Document:

ex10_1.htm

EXHIBIT 10.1

 

QEP RESOURCES, INC.

DEFERRED COMPENSATION WRAP PLAN

 

 

incorporating the:

Deferred Compensation Program

401(k) Supplemental Program

 

  

  

  

 

QEP RESOURCES, INC.

DEFERRED COMPENSATION WRAP PLAN

ARTICLE 1

INTRODUCTION

1.1           Purpose.  QEP Resources, Inc. hereby establishes this QEP Resources, Inc. Deferred Compensation Wrap Plan (the “Plan” or “Wrap Plan”) in order to provide specified benefits to a select group of management and highly compensated employees and to allow such employees to defer the receipt of compensation.  The Plan consists of a common Deferred Compensation Wrap Plan containing definitions and other operative provisions and two separate component Programs – the Deferred Compensation Program and the 401(k) Supplemental Program. The Plan is hereby revised effective December __, 2011, to provide certain enhancements and to delete references to the Questar Corporation Deferred Compensation Wrap Plan (the “Questar Plan” as previously defined in the plan document) and to benefits transferred from the Questar Plan to this Plan. The provisions of the Plan as in effect on December __, 2011, shall govern accounts transferred from the Questar Plan to this Plan for periods prior to December __, 2011.

1.2           Status of Plan.  This Plan and its component Programs are intended to constitute two unfunded, nonqualified deferred compensation arrangements for the purpose of providing deferred compensation to “a select group of management or highly-compensated employees” within the meaning of Sections 201(2), 301(a)(3), and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended. The Plan and its component Programs are also intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder.  Finally, each of the component Programs is intended to qualify as a separate “plan, program, or arrangement” for purposes of 4 U.S.C. 114, thus making payments under the 401(k) Supplemental Program subject to state income tax solely of the state in which the recipient of the payment resides or is domiciled at the time payment is made.  Notwithstanding any other provision herein, this Plan and its component Programs shall be interpreted, operated and administered in a manner consistent with these intentions.

ARTICLE 2

DEFINITIONS

For purposes of the Plan and each component Program established under the Plan, the following terms or phrases shall have the following indicated meanings, unless the context clearly requires otherwise:

2.1           “401(k) Supplemental Program” means the component benefit program of this Plan attached hereto as Exhibit B.

2.2           “Account” or “Account Balance” means, for each Participant, the account or accounts established for his or her benefit under each Program, which records the credit on the records of the Employer equal to the amounts set aside under the Program and the deemed earnings, if any, credited to such account. The Account Balance shall be a bookkeeping entry only and shall be used solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan and its component Programs.

 

  

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2.3           “Affiliated Company” means any entity that is treated as the same employer as the Company under Sections 414(b), (c), (m), or (o) of the Code, any entity required to be aggregated with the Company pursuant to regulations adopted under Code Section 409A, or any entity otherwise designated as an Affiliated Company by the Company.

2.4           “Beneficiary” means that person or persons who become entitled to receive a distribution of benefits under the component Programs in the event of the death of a Participant prior to the distribution of all benefits to which he or she is entitled.

2.5           “Board” means the Board of Directors of the Company.

2.6           “Change in Control” shall be deemed to have occurred if:  (i) any individual, entity, or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”)) other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company, is or becomes the beneficial owner (as such term is used in Rule 13d-3 under the Exchange Act) of securities of the Company representing 30 percent or more of the combined voting power of the Company; or (ii) the following individuals cease for any reason to constitute a majority of the number of directors then serving:  individuals who, as of the Effective Date, constitute the Company’s Board of Directors and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds of the directors then still in office who either were directors on the Effective Date, or whose appointment, election or nomination for election was previously so approved or recommended; or (iii) there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any corporation, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 60 percent of the combined voting power of the securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation, or a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 30 percent or more of the combined voting power of the Company’s then outstanding securities; or (iv) the Company’s stockholders approve a plan of complete liquidation or dissolution of the Company or there is consummated  the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 60 percent of the combined voting power of the voting securities of which are owned by the stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.  In addition, if a Change in Control constitutes a payment event with respect to any payment under the Plan which provides for the deferral of compensation and is subject to Section 409A of the Code, the transaction or event described in clauses (i), (ii), (iii) and (iv) with respect to such payment must also constitute a “change in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5) before any such payment can be made.

 

  

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

2.8           “Committee” means the Compensation Committee of the Board or such other person or entity to which any responsibilities may be delegated by such Committee.

2.9           “Common Stock” means the no par value common stock of the Company.

2.10         “Company” means QEP Resources, Inc., a corporation organized and existing under the laws of the State of Delaware, or its successor or successors.

2.11         “Compensation” means:

(a)           Deferred Compensation Program.  For purposes of the Deferred Compensation Program, the total earnings paid by an Employer to an Employee and properly reportable on IRS Form W-2 for the applicable Plan Year (including payments under annual incentive compensation plans) and all amounts that are not included in such Employee’s gross income for federal income tax purposes solely on account of his or her election to have compensation reduced pursuant to the Plan, a qualified cash or deferred arrangement described in Section 401(k) of the Code, a cafeteria plan as defined in Section 125 of the Code, or a qualified transportation fringe benefit plan as defined in Section 132(f)(4) of the Code, but excluding payments under any long-term cash incentive plan and the following other forms of compensation: the Employer’s cost for any public or private employee benefit plan, any income recognized by the Employee as a result of exercising stock options, moving expenses, the value of restricted stock granted as signing or retention bonuses and any dividends paid on such shares, loan forgiveness, welfare benefits, and severance payments.

(b)           401(k) Supplemental Program.  For purposes of the 401(k) Supplemental Program, the same meaning as in paragraph (a) above, but excluding any Deferral Contributions made to the Deferred Compensation Program.

2.12         “Compensation Limit” means the annual limit of compensation that may be taken into account for purposes of providing benefits under a tax-qualified retirement plan pursuant to Section 401(a)(17) of the Code, as adjusted from time to time.

2.13         “Deferral Contributions” means that portion of a Participant’s Compensation that is deferred by a Participant pursuant to the Programs.

2.14         “Deferred Compensation Program” means the component benefit program of this Plan attached hereto as Exhibit A.

2.15         “Deferred Compensation Sub-Account” means the sub-account described in Section 5.1 of the Deferred Compensation Program.

2.16         “Disability” means a condition that renders a Participant unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, as described in Treas. Reg. Section 1.409A-3(i)(4)(i)(A).  A Participant shall not be considered to be disabled unless the Participant furnishes proof of the existence of such disability in such form and manner as may be required by regulations promulgated under, or applicable to, Code Section 409A.

 

  

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2.17         “Eligible Employee” means any Employee who meets the eligibility requirements set forth in the applicable Program.

2.18         “Employee” means any individual who is among a select group of management or highly compensated employees (as determined in accordance with Section 3401(c) of the Code and the Treasury Regulations thereunder) of an Employer.

2.19         “Employer” means the Company and each Affiliated Company that consents to the adoption of the Plan.

2.20         “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

2.21         “Fair Market Value” means the closing benchmark price of the Company’s Common Stock as reported on the composite tape of the New York Stock Exchange for any given valuation date, or if the Common Stock shall not have been traded on such date, the closing price on the next preceding day on which a sale occurred.

2.22         “Investment Plan” means the QEP Resources, Inc. Employee Investment Plan, as amended from time to time, or any successor plan.

2.23         “Matching Contributions” means Employer contribution amounts credited to Participants under the Deferred Compensation Program and 401(k) Supplemental Program in addition to (and made on account of) the Participants’ Deferral Contributions under such Programs.

2.24         “Matching Contribution Sub-Account” means the sub-account described in Section 5.1 of the Deferred Compensation Program.

2.25         “Participant” means any individual who has commenced participation in the Plan and any of its component Programs in accordance with Article 3.

2.26         “Plan” or “Wrap Plan” means this QEP Resources, Inc. Deferred Compensation Wrap Plan, as amended or restated from time to time.

2.27         “Plan Year” means the calendar year.

2.28         “Program” means the Deferred Compensation Program and the 401(k) Supplemental Program, or either of them, as the context may require.

 

  

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2.29         “Separation from Service” means a Participant’s termination or deemed termination from employment with the Employer.  For purposes of determining whether a Separation from Service has occurred, the employment relationship is treated as continuing intact while the Participant is on military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Participant retains a right to reemployment with his Employer under an applicable statute or by contract.  For this purpose, a leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services for the Employer.  If the period of leave exceeds six months and the Participant does not retain a right to reemployment under an applicable statute or by contract, the employment relationship will be deemed to terminate on the first date immediately following such six-month period.  For purposes of this Plan, a Separation from Service occurs at the date as of which the facts and circumstances indicate either that, after such date: (i) the Participant and Employer reasonably anticipate the Participant will perform no further services for the Company or an Affiliate (whether as an employee or an independent contractor), or (ii) that the level of bona fide services the Participant will perform for the Company or any Affiliate (whether as an employee or independent contractor) will permanently decrease to no more than 20 percent of the average level of bona fide services performed over the immediately preceding 36-month period or, if the Participant has been providing services to the Company or an Affiliate for less than 36 months, the full period over which the Participant has rendered services, whether as an employee or independent contractor.  The determination of whether a Separation from Service has occurred shall be governed by the provisions of Treasury Regulation section 1.409A-1, as amended, taking into account the objective facts and circumstances with respect to the level of bona fide services performed by the Participant after a certain date.

2.30           “Unforeseeable Emergency” means a severe financial hardship to a Participant resulting from (a) an illness or accident of the Participant, the Participant’s spouse, Beneficiary or dependant (within the meaning of section 152 of the Code, without regard to section 152(b)(1), (b)(2) and (d)(1)(B)); (b) the loss of the Participant’s property due to casualty; or (c) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.

 

ARTICLE 3

ELIGIBILITY; PARTICIPATION

3.1           Eligibility.  Eligibility to participate in the Plan shall be determined for each program as provided in Article 2 thereof.

3.2           Enrollment and Commencement of Deferrals.  Except as provided below with regard to automatic enrollment in the 401(k) Supplemental Program, each Eligible Employee who wishes to participate in the Plan for a Plan Year must make an irrevocable election to make Deferral Contributions for the Plan Year by timely completing, executing, and returning to the Committee such election forms or other enrollment materials, including electronic enrollment, as the Committee requires as follows:

(a) in the case of an Eligible Employee who first becomes eligible to participate in the Plan as of the first day of a Plan Year, on or prior to December 31st of the prior Plan Year, or such other earlier date as the Committee establishes in its sole and absolute discretion; and

 

  

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(b) in the case of an Eligible Employee who first becomes eligible to participate in the Plan after the first day of a Plan Year, within thirty (30) days after the date the Eligible Employee first becomes eligible to participate, or such other earlier date as the Committee establishes in its sole and absolute discretion.

If an Eligible Employee fails to timely complete, execute and return such election forms or other enrollment materials, the Eligible Employee shall be automatically enrolled in the 401(k) Supplemental Program as provided in Section 4.1(a), but shall not participate in the Deferred Compensation Program until the first day of the first Plan Year beginning after the date on which he or she timely completes, executes and returns such election forms or other enrollment materials to the Committee.

3.3           Failure of Eligibility.  If the Committee determines, in its sole and absolute discretion, that any Participant should no longer qualify to participate, the Participant shall cease to be an active Participant in the Plan and future contributions to the Plan made by or on behalf of the Participant shall cease as of the date of such determination by the Committee.  The Committee’s determination hereunder shall be final and binding on all persons.

ARTICLE 4

ELECTIONS

4.1           Deferral Elections.  Any deferral election under the Plan and its component Programs shall be made in accordance with Section 409A(a)(4)(B) of the Code and the regulations thereunder.

