Document:

Ex.
10.7

 

FORM
OF SUBSIDIARY GUARANTY

 

This
SUBSIDIARY GUARANTY (as amended, restated, supplemented, or otherwise modified and in effect from time to time, this “Guaranty”)
is made as of this 18th day of November, 2016, jointly and severally, between OncBioMune Pharmaceuticals, Inc., a Nevada corporation
(“OBMP”) and OncBioMune, Inc., a Louisiana corporation (the “Subsidiary”; collectively, OBMP and the Subsidiary
are referred to as the “Companies”), and with each other person or entity who becomes a party to this Guaranty by
execution of a joinder in the form of Exhibit A attached hereto, each referred to individually as a “Guarantor”
and collectively as the “Guarantors”); in favor of the Purchasers listed on the signature page of that certain Securities
Purchase Agreement, dated as of November 18, 2016 (each, a “Purchaser”, and together with its successors and assigns
and each other purchaser of a Note (as defined below) and their respective successors and assigns, individually and collectively,
the “Purchasers”), and Cavalry Fund I LP, a Delaware limited partnership, as agent for the Purchasers (the “Agent”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Purchasers have made, and may make, loans and certain other financial accommodations (collectively, the “Loans”)
to OBMP as evidenced by those certain senior convertible notes dated as of November 18, 2016 (the “Closing Date”)
in an original aggregate principal amount of $300,000 (such notes, together with any promissory notes or other securities issued
in exchange or substitution therefor or replacement thereof, and as any of the same may be amended, supplemented, restated or
modified and in effect from time to time, the “Notes”);

 

WHEREAS,
the Notes are being acquired by the Purchasers pursuant to a Securities Purchase Agreement dated as of the date hereof among the
Purchasers and OBMP (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Purchase
Agreement”);

 

WHEREAS,
pursuant to a Pledge Agreement dated as of the Closing Date by OBMP in favor of the Agent, OBMP has pledged a lien on and security
interest in all of the issued and outstanding equity interests of the Subsidiaries owned by OBMP;

 

WHEREAS,
pursuant to a Security Agreement dated as of the Closing Date (as the same may be amended, restated, supplemented or otherwise
modified and in effect from time to time, the “Security Agreement”) by the “Debtors” (as defined therein)
in favor of the Agent as Collateral Agent, such Debtors have granted the Agent, for its benefit and the benefit of the Purchasers,
a first priority security interest in, lien upon and pledge of each of their rights in the Collateral (as defined in the Security
Agreement); and

 

WHEREAS,
the Guarantors are direct or indirect subsidiaries of OBMP and, as such, will derive substantial benefit and advantage from the
Loans and other financial accommodations available to OBMP set forth in the Purchase Agreement, the Notes and the other related
agreements (together, the “Transaction Documents”), and it will be to each Guarantor’s direct interest and economic
benefit to assist OBMP in procuring said Loans and other financial accommodations from the Purchasers.

 

NOW,
THEREFORE, for and in consideration of the premises and in order to induce Purchasers to make the Loans, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Guarantor hereby jointly and severally
agrees as follows:

 

1. Definitions: Capitalized
terms used herein without definition and defined in the Purchase Agreement are used herein as defined therein. In addition, as
used herein:

 

“Bankruptcy
Code” shall mean the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.), as amended and in effect
from time to time thereunder.

 

“Obligations”
shall mean (i) all obligations, liabilities and indebtedness of every nature of each Company from time to time owed or owing to
the Purchasers and Agent arising under, out of or in connection with the Purchase Agreement, the Notes, the Loans and the other
Transaction Documents, including, without limitation, the principal amount of all debts, claims and indebtedness, accrued and
unpaid interest and all fees, taxes, indemnities, costs and expenses, whether primary, secondary, direct, contingent, fixed or
otherwise, heretofore, now and/or from time to time hereafter owing, due or payable, whether before or after the filing of a bankruptcy,
insolvency or similar proceeding under applicable federal, state, foreign or other law and whether or not an allowed claim in
any such proceeding, and (ii) all obligations, liabilities and indebtedness of every nature of any subsequent Guarantor from time
to time owed or owing to the Purchasers and/or Agent, under or in respect of this Guaranty, the Pledge Agreement, the Security
Agreement, the Purchase Agreement, the Notes, the Loans and the other Transaction Documents, as the case may be, including, without
limitation, the principal amount of all debts, claims and indebtedness, accrued and unpaid interest and all fees, taxes, indemnities,
costs and expenses, whether primary, secondary, direct, contingent, fixed or otherwise, heretofore, now and/or from time to time
hereafter owing, due or payable, whether before or after the filing of a bankruptcy, insolvency or similar proceeding under applicable
federal, state, foreign or other law and whether or not an allowed claim in any such proceeding.

 

    	 	 	 

    	 	 	 

    

 

 2. Guaranty of Payment

 

(a)
Each Guarantor, jointly and severally, hereby unconditionally and irrevocably guarantees the full and prompt payment and
performance to Purchasers and Agent, on behalf of itself and in its capacity as agent for the benefit of Purchasers, when
due, upon demand, at maturity or by reason of acceleration or otherwise and at all times thereafter, of any and all of the
Obligations.

 

(b)
Each Guarantor acknowledges that valuable consideration supports this Guaranty, including, without limitation, the
consideration set forth in the recitals above, as well as any commitment to lend, extension of credit or other financial
accommodation, whether heretofore or hereafter made by Purchasers to any Company; any extension, renewal or replacement of
any of the Obligations; any forbearance with respect to any of the Obligations or otherwise; any cancellation of an existing
guaranty; any purchase of any Company’s assets by any Purchaser or Agent; or any other valuable
consideration.

 

(c)
Each Guarantor agrees that all payments under this Guaranty shall be made in United States currency and in the same manner as
provided for the Obligations.

 

(d)
Notwithstanding any provision of this Guaranty to the contrary, it is intended that this Guaranty, and any interests, liens
and security interests granted by Guarantors as security for this Guaranty, not constitute a “Fraudulent
Conveyance” (as defined below) in the event that this Guaranty or such interest is subject to the Bankruptcy Code or
any applicable fraudulent conveyance or fraudulent transfer law or similar law of any state. Consequently, Guarantors, Agent
and Purchasers agree that if this Guaranty, or any such interests, liens or security interests securing this Guaranty, would,
but for the application of this sentence, constitute a Fraudulent Conveyance, this Guaranty and each such lien and security
interest shall be valid and enforceable only to the maximum extent that would not cause this Guaranty or such interest, lien
or security interest to constitute a Fraudulent Conveyance, and this Guaranty shall automatically be deemed to have been
amended accordingly at all relevant times. For purposes hereof, “Fraudulent Conveyance” means a fraudulent
conveyance under Section 548 of the Bankruptcy Code or a fraudulent conveyance or fraudulent transfer under the provisions of
any applicable fraudulent conveyance or fraudulent transfer law or similar law of any state, as in effect from time to
time.

 

3. Costs
and Expenses. Each Guarantor, jointly and severally, agrees to pay on demand, all reasonable costs and expenses of every
kind incurred by any Purchaser or Agent: (a) in enforcing this Guaranty, (b) in collecting any of the Obligations from any Company
or any Guarantor, (c) in realizing upon or protecting or preserving any collateral for this Guaranty or for payment of any of
the Obligations, and (d) in connection with any amendment of, modification to, waiver or forbearance granted under, or enforcement
or administration of any Transaction Document or for any other purpose in connection with any Transaction Document, in each case,
to the extent Purchaser or Agent may take such action pursuant to the terms and conditions of this Agreement. “Costs and
expenses” as used in the preceding sentence shall include, without limitation, reasonable attorneys’ fees incurred
by any Purchaser or Agent in retaining legal counsel for advice, suit, appeal, any insolvency or other proceedings under the Bankruptcy
Code or otherwise, or for any purpose specified in the preceding.

 

4. Nature
of Guaranty: Continuing, Absolute and Unconditional.

 

(a) This
Guaranty is and is intended to be a continuing guaranty of payment of the Obligations, and not of collectability, and is intended
to be independent of and in addition to any other guaranty, endorsement, collateral or other agreement held by Purchasers or Agent
therefor or with respect thereto, whether or not furnished by a Guarantor. None of Purchasers and Agent shall be required to prosecute
collection, enforcement or other remedies against any Company, any other Guarantor or guarantor of the Obligations or any other
person or entity, or to enforce or resort to any of the Collateral or other rights or remedies pertaining thereto, before calling
on a Guarantor for payment. The obligations of each Guarantor to repay the Obligations hereunder shall be unconditional. Guarantor
shall have no right to exercise any right of subrogation, reimbursement, indemnity, exoneration, contribution or any other claim
which it may now or hereafter have against any Company in connection with this Guaranty until the termination of this Guaranty
in accordance with Section 8 below, and hereby waives any benefit of, and any right to participate in, any security or collateral
given to Purchasers to secure payment of the Obligations, and each Guarantor agrees that it will not take any action to enforce
any obligations of any Company to such Guarantor prior to the Obligations being finally and irrevocably paid in full in cash,
provided that, in the event of the bankruptcy or insolvency of any Company, to the extent the Obligations have not been
finally and irrevocably paid in full in cash, Agent, for the benefit of itself and Purchasers, and Purchasers shall be entitled
notwithstanding the foregoing, to file in the name of any Guarantor or in its own name a claim for any and all indebtedness owing
to a Guarantor by such Company (exclusive of this Guaranty), vote such claim and to apply the proceeds of any such claim to the
Obligations.

 

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(b) For
the further security of Purchasers and without in any way diminishing the liability of the Guarantors, following the occurrence
and during the continuance of an Event of Default, all debts and liabilities, present or future, of the Companies to the Guarantors,
and all monies received from any Company or for its account by the Guarantors in respect thereof shall be received in trust for
Purchasers and Agent and promptly following receipt shall be paid over to Agent, for its benefit and in its capacity as Agent
for the benefit of Purchasers, until all of the Obligations have been paid in full in cash. This assignment and postponement is
independent of and severable from this Guaranty and shall remain in full effect whether or not any Guarantor is liable for any
amount under this Guaranty.

 

(c) This
Guaranty is absolute and unconditional and shall not be changed or affected by any representation, oral agreement, act or thing
whatsoever, except as herein provided. This Guaranty is intended by the Guarantors to be the final, complete and exclusive expression
of the guaranty agreement among the Companies (as limited by the express terms of this Guaranty), the Guarantors, the Agent and
Purchasers. No modification or amendment of any provision of this Guaranty shall be effective against any party hereto unless
in writing and signed by a duly authorized officer of such party. This Guaranty, together with the other Transaction Documents,
supersedes all other prior oral or written agreements between each Purchaser, the Guarantors, the Agent, their Affiliates and
Persons acting on their behalf with respect to the matters discussed herein, and this Guaranty, together with the other Transaction
Documents and the other instruments referenced herein and therein, contain the entire understanding of the parties with respect
to the matters covered herein and therein and, except as specifically set forth herein or therein, neither any Guarantor, the
Agent nor any Purchaser makes any representation, warranty, covenant or undertaking with respect to such matters. As of the date
of this Guaranty, there are no unwritten agreement between the parties with respect to the matters discussed herein. No provision
of this Guaranty may be amended, modified or supplemented other than by an instrument in writing signed by the parties hereto.

 

(d) Each
Guarantor hereby releases each Company from all, and agrees not to assert or enforce (whether by or in a legal or equitable proceeding
or otherwise) any, “claims” (as defined in Section 101(5) of the Bankruptcy Code), whether arising under any law,
ordinance, rule, regulation, order, policy or other requirement of any domestic or foreign Governmental Authority or any instrumentality
or agency thereof, having jurisdiction over the conduct of its business or assets or otherwise, to which the Guarantors are or
would at any time be entitled by virtue of its obligations hereunder, any payment made pursuant hereto or the exercise by any
Purchaser or Agent of its rights with respect to the Collateral, including any such claims to which such Guarantors may be entitled
as a result of any right of subrogation, exoneration or reimbursement.

 

5. Certain
Rights and Obligations.

 

(a) Each
Guarantor acknowledges and agrees that Purchasers and Agent, for its benefit and as agent for the benefit of Purchasers, may,
without notice, demand or any reservation of rights against such Guarantor and without affecting such Guarantor’s obligations
hereunder, from time to time:

 

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(i) renew,
extend, increase, accelerate or otherwise change the time for payment of, the terms of or the interest on the Obligations or any
part thereof or grant other indulgences to any Company or others;

 

(ii) accept
from any person or entity and hold collateral for the payment of the Obligations or any part thereof, and modify, exchange, enforce
or refrain from enforcing, or release, compromise, settle, waive, subordinate or surrender, with or without consideration, such
collateral or any part thereof;

 

(iii) accept
and hold any endorsement or guaranty of payment of the Obligations or any part thereof, and discharge, release or substitute any
such obligation of any such endorser or guarantor, or discharge, release or compromise any Guarantor, or any other person or entity
who has given any security interest in any collateral as security for the payment of the Obligations or any part thereof, or any
other person or entity in any way obligated to pay the Obligations or any part thereof, and enforce or refrain from enforcing,
or compromise or modify, the terms of any obligation of any such endorser, guarantor, or person or entity;

 

(iv) dispose
of any and all collateral securing the Obligations in its reasonable discretion, as it may deem appropriate, and direct the order
or manner of such disposition and the enforcement of any and all endorsements and guaranties relating to the Obligations or any
part thereof as Agent in its reasonable discretion may determine;

 

(v) subject
to the terms of the Notes, determine the manner, amount and time of application of payments and credits, if any, to be made on
all or any part of any component or components of the Obligations (whether principal, interest, fees, costs, and expenses, or
otherwise), including, without limitation, the application of payments received from any source to the payment of indebtedness
other than the Obligations even though Purchasers might lawfully have elected to apply such payments to the Obligations or to
amounts which are not covered by this Guaranty; and

 

(vi) take
advantage or refrain from taking advantage of any security or accept or make or refrain from accepting or making any compositions
or arrangements when and in such manner as Agent, in its sole discretion, may deem appropriate;

 

and
generally do or refrain from doing any act or thing which might otherwise, at law or in equity, release the liability of such
Guarantor as a guarantor or surety in whole or in part, and in no case shall Purchasers or Agent be responsible or shall any Guarantor
be released either in whole or in part for any act or omission in connection with Purchasers or Agent having sold any security
at less than its value.

 

(b) Following
the occurrence and during the continuance of an Event of Default, and upon demand by Agent, each Guarantor, jointly and severally,
hereby agrees to pay the Obligations to the extent hereinafter provided and to the extent unpaid:

 

(i) without
deduction by reason of any setoff, defense (other than payment) or counterclaim of any Company or any other Guarantor;

 

(ii) without
requiring presentment, protest or notice of nonpayment or notice of default to any Guarantor, to any Company or to any other person
or entity;

 

(iii) without
demand for payment or proof of such demand or filing of claims with a court in the event of receivership, bankruptcy or reorganization
of any Company or any other Guarantor;

 

(iv) without
requiring Purchasers or Agent to resort first to any Company (this being a guaranty of payment and not of collection), to any
other Guarantor, or to any other guaranty or any collateral which Purchasers or Agent may hold;

 

(v) without
requiring notice of acceptance hereof or assent hereto by any Purchaser or Agent; and

 

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(vi) without
requiring notice that any of the Obligations has been incurred, extended or continued or of the reliance by any Purchaser or Agent
upon this Guaranty;

 

all
of which each Guarantor hereby waives.

 

(c) Each
Guarantor’s obligation hereunder shall not be affected by any of the following, all of which such Guarantor hereby waives:

 

(i) any
failure to perfect or continue the perfection of any security interest in or other lien on any collateral securing payment of
any of the Obligations or any Guarantor’s obligation hereunder;

 

(ii) the
invalidity, unenforceability, propriety of manner of enforcement of, or loss or change in priority of any document or any such
security interest or other lien or guaranty of the Obligations;

 

(iii) any
failure to protect, preserve or insure any such collateral;

 

(iv) failure
of a Guarantor to receive notice of any intended disposition of such collateral;

 

(v) any
defense arising by reason of the cessation from any cause whatsoever of liability of any Company including, without limitation,
any failure, negligence or omission by any Purchaser or Agent in enforcing its claims against any Company;

 

(vi) any
release, settlement or compromise of any obligation of any Company, any other Guarantor or any other guarantor of the Obligations;

 

(vii) the
invalidity or unenforceability of any of the Obligations;

 

(viii) any
change of ownership of any Company, any other Guarantor or any other guarantor of the Obligations or the insolvency, bankruptcy
or any other change in the legal status of any Company, any other Guarantor or any other guarantor of the Obligations;

 

(ix) any
change in, or the imposition of, any law, decree, regulation or other governmental act which does or might impair, delay or in
any way affect the validity, enforceability or the payment when due of the Obligations;

 

(x) the
existence of any claim, setoff or other rights which the Guarantor, any Company, any other Guarantor or guarantor of the Obligations
or any other person or entity may have at any time against any Purchaser, Agent or any Company in connection herewith or any unrelated
transaction;

 

(xi) any
Purchaser’s or Agent’s election in any case instituted under chapter 11 of the Bankruptcy Code, of the application
of section 1111(b)(2) of the Bankruptcy Code;

 

(xii) any
use of cash collateral, or grant of a security interest by any Company, as debtor in possession, under sections 363 or 364 of
the Bankruptcy Code;

 

(xiii) the
disallowance of all or any portion of any of any Purchaser’s or Agent’s claims for repayment of the Obligations under
sections 502 or 506 of the Bankruptcy Code;

 

(xiv) any
stay or extension of time for payment by any Company or any other Guarantor resulting from any proceeding under the Bankruptcy
Code or any similar law; or

 

(xv) any
other fact or circumstance which might otherwise constitute grounds at law or equity for the discharge or release of a Guarantor
from its obligations hereunder, all whether or not such Guarantor shall have had notice or knowledge of any act or omission referred
to in the foregoing clauses (i) through (xiv) of this Section 5(c).

 

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6. Representations
and Warranties. Each Guarantor further represents and warrants to Purchasers and Agent that: (a) such Guarantor is a corporation
or other entity duly incorporated or organized, as applicable, validly existing and in good standing under the laws of the jurisdiction
of its incorporation or formation, as applicable, and has full power, authority and legal right to own its property and assets
and to transact the business in which it is presently engaged; (b) such Guarantor has full power, authority and legal right to
execute and deliver, and to perform its obligations under, this Guaranty, and has taken all necessary action to authorize the
guarantee hereunder on the terms and conditions of this Guaranty and to authorize the execution, delivery and performance of this
Guaranty; (c) this Guaranty has been duly executed and delivered by such Guarantor and constitutes a legal, valid and binding
obligation of such Guarantor enforceable against such Guarantor in accordance with its terms, except to the extent that such enforceability
is subject to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance and moratorium laws and other laws of general
application affecting enforcement of creditors’ rights generally, or the availability of equitable remedies, which are subject
to the discretion of the court before which an action may be brought; and (d) the execution, delivery and performance by each
Guarantor of this Guaranty do not require any action by or in respect of, or filing with, any governmental body, agency or official
and do not violate, conflict with or cause a breach or a default under any provision of (i) applicable law or regulation, (ii)
the organizational documents of any Guarantor, (iii) any judgment, injunction, order, decree or other instrument binding upon
it, or (iv) any agreement binding upon it.

 

7. Negative
Covenants. Each Guarantor covenants with Purchasers and Agent that such Guarantor shall not grant any security interest
in or permit any lien, claim or encumbrance upon any of its assets in favor of any person or entity other than liens and security
interests in favor of Purchasers and Agent and Permitted Encumbrances. Each Guarantor agrees that it shall not take any action
or engage in any transaction that such Guarantor is prohibited from taking or engaging in pursuant to the terms of the Purchase
Agreement. In addition, each Guarantor agrees to comply with the terms of the Purchase Agreement to the same extent that the Company
is required to cause the Guarantors to comply with such terms of the Purchase Agreement. Each Company, by its signature hereto,
hereby acknowledges and agrees that any breach by a Guarantor of any term or provision of this Guaranty or the Security Agreement,
which is not cured to the Agent’s reasonable satisfaction within any applicable cure or grace period, shall constitute an
“Event of Default” under the Note.

 

8. Termination. This
Guaranty shall not terminate until such time, if any, as (i) all Obligations shall be finally and irrevocably paid in full in
cash, (ii) no Notes shall remain outstanding, (iii) all commitments to lend under the Purchase Agreement shall have terminated
and (iv) there shall exist no other outstanding payment or reimbursement obligations (other than contingent indemnification obligations
for which no claims shall have been asserted) of the Borrower or the Guarantors to the Agent under any of the Transaction Documents.
Thereafter, but subject to the following, Agent, on its behalf and as agent for Purchasers, shall take such action and execute
such documents as the Guarantors may request (and at the Guarantors’ cost and expense) in order to evidence the termination
of this Guaranty. Payment of all of the Obligations owing from time to time shall not operate as a discontinuance of this Guaranty.
Each Guarantor further agrees that, to the extent that any Company makes a payment or payments to Purchasers or Agent on the Obligations,
or Purchasers or Agent receive any proceeds of collateral securing the Obligations or any other payments with respect to the Obligations,
which payment or receipt of proceeds or any part thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required to be returned or repaid to any Company, its estate, trustee, receiver, debtor in possession or any other
person or entity, including, without limitation, the Guarantors, under any insolvency or bankruptcy law, state or federal law,
common law or equitable cause, then to the extent of such payment, return or repayment, the obligation or part thereof which has
been paid, reduced or satisfied by such amount shall be reinstated and continued in full force and effect as of the date when
such initial payment, reduction or satisfaction occurred, and this Guaranty shall continue in full force notwithstanding any contrary
action which may have been taken by any Purchaser or Agent in reliance upon such payment, and any such contrary action so taken
shall be without prejudice to any Purchaser’s or Agent’s rights under this Guaranty and shall be deemed to have been
conditioned upon such payment having become final and irrevocable.

 

9. Guaranty
of Performance. Each Guarantor also guarantees the full, prompt and unconditional performance of all obligations and agreements
of every kind owed or hereafter to be owed by the Companies and the Guarantors to Purchasers and Agent under the Purchase Agreement,
the Notes, and the other Transaction Documents. Every provision for the benefit of Purchasers and Agent contained in this Guaranty
shall apply to the guaranty of performance given in this paragraph.

 

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10. Assumption
of Liens and Obligations. To the extent that a Guarantor has received or shall hereafter receive distributions or transfers
from any Company of property or cash that are subject, at the time of such contribution, to liens and security interests in favor
of Purchasers and/or the Agent in accordance with the Notes, the Security Agreement or any other Transaction Document, such Guarantor
hereby expressly agrees that (i) it shall hold such assets subject to such liens and security interests, and (ii) it shall be
liable for the payment of the Obligations secured thereby. Each Guarantor’s obligations under this Section 10 shall be in
addition to its obligations as set forth in other sections of this Guaranty and not in substitution therefor or in lieu thereof.

 

11. Miscellaneous.

 

(a) The
terms “Company” and “Guarantor” as used in this Guaranty shall include: (i) any successor individual or
individuals, association, partnership, limited liability company or corporation to which all or substantially all of the business
or assets of such Company or such Guarantor shall have been transferred and (ii) any other association, partnership, limited liability
company, corporation or entity into or with which such Company or such Guarantor shall have been merged, consolidated, reorganized,
or absorbed.

 

(b) Without
limiting any other right of any Purchaser or Agent, whenever any Purchaser or Agent has the right to declare any of the Obligations
to be immediately due and payable (whether or not it has been so declared), Agent, on its behalf and in its capacity as agent
for the benefit of Purchasers, at its sole election without notice to the undersigned may appropriate and set off against the
Obligations:

 

(i) any
and all indebtedness or other moneys due or to become due to any Guarantor by any Purchaser or Agent in any capacity; and

 

(ii) any
credits or other property belonging to any Guarantor (including all account balances, whether provisional or final and whether
or not collected or available) at any time held by or coming into the possession of any Purchaser or Agent, or any affiliate of
any Purchaser or Agent, whether for deposit or otherwise;

 

whether
or not the Obligations or the obligation to pay such moneys owed by any Purchaser or Agent is then due, and the applicable Purchaser
or Agent shall be deemed to have exercised such right of set off immediately at the time of such election even though any charge
therefor is made or entered on such Purchaser’s or Agent’s records subsequent thereto. Agent agrees to notify such
Guarantor in a reasonably practicable time of any such set-off; however, failure to so notify such Guarantor shall not affect
the validity of any set-off.

 

(c) Each
Guarantor’s obligation hereunder is to pay the Obligations in full in cash when due according to the Notes, the other Transaction
Documents, this Guaranty and the other agreements, documents and instruments governing the Obligations to the extent provided
herein, and shall not be affected by any stay or extension of time for payment by any Company or any other Guarantor resulting
from any proceeding under the Bankruptcy Code or any similar law.

 

(d) No
course of dealing between any Company or any Guarantor and Purchasers or Agent and no act, delay or omission by Purchasers or
Agent in exercising any right or remedy hereunder or with respect to any of the Obligations shall operate as a waiver thereof
or of any other right or remedy, and no single or partial exercise thereof shall preclude any other or further exercise thereof
or the exercise of any other right or remedy. Any Purchaser or Agent may remedy any default by any Company under any agreement
with any Company or with respect to any of the Obligations in any reasonable manner without waiving the default remedied and without
waiving any other prior or subsequent default by any Company. All rights and remedies of Purchasers and Agent hereunder are cumulative.

 

(e) This
Guaranty shall inure to the benefit of the parties hereto and their respective successors and assigns.

 

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(f) Agent
may assign its rights hereunder without the consent of Guarantors, in which event such assignee shall be deemed to be Agent hereunder
with respect to such assigned rights.

 

(g) Captions
of the sections of this Guaranty are solely for the convenience of the parties hereto, and are not an aid in the interpretation
of this Guaranty and do not constitute part of the agreement of the parties set forth herein.

 

(h) If
any provision of this Guaranty is unenforceable in whole or in part for any reason, the remaining provisions shall continue to
be effective.

 

(i) All
questions concerning the construction, validity, enforcement and interpretation of this Guaranty shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State
of New York. Each Guarantor hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in
the City of New York, borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each Guarantor hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing by registered
or certified mail a copy thereof to such party at the address for such notices to it under this Guaranty and agrees that such
service shall constitute good and sufficient service of process and notice thereof as of the date that is five (5) business days
after the mailing thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law.

 

12. Notices.
All notices, approvals, requests, demands and other communications hereunder shall be delivered or made in the manner set forth
in, and shall be effective in accordance with the terms of, the Purchase Agreement or, in the case of communications to the Agent,
directed to the notice address set forth in the Security Agreement; provided, that any communication shall be effective as to
any Guarantor if made or sent to OBMP in accordance with the foregoing.

 

13. WAIVERS.

 

(a) EACH
GUARANTOR WAIVES THE BENEFIT OF ALL VALUATION, APPRAISAL AND EXEMPTION LAWS.

 

(b) UPON
THE OCCURRENCE OF A DEFAULT OR EVENT OF DEFAULT, EACH GUARANTOR HEREBY WAIVES ALL RIGHTS TO NOTICE AND HEARING OF ANY KIND PRIOR
TO THE EXERCISE BY ANY PURCHASER OR AGENT, ON ITS BEHALF AND IN ITS CAPACITY AS AGENT FOR THE BENEFIT OF PURCHASERS, OF ITS RIGHTS
TO REPOSSESS THE COLLATERAL WITHOUT JUDICIAL PROCESS OR TO REPLEVY, ATTACH OR LEVY UPON THE COLLATERAL WITHOUT PRIOR NOTICE OR
HEARING. EACH GUARANTOR ACKNOWLEDGES THAT IT HAS BEEN ADVISED BY COUNSEL OF ITS CHOICE WITH RESPECT TO THIS TRANSACTION AND THIS
GUARANTY.

 

(c) EACH
GUARANTOR WAIVES ITS RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS
GUARANTY, OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY PURCHASER
OR AGENT. EACH GUARANTOR AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT
LIMITING THE FOREGOING, EACH GUARANTOR FURTHER AGREES THAT ITS RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION
AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY
OF THIS GUARANTY OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
TO THIS GUARANTY.

 

    	 	 8	 

    	 	 	 

    

 

14. Agent. The
terms and provisions of Section 5.11 of the Security Agreement which set forth the appointment of the Agent and the indemnifications
to which the Agent is entitled are hereby incorporated by reference herein as if fully set forth therein.

 

15. Payments
Free of Taxes.

 

(a) Definitions.
In this Section 15:

 

(i) “Excluded
Taxes” means, with respect to the Agent or the Purchasers, or any other recipient of any payment to be made by or on account
of any obligations of any Guarantor under this Guaranty, or under any other Security Document, income or franchise taxes imposed
on (or measured by) its net income by the United States of America or such other jurisdiction under the laws of which such recipient
is organized or in which its principal office is located.

 

(ii) “Governmental
Authority” means the government of the United States of America or any other nation, or any political subdivision thereof,
whether state or local, or any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government over
any of the Companies, or any of their respective properties, assets or undertakings.

 

(iii) “Indemnified
Taxes” means Taxes other than Excluded Taxes.

 

(iv) “Taxes”
means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental
Authority.

 

(b) Any
and all payments by or on account of the Obligations of any of the Guarantors under this Guaranty or any other Transaction Document
shall be made without any set-off, counterclaim or deduction and free and clear of and without deduction for any Indemnified Taxes;
provided that if any Guarantor shall be required to deduct any Indemnified Taxes from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums
payable under this Section 15(b)), the Agent or Purchasers, as applicable, receives an amount equal to the sum it would have received
had no such deductions been made, (ii) such Guarantor shall make such deductions and (iii) such Guarantor shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law.

 

16. Indemnification
by the Guarantors. Each Guarantor shall indemnify the Agent and the Purchasers, within ten (10) days after written demand
therefor, for the full amount of any Indemnified Taxes paid by the Agent or Purchasers, as applicable, on or with respect to any
payment by or on account of any obligation of such Guarantor under this Guaranty and the other Transaction Documents (including
Indemnified Taxes or imposed or asserted on or attributable to amounts payable under this Section 16) and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate of the Agent or any Purchaser as to the amount of such
payment or liability under this Section 16 shall be delivered to such Guarantor and shall be conclusive absent manifest error.

 

17. Counterparts;
Headings. This Guaranty may be executed in two or more identical counterparts, all of which together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other
party; provided that a facsimile, .pdf or similar electronically transmitted signature shall be considered due execution and shall
be binding upon the signatory thereto with the same force and effect as if the signature were an original signature. The headings
in this Guaranty are for convenience of reference only and shall not alter or otherwise affect the meaning hereof.

 

    	 	 9	 

    	 	 	 

    

 

18. Rights
of Contribution. The Guarantors hereby agree as among themselves that, if any Guarantor shall make an Excess Payment (as
defined below), such Guarantor shall have a right of contribution from each other Guarantor in an amount equal to such other Guarantor’s
Contribution Share (as defined below) of such Excess Payment. The payment obligations of any Guarantor under this Section 18 shall
be subordinate and subject in right of payment to the Obligations until such time as the Obligations have been paid in full in
cash and all commitments to lend under the Purchase Agreement have expired or terminated, and none of the Guarantors shall exercise
any right or remedy under this Section 18 against any other Guarantor until such Obligations have been paid in full in cash and
all commitments to lend under the Purchase Agreement have expired or terminated. For purposes of this Section 18, (a) “Excess
Payment” shall mean the amount paid by any Guarantor in excess of its Ratable Share of any Obligations; (b) “Ratable
Share” shall mean, for any Guarantor in respect of any payment of Obligations, the ratio (expressed as a percentage) as
of the date of such payment of Obligations of (i) the amount by which the aggregate present fair salable value of all of its assets
and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated, unmatured,
and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount by which the aggregate
present fair salable value of all assets and other properties of the Companies and the Guarantors exceeds the amount of all of
the debts and liabilities (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations
of the Guarantors hereunder) of the Companies and the Guarantors, provided, however, that, for purposes of calculating the Ratable
Shares of the Guarantors in respect of any payment of Obligations, any Guarantor that became a Guarantor subsequent to the date
of any such payment shall be deemed to have been a Guarantor on the date of such payment and the financial information for such
Guarantor as of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such payment;
and (c) “Contribution Share” shall mean, for any Guarantor in respect of any Excess Payment made by any other Guarantor,
the ratio (expressed as a percentage) as of the date of such Excess Payment of (i) the amount by which the aggregate present fair
salable value of all of its assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including
contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the Obligations) of the Companies and the Guarantors
other than the maker of such Excess Payment; provided, however, that, for purposes of calculating the Contribution Shares of the
Guarantors in respect of any Excess Payment, any Guarantor that became a Guarantor subsequent to the date of any such Excess Payment
shall be deemed to have been a Guarantor on the date of such Excess Payment and the financial information for such Guarantor as
of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such Excess Payment. This
Section 18 shall not be deemed to affect any right of subrogation, indemnity, reimbursement or contribution that any Guarantor
may have under law against any Company in respect of any payment of Obligations.

 

[signature
page follows]

 

    	 	 10	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, each Company and the Guarantors have executed this Guaranty as of the date first written above.

 

	Oncbiomune
    pharmaceuticals, INC., 

    a Nevada corporation  	 
	 	 	 
	By:	 	 
	Name:	Jonathan
    F. Head	 
	Title:	Chief
    Executive Officer	 
	 	 	 
	Oncbiomune,
INC., 

a Louisiana corporation 	 
	 	 	 
	By:	 	 
	Name:	Jonathan
    F. Head	 
	Title:	President	 

 

    	 	 	 

    	 	 	 

    

 

EXHIBIT
A

Form
of Joinder

Joinder
to Guaranty

 

This
Joinder Agreement is made between the undersigned, [__________] a [__________], (the “New Subsidiary”) and Cavalry
Fund I LP, a Delaware limited partnership, as agent under that certain Subsidiary Guaranty dated as of November 18, 2016 by and
between OncBioMune Pharmaceuticals, Inc., a Nevada corporation, and OncBioMune, Inc., a Louisiana corporation; together with each
other person or entity that becomes a Guarantor thereunder after the date and pursuant to the terms thereof, to and in favor of
the Purchasers (as amended, restated, supplemented or otherwise modified from time to time, the “Guaranty”). Capitalized
terms herein and not otherwise defined herein shall have the meanings assigned to such terms in the Guaranty.

 

1. The
New Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this Agreement, the New Subsidiary will be deemed
to be a party to the Guaranty and a “Guarantor” for all purposes of the Guaranty, and shall have all of the obligations
of a Guarantor thereunder as if it had executed the Guaranty. The New Subsidiary hereby ratifies, as of the date hereof, and agrees
to be bound by, all of the terms, provisions and conditions applicable to the Guarantors contained in the Guaranty. Without limiting
the generality of the foregoing terms of this paragraph 1, the New Subsidiary hereby jointly and severally together with the other
Guarantors, guarantees to Purchasers and Agent, as provided in the Guaranty, the prompt payment and performance of the obligations
in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise) strictly in accordance
with the terms thereof.

 

2. The
New Subsidiary represents and warrants that the representations and warranties set forth in Section 6 of the Guaranty are, with
respect to the undersigned, true and correct as of the date hereof.

 

3. From
and after the date hereof, each reference to a Guarantor in the Guaranty shall be deemed to include the undersigned.

 

4. This
Agreement may be executed in multiple counterparts, each of which shall constitute an original but all of which when taken together
shall constitute one contract.

 

5. THIS
AGREEMENT SHALL BE SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW
OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION
OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

[Signature
page follows]

 

IN
WITNESS WHEREOF, the undersigned has executed this Joinder this ___ day of _________, 2016.

 

    	 	 2Exhibit 10.1

 

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Closing Document No. 01

 

MASTER EQUIPMENT LEASE

 

Lease Date: June 30, 2014

 

Lessee: Plug Power Inc., a corporation organized and registered under the laws of the State of Delaware.

Organizational Identification Number: 3083208

 

Chief executive office/residence: 968 Albany Shaker Road, Latham, NY 12110

 

Lessor:  Manufacturers and Traders Trust Company, a New York corporation having its chief executive office at One M&T Plaza, Buffalo, New York 14203, Attn: Legal Department.

 

1.      Lease.  Subject to the terms hereof, Lessor shall lease to Lessee, and Lessee shall lease from Lessor, the units of personal property described on each Equipment Schedule (each an “Equipment Schedule” or “Schedule”) now or hereafter attached hereto, together with all substitutions, replacements, repairs, upgrades, additions, accessories, products and proceeds (collectively, the “Equipment” and separately, a “Unit”) described on each Equipment Schedule, each of which shall incorporate all the terms and conditions of this Master Equipment Lease.  Where rights to receive license fees for Software (as described below) and charges for Services (as described below) supplied or to be supplied to Lessee are included in the amount financed by Lessor under the Lease, references to leasing, purchasing, ownership and administration of Equipment under the Lease shall be broadly interpreted to include such Financed Fees (as defined below). “Software” means the software and all related documentation, corrections, updates and revisions used in connection with Equipment financed under a Schedule. “Services” means all training, installation, transportation, handling, maintenance, custom programming, integration, technical consulting and support services relating to Equipment and specified on a Schedule. “Financed Fees” means the Software license, usage or other fees and the charges for Services, if any, specified on a Schedule. Each Equipment Schedule, incorporating by reference the terms and conditions of this Master Equipment Lease, shall constitute a separate instrument of lease and the term “Lease” as used below shall refer to an individual Equipment Schedule which incorporates this Master Equipment Lease, together with the Certificate of Acceptance for that Schedule.  In case of inconsistency, the terms of the Schedule shall control.

 

2.      Term. The Term of a Lease shall consist of (i) the Interim Term, if any, and (ii) the Base Term.  The Interim Term, if any, shall commence on the date of the Lessee’s execution of the Certificate of Acceptance (provided such date is other than the first of the month) (“Acceptance Date”) and shall extend to the last day of that month (the “Interim Term”).  The Base Term shall commence on the first day of the month following the Interim Term, if any, and shall continue for the number of periods specified on the Schedule (the “Base Term”). If the Acceptance Date is the first day of the month there shall be no Interim Term.  Lessor is authorized to enter the commencement date and other ministerial information on the Schedule upon receipt of the Certificate of Acceptance.  The terms and conditions of this Master Equipment Lease shall continue in effect during any renewal term.

 

3.      Rent; Late Charge.  Lessee agrees to pay directly to Lessor at the above address or to Lessor’s assignee the rental payments plus any interim rent as specified on the Equipment Schedule together with all other amounts which may become due under this Master Equipment Lease (the “Rent”).  All Rent shall be paid without notice, setoff or demand.  If any Rent is not received within five (5) days of the due date, Lessor may charge and Lessee shall be obligated to pay a late charge in the amount specified on the Equipment Schedule, or, if none is so specified, five percent (5%) of the delinquent amount.

 

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4.      Net Lease; Lessee’s Obligations Absolute.  Each Lease is a net lease.  Lessee’s obligation to pay Rent shall be absolute and unconditional and shall not be subject to any abatement, deferral, reduction, defense, counterclaim, setoff or recoupment for any reason, including without limitation any claim against the manufacturer or loss of possession or use of the Equipment (“Abatement”).

 

5.      Disclaimer of Warranties; Lessee’s Obligations.  LESSEE ACKNOWLEDGES THAT FOR THE PURPOSES OF UCC ARTICLE 2A THIS IS A STATUTORY FINANCE LEASE AND LESSOR IS NOT AN AGENT OF THE MANUFACTURER OR VENDOR OF THE EQUIPMENT NOR A LICENSOR.  LESSEE SELECTED THE EQUIPMENT AND VENDOR OR LICENSOR.  LESSEE IS SATISFIED THAT THE EQUIPMENT IS SUITABLE AND FIT FOR LESSEE’S PURPOSES.  LESSOR MAKES NO WARRANTY EITHER EXPRESS OR IMPLIED, AS TO, WITHOUT LIMITATION, QUALITY, CONDITION, MERCHANTABILITY, DESIGN, CAPACITY, WORKMANSHIP OR PERFORMANCE OF THE EQUIPMENT, OR ITS FITNESS FOR ANY PARTICULAR PURPOSE.  No defect or unsuitability of the Equipment or delay in delivery shall relieve Lessee of the obligation to pay Rent or any other obligation under this Lease.  Lessor hereby assigns to Lessee any interest it may have in manufacturers’ warranties which Lessee may enforce in Lessee’s name and at Lessee’s sole expense.  Lessee knows it may have rights under any vendor purchase documents and can contact the vendor if any for a description of such rights.

 

6.      Assignment.  (a) LESSEE SHALL NOT ASSIGN, DELEGATE, TRANSFER OR ENCUMBER ANY OF ITS RIGHTS OR OBLIGATIONS HEREUNDER OR UNDER ANY SCHEDULE, OR ITS LEASEHOLD INTEREST, SUBLET THE EQUIPMENT OR OTHERWISE PERMIT THE EQUIPMENT TO BE OPERATED OR USED BY, OR TO COME INTO OR REMAIN IN THE POSSESSION OF, ANYONE BUT LESSEE, PROVIDED, THAT LESSEE MAY PERMIT THE EQUIPMENT TO BE USED BY WAL-MART STORES, EAST, LP, AND ITS AFFILIATES, PURSUANT TO THE POWER PURCHASE AGREEMENT DATED AS OF JUNE 27, 2014, BY AND BETWEEN LESSEE AND WAL-MART STORES, EAST, LP.  Without limiting the foregoing, Lessee may not attempt to dispose of any of the Equipment.   No disposition referred to in this Section shall relieve Lessee of its obligations, and Lessee shall remain primarily liable hereunder and under each Schedule. (b) Lessor may at any time with or without notice to Lessee grant a security interest in, sell, assign, delegate or otherwise transfer (an “Assignment”) all or any part of its interest in the Equipment, this Master Equipment Lease or any Schedule or any Rent thereunder, or the right to enter into any Schedule, and Lessee shall perform all of its obligations thereunder, to the extent so transferred, for the benefit of the beneficiary of such Assignment (such beneficiary, including any successors and assigns, an “Assignee”).  Lessee agrees not to assert against any Assignee any Abatement (without limiting the provisions of Section 2) or claim that Lessee may have against Lessor, and Assignee shall not be bound by, or otherwise required to perform any of Lessor’s obligations, unless expressly assumed by such Assignee.  Lessor shall be relieved of any such assumed obligations.  If so directed in writing, Lessee shall pay all Rent and all other sums that become due under the assigned Schedule directly to the Assignee or any other party designated in writing by Lessor or such Assignee.  Lessee acknowledges that Lessor’s right to enter into an Assignment is essential to Lessor and, accordingly, waives any restrictions under applicable law with respect to an Assignment and any related remedies.  Upon the request of Lessor or any Assignee, Lessee also agrees (i) to promptly execute and deliver to Lessor or to such Assignee an acknowledgment of the Assignment in form and substance satisfactory to the requesting party, an insurance certificate and such other documents and assurances reasonably requested by Lessor or Assignee, and (ii) to comply with all other reasonable requirements of any such Assignee in connection with any such Assignment.  Upon such Assignment and except as may otherwise be provided herein, all references in this Lease to “Lessor” shall include such Assignee.  (c) Subject always to the foregoing, this Lease and each Schedule shall inure to the benefit of, and are binding upon, Lessee’s and Lessor’s respective successors and assigns.

 

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7.      Title; No Other Liens; Security Interest; License.   Lessee and Lessor intend that: (1) each Schedule, incorporating by reference the terms of this Lease, constitutes a true “lease” and a “finance lease” as such terms are defined in Article 2A and not a sale or retention of a security interest; and (2) Lessor is and shall remain the owner of each item of Equipment (unless sold by Lessor pursuant to any Lease), and Lessee shall not acquire any right, title or interest in or to such Equipment except the right to use it in accordance with the terms of the related Schedule. Lessor and Lessee do not intend this agreement as a disguised installment sale or disguised security agreement.  Title to any replacement parts or integral additions to the Equipment shall automatically vest in Lessor. In the event that this transaction shall be determined to be something other than a “True Lease”, Lessee hereby grants to Lessor and any assignee of Lessor a continuing security interest in all of Lessee’s right, title and interest in and to the Equipment, together with any and all proceeds of the Equipment or other tangible and intangible property of Lessee resulting from the sale (authorized or unauthorized) or other disposition of the Equipment.  Lessee further agrees and covenants not to create or permit any lien or other encumbrance upon the Equipment or this Lease other than Assignee’s interest, and agrees that if Lessee breaches this covenant Assignee may cancel this Lease.  Lessor’s ownership interest in titled Equipment shall not be impaired though Lessee’s name may appear on the title certificate.  Without limiting the foregoing, Lessee hereby grants to Lessor an irrevocable license to use the Equipment and all other intellectual property relating to the Equipment.

 

8.      Risk of Loss.  Lessee assumes the entire risk of loss to the Equipment.  Lessee shall advise Lessor in writing promptly of the circumstances and extent of any damage to the Equipment.  If the Equipment is irreparably damaged, lost, stolen or taken by eminent domain or otherwise, on the next rent payment date Lessee shall, at Lessor’s option, (a) replace it with like equipment approved by Lessor and transfer title to such replacement item to Lessor, or (b) pay to Lessor all Rent due on that date plus the Stipulated Loss Value of such Equipment, less the net amount of any recovery actually received by Lessor from insurance or otherwise.  When, in Lessor’s sole discretion, the Equipment can be repaired, Lessee shall at its expense promptly effect such repairs as Lessor deems necessary for compliance with this Lease.  Any insurance proceeds received by Lessor for repair of the Equipment shall, at Lessor’s option, be paid either directly to the party completing the repairs, or to reimburse Lessee for the cost of such repairs; provided, however, that Lessor shall have no obligation to make any payment until receipt of evidence satisfactory to Lessor that such repairs have been completed; and further provided that Lessor may apply such proceeds to the payment of Rent if there shall have occurred and be continuing an Event of Default or any event which with lapse of time or notice, or both, would become an Event of Default.  Lessee shall, upon Lessor’s request, undertake, by litigation or otherwise, in Lessee’s name, the collection of any claim against any person for such loss or taking, but Lessor shall not be obligated to undertake the collection of any such claim.  As used in this Lease, “Stipulated Loss Value” shall mean the product of the cost of the applicable Equipment, times the percentage factor applicable to such rent payment date, as set forth in the Schedule of Stipulated Loss Values incorporated in such Schedule.  After the final rent payment date of the Base Term or any renewal term of a Schedule, the Stipulated Loss Value shall be determined as of the last rent payment date during the applicable term of such Schedule, and the applicable percentage factor shall be the last percentage factor set forth in the Schedule of Stipulated Loss Values incorporated in such Schedule.

 

9.      Representations and Warranties of Lessee.   If Lessee is a business entity, it is duly organized, validly existing and in good standing under the laws of the above-named state of organization.  Lessee has the full power and authority to execute, deliver and perform its obligations in accordance with this Lease.  The execution and delivery of this Lease will not (i) violate any applicable law of any governmental authority or any judgment or order of any court, other governmental authority or arbitrator; (ii) violate any agreement governing Lessee or to which Lessee is a party.  Lessee’s certificate of incorporation, by-laws or other organizational documents do not prohibit any term or condition of this Lease.  Each authorization, approval or consent from, each registration and filing with, each declaration and notice to, and each other act by or relating to, any party required as a condition of Lessee’s execution, delivery or performance of this Lease (including any shareholder or board of directors or similar approvals) has been duly obtained and is in full

 

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force and effect.  Lessee has the power and authority to transact the business in which it is engaged and is duly licensed or qualified and in good standing in each jurisdiction in which the conduct of its business or ownership of property requires such licensing or such qualifications.

 

10.    Maintenance and Repairs; Business Purpose Only; Use.  Lessee at its sole expense shall cause the Equipment to be maintained and kept in good repair according to the manufacturer’s specifications.  Lessee shall (1) use the Equipment solely in the continental United States and in the conduct of its business, for the purpose for which the Equipment was designed, in a careful and proper manner, and shall not permanently discontinue use of the Equipment; (2) operate, maintain, service and repair the Equipment, and maintain all records and other materials relating thereto, so as to cause the Equipment  to be in good repair and operating condition and in at least the same condition as when delivered to Lessee under a Lease, except for ordinary wear and tear resulting despite Lessee’s full compliance with the terms hereof; and (3) not attach or incorporate the Equipment to or in any other property in such a manner that the Equipment may be deemed to have become an accession to or a part of such other property.  Within a reasonable time, Lessee will replace any parts of the Equipment which become worn out, lost, destroyed, damaged beyond repair or otherwise unfit for use, by new or reconditioned replacement parts which are free and clear of all liens and have a value, utility, residual value, and remaining useful life at least equal to the parts replaced (assuming that they were in the condition required by and maintained in the same way as the Equipment under this Master Equipment Lease).  Any modification or addition to the Equipment that is required by this Master Equipment Lease shall be made by Lessee.  Title to all such parts, modifications and additions to the Equipment shall immediately vest in Lessor, without any further action by Lessor or any other person, and they shall be deemed incorporated in the Equipment for all purposes of the related Schedule.  Unless replaced in accordance with this Section, Lessee shall not remove any parts originally or from time to time attached to the Equipment, if such parts are essential to the operation of the Equipment, are required by any other provision of this Master Equipment Lease or cannot be detached from the Equipment without materially interfering with the operation of the Equipment or adversely affecting the value, utility, residual value, and remaining useful life which the Equipment would have had without the addition of such parts.  Except as permitted in this Section, Lessee shall not make any material alterations to the Equipment.

 

11.    Insurance.  Lessee shall maintain at its own expense and at all times property damage, fire, theft and comprehensive insurance for the full replacement value of the Equipment with loss payable provisions in favor of Lessor as loss payee as its interests may appear and maintain public liability insurance in the amounts required by Lessor for the relevant Equipment Schedule, naming Lessor as additional insured, all under policies in form, substance and amount and written by companies approved by Lessor.  All policies will require thirty (30) days’ prior written notice to Lessor of any amendment or cancellation. If Lessee fails to obtain the insurance as provided herein, Lessor may, but is not obligated, to obtain such insurance as Lessor may deem appropriate including, if it so chooses, “single interest insurance” which will cover only Lessor’s interest in the Equipment.  Lessee shall pay Lessor for the cost of such insurance.  Lessor shall have the option to apply any insurance proceeds toward Rent or apply the insurance proceeds towards repair or replacement of the item of Equipment in respect of which such proceeds were received.  Upon the request of Lessor, Lessee shall from time to time deliver to Lessor such insurance policies, or other evidence of such policies satisfactory to Lessor and such other related information Lessor may request.

 

12.    Compliance; Inspection.  Lessee shall comply with all governmental laws, regulations, requirements and rules, including without limitation environmental and licensing laws and all manufacturer’s operating instructions and warranty requirements for the Equipment, and with the conditions and requirements of all policies of insurance with respect to the Equipment and this Lease.  At any time during business hours, Lessor may enter the premises where the Equipment is located, to inspect the Equipment, provided, that, so long as the Equipment is located at a Wal-Mart facility pursuant to the Power Purchase Agreement dated as of June 27, 2014, by and between Lessee and Wal-Mart Stores, East, LP, (a) the prior approval of Wal-

 

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Mart Stores, East, LP will be required for access to such Wal-Mart facility, and (b) Lessee shall assist Lessor in obtaining such prior approval of Wal-Mart Stores, East, LP.

 

13.    Taxes and Costs.  Lessee shall pay all applicable sales, use and other taxes whether or not stated on the Schedule (including without limitation any amounts due pursuant to increases in rates effective during the Term), license and registration fees, assessments and other government charges, however designated, based upon the Equipment or the Rent or upon the purchase, ownership, use, operation, maintenance, repair, return or other disposition of the Equipment, or for titling or registering the Equipment, including taxes measured by the net income of Lessor to the extent that such taxes are assessed in lieu of other governmental charges.  If Lessee represents that Lessee is exempt from payment of income taxes and sales taxes, Lessee will provide Lessor with evidence of such exemptions.  Lessee shall pay all shipping and delivery charges and other expenses incurred in connection with the Equipment and pay all lawful claims which might become a lien on the Equipment.  Lessee will also pay all costs and expenses (including all reasonable fees and disbursements of all counsel retained for advice, suit, appeal or other proceedings or purpose and of any experts or agents it may retain), which Lessor may incur in connection with (i) the administration of each Lease, including any administrative fees Lessor may impose for the preparation of discharges, releases or assignments to third-parties; (ii) the enforcement and collection of any Rent or any guaranty thereof; (iii) the exercise, performance ,enforcement or protection of any of the rights of Lessor hereunder; or (iv) the failure of Lessee to perform or observe any provisions hereof.  After such demand for payment of any cost, expense or fee under this Section or elsewhere under this Master Equipment Lease, Lessee shall pay interest at the highest legal rate from the date payment is demanded by Lessor to the date reimbursed by Lessee.  All such costs, expenses or fees under this Master Equipment Lease shall be added to the Rent, and shall be due and payable on demand.

 

14.    Application of Payments.  Payment shall be applied first to Lessor’s costs and expenses including without limitation attorney’s fees, collection costs and expenses incurred in performing Lessee’s obligations under each Lease, next to charges and fees such as late charges, and last to Rent.

 

15.    General Indemnity. Lessee shall indemnify Lessor and its Affiliates and each officer, employee, accountant, attorney and other agent thereof (each such person being an “Indemnified Party”) on demand, without any limitation as to amount, against each liability, cost and expense (including all reasonable fees and disbursements of all counsel retained for advice, suit, appeal or other proceedings or purpose, and of any expert or agents an Indemnified Party may retain) heretofore or hereafter imposed on, incurred by or asserted against any Indemnified Party (including any claim involving any allegation of any violation of applicable law of any governmental authority (including any environmental law or criminal law)), however asserted and whether now existing or hereafter arising, arising out of or in connection with the manufacture, purchase, ownership, delivery, installation, possession, use, storage, operation, failure, maintenance, repair, return, repossession or other disposition of the Equipment or with a Lease including (without limitation) claims for injury to or death of persons and for damage to property (collectively “Claims”); provided, however, the foregoing indemnity shall not apply to liability, cost or expense solely attributable to an Indemnified Party’s gross negligence or willful misconduct.  Lessee shall give Lessor and any Assignee prompt notice of any Claim.  This indemnity agreement shall survive the termination of this Master Equipment Lease.

 

16.          Tax Indemnity.  Lessee represents, warrants and covenants that Lessee will take all actions requested at any time to protect Lessor’s tax ownership of the Equipment; the Equipment is, and will be used by Lessee so as to remain, property eligible for the MACRS Deductions; and the Equipment is not “limited use property” for purposes of Rev. Proc. 2001-28, 2001-1 C.B. 1156.  As used herein, “MACRS Deductions” shall mean the deductions under Section 167 of the Internal Revenue Code of 1986, as now or hereafter amended (the “Code”), determined in accordance with the modified Accelerated Cost Recovery System with respect to the cost of any item of the Equipment using the accelerated method set forth in Sections

 

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168(b)(1) or 168(b)(2) of the Code as in effect on the date of this Master Equipment Lease for property assigned to the class of property specified in the Schedule pertaining thereto.  Lessee agrees not to do anything to impair or lessen the value of Lessor’s anticipated tax benefits related to the Equipment and expressly agrees that Claims under the indemnity provided in Section 15 hereof shall include:  (a) any disallowance, elimination, recapture, reduction or disqualification, in whole or in part, of any tax benefits of Lessor incurred as a result of (1) any act or omission or misrepresentation of Lessee, (2) the entire Equipment cost to Lessor not qualifying as cost of “property” for purposes of Section 168 of the Code, and (3) a person other than Lessor claiming any tax deduction or credit related to the Equipment; and (b) any additional tax for which Lessor becomes liable as a result of Lessee having added an attachment or made an alteration to the Equipment, including (without limitation) any such attachment or alteration which would increase the productivity or capability of the Equipment so as to violate the provisions of Rev. Proc. 2001-28, 2001-1 C.B. 1156 (as it may hereafter be modified or superseded); hereinafter referred to as a “Loss”.  If Lessor suffers a Loss, Lessee shall pay to Lessor as additional Rent on the next succeeding rental payment date after Lessor delivers to Lessee written notice of a Loss, or if there is no such date, within thirty (30) days after such notice, the amount which, after deduction of all taxes, interest, additions to tax and penalties that have been or will be required to be paid by Lessor at the highest marginal corporate income or franchise tax rates under all applicable federal, state and local laws, regulations and ordinances, will preserve the Net Economic Return that would have been realized by Lessor had such Loss not occurred.  In the case of a Loss resulting from Lessor’s inability to offset, for federal or local income or state franchise tax purposes, income taxable at a rate equal to Lessor’s highest marginal corporate tax rate, basic Rent for the related Schedule shall be adjusted to preserve the Net Economic Return.  “Net Economic Return” means the maintenance, at a minimum, of Lessor’s (i) after-tax yield (ii) after-tax aggregate cash flows, and (iii) return on assets as computed by Lessor as of the date of the execution of the applicable Schedule.  All of Lessor’s rights and privileges arising from the indemnity in this Section shall survive the expiration or other termination of this Master Equipment Lease.  For purposes of this indemnity, the term “Lessor” shall include any affiliated group (within the meaning of Section 1504 of the Code) of which Lessor is a member for any year in which a consolidated income tax return is filed for such affiliated group.

 

17.    Location.  Lessee shall not remove the Equipment from its business location specified on the respective Equipment Schedule without Lessor’s prior written consent.  Upon the expiration or termination of this Lease, unless Lessee purchases the Equipment pursuant to the Rider (if any) attached to the Equipment Schedule, Lessee shall, at its sole expense, store and continue to insure the Equipment for up to one hundred eighty (180) days and shall deliver the Equipment to Lessor in good condition, ordinary wear and tear excepted, at a location within the United States designated by the Lessor.

 

18.1.       Financial Statements.  Lessee shall maintain a system of accounts established and administered in accordance with generally accepted accounting principles and practices for its industry consistently applied, and, promptly deliver to the Lessor (i) within sixty (60) days after the end of each of its first three fiscal quarters, an unaudited consolidating and consolidated financial statement of the Lessee and each of the Lessee’s subsidiaries as of the end of such quarter, which financial statement shall consist of income and cash flows for the quarter, for the corresponding quarter in the previous fiscal year and for the period from the end of the previous fiscal year, with a consolidating and consolidated balance sheet as of the quarter end all in such detail as the Lessor may request; (ii) within ninety (90) days after the end of each fiscal year, consolidating and consolidated statements of the Lessee’s and each of the Lessee’s subsidiaries’ income and cash flows and its consolidating and consolidated balance sheet as of the end of such fiscal year, setting forth comparative figures for the preceding fiscal year and to be (check applicable box, if no box is checked the financial statements shall be audited): audited by an independent certified public accountant acceptable to the Lessor; all such statements shall be certified by the Lessee’s chief financial officer to be correct and in accordance with the Lessee’s and each of the Lessee’s subsidiaries’ records and to present fairly the results of the Lessee’s and each of the Lessee’s subsidiaries’ operations and cash flows and its financial position at year end; and (iii) with each statement of income, a certificate executed by the

 

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Lessee’s chief executive and chief financial officers or other such person responsible for the financial management of the Lessee (A) setting forth the computations required to establish the Lessee’s compliance with each financial covenant, if any, during the statement period, (B) stating that the signers of the certificate have reviewed this Lease and the operations and condition (financial or other) of the Lessee and each of Lessee’s subsidiaries during the relevant period and (C) stating that no Event of Default occurred during the period, or if an Event of Default did occur, describing its nature, the date(s) of its occurrence or period of existence and what action the Lessee has taken with respect thereto.  The Lessee shall also promptly provide the Lessor with copies of all annual reports, proxy statements and similar information distributed to shareholders, partners or members, and copies of all filings with the Securities and Exchange Commission and the Pension Benefit Guaranty Corporation, and shall provide, in form satisfactory to the Lessor, such additional information, reports or other information as the Lessor may from time to time reasonably request regarding the financial and business affairs of the Lessee or any of the Lessee’s subsidiaries.  If the Lessee is an individual, the Lessee shall provide annually a personal financial statement in form and detail acceptable to the Lessor and such other financial information as the Lessor may from time to time reasonably request.

 

18.2. Notice of Defaults and Material Adverse Changes.  Immediately upon acquiring reason to know of (i) any Event of Default (including, but not limited to, a default under a third party agreement), (ii) any event or condition that might have a material adverse effect upon the Lessee or a Lessee’s subsidiary, the Lessee will provide to Lessor a certificate executed by Lessee’s senior individual authorized to transact business on behalf of the Lessee, specifying the date(s) and nature of the event and what action the Lessee or its subsidiary has taken or proposes to take with respect to it.

 

19.    No Liens.  Lessee shall not create or suffer to exist any lien or other encumbrance of any kind upon the Equipment or this Lease and agrees that if Lessee breaches this covenant Lessor may, at its option, but without any obligation to do so: (i) cancel this Lease; or (ii) perform or comply, or otherwise cause performance or compliance, with such terms including the payment or discharge of all taxes, fees, security interest or other liens, encumbrances or claims, at any time levied or placed on the Equipment or this Lease.  Nothing in this Section shall be construed to limit, abridge, supersede, or otherwise invalidate the right of Lessor to make expenditures or to take action or perform an obligation of Lessee as set forth in Section 23 of this Lease.

 

20.    Quiet Enjoyment; Equipment is Personalty.  Lessor covenants that so long as no Event of Default shall have occurred, Lessee shall be entitled to quiet possession and use of the Equipment in accordance with this Lease.  Lessor and Lessee agree that the Equipment shall remain personal property.  Lessee will obtain and deliver upon Lessor’s request any landlord and mortgagee waivers in recordable form, satisfactory to Lessor, from all persons claiming any interest in the real property on or in which the Equipment is located.

 

21.          Events of Default. Any of the following events or conditions shall constitute an “Event of Default”:  (i) failure by the Lessee to pay when due (whether at the stated maturity, by acceleration, upon demand or otherwise) the Rent, or any part thereof, or there occurs any event or condition which after notice, lapse of time or after both notice and lapse of time will permit acceleration of Rent; (ii) default by the Lessee in the performance of any obligation, term or condition of this Lease, or any other agreement with the Lessor or any of its affiliates or subsidiaries (collectively, “Affiliates”); (iii) