, Liens, investigations or proceedings by any third party (including any Governmental Entity) alleging liability (including liability for
enforcement, investigatory costs, damages, Losses, contribution, indemnification, cost recovery, compensation, injunctive relief, cleanup costs, governmental resource costs, removal costs, remedial costs, natural resources damages, property damages,
personal injuries or penalties and reasonable attorneys’ fees and consultants’ fees), whether known or unknown, including those arising out of, based on or resulting from (a) any violation or alleged violation of, or liability under,
any Environmental Laws or any Permits issued pursuant to Environmental Laws or (b) the presence, release or threatened release of, or exposure to, any Hazardous Substances. Without limiting the foregoing, Environmental Liability shall
specifically include any liability under CERCLA or under analogous state laws. 
 “ERISA” means the Employee Retirement
Income Security Act of 1974. 
 “ERISA Affiliate” means any entity (whether or not incorporated) other than Seller Parent
that, together with Seller Parent, is considered under common control and treated as one employer under Section 414(b), (c), (m) or (o) of the Code. 

“EWG” shall mean an “exempt wholesale generator” as such term is defined in section 1262(6) of the Public Utility
Holding Company Act of 2005 and FERC’s regulations at 18 C.F.R. § 366.1. 
 “FERC” shall mean the Federal Energy
Regulatory Commission. 
 “Financing Entities” shall mean the parties to the Debt Commitment Letter and any joinder
agreements or credit agreements relating thereto. 
 “Financing Parties” shall mean the entities that have committed to
provide or arrange or otherwise entered into agreements in connection with the Debt Financing, or to purchase securities from or place securities or arrange or provide loans for Purchaser in lieu of the Debt Financing under the Debt Commitment
Letter, in connection with the Sale, including the Financing Entities and their respective Representatives and successors and assigns; provided, that neither Purchaser nor any Affiliate of Purchaser shall be a Financing Party. 

“FPA” shall mean the Federal Power Act, as amended, and the rules and regulations promulgated thereunder. 

“Fraud” shall mean (a) a materially false representation made in Article III or Article IV herein,
(b) made with actual knowledge that such representation is false, (c) with an intention to induce the party to whom such representation is made to act or refrain from acting, (d) the action or inaction of the party to whom such false
representation is made in justifiable reliance on such representation, and (e) damage to the party to whom such representation was made as result of such reliance. 

“GAAP” shall mean generally accepted accounting principles in the United States. 

  
 -7- 

 “Governmental Entity” shall mean any foreign, domestic, supranational,
federal, territorial, state or local governmental entity, self-regulatory organization, court, tribunal, judicial body, commission, board, bureau, arbitral body, agency or instrumentality, or any regulatory, administrative or other department or
agency, or any political or other subdivision, department or branch of any of the foregoing. 
 “Hazardous Substance” shall
mean any substance, material, pollutant, contaminant, chemical or waste listed, defined, designated or classified as hazardous, toxic or radioactive, or words of similar import, under any Environmental Law, including any petroleum or any derivative
or byproduct thereof, mercury, asbestos, or asbestos containing material, per- and polyfluoroalkyl substances, or polychlorinated biphenyls. 

“HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations
promulgated thereunder. 
 “Indebtedness” shall mean, without duplication, as of any applicable time of determination and
calculated in accordance with the Accounting Principles: (a) the outstanding principal amount of any indebtedness for borrowed money of any Transferred Entity, whether evidenced by bonds (other than surety bonds), notes or debentures;
(b) any obligations of any Transferred Entity in respect of letters of credit, surety bonds or bank guarantees, in each case to the extent funds have been drawn; (c) obligations to pay the deferred purchase price (including obligations
arising under any conditional sale or other title retention arrangement) of property or services, (except trade accounts payable and other current liabilities arising in the ordinary course of business to the extent included in Closing Working
Capital), including any “earnout”, contingent consideration or similar payments; (d) any obligations as lessee under capitalized leases determined in accordance with GAAP; (e) any obligations arising out of any interest rate,
currency swap arrangements or similar hedging arrangements; (f) any indebtedness or other obligations of any Person guaranteed by any Transferred Entity or secured by any Lien on the assets of any Transferred Entity; (g) for each of the
foregoing clauses (a) through (f) any unpaid principal, premium, accrued and unpaid interest, related expenses, prepayment penalties, make-whole payments, commitment, breakage and other fees, and all other amounts payable in connection with any
required repayment of such Indebtedness at or in connection with the Closing or that would otherwise be payable or owed after any such required repayment; and (h) obligations in the nature of any guaranty, direct or indirect, secured or
unsecured, of the obligations of other Persons of any of the foregoing; provided, that Indebtedness shall not include (i) any intercompany indebtedness (x) owing by one Transferred Entity to another Transferred Entity or
(y) otherwise settled or eliminated at or prior to the Closing pursuant to Section 5.7 or Section 5.8 (including any intercompany indebtedness owing by a Transferred Entity to a member of the
Seller Group) or (ii) any Liability in respect of Taxes or (iii) any Excluded Liabilities. 
 “Intellectual
Property” shall mean any and all statutory and/or common law rights relating to intellectual property throughout the world, including those arising out of or associated with the following: (a) all United States and foreign patents and
patent applications, statutory invention registrations, or similar rights anywhere in the world in inventions (“Patents”); (b) trademarks, service marks, trade dress, trade names, slogans, logos and corporate names and registrations
and applications for registration thereof (“Marks”); (c) World Wide Web addresses 

  
 -8- 

 
and domain names and applications and registrations therefor (“Internet Properties”); (d) copyrights, registrations and applications for registration thereof, and any equivalent
rights in works of authorship; and (e) trade secrets and other rights in Know-How that derive independent economic value, whether actual or potential, from not being known to other Persons (“Trade
Secrets”). 
 “IRS” shall mean the United States Internal Revenue Service. 

“Knowledge of Purchaser” shall mean the actual knowledge, after reasonable inquiry of their respective direct reports, of the
Persons listed on Section 1.1(a) of the Purchaser Disclosure Schedule. 
 “Knowledge of Seller”
shall mean the actual knowledge, after reasonable inquiry of their respective direct reports, of the Persons listed on Section 1.1(a) of the Seller Disclosure Schedule. 

“Law” shall mean any federal, state, local, foreign or supranational law (including common law), statute, regulation,
ordinance, rule, Order or decree by any Governmental Entity. 
 “Liability” shall mean all indebtedness, liabilities,
guarantees, assurances, commitments and other obligations, whether absolute, accrued or unaccrued, matured or unmatured, contingent, known or unknown, fixed, variable or otherwise, or whether due or to become due. 

“Liens” shall mean all liens, pledges, charges, mortgages, claims, security interests, purchase agreements, options,
restrictions on transfer, restrictions, title retention or similar agreements or other encumbrances. 
 “Losses” shall mean
all losses, damages, penalties, Liabilities (including any Environmental Liability), judgments, settlements, payments, claims, fines, deficiencies, interest, fees (including reasonable attorneys’ fees), costs and expenses, incurred or suffered
by an Indemnified Party, in each case excluding the items set forth in Section 10.7. 
 “Net
Cash” shall mean an amount equal to (a) the aggregate Cash of the Transferred Entities as of 12:01 a.m. (New York City time) on the earlier of the Closing Date or the Adjustment Date minus (b) the aggregate Indebtedness of
the Transferred Entities as of 12:01 a.m. (New York City time) on the Closing Date. 
 “Operator” shall mean a third party
professional services or other organization engaged by Purchaser or one of its Affiliates that may employ Transferred Employees after the Closing. 

“Order” shall mean any order, judgment, writ, injunction, stipulation, award or decree of any Governmental Entity. 

“Overhead and Shared Services” shall mean all overhead and shared services, including financial reporting, legal, tax,
compliance, internal audit, insurance program, treasury management, procurement, field maintenance and testing, real estate, investor relations, corporate communications, travel, human resources, ethics compliance, risk management, software
licenses, information technology services and other corporate shared services, that are furnished by or on behalf of Seller or any of its Affiliates (other than any Transferred Entity) in the ordinary course of business to both the Business and the
Retained Businesses. 

  
 -9- 

 “Parts and Services Sharing Agreement” shall mean the Parts and Services
Sharing Agreement to be entered into by the parties at or prior to Closing in accordance with the terms set forth in the Parts and Services Term Sheet. 

“Parts and Services Term Sheet” shall mean the Summary of Terms and Conditions of the Parts and Services Sharing Agreement
attached as Exhibit E hereto. 
 “Permits” shall mean all licenses, permits, franchises, approvals, registrations,
authorizations, consents or orders of, or filings with, any Governmental Entity. For the avoidance of doubt, Permits shall not include licenses of Intellectual Property. 

“Permitted Equity Liens” shall mean (a) Liens created under federal, state or foreign securities Laws, (b) Liens as
may be set forth in the respective certificates of formation or limited liability company agreements (or similar governing documents) of a Transferred Entity where made available to Purchaser and (c) any Liens created by or on behalf of
Purchaser. 
 “Permitted Liens” shall mean (a) statutory Liens of landlords and mechanics’, carriers’,
workmen’s, repairmen’s, warehousemen’s, materialmen’s or other like Liens arising or incurred in the ordinary course of business with respect to amounts not yet due and payable or that are being contested in good faith and for
which adequate reserves have been established and maintained in accordance with GAAP, (b) Liens arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in the ordinary course of
business, (c) Liens for Taxes, assessments or other governmental charges or levies (x) that are not due or payable, (y) that may thereafter be paid without material penalty or (z) that are being contested in good faith by
appropriate proceedings and for which reserves have been established on the books of Seller Parent or its applicable Subsidiary in accordance with GAAP, (d) defects or imperfections of title or other Liens not materially interfering with the
ordinary conduct of the Business at the asset to which they relate, or the value, use or occupancy thereof, (e) easements, covenants, rights-of-way, restrictions of
record and other similar matters that do not secure Indebtedness and that do not materially interfere with the ordinary conduct of the Business at the asset to which they relate, or the value, use or occupancy thereof, (f) any conditions that would be shown by a current, accurate survey or physical inspection of any Business Real Property that do not materially interfere with the ordinary conduct of the
Business at the asset to which they relate, or the value, use or occupancy thereof, (g) zoning, building and other similar restrictions and governmental requirements in connection with the ordinary conduct of the Business (but excluding
violations thereof), (h) Liens that have been placed by any developer, landlord or other third party on property owned by third parties over which Seller or the Transferred Entities have easement rights and subordination or similar agreements
relating thereto, not materially interfering with the ordinary conduct of the Business at the asset to which they relate or the value, use or occupancy thereof, (i) Liens incurred or deposits made in connection with workers’ compensation,
unemployment insurance or other types of social security, in the ordinary course of business, (j) Liens not created by Seller or any of its Affiliates that affect the underlying fee interest of any Business Leased Real Property not materially
interfering with the occupancy or ordinary use of the property they encumber and (k) non-exclusive licenses or other rights granted to Intellectual Property. 

  
 -10- 

 “Pension Participant” shall mean each person who (a) as of immediately
prior to the Closing is a participant in the final average pay component of the Seller Pension Plan, and (b) is a Transferred Business Employee. Section 1.1(e) of the Seller Disclosure Schedule contains a list of each
Business Employee who is a participant in the final average pay component of the Seller Pension Plan as of a date that is within five (5) Business Days prior to the date of this Agreement. Seller shall provide an updated version of this
Section 1.1(e) of the Seller Disclosure Schedule to Purchaser no later than five (5) Business Days prior to the Closing Date. 

“Person” shall mean an individual, partnership (general or limited), corporation, limited liability company, joint venture,
association or other form of business organization (whether or not regarded as a legal entity under applicable Law), trust or other entity or organization, including a Governmental Entity. 

“PSE&G” shall mean Public Service Electric and Gas Company, a corporation organized and existing under the laws of New
Jersey. 
 “Purchaser Material Adverse Effect” shall mean any event, change, development or effect that is or would
reasonably be expected to be, individually or in the aggregate, materially adverse to the ability of Purchaser to timely perform its obligations under this Agreement, including to consummate the Sale when required hereunder. 

“Release” means disposing, discharging, injecting, spilling, leaking, leaching, dumping, pumping, pouring, emitting,
escaping, emptying, seeping, placing and migrating into or upon any land or water or air, or otherwise entering into the environment. 

“Remedial Action” means any action to investigate, evaluate, assess (including risk assessment of), test, monitor, remove,
respond to, treat, abate, remedy, correct, clean-up or otherwise remediate the Release or presence of any Hazardous Substance. 

“Remediation and Access Agreement” shall mean the Remediation and Access Agreement to be entered into at the Closing
substantially in the form of Exhibit D hereto. 
 “Representatives” shall mean, when used with respect to any
Person, the managers, members, directors, officers, employees, consultants, financial advisors, accountants, legal counsel, investment bankers and other agents, advisors and representatives of such Person and its Affiliates. 

“Represented Employee” means each Business Employee who is covered by or otherwise subject to a Collective Bargaining
Agreement. 
 “Restricted Cash” shall mean any cash that is subject to restrictions, limitations, or otherwise restricted
for a particular use, purpose, or event and not available for general corporate use, including all deposits with third parties (including landlords) and any amounts held in escrow or for collateral, including all cash posted to support letters of
credit, performance bonds or other similar obligations, determined in accordance with the Accounting Principles. 

  
 -11- 

 “Retained Businesses” shall mean all businesses of the Seller Group and its
Affiliates other than the Business and the Business (as defined in the NY/CT EPA). 
 “R&W Insurance Policy” shall mean
the representations and warranties insurance policy obtained by Purchaser in connection with the transactions contemplated hereby. 

“Sale Process” shall mean all matters relating to the sale or separation of the Business and the review of strategic
alternatives with respect to the Business, and all activities in connection therewith, including matters relating to (a) the solicitation of proposals from and negotiations with third parties in connection with the sale of the Business and
(b) the drafting, negotiation or interpretation of any of the provisions of this Agreement or the Ancillary Agreements. 

“SEC” shall mean the United States Securities and Exchange Commission. 

“Securities Act” shall mean the United States Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder. 
 “Seller Benefit Plan” shall mean each Benefit Plan that is not a Transferred Entity Benefit Plan. 

“Seller Group” shall mean Seller Parent and its Subsidiaries. 

“Seller Parent” shall mean Public Service Enterprise Group Inc. 

“Seller Pension Plan” shall mean the Pension Plan of Public Service Enterprise Group and the Pension Plan of the Public
Service Enterprise Group Incorporated II. 
 “Seller Restructuring Taxes” shall mean any and all Taxes imposed directly on
any step (other than incremental Taxes relating solely to item #4 of Section 5.19(a) of the Seller Disclosure Schedule or the Bifurcation) taken in the Seller Restructuring Transaction (for the absence of doubt, in each
case, to the extent such Taxes are (i) for a taxable period or portion thereof ending on or before the Closing Date or (ii) in the case of any action that occurs after the Closing Date, for a taxable period or portion thereof that includes
the date such action occurred). 
 “Seller Transaction Expenses” shall mean the aggregate amount of (a) all out-of-pocket fees and disbursements (including attorneys, investment bankers, accountants and other professional advisors), which have been incurred by Seller or its
Affiliates in connection with the Sale Process and are payable by the Transferred Entities, (b) any retention, stay, severance, sale or change of control bonuses payable to any current or former Business Employee or other individual service
provider of the Business as a result of or in connection with this execution of this Agreement or the transactions contemplated hereby (but excluding any post-Closing liabilities or obligations arising as a result of the occurrence of both
(i) the execution of this Agreement or the consummation of the transactions contemplated hereby and (ii) one or more additional post-Closing events under so-called “double-trigger”
severance provisions contained 

  
 -12- 

 
in any Transferred Entity Benefit Plan)), together with the employer portion of any payroll, social security, or other Taxes incurred in connection with such payments and (c) all brokers and
finders fees incurred by Seller or its Affiliates in connection with the transactions contemplated by this Agreement. 
 “Services
Agreement” shall mean the Services Agreement to be entered into at the Closing substantially in the form of Exhibit B hereto. 

“Subsidiary” shall mean, with respect to any Person, any corporation, entity or other organization, whether incorporated or
unincorporated, of which (a) such first Person directly or indirectly owns or controls at least a majority of the securities or other interests having by their terms ordinary voting power to elect a majority of the board of directors or others
performing similar functions or (b) such first Person is a general partner or managing member; provided, that from and after the Closing, none of the Transferred Entities shall be considered a Subsidiary of Seller or any of Seller’s
Affiliates. 
 “Timing Adjustment” shall mean an amount equal to the net sum (whether positive or negative) of the Timing
Adjustment Cash Flow for each day included in the Timing Adjustment Period, as calculated in accordance with the Timing Adjustment Principles. 

“Timing Adjustment Cash Flow” shall mean the actual aggregate cash flows of the Transferred Entities on a consolidated basis
as calculated in accordance with the Timing Adjustment Principles. 
 “Timing Adjustment Period” shall mean, if the Closing
Date is after the Adjustment Date, the period commencing at 12:01 a.m. (New York City time) on the Adjustment Date and ending at 11:59 p.m. (New York City time) on the day prior to the Closing Date. 

“Timing Adjustment Principles” shall mean the following principles, and shall be calculated in a manner consistent with the
sample calculation attached hereto as Schedule II (which, for the avoidance of doubt, shows what the Timing Adjustment would have been for the period January through March 2021, but shall apply for the entire period from January 1, 2022 through
Closing): 
  

	 	1.	 Timing Adjustment Cash Flow shall reflect the unlevered free cash flow generation of the Business operating on
a standalone basis, as further described below and in the attached Schedule II. 

  

	 	2.	 Timing Adjustment Cash Flow shall not be reduced by (in each case except as set forth in clause 3 below):

 (a) allocation of corporate overhead (including any charges relating to the Seller’s and its Affiliates’
insurance program); 
 (b) any dividend or other distribution declared, paid or made by any of the Transferred Entities to the Seller or an
Affiliate; 

  
 -13- 

 (c) any payment of any other nature made by any of the Transferred Entities to or for the
benefit of the Seller or an Affiliate; 
 (d) any transfer or surrender of assets, rights or other benefits by any of the Transferred
Entities to or for the benefit of the Seller or an Affiliate; 
 (e) any of the Transferred Entities assuming or incurring any liability or
obligation for the benefit of the Seller or an Affiliate; 
 (f) the provision of any guaranty or indemnity or the creation of any
encumbrance by any of the Transferred Entities in favor, or for the benefit, of the Seller or an Affiliate; 
 (g) any waiver, discount,
deferral, release or discharge by any of the Transferred Entities of: (i) any amount, obligation or liability owed to it by the Seller or an Affiliate; or (ii) any claim (howsoever arising) against the Seller or an Affiliate; 

(h) Seller Transaction Expenses; 

(i) capital expenditures or major maintenance charges relating to (i) the use of parts and equipment held in inventory by the Transferred
Entities or other Affiliate of Seller and that constitute assets of the Business or (ii) corporate overhead; 
 (j) the payment of any
Indebtedness; 
 (k) the BGSS asset charge under the CSG Agreement; 

(l) any accruals not reducing cash (including any accruals for property taxes). 

 

	 	3.	 Timing Adjustment Cash Flow shall be reduced by: 

(a) $245,000 per month representing service company direct charges, prorated for any partial months during the calculation period; and 

(b) $50,000 per year representing property insurance costs, prorated for any partial year during the calculation period. 

“Target Working Capital Amount” shall mean $161,400,000. 

“Tax” shall mean any tax of any kind, including any U.S. federal, state, local or foreign income, profits, license,
severance, occupation, windfall profits, capital gains, capital stock, transfer, registration, social security (or similar), production, franchise, gross receipts, payroll, sales, employment, use, property (which shall also include assessments),
customs, tariffs, value added, estimated, stamp, alternative or add-on minimum, environmental or withholding tax, and any other similar duty, assessment or governmental charge, together with all interest,
penalties and additions thereto, whether disputed or not.  

  
 -14- 

 “Tax Proceeding” shall mean any notice of deficiency, proposed adjustment,
adjustment, assessment, audit, examination, contest, litigation, dispute, claim or other proceeding in respect of any Taxes. 
 “Tax
Return” shall mean any return, declaration, report, claim for refund or information return or statement filed or required to be filed with any taxing authority relating to Taxes, and any amendment thereof or schedule or attachment thereto.

 “Transferred Entity” shall mean the Transferred Company and each Subsidiary of the Transferred Company as of the
Closing, which Subsidiaries are listed on Section 3.1 of the Seller Disclosure Schedule. 
 “Transferred
Entity Benefit Plan” shall mean each Benefit Plan that is (i) sponsored, maintained or contributed to solely by one or more Transferred Entities, or (ii) exclusively for the benefit of the Business Employees and/or former
employees of any Transferred Entity, in each case excluding any such Benefit Plan for which Seller shall retain all liabilities under the terms of this Agreement. 

“Transferred MAST Employee” shall mean each Transferred Business Employee who is not a Transferred Represented Employee. 

“Transferred Represented Employee” shall mean each Transferred Business Employee who is a Represented Employee. 

“Transition Services Agreement” shall mean the Transition Services Agreement to be entered into at the Closing substantially
in the form of Exhibit A hereto. 
 “Working Capital” shall mean (a) the current assets of the Business, as of
12:01 a.m. (New York City time) on the earlier to occur of the Closing Date and the Adjustment Date, as applicable, that are included in the line item categories of current assets specifically identified in Annex A of Schedule I
minus (b) the current liabilities of the Business, as of 12:01 a.m. (New York City time) on the earlier to occur of the Closing Date and the Adjustment Date, as applicable, that are included in the line item categories of current
liabilities specifically identified in Annex A of Schedule I, in each case, without duplication and without giving effect to the Sale, and calculated in accordance with the Accounting Principles; provided, that in no event shall
“Working Capital” include any amounts to the extent included in or with respect to (i) Indebtedness or Cash, (ii) amounts outstanding pursuant to intercompany accounts, arrangements, understandings or Contracts to be
settled or eliminated at or prior to the Closing pursuant to Section 5.7 or Section 5.8, (iii) Excluded Assets or Excluded Liabilities, or (iv) Liabilities or payments that are expressly
required to be paid at or following the Closing by Seller or any of its Affiliates pursuant to this Agreement; provided, further, that in no event shall “Working Capital” include any amounts with respect to any
(x) deferred income Tax assets or deferred income Tax Liabilities, (y) asset or Liability with respect to any U.S. federal income Tax or any other Tax, in each case of this clause (y), reportable on a Combined Tax Return and for which the
Transferred Entities have no primary liability or (z) any amount accrued or reserved as a Liability in connection with any pending Tax Proceeding. The parties acknowledge and agree that the intention with respect to fuel oil inventory is to
deliver the Business at Closing with the number of barrels set forth in Item 3 of Section 5.19(b) of the Seller Disclosure Schedule and promptly, after the date hereof, will work to agree in each party’s sole
discretion on a reduction in the Target Working Capital Amount to reflect the elimination of all book value reflected therein relating to fuel oil inventory, and Seller will agree to deliver the Business with such volume of fuel oil inventory at
Closing and remove oil inventory (or the value thereof) from Working Capital. 

  
 -15- 

 Section 1.2 Other Definitions. The following terms shall have the meanings
defined in the Section indicated: 
  

					
	Term	  	Section	 
	 ABO Amount
	  	 	Section 6.10(b)	 
	 Accounting Principles
	  	 	Section 2.4(b)	 
	 Additional Purchaser
	  	 	Recitals	 
	 Additional Real Estate
	  	 	Section 5.25(b)	 
	 Affiliate Arrangement
	  	 	Section 3.20	 
	 Aggregate Base Purchase Price
	  	 	Section 7.2(a)	 
	 Agreement
	  	 	Preamble	 
	 Allocation
	  	 	Section 7.2(a)	 
	 Base Purchase Price
	  	 	Section 2.2	 
	 BGSS Asset Letter Agreement
	  	 	Recitals	 
	 Business Financial Information
	  	 	Section 3.5(a)	 
	 Business Leased Real Property
	  	 	Section 3.12	 
	 Business Material Contracts
	  	 	Section 3.15(a)	 
	 Business Owned Real Property
	  	 	Section 3.12	 
	 Business Real Property
	  	 	Section 3.12	 
	 Capex Adjustment Estimate
	  	 	Section 2.4(a)	 
	 Closing
	  	 	Section 2.1(a)	 
	 Closing Adjustments
	  	 	Section 2.2	 
	 Closing Date
	  	 	Section 2.3(a)	 
	 Closing Purchase Price
	  	 	Section 2.2	 
	 Collective Bargaining Agreement
	  	 	Section 3.11(a)	 
	 Commingled Contracts
	  	 	Section 5.5(b)	 
	 Commingled/Delayed Contracts
	  	 	Section 5.5(b)	 
	 Condemnation Value
	  	 	Section 5.22(a)	 
	 Confidential Business Information
	  	 	Section 5.2(b)	 
	 Continuation Period
	  	 	Section 6.2(a)	 
	 Contract Splitting Credit Support
	  	 	Section 5.5(c)	 
	 Current Representation
	  	 	Section 11.12(a)	 
	 Data Room
	  	 	Section 5.16	 
	 Debt Commitment Letter
	  	 	Section 4.6(a)	 
	 Debt Financing
	  	 	Section 4.6(a)	 
	 Definitive Agreements
	  	 	Section 5.15(a)	 
	 Designated Person
	  	 	Section 11.12(a)	 

  
 -16- 

					
	 Employee List
	  	 	Section 3.11(c)	 
	 Enforceability Exceptions
	  	 	Section 3.3	 
	 Equity Commitment Letter
	  	 	Section 4.6(b)	 
	 Equity Financing
	  	 	Section 4.6(b)	 
	 Equity Investor
	  	 	Section 4.6(b)	 
	 Equity Rights
	  	 	Section 3.2	 
	 Estimated Closing Statement
	  	 	Section 2.4(a)	 
	 Event of Loss
	  	 	Section 5.22	 
	 Excluded Assets
	  	 	Section 1.1	 
	 Excluded Facilities
	  	 	Section 5.3(g)	 
	 Excluded Liabilities
	  	 	Section 1.1	 
	 Excluded Participant
	  	 	Section 3.10(a)	 
	 Existing Affiliate Easements
	  	 	Section 3.12	 
	 Facility
	  	 	Section 1.1	 
	 Final Closing Statement
	  	 	Section 2.6(c)	 
	 Final Purchase Price
	  	 	Section 2.7(a)	 
	 Financing
	  	 	Section 4.6(b)	 
	 Financing Amounts
	  	 	Section 4.6(e)	 
	 Fossil Transaction
	  	 	Section 11.17	 
	 Improvements
	  	 	Section 3.12	 
	 Indemnified Party
	  	 
 
	Section 10.4(a),
 Section 5.9(a)
	 
  

	 Indemnifying Party
	  	 	Section 10.4(a)	 
	 Independent Accounting Firm
	  	 	Section 2.6(c)	 
	 Initial Closing Statement
	  	 	Section 2.5(a)	 
	 Interest Rate
	  	 	Section 6.10(b)	 
	 Internet Properties
	  	 	Section 1.1	 
	 ISRA
	  	 	Section 5.17	 
	 IT Assets
	  	 	Section 3.16(b)	 
	 Leave Employee
	  	 	Section 6.1(b)	 
	 Legal Restraints
	  	 	Section 8.1(b)	 
	 Lenders
	  	 	Section 4.6(a)	 
	 Limited Guaranty
	  	 	Recitals	 
	 Major Loss
	  	 	Section 5.22(b)	 
	 Marks
	  	 	Section 1.1	 
	 NJDEP
	  	 	Section 5.17	 
	 Notice of Disagreement
	  	 	Section 2.6(a)	 
	 NY/CT EPA
	  	 	Recitals	 
	 Option Exercise Period
	  	 	Section 5.25(b)	 
	 Option Exercise Price
	  	 	Section 5.25(b)	 
	 Outside Date
	  	 	Section 9.1(b)(i)	 
	 Outstanding Equity Awards
	  	 	Section 6.9(c)	 
	 Parts and Services Sharing Agreement
	  	 	Section 5.18	 
	 PartsCo
	  	 	Preamble	 
	 Patents
	  	 	Section 1.1	 
	 Pension Transfer Amount
	  	 	Section 6.10(b)	 
	 Pension Transfer Date
	  	 	Section 6.10(b)	 

  
 -17- 

					
	 Pension Transfer Deadline
	  	 	Section 6.10(b)	 
	 Policies
	  	 	Section 3.19	 
	 Post-Closing Adjustment
	  	 	Section 2.7(a)	 
	 Post-Closing Contamination
	  	 	Section 5.17	 
	 Post-Closing Representation
	  	 	Section 11.12(a)	 
	 Purchaser
	  	 	Preamble	 
	 Purchaser DC Plans
	  	 	Section 6.8	 
	 Purchaser Disclosure Schedule
	  	 	Article IV	 
	 Purchaser Parties
	  	 	Section 10.1(b)	 
	 Purchaser Pension Plan
	  	 	Section 6.10(a)	 
	 Purchaser Termination Fee
	  	 	Section 9.3(b)	 
	 Purchaser Threshold
	  	 	Section 5.5(c)	 
	 Purchaser’s Allocation
	  	 	Section 7.2(a)	 
	 Reactive Update
	  	 	Section 5.3(c)	 
	 Real Property Leases
	  	 	Section 3.12	 
	 Required Approval
	  	 	Section 8.1(a)	 
	 Resolution Period
	  	 	Section 2.6(b)	 
	 Restoration Costs
	  	 	Section 5.22(a)	 
	 Sale
	  	 	Section 2.1(a)	 
	 Seller
	  	 	Preamble	 
	 Seller 401(k) Plan
	  	 	Section 6.8	 
	 Seller Actuary
	  	 	Section 6.10(b)	 
	 Seller Disclosure Schedule
	  	 	Article III	 
	 Seller Guarantees
	  	 	Section 3.15(a)(ix)	 
	 Seller Names
	  	 	Section 5.13(a)	 
	 Seller Parties
	  	 	Section 10.1(b)	 
	 Seller Restructuring Transactions
	  	 	Section 5.19(a)	 
	 Seller’s Allocation Notice
	  	 	Section 7.2(a)	 
	 SRRA
	  	 	Section 5.17	 
	 Substantial Detriment
	  	 	Section 5.3(g)	 
	 Tail Policy
	  	 	Section 5.10(b)	 
	 Taking
	  	 	Section 5.22	 
	 Third Party Claim
	  	 	Section 10.4(a)	 
	 Third Party Consents
	  	 	Section 5.5(a)	 
	 Timing Adjustment Monthly Estimate
	  	 	Section 2.4(c)	 
	 Trade Secrets
	  	 	Section 1.1	 
	 Transfer Taxes
	  	 	Section 7.6	 
	 Transferred Business Employee
	  	 	Section 6.1(a)	 
	 Transferred Company
	  	 	Recitals	 
	 Transferred Entity Permits
	  	 	Section 3.9	 
	 Transferred Spare Parts
	  	 	Section 2.1(b)	 
	 Units
	  	 	Recitals	 
	 WARN Act
	  	 	Section 3.11(e)	 

  
 -18- 

 Article II 

THE SALE 
 Section 2.1
Sale and Purchase. 
 (a) Upon the terms and subject to the conditions set forth in this Agreement, at the closing of the transactions
contemplated by this Agreement (the “Closing”), Seller shall transfer, convey, assign and deliver to Purchaser, and Purchaser shall purchase and acquire from Seller, all of Seller’s right, title and interest in and to the
Units, free and clear of any Liens other than Permitted Equity Liens (the “Sale”). 
 (b) Upon the terms and subject to the
conditions set forth in this Agreement, at the Closing, Seller shall and shall cause its Affiliates to, transfer, convey, assign and deliver to PartsCo, and PartsCo shall acquire and accept from Seller, the spare parts inventory set forth in the
Parts and Services Term Sheet (the “Transferred Spare Parts”), free and clear of any Liens other than Permitted Liens and subject to the terms set forth in the Parts and Services Term Sheet. 

Section 2.2 Closing Purchase Price. In consideration for the Units and the Transferred Spare Parts, at the Closing, Purchaser
shall deliver to Seller (and/or one or more of Seller’s designees), in cash, an aggregate amount of (a) $1,370,000,000 (as the same may be adjusted pursuant to Section 5.3(g) or Section 5.22)
(the “Base Purchase Price”), plus (b) an amount, which may be positive or negative, that shall be equal to (i) the amount of Working Capital set forth in the Estimated Closing Statement minus (ii) the
Target Working Capital Amount, minus (c) the Capex Adjustment Estimate, plus (d) the amount, which may be positive or negative, of Net Cash set forth in the Estimated Closing Statement, minus (e) if the Closing
Date occurs on or after the Adjustment Date, the Timing Adjustment (which may be positive or negative) set forth in the Estimated Closing Statement (provided, that if Seller obtains a judgment or settlement pursuant to
Section 11.11 to compel Purchaser to proceed to Closing, then the Timing Adjustment will be zero ($0) and no amounts related to the Timing Adjustment shall be payable hereunder, regardless of when the Closing actually
occurs) (the amounts in clauses (b), (c), (d) and (e) together, the “Closing Adjustments”) (the aggregate amount determined pursuant to this Section 2.2 and Section 5.22, the
“Closing Purchase Price”). 
 Section 2.3 Closing. 

(a) The Closing shall take place (i) at the offices of Wachtell, Lipton, Rosen & Katz, 51 West 52nd Street, New York, New York
10019, at 10:00 a.m. (New York City time) on the date that is three (3) Business Days after the date on which all of the conditions set forth in Article VIII (other than those conditions that by their nature are to be satisfied or waived
on the Closing Date, but subject to the satisfaction or waiver of those conditions) are satisfied or waived, or (ii) at such other place, time or date as may be mutually agreed upon in writing by Seller and Purchaser. The date on which the
Closing occurs is referred to as the “Closing Date.” 
 (b) At the Closing: 

  
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 (i) Seller shall: 

(A) convey to Purchaser all of Seller’s right, title and interest in the Units; 

(B) deliver to Purchaser the certificate required to be delivered pursuant to Section 8.2(c); 

(C) deliver to Purchaser a duly executed IRS Form W-9 of Seller (or if Seller is a
disregarded entity for U.S. federal income tax purposes, its regarded owner); 
 (D) deliver to Purchaser a duly executed
counterpart to each of the Ancillary Agreements Seller is party to; and 
 (E) deliver to Purchaser an executed CSG
Agreement Consent to Assignment, duly executed by PSE&G. 
 (ii) Purchaser shall: 

(A) deliver to Seller (or to any Affiliate designated by Seller) by wire transfer, to an account or accounts designated by
Seller (or by such Affiliate) prior to the Closing, immediately available funds in an aggregate amount equal to the Closing Purchase Price; 

(B) deliver to Seller the certificate required to be delivered pursuant to Section 8.3(c); and 

(C) deliver to Seller a duly executed counterpart to each of the Ancillary Agreements that Purchaser is party to. 

Section 2.4 Closing Working Capital and Net Cash Adjustments. 

(a) Not less than three (3) Business Days prior to the anticipated Closing Date, Seller shall provide Purchaser with a good faith
estimate, together with reasonable supporting documentation for such estimate, of each of (i) Working Capital as of 12:01 a.m. (New York City time) on the earlier of (A) the Adjustment Date and (B) the Closing Date, (ii) Cash as
of 12:01 a.m. (New York City time) on the earlier of (A) the Adjustment Date and (B) the Closing Date, (iii) the Capex Adjustment (the “Capex Adjustment Estimate”) as of 12:01 a.m. (New York City time) on the earlier
of (A) the Adjustment Date and (B) the Closing Date, (iv) Indebtedness as of 12:01 a.m. (New York City time) on the Closing Date and (v) if applicable, the Timing Adjustment as of 12:01 a.m. (New York City time) on the Closing
Date (collectively, the “Estimated Closing Statement”), which shall be accompanied by a notice that sets forth (i) Seller’s determination of the Closing Adjustments and the Closing Purchase Price after giving effect to the
Closing Adjustments and (ii) the account or accounts to which Purchaser shall transfer the Closing Purchase Price pursuant to Section 2.3. If the estimated Closing Date is delayed, Seller shall provide a revised
Estimated Closing Date as promptly as reasonably practical prior to such date and the provisions herein shall apply to such revised date. 

  
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 (b) The Estimated Closing Statement shall be prepared in good faith in accordance with GAAP,
applied consistently with the principles, practices, procedures and methodologies set forth in the Business Financial Information as specifically modified by the accounting principles, practices, procedures and methodologies attached as Schedule
I hereto (collectively, the “Accounting Principles”), including the use of the same line item categories set forth on Annex A of Schedule I, which sets forth a sample calculation of Working Capital and
Net Cash as of December 31, 2020 and in respect of the applicable Timing Adjustment, in accordance with the Timing Adjustment Principles. Seller shall consider in good faith Purchaser’s reasonable comments to the Estimated Closing
Statement and/or any of the components thereof or calculations therein; provided, however, that Purchaser’s review of the Estimated Closing Statement shall not delay the Closing. 

(c) From the Adjustment Date, no later than thirty (30) days following each calendar month end, Seller shall provide Purchaser a
preliminary statement setting forth the Timing Adjustment for the preceding month as compared against the figures from the corresponding month of the preceding fiscal year (each a “Timing Adjustment Monthly Estimate”). Each Timing
Adjustment Monthly Estimate may be adjusted to reflect the expected actual figures for such month-end and/or by taking into account Purchaser’s reasonable comments. Purchaser and its Affiliates and
Representatives shall be permitted reasonable fulsome access and to review the books, records and work papers of Seller that are reasonably related to the calculation of each Timing Adjustment Monthly Estimate, and Seller shall, and shall cause its
Affiliates and Representatives to, reasonably cooperate fully with and assist Purchaser and its Affiliates and Representatives in connection with such review, including by providing reasonable access to such books, records and work papers and making
available personnel to the extent reasonably requested, in each case, upon reasonable notice and during normal business hours. Seller shall consider in good faith Purchaser’s reasonable comments to the calculation of each Timing Adjustment
Monthly Estimate. 
 (d) For the avoidance of doubt, the Estimated Closing Statement, the Initial Closing Statement and the Final Closing
Statement shall be prepared such that there shall be no duplication of amounts owed under this Agreement and the NY/CT EPA by either party. 

Section 2.5 Post-Closing Statements. 

(a) Within ninety (90) days after the Closing Date, Seller shall prepare in good faith and deliver to Purchaser a statement setting forth
in reasonable detail Purchaser’s calculation of (i) Working Capital as of 12:01 a.m. (New York City time) on the earlier of (A) the Adjustment Date and (B) the Closing Date, (ii) Cash as of 12:01 a.m. (New York City time) on
the earlier of (A) the Adjustment Date and (B) the Closing Date, (iii) the Capex Adjustment as of 12:01 a.m. (New York City time) on the earlier of (A) the Adjustment Date and (B) the Closing Date, (iv) Indebtedness as
of 12:01 a.m. (New York City time) on the Closing Date, and (v) if applicable, the Timing Adjustment as of 12:01 a.m. (New York City time) on the Closing Date, and Seller’s corresponding calculation of the Closing Adjustments
(collectively, the “Initial Closing Statement”). The Initial Closing Statement shall be prepared in good faith in accordance with the Accounting Principles, applied consistently with their application in connection with the
Estimated Closing Statement, including the use of the same line item categories set forth on Annex A of Schedule I and in respect of the Timing Adjustment shall be prepared in good faith in accordance with the Timing Adjustment Principles,
applied consistently with their application in connection with the applicable Estimated Closing Statement. 

  
 -21- 

 (b) Following the Closing through the date that the Initial Closing Statement has become
final and binding in accordance with Section 2.6(c), Purchaser and its Affiliates and Representatives shall be permitted reasonable fulsome access and to review the books, records and work papers of Seller that are
reasonably related to the calculation of the Timing Adjustment, Working Capital, the Capex Adjustment and Net Cash, and Seller shall, and shall cause its Affiliates and Representatives to, reasonably cooperate fully with and assist Purchaser and its
Affiliates and Representatives in connection with such review, including by providing reasonable access to such books, records and work papers and making available personnel to the extent reasonably requested, in each case, upon reasonable notice
and during normal business hours. 
 (c) Each of Purchaser and Seller agrees that, following the Closing through the date that the Initial
Closing Statement becomes final and binding in accordance with Section 2.6(c), it shall not take or permit to be taken any actions with respect to any accounting books, records, policies or procedures on which the Business
Financial Information or the Initial Closing Statement are based, or on which the Final Closing Statement is to be based (including the Accounting Principles) that would reasonably impede or delay the final determination of the amount of Working
Capital, the Capex Adjustment or Net Cash as of 12:01 a.m. (New York City time) on the Closing Date or the Adjustment Date, as applicable, or the preparation of any Notice of Disagreement or the Final Closing Statement in the manner and utilizing
the methods provided by this Agreement. 
 Section 2.6 Reconciliation of Initial Closing Statement. 

(a) Purchaser shall notify Seller in writing no later than sixty (60) days after Seller’s receipt of the Initial Closing Statement if
Purchaser disagrees with any aspects of the Initial Closing Statement, which notice shall reasonably describe the basis for any such disagreements (the “Notice of Disagreement”). If no Notice of Disagreement is delivered to Seller
within such sixty (60) day period, then the Initial Closing Statement shall become final and binding upon the parties in accordance with Section 2.6(c). 

(b) During the thirty (30) days immediately following the delivery of a Notice of Disagreement (the “Resolution Period”),
Seller and Purchaser shall seek in good faith to resolve any differences that they may have with respect to the matters identified in the Notice of Disagreement. 

(c) If, at the end of the Resolution Period, Seller and Purchaser have been unable to resolve any differences that they may have with respect
to any of the matters identified in the Notice of Disagreement, Seller and Purchaser shall submit all such remaining matters to (i) an independent certified public accounting firm in the United States mutually acceptable to Seller and Purchaser
or (ii) if Seller and Purchaser are unable to agree upon such firm within ten (10) days after the end of the Resolution Period, then within an additional ten (10) days, Seller and Purchaser shall each select one (1) firm and
those two (2) firms shall, within ten (10) days after their selection, select a third (3rd) firm (the firm selected in accordance with clause (i) or 

  
 -22- 

 
(ii), as applicable, the “Independent Accounting Firm”). As promptly as practicable, and in any event not more than twenty (20) days following the engagement of the
Independent Accounting Firm, Seller and Purchaser shall each prepare and submit a written submission detailing its complete statement of proposed resolution of each issue still in dispute to the Independent Accounting Firm (and such presentation,
and all other communications with the Independent Accounting Firm, shall be simultaneously made or delivered to the other party). Seller and Purchaser shall instruct the Independent Accounting Firm to, as soon as practicable after the submissions
described in the immediately preceding sentence and in any event not more than thirty (30) days thereafter, make a final determination in accordance with the Accounting Principles, the Timing Adjustment Principles and the provisions of this
Agreement and based solely on the written submissions of the parties, binding on the parties to this Agreement, of the appropriate amount of each of the matters that remain in dispute solely to the extent indicated in the Notice of Disagreement that
Seller and Purchaser have submitted to the Independent Accounting Firm. With respect to each disputed matter, such determination, if not in accordance with the position of either Seller or Purchaser, shall not be in excess of the higher, or less
than the lower, of the amounts advocated by Purchaser in the Notice of Disagreement or by Seller in the Initial Closing Statement with respect to such disputed matter. For the avoidance of doubt, the Independent Accounting Firm shall not review or
make any determination with respect to any matter other than the matters that remain in dispute to the extent indicated in the Notice of Disagreement (and that have not been thereafter resolved by written agreement of the parties) and shall not
consider any events or developments that occurred after the Closing. The Initial Closing Statement as may be adjusted and as finally determined through written agreement of the parties pursuant to Section 2.6(a) or
Section 2.6(b) or through the action of the Independent Accounting Firm pursuant to this Section 2.6(c) shall be the “Final Closing Statement.” 

(d) All fees and expenses relating to the work, if any, to be performed by the Independent Accounting Firm and enforcement of the determination
thereof shall be borne by Seller and Purchaser in inverse proportion as they may prevail on the matters resolved by the Independent Accounting Firm, which proportionate allocation shall be calculated on an aggregate basis based on the relative
amounts in dispute and shall be determined by the Independent Accounting Firm at the time its final determination is rendered. During the review by the Independent Accounting Firm, Purchaser and Seller shall, and shall cause their respective
Affiliates (including, in the case of Purchaser, the Transferred Entities) and Representatives to, reasonably cooperate with the Independent Accounting Firm. 

(e) The process set forth in Section 2.5 and this Section 2.6 shall be the sole and
exclusive remedy of the parties and their respective Affiliates for any disputes related to the Closing Adjustments, the Post-Closing Adjustment, and the calculations and amounts on which they are based or set forth in the related statements and
notices delivered in connection therewith. 
 Section 2.7 Post-Closing Adjustment. The “Post-Closing
Adjustment” shall be equal to (a) (i) the amount of Working Capital set forth in the Final Closing Statement minus (ii) the amount of Working Capital set forth in the Estimated Closing Statement, minus
(b) (i) the amount of the Capex Adjustment set forth in the Final Closing Statement, minus (ii) the amount of the Estimated Capex Adjustment set forth in the Estimated Closing Statement, plus (c) (i) the amount of
Net Cash set forth in the Final Closing Statement minus (ii) the amount of Net Cash 

  
 -23- 

 
set forth in the Estimated Closing Statement, minus (d) (i) the amount of the Timing Adjustment set forth in the Final Closing Statement minus (ii) the amount of the
Timing Adjustment set forth in the Estimated Closing Statement. For the avoidance of doubt, any of the amounts set forth in the preceding sentence may be either a positive or a negative amount. If the Post-Closing Adjustment is a positive amount,
then Purchaser shall pay such positive amount in cash to Seller (or one or more Affiliates designated by Seller). If the Post-Closing Adjustment is a negative amount, then Seller (or an Affiliate designated by Seller) shall pay in cash to Purchaser
the absolute value of such negative amount. The Closing Purchase Price, as adjusted by the Post-Closing Adjustment, shall be the “Final Purchase Price.” Any such payment pursuant to this Section 2.7 shall
be made by wire transfer of immediately available funds within five (5) Business Days after the determination of the Final Closing Statement to an account designated in writing by the party entitled to the payment within three (3) Business
Days after the determination of the Final Closing Statement. 
 Section 2.8 Withholding. Purchaser and its Affiliates
shall be entitled to deduct and withhold from the consideration otherwise payable pursuant to this Agreement to Seller or any other Person such amounts as Purchaser or its Affiliate is required to deduct and withhold under applicable Law with
respect to the making of such payment (but, for the absence of doubt, not any other amounts). Except for any withholding required pursuant to Section 1445 of the Code as a result of any failure to deliver the form required by
Section 2.3(b)(i)(C), if Purchaser or its Affiliate determines that any deduction or withholding is required under an applicable Tax Law in respect of a payment or other consideration otherwise deliverable
pursuant to this Agreement, Purchaser or its Affiliate, as applicable, shall use commercially reasonable efforts to provide written notice to Seller no later than ten (10) days prior to the date on which such deduction or withholding is to be
made, and the parties shall use commercially reasonable efforts to cooperate to mitigate any such requirement. To the extent that amounts are deducted and withheld as provided by the above provisions of this Section 2.8 and
timely paid over to the appropriate taxing authority, such deducted and withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of whom such deduction and withholding was made; provided,
that, the Parties acknowledge and agree, in the case of any deduction or withholding by Purchaser or any of its Affiliates that was not required under applicable Law, subject to the provisions of Article X, Purchaser and the Transferred Entities
shall indemnify and hold harmless the Seller Parties from and against any and all Losses incurred or suffered by the Seller Parties to the extent arising out of or resulting from, the breach of the covenants and agreements of Purchaser and its
Affiliates contained in this Section 2.8. Purchaser or its Affiliate, as applicable, shall furnish to such Person the original receipt issued by such Governmental Entity, if any, or otherwise such other documentation
available to Purchaser and reasonably satisfactory to such Person, evidencing such payment, in each case, as soon as reasonably practicable but no later than ten (10) Business Days after the date of such payment. 

  
 -24- 

 Article III 

REPRESENTATIONS AND WARRANTIES OF SELLER 

Except as disclosed in the disclosure schedule delivered to Purchaser prior to the execution of this Agreement (the “Seller Disclosure
Schedule”), it being agreed that disclosure of any item in any section or subsection of the Seller Disclosure Schedule shall also be deemed disclosure with respect to any other section or subsection of this Agreement to which the relevance
of such item is reasonably apparent on its face, Seller hereby represents and warrants to Purchaser as of the date hereof and as of the Closing Date as follows: 

Section 3.1 Organization and Qualification; Subsidiaries. Seller and each Transferred Entity is a limited liability company or
other legal entity duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization. Each Transferred Entity has all requisite limited liability company or other organizational power and authority to carry on
its businesses as now being conducted. Seller and each Transferred Entity is qualified to do business and is in good standing as a foreign limited liability company or other legal entity in each jurisdiction where the conduct of its business
requires such qualification, in each case except as would not (i) reasonably be expected to have, individually or in the aggregate, a Business Material Adverse Effect or (ii) be reasonably expected to impair or materially delay the ability
of Seller to carry out its obligations under, and to consummate the transactions contemplated by, this Agreement and the Ancillary Agreements. Section 3.1 of the Seller Disclosure Schedule sets forth a list of all
Transferred Entities. Seller has made available to Purchaser true, complete and correct copies of the Organizational Documents of each Transferred Entity, which are in full force and effect, and the Transferred Entities are not in default under or
in violation of any provision of its Organizational Documents. 
 Section 3.2 Capitalization of the Transferred Entities.
The Units are duly authorized and validly issued and owned by Seller, free and clear of all Liens, except Permitted Liens. Section 3.2 of the Seller Disclosure Schedule sets forth, with respect to each Transferred Entity,
its jurisdiction of organization, (ii) its form of organization and (iii) the issue and outstanding equity interests thereof, including the number and amount thereof and the record holder thereof. All of the equity interests of the
Transferred Entities are validly issued, fully paid and nonassessable, and have been issued in compliance with applicable Laws and not in violation of preemptive or similar rights of any other Person. All equity interests of each Transferred Entity
(other than the Transferred Company) are owned, directly or indirectly, by the Transferred Company, in each case free and clear of all Liens, except Permitted Liens. The Transferred Entities do not own, beneficially or of record, directly or
indirectly, any Subsidiary or any capital stock or other voting securities of, or other ownership interests in, any Person other than as set forth on Section 3.2 of the Disclosure Schedule. Except for the Units and any
interest held by a Transferred Entity, there are no limited liability company interests, shares of common stock or preferred stock or other equity interests of any Transferred Entity issued or outstanding, and there are no rights of first refusal or
offer, options, warrants, subscription rights, call rights, preemptive or other outstanding rights, subscriptions, options, warrants, stock appreciation rights, phantom interests, profits interests, restricted units, other compensatory equity or
equity linked rights, voting rights, redemption rights, repurchase rights, convertible, exercisable, or exchangeable securities or other equity interests in any Transferred Entity or any other securities or obligations convertible or exchangeable
into or exercisable for, or giving any Person a right to subscribe for or acquire, any equity securities of any Transferred Entity, and no securities evidencing such rights are issued or outstanding (collectively, “Equity Rights”).
None of the Transferred Entities has any outstanding bonds, debentures, notes or other obligations that provide the holders thereof the right to vote (or are convertible or exchangeable into or exercisable for securities having the right to vote)
with the equity holders of such Transferred Entity on any matter. There are no restrictions on the voting or transfer of the issued and outstanding equity interests of any of the Transferred Entities pursuant to the Organizational Documents of the
applicable Transferred Entity, except as contemplated by the NY/CT EPA. 

  
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 Section 3.3 Authority Relative to this Agreement. Seller has all necessary
limited liability company or similar power and authority to execute, deliver and perform this Agreement and to consummate the transactions contemplated by this Agreement in accordance with the terms hereof. This Agreement has been duly and validly
executed and delivered by Seller, and, assuming the due authorization, execution and delivery of this Agreement by Purchaser, constitutes a valid, legal and binding agreement of Seller, enforceable against Seller in accordance with its terms,
subject to the effect of any applicable Laws relating to bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance or preferential transfers, or similar Laws relating to or affecting creditors’ rights generally and subject, as
to enforceability, to the effect of general principles of equity (the “Enforceability Exceptions”). Seller or its applicable Affiliate has all necessary limited liability company or similar power and authority to execute, deliver
and perform the Ancillary Agreements in accordance with the terms thereof. At the Closing, the Ancillary Agreements executed and delivered by Seller or its applicable Affiliate shall be duly and validly executed and delivered by Seller or its
applicable Affiliate, and, assuming the due authorization, execution and delivery of the Ancillary Agreements by Purchaser or its applicable Affiliates, shall constitute valid, legal and binding agreements of Seller or its applicable Affiliate,
enforceable against Seller or its applicable Affiliate in accordance with the terms thereof, subject to the Enforceability Exceptions. No vote or other approval of the equity holders of Seller Parent is required in connection with the execution,
delivery or performance of this Agreement and the Ancillary Agreements or to consummate the transactions contemplated by this Agreement and the Ancillary Agreements in accordance with the terms hereof and thereof. 

Section 3.4 Consents and Approvals; No Violations. Except as set forth on Section 3.4 of the Seller
Disclosure Schedule, no filing with or notice to, and no permit, authorization, registration, consent or approval of, any Governmental Entity is required on the part of Seller for the execution, delivery and performance by Seller of this
Agreement or by Seller or any Affiliate thereof of the Ancillary Agreements to which it is a party or the consummation by Seller or any Affiliate thereof of the transactions contemplated hereby or thereby, except (a) compliance with any
applicable requirements of the HSR Act or (b) any such filings, notices, permits, authorizations, registrations, consents or approvals, the failure of which to make or obtain would not reasonably be expected (x) to be, individually or in
the aggregate, material to the Business and the Transferred Entities, taken as a whole or (y) to impair or materially delay the ability of Seller to carry out its obligations under, and to consummate the transaction contemplated by, this
Agreement. Assuming compliance with the items listed on Section 3.4 of the Seller Disclosure Schedule and described in clauses (a) and (b) of the preceding sentence, neither the execution, delivery and performance of
this Agreement by Seller or the Ancillary Agreements by Seller or any applicable Affiliate thereof, nor the consummation by Seller or any Affiliate thereof of the transactions contemplated hereby or thereby, shall (i) conflict with or result in
any breach, violation or infringement of any provision of the Organizational Documents of Seller or any Transferred Entity, (ii) result in a breach, violation or infringement of, or constitute (with or without due notice or lapse of time or
both) a default (or give rise to the creation of any Lien, 

  
 -26- 

 
except for Permitted Liens, or any right of termination, amendment, cancellation or acceleration) under, any of the terms, conditions or provisions of any Business Material Contract, or
(iii) violate any Law applicable to any Transferred Entity or any of their respective properties or assets, except, in the case of each of clauses (ii) and (iii), as would not reasonably be expected (A) to be material to the Business
and the Transferred Entities, taken as a whole or (B) to impair or materially delay the ability of Seller to carry out its obligations under, and to consummate the transaction contemplated by, this Agreement. 

Section 3.5 Financial Information; Liabilities. 

(a) Section 3.5 of the Seller Disclosure Schedule sets forth, with respect to the Transferred Entities, on a consolidated basis, certain
unaudited financial information for the years ended December 31, 2020 and 2019 (such unaudited financial information, together with any notes thereto, the “Business Financial Information”). The Business Financial Information
(x) was prepared in accordance with GAAP consistently applied throughout the periods involved, except as otherwise noted therein or as set forth in Section 3.5 of the Seller Disclosure Schedule, and (y) presents
fairly, in all material respects, the results of operations of the Transferred Entities, on a consolidated basis, for each line item presented, as of the respective dates thereof or the periods then ended, in each case except as may be noted therein
and subject to normal and recurring year-end adjustments that are not material in nature or amount; provided, that the Business Financial Information and the foregoing representations and warranties in
clauses (x) and (y) are qualified by (i) the disclosures relating to the basis of presentation set forth in Section 3.5 of the Seller Disclosure Schedule and (ii) the fact that (A) the Transferred
Entities and the Transferred Entities (as defined in the NY/CT EPA) have not operated on a separate standalone basis and have historically been reported within Seller Parent’s or Seller’s consolidated financial statements, (B) the
Business Financial Information omits certain labor, service and other allocated charges and therefore does not reflect amounts that the Transferred Entities have incurred in respect of such charges historically or would incur on a standalone basis
or in arms-length transactions and (C) the Business Financial Information is not necessarily indicative of what the results of operations of the Business or all or any of the Transferred Entities may be in the future. There are no material off-balance sheet transactions, arrangements or obligations attributable to a Transferred Entity or the Business. 

(b) There are no Liabilities or obligations of the Business or the Transferred Entities of any nature, whether or not accrued, contingent or
otherwise, that would be required by GAAP to be reflected on a balance sheet (or disclosed in the accompanying footnotes thereto), other than those that (i) are reflected in the Business Financial Information or in the determination of Working
Capital or Net Cash, (ii) have been incurred in the ordinary course of business since December 31, 2020 (except to the extent such Liabilities or obligations arise from breaches by the Transferred Entities of any Business Material Contract
or the failure of the Transferred Entities to comply with applicable Law), (iii) are expressly incurred in connection with the transactions contemplated hereby or the announcement, negotiation, execution or performance of this Agreement, the
Ancillary Agreements or the Sale, (iv) have been or shall be discharged or paid off prior to Closing, (v) constitute Excluded Liabilities, or (vi) would not reasonably be expected to materially adversely affect the Business and the
Transferred Entities, taken as a whole. 

  
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 (c) Seller Parent, with respect to the Transferred Entities, maintains books and records
reflecting their assets and Liabilities that are accurate in all material respects, and systems of internal accounting controls that are designed to provide reasonable assurance in all material respects that (i) transactions are executed with
management’s general or specific authorization, (ii) transactions are recorded as necessary to permit preparation of their financial statements in accordance with GAAP, and (iii) access to their assets is permitted only in accordance
with management’s general or specific authorization, it being understood that Seller Parent’s policies and procedures are designed and implemented giving effect to the business of the Seller Group as a whole and therefore levels of
materiality and other determinations made with respect to the Seller Group are not the same as if the Business were operated on a standalone basis. 

Section 3.6 Absence of Certain Changes or Events. Except as expressly contemplated by this Agreement, (a) since
December 31, 2020, the Business has been operated in the ordinary course of business in all material respects consistent with past practice, (b) since December 31, 2020, there has not occurred any event, change, development
or effect that has had, or would reasonably be expected to have, individually or in the aggregate, a Business Material Adverse Effect, and (c) since December 31, 2020, no Transferred Entity has taken any action which if taken after the
date of this Agreement and prior to Closing would require Purchaser consent pursuant to Section 5.4(a) other than Sections 5.4(a)(iv)(C), (vii), (viii), (x), (xv) and (xviii). 

Section 3.7 Litigation. Since the date that is three (3) years prior to the date of this Agreement, (a) there has been
no, and there is no, Action pending or, to the Knowledge of Seller, threatened in writing against any Transferred Entity, or their respective assets and properties, or other member of the Seller Group arising out of or relating to the Business,
except as (i) would not reasonably be expected to be material to the Business and the Transferred Entities, taken as a whole, or impair or materially delay Seller’s ability to perform its obligations hereunder or under any Ancillary
Agreement or to consummate the transactions completed hereby and thereby or (ii) as otherwise set forth on Section 3.7 of the Seller Disclosure Schedule, and (b) no Transferred Entity (nor any other member of the
Seller Group solely with respect to the Business) is subject to any outstanding Order, except as (i) would not reasonably be expected to be material to the Business and the Transferred Entities, taken as a whole or (ii) impair or
materially delay Seller’s ability to perform its obligations hereunder or under any Ancillary Agreement or to consummate the transactions contemplated hereby and thereby. 

Section 3.8 Compliance with Laws. 

(a) (i) None of the Transferred Entities are, and no other member of the Seller Group with respect to the Business is, or since the date that
is three (3) years prior to the date hereof has been, in material violation of any Laws or Orders issued by a Governmental Entity and (ii) none of the Transferred Entities or any other member of the Seller Group with respect to the
Business has, since the date that is three (3) years prior to the date hereof, received any written notice alleging any such violation in connection with the Business. 

(b) Since the date that is three (3) years prior to the date hereof, none of the Transferred Entities, any other member of the Seller
Group with respect to the Business, nor any of their respective Representatives acting on behalf of such Transferred Entity or the Business 

  
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(i) has used or is using any funds of any Transferred Entity for any illegal contributions, gifts, entertainment or other unlawful expenses relating to political activity, (ii) has used
or is using any funds of any Transferred Entity for any direct or indirect unlawful payments to any foreign or domestic government officials or employees, (iii) has violated or is violating any provision of the United States Foreign Corrupt
Practices Act of 1977, as amended or any similar Law under any jurisdiction, (iv) has established or maintained, or is maintaining, any unlawful fund monies or other properties of any Transferred Entity, (v) has made any bribe, unlawful
rebate, payoff, influence payment, kickback or other unlawful payment of any nature or (vi) has violated any anti-money laundering or anti-boycott provisions of any applicable Law relating to money laundering, exports and embargos. 

Section 3.9 Permits. The Transferred Entities hold all Permits necessary for the conduct of the Business as conducted on the date
hereof (the “Transferred Entity Permits”), except for failures to hold such Transferred Entity Permits that would not reasonably be expected be material to the Business and the Transferred Entities, taken as a whole. Except where
the failure to so comply would not reasonably be expected to be material to the Business and the Transferred Entities, taken as a whole (a) the Transferred Entities are in compliance with the terms of the Transferred Entity Permits and,
(b) each such Transferred Entity Permit is valid, subsisting and in full force and effect, and (c) each such Transferred Entity Permit is transferrable, to the extent required, to Purchaser at Closing. Each of the Transferred Entities is
an EWG. Since the date that is three years prior to the date hereof, neither Seller nor any Transferred Entity has received a written notice from any Governmental Entity indicating that any Transferred Entity Permit may be suspended, revoked,
modified or not renewed. 
 Section 3.10 Employee Benefit Plans. 

(a) Each Transferred Entity Benefit Plan is set forth in Section 3.10(a)(i) of the Seller Disclosure
Schedule and each material Seller Benefit Plan is set forth in Section 3.10(a)(ii) of the Seller Disclosure Schedule. Seller has made available to the Purchaser copies of the following documents with respect to each
Transferred Entity Benefit Plan (to the extent applicable): (i) the current plan and trust documents and adoption agreement (including any amendments thereto) and the most recent summary plan description and each summary of material modifications
thereto; (ii) the most recent determination, advisory or opinion letter received from the Internal Revenue Service with respect to any Transferred Entity Benefit Plan intended to be qualified under Section 401(a) of the Code;
(iii) any material, non-routine correspondence with a Governmental Entity during the past three years; and (iv) most recent actuarial report or financial statement. With respect to each material
Seller Benefit Plan, Seller has made available to the Purchaser copies of the most recent summary plan description or a summary or written description of the material terms of each such Seller Benefit Plan. No Transferred Entity Benefit Plan covers
any employees or other service providers outside of the United States. No Excluded Participants participate in an Transferred Entity Benefit Plan. For purposes of this Agreement, the term “Excluded Participant” shall mean any
participant in an Transferred Entity Benefit Plan who is not a current or former employee of a Transferred Entity. 
 (b) Each Transferred
Entity Benefit Plan has been maintained, administered, funded and operated in compliance in all material respects with its terms and with applicable Law, and all contributions or premiums required to be made by any Transferred Entity or Seller or
any of its Affiliates to any Transferred Entity Benefit Plan have been timely made or, if not yet due, properly accrued in accordance with GAAP. 

  
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 (c) Each Benefit Plan that is intended to meet the requirements of a “qualified
plan” under Section 401(a) of the Code is entitled to rely upon a favorable determination letter or opinion letter issued by the Internal Revenue Service, and to the Knowledge of the Seller, nothing has occurred whether by action or
failure to act that would reasonably be expected to result in the loss of the qualified or exempt status of any such Benefit Plan. Except as would not be reasonably expected to result in material liability to the Transferred Entities, (i) no
event has occurred and no condition exists that would subject any Transferred Entity, either directly or by reason of its affiliation with any ERISA Affiliate, to any tax, fine, lien, penalty or other liability imposed by ERISA or the Code and
(ii) no nonexempt “prohibited transaction” (as such term is defined in Section 406 of ERISA and Section 4975 of the Code or Section 502 of ERISA) has occurred with respect to any Benefit Plan. 

(d) As of the date of this Agreement, there is no pending or, to the Knowledge of Seller, threatened Action relating to the Transferred Entity
Benefit Plans, except for routine claims for benefits, except as would not be reasonably expected to result in material liability to the Transferred Entities. 

(e) Except as set forth on Section 3.10(e) of the Seller Disclosure Schedule, in the past six years, none of the
Transferred Entities or any of their respective ERISA Affiliates has sponsored, maintained, contributed to or has had any obligation to contribute to or any Liability with respect to, (i) except as would not reasonably be expected to result in
any Liability to Purchaser and its Subsidiaries (including, after the Closing, the Transferred Entities), a “defined benefit plan” (as such term is defined in Section 3(35) of ERISA) that is or was subject to Title IV of ERISA or
Sections 412, 430, 431, 432, or 436 of the Code, (ii) a multiple employer plan within the meaning of Section 4001(a)(3) of ERISA or (iii) a “multiemployer plan” (as defined in Section 4001(a)(3) of ERISA). None of the
Transferred Entities is required to provide any post-employment or post-retirement health, medical or life insurance coverage for current, former or retired employees, except as required to avoid an excise tax under Section 4980B of the Code or
otherwise except as may be required pursuant to any other applicable Law. 
 (f) Each Transferred Entity Benefit Plan that is a
“nonqualified deferred compensation plan” (as defined for purposes of Code Section 409A) is in documentary and operational compliance in all material respects with Code Section 409A and the applicable guidance issued thereunder.
There is no Contract, agreement, plan or arrangement which requires Seller or any of its Affiliates, including the Transferred Entities, to pay a Tax gross-up or reimbursement payment to any Business Employee
with respect to any Tax-related payments under Section 409A of the Code or Section 280G or 4999 of the Code. 

(g) Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated by this Agreement would
reasonably be expected to, either alone or in combination with any other event, (i) result in any payment becoming due to any Business Employee or other individual service provider of the Business, (ii) increase any compensation or
benefits under any Benefit Plan or otherwise with respect to any Business Employee or other individual service provider of the Business, or (iii) result in the acceleration of the time of payment, vesting or funding or increase the amount of,
any compensation or benefits due to any Business Employee or other individual service provider of the Business. 

  
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 (h) No amount or benefit that could be, or has been, received (whether in cash or property
or the vesting of property or the cancellation of indebtedness) by any current or former employee, officer or director of the Business who is a “disqualified individual” within the meaning of Section 280G of the Code could be
characterized as an “excess parachute payment” (as defined in Section 280G(b)(1) of the Code) as a result of the consummation of the transactions contemplated by this Agreement. 

(i) No Transferred Entity has deferred any Taxes under Section 2302 of the CARES Act, similar law or executive order of the President of
the United States or received or claimed any Tax credit under Section 2301 of the CARES Act, similar law or executive order of the President of the United States or Sections 7001-7003 of the Families First Coronavirus Response Act, as may be
amended. 
 Section 3.11 Employees; Labor Matters. 

(a) Except as set forth in Section 3.11(a) of the Seller Disclosure Schedule, as of the date of this Agreement,
(i) none of the Transferred Entities and no Business Employee with respect to his or her services to Seller or its Affiliates, is a party to or subject to a collective bargaining or other labor-related agreement or arrangement with any labor
union or labor organization applicable to the Business (a “Collective Bargaining Agreement”) and (ii) other than with respect to the Business Employees subject to the Collective Bargaining Agreements set forth on
Section 3.11(a) of the Seller Disclosure Schedule, no union or other labor organization represents any Business Employees or has made a written demand to the Transferred Entities to be recognized as, or filed a petition to
be certified as, the bargaining unit representative of any Business Employees, with respect to their employment with the Transferred Entities. Seller and its Affiliates are in compliance in all material respects with all Collective Bargaining
Agreements. 
 (b) Since the date that is two (2) years prior to the date of this Agreement, (i) there is and has been no pending
or threatened organizational efforts by or on behalf of any Business Employees, and (ii) there are and have been no material strikes, material lockouts, material work stoppages, material grievance, material unfair labor practice charge,
material arbitrations, or other material labor dispute or disruption involving any Business Employee with respect to his or her services to Seller or its Affiliates. 

(c) Section 3.11(c) of the Seller Disclosure Schedule sets forth a complete and accurate census (the “Employee List”)
of each Business Employee employed by Seller and its Affiliates as of a date that is within five (5) Business Days prior to the date of this Agreement, including (as permitted by applicable Law) each employee’s name or employee
identification number, the Affiliate that employs him or her, job position, principal work location, exempt or non-exempt status, salary or hourly rate of pay as applicable, and whether a Represented Employee
or not. Neither Seller nor any of its Affiliates employs or has employed any Business Employees with a primary work location outside of the United States. 

  
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 (d) Except as would not reasonably be expected to have, individually or in the aggregate, a
Business Material Adverse Effect, all exempt employees, independent contractors, leased employees, and other individuals employed or engaged by the Transferred Entities have for the past three (3) years been properly classified at all times
under all applicable Laws. 
 (e) Since the date that is two (2) years prior to the date of this Agreement, neither the Seller nor any
of its Affiliates has taken any action with respect to the Business that would constitute a “plant closing” or “mass layoff” within the meaning of the Worker Adjustment and Retraining Notification Act of 1988 or its regulations
or any similar applicable Laws (“WARN Act”). In the last six months, neither the Seller nor any of its Affiliates have carried out any “employment loss” (as defined by the WARN Act), or layoff or material reduction in
hours of work, in any case with respect to the Business, which, if continued, in the aggregate would reasonably be expected to constitute a “plant closing” or “mass layoff” under the WARN Act. 

Section 3.12 Real Property. Section 3.12 of the Seller Disclosure Schedule sets forth a list, as of the
date hereof, that is complete and accurate in all material respects of (a) the real property owned by Seller or any Transferred Entity with respect to the Business and being transferred to Purchaser as part of the Sale hereunder (the
“Business Owned Real Property”) and the applicable Seller or Transferred Entity that is the holder thereof and (b) the real property leased, subleased or licensed by any Transferred Entity or other applicable Affiliate of
Seller with respect to the Business and being transferred to Purchaser as part of the Sale hereunder, other than the Business Owned Real Property (the “Business Leased Real Property” and, together with the Business Owned Property,
the “Business Real Property”). Except as would not reasonably be expected to be material to the Business and the Transferred Entities, taken as a whole, each of the Transferred Entities, as applicable, has, good and marketable title
to all Business Owned Real Property and a valid leasehold, subleasehold or license interest, as applicable, in the Business Leased Real Property leased, subleased or licensed by it, in each case free and clear of all Liens, except Permitted Liens.
There are no pending or, to the Knowledge of Seller, threatened condemnation proceedings affecting any Business Owned Real Property or Business Leased Real Property or any material portion thereof, except as would not reasonably be expected to be
material to the Transferred Entities and the Business, taken as a whole. All leases, subleases and licenses, together with all amendments, modifications and supplements thereto (collectively, the “Real Property Leases” and each a
“Real Property Lease”) for the Business Leased Real Property are in full force and effect and are enforceable in accordance with their respective terms, subject to the Enforceability Exceptions, except as would not reasonably be
expected to be material to the Transferred Entities and the Business, taken as a whole. Neither Seller nor any Transferred Entity has received any written notice of any, and there is no, default or other matter or condition in existence as of the
date hereof that would constitute a breach under any Real Property Lease by any of the Transferred Entities under any such lease, sublease or license, except as would not reasonably be expected to be material to the Transferred Entities and the
Business, taken as a whole. Except as would not reasonably be expected to be material to the Transferred Entities and the Business, taken as a whole, the buildings, structures, fixtures and other improvements located on the Business Owned Real
Property and the Business Leased Real Property (collectively, the “Improvements”) comply with all applicable Laws. Except as would not reasonably be expected to be material to the Transferred Entities and the

  
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Business, taken as a whole, none of the Improvements require any special dispensation, variance or special permit under any Law (whether or not such dispensation, variance or special permit has
been issued and obtained). Section 3.12(c) of the Seller Disclosure Schedule sets forth a list, as of the date hereof, that is complete and accurate in all material respects of all easements, servitudes, rights of way and
similar agreements that encumber, affect or have otherwise granted rights in and to the Business Real Property in favor of the Seller, PSE&G or their respective Affiliates (together with all amendments, modifications and other supplements
thereto, the “Existing Affiliate Easements”). The Existing Affiliate Easements do not materially interfere with, and would not reasonably be expected to materially interfere with as a result of the exercise of the rights of the
parties thereunder, the ordinary conduct of the Business as conducted as of the date hereof at the asset to which they relate, or the use or occupancy thereof. 

Section 3.13 Taxes. Except as would not reasonably be expected to be, individually or in the aggregate, material to the Business
and the Transferred Entities, taken as a whole: 
 (a) All Tax Returns required to be filed by any Transferred Entity or with respect to the
Business have been timely filed (taking into account permitted extensions) with the appropriate taxing authority, and all such Tax Returns are true, correct and complete in all respects. 

(b) All Taxes payable by the Transferred Entities or with respect to the Business (whether or not shown as due on any Tax Return) have been
duly and timely paid or shall be duly and timely paid by the due date thereof. No written claim has been made during the past three (3) years by a taxing authority in a jurisdiction where a Tax Return is not filed by a Transferred Entity or
with respect to the Business that such entity or the activities or operations of the Business are or may be subject to taxation by that jurisdiction in respect of Taxes that would be covered by or the subject of such Tax Return. 

(c) No Tax Proceeding with respect to any Taxes of the Transferred Entities or with respect to the Business is currently pending or has been
threatened in writing. No deficiencies for Taxes with respect to any Transferred Entity or the Business have been claimed, proposed or assessed in writing by any taxing authority. No Transferred Entity has waived any statutes of limitations (other
than automatic or automatically granted waivers) in respect of Taxes that remains open, nor agreed in writing to any extension of time in respect of a Tax assessment or deficiency by or with respect to any Transferred Entity or the Business that
remains open (other than pursuant to extensions of time to file Tax Returns obtained in the ordinary course of business), nor has any request been made in writing for such a waiver or extension that is currently pending (other than pursuant to
extensions of time to file Tax Returns obtained in the ordinary course of business. 
 (d) All applicable Laws relating to the collection and
withholding of Taxes have been complied with by the Transferred Entities and with respect to the Business. 
 (e) No “listed
transaction,” within the meaning of Treasury Regulations Section 1.6011-4, has been participated in by any Transferred Entity or in the course of conducting the Business. 

  
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 (f) There are no Liens for Taxes upon any property of the Transferred Entities other than
Permitted Liens. 
 (g) Each Transferred Entity is, and has been since its formation (except for PSEG Power New York LLC, which since
May 1, 2009 has been), disregarded as an entity separate from its owner for U.S. federal income tax purposes (in the case of taxable periods, or portions thereof, ending on or prior to the date of the direct or indirect acquisition of such
Transferred Entity by Seller or a Seller Affiliate, to the Knowledge of Seller). 
 (h) No Transferred Entity has ever been a member of an
affiliated group filing a consolidated federal income Tax or any similar group for federal, state, local or foreign Tax purposes other than any such group for which Seller or a Seller Affiliate was the common parent (in the case of taxable periods,
or portions thereof, ending on or prior to the date of the direct or indirect acquisition of such Transferred Entity by Seller or a Seller Affiliate, to the Knowledge of Seller). No Transferred Entity has any Liability for Taxes of any Person (other
than Seller Parent and its Subsidiaries, including the Transferred Entities) (i) under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or foreign law), (ii) as a
transferee or successor, or (iii) by Contract (other than any Contract the primary purpose of which does not relate to Taxes, any Contract subject to termination under Section 7.3, and any Contract solely between
Transferred Entities) (in the case of any such Liability for any taxable periods, or portions thereof, ending on or prior to the date of the direct or indirect acquisition of such Transferred Entity by Seller or a Seller Affiliate, to the Knowledge
of Seller). 
 (i) No Transferred Entity is a party to or bound by or has any liability pursuant to any written Tax indemnity agreement, Tax
sharing agreement, Tax allocation agreement or similar Contract (other than any Contract the primary purpose of which does not relate to Taxes, any Contract subject to termination under Section 7.3, and any Contract solely
between Transferred Entities). 
 (j) No Transferred Entity will be required to include any item of income in, or exclude any item of
deduction from, taxable income for any period (or any portion thereof) ending after the Closing Date as a result of any Section 481 adjustment (or similar adjustment under state, local or non-U.S. law)
made or any installment sale or open transaction consummated prior to the Closing. 
 (k) The unpaid Taxes of the Transferred Entities did
not exceed the reserves for Tax Liability (excluding any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of the balance sheet included in the Business Financial Information
(rather than in any notes thereto), and since the date thereof, no Transferred Entity has incurred any Liability for Taxes outside the ordinary course of business or otherwise inconsistent with past practice. 

(l) Notwithstanding any other provision of this Agreement to the contrary, Purchaser acknowledges and agrees that the representations and
warranties contained in this Section 3.13 (and Section 3.10 insofar as such Section specifically relates to Taxes, Section 3.4 and
Section 3.15) (i) are the only representations and warranties made by Seller with respect to Tax matters, and no other provision of this Agreement shall be interpreted as containing any

  
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representation or warranty with respect thereto, and (ii) except for Section 3.13(f), 3.13(g), 3.13(i) and the first sentence of Section 3.13(h), shall not be
interpreted as containing any representation or warranty with respect to any Tax matters with respect to U.S. federal income Taxes or any other Taxes reportable on a Combined Tax Return unless a Transferred Entity could reasonably be expected to be
liable for such Taxes. 
 Section 3.14 Environmental Matters. 

(a) Except as would not reasonably be expected to be material to the Business and the Transferred Entities, taken as a whole, and except with
respect to any Excluded Liabilities, the Transferred Entities conduct (and since the date that is three (3) years prior to the date hereof, have conducted) their businesses in compliance with all Environmental Laws. 

(b) Except as would not reasonably be expected to be material to the Business and the Transferred Entities, taken as a whole, and except with
respect to any Excluded Liabilities, (i) there are (and since the date that is three (3) years prior to the date hereof, there have been) no releases of Hazardous Substances by any Transferred Entity or, to the Knowledge of Seller, any
third party at, on, under or from any Business Real Property or any other real property formerly owned, leased or operated by any Transferred Entity in connection with the operation of the Business, and (ii) to the Knowledge of Seller, there
are no other conditions existing currently on any Business Real Property or on any other real property formerly owned, leased or operated by any Transferred Entity, or by Transferred Entities at any third-party locations, in the case of each of
clauses (i) and (ii), that would reasonably be expected to give rise to any Environmental Liability of any Transferred Entity. 
 (c)
Except as would not reasonably be expected to be material to the Business and the Transferred Entities, taken as a whole, and except with respect to any Excluded Liabilities, there is no Action or Order pending or, to the Knowledge of Seller,
threatened in writing against the Transferred Entities relating to any violation, or alleged violation, of any Environmental Law, nor has any Transferred Entity since the date that is three (3) years prior to the date hereof agreed to
indemnify, assume or otherwise take responsibility for any Environmental Liability. 
 (d) Seller has made available to Purchaser true,
correct and complete copies of all material written environmental assessments, reports and studies dated within the three (3) years preceding the date hereof (including those set forth on Section 3.14(d) of the Seller
Disclosure Schedule) to the Knowledge of Seller and in Seller’s possession in relation to any of the Transferred Entities or the Business. 

(e) Notwithstanding any other provision of this Agreement to the contrary, Purchaser acknowledges and agrees that the representations and
warranties contained in Section 3.4, Section 3.9 and this Section 3.14 are the only representations and warranties made by Seller with respect to environmental matters,
and no other provision of this Agreement or the Ancillary Agreements shall be interpreted as containing any representation or warranty with respect thereto. 

  
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 Section 3.15 Material Contracts. 

(a) Section 3.15(a) of the Seller Disclosure Schedule sets forth as of the date of this Agreement a list of the following
Contracts (other than Benefit Plans, purchase orders and invoices) to which any of the Transferred Entities or other applicable Affiliate of Seller is a party or by which any of their respective properties or assets are bound, in each case with
respect to the Business (such Contracts and including purchase orders and invoices whether or not listed on Section 3.15(a) of the Seller Disclosure Schedule, the “Business Material Contracts”): 

(i) each power purchase agreement, sale or exchange agreement or similar bilateral Contract; 

(ii) each electricity interconnection, transmission or marketing agreement; 

(iii) each (A) engineering, procurement and construction agreement, (B) equipment supply or service agreement, (C) warranty
agreement and performance guarantee agreement and (D) operation and maintenance agreement, in each case (x) that obligates any Transferred Entity to make payments in excess of $2,000,000 in any calendar year and (y) other than
any such agreement that has expired or otherwise been terminated in accordance with its terms; 
 (iv) any Contract committing the Business
or any Transferred Entity to any future capital expenditures or capital investments in excess of $1,000,000 during any calendar year or $8,000,000 over the term of such Contract; 

(v) the Real Property Leases; 

(vi) any Contract that by its express terms (A) materially limits or materially impairs the ability of the Transferred Entities to
compete in any line of business or with any Person or in any geographic area or otherwise carry out their business (including through non-compete, exclusivity or “most-favored nation” provisions),
(B) contains any rights of first offer or refusal or similar rights binding on any Transferred Entity or (C) obligates any Transferred Entity to make a minimum amount of purchases of goods or services or obligates any Transferred Entity or the
Business to maintain a minimum amount of inventory, in each case in excess of $2,000,000 during any calendar year or $8,000,000 over the term of such Contract; 

(vii) any Contract evidencing Indebtedness for borrowed money of any Transferred Entity (whether or not incurred, assumed, guaranteed or
secured by any asset of any Transferred Entity), other than any Indebtedness for borrowed money to the extent owing from any of the Transferred Entities to any of the other Transferred Entities; 

(viii) any Contract with a Governmental Entity (other than any such Contract that is entered into in the ordinary course of business and is
not material); 
 (ix) each Contract pursuant to which (A) Seller or any of its Affiliates, including any Transferred Entity, provides
or posts any guarantee, indemnity (other than standard indemnity agreements entered into in the ordinary course of business), performance or surety bond, letter of credit, commitments or other similar credit support arrangement or

  
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obligation relating to the Business or a Transferred Entity (collectively, the “Seller Guarantees”) or (B) any third party (for clarity, not including Seller or any of its
Affiliates) provides or posts any guarantee, indemnity (other than standard indemnity agreements entered into in the ordinary course of business), performance or surety bond, letter of credit, commitments or other similar credit support arrangement
or obligation relating to the Business or a Transferred Entity; 
 (x) each Contract (A) between any member of the Seller Group (other
than the Transferred Entities), on the one hand, and any Transferred Entity, on the other hand and (B) each Contract between any Transferred Entity, on the one hand, and any director or officer of such Transferred Entity (or any Affiliate of
any such director or officer (other than any of the Transferred Entities), on the other hand, other than (for (A) and (B) any such Contract that will be fully performed by, or will not otherwise survive, the Closing); 

(xi) any Contract, other than as set forth in clauses (a)(i) through (xix), which is necessary for the physical delivery of natural gas to the
Facilities; 
 (xii) any Commingled Contract; 

(xiii) any joint venture, partnership, strategic alliance, profit sharing, limited liability company agreement,
co-development Contract or Contract relating to any equity interests or other securities of a Transferred Entity or rights in connection therewith; 

(xiv) any Contract that relates to the acquisition or disposition of any business, Equity Interests or assets of any other Person (whether by
merger, sale of Equity Interests, sale of assets or otherwise) pursuant to which a Transferred Entity has material outstanding obligations; 

(xv) any Contract pursuant to which any Transferred Entity licenses to or from another Person any Intellectual Property (other than
“shrink wrap” and similar generally available commercial end-user licenses to software with an annual cost of no more than $100,000 in the aggregate); 

(xvi) any outstanding futures, swap, collar, put, call, floor, cap, option or other Contract entered into by a Transferred Entity that is
intended to benefit from or reduce or eliminate the risk of fluctuations in interest rates or the price of commodities, including electric power, in any form, including energy, capacity or any ancillary services; 

(xvii) any Contract involving the resolution, compromise or settlement of any actual or threatened claim in an amount greater than $1,000,000
payable by any Transferred Entity, in each case, (A) entered into in during the last three (3) years or (B) that have not been fully performed or that otherwise imposes any continuing nonmonetary obligations on any Transferred Entity;

 (xviii) any Contract that evidences any obligations of any Transferred Entity with respect to the issuance, sale, pledge, voting,
repurchase or redemption of any equity interests of any Transferred Entity other than solely among Transferred Entities; and 

  
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 (xix) any Contract, other than as set forth in the foregoing clauses (i) through (x),
which expressly provides for future payments to or from any Transferred Entity (contingent or otherwise) in excess of $2,500,000 during any calendar year or $8,000,000 over the term of such Contract. 

(b) Except as would not reasonably be expected to be material to the Business and the Transferred Entities, taken as a whole, (i) each
Business Material Contract is a legal, valid and binding obligation of the applicable Transferred Entity or other applicable Affiliate of Seller party thereto, and, to the Knowledge of Seller, each counterparty, and is in full force and effect,
(ii) none of the Transferred Entities or other applicable Affiliate of Seller nor, to the Knowledge of Seller, any other party thereto, is in breach of, or in default under, any such Business Material Contract, and (iii) no event has
occurred that with notice or lapse of time or both would constitute such a breach or default thereunder by any such Transferred Entity or other applicable Affiliate or, to the Knowledge of Seller, any other party thereto. No party to any Business
Material Contract has exercised in writing any termination rights with respect thereto and neither any Transferred Entity nor any other member of the Seller Group have received written notice from any party to any Business Material Contract to the
effect that such party will, or has threatened to, terminate, not renew or materially and adversely change the terms, conditions or provisions (including with respect to payment or pricing) with respect to, any Business Material Contract. A true and
complete copy of each Business Material Contract (or a written summary of the terms of any oral Business Material Contract), other than purchase orders or invoices, has been made available to Purchaser. 

Section 3.16 Intellectual Property. 

(a) Except as would not reasonably be expected to have, individually or in the aggregate, a Business Material Adverse Effect, (i) to the
Knowledge of Seller, the conduct of the Business as currently conducted does not infringe, misappropriate, violate or otherwise conflict with the Intellectual Property of any other Person and (ii) as of the date of this Agreement, there is no
Action pending or, to the Knowledge of Seller, threatened in writing against any Transferred Entity alleging any such infringement, misappropriation, violation or other conflict. To the Knowledge of Seller, each Transferred Entity owns, or has the
licenses or rights to use for its Business, all material Intellectual Property currently used in its Business. 
 (b) Except as would not
reasonably be expected to be material to the Business and the Transferred Entities, taken as a whole, the computers, computer software, hardware, servers, workstations, routers, hubs, switches, data communications lines, firmware, networks and all
other information technology equipment owned, leased, licensed or made available under arrangement with Seller or a Seller Affiliate by the Transferred Entities or used in the Business (collectively, “IT Assets”) are adequate and
sufficient, and in good working condition to perform all information technology operations necessary for the conduct of the Business as currently conducted. To the Knowledge of the Seller, the material IT Assets do not contain any viruses, worms,
Trojan horses, time bombs, or similar contaminants or code that would enable or assist any Person to, without authorization, disrupt, erase, destruct, or impair any such systems or technology. The Transferred Entities have in place commercially
reasonable measures to protect the confidentiality, integrity and security of the IT Assets and all information stored or contained therein or transmitted thereby against unauthorized use, access, interruption, modification or

  
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corruption, and commercially reasonable data backup, data storage, system redundancy and disaster avoidance and recovery procedures. The Transferred Entities and Seller have complied in all
material respects with all applicable information privacy and security Laws and any contractual obligations relating to the protection of personal data. To the Knowledge of Seller, since the date that is four (4) years prior to the date hereof,
no security breach with respect to any IT Assets has resulted in disclosure, modification, destruction or loss of control with respect to any material confidential information of the Business. 

(c) Notwithstanding any other provision of this Agreement, Purchaser acknowledges and agrees that the representations and warranties contained
in this Section 3.16 are the only representations and warranties made by Seller with respect to Intellectual Property, and no other provision of this Agreement or the Ancillary Agreements shall be interpreted as containing
any representation or warranty with respect thereto. 
 Section 3.17 Sufficiency and Condition of Assets. At the Closing,
(a) taking into account and giving effect to the Ancillary Agreements (including those services that are expressly excluded thereunder), (b) after giving effect to the Seller Restructuring Transactions and the Bifurcation, and (c) assuming
all consents, authorizations, assignments, amendments and Permits referred to in Section 3.4 of the Seller Disclosure Schedule (and the termination of the HSR Act) have been obtained or granted, (i) the Transferred Entities shall
own or have the right to use (including by means of ownership of rights pursuant to licenses or other Contracts) all of the assets, properties (including real property) and rights (excluding the Excluded Assets and any Contracts with respect to
Overhead and Shared Services), free and clear of all Liens (other than Permitted Liens) necessary to conduct the Business in substantially the same manner in all material respects as conducted as of immediately prior to the date hereof and as of the
Closing; and (ii) the Transferred Entities conduct no business other than the Business. The Facilities are in good working order and condition, ordinary wear and tear excepted, except where the failure to be in good working order and condition
would not reasonably be expected to be material to the Business and the Transferred Entities, taken as a whole. 
 Section 3.18
Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission from Seller or any of its Affiliates in connection with the transactions contemplated by this Agreement and the Ancillary
Agreements for which Purchaser or any of its Affiliates (including, following the Closing, the Transferred Entities) would have any liability. 

Section 3.19 Insurance. Section 3.19 of the Seller Disclosure Schedule sets forth a list of all material
external insurance policies (e.g. not self or captive insurance arrangements) maintained, owned or held by any member of the Seller Group for the benefit of the Business (collectively, the “Policies”). All such Policies are
in full force and effect, all premiums with respect thereto covering all periods up to and including the Closing Date have been, or will prior to the Closing Date be, paid. The Policies are comprised of the type and in the amounts (a) required
to be maintained under Applicable Law and (b) customarily carried by businesses engaged in similar business activities in the same industry as the Business. No written notice of cancellation, non-renewal
or termination has been received by any member of the Seller Group (including any Transferred Entity) with respect to the Policies that have not been replaced on substantially similar terms prior to the date of such cancellation or termination. No
member of 

  
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the Seller Group is in material default with respect to its obligations under any Policy. All Actions covered by any Policy have been properly reported to and accepted (and no coverage has been
denied by) the applicable insurer and no Transferred Entity has incurred any material loss, liability, assessed interest, penalty, damage, Tax, fine, charge or expense covered by any such Policy that is still pending and for which a claim has not
been properly asserted. The limits of the Policies have not been materially eroded or exhausted. 
 Section 3.20 Affiliate
Arrangements. Except as set forth on Section 3.15(a)(x) of the Seller Disclosure Schedule, in connection with the Bifurcation or as disclosed pursuant to the NY/CT EPA, neither Seller nor any of its Affiliates (other
than the Transferred Entities and the Transferred Entities (as defined in the NY/CT ETA) and none of their respective officers, directors, managers, employees or equityholders is party to any Contract with any Transferred Entity or any of their
respective Affiliates (each of the foregoing, an “Affiliate Arrangement”) other than any Contract that will be fully performed by, or will not otherwise survive, the Closing. 

Section 3.21 No Other Representations or Warranties; No Reliance. Seller (on behalf of itself and its Affiliates and
Representatives) acknowledges and agrees that except for the representations and warranties contained in Article IV and in the Equity Commitment Letter and Limited Guaranty, none of Purchaser, any of its Affiliates or any other Person on
behalf of Purchaser or any such Affiliate has made or makes, and Seller and its Affiliates and Representatives have not relied upon, any representation or warranty, whether express or implied, with respect to Purchaser or any of its Affiliates, or
their respective businesses, affairs, assets, liabilities, financial condition, results of operations, future operating or financial results, estimates, projections, forecasts, plans or prospects (including the reasonableness of the assumptions
underlying such estimates, projections, forecasts, plans or prospects) or with respect to the accuracy or completeness of any other information provided or made available to Seller or any of its Affiliates or Representatives by or on behalf of
Purchaser or any of its Affiliates. 
 Article IV 

REPRESENTATIONS AND WARRANTIES 
 OF
PURCHASER 
 Except as disclosed in the disclosure schedule delivered to Seller prior to the execution of this Agreement (the “Purchaser Disclosure
Schedule”), it being agreed that disclosure of any item in any section or subsection of the Purchaser Disclosure Schedule shall also be deemed disclosure with respect to any other section or subsection of this Agreement to which the
relevance of such item is reasonably apparent on its face, Purchaser hereby represents and warrants to Seller as of the date hereof and as of the Closing Date as follows: 

Section 4.1 Organization and Qualification. Purchaser and each Affiliate of Purchaser that is a party to any Ancillary Agreement
is a limited liability company or other legal entity duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization and Purchaser and each Affiliate of Purchaser that is a party to any Ancillary Agreement
has all requisite limited liability company or other organizational power and authority to carry on its businesses as now being conducted and is qualified to do business and is in good standing as a foreign limited liability company or other legal
entity in each jurisdiction where the conduct of its business requires such qualification, in each case except as would not reasonably be expected to have, individually or in the aggregate, a Purchaser Material Adverse Effect. 

  
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 Section 4.2 Authority Relative to this Agreement. Purchaser and each Affiliate
of Purchaser that is a party to any Ancillary Agreement has all necessary limited liability company or similar power and authority, and has taken all limited liability company or similar action necessary, to execute, deliver and perform this
Agreement and the Ancillary Agreements and to consummate the transactions contemplated by this Agreement and the Ancillary Agreements in accordance with the terms hereof and thereof. No vote or other approval of the equity holders of Purchaser or
any of its Affiliates is required in connection with the execution, delivery or performance of this Agreement and the Ancillary Agreements or to consummate the transactions contemplated by this Agreement and the Ancillary Agreements in accordance
with the terms hereof and thereof, whether by reason of applicable Law, the organizational documents of Purchaser or its Affiliates, the rules or requirements of any securities exchange, or otherwise. This Agreement has been duly and validly
executed and delivered by Purchaser, and, assuming the due authorization, execution and delivery of this Agreement by Seller, shall constitute, and the Ancillary Agreements when executed and delivered by Purchaser or its applicable Affiliates, and,
assuming the due authorization, execution and delivery of the Ancillary Agreements by Seller or its applicable Affiliate, shall constitute, a valid, legal and binding agreement of Purchaser and its applicable Affiliates, enforceable against
Purchaser and such Affiliates in accordance with its terms, subject to the Enforceability Exceptions. 
 Section 4.3 Consents and
Approvals; No Violations. Except as set forth on Section 4.3 of the Purchaser Disclosure Schedule, no filing with or notice to, and no permit, authorization, registration, consent or approval of, any Governmental
Entity is required on the part of Purchaser or any of its Affiliates for the execution, delivery and performance by Purchaser or its Affiliates, as applicable, of this Agreement or the Ancillary Agreements or the consummation by Purchaser or its
Affiliates, as applicable, of the transactions contemplated hereby or thereby, except (a) compliance with any applicable requirements of the HSR Act, (b) compliance with any Permits relating to the Business (including any transfer
requirements), or (c) any such filings, notices, permits, authorizations, registrations, consents or approvals, the failure of which to make or obtain would not reasonably be expected to have, individually or in the aggregate, a Purchaser
Material Adverse Effect. Assuming compliance with the items described in clauses (a) through (c) of the preceding sentence, neither the execution, delivery and performance of this Agreement by Purchaser or the Ancillary Agreements by Purchaser
or any applicable Affiliates thereof, nor the consummation by Purchaser or any applicable Affiliate thereof, of the transactions contemplated hereby or thereby, shall (i) conflict with or result in any breach, violation or infringement of any
provision of the respective governing documents of Purchaser or any of its Affiliates, (ii) result in a breach, violation or infringement of, or constitute (with or without due notice or lapse of time or both) a default (or give rise to the
creation of any Lien, except for Permitted Liens, or any right of termination, amendment, cancellation or acceleration) under, any of the terms, conditions or provisions of any Contract to which Purchaser or any of its Affiliates is a party or any
of their respective properties or assets are bound, or (iii) violate any Law applicable to Purchaser or any of its Affiliates or any of their respective properties or assets, except, in the case of clause (ii) or clause (iii), as would not
reasonably be expected to have, individually or in the aggregate, a Purchaser Material Adverse Effect. 

  
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 Section 4.4 Litigation. As of the date of this Agreement, (a) there is no
Action pending or, to the Knowledge of Purchaser, threatened in writing against Purchaser or any of its Affiliates except as would not reasonably be expected to have, individually or in the aggregate, a Purchaser Material Adverse Effect, and
(b) neither Purchaser nor any of its Affiliates is subject to any outstanding Order, except as would not reasonably be expected to have, individually or in the aggregate, a Purchaser Material Adverse Effect. 

Section 4.5 Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission
from Purchaser or any of its Affiliates in connection with the transactions contemplated by this Agreement and the Ancillary Agreements for which Seller or any of its Affiliates would have any liability. 

Section 4.6 Financing. 

(a) Purchaser is a party to and has accepted a fully executed commitment letter, dated as of August 12, 2021 (together with all exhibits
and schedules thereto, the (“Debt Commitment Letter”) from the lenders party thereto (collectively, the “Lenders”) pursuant to which the Lenders have agreed, subject to the terms and conditions thereof, to
provide debt financing in the amounts set forth therein. The debt financing committed pursuant to the Debt Commitment Letter is collectively referred to as the “Debt Financing.” 

(b) Purchaser is a party to and has accepted a fully executed equity commitment letter, dated as of the date of this Agreement (together with
all exhibits and schedules thereto, the “Equity Commitment Letter”), by and between ArcLight Energy Partners Fund VII, L.P. (the “Equity Investor”) and Purchaser, pursuant to which, upon the terms and subject to the
conditions set forth therein, the Equity Investors have agreed to invest in Purchaser the amount set forth therein. The equity financing committed pursuant to the Equity Commitment Letter is referred to as the “Equity Financing.”
The Equity Financing and the Debt Financing are collectively referred to as the “Financing.” 
 (c) Purchaser has
delivered to Seller true, complete and correct copies of the executed Equity Commitment Letter and executed Debt Commitment Letter and any fee letters related thereto, subject, in the case of such fee letters, to redaction solely of fee and other
economic provisions that are customarily redacted in connection with transactions of this type and that could not in any event affect the conditionality, enforceability, availability or amount of the Debt Financing. The Equity Commitment Letter
provides that Seller is an express third party beneficiary of the Equity Commitment Letter to the extent provided therein, and is entitled to enforce directly, the Equity Commitment Letter, to the extent provided herein and therein. 

(d) Except as expressly set forth in the Equity Commitment Letter and the Debt Commitment Letter, there are no conditions precedent to the
obligations of the Lenders and the Equity Investors to provide the Equity Financing or the Debt Financing or any contingencies that would permit the Lenders or the Equity Investors to reduce the total amount of the Debt Financing or the Equity
Financing, including any condition or other contingency relating to the 

  
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amount or availability of the Debt Financing or the Equity Financing pursuant to any “flex” provision. Purchaser does not have any reason to believe that it shall be unable to satisfy
on a timely basis all terms and conditions to be satisfied by it in the Equity Commitment Letter or the Debt Commitment Letter on or prior to the Closing Date, nor does Purchaser have knowledge that any Lender or Equity Investor shall not perform
its obligations thereunder. There are no side letters, understandings or other agreements, contracts or arrangements of any kind relating to the Equity Commitment Letter or the Debt Commitment Letter that could affect the availability,
conditionality, enforceability, termination or amount of the Equity Financing or the Debt Financing. 
 (e) The Financing, when funded in
accordance with the Equity Commitment Letter and the Debt Commitment Letter and giving effect to any “flex” provision in or related to the Debt Commitment Letter (including with respect to fees and original issue discount), shall provide
Purchaser with cash proceeds on the Closing Date sufficient for the satisfaction of all of Purchaser’s obligations under this Agreement, the Ancillary Agreements, the Equity Commitment Letter and the Debt Commitment Letter, including the
payment of the Closing Purchase Price, and any fees and expenses of or payable by Purchaser, Purchaser’s Affiliates or the Transferred Entities, and for any repayment or refinancing of any outstanding indebtedness of Purchaser and/or the
Transferred Entities contemplated by, or required in connection with the transactions described in, this Agreement, the Ancillary Agreements, the Equity Commitment Letter or the Debt Commitment Letter (the “Financing
Amounts”). 
 (f) The Equity Commitment Letter and the Debt Commitment Letter constitute the legal, valid, binding and
enforceable obligations of Purchaser and, to the Knowledge of Purchaser, all the other parties thereto and are in full force and effect. As of the date hereof, no event has occurred which (with or without notice, lapse of time or both) could
constitute a default, breach or failure to satisfy a condition by Purchaser or any other party thereto under the terms and conditions of the Equity Commitment Letter or the Debt Commitment Letter, and Purchaser does not have any reason to believe
that any of the conditions to the Debt Financing will not be satisfied on a timely basis or that the Financing will not be available in full on the date of the Closing. As of the date hereof, Purchaser has paid (or caused to be paid) in full any and
all commitment fees or other fees required to be paid on or before the date of this Agreement pursuant to the terms of the Debt Commitment Letter or any related fee letter and shall pay in full on or before the Closing Date any such amounts due on
or before the Closing Date. The Equity Commitment Letter and the Debt Commitment Letter have not been modified, amended or altered and none of the respective commitments thereunder has been terminated, reduced, withdrawn or rescinded in any respect,
and, to the Knowledge of Purchaser, no termination, reduction, withdrawal, modification, amendment, alteration or rescission thereof is contemplated. 

(g) In no event shall the receipt or availability of any funds or financing (including, for the avoidance of doubt, the Financing) by Purchaser
or any of its Affiliates or any other financing or other transactions be a condition to any of Purchaser’s obligations under this Agreement. 

  
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 Section 4.7 Limited Guaranty. The Equity Investors have delivered to Seller a
true, complete and correct copy of the executed Limited Guaranty. The Limited Guaranty is in full force and effect and constitutes the legal, valid, binding and enforceable obligation of the Equity Investors in favor of Seller, enforceable by Seller
in accordance with its terms. The Equity Investors are not in default or breach under the terms and conditions of the Limited Guaranty and no event has occurred that, with or without notice, lapse of time or both, would or would reasonably be
expected to constitute a default or breach or a failure to satisfy a condition under the terms and conditions of the Limited Guaranty. 

Section 4.8 Solvency. As of the Closing, after giving effect to any indebtedness being incurred on such date in connection
herewith, and assuming (i) accuracy, in all material respects, of the representations and warranties set forth in Article III, (ii) the performance by Seller of its obligations under this Agreement in all material respects, and (iii) the
satisfaction of the conditions to Closing set forth in Section 8.1 and Section 8.2 (a) each of Purchaser and the Transferred Entities shall be able to pay their indebtedness and Liabilities (whether direct, subordinated, contingent or
otherwise), as such indebtedness and Liabilities become absolute and matured, (b) the then present fair saleable value of the assets of each of Purchaser and the Transferred Entities, on a consolidated basis, shall exceed the amount that shall be
required to pay their probable Liabilities (including the probable amount of all contingent Liabilities) and indebtedness as such Liabilities and indebtedness become absolute or matured, (c) the assets of each of Purchaser and the Transferred
Entities, at a fair valuation, shall exceed their respective probable Liabilities (including the probable amount of all contingent Liabilities) and indebtedness and (d) each of Purchaser and the Transferred Entities shall not have unreasonably
small capital to carry on their businesses as presently conducted or as proposed to be conducted. The transactions contemplated by this Agreement are not being made and no obligation is being incurred by Purchaser or any of its Affiliates in
connection with such transactions with the intent to hinder, delay or defraud either present or future creditors of Seller or any of its Affiliates. 

Section 4.9 Investment Decision. Purchaser is acquiring the Units for investment and not with a view toward or for the sale
in connection with any distribution thereof, or with any present intention of distributing or selling such Units. Purchaser acknowledges that the Units have not been registered under the Securities Act or any other federal, state, foreign or local
securities Law, and agrees that such Units may not be sold, transferred, offered for sale, pledged, distributed, hypothecated or otherwise disposed of without registration under the Securities Act, except pursuant to an exemption from such
registration available under the Securities Act, and in compliance with any other federal, state, foreign or local securities Law, in each case, to the extent applicable. 

Section 4.10 Independent Investigation. Purchaser and the Equity Investors have conducted their own independent investigation,
review and analysis of the business, affairs, assets, liabilities, financial condition, results of operations and prospects of the Transferred Entities and the Business, which investigation, review and analysis was done by Purchaser and its
Representatives. In entering into this Agreement, Purchaser (on behalf of itself, the Equity Investors and their respective Affiliates and Representatives) acknowledges that Purchaser, the Equity Investors and their respective Affiliates and
Representatives have relied solely upon the aforementioned investigation, review and analysis and not on any factual representations or opinions of Seller, the Transferred Entities or their respective Affiliates or Representatives (except the
representations and warranties of Seller expressly set forth in Article III or the 

  
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certificate delivered pursuant to Section 8.2(c)). Purchaser (on behalf of itself, the Equity Investors and their respective Affiliates and Representatives) further
acknowledges and agrees that none of Seller, the Transferred Entities, their respective Affiliates or Representatives or any other Person shall have or be subject to any Liability to Purchaser, the Equity Investors, their respective Affiliates or
Representatives or any other Person relating to any information provided or made available to the foregoing Persons in connection with the transactions contemplated by this Agreement and the Ancillary Agreements, including any information, documents
or materials made available, whether orally or in writing, during any site visit or in any data room, any management presentations (formal or informal), functional “break-out” discussions, responses
to questions or in any other form in connection with the transactions contemplated by this Agreement and the Ancillary Agreements. Purchaser (on behalf of itself, the Equity Investors and their respective Affiliates and Representatives) further
acknowledges that no Representative of Seller, the Transferred Entities or their respective Affiliates has any authority, express or implied, to make any representations, warranties or agreements not specifically set forth in this Agreement (or the
certificate delivered pursuant to Section 8.2(c)) and subject to the limited remedies herein provided. Purchaser (on behalf of itself, the Equity Investors and their respective Affiliates and Representatives) further
acknowledges that, should the Closing occur, Purchaser shall acquire the Transferred Entities and the Business without any representation or warranty as to merchantability or fitness thereof for any particular purpose, in an “as is”
condition and on a “where is” basis, except as otherwise expressly set forth in this Agreement. The parties acknowledge and agree that nothing in this Section 4.10 shall affect or limit any claim for Fraud. 

Section 4.11 Investments. Except as set forth on Section 4.11 of the Purchaser Disclosure Schedule, none
of Purchaser or any of its Affiliates, or any entities that would be deemed to be affiliates of Purchaser pursuant to the HSR Act or by the rules and regulations of any other Regulatory Authority whose approval is required to complete the Closing
pursuant to Sections 8.1 or 8.2 has an interest greater than five percent (5%) in a Person that owns, controls or operates natural gas and/or oil-fired power plants. There is no fact relating to
any such Person or entity that would or would reasonably be expected to (a) prevent or prohibit the obtaining of, impose any material delay in the obtaining of or increase the risk of not obtaining any Required Approvals or (b) have,
individually or in the aggregate, a Purchaser Material Adverse Effect. 
 Section 4.12 Certain Acknowledgments. Purchaser
understands, acknowledges and agrees that (i) Seller and certain other members of the Seller Group are in the business of owning and operating nuclear generating facilities and supplying power generated therefrom, and (ii) none of Seller,
any other member of the Seller Group or any of their respective Affiliates makes any representation, warranty, covenant or agreement with respect to the continued ownership, operation or level of output of such business or facilities, any
proceedings with or commitments to Governmental Entities relating to any such business or facilities (including in any such proceedings related to zero emission certificates involving the New Jersey Board of Public Utilities or otherwise), any other
actions taken (or not taken) with respect to any such business or facilities, or any change, effect, impact or consequence of any of the foregoing on the Business, Purchaser or any of its Affiliates or any other Person, including in relation to the
price or quantity of power in any market, regional or geographic area, and there shall be no obligation or Liability on the part of Seller, any other member of the Seller Group or any of their respective

  
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Affiliates to Purchaser or any of its Affiliates (including the Transferred Entities following the Closing) with respect to any such matters or the impact of any such matters on the Business or
the Purchaser or any of its Affiliates. Notwithstanding the foregoing, nothing in this Section 4.12 shall be construed as modifying, waiving or affecting any of the provisions, covenants, obligations or rights set forth in
Section 5.4. 
 Section 4.13 No Other Representations or Warranties; No Reliance. Purchaser (on behalf of
itself, the Equity Investors and their respective Affiliates and Representatives) acknowledges and agrees that except for the representations and warranties of Seller contained in Article III (and the certificate delivered pursuant to
Section 8.2(c)), none of Seller, any of its Affiliates or any other Person on behalf of Seller or any such Affiliate has made or makes, and Purchaser, the Equity Investors and their respective Affiliates and Representatives
have not relied upon, any representation or warranty, whether express or implied, with respect to the Business, Seller, the Transferred Entities or any of their Affiliates, or their respective businesses, affairs, assets, liabilities, financial
condition, results of operations, future operating or financial results, estimates, projections, forecasts, plans or prospects (including the reasonableness of the assumptions underlying such estimates, projections, forecasts, plans or prospects) or
with respect to the accuracy or completeness of any other information provided or made available to Purchaser, the Equity Investors or their respective Affiliates or Representatives by or on behalf of Seller or any of its Affiliates. Purchaser (on
behalf of itself, the Equity Investors and their respective Affiliates and Representatives) further acknowledges and agrees that none of Seller, any of its Affiliates or any other Person on behalf of Seller or any such Affiliate has made or makes,
and Purchaser, the Equity Investors and their respective Affiliates and Representatives have not relied upon, any representation or warranty, whether express or implied, with respect to any projections, forecasts or estimates made available to
Purchaser, the Equity Investors or their respective Affiliates or Representatives of future revenues, expenses, generating capacity, results of operations, cash flows, financial condition (or any component of any of the foregoing) of Seller or any
of its Affiliates or the Business. Purchaser (on behalf of itself, the Equity Investors and their respective Affiliates and Representatives) further acknowledges and agrees that none of Seller, any of its Affiliates or any other Person on behalf of
Seller or any such Affiliate has made or makes, and Purchaser, the Equity Investors and their respective Affiliates and Representatives have not relied upon, any representation or warranty, whether express or implied, with respect to the Excluded
Assets or the Excluded Liabilities. 
 Article V 

ADDITIONAL AGREEMENTS 

Section 5.1 Access to Books and Records. 

(a) After the date of this Agreement until the earlier of the Closing or the valid termination of this Agreement, and subject to the
requirements of applicable Laws, Seller shall, and shall cause the Transferred Entities to, afford to Representatives of Purchaser reasonable access, upon reasonable request and notice and solely for purposes of integration planning and in
furtherance of the transactions contemplated by this Agreement, to the Books and Records of the Business during normal business hours consistent with applicable Law and in accordance with the procedures reasonably established by Seller to prepare
the Business for 

  
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transition to Purchaser at the Closing and Purchaser’s acceptance of the Business at the Closing; provided, that neither Seller nor any Transferred Entity shall be required to
(i) make available Transferred Business Employee personnel files until after the Closing Date (it being understood that (A) any personnel files that do not relate to Transferred Business Employees shall not be transferred to Purchaser and
(B) Seller shall only be obligated to take all reasonable efforts to make available Business Employee personnel files on or after the Closing Date) or (ii) make available medical records, workers’ compensation records, the results of
any drug testing or other sensitive or personal information if doing so could reasonably be expected to result in a violation of applicable Law. Purchaser shall indemnify and hold Seller and its Affiliates harmless against any Liabilities arising
out of or relating to any transfer requested by or on behalf of Purchaser or its Affiliates of any such personnel files, other than to the extent resulting solely from actions of Seller that are not taken at the request of Purchaser. 

(b) Purchaser agrees that any access granted under Section 5.1(a) shall not interfere unreasonably with the operation
of the Business or any other business of Seller or its Affiliates. Neither Purchaser nor any of its Affiliates or Representatives shall communicate with any employees of Seller or any of its Affiliates, other than communications relating to the
terms of post-Closing employment in coordination with Seller, without the prior written consent of Seller, which consent shall not be unreasonably withheld. Notwithstanding anything to the contrary in this Agreement, neither Seller nor any of its
Affiliates shall be required to provide access to or disclose information if, upon the advice of counsel, such access or disclosure would jeopardize the attorney-client or other applicable legal privilege or protection of such party or contravene
any Laws, contracts or obligation of confidentiality, or if such information concerns the valuation of the Business or the Sale Process. 

(c) At and after the Closing, Purchaser shall, and shall cause its Affiliates to, afford Seller and its Affiliates and Representatives, during
normal business hours, upon reasonable request and notice, access to the books, records, properties and employees of each Transferred Entity and the Business (including making and retaining any copies thereof at Seller’s sole cost and expense)
to the extent that such access (i) may be reasonably requested for reasonable business purposes, including in connection with financial statements, Taxes, any potential Action or investigation or regulatory matter by or before a Governmental
Entity (including in connection with the matters covered under Section 5.11), SEC or other Governmental Entity reporting obligations and (ii) does not unreasonably interfere with the normal operations of the Business
and any Excluded Asset, Excluded Liability or Environmental Liability for which Seller is or may be responsible; provided, that nothing in this Agreement shall limit any rights of discovery of Seller or its Affiliates. Purchaser, on the one
hand, and Seller, on the other hand, shall promptly reimburse the other for such other’s reasonable and documented out-of-pocket expenses associated with requests
made by such first party under this Section 5.1(c), but no other charges shall be payable by the requesting party to the other party in connection with such requests. 

(d) Purchaser agrees to hold, and to cause the Transferred Entities to hold, all the Books and Records of each Transferred Entity or the
Business existing on the Closing Date and not to destroy or dispose of any such Books and Records for a period of ten (10) years from the Closing Date or such longer period of time as may be required by Law. 

  
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 (e) Notwithstanding anything to the contrary herein, to the extent any party is obligated to
provide another party physical access to books, records, properties, or employees pursuant to this Section 5.1 or otherwise, such party may instead provide such access by electronic means if physical access is not
reasonably feasible or would not be permitted under applicable Law (including any COVID-19 Measures). 

(f) Notwithstanding anything to the contrary herein, prior to the Closing, Purchaser and its Representatives shall not conduct any Phase II
Environmental Site Assessment or any sampling of soil, sediment, surface water, ground water or building material at, on, under or within any facility or property of Seller or any of its Affiliates, including the Business Real Property. 

Section 5.2 Confidentiality. 

(a) The parties expressly agree that, notwithstanding any provision of the Confidentiality Agreement to the contrary, the terms of the
Confidentiality Agreement are incorporated into this Agreement by reference, apply as if Purchaser were a direct party to the Confidentiality Agreement and shall continue in full force and effect until the Closing. The parties expressly agree that,
notwithstanding any provision of the Confidentiality Agreement to the contrary, including with respect to termination thereof, if, for any reason, the Sale is not consummated, the Confidentiality Agreement shall continue in full force and effect for
a period of twenty-four (24) months following termination of this Agreement and otherwise in accordance with its terms, and this Agreement shall constitute the requisite consent of the parties to amend the Confidentiality Agreement accordingly.

 (b) For a period of twenty-four (24) months from the Closing Date, Seller shall, and shall cause its Affiliates to, hold in
confidence any nonpublic information relating to Purchaser and any nonpublic information that is proprietary or competitively sensitive to the extent primarily relating to the Business (collectively, “Confidential Business
Information”); provided, that the foregoing restriction shall not apply to information (i) that becomes available on a non-confidential basis to Seller or any of its Affiliates from and
after the Closing from a third party source that is not known by Seller or its applicable Affiliates to be under any obligations of confidentiality to Purchaser or any of its Affiliates with respect to such information, (ii) that is in the
public domain or enters into the public domain through no fault of Seller or any of its Affiliates, (iii) to the extent used by Seller or any of its Affiliates in order to comply with or enforce its rights under the terms of this Agreement or
the Ancillary Agreements or any other Contract between Seller or any of its Affiliates, on the one hand, and Purchaser or any of its Affiliates, on the other hand, (iv) that is, following the Closing, independently derived by Seller or any of
its Affiliates without use of such Confidential Business Information or (v) subject to the immediately following sentence, that Seller or any of its Affiliates are required by Law or required or requested pursuant to legal or regulatory process
to disclose; provided, further, that Seller may disclose such Confidential Business Information on a confidential basis to its Representatives. In the event that Seller or any of its Affiliates are required by Law or required or
requested pursuant to legal or regulatory process to disclose such information, Seller shall reasonably promptly notify Purchaser in writing unless not permitted by Law or such legal or regulatory process to so notify, which notification shall
include the nature of such legal or regulatory requirement or request, as applicable, and the extent of the required or requested 

  
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disclosure, and shall use commercially reasonable efforts to cooperate with Purchaser, at Purchaser’s expense, to preserve to the extent reasonably practicable the confidentiality of such
information. Nothing in this Agreement shall prohibit any retention of copies of records or any disclosure in connection with the preparation and filing of financial statements or Tax Returns of Seller or any of its Affiliates. 

Section 5.3 Required Actions. 

(a) Purchaser and Seller shall, and shall cause their respective Affiliates to, take all actions, and do, or cause to be done, all things
necessary, proper or advisable under any applicable Laws to consummate and make effective in the most expeditious manner possible the Sale and the other transactions contemplated by this Agreement, including (i) the preparation and filing of
all forms, registrations, notifications and notices required to be filed to consummate the Sale and the other transactions contemplated by this Agreement, (ii) taking all actions necessary to obtain (and cooperating with each other in
obtaining) any consent, clearance, expiration or termination of a waiting period, authorization, declaratory ruling, Order or approval of, or any exemption by, any Governmental Entity (which actions shall include furnishing all information required
under the HSR Act or any other applicable Competition Laws or under the FPA or with respect to any other Required Approval) required to be obtained or made by Purchaser or Seller or any of their respective Affiliates in connection with the Sale and
the other transactions contemplated by this Agreement, and (iii) the execution and delivery of any additional instruments necessary to consummate the Sale and the other transactions contemplated by this Agreement and to fully carry out the
purposes of this Agreement. Additionally, each of Seller and Purchaser shall, and shall cause their respective Affiliates to, take, or cause to be taken, all actions, and do, or cause to be done, all things necessary, proper or advisable to fulfill
all conditions set forth in Article VIII and not take any action after the date of this Agreement that would reasonably be expected to delay the obtaining of, or result in not obtaining, any consent, clearance, expiration or termination of a
waiting period, authorization, declaratory ruling, Order or approval of, or any exemption by, any Governmental Entity necessary to be obtained at or prior to the Closing or would reasonably be expected to result in the failure to satisfy, or any
delay in satisfying, any condition set forth in Article VIII. Without limiting the foregoing, with the exception of actions or circumstances under FERC Docket No. EC21-74, Purchaser shall not, and shall
cause its Affiliates not to, acquire or agree to acquire, by merger, consolidation, stock or asset purchase or otherwise, any business or corporation, partnership or other business organization or division thereof, or pursue or engage in any merger,
business combination, consolidation, acquisition, sale or similar transaction with any other Person, or agree to, solicit, offer, propose or recommend any of the foregoing, to the extent it would reasonably be expected to delay the obtaining of, or
result in not obtaining, any consent, clearance, expiration or termination of a waiting period, authorization, declaratory ruling, Order or approval of, or any exemption by, any Governmental Entity necessary to be obtained at or prior to the Closing
or would reasonably be expected to result in the failure to satisfy, or any delay in satisfying, any condition set forth in Article VIII. 

  
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 (b) Prior to the Closing, to the extent not prohibited by applicable Law, Purchaser and
Seller shall each keep the other apprised of the status of matters relating to the completion of the Sale and the other transactions contemplated by this Agreement and work cooperatively in connection with obtaining all required consents,
clearances, expirations or terminations of waiting periods, authorizations, Orders or approvals of, or any exemptions by, any Governmental Entity for the Sale and the other transactions contemplated by this Agreement. In that regard, prior to the
Closing, subject to the Confidentiality Agreement and Section 5.2, to the extent not prohibited by applicable Law, each party shall promptly consult with the other party to this Agreement to provide any necessary
information with respect to (and, in the case of correspondence, provide the other party (or their counsel) copies of) all filings made by such party with any Governmental Entity or any other information supplied by such party to, or correspondence
with, a Governmental Entity in connection with this Agreement, the Sale and the other transactions contemplated by this Agreement. Subject to the Confidentiality Agreement and Section 5.2, to the extent not prohibited by
applicable Law, each party to this Agreement shall promptly inform the other party to this Agreement, and if in writing, furnish the other party with copies of (or, in the case of oral communications, advise the other party of) any communication
from any Governmental Entity regarding the Sale or the other transactions contemplated by this Agreement, and permit the other party to review and discuss in advance, and consider in good faith the views of the other party in connection with, any
proposed written or oral communication or submission with or to any such Governmental Entity regarding the Sale or the other transactions contemplated by this Agreement. If any party to this Agreement or any Representative of such party receives a
request for additional information or documentary material from any Governmental Entity with respect to the Sale or the other transactions contemplated by this Agreement, then such party shall make, or cause to be made, promptly and after
consultation with the other party to this Agreement, an appropriate response in compliance with such request. Each party shall not participate in any meeting with any Governmental Entity in connection with this Agreement or the Sale, or with any
other Person in connection with any Action by a private party relating to the HSR Act or any other applicable Competition Laws or the FPA or any other Required Approvals in connection with this Agreement or the Sale, or make oral submissions at
meetings or in telephone or other conversations, unless it consults with the other party in advance and, to the extent not prohibited by such Governmental Entity, gives the other party the opportunity to attend and participate thereat. Subject to
the Confidentiality Agreement and Section 5.2, to the extent not prohibited by applicable Law, each party shall furnish the other party with copies of all correspondence, filings, submissions and communications (and
memoranda setting forth the substance thereof) between it and any such Governmental Entity or other such Person with respect to this Agreement and the Sale or the other transactions contemplated by this Agreement, and furnish the other party with
such necessary information and reasonable assistance as the other party may reasonably request in connection with its preparation of necessary filings or submissions of information to any such Governmental Entity or other such Person regarding the
Sale or the other transactions contemplated by this Agreement. Purchaser and Seller may, as each deems advisable and necessary, reasonably designate any competitively sensitive material provided to the other party under this Agreement as
“outside counsel/corporate in-house antitrust counsel only.” Such designated materials provided by Purchaser to Seller or by Seller to Purchaser pursuant to this
Section 5.3, and the information contained therein, shall be given only to the outside legal counsel and corporate in-house antitrust counsel of the recipient and shall not be
disclosed by such outside counsel and corporate in-house antitrust counsel to employees (other than corporate in-house antitrust counsel), officers or directors of the
recipient unless express permission is obtained in advance from the source of the materials (Purchaser or Seller, as the case may be) or its legal counsel; it being understood that materials provided pursuant to this Agreement may be redacted
(i) to remove references concerning the valuation of the Business or the Sale Process, (ii) as necessary to comply with contractual arrangements or applicable Law and (iii) as necessary to address reasonable privilege concerns. 

  
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 (c) Purchaser and Seller shall file or cause to be filed (i) any required notifications
under the HSR Act as promptly as practicable, but in any event no later than five (5) Business Days after the date of this Agreement, (ii) an application under Section 203 of the FPA as promptly as practicable, but in any event no
later than fifteen (15) Business Days after the date of this Agreement, and (iii) except as otherwise provided herein, any filings and/or notifications required in respect of any other Required Approvals as promptly as practicable after
the date of this Agreement. Seller shall file or cause to be filed any required filings with FERC to modify or re-approve the existing rate schedule for compensation for Reactive Supply and Voltage Control
from Generation Sources Service (and shall use reasonable efforts, in good faith coordination with Purchaser pursuant to this Section 5.3(c), to make such filing no later than November 8, 2021, and in any event shall
make such filing no later than November 15, 2021) (the “Reactive Update”). Within fifteen (15) days after the date of this Agreement, and every fifteen (15) days thereafter, Seller shall meet with Purchaser and its
advisors and consultants to provide an update on the status of the preparation of the Reactive Update. During such meeting, Seller shall provide Purchaser and its advisors and consultants with copies of any existing drafts of the Reactive Update and
any existing draft work papers associated with the Reactive Update. Seller shall include and incorporate, to the maximum extent possible, any edits and comments to such drafts provided by Purchaser or its advisors and consultants. Seller shall
include Purchaser and its advisors and consultants in any communications with FERC regarding the Reactive Update and shall invite Purchaser and its advisors and consultants to any meeting with FERC regarding the Reactive Update. In the event that
the parties receive a request for additional information or documentary materials after an initial notification pursuant to the HSR Act or any other applicable Competition Laws, or a request for additional information from FERC or any other
Governmental Entity in connection with any other Required Approvals, the parties shall use their respective reasonable best efforts to comply with such requests, as applicable, as promptly as possible and produce documents, responses to
interrogatories, or other information on a rolling basis, and counsel for both parties shall closely cooperate during the entirety of any such investigatory or review process. 

(d) Purchaser and Seller shall, and shall cause their respective Affiliates to, use their respective reasonable best efforts to resolve such
objections, if any, as may be asserted by any Governmental Entity with respect to the Sale and the other transactions contemplated by this Agreement under any applicable Law. In connection therewith, if any Action is instituted (or threatened to be
instituted) challenging the Sale or the other transactions contemplated by this Agreement as violative of any applicable Law, Purchaser and Seller shall jointly (to the extent practicable) use their reasonable best efforts to initiate and/or
participate in any proceedings, whether judicial or administrative, in order to (i) oppose or defend against any Action by any Governmental Entity to prevent or enjoin the consummation of the Sale or the other transactions contemplated by this
Agreement and/or (ii) take such action as necessary to overturn any regulatory Action by any Governmental Entity to block consummation of the Sale or the other transactions contemplated by this Agreement, including by defending any such Action
brought 

  
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by any Governmental Entity in order to avoid the entry of, or to have vacated, overturned or terminated, including by appeal if necessary, any Order that makes illegal or prohibits the
consummation of the Sale or the other transactions contemplated by this Agreement resulting from any such Action. 
 (e) Notwithstanding any
other provision of this Agreement, with the exception of actions or circumstances under FERC Docket No. EC21-74, Purchaser shall, and shall cause its Affiliates to, take all actions necessary to avoid or
eliminate each and every impediment under applicable Law, so as to enable the Closing to occur as promptly as practicable (and in any event no later than the Outside Date), including (i) proposing, negotiating, committing to and effecting, by
consent decree, hold separate Order, or otherwise, the sale, licensing, divestiture or disposition of any businesses, assets or properties of the Transferred Entities, Purchaser and their respective Affiliates, and (ii) otherwise taking or
committing to take actions that after the Closing would limit Purchaser’s, the Transferred Entities’ or their respective Affiliates’ freedom of action with respect to, or its or their ability to retain, operate, vote, transfer,
receive dividends, or otherwise exercise full ownership rights with respect to any businesses, assets or properties of the Transferred Entities, Purchaser and their respective Affiliates. All such efforts by Purchaser shall be unconditional, and no
actions taken pursuant to this Section 5.3(e) shall be considered for purposes of determining whether a Business Material Adverse Effect has occurred or may occur. Notwithstanding the foregoing or anything herein to the
contrary, in no event shall Purchaser or any of its Affiliates, including any portfolio company in which a fund advised by ArcLight Capital Partners, LLC is invested (other than Purchaser or its Subsidiaries), be required to (and nothing in this
Section 5.3 shall be interpreted as requiring Purchaser or any of its Affiliates to) (x) take any action that is not conditioned upon the Closing or (y) consent to any divestiture, hold separate order, limitation
on conduct or other remedial action impacting any business or Person other than the Transferred Entities. Notwithstanding anything herein to the contrary, Seller shall not be obligated to take, or agree or commit to take, any action (A) that is
not conditioned on the Closing or (B) that relates to the Retained Businesses, and in no event shall Seller or any of its Affiliates be required to be the licensing, selling, divesting, transferring, disposing or encumbering party under any
such agreements or transactions described above unless required by the relevant Governmental Entity or applicable Law, and, in any case, Seller and its Affiliates shall have no direct or indirect obligation or Liability in respect of any such
agreements or transactions, including any indemnification obligations, for which Seller and its Affiliates are not fully indemnified by Purchaser. 

(f) Purchaser agrees to use reasonable best efforts to provide such security and assurances as to financial capability, resources and
creditworthiness as may be reasonably requested by any Governmental Entity or other third party whose consent or approval is sought in connection with the transactions contemplated hereby; provided that the Purchaser’s obligations in respect of
Seller Guarantees shall be governed by Section 5.9 and not by this Section 5.3(f); provided, further, that Purchaser shall have no obligation under this
Section 5.3(f) in connection with an Excluded Liability. Whether or not the Sale is consummated, Purchaser shall be responsible for all fees and payments (including filing fees and legal, economist and other professional
fees) to any Governmental Entity in order to obtain any consent, clearance, expiration or termination of a waiting period, authorization, Order or approval pursuant to this Section 5.3, other than the fees of and payments
(x) to Seller’s legal and professional advisors and (y) arising out of any Excluded Liability. 

  
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 (g) Notwithstanding anything to the contrary herein, if (i) any State Regulatory
Condition is not satisfied by the Outside Date or (ii) a Substantial Detriment has been imposed by a Governmental Entity in connection with any State Regulatory Condition, then Seller and Purchaser shall, at Seller’s option, (x) (A)
exclude from the transactions contemplated by this Agreement each Transferred Entity and/or Facility, as applicable, that has caused such Substantial Detriment (even if no Order with respect thereto has been issued) (“Excluded
Facilities”), (B) reduce the Base Purchase Price as provided in Section 5.3(g) of the Seller Disclosure Schedule, and (C) modify the adjustments to the Base Purchase Price as contemplated in
Section 2.2 to reflect the removal of the Excluded Facilities or (y) if the effect of the Substantial Detriment lowers the value of a Facility in a manner that can be reasonably quantified by the parties with the
assistance of an experienced investment banker or other qualified valuation expert that is reasonably acceptable to all parties, reduce the Base Purchase Price by the amount of such calculation and proceed to Closing. “Substantial
Detriment” shall mean (x) any material limitation, restriction or prohibition on the ability of Purchaser effectively to exercise full rights of ownership of a Facility, (y) a loss by Purchaser of a material benefit
(including revenue or cost synergies) of ownership of a Facility, or (z) an impact that is materially adverse to the assets, business, results of operation or financial condition of a Facility. 

Section 5.4 Conduct of Business. 

(a) From the date of this Agreement through the earlier of the Closing or the valid termination of this Agreement, except (u) as expressly
required or expressly permitted by this Agreement (including any actions, elections or transactions undertaken pursuant to Section 5.7), (v) as required by applicable Law or a Business Material Contract, (w) solely
with respect to the Retained Businesses, (x) as disclosed in Section 5.4 of the Seller Disclosure Schedule, (y) in connection with any action taken, or omitted to be taken, to the extent required to comply with COVID-19 Measures or (z) as otherwise consented to by Purchaser in writing (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall cause the Transferred Entities to: 

(i) conduct the Business in the ordinary course of business in all material respects (provided, that no action by Seller or the
Transferred Entities with respect to matters specifically addressed by any other provision of this Section 5.4 shall be deemed a breach of this Section 5.4(a)(i) unless such action
would constitute a breach of such other provision); 
 (ii) not (A) amend, propose to amend or waive any material term of their
respective Organizational Documents, (B) split, combine or reclassify their outstanding limited liability company interests, or (C) declare, set aside or pay any non-cash dividend or non-cash distribution to any Person other than a Transferred Entity (except as may facilitate the elimination of intercompany accounts contemplated by Section 5.7 or
Section 5.8); 

  
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 (iii) other than (x) to Seller or (y) the granting of Permitted Liens, not issue,
sell, pledge or dispose of, or agree to issue, sell, pledge or dispose of, any of their limited liability company interests, or any other equity interests, options, warrants or rights of any kind to acquire any such limited liability company
interests, or any debt or equity securities which are convertible into or exchangeable for such limited liability company interests; 
 (iv)
except for transactions in the ordinary course of business or as required pursuant to the terms of any Contract in effect on the date hereof and made available to Purchaser, not (A) make any material acquisition of any assets or properties for
an amount in excess of $5,000,000 in the aggregate, (B) sell, pledge, dispose of or encumber (other than to the extent constituting a Permitted Lien) any material assets or properties for an amount in excess of $5,000,000 in the aggregate or
(C) enter into any easements, servitudes, rights of way and similar agreements that encumber or otherwise grant rights in and to the Business Real Property in favor of the Seller, PSE&G or their respective Affiliates, other than the
Additional Affiliate Easements subject to Section 5.4(a) of the Seller Disclosure Schedule and Section 5.25(c), as applicable, or amendments to the Existing Affiliate Easements in accordance
with Section 5.25; 
 (v) not make any material change to its methods of financial accounting or to its cash
management policies, including its existing credit collection and payment policies, procedures and practices with respect to accounts receivable and accounts payable, including acceleration of collections, failure to make or delay collections
(whether or not past due), acceleration of payments or failure to pay or delay payments of payables, in effect at December 31, 2020, except (A) as required by a change in GAAP (or any authoritative interpretation thereof) or in applicable
Law or (B) for such changes as may be made by Seller Parent and are applicable to the Seller Group as a whole and disclosed to Purchaser in writing to the extent such changes are applicable to the Business; 

(vi) not dissolve, merge or consolidate with any other Person other than a Transferred Entity; 

(vii) (A) not fail to timely file any material Tax Return, (B) not make (except in the ordinary course of business), change or
revoke any material Tax election, (C) not change any annual Tax accounting period, (D) not change any material method of accounting for Tax purposes, (E) not amend any material Tax Return, (F) not settle or compromise any Tax
Proceeding in respect of a material amount of Taxes in a manner that will be binding on Purchaser and its Subsidiaries (including the Transferred Entities) for any Tax period (or portion thereof) beginning after the Adjustment Date or will obligate
Purchaser and its Subsidiaries (including the Transferred Entities) for any Tax period (or portion thereof) beginning after the Adjustment Date, (G) not enter into any Tax allocation, Tax sharing or Tax indemnity agreement (other than any
agreement the primary purpose of which does not relate to Taxes, any agreements subject to termination under Section 7.3, and any agreement solely between Transferred Entities) or closing agreement relating to any material
Tax, in each case, that will be binding on Purchaser and its Subsidiaries (including the Transferred Entities) for any Tax period (or portion thereof) beginning after the Adjustment Date or will obligate Purchaser and its Subsidiaries (including the
Transferred Entities) for any Tax period (or portion thereof) beginning after the Adjustment Date, (H) not surrender any right to claim a refund of a material amount of Taxes, (I) not consent to any extension or waiver (other than
automatic or automatically granted extensions or waivers) of the statute of limitations period applicable to any material Tax claim or assessment, it being agreed and understood that none of clauses (i) through

  
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(vi) or (viii) through (xvii) of this Section 5.4(a) shall apply to Tax compliance matters (other than clause (xviii) insofar as it relates to this clause (vii)) and that
subclauses (A) through (I) of this clause (vii) shall not apply to any U.S. federal income Tax Return (or any other Combined Tax Return) or any Taxes in respect of such Tax Returns; 

(viii) not (A) materially amend, voluntarily terminate (other than in accordance with its terms) or cancel any Business Material
Contract; (B) enter into any Contract that if in effect on the date hereof would be a Business Material Contract; (C) take any action to waive, release or assign any material rights, claims or benefits under a Business Material Contract or
take (or fail to take) any action that would reasonably be expected to cause or result in a breach of, or default under, any Material Contract; or (D) materially increase the total amount of obligations outstanding under the Seller Guarantees,
other than, in the case of each of clauses (A) through (D), in the ordinary course of business; 
 (ix) not settle or compromise any
Action, or enter into any consent decree or settlement agreement with any Governmental Entity, against the Business or a Transferred Entity other than settlements or compromises of any Action in the ordinary course of business or where the amount
paid in settlement or compromise does not exceed $2,500,000 individually or $10,000,000 in the aggregate and such settlement or compromise does not impose any material future restrictions or requirements on the Business or any Transferred Entity (it
being agreed and understood that this clause (ix) shall not apply with respect to Tax matters); 
 (x) except (A) as may be
required by applicable Law or the terms of any Seller Benefit Plan, Transferred Entity Benefit Plan or Collective Bargaining Agreement as in effect on the date hereof, or (B) in connection with any action that either applies uniformly to
Business Employees and other similarly situated employees of the Seller Group or would not materially increase costs to Purchaser and the Transferred Entities following the Closing, not (1) grant or promise to grant to any Business Employee any
increase in compensation or benefits, including severance or termination pay, other than for increases to wages or annual base salaries in the ordinary course of business for Business Employees not to exceed five percent (5%) of annual base salary
for any one individual or three percent (3%) of annual base salaries in the aggregate, (2) adopt, enter into, establish, terminate or materially amend any Transferred Entity Benefit Plan, (3) hire, promote, demote or terminate (other than
for cause) any Business Employee, other than (a) in the ordinary course of business with respect to any non-officer Business Employee (or new hire who would be a Business Employee) whose annual base
salary is (or would be) less than $150,000 or (b) replacement hires on substantially similar terms of employment as the departed or promoted employee; (4) internally transfer or otherwise alter the duties and responsibilities of any
employee in a manner that affects whether such employee is or is not classified as a Business Employee, other than as a result of such employee applying for open position and being selected in a competitive process (which, in the case of Business
Employees, is not targeted at Business Employees for a position outside of the Business), or (5) adopt, enter into, amend or terminate any Collective Bargaining Agreement (excluding any mid-term
agreement) if such action would result in any new material Liability or obligation to Purchaser or its Subsidiaries (including the Transferred Entities) after the Closing; 

(xi) not enter into any material joint venture, partnership, strategic alliance or similar arrangement with any Person; 

  
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 (xii) not incur, assume, or guarantee any Indebtedness for borrowed money or guarantee the
obligations in respect of Indebtedness for borrowed money of another Person; 
 (xiii) not materially amend or voluntarily terminate (other
than in accordance with its terms) or cancel any Policies, including allowing the Policies to expire without renewing such Policies or obtaining comparable replacement coverage, or fail to pay premium or report known claims to an insurance carrier
in a timely manner, in each case, except as would not reasonably be likely to be material to the Business; 
 (xiv) not make any loans,
advances, or capital contributions to, or investments in, any other Person, other than loans and advances to Business Employees in the ordinary course of business; 

(xv) from and after the Adjustment Date, not make any material capital expenditures or commitments for capital expenditures other than in
accordance with the Capital Expenditure Budget or as otherwise required to address exigent or emergency circumstances, or fail to make any material capital expenditures or commitments in accordance with the Capital Expenditure Budget; 

(xvi) not enter into any new material line of business or terminate any material existing line of business; 

(xvii) not materially amend or supplement, fail to renew, waive any material rights under or terminate any Transferred Entity Permit, except
for (a) routine renewals that do not impose additional material limitations on the Business or operations of a Transferred Entity or (b) in the ordinary course of business and on terms and conditions not materially less favorable than
under the Transferred Entity Permit being amended, restated, supplemented or renewed; 
 (xviii) not agree or commit to do or take any
action described in this Section 5.4(a). 
 (b) Nothing contained in this Agreement shall give Purchaser, directly
or indirectly, the right to control or direct Seller’s or any of its Affiliates’ (including the Transferred Entities’) businesses or operations prior to the Closing. 

Section 5.5 Consents. 

(a) Seller and Purchaser shall, and shall cause their respective Affiliates to, reasonably cooperate and use commercially reasonable efforts to
seek to obtain any consents required from third parties under Business Material Contracts in connection with the consummation of the transactions contemplated by this Agreement (the consents referred to in this
Section 5.5(a), collectively, the “Third Party Consents”). 

  
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 (b) Seller and Purchaser acknowledge that Seller and its Affiliates (including, prior to the
Closing, the Transferred Entities) are parties to certain Contracts that (i) relate in part to both (A) the operations or conduct of the Business or the Business (as defined in the NY/CT EPA) and (B) the operations or conduct of the
Retained Businesses (collectively, but excluding any enterprise-wide Contracts or Contracts with respect to off-the-shelf software, the “Commingled
Contracts”) or (ii) are set forth on Section 5.5(b) of the Seller Disclosure Schedule, that are implicated by the Bifurcation (together with the Commingled Contracts, the “Commingled/Delayed
Contracts”). Seller, on the one hand, and Purchaser, on the other hand shall cooperate with each other and use their respective commercially reasonable efforts, at no material cost to Seller or its Affiliates (including, for the avoidance
of doubt, payment of any fee or penalty pursuant to such Commingled/Delayed Contract), other than de minimis third-party cost (provided that if Seller or its Affiliates would be required to bear more than de minimis costs, Seller and Purchaser will
cooperate in good faith to seek resolution to reduce or eliminate such costs), to notify the third party that is the counterparty to each Commingled/Delayed Contract and, to the extent reasonably within the contractual control of Seller or Purchaser
or their respective Affiliates, as the case may be, to cause the applicable Commingled/Delayed Contract to be apportioned (including by seeking the consent of such counterparty to enter into a new Contract or amending, splitting or assigning in
relevant part such Commingled/Delayed Contract) between (A) Seller and its Affiliates and (B) the Transferred Entities (or as may be necessary to address the interim period resulting from the Bifurcation), pursuant to which Seller and/or
its Affiliates shall assume all of the rights and obligations under such Commingled/Delayed Contract that relate to the Retained Businesses, on the one hand, and the Transferred Entities and the Transferred Entities (as defined in the NY/CT EPA)
shall assume all of the rights and obligations under such Commingled/Delayed Contract that relate to the Business or the Business (as defined in the NY/CT EPA), on the other hand, and to the extent reasonably within the contractual control of Seller
or Purchaser or their respective Affiliates, in the case of Seller and its Affiliates, cause the applicable counterparty to release the Transferred Entities from the obligations of Seller and its Affiliates arising after the Closing Date under the
portion of the Commingled/Delayed Contract apportioned to Seller and its Affiliates and, in the case of the Transferred Entities, cause the applicable counterparty to release Seller and its Affiliates from the obligations of the Transferred Entities
arising after the Closing Date under the portion of the Commingled/Delayed Contract apportioned to the Transferred Entities (or as may be necessary to address the interim period resulting from the Bifurcation). From and after the date hereof,
the Parties shall take actions reasonably necessary to allocate rights and obligations under such Commingled/Delayed Contracts in accordance with the foregoing; provided, however, that (x) in no event shall any party be
required to assign (or amend), either in its entirety or in part, any Commingled/Delayed Contract that is not assignable (or cannot be amended) by its terms without obtaining one or more consents or approvals unless such consents or approvals are
obtained and (y) if any Commingled/Delayed Contract cannot be so partially assigned by its terms or otherwise, or cannot be amended, without such consent or approval, the parties shall cooperate and use commercially reasonable efforts to
establish, at no material cost to Seller or its Affiliates (including, for the avoidance of doubt, payment of any fee or penalty pursuant to such Commingled/Delayed Contract) other than de minimis third-party cost (provided that if Seller or its
Affiliates would be required to bear more than de minimis costs, Seller and Purchaser will cooperate in good faith to seek resolution to reduce or eliminate such costs), an agency type or other similar arrangement reasonably satisfactory to Seller
and Purchaser intended to both (I) provide the Transferred Entities and the Transferred Entities (as defined in the NY/CT EPA), to the fullest extent practicable under such Commingled/Delayed 

  
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Contract, the rights and obligations of those portions of such Commingled/Delayed Contract that relate to the Business or the Business (as defined in the NY/CT EPA) and (II) provide Seller
and its Affiliates, to the fullest extent practicable under such Commingled/Delayed Contract, the rights and obligations of those portions of such Commingled/Delayed Contract that relate to the Retained Businesses (including by means of any
subcontracting, sublicensing or subleasing arrangement). From and after the Closing, subject to the provisions of Article X, (1) Purchaser shall indemnify and hold harmless Seller and its Affiliates for all Losses arising from or
relating to the portion of any Commingled/Delayed Contract to be apportioned to the Transferred Entities and (2) Seller shall indemnify and hold harmless Purchaser and its Affiliates (including, following the Closing, the Transferred Entities)
for all Losses arising from or relating to the portion of any Commingled/Delayed Contract to be apportioned to Seller and its Affiliates. For the avoidance of doubt, no Contracts that relate to Overhead and Shared Services shall be deemed
Commingled/Delayed Contracts for purposes of this Section 5.5 and Seller shall be under no obligation to separate or provide replacement contracts for any such Contracts that relate to Overhead and Shared Services. 

(c) Seller and Purchaser shall, and shall cause their respective Affiliates to, reasonably cooperate to ensure that the contracts set forth on
Section 5.5(b) and (c) of the Seller Disclosure Schedule are treated consistently with the Parts and Services Term Sheet. At or prior to the Closing, with respect to the Contracts listed on
Section 5.5(c) of the Seller Disclosure Schedule, subject to Purchaser’s cooperation and commercially reasonable efforts to seek consent from the relevant counterparty (which shall not include the obligation by
Purchaser to pay any fee or penalty except as set forth in this Section 5.5(c), or consent to any terms other than as set forth in such Contracts and herein), either (i) Seller shall obtain consent of the
counterparties to such Contracts to assign such Contracts to PartsCo and such Contracts shall be assigned to PartsCo in accordance with the Parts and Services Term Sheet with the same economic terms and otherwise substantially the same terms and
conditions as those in effect as of the date hereof except as set forth in this Section 5.5(c) or (ii) Seller shall have provided to PartsCo an effective agency or back-to-back arrangement with respect to such Contracts that provides PartsCo with the same economic terms and otherwise substantially the same terms and conditions as those in effect as of the date hereof,
provided that Purchaser’s communications with any counterparty shall be made via Seller, and Purchaser shall not interact or negotiate with any counterparty without Seller present. If any counterparty seeks requirements that are not
acceptable to Seller or Purchaser, Seller and Purchaser will cooperate in good faith to seek resolution. To the extent a counterparty to a Contract set forth on Section 5.5(c) of the Seller Disclosure Schedule requires a
guarantee, performance or surety bond, letter of credit, commitments or other similar credit support arrangement or obligation in favor of such counterparty in connection with the foregoing (“Contract Splitting Credit Support”),
Seller shall provide such Contract Splitting Credit Support through a guarantee of Seller or an Affiliate thereof and (A) Section 5.9 shall apply to such Contract Splitting Credit Support, mutatis mutandis, subject to clause
(B) and the following proviso and (B) following the Closing, Purchaser shall pay Seller or its designee a fee in respect of such Contract Splitting Credit Support determined as follows: on the last Business Day of each one (1) month
period following the date on which such Contract Splitting Credit Support obligation is incurred (or the Closing Date, if later), the fee shall be calculated at a rate of (I) two percent (2.0%) (on a per annum basis) on the aggregate dollar
amount of such Contract Splitting Credit Support (with such 

  
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aggregate dollar amount to be determined by Purchaser in good faith) for the period from the Closing Date to and including December 31, 2022, (II) three percent (3.0%) (on a per annum basis)
on the aggregate dollar amount of such Contract Splitting Credit Support (with such aggregate dollar amount to be determined by Purchaser in good faith) for the period from January 1, 2023 to and including December 31, 2023 and
(III) four percent (4.0%) (on a per annum basis) on the aggregate dollar amount of such Contract Splitting Credit Support (with such aggregate dollar amount to be determined by Purchaser in good faith) for the period following December 31,
2023; provided, that Purchaser shall have no obligation to substitute or replace such Contract Splitting Credit Support in amounts in excess of ten million dollars ($10,000,000) in the aggregate (the “Purchaser Threshold”);
provided, further, that (x) if the required amount of Contract Splitting Credit Support is in excess of the Purchaser Threshold, Seller shall provide excess Contract Splitting Credit Support not in excess of ten million dollars
($10,000,000) in the aggregate or (y) Seller shall not be obligated to provide any Contract Splitting Credit Support following December 31, 2024, regardless of whether any Contract Splitting Credit Support has been replaced by Purchaser.

 (d) Notwithstanding anything to the contrary contained herein, neither Seller nor Purchaser nor any of their respective Affiliates shall
have any obligation to make any payments or incur any Liability or offer or grant any accommodation (financial or otherwise) in order to obtain any consents or approvals of third parties or effect the transfers or arrangements contemplated by this
Section 5.5, and neither Seller nor any of its Affiliates shall have any Liability whatsoever to Purchaser or any of its Affiliates arising out of or relating to the failure to obtain any such consents or approvals, and the
failure to receive any such consents or approvals or to effect any such transfers or arrangements shall not be taken into account with respect to whether any condition to the Closing set forth in Article VIII shall have been satisfied.

Section 5.6 Public Announcements. No party to this Agreement nor any Affiliate or Representative of such party shall issue or
cause the publication of any press release or public announcement in respect of this Agreement or the transactions contemplated by this Agreement without the prior written consent of the other party (which consent shall not be unreasonably withheld,
conditioned or delayed), except (a) as may be required by Law or stock exchange rules, in which case the party required to publish such press release or public announcement shall use reasonable efforts to provide the other party a reasonable
opportunity to comment on such press release or public announcement in advance of such publication, (b) to the extent the contents of such release or announcement are consistent in all material respects with materials or disclosures that have
previously been released publicly in compliance with this Section 5.6, (c) in respect of Seller, in connection with providing to investors of Seller Parent periodic updates as to the Sale Process or (d) in respect of
Purchaser, if such announcement or other communication is in connection with fundraising or other investment related activities or is to its direct and indirect investors or prospective investors. The parties hereto agree that the initial press
release to be issued with respect to the execution of this Agreement shall be in a form mutually agreed by Seller and Purchaser. 

  
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 Section 5.7 Intercompany Accounts; Cash. As of immediately prior to 12:01
a.m. (New York City time) on the Closing Date, (a) all intercompany accounts, except for those accounts listed on Section 5.7 of the Seller Disclosure Schedule, between any member of the Seller Group (other than the
Transferred Entities), on the one hand, and any Transferred Entity, on the other hand, shall be settled or otherwise eliminated and (b) any and all cash or cash equivalents of the Transferred Entities may be extracted from the Transferred
Entities by Seller, in the case of each of clauses (a) and (b), in such a manner as Seller shall determine in its sole discretion. Any such intercompany accounts that are settled after 12:01 a.m. (New York City time) on the Closing Date but in
connection with the Closing shall be deemed for purposes of this Agreement to have been settled as of immediately prior to 12:01 a.m. (New York City time) on the Closing Date. For the avoidance of doubt, intercompany accounts between and among any
of the Transferred Entities shall not be required to have been eliminated at the Closing. 
 Section 5.8 Termination of Intercompany
Arrangements. 
 (a) Effective at or prior to the Closing, other than any intercompany arrangement governing the intercompany accounts
governed by Section 5.7, all arrangements, understandings or Contracts, including all obligations to provide goods, services or other benefits, by any member of the Seller Group (other than the Transferred Entities), on the
one hand, and any Transferred Entity, on the other hand, including, for the avoidance of doubt, the Affiliate Arrangements shall be terminated without any party having any continuing obligations or Liability to the other, except for (a) this
Agreement and the Ancillary Agreements and (b) the Affiliate Arrangements, understandings or Contracts listed in Section 5.8 of the Seller Disclosure Schedule. 

(b) Except to the extent provided to the contrary in Section 5.7 or this Section 5.8,
effective as of the Closing, Purchaser, on behalf of itself and its Affiliates (including, for purposes of this Section 5.8(b), the Transferred Entities), hereby releases Seller and each of its Affiliates (and their
respective officers, directors and employees, acting in their capacities as such) from any obligations or Liability to Purchaser or any of its Affiliates (including, for purposes of this Section 5.8(b), the Transferred
Entities), for any and all past actions or failures to take action prior to the Closing directly or indirectly relating to or arising out of the Business, the Retained Businesses, or the operations of the Transferred Entities prior to the Closing,
or relating to or arising out of Seller’s or its Affiliates’ ownership or operation of the Transferred Entities, except for any obligations pursuant to the provisions of this Agreement (including Article X hereof) or the Ancillary
Agreements and any arrangements, understandings or Contracts set forth in Section 5.7 or Section 5.8 of the Seller Disclosure Schedule. 

(c) Except to the extent provided to the contrary in Section 5.7 or this Section 5.8,
effective as of the Closing, Seller, on behalf of itself and its Affiliates, hereby releases the Transferred Entities, Purchaser, and Purchaser’s Affiliates (and their respective officers, directors and employees, acting in their capacities as
such) from any obligations or Liability to Seller or any of its Affiliates for any and all past actions or failures to take action prior to the Closing directly or indirectly relating to or arising out of the Business, the Retained Businesses, or
the ownership or operations of the Transferred Entities prior to the Closing, except for any obligations pursuant to the provisions of this Agreement (including Article X hereof) or the Ancillary Agreements and any arrangements,
understandings or Contracts set forth in Section 5.7 or Section 5.8 of the Seller Disclosure Schedule. 

  
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 Section 5.9 Guarantees; Commitments. 

(a) Section 5.9 of the Seller Disclosure Schedule sets forth a list of each material Seller Guarantee outstanding as of the date
hereof, including the member of the Seller Group party to such Seller Guarantee, the beneficiary, the maximum total amount of such obligation outstanding, the Contract or Law that such Seller Guarantee relates to, and the term. Except as otherwise
set forth on Section 5.9 of the Seller Disclosure Schedule, from and after the Closing, Purchaser and the Transferred Entities, jointly and severally, shall forever indemnify and hold harmless Seller and any of its
Affiliates against any Liabilities that Seller or any of its Affiliates suffer, incur or are liable for by reason of or arising out of or in consequence of (i) Seller or any of its Affiliates issuing, making payment under, being required to pay
or reimburse the issuer of, or being a party to or maintaining, any Seller Guarantees), (ii) any claim or demand for payment made on Seller or any of its Affiliates with respect to any of the Seller Guarantees or (iii) any Action by any Person
who is or claims to be entitled to the benefit of or claims to be entitled to payment, reimbursement or indemnity with respect to any Seller Guarantees, and shall reimburse Seller for any fees or expenses incurred in connection with any of the
foregoing clauses (i) through (iii), and shall effect such indemnification and reimbursement no later than three (3) Business Days after written demand therefor from Seller. With respect to any Seller Guarantee, Seller and each of its
Affiliates is referred to as an “Indemnified Party” for purposes of this Section 5.9. 
 (b) Without
limiting Section 5.9(a) in any respect, Purchaser shall use its commercially reasonable efforts, at its sole expense, to cause itself or its Affiliates to be substituted in all respects for the Indemnified Party and any of
its Affiliates, and for the Indemnified Party and its Affiliates to be released, effective as of the Closing, in respect of, or otherwise terminate (and in each case cause the Indemnified Party and its Affiliates to be released in respect of), all
obligations of the Indemnified Party and any of its Affiliates under each Seller Guarantee (including, in each case, by delivering at the Closing (i) executed agreements to assume reimbursement obligations for such Seller Guarantees,
(ii) executed instruments of guaranty, letters of credit or other documents requested by any banks, customers or other counterparties with respect to any Seller Guarantees, and (iii) any other documents reasonably requested by Seller in
connection with Purchaser’s obligations under this Section 5.9). In furtherance and not in limitation of the foregoing, at the request of an Indemnified Party, Purchaser shall and shall cause its Affiliates to use its
commercially reasonable efforts to assign or cause to be assigned any Contract or lease underlying such Seller Guarantee to a Subsidiary of Purchaser meeting the applicable net worth and other requirements in such Contract or lease to give effect to
the provisions of the preceding sentence. For any Seller Guarantees for which Purchaser or any Transferred Entity, as applicable, is not substituted in all respects for the Indemnified Party and its Affiliates (or for which the Indemnified Party and
its Affiliates are not released) effective as of the Closing and that cannot otherwise be terminated effective as of the Closing (with the Indemnified Party and its Affiliates to be released in respect thereof), (x) Seller shall, and shall cause its
Affiliates to, cause any such Seller Guarantee to remain in effect and (y) Purchaser shall continue to use its commercially reasonable efforts and shall cause its Affiliates to use their commercially reasonable efforts to effect such
substitution or termination and release as promptly as practicable after the Closing. Without limiting the foregoing, Purchaser shall not, and shall not permit any of its Affiliates to, extend or renew any Contract containing or underlying a Seller
Guarantee unless, prior to or concurrently with such extension or renewal, Purchaser or the Transferred Entities are substituted in all respects for the Indemnified Party and its Affiliates, and the Indemnified Party and its Affiliates are released,
in respect of all obligations of the Indemnified Party and its Affiliates under such Seller Guarantee. 

  
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 (c) If there are any Seller Guarantees outstanding following the Closing, then on the last
Business Day of each one (1) month period following the Closing Date until such time as no Seller Guarantees remain outstanding, Purchaser shall pay Seller or its designee a fee in respect of each applicable Seller Guarantees outstanding,
determined as follows: on the last Business Day of each one (1) month period following the Closing Date, the fee shall be calculated at a rate of two percent (2.0%) (on a per annum basis) on the aggregate dollar amount of all Seller Guarantees
outstanding as of such date (with such aggregate dollar amount to be determined by Purchaser in good faith). 
 Section 5.10
Insurance. 
 (a) From and after the Closing, the Transferred Entities shall cease to be insured by the Seller Group’s current
and historical insurance policies or programs or by any of its current and historical self-insured programs, and neither the Transferred Entities nor Purchaser nor its other Affiliates shall have any access, right, title or interest to or in any
such insurance policies, programs or self-insured programs (including to all claims and rights to make claims and all rights to proceeds) to cover any assets or any Liability of the Transferred Entities or arising from the operation of the Business,
in each case including with respect to any known and incurred but not reported claims. The members of the Seller Group may amend any insurance policies and ancillary arrangements in the manner they deem appropriate to give effect to this
Section 5.10. Except as set forth in Section 5.10(b), from and after the Closing, Purchaser acknowledges and agrees that it shall be solely responsible for securing all insurance it considers
appropriate for the Transferred Entities and the Business and Purchaser further agrees that it shall not, and shall cause the Transferred Entities not to, seek to assert or exercise any rights or claims of any Transferred Entity or the Business
under or in respect of any past or current insurance policy, program or self-insurance program of any member of the Seller Group under which, at any time prior to the Closing, any Transferred Entity or Affiliate thereof or the Business has been a
named insured. 
 (b) Prior to Closing, either through access to its existing policies or programs or via a stand-alone policy separate from
Seller’s existing policies or programs, Seller shall, in coordination with Purchaser, use all reasonable efforts to obtain for the benefit of the Transferred Entities, or, at the option of Purchaser, shall assist Purchaser in obtaining, a third
party property damage and bodily injury liability tail “claims-made” insurance policy (excluding any claims relating to pollution) in form and substance reasonably satisfactory to Purchaser that provides coverage with respect to the
Transferred Entities and the Business for events occurring prior to the Closing having a self-insured retention amount that is no greater than one million ($1,000,000) and an aggregate coverage limit equal to thirty-five million ($35,000,000), that
is otherwise substantially equivalent to and in any event not less favorable in the aggregate than the existing Policies and having a term for at least three (3) years following the Closing Date (the “Tail Policy”). Purchaser
and Seller shall each be responsible for fifty percent (50%) of all premium due in respect of such Tail Policy. Seller shall report all liability occurrences or occurrences that could give rise to a claim in respect of the Business in excess of
$1,000,000 to their insurer prior to the Closing Date. In furtherance of the foregoing, Seller shall reasonably 

  
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cooperate in connection with reporting any claims for loss covered by the Tail Policy. In the event that a Tail Policy having a retention amount that is no greater than one million ($1,000,000)
is not available, then Purchaser and Seller shall each be responsible for fifty percent (50%) of any liability in excess of one million ($1,000,000) and below the retention amount that otherwise would have been covered by the Tail Policy but for the
retention amount. 
 Section 5.11 Litigation Support. In the event and for so long as Seller or any of its Affiliates is
prosecuting, contesting or defending any Action, investigation, charge, claim, or demand by or against a third party or otherwise addressing, negotiating, disputing, investigating, complying with, mitigating, discharging or otherwise performing or
managing any obligation, Liability or Loss in connection with (a) any transactions contemplated by this Agreement or (b) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action,
failure to act, or transaction relating to, in connection with or arising from the Business or the Transferred Entities, including the Excluded Liabilities, and without limiting any rights provided for in Section 5.1, Purchaser shall, and shall
cause its Affiliates (including, following the Closing, the Transferred Entities) and Representatives to, reasonably cooperate with Seller and its counsel in such prosecution, contest or defense, including reasonably making available its personnel,
participating in meetings, providing such testimony and access to their books and records and taking such other actions as shall be reasonably necessary in connection with such prosecution, contest or defense; provided, that any reasonable out-of-pocket costs incurred in providing such cooperation shall be reimbursed by the prosecuting, contesting or defending party. 

Section 5.12 Misallocated Assets and Misdirected Payments. 

(a) If, following the Closing, any right, property, asset or Liability that is primarily related to the Retained Businesses is found to have
been transferred to or retained by Purchaser, the Transferred Entities or their respective Affiliates in error, Purchaser shall transfer, or cause its applicable Affiliate to transfer, such right, property, asset or Liability to the applicable
member of the Seller Group, and the applicable member of the Seller Group shall accept and assume such right, property, asset or Liability as soon as practicable. If, following the Closing, any right, property, asset or Liability that is primarily
related to the Business is found to have been transferred to or retained by a member of the Seller Group in error, either directly or indirectly, Seller shall transfer, or cause the applicable member of the Seller Group to transfer, such right,
property, asset or Liability to Purchaser or its applicable Affiliate as soon as practicable and Purchaser or its applicable Affiliate shall accept and assume such right, property, asset or Liability. 

(b) Except as otherwise provided in this Agreement or the Ancillary Agreements, following the Closing, (i) if any payments due with
respect to the Business are paid to any member of the Seller Group, Seller shall, or shall cause the applicable member of the Seller Group to, promptly remit by wire or draft such payment to an account designated in writing by Purchaser and
(ii) if any payments due with respect to the Retained Businesses are paid to Purchaser, the Transferred Entities or their respective Affiliates, Purchaser shall, or shall cause its Affiliates to, promptly remit by wire or draft such payment to
an account designated in writing by Seller. 

  
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 Section 5.13 Use of Marks. 

(a) Except as expressly provided in this Section 5.13, neither Purchaser nor any of its Affiliates shall use, or have
or acquire the right to use or any other rights in, any marks of Seller or any of its Affiliates, including “PSE&G,” “PSEG,” “PSEG We Make Things Work For You,” “PSEG Power LLC” or “PSEG Fossil
LLC” or any variations or derivatives thereof or any names, trademarks, service marks or logos of Seller or any of its Affiliates, or any name, trademark, service mark or logo that, in the reasonable judgment of Seller, is similar to any of the
foregoing (the “Seller Names”). Within ten (10) Business Days of the Closing, Purchaser shall cause each of the Transferred Entities having a name, trademark, service mark or logo that includes the Seller Names to change
its name to a name that does not include any Seller Name, including making any legal filings necessary to effect such change. 
 (b) The
Transferred Entities may continue temporarily to use the Seller Names following the Closing, to the extent and in substantially the same manner used immediately prior to the Closing, so long as Purchaser shall, and shall cause its Affiliates to,
(i) immediately after the Closing, cease to hold itself out as having any affiliation with Seller or any of its Affiliates and (ii) use commercially reasonable efforts to minimize and eliminate use of the Seller Names by the Transferred
Entities. In any event, as soon as practicable after the Closing Date (and in any event within one hundred eighty (180) days thereafter) Purchaser shall and shall cause each of the Transferred Entities to (A) cease and discontinue use of
all Seller Names (including by filing certificates of name change for the applicable Transferred Entities) and (B) complete the removal of the Seller Names from all products, signage, vehicles, properties, technical information, stationery and
promotional or other marketing materials and other assets. 
 Section 5.14
Non-Solicitation. For a period of two (2) years from the Closing Date, none of Purchaser or its Affiliates (including, following the Closing, the Transferred Entities), on the one hand, or Seller
or its Affiliates, on the other hand, shall, directly or indirectly, solicit for employment or hire, or employ or hire (whether as an officer, employee, consultant or other independent contractor), (i) in the case of the restrictions applicable to
Purchaser and its Affiliates, any individual who is an officer, employee or consultant of Seller or any of its Affiliates and with whom Purchaser or any of its Affiliates or Representatives came into contact with, or was specifically identified as
being involved with, the Sale Process or the transactions contemplated by this Agreement or who is otherwise involved in providing any services to Purchaser pursuant to an Ancillary Agreement and (ii) in the case of the restrictions applicable
to Seller and its Affiliates, any Transferred Business Employee; provided, that the foregoing shall not restrict any general advertisement that is not directed at or focused on any such personnel, or the hiring of any such personnel who
respond to such general advertisements. 
 Section 5.15 Financing.  

(a) Purchaser shall use commercially reasonable efforts to take, or cause to be taken, all actions, and do, or cause to be done, all things
necessary, proper or advisable to obtain funds in an amount sufficient to fund the Financing Amounts on the terms and conditions contained in the Debt Commitment Letter on or prior to the date upon which the Sale is required to be consummated
pursuant to the terms hereof. In furtherance and not in limitation of the foregoing, Purchaser shall use reasonable best efforts to take, or cause to be taken, all actions and 

  
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do, or cause to be done, all things necessary, advisable or proper to obtain the proceeds of the Financing on the terms and conditions described in the Debt Commitment Letter and the Equity
Commitment Letter, as applicable, as promptly as possible but in any event on or prior to the date upon which the Sale is required to be consummated pursuant to the terms hereof, including by (i) maintaining in effect the Equity Commitment
Letter and the Debt Commitment Letter, (ii) negotiating and entering into definitive agreements with respect to the Debt Financing (the “Definitive Agreements”) consistent with the terms and conditions contained therein
(including, as necessary, the “flex” provisions contained in any related fee letter) and (iii) satisfying on a timely basis all conditions in the Debt Commitment Letter and the Definitive Agreements and complying with its obligations
thereunder. Purchaser shall comply with its obligations, and enforce its rights, under the Debt Commitment Letter and Definitive Agreements in a timely and diligent manner. Without limiting the generality of the foregoing, in the event that all
conditions contained in the Debt Commitment Letter or the Definitive Agreements (other than the consummation of the Sale and those conditions the failure of which to be satisfied is attributable to a breach by Purchaser of its representations,
warranties, covenants or agreements contained in this Agreement, and other than, with respect to the Debt Financing, the availability of the Equity Financing) have been satisfied, Purchaser shall use reasonable best efforts to cause the Lenders and
Equity Investors to comply with their respective obligations thereunder. 
 (b) Purchaser shall not without the prior written consent of
Seller: (A) permit any amendment or modification to, or any waiver of any provision or remedy under, the Debt Commitment Letter or the Definitive Agreements if such amendment, modification, waiver or remedy (1) adds new (or adversely
modifies any existing) conditions to the consummation of all or any portion of the Financing, (2) reduces the amount of the Debt Financing or the Equity Financing, (3) adversely affects the ability of Purchaser to enforce its rights
against other parties to the Debt Commitment Letter or the Definitive Agreements as so amended, replaced, supplemented or otherwise modified, relative to the ability of Purchaser to enforce its rights against the other parties to the Debt Commitment
Letter as in effect on the date hereof or (4) could otherwise reasonably be expected to prevent, impede or delay the consummation of the Sale and the other transactions contemplated by this Agreement; or (B) terminate the Debt Commitment
Letter or any Definitive Agreement. Purchaser shall promptly deliver to Seller copies of any amendment, modification, waiver or replacement of the Debt Commitment Letter or any Definitive Agreement. 

(c) In the event that any portion of the Debt Financing becomes unavailable, regardless of the reason therefor, Purchaser will, (A) use
commercially reasonable efforts to arrange and obtain alternative debt financing (in an amount sufficient and to the extent necessary, when taken together with the available portion of the Financing, to consummate the transactions contemplated by
this Agreement and to pay the Financing Amounts) from the same or other sources and which do not include any conditions to the consummation of such alternative debt financing that are more onerous than the conditions set forth in the Debt Commitment
Letter and (B) promptly notify Seller of such unavailability and the reason therefor. For purposes of this Agreement, the term “Debt Commitment Letter” shall be deemed to include any commitment letter (or similar agreement)
with respect to any alternative financing arranged in compliance herewith (and any Debt Commitment Letter remaining in effect at the time in question) and the term “Debt Financing” shall be deemed to include any alternative debt

  
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financing obtained in compliance herewith. Purchaser shall provide Seller with prompt oral and written notice of any actual or threatened breach, default, termination or repudiation by any party
to the Debt Commitment Letter or Equity Commitment Letter or any Definitive Agreement and a copy of any written notice or other written communication from any Lender, Equity Investor or other financing source with respect to any breach, default,
termination or repudiation by any party to the Debt Commitment Letter or Equity Commitment Letter or any Definitive Agreement of any provision thereof. Purchaser shall inform Seller in reasonable detail on a current basis of the status of its
efforts to consummate the Financing. The foregoing notwithstanding, compliance by Purchaser with this Section 5.15 shall not relieve Purchaser of its obligations to consummate the transactions contemplated by this Agreement
whether or not the Financing is available. 
 (d) Prior to the Closing, Seller shall, and shall cause its applicable Affiliates to,
reasonably cooperate with Purchaser’s requests as may be necessary to obtain the Debt Financing, including by (A) using commercially reasonable efforts to participate in a reasonable number of meetings, presentations, road shows, due
diligence sessions and sessions with rating agencies, at reasonable times and with reasonable advance notice, (B) using commercially reasonable efforts to furnish Purchaser and the Lenders as promptly as reasonably practicable following the
delivery of a request therefor to Seller by Purchaser (which notice shall state with specificity the information requested) such financial and other information regarding the Transferred Entities as is reasonably available to Seller at such time and
is customarily required in connection with the execution of financings of a type similar to the Debt Financing, including using commercially reasonable efforts to (X) provide to the Lenders a copy of the quality of earnings report, dated
September 30, 2020, for the Transferred Entities that has been made available to Purchaser prior to the date hereof and (Y) provide to Purchaser, at Purchaser’s sole expense, such support as is reasonably available to Seller and is
customarily required for Purchaser to produce an independent quality of earnings report for the Transferred Entities (provided, that neither the Seller nor any of its Affiliates shall have any obligation to prepare pro forma financial
information or post-closing financial information, prepare or produce a quality of earnings report (other than as described in clause (X) above) or undertake or facilitate any audit) and (C) furnishing Purchaser (I) the unaudited
consolidated financial statements for each Transferred Entity for the fiscal years ended December 31 2020 and 2019 no later than sixty (60) days following the date hereof and (II) the interim unaudited balance sheets and statements of
income for the Transferred Entities for the twelve (12)-month period then ending, for each fiscal quarter (including the fourth fiscal quarter of any fiscal year) subsequent to the quarter ended December 31, 2020 no later than sixty
(60) days following the conclusion of such quarter, in each case prepared in accordance with GAAP; it being understood that Seller shall have satisfied the obligations set forth in clauses (A) and (B) of this sentence if Seller shall have
used its reasonable efforts to comply with such obligations whether or not any applicable deliverables are actually obtained or provided. The foregoing notwithstanding, neither Seller nor any of its Affiliates shall be required to take or permit the
taking of any action pursuant to this Section 5.15 that would: (i) require Seller, any of its Affiliates or any officers of directors of such entities to pass resolutions or consents to approve or authorize the
execution of the Debt Financing or enter into, execute or deliver any certificate, document, instrument or agreement or agree to any change or modification of any existing certificate, document, instrument or agreement; (ii) cause any
representation or warranty in this Agreement to be breached by Seller or any of its Affiliates; 

  
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(iii) require Seller or any of its Affiliates to pay any commitment or other similar fee or incur any other expense, liability or obligation in connection with the Debt Financing or incur any
obligation under any agreement, certificate, document or instrument; (iv) cause any director, officer, employee or equity holder of Seller or any of its Affiliates to incur any personal liability; (v) conflict with the organizational
documents of Seller or any of its Affiliates or any Laws; (vi) reasonably be expected to result in a material violation or breach of, or a default (with or without notice, lapse of time, or both) under, any Contract to which Seller or any of
its Affiliates is a party; (vii) require Seller or any of its Affiliates to provide access to or disclose information that Seller or any of its Affiliates determines would jeopardize any attorney-client privilege or other applicable privilege
of Seller or any of its Affiliates or is competitively or commercially sensitive; (viii) , require Seller or any of its Affiliates to prepare any financial statements or information other than as provided in clauses (B) and (C) above (or to
undertake or to facilitate any audit); or (ix) unreasonably interfere with the ongoing operations of Seller or any of its Affiliates. Nothing contained in this Section 5.15 or otherwise shall require Seller or any of
its Affiliates at any time or any Transferred Entity prior to the Closing to be an issuer or other obligor with respect to the Debt Financing. Purchaser shall, promptly upon request by Seller, reimburse Seller or any of its Affiliates for all
reasonable and documented out-of-pocket costs incurred by them or their respective Representatives in connection with such cooperation and shall indemnify, reimburse and
hold harmless Seller and its Affiliates and their Representatives from and against any and all Losses suffered or incurred by them in connection with the arrangement of the Debt Financing, any action taken by them at the request of Purchaser or its
Representatives pursuant to this Section 5.15 and any information used in connection therewith (other than information provided in writing by Seller or any of its Affiliates specifically in connection with Seller’s
obligations pursuant to this Section 5.15). 
 (e) For the avoidance of doubt, the parties hereto acknowledge and
agree that the provisions contained in this Section 5.15 represent the sole obligation of Seller and its Affiliates with respect to cooperation in connection with the arrangement of any financing (including the Financing)
to be obtained by Purchaser or its Affiliates with respect to the transactions contemplated by this Agreement and the Ancillary Agreements, and no other provision of this Agreement (including the Exhibits and Schedules hereto) or the Ancillary
Agreements shall be deemed to expand or modify such obligations. In no event shall the receipt or availability of any funds or financing (including, for the avoidance of doubt, the Financing) by Purchaser, any of its Affiliates or any other
financing or other transactions be a condition to any of Purchaser’s obligations under this Agreement. Notwithstanding anything to the contrary herein, the failure of Seller or any of its Affiliates or Representatives to comply with the
provisions set forth in this Section 5.15 shall not be taken into account in determining whether any condition to the Closing set forth in Article VIII shall have been satisfied unless such failure is the primary
cause of Purchaser being unable to obtain the proceeds of the Debt Financing at the Closing. 
 (f) All
non-public or otherwise confidential information regarding Seller or any of its Affiliates obtained by Purchaser or any of its Affiliates or Representatives pursuant to this
Section 5.15 shall be kept confidential in accordance with the Confidentiality Agreement; provided, that Purchaser shall be permitted to disclose information as necessary and consistent with customary practices in
connection with the Financing subject to customary confidentiality arrangements reasonably satisfactory to Seller. 

  
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 Section 5.16 R&W Insurance Policy. Purchaser shall use its reasonable best
efforts to bind the R&W Insurance Policy at or prior to the Closing. Purchaser shall use reasonable best efforts to take all actions necessary to complete the applicable conditions in the conditional binder (other than the condition that
the Closing has occurred, to which this sentence does not apply) to the R&W Insurance Policy within the times set forth therein to maintain the R&W Insurance Policy in full force and effect. Following the final issuance of the R&W
Insurance Policy, Purchaser agrees to use reasonable best efforts to keep the R&W Insurance Policy in full force and effect for the policy period set forth therein. Purchaser shall provide a copy of the R&W Insurance Policy to Seller upon
request. Purchaser agrees that the R&W Insurance Policy shall expressly exclude any right of subrogation against Seller and its Affiliates and their respective officers, directors and employees (except in the case of Fraud), and neither
Purchaser nor its Affiliates shall amend or waive such subrogation provisions without Seller’s prior written consent. The Parties acknowledge that Purchaser obtaining the R&W Insurance Policy is a material inducement to Seller entering into
the transactions contemplated by this Agreement, and Seller is relying on Purchaser’s covenants and obligations set forth in this Section 5.15(a). The R&W Insurance Policy may not be amended or waived by Purchaser
or its Affiliates in any manner that is adverse to Seller or any of its Affiliates without Seller’s prior written consent. At or promptly following the Closing, Seller shall deliver to Purchaser or its Representatives, as reasonably requested
by Purchaser, a digital copy of all documents and other information uploaded to the virtual data room established by Seller and its Representatives and to which Purchaser and its Representatives have been granted access as part of their due
diligence of the transactions contemplated hereby (the “Data Room”). 
 Section 5.17 Certain Environmental
Matters. Consistent with the enumeration of Excluded Liabilities in Section 1.1(d)(1) of the Seller Disclosure Schedule and as further set forth in the Remediation and Access Agreement, Seller shall undertake Remedial
Actions to address the presence of Hazardous Substances at, in, on, or under or that have migrated or are migrating from the Business Owned Real Property or Business Leased Real Property as of the Closing Date (defined in the Remediation and Access
Agreement as “Pre-Closing Contamination”) as may be required under Environmental Law, and shall be responsible for compliance and related obligations pursuant to the Industrial Site Recovery Act,
N.J.S.A. §13:1K-6 et seq., and its implementing regulations and technical guidance promulgated by the New Jersey Department of Environmental Protection (“NJDEP”), as may be amended
(collectively “ISRA”) and the New Jersey Site Remediation Reform Act, N.J.S.A. 58:10C-1 et seq. and its implementing regulations and technical guidance promulgated by NJDEP as may be amended
(collectively “SRRA”), including in connection with any prior transfers in relation to the Business, including the Business Owned Real Property or Business Leased Real Property. Seller shall not be required to undertake Remedial
Actions to address any Release or other presence of Hazardous Substances at, on, or from the Business Owned Real Property or Business Leased Real Property to the extent first occurring after, or deemed to have first occurred after, the Closing Date
(defined in the Remediation and Access Agreement as “Post-Closing Contamination”), such obligations being the sole responsibility of Purchaser, and Purchaser shall comply with Environmental Law in addressing Post-Closing
Contamination, and any other conditions first occurring after the Closing Date. 

  
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 Section 5.18 Parts and Services. At or prior to the Closing, each of Seller,
Purchaser and PartsCo shall enter into a Parts and Services Sharing Agreement reflecting substantially the terms and conditions set forth in the Parts and Services Term Sheet and otherwise reasonably acceptable to Seller, Purchaser and PartsCo (the
“Parts and Services Sharing Agreement”). The parties shall work in good faith to finalize the Parts and Services Sharing Agreement prior to Closing. 

Section 5.19 Restructuring Transactions. 

(a) Prior to the Closing, Seller and its applicable Affiliates, at Seller’s sole cost and expense, shall take any and all actions
necessary to effect the transactions contemplated by this Agreement, including (a) conveying, transferring, assigning and delivering any Excluded Asset or Excluded Liability set forth on Section 5.19(a) of the
Seller Disclosure Schedule from any Transferred Entity, on the one hand, to any member of the Seller Group (other than the Transferred Entities), on the other hand, and (b) conveying, transferring, assigning and delivering any asset or
liability set forth on Section 5.19(b) of the Seller Disclosure Schedule from any member of the Seller Group (other than the Transferred Entities), on the one hand, to any Transferred Entity, on the other hand (the
foregoing clauses (a) and (b) collectively, Closing, the “Seller Restructuring Transactions”), in each case pursuant to instruments of transfer in form and substance reasonably satisfactory to Purchaser and provided
that Purchaser’s prior written consent shall be required for any action not set forth on Section 5.19 of the Seller Disclosure Schedule; provided, further, that Purchaser may not require Parent to change
the steps contemplated by the Seller Restructuring Transaction. 
 (b) At the request of Purchaser and at Purchaser’s cost and expense,
Seller and its applicable Affiliates shall use commercially reasonable efforts to take such actions as requested by Purchaser to allow the Essex Generating Station to be transferred to a subsidiary of Purchaser that will own only the Essex
Generating Station and not any of the other Facilities, including obtaining any required standalone permits and contracts. The Parties agree to, and to cause their respective Affiliates to, cooperate in good faith and use their commercially
reasonable efforts to take such actions as may be reasonably necessary to mitigate, reduce or eliminate any Tax that could be imposed in connection with the foregoing. 

Section 5.20 Certain RTO Matters. Prior to the Closing, Purchaser shall use reasonable best efforts to take promptly the actions
set forth in Section 5.20 of the Seller Disclosure Schedule. 
 Section 5.21 Bulk Transfer Laws. Purchaser acknowledges that
Seller and its applicable Affiliates have not taken, and do not intend to take, any action required to comply with any applicable bulk sale or bulk transfer Laws of any jurisdiction. Purchaser hereby waives compliance by Seller and its applicable
Affiliates with, and agrees it will not voluntarily initiate discussions (or file any notification or similar document) with any taxing authority regarding, the provisions of any bulk sale or bulk transfer Laws of any jurisdiction in connection with
the transactions contemplated by this Agreement. 

  
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 Section 5.22 Risk of Loss. If from the date of this Agreement through the
Closing, any of the properties or assets of the Business, including the Facilities, are damaged by fire or other casualty event (each such event, an “Event of Loss”), or are taken by a Governmental Entity by exercise of the
power of eminent domain (each, a “Taking”), then the following provisions of this Section 5.22 shall apply:  

(a) Following the occurrence of (i) any one or more Events of Loss, if the sum of the (x) reasonably expected aggregate costs to
restore, repair or replace the property or assets of the Business subject to such Event of Loss to a condition reasonably comparable to its or their condition prior to such Event of Loss and (y) reasonably expected lost revenues of the Business
resulting from such Event of Loss to the extent reasonably expected to accrue after the date of such Event of Loss, after subtracting the amount of any insurance proceeds actually received or reasonably expected to be received by Purchaser in
respect of such Event of Loss (such sum of (x) and (y) pursuant to this clause (i) to be determined by an independent third party appraiser mutually selected by the parties (collectively,
“Restoration Costs”)) and/or (ii) any one or more Takings, if the (x) value of the property subject to such Taking and (y) lost revenues of the Business resulting from such Taking to the extent reasonably expected to
accrue after the date of such Taking, less any condemnation award received or reasonably expected to be received by Purchaser or Seller (provided, that any such condemnation award is made available to Purchaser) (such sum of (x) and
(y) pursuant to this clause (ii) to be determined by an independent third party appraiser mutually selected by the parties (collectively, the “Condemnation Value”)), is, in the aggregate, less than or equal to one
percent (1%) of the Base Purchase Price, in the case of each of clauses (i) and (ii), net of and after giving effect to (A) (1) any insurance proceeds reasonably expected to be available to the Business for such event and for which the
applicable insurers have accepted liability and (2) other third party proceeds paid to the Business for such event and (B) any amounts expended by Seller prior to Closing, to restore damage caused by such Event of Loss, there shall be no
effect on the transactions contemplated hereby; provided that any such amount associated with a reduction of the Restoration Cost or Condemnation Value as specified in the foregoing clause (A) shall be made available at no cost to Purchaser in
the application of this Section 5.22. 
 (b) Subject to the termination right of Purchaser and Seller set forth in
Section 5.22(e), upon the occurrence of any one or more Events of Loss and/or Takings involving aggregate Restoration Costs in excess of one percent (1%) of the Base Purchase Price or aggregate Condemnation Value in excess
of one percent (1%) of the Base Purchase Price (a “Major Loss”), Seller shall have, in the case of a Major Loss relating solely to one or more Events of Loss or Takings, the option, exercised by written notice to Purchaser, to
restore, repair or replace the damaged assets or properties prior to Closing to a condition reasonably comparable in all material respects to their condition prior to such Event of Loss or Taking, as the case may be. If Seller elects to so restore,
repair or replace the assets or properties relating to a Major Loss, and for whatever reason the repair or replacement is not completed prior to the Closing, the Base Purchase Price payable by Purchaser at the Closing shall be reduced by the
Restoration Cost, net of any reasonable out-of-pocket costs and expenses paid by Seller in connection with such repair or replacement prior to the Closing. If Seller
elects not to cause the restoration, repair or replacement of the property or assets affected by a Major Loss, or such Major Loss is the result in whole or in part of one or more Takings or is otherwise not capable of being restored, repaired or
replaced, the provisions of Section 5.22(c) will apply. 

  
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 (c) In the event that Seller elects not to cause the restoration, repair or replacement of a
Major Loss, or in the event that Seller, having elected to cause repair, replacement or restoration of the Major Loss, fails to cause its completion within the period of time agreed upon by the Parties pursuant to
Section 5.22(b), or in the event that a Major Loss is the result in whole or in part of one or more Takings or is otherwise not capable of being restored, repaired or replaced, then the parties shall, within thirty
(30) days following Seller’s election not to cause the restoration, repair or replacement, failure to complete, or the occurrence of such Major Loss, as the case may be, (i) adjust the Base Purchase Price downward by the aggregate
Restoration Cost and Condemnation Value and (ii) proceed to Closing. To assist Purchaser in its evaluation of any and all Events of Loss or Taking, Seller shall provide Purchaser such access to the properties and assets and such information as
Purchaser may reasonably request in connection therewith. 
 (d) In the event that (i) the aggregate Restoration Costs and Condemnation
Value with respect to one or more Events of Loss and/or Takings equals an amount in excess of ten percent (10%) of the Base Purchase Price or (ii) the Taking is of any Facility, then the Purchaser shall have the right to exclude from this
Agreement any Facility materially affected by the Events of Loss and/or Takings, to reduce the Base Purchase Price by an amount set forth on Section 5.22(d) of the Seller Disclosure Schedule in respect of such Facility and
to otherwise proceed to Closing (with such changes to the adjustments contemplated in Section 2.2 as may be required by the exclusion of such Facility). 

(e) Notwithstanding anything in this Section 5.22 to the contrary, in the event that the aggregate Restoration Costs
with respect to one or more Events of Loss equals an amount in excess of twenty-five (25%) of the Base Purchase Price or the aggregate Condemnation Value with respect to one or more Takings equals an amount in excess of twenty-five percent (25%) of
the Base Purchase Price, then either Purchaser or Seller shall have the right to terminate this Agreement. 
 Section 5.23
Resignations. Seller shall use its commercially reasonable efforts to deliver to Purchaser, at or prior to the Closing, written resignation letters of all directors and officers of each Transferred Entity, or their equivalents, effective as
of the Closing, as directed by and in form reasonably satisfactory to Purchaser. 
 Section 5.24 Bank Accounts. Seller and
Purchaser shall coordinate and use their reasonable best efforts to transfer, effective as of the Closing, the bank accounts of the Transferred Entities to Purchaser, including transferring or replacing authorized persons on such accounts. 

Section 5.25 Release and Amendment of Certain Easements. 

(a) Seller shall not and, prior to and after the Closing, shall irrevocably direct its Affiliates to not, become the successor, beneficiary or
assignee of the grantee under the Existing Affiliate Easements, whether by sale, assignment or other transfer (including by a direct or indirect equity sale or other change of control transaction, by merger, operation of law or otherwise). 

  
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 (b) At any time on or prior to the second (2nd) anniversary of the Closing Date (the
“Option Exercise Period”), Seller may, at its sole option and in its sole discretion, exercise an exclusive option to acquire the real estate described on Section 5.25(c) of the Seller Disclosure Schedule
(the “Additional Real Estate”) for a purchase price of $20,000,000.00 in cash (the “Option Purchase Price”) and with such representations, warranties and covenants from Purchaser to which Purchaser shall reasonably
agree and which, in any event, shall be solely related to the period following the Closing. Seller may exercise such exclusive option by delivering written notice on or prior to the end of the Option Exercise Period to Purchaser in accordance with
the notice provisions of this Agreement, proposing a date upon which the transfer of the Additional Real Estate shall be effectuated, which date shall be no fewer than thirty (30) days from the date such notice is delivered to Purchaser. In
such event, and provided the parties have been able to subdivide the Additional Real Estate into a legally distinct parcel, the parties shall reasonably cooperate to execute and deliver such customary documents and take such other actions as may be
reasonably required to effectuate the terms and conditions of the immediately preceding sentence, including customary deeds and other transfer documentation sufficient to enable Seller to obtain a customary title insurance policy, insuring fee
simple ownership to the Additional Real Estate, without any title exceptions or defects other than those which exist at Closing, other than any title exceptions imposed by a governmental authority, municipality or other similar body to which
Purchaser has not consented or otherwise agreed. The parties shall exercise their commercially reasonable to obtain any consents or waivers required to effectuate the foregoing transactions (including effectuating the subdivision of the Additional
Real Estate from the remainder of the Business Real Property in Linden, NJ) and each shall bear an equal portion of the Transfer Taxes and Seller shall bear 100% of the other closing costs arising from such purchase. The parties shall reasonably
cooperate in good faith to agree on forms of such transfer documentation within 60 days following the Closing Date. Prior to the second (2nd) anniversary of the Closing Date, Purchaser shall not, and shall cause its Affiliates not to, modify the
Additional Real Estate or construct any structures thereon in a manner inconsistent with, or that would reasonably be expected to adversely affect to value, use or occupancy of, such Additional Real Estate or Seller’s and its Affiliates’
contemplated use thereof. In the event that despite Seller and Purchaser’s commercially reasonable efforts to effect the subdivision of the Additional Real Estate from the remainder of the Business Real Property in Linden to constitute an
individual tax lot, fee simple ownership of the Additional Real Estate is unable to be conveyed pursuant to the first sentence of this paragraph and insured under a customary title insurance policy without any title exceptions or defects for being a
portion of or contiguous to any other Business Real Property, then Seller shall have the option to acquire a ground leasehold or other similar ownership interest, at Seller’s discretion, on terms and conditions (including entering into a ground
lease or similar agreement with respect to the Additional Real Estate, with an option in favor of Seller to acquire the Additional Real Estate for one dollar ($1.00) upon the completion of the subdivision thereof) that would transfer the benefits of
the Additional Real Estate to Seller in accordance with the terms of the option being granted under this Section 5.5(c) and subject to the payment of the Option Purchase Price. In the event that the Seller does not validly
exercise the option with respect to the Additional Real Estate prior to the expiration of the Option Exercise Period, (i) such option shall forever be 

  
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extinguished and of no further force and effect, and (ii) the parties shall modify the easement granted pursuant to Section 5.4(a)(2)(a) of the Seller Disclosure
Schedule to (X) be limited to rights with respect to one landing point and one path for cabling and conduits on such path across the Purchaser’s real property, and for temporary staging, as reasonably agreed by the parties prior to the
end of the Option Exercise Period, and (Y) to provide for the automatic termination of such easement in the event that, on the fifteenth (15th) anniversary of the Closing Date, substantial
construction of an offshore wind project has not commenced by Seller in the vicinity of such property. 
 Article VI 

EMPLOYEE MATTERS 

Section 6.1 Continuation and Offers of Employment; Allocation of Liabilities. 

(a) Seller shall cause each Business Employee who is employed as of immediately prior to the Closing to be employed by a Transferred Entity as
of immediately prior to the Closing, other than as provided in this Section 6.1(a). In lieu of the foregoing, Purchaser may or may cause the Operator to offer employment (contingent upon and effective as of the Closing
Date) to each Business Employee who is employed as of immediately prior to the Closing, with each such offer to be (i) consistent with a form of offer letter or form of welcome letter, as determined by Purchaser after good faith consultation
with Seller, (ii) to provide for employment on terms and conditions consistent with the provisions of this Article VI, (iii) to provide for the same job location (or, for Business Employees who are not Represented Employees, a job location
that is no more than fifty (50) miles from the employee’s job location as of the date of this Agreement) as of immediately following the Closing, (iv) to provide for a work schedule as of immediately following the Closing that is no
less favorable than that applicable to the employee as of immediately prior to the Closing, and (v) to offer a position with the same job title and responsibilities as of immediately following the Closing as the employee’s job title and
responsibilities as of immediately prior to the Closing. If Purchaser causes the Operator to offer employment to the Business Employees pursuant this Section 6.1, then each commitment and obligation of Purchaser and its
Affiliates under this Article VI shall apply equally to the Operator and Purchaser shall take all action necessary to cause the Operator to comply with such commitments and obligations. Each Business Employee who is employed by a Transferred
Entity as of immediately prior to the Closing or who is offered and accepts employment with an Operator, as applicable, shall be referred to herein as a “Transferred Business Employee”. Except as expressly provided in this
Agreement, from and following the Closing, Purchaser (or an Operator with respect to any Transferred Business Employee employed by an Operator) shall assume all Liabilities related to the Transferred Business Employees, including under the
Collective Bargaining Agreements and the Transferred Entity Benefit Plans (but excluding for the avoidance of doubt, liabilities relating to the Seller Benefit Plans). Seller shall periodically update the Employee List prior to Closing to reflect
new hires, employment terminations, changes to employment status and any other material changes thereto and Seller shall, as soon as administratively practicable, provide copies of such updated lists and information to Purchaser. 

  
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 (b) If, as of the Closing, a Business Employee is not actively at work as a result of an
approved leave of absence and is either receiving workers’ compensation benefits or receiving short-term or long-term disability benefits from a Seller Benefit Plan (each, a “Leave Employee”), such Leave Employee will remain
(or become) an employee of Seller and its Affiliates. Subject to Seller notifying Purchaser of a Leave Employee’s return to active employment within ten (10) Business Days of such return, Purchaser or one of its Affiliates (or, if directed
by Purchaser, an Operator) shall make an offer of employment to such Leave Employee on terms consistent with the terms of this Article VI; provided that the Leave Employee returned to active employment with Seller or one of its Affiliates
within twelve (12) months following the Closing Date (or such longer period required by applicable Law). Any Leave Employee who is offered and commences employment with Purchaser or one of its Affiliates (or, if directed by Purchaser, an
Operator) shall thereafter be considered a Transferred Business Employee for all purposes of this Agreement. Seller shall retain and be responsible for all Liabilities relating to the employment or termination of employment of Leave Employees,
including the compensation and benefits (except to the extent expressly provided for in Section 6.5), that are payable to such Leave Employee prior to the time such Leave Employee becomes a Transferred Business Employee.
For all purposes of this Agreement, in the case of any Leave Employee who becomes a Transferred Business Employee, the date that such Leave Employee commences (or is deemed to commence) employment with Purchaser or the Transferred Entities (or, if
directed by Purchaser, an Operator) or the time of such commencement (or deemed commencement) of employment shall be substituted for the terms “Closing Date” or “Closing” respectively, wherever such term appears, except for
purposes of Section 6.2 or Section 6.4. 
 Section 6.2 Terms and Conditions of
Employment. 
 (a) With respect to each Transferred MAST Employee, Purchaser shall provide or cause to be provided, for the one
(1) year period commencing on the Closing Date (the “Continuation Period”), (i) the same wage rate or cash salary level in effect for such Transferred MAST Employee immediately prior to the Closing, (ii) the same
annual target cash and target equity incentive compensation opportunities in the aggregate (excluding specific performance goals) as in effect for such Transferred MAST Employee immediately prior to the Closing; provided, that in lieu of equity
awards, Purchaser may substitute other forms of compensation, including cash-based compensation or profits interests or similar grants, having a substantially equivalent target value as measured at the time of issuance and (iii) employee
benefits (excluding equity or equity-based arrangements, change in control, retention or similar benefits, deferred compensation arrangements and specific performance goals for any cash incentive compensation) that are no less favorable, in the
aggregate, than those provided to such Transferred MAST Employee immediately prior to the Closing. Additionally, Purchaser agrees that each Transferred MAST Employee shall, during the Continuation Period, be eligible for severance benefits if such
employee is terminated by Purchaser and its Affiliates other than for cause or such employee resigns due to a Constructive Termination on terms and in amounts that are no less favorable than the severance benefits provided under the severance plan
listed in Section 6.2 of the Seller Disclosure Schedule, subject to the execution of a general release of claims (which shall not contain any non-competition covenants) in a
form reasonably acceptable to Purchaser. 

  
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 (b) As of the Closing, Purchaser or one of its Affiliates (including a Transferred Entity,
as applicable) shall (or, to the extent that the Operator is the employer of the applicable Transferred Represented Employees, shall cause the Operator to) recognize the unions under the Collective Bargaining Agreements as the exclusive bargaining
representatives of the Transferred Represented Employees and shall assume the Collective Bargaining Agreements with respect to Transferred Represented Employees, and shall continue all terms and conditions under such assumed Collective Bargaining
Agreements through their respective expiration, modification or termination in conformity with such Collective Bargaining Agreements and applicable Law. Seller and Purchaser (and, if applicable, the Operator) shall work together in good faith prior
to the Closing to satisfy any notice or consultation obligations to any labor union or other labor organization that may be triggered by this Agreement or the transactions contemplated hereby. 

(c) Purchaser and its Affiliates shall, in addition to meeting the applicable requirements of this Article VI, comply with any
additional obligations or standards required by applicable Laws or Contracts governing the terms and conditions of employment or termination of employment of the Transferred Business Employees. 

Section 6.3 Service Credit. As of and after the Closing, Purchaser shall or shall cause the applicable Transferred Entity to, give
each Transferred Business Employee full credit for purposes of eligibility, vesting and solely with respect to paid time off, severance and level of post-Closing pay credits under a cash balance plan, level of benefits under (i) each employee
benefit plan, policy or arrangement, and (ii) any other service-based or seniority-based entitlement, in each case maintained or made available for the benefit of Transferred Business Employees as of and after the Closing by Purchaser or any of
its Affiliates, for such Transferred Business Employee’s service prior to the Closing with Seller and its applicable Affiliates (including the Transferred Entities) and their respective predecessors, to the same extent such service is
recognized by Seller and its applicable Affiliates (including the Transferred Entities) immediately prior to the Closing; provided, that such credit shall not be given (A) for the avoidance of doubt, for benefit accrual purposes under
any defined benefit pension plan (other than the Purchaser Pension Plan) or (B) to the extent that it would result in a duplication of benefits for the same period of service. 

Section 6.4 Health Coverages. Purchaser shall cause each Transferred Business Employee (and his or her eligible dependents) to be
covered by a group health plan or plans that (a) comply with the provisions of Section 6.2(a), (b) do not limit or exclude coverage on the basis of any pre-existing condition of
such Transferred Business Employee or dependent (other than any limitation already in effect under the corresponding group health Seller Benefit Plan or Transferred Entity Benefit Plan) or on the basis of any other waiting period not in effect under
the applicable group health Seller Benefit Plan or Transferred Entity Benefit Plan, and (c) subject to the obligations under Section 6.2(b), use commercially reasonable efforts to provide such Transferred Business
Employee full credit, for the year in which the Closing Date occurs, for any deductible, co-payment or out-of-pocket expenses
already incurred by the Transferred Business Employee under the applicable group health Seller Benefit Plan or Transferred Entity Benefit Plan during such year for purposes of any maximum deductible,
co-payment or out-of-pocket expense provisions, as applicable, of such Purchaser group health plans. 

  
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 Section 6.5 Severance Indemnity. In the event that a Business Employee
does not, as a result of Purchaser’s failure to comply with Purchaser’s obligations under this Article VI, continue employment with Purchaser or its Affiliates (including a Transferred Entity) at or after the Closing, which, in any case,
results in any obligation, contingent or otherwise, of Seller or any of its Affiliates to pay or provide any severance, notice or similar payments or benefits, wages or penalties to any Business Employee or entity, or any additional Liability
incurred by Seller or any of its Affiliates in connection therewith, including, but not limited to, under the federal WARN Act, the New Jersey Millville Dallas Airmotive Plant Job Loss Notification Act, or any other state mini-WARN Act), Purchaser
shall, and shall cause its Affiliates to, reimburse and otherwise indemnify and hold harmless Seller and its Affiliates for all such severance or other compensation, benefits, damages or penalties and additional Liabilities. 

Section 6.6 Vacation, Sick Leave and Personal Time. Purchaser (or, if directed by Purchaser, an Operator) shall recognize and
assume all Liabilities with respect to credited but unused vacation, sick leave and personal time for all Transferred Business Employees (including any Liabilities to Transferred Business Employees for payments in respect of earned but unused
vacation time that arise as a result of the transfer of employment contemplated by this Article VI). Purchaser shall allow (or direct an Operator to allow) Transferred Business Employees to use the vacation, sick leave and personal time
recognized or established in accordance with the first sentence of this Section 6.6 in accordance with the terms of the Collective Bargaining Agreements and the Seller Group programs in effect immediately prior to the
Closing Date (in addition to, and not in lieu of, any vacation accrued or earned under the applicable vacation plans or policies of Purchaser or its Affiliates on or following the Closing). 

Section 6.7 Cash Incentive Compensation. 

(a) If the Closing Date occurs before 2021 cash incentive awards are paid in the ordinary course of business, Seller shall pay, or cause to be
paid, to each annual bonus-eligible Transferred MAST Employee a cash payment equal to the product of (a) his or her earned annual cash incentive award under the applicable Seller Benefit Plan based on 2021 actual performance results, as
reasonably determined by Seller consistent with past practice (with such adjustments to performance metrics made in good faith to account for any shortened performance period), multiplied by (b) a fraction, the numerator of which is the total
number of days between January 1, 2021 and the earlier of December 31, 2021 or the Closing Date and the denominator of which is 365, which payment shall be made following the determination of performance results in the ordinary course of
business but in any case no later than March 15, 2022. In addition, if the Closing Date occurs after December 31, 2021, Seller shall pay, or cause to be paid, to each annual bonus-eligible Transferred MAST Employee a cash payment equal to
the product of (a) his or her target annual cash incentive award under the applicable Seller Benefit Plan, multiplied by (b) a fraction, the numerator of which is the total number of days between January 1, 2022 and the Closing Date
and the denominator of which is 365, which payment shall be made on or prior to the Closing. 

  
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 (b) In addition, Seller shall be solely responsible for and shall retain all Liabilities
under the retention letter agreements entered into with the Business Employees. Purchaser shall cooperate with Seller and its Affiliates to facilitate payment of amounts under the retention letter agreements, including, if requested by Seller, by
paying such amounts to the applicable Transferred Business Employees subject to applicable Tax withholding and remitting the Tax withholding and payroll Taxes to the appropriate taxing authority, provided that Seller shall reimburse Purchaser for
all such amounts, including employer payroll Taxes, within thirty (30) days following payment to the employees. 
 Section 6.8
Defined Contribution Plans. To the extent any Transferred Business Employee has a loan outstanding as of the Closing Date under any Seller Benefit Plan that is intended to be qualified under Section 401(a) of the Code (each, a
“Seller 401(k) Plan”), Seller shall use reasonable best efforts to cause such loan to remain outstanding (and not go into default) until the rollover of the Transferred Business Employee’s Seller 401(k) Plan account balance and
loan note to a 401(k) plan sponsored by Purchaser or its Subsidiary (or, if directed by Purchaser, an Operator). Effective as of the Closing or as soon as reasonably practicable thereafter, Purchaser (or, if directed by Purchaser, an Operator) shall
create or designate defined contribution plans (collectively, the “Purchaser DC Plans”) for the benefit of the Transferred Business Employees who are participants in one or more of the Seller 401(k) Plans immediately prior to the
Closing. Each Purchaser DC Plan shall provide for the receipt from applicable Transferred Business Employees of “eligible rollover distributions” (as such term is defined under Section 402 of the Code), including notes corresponding
to loans. Purchaser and Seller shall, and shall cause their respective Affiliates to, cooperate in good faith in order to facilitate any such distribution or rollover and to effect an eligible rollover distribution for those Transferred Business
Employees who elect to roll over their account balances, including notes, directly into a Purchaser DC Plan. 
 Section 6.9 Seller
Benefit Plans; Transferred Entity Benefit Plans. 
 (a) Effective as of the Closing, each Transferred Business Employee shall cease to be
an employee of Seller and its Affiliates and shall cease to participate in any Seller Benefit Plan as an active employee. For the avoidance of doubt, from and after the Closing, Seller shall retain all Liabilities arising under, in connection with
or in relation to any of the Seller Benefit Plans except as otherwise expressly provided herein, including all (i) health claims for expenses incurred by any Transferred Business Employee or his or her dependents, (ii) claims for
short-term and long-term disability income benefits incurred by any Transferred Business Employee and (iii) claims for group life, travel and accident, and accidental death and dismemberment insurance benefits incurred by any Transferred
Business Employee, in each case, prior to the Closing. Purchaser shall be, or shall cause its Affiliates (or, if directed by Purchaser, an Operator) to be, responsible for all (A) health claims for expenses incurred by any Transferred Business
Employee or his or her dependents, (B) claims for short-term and long-term disability income benefits incurred by any Transferred Business Employee and (C) claims for group life, travel and accident, and accidental death and dismemberment
insurance benefits incurred by any Transferred Business Employee, in each case, on or after the Closing (except to the extent such claims arise under a Seller Benefit Plan). The following claims and liabilities shall be deemed to be incurred as
follows: (1) health benefits (including hospital expenses), upon provision of the services, materials or supplies comprising any such benefits and (2) short-term and long-term disability, life, accidental death and dismemberment and
business travel accident insurance benefits, upon the death, illness, injury or accident giving rise to such benefits. Seller and its Affiliates shall be responsible for all claims for workers’ compensation

  
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benefits that are incurred prior to the Closing (including any injuries identifiably sustained by Transferred Employees after the Transfer Time that are aggravations or reinjuries of injuries or
illnesses that were sustained on or before the Closing and treatment after the Closing required by Transferred Employees following complete recovery from injuries sustained on or before the Closing) by any Transferred Business Employee. Purchaser
and its Affiliates (or, if directed by Purchaser, an Operator) shall be responsible for all claims for benefits that are incurred on or after the Closing by any Transferred Business Employee. A claim for workers’ compensation benefits shall be
deemed to be incurred when the event giving rise to the claim occurs. If such workers’ compensation event occurs over a period both preceding and following the Closing, the claim shall be the joint responsibility and liability of Seller and
Purchaser and shall be equitably apportioned between Seller and Purchaser based upon the relative periods of time that the event transpired preceding and following the Closing. 

(b) Except as otherwise expressly provided in this Article VI, no Seller Benefit Plan shall be transferred, whether directly or
indirectly, to an Operator, Purchaser or a Transferred Entity in connection with the transactions contemplated herein, and Purchaser shall not have or assume any obligations under, or Liabilities with respect to, or receive any right or interest in
any trusts relating to, any assets of or any insurance, administration or other Contracts, or related obligations pertaining to, any Seller Benefit Plan (and Seller and its Affiliates shall retain all such obligations, Liabilities and assets). For
the avoidance of doubt, except as otherwise expressly provided in this Article VI, as of the Closing, neither Purchaser (or its Affiliates) nor an Operator shall assume, or shall cause the Transferred Entities to assume or retain, as the case
may be, sponsorship of, and all Liabilities and other obligations with respect to, the Seller Benefit Plans. 
 (c) Seller Parent shall
retain any obligations and Liabilities (including any liability for Tax and settlement and administration obligations) in respect of all equity-based incentive compensation awards that were granted to Transferred Business Employees by Seller Parent
or any of its Affiliates (including restricted stock units, whether time-based or performance-based) prior to the Closing and remain outstanding as of the Closing (the “Outstanding Equity Awards”), and neither Purchaser (or any of
its Affiliates) nor an Operator shall assume or otherwise be liable for any Liabilities (including liabilities for Taxes) with respect to such Outstanding Equity Awards. 

Section 6.10 Pension Transfer. 

(a) Effective as of the Closing, Purchaser or one of its Subsidiaries (or, if directed by Purchaser, an Operator) shall have in effect a
defined benefit pension plan intended to be qualified under Section 401(a) of the Code (the “Purchaser Pension Plan”) and related trust intended to be exempt from federal income tax under Section 501(a) of the Code and
covering those Pension Participants who participated in the Seller Pension Plan. Effective as of the Closing, each Pension Participant shall cease to be a participant in the Seller Pension Plan and shall be eligible to participate in the Purchaser
Pension Plan. Purchaser shall cause the Purchaser Pension Plan and upon the transfer of such assets, Purchaser (or, if applicable, an Operator) and the Purchaser Pension Plan shall assume all Liabilities under the Seller Pension Plan with respect to
Pension Participants whose benefits are transferred to the Purchaser Pension Plan. The Purchaser Pension Plan shall contain terms substantially similar to the terms of the Seller Pension Plan with respect to the final average pay component,
consistent with the requirements under the applicable Collective Bargaining Agreements and shall provide that the service of the Pension Participants shall be recognized for all purposes to the extent such service was recognized under the Seller
Pension Plan. 

  
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 (b) As soon as practicable, but in no event more than thirty-five (35) days after the
Closing (the “Pension Transfer Deadline”), Seller shall cause the calculation and transfer to the trust funding the Purchaser Pension Plan from the trust funding the Seller Pension Plan of assets equal to the present value of the
“accumulated benefit obligations” in respect of the Pension Participants (and each alternative payee of such person) as of the Closing, as determined by Aon Consulting, Inc. (the “Seller Actuary”) using the actuarial
assumptions and methodology consistent with those used by Seller in its measurement of the accumulated benefit obligation of the Seller Pension Plan under Accounting Standards Codification Section 715 subject to any changes made to such
actuarial assumptions (including the discount rate) and methodology in the ordinary course of business consistent with past practice of Seller, and subject to any requirements under the Code and ERISA (the “ABO Amount”); plus
(ii) for the period between the Closing and the date such assets are transferred (the “Pension Transfer Date”), an interest increment on the unpaid ABO Amount at the rate equal to the yield on the three-month U.S. Treasury Bill
rate as of the Closing (such rate of interest, the “Interest Rate”); less (iii) any benefit payments that are made from the Seller Pension Plan to each Pension Participant for the period between the Closing and the Pension
Transfer Date; less (iv) any costs or expenses incurred by Seller in respect of Pension Participant benefits of the Seller Pension Plan for the period between the Closing and the Pension Transfer Date, less (v) interest at the Interest
Rate on each such benefit payment for the period from the date of such payment is made to the last day of the post-Closing period (the sum of (i) through (v), the “Pension Transfer Amount”). The transfer of the amount from the
trust funding the Seller Pension Plan to the trust funding the Purchaser Pension Plan shall be made in cash and subject to compliance with applicable notice requirements to any Governmental Entity and receipt by Seller of a copy of the Purchaser
Pension Plan, related trust and resolutions reflecting adoption of such plan and trust. Notwithstanding the foregoing, if the asset transfer contemplated by this Section 6.10(b) is not made by the Pension Transfer Deadline,
then no later than the Pension Transfer Deadline, Seller shall direct the transfer from the trust funding the Seller Pension Plan to the trust funding the Purchaser Pension Plan an amount in cash equal to ninety percent (90%) of Seller
Actuary’s reasonable estimate of the Pension Transfer Amount. In the case where 90% of the reasonable estimate is transferred or if the full Pension Transfer Amount was otherwise not transferred, Seller shall direct the transfer of the
remaining amount in cash contemplated to be transferred by this Section 6.10(b) (for the avoidance of doubt, including interest at the Interest Rate for the period from the Closing Date through the date of such transfer)
within ninety (90) days following the Closing Date (or such later time as agreed in writing by Seller and Purchaser taking into account the dispute resolution set forth in Section 6.10(f)). If the estimate amount
transferred exceeds the Pension Transfer Amount, Purchaser shall direct the transfer from the trust funding the Purchaser Pension Plan to the trust funding the Seller Pension Plan, cash equal to such excess amount, including interest at the Interest
Rate for the period from the date of the estimated transfer to the date of such transfer back. 

  
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 (c) Purchaser and Seller shall cooperate in (i) making all filings required under the
Code or ERISA, (ii) implementing all appropriate communications with the Pension Participants, (iii) transferring appropriate records, and (iv) taking all such other actions as may be necessary and appropriate to implement the
provisions of this in a timely manner. 
 (d) As soon as practical after the Closing Date, Purchaser (or one of its Affiliates) shall or
Purchaser shall cause an Operator to, file an application with the IRS for a favorable determination letter under Section 401(a) of the Code with respect to the Purchaser Pension Plan and shall take any and all reasonable action, including the
adoption of any amendment requested by the IRS, as shall be necessary to obtain such determination letter. The transfers under this Section 6.10 may be made prior to, but shall be subject to the subsequent receipt of, a
favorable determination letter issued by the IRS with respect to the Purchaser Pension Plan, copies of which shall be promptly furnished to Seller upon issuance. Purchaser shall (i) provide Seller with a copy of the application prior to its
submission to the IRS for Seller’s review, edit and other adjustments and copies of all correspondence with the IRS relating to the submission and (ii) shall consider in good faith all of Seller’s edits and adjustments, and
(iii) provide Seller with a summary of any meetings or calls with the IRS within three (3) days after the occurrence of each such meeting or call. 

(e) Following the transfer of the Pension Transfer Amount from the trust funding the Seller Pension Plan to the trust funding the Purchaser
Pension Plan, the Seller, its Affiliates and the Seller Pension Plan shall have no Liability to or with respect to any Pension Participant with respect to their accrued benefits under the Seller Pension Plan, and Purchaser shall indemnify and hold
harmless Seller, its Affiliates and the Seller Pension Plan from all Liabilities, costs and expenses that may result to Seller or such Affiliates or the Seller Pension Plan from any claim by or on behalf of any Pension Participant for any benefit
payable under the Seller Pension Plan or the failure of the Purchaser Pension Plan to constitute a qualified plan. 
 (f) Seller shall cause
the Seller Actuary to provide Purchaser a report of the Seller Actuary’s determinations of the Pension Transfer Amount under Section 6.10(b) within fifteen (15) days of the Closing Date. If Purchaser disputes the
accuracy of any calculation with fifteen (15) days of receipt of such report, Purchaser and Seller shall cooperate to identify the basis for such disagreement and act in good faith to resolve such dispute. To the extent that a dispute is
unresolved after a thirty (30)-day period following identification of such dispute, such dispute shall be resolved by an independent actuarial firm selected jointly by the Purchaser’s actuary and the
Seller Actuary. The determination of such firm shall be made within thirty (30) days of the engagement of such firm and shall be final and binding on the parties hereto. The costs and expenses of such firm shall be shared equally by the
Purchaser and Seller. Any amounts that the independent actuarial firm determines are required to be paid as a result of its determination under this Section 6.10(f) shall be paid within ten (10) days following such
determination (plus to the extent applicable, interest at the Interest Rate, for the relevant period). 
 Section 6.11
Post-Employment Welfare Benefits. From and after the Closing, the Purchaser (or, if directed by Purchaser, an Operator) shall assume and become solely responsible for any and all Liabilities of the Seller and its Affiliates, including under
any welfare benefit plan of Seller or its Affiliates in respect of each Transferred Business Employee or the beneficiary or dependent of each such Transferred Business Employee to provide post-employment welfare benefits to such Transferred Business
Employee, beneficiary or dependent following termination of employment. For the avoidance of doubt, no assets shall be transferred to Purchaser or an Operator with respect to post-employment welfare benefits. 

  
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 Section 6.12 Cooperation. Purchaser and Seller will, and will cause their
respective Subsidiaries to, each reasonably cooperate with the other to the extent permitted by applicable Law to effect the transactions contemplated by this Article VI, including (i) exchanging information and data relating to workers’
compensation, employee benefits and employee benefit plans, (ii) sharing with each other and their respective agents and vendors all participant information reasonably necessary for the efficient and accurate administration of their respective
employee benefit plans with respect to Business Employees, (iii) resolving any and all employment-related claims regarding Business Employees, and (iv) in responding to questions posed by employees or any other individual service
providers. Without limiting the generality of the foregoing, each party will, and will cause its Affiliates to, provide the other party with a reasonable opportunity to review and comment on any material written communications intended for Business
Employees that such party or its Affiliates desire to send to Business Employees prior to the Closing. Neither party and its Affiliates shall not make any material communications regarding terms and conditions of employment or employee benefits
following the Closing without the consent of the other party, which shall not be unreasonably withheld, conditioned or delayed. Seller and Purchaser shall, and shall cause their respective Subsidiaries to, each cooperate with the other in good faith
to provide any employment-related notice required by Law or Contract in connection with the transactions contemplated by this Agreement. 

Section 6.13 No Third Party Beneficiaries. Without limiting the generality of Section 11.5, nothing in
this Agreement is intended to or shall (a) be treated as an amendment to, or be construed as amending, any Seller Benefit Plan, Transferred Entity Benefit Plan or other benefit plan, program or agreement sponsored, maintained or contributed to
by Seller, any Transferred Entity, Purchaser or any of their respective Affiliates, (b) prevent Purchaser or its Affiliates from terminating any Transferred Entity Benefit Plan or any other benefit plan in accordance with its terms,
(c) prevent Purchaser or its Affiliates, on or after the Closing Date, from terminating the employment of any Business Employee, or (d) except as set forth in Section 11.5, confer any rights or remedies (including
third party beneficiary rights) on any current or former director, employee, consultant or independent contractor of Seller, any Transferred Entity, Purchaser or any of their respective Affiliates or any beneficiary or dependent thereof or any other
Person. 
 Article VII 
 TAX
MATTERS 
 Section 7.1 Cooperation and Exchange of Information. 

(a) Each party to this Agreement shall, and shall cause its Affiliates to, provide to the other party to this Agreement such cooperation,
documentation and information as either of them reasonably may request in (i) preparing or filing any Tax Return, amended Tax Return or claim for refund, (ii) determining a Liability for Taxes or a right to refund of Taxes,
(iii) participating in any Tax Proceeding or (iv) preparing the Purchaser’s Allocation. Each party shall make its employees reasonably available on a mutually convenient basis at its cost to provide an explanation of any documents or
information so provided. 

  
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 (b) Each party hereto shall retain all Tax Returns, schedules and work papers, and all
material records and other documents relating to Tax matters, of the relevant entities or assets for their respective Tax periods ending on or prior to, or including, the Closing Date until the later of (i) the expiration of the statute of
limitations for the Tax periods to which the Tax Returns and other documents relate, or (ii) eight (8) years following the due date (without extension) for such Tax Returns. 

(c) Purchaser shall be responsible for the preparation and filing of any Tax Return required to be filed by a Transferred Entity after the
Closing; provided, that, if any such Tax Return reflects Taxes with respect to any Restructuring Transaction, Seller shall be entitled to prepare such Tax Return and Purchaser shall timely file such Tax Return as prepared by Seller; provided,
further, that Seller shall provide a draft to Purchaser for Purchaser’s review and reasonable comment thirty (30) days prior to the due date for filing such Tax Return (or, in the case of such a Tax Return relating to any Taxes other than
income Taxes, such later date as is reasonably practicable). 
 (d) Notwithstanding anything to the contrary in this Agreement, in no event
shall Purchaser or any of its Affiliates be entitled to receive or view, or have any rights with respect to any Tax Proceeding relating to, (i) any Tax Return of Seller Parent or any of its Affiliates (other than the Transferred Entities) or
(ii) any consolidated, affiliated, fiscal, loss sharing, combined or similar group of which Seller Parent or any of its Affiliates (other than a Transferred Entity) is a member or any Combined Tax Return. 

(e) The Parties agree to, and to cause their respective Affiliates to, cooperate in good faith and use their commercially reasonable efforts to
take such actions as may be reasonably necessary to mitigate, reduce or eliminate any Tax that could be imposed in connection with the Purchaser Restructuring Transactions or the Bifurcation for which Purchaser or its Affiliates could be liable
pursuant to Section 10.3(d). Seller and Purchaser shall each promptly notify the other if such Party determines that any such Tax could reasonably be expected to be imposed, and the Parties shall, and shall cause their respective Affiliates to,
use commercially reasonable efforts to cooperate prior to taking any action that could reasonably be expected to result in any such Tax being imposed. 

Section 7.2 Purchase Price Allocation. 

(a) No later than sixty (60) days after the Closing Date, Purchaser shall deliver to Seller a proposed allocation of the Base Purchase
Price and any other amounts treated as consideration for Tax purposes (the “Aggregate Base Purchase Price”) among the assets of the Transferred Entities (and any other assets that, for Tax purposes, are treated as assets purchased
by Purchaser pursuant to this Agreement and any Ancillary Agreement) determined in a manner that is consistent with Section 1060 of the Code and the Treasury Regulations promulgated thereunder and any other relevant provisions of applicable Tax
Law (“Purchaser’s Allocation”). If Seller disagrees with Purchaser’s Allocation, Seller may, within thirty (30) days after delivery of Purchaser’s Allocation, deliver a written notice to Purchaser
to such effect, specifying those 

  
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items as to which Seller disagrees and setting forth Seller’s proposed allocation (“Seller’s Allocation Notice”). If Seller’s Allocation Notice is
duly and timely delivered, Seller and Purchaser shall, during the thirty (30) days following such delivery, use commercially reasonable efforts to reach agreement on the disputed items or amounts in order to determine the allocation of the
Aggregate Base Purchase Price. If Seller provides Purchaser with the Seller’s Allocation Notice within such thirty (30) day period, Seller and Purchaser shall cooperate in good faith to resolve any such disagreement. If the parties fail to
resolve their differences over the disputed items within thirty (30) days following the receipt of the Seller’s Allocation Notice, Seller and Purchaser shall forthwith jointly request that the Independent Accounting Firm make a
determination as to the disputed items in accordance with this Agreement, which determination shall be binding on the parties. Any allocation of the Aggregate Base Purchase Price determined pursuant to the decision of the Independent Accounting Firm
shall incorporate, reflect and be consistent with this Section 7.2. The fees and expenses of the Independent Accounting Firm shall be borne fifty percent (50%) by Purchaser and fifty percent (50%) by Seller. The allocation,
as prepared by Purchaser if no Seller’s Allocation Notice has been given, as adjusted pursuant to any agreement between Seller and Purchaser or as determined by the Independent Accounting Firm in accordance with this
Section 7.2 (the “Allocation”), shall be conclusive and binding on the parties hereto absent manifest error. The Allocation, if any, shall be adjusted, as necessary, to reflect any difference between the
Aggregate Base Purchase Price and the Final Purchase Price pursuant to Section 6.4 (and any other amounts treated as consideration for Tax purposes) and any subsequent adjustments to the Final Purchase Price pursuant to
Section 6.4 (and any other amounts treated as consideration for Tax purposes). Any such adjustment shall be allocated to the asset, or assets (if any), to which such adjustment is attributable; provided, that to the
extent there are no such assets, such adjustment shall be allocated pro rata among the assets sold. 
 (b) Neither Seller nor
Purchaser shall (and each shall cause its Affiliates not to) take any position inconsistent with the Allocation on any Tax Return or in any Tax Proceeding or otherwise; provided, however, that nothing contained herein shall prevent Purchaser or
Seller from settling in good faith any proposed deficiency or adjustment by any taxing authority based upon or arising out of the Allocation, and neither Purchaser nor Seller shall be required to litigate before any court any proposed deficiency or
adjustment by any taxing authority challenging the Allocation. 
 Section 7.3 Tax Sharing Agreements. On or before the Closing
Date, the rights and obligations of the Transferred Entities pursuant to all Tax sharing, Tax Allocation and Tax indemnity agreements or arrangements (other than this Agreement), if any, to which any of the Transferred Entities, on the one hand, and
any member of the Seller Group (other than the Transferred Entities), on the other hand, are parties, shall terminate, and neither any member of the Seller Group (other than the Transferred Entities), on the one hand, nor any of the Transferred
Entities, on the other hand, shall have any rights or obligations to each other after the Closing in respect of such agreements or arrangements. 

  
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 Section 7.4 Tax Treatment. Except to the extent otherwise required by applicable
Law, Seller, Purchaser, the Transferred Entities and their respective Affiliates shall treat (a) the acquisition of the Units of the Transferred Company pursuant to this Agreement as a purchase and sale of all of the assets of the Transferred
Company (and of any other Transferred Entity that is a disregarded entity for U.S. federal income tax purposes) that constitutes an “applicable asset acquisition” within the meaning of Section 1060 of the Code and (b) any and all
payments under Section 2.7 and any and all indemnification payments under this Agreement (pursuant to Article X or otherwise) as an adjustment to the Final Purchase Price for Tax purposes. 

Section 7.5 Certain Post-Closing Tax Covenants. Purchaser shall not, and shall cause its Affiliates (including, following the
Closing, the Transferred Entities) not to, (a) make any election with respect to any Transferred Entity (including any entity classification election pursuant to Treasury Regulations
Section 301.7701-3), which election would be effective on or prior to the Closing Date or (b) take any action or enter into any transaction after the Closing on the Closing Date that is outside the
ordinary course of business with respect to the Transferred Entities. 
 Section 7.6 Transfer Taxes. Notwithstanding anything to
the contrary in this Agreement (other than Section 10.3(d)(iii)), Purchaser and Seller shall each be responsible for fifty percent (50%) of any sales, use, transfer, real property transfer, controlling interest transfer, registration,
documentary, stamp, value added or similar Taxes (“Transfer Taxes”) and related fees and costs imposed on the transfer of the Units from Seller to Purchaser pursuant to Section 2.1 of this Agreement. The
party responsible under applicable Law for filing the Tax Returns with respect to any such Transfer Taxes shall prepare and timely file such Tax Returns, promptly provide a copy of such Tax Return to the other party and shall timely pay to the
appropriate taxing authority the full amount of any Taxes shown as due on such Tax Return; provided, that, the other party shall reimburse the party responsible for paying such Transfer Taxes its applicable share no later than five
(5) days after the date such Transfer Taxes are due. Seller and Purchaser shall, and shall cause their respective Affiliates to, cooperate to timely prepare and file any Tax Returns or other filings relating to such Transfer Taxes, including
any claim for exemption or exclusion from the application or imposition of any such Transfer Taxes; provided, that notwithstanding any of the foregoing, neither Seller nor any of its Affiliates nor Purchaser nor any of its Affiliates shall be
required to file any claim for exemption or exclusion from the application or imposition of any such Transfer Taxes, or any claim for any reduction thereof, if Seller or Purchaser, as applicable, determines in its reasonable discretion that the
filing of such claim or any related action would have a material and adverse effect on Seller or any of its Affiliates or Purchaser or any of its Affiliates, as applicable. 

Article VIII 
 CONDITIONS TO
OBLIGATIONS TO CLOSE 
 Section 8.1 Conditions to Obligation of Each Party to Close. The respective obligations of each party to
effect the Sale shall be subject to the satisfaction or waiver by Seller and Purchaser at or prior to the Closing of the following conditions: 

(a) Regulatory Approvals. (i) Any waiting period applicable to the consummation of the Sale under the HSR Act shall have expired or
been terminated and (ii) the consents, authorizations and approvals required to be obtained in connection with the consummation of the Sale from any Governmental Entities set forth on Section 8.1(a) of the Seller
Disclosure Schedule (each, a “Required Approval”) shall have been obtained (or any applicable waiting period thereunder shall have expired or been terminated). 

  
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 (b) No Injunctions. No Governmental Entity of competent jurisdiction shall have
issued an Order that remains in effect and enjoins or prohibits the consummation of the Sale (collectively, the “Legal Restraints”). 

Section 8.2 Conditions to Purchaser’s Obligation to Close. Purchaser’s obligation to effect the Sale shall
be subject to the satisfaction or waiver by Purchaser at or prior to the Closing of the following additional conditions: 
 (a)
Representations and Warranties. (i) The representations and warranties of Seller set forth in Section 3.1, Section 3.2, Section 3.3 and
Section 3.18 shall be true and correct in all respects as of the date hereof and as of the Closing Date as if made on and as of the Closing Date, except where the failure of any such representation and warranty to be true
and correct is de minimis; (ii) the representations and warranties of Seller set forth in Section 3.6(b) shall be true and correct as of the date hereof and as of the Closing Date as if made on and as of
the Closing Date and (iii) each of the other representations and warranties of Seller contained in Article III shall be true and correct (without giving effect to any limitation as to “materiality” or “Material Adverse
Effect” or any similar limitation or qualification contained herein) as of the date hereof and as of the Closing Date as if made on and as of the Closing Date, except (A) in the case of each of clauses (i)and (iii), representations and
warranties that are made as of a specific date shall be true and correct (subject to the standards set forth herein) only on and as of such date and (B) in the case of clause (iii), where the failure of such representations and warranties to be
true and correct would not reasonably be expected to have, individually or in the aggregate, a Business Material Adverse Effect. 
 (b)
Covenants and Agreements. The covenants and agreements of Seller to be performed on or before the Closing Date in accordance with this Agreement shall have been performed in all material respects. 

(c) Officer’s Certificate. Purchaser shall have received a certificate, dated as of the Closing Date and signed on
behalf of Seller by an executive officer of Seller, stating that the conditions set forth in Section 8.2(a) and Section 8.2(b) have been satisfied. 

(d) Release of Guarantors. All guarantees of each Transferred Entity pursuant to Indebtedness for borrowed money set forth on
Section 8.2(d) of the Seller Disclosure Schedule have been, or will at the Closing be, released. 

Section 8.3 Conditions to Seller’s Obligation to Close. The obligations of Seller to effect the Sale shall be
subject to the satisfaction or waiver by Seller at or prior to the Closing of the following additional conditions: 

  
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 (a) Representations and Warranties. (i) The representations and warranties of
Purchaser set forth in Section 4.1 and Section 4.2 shall be true and correct in all respects as of the Closing Date as if made on and as of the Closing Date, except where the failure of any such
representation and warranty to be true and correct is de minimis; and (ii) each of the other representations and warranties of Purchaser contained in Article IV shall be true and correct (without giving effect to any
limitation as to “materiality” or “Material Adverse Effect” or any similar limitation or qualification contained herein) as of the Closing Date as if made on and as of the Closing Date, except (A) in the case of each of
clauses (i) and (ii), representations and warranties that are made as of a specific date shall be true and correct (subject to the standards set forth herein) only on and as of such date and (B) in the case of clause (ii), where the
failure of such representations and warranties to be true and correct would not reasonably be expected to have, individually or in the aggregate, a Purchaser Material Adverse Effect. 

(b) Covenants and Agreements. The covenants and agreements of Purchaser to be performed on or before the Closing Date in accordance with
this Agreement shall have been performed in all material respects. 
 (c) Officer’s Certificate. Seller shall have
received a certificate, dated as of the Closing Date and signed on behalf of Purchaser by an executive officer of Purchaser, stating that the conditions set forth in Section 8.3(a) and
Section 8.3(b) have been satisfied. 
 Section 8.4 Frustration of Closing Conditions. Neither
Purchaser nor Seller may rely as a basis for terminating this Agreement on the failure of any condition set forth in this Article VIII to be satisfied if such failure was caused by such party’s failure to act in good faith or to use the
efforts to cause the Closing to occur as required by this Agreement, including Section 5.3. 
 Article IX 

TERMINATION 
 Section 9.1
Termination. This Agreement may be terminated at any time prior to the Closing: 
 (a) by mutual written consent of Seller and
Purchaser; 
 (b) by either Seller or by Purchaser, if: 

(i) the Closing shall not have occurred on or before August 12, 2022 (the “Outside Date”); provided, that the
right to terminate this Agreement under this Section 9.1(b)(i) shall not be available to any party to this Agreement whose failure to perform any material covenant or obligation under this Agreement has been
the cause of, or has resulted in, the failure of the Closing to occur on or before such date or to any party during the pendency of any Action brought by the other party for specific performance of this Agreement;  

(ii) Seller (in the case of a termination by Purchaser) or Purchaser (in the case of a termination by Seller) shall have materially breached
or failed to perform any of its respective representations, warranties, covenants or other agreements contained in this Agreement, and such breach or failure to perform (A) would give rise to the failure of a condition set forth in
Section 8.2(a), Section 8.2(b), Section 8.3(a) or Section 8.3(b), as applicable, and (B) (1) is incapable of being cured prior to the
Outside Date or (2) has not been cured prior to the date that is thirty (30) days from the date that the breaching or non-performing 

  
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party is notified in writing by the other party of such breach or failure to perform, which notice shall state the party’s intention to terminate this Agreement pursuant to this
Section 9.1(b)(ii) and the basis for such termination; provided, that the right to terminate this Agreement under this Section 9.1(b)(ii) shall not be available to any party to this
Agreement if such party shall have materially breached or failed to perform any of its covenants or agreements contained in this Agreement; or 

(iii) any Legal Restraint permanently enjoining or prohibiting consummation of the Sale shall be in effect and shall have become final and
nonappealable; provided, that the right to terminate this Agreement pursuant to this Section 9.1(b)(iii) shall not be available to any party to this Agreement whose failure to perform any material
covenant or obligation under this Agreement has been the cause of, or has resulted in, any such Legal Restraint; or 
 (c) by Seller, if
(i) all of the conditions in Section 8.1 and Section 8.2 (other than those conditions that by their nature are to be satisfied at the Closing, but which are capable of being satisfied) have
been satisfied or waived, (ii) Seller has irrevocably notified Purchaser in writing at least two (2) Business Days prior to such termination that Seller is ready, willing and able to consummate the Closing, and (iii) Purchaser has
failed to consummate the Closing within two (2) Business Days after the giving of such notice by Seller pursuant to clause (ii). 
 (d)
by either Purchaser or Seller (as applicable) pursuant to Section 5.22(e). 
 Section 9.2 Notice of
Termination. In the event of termination of this Agreement by either or both of Seller and Purchaser pursuant to Section 9.1, written notice of such termination shall be given by the terminating party to the other. 

Section 9.3 Effect of Termination. 

(a) In the event of termination of this Agreement by either or both of Seller and Purchaser pursuant to Section 9.1,
this Agreement shall terminate and become void and have no effect, and there shall be no Liability on the part of any party to this Agreement or its Affiliates or its or their respective officers, directors, equity holders, employees and other
Representatives, except as set forth in the Confidentiality Agreement or in this Section 9.3; provided, that termination of this Agreement shall not relieve Seller from Liability for willful and material breach of
this Agreement or willful and material failure to perform its obligations or agreements under this Agreement. Notwithstanding anything to the contrary contained herein, the provisions of Section 5.2, the second sentence of
Section 5.3(f), the last sentence of Section 5.15(d), Article XI (other than Section 11.11 in respect of any remedy of specific performance) and this
Section 9.3 shall survive any termination of this Agreement.
 (b) Purchaser shall pay or cause to be paid to
Seller (or its designee) $102,750,000 (the “Purchaser Termination Fee”) if (i) Seller validly terminates this Agreement pursuant to Section 9.1(b)(ii) or Section 9.1(c) (or if
this Agreement is terminated pursuant to another provision of Section 9.1 at a time when this Agreement is terminable by Seller pursuant to Section 9.1(b)(ii) or
Section 9.1(c)) and (ii) all of the conditions to Closing set forth in Section 8.1 and Section 8.3 are satisfied or duly waived at and as of such time (other than (x) the

  
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conditions to the Closing set forth in Section 8.1 that, by their nature, are to be satisfied at the Closing and which would reasonably be expected to be satisfied if
the Closing were then to occur and (y) the conditions to the Closing that are unsatisfied solely as a result of Purchaser’s breach of this Agreement giving rise to Seller’s right to terminate this Agreement pursuant to
Section 9.1(b)(ii)). Any fee due under this Section 9.3(b) shall be paid by wire transfer to the account specified in writing by Seller of
same-day funds within five (5) Business Days after such termination. 
 (c) If Purchaser fails
to promptly pay or cause to be paid any amount when due pursuant to Section 9.3(b), then Purchaser shall reimburse Seller for all reasonable, documented
out-of-pocket costs and expenses (including fees and disbursements of counsel) incurred in connection with the collection of such amounts and the enforcement by Seller
of its rights under this Section 9.3 within two (2) Business Days after Seller provides Purchaser with a notice of such amounts. In addition, if Purchaser fails to promptly pay any amount when due pursuant to this
Section 9.3, Purchaser shall pay or cause to be paid to Seller (or its designee) the amount due, together with interest accruing daily on such amount from the date on which such payment was due at an annual rate equal to
the prime rate (as published in the Wall Street Journal) in effect on the date such payment was due. 
 (d) Each of the parties acknowledges
that (i) the agreements contained in this Section 9.3 are an integral part of the transactions contemplated by this Agreement and (ii) without these agreements, the parties would not enter into this Agreement. The
parties acknowledge and hereby agree that the Purchaser Termination Fee if, as and when required to be paid pursuant to this Section 9.3, shall not constitute a penalty but shall be liquidated damages, in a reasonable
amount that shall compensate Seller in the circumstances in which it is payable for the efforts and resources expended and opportunities foregone while negotiating this Agreement and in reliance on this Agreement and on the expectation of the
consummation of the Sale, which amount would otherwise be impossible to calculate with precision. In no event shall Purchaser be required to pay to Seller (or its designee) more than one Purchaser Termination Fee pursuant to this Agreement. 

(e) In a circumstance in which Seller effects a termination of this Agreement described in Section 9.3(b) and the
Purchaser Termination Fee is paid in full when due pursuant to Section 9.3(b), the Purchaser Termination Fee shall be the sole and exclusive remedy of Seller and its Affiliates (including the Transferred Entities) against
Purchaser, the Equity Investors, the parties to the Debt Commitment Letter or Equity Commitment Letter and any of their respective general or limited partners, managers, officers, directors or employees for any loss suffered as a result of such
termination. For the avoidance of doubt, nothing in this Section 9.3(e) shall limit (i) any remedies of Seller prior to such termination, including specific performance pursuant to
Section 11.11, or (ii) any of Purchaser’s or its Affiliates’ obligations under or remedies available to Seller with respect to the Confidentiality Agreement, whether in law or in equity, whether in contract
or in tort or otherwise. 
 Section 9.4 Extension; Waiver. At any time prior to the Closing, either Seller, on the one hand, or
Purchaser, on the other hand, may (a) extend the time for performance of any of the obligations or other acts of the other, (b) waive any inaccuracies in the representations and warranties of the other contained in this Agreement or in any
document delivered pursuant to this Agreement or (c) waive compliance with any of the agreements or conditions of the other contained in this Agreement. Any such extension or waiver shall be valid only if set forth in an instrument in writing
signed by the party granting such extension or waiver. 

  
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 Article X 

INDEMNIFICATION 

Section 10.1 Survival of Representations, Warranties, Covenants and Agreements. 

(a) The representations and warranties of Seller and Purchaser contained in this Agreement and in any certificate delivered hereunder shall not
survive the Closing and shall terminate at the Closing. The covenants and other agreements set forth in Section 5.4 shall survive and remain in effect until the date that is sixty (60) days following the Closing. The
other covenants and other agreements contained in this Agreement that are to be performed prior to the Closing shall not survive the Closing and shall terminate at the Closing. The covenants and agreements contained in this Agreement that are to be
performed at or after the Closing shall survive the Closing until fully performed in accordance with their respective terms. 
 (b) Purchaser
(on behalf of itself, its Affiliates (including, following the Closing, the Transferred Entities) and its and their respective officers, directors, equity holders, employees, managers, agents and other Representatives) (collectively, the
“Purchaser Parties”) agrees that, to the fullest extent permitted by applicable Law, from and after the Closing and except as set forth in this Article X, under no circumstances shall Seller, any of its Affiliates (including,
prior to the Closing, the Transferred Entities) or any of its or their respective officers, directors, equity holders, employees, managers, agents and other Representatives (collectively, the “Seller Parties”) have any Liability to
any of the Purchaser Parties for any Losses relating to or arising from any actual or alleged breach of any representation or warranty or any covenant or agreement set forth in this Agreement (except the covenants and other agreements set forth in
Section 5.4) to have been performed by its terms prior to the Closing (or any certificate delivered hereunder) or in connection with the transactions contemplated hereby, including by virtue of or based upon any alleged
misrepresentation or inaccuracy in or breach of any of the representations or warranties or any covenant or agreement set forth in this Agreement (except the covenants and other agreements set forth in Section 5.4), any
certificate, instrument, opinion or other documents delivered hereunder, the subject matter of this Agreement, the ownership, operation, management, use or control of the Business or any of the Transferred Entities prior to the Closing, any of their
respective assets, or any actions or omissions prior to the Closing, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable Law. Purchaser acknowledges and
agrees that it is relying exclusively on, and its sole recourse for any actual or alleged breach of any representation or warranty shall be, the R&W Insurance Policy. Except as otherwise provided herein, from and after the Closing, Purchaser (on
behalf of the Purchaser Parties) hereby waives, to the fullest extent permitted by Law, any and all rights, claims and causes of action against, and shall have no recourse of any kind to, the Seller Parties under any theory of law or equity,
including under any control person liability theory, for any action or inaction of any of the Transferred Entities or the Business or their respective Affiliates, officers, directors, equity holders, managers, employees, agents or other
Representatives, in each case prior to the Closing. Nothing in this Article X shall prevent or limit or in any way affect the right of (i) any party to bring a claim for Fraud or (ii) Purchaser or its Affiliates to receive payment, to make
a claim or to otherwise seek coverage under the R&W Insurance Policy. Nothing in this Article X shall prevent or limit or in any way affect the right of (i) any party to bring a claim for Fraud or (ii) Purchaser or its Affiliates to
receive payment, to make a claim or to otherwise seek coverage under the R&W Insurance Policy. 

  
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 (c) Seller (on behalf of itself and the Seller Parties) agrees that, to the fullest extent
permitted by applicable Law, from and after the Closing and except as set forth in this Article X, under no circumstances shall the Purchaser Parties have any Liability to any of the Seller Parties for any Losses relating to or arising from
any actual or alleged breach of any representation or warranty or any covenant or agreement set forth in this Agreement to have been performed by its terms prior to the Closing (or any certificate delivered hereunder) or in connection with the
transactions contemplated hereby, including by virtue of or based upon any alleged misrepresentation or inaccuracy in or breach of any of the representations or warranties set forth in this Agreement, any certificate, instrument, opinion or other
documents delivered hereunder, the subject matter of this Agreement, the ownership, operation, management, use or control of the Business or any of the Transferred Entities prior to the Closing, any of their respective assets, or any actions or
omissions prior to the Closing, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable Law. Except as otherwise provided herein, from and after the Closing,
Seller (on behalf of the Seller Parties) hereby waives, to the fullest extent permitted by Law, any and all rights, claims and causes of action against, and shall have no recourse of any kind to, the Purchaser Parties under any theory of law or
equity, including under any control person liability theory, for any action or inaction of any of the Transferred Entities or the Business or their respective Affiliates, officers, directors, equity holders, managers, employees, agents or other
Representatives, in each case prior to the Closing. Nothing in this Article X shall prevent or limit or in any way affect the right of any party to bring a claim for Fraud. 

Section 10.2 Indemnification by Seller. Subject to the provisions of this Article X, effective as of and after the
Closing, Seller shall indemnify and hold harmless the Purchaser Parties from and against any and all Losses incurred or suffered by any of the Purchaser Parties to the extent arising out of or resulting from (a) any breach of any covenant or
agreement of Seller contained in this Agreement (i) set forth in Section 5.4 or (ii) that is to be performed at or after the Closing, or (b) any Excluded Liabilities, except as otherwise provided in the
Remediation and Access Agreement and with respect to Post-Closing Contamination as defined therein. 
 Section 10.3
Indemnification by Purchaser. Subject to the provisions of this Article X, effective as of and after the Closing, Purchaser and the Transferred Entities shall indemnify and hold harmless the Seller Parties from and against any
and all Losses incurred or suffered by any of the Seller Parties to the extent arising out of or resulting from (a) any breach of any covenant or agreement of Purchaser contained in this Agreement that is to be performed at or after the
Closing, (b) any Liability or Environmental Liability, other than Excluded Liabilities, arising in connection with Purchaser’s operation of the Business, including in any way related to any Post-Closing Contamination, as such term is
defined in the Remediation and Access Agreement, (c) the failure to pay any Liability when due to the extent reflected in, reserved for or taken into account in the determination of Working Capital or Indebtedness on the Final Closing
Statement, and (d) any Taxes imposed directly on (i) the actions and transactions contemplated by Section 

  
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5.19(b) that would not have been incurred if such actions and transactions had not occurred, (ii) the Bifurcation or item #4 of Section 5.19(a) of the Seller
Disclosure Schedule that would not have been incurred if the Bifurcation was not taking place or (iii) the direct sale by Seller, its Affiliate or the Transferred Company of the equity interests of PSEG Power Connecticut LLC, PSEG New Haven LLC
and PSEG Power New York LLC (in the case of this clause (iii), that would not have been incurred in the case of an indirect sale of those equity interests via a sale of PSEG Fossil LLC), for the avoidance of doubt, in each case, to the extent such
Taxes are (x) for a taxable period or portion thereof ending on or before the Closing Date or (y) in the case of any action that occurs after the Closing Date, for a taxable period or portion thereof that includes the date such action
occurred (collectively, “Purchaser Restructuring Transactions”); provided that any and all refunds, credits, overpayments or similar items or recoveries of the Taxes described in this clause (d) and paid by Purchaser or any of
its Affiliates shall be for the benefit of Purchaser. 
 Section 10.4 Indemnification Procedures. 

(a) A Person that may be entitled to be indemnified under this Agreement (the “Indemnified Party”) shall promptly notify the
party liable for such indemnification (the “Indemnifying Party”) in writing of any pending or threatened claim or demand asserted, or any other matter or circumstance that arises, that has given or could reasonably be expected to
give rise to a right of indemnification under this Agreement (including a pending or threatened claim or demand asserted by a third party against the Indemnified Party, such claim being a “Third Party Claim”); provided, that
the failure to provide such notice shall not release the Indemnifying Party from any of its obligations under this Article X, except if the Indemnifying Party is prejudiced by such failure, it being agreed that any such notice must describe
in reasonable detail the facts and circumstances with respect to the subject matter of such claim, demand, matter or circumstance, the provisions of this Agreement pursuant to which indemnification may be sought and an estimate of the Indemnified
Party’s Losses (if then known or reasonably estimable) and must be delivered prior to the expiration of any applicable survival period specified in Section 10.1. 

(b) Upon receipt of a notice for indemnity in respect of a Third Party Claim from an Indemnified Party pursuant to
Section 10.2 or Section 10.3, the Indemnifying Party shall be entitled, by notice to the Indemnified Party delivered within thirty (30) Business Days of the receipt of notice of such Third
Party Claim or such shorter period as set forth in the notice of a Third Party Claim as may be required by court proceeding in the event of a litigated matter, to assume the defense and control of such Third Party Claim (at the expense of such
Indemnifying Party); provided that the Indemnifying Party shall not be entitled to assume the control and defense of such Third Party Claim, and shall pay the reasonable fees and expenses of counsel retained by the Indemnified Party, if
(x) such Third Party Claim relates to, or arises in connection with, a criminal Action; (y) the Indemnified Party reasonably determines, based on the advice of legal counsel, that a material conflict of interest exists between the
applicable Indemnified Party and the Indemnifying Party with respect to the defense of such Third Party Claim (including if there are specific defenses available to the Indemnitee that are different from or additional to those available to the
Indemnifying Party and that could be materially adverse to the Indemnified Party); or (z) where the sole or primary relief sought by the Third Party Claim is an injunction or 

  
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other equitable relief against the Indemnified Party (other than equitable relief sought which is merely incidental to a request for monetary damages). If the Indemnifying Party does not assume
the defense and control of any Third Party Claim pursuant to this Section 10.4(b), the Indemnified Party shall be entitled to assume and control such defense (it being understood that (i) the Indemnified Party’s
right to indemnification for a Third Party Claim shall not be adversely affected by the Indemnified Party’s assumption of the defense of such Third Party Claim and (ii) the Indemnifying Party shall reimburse the Indemnified Party for the
costs of defending against such Third Party Claim (including reasonable attorneys’ fees and expenses to the extent that it is determined that such Indemnifying Party is liable under this Agreement with respect to such Third Party Claim), but
the Indemnifying Party may nonetheless elect to participate in the defense of such Third Party Claim with its own counsel and at its own expense. If the Indemnifying Party assumes the defense and control of a Third Party Claim, the Indemnifying
Party shall be entitled to select counsel, contractors and consultants at its expense. If the Indemnifying Party assumes the defense of a Third Party Claim, the Indemnifying Party agrees to keep the Indemnified Party reasonably informed regarding
the defense or settlement of such Third Party Claim and to consider in good faith any suggestions made by the Indemnified Party regarding the defense or settlement of such Third Party Claim. Each of Purchaser or Seller, as the case may be, shall,
and shall cause its Affiliates and Representatives to, reasonably cooperate with the Indemnifying Party in the defense of any Third Party Claim, including by furnishing books and records, personnel and witnesses, as appropriate for any defense of
such Third Party Claim. If the Indemnifying Party has assumed the defense and control of a Third Party Claim, it shall be authorized to consent to a settlement of, or the entry of any judgment arising from, any Third Party Claim, in its sole
discretion and without the consent of any Indemnified Party; provided, (except in the case of a Third Party Claim relating to Taxes for which Seller is responsible under Section 10.2) that such settlement or judgment
includes a full, unconditional release of the Indemnified Party from all liability in respect of such Third Party Claim and does not involve any injunctive relief or finding or admission of any violation of Law by any Indemnified Party or impose any
non-monetary obligation on the Indemnified Party and the Indemnifying Party shall pay or cause to be paid all amounts in such settlement or judgment. No Indemnified Party shall consent to the entry of any
judgment or enter into any settlement or compromise with respect to a Third Party Claim without the prior written consent of the Indemnifying Party (not to be unreasonably withheld, conditioned or delayed). 

(c) Notwithstanding anything to the contrary in this Agreement (including Section 10.4(b)), Seller shall have the
exclusive right to control in all respects, and neither Purchaser nor any of its Affiliates (including, following the Closing, the Transferred Entities) shall be entitled to participate in, any Tax Proceeding with respect to (A) any Tax Return
of Seller or any of its Affiliates (other than the Transferred Entities) or (B) any consolidated, affiliated, fiscal, loss sharing, combined or similar group of which Seller or any of its Affiliates (other than a Transferred Entity) is a member
or any Combined Tax Return. 
 Section 10.5 Exclusive Remedy. Except for the parties’ right to seek and obtain any
equitable relief pursuant to Section 11.11 or in the case of Fraud, Purchaser and Seller acknowledge and agree that, except with respect to claims under the Ancillary Agreements (which shall be governed exclusively by such
Ancillary Agreements), following the Closing, the indemnification provisions of Section 10.2 and Section 10.3 (and Section 2.8) shall be the sole

  
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and exclusive remedies of Seller and Purchaser (and the Seller Parties and Purchaser Parties, respectively) for any Liabilities or Losses (including any Liabilities or Losses from claims for
breach of contract, warranty, tortious conduct (including negligence), under Law or otherwise and whether predicated on common law, statute, strict liability, or otherwise) that any of them may at any time suffer or incur, or become subject to, as a
result of or in connection with this Agreement, the Sale or the other transactions contemplated hereby, including any breach of any representation or warranty in this Agreement by any party or any failure by any party to perform or comply with any
covenant or agreement that, by its terms, was to have been performed or complied with under this Agreement. In furtherance of the foregoing, from and after the Closing, each of Purchaser and Seller, on behalf of itself and the Purchaser Parties and
Seller Parties, respectively, waives, to the fullest extent permitted by applicable Law, any and all other rights, claims and causes of action (including rights of contribution, if any) known or unknown, foreseen or unforeseen, which exist or may
arise in the future, that they may have against Seller or any of the Seller Parties or Purchaser or any of the Purchaser Parties, as the case may be, as a result of or in connection with the ownership of the Units, the Sale or the other transactions
contemplated by this Agreement, whether arising under or based upon breach of contract, warranty, tortious conduct (including negligence), under Law or otherwise and whether predicated on common law, statute, strict liability, or otherwise;
provided, that nothing contained in this Section 10.5 shall constitute a waiver of any rights, claims, obligations or liabilities under this Agreement, the Ancillary Agreements or for Fraud. Without limiting the
generality of the foregoing, Purchaser hereby irrevocably waives any right of rescission it may otherwise have or to which it may become entitled. 

Section 10.6 Additional Indemnification Provisions. With respect to each indemnification obligation contained in this Agreement,
all Losses shall be reduced by (x) any net cash Tax benefit actually realized by the Indemnified Party or its Affiliates in connection with the incurrence of such Loss with respect to the taxable year of such Loss or any of the following two
taxable years and (y) the amount of any third party insurance or other indemnity or reimbursement proceeds that have been recovered by the Indemnified Party in connection with the facts giving rise to the right of indemnification (it being
agreed that if such proceeds in respect of such facts are recovered, or such net cash Tax benefit actually realized, by the Indemnified Party subsequent to the Indemnifying Party’s making of an indemnification payment in satisfaction of its
applicable indemnification obligation, such proceeds, or the amount of such net cash Tax benefit, as applicable, shall be promptly remitted to the Indemnifying Party to the extent such reduction of the Losses would have reduced the Indemnifying
Party’s indemnification obligations). Purchaser agrees that the R&W Insurance Policy shall expressly exclude any right of subrogation against Seller and its Affiliates (except in the case of Fraud). 

Section 10.7 Limitation of Liability. In no event shall any Indemnifying Party have Liability to any Indemnified Party for, and
Losses shall not be deemed to include, any consequential, special, incidental, exemplary, indirect, punitive or similar damages, or for any loss of future revenue, profits, income or generating capacity or other applicable metric, or for any
diminution in value damages measured as a multiple of earnings, revenue or other applicable metric, except for any such damages (a) to the extent imposed by a Governmental Entity pursuant to an Environmental Law, (b) to the extent actually
awarded and paid to a third party or (c) consequential, special, incidental and indirect damages to the extent that are the reasonably 

  
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foreseeable result of the breach or non-fulfillment of Seller or Purchaser of any agreement or covenant under this Agreement. In no event shall the
aggregate amount of Losses to which an Indemnified Party shall be entitled due to any breach of any covenant or other agreement of Seller or Purchaser contained in this Agreement that are to be performed prior to the Closing, exceed the Closing
Purchase Price. The parties understand and agree that nothing in this Agreement, including this Section 10.7, shall limit any claim for Fraud. In order to avoid double recovery by any Indemnified Party, the amount of any
Losses or Taxes to which an Indemnified Party is entitled to be indemnified with respect to any claim shall be calculated without duplication related to any Loss or Tax to the extent of any adjustment to the Base Purchase Price made pursuant to
Article II hereof for any accruals, reserves or provisions therefor reflected or included in the Closing Working Capital, the Closing Adjustments or the Post-Closing Adjustment, in each case with respect to such Loss or Tax. 

Section 10.8 Mitigation. Each of the parties agrees to use, and to cause its Affiliates to use, reasonable best efforts to
mitigate any Losses that may be indemnifiable hereunder upon and after becoming aware of any event or condition that would reasonably be expected to give rise to such Losses, and no Indemnifying Party shall be liable for any Losses to the extent
they arise out of or result from the Indemnified Party’s failure to use reasonable best efforts to mitigate such Losses. 

Section 10.9 Remediation and Access Agreement. In the event of any conflict between the terms of this Article X or
Section 5.17 and the Remediation and Access Agreement, the Remediation and Access Agreement shall control with respect to the subject matter thereof. 

Article XI 
 GENERAL PROVISIONS

 Section 11.1 Interpretation; Absence of Presumption. 

(a) It is understood and agreed that the specification of any dollar amount in the representations and warranties contained in this Agreement
or the inclusion of any specific item in the Seller Disclosure Schedule or Purchaser Disclosure Schedule is not intended to imply that such amounts or higher or lower amounts, or the items so included or other items, are or are not material or would
reasonably be expected to have, individually or in the aggregate, a Business Material Adverse Effect or Purchaser Material Adverse Effect, and no party shall use the fact of the setting of such amounts or the fact of inclusion of any such item in
the Seller Disclosure Schedule or Purchaser Disclosure Schedule in any dispute or controversy between the parties as to whether any obligation, item or matter not described in this Agreement or included in the Seller Disclosure Schedule or Purchaser
Disclosure Schedule is or is not material or would reasonably be expected to have, individually or in the aggregate, a Business Material Adverse Effect or Purchaser Material Adverse Effect for purposes of this Agreement. 

  
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 (b) For purposes of this Agreement, (i) words in the singular shall be held to include
the plural and vice versa, and words of one gender shall be held to include the other gender as the context requires; (ii) references to the terms Article, Section, paragraph, clause, Exhibit and Schedule are references to the Articles,
Sections, paragraphs and clauses of, or Exhibits and Schedules to, this Agreement unless otherwise specified; (iii) the terms “hereof,” “herein,” “hereby,” “hereto” and derivative or similar words refer
to this entire Agreement, including the Schedules and Exhibits hereto, and references to the “date hereof” shall mean the date of this Agreement; (iv) references to “$” shall mean U.S. dollars; (v) the word
“including” and words of similar import when used in this Agreement and the Ancillary Agreements shall mean “including without limitation,” unless otherwise specified; (vi) the word “or” shall not be exclusive;
(vii) references to “written” or “in writing” include in electronic form (including e-mail); (viii) Seller and Purchaser have each participated in the negotiation and drafting
of this Agreement and the Ancillary Agreements and if an ambiguity or question of interpretation should arise, this Agreement and the Ancillary Agreements shall be construed as if drafted jointly by the parties thereto and no presumption or burden
of proof shall arise favoring or burdening either party by virtue of the authorship of any of the provisions in this Agreement or the Ancillary Agreements; (ix) references to any statute shall be deemed to refer to such statute as amended
through the date hereof and to any rules or regulations promulgated thereunder as amended through the date hereof (provided, that for purposes of any representations and warranties contained in this Agreement that are made as of a specific
date, references to any statute shall be deemed to refer to such statute and any rules or regulations promulgated thereunder as amended through such specific date); (x) references to any Contract are to that Contract as amended, modified or
supplemented from time to time in accordance with the terms hereof and thereof; (xi) a reference to any Person includes such Person’s successors and permitted assigns; (xii) any reference to “days” shall mean calendar days
unless Business Days are expressly specified; (xiii) when calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in
calculating such period shall be excluded and if the last day of such period is not a Business Day, the period shall end on the next succeeding Business Day; (xiv) to the extent that this Agreement or any Ancillary Agreement requires an
Affiliate or Subsidiary of any party to take or omit to take any action, such covenant or agreement includes the obligation of such party to cause such Affiliate or Subsidiary to take or omit to take such action; (xv) whenever the words
“ordinary course” and “ordinary course of business” with respect to either party are used in this Agreement, they shall be deemed to be followed by the words “consistent with past practice” and shall take into account
the commercially reasonable actions taken by such party and its Affiliates in response to COVID-19 and the COVID-19 Measures; (xvi) where Seller is required to
“cause its Affiliates” to take any action under this Agreement, the term “Affiliate” shall include (A) Seller’s unrelated Affiliates and (B) if and to the extent permitted by applicable Law, Seller’s regulated
Affiliates (subject, in the case of clause (B), to Seller’s reasonable determination of the potential regulatory impacts of seeking to take such actions on Seller and its regulated Affiliates); and (xvii) amounts used in any calculations
for purposes of this Agreement may be either positive or negative (except as otherwise expressly provided herein), it being understood that the addition of a negative number shall mean the subtraction of the absolute value of such negative number
and the subtraction of a negative number shall mean the addition of the absolute value of such negative number. If the Closing shall occur, notwithstanding anything in this Agreement to the contrary, any payment or indemnity obligation of Purchaser
hereunder shall be a joint and several obligation of Purchaser and the Transferred Entities. Any reference in this Agreement to a specified date shall mean 5:00 p.m. (New York City time) on such date, unless another time is specified. In the event
of any conflict or inconsistency between the terms of this Agreement and any Ancillary Agreement, this Agreement shall control. Any document or item will be deemed “delivered”, “provided” or “made available” within the
meaning of this Agreement if such document or item is included in the Data Room at least three (3) day prior to the date hereof. 

  
 -95- 

 (c) Any disclosure with respect to a Section of this Agreement, including any Section of the
Seller Disclosure Schedule or the Purchaser Disclosure Schedule, shall be deemed to be disclosed for other Sections of this Agreement, including any Section of the Seller Disclosure Schedule or the Purchaser Disclosure Schedule, to the extent that
the relevance of such disclosure is reasonably apparent on its face. 
 Section 11.2 Headings; Definitions. The Article and
Section headings contained in this Agreement and the Ancillary Agreements are inserted for convenience of reference only and shall not affect the meaning or interpretation of this Agreement or the Ancillary Agreements. 

Section 11.3 Governing Law; Jurisdiction and Forum; Waiver of Jury Trial. 

(a) Except to the extent provided in Section 11.13, this Agreement shall be governed by, and construed and enforced
in accordance with, the laws of the State of Delaware, without regard to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of Delaware. In addition, each of the parties hereto irrevocably (i) submits to the personal jurisdiction of the Delaware Court of Chancery in and for New Castle County, or in the event (but only in the event) that such
Delaware Court of Chancery does not have subject matter jurisdiction over such dispute, the United States District Court for the District of Delaware, or in the event (but only in the event) that such United States District Court also does not have
jurisdiction over such dispute, any Delaware State court sitting in New Castle County, in the event any dispute (whether in contract, tort or otherwise) arises out of this Agreement or the transactions contemplated hereby, (ii) agrees that it
shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, (iii) waives any objection to the laying of venue of any Action relating to this Agreement or the transactions contemplated
hereby in such court, (iv) waives and agrees not to plead or claim in any such court that any Action relating to this Agreement or the transactions contemplated hereby brought in any such court has been brought in an inconvenient forum, and
(v) agrees that it shall not bring any Action relating to this Agreement or the transactions contemplated hereby in any court other than the Delaware Court of Chancery in and for New Castle County, or in the event (but only in the event) that
such Delaware Court of Chancery does not have subject matter jurisdiction over such Action, the United States District Court for the District of Delaware, or in the event (but only in the event) that such United States District Court also does not
have jurisdiction over such Action, any Delaware State court sitting in New Castle County. Each party agrees that service of process upon such party in any such Action shall be effective if notice is given in accordance with
Section 11.7. 
 (b) EACH PARTY TO THIS AGREEMENT WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
BROUGHT BY ANY OF THEM AGAINST THE OTHER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE ANCILLARY AGREEMENTS, THE CONFIDENTIALITY AGREEMENT OR ANY OTHER AGREEMENTS EXECUTED IN CONNECTION

  
 -96- 

 
HEREWITH OR THEREWITH OR THE ADMINISTRATION HEREOF OR THEREOF OR THE SALE OR ANY OF THE OTHER TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN. NO PARTY TO THIS AGREEMENT SHALL SEEK A JURY TRIAL IN
ANY LAWSUIT, PROCEEDING, COUNTERCLAIM OR ANY OTHER LITIGATION PROCEDURE BASED UPON, OR ARISING OUT OF, THIS AGREEMENT OR THE ANCILLARY AGREEMENTS, THE CONFIDENTIALITY AGREEMENT OR ANY OTHER AGREEMENTS EXECUTED IN CONNECTION HEREWITH OR THEREWITH OR
THE ADMINISTRATION HEREOF OR THEREOF OR THE SALE OR ANY OF THE OTHER TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN. NO PARTY SHALL SEEK TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL
CANNOT BE OR HAS NOT BEEN WAIVED. EACH PARTY TO THIS AGREEMENT CERTIFIES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH ABOVE IN THIS SECTION 11.3. NO PARTY HAS IN
ANY WAY AGREED WITH OR REPRESENTED TO ANY OTHER PARTY THAT THE PROVISIONS OF THIS SECTION 11.3 SHALL NOT BE FULLY ENFORCED IN ALL INSTANCES. 

Section 11.4 Entire Agreement. This Agreement, together with the Ancillary Agreements and the Exhibits and Schedules hereto and
thereto, and the Confidentiality Agreement, constitute the entire agreement between the parties with respect to the subject matter hereof and thereof and supersede any prior discussion, correspondence, negotiation, proposed term sheet, letter of
intent, agreement, understanding or arrangement, whether oral or in writing. 
 Section 11.5 No Third Party Beneficiaries.
Except for Section 5.9, Section 10.2, Section 10.3, this Section 11.5, Section 11.3,
Section 11.9, Section 11.13 and Section 11.15, in each case which are intended to benefit, and to be enforceable by, the parties specified therein, this Agreement,
together with the Ancillary Agreements and the Exhibits and Schedules hereto, are not intended to confer in or on behalf of any Person not a party to this Agreement (and their successors and assigns) any rights, benefits, causes of action or
remedies with respect to the subject matter or any provision hereof or thereof. 
 Section 11.6 Expenses. Except as otherwise
set forth in this Agreement, whether the transactions contemplated by this Agreement are consummated or not, all legal and other costs and expenses incurred in connection with this Agreement and the transactions contemplated by this Agreement shall
be paid by the party incurring such costs and expenses. 
 Section 11.7 Notices. All notices and other communications to be
given to any party hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered by hand, courier or overnight delivery service, or three (3) days after being mailed by certified or registered mail, return receipt
requested, with appropriate postage prepaid, or when given by e-mail transmission (so long as confirmation of such e-mail is received if requested), and shall be
directed to the address set forth below (or at such other address as such party shall designate by like notice): 

  
 -97- 

 (a) If to Seller: 

c/o Public Service Enterprise Group Inc 

80 Park Plaza 
 Newark, New
Jersey 07102 
 Attention:        Timothy P. Pellegrin 

                    Michael K. Hyun 

E-mail:
            timothy.pellegrin@pseg.com 

                       
  michael.hyun@pseg.com 
 with a copy (which shall not constitute notice) to: 

Wachtell, Lipton, Rosen & Katz 

51 West 52nd Street 
 New York,
New York 10019 
 Attention:        Andrew R. Brownstein 

          Benjamin M. Roth 

E-mail:            ARBrownstein@WLRK.com 

          BMRoth@WLRK.com 

(b) If to Purchaser: 
 Parkway
Generation, LLC 
 c/o ArcLight Capital Partners, LLC 

200 Clarendon Street, 55th Floor 

Boston, MA 02116 
 Attention:
General Counsel 
 E-mail: tburke@arclight.com 

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

Latham & Watkins LLP 

1271 Avenue of the Americas 

New York, New York 10020 

Attention:         David Allinson 

                    Jane Greyf 

E-mail:             David.Allinson@lw.com

                     Jane.Greyf@lw.com

 Section 11.8 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties to this
Agreement and their respective successors and assigns; provided, that no party to this Agreement may directly or indirectly assign any or all of its rights or delegate any or all of its obligations under this Agreement without the express
prior written consent of each other party to this Agreement, except that (a) Seller may transfer or assign, in whole or from time to time in part, its rights under this Agreement to any of its Affiliates, but any such transfer or assignment
shall not relieve Seller of any of its obligations hereunder, (b) Seller or Purchaser may make any pledge or collateral assignment of this Agreement or any 

  
 -98- 

 
of its rights hereunder to any of its collateral agents, administrative agents and/or lenders and (c) Purchaser may transfer or assign, in whole or from time to time in part, its rights
under this Agreement to any of its domestic Affiliates, but any such transfer or assignment shall not relieve Purchaser of any of its obligations hereunder. For the avoidance of doubt, in the event Seller, Purchaser, the Transferred Entities or any
of their respective successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all
of its properties and assets to any Person, then, in each case, proper provision shall be made so that the successors and assigns of Seller, Purchaser, the Transferred Entities or such successors or assigns, as the case may be, shall assume any
outstanding obligations of Seller or Purchaser, as the case may be, set forth in this Agreement. 
 Section 11.9 Amendments and
Waivers. This Agreement may not be modified or amended, except (a) by an instrument or instruments in writing signed by the party against whom enforcement of any such modification or amendment is sought and (b) in accordance with
Section 11.13. Any party to this Agreement may, only by an instrument in writing, waive compliance by the other party to this Agreement with any term or provision of this Agreement on the part of such other party to this
Agreement to be performed or complied with. The waiver by any party to this Agreement of a breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent breach. No failure or delay by any party in exercising
any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 

Section 11.10 Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or
invalidated. Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the fullest extent possible. 
 Section 11.11 Specific
Performance. 
 (a) The parties hereto agree that irreparable damage, for which monetary damages (even if available) would not be an
adequate remedy, would occur in the event that the parties hereto do not perform any provision of this Agreement in accordance with its specified terms or otherwise breach such provisions. Accordingly, the parties acknowledge and agree that the
parties shall be entitled to an injunction, specific performance and other equitable relief to prevent breaches or threatened breaches of this Agreement and to enforce specifically the terms and provisions hereof, in addition to any other remedy to
which they are entitled in law or in equity. Each of the parties agrees that it shall not oppose the granting of an injunction, specific performance and other equitable relief on the basis that any other party has an adequate remedy at law or that
any award of specific performance is not an appropriate remedy for any reason at law or in equity. Any party seeking an injunction or injunctions to prevent breaches or threatened breaches of this Agreement and to enforce specifically the terms and
provisions of this Agreement shall not be required to provide any bond or other security in connection with such order or injunction. 

  
 -99- 

 (b) Notwithstanding anything to the contrary in this Agreement or otherwise to the contrary,
it is acknowledged and agreed that Purchaser has an obligation hereunder to cause the Equity Financing to be funded, including by exercising its rights under the Equity Commitment Letter, subject to the requirements set forth below, and Seller shall
be entitled to specific performance (or any other equitable relief) to cause Purchaser to consummate the Closing and to cause Purchaser to draw down the Equity Financing under the Equity Commitment Letter to consummate the Closing only as set forth
in the following sentence. The right of Seller to specific performance to cause Purchaser to draw down the Equity Financing under the Equity Commitment Letter to consummate the Closing shall be subject to the requirements that (i) all of the
conditions in Section 8.1 and Section 8.2 (other than those conditions that by their nature are to be satisfied at the Closing, but which are capable of being satisfied) have been satisfied or
waived, (ii) the Debt Financing (or any alternative financing in accordance with Section 5.15) has been funded or shall be funded at the Closing if the Equity Financing is funded at the Closing, (iii) Seller has
irrevocably confirmed in a written notice to Purchaser that if specific performance is granted and the Equity Financing and Debt Financing (or any alternative financing in accordance with Section 5.15) are funded, then
Seller is ready, willing and able to consummate the Closing, and (iv) Purchaser has failed to consummate the Closing by the date by which the Closing is supposed to have occurred pursuant to Section 2.3. 

Section 11.12 Waiver of Conflicts Regarding Representation; Nonassertion of Attorney-Client Privilege. 

(a) Purchaser waives and shall not assert, and agrees to cause its Affiliates (including, following the Closing, the Transferred Entities) to
waive and not assert, any conflict of interest arising out of or relating to the representation after the Closing (the “Post-Closing Representation”) of Seller, any of its Affiliates or any equity holder, officer, employee, director
or other Representative of Seller or any of its Affiliates (any such Person, a “Designated Person”) in any matter involving this Agreement, the Ancillary Agreements or any other agreements or transactions contemplated hereby or
thereby, by any legal counsel currently representing Seller or any of its Affiliates or any other Designated Person in connection with this Agreement, the Ancillary Agreements or any other agreements or transactions contemplated hereby or thereby,
including Wachtell, Lipton, Rosen & Katz (any such representation, the “Current Representation”). 
 (b) Purchaser
waives and shall not assert, and agrees to cause its Affiliates (including, following the Closing, the Transferred Entities) to waive and not assert, any attorney-client or other applicable legal privilege or protection with respect to any
communication between any legal counsel and any Designated Person occurring during the Current Representation or in connection with any Post-Closing Representation, including in connection with a dispute with Purchaser or its Affiliates (including,
following the Closing, the Transferred Entities) (including in respect of any claim for indemnification by any Purchaser Party), it being the intention of the parties hereto that all such rights to such attorney-client and other applicable legal
privilege or protection and to control such attorney-client and other applicable legal privilege or protection shall be retained by Seller and that Seller and its Affiliates, and not 

  
 -100- 

 
Purchaser or its Affiliates (including, following the Closing, the Transferred Entities), shall have the sole right to decide whether or not to waive any attorney-client or other applicable legal
privilege or protection. Accordingly, from and after the Closing, none of Purchaser or any of its Affiliates (including, following the Closing, the Transferred Entities) shall have any access to any such communications or to the files of the Current
Representation, all of which shall be and remain the property of Seller and its Affiliates and not of Purchaser or its Affiliates (including, following the Closing, the Transferred Entities), or to internal counsel relating to such engagement, and
none of Purchaser or any of its Affiliates (including, following the Closing, the Transferred Entities) or any Person acting or purporting to act on their behalf shall seek to obtain the same by any process on the grounds that the privilege and
protection attaching to such communications and files belongs to Purchaser or any of its Affiliates (including, following the Closing, the Transferred Entities). Notwithstanding the foregoing, in the event that a dispute arises between Purchaser or
its Affiliates (including, following the Closing, the Transferred Entities), on the one hand, and a third party other than Seller or its Affiliates, on the other hand, Purchaser or its Affiliates may seek to prevent the disclosure of such
attorney-client privileged communications to such third party and request that Seller not permit such disclosure, and Seller shall consider such request in good faith. 

Section 11.13 Financing Provisions. Notwithstanding anything in this Agreement to the contrary, Seller, on behalf of itself and
its Affiliates and their respective Representatives, hereby: (a) agrees that any suit, action or proceeding, whether in law or in equity, whether in contract or in tort or otherwise, involving the Financing Parties, arising out of or relating to
this Agreement, the Debt Financing or any of the agreements (including the Debt Commitment Letter) entered into in connection with the Debt Financing or any of the transactions contemplated hereby or thereby or the performance of any services
thereunder shall be governed by and construed in accordance with the law of the State of New York and subject to the exclusive jurisdiction of any federal or state court in the Borough of Manhattan, New York, New York, so long as such forum is and
remains available, and any appellate court thereof and each party hereto irrevocably submits itself and its property with respect to any such proceeding to the exclusive jurisdiction of such court, (b) agrees that any such proceeding shall be
governed by the laws of the State of New York (without giving effect to any conflicts of law principles that would result in the application of the laws of another state), except as otherwise provided in the Debt Commitment Letter or other
applicable definitive document relating to the Debt Financing, (c) agrees not to bring or support or permit any of its Affiliates to bring or support any proceeding of any kind or description, whether in law or in equity, whether in contract or
in tort or otherwise, against any Financing Party in any way arising out of or relating to, this Agreement, the Debt Financing, the Debt Commitment Letter or any of the transactions contemplated hereby or thereby or the performance of any services
thereunder in any forum other than any federal or state court in the Borough of Manhattan, New York, New York, (d) agrees that service of process upon Seller or its Affiliates in any such proceeding shall be effective if notice is given in
accordance with Section 11.7, (e) irrevocably waives, to the fullest extent that it may effectively do so, the defense of an inconvenient forum to the maintenance of such proceeding in any such court, (f) knowingly,
intentionally and voluntarily waives to the fullest extent permitted by applicable law trial by jury in any proceeding brought against the Financing Parties in any way arising out of or relating to, this Agreement, the Debt Financing, the Debt
Commitment Letter or any of the transactions contemplated hereby or thereby or the performance of any services thereunder, (g) 

  
 -101- 

 
agrees that none of the Financing Parties shall have any liability to Seller or any of its Affiliates or Representatives (in each case, other than Purchaser and its Affiliates) relating to or
arising out of this Agreement, the Debt Financing, the Debt Commitment Letter or any of the transactions contemplated hereby or thereby or the performance of any services thereunder, whether in law or in equity, whether in contract or in tort or
otherwise and hereby irrevocably waives any claims or rights if any against the Financing Parties relating to or arising out of the foregoing, and agrees not to bring or support any suit, action or proceeding against any of the Financing Parties in
connection with the foregoing and herby agrees to cause any such suit, action or proceeding to be dismissed or otherwise terminated, and (h) agrees that the Financing Parties are express third party beneficiaries of, and may enforce, the
provisions of Section 11.8(b) and of this Section 11.13, and that such provisions and the defined terms used in Section 11.8(b) and this
Section 11.13 (or any other provision or definition in this Agreement to the extent that if amended or waived would modify the substance of Section 11.8(b) and this
Section 11.13 or the defined terms thereunder) shall not be amended in a manner adverse to the Financing Parties without the prior written consent of the Financing Parties. 

Section 11.14 No Admission. Nothing herein shall be deemed an admission by Purchaser, Seller or any of their respective
Affiliates, in any Action or proceeding by or on behalf of a third party, that Purchaser, Seller or any of their respective Affiliates, or that such third party or any of its Affiliates, is or is not in breach or violation of, or in default in, the
performance or observance of any term or provisions of any Contract. 
 Section 11.15
Non-Recourse. The parties agree that all Actions based on, in respect of or arising out of (a) this Agreement, the Confidentiality Agreement, the Equity Commitment Letter, the Limited Guaranty or
the Ancillary Agreements and (b) the negotiation, execution or performance or breach hereof or thereof, or the failure to perform any covenant or agreement contained herein or therein, or to consummate the Sale or any of the transactions
contemplated hereby or thereby, may only be made against the Persons that are expressly identified as parties to this Agreement (and their respective successors and permitted assigns) (other than with respect to any claims by or between the express
parties or express third party beneficiaries (in each case, including their successors or permitted assigns) to the Confidentiality Agreement, the Equity Commitment Letter, the Limited Guaranty or the Ancillary Agreements in accordance with the
terms thereof). No other Person shall have any Liability in respect of any Actions based on, in respect of or arising out of the matters set forth in clause (a) or (b) of the immediately preceding sentence. Nothing in this
Section 11.15 shall limit the rights or remedies available to the express parties or express third party beneficiaries to the Confidentiality Agreement, the Equity Commitment Letter, the Limited Guaranty or the Ancillary
Agreements in accordance with the terms thereof. 
 Section 11.16 Counterparts. This Agreement may be executed in one or more
counterparts, and by the different parties in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a
signature page to this Agreement by facsimile or by electronic transmission in .pdf format or other electronic method shall be as effective as delivery of a manually executed counterpart of this Agreement. 

  
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 Section 11.17 Additional EPA. Reference is made to the NY/CT EPA. This
Agreement and the NY/CT EPA, collectively, provide for the sale by Seller and purchase by the Purchaser and the Additional Purchaser of Seller’s entire fossil generating fleet (the transactions contemplated by such agreements, collectively, the
“Fossil Transaction”). Parties acknowledge and agree that the bifurcation of the Fossil Transaction is intended to facilitate the separate ownership and operation of the facilities and assets by Purchaser and the Additional
Purchaser following the sale by Seller. The Parties agree to act reasonably and in good faith and to cooperate to facilitate the completion of each transaction separately when required to be completed in accordance with the terms hereof and of the
NY/CT EPA. 
 [Signature page follows] 
  

  
 -103- 

 IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each of the parties as
of the day first above written. 
  

			
	PSEG POWER LLC
		
	By:	 	 /s/ Timothy Pellegrin

		 	Name: Timothy Pellegrin
		 	Title: Authorized Officer
	
	PARKWAY GENERATION, LLC
		
	By:	 	 /s/ Daniel R. Revers

		 	Name: Daniel R. Revers
		 	Title: President
	
	EASTERN CORRIDOR PARTSCO, LLC
		
	By:	 	 /s/ Daniel R. Revers

		 	Name: Daniel R. Revers
		 	Title: President

 [Signature Page to Equity Purchase Agreement]EX-10.1

   

  UNIT PURCHASE AGREEMENT

  by and among

  RECRO PHARMA, INC.,

  IRISYS, LLC,

  THE SELLERS (AS DEFINED THEREIN)

  and

  IRISYS, INC., AS THE SELLERS’ REPRESENTATIVE

   

  Dated as of August 13, 2021 

   

   

   

   

  

   

  TABLE OF CONTENTS

  Page

  			
	Article I DEFINITIONS
	1

	Article II PURCHASE AND SALE OF UNIT; CLOSING; CONSIDERATION
	11

	2.1
	Purchase and Sale of Units
	11

	2.2
	Closing
	11

	2.3
	Closing Consideration
	11

	2.4
	Purchaser Shares
	11

	2.5
	Escrow Amount
	12

	2.6
	Closing Payment Certificate
	13

	2.7
	Final Calculations; Disputes
	13

	2.8
	Adjustments
	15

	2.9
	Closing Transaction Expenses; Closing Indebtedness
	16

	2.10
	Reliance on Consideration Spreadsheet
	16

	2.11
	Withholding
	16

	2.12
	Registration of Purchaser Shares.
	16

	Article III REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
	18

	3.1
	Organization; Corporate Power and Authorization
	18

	3.2
	Binding Effect; Noncontravention; No Approvals
	18

	3.3
	Broker Fees
	18

	3.4
	Investment
	18

	3.5
	No Litigation
	19

	3.6
	Purchaser SEC Filings.
	19

	3.7
	Purchaser Shares.
	19

	3.8
	Exchange Act Compliance.
	19

	3.9
	Form S-3 Eligibility.
	19

	3.10
	Number of Purchaser Shares.
	20

	Article IV REPRESENTATIONS AND WARRANTIES OF THE SELLERS
	20

	4.1
	Power and Authorization
	20

	4.2
	Binding Effect and Noncontravention; Approvals
	20

	4.3
	Units
	20

	4.4
	No Litigation
	21

	4.5
	Broker Fees
	21

	4.6
	Purchaser Shares.
	21

	Article V REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	22

	5.1
	Organization; Qualification; Limited Liability Company Power and Authorization
	22

	5.2
	Binding Effect and Noncontravention; Approvals
	22

	5.3
	Capitalization
	23

	5.4
	Subsidiaries
	23

	5.5
	Financial Statements
	24

	5.6
	Absence of Certain Developments
	24

	5.7
	Assets
	26

	5.8
	Tax Matters
	26

	5.9
	Environmental Matters
	27

   

   

   

  

   

  			
	5.10
	Intellectual Property
	28

	5.11
	Real Estate
	29

	5.12
	Litigation
	30

	5.13
	Employee and Labor Relations
	30

	5.14
	Employee Plans
	31

	5.15
	Affiliate Transactions
	33

	5.16
	Insurance
	33

	5.17
	Material Contracts
	34

	5.18
	FDA and Regulatory Matters
	35

	5.19
	Accounts Receivable
	37

	5.20
	Customers and Suppliers
	37

	5.21
	Broker Fees
	38

	5.22
	Bank Accounts
	38

	5.23
	Corrupt Practices Act; Ex-Im Laws
	38

	5.24
	Government Contracts and Regulatory Matters.
	38

	5.25
	Disclaimer of the Company
	42

	Article VI COVENANTS AND OTHER AGREEMENTS
	42

	6.1
	Public Announcements
	42

	6.2
	Employee Matters
	43

	6.3
	Record Retention
	44

	6.4
	Indemnification of Directors and Officers; Insurance
	44

	6.5
	Tax Matters
	45

	6.6
	Sellers’ Representative
	48

	6.7
	R&W Policy
	49

	6.8
	Reserved.
	49

	6.9
	Release
	49

	6.10
	Settlement Amounts.
	50

	6.11
	Employee Equity Grants.
	50

	6.12
	Patent Matters
	50

	Article VII INDEMNIFICATIONS; SURVIVAL
	50

	7.1
	Survival of Representations, Warranties and Covenants
	50

	7.2
	Indemnification by the Sellers
	51

	7.3
	Indemnification by the Purchaser
	52

	7.4
	Indemnity Limitations
	52

	7.5
	Procedures Relating to Indemnification
	54

	7.6
	Further Acknowledgement by the Purchaser
	56

	7.7
	Tax Treatment of Indemnification Payments
	57

	7.8
	Exclusive Remedy
	57

	Article VIII CLOSING DELIVERABLES
	57

	8.1
	Closing Deliverables of the Company and the Sellers
	57

	8.2
	Closing Deliverables of the Purchaser
	58

	Article IX MISCELLANEOUS
	59

	9.1
	Governing Law
	59

	9.2
	Jurisdiction
	59

	9.3
	Waiver of Jury Trial
	59

	9.4
	Expenses
	59

   

   

   

  

   

  			
	9.5
	Attorneys’ Fees
	59

	9.6
	Waiver; Remedies Cumulative
	59

	9.7
	Notices
	60

	9.8
	Assignment
	61

	9.9
	No Third-Party Beneficiaries
	61

	9.10
	Amendments
	61

	9.11
	Company Disclosure Schedule
	61

	9.12
	Specific Performance
	61

	9.13
	Construction
	61

	9.14
	Further Assurances
	62

	9.15
	Entire Agreement
	62

	9.16
	Severability
	62

	9.17
	Mutual Drafting
	62

	9.18
	Counterparts; Facsimile
	62

	9.19
	Waiver of Conflicts Regarding Representation
	62

  EXHIBITS

   

  Exhibit A			Form of Escrow Agreement

  Exhibit B			Illustrative Calculation of Net Working Capital Amount

  Exhibit C			Purchase Price Allocation

  Exhibit D			Form of Note

  Exhibit E			R&W Policy 

   

  SCHEDULES

   

  Schedule I			Indebtedness 

   

   

   

   

  

   

  UNIT PURCHASE AGREEMENT

  This UNIT PURCHASE AGREEMENT (the “Agreement”) is made as of August 13, 2021, by and among (i) Recro Pharma, Inc., a Pennsylvania corporation (the “Purchaser”), (ii) IriSys, LLC, a California limited liability company (the “Company”), (iii) IriSys, Inc., a California corporation (“IriSys”), Continent Pharmaceuticals U.S., Inc., a Delaware corporation, and EPS Americas Corp., a Delaware corporation (each, a “Seller” and collectively, the “Sellers”), and (iv) IriSys, in its capacity as the representative of the Sellers (the “Sellers’ Representative”).  The Purchaser, the Company, the Sellers and the Sellers’ Representative are sometimes referred to individually as a “Party” and collectively as the “Parties.”  Certain capitalized terms that are used herein are defined in Article I herein.

   

  WHEREAS, the Sellers collectively own 100% of the outstanding units (the “Units”) of the Company, with the Units owned by each Seller set forth on Section 5.3(a) of the Company Disclosure Schedule.

  WHEREAS, the Purchaser desires to acquire from the Sellers all of the Units, and the Sellers desire to sell to the Purchaser all of the Units, in accordance with the terms and subject to the conditions set forth in this Agreement.

  NOW, THEREFORE, in consideration of the premises and the mutual promises made herein, and in consideration of the representations, warranties, covenants and agreements herein contained, intending to be legally bound, the Parties hereby agree as follows:

  Article I

DEFINITIONS

  For the purposes of this Agreement, the following terms have the meanings set forth below:

  “Action” means any action, suit, claim, order, charge, mediation, litigation, hearing, proceeding, investigation, audit, inquiry, complaint, grievance or arbitration commenced, brought, conducted or heard by or before any Governmental Entity.

  “Adjustment Escrow Amount” means Three Hundred Thousand Dollars ($300,000). 

  “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with such first Person within the meaning of the Exchange Act.

  “Affiliated Group” means any affiliated group within the meaning of Section 1504(a) of the Code, or any consolidated, combined, unitary or similar group for Tax purposes.

  “Aggregate Consideration” means the sum of (a) the Closing Cash Consideration, (b) the Purchaser Shares, (c) the principal amount of the Note, (d) any Closing Adjustment Surplus Amount received by the Sellers, and (e) any Escrow Amount received by the Sellers. 

  “Anti-Corruption Laws” means all applicable U.S. and non-U.S. Laws relating to the prevention of corruption and bribery, including the U.S. Foreign Corrupt Practices Act of 1977.

  “Approval” means any authorization, consent or approval required to be obtained from any Governmental Entity or other Person in connection with this Agreement and the consummation of the Transaction.

   

   

  

   

  “Business Day” means any day excluding Saturday, Sunday and any day that is a legal holiday under the Laws of the State of California or is a day on which banking institutions located in California or New York, New York are authorized or required by Law to close.

  “CARES Act” means The Coronavirus Aid, Relief, and Economic Security Act, Pub.L. 116-136 (03/27/2020).

  “cGMPs” shall mean applicable current good manufacturing practices as defined in the U.S. Code of Federal Regulations, 21 CFR Part 210 et seq., the European Union Guidelines to Good Manufacturing Practices for Medicinal Products for Human and Veterinary Use (Vol. IV Rules Governing Medicinal Products in the European Union 2004), and any successor regulatory schemes, as well as any corresponding requirements in other regulatory jurisdictions as applicable.

  “Closing Cash” means all cash and cash equivalents (including marketable securities, bank deposits and short-term investments convertible to cash within ninety (90) days, net of any breakage costs required to liquidate such securities, deposits and short term investments), in each case, of the Company, as of immediately prior to the Closing.  Notwithstanding anything to the contrary contained herein, “Closing Cash” shall (i) include the amount of any uncleared checks and drafts and wires received by the Company prior to the Closing and (ii) exclude (x) the amount of any outstanding uncleared checks and drafts and wires issued by the Company prior to the Closing, (y) the amount of any cash or cash equivalents that is not freely usable by the Company because it is subject to restrictions, limitations or Taxes on use or distribution by any Law, contract or otherwise, including restrictions on dividends and repatriations or any other form of restriction (including if subject to incremental costs, expenses, penalties, Taxes or other amounts to be incurred in respect of any such distribution), amounts held in escrow, amounts held in reserve pursuant to any letter of credit or otherwise as collateral or amounts that are deposited with a third party (other than a bank or similar financial institution); provided, that, notwithstanding anything contained in this definition to the contrary, fifty percent (50%) of the lease deposit made by the Company in connection with the Nancy Ridge Lease shall expressly constitute Closing Cash; and provided further, that, the amount of cash or cash equivalents excluded pursuant to clause (y) on account of any Taxes or incremental costs, expenses, penalties, or other amounts shall be limited to the amount of such Taxes or such incremental costs, expenses, penalties or other amounts,  or (z) any cash or cash equivalents used to repay Indebtedness or Closing Transaction Expenses prior to the Closing.

  “Closing Cash Consideration” shall mean: (a) $25,500,000, minus (b) the amount, if any, by which the Target Working Capital exceeds the Estimated Net Working Capital Amount or plus the amount, if any, by which the Estimated Net Working Capital Amount exceeds the Target Working Capital, plus (c) the amount of Estimated Closing Cash, minus (d) the amount of Estimated Closing Indebtedness, if any, minus (e) the Estimated Closing Transaction Expenses, and minus (f) the Escrow Amount.  

  “Closing Indebtedness” means all outstanding Indebtedness of the Company, as of immediately prior to the Closing.

  	“Closing Transaction Expenses” means, without duplication, in each case, to the extent outstanding or unpaid as of immediately prior to the Closing (whether or not invoiced), all fees, costs and expenses incurred by or on behalf of the Company in connection with the preparation, negotiation, execution and consummation of the Transactions (including with respect to any auction or sales process conducted in respect thereof or any offering or marketing materials prepared in connection therewith or the solicitation, discussion or negotiation of strategic alternatives hereto or thereto), including (i) all such fees, costs, and expenses of legal counsel, investment bankers, brokers, accountants and other representatives and consultants; and (ii) all change-of-control bonuses or similar amounts payable by the Company to any director, officer, employee, consultant or independent contractor in connection with the entry into or consummation of the transactions contemplated by 

   

   

  

   

  this Agreement that become payable as a result of the Closing and remain outstanding or unpaid as of immediately prior to the Closing and the employer portion of any employment or payroll Taxes with respect to any such payments; provided, that, Closing Transaction Expenses shall be calculated without duplication of any amounts to the extent included in the calculation of Closing Indebtedness or Net Working Capital Amount and shall expressly exclude any and all severance obligations of the Company and the employer portion of any employment or payroll Taxes with respect thereto. 

  “Code” means the Internal Revenue Code of 1986, as amended.

  “Company Disclosure Schedule” means the disclosure schedule constituting exceptions to and applicable disclosures associated with the Company’s representations and warranties set forth in Article V hereof, prepared and delivered by the Company concurrently with the execution of this Agreement, as the same may be amended and supplemented from time to time, as required and/or permitted herein. 

  “Company Fundamental Representations” means each of the following representations and warranties made by the Sellers or the Company, as applicable: Section 4.1 (Power and Authorization), Section 4.2(a) (Binding Effect and Noncontravention; Approvals), Section 4.3 (Units), Section 4.5 (Broker Fees), Section 5.1 (Organization; Qualification; Corporate Power and Authorization), Section 5.2 (Binding Effect and Noncontravention; Approvals) (solely with respect to clause (a) and clause (b)(i)), Section 5.3 (Capitalization), Section 5.4 (Subsidiaries), and Section 5.19 (Broker Fees).  

  “Company Intellectual Property Rights” means all of the Intellectual Property Rights exclusively owned by the Company.

  “Company Material Adverse Change” means any change, event, occurrence, development, circumstance, effect, condition or state of facts that, individually or in the aggregate, is or would reasonably be expected to be, individually or in the aggregate, materially adverse to (a) the business, assets, properties, condition (financial or otherwise), liabilities or results of operations of the Company, or (b) the ability of the Company to perform its obligations under this Agreement and the Transaction Documents to which it is a party or on the ability of the Company to consummate the Transactions; provided, however, that, solely with respect to clause (a), none of the following shall be deemed in themselves, either alone or in combination, to constitute, and none of the following shall be taken into account in determining whether there has been, or will be, a Company Material Adverse Change: any adverse change, event, occurrence, development, circumstance, effect, condition or state of facts attributable to (i) operating, business, regulatory or other conditions in the industry in which the Company operates, (ii) general economic conditions, including changes in the credit, debt or financial or capital markets, in each case, in the United States or anywhere else in the world, (iii) changes in GAAP or other accounting requirements or principles or any changes in applicable Laws or the interpretation thereof, in each case, after the date hereof, (iv) the failure of the Company to meet or achieve the results set forth in any projection or forecast (provided that (x) the change, event, occurrence, development, circumstance, effect, condition or state of facts underlying such failure and/or (y) any variance in the actual financial position, condition, performance or results of operations of the Company for any then-current period as compared to one or more prior periods, in each case, may be considered in determining whether there has been a Company Material Adverse Change), (vi) global, national or regional political conditions, including hostilities, acts of war, sabotage or terrorism or military actions or any escalation, worsening or diminution of any such hostilities, acts of war, sabotage or terrorism or military actions existing or underway as of the date hereof, (vii) hurricanes, earthquakes, floods or other natural disasters, and (viii) any natural or man-made disaster, acts of God, epidemic, pandemic (including COVID-19), disease outbreak or other health crises or public health event; provided, further, that with respect to subclauses (i), (ii), (iii), (vi), (vii) and (viii), any such change, event, occurrence, development, circumstance, effect, condition or state of facts may be considered in determining whether a Company Material Adverse Change has occurred to the extent such change, event, occurrence, development, 

   

   

  

   

  circumstance, effect, condition or state of facts has had a disproportionate and adverse effect on the Company as compared to other Persons that conduct business in the industry in which the Company conducts business.

  “Confidentiality Agreement” means the Confidentiality Agreement, by and between the Company and the Purchaser dated as of March 24, 2021. 

  “Consideration Spreadsheet” means a spreadsheet which shall be prepared in accordance with the Company’s Organizational Documents and which shall include the following information, as of the Closing: (a) the names of all Sellers, (b) the Units held by each Seller, (c) the portion of the Closing Cash Consideration payable to each Seller, (d) the portion of the Note allocable to the applicable Seller, (e) the number of Purchaser Shares issuable to each Seller, and (f) each Seller’s applicable Pro Rata Portion.  

  “Contracts” means all written or oral contracts, agreements, subcontracts, indentures, notes, loans, instruments, leases, mortgages, franchises, licenses, purchase orders, sale orders, proposals, bids, understandings or commitments, which are legally binding.

  “Covid-19 Quarantine Period” means, with respect to each regular work location, the period during which any Governmental Entity restricted nonessential work on-site at such location. 

  “Employee Plans” means each “employee benefit plan” (as defined in Section 3(3) of ERISA), whether or not subject to ERISA, and each employment, bonus, incentive compensation, stock option, stock purchase or other equity-based (or equity-derivative) compensation, benefit, profit‐sharing, retirement, disability, insurance, vacation, deferred compensation, severance, termination, retention, change of control compensation and other similar material fringe, welfare or other employee benefit plans, programs, agreements, contracts, policies or binding arrangements (whether or not in writing) (i) that is in each case maintained or contributed to by the Company or any of its ERISA Affiliates for the benefit of any current or former employee, director, or other service provider of the Company or (ii) with respect to which the Company or any ERISA Affiliate has any Liability, contingent or otherwise.

  “Environmental Laws” means all Laws concerning pollution or protection of human health or the environment and Laws which prohibit, limit, regulate or control Hazardous Material, including but not limited to the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, the Safe Drinking Water Act, the Toxic Substances Control Act, as amended by the Frank R. Lautenberg Chemical Safety for the 21St Century Act, the Emergency Planning and Community Right-to-Know Act of 1986, the Occupational Safety and Health Act, and analogous state laws, including the California Safe Drinking Water and Toxic Enforcement Act of 1986 (known as Proposition 65).

   “Environmental Permit” means any Permit required by Environmental Laws for the operation of the business of the Company as currently conducted.

  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

  “ERISA Affiliate” means any trade or business, whether or not incorporated, that, together with the Company, is treated as a “single employer” within the meaning of Sections 414(b), (c), (m), or (o) of the Code.

  “Escrow Agent” means Citibank, N.A.

   

   

  

   

  “Escrow Agreement” means the Escrow Agreement, dated as of the Closing Date, by and among the Escrow Agent, the Purchaser and the Sellers’ Representative, in substantially the form attached hereto as Exhibit A. 

  “Escrow Amount” means, collectively, the Adjustment Escrow Amount and the Indemnity Escrow Amount. 

  “Evaluation Material” means any information, documents or materials regarding the Company or its respective business furnished or made available to the Purchaser and its Representatives in the online data room, any management presentations attended by the Purchaser or in any other reasonable form for dissemination of such information, documents or materials in expectation of, or in connection with, the Transactions. 

  “Ex-Im Laws” means all applicable Laws relating to export, reexport, transfer, and import controls, including the Export Administration Regulations, and the customs and import Laws administered by U.S. Customs and Border Protection.

  “Family Group” means for any individual, such individual’s current or former spouse, their respective parents, descendants of such parents (whether natural or adopted and, for the avoidance of doubt, including any of such individual’s children) and the spouses of such descendants, and any trust, limited partnership, corporation or limited liability company controlled by such individual and established solely for the benefit of such individual or such individual’s current or former spouse, their respective parents, descendants of such parents (whether natural or adopted) or the spouses of such descendants.

  “FDA” means the United States Food and Drug Administration, or any successor organization.

  “GAAP” means United States generally accepted accounting principles as in effect from time to time.

  “Government Bid” means any bid, proposal, offer or quote for supplies, services or construction, whether solicited or unsolicited, made by the Company which is intended by the Company to result in a Government Contract and is outstanding as of the date hereof.  A Government Bid (a) includes but is not limited to any bid, proposal, offer or quote made by the Company that has been received or accepted by the offeree or other recipient but has not resulted in a Government Contract prior to the Closing Date, but (b) does not include any bid, proposal, offer or quote made by the Company that has resulted in a Government Contract prior to the Closing Date.

  “Governmental Entity” means any court, tribunal, arbitrator or any government or political subdivision thereof, whether federal, state, county, local or foreign, or any agency, authority, or instrumentality of such governmental or political subdivision, or any entity exercising executive, legislative, judicial, regulatory or administrative functions of government.

  “Government Official” shall mean any officer or employee of any Governmental Entity or any Person acting in an official capacity for or on behalf of any such Governmental Entity or for or on behalf of any public international organization or any political party or official thereof or any candidate for political office.

  “Government Vendor Subcontract” means a Contract between the Company and another Person to supply supplies or services to the Company to be used in performing a Government Contract.

  “Hazardous Material” means any chemical, pollutant, contaminant, material, substance or waste that has been designated by any Governmental Entity to be radioactive, toxic, hazardous, or otherwise a danger to 

   

   

  

   

  health, reproduction or the environment because of its dangerous or deleterious properties or characteristics, or is otherwise regulated by any Environmental Law.

  “Healthcare Laws” means the Federal Food, Drug, Cosmetic Act, or FDCA, and any other applicable Law in the United States or outside of the United States where the Company operates as a contract manufacturer or contract research organization, including Laws that regulate the design, development, testing, studying, contract pharmaceutical manufacturing, processing, storing, importing or exporting, licensing, labeling or packaging  of pharmaceutical products, or that regulate fraud and abuse, kickbacks, recordkeeping, referrals, the hiring of employees or acquisition of services or supplies from those who have been excluded from government health care programs, quality, safety, privacy, security, licensure, accreditation or any other aspect of providing contract pharmaceutical manufacturing and research services.

  “Indebtedness” means the aggregate principal amount of, and accrued interest with respect to, and any other payment obligations (including prepayment penalties, premiums, breakage costs and other fees and expenses associated with the repayment thereof), without duplication, of the Company with respect to: (a) indebtedness for borrowed money; (b) obligations evidenced by bonds, debentures, notes, letters of credit, or similar instruments, declared but unpaid or accrued but unpaid dividends or distributions payable to members; (c) obligations to pay amounts under any lease which obligation is required to be included on the balance sheet of the Company as of such date as determined in accordance with GAAP, including, for the avoidance of doubt, Accounting Standards Codification 842 which became effective for the Company on January 1, 2021 (expressly excluding, for purposes of clarity, any amounts due under the Nancy Ridge Lease in excess of the amount set forth on Schedule I); (d) obligations for the deferred purchase price of property or services (including “earn-outs” and “seller notes” related to business acquisitions) (expressly excluding, for purposes of clarity, any amounts due under the Nancy Ridge Lease in excess of the amount set forth on Schedule I); (e) all obligations under any interest rate swap agreements or interest rate hedge agreements; (f) the items and corresponding amounts as expressly set forth on Schedule I; and (g) guarantees made directly or indirectly by the Company of obligations of the type described in clauses (a) through (f) above.

  “Indemnified Person” means any Purchaser Indemnified Person or Seller Indemnified Person, as applicable.

  “Indemnifying Person” means any Person(s) against whom a claim for indemnification is being asserted under any provision of Article VII herein.

  “Indemnity Escrow Amount” means Two Hundred and Fifty Thousand Dollars ($250,000).

  “Indemnity Period” means the period from the Closing Date to the date that is twelve (12) months from the Closing Date.

  “Intellectual Property Rights” means all (a) patents and patent applications, as well as any reissues, continuations, divisions, extensions or reexaminations thereof, (b) trademarks, service marks, trade dress, trade names, corporate names and registrations and applications for registration thereof, together with all of the goodwill associated therewith, (c) registered copyrights and applications for registration thereof, (d) computer software, and (e) any or all of the following and all worldwide rights in, arising out of, or associated therewith: domain names, uniform resource locators and other names and locators associated with the Internet.

  “International Employee Plan” means each Employee Plan that has been adopted or maintained by the Company or any of its ERISA Affiliates, or with respect to which the Company will or may have any Liability, for the benefit of any current or former employee, director, or other service provider of the Company whose primary work location is based outside the United States.

   

   

  

   

  “IRS” means the United States Internal Revenue Service.

  “Knowledge” means (a) as it applies to the representations, warranties and covenants made by the Company in this Agreement, the actual knowledge of Gerald Yakatan, Robert Giannini, Louis Scotti, Jean Wang, Adolfo Ramirez, Victoria Smith, Igor Nikoulin, and Brooke Yakatan (or the knowledge such Person would reasonably be expected to have after making reasonable inquiry, including of their direct reports), in each case, as of the date hereof; and (b) as it applies to representations, warranties and covenants made by a particular Seller in this Agreement, the actual knowledge of such Seller (or the knowledge such Seller would reasonably be expected to have after making reasonable inquiry with respect to the applicable matter). 

  “Law” means any law, statute, rule, regulation, ordinance, regulation, code, directive, and other pronouncement having the effect of law of the United States of America, any foreign country or any domestic or foreign state, county, city or other political subdivision or of any Governmental Entity.

  “Liability” or “Liabilities” means any and all debts, liabilities and obligations of any nature whatsoever, whether accrued or fixed, absolute or contingent, mature or unmatured or determined or indeterminable.

  “Licensed Intellectual Property Rights” means all Intellectual Property Rights, other than Company Intellectual Property Rights, that are licensed by Company from third parties and that are used by Company used in connection with the Company’s business.

  “Lien” means any mortgage, lien, pledge, charge, security interest, claim, contractual restriction, easement, right-of-way, option, conditional sale or other title retention agreement or encumbrance of any kind. 

  “Loss” means any direct or indirect Liability, indebtedness, claim, loss, Taxes, damage, Lien, deficiency, obligation, judgment, penalty, responsibility, remediation costs or other costs or expenses (including reasonable attorneys’ fees and expenses paid or incurred in connection with any of the foregoing); provided, that Loss shall expressly exclude any punitive damages except to the extent included in any Third-Party Claim.

  “Members” has the meaning set forth in the Operating Agreement. 

  “Nancy Ridge Lease” means that certain Lease, by and between BMR-6828 Nancy Ridge LP and the Company, dated as of June 26, 2014, as amended. 

  “NASDAQ” means the NASDAQ Capital Market. 

  “Net Working Capital Amount” means (a) the aggregate dollar amount of all assets characterized as current assets, excluding (x) loans receivable from any employees of the Company or any Seller or any of their respective Affiliates or Related Parties under GAAP and (y) any contract assets or other assets related to revenue recognition, minus (b) the aggregate dollar amount of all liabilities characterized as current liabilities of the Company under GAAP (excluding any contract liabilities or liabilities for customer prepayments), in the case of each of clause (a) and clause (b), as of 12:01 a.m. Pacific time on the Closing Date; provided, that “current assets” and “current liabilities” shall include only those specific balance sheet line items included in the illustrative calculation of the Net Working Capital Amount set forth on Exhibit B; provided, further, that, notwithstanding anything herein to the contrary, in no event will the determination of “Net Working Capital Amount” include any (i) Closing Cash, (ii) Closing Indebtedness, solely to the extent Indebtedness is already included within the calculation of Closing Cash Consideration, (iii) Closing Transaction Expenses, solely to the extent Transaction Expenses are already included within the calculation of the Closing Cash Consideration, or (iv) deferred Tax assets or liabilities. 

   

   

  

   

  “Note” means the unsecured, subordinated promissory note of the Purchaser issuable to one or more of the Sellers as set forth in the Consideration Spreadsheet in the aggregate principal amount of Six Million and One Hundred Sixteen Thousand Six Hundred Seventy-Two Dollars and Seventy-Two Cents ($6,116,672.72), in substantially the form attached hereto as Exhibit D.

  “Off-The-Shelf Software” means any shrinkwrap, clickwrap or other commercially available software licenses granted to the Company for third party software used by the Company.

  “Operating Agreement” means the Third Amended and Restated Operating Agreement of the Company by and among the Members party thereto, dated as of February 22, 2019. 

  “Order” means any writ, judgment, decree, injunction or similar order of any Governmental Entity, in each case whether preliminary or final.

  “Organizational Documents” means, with respect to any Person, as applicable, the certificate of incorporation, by-laws, partnership agreement, limited liability company agreement, operating agreement or other similar document, all as amended, supplemented, restated and replaced from time to time.

  “Partnership Audit Provisions” means the Bipartisan Budget Act of 2015 and Sections 6221-6231 of the Code and the Treasury Regulations promulgated thereunder (and comparable provisions of state and local Tax Law). 

  “Permits” means all permits, licenses, grants, easements, clearances, variances, orders, certificates, exemptions, registrations, authorizations, certificates of occupancy and other permits, consents and approvals required by any Governmental Entity to lawfully operate the Company’s business as currently conducted.

  “Permitted Liens” means (a) Liens for Taxes, which either are (i) not yet due and payable or (ii) being contested in good faith and by any appropriate Action, and adequate reserves (as determined in accordance with GAAP) have been established on the Company’s books with respect thereto, (b) Liens to secure landlords, sublandlords, licensors, sublicensors or licensees under real estate leases, licenses or other rental or lease agreements, (c) deposits or pledges made in connection with, or to secure payment of, utilities or similar services, workers’ compensation, unemployment insurance, pension or other social security, governmental insurance and governmental benefits mandated under applicable Laws, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, performance and return of money bonds and similar obligations, (d) mechanics’, materialmen’s or contractors’ Liens or any similar statutory Lien for amounts not yet due and payable and incurred in the ordinary course of business, (e) zoning, entitlement, building and other similar restrictions which are not violated by the current conduct of the Company’s business, (f) purchase money Liens in any property acquired by the Company in the ordinary course of business, and (g) Liens or encumbrances imposed on the underlying fee interest in real property subject to Company Leases.

  “Person” means any individual, partnership, corporation, association, limited liability company, joint stock company, a trust, joint venture, firm, association, unincorporated organization, Governmental Entity or other entity.

  “PPP Loan” means a Paycheck Protection Program Loan pursuant to Section 1102 of the CARES Act.

  “Pro Rata Portion” means, with respect to each Seller, the applicable portion of the Aggregate Consideration then received by such Seller relative to the Aggregate Consideration then received by all Sellers, as set forth on the Consideration Spreadsheet.

   

   

  

   

  “Purchaser Common Stock” means the Purchaser’s common stock, par value $0.01 per share. 

  “Purchaser Fundamental Representations” means each of the following representations and warranties made by the Purchaser: Section 3.1 (Organization; Corporate Power and Authorization), Section 3.2 (Binding Effect and Noncontravention; Approvals) (solely with respect to clause (a) and clause (b)(i)), and Section 3.3 (Broker Fees).

  “Purchaser Material Adverse Change” means any change, event, occurrence, circumstance, condition, effect, development or state of facts that is or is reasonably likely to be, individually or in the aggregate, a material impairment in the ability of the Purchaser to perform its obligations under this Agreement and the Transaction Documents to which it is a party or on the ability of the Purchaser to consummate the Transactions.

  “Purchaser Shares” means 9,302,718 shares of Purchaser Common Stock.  Notwithstanding the foregoing, if there are any stock splits, stock combination or similar events with respect to the Purchaser Common Stock on or after the Closing Date and through and including the Purchaser Shares Issuance Date, the number of “Purchaser Shares” shall  be equitably adjusted. 

  “R&W Policy” means the representation and warranties insurance policy set forth on Exhibit E.

  “Related Party” means (i) each Seller; (ii) any Affiliate of any Seller (other than the Company); or (iii) each member of the Family Group of the foregoing in clauses (i) and (ii).

  “Related Party Transaction” means any Contract, arrangement or transaction between the Company, on the one hand, and any Related Party, on the other hand, other than (x) salary or other compensation or benefits under Employee Plans paid or payable in the ordinary course of business to employees in consideration for bona fide services performed by such employees and (y) this Agreement, the Transaction Documents and the Transactions).

  “Release” means spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, discarding, burying, abandoning, migration, or disposing into the environment.

  “Representatives” means, with respect to a particular Person, any manager, director, officer, employee, agent, consultant, advisor, or other representative of such Person, including legal counsel, accountants, and financial advisors.

  “Restrictive Covenant Agreement” means each Restrictive Covenant Agreement, dated as of the date hereof, to be entered into by and between the Purchaser, each Seller and the other parties thereto. 

  “Sanctioned Country” means, at any time, a country, region or territory which is itself the subject or target of any applicable comprehensive Sanction Laws.

  “Sanctioned Person” means, at any time, (a) any Person listed in any applicable Sanctions-related list of designated Persons maintained by U.S. Office of Foreign Assets Control or the U.S. Department of State, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned fifty percent (50%) or more, individually or in the aggregate, directly or indirectly, by any such Person or Persons described in the foregoing clause (a).

  “Sanctions Laws” any applicable Laws regarding economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by any Governmental Entity.

   

   

  

   

  “Securities Act” means the Securities Act of 1933, as amended.

  “Seller Material Adverse Change” means, with respect to any Seller, any change, event, occurrence, circumstance, condition, effect, development or state of facts that is or is reasonably likely to be, individually or in the aggregate, a material impairment in the ability of such Seller to perform such Seller’s obligations under this Agreement and the Transaction Documents to which such Seller is a party or on the ability of such Seller to consummate the Transactions.

  “Straddle Period” means any taxable period beginning prior to and ending after the Closing Date.  For purposes of apportioning liability for Taxes of the Company in connection with any Straddle Period, (i) in the case of Taxes based upon or related to income or receipts, the amount of any such Taxes allocable to the portion of the taxable period ending on the Closing Date shall be determined based on an interim closing of the books as of the close of business on the Closing Date; and (ii) in the case of Taxes other than Taxes described in clause (i), the amount of such Taxes allocable to the portion of the taxable period ending on the Closing Date shall be the product of (x) the amount of such Taxes for the entire period and (y) a fraction the numerator of which is the number of calendar days in the period ending with the Closing Date and the denominator of which is the number of calendar days in the entire period.

  “Subsidiary” means, with respect to any Person, any corporation or other entity of which a majority of (i) the voting power of the voting equity securities or (ii) the outstanding equity interests is owned, directly or indirectly, by such Person. 

  “Target Working Capital” means Two Million Dollars ($1,900,000.00).

  “Tax” or “Taxes” means any foreign, federal, state or local income, earnings, profits, gross receipts, franchise, capital stock, net worth, sales, use, value added, occupancy, general property, real property, personal property, intangible property, transfer, fuel, excise, payroll, withholding, employment, unemployment compensation, workers’ compensation, social security, retirement, pension plan, estimated, severance, environmental, stamp, occupation, premium, windfall profits, customs, duties or other taxes of any nature or kind whatsoever, together with any interest, additions or penalties with respect thereto and any interest in respect of such additions or penalties.

  “Tax Returns” means all returns, information returns, declarations, reports, claims for refund, statements or other documents filed or required to be filed with any Governmental Entity with respect to the determination, assessment, collection or payment of any Tax or in connection with the administration, implementation or enforcement of, or compliance with, any Tax, including any schedule or attachment thereto, and including any amendment thereof.

  “Transaction Documents” means this Agreement and all other agreements, instruments, certificates and other documents to be entered into or delivered by any Party pursuant to this Agreement, including, but not limited to the Note, the Escrow Agreement and each Restrictive Covenant Agreement.

  “Transactions” means the transactions contemplated by the Transaction Documents.

  Article II

PURCHASE AND SALE OF UNIT; CLOSING; CONSIDERATION

  2.1	Purchase and Sale of Units.  At the Closing, subject to the terms and conditions of this Agreement, the Sellers shall sell, transfer and deliver the Units to the Purchaser, free and clear of all Liens 

   

   

  

   

  (other than any applicable transfer restrictions arising under applicable securities Laws), and the Purchaser shall purchase and accept the Units from the Sellers.

  2.2	Closing.  The closing of the Transactions (the “Closing”) will take place at the offices of Wilson Sonsini Goodrich & Rosati, Professional Corporation, 12235 El Camino Real, San Diego, California 92130 (or at such other location as the Parties may agree or via the electronic exchange of execution versions of the Transaction Documents and the signature pages thereto via facsimile or via email by .pdf) on the date hereof (the “Closing Date”). 

  2.3	Closing Consideration.  At the Closing, the following transactions shall occur: 

  (a)	Closing Cash Consideration. The Purchaser shall pay to the Sellers an aggregate amount in cash equal to the Closing Cash Consideration, which amount shall be allocated among the Sellers in accordance with the Consideration Spreadsheet.  The Purchaser shall pay the Closing Cash Consideration by wire transfer of immediately available funds to such accounts as the Sellers may direct by written notice delivered to the Purchaser not less than two (2) Business Days prior to the Closing Date. 

  (b)	Notes. The Purchaser shall deliver to the applicable Seller(s) the Note(s) in accordance with the Consideration Spreadsheet, duly executed by the Purchaser.

  2.4	Purchaser Shares.  

  (a)	On the date that is six (6) months from the Closing Date (the “Purchaser Shares Issuance Date”), the Purchaser shall issue to the Sellers (or their transferees or designees, as permitted pursuant to Section 2.4(b)) the Purchaser Shares in accordance with the Consideration Spreadsheet.   The Parties hereto acknowledge and agree that no Seller shall have any voting or dividend rights in the Purchaser Shares prior to the Purchaser Shares Issuance Date.

  (b)	The right of any Seller to receive any Purchaser Shares shall not be assignable or transferable by any Seller; provided, that (i) any Seller shall have the right to assign or transfer the right to receive any Purchaser Shares to the equityholder(s) of such Seller and (ii) the equityholder(s) of such Seller shall have the right to assign or transfer the right to receive any Purchaser Shares as follows, if such equityholder is an individual or a trust, and, in the case of clauses (i) and (ii), in each case, subject to compliance with applicable Law, including the Securities Act and the Exchange Act: (A) on death by will or intestacy, or (B) to or for the benefit of any spouse, children, parents, uncles, aunts, siblings or grandchildren of such equityholder (collectively, “Approved Relatives”) or to a trust established solely for the benefit of such equityholder or his, her or its Approved Relatives or to one or more family limited partnerships or family limited liability companies where all of the equity interests are owned by such equityholder or his, her or its Approved Relatives (all such Persons under clauses (i) and (ii) shall be referred to as “Permitted Purchaser Share Transferees”). 

  2.5	Escrow Amount.

  (a)	Escrow.  At the Closing, the Purchaser shall deposit the Escrow Amount into an interest bearing escrow account (the “Escrow Account”) established pursuant to the Escrow Agreement to secure the payment obligations of the Sellers under Section 2.6 and the indemnification obligations of the Sellers under Section 7.1.

  (b)	Escrow Account.  The interest, earnings and income that accrue upon the Escrow Amount during the period of time during which it is held in the Escrow Account shall be deemed to become part of the Escrow Amount.  The release of funds from the Escrow Account shall be governed by the Escrow Agreement 

   

   

  

   

  and the terms of this Agreement; provided, that in the event of a conflict between the terms of the Escrow Agreement and the terms of this Agreement, the terms of this Agreement shall control.  

  (c)	Release of Escrow Amount.  As soon as reasonably practicable (but in any event within two (2) Business Days) following the expiration of the Indemnity Period, the Purchaser and the Sellers’ Representative shall cause the Escrow Agent to release to (i) the Purchaser an amount equal to thirty percent (30%) of any income earned on the investment of the Escrow Amount and (ii) to the Sellers (in accordance with their respective Pro Rata Portion) all of the remaining Indemnity Escrow Amount (if any) in excess of an amount (if any) calculated pursuant to the following sentence to satisfy all unresolved indemnity claims for Losses specified in any Claim Notice properly delivered to the Sellers’ Representative before the expiration of the Indemnity Period (if any).  If any such indemnity claims are unresolved as of the expiration of the Indemnity Period, then a portion of the Indemnity Escrow Amount that equals the total amount of Losses then being reasonably claimed in good faith by the Purchaser Indemnified Persons in all such unresolved indemnity claims shall be retained in the Escrow Account, and as soon as reasonably practicable (but in any event within two (2) Business Days) following resolution of any such indemnity claim, Purchaser and the Sellers’ Representative shall cause the Escrow Agent to release to the Sellers (in accordance with their respective Pro Rata Portion), the remaining Indemnity Escrow Amount (if any) not required to satisfy any then still unresolved indemnity claims.

  (d)	Tax Matters.  The parties agree that, for applicable Tax purposes, the Purchaser shall be treated as the owner of any cash in the Escrow Account, and that all interest on or other taxable income, if any, earned from the investment of such cash pursuant to this Agreement or the Escrow Agreement shall be treated for applicable Tax purposes as earned by the Purchaser.  The Parties hereto further intend for the Escrow Amount to qualify for installment sale reporting under Section 453 of the Code, and will treat the Escrow Amount consistent with the foregoing for U.S. federal, state and local income tax purposes, unless otherwise required by applicable Law.  

  2.6	Closing Payment Certificate.  The Company has delivered to the Purchaser a certificate (the “Closing Payment Certificate”), signed by an authorized officer of the Company, certifying as to the Company’s good faith estimate of (a) the Net Working Capital Amount (such estimate, the “Estimated Net Working Capital Amount”), (b) Closing Indebtedness (such estimate, the “Estimated Closing Indebtedness”), (c) Closing Transaction Expenses (such estimate, “Estimated Closing Transaction Expenses”), (d) Closing Cash (such estimate, “Estimated Closing Cash”) and (e) a calculation of the Closing Cash Consideration based thereon, in each case, prepared by the Company in accordance with GAAP and the definitions set forth in this Agreement. 

  2.7	Final Calculations; Disputes.

  (a)	As promptly as practicable, but in any event within sixty (60) days after the Closing Date, the Purchaser will deliver to the Sellers’ Representative a reasonably detailed statement setting forth the Purchaser’s calculations of the Net Working Capital Amount, Closing Indebtedness, Closing Transaction Expenses, and Closing Cash (the “Closing Statement”).  The estimates and calculations set forth in the Closing Statement shall be prepared by the Purchaser in accordance with GAAP and the definitions set forth in this Agreement.

  (b)	After delivery of the Closing Statement, the Sellers’ Representative and its Representatives shall be permitted reasonable access during normal business hours to review the books and records of the Company and any work papers (including any work papers prepared by the Purchaser’s and the Company’s accountants, subject to execution of customary access letters) used in the preparation of the Closing Statement.  The Sellers’ Representative and its Representatives may make reasonable inquiries of the Purchaser and its Representatives regarding questions concerning or disagreements with the Closing Statement arising in 

   

   

  

   

  the course of their review thereof, and the Purchaser shall cause any such Representatives to cooperate with and respond to such inquiries.

  (c)	If the Sellers’ Representative has any objections to the Closing Statement, the Sellers’ Representative shall deliver a written notice to the Purchaser (the “Dispute Notice”) setting forth the basis for such objections in reasonable detail, including, to the extent practicable, (i) each item or amount so objected to by the Sellers’ Representative in the Closing Statement, and (ii) the Sellers’ Representative’s calculation of each such objected item or amount.  If a Dispute Notice is not delivered to the Purchaser within thirty (30) days after the Purchaser’s delivery of the Closing Statement, the Sellers’ Representative shall be deemed to have irrevocably consented to the Closing Statement and the Closing Statement shall be final, binding and non-appealable by the Parties.  If a Dispute Notice is delivered to the Purchaser within thirty (30) days after the Purchaser’s delivery of the Closing Statement, the Sellers’ Representative and the Purchaser shall negotiate in good faith to resolve any objections set forth in the Dispute Notice.  Any item set forth in the Closing Statement and not objected to in the Dispute Notice shall be final and binding on the Parties.  If the Sellers’ Representative and the Purchaser do not reach a final resolution within thirty (30) days after the delivery of the Dispute Notice, the Sellers’ Representative or the Purchaser shall submit such dispute to an independent, nationally recognized accounting firm as mutually agreed upon by the Sellers’ Representative and the Purchaser (the “Independent Accountant”).  If any dispute is submitted to the Independent Accountant, the Independent Accountant shall be requested to render a written determination of the applicable dispute within thirty (30) days after referral of the matter to the Independent Accountant, which determination must be in writing and must set forth, in reasonable detail, the basis therefor and must be based solely on (i) the definitions and other applicable provisions of this Agreement, (ii) a single presentation (which presentations shall be limited to the remaining items in dispute set forth in the Closing Statement and Dispute Notice) submitted by each of the Purchaser and the Sellers’ Representative to the Independent Accountant within fifteen (15) days after the engagement thereof (which the Independent Accountant shall forward to the other Party) and (iii) one written response submitted to the Independent Accountant within five (5) Business Days after receipt of each such presentation (which the Independent Accountant shall forward to the other Party), and not on independent review.

  (d)	The Independent Accountant shall resolve only those matters that remain in dispute after the thirty (30)-day resolution period.  It is the intent of the Purchaser and the Sellers’ Representative that the process set forth in this Section 2.6 and the activities of the Independent Accountant in connection herewith are not intended to be and, in fact, are not arbitration and that the Independent Accountant shall act as an expert and not an arbitrator and no formal arbitration rules shall be followed (including rules with respect to procedures and discovery).  Notwithstanding anything to the contrary in this Agreement, the scope of the Independent Accountant’s review of any dispute between the Purchaser and the Sellers’ Representative regarding the Dispute Notice and the calculations set forth therein shall be limited solely to the resolution of the remaining disputed portion(s) of such calculations that are set forth in the Dispute Notice, and the Independent Accountant shall not have authority over any other disagreement (including but not limited to questions of law, interpretation of contract (except as it may relate to the interpretation of the Dispute Notice and the calculations set forth therein at dispute). The resolution of the dispute by the Independent Accountant shall be final and binding on, and non-appealable by, the Parties (absent a showing of fraud or manifest error).  No ex parte conferences, oral examinations, testimony, depositions, discovery or other form of evidence gathering or hearings shall be conducted or allowed; provided, that at the Independent Accountant’s request, or as mutually agreed by the Sellers’ Representative and the Purchaser, the Sellers’ Representative and the Purchaser may meet with the Independent Accountant so long as representatives of both the Sellers’ Representative and the Purchaser are present.  The Independent Accountant shall resolve each disputed item by choosing a value not in excess of, nor less than, the greatest or lowest value, respectively, set forth in the presentations (and, if applicable, the responses) delivered to the Independent Accountant pursuant to Section 2.6(c).  The Closing Statement shall be modified, if necessary, to reflect such determination of the Independent Accountant.  The fees and expenses of the Independent Accountant shall be borne by the Purchaser, on the one hand, and the Sellers, on the other hand, 

   

   

  

   

  in inverse proportion as they may prevail on the matters resolved by the Independent Accountant, which proportionate allocation shall be calculated on an aggregate basis based on the relative dollar values of the amounts in dispute and shall be determined by the Independent Accountant at the time the determination is rendered on the merits of the matters submitted to the Independent Accountant.

  (e)	The Purchaser and the Sellers’ Representative agree that the procedures set forth in this Section 2.7 for resolving disputes with respect to the Closing Statement shall be the sole and exclusive method for resolving any such disputes; provided, that this provision shall not prohibit either Party from instituting litigation to enforce any final determination of the Independent Accountant in any court of competent jurisdiction in accordance with Section 9.2.  The substance of any determination of the Independent Accountant shall not be subject to review or appeal, absent a showing of fraud or manifest error.  It is the intent of the Parties to have any final determination by the Independent Accountant proceed in an expeditious manner; however, any deadline or time period contained herein may be extended or modified by the written agreement of the Parties and the Parties agree that the failure of the Independent Accountant to strictly conform to any deadline or time period contained herein shall not be a basis for seeking to overturn any determination rendered by the Independent Accountant which otherwise conforms to the terms of this Section 2.7. 

  2.8	Adjustments.

  (a)	If the Net Working Capital Amount, as finally determined pursuant to Section 2.6, is less than Estimated Net Working Capital Amount, then the Purchaser shall be paid the amount of such deficiency in accordance with Section 2.8(e).  If the Net Working Capital Amount, as finally determined pursuant to Section 2.6, is greater than the Estimated Net Working Capital Amount, then the Sellers shall be entitled to receive such excess amount in accordance with Section 2.8(e).

  (b)	If the Closing Indebtedness, as finally determined pursuant to Section 2.6, is less than Estimated Closing Indebtedness, then the Sellers shall be entitled to receive such deficiency amount in accordance with Section 2.8(e).  If the Closing Indebtedness, as finally determined pursuant to Section 2.6, is greater than the Estimated Closing Indebtedness, then the Purchaser shall be paid the amount of such excess in accordance with Section 2.8(e).

  (c)	If Closing Transaction Expenses, as finally determined pursuant to Section 2.6, are less than Estimated Closing Transaction Expenses, then the Sellers shall be entitled to receive such deficiency amount in accordance with Section 2.8(e).  If the Closing Transaction Expenses, as finally determined pursuant to Section 2.6, are greater than the Estimated Closing Transaction Expenses, then the Purchaser shall be paid the amount of such excess in accordance with Section 2.8(e). 

  (d)	If Closing Cash, as finally determined pursuant to Section 2.6, is greater than Estimated Closing Cash, then the Sellers shall be entitled to receive such excess amount in accordance with Section 2.8(e).  If Closing Cash, as finally determined pursuant to Section 2.6, is less than Estimated Closing Cash, then the Purchaser shall be paid the amount of such deficiency in accordance with Section 2.8(e).

  (e)	Without duplication, all amounts owed pursuant to Section 2.7 shall be aggregated, and the net amount (if any) owed by the Purchaser to the Sellers, on the one hand (any such amount, the “Closing Adjustment Surplus Amount”), or by the Sellers to the Purchaser, on the other hand (any such amount, the “Closing Adjustment Shortfall Amount”), is referred to as the “Final Adjustment Amount.”

  (f)	In the event the Final Adjustment Amount constitutes a Closing Adjustment Surplus Amount, then (x) the Purchaser shall pay to the Sellers an amount in cash equal to the Closing Adjustment Surplus Amount, in accordance with the terms in Section  and (y) the Purchaser and the Sellers’ Representative 

   

   

  

   

  shall deliver joint written instructions to the Escrow Agent instructing the Escrow Agent to deliver to the Sellers (in accordance with their respective Pro Rata Portion) the amount of the Adjustment Escrow Amount. 

  (g)	In the event the Final Adjustment Amount constitutes a Closing Adjustment Shortfall Amount, then the Purchaser and the Sellers’ Representative shall deliver joint written instructions to the Escrow Agent instructing the Escrow Agent to deliver (x) to the Purchaser from the Adjustment Escrow Amount an amount in cash equal to the Closing Adjustment Shortfall Amount; provided, that if the Closing Adjustment Shortfall Amount exceeds the amount of the Adjustment Escrow Amount, then the Sellers shall pay the amount of such excess directly to the Purchaser in accordance with their respective Pro Rata Portions; provided, that in the case of any Seller who holds (or will hold) Purchaser Shares as of the applicable payment date (if applicable), such Seller’s payment obligation may be satisfied at such Seller’s option by the forfeiture and delivery (if applicable) to the Purchaser of a number of Purchaser Shares (valued for such purpose at the closing price of the Purchaser Common Stock as of the trading day immediately prior to the applicable payment date) having an aggregate value equal to the amount of such Seller’s applicable portion of such excess amount, and such Seller and the Purchaser shall take such actions as are reasonably necessary to transfer (or forfeit, if applicable) such number of Purchaser Shares to the Purchaser; provided, further, that if any payment obligations remain outstanding to any Seller under the Note as of such payment date, such Seller’s payment obligation may also be satisfied at such Seller’s option by a decrease to the outstanding principal amount of the Note owing to such Seller; and (y) to the Sellers (in accordance with their respective Pro Rata Portion) any remaining portion of the Adjustment Escrow Amount, if any, after giving effect to the payment of the amounts contemplated by the foregoing clause (x).  

  (h)	Payment of the Final Adjustment Amount shall be made within five (5) Business Days after the last date of final determination pursuant to Section 2.6. 

  2.9	Closing Transaction Expenses; Closing Indebtedness.  At the Closing, the Purchaser shall pay, or cause to be paid, (a) all then unpaid Closing Transaction Expenses included in the Closing Payment Certificate to the applicable recipient thereof (net of any withholding Taxes, if applicable) (except that any change of control bonuses that constitute unpaid Closing Transaction Expenses shall be paid to the Company on the Closing Date and shall be distributed to the applicable recipient thereof (net of any applicable withholding Taxes) promptly following the Closing in accordance with the Company’s ordinary course payroll procedures or a special payroll or other payroll for the payment of such change of control bonuses), and (b) the amount of Indebtedness indicated in the Payoff Letter(s) delivered to Purchaser at least two (2) Business Days prior to the Closing in accordance with the wire instructions set forth therein.

  2.10	Reliance on Consideration Spreadsheet.  The Purchaser and the Escrow Agent shall be permitted to rely, without further inquiry, on the Consideration Spreadsheet in making any payments to the Sellers under this Agreement. The Consideration Spreadsheet shall be prepared in accordance with the Organizational Documents of the Company. 

  2.11	Withholding.  The Company, the Purchaser and the Escrow Agent shall be entitled to deduct and withhold from any consideration payable pursuant to this Agreement to any Person such amounts as are required to be deducted or withheld therefrom under any provision of U.S. federal, state, local or non-U.S. Tax Law or under any other applicable legal requirement.  To the extent such amounts are so deducted or withheld, such amounts shall be properly remitted to the appropriate Tax authority by the Company, the Purchaser and the Escrow Agent, as the case may be, and treated for all purposes as having been paid to the Person to whom such amounts would otherwise have been paid.

  2.12	Registration of Purchaser Shares. 

   

   

  

   

  (a)	Promptly (but in any event no later than thirty (30) days) after the Closing Date (the “Filing Deadline”), the Purchaser shall prepare and file with the U.S. Securities and Exchange Commission (the “SEC”) a Form S-3 registration statement covering the resale of all of the Purchaser Shares (the “Registration Statement”).   The Purchaser shall use its reasonable best efforts to, as soon as reasonably practicable following the filing of the Registration Statement, but in no event later than 20 days following the filing of the Registration Statement (or 60 days following the filing of the Registration Statement solely in the event of a full review of the Registration Statement by the SEC), cause the Registration Statement to be declared effective by the SEC. 

  (b)	After the Registration Statement has been declared effective by the SEC, the Purchaser shall use its reasonable best efforts to keep the Registration Statement continuously effective until the earlier of December 31, 2022 and the date that all Purchaser Shares covered by the Registration Statement are sold or are able to be sold by the holders thereof by relying on Rule 144 under the Securities Act without any restriction, including volume limitation.  Without limiting the foregoing, the Purchaser shall (i) prepare and file with the SEC such amendments to the Registration Statement and amendments or supplements to the prospectus used in connection therewith as may be reasonably necessary to comply with the provisions of the Securities Act with respect to the sale or other disposition of all Purchaser Shares included in the Registration Statement and (ii) register or qualify the Purchaser Shares included in the Registration Statement under the applicable state securities or blue sky laws. 

  (c)	The Purchaser will pay all expenses associated with the Registration Statement and any amendments or supplements thereto, and any actions or filings necessary to maintain the effectiveness of the Registration Statement, including filing and printing fees, the fees and expenses of the Purchaser’s counsel and accounting fees and expenses, costs associated with clearing the Registrable Securities for sale under applicable state securities laws and listing fees, but excluding discounts, commissions, fees of underwriters, selling brokers, dealer managers or similar securities industry professionals with respect to the Purchaser Sales being sold. 

  (d)	The Purchaser covenants that it will file the reports required to be filed by it under the Securities Act and the Exchange Act (as defined below) and the rules and regulations adopted by the SEC thereunder in accordance with the requirements of the Securities Act and the Exchange Act and it will take such further action as Sellers may reasonably request to make available adequate current public information with respect to the Purchaser meeting the current public information requirements of Rule 144(c) under the Securities Act, to the extent required to enable Sellers to sell all Purchaser Shares without registration under the Securities Act within the limitation of the exemptions provided by (i) Rule 144 under the Securities Act or (ii) any similar rule or regulation hereafter adopted by the SEC. In addition, the Purchaser agrees, at its sole expense, to cause its legal counsel to provide a legal opinion to the Purchaser’s transfer agent that is in form and substance sufficient for such transfer agent to remove all applicable legends in connection with, and to otherwise facilitate, the sale of Purchaser Shares under Rule 144 under the Securities Act.    

  (e)	The Purchaser shall indemnify and hold harmless, the Sellers Indemnified Persons, from and against any Losses to which any Seller Indemnified Person may become subject (under the Securities Act or otherwise) to the extent such Losses arise out of, directly or indirectly, any untrue statement of a material fact contained in the Registration Statement or any other document filed in accordance with this Section 2.12(e), or any omission to state therein a fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that the Purchaser will not be liable in any such case to the extent that any such Losses arising out of, directly or indirectly, any untrue statement or omission, made in reliance upon and in conformity with written information furnished to the Purchaser by or on behalf of any Seller specifically for use in the preparation of the Registration Statement. The procedures set forth in Section 7.5 shall apply to any claim for indemnification made pursuant to this Section 2.12(e), mutatis mutandis. 

   

   

  

   

  (f)	At the written request by any Seller to the Purchaser, the Purchaser agrees to use its reasonable best efforts to facilitate and coordinate one or more underwritten sale(s) of the Purchaser Shares by such Seller to one or more third parties (including by way of a “block-trade”), as and when requested in writing by such Seller following the Purchaser Shares Issuance Date. 

  (g)	The term (i) “Sellers” for purposes of this section shall mean (A) the Sellers (as defined above) and (B) Permitted Purchaser Share Transferees who are transferred the right to receive Purchaser Shares in accordance with this Section, and who shall have third-party beneficiary rights under this section; and (ii) “Purchaser Shares” for purposes of this section shall mean (A) the shares of Purchaser Common Stock issued to the Sellers under this Agreement and (B) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing in clause (ii)(A). 

  Article III

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

  The Purchaser hereby represents and warrants to each Seller and to the Company that the following representations and warranties are true and correct as of the date hereof.  

  3.1	Organization; Corporate Power and Authorization.  The Purchaser is a Pennsylvania corporation duly organized, validly existing and in good standing under the Laws of the state of its incorporation.  The Purchaser has the requisite corporate power and authority necessary to enter into, deliver and carry out its obligations pursuant to each of the Transaction Documents to which it is a party.  The Purchaser is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would cause a Purchaser Material Adverse Change.  The Purchaser’s execution, delivery and performance of each Transaction Document to which it is a party has been duly authorized by the Purchaser and no other corporate proceeding on the part of the Purchaser is necessary to authorize the Transaction Documents and the Transactions, and the Purchaser has duly executed and delivered this Agreement and will have, as of the Closing Date, duly executed and delivered each other Transaction Document to which it is a party.

  3.2	Binding Effect; Noncontravention; No Approvals.

  (a)	Each Transaction Document to which the Purchaser is a party constitutes, or when executed will constitute, a valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms, subject to the effect of (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to rights of creditors generally and (ii) rules of law and equity governing specific performance, injunctive relief and other equitable remedies.

  (b)	The execution, delivery and performance by the Purchaser of the Transaction Documents to which the Purchaser is a party and the consummation of the Transactions do not and shall not (with or without notice or lapse of time or both): (i) conflict with or result in a breach of the terms, conditions or provisions of any Organizational Document of the Purchaser; (ii) result in the imposition of any Lien upon any of the properties or assets of the Purchaser; (iii) result in a material breach or material violation by the Purchaser of any of the terms, conditions or provisions of any Law or Order to which the Purchaser or any of its properties or assets is subject; or (iv)  require any Approval to be obtained by the Purchaser which has not been obtained by the Purchaser as of the date hereof.

   

   

  

   

  3.3	Broker Fees.  The Purchaser has not used any broker or finder, or entered into any Contract with any Person which would result in the obligation of the Company or any Seller to pay any fees or commissions to any broker, finder, or agent, with respect to the Transactions.

  3.4	Investment.  The Purchaser is acquiring the Units for its own account, for investment only, and not with a view to any resale or public distribution thereof.  The Purchaser shall not offer to sell or otherwise dispose of the Units in violation of any Law applicable to any such offer, sale or other disposition.  The Purchaser acknowledges that (a) the Units have not been registered under the Securities Act, or any state securities Laws; (b) there is no public market for the Units and there can be no assurance that a public market will develop; and (c) the Purchaser must bear the economic risk of its investment in the Units for an indefinite period of time.  The Purchaser is an “accredited investor” within the meaning of Rule 501 of the Securities Act as presently in effect, and has knowledge and experience in financial and business matters such that it is capable of evaluating the merits and risks of acquiring and holding the Units.

  3.5	No Litigation.  There is no Action pending or, to the Purchaser’s knowledge, threatened against the Purchaser or its properties, assets or businesses, or Order to which the Purchaser is subject which would result in a Purchaser Material Adverse Change.

  3.6	Purchaser SEC Filings. Purchaser has filed all forms, reports, statements and documents (including all exhibits, schedules and annexes thereto) required to be filed by it with the SEC since the date that is twelve (12) months prior to the Closing Date, including any amendments or supplements thereto (collectively, the “Purchaser SEC Reports”). As of their respective dates (and, if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing) none of the Purchaser SEC Reports contained at the time of filing, and none of the Purchaser SEC Reports filed after the date of this Agreement and prior to the Closing Date (and, if amended or superseded by a filing prior to the Closing Date, then on the date of such filing) will contain, any untrue statement of a material fact or omitted (or will have omitted) to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and all of the Purchaser SEC Reports complied in all material respects with the requirements of the Securities Act and the Securities Exchange Act of 1934, as amended, and the applicable rules and regulations promulgated thereunder (the “Exchange Act”), as the case may be.  Since the date of the last Purchaser SEC Report, there has not been the occurrence or non-occurrence of any event, the occurrence or non-occurrence of which resulted in, or would reasonably be likely to result in, a material adverse effect with respect to Purchaser.  The financial statements (including any related notes) contained in Purchaser SEC Reports (collectively, the “Purchaser Financial Statements”) (i) complied as to form in all material respects with the published rules and regulations of the SEC applicable thereto and (ii) were prepared in accordance with GAAP, consistently applied, and present fairly in all material respects the consolidated financial position and results of operations of Purchaser and its Subsidiaries (taken as a whole) as of the times and for the periods referred to therein, subject in the case of the unaudited financial statements to the absence of footnote disclosures and other presentation items and changes resulting from normal year-end adjustments.  To Purchaser’s knowledge, none of the Purchaser SEC Reports is the subject of ongoing SEC review and there are no inquiries or investigations by the SEC or any internal investigations pending or threatened, in each case regarding any accounting practices of Purchaser or any of its Subsidiaries. 

  3.7	Purchaser Shares. At the Closing, (a) Purchaser will have an adequate amount of authorized shares of Purchaser Common Stock to effect the issuance to the Sellers of the Purchaser Shares in accordance with this Agreement and (b) all of the Purchaser Common Shares (i) will be duly authorized, validly issued, fully paid and nonassessable, (ii) will be issued in compliance with applicable securities Laws or exemptions therefrom, (iii) will not be subject to, or issued in violation of, any purchase option, call option, right of first refusal, preemptive right or any similar right, and (iv) will be free of all Liens, other than restrictions imposed under applicable securities Laws.

   

   

   

  

   

  3.8	Exchange Act Compliance. The Purchaser Common Stock is registered pursuant to Section 12(b) of the Exchange Act and listed on NASDAQ.  The issuance of the Purchaser Shares to the Sellers under this Agreement does not require stockholder approval of Purchaser, including, without limitation, pursuant to the rules and regulations of NASDAQ.

  3.9	Form S-3 Eligibility. The Purchaser is eligible to register the Purchaser Shares to be issued to the Sellers under this Agreement for resale using Form S-3 promulgated under the Securities Act. 

  3.10	Number of Purchaser Shares.  The number of Purchaser Shares represents approximately 19.999% of the issued and outstanding shares of capital stock of the Purchaser as of immediately prior to the Closing.  

  Article IV

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

  Each Seller, as to such Seller, hereby represents and warrants to the Purchaser that the following representations and warranties are true and correct as of the date hereof.  

  4.1	Power and Authorization.  If such Seller is not an individual, such Seller is validly existing and in good standing under the Laws of the state of its formation, as applicable, and has the requisite entity power and authority necessary to enter into, deliver and carry out its obligations pursuant to each of the Transaction Documents to which it is a party.  If such Seller is not an individual, such Seller’s execution, delivery and performance of each Transaction Document to which it is a party has been duly authorized by such Seller and no other entity proceeding on the part of such Seller is necessary to authorize the Transaction Documents to which such Seller is a party.  Such Seller has duly executed and delivered this Agreement and will have, as of the Closing Date, duly executed and delivered each other Transaction Document to which it is a party.

  4.2	Binding Effect and Noncontravention; Approvals. 

  (a)	Each Transaction Document to which such Seller is a party constitutes, or when executed will constitute, a valid and binding obligation of such Seller enforceable against such Seller in accordance with its terms, subject to the effect of (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to rights of creditors generally and (ii) rules of law and equity governing specific performance, injunctive relief and other equitable remedies.

  (b)	The execution, delivery, and performance by such Seller of the Transaction Documents to which such Seller is a party and the consummation of the Transactions do not and shall not (with or without notice or lapse of time or both): (i) conflict with or result in a breach of the terms, conditions, or provisions of any Organizational Document of such Seller (if applicable); (ii) result in a material breach or material violation of any of the terms, conditions or provisions of any Law or Order to which such Seller or any of its properties or assets is subject; (iii) result in a material breach or material violation of any of the terms, conditions or provisions of any Contract to which such Seller is a party or by which such Seller’s assets or properties are bound; or (iv) require any Approval to be obtained by such Seller which has not been obtained by such Seller as of the date hereof.

  4.3	Units.  Such Seller holds of record, owns beneficially and has good and valid title to the Units set forth opposite such Seller’s name on Section 5.3(a) of the Company Disclosure Schedule, as applicable, free and clear of any and all Liens, other than any applicable transfer restrictions arising under applicable securities Laws or under the Operating Agreement.  Such Seller is not a party to any voting trust, proxy or other agreement 

   

   

  

   

  or understanding with respect to the voting of its Units.  Such Seller is not a party to any option, warrant, purchase right or other contract that would require such Seller to sell, transfer or otherwise dispose of its Units (other than to the Purchaser pursuant to the terms of this Agreement).  Except for the Units set forth opposite such Seller’s name on Section 5.3(a) of the Company Disclosure Schedule, such Seller does not own any securities of the Company or any right to acquire any securities of the Company. 

  4.4	No Litigation.  There is no Action pending or, to such Seller’s Knowledge, threatened in writing, against such Seller (a) challenging or seeking to restrain, delay or prohibit any of the Transactions, (b) preventing such Seller from performing in all material respects such Seller’s obligations under the Transaction Documents to which such Seller is a party, or (c) related to the Company.

  4.5	Broker Fees.  Such Seller has not used any broker or finder, or entered into any Contract with any Person which would result in the obligation of the Company to pay any fees or commissions to any broker, finder, or agent, with respect to the Transactions. 

  4.6	Purchaser Shares.  

  (a)	Such Seller (i) is an “accredited investor” (within the meaning of Rule 501(a)(1), Rule 501(a)(2), Rule 501(a)(3), or Rule 501(a)(7) under the Securities Act); (ii) will receive the Purchaser Shares only for such Seller’s own account and not for the account of others and such Seller has full investment discretion with respect to each such account, and the full power and authority to make the acknowledgements, representations and agreements herein on behalf of each owner of each such account, provided, however, that this does not limit the transfer of the right to receive any of the Purchaser Shares pursuant to Section 2.4(b); and (iii) is not receiving the Purchaser Shares with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act.   

  (b)	Such Seller understands that the Purchaser Shares are being offered in a transaction not involving any public offering within the meaning of the Securities Act and that the Purchaser Shares have not been registered under the Securities Act or any state securities Law in reliance on the availability of an exemption from such registration.  Such Seller understands that the Purchaser Shares may not be offered, resold, transferred, pledged or otherwise disposed of by such Seller absent an effective registration statement under the Securities Act, except (i) to the Purchaser or a subsidiary thereof, or (ii) pursuant to an applicable exemption from the registration requirements of the Securities Act, and, in each of cases (i) and (ii), in accordance with any applicable securities Laws of the states and other jurisdictions of the United States, and that any certificates or book entries representing the Purchaser Shares shall contain a legend to such effect.  Such Seller acknowledges that the Purchaser Shares will not be eligible for resale pursuant to Rule 144A promulgated under the Securities Act. Such Seller understands and agrees that the Purchaser Shares will be subject to transfer restrictions and, as a result of these transfer restrictions, such Seller may not be able to readily resell the Purchaser Shares and may be required to bear the financial risk of an investment in the Purchaser Shares for an indefinite period of time. Such Seller understands that such Seller has been advised to consult legal counsel prior to making any offer, resale, pledge or transfer of any of the Purchaser Shares.

  (c)	Such Seller acknowledges that such Seller is aware that there are substantial risks incident to the purchase and ownership of the Purchaser Shares.  Such Seller is a sophisticated accredited investor and has such knowledge and experience in financial and business matters, and in investing in private placement securities, as to be capable of evaluating the merits and risks of an investment in the Securities.  At the time of making such Seller’s investment decision, such Seller has had access to such financial and other information concerning the Purchaser and its subsidiaries as such Seller deemed necessary or desirable in making a decision to receive the Purchaser Shares, including an opportunity to ask questions and receive answers from officers of the Purchaser and to obtain additional information necessary to verify the accuracy of any information furnished 

   

   

  

   

  to such Seller or to which such Seller had access.  Such Seller has independently made such Seller own analysis and decision to acquire the Securities and determined based on such Seller own independent review, and such professional advice from such Seller own advisors (including as to tax, legal and accounting matters) as such Seller may deem appropriate, that such Seller’s receipt of the Purchaser Shares (i) is consistent with such Seller’s financial needs, objectives and condition, (ii) complies with all investment policies, guidelines and other restrictions that are applicable to such Seller, (iii) does not and will not violate any law, rule, regulation, agreement or other obligation to which such Seller is bound (assuming the accuracy of the Company’s representations and warranties contained herein), and (iv) is a fit, proper and suitable investment for such Seller, notwithstanding the risks associated with a purchase of the Purchaser Shares and ownership of the Purchaser Shares. Without limitation of the foregoing, such Seller acknowledges that the Purchaser and its advisors are not providing tax advice of any kind with respect to the transactions contemplated hereby, including the tax consequences relating to receipt of the Purchaser Shares contemplated hereby, and such Seller acknowledges that such Seller has been advised to consult with such Seller’s own tax advisor regarding the tax consequences of receiving Purchaser Shares pursuant to this Agreement. 

  (d)	Such Seller is not (i) a person named on the List of Specially Designated Nationals and Blocked Persons administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) or in any Executive Order issued by the President of the United States and administered by OFAC (“OFAC List”), or a person prohibited by any OFAC sanctions program or (ii) a Designated National as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515.  Such Seller agrees to provide law enforcement agencies, if requested thereby, such records as required by applicable law, provided that such Seller is permitted to do so under applicable law.  Neither such Seller nor any of such Seller’s Affiliates is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act. 

  Article V

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

  Except as expressly set forth on the Company Disclosure Schedule, the Company hereby represents and warrants to the Purchaser that the following representations and warranties are true and correct as of the date hereof.  

  5.1	Organization; Qualification; Limited Liability Company Power and Authorization.  The Company is a limited liability company duly formed, validly existing and in good standing under the Laws of the State of California.  The Company is duly authorized to (a) conduct business in the manner in which its business is currently being conducted; (b) to own and use its assets in the manner in which its assets are currently owned and used; and (c) to execute and deliver the Transaction Documents to which it is a party and perform its obligations hereunder and thereunder.  The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify or be in good standing would cause a Company Material Adverse Change.  The Company has the requisite limited liability company power and authority necessary to enter into, deliver and carry out its obligations pursuant to each of the Transaction Documents to which it is a party.  The execution, delivery and performance of each Transaction Document by the Company to which it is a party has been duly authorized by the Company and no other limited liability company proceeding on the part of the Company is necessary to authorize the Transaction Documents and the Transactions, and the Company has duly executed and delivered this Agreement and the Company will have, as of the Closing Date, duly executed and delivered each other Transaction Document to which it is a party.  The Company has not conducted business under any d/b/a or fictitious name, other than its company name.

  5.2	Binding Effect and Noncontravention; Approvals. 

   

   

  

   

  (a)	Each Transaction Document to which the Company is a party constitutes, or when executed will constitute, a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to the effect of (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to rights of creditors generally and (ii) rules of law and equity governing specific performance, injunctive relief and other equitable remedies.

  (b)	Except as otherwise set forth in Section 5.2 of the Company Disclosure Schedule, the execution, delivery, and performance by the Company of the Transaction Documents to which the Company is a party and the consummation of the Transactions do not and will not (with or without notice or lapse of time or both): (i) conflict with or result in a breach of the terms, conditions, or provisions of the Organizational Documents of the Company; (ii) result in the imposition of any material Lien (other than a Permitted Lien) upon any of the properties or assets of the Company; (iii) result in a material breach or violation by the Company of any of the terms, conditions or provisions of any Law or Order to which the Company is subject or by which the Company’s assets or properties are bound; (iv) conflict with, or result in any violation of or default under, or give rise to a right of termination, cancellation, acceleration or modification of any obligation to or loss of a benefit under, or to increased, additional, accelerated or guaranteed material rights or entitlements of any Person under, any Material Contract, in each case except where such occurrence set forth in this clause (iv) would not result in a Company Material Adverse Change; or (v)  require any material Approval to be obtained by the Company which has not been obtained by the Company as of the date hereof. 

  5.3	Capitalization. 

  (a)	The Sellers own the Units set forth opposite each such Seller’s name on Section 5.3(a) of the Company Disclosure Schedule and all such Units set forth on Section 5.3(a) of the Company Disclosure Schedule represent 100% of the issued and outstanding equity securities of the Company.  All of the outstanding Units have been duly authorized, are validly issued, fully paid, and non-assessable, have been offered, issued, sold and delivered in compliance with all applicable federal and state securities Laws and are held of record and beneficially by the Sellers and are not subject to or have not been issued in violation of any preemptive or subscription rights or any option, call option, right of first refusal, or any similar right under any provision of applicable Law, any Organizational Document of the Company or any Contract to which the Company is a party or otherwise bound, in each case that has not been waived.  There are no outstanding or authorized options, warrants, puts, calls, purchase rights, subscription rights, conversion rights, exchange rights, restricted stock awards, or other contracts or commitments that would require the Company to issue, sell or otherwise cause to become outstanding any of its equity.  There are no outstanding or authorized equity appreciation, phantom equity, profit participation, earnout rights or similar rights with respect to the Company.  There are no, and at the Closing there shall not be any, voting agreements, proxies, registration rights, rights of first refusal, preemptive rights, co-sale rights or other restrictions applicable to any outstanding securities of the Company. There are no outstanding obligations, contingent or otherwise, of the Company to repurchase, redeem, exchange or otherwise acquire the Units or any other equity interests of the Company. 

  (b)	There is no Liability for dividends accrued and unpaid by the Company.  All prior repurchases of equity consummated by the Company, if any, were effected in compliance with all Laws and applicable Contracts, and there are no contingent or other Liabilities remaining in connection therewith.  

  5.4	Subsidiaries.  The Company has no Subsidiaries and does not own any equity interests in any other Person.

   

   

  

   

  5.5	Financial Statements.

  (a)	Section 5.5(a) of the Company Disclosure Schedule sets forth the Company’s (i) unaudited consolidated balance sheet of the Company as of June 30, 2021 (the “Latest Balance Sheet”) and the related consolidated statements of income and cash flows for the six-month period then ended (collectively, the “Unaudited Financial Statements”), and (ii) audited balance sheet and statements of income, members’ equity and cash flows of the Company for each of the fiscal years ended December 31, 2020, December 31, 2019 and December 31, 2018 (collectively, the “Audited Financial Statements”, and together with the Unaudited Financial Statements, the “Financial Statements”).  The Financial Statements are complete and correct in all material respects, have each been prepared from the books and records of the Company and in accordance with GAAP, consistently applied, and present fairly in all material respects the consolidated financial condition and results of operations of the Company as of the times and for the periods referred to therein, subject in the case of the unaudited financial statements to (x) the absence of footnote disclosures and other presentation items and (y) changes resulting from normal year-end adjustments which are not material in amount or significance in any individual case or in the aggregate. 

  (b)	Except as set forth in the Financial Statements, the Company has no material Liabilities or obligations, contingent or otherwise, other than: (i) current Liabilities incurred in the ordinary course of business, consistent with past practice, subsequent to the date of the Latest Balance Sheet (none of which is a liability resulting from a violation of Law, breach of contract, breach of warranty, tort, infringement or misappropriation); (ii) obligations under any Contract to which the Company is a party that has been made available to the Purchaser prior to the date hereof and that are expressly set forth in and are identifiable by reference to the text of such Contract; and (iii) other commitments that are  disclosed on Section 5.5(b) of the Company Disclosure Schedule.  

  (c)	The Company maintains a standard system of accounting established and administered in accordance with GAAP and sufficient to provide reasonable assurances that (i) all transactions are executed in accordance with management’s general or specific authorization, (ii) all transactions are recorded as necessary to permit the preparation of the Financial Statements in conformity with GAAP and to maintain proper accountability for items, (iii) access to its property and assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for items is compared with the actual levels at reasonable intervals and appropriate action is taken with respect to any differences. The Company is not party to any “off balance sheet arrangements” (as defined in the Exchange Act).

  5.6	Absence of Certain Developments.  Since the date of the Latest Balance Sheet through the date hereof, (i) the Company has conducted its business in the ordinary course of business consistent with past practice, (ii) no Company Material Adverse Change has occurred, and (iii) the Company has not:

  (a)	declared, set aside or paid any dividends on or in respect of, any of its equity, or otherwise make any payments to its owners in their capacity as such, (ii) split, combined or reclassified any of its capital equity, (iii) purchased, redeemed or otherwise acquired any of its equity or any other securities thereof or any rights, warrants or options to acquire any such equity or other securities or (iv) adopted a plan of or effect any complete or partial liquidation or adopt resolutions providing for or authorizing such liquidation or adopt a plan of or effect any dissolution, merger, consolidation, restructuring, recapitalization or reorganization of the Company;

  (b)	authorized for issuance, issued, delivered, sold, pledged, disposed of or granted (i) any Company equity, (ii) any other equity or voting securities, or (iii) any securities convertible into or exchangeable for, or any options, warrants or rights to acquire, any such equity, equity or voting securities or convertible or exchangeable securities;

   

   

  

   

  (c)	amended any Organizational Document of the Company;

  (d)	acquired or agreed to acquire (i) by merging or consolidating with, or by purchasing all or a substantial portion of the assets of, any business of any Person or division thereof, (ii) any assets other than those acquired in the ordinary course of business, or (iii) equity interests in any Person; 

  (e)	except as required by the terms of any Employee Plan or any applicable Law, (i) granted to any employee, director or other service provider of the Company any increase in compensation or benefits, except for any grants made in the ordinary course of business, (ii) granted to any employee, director or other service provider of the Company any increase in severance or termination pay, (iii) entered into or amended any employment, consulting, severance or termination agreement with any Person, except for any employment or consulting agreements entered into in the ordinary course of business, (iv) established, adopted, entered into, terminated or amended in any material respect any Employee Plan (or arrangement that, had it been in existence on the date of this Agreement, would be an Employee Plan), (v) taken any action to accelerate any rights or benefits, or made any material determinations not in the ordinary course of business, under any collective bargaining agreement or Employee Plan, (vi) loaned or advanced money or other property to any employee of the Company, other than employee advances for travel, business or entertainment expenses made in the ordinary course of business, or (vii) failed to make contributions to an Employee Plan in accordance with past practice;

  (f)	made any change in accounting methods, principles or practices affecting the reported consolidated assets, Liabilities or results of operations of the Company, except insofar as may have been required by a change in GAAP, or changed or modified any cash management, credit collection or payment policies, practices or procedures (including any acceleration in the collection or receivables or delay in the payment of payables);

  (g)	sold, leased, licensed, mortgaged, encumbered or otherwise disposed of or permit to become subject to any Lien, other than a Permitted Lien, any properties or assets of the Company, tangible or intangible, other than in the ordinary course of business;

  (h)	entered into any transaction with an Affiliate or other Related Party; 

  (i)	(i) incurred any Indebtedness or guaranteed any Indebtedness of another Person or (ii) made any loans, advances or capital contributions to, or investments in, any other Person (other than employee advances for travel, business or entertainment expenses made in the ordinary course of business in accordance with the Company’s customary expense reimbursement policies) or (iii) canceled or compromised any debt or material claim of the Company in any material respect;

  (j)	made or changed any Tax election, adopted or changed any Tax accounting method, consented to the extension or waiver of the limitations period applicable to any Tax claim or assessment, entered into any closing agreement with respect to any Taxes, or settled or compromised any Tax Liability;

  (k)	initiated, settled or compromised any Action;

  (l)	terminated or extended, waived, modified, rescinded or made (or agreed to) any material amendments to, or waived or accelerated any rights or benefits under, any Material Contract;

  (m)	made or entered into any commitment for material capital expenditures of the Company; or

   

   

  

   

  (n)	authorized the Company to do any of the foregoing, or entered into any Contract to do any of the foregoing.

  5.7	Assets.  Except as set forth on Section 5.7 of the Company Disclosure Schedule, the Company has good and valid title to, or a valid leasehold interest in, all of its assets, free and clear of any and all Liens, other than Permitted Liens.  After giving effect to the divestiture of the Patents to IriSys on or prior to the date hereof, all such assets collectively represent all assets necessary for the conduct of the business of the Company as currently conducted and in the manner conducted during the periods covered by the Financial Statements.  Except for leased items, no Person other than the Company owns any interest in any such assets.  All such assets are (i) in good operating condition and repair for the conduct of the business of the Company as of immediately after the Closing, (ii) free of defects, normal wear and tear excepted, and (iii) sufficient for the uses to which they are being put, except as would not, individually or in the aggregate, be material to the business of the Company, taken as a whole. 

  5.8	Tax Matters. 

  (a)	The Company has filed all income and other material Tax Returns that it is required to file.  All such Tax Returns are true, complete and correct in all material respects. All Taxes due and owing by the Company (whether or not shown on any Tax Return) have been timely paid.  The Company is not currently the beneficiary of any extension of time within which to file any Tax Return that has continuing effect, other than any such extension that was automatically granted.

  (b)	None of the Company’s Tax Returns are currently the subject of any audit or proceeding by any Tax authority. The Company has not been notified in writing of any request for an audit of, or a proceeding related to, the Company’s Tax Returns. 

  (c)	The Company is not a party to any Tax allocation, indemnity or sharing agreement (other than any commercial agreement entered into in the ordinary course of business the primary purpose of which is not Tax related).  The Company has never been a member of an Affiliated Group filing a consolidated federal Tax Return.  The Company has no liability for Taxes of any Person (other than the Company) under Treasury Regulations Section 1.1502-6 (or any corresponding provision of state, local or foreign Law), as transferee or successor, by contract or otherwise (other than pursuant to a commercial agreement entered into in the ordinary course of business the primary purpose of which is not Tax related).

  (d)	The Company has not agreed to make, and the Company is not required to make, any adjustment under Section 481(a) of the Code (or any similar provision of applicable state, local or foreign Law) by reason of a change in accounting method or otherwise occurring prior to or on the Closing Date.  The Company will not be required to include any material item of income in, or exclude any material item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any: (i) “closing agreement” as described in Section 7121 of the Code (or any corresponding provision of state, local or foreign income Tax Law) entered into prior to the Closing; (ii) installment sale or open transaction disposition made prior to the Closing; (iii) prepaid amount received outside of the ordinary course of business prior to the Closing; or (iv) any election under Section 108(i) of the Code.

  (e)	The Company has timely paid or withheld with respect to its employees, independent contractors, creditors, members and other third parties (and timely paid over any withheld amounts to the appropriate Tax authority) all Taxes required to be withheld or paid and the Company has complied in all material respects with all information reporting and backup withholding provisions of applicable Law.

   

   

  

   

  (f)	There is no Tax deficiency outstanding, assessed or proposed in writing against the Company, nor has the Company executed any waiver of any statute of limitations on or extension of the period for the assessment or collection of any Tax that remains in effect.  No adjustment relating to any Tax Return filed by the Company has been proposed in writing by any Tax authority to the Company.  No written claim has been made by an authority in a jurisdiction where the Company does not file Tax Returns that it is or may be subject to taxation by that jurisdiction.   

  (g)	There are no Liens on the assets of the Company relating to or attributable to Taxes other than Permitted Liens.

  (h)	For purposes of the Code, the Company is and has been classified as a partnership as described in Treasury Regulations Section 301.7701-3(b)(1)(i) during all periods prior to the Closing.

  (i)	The unpaid Taxes of the Company did not, as of the date of the Latest Balance Sheet, exceed the reserve for Tax liability set forth on the face of the Financial Statements. 

  (j)	No Seller is a “foreign person” as that term is used in Treasury Regulations Section 1.1445-2. The Company is not, nor has it been, a United States real property holding corporation (as defined in Section 897(c)(2) of the Code) during the applicable period specified in Section 897(c)(1)(a) of the Code.

  (k)	The Company is not, and has not been, a party to, or promoter of, a “reportable transaction” within the meaning of Section 6707A(c)(1) of the Code and Treasury Regulations Section 1.6011-4(b). 

  (l)	The Company (i) has not made any election under the Partnership Audit Provisions to have them apply to the Company with respect to any period (or portion thereof) before January 1, 2018, and (ii) has not made any election to opt out of the Partnership Audit Provisions with respect to any period (or portion thereof) after December 31, 2017.

  (m)	Except as set forth on Section 5.8(n) of the Company Disclosure Schedule, the Company has not (i) deferred payment of any payroll Taxes pursuant to Section 2302 of the CARES Act, (ii) claimed the employee retention credit pursuant to the Section 2301 of the CARES Act or other credit pursuant to any Covid-19 Law, or (iii) amended any income Tax return for a taxable year prior to 2021 in order to carry back a net operating loss to such year.

  (n)	Neither the Company nor any related persons within the meaning of Section 197 of the Code has held or used, at any time on or prior to August 10, 1993, any Section 197 intangible described in subparagraph (A) or (B) of Section 197(d)(1) of the Code.

  5.9	Environmental Matters.  

  (a)	The Company has during the past three (3) years been, and is currently, in compliance, in all material respects, with all applicable Environmental Laws.   The Company has not received any written notice of a potential violation of applicable Environmental Laws or any potential Liability pursuant to Environmental Law.  There is no Action pending or, to the Knowledge of the Company, threatened against the Company pursuant to Environmental Laws.  Except in compliance with Environmental Laws or in a manner that would not be reasonably likely to result in a material Liability to the Company, no Hazardous Material has been Released at, on, under or are present on any real property (including the soil, groundwater, surface water on or under the property) currently or formerly owned, operated, occupied, or leased by the Company (including the soil, groundwater, surface water on or under the property).  The Company has made available to the 

   

   

  

   

  Purchaser all Environmental Permits, environmental site assessment reports, evaluations, or investigations and environmental audits in their possession or control relating to the operation of the business or any real property currently or formerly owned, leased, occupied, or operated by the Company at any time, and any other material documents related to the Company’s compliance with Environmental Law or any potential Liability pursuant to Environmental Law.   The Company has not agreed to indemnify or hold harmless or assume any actual or potential Liability under any Environmental Laws of any other Person. Neither this Agreement nor the consummation of this Transaction will result in any obligations for site investigation or cleanup, or notification to or consent of any Governmental Entity or any other Person, pursuant to any of the so-called “transaction-triggered” or “responsible property transfer” Environmental Laws.

  (b)	Section 5.9(b) of the Company Disclosure Schedule contains a true, correct and complete list of all Environmental Permits pertaining to the Company and its business. The Company currently has all Environmental Permits that are required for the operation of its business as presently operated, all of which are in full force and effect, except as would not reasonably be expected to adversely affect the Company in any material respect. The Company (i) is not in violation, in any material respect, of any terms or conditions of any Environmental Permit, or (ii) has not received any written notice of a pending violation of any Environmental Permit. No Action is pending or, to the Knowledge of the Company, threatened, to revoke, prevent the renewal of, rescind, modify, refuse to renew or limit any such Environmental Permit, nor has the Company received any written notice from any Governmental Entity with respect to same. The Company has timely filed or caused to be timely filed any and all applications for the renewal of any Environmental Permit, except as would not reasonably be expected to adversely affect the Company in any material respect.

  5.10	Intellectual Property.

  (a)	Section 5.10(a) of the Company Disclosure Schedule sets forth a true and complete list of all (i) patented and registered Company Intellectual Property Rights, (ii) pending patent applications and applications for registration of other Company Intellectual Property Rights filed by or on behalf of the Company, (iii) trade or corporate names used by the Company, (iv) material unregistered trademarks and service marks owned or used by the Company and (v) all domain names owned or used by the Company. None of the patents and patent applications disclosed or required to be disclosed on Section 5.10(a)(i) of the Company Disclosure Schedule (the “Patents”)  is necessary or useful for the performance in full of any of the business or operations of the Company as currently conducted. 

  (b)	To the Knowledge of Company, after due inquiry, (i) all necessary registration, maintenance and renewal fees for each item of registered Company Intellectual Property Rights have been paid and all necessary documents, recordations and certificates in connection with such Company Intellectual Property Rights have been filed with the relevant Governmental Entity for the purposes of maintaining or perfecting such Company Intellectual Property Rights; (ii) all registrations for registered Company Intellectual Property Rights are in good standing and subsisting; and (iii) except as set forth in Section 5.10(b) of the Company Disclosure Schedule, there are no actions that must be taken or payments that must be made by the Company within one hundred and eighty (180) days following the date hereof that, if not taken, will adversely affect any registered Company Intellectual Property Rights.

  (c)	Except with respect to any Off-The-Shelf Software or as set forth on Section 5.10(c) of the Company Disclosure Schedule, the Company owns all right, title and interest to, or has the right to use, free and clear of all Liens (except Permitted Liens and restrictions contained in any applicable license), all Company Intellectual Property Rights and Licensed Intellectual Property Rights used by the Company in the conduct of the  Company’s business.

   

   

  

   

  (d)	All of the agreements pursuant to which the Company has been granted rights by third parties with respect to Licensed Intellectual Property Rights used by the Company in the conduct of the Company’s business (each, an “IP License”) are in force and effect and are binding and enforceable against the Company.  Neither the Company nor, to the Knowledge of the Company, any other party thereto is in material breach or material default of any IP License.  To the Knowledge of the Company, no event has occurred that with notice or lapse of time would constitute a material breach or material default under any IP License by the Company.  The Company has not received any written notice from any third party asserting a claim, or threatening to make a claim, which would materially and adversely affect the rights of the Company under any IP License.  

  (e)	The Company has not received any written notice from any third party challenging or threatening to challenge the right, title or interest of the Company in, to or under the Company Intellectual Property Rights or asserting any opposition, interference, invalidity, termination, abandonment, or other infirmity of any Company Intellectual Property Rights.

  (f)	Except as set forth in Section 5.10(f) of the Company Disclosure Schedule, the execution and delivery of this Agreement and the consummation of the Transactions will not result in (i) the Company granting to any third party any rights or licenses to any Intellectual Property Rights, (ii) any IP License being subject to any non-compete or other restriction on its use or operation, to which it is not subject prior to the Closing, or (iii) the imposition of any Lien on Company Intellectual Property Rights. Except as set forth in Section 5.10(f) of the Company Disclosure Schedule, following the execution and delivery of this Agreement and the consummation of the Transactions, the Purchaser will be permitted to exercise all of the Company’s rights under all IP Licenses to the same extent the Company would have been able to had the Transactions not occurred and without being required to pay any additional amounts or consideration other than fees, royalties or payments which the Company would otherwise be required to pay had the Transactions not occurred.

  (g)	The Company has taken reasonable steps in accordance with industry standards to protect the Company’s trade secrets, including by having officers, employees and consultants of the Company execute agreements providing for the protection of proprietary information of the Company.  All officers, employees and consultants of the Company who are or have been involved in the creation or development of Company Intellectual Property Rights have executed and delivered to the Company an agreement providing for the assignment by such Persons to the Company of any Company Intellectual Property Rights made in the course of such Persons’ employment or engagement by the Company.  To the Knowledge of the Company, no officer, employee or consultant of the Company is in violation of any term of any such proprietary information and assignment agreement between such Person and the Company. 

  5.11	Real Estate.

  (a)	The Company does not own any real property and has never owned any real property, nor is the Company party to any agreement to purchase or sell any real property.  Section 5.11(a) of the Company Disclosure Schedule sets forth all real property that the Company leases, subleases, uses or occupies (the “Company Facilities”) and a listing of the lease or sublease documents pertaining thereto.  The Company has provided (or made available to) the Purchaser with true, correct and complete copies of all leases, lease guaranties, subleases, agreements for the leasing, use or occupancy of, or otherwise granting a right in or relating to the Company Facilities, including all amendments, terminations and modifications thereof (the “Company Leases”). 

  (b)	Except as set forth on Section 5.11(b) of the Company Disclosure Schedule, with respect to each Company Lease, (i) the Company has a valid leasehold interest, free and clear of any and all Liens, other than Permitted Liens, (ii) there is not, under any Company Leases, any existing material breach or material 

   

   

  

   

  default (or event which with notice or lapse of time, or both, would constitute a material breach or material default) of the Company or, to the Knowledge of the Company, any other party thereto, (iii) the Company’s possession and quiet enjoyment of the Leased Real Property under such Lease has not been disturbed, and to the Knowledge of the Company, there are no disputes with respect to such Lease and (iv) the Company has not subleased, licenses or otherwise granted any Person the right to use or occupy any real property subject to such Company Leases or any portion thereof; and (v) the Company has not collaterally assigned or granted any other security interest in such Company Lease or any interest therein.

  5.12	Litigation.  Except as set forth on Section 5.12 of the Company Disclosure Schedule, there is, and for the past three (3) years has been, no Action pending or, to the Knowledge of the Company, threatened in writing, against (a) the Company, (b) the Company’s officers, managers, employees or members, in their capacity as such, or (c) the assets, properties or business of the Company.   The Company is not subject to any Order.  There is no Action pending or threatened by or on behalf of the Company against any other Person.  There is no Action pending or, to the Knowledge of the Company, threatened in writing against the Company which challenges the validity of this Agreement or the Transactions or otherwise seeks to delay, limit or enjoin the Transactions.

  5.13	Employee and Labor Relations.  

  (a)	Section 5.13(a) of the Disclosure Schedule sets forth a complete and accurate list of all current employees of the Company with the following information: (i) employee name and identification number, (ii) job title, (iii) hire date, (iv) hourly rate for non-exempt employees or base salary for exempt employees, (v) bonus eligibility, (vi) commission eligibility, (vii) Fair Labor Standards Act classification as exempt or non-exempt, (viii) part-time/full-time status, (ix) active/inactive status (and if inactive, start date of leave and expected return to work date), (x) visa status (including visa type and expiration date, if applicable), and (xi) assigned work location (city, state).  Section 5.13(a) of the Disclosure Schedule sets forth a complete and accurate list of all single natural person independent contractors who currently provide services to the Company with the following information: name, brief description of services, term of engagement, compensation arrangement (hourly rate, fixed fee, etc.) and annual fees paid, and location of services (city, state).  Except as provided in Section 5.13(a) of the Company Disclosure Schedule, all employees are employed at-will and are not entitled to severance pay or other compensation (except accrued wages and benefits) upon termination of employment. To the Knowledge of the Company, the Company does not employ or retain any employee or independent contractor who is a party to, or is otherwise bound by, any agreement that adversely affects or restricts the performance of the employee’s or independent contractor’s duties for the Company, including any confidentiality, non-solicitation or non-competition agreement between any such employee or independent contractor and a third party

  (b)	The Company has complied, and is currently in compliance, in all material respects with, all applicable Laws relating to employment of employees and the engagement of independent contractors/consultants, including, all such applicable Laws relating to labor relations, equal opportunity, fair employment practices, prohibited discrimination and harassment, wage and hour, immigration, employee safety and health, workers’ compensation, leaves of absence, and paid sick leave.  There has been no charge of discrimination filed against the Company with the Equal Employment Opportunity Commission or similar Governmental Entity during the three (3) years prior to the date of this Agreement. In the three (3) years prior to the date of this Agreement, there have been no Actions against the Company nor are any such Actions pending, or to the Knowledge of the Company, threatened to be brought or filed, by or with any Governmental Entity in connection with the application for employment, employment or termination of employment of any current or former employee of the Company, the retention or use of any independent contractor or leased employee, or any other labor or employment practices or laws. In accordance with applicable Laws, each person performing services for the Company is and has been for the past three (3) years (i) properly classified as an 

   

   

  

   

  employee or independent contractor, (ii) if an employee, properly classified as an exempt or non-exempt employee under the Fair Labor Standards Act or other applicable wage and hour Law, and (iii) paid all wages (including any required minimum wage, overtime pay, meal and rest breaks and waiting time penalties), benefits, and other compensation for all services performed by such person.

  (c)	There has not been pending or existing during the three (3) year period preceding the date of this Agreement any strike, picketing, slowdown, work stoppage, lockout or other labor dispute involving the Company.  There is no unfair labor practice charge or complaint against the Company pending before the National Labor Relations Board or similar Governmental Entity, and to the Knowledge of the Company, no such charge or complaint has been made against the Company during the three (3) years prior to the date of this Agreement.  No application or petition for an election of or for certification of a collective bargaining agent relating to the Company is pending as of the date of this Agreement, and there has been no union organizing activity in the past three (3) years. The Company is not and has never been a party to any collective bargaining agreement. 

  (d)	The Company maintains I-9 Forms for all employees, which have been completed as required by applicable Law and retained in accordance with applicable Law. All United States-based Company employees are legally authorized to work in the United States.

  (e)	 Except as set forth in Section 5.13(e) of the Company Disclosure Schedule, no layoff, reduction in force, furlough, reduction in hours or compensation, or temporary layoff affecting employees of the Company has occurred within the past 12 months, as a result of COVID-19 or any Laws or Orders by any Governmental Entity in connection with or in response to COVID-19.

  (f)	In the 12 months prior to the date of this Agreement, the Company has not engaged in any plant closing or employee layoffs or reduction in employee hours that would violate or give rise to an obligation to provide any notice required under the federal Worker Adjustment Retraining and Notification Act or any similar state, local or foreign Laws (collectively, “WARN”), and it has no plans to undertake any actions that would require the providing of any such notice.

  5.14	Employee Plans.

  (a)	Section 5.14(a) of the Company Disclosure Schedule sets forth each material Employee Plan (other than (i) offer letters or other similar employment Contracts with employees that are terminable at-will by the Company or any ERISA Affiliate without severance or change of control pay or benefits, and do not contain any non-recurring or special bonuses or payments, in which case only the form of such offer letters or other service Contracts will be listed, or (ii) consulting agreements or other similar service Contracts with consultants that are terminable without penalty on less than thirty (30) days’ notice, in which case only forms of such consulting agreements or other service Contracts will be listed, unless any such Contract provides severance, change of control pay or benefits, or a non-recurring or special bonus or payment).  With respect to each material Employee Plan, to the extent applicable, the Company has made available to the Purchaser (i) the plan document, summary plan description and any summary of material modifications or amendments; (ii) the most recent annual report on Form 5500 required to have been filed with the IRS and non-discrimination tests for the last three plan years; (iii) the most recent determination letter, if any, from the IRS for any Employee Plan that is intended to qualify pursuant to Section 401(a) of the Code; (iv)  any related trust agreements, insurance contract or other document related to funding or payment of benefits under such Employee Plan; and (v) any notices to or from the IRS or any office or representative of the United States Department of Labor or any governmental agency relating to any material compliance issues in respect of any such Employee Plan.

   

   

  

   

  (b)	The Company and each of its ERISA Affiliates in all material respects, have performed all obligations required to be performed by them under, and are in compliance with, the requirements prescribed by any and all applicable statutory or regulatory Laws, are not in material default or violation of, and the Company has no Knowledge of any such default or violation by any other party to, any Employee Plan.  

  (c)	For each Employee Plan that is intended to be qualified under Section 401(a) of the Code, the Company has obtained a favorable determination and/or opinion letter and there has been no event, condition or circumstances that has adversely affected or is reasonably likely to adversely affect such qualified status.  No “prohibited transaction,” within the meaning of Section 4975 of the Code or Sections 406 and 407 of ERISA, and not otherwise exempt under Section 408 of ERISA, has occurred with respect to any Employee Plan.  There are no Actions pending or to the Knowledge of the Company threatened or reasonably anticipated (other than routine claims for benefits) against any Employee Plan or against the assets of any Employee Plan.  None of the Company nor any of its ERISA Affiliates is subject to any penalty or Tax with respect to any Employee Plan under Section 502(i) of ERISA or Sections 4975 through 4980 of the Code.

  (d)	Neither the Company nor any of their ERISA Affiliates maintains, contributes to, participates in, or sponsors (or has in the past six (6) years maintained, contributed to, participated in, or sponsored), or has any Liability, contingent or otherwise under any (i) defined benefit pension plan or plan subject to Section 302 of Title I of ERISA, Section 412 of the Code, or Title IV of ERISA, (ii) multiemployer plan (as defined in Section 3(37) of ERISA), (iii) multiple employer plan or to any plan described in Section 413 of the Code, (iv) “funded welfare plan” within the meaning of Section 419 of the Code, or (v) multiple employer welfare arrangement, as defined under Section 3(40)(A) of ERISA (without regard to Section 514(b)(6)(B) of ERISA).

  (e)	Neither the Company nor any of their ERISA Affiliates has any Liability in respect of post-retirement health, medical or life insurance benefits for retired, former or current employees or other service providers of the Company or any of its ERISA Affiliates, except as required to avoid excise tax under Section 4980B of the Code or except for the continuation of coverage through the end of the calendar month in which termination from employment occurs.  

  (f)	Neither the execution and delivery of this Agreement nor the consummation of the Transactions (either alone or together with any other event) or any termination of employment or service in connection therewith will (i) entitle any employee, director, or other service provider of the Company (whether current, former or retired) or their beneficiaries to severance pay under an Employee Plan (ii) accelerate the time of payment or vesting or trigger any payment or funding of compensation or benefits under any Employee Plan, or (iii) increase the amount payable or trigger any other financial obligation pursuant to an Employee Plan. No payment which is or may be made to any employee, director or other service provider of the Company or any ERISA Affiliate (whether current, former or retired), either alone or together with any other payment, event or occurrence, will or could  fail to be deductible for federal income tax purposes by virtue of Section 280G of the Code or subject to an excise tax under Section 4999 of the Code.  The Company has no obligation to gross up, indemnify or otherwise reimburse any current or former employee, director or other service provider of the Company or any ERISA Affiliate for any Tax incurred by such individual under Section 4999 of the Code. 

  (g)	Each Employee Plan that is a “nonqualified deferred compensation plan” (within the meaning of Section 409A of the Code) complies and has at all times complied in both form and operation, with the requirements of Section 409A of the Code.  The Company has no obligation to gross up, indemnify or otherwise reimburse any current or former employee, director, or other service provider of the Company for any Tax incurred by such individual under Section 409A of the Code.

   

   

  

   

  (h)	Neither the Company nor any of its ERISA Affiliates maintains, participates in, contributes to, or sponsors (or has in the past six years maintained, contributed to, participated in, or sponsored) any International Employee Plan.

  (i)	Neither the Company nor any ERISA Affiliate has failed to comply with Sections 601 to 608 of ERISA and Section 4980B of the Code, and the Company and each ERISA Affiliate has, for any relevant period, offered the requisite number of “full-time employees” group health coverage that is “affordable” and of “minimum value” (as such terms are defined by the employer shared responsibility provisions of the Patient Protection and Affordable Care Act). 

  5.15	Affiliate Transactions.  Except as set forth on Section 5.15 of the Company Disclosure Schedule, no Related Party is a party to any Related Party Transaction with the Company or has any material interest in any material assets or property used by the Company.  To the Knowledge of the Company, no Related Party has any direct or indirect ownership, participation, royalty or other interest in, or is an officer, manager, director, employee of or consultant or contractor for any firm, partnership, entity or corporation that competes with, or does business with, or has any contractual arrangement with, the Company; provided, however, that ownership of no more than three percent (3%) of the outstanding voting stock of a publicly traded company shall not be deemed to be an “interest in” any entity described in this Section 5.15.  

  5.16	Insurance.  Section 5.16 of the Company Disclosure Schedule sets forth a list of each insurance policy currently maintained by the Company with respect to its properties, assets and business (the “Insurance Policies”), along with the policy type, insurer, policy number, effective date and expiration date of each such Insurance Policy. The Company has delivered to the Purchaser a true, correct and complete copy of each Insurance Policy. The Insurance Policies have been issued by licensed insurers and are in full force and effect. All premiums due and payable under the Insurance Policies have been paid and there are no material defaults under any Insurance Policy by the Company.  There is no material claim by the Company pending under any Insurance Policies as to which coverage has been denied or disputed by the insurer.  Such Insurance Policies are in full force and effect, all premiums with respect thereto are currently paid, and the Company is in compliance in all material respects with the terms thereof. The Insurance Policies under which the Company is the primary named insured provide coverages as required by the applicable Governmental Entity, Law and any Contract to which the Company is party or by which any of the Company’s assets or properties is bound. Immediately following the Closing, each Insurance Policy shall be available to the Company on substantially the same terms and conditions as immediately prior to the Closing.

  5.17	Material Contracts. 

  (a)	Section 5.17(a) of the Company Disclosure Schedule sets forth as of the date of this Agreement each of the following Contracts to which the Company is a party or by which it is bound or by which the Company’s assets are subject (other than Employee Plans set forth on Schedule 5.14(a) and Company Leases set forth on Schedule 5.11(a)) (each Contract set forth or required to be set forth on Section 5.17(a) of the Company Disclosure Schedule, a “Material Contract” and collectively, the “Material Contracts”):

  (i)	Contracts involving payment obligations of, or to, the Company in excess of $50,000 per annum or that have terms in excess of one (1) year that cannot be terminated by the Company on less than ninety (90) days’ notice and without penalty; 

  (ii)	Contracts relating to Indebtedness of the Company;

  (iii)	(A) any Contract limiting the freedom of the Company to engage or participate, or compete with any other Person, in any material line of business, market or geographic area, (B) 

   

   

  

   

  any Contract under which the Company grants most favored nation pricing, volume requirements or commitments, exclusive sales, exclusive distribution, exclusive marketing or other exclusive rights, rights of refusal, exclusive rights of first negotiation or similar exclusive rights and/or terms to any Person, or (C) any Contract otherwise limiting the right of the Company to sell, distribute or manufacture any products or services or to purchase or otherwise obtain any software, components, parts, subassemblies or services;

  (iv)	any Contract under which the Company leases any personal property which involve payment obligations of, individually or in the aggregate, at least $50,000 per annum;

  (v)	any power of attorney or agency Contract with any Person pursuant to which such Person is granted the authority to act for or on behalf of the Company, or the Company is granted the authority to act for or on behalf of any Person;

  (vi)	any Contract relating to any disposition of any material assets or business of the Company not in the ordinary course of business (whether by merger, sale of equity, sale of assets or otherwise);

  (vii)	any Contract relating to the acquisition of the business or equity of another Person (whether by merger, sale of equity, sale of assets or otherwise); 

  (viii)	any Contract with any investment banker, broker, advisor or similar party retained by the Company in connection with this Agreement and the Transactions; 

  (ix)	any collective bargaining agreement or other Contract with any labor organization, labor union or employees representative body;

  (x)	any Contract with any officer, employee, or consultant, independent contractor, or director that (A) provides total annual payments in excess of $50,000, whether pursuant to any Employee Plan or otherwise or (B) cannot be terminated with less than ninety (90) days’ notice or further liability to the Company without the payment of severance; 

  (xi)	any Contract with a Major Customer or a Major Supplier; 

  (xii)	any Contract with a Governmental Entity (each, a “Government Contract”) or Government Bid; 

  (xiii)	any settlement, conciliation or similar Contract (i) with any Governmental Entity, (ii) entered into in the past three (3) years pursuant to which the Company has or will have material outstanding obligations after the date hereof or (iii) that governs or restricts the use of any Intellectual Property; 

  (xiv)	any Contract for capital expenditures or the acquisition or construction of fixed assets in excess of $50,000; 

  (xv)	any Related Party Transaction; and

  (xvi)	any partnership or joint venture agreement. 

  With respect to each of the Material Contracts: (i) such Material Contract is legal, valid, binding, enforceable, and in full force and effect with respect to the Company, as applicable, except as such 

   

   

  

   

  enforceability may be limited by (A) applicable insolvency, bankruptcy, reorganization, moratorium, or other similar Laws affecting creditors’ rights generally and (B) applicable equitable principles (whether considered in a proceeding at Law or in equity), (ii) the Company is not in material breach or default under any Material Contract, and (iii) to the Knowledge of the Company, no other party to any Material Contract is in material breach or default thereof.  The Company party will not, and the Company does not intend to, terminate or materially modify any Material Contract and, to the Knowledge of the Company, no other party to such Material Contract has provided written notice that it will, or intends to, terminate any Material Contract or make any material modification to any Material Contract.  The Company has provided or made available to the Purchaser true, correct, and complete copies of all Material Contracts.  

  (b)	Immediately following the Closing, each Material Contract shall be available to the Company on substantially the same terms and conditions as immediately prior to the Closing.

  5.18	FDA and Regulatory Matters. 

  (a)	The Company is, and for the last three (3) years has been, in compliance, in all material respects, with all Healthcare Laws applicable to the Company. The Company’s business as currently conducted, including contract manufacturing and research services, is being, and for the last three (3) years has been, conducted in compliance, in all material respects, with all applicable Healthcare Laws.  The Company has not, during the last three (3) years, received any written communication or written notification of any pending or threatened Action from any Governmental Entity or any qui-tam relator, including, without limitation, the FDA, the Centers for Medicare & Medicaid Services, and the U.S. Department of Health and Human Services Office of Inspector General, or any comparable state, federal or foreign Governmental Entity, alleging non-compliance by, or liability of, the Company under any Healthcare Law. 

  (b)	For the past three (3) years, all product development and manufacturing services of the Company, including all design, manufacturing, processing, assembly, packaging, labeling, holding, storage, and, distribution activities, (i) have been performed in compliance in all material respects with all applicable Healthcare Laws, except as disclosed on Section 5.18(b) of the Company Disclosure Schedule, in conformance with the applicable specifications for the manufacture, storage, and handling of the applicable product in effect at the time of delivery thereof; (ii) have complied in all material respects with cGMPs and, at the time of delivery thereof, were not adulterated or misbranded within the meaning of the FDCA and (iii) neither the FDA nor any Governmental Entity is currently alleging non-compliance with cGMPs and no pending clinical trial is subject to termination or suspension relating to any product developed or manufactured by or on behalf of the Company or with respect to which the Company provides development or manufacturing services, except, in each case, as has not been and would not reasonably be expected to be individually or in the aggregate, material to the business of the Company, taken as a whole. 

  (c)	To the Knowledge of the Company, (i) in the past three (3) years, no product developed, tested, processed, manufactured, packaged, labeled, or sterilized by the Company has been seized, withdrawn, recalled, detained, subject to a public health notification or safety alert or any clinical hold, or has been subject to a suspension of manufacturing, distribution, or commercialization activity as a result of any action taken or failure to take action by the Company and (ii) each third party that is a supplier or contractor for the Company is in material compliance with all applicable Healthcare Laws and holds all applicable Permits except, in each case, as has not been and would not reasonably be expected to be individually or in the aggregate, material to the business of the Company, taken as a whole.

  (d)	The Company holds such Permits of Governmental Entities from the United States or foreign governments or government agencies necessary and required for the conduct of its business as currently conducted, including, where applicable and without limitation, all authorizations under the Federal Food, Drug 

   

   

  

   

  and Cosmetic Act of 1938, as amended (the “FDCA”), the Public Health Service Act of 1944 and the regulations of the FDA promulgated under any of the foregoing or any Law or authorization of any other Governmental Entity, and any other Governmental Entity that regulates the quality, identity, strength, purity, safety, efficacy, developing or manufacturing of pharmaceutical products and all other Permits necessary and required to permit the contract manufacturing and research services provided by the Company in jurisdictions where it currently conducts such activities with respect to each of the Products (collectively, the “Company Licenses”). The Company has fulfilled and performed, in all material respects, all of its required obligations with respect to each Company License and is in compliance, in all material respects, with all terms and conditions of each Company License, and, to the Knowledge of the Company, no event has occurred which allows, or after notice or lapse of time would allow, revocation or termination thereof. 

  (e)	For the last three (3) years, no manufacturing site (whether owned or operated by the Company) has been subject to a Governmental Entity (including FDA) shutdown or import or export prohibition.

  (f)	For the last three (3) years, there have been no material adverse regulatory actions taken (or, to the Knowledge of the Company, threatened) by the FDA or any other Governmental Entity with respect to any facilities where pharmaceutical products are tested, produced, processed, packaged or stored, including, without limitation, warning letters, untitled letters, FDA Form 483 Notices of Inspectional Observations, or similar material written notices or written communications of enforcement action issued by the FDA or comparable written communications from any other Governmental Entity, except, in each case, as has not been and would not reasonably be expected to be individually or in the aggregate, material to the business of the Company, taken as a whole.

  (g)	The Company is not the subject of any pending or, to the Knowledge of the Company, threatened investigation regarding any of the Company’s contract manufacturing or research services by the FDA pursuant to its “Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities” Final Policy set forth in 56 Fed. Reg. 46,191 (September 10, 1991) and any amendments thereto (“FDA Fraud Policy”), or similar and applicable policy enforced by any other Governmental Entity.  The Company has not, nor has, to the Knowledge of the Company, any officer, employee, or agent of the Company, during the past three (3) years, made a materially untrue statement to the FDA or any other Governmental Entity, failed to disclose a material fact required to be disclosed to the FDA or any other Governmental Entity, or committed an act, made a statement or failed to make a statement of material fact that, at the time such disclosure was made, would reasonably be expected to provide a basis for the FDA or any other Governmental Entity to invoke the FDA Fraud Policy or any similar policy.  The Company has not, and, to the Knowledge of the Company, none of its officers, employees, or agents, been or is currently subject to any debarment, suspension or exclusion under any government healthcare program or under the FDCA.  The Company has not, nor, to the Knowledge of the Company, has any officer, employee, or agent of the Company been convicted of any crime or engaged in any conduct for which such person could be excluded from participating in the federal health care programs under Section 1128 of the Social Security Act of 1935, as amended, or any similar Law. No Actions that would reasonably be expected to result in a material debarment or exclusion are pending or, to the Knowledge of the Company, threatened against the Company or, to the Knowledge of the Company, any of its directors, officers, employees or agents. 

  5.19	Accounts Receivable. All of the accounts receivable reflected on the Latest Balance Sheet, whether billed or unbilled, of the Company arose in the ordinary course of business consistent with past practice from sales actually made or services actually performed and are carried at values determined in accordance with GAAP. Unless paid prior to the Closing, as of the Closing Date, all accounts receivable will be current and collectible net of the respective reserves shown on the Latest Balance Sheet (which reserves are calculated consistent with past practice and (b) will not represent a change in the composition of such accounts receivable 

   

   

  

   

  in terms of aging). Subject to such reserves or, with respect to accounts receivable arising after the Latest Balance Sheet Date, reserves shown on the accounting records of the Company for the applicable period, each account receivable is collectible in full or sellable in connection with the factoring of accounts receivable consistent with past practices, without any set-off. There is no contest, written claim or right of set-off, under any Contract with any obligor of any accounts receivable related to the amount or validity of such accounts receivable, and no bankruptcy, insolvency or similar Actions have been commenced by or against any such obligor.

  5.20	Customers and Suppliers.

  (a)	Section 5.20(a) of the Company Disclosure Schedule contains a list setting forth the twenty (20) largest customers of the Company, by dollar amount, over the twelve (12) months ended June 30, 2021 (collectively, the “Major Customers”) (and the amount of sales with respect to each such Major Customer during such twelve (12) month period), and the twenty (20) largest suppliers of the Company, by dollar amount, over the twelve (12) months ended June 30, 2021 (collectively, the “Major Suppliers”) (and the amount of purchases from each such Major Supplier during such period).

  (b)	Within the last three (3) years, the Company has not received written notice that any Major Customer has taken action to, or will take action to (i) terminate or modify in a manner materially adverse to the Company its relationship with the Company, (ii) materially reduce the amount of products or services that it is willing to purchase from the Company, or (iii) materially reduce the price of products or services that it has previously purchased from the Company.  

  (c)	Within the last three (3) years, the Company has not received written notice that any Major Supplier has taken action to, or will take action to (i) terminate or modify in a manner materially adverse to the Company its relationship with the Company, (ii) materially reduce the amount of goods that it is willing to supply to the Company, or (iii) materially increase the price of goods that it has previously supplied to the Company.  

  (d)	The Company is not involved in, and, for the past three (3) years, has not been involved in, any Action or any material controversy or dispute with any Major Customer or Major Supplier and, to the Knowledge of the Company, there exists no facts or circumstances that would result in any such material Action or controversy or dispute being initiated.

  5.21	Broker Fees.  Except as set forth on Section 5.21 of the Company Disclosure Schedule, the Company has not used any broker or finder, or entered into any Contract with any Person which would result in the obligation of the Company or the Purchaser to pay any fees or commissions to any broker, finder, or agent, with respect to the Transactions.

  5.22	Bank Accounts.  Section 5.22 of the Company Disclosure Schedule sets forth (a) a true and complete list of the names and locations of all banks, trust companies, securities brokers and other financial institutions at which the Company has a deposit, lock box or cash collection, management, securities or other account or a safe deposit box or maintains a banking, custodial, trading or other similar relationship, and (b) a true and complete list of each such account, box and relationship, indicating in each case the account number and the names of the respective officers, employees, agents or other similar representatives of the Company having signatory power with respect thereto.

  5.23	Corrupt Practices Act; Ex-Im Laws.  In the last three (3) years, no action has been taken nor any payment or other benefit has been made or conferred by the Company or any Seller or, to the Company’s Knowledge, by any Representative of the Company or other Person acting on behalf of the Company or any 

   

   

  

   

  Seller in violation of applicable Law (including any applicable Anti-Corruption Laws).  In the last three (3) years, none of the Company or any Seller or any of their respective Related Parties, or, to the Company’s Knowledge, any of their respective Representatives  (a) has made, offered or authorized, directly or indirectly, any contribution, bribe, rebate, payoff, influence payment, kickback, other payment or gift of anything of value, regardless of what form, whether in money, property or services (each, a “Payment”), directly or indirectly, to a Government Official, in order to or that would be reasonable likely to (i) improperly influence any act or decision of such Government Official in his/her or its official capacity; (ii) improperly induce such Government Official to do or omit to do any act in violation of the lawful duty of such Government Official; (iii) improperly induce such Government Official to use his/her or its influence to affect an official act or decision; (iv) secure any improper business advantage; or (v) otherwise be in violation of any applicable Laws (including any applicable Anti-Corruption Laws) or (b) has used any Company funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to any political activity.  In the last three (3) years, no Payment has been made or conferred by the Company nor, to the Company’s Knowledge, by any Person on behalf of the Company or any of its Related Parties in connection with the Company’s business in violation of applicable Laws (including applicable Anti-Corruption Laws).  No employee or consultant of the Company is a Government Official or, to the Company’s Knowledge, a member of the Family Group of a Government Official. None of the Company, or, to the Company’s Knowledge, any Representative or other Person acting for or on their behalf, is currently, or has been in the last five (5) years, (i) a Sanctioned Person; (ii) organized, resident or located in a Sanctioned Country; (iii) engaging in any dealings or transactions with any Sanctioned Person or in any Sanctioned Country, to the extent such activities violate applicable Sanctions Laws or Ex-Im Laws; or (iv) otherwise in violation of applicable Sanctions Laws, Ex-Im Laws, or U.S. anti-boycott Laws (collectively, the “Trade Control Laws”).

  5.24	Government Contracts and Regulatory Matters.

  (a)	The Company has been compliant in all material respects with all pre-award requirements as described in each solicitation, synopsis, tender, or other form of government statement of requirements, and all rules and regulations applicable thereto at the time of award of each Government Contract.  The Company has not received written notice that any Government Contract is the subject of bid or award protest proceedings. The Company has made available to the Purchaser a complete and correct copy of each Government Contract and modification thereof that is a Material Contract, including each purchase order, task order or delivery order issued under such Government Contract or under any blanket purchase agreement, federal or state supply schedule contract or similar purchasing arrangement. 

  (b)	Except as set forth on Section 5.24(b) of the Company Disclosure Schedule, there exists no Government Contract or Government Bid (A) in connection with which the Company explicitly represented to the applicable Governmental Entity that the Company qualified as a “Small Business Concern,” a “Small Disadvantaged Business,” an “8(a) concern,” a “Service-Disabled Veteran-Owned Small Business Concern,” a “Veteran-Owned Small Business Concern, a Historically Underutilized Business Zone Small Business Concern, a Woman-Owned Small Business Concern,” a ““protégé” under a mentor-protégé agreement or program,” or any other preferential small business status established under the U.S. Small Business Administration’s set-aside program rules (collectively, “Set-Aside Program Status”); or, (B) in the case of a Government Contract, that the Company would not have been eligible or invited to submit a bid or receive a contract award but for its Set-Aside Program Status.

  (c)	Except as set forth on Section 5.24(c)(i) of the Company Disclosure Schedule, to the Company’s Knowledge, the Company has never submitted a Government Bid or been awarded a Government Contract which the Company was ineligible to be awarded due to its business classification or any other reason at the time such Government Bid was submitted in connection with a procurement reserved or set-aside for companies having Set-Aside Program Status or any other specified business classification or eligibility 

   

   

  

   

  criterion. Except as set forth on Section 5.24(c)(ii) of the Company Disclosure Schedule, to the Company’s Knowledge, no Government Contract is required to be terminated by a Governmental Entity and no such Governmental Entity is prohibited from exercising any option period under such Government Contract as a result of the consummation of the transactions contemplated by this Agreement.   

  (d)	With respect to each Government Contract and Government Bid:

  (i)	The Company has complied, in all material respects, with all terms and conditions of each Government Contract, including all clauses, provisions and requirements incorporated expressly by reference and including any requirements relating to the charging of prices or costs, most favored customer pricing, minimum qualifications of personnel, warranties, industrial funding fees and price reductions. To the Company’s Knowledge, no event has occurred in connection with a Government Contract or Government Bid which, with the passage of time or the giving of notice or both, would reasonably be expected to result in a condition of default or material breach of a Government Contract or material non-compliance with requirements applicable thereto or to any Government Bid.

  (ii)	All representations and certifications made, acknowledged or set forth in or pertaining to each Government Contract or Government Bid were current, accurate and complete, in all material respects, as of their effective date, and all such representations and certifications have continued to be current, accurate and complete, in all material respects, to the extent required by the terms of a Government Contract. During the past six (6) years, the Company has not submitted a Government Bid or been awarded a Government Contract based upon material misrepresentations or inaccuracies in representations and certifications executed in connection therewith or contained in the Company’s annual registration on the Government’s System for Award Management database.

  (iii)	All invoices for payment, reimbursement or adjustment, including requests for progress payments and provisional payments, submitted during the past six (6) years by or on behalf of the Company in connection with a Government Contract were current, accurate and complete, in all material respects, as of their applicable submission dates.

  (iv)	Except as provided in Section 5.24(d)(iv) of the Company Disclosure Schedule, the Company has not filed any material claims or other non-routine requests for payment, but all such claims and other non-routine requests for payment listed therein, which includes requests for additional compensation stemming from disputes, changes and controversies, which were submitted during the past six (6) years by or on behalf of the Company in connection with a Government Contract were current, accurate and complete, in all material respects, as of their applicable submission dates. Except as set forth on Schedule 5.24(d)(iv), (A) within the past three (3) years, no Government Contract has been terminated for convenience or default and (B)  the Company has not received any written cure notice or show cause notice regarding performance of a Government Contract or any written notice of, Claim for, or assertion of, a condition of default, breach of contract, or material violation of Applicable Law, in connection with a Government Contract or Government Bid.

  (v)	To the Company’s Knowledge, all “certified cost and pricing data” and all “other than certified cost and pricing data” submitted during the past six (6) years by or on behalf of the Company in connection with a Government Contract or Government Bid were current, accurate and complete as of the certification date.  For avoidance of doubt, certified cost and pricing data and other than certified cost and pricing data, respectively, have the meaning ascribed at FAR Subpart 15.4. 

  (vi)	The Company has, to the extent required by Applicable Laws and the terms of its Government Contracts, maintained systems of required internal controls, including quality control 

   

   

  

   

  systems, cost accounting systems, estimating systems, purchasing systems, proposal systems, billing systems and material management systems, that are in compliance, in all material respects, with all requirements of the Government Contracts.  The Company has not received written or, to the Company’s Knowledge, oral notice that any of its subcontractors, teaming partners, consultants, agents or representatives has violated any Applicable Law in connection with any Government Contract or any Government Bid for which the Company would reasonably be expected to incur any material liability. The Company has not received any adverse or negative past performance evaluations or ratings pertaining to any Government Contract within the past three (3) years.

  (vii)	Except as set forth on Section 5.24(d)(vii) of the Company Disclosure Schedule, in the last six (6) years, there has not been any material withholding, recoupment or setoff of or against any payments due Company by a Governmental Entity or prime contractor or higher-tier subcontractor nor, to the Company’s Knowledge, has there been any attempt to materially withhold, recoup or setoff, any payments due under any Government Contract on any basis, including the basis that a cost incurred or invoice rendered by the Company was questioned or disallowed by a Governmental Entity, prime contractor or higher-tier subcontractor or any of their audit representatives, nor to the Company’s Knowledge would any such withholding or setoff reasonably be expected to occur.

  (viii)	Except as set forth on Section 5.24(d)(viii) of the Company Disclosure Schedule, no Government Contract has, to date, or, to the Company’s Knowledge, is currently projected to have, fully burdened costs incurred in excess of the Government Contract fixed price, or, in the case of flexibly-priced or cost-reimbursement Government Contracts, would reasonably be expected to have fully burdened costs incurred in excess of the ceiling price or funded amount of the Government Contract.

  (e)	Except as set forth on the Section 5.24(e) of the Company Disclosure Schedule, at all times over the past six (6) years, with respect to any Government Contract or Government Bid: (A) There is no pending material Claim or, to the Company’s Knowledge, any reasonable basis to give rise to any material Claim against the Company for fraud or under any applicable state laws, rules, regulations, contract clauses or bidding terms and conditions, or any applicable federal laws, including the United States civil or criminal False Claims Acts, the United States Procurement Integrity Act, or other Applicable Law; (B) the Company has not been served with any document requests, subpoenas, search warrants or civil investigative demands addressed to or requesting information involving the Company, or any of its officers, employees, Affiliates, agents or representatives in connection with or related to any Government Contract or Government Bid; (C) the Company has not received written or, to the Company’s Knowledge, oral notice that it, or any of its predecessors, managers, officers, directors, employees, Affiliates, agents or representatives, has been under administrative, civil or criminal investigation, indictment or criminal information, or audit by a Governmental Entity (other than routine audits by any government audit agency in the ordinary course of business) with respect to any Government Contract, Government Bid or Applicable Law, including any audit relating to a suspected, alleged or possible violation of applicable state laws or the United States civil or criminal False Claims Acts or the United States Procurement Integrity Act, provision of defective or non-compliant products or services, mischarging of prices or costs, misstatements of fact, or other acts, omissions or irregularities relating to any Government Contract or Government Bid; and (D) neither the Company nor, to the Company’s Knowledge, any other Person, has conducted any internal investigation, audit, review or inquiry (whether or not any outside legal counsel, auditor, accountant or investigator was engaged) with respect to any suspected, alleged or possible material violation of any Government Contract, Government Bid or Applicable Law.

  (f)	The Company has not made, and to the Company’s Knowledge is unaware of any circumstances under which it is or has been obligated or required to make a mandatory administrative, civil or criminal disclosure to a Governmental Entity. Neither the Company nor, to the Company’s Knowledge, any predecessor of the Company has, in the past six (6) years, made a voluntary disclosure to any Governmental 

   

   

  

   

  Entity with respect to any alleged suspected, alleged or possible breach, violation, irregularity, mischarging, misstatement or other improper act or omission arising under or relating to any Government Contract or Government Bid. The practices and procedures used by the Company in estimating costs and pricing proposals and accumulating, recording, segregating, reporting and invoicing costs in connection with a Government Contract or Government Bid are, in all material respects, in compliance with Applicable Laws, including FAR Part 31 and all applicable Cost Accounting Standards and related regulations, to the extent such requirements are applicable. No audit by a Governmental Entity (including the Government Audit Agency) in the past six (6) years has questioned such costs or identified any other failure to comply, in all material respects, with contractual requirements or Applicable Law. Section 5.24(f) of the Company Disclosure Schedule lists each draft or final written audit report received by the Company during the past three (3) years issued by any Governmental Entity with respect to any Government Contract, Government Bid or any direct or indirect cost or other accounting practice of the Company. The Company has delivered or otherwise made available to the Purchaser correct and complete copies of each such report. The Company has not been determined by a Governmental Entity to be non-responsible, not presently responsible, or otherwise ineligible for award of a Government Contract within the past three (3) years.

  (g)	With respect to Government Contracts and Government Bids: (i) the Company does not have any outstanding requests for a material equitable adjustment or materials Claims asserted by or against a Governmental Entity or any prime contractor, subcontractor, vendor or other third party arising under or relating to a Government Contract or Government Bid; (ii) the Company has not received written notice of any outstanding disputes between the Company, and any Governmental Entity under the Contract Disputes Act or any other Applicable Law governing disputes arising under such Government Contracts; (iii) to the Company’s Knowledge, there are no outstanding disputes between any prime contractor for which the Company serves as a subcontractor under the Contract Disputes Act or any other Applicable Law governing disputes arising under such Government Contracts; (iv) the Company has not received written or, to the Company’s Knowledge, oral notice of any disputes between the Company, on the one hand, and any prime contractor, subcontractor or vendor, on the other hand, arising under or relating to any such Government Contract or Government Bid; and (v) there are no financing arrangements or assignments of proceeds with respect to any Government Contract other than as provided in the Company’s commercial bank or financing documents set forth on Section 5.24 of the Company Disclosure Schedule. 

  (h)	Section 5.24(h) of the Company Disclosure Schedule identifies all personal property, equipment and fixtures loaned, bailed or otherwise furnished to the Company, and in the Company’s possession as of the date hereof, by or on behalf of a Governmental Entity (the “Government Furnished Items”), the current locations thereof and the Government Contract pursuant to which such Government Furnished Items were issued. The Company has complied, in all material respects, with all of its obligations relating to the Government Furnished Items and upon the return thereof to any Governmental Entity in the condition thereof on the date hereof, the Company would reasonably be expected to have no liability with respect thereto.
 

  (i)	Except as stated in Section 5.24(i) of the Company Disclosure Schedule, the Company does not currently hold a facility clearance granted by the United States and no such clearance is required of it or any of its subcontractors, vendors, or consultants, and no personal security clearances are required of any officers, directors or employees of such entities for performance of any of obligations under a Government Contract or to submit a Government Bid. 

  5.25	Disclaimer of the Company.  Except as otherwise specifically provided in Article IV or Article V (as modified by the Company Disclosure Schedule) or except as set forth in the other Transaction Documents or any certificate or other instrument delivered to the Purchaser hereunder or thereunder, (a)  neither any Seller, the Sellers’ Representative, the Company nor any of its managers, officers, employees, members, 

   

   

  

   

  agents, Affiliates or Representatives thereof, nor any other Person, has made or shall be deemed to have made any representation or warranty to the Purchaser or any of its Affiliates, express or implied, at Law or in equity, with respect to the Sellers, the Sellers’ Representative, the Company, the Company’s business or the assets, Liabilities, results of operations or financial condition of the Company, including any representations and warranties as to the accuracy or completeness of any Evaluation Material or any other information provided to the Purchaser or any of their respective Affiliates or Representatives pursuant to the Confidentiality Agreement or as to the future sales, revenue, profitability or success of the Company’s business, or any representations or warranties arising from statute or otherwise in Law, from a course of dealing or a usage of trade and (b) all such other representations and warranties are expressly disclaimed by the Sellers and the Company. Nothing herein shall limit any rights or remedies of the Purchaser in respect of any claim for fraud. 

  Article VI

COVENANTS AND OTHER AGREEMENTS

  6.1	Public Announcements.  Following the Closing, the Purchaser and the Sellers’ Representative shall jointly agree on the content and substance of all public announcements concerning the Transactions.  Notwithstanding the foregoing, the Parties may make disclosures required by any applicable Law or Order or the rules of any applicable securities exchange, in which case the Party required to make such disclosure shall allow the other Party reasonable time to comment on such release or announcement in advance of such disclosure. The Parties acknowledge that either or both Parties may be obligated to make filings (including, but not limited to, the filing of a copy of this Agreement or the Transaction Documents) with the SEC or other Governmental Entity. Each Party shall be entitled to make such required filings, provided that it requests confidential treatment of sensitive terms of this Agreement to the extent such confidential treatment is reasonably available to such Party.

  6.2	Employee Matters.  

  (a)	Following the Closing, the Purchaser shall, and shall cause the Company to, comply with any notice or filing requirements under WARN occurring after the Closing Date. The Company shall be responsible for complying with any notice or filing requirements under WARN occurring on or before the Closing Date. The Company shall provide the Purchaser at Closing with a list of all employment terminations for the Company for the ninety (90) days prior to the Closing Date, and for each employment termination, the Company shall provide the employee’s name, date of termination, and location of employment. 

  (b)	The Purchaser agrees that during the period commencing on the Closing Date and ending on the first anniversary thereof, each employee of the Company shall be paid an annual base salary or base wages at a rate no less favorable than the rate in effect for such employee immediately prior to the Closing. 

  (c)	The Purchaser agrees that, during the period commencing on the Closing Date and ending on the first anniversary thereof, employees of the Company who are receiving benefits under the Employee Plans immediately prior to the Closing (“Affected Employees”) will thereafter continue to be provided with benefits under employee benefit plans that are no less favorable in the aggregate than either (i) those provided by the Company to such employees as of immediately prior to the Closing, or (ii) those provided by the Purchaser to similarly situated employees from time to time during such period, provided, however, that for the purposes of this Section 6.7(c), no equity-based, retention, change in control, non-qualified deferred compensation or other non-recurring or special compensation or benefits provided prior to the Closing shall be taken into account.

   

   

  

   

  (d)	Following the Closing, the Purchaser shall, or shall cause its Affiliates, to grant each Affected Employee credit for any service with the Company (or predecessor employers, as applicable) (i) for purposes of eligibility to participate and vesting  under any benefit or compensation plan, program, agreement or arrangement that may be established or that is maintained by the Purchaser or its Affiliates on or after the Closing Date for similarly situated employees (but not under any equity incentive plan) and (ii) solely with respect to vacation accrual and severance benefit determinations, benefit accrual; provided, however, that such service shall not be recognized or credited to the extent that such recognition would result in a duplication of benefits provided to the Affected Employee. 

  (e)	From and after the Closing, the Purchaser shall use commercially reasonable efforts to  (i) cause to be waived all pre-existing condition exclusions and actively-at-work requirements and similar limitations, eligibility waiting periods and evidence of insurability requirements under the welfare benefit plans, policies or practices of the Purchaser or any of its Affiliates in which Affected Employees participate or are eligible to participate, and (ii) for the plan year in which the Closing Date occurs, cause any deductible, co-pay, coinsurance and covered out-of-pocket expenses paid by any Affected Employee (or covered dependent thereof) during the portion of the plan year in which such Affected Employee participated in an Employee Plan to be taken into account for purposes of satisfying the corresponding deductible, co‐pay, coinsurance and maximum out-of-pocket provisions after the Closing Date under any applicable welfare benefit plan, policy or practices of the Purchaser or any of its Affiliates in the applicable plan year.  

  (f)	Nothing contained in this Section 6.2 shall (i) be treated as the establishment, amendment or modification of any Employee Plan or constitute a limitation on rights to amend, modify, merge or terminate any Employee Plan, (ii) give to any Person any third party beneficiary or other rights under this Agreement or otherwise, or (iii) obligate the Company, the Purchaser, or any of their Affiliates to maintain any particular Employee Plan or retain the employment or services of any current or former employee, director or other service provider of the Company for any specific period of time. 

  (g)	The Company shall take (or cause to be taken) all action necessary or appropriate to terminate, effective no later than the day immediately preceding the Closing Date, any Employee Plan that contains a cash or deferred arrangement intended to qualify under Section 401(a) of the Code (the “401(k) Plans”), unless the Purchaser, in its sole and absolute discretion, agrees to sponsor and maintain any such 401(k) Plan by providing the Company with written notice of such election (an “Election Notice”) at least three (3) days before the Closing Date. Unless the Purchaser timely provides an Election Notice to the Company, the Company shall deliver to Purchaser, prior to the Closing Date, evidence that the Company’s board of directors has validly adopted resolutions to terminate the 401(k) Plans (the form and substance of which resolutions shall be subject to review and approval of the Purchaser), effective no later than the date immediately preceding the Closing Date. 

  6.3	Record Retention.  The Parties agree that for a period of seven (7) years after the Closing Date, or for a longer period if required by applicable Law, without the prior written consent of the Sellers’ Representative (which consent shall not be unreasonably withheld, delayed or conditioned), neither the Purchaser nor any of its Affiliates (including the Company) shall dispose of or destroy any of the books and records of the Company which may be reasonably relevant to any legal, regulatory or Tax audit, investigation, inquiry or requirement of any of the Sellers without first offering such records to the Sellers’ Representative; provided, that the Company shall not be required to offer any such books and records to the Sellers to the extent such action would constitute a waiver of the attorney-client privilege or to supply the Sellers with any information which, in the reasonable judgment of the Purchaser, the Purchaser is under a legal obligation not to supply; provided, that in each such case, the Purchaser shall use reasonable best efforts to provide an alternative means of disclosing such information.

   

   

  

   

  6.4	Indemnification of Directors and Officers; Insurance.

  (a)	The Purchaser agrees that all rights to indemnification, advancement of expenses and exculpation now existing in favor of each Person who, as of the Closing Date, is a current or former manager, officer, or member of the Board of Managers as described in Section 7 of the Operating Agreement (collectively, the “Covered Persons”) pursuant to the applicable Organizational Documents of the Company in effect on the date hereof and any individual indemnity agreements in existence on the date hereof and set forth on Section 6.4(a) of the Company Disclosure Schedule (the “Indemnification Agreements”)  shall survive the Closing and shall continue in full force and effect in accordance with their terms for a period of six (6) years from the Closing Date.  Following the Closing, neither the Purchaser nor the Company shall amend, repeal or otherwise modify such arrangements in any manner that would adversely affect the rights of the Covered Persons thereunder for a period of six (6) years from the Closing Date.

  (b)	For a period of six (6) years from the Closing Date, the Purchaser shall cause the Company to honor, to the fullest extent permitted by applicable Law, all of the obligations of the Company to indemnify (including any obligations to advance funds for expenses) the Covered Persons to the extent that such obligations of the Company exist on the Closing Date pursuant to the applicable Organizational Documents of the Company in effect on the date hereof or the Indemnification Agreements; provided that such indemnification rights shall not apply to any Covered Person with respect to any Liability for which such Covered Person is obligated to indemnify the Purchaser under Article VII of this Agreement.

  (c)	In the event that the Purchaser, the Company or any of their respective successors or assigns after the applicable Closing Date (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers or conveys all or a substantial portion of its properties and assets to any Person, then, and in each such case, the Purchaser shall use commercially reasonable efforts to cause the successors and assigns of the Purchaser, the Company or of their respective successors or assigns to assume the obligations of the Purchaser and/or the Company or their respective successors or assigns as contemplated by this Section 6.4.

  (d)	The provisions of this Section 6.4 shall survive the consummation of the Closing and expressly are intended to benefit each of the Covered Persons.  Notwithstanding anything to the contrary, it is agreed that the rights of a Covered Person under this Section 6.4 shall be in addition to, and not a limitation of, any other rights such Covered Person may have under the Organizational Documents of the Company in effect on the date hereof or the Indemnification Agreements, and nothing in this Section 6.4 shall have the effect of, or be construed as having the effect of, reducing the benefits to the Covered Persons under such arrangements.

  6.5	Tax Matters.

  (a)	Pre-Closing Income Tax Returns.  At the sole expense of the Sellers, the Sellers’ Representative shall prepare, or cause to be prepared, all income, franchise or other similar Tax Returns with respect to the Company for which the items of income, deductions, credits, gains or losses are passed through to the Sellers for taxable periods ending on or prior to the Closing Date (a “Pre-Closing Tax Period”), including those that are filed after the Closing Date, in accordance with the provisions of this Agreement and in a manner that is consistent with past practice except for changes in applicable Law. The Company, or Purchaser, as applicable, shall cooperate with the Sellers’ Representative to file, or cause to be filed, such Tax Returns on a timely basis, as applicable. The Purchaser shall file or cause to be filed all other Tax Returns of the Company that are required to be filed after the Closing Date (including those for a Straddle Period), and any such Tax Returns that relate to a Pre-Closing Tax Period shall be prepared and filed consistently with past practices, unless otherwise required by applicable Law. The Purchaser shall provide any such Tax Return that reflects a Tax for which the Sellers may be responsible pursuant to this Agreement to the Sellers’ Representative for its 

   

   

  

   

  review and comment fifteen (15) days prior to the due date for filing and shall reflect, or cause to be reflected, any of the Sellers’ Representative’s reasonable comments on such Tax Return.

  (b)	Cooperation on Tax Matters.

  (i)	The Purchaser, the Company and the Sellers shall cooperate fully, as and to the extent reasonably requested by the other Party, in connection with the filing of Tax Returns pursuant to this Section 6.5 and any audit or Action with respect to Taxes.  Such cooperation shall include the retention and (upon the other Party’s request) the provision of records and information which are reasonably relevant to any such audit or Action and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder.  The Company and the Sellers agree (A) to retain all books and records with respect to Tax matters pertinent to the Company relating to any taxable period beginning before the Closing Date until the expiration of the statute of limitations (and, to the extent notified by the Purchaser or the Sellers, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any taxing authority, and (B) to give the other Party reasonable written notice prior to transferring, destroying or discarding any such books and records and, if the other Party so requests, the Company or the Sellers, as the case may be, shall allow the other Party to take possession of such books and records.

  (ii)	The Purchaser and the Sellers further agree, upon request, to use their commercially reasonable efforts to obtain any certificate or other document from any Governmental Entity or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed with respect to the Transactions.

  (c)	Amended Tax Returns.  After the Closing, the Purchaser and its Affiliates shall not, and shall not cause or permit the Company to (i) amend or cause to be amended any income, franchise or other similar Tax Return of the Company (or file any new income, franchise or other similar Tax Return of the Company in a jurisdiction with which the Company has not previously filed Tax Returns) for a Pre-Closing Tax Period, (ii) make any election with respect to income, franchise or other similar Taxes that has a retroactive effect with respect to any Pre-Closing Tax Period, or (iii) initiate any voluntary disclosure agreement or similar process with any Governmental Entity with respect to any Pre-Closing Tax Period, in each case, without the prior written consent of the Sellers’ Representative (which consent shall not be unreasonably withheld, delayed or conditioned).

  (d)	Transaction Tax Deductions.  To the maximum extent permitted by applicable Law, Transaction Tax Deductions shall be reflected on the Tax Returns of the Sellers and the Company, as applicable, for the Pre-Closing Tax Period.  For this purpose, “Transaction Tax Deductions” means any item of loss, deduction, or credit of the Sellers or the Company resulting from or attributable to fees, costs, and expenses of Sellers or the Company related to or arising out of the Transactions, and which (in each case) are (i) paid by Sellers or the Company prior to the Closing Date, (ii) reflected as a current liability in the calculation of Net Working Capital Amount, or (iii) included in the calculation of Closing Transaction Expenses.

  (e)	Audits.

  (i)	The Purchaser shall provide the Sellers’ Representative with notice of any written inquiries, audits, examinations or proposed adjustments by the IRS or any other Tax authority, which relate to any Pre-Closing Tax Periods of the Company (“Tax Proceedings”) within twenty (20) days of the receipt of such notice.  The Purchaser shall have the sole right to represent the interests of the Company in any Tax Proceedings, provided, the Sellers’ Representative shall have the right to (A) control any Tax Proceedings related to an income, franchise or other similar Tax Return for a Pre-Closing Tax Period and (B) participate in 

   

   

  

   

  any other Tax Proceedings and to employ counsel of its choice at its own expense.  The Purchaser shall not settle any such Tax Proceedings that could reasonably be expected to materially increase the Taxes for which the Sellers would be liable under applicable Law or for which the Sellers are required to indemnify the Purchaser Indemnified Persons pursuant to this Agreement without the consent of the Seller’s Representative, which consent shall not be unreasonably withheld, delayed or conditioned.  

  (ii)	The Purchaser and the Company shall execute and deliver to the Sellers’ Representative such powers of attorney and other documents as may be necessary or appropriate to give effect to the foregoing participation rights.

  (iii)	To the extent the provisions of this Section 6.5(e) conflict with the provisions of Section 7.5(b), the provisions of this Section 6.5(e) shall control.

  (f)	Certain Taxes.  All transfer, documentary, sales, use, stamp, registration and other such Taxes and fees, including any related penalties and interest, incurred in connection with the Transaction Documents (“Transfer Taxes”) shall be borne fifty percent (50%) by the Sellers, on the one hand, and fifty percent (50%) by the Purchaser, on the other hand.   The party required by Law to file any necessary Tax Returns with respect to such Transfer Taxes shall file all such Tax Returns and other documentation with respect to all such Transfer Taxes and pay all such Taxes, and the non-filing Parties shall timely reimburse the filing Parties upon receipt of written notice of payment of any such Transfer Taxes.  The Parties shall cooperate to minimize any Transfer Taxes to the extent permitted by applicable Law.  

  (g)	Tax Refunds.  The Sellers shall have the right to any Tax refunds actually received by the Company arising from any payments for Taxes made by the Company relating to any Pre-Closing Tax Period or in respect of refundable credits for amounts paid prior to the Closing (to the extent such refunds are not reflected as an asset in the calculation of the Net Working Capital Amount, as finally determined).  The Purchaser shall cooperate with the Sellers’ Representative to file any applicable Tax Returns to claims such Tax refunds or credits and shall pay such amounts to the Sellers no later than ten (10) days after the receipt or availability of such refunds, less reasonable costs incurred in obtaining such refund.  Notwithstanding anything in this Agreement to the contrary, in the event that a cash refund of Taxes that relate to any Pre-Closing Tax Period is subsequently determined by any Governmental Entity to be less than the amount paid by the Purchaser to the Sellers, the Sellers shall promptly return any such disallowed amounts (plus any interest in respect of such disallowed amount owed to a Governmental Entity) to the Company.

  (h)	Tax Treatment.  The Parties agree to treat for all U.S. federal income Tax purposes (i)  the purchase and sale of the Units pursuant to this Agreement in accordance with Revenue Ruling 99-6 (Situation 2) as a sale of the interests of a partnership by the Sellers and a purchase of the Company’s assets by the Purchaser, (ii) the Note as not “readily tradable”, within the meaning of Section 453(f)(5) of the Code, (iii) the Purchaser Shares as not issued and outstanding until the Purchaser Shares Issuance Date, and (iv) the purchase and sale of Units pursuant to this Agreement as an “installment sale”, within the meaning of Section 453(b) of the Code.  The Purchaser, the Company, and the Sellers shall (i) treat and report the transactions contemplated by this Agreement in all respects consistently with this Section 6.11(h) for all U.S. federal, state, local and foreign Tax purposes and (ii) not take any actions or positions inconsistent with the foregoing, unless required by a Tax Authority.

  (i)	Purchase Price Allocation. The Purchaser, at its expense, shall engage an independent third party valuation firm for the purposes of appraising and valuing the assets and allocating the Aggregate Consideration among the assets of the Company in accordance with Section 1060 of the Code and the regulations promulgated thereunder (the “Allocation”) and in a manner consistent with Exhibit C.  The Purchaser shall provide the Seller Representative with the Allocation within one hundred twenty (120) days of 

   

   

  

   

  the Closing Date.  The Seller Representative shall provide its comments on the Allocation within thirty (30) days of the receipt of the Allocation, and the Purchaser shall consider in good faith the Seller Representative’s reasonable comments and deliver a final Allocation to the Seller Representative within thirty (30) days after receipt of any such comments from the Seller Representative. The final Allocation shall be conclusive and binding upon the Sellers, Purchaser and the Company for all purposes, and the Parties agree that all returns and reports (including IRS Form 8594) and all financial statements shall be prepared in a manner consistent with (and the Parties shall not otherwise take a position on a Tax Return that is inconsistent with) the Allocation unless otherwise required by Law.

  (j)	Form W-9.  At the Closing, each Seller shall deliver a properly executed IRS Form W-9 to the Purchaser.

  6.6	Sellers’ Representative.

  (a)	Each Seller, by virtue of its execution of this Agreement, hereby makes, constitutes and appoints the Sellers’ Representative, with full power of substitution and re-substitution, as its sole, exclusive, true and lawful agent, representative and attorney-in-fact for such Seller with respect to any and all matters relating to, arising out of, or in connection with this Agreement, including, in such Seller’s name, place, and stead to sign, execute, deliver and perform any Transaction Documents required to be executed by such Seller (or any Transaction Documents by which such Seller is otherwise bound), to make and authorize amendments to, or waivers of, this Agreement or any other Transaction Document, to enforce the obligations of the Purchaser or the Company under this Agreement or any other Transaction Document, to give and receive all notices required or permitted by the Sellers’ Representative under this Agreement or any other Transaction Document, and to defend and/or settle any indemnification claims made by the Purchaser or the Company or any other Indemnified Person pursuant to the terms of this Agreement or any other Transaction Document.  This power of attorney is a special power of attorney coupled with an interest and is irrevocable, and shall survive the Closing and death, disability, legal incapacity, bankruptcy, insolvency, dissolution, or cessation of existence of any Seller.  This power of attorney may be exercised by the Sellers’ Representative by listing the Seller executing any Transaction Document with the signature of the Sellers’ Representative acting as attorney-in-fact for such Seller.  The Sellers’ Representative (in its capacity as such) shall have no Liability to the Purchaser, the Company or the Sellers, or any of their respective Affiliates or Representatives, with respect to any action taken or omitted to be taken in its capacity as the Sellers’ Representative, except with respect to any Liability resulting from the Sellers’ Representative’s gross negligence or willful misconduct.  Each Seller hereby forever releases and discharges the Sellers’ Representative from any and all Liability which may arise in connection with the Sellers’ Representative’s performance in good faith and any acts or omissions which such Sellers’ Representative takes on behalf of the Sellers and their shareholders in accordance with the terms of this limited power of attorney, except in the case of gross negligence or willful misconduct of the Sellers’ Representative. 

  (b)	Each Seller shall indemnify and hold harmless and reimburse the Sellers’ Representative from and against such Seller’s Pro Rata Portion of any and all Liabilities, losses, damages, claims, costs or expenses suffered or incurred by the Sellers’ Representative arising out of or resulting from any action taken or omitted to be taken by the Sellers’ Representative under this Agreement or the other Transaction Documents, other than such Liabilities, losses, damages, claims, costs or expenses arising out of or resulting from the Sellers’ Representative’s gross negligence or willful misconduct, and in the event there are any remaining funds in the Escrow Account to be distributed to the Sellers at the termination of the Escrow Account pursuant to Section 2.4, such funds shall first satisfy any such loss, Liability, or expense incurred by the Sellers’ Representative and thereafter the Sellers’ Representative shall be entitled to recover any such losses, Liabilities or expenses from the Escrow Account prior to the distribution of funds to the Sellers. 

   

   

  

   

  (c)	The Purchaser is hereby relieved from any Liability to any Person for any action taken by or on behalf of the Purchaser in accordance with any decision, act, consent, or instruction of the Sellers’ Representative.  

  (d)	The Sellers’ Representative may only be removed upon delivery of written notice to Purchaser signed by the Sellers owning at least sixty-seven percent (67%) of the outstanding Units immediately prior to the Closing.  If the Sellers’ Representative resigns, dies or becomes legally incapacitated, the Sellers owning at least a majority of the outstanding Units immediately prior to the Closing promptly shall designate in writing to the Purchaser a single Person to fill the Sellers’ Representative vacancy as the Sellers’ Representative hereunder.  If at any time there shall not be a Sellers’ Representative or the Sellers fail to designate a successor Sellers’ Representative, then the Purchaser may have a court of competent jurisdiction appoint such Sellers’ Representative hereunder.

  6.7	R&W Policy.   From and after the Closing, the Purchaser shall use commercially reasonable efforts to maintain in full force and effect the R&W Policy.  The Purchaser shall pay and be responsible for (x) the premium of the R&W Policy and (y) any and all underwriting fees, brokerage fees, and legal fees for counsel engaged by the insurer of the R&W Policy, surplus lines Tax and any other costs and expenses associated with obtaining the R&W Policy and binding coverage thereunder.  The Purchaser agrees not to take any action to amend, restate or terminate any provision of the R&W Policy in a manner adverse to the Sellers without the express prior written consent of the Sellers’ Representative.

  6.8	Reserved.

  6.9	Release.   Effective as of the Closing Date, each of the Sellers, on behalf of itself and its Affiliates, legal representatives, successors and assigns (collectively, the “Releasors”), hereby releases, acquits and forever discharges, to the fullest extent permitted by Law, including by contractually shortening any applicable statute of limitations, each of the Purchaser, the Company and each of their respective past, present or future officers, managers, directors, shareholders, partners, members, Affiliates, employees, counsel, agents and other representatives (each a “Releasee”) of, from and against any and all actions, causes of action, claims, demands, damages, judgments, debts, dues and suits of every kind, nature and description whatsoever (collectively “Claims”) which such Person ever had, now has or may have on or by reason of any matter, cause or thing whatsoever related to the Company prior to the Closing; provided, however, that the foregoing release shall not cover (and the definition of Claims shall not include) (i) any rights and interest of the Releasors expressly provided for in this Agreement and the Transaction Documents, (ii) any rights to or claims of indemnification, exculpation or advancement of expenses provisions for the benefit of directors, managers, officers, employees or other individuals contained in the Indemnification Agreements, any insurance policies or the Company’s Organizational Documents, (iii) any rights to which any Releasor (and any owner thereof) is entitled by virtue of his or her status as an employee or consultant of any Releasee pursuant to any Employee Plan (including earned employee benefits that remain unpaid or unused accrued vacation as of the Closing Date) and any accrued compensation that remains unpaid as of the Closing Date and specifically set forth on Section 6.9 of the Company Disclosure Schedule,  (iv) any claims for reimbursement for expenses incurred in the ordinary course of each such Releasor’s employment or service to any Releasee which are reimbursable under the expense reimbursement policies of such Releasee, (v) any claims pursuant to any written commercial agreement set forth on Section 6.9 of the Company Disclosure Schedule between a Releasor, on the one hand, and a Releasee, on the other hand, in effect on the date hereof, and (vi) any claims that are not permitted to be released under applicable Law. Each Seller agrees not to, and agrees to cause its respective controlled Affiliates not to, assert any Claim with respect to the matters expressly released hereby against the Releasees. In addition, each Seller specifically waives the benefit of any and all provisions, rights and benefits conferred by any law of any state or territory of the United States, or principle of common law, which is similar, comparable or equivalent to California Civil Code section 1542, as well as the rights and benefits conferred by California Civil 

   

   

  

   

  Code section 1542 itself, which reads as follows: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH DEBTOR.  Each Seller understands and acknowledges the significance and consequence of this specific waiver. Each Seller acknowledges that such Seller has received or has had the opportunity to receive independent legal advice from its attorneys regarding this waiver, and each Seller hereby assumes full responsibility for any damages, loss or liability which it may hereunder incur by reason of such waiver.

  6.10	Settlement Amounts.  From and after the Closing, the Purchaser shall exercise commercially reasonable efforts to enter into a settlement agreement with respect to the litigation referred to on Section 6.10 of the Company Disclosure Schedule (the “Litigation”) on the terms, in all material respects, as those set forth in the draft settlement agreement in respect thereof made available to the Purchaser prior to the Closing Date; provided, that in no event shall the Purchaser or the Company be required to incur out-of-pocket expenses in excess of the amount referenced as the “maximum Litigation out-of-pocket expenses” set forth on Section 6.10 of the Company Disclosure Schedule in connection with the exercise of such commercially reasonable efforts.  IriSys shall have the right to any and all amounts actually received by the Company (through installment or otherwise) incident to the Litigation (the “Recovery”), whether by judgment, settlement, a combination thereof, and is an asset owned by IriSys, and the Purchaser waives and releases any and all claims it may have therein and thereto (to the extent such amounts are not reflected as an asset in the calculation of the Net Working Capital Amount, as finally determined); provided, however, that the amount of any Recovery under this Section 6.10 shall be net of any reasonable out-of-pocket collection costs of the Purchaser or any subsidiary thereof (including the Company) incurred after the Closing in obtaining such amounts (including payment of any legal expenses of outside counsel of the Purchaser or any subsidiary thereof (including the Company) related thereto that are incurred after the Closing, and to the extent that any such legal expenses of the Company are outstanding and unpaid as of the Closing, such legal expenses outstanding as of the Closing) net cash of Taxes of the Company incurred in the year of and in connection with such receipt and any payments made hereunder. The Purchaser shall cause the Company to pay any Recovery to IriSys within ten (10) Business Days of the Company’s receipt of any and such amounts shall be deemed to constitute additional Aggregate Consideration (notwithstanding the definition thereof). 

  6.11	Employee Equity Grants.  On or promptly following the Closing Date, and subject in all cases to the approval of the board of directors of the Purchaser (which approval the Purchaser shall use its reasonable best efforts to so promptly obtain), the Purchaser shall grant to certain employees and service providers of the Company as of the Closing Date, in consultation with the Sellers’ Representative, restricted stock units and/or options to purchase shares of Purchaser Common Stock, in each case, in an aggregate number of shares of Purchaser Common Stock set forth on Section 6.11 of the Disclosure Schedules, which restricted stock units and options to purchase shares of Purchaser Common Stock shall be issued pursuant to the Purchaser’s Amended and Restated 2018 Equity Incentive Plan.  

  6.12	Patent Matters.   Following the Closing, in the event Purchaser reasonably requests, in writing to Irisys within one year following the Closing, a non-exclusive license to use the patent rights set forth on Section 6.12 of the Disclosure Schedules (the “Licensed Technology”) solely for the use with a client of the Company in the Company’s ordinary course of business following the Closing, IriSys agrees to negotiate in good faith for a reasonable period of time with the Purchaser and the Company for such a non-exclusive license, which shall be on customary and market terms for such a non-exclusive license.   

   

   

  

   

  Article VII
INDEMNIFICATIONS; SURVIVAL

  7.1	Survival of Representations, Warranties and Covenants.  All representations, warranties and covenants contained in this Agreement shall survive the Closing and remain in full force and effect for the duration of the Indemnity Period, other than with respect to (a) (i) the Company Fundamental Representations, which shall survive until six (6) years following the Closing Date and (ii) the representations and warranties of the Company set forth in Section 5.8 (the “Company Tax Representations”) which shall survive until the expiration of the applicable statute of limitations with respect to the applicable matter; and (b) each covenant or agreement contained in this Agreement that is to be performed on or following the Closing Date which shall survive the Closing and remain in full force and effect until such covenant or agreement has been fully performed or fulfilled in accordance with its terms (the respective expiration dates for the survival of the representations and warranties and covenants and agreements shall be referred to herein as the “Expiration Date”), except that any representation, warranty, covenant or agreement that would otherwise terminate in accordance with clause (a) or (b) will continue to survive if a Claim Notice shall have been timely given to the Indemnifying Person by the Indemnified Person (which if the Sellers are the Indemnifying Persons, the Indemnified Person shall provide such Claim Notice to the Sellers’ Representative) on or prior to such applicable Expiration Date, until the related claim for indemnification has been satisfied or otherwise resolved as provided in this Article VII.

  7.2	Indemnification by the Sellers.  Subject to the terms, conditions and limitations of this Article VII, following the Closing, the Sellers shall, on a several (and not joint and several) basis (based on their relative Pro Rata Portion), indemnify and defend the Purchaser and its Affiliates (including, after the Closing, the Company), and their respective successors, assigns, officers, directors, stockholders, members, employees and agents (collectively, the “Purchaser Indemnified Persons” and each, a “Purchaser Indemnified Person”) against, and hold them harmless from, any Loss suffered or incurred by any such Purchaser Indemnified Person, or to which such Purchaser Indemnified Person may be or become subject, arising or resulting from or based upon: 

  (a)	any breach of any representation or warranty of any Seller contained in this Agreement; 

  (b)	any breach of any representation or warranty of the Company contained in this Agreement or in any certificate delivered to Purchaser hereunder; 

  (c)	any breach of any covenant by any Seller or the Sellers’ Representative contained in this Agreement; 

  (d)	any breach of any covenant by the Company (prior to the Closing) contained in this Agreement; 

  (e)	any Closing Indebtedness or any Closing Transaction Expenses that are not specifically included in the calculation of the Aggregate Consideration; 

  (f)	any inaccuracy in the Consideration Spreadsheet or the distribution of any portion of the Aggregate Consideration by the Purchaser in the manner set forth in the Consideration Spreadsheet or as otherwise directed by the Sellers’ Representative; and

  (g)	any Taxes of the Company or the Sellers for any taxable period ending on or before the Closing Date or for the portion of the Straddle Period through the end of  the Closing Date (to the extent not 

   

   

  

   

  included as a current liability in the calculation of the Net Working Capital Amount, as finally determined) and 50% of the Transfer Taxes.

  7.3	 Indemnification by the Purchaser.  Subject to the terms, conditions and limitations of this Article VII, following the Closing, the Purchaser shall indemnify and defend the Sellers and their respective successors, assigns, officers, directors, stockholders, members, employees and agents (collectively, the “Seller Indemnified Persons” and each, a “Seller Indemnified Person”), against, and hold them harmless from, any Loss suffered or incurred by any such Seller Indemnified Person, or to which such Seller Indemnified Person may be or become subject, arising or resulting from or based upon: (a) any breach of any representation or warranty of the Purchaser contained in this Agreement or in any certificate delivered by the Purchaser hereunder; and (b) any breach of any covenant by the Purchaser contained in this Agreement.

  7.4	Indemnity Limitations. 

  (a)	Notwithstanding anything to the contrary contained in this Agreement:

  (i)	The Purchaser Indemnified Persons shall not be entitled to indemnification pursuant to Section 7.2(a) or Section 7.2(b) unless and until the aggregate of all Losses arising from indemnity claims made by Purchaser Indemnified Persons under Section 7.2(a) or Section 7.2(b) exceeds Two Hundred Fifty Thousand Dollars ($250,000) (the “Basket Amount”), and if the aggregate amount of such indemnifiable Losses under Section 7.2(a) or Section 7.2(b) reaches the Basket Amount, the Purchaser Indemnified Persons shall be entitled to seek indemnity recourse for such indemnifiable Losses solely in excess of the Basket Amount; provided, that, the foregoing indemnification limitations shall not apply to indemnity claims made by Purchaser Indemnified Persons pursuant to Section 7.2(a) or Section 7.2(b) with respect to Company Fundamental Representations or Company Tax Representations.  

  (ii)	The aggregate Liability of the Sellers under Section 7.2(a) or Section 7.2(b) will not exceed the Indemnity Escrow Amount remaining at any given time in the Escrow Account and the Purchaser, on behalf of itself and the other Purchaser Indemnified Persons, agrees not to seek, and shall not be entitled to recover, any Losses in excess of such Indemnity Escrow Amount (and the R&W Policy shall be the sole source of recourse for the Purchaser Indemnified Persons) pursuant to Section 7.2(a) or Section 7.2(b); provided, that, the foregoing indemnification limitations shall not apply to indemnity claims made by the Purchaser Indemnified Persons pursuant to Section 7.2(a) or Section 7.2(b) with respect to Company Fundamental Representations or Company Tax Representations.  The aggregate Liability of the Sellers under Section 7.2(a) or Section 7.2(b) with respect to with respect to Company Fundamental Representations or Company Tax Representations and under Section 7.2(c) through Section 7.2(g) shall not exceed, in the aggregate, the Aggregate Consideration actually received by the Sellers hereunder (the “Cap”) and the Purchaser, on behalf of itself and the other Purchaser Indemnified Persons, agrees not to seek, and shall not be entitled to recover, any Losses or other payments pursuant to claims made by Purchaser Indemnified Persons in excess of the Cap.   

  (iii)	With respect to any indemnifiable Losses arising out of or resulting from any breach by any Seller under Section 7.2(a) or Section 7.2(c), Purchaser, on behalf of itself and the other Purchaser Indemnified Persons, will only have the right to seek recourse directly against such applicable Seller who committed such breach of Section 7.2(a) or Section 7.2(c), as applicable, subject to the other terms, conditions and limitations contained herein

  (iv)	Prior to seeking recovery directly from the Sellers pursuant to claims made by the Purchaser Indemnified Persons pursuant to Section 7.2(a) or Section 7.2(b) with respect to Company Fundamental Representations or Company Tax Representations, the Purchaser Indemnified Persons shall first 

   

   

  

   

  seek recourse against the Indemnity Escrow Amount and the R&W Policy and to the extent that the Indemnity Escrow Amount and R&W Policy is fully exhausted or recovery therefrom has been denied, the Purchaser Indemnified Persons may seek recourse directly against the Sellers on a several (and not joint and several) basis (based on their relative Pro Rata Portion), subject to the terms, conditions and limitations contained herein; provided, that in the case of any Seller who holds (or will hold) Purchaser Shares as of the applicable payment date for such indemnification obligation, any such direct payment obligation may be satisfied at such Seller’s option by the forfeiture and delivery (if applicable) to the Purchaser of a number of Purchaser Shares (valued for such purpose at the closing price of the Purchaser Common Stock as of the trading day immediately prior to the applicable payment date) having an aggregate value equal to the amount of such Seller’s applicable portion of such indemnification obligation, and such Seller and the Purchaser shall take such actions as are reasonably necessary to transfer (or forfeit, if applicable) such number of Purchaser Shares to the Purchaser; provided, further, that if any payment obligations remain outstanding to any Seller under the Note as of the applicable payment date, such direct payment obligation may also be satisfied at such Seller’s option by a decrease to the outstanding principal amount of the Note owing to such Seller. 

  (v)	The Purchaser Indemnified Persons shall have no right to set off against any Closing Adjustment Surplus Amount or other amount payable to the Sellers (or their Affiliates) under this Agreement or any other Transaction Document in satisfaction of any indemnity rights that the Purchaser Indemnified Persons may have under this Agreement.

  (vi)	The limitations set forth in this Section 7.4(a) or otherwise under this Article VII shall not apply, and nothing herein shall be construed to limit any Purchaser Indemnified Person’s rights or remedies, in the case of any claim for fraud. 

  (b)	Notwithstanding anything to the contrary contained in this Agreement:

  (i)	The Seller Indemnified Persons shall not be entitled to indemnification pursuant to Section 7.3(a) unless and until the aggregate of all Losses arising from indemnity claims made by Seller Indemnified Persons hereunder exceeds the Basket Amount, and if the aggregate amount of such indemnifiable Losses reaches the Basket Amount, the Seller Indemnified Persons shall be entitled to seek indemnity recourse for any such indemnifiable Losses in excess of the Basket Amount; provided, that, the foregoing indemnification limitations shall not apply to indemnity claims made by Seller Indemnified Persons pursuant to Section 7.3(a) with respect to Purchaser Fundamental Representations. 

  (ii)	The aggregate Liability of the Purchaser under Section 7.3 will not exceed the Cap and the Sellers, on behalf of themselves and the other Seller Indemnified Persons, agree not to seek, and shall not be entitled to recover, any Losses or other payments in excess of the Cap; provided, that, the foregoing limitation shall not apply to any breach by the Purchaser of Section 2.4 or any other obligations of the Purchaser to pay any portion of the Aggregate Consideration or any other consideration required to be paid to the Sellers hereunder.

  (c)	The amount of any Loss for which indemnification is provided under this Article VII shall be net of (i) any amounts actually recovered by the Indemnified Person from any third party (including insurance proceeds, including under the R&W Policy) as a result of the facts or circumstances giving rise to the Losses, to the extent such recovery would result in duplicative recoveries to such Indemnified Person for the same Losses and (ii) any Tax benefits that are actually realized by Indemnified Person as a result of the incurrence of Losses from which indemnification is sought in the taxable year in which such indemnification payment is made, the immediately subsequent taxable year; provided, that for the avoidance of doubt, no Purchaser Indemnified Person shall have any obligation to repay any amounts received by the Purchaser 

   

   

  

   

  Indemnified Parties from the Indemnity Escrow Amount and applied towards the satisfaction of the retention under the R&W Policy.

  (d)	Each Indemnified Person shall mitigate Losses suffered, incurred or sustained by such Indemnified Person arising out of any matter for which such Indemnified Person has sought indemnification hereunder, to the same extent required by Delaware Law.

  (e)	In no event shall any Purchaser Indemnified Person be entitled to indemnification to this Article VII with respect to a specific Loss to the extent such Loss is actually and specifically included in the calculation of the Closing Cash Consideration, as finally determined in accordance with Section 2.7, including any such Loss that is related to any reserve or other similar item included in such calculation. 

  (f)	Any Liability for indemnification under this Article VII shall be determined without duplication of recovery by reason of the set of facts giving rise to such Losses constituting a breach of more than one representation, warranty, covenant or undertaking, or one or more rights to indemnification.  

  (g)	For purposes of determining (i) the amount of any Losses arising out of, relating to or resulting from any failure of any representation or warranty to be true and correct, and (ii) whether or not such failure has occurred, such representations and warranties shall be considered without giving effect to any limitation or qualifications as to “materiality,” “Company Material Adverse Change”, “Seller Material Adverse Change”, or “Purchaser Material Adverse Change”, or any other derivation of the word “material.”

  (h)	Notwithstanding any other provision hereof, no Seller shall be liable to any Purchaser Indemnified Persons for Losses indemnifiable pursuant to Section 7.2(a) to the extent arising from or related to the fraudulent conduct of another Seller, and instead liability for the entire amount of such Losses shall rest with such Seller who engaged in such fraudulent conduct, and such indemnification obligation shall not be limited to such Seller’s Pro Rata Portion.

  (i)	Notwithstanding anything to the contrary contained in this Agreement, the Purchaser Indemnified Persons shall not be entitled to indemnification under this Article VII for Losses with respect to (i) any Taxes that are attributable to a taxable period (or portion thereof) beginning after the Closing Date and that arise from a breach of representations and warranties set forth in Section 5.8 (Tax Matters) (other than Sections 5.8(c), (d) or (n)), or (ii) the amount, value or condition of, or any limitations on, any Tax asset or attribute (e.g., net operating loss or Tax credit) of the Company or any of its Subsidiaries, including the ability of the Purchaser or any of its Affiliates (including the Company and its Subsidiaries after the Closing) to utilize such Tax asset or attribute following the Closing, in each case, in a taxable period (or portion thereof) beginning after the Closing Date.

  (j)	The indemnities provided under this Article VII are intended only for the Indemnified Persons and are in no way intended to, nor shall they, constitute an agreement for the benefit of, or be enforceable by, any other Person.

  7.5	Procedures Relating to Indemnification.

  (a)	Claims Procedure. 

  (i)	An Indemnified Person shall give prompt written notice (a “Claim Notice”) to the Indemnifying Person (which if the Sellers are the Indemnifying Persons pursuant to Section 7.2, the Indemnified Person shall provide such Claim Notice to the Sellers’ Representative for all purposes of this Article VII) after the Indemnified Person first becomes aware of any event or other facts that has resulted or 

   

   

  

   

  that would reasonably be expected to result in any Loss for which the Indemnified Person is entitled to any indemnification under this Agreement, and such notice shall contain (A) a description and, if known, the estimated amount of any Loss incurred or reasonably expected to be incurred by the Indemnified Person, (B) a reasonable explanation of the basis for the Claim Notice to the extent of the facts then known by the Indemnified Person and (C) a demand for payment of such Loss; provided that failure to give such notification shall not affect the indemnification provided hereunder except to the extent, and only to the extent that, the Indemnifying Person shall have been actually and materially prejudiced as a result of such failure. 

  (ii)	The Sellers’ Representative (if the Indemnifying Persons are the Sellers pursuant to Section 7.2) or the Purchaser (if the Indemnifying Persons are the Purchaser pursuant to Section 7.3) may in good faith, at any time on or before the tenth Business Day following its receipt of a Claim Notice (the “Objection Period”), object to the claim made in such Claim Notice by delivering written notice to the Indemnified Person and the Escrow Agent (a “Claim Objection”).  The Claim Objection shall set forth in reasonable detail the good faith reasons for the objection to such claim for indemnification, and the amount of any claimed Loss which is disputed.  If the Sellers’ Representative (if the Indemnifying Persons are the Sellers pursuant to Section 7.2) or the Purchaser (if the Indemnifying Persons are the Purchaser pursuant to Section 7.3), as applicable, does not timely deliver a Claim Objection, or delivers a Claim Objection that does not object to all of the Losses set forth in the Claim Notice, the Indemnifying Persons shall be deemed to have accepted and agreed with all or such portion of the claim and shall be conclusively deemed to have consented to the recovery by the Indemnified Person of all or such portion of the Losses specified in the Claim Notice.  If the Sellers’ Representative (if the Indemnifying Persons are the Sellers pursuant to Section 7.2) or Purchaser (if the Indemnifying Persons are the Purchaser pursuant to Section 7.3) timely delivers a Claim Objection, the Purchaser and the Sellers’ Representative, as applicable, shall attempt in good faith to agree upon the rights of the respective parties with respect to the disputed items of Losses and if the parties are not able to fully resolve all such differences within sixty (60) days from the applicable party’s receipt of a Claim Objection, the Purchaser or the Sellers’ Representative, as applicable, shall have the right to pursue legal recourse pursuant to Section 7.5(b) below. 

  (b)	Third-Party Claims

  (i)	In order for an Indemnified Person to be entitled to any indemnification provided for under this Agreement in respect of, arising out of or involving a claim or demand made by any Person against the Indemnified Person (a “Third-Party Claim”), such Indemnified Person must provide the Indemnifying Person with a Claim Notice regarding the Third-Party Claim promptly and in any event within ten (10) Business Days after receipt by such Indemnified Person of written notice of the Third-Party Claim; provided that failure to give such notification shall not affect the indemnification provided hereunder except to the extent, and only to the extent that, the Indemnifying Person shall have been actually and materially prejudiced as a result of such failure.  Thereafter, the Indemnified Person shall deliver to the Indemnifying Person, as promptly as practicable after the Indemnified Person’s receipt thereof and to the extent permitted by applicable Law, copies of all notices and documents (including court papers) received by the Indemnified Person relating to the Third-Party Claim.  

  (ii)	Subject to Section 7.5(b)(iii), if a Third-Party Claim is made against an Indemnified Person, the Indemnifying Person will be entitled to assume the defense thereof with counsel selected by the Indemnifying Person and reasonably acceptable to the Indemnified Person.  If the Indemnifying Person so elects to assume the defense of a Third-Party Claim, the Indemnifying Person will not be liable to the Indemnified Person for legal fees and expenses subsequently incurred by the Indemnified Person in connection with the defense thereof except as otherwise set forth herein.  If the Indemnifying Person assumes such defense, the Indemnified Person shall have the right, at its own expense, to participate in the defense thereof and, at its own expense, to employ counsel reasonably acceptable to the Indemnifying Person, separate from the counsel 

   

   

  

   

  employed by the Indemnifying Person, it being understood that the Indemnifying Person shall control such defense.  If the Indemnifying Person chooses to defend or prosecute any Third-Party Claim, all the Parties hereto shall reasonably cooperate in the defense or prosecution thereof.  Such cooperation shall include the retention and (upon the Indemnifying Person’s request) the provision to the Indemnifying Person of records and information which are reasonably relevant to such Third-Party Claim, and making officers, directors, employees and agents of the Indemnified Person reasonably available on a mutually convenient basis to provide information, testimony at depositions, hearings or trials, and such other assistance as may be reasonably requested by the Indemnifying Person and in a manner which does not unreasonably interfere with the business and operations of the Indemnified Person.  Whether or not the Indemnifying Person shall have assumed the defense of a Third-Party Claim, the Indemnified Person shall not admit any Liability with respect to, or settle, compromise or discharge, such Third-Party Claim without the Indemnifying Person’s prior written consent (which consent shall not be unreasonably withheld, delayed or conditioned).  The Indemnifying Person shall not admit any Liability with respect to, or settle, compromise or discharge any Third-Party Claim without the Indemnified Person’s prior written consent (which consent shall not be unreasonably withheld, delayed or conditioned); provided that the Indemnified Person shall agree to any such admission of Liability, settlement, compromise or discharge of a Third-Party Claim that the Indemnifying Person may recommend if and only if (A) the Indemnified Person will have no Liability with respect to such Third-Party Claim and will be released in full in connection with such Third-Party Claim; and (B) the same would not impose any injunction or other equitable remedies on the Indemnified Person or its business.

  (iii)	Notwithstanding anything contained herein to the contrary, if (A) the Indemnifying Person fails to notify the Indemnified Person within ten (10) Business Days after receipt of any Claim Notice of a Third-Party Claim that the Indemnifying Person elects to defend the Indemnified Person pursuant to the terms hereunder, (B) the Indemnifying Person elects to defend the Indemnified Person pursuant to the terms hereunder but, upon petition by the Indemnified Person, a court of competent jurisdiction rules that the Indemnifying Person has failed to diligently prosecute or settle the Third-Person Claim, (C) such Third-Party Claim seeks an injunction or other equitable relief against the Indemnified Party or alleges a criminal violation, (D) the conduct of such defense by the Indemnifying Party would be inappropriate due to a conflict between the Indemnified Party and the Indemnifying Party, (E) the amount in dispute exceeds the maximum amount for which an Indemnifying Party could be liable pursuant to this Article VII in light of the limitations on indemnification herein, (F) the Indemnifying Party does not agree in writing that the Indemnifying Party is obligated to pay for any Losses arising from or related to such Third-Party Claim (subject to the limitations on indemnification set forth in Section 7.4, and (G) the Third-Party Claim involves a customer, supplier or other material business relationship of the Company, then the Indemnified Person shall have the right to defend, at the sole cost and expense of the Indemnifying Person, the Third-Person Claim by all appropriate proceedings, which proceedings shall be prosecuted by the Indemnified Person to a final conclusion or settled, subject to the limitations on settlement by the Indemnified Person set forth in this Agreement and subject to the other terms, conditions and limitations of the indemnification obligations of the Indemnifying Person(s) under this Agreement.  

  7.6	Further Acknowledgement by the Purchaser.

  (a)	The Purchaser has conducted its own independent review and analysis of the Evaluation Materials, the Company, the Company’s business and the assets, Liabilities, results of operations and financial condition of the Company.  The Purchaser has undertaken such investigation as it has deemed necessary in connection with the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the Transactions.

  (b)	Without limiting the generality of the foregoing, no Purchaser Indemnified Person shall have any claim or right to recovery pursuant to this Agreement or otherwise, with respect to (i) any information, 

   

   

  

   

  documents or materials furnished, delivered or made available by the Sellers, the Company or its Affiliates, officers, directors, employees, agents or advisors to the Purchaser and/or its Affiliates or Representatives in certain “data rooms,” management presentations or any other form in contemplation of the Transactions or (ii) any projections, forecasts, estimates, plans or budgets of future revenue, expenses or expenditures, future results of operations (or any component thereof), future cash flows (or any component thereof) or future financial condition (or any component thereof) of the Company or the future business, operations or affairs of the Company heretofore or hereafter delivered to or made available to the Purchaser and/or its Affiliates or Representatives.

  (c)	The Purchaser acknowledges that it is consummating the Transactions without any representation or warranty, express or implied, by the Company or the Sellers or any of their respective Affiliates or Representatives except as expressly set forth in Article IV or Article V herein (as modified by the Company Disclosure Schedule) or any other Transaction Document to which the Company or the Sellers is a party or in any certificate or other document or instrument to be delivered to the Purchaser pursuant to this Agreement or any such other Transaction Document.  The Purchaser acknowledges that, except for the matters that are expressly covered by the provisions of this Agreement or any other Transaction Document to which the Company or the Sellers is a party or in any certificate or other document or instrument to be delivered to the Purchaser pursuant to this Agreement or any such other Transaction Document, it is relying on its own investigation and analysis in entering into both the Transaction Documents and the Transactions.

  (d)	Notwithstanding the foregoing, nothing herein shall limit any rights or remedies of the Purchaser in the case of a claim for fraud. 

  7.7	Tax Treatment of Indemnification Payments.  Any indemnification payments made to the Purchaser pursuant to this Agreement shall be treated as an adjustment to the Aggregate Consideration unless otherwise required by applicable Law.

  7.8	Exclusive Remedy.  Except for (a) the Sellers’ Representative’s indemnities under Section 6.6 and the remedies set forth in Section 2.7 with respect to the final determination of the Closing Cash Consideration and (b) any non-monetary equitable relief to which any Party hereto may be entitled from and after the Closing, the indemnification provisions contained in this Article VII are intended to provide the sole and exclusive remedy following the Closing as to all Losses any Party may incur arising from or relating to the Agreement and the Transactions, and each Party hereby waives, to the full extent they may do so, any other rights or remedies that may arise under any applicable Law.

  Article VIII

CLOSING DELIVERABLES

  8.1	Closing Deliverables of the Company and the Sellers.  The Company and the Sellers, as applicable, shall have delivered, or cause to be delivered, to the Purchaser the following:

  (a)	a certificate of a duly authorized officer of the Company, dated as of the Closing Date, expressly certifying: (A) a copy of the resolutions duly adopted by the managers of the Company authorizing the execution, delivery and performance by the Company of each Transaction Document to which the Company is a party and the consummation of the Transactions; (B) a certified copy of the certificate of formation of the Company; and (C) a certificate, dated not more than five (5) Business Days prior to the Closing, as to the good standing of the Company from the Secretary of State of California; 

   

   

  

   

  (b)	the Escrow Agreement, duly executed by the Sellers’ Representative and the Escrow Agent; 

  (c)	the written resignations of all of the managers and officers of the Company (except as otherwise agreed by the Purchaser), effective as of the Closing, in a form reasonably satisfactory to the Purchaser; 

  (d)	certificates evidencing the Units, if applicable, duly endorsed in blank or accompanied by unit powers duly executed in blank, or such other certificates or instruments effective under applicable Law to transfer ownership of the Units, in each case, in form and substance reasonably satisfactory to the Purchaser for valid transfer of title to the Units to the Purchaser; 

  (e)	a payoff letter issued by each holder of Closing Indebtedness identified by the Purchaser to be repaid concurrently with the Closing, which sets forth (A) the amount required to repay in full all Indebtedness owed to such holder at the Closing (the “Closing Repaid Indebtedness”), (B) the wire transfer instructions for the repayment of such Closing Repaid Indebtedness to such holder, and (C) if applicable, a release of all Liens granted by the Company to such holder or otherwise arising with respect to such Closing Repaid Indebtedness, effective upon repayment of such Closing Repaid Indebtedness (collectively, the “Payoff Letters”);

  (f)	a properly executed certificate of non-foreign status from each Seller in a form reasonably acceptable to Purchaser conforming to the requirements of Treasury Regulations Section 1.1445-2(b)(2); 

  (g)	a properly completed and executed IRS Form W-9 from the Company and each Seller; 

  (h)	each Restrictive Covenant Agreement, duly executed by the parties thereto; and

  (i)	the Note, duly executed by the Purchaser. 

  8.2	Closing Deliverables of the Purchaser.  The Purchaser shall have delivered, or caused to be delivered, to the Sellers the following:

  (a)	a certificate of a duly authorized officer of the Purchaser, dated as of the Closing Date, expressly certifying a copy of the resolutions duly adopted by the board of directors of the Purchaser authorizing the execution, delivery and performance by the Purchaser of each Transaction Document to which the Purchaser is a party and the consummation of the Transactions;

  (b)	the Escrow Agreement, executed by a duly authorized officer of the Purchaser and the Escrow Agent; and

  (c)	a copy of a filed Listing of Additional Shares application for the listing of the Purchaser Shares on NASDAQ. 

   

   

   

  

   

  Article IX

MISCELLANEOUS

  9.1	Governing Law.  This Agreement will be governed by and construed in accordance with the internal Laws of the State of Delaware applicable to agreements made and to be performed entirely within such State, without regard to the conflicts of Law principles that would require the application of any other Law.

  9.2	Jurisdiction.  Each of the Parties irrevocably consents to the exclusive jurisdiction and venue of any court within Wilmington, Delaware in connection with any Action based upon or arising out of this Agreement or the Transactions and irrevocably waives, to the fullest extent permitted by Law, any objection which it may now or hereafter have to the laying of the venue of any such Action in any such court or that any such Action which is brought in any such court has been brought in an inconvenient forum.  Process in any such Action may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court.

  9.3	Waiver of Jury Trial.  THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT OR OTHERWISE.  THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY ACTION WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

  9.4	Expenses.  Whether or not the Transactions are consummated, and except as otherwise provided in this Agreement, each Party to this Agreement will bear its respective fees, costs and expenses incurred in connection with the preparation, negotiation, execution and performance of this Agreement or the Transactions (including legal, accounting and other professional fees).  

  9.5	Attorneys’ Fees.  If any Action for the enforcement of this Agreement is brought with respect to or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions hereof, the successful or prevailing Party shall be entitled to recover its reasonable attorneys’ fees and other costs incurred in that Action, in addition to any other relief to which it may be entitled.

  9.6	Waiver; Remedies Cumulative.  The rights and remedies of the Parties to this Agreement are cumulative and not alternative.  Neither any failure nor any delay by any Party in exercising any right, power or privilege under this Agreement or any of the other Transaction Documents will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege.  To the maximum extent permitted by applicable Law, (a) no claim or right arising out of this Agreement or any of the other Transaction Documents can be discharged by one Party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other Parties; (b) no waiver that may be given by a Party will be applicable except in the specific instance for which it is given; and (c) no notice to or demand on one Party will be deemed to be a waiver of any obligation of that Party or of the right of the Party giving such notice or demand to take further action without notice or demand as provided in this Agreement or any of the other Transaction Documents.

   

   

  

   

  9.7	Notices.  All notices or other communications required or permitted to be given hereunder shall be in writing and shall be deemed given to a Party when (a) delivered by hand, (b) one (1) Business Day after being sent by a nationally recognized overnight courier service (costs prepaid), (c) sent by facsimile or email with confirmation of transmission by the transmitting equipment, or (d) received by the addressee, if sent by certified mail, postage prepaid and return receipt requested, in each case to the following:

  if to the Purchaser (or, after the Closing, the Company), to:

  Recro Pharma, Inc.

  1 E. Uwchaln Ave, Suite 112

  Exton,  PA 19341

  Attention: Ryan Lake

  Email: ryan.lake@recrocdmo.com

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

  Troutman Pepper Hamilton Sanders LLP

  3000 Two Logan Square

  Philadelphia, PA 19103	

  Attention: Rachael Bushey and Jen Porter

  Email: rachael.bushey@troutman.com; jennifer.porter@troutman.com

  if to the Sellers or the Sellers’ Representative (or, prior to the Closing, the Company), to:

  IriSys, Inc.

  Attention: Gerald Yakatan

  13813 Boquita Drive 

  Del Mar, CA 92014

  Email: gyakatan@sbcglobal.net

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

  Wilson Sonsini Goodrich & Rosati

  Professional Corporation

  12235 El Camino Real

  San Diego, California 92130

  Attention: Martin J. Waters and Jason Skolnik

  Fax: (858) 350-2399

  Email: mwaters@wsgr.com; jskolnik@wsgr.com

  Any Party may change its contact information for notices and other communications hereunder by written notice to the other Parties hereto in accordance with this Section 9.7.

  9.8	Assignment.  This Agreement shall be binding upon, and shall be enforceable by and inure solely to the benefit of the Parties hereto and their respective successors and assigns; provided, that this Agreement and the rights and obligations hereunder shall not be assignable or transferable by any Party without the prior written consent of the other Parties hereto and any assignment or transfer not in compliance with the above shall be null and void, except as set forth in Section 2.4(b) above.

   

   

  

   

  9.9	No Third-Party Beneficiaries.  Except for contemplated third-party beneficiaries as expressly provided in this Agreement relating to provisions benefiting Indemnified Persons under Article VII herein or as set forth in Section 2.12, this Agreement is for the sole benefit of the Parties hereto and their permitted successors and assigns and nothing herein expressed or implied shall give or be construed to give to any Person, other than the Parties hereto and such successors and assigns, any legal or equitable rights, remedy or claim hereunder.

  9.10	Amendments.  No amendment to this Agreement shall be effective unless it shall be in writing and signed by the Parties hereto.

  9.11	Company Disclosure Schedule.  The Company Disclosure Schedule shall be subject to the following terms and conditions: (a) the Company Disclosure Schedule are arranged in sections corresponding to the numbered and lettered sections and subsections contained in Article V, and the disclosures in any section or subsection of the Company Disclosure Schedule shall qualify one or more other sections or subsections in Article V, to the extent it is reasonably apparent from a reading of the text of the disclosure that such disclosure is applicable to such other sections and subsections; (b) no disclosure of any matter contained in the Company Disclosure Schedule shall create an implication that such matter meets any standard of materiality (matters reflected in the Company Disclosure Schedule are not necessarily limited to matters required by this Agreement to be reflected in the Company Disclosure Schedule; such additional matters are set forth for informational purposes only and do not necessarily include other matters of a similar nature, nor shall the inclusion of any item be construed as implying that any such item is “material” for any purpose); and (c) headings and introductory language have been inserted on the sections of the Company Disclosure Schedule for convenience of reference only and shall to no extent have the effect of amending or changing the express description of the sections as set forth in this Agreement.   

  9.12	Specific Performance.  Each of the Parties acknowledges and agrees that irreparable injury to the other Parties hereto may occur in the event that any provision of this Agreement was not performed in accordance with its specific terms or was otherwise breached and that such injury would not be adequately compensable in damages because of the difficulty of ascertaining the amount of damages that will be suffered in the event that this Agreement was breached.  It is accordingly agreed that each of the Parties shall be entitled, in addition to any other remedy to which they are entitled at law or in equity, to specific enforcement of, and injunctive relief, without proof of actual damages, to prevent any violation of the terms hereof, and no Party hereto will take action, directly or indirectly, in opposition to a Party seeking such relief on the grounds that any other remedy or relief is available at law or in equity.  Any requirements for the securing or posting of any bond with such remedy are hereby waived.  

  9.13	Construction.  In construing this Agreement, including the Exhibits and Schedules hereto, the following principles shall be followed: (a) the terms “herein,” “hereof,” “hereby,” “hereunder” and other similar terms refer to this Agreement as a whole and not only to the particular Article, Section or other subdivision in which any such terms may be employed; (b) except as otherwise set forth herein, references to Articles, Sections, Schedules and Exhibits refer to the Articles, Sections, Schedules and Exhibits of this Agreement, which are incorporated in and made a part of this Agreement; (c) a reference to any Person shall include such Person’s predecessors; (d) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP; (e) no consideration shall be given to the headings of the Articles, Sections, Schedules, Exhibits, subdivisions, subsections or clauses, which are inserted for convenience in locating the provisions of this Agreement and not as an aid in its construction; (f) the word “or” is not exclusive and the word “includes” and “including” and their syntactical variants mean “includes, but is not limited to” and “including, without limitation,” and corresponding syntactical variant expressions; (g) a defined term has its defined meaning throughout this Agreement, regardless of whether it appears before or after the place in this Agreement where it is defined, including in any Schedule or Exhibit; (h) the word “dollar” and the symbol “$” 

   

   

  

   

  refer to the lawful currency of the United States of America; (i) the plural shall be deemed to include the singular and vice versa and (j) the phrase “made available” to the Purchaser shall mean “made available at least two (2) Business Days prior to the date hereof”.

  9.14	Further Assurances.  Each Party agrees (a) to furnish upon request to each other Party such further information, (b) to execute and deliver to each other Party such other documents and (c) to do such other acts and things, all as another Party may reasonably request for the purpose of carrying out the intent of this Agreement and the other Transaction Documents.

  9.15	Entire Agreement.  This Agreement (including any Exhibit or Schedule attached hereto), the Transaction Documents and the Confidentiality Agreement contain the entire agreement and understanding among the Parties hereto with respect to the subject matter hereof and, except as explicitly set forth herein, supersede all prior and contemporaneous oral and written agreements and understandings relating to such subject matter.

  9.16	Severability.  If any provision of this Agreement or the application of any such provision to any Person or circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision hereof.

  9.17	Mutual Drafting.  The Parties hereto are sophisticated and have been represented by counsel who have carefully negotiated the provisions hereof.  As a consequence, the Parties do not intend that the presumptions of any Laws or other rules relating to the interpretation of contracts against the drafter of any particular clause should be applied to this Agreement and therefore waive their effects.

  9.18	Counterparts; Facsimile.  This Agreement may be executed in one or more counterparts, including by facsimile or PDF, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Parties.

  9.19	Waiver of Conflicts Regarding Representation.

  (a)	Wilson Sonsini Goodrich & Rosati, P.C. (“WSGR”) has acted as counsel for the Company in connection with the sale of the Company, including the process by which the Company solicited, discussed and negotiated strategic alternatives prior to the date hereof, this Agreement and the other agreements referenced herein or therein and the Transactions (collectively, the “Sale Engagement”) and, in that connection, not as counsel for any other Person, including the Purchaser or any of its Affiliates.  Only the Company shall be considered a client of WSGR in the Sale Engagement.  Notwithstanding anything contained herein to the contrary, if any Seller (or the Sellers’ Representative) so desires, WSGR shall be permitted, without the need for any future waiver or consent, to represent any Seller or the Seller’s Representative (each, a “Seller Party”) after the Closing in connection with any matter related to the matters contemplated by this Agreement or any other agreements referenced herein or therein or any disagreement or dispute relating thereto and may in connection therewith represent the agents or Affiliates of any Seller Party, in any of the foregoing cases including in any dispute, litigation or other adversary proceeding against, with or involving the Purchaser, or any of its agents or Affiliates. 

  (b)	To the extent that communications between the Company or any Seller Party, on the one hand, and WSGR, on the other hand, relate solely to the Sale Engagement, such communication shall be deemed to be attorney-client confidences that belong solely to the Sellers’ Representative, for and on behalf of the Seller Parties.  Neither the Purchaser, nor any of its Affiliates, shall have access to any such communications or the files or work product of WSGR, to the extent that they relate solely to the Sale Engagement, whether or not the 

   

   

  

   

  Closing occurs.  Without limiting the generality of the foregoing, the Purchaser acknowledges and agrees, for itself and on behalf of its Affiliates, upon and after the Closing: (i) the Sellers’ Representative, for and on behalf of the Seller Parties, and WSGR shall be the sole holders of the attorney-client privilege with respect to information that relates solely to the Sale Engagement, and neither the Purchaser nor any of its Affiliates, shall be a holder thereof; (ii) to the extent that files or work product of WSGR that relate solely to the Sale Engagement constitute property of the client, only the Sellers’ Representative, for and on behalf of the other Seller Parties, shall hold such property rights and have the right to waive or modify such property rights; and (iii) WSGR shall have no duty whatsoever to reveal or disclose any such attorney-client communications, files or work product to the Purchaser or any of its Affiliates, by reason of any attorney-client relationship between WSGR and the Company to the extent relating solely to the Sale Engagement; provided that, to the extent any communication is both related and unrelated to the Sale Engagement, the Sellers’ Representative, for and on behalf of the other Seller Parties, shall instruct WSGR to provide copies of such communications, files or work product to the Purchaser or its Affiliates (with only that information that solely relates to the Sale Engagement redacted). Notwithstanding the foregoing, if after the Closing a dispute arises between the Purchaser or one or more of its Subsidiaries, on the one hand, and a third party other than (and unaffiliated with)  any Seller Party, on the other hand, then the Purchaser or such Subsidiary (to the extent applicable) may assert the attorney-client privilege to prevent disclosure to such third party of confidential communications of the Current Representation; provided, that neither the Purchaser nor any of its Subsidiaries may waive such privilege without the prior written consent of the Sellers’ Representative; provided, further, that no Seller Party will waive attorney-client privilege without the prior written consent of the Purchaser in the event that a dispute or investigation or audit arises after the Closing between the Purchaser or the Company, on the one hand, and a third party, on the other hand.

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  IN WITNESS WHEREOF, the undersigned Parties have executed this Unit Purchase Agreement as of the date first written above.

   

  PURCHASER:

  RECRO PHARMA, INC.

  By: 	/s/ J. David Enloe, Jr.	

  	Name: J. David Enloe, Jr.	

  	Title: Chief Executive Officer and President	

   

  COMPANY:

  IRISYS, LLC

  By: 	/s/ Gerald Yakatan	

  	Name: Gerald Yakatan	

  	Title: Chief Executive Officer	

   

  SELLERS:

  IRISYS, INC.

  By: 	/s/ Gerald Yakatan	

  	Name: Gerald Yakatan	

  	Title: Chief Executive Officer	

   

  CONTINENT PHARMACEUTICALS U.S., INC.

  By: 	/s/ Ying Luo	

  	Name: Ying Luo	

  	Title: CEO GNI Group	

   

  EPS AMERICAS CORP.

  By: 	/s/ Kaz Ichinose	

  	Name: Kaz Ichinose	

  	Title: President and CEO	

  SELLERS’ REPRESENTATIVE: 

  IRISYS, INC.

  By: 	/s/ Gerald Yakatan	

  	Name: Gerald Yakatan	

  	Title: Chief Executive Officer

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