 

(a)           First Year of Plan Participation.  In connection with a Participant’s enrollment in the Plan pursuant to Section 3.2, the Participant shall make an irrevocable election to defer Compensation in accordance with the terms of the component Programs for which he or she is eligible, which election shall apply to the Plan Year in which the Participant commences participation.  A Participant may elect to defer Compensation only with respect to services performed for periods following the date of such election.  The Participant’s initial deferral election under this Section 4.1(a) shall continue to apply for all succeeding Plan Years unless and until revoked or modified pursuant to Section 4.1(b), below.  If the Participant fails to timely complete, execute and return such forms or other enrollment materials as required by the Committee in accordance with Section 3.2, then the Participant shall be deemed to have elected to make the Deferral Contributions permitted under the 401(k) Supplemental Program for the Plan Year in which the Participant commences participation and shall not be permitted to make any Deferral Contributions under the Deferred Compensation Program for such Plan Year.

 

(b)           Subsequent Plan Years.  For each succeeding Plan Year, the Participant may, prior to December 31st of the immediately preceding Plan Year (or such earlier deadline as is established by the Committee in its sole discretion) make an irrevocable election to initially defer Compensation under the Deferred Compensation Program for succeeding Plan Years, or to modify or revoke his or her existing elections to defer Compensation under either or both of the Programs for succeeding Plan Years.  All such elections shall be made in accordance with the terms of the Programs and shall remain in effect for all succeeding Plan Years unless timely revoked or modified by the Participant in accordance with this Section.  Any such modification shall apply prospectively only and shall not apply to Compensation previously deferred under either or both of the Programs.

 

  

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(c)           Performance-Based Compensation. The Committee may, in its sole discretion, determine that an irrevocable deferral election pertaining to Compensation that constitutes “performance-based compensation” (as defined in Treas. Reg. Section 1.409A-1(e)) may be made no later than six (6) months before the end of the performance service period, provided that the Participant performs services continuously from the later of the beginning of the performance period or the date upon which the performance criteria are established through the date upon which the Participant makes a deferral election for such compensation; provided, further that in no event shall an election to defer performance-based compensation be permitted after such compensation has become readily ascertainable.  Any deferral election under this Section 4.1(c) shall be made in accordance with Treas. Reg. Section 1.409A-2(a)(8).

(d)           Compensation Subject to Risk of Forfeiture.  With respect to Compensation (i) to which a Participant has a legally binding right to payment in a subsequent year, and (ii) that is subject to a forfeiture condition requiring the Participant’s continued services for a period of at least twelve (12) months from the date the Participant obtains the legally binding right to such payment, the Committee may, in its sole discretion, determine that an irrevocable election to defer such Compensation may be made no later than the 30th day after the Participant obtains the legally binding right to the Compensation, provided that the election is made at least twelve (12) months in advance of the earliest date at which the forfeiture condition could lapse.  Any deferral election under this Section 4.1(d) shall be made in accordance with Treas. Reg. Section 1.409A-2(a)(5).

Any election(s) made in accordance with this Section shall be irrevocable; provided, however, that if the Committee permits Participants to make a deferral election for “performance-based compensation” or “compensation subject to a substantial risk of forfeiture” by the deadline(s) described above, it may, in its sole discretion, and in accordance with Code Section 409A and related Treasury guidance or regulations, permit a Participant to subsequently change his or her elections for such Compensation no later than the deadlines established by the Committee pursuant to Section 4.1(c) or 4.1(d), above.

4.2           Elections as to Time and Form of Payment.  In connection with a Participant’s enrollment in the Plan pursuant to Section 3.2, the Participant shall also make the following elections with respect to each Program under the Plan:

 

(a)           Deferred Compensation Program.  If eligible to participate in the Deferred Compensation Program for the Plan Year in which the Participant commences participation under the Plan, the Participant shall make an irrevocable election (from the options available under Article 6 below) as to the time and form of payment of all deferrals (in the form of Deferral and/or Matching Contributions) credited to his or her Account under the Deferred Compensation Program for such Plan Year (including earnings thereon).  If the Participant fails to make such election, or such election does not meet the requirements of Code Section 409A and related Treasury guidance or regulations, the Participant shall be deemed to have elected to receive a lump sum distribution as soon as legally and administratively practicable following the earliest to occur of the Participant’s (i) Separation from Service, (ii) Disability, or (iii) death.  Except in the case of an election to receive an in-service distribution pursuant to Section 6.1(b)(iii), the Participant’s election (or deemed election) shall continue to apply for succeeding Plan Years unless and until the election is modified pursuant to Section 4.2(c), below.

 

  

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(b)           401(k) Supplemental Program.  The Participant shall make an irrevocable election as to the time and form of payment of all deferrals (in the form of Deferral and/or Matching Contributions) credited to his or her Account Balance under the 401(k) Supplemental Program from the options available under Section 6 below.  If the Participant fails to make such election, or if such election does not meet the requirements of Code Section 409A and related Treasury guidance or regulations, the Participant shall be deemed to have elected to receive a lump-sum distribution as soon as legally and administratively practicable following the earliest to occur of the Participant’s (i) Separation From Service, (ii) Disability, or (iii) death.

(c)           A Participant may make an irrevocable election to modify his or her existing elections as to the time and form of payment of any future Deferral or Matching Contributions credited to his or her Account Balance (and related earnings) under either or both of the Programs for succeeding Plan Years.  Such election shall be made in accordance with the terms of the Deferred Compensation Program and 401(k) Supplemental Program and Article 6 below, and except in the case of an election to receive an in-service distribution pursuant to Section 6.1(b)(iii), which election must be made separately for each Plan Year, the election shall remain in effect for all succeeding Plan Years unless and until timely modified by the Participant in accordance with this Section.  Any such modification shall apply prospectively only and shall not apply to Deferral or Matching Contributions previously credited under the Program (or any earnings thereon).

                      

4.3           Election Forms.  All elections shall be made on forms, including electronic forms, provided by the Committee and must be filed with the Company’s Vice President of Human Resources in order to be valid.

 

ARTICLE 5

ACCOUNT STATEMENTS

At least once a year within 60 days after the end of each Plan Year, a statement shall be sent to each Participant showing his or her Account Balance for each Program as of the last day of the Plan Year.  The statement shall also include the Deferral Contributions made by the Participant to each Program for the Plan Year, along with any Matching Contributions credited to the Participant’s Account Balances and the investment gains or losses (including reinvested dividends) credited during the Plan Year.

ARTICLE 6

DISTRIBUTIONS

6.1           Permissible Times and Forms of Payments.  A Participant may elect to receive his or her Account under the Deferred Compensation Program or his or her Account under the 401(k) Supplemental Program pursuant to an election form filed in accordance with Article 4 at the following times and in the following forms:

(a)           Time of Distribution.  A Participant may elect to receive a distribution as of the date of, or at a designated anniversary date following, the first to occur of the Participant’s Disability, Separation from Service, death or in the case of a distribution from the Participant’s Deferred Compensation Sub-Account, at a designated time or times specified by the Participant in his or her election forms, which shall not be earlier than 24 months from the date of deferral of the amount to be distributed.

 

  

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(b)           Form of Distribution.  A Participant may elect to receive a distribution of his or her Account in any of the following forms:

(i)            a single lump sum;

 

(ii)           up to ten (10) annual installments; or

 

(iii)           in the case of an in-service distribution from a Participant’s Deferred Compensation Sub-Account a single lump sum of the entire Account Balance attributable to the Participant’s Deferral Contributions made in one or more Plan Years, as designated by the Participant.

(c)           Subsequent Deferrals. Notwithstanding an actual or deemed election as to the timing of the distribution of a Participant’s Account, at such times and in such manner as the Committee may determine, a Participant may make an irrevocable election to delay the payment, or the commencement of payment, of his or her Account, but only if such election (i) is made not less than 12 months before the date the payment or commencement of installment payments is scheduled to be paid or to begin; (ii) shall not take effect until at least 12 months after the date the election is made; and (iii) relating to a payment not being made on account of death, Disability or an Unforeseeable Emergency, delays the payment or commencement of payments for a period of at least five years from the date the payment or series of payments was scheduled to be paid or begin.

(d)           Unforeseeable Emergency Distributions. A participant may request that a distribution of amounts credited to his Account may be made due to an Unforeseeable Emergency.

(i)            In no event shall a distribution due to an Unforeseeable Emergency exceed the balance of the Participant’s Account, determined as of the end of the month immediately preceding the date of the distribution, less any amounts distributed from or charged to the Participant Account since such date. The Committee may promulgate uniform rules regarding the effective date of any distribution, minimum amounts to be distributed and the frequency of distributions.

 

(ii)           A distribution may be made pursuant to this Section 6.1(d) due to an Unforeseeable Emergency only if the Participant satisfies the Committee that the Participant has an Unforeseeable Emergency and that the distribution is reasonably necessary in order to satisfy the Unforeseeable Emergency.

 

(iii)           A distribution because of an Unforeseeable Emergency may be made for one of the reasons listed in subparagraphs (A) through (C) of this paragraph (iii):

 

(A)           Medical expenses, including non-refundable deductibles and the cost of prescription drugs; or

 

(B)           The need to pay for funeral expenses of a spouse, Beneficiary or a dependent as defined; or

 

(C)           The need to prevent the imminent eviction of the Participant from his principal residence or foreclosure on the mortgage on the Participant’s principal residence.

 

  

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(iv)           A distribution will be considered to be reasonably necessary to satisfy an emergency need of a Participant only if the need may not be satisfied from other resources that are reasonably available to the Participant and the distribution does not exceed the amount needed to satisfy the need. The Committee shall consider all relevant facts and circumstances in determining whether a distribution is necessary in order to satisfy an emergency need. Generally, a distribution shall be deemed necessary if the Participant demonstrates to the Committee that the need cannot be relieved through reimbursement or compensation from insurance or otherwise, by the liquidation of the Participant’s assets (to the extent that such liquidation would not itself cause severe financial hardship) or by cessation of Deferral Contributions under the  Plan. A distribution will be deemed to be reasonably necessary to satisfy the emergency need of a Participant only if the distribution is not in excess of the amount reasonable necessary to satisfy the emergency need of the Participant (which may include amounts necessary to pay any federal, state, local or foreign income taxes or penalties reasonably anticipated to result from the distribution).

 

6.2           Change in Control.  Notwithstanding any election made by the Participant under Section 6.1, in the event of a Change in Control, all amounts then credited to the Participant’s Account shall be distributed to the Participant in a single lump sum within 60 days following the date of such Change in Control.

6.3           Calculation of Distributions.

(a)           Lump Sum.  All lump sum distributions shall be based on the value of the Participant’s Account as of the last day of the calendar month preceding the payment date.

(b)           Installment Distributions.  Under an installment payout, the Participant’s first installment shall be equal to a fraction of the balance credited to his or her Account as of the last day of the calendar month preceding such payment, the numerator of which is one and the denominator of which is the total number of installments selected.  The amount of each subsequent payment shall be a fraction of the balance in the Participant’s Account as of the last day of the calendar month preceding each subsequent payment, the numerator of which is one and the denominator of which is the total number of installments elected minus the number of installments previously paid.

6.4           Six-Month Delay.  Notwithstanding anything to the contrary in the Plan, no distribution shall be made to a Participant under the Plan on account of the Participant’s Separation from Service during the 6-month period following such Separation from Service to the extent that the Company determines that the Participant is a “specified employee” (as defined in Section 409A(a)(2)(B)(i) of the Code and the Treasury Regulations thereunder) at the time of such Separation from Service and that paying such amounts at the time or times indicated in the Plan would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code.  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such 6-month period (or such earlier date upon which such amount can be paid under Section 409A of the Code without being subject to such additional taxes, including as a result of the Participant’s death), a lump-sum distribution shall be made to the Participant under the Plan equal to the cumulative amount that would have otherwise been payable to the Participant during such 6-month period.

 

  

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6.5           Method of Payment.  All payments under the Plan shall be made in cash.

ARTICLE 7

ADMINISTRATION

7.1           Committee to Administer and Interpret Plan and Component Programs.  The Committee or its designee shall administer the Plan and its component Programs and shall have all discretion and power necessary for that purpose.  The Committee shall have the discretion, authority, and power to (i) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of the Plan and its component Programs and (ii) decide or resolve any and all questions that may arise in connection with this Plan and its component Programs, including interpretations of the Plan and its component Programs and determinations of eligibility to participate and to receive distributions under the Plan and its component Programs.  Any individual serving on the Committee, or anyone delegated responsibilities by the Committee, shall not vote or act on any matter relating solely to himself.  When making a determination or calculation, the Committee shall be entitled to rely on information supplied by a Participant, Beneficiary, or the Employer, as the case may be.  The Committee shall maintain all records of the Plan and its component Programs.

 

7.2           Agents.  In the administration of this Plan and its component Programs, the Committee may, from time to time, employ agents (including officers and other employees of the Company) and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel who may be counsel to the Company.

 

7.3           Binding Effect of Decisions.  The decision or action of the Committee with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and its component Programs and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan and its component Programs.

 

7.4           Indemnity of Committee.  The Company shall indemnify and hold harmless the members of the Committee and any employee to whom duties of the Committee may be delegated against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan and its component Programs, except in the case of willful misconduct by the Committee, any of its members, or any such employee.

 

7.5           Agent for Legal Process.  The Committee shall be agent of the Plan and its component Programs for service of all legal process.

 

ARTICLE 8

CLAIMS PROCEDURE

8.1           Filing a Claim.  All claims under this Plan and its component Programs shall be filed in writing or electronically by the Participant, his or her Beneficiary, or the authorized representative of either, by completing the procedures that the Committee requires.  The procedures shall be reasonable and may include the completion of forms and the submission of documents and additional information.  All claims shall be filed in writing or electronically with the Committee according to the Committee’s procedures no later than one year after the occurrence of the event that gives rise to the claim.  If the claim is not filed within the time described in the preceding sentence, the claim shall be barred.

 

  

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8.2           Review of Initial Claim.

 

(a)           Initial Period for Review of the Claim.  The Committee shall review all materials and shall decide whether to approve or deny the claim.  If a claim is denied in whole or in part, written notice of denial shall be furnished by the Committee to the claimant within a reasonable time after the claim is filed but not later than ninety (90) days after the Committee receives the claim. The notice shall set forth the specific reason(s) for the denial, reference to the specific Plan or Program provisions on which the denial is based, a description of any additional material or information necessary for the claimant to perfect his or her claim and an explanation of why such material or information is necessary, and a description of the Plan’s review procedures, including the applicable time limits and a statement of the claimant’s right to bring a civil action under ERISA section 502(a) following a denial of the appeal.

 

(b)           Extension.  If the Committee determines that special circumstances require an extension of time for processing the claim, it shall give written notice to the claimant and the extension shall not exceed ninety (90) days.  The notice shall be given before the expiration of the ninety (90) day period described in Section 8.2(a) above and shall indicate the special circumstances requiring the extension and the date by which the Committee expects to render its decision.

 

8.3           Appeal of Denial of Initial Claim.  The claimant may request a review upon written application, may review pertinent documents, and may submit issues or comments in writing.  The claimant must request a review within a reasonable period of time prescribed by the Committee.  In no event shall such a period of time be less than sixty (60) days.

 

8.4           Review of Appeal.

 

(a)           Initial Period for Review of the Appeal.  The Committee shall conduct all reviews of denied claims and shall render its decision within a reasonable time, but not to exceed sixty (60) days from the receipt of the appeal by the Committee. The claimant shall be notified of the Committee’s decision in a notice, which shall set forth the specific reason(s) for the denial, reference to the specific Plan or Program provisions on which the denial is based, a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the claimant’s claim, and a statement of the claimant’s right to bring a civil action under ERISA section 502(a) following a denial of the appeal.

 

(b)           Extension.  If the Committee determines that special circumstances require an extension of time for reviewing the appeal, it shall give written notice to the claimant and the extension shall not exceed sixty (60) days.  The notice shall be given before the expiration of the sixty (60) day period described in Section 8.4(a) above and shall indicate the special circumstances requiring the extension and the date by which the Committee expects to render its decision.

 

8.5           Form of Notice to Claimant.  The notice to the claimant shall be given in writing or electronically and shall be written in a manner calculated to be understood by the claimant.  If the notice is given electronically, it shall comply with the requirements of Department of Labor Regulation Section 2520.104b-1(c)(1)(i), (iii), and (iv).

 

  

13

  

 

8.6           Discretionary Authority of Committee.  The Committee shall have full discretionary authority to determine eligibility, status, and the rights of all individuals under the Plan and its component Programs, to construe any and all terms of the Plan and its component Programs, and to find and construe all facts.

 

ARTICLE 9

AMENDMENT AND TERMINATION OF PLAN

The Board may at any time amend, modify, or terminate this Plan and its component Programs; provided, however, that no such amendment may reduce any Participant’s Account Balances under the Plan or any component Program as it existed prior to the date of such amendment or termination.

ARTICLE 10

MISCELLANEOUS

10.1         Source of Payments.  Each participating Employer will pay all benefits for its Employees arising under this Plan and its component Programs, and all costs, charges and expenses relating to such benefits, out of its general assets.

10.2         No Assignment or Alienation.

(a)           General.  Except as provided in subsection (b) below, the benefits provided for in this Plan and its component Programs shall not be anticipated, assigned (either at law or in equity), alienated, or be subject to attachment, garnishment, levy, execution or other legal or equitable process.  Any attempt by any Participant or any Beneficiary to anticipate, assign or alienate any portion of the benefits provided for in this Plan or its component Programs shall be null and void.

(b)           Exception: DRO.  The restrictions of subsection (a) shall not apply to a distribution to an “alternate payee” (as defined in Code Section 414(p)) pursuant to a “domestic relations order” (“DRO”) within the meaning of Code Section 414(p)(1)(B).  The Committee shall have the discretion, power, and authority to determine whether an order is a DRO.  Upon a determination that an order is a DRO, the Committee shall direct the Employer to distribute to the alternate payee or payees named in the DRO, as directed by the DRO.

 

10.3         Beneficiaries.  A Participant shall have the right, in accordance with forms and procedures established by the Committee, to designate one or more beneficiaries to receive some or all amounts payable under each of the component Programs after the Participant’s death.  The Participant need not designate the same Beneficiary for each Program under the Plan.  In the absence of an effective beneficiary designation, all payments shall be made to the beneficiary designated by the Participant (or deemed by law to be designated) under the terms of the Investment Plan.

 

  

14

  

 

10.4         No Creation of Rights.  Nothing in this Plan or its component Programs shall confer upon any Participant the right to continue as an Employee of an Employer.  The right of a Participant to receive a cash distribution shall be an unsecured claim against the general assets of his or her Employer.  Nothing contained in this Plan or its component Programs nor any action taken hereunder shall create, or be construed to create, a trust of any kind, or a fiduciary relationship between the Company and the Participants, Beneficiaries, or any other persons.  All Accounts under the Plan and its component Programs shall be maintained for bookkeeping purposes only and shall not represent a claim against specific assets of any Employer.

10.5         Furnishing Information.  A Participant or his or her Beneficiary shall cooperate with the Committee by furnishing any and all information requested by the Committee and take such other actions as may be requested in order to facilitate the administration of the Plan and its component Programs and the payment of benefits thereunder.

10.6         Payments to Incompetents.  If the Committee determines in its discretion that a benefit under this Plan or any of its component Programs is to be paid to a minor, a person declared incompetent or to a person incapable of handling the disposition of his or her property, the Committee may direct payment of such benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person.  The Committee may require proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit.  Any payment of a benefit shall be a payment for the account of the Participant and the Participant’s Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan and its component Programs for such payment amount.

10.7         Court Order.  The Committee is authorized to make any payments directed by court order in any action in which the Plan or the Committee has been named as a party.

10.8         Code Section 409A Savings Clause.  The payments and benefits provided under the Plan and its component Programs are intended to be compliant with the requirements of Section 409A of the Code.  Notwithstanding any provision of this Plan to the contrary, including, without limitation, Article 9 hereof, in the event that the Company reasonably determines that any payments or benefits hereunder are not either exempt from or compliant with the requirements of Section 409A of the Code, the Company shall have the right adopt such amendments to this Plan and its component Programs or adopt such other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that are necessary or appropriate (i) to preserve the intended tax treatment of the payments and benefits provided hereunder, to preserve the economic benefits with respect to such payments and benefits, and/or (ii) to exempt such payments and benefits from Section 409A of the Code or to comply with the requirements of Section 409A of the Code and thereby avoid the application of penalty taxes thereunder; provided, however, that this Section 10.8 does not, and shall not be construed so as to, create any obligation on the part of the Company to adopt any such amendments, policies or procedures or to take any other such actions or to indemnify any Participant for any failure to do so.

 

  

15

  

 

10.9         Attorney Fees; Interest.  The Company agrees to pay as incurred, to the full extent permitted by law all legal fees and expenses which a Participant may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the Participant, or others following a Change in Control regarding the validity or enforceability of, or liability under, any provision of this Plan or any guarantee of performance thereof (including as a result of any contest by the Participant about the amount of any payment pursuant to this Plan), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code.  The foregoing right to legal fees and expenses shall not apply to any contest brought by a Participant (or other party seeking payment under the Plan) that is found by a court of competent jurisdiction to be frivolous or vexatious.  To the extent that any payments or reimbursements provided to the Participant under this Section are deemed to constitute compensation to the Participant, such amounts shall be paid or reimbursed reasonably promptly, but not later than December 31 of the year following the year in which the expense was incurred.  The amount of any payments or expense reimbursements that constitute compensation in one year shall not affect the amount of payments or expense reimbursements constituting compensation that are eligible for payment or reimbursement in any subsequent year, and the Participant’s right to such payments or reimbursement of any such expenses shall not be subject to liquidation or exchange for any other benefit.

10.10       Distribution in the Event of Taxation.  If, for any reason, all or any portion of a Participant’s benefits under this Plan or any of its component Programs becomes subject to federal income tax with respect to the Participant prior to receipt, a Participant may petition the Committee for a distribution of that portion of his or her benefit that has become taxable, or such lesser amount as may be permitted by Code Section 409A.  Upon the grant of such a petition, which grant shall not be unreasonably withheld, the Employer shall distribute to the Participant immediately available funds in an amount equal to the taxable portion of his or her benefit or such lesser amount as may be permitted by Code Section 409A (which amount shall not exceed a Participant’s unpaid Account Balances).  If the petition is granted, the tax liability distribution shall be made within 90 days of the date when the Participant’s petition is granted.  Such a distribution shall affect and reduce the benefits to be paid under this Plan and its component Programs.  Any distribution under this Section 10.10 must meet the requirements of Code Section 409A and related Treasury guidance or Regulations.

10.11       Governing Law.  To the extent not preempted by federal law, this Plan and its component Programs shall be governed by the laws of the State of Colorado without regard to conflicts of law principles.

 

I hereby certify that this revised QEP Resources, Inc. Deferred Compensation Wrap Plan was duly adopted by the Board of Directors of QEP Resources, Inc. on _____________, 2011.

Executed on this ____ day of _______________, 2011.

 

 

By:  ____________________________________________________

Richard J. Doleshek

Executive Vice President, Chief Financial Officer and Treasurer

 

  

16

  

Exhibit A

 

 

DEFERRED COMPENSATION PROGRAM

a component Program of the

QEP Resources, Inc.  Deferred Compensation Wrap Plan

 

  

A-1

  

 

QEP RESOURCES, INC.

DEFERRED COMPENSATION PROGRAM

ARTICLE 1

INTRODUCTION

1.1           Establishment of Program.  The Company hereby establishes this revised Deferred Compensation Program under the Wrap Plan, as January 1, 2012.  Unless otherwise defined herein, all capitalized terms herein shall the meanings set forth in the QEP Resources, Inc. Deferred Compensation Wrap Plan.

1.2           Purpose.  The purposes of the Deferred Compensation Program are (i) to provide Participants with the opportunity to defer receipt of specified portions of their annual Compensation including Bonuses in order to reduce current taxable income and to provide for future financial needs, and (ii) to provide a benefit to each Participant approximately equal to the benefit the Participant would have received under the Investment Plan if the Participant did not elect to defer Compensation under the Deferred Compensation Program but instead contributed an applicable portion of such amount to the Investment Plan.

ARTICLE 2

PARTICIPATION; ELECTIONS

2.1           Participation.  An Employee shall be an Eligible Employee for purposes of this Program if he or she is in a salary classification designated by the Committee as eligible to participate in the Program for a Plan Year or is otherwise designated as an Eligible Employee by the Committee.

2.2           Elections.  Each Participant shall make elections with regard to the deferral of Compensation and the time and form of payments under the Deferred Compensation Program in accordance with Articles 4 and 6 of the Wrap Plan.

ARTICLE 3

DEFERRAL CONTRIBUTIONS

Each Plan Year, a Participant, electing to defer Compensation under the Deferred Compensation Program for such Plan Year, must defer a minimum of $5,000 and may defer up to a maximum of 50% of his or her Compensation for such Plan Year, or such larger percentage of Compensation or a component thereof as may be designated by the Committee for a Plan Year.

ARTICLE 4

MATCHING CONTRIBUTIONS

4.1           Determination of Matching Contributions.  A Participant who makes Deferral Contributions to the Deferred Compensation Program for a Plan Year may receive a Matching Contribution.  The Committee will determine annually the amount, if any, of the Matching Contribution.

 

  

A-2

  

 

4.2           Vesting.  A Participant shall be fully vested at all times in the portion of his or her Account attributable to Deferral Contributions and shall be vested in the portion of his or her Account attributable to Matching Contributions to the same extent as such Participant is vested in any matching contributions under the Investment Plan.

ARTICLE 5

ACCOUNTS; DEEMED INVESTMENTS

5.1           Accounts.  The Committee shall establish an Account for each Participant with at least two sub-accounts as follows:

(a)           a Deferred Compensation Sub-Account which shall reflect all Deferral Contributions made by the Participant for each Plan Year, together with any adjustments for income, gain or loss and any payments from such sub-account as provided herein;

(b)           a Matching Contribution Sub-Account which shall reflect all Company Matching Contributions made under the Deferred Compensation Program for each Plan Year, together with any adjustments for income, gain or loss and any payments from such sub-account as provided herein.

 

The Committee shall establish such other sub-accounts as it deems necessary or desirable for the proper administration of the Deferred Compensation Program.  Amounts deferred by a Participant under the Deferred Compensation Program shall be credited to the Participant’s Account as soon as administratively practicable after the amounts would have otherwise been paid to the Participant.

 

5.2           Status of Accounts.  Accounts and sub-accounts established hereunder shall be  record-keeping devices utilized for the sole purpose of determining benefits payable under the Deferred Compensation Program, and will not constitute a separate fund of assets but shall continue for all purposes to be part of the general, unrestricted assets of the Employer, subject to the claims of its general creditors.

5.3           Deemed Investment of Amounts Deferred.

(a)           Deferred Compensation Program. In connection with his or her enrollment in the Deferred Compensation Program, a Participant may elect to have earnings, gains, or losses with respect to his or her Matching Contribution Sub-Account and Deferred Compensation Sub-Account calculated based on the deemed investment alternatives below, in increments of 1%.  In the event the Participant fails to make an election regarding the deemed investment of his or her Matching Contribution Sub-Account and Deferred Compensation Sub-Account, the Participant shall be deemed to have elected to invest 100% of his or her Matching Contribution Sub-Account and Deferred Compensation Sub-Account in the Common Stock Option (as described below).  The Participant’s investment election shall continue in effect unless and until modified by the Participant.  Any such modification shall apply prospectively and may apply to amounts previously deferred under the Deferred Compensation Program (and related earnings).

 

  

A-3

  

 

(b)           Common Stock Option.  Any portion of the Matching Contribution Sub-Account and Deferred Compensation Sub-Account deemed invested under this option (the “Common Stock Option”) shall be accounted for as if invested in shares of Common Stock purchased at Fair Market Value on the date on which a Deferral Contribution is credited to the Participant’s Account.  The Participant’s Matching Contribution Sub-Account and Deferred Compensation Sub-Account shall be credited on a quarterly basis with an amount equal to the dividends that would have become payable during the deferral period if actual purchases of Common Stock had been made, with such dividends accounted for as if invested in Common Stock as of the payable date for such dividends.  Any credited shares treated as if they were purchased with dividends shall be deemed to have been purchased at Fair Market Value on the dividend payment date. The Committee may prescribe such limitations as it deems advisable in its sole discretion on a Participant’s deemed investment in the Common Stock Option.

(c)           Investment Options.  Any portion of the Matching Contribution Sub-Account and Deferred Compensation Sub-Account deemed invested under this option (the “Investment Option”) shall be deemed invested in one or more of the investment options made available from time to time for Participants under the Plan. Each such deemed investment shall be credited or debited with earnings or losses as if the amount invested had been invested in the applicable investment fund made available by the Committee.

ARTICLE 6

DISTRIBUTIONS

All distributions of a Participant’s Account under the Deferred Compensation Program shall be made in accordance with the Participant’s election(s) (or deemed election(s)) under Articles 4 and 6 of the Wrap Plan.

  

A-4

  

Exhibit B

 

 

401(k) SUPPLEMENTAL PROGRAM

 

a component Program of the

QEP Resources, Inc.  Deferred Compensation Wrap Plan

 

  

B-1

  

 

QEP RESOURCES, INC.

401(k) SUPPLEMENTAL PROGRAM

ARTICLE 1

INTRODUCTION

1.1           Establishment of Program.  The Company hereby establishes this revised 401(k) Supplemental Program under the Wrap Plan, as of January 1, 2012.  Unless otherwise defined herein, all capitalized terms herein shall the meanings set forth in the QEP Resources, Inc. Deferred Compensation Wrap Plan.

1.2           Purpose.  The purpose of the 401(k) Supplemental Program is to provide a benefit to a Participant approximately equal to the benefit that the Participant would have received under the Investment Plan if the Compensation Limit were inapplicable.

ARTICLE 2

PARTICIPATION; ELECTIONS

2.1           Participation.  An Employee shall become immediately eligible to participate in the 401(k) Supplemental Program on the date in any Plan Year that the Employee first receives Compensation in excess of the Compensation Limit.

2.2           Elections.  Each Participant shall make elections with regard to the deferral of Compensation and the time and form of payments under the 401(k) Supplemental Program in accordance with Articles 4 and 6 of the Wrap Plan.

ARTICLE 3

DEFERRAL CONTRIBUTIONS

Each Plan Year, a Participant electing to defer Compensation under the 401(k) Supplemental Program must defer 6% of his or her Compensation in excess of the Compensation Limit for such Plan Year.

ARTICLE 4

MATCHING CONTRIBUTIONS

4.1           Amount of Matching Contributions.  A Participant who makes Deferral Contributions to the 401(k) Supplemental Program for a Plan Year shall be entitled to a Matching Contribution for such Plan Year in an amount determined on the same basis as matching contributions are determined for the Investment Plan, except that such Matching Contribution shall be based solely on Compensation in excess of the Compensation Limit.

4.2           Vesting.  A Participant shall be fully vested at all times in the portion of his or her Account attributable to Deferral Contributions and shall be vested in the portion of his or her Account attributable to Matching Contributions to the same extent as such Participant is vested in any matching contributions under the Investment Plan.

 

  

B-2

  

 

ARTICLE 5

ACCOUNTS; DEEMED INVESTMENTS

5.1           Accounts.  The Committee shall establish an Account and sub-accounts for each Participant as are necessary for the proper administration of the 401(k) Supplemental Program.  Such Accounts shall reflect Deferral Contributions and Matching Contributions made by or on behalf of the Participant, together with any adjustments for income, gain or loss and any payments from the Account as provided herein.  Deferral Contributions and related Matching Contributions shall be credited to the Participant’s Account as soon as administratively practicable after the Deferral Contribution would have otherwise been paid to the Participant.

5.2           Status of Accounts.  Accounts and sub-accounts established hereunder shall be  record-keeping devices utilized for the sole purpose of determining benefits payable under the 401(k) Supplemental Program, and will not constitute a separate fund of assets but shall continue for all purposes to be part of the general, unrestricted assets of the Employer, subject to the claims of its general creditors.

5.3           Deemed Investment of Accounts in 401(k) Supplemental Program.

(a)           401(k) Supplemental Program. In connection with his or her enrollment in the 401(k) Supplemental Program, a Participant may elect to have earnings, gains, or losses with respect to his or her Matching Contributions and Deferral Contributions Accounts calculated based on the deemed investment alternatives below, in increments of 1%.  In the event the Participant fails to make an election regarding the deemed investment of his or her Matching Contributions and Deferral Contributions, the Participant shall be deemed to have elected to invest 100% of his or her Matching Contributions and Deferral Contributions in the Common Stock Option (as described below).  The Participant’s investment election shall continue in effect unless and until modified by the Participant.  Any such modification shall apply prospectively and may apply to amounts previously deferred under the 401(k) Supplemental Program (and related earnings).

(b)           Common Stock Option.  Any portion of the Matching Contributions Account and Deferral Contributions Account deemed invested under this option (the “Common Stock Option”) shall be accounted for as if invested in shares of Common Stock purchased at Fair Market Value on the date on which a Matching Contribution or a Deferral Contribution is credited to the Participant’s Account.  The Participant’s Matching Contributions Account and Deferral Contributions Account shall be credited on a quarterly basis with an amount equal to the dividends that would have become payable during the deferral period if actual purchases of Common Stock had been made, with such dividends accounted for as if invested in Common Stock as of the payable date for such dividends.  Any credited shares treated as if they were purchased with dividends shall be deemed to have been purchased at Fair Market Value on the dividend payment date. The Committee may prescribe such limitations as it deems advisable in its sole discretion on a Participant’s deemed investment in the Common Stock Option.

(c)           Investment Plan Options.  Any portion of the Matching Contributions Account or Deferral Contributions Account deemed invested under this option (the “Investment Plan Option”) shall be deemed invested in one or more of the investment options made available from time to time for participants in the Investment Plan. Each such deemed investment shall be credited or debited with earnings or losses as if the amount invested had been invested in the underlying fund in the Investment Plan.

 

  

B-3

  

 

ARTICLE 6

DISTRIBUTIONS

All distributions of a Participant’s Account under the 401(k) Supplemental Program shall be made in accordance with the Participant’s election(s) (or deemed election(s)) under Articles 4 and 6 of the Wrap Plan.

 

 

B-4Unassociated Document

EXECUTION VERSION

LIMITED LIABILITY COMPANY MEMBERSHIP INTERESTS

PURCHASE AGREEMENT

December 5, 2011

By and Among

CIG PROPERTIES, INC.,

CIG WIRELESS CORP.

BAC BERLIN ATLANTIC HOLDING GMBH & CO. KG

and

COMMUNICATIONS INFRASTRUCTURE GROUP, LLC

  

  

  

LIMITED LIABILITY COMPANY

MEMBERSHIP INTERESTS PURCHASE AGREEMENT

THIS LIMITED LIABILITY COMPANY MEMBERSHIP INTERESTS PURCHASE AGREEMENT, dated December 5, 2011, by and among CIG Properties, Inc., a Delaware corporation (“Purchaser”), BAC Berlin Atlantic Holding GmbH & Co. KG, a German Kommanditgesellschaft(“Seller”), Communications Infrastructure Group, LLC, a Delaware limited liability company (the “CI Group”); and CIG Wireless Corp., a Nevada corporation (the “Parent Company”);

WHEREAS, Seller owns one hundred percent (100%) of the membership interests of the CI Group (the “Membership Interests”) representing all rights of the CI Group;

WHEREAS, Seller desires to sell to the Purchaser, and the Purchaser desires to purchase from Seller, on the terms and subject to the conditions set forth in this Agreement, 100% of the Membership Interests of the CI Group presently owned by Seller; and

WHEREAS, Parent Company, on behalf of Purchaser, desires to issue to the Seller Seven Hundred Fifty Thousand (750,000) shares of Company common stock, $.00001 par value (the “Common Stock”) at a value of Two U.S. Dollars ($2.00) per share, in consideration for the acquisition by the Purchaser of the Membership Interests, and the Seller desires to acquire such Common Stock.

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

ARTICLE I

DEFINITIONS

1.1            Definitions. (a)  As used in this Agreement, the following defined terms shall have the meanings indicated below:

“Actions or Proceedings” means any action, suit, proceeding, arbitration or Governmental or Regulatory Authority investigation or audit.

“Affiliate” means, as applied to any Person, (i) any other Person directly or indirectly controlling, controlled by or under common control with, that Person, (ii) any other Person that owns or controls ten percent (10%) or more of any class of equity securities (including any equity securities issuable upon the exercise of any Option) of that Person or any of its Affiliates, or (iii) any member, director, partner, officer, agent, employee or relative of such Person.  For the purposes of this definition, “control” (including with correlative meanings, the terms “controlling”, “controlled by”, and “under common control with”) as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through ownership of voting securities or by contract or otherwise.

 

  

1

  

 

“Agreement” means this Limited Liability Company Membership Interests Purchase Agreement, the Exhibits and the certificates delivered in connection herewith, as the same may be amended, modified or restated from time to time in accordance with the terms hereof.

“Assets and Properties” of any Person means all assets and properties of every kind, nature, character and description (whether real, personal or mixed, whether tangible or intangible, whether absolute, accrued, contingent, fixed or otherwise and wherever situated), including the goodwill related thereto, operated, owned or leased by such Person, including without limitation cash, cash equivalents, accounts and notes receivable, chattel paper, documents, instruments, general intangibles, real estate, equipment, inventory, goods.

“Books and Records” means all files, documents, instruments, papers, books and records relating to the Business, the CI Group, including without limitation financial statements, Tax Returns and related work papers and letters from accountants, budgets, pricing guidelines, ledgers, journals, deeds, title policies, minute books, stock certificates and books, stock transfer ledgers, Contracts, Permits, customer lists, computer files and programs, retrieval programs, operating data and plans and environmental studies and plans.

“Business” means the management of wireless communication towers and other wireless infrastructure.

“Business Day” means a day other than Saturday, Sunday or any day on which banks located in the State of New York are authorized or obligated to close.

“Business or Condition of the CI Group” means the business, condition (financial or otherwise), results of operations and Assets and Properties of the CI Group.

“CI Group” has the meaning set forth in the introduction to this Agreement.

“CI Group Charter” has the meaning ascribed to it in Section 3.1(b).

“Claim” means any and all manner of actions, cause and causes of action, suits, debts, sums of money, accounts, reckonings, bonds, controversies, Damages (as defined herein), judgments, executions, losses, expenses, claims, and demands.

 

“Claim Notice” means a written notification pursuant to Section 9.3 of an Indemnifiable Claim as to which indemnity under Article IX is sought by an Indemnitee, enclosing a copy of all papers served, if any, on the Indemnitee.

“Closing” means the closing of the transactions contemplated by Section 2.2.

 

  

2

  

 

“Closing Date” means December 5, 2011 or such other date on which the Closing actually occurs.

“Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

“Common Stock” has the meaning ascribed to it in the Recitals of this Agreement.

 

 

“Contract” means any agreement, lease, evidence of Indebtedness, mortgage, indenture, security agreement or other contract or other commitment (whether written or oral).

“Damages” means any and all damages, losses, Liabilities, costs, expenses, or judgments of any kind or nature whatsoever (including reasonable attorneys’, accountants’, and experts’ fees, disbursements, and other costs and expenses actually incurred in pursuing or defending Claims).

 

“Financial Statements” has the meaning set forth in Section 6.8.

 

“GAAP” means generally accepted accounting principles, consistently applied throughout the specified period and in all prior comparable periods.

“Governmental or Regulatory Authority” means any court, tribunal, authority, agency, commission, official or other instrumentality of the United States, any foreign country or any domestic or foreign state, county, city or other political subdivision, any arbitrator, tribunal or panel of arbitrators.

“Hazardous Material” means (i) any petroleum or petroleum products, radioactive materials, asbestos in any form that is or could become friable, urea formaldehyde foam insulation and transformers or other equipment that contain dielectric fluid containing levels of polychlorinated biphenyls (PCBs), (ii) any chemicals, materials, substances or wastes which are now or hereafter become defined as or included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,” “toxic pollutants” or words of similar import, under any environmental law, and (iii) any other chemical, material, substance or waste, exposure to which is now or hereafter prohibited, limited or regulated by any Governmental or Regulatory Authority.

“Indebtedness” means, as to any Person: (i) all obligations, whether or not contingent, of such Person for borrowed money (including, without limitation, reimbursement and all other obligations with respect to surety bonds, letters of credit and bankers’ acceptances, whether or not matured), (ii) all obligations of such Person evidenced by notes, bonds, debentures or similar instruments, (iii) all obligations of such Person representing the balance of deferred purchase price of property or services, except trade accounts payable and accrued commercial or trade liabilities arising in the ordinary course of business, (iv) all interest rate and currency swaps, caps, collars and similar agreements or hedging devices under which payments are obligated to be made by such Person, whether periodically or upon the happening of a contingency, (v) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (vi) all obligations of such Person under leases which have been or should be, in accordance with GAAP, recorded as capital leases, (vii) all indebtedness secured by any Lien (other than Liens in favor of lessors under leases other than leases included in clause (vii)) on any property or asset owned or held by that Person regardless of whether the indebtedness secured thereby shall have been assumed by that Person or is non-recourse to the credit of that Person, and (viii) all Indebtedness of any other Person referred to in clauses (i) through (vii) above, guaranteed, directly or indirectly, by that Person.

 

  

3

  

 

“Indemnitee” has the meaning ascribed to it in Article IX.

“Indemnitor” has the meaning ascribed to it in Article IX.

“IRS” means the United States Internal Revenue Service.

“Laws” means all laws, statutes, rules, regulations, ordinances and other pronouncements having the effect of law of the United States, any foreign country or any domestic or foreign state, county, city or other political subdivision or of any Governmental or Regulatory Authority.

“Liabilities” means all Indebtedness, obligations and other liabilities of a Person (whether absolute, accrued, contingent, known or unknown, fixed or otherwise, or whether due or to become due).

“Liens” means any mortgage, pledge, assessment, security interest, lease, lien, adverse claim, levy, charge or other encumbrance of any kind, or any conditional sale Contract, title retention Contract or Contract committing to grant any of the foregoing.

“Loss” means any and all damages, fines, fees, penalties, deficiencies, losses and expenses, including without limitation, interest, reasonable expenses of investigation, court costs, reasonable fees and expenses of attorneys, accountants and other experts or other expenses of litigation or other proceedings or of any claim, default or assessment (such fees and expenses to include without limitation, all fees and expenses, including, without limitation fees and expenses of attorneys, incurred in connection with (i) the investigation or defense of any Indemnifiable Claims or (ii) asserting or disputing any rights under this Agreement against any party hereto or otherwise).

“Membership Interest” has the meaning ascribed to it in the forepart of this Agreement.

“Option” with respect to any Person means any security, right, subscription, warrant, option, “phantom” stock right or other Contract that gives the right to (i) purchase or otherwise receive or be issued any shares of capital stock or other equity interests of such Person or any security of any kind convertible into or exchangeable or exercisable for any shares of capital stock or other equity interest of such Person or (ii) receive any benefits or rights similar to any rights enjoyed by or accruing to the holder of shares of capital stock or other equity interest of such Person, including without limitation any rights to participate in the equity, income or election of directors, management committee members or officers of such Person.

 

  

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“Order” means any writ, judgment, decree, injunction or similar order of any Governmental or Regulatory Authority (in each such case whether preliminary or final).

“Parent Company” has the meaning ascribed to it in the forepart of this Agreement.

“Permits” means all licenses, permits, certificates of authority, authorizations, approvals, registrations, franchises and similar consents granted or issued by any Governmental or Regulatory Authority.

“Person” means any individual, corporation, joint stock company, limited liability company or partnership, general partnership, limited partnership, proprietorship, joint venture, other business organization, trust, union, association or Governmental or Regulatory Authority.

“Purchaser” has the meaning ascribed to it in the forepart of this Agreement.

“Representatives” has the meaning ascribed to it in Section 5.1(b).

“SEC” means the U.S. Securities and Exchange Commission.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

“Seller” has the meaning ascribed to it in the forepart of this Agreement.

“Subsidiary” means any Person that, directly or indirectly through subsidiaries or otherwise, beneficially owns more than fifty percent (50%) of either the equity interests in, or the voting control of, such Person.

“Tax” or “Taxes” means all federal, state, local or foreign net or gross income, gross receipts, net proceeds, sales, use, ad valorem, value added, franchise, bank shares, withholding, payroll, employment, excise, property, alternative or add-on minimum, environmental or other taxes, assessments, duties, fees, levies or other governmental charges of any nature whatever, whether disputed or not, together with any interest, penalties, additions to tax or additional amounts with respect thereto.

“Tax Returns” means any returns, reports or statements (including any information returns) required to be filed for purposes of a particular Tax.

“Taxing Authority” means any governmental agency, board, bureau, body, department or authority of any United States Federal, state or local jurisdiction or any foreign jurisdiction, having or purporting to exercise jurisdiction with respect to any Tax.

 

  

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(b)           Unless the context of this Agreement otherwise requires, (i) words of any gender include each other gender, (ii) words using the singular or plural number also include the plural or singular number, respectively, (iii) the terms “hereof,” “herein,” “hereby” and derivative or similar words refer to this entire Agreement, (iv) the terms “Article” or “Section” refer to the specified Article or Section of this Agreement, and (v) the phrases “ordinary course of business” and “ordinary course of business consistent with past practice” refer to the business and practice of the CI Group.

(c)           When used herein, the phrase “to the knowledge of ” any Person, “to the best knowledge of ” any Person or any similar phrase, means (i) with respect to any Person who is an individual, the actual knowledge of such Person, and (ii) with respect to any other Person, the actual knowledge of the officers.

ARTICLE II

SALE OF MEMBERSHIP INTERESTS; CLOSING

2.1           Purchase and Sale.  On the terms and subject to the conditions of this Agreement, the Seller hereby sells to the Purchaser, and the Purchaser hereby purchases from Seller, one hundred percent (100%) of the Membership Interests, free and clear of all Liens, for the purchase price consideration of the Common Stock issued by the Parent Company, on behalf of Purchaser, to Seller.

2.2           Closing Deliveries.  The Closing hereby takes place at the offices of Wuersch & Gering LLP, 100 Wall Street, New York, New York 10005 on December 5, 2011 at 10:00 AM Eastern Standard Time, or at such other place or time as Purchaser, on the one hand, and the CI Group and Seller, on the other hand, mutually agree.  At the Closing, the Parent Company shall, on behalf of Purchaser, deliver to Seller one or more certificates representing the Common Stock;  Seller shall deliver to Purchaser one or more certificates representing all of the Membership Interests, together with all necessary instruments of transfer, in form and substance reasonably satisfactory to the Purchaser.  At the Closing, there shall also be delivered to the CI Group, Seller and Purchaser the certificates, documents and instruments to be delivered under Articles VI and VII.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF

SELLER AND THE CI GROUP

Subject to the disclosures and exceptions contained in the Books and Records, each of Seller and the CI Group hereby jointly and severally represents and warrants to Purchaser that the statements contained in this Article III are true and correct as of the date of this Agreement.

3.1           Organization of  Seller and the CI Group.  (a)  Seller is a German Kommanditgellschaft duly organized, validly existing and in good standing under the Laws of Germany.  Seller has, prior to the execution of this Agreement, delivered to Purchaser true and complete copies of the certificate of formation as in effect on the date hereof.

 

  

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(b)  The CI Group is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of Delaware, is duly qualified, licensed or admitted to do business and is in good standing in those jurisdictions in which the ownership, use or leasing of its Assets and Properties, or the conduct or nature of its business, makes such qualification, licensing or admission necessary.  The CI Group has, prior to the execution of this Agreement, delivered to Purchaser true and complete copies of its (i) certificate of formation of the CI Group with all amendments thereto (the “CI Group Charter”) and (ii) its operating agreement will all amendment thereto (the “CI Group Agreement”), in each case as in effect on the date hereof.

3.2           Power and Authority.  (a)  Seller has the requisite power and authority to execute and deliver this Agreement, and to perform its obligations hereunder and to consummate the transactions contemplated hereby.  The execution and delivery by Seller of this Agreement and the performance by Seller of its obligations hereunder, have been duly and validly authorized by all necessary corporate action.  This Agreement has been duly and validly executed and delivered by Seller, and constitutes, a legal, valid and binding obligation of Seller enforceable against Seller in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws relating to the enforcement of creditors’ rights generally and by general principles of equity.

(b)  The CI Group has the requisite power and authority to execute and deliver this Agreement to which it is a party, and to perform its obligations hereunder.  The execution and delivery by the CI Group of this Agreement and the performance by the CI Group of its obligations hereunder, have been duly and validly authorized by all necessary limited liability company action of the member(s) of the CI Group.  This Agreement has been duly and validly executed and delivered by the CI Group and constitutes, a legal, valid and binding obligation of the CI Group, enforceable against the CI Group in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws relating to the enforcement of creditors’ rights generally and by general principles of equity.

3.3           Capital.  As of the date hereof, Seller is the sole member of the CI Group and holds all of the Membership Interests in the CI Group.  There are no outstanding Options or agreements, arrangements or understandings to issue Options with respect to the CI Group and there are no preemptive rights or agreements, arrangements or understandings to issue preemptive rights with respect to the issuance or sale of equity interests of the CI Group other than pursuant to the transactions contemplated hereunder.

3.4           Subsidiaries.  There are no Subsidiaries of the CI Group as of the date hereof.

3.5           No Conflicts.  The execution and delivery by Seller and the CI Group of this Agreement and the performance by Seller and the CI Group of its respective obligations hereunder does not and will not:  (a) conflict with or result in a violation or breach of any of the terms, conditions or provisions of the CI Group Charter or the CI Group Agreement; (b) subject to obtaining the consents, approvals and actions, making of requisite filings and giving of notices, conflict with or result in a violation or breach of any term or provision of any Law or Order applicable to Seller or the CI Group or any of their respective Assets and Properties; or (c)(i) conflict with or result in a violation or breach of, (ii) constitute (with or without notice or lapse of time or both) a default under, (iii) require Seller or the CI Group to obtain any consent, approval or action of, make any filing with or give any notice to any Person as a result or under the terms of, (iv) result in or give to any Person any right of termination, cancellation, acceleration or modification in or with respect to, (v) result in or give to any Person any additional rights or entitlement to increased, additional, accelerated or guaranteed payments under, (vi) result in the creation of any new additional or increased liability of Seller or the CI Group under or (vii) result in the creation or imposition of any Lien upon Seller or the CI Group or any of their respective Assets and Properties under, any Contract or Permit to which Seller or the CI Group, is a party or by which any of their respective Assets and Properties are bound.

 

  

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3.6           Governmental Approvals and Filings.  Except to the extent previously disclosed by the Seller to the Purchaser, no consent, approval or action of, filing with or notice to any Governmental or Regulatory Authority on the part of Seller or the CI Group is required in connection with the execution, delivery and performance of this Agreement, or the consummation of the transactions contemplated hereby.

3.7           Books and Records.  The minute books and other similar records of the CI Group as made available to Purchaser prior to the execution of this Agreement contain a true and complete record, in all material respects, of all action taken at all meetings and by all written consents in lieu of meetings of directors, members, stockholders, the management committee or boards of directors, subcommittees and committees of the board of directors of the CI Group.

3.8           Environmental Matters.  There is no environmental litigation or other environmental proceeding pending or, to the knowledge of Seller or the CI Group, threatened by any Governmental or Regulatory Authority or others with respect to the business of the CI Group.  To the knowledge of Seller and the CI Group no state of facts exists as to environmental matters or Hazardous Material that involves the reasonable likelihood of a material capital expenditure by the CI Group that may otherwise have a material adverse effect.  To the knowledge of Seller and the CI Group, no Hazardous Material has been treated, stored or disposed of, or otherwise deposited, in or on the properties owned or leased by the CI Group in violation of any applicable environmental laws.  The environmental compliance programs of the CI Group comply in all material respects with all federal, state or local environmental laws, currently in effect.

3.9            No Undisclosed Liabilities.  The CI Group has no Liabilities of, relating to or affecting the CI Group or any of its Assets and Properties, except Liabilities disclosed by the Seller to the Purchaser and reflected on the Financial Statements.

3.10           Taxes.           (a)  Except as (i) as disclosed by the Seller and disclosed on the Financial Statements or (ii) otherwise contemplated by this Agreement, all Taxes which could constitute a lien on the Assets and Properties of the CI Group and which were due and payable by the CI Group on or before the Closing Date and all periods beginning and ending prior thereto have been or will be paid prior to delinquency.  All Tax Returns that have been filed by or with respect to the CI Group, or any affiliated, combined, consolidated, unitary or similar group of which the CI Group is or was a member (a "Relevant Group") with any Taxing Authority correctly and completely reflects the income, franchise or other Tax liability and all other information required to be reported thereon in all material respects.

 

  

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(b)  To its knowledge, the CI Group has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or due and payable to any employee, creditor, independent contractor or other third party.

(c)  Except as disclosed in the Financial Statements, the CI Group does not expect any Taxing Authority to assess any additional Taxes against or in respect of it for any past period.  Except as disclosed in the Financial Statements, there is no dispute or claim concerning any Tax liability of the CI Group either (i) claimed or raised by any Taxing Authority or (ii) otherwise known to the CI Group.  No issues have been raised in any examination by any Taxing Authority with respect to the CI Group, which, by application of similar principles, reasonably could be expected to result in a proposed deficiency for any other period not so examined.  The CI Group has delivered to Purchaser complete and correct copies of all federal, state, local and foreign income Tax Returns filed by, and all Tax examination reports and statements of deficiencies assessed against or agreed to by, the CI Group, since formation.

(d)  The CI Group has not received any written ruling related to Taxes or entered into any written and legally binding agreement with a Taxing Authority relating to Taxes.

(e)  None of the Assets and Properties of the CI Group constitute interests in any joint venture, partnership or other arrangement that is treated as a partnership for federal income Tax purposes.

(f)  No Taxing Authority has proposed Tax adjustments with respect to Seller or  the CI Group directly or indirectly in respect of an intercompany transaction or arrangement between or among Seller or the CI Group for any period ending on or prior to the Closing Date, including, without limitation (i) any tax arising from an adjustment in respect of such transaction or arrangement under Section 482 of the Code, the Treasury Regulations thereunder, any related provision or any similar provision of state, local or foreign law and (ii) any tax arising from a failure to fully comply with applicable documentation, record keeping and filing requirements in respect of such transaction or arrangement.

3.11           Legal Proceedings.  Except to the extent previously disclosed by the Seller to the Purchaser, (i) neither Seller, nor the CI Group has knowledge of any Orders outstanding against the CI Group; and (ii) there are no Actions or Proceedings pending or, to the knowledge of Seller or the CI Group  threatened (A) against, relating to or affecting  the CI Group or any of their respective Assets and Properties other than Actions or Proceedings not exceeding $100,000 and which individually or in the aggregate will not have a material adverse effect on the Business or Condition of the CI Group, or (B) which challenge the validity of the transactions contemplated by this Agreement.  The CI Group is not in default with respect to any Order of any court or Governmental or Regulatory Authority and there are no unsatisfied judgments against the CI Group.  There is not a reasonable likelihood of an adverse determination of any pending Action or Proceeding that would, individually or in the aggregate, have a material adverse effect on the Business or Condition of the CI Group.

 

  

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3.12           Compliance With Laws and Orders.  The CI Group and the conduct of the Business by the CI Group and Seller are in compliance with all applicable Laws and Orders, except where the failure to comply would not have a material adverse effect on the Business or Condition of the CI Group.  Neither Seller nor the CI Group has any knowledge that it is not in compliance with any of such Laws or Orders where the failure to comply would have a material adverse effect on the Business or Condition of the CI Group.  Neither Seller nor the CI Group has any reasonable basis to anticipate that any presently existing circumstances are likely to result in violations of any such Laws or Orders which would, individually or in the aggregate, have a material adverse effect on the Business or Condition of the CI Group.

3.13           Contracts.  The CI Group has made available to the Purchaser true and complete copy of all Contracts, instruments and other documents binding the CI Group to legal obligations or performance of duties or services.  Each Contract constitutes a legal, valid and binding obligation of the CI Group, enforceable in accordance with its terms, of the CI Group and to the knowledge of CI Group, each Person that is party thereto.   There is no, and neither Seller nor the CI Group has any knowledge of any nor received notice of any, default (or any condition or event which, after notice or lapse of time or both, would constitute a default) thereunder, which would have a material adverse effect on the Business or Condition of the CI Group.

3.14           Permits.  The Seller has made available to Purchaser a true and complete list of all Permits used in and material to the business or operations of the CI Group.  To the extent previously disclosed by the Seller to the Purchaser: (i)  the CI Group owns or validly holds all Permits that are material to and necessary for the operation of the Business, (ii)  each Permit is valid, binding and in full force and effect and (iii)  the CI Group has not received any written notice that it is in default (or with the giving of notice or lapse of time or both, would be in default) under any such Permit.

3.15           Employees. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the current employees of the CI Group, which could reasonably be expected to result in a material adverse effect on the Business or Condition of the CI Group.  To the knowledge of the CI  Group, no executive officer of the CI Group is now, or is expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the CI Group to any liability with respect to any of the foregoing matters.  To its knowledge, the CI Group is in compliance with all U.S. federal, state, and local laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Business or Condition of the CI Group.

 

  

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3.16           Affiliate Transactions.  Except to the extent of services contemplated to be rendered under internal inter-company service agreements among subsidiaries of the Parent Company, none of the members, officers or directors of Seller or the CI Group is presently a party to any transaction with the CI Group (other than for ordinary course services as officers and directors), including any Contract or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any such member, officer or director, to the knowledge of the CI Group, any Person in which any such member, officer or director has a substantial interest or is an officer, director, trustee or partner.

3.17           Brokers.  No agent, broker, finder, investment banker, financial advisor or other similar Person will be entitled to any fee, commission or other compensation in connection with any of the transactions contemplated by this Agreement on the basis of any act or statement made by Seller or the CI Group.

3.18           Exemption from Registration; Restrictions on Offer and Sale of Same or Similar Securities.  Assuming the representations and warranties of Purchaser set forth in Section 4.3 are true and correct in all material respects, the offer and sale of the Membership Interests made pursuant to this Agreement is exempt from the registration requirements of the Securities Act.  Neither Seller, the CI Group nor any Person authorized to act on their behalf has, in connection with the offering of the Membership Interests, engaged in (i) any form of general solicitation or general advertising (as those terms are used within the meaning of Rule 501(c) under the Securities Act), (ii) any action involving a public offering within the meaning of section 4(2) of the Securities Act, or (iii) any action that would require the registration under the Securities Act of the offering and sale of the Membership Interests pursuant to this Agreement or that would violate applicable state securities or “blue sky” laws. Neither Seller nor the CI Group has made, directly or indirectly, any offer or sale of Membership Interests or of securities of the same or a similar class as the Membership Interests that, if as a result of the offer and sale of the Membership Interests contemplated hereby, could fail to be entitled to exemption from the registration requirements of the Securities Act.  As used herein, the terms “offer” and “sale” have the meanings specified in Section 2(3) of the Securities Act.

3.19           Disclosure.  All representations made by Seller or the CI Group herein do not contain any untrue statements of material fact nor omit any statements of material fact.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF PURCHASER

Purchaser hereby represents and warrants to the CI Group that the statements contained in this Article IV are true and correct as of the date of this Agreement.

 

  

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4.1           Organization; Power and Authority.  Purchaser is a corporation, duly organized, validly existing and in good standing under the Laws of the state of Delaware.  Purchaser has the requisite power and authority to execute and deliver this Agreement to which it is a party and to perform its obligations hereunder.  The execution and delivery by Purchaser of this Agreement, to which it is a party, and the performance by Purchaser of its obligations hereunder, have been duly and validly authorized by Purchaser, no other action on the part of Purchaser being necessary.

4.2           No Conflicts.  The execution, delivery and performance of this Agreement and the consummation by Purchaser of the transactions contemplated hereby will not conflict with, or constitute a default under, any agreement, indenture or instrument to which Purchaser is a party, or any order, judgment or decree of any court or Governmental or Regulatory Authority having jurisdiction over Purchaser or any of its properties and, no consent, authorization or order of, or filing or registration with, any court or Governmental or Regulatory Authority is required by Purchaser for the execution, delivery and performance of this Agreement.

4.3           Purchase for Investment.  Purchaser is an “accredited investor” as that term is defined in Rule 501 under the Securities Act of 1933, as amended.  The Membership Interests will be acquired by Purchaser for its own account for the purpose of investment and not with a view to the resale or distribution of all or any part of the Membership Interests in violation of the Securities Act, it being understood that the right to dispose of such Membership Interests shall be entirely within the discretion of Purchaser.

4.4           Brokers.  No agent, broker, finder, investment banker, financial advisor or other similar Person will be entitled to any fee, commission or other compensation in connection with any of the transactions contemplated by this Agreement on the basis of any act or statement made by Purchaser.

ARTICLE V

[Reserved]

ARTICLE VI

CONDITIONS TO OBLIGATIONS OF PURCHASER

The obligations of Purchaser hereunder are subject to the fulfillment, at or before the Closing, of each of the following conditions (all or any of which may be waived in whole or in part by Purchaser in its sole discretion):

6.1           Representations and Warranties.  Each of the representations and warranties made by each of Seller and the CI Group in this Agreement are true and correct in all material respects (if not qualified by materiality) and in all material respects (if qualified by materiality).

6.2           Performance.  Each of Seller and the CI Group shall have performed and in all material respects complied with each agreement, covenant and obligation required by this Agreement to be so performed or complied with by Seller or the CI Group, as the case may be, at or before the Closing.

 

  

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6.3           Orders and Laws.  There is not in effect any Order or Law restraining, enjoining or otherwise prohibiting or making illegal the consummation of any of the transactions contemplated by this Agreement or which could reasonably be expected to otherwise result in a material diminution of the benefits of the transactions contemplated by this Agreement to Purchaser, and there is not be pending or threatened any Action or Proceeding or any other action (i) which could reasonably be expected to result in the issuance of any such Order or the enactment, promulgation or deemed applicability to Purchaser, Seller, or the CI Group or the transactions contemplated by this Agreement of any such Law; or (ii) wherein an unfavorable judgment, decree or Order would prevent the carrying out of this Agreement or any of the transactions or events contemplated hereby or thereby, declare unlawful the transactions or events contemplated by this Agreement or present a risk of damages to Purchaser.

6.4           Regulatory Consents and Approvals.  All consents, approvals and actions of, filings with and notices to any Governmental or Regulatory Authority necessary to permit Purchaser, Seller and the CI Group to perform their obligations under this Agreement and to consummate the transactions contemplated hereby (i) shall have been duly obtained, made or given, (ii) shall be in form and substance reasonably satisfactory to Purchaser, (iii) shall not impose any limitations or restrictions on Purchaser, (iv) shall not be subject to the satisfaction of any material condition that has not been satisfied or waived and (v) shall be in full force and effect, and all terminations or expirations of waiting periods imposed by any Governmental or Regulatory Authority necessary for the consummation of the transactions contemplated by this Agreement shall have occurred.

6.5           Third Party Consents.  The consents (or in lieu thereof waivers), and all other consents (or in lieu thereof waivers) to the performance by Purchaser, Seller and the CI Group of their obligations under this Agreement, or to the consummation of the transactions contemplated hereby and thereby as are required under any Contract to which Purchaser, Seller or the CI Group is a party or by which any of their respective Assets and Properties are bound and where the failure to obtain any such consent (or in lieu thereof waiver) could reasonably be expected, individually or in the aggregate with other such failures, to materially adversely affect Purchaser or the Business or Condition of the CI Group or otherwise result in a material diminution of the benefits of the transactions contemplated by this Agreement to Purchaser in its reasonable discretion, (i) shall have been obtained, (ii) shall be in form and substance satisfactory to Purchaser in its reasonable discretion, (iii) shall not be subject to the satisfaction of any material condition that has not been satisfied or waived and (iv) shall be in full force and effect.

6.6           Good Standing Certificates.  Seller and the CI Group will deliver to Purchaser: (i) copies of the certificates of formation , including all amendments thereto, of the CI Group certified by the Secretary of State or other appropriate official of the jurisdiction of formation or incorporation, (ii) certificates from the Secretary of State or other appropriate official of the jurisdiction of organization to the effect that the CI Group is in good standing or subsisting in such jurisdiction, listing all charter documents of the CI Group on file and attesting to its payment of all franchise or similar Taxes, and (iii) a certificate from the Secretary of State or other appropriate official in each jurisdiction in which Seller and the CI Group are qualified or admitted to do business to the effect that Seller or the CI Group is duly qualified or admitted and in good standing in such jurisdiction.

 

  

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6.7           No Adverse Change.  There shall have occurred no material adverse change in the Business or Condition of the CI Group since the date hereof.

6.8           Audit Financial Statements and Audit Report.  Seller shall prior to Closing deliver to the Purchaser, true and complete copies of the statements of income-income tax basis, assets, liabilities and stockholders’ equity for the twelve-month periods audited financial statements of the CIG Operating Company, which shall be audited with respect to the twelve month periods ended September 30, 2010 and 2011, respectively (collectively, the “Financial Statements”) together with a signed audit report for each of the Financial Statements of a public accounting firm which is in good standing with the Public Company Accounting Oversight Board and which shall include consent for the Public Company to file such Financial Statements and such audit report with the SEC, and as to which such Financial Statements shall (a) be prepared in accordance with U.S. GAAP, (b) present fairly in all material respects the financial position results of operations and changes in cash flows of the CI Group with respect to each Financial Statements period, (c) be accurate, correct and complete in all material respects and consistent with the Books and Records of Seller and (d) can be reconciled with the financial statements and the financial records maintained and the accounting methods applied by Seller to the CI Group for U.S. federal income Tax purposes.

 

6.9           Common Stock.  The Seller shall have executed and delivered to Purchaser the Common Stock Purchase Agreement in the form attached hereto as Exhibit A, with respect to which all representations, warranties and covenants of Seller therein shall be true and complete on the date of Closing, and on which the Purchaser and the Parent Company of Purchaser may fully rely for purposes of issuance of the Common Stock to Seller pursuant to one or more exemptions from registration under the Securities Act.

ARTICLE VII

CONDITIONS TO OBLIGATIONS OF SELLER AND THE CI GROUP

The obligations of Seller and the CI Group hereunder are subject to the fulfillment, at or before the Closing, of each of the following conditions (all or any of which may be waived in whole or in part by Seller or the CI Group in their sole discretion):

7.1           Representations and Warranties.  Each of the representations and warranties made by Purchaser in this Agreement are true and correct in all material respects (if not qualified by materiality) and in all respects (if qualified by materiality).

7.2           Performance.  Purchaser shall have performed and complied with, in all material respects, each agreement, covenant and obligation required by this Agreement to be so performed or complied with by Purchaser at or before the Closing.

 

  

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7.3           Orders and Laws.  There are not in effect any Orders or Laws restraining, enjoining or otherwise prohibiting or making illegal the consummation of any of the transactions contemplated by this Agreement.

7.4           Regulatory Consents and Approvals.  All consents, approvals and actions of, filings with and notices to any Governmental or Regulatory Authority necessary to permit Seller, the CI Group and Purchaser to perform their obligations under this Agreement and to consummate the transactions contemplated hereby and thereby (i) shall have been duly obtained, made or given, (ii) shall be in form and substance reasonably satisfactory to Seller and the CI Group, (iii) shall not be subject to the satisfaction of any condition that has not been satisfied or waived and (iv) shall be in full force and effect, and all terminations or expirations of waiting periods imposed by any Governmental or Regulatory Authority necessary for the consummation of the transactions contemplated by this Agreement shall have occurred.

7.5           Common Stock.  The Parent Company of Purchaser shall have taken any and all actions necessary to cause the due of issuance of the Common Stock at Closing.

ARTICLE VIII

SURVIVAL OF REPRESENTATIONS, WARRANTIES,

COVENANTS AND AGREEMENTS

8.1           Survival of Representations and Warranties.  The representations and warranties of the CI Group, Seller and Purchaser contained in this Agreement will survive the Closing until the first anniversary of the Closing Date; except that any representation or warranty that would otherwise terminate  will continue to survive if a Claim Notice shall have been timely given under Article IX on or prior to such termination date, until the related claim for indemnification has been satisfied or otherwise resolved as provided in Article IX, but only with respect to matters described in such Claim Notice.

 

8.2           Survival.  The covenants and agreements of the parties contained in or made pursuant to this Agreement shall not survive Closing, unless any such covenant or agreement by its express terms states that it does so survive.

 

8.3           Effect of Knowledge.  If a party elects to proceed with the Closing and any specified condition in its favor is not satisfied or there exists a breach of any specified representation, warranty or covenant by the other party, such condition that is unsatisfied or the representation, warranty or covenant which is breached at the date of Closing shall be deemed to be waived by the party electing to proceed, and such other party shall be deemed to fully released and forever discharged by the party electing to proceed and on account of any and all Liabilities or Damages with respect to the same.  The provisions of this Section 8.3 shall survive Closing.

 

  

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ARTICLE IX

INDEMNIFICATION

9.1           Survival of Representations and Warranties. The representations and warranties of the parties hereto contained in this Agreement shall survive the consummation of the transactions contemplated hereby until the date which is one (1) year following the Closing Date (the “General Survival Date”), provided, however, that the representations and warranties set forth herein pertaining to Section 3.1 (Organization of Seller and CI Group); 3.2 (Power and Authority); 3.17 (No Brokers); 4.1 (Organization; Power and Authority), and 4.4 (No Brokers), shall survive indefinitely (each such date, including the General Survival Date, being a “Survival Date”); and provided, further, that if any notice of a Claim by a Purchaser Indemnified Party or a Seller Indemnified Party shall have been given prior to the applicable Survival Date, the representations and warranties that are the subject of such notice shall survive until such time as such Claim is finally resolved.  With the exception of Claims brought in connection with the representations and warranties described directly above in clause (i) (which survive indefinitely) or Claims which remain unresolved for which notice has already been given, at the end of all Survival Dates, no Claim may be brought against any party for indemnification (or otherwise for Damages) resulting from any breach of any representation or warranty contained in this Agreement.

 

9.2           Indemnification by Seller.  Seller agrees to defend, indemnify and hold harmless Purchaser (and each of its officers, directors, and employees) (each a “Purchaser Indemnified Party”) from and against any Damages arising out of, resulting from, or in connection with:

 

(a) any material misrepresentation or breach of any representation or warranty made by Seller in this Agreement; and

 

(b) the failure of Seller to substantially perform or observe in all respects any covenant, agreement or provision to be performed or observed by it pursuant to this Agreement.

 

9.3           Indemnification by Purchaser. Purchaser agrees to defend, indemnify and hold harmless Seller and each of Seller’s officers, directors, and employees (each a “Seller Indemnified Party”), from and against any Damages arising out of, resulting from, or in connection with:

 

(a) any material misrepresentation or breach of any representation or warranty made by Purchaser in this Agreement; and

 

(b) the failure of Purchaser to substantially perform or observe in all respects any covenant, agreement or provision to be performed or observed by it pursuant to this Agreement.

 

9.4           Procedure for Indemnification.  After acquiring knowledge of any Damage or Claim for which Seller, on the one hand, or Purchaser, on the other hand, have agreed to provide indemnification under this Article (an “Indemnifiable Claim”), the Person to be indemnified (the “Indemnitee”) shall give to the indemnifying party (the “Indemnitor”) written notice (a “Claim Notice”) thereof; provided, however, that failure to provide such notice shall not relieve the Indemnitor of the obligation to indemnify the Indemnitee except to the extent such party had been materially prejudiced by such failure or delay.  If the Indemnitor acknowledges its obligation in writing to indemnify the Indemnitee for the Indemnifiable Claim (which acknowledgment may be made without admission of ultimate liability through a reservation of rights), the Indemnitor will have the right to control the defense of any proceeding relating thereto, unless it is relieved of its obligations to defend hereunder with respect to such defense by the Indemnitee and the Indemnitee has released the Indemnitor from its Liability with respect thereto, in which case, the Indemnitee shall pay its own expense of such defense.  If the Indemnitor controls the defense of such Indemnifiable Claim, the Indemnitee shall cooperate with the Indemnitor in resolving such matter including by providing the availability and cooperation of its employees who are familiar with the transactions out of which such Indemnifiable Claim may have arisen and by providing Indemnitor with necessary and relevant documents relating to the subject matter of such Indemnifiable Claim.  If the Indemnitor fails or refuses to acknowledge its obligation to undertake such defense, settlement or other resolution of such Indemnifiable Claim within thirty (30) days after receipt of the Claim Notice (which may be undertaken without admission of ultimate liability through a reservation of rights), then the Indemnitee may itself defend, settle or otherwise resolve the Indemnifiable Claim, and the Indemnitor shall be responsible for all reasonable costs incurred by the Indemnitee in connection therewith, provided any settlement of such Indemnifiable Claim shall require the consent of the Indemnitor, which shall not be unreasonably withheld, conditioned or delayed.  If the Indemnitor shall assume the defense, settlement or other resolution of any Indemnifiable Claim, it shall not settle the Indemnifiable Claim without the written consent of the Indemnitee, which shall not be unreasonably withheld, conditioned or delayed, unless the settlement shall include as an unconditional term thereof the giving by the claimant or the plaintiff of a release of the Indemnitee, reasonably satisfactory to the Indemnitee, from all Liability with respect to such Indemnifiable Claim and in the case of a Claim related to Taxes, a release from all Liability for similar or related Claims.

 

  

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9.5           Indemnification Exclusive Remedy.  Notwithstanding anything contained herein or in the Transaction Documents, except in the event of any matter for which injunctive or equitable relief is otherwise expressly provided herein, the remedies provided in this Article constitute the sole and exclusive remedies for recovery against an Indemnitor.

 

9.6           Insurance and Other Recoveries; Setoff.  The liability of an Indemnitor with respect to any claim under this Article shall be reduced by any insurance proceeds received by, or any other recovery from a third party received by, the Indemnitee as a result of any Indemnifiable Claim upon which such claim is based.

 

9.7           No Punitive or Consequential Damages.  No Indemnitee shall seek and no Indemnitor shall be liable for any punitive or consequential damages, including, but not limited to loss of revenue or income, or loss of business reputation or opportunity.

 

9.8           Survival.  The provisions of this Article 9 shall survive Closing.

 

  

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ARTICLE X

MISCELLANEOUS

10.1            Notices.  All notices, requests and other communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally against written receipt or by facsimile transmission or mailed by prepaid first class certified mail, return receipt requested, or mailed by overnight courier prepaid, to the parties at the following addresses or facsimile numbers:

(a)           If to Purchaser, to:

CIG Properties, Inc.

Five Concourse Parkway, Suite 3100

Atlanta, GA 30328

Telephone No.: 678-332-5000

Facsimile No.:  678-332-5050

Attn:  Akram Baker, CEO

with a copy to:

Wuersch & Gering LLP

100 Wall Street

New York, New York 10005

Telephone No.: (212) 509-5050

Facsimile No.:  (610) 819-9104

Attn:  Travis L. Gering

(b)           If to the CI Group or Seller to:

BAC Berlin Atlantic Holding GmbH & Co. KG

Five Concourse Parkway, Suite 3100

Atlanta, GA 30328

Telephone No.: 678-332-5000

Facsimile No.:  678-332-5050

with a copy to:

Hartman Simons & Wood LLP

6400 Powers Ferry Road, NW

Suite 400

Atlanta, Georgia 30339

Telephone No.:  678-528-4446

Facsimile No.:  770-951-5357

Attention:  Yvette Fallone-Tietje

 

  

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All such notices, requests and other communications will (i) if delivered personally to the address as provided in this Section, be deemed given upon delivery, (ii) if delivered by facsimile transmission to the facsimile number as provided in this Section, be deemed given upon receipt, (iii) if delivered by mail in the manner described above to the address as provided in this Section, be deemed given on the earlier of the third Business Day following mailing or upon receipt and (iv) if delivered by overnight courier to the address as provided in this Section, be deemed given on the earlier of the first Business Day following the date sent by such overnight courier or upon receipt (in each case regardless of whether such notice, request or other communication is received by any other Person to whom a copy of such notice is to be delivered pursuant to this Section).  Any party from time to time may change its address, facsimile number or other information for the purpose of notices to that party by giving notice specifying such change to the other party hereto.

10.2            Entire Agreement.  This Agreement constitutes the entire agreement between the parties hereto and supersedes all prior discussions and agreements between the parties with respect to the subject matter hereof.

10.3            Fees and Expenses.  Each party will pay its own costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby.

10.4            Public Announcements.  At all times at or before the Closing, Seller and the CI Group, on the one hand, and Purchaser, on the other hand, will not issue or make any statements or releases to the public with respect to this Agreement or the transactions contemplated hereby without the consent of the other.  If either party is unable to obtain the approval of its public statement or release from the other party and such statement or release is, in the opinion of legal counsel to such party, required by Law in order to discharge such party's disclosure obligations, then such party may make or issue the legally required statement or release and promptly furnish the other party with a copy thereof.  Seller, the CI Group and Purchaser will also obtain the other party's prior approval of any press release to be issued immediately following the Closing announcing the consummation of the transactions contemplated by this Agreement.

10.5            Further Assurances.  At any time or from time to time after the Closing, each of the parties hereto shall execute and deliver to the other such other documents and instruments, provide such materials and information and take such other actions as such other party may reasonably request to more effectively to vest title to the Membership Interests in Purchaser and to otherwise cause each of the parties hereto to fulfill their other obligations under this Agreement.

10.6            Waiver.  Any term or condition of this Agreement may be waived at any time by the party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the party waiving such term or condition.  No waiver by any party of any term or condition of this Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion.  All remedies, either under this Agreement or by Law or otherwise afforded, will be cumulative and not alternative.

10.7            Amendment.  This Agreement may be amended, supplemented or modified only by a written instrument duly executed by or on behalf of each party hereto.

 

  

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10.8            Third Party Beneficiaries.  The terms and provisions of this Agreement are intended solely for the benefit of each party hereto and their respective successors and assigns, and it is not the intention of the parties to confer third-party beneficiary rights, and this Agreement does not confer any such rights, upon any other Person other than any Person entitled to indemnity under Article IX.

10.9            No Assignment; Binding Effect.  Neither this Agreement nor any right, interest or obligation hereunder may be assigned (by operation of Law or otherwise) by the parties hereto without the prior written consent of the other parties and any attempt to do so will be void ab initio.  Subject to the preceding sentence, this Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns, including, without limitation, any holder of the Membership Interests.

10.10           Headings; Construction.  The headings used in this Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof.  The parties hereto agree that this Agreement is the product of negotiation between sophisticated parties and individuals, all of whom were represented by counsel, and each of whom had an opportunity to participate in and did participate in, the drafting of each provision hereof.  Accordingly, ambiguities in this Agreement, if any, shall not be construed strictly or in favor of or against any party hereto but rather shall be given a fair and reasonable construction without regard to the rule of contra proferentum.

 

10.11           Invalid Provisions.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future Law, and if the rights or obligations of any party hereto under this Agreement will not be materially and adversely affected thereby, (i) such provision will be fully severable, (ii) this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (iii) the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance here from and (iv) in lieu of such illegal, invalid or unenforceable provision, there will be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible.

10.12           Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any choice of law 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.

 

10.13           Jurisdiction and Venue; Jury Trial Waiver.  Each party acknowledges and agrees that any legal action, proceeding, or litigation arising out of or in any way related to this Agreement shall be instituted in the United States District Court for the Northern District of Georgia or any State of Georgia court having jurisdiction over the subject matter of the dispute or matter.  Each party agrees to submit to the jurisdiction of and agree that the venue is proper in those courts in any legal action, proceeding, or litigation arising out of or in any way related to this Agreement.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HEREBY KNOWINGLY, VOLUNTARILY, AND IRREVOCABLY WAIVES ANY RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY LEGAL ACTION, PROCEEDING, OR LITIGATION ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT.

 

  

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10.14          Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. This Agreement may be executed and delivered by facsimile or electronic (pdf) signatures, each of which shall be deemed to be an original.

10.15          Business Day Convention.  Should any time period provided in this Agreement expire on a Saturday, Sunday or legal holiday, such time period shall automatically be extended to the next date that is not a Saturday, Sunday or legal holiday.

[Signature Page to Follow]

 

  

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IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officer of each party hereto as of the date first above written.

 

	 	COMMUNICATIONS INFRASTRUCTURE GROUP, LLC	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By: 	
/s/ Melissa Spinella

	 	 	 	 
	 	 	
Name:  Melissa Spinella

	 	 	 	 
	 	 	
Title:    Vice President

	 	 	 	 

 

 

	 	BAC Berlin Atlantic Holding GMBH & CO. KG	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By: 	BAC Verwaltung GmbH, its General Partner	 	 	 	 
	 	 	 	 	 	 	 
	 	By: 	
/s/ Stefan Beiten

	 	 	 	 
	 	 	
Name:  Stefan Beiten

	 	 	 	 
	 	 	

Title:    Managing Director

	 	 	 	 

 

 

	 	CIG PROPERTIES, INC.	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By: 	
/s/ Akram Baker

	 	 	 	 
	 	 	
Name:  Akram Baker

	 	 	 	 
	 	 	
Title:    Chief Executive Officer

	 	 	 	 

 

	 	PARENT COMPANY: CIG WIRELESS CORP.	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By: 	
/s/ Akram Baker

	 	 	 	 
	 	 	

Name:  Akram Baker

	 	 	 	 
	 	 	

Title:    Chief Executive Officer

	 	 	 	 

  

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Exhibit A                      Common Stock Purchase Agreement

 

  

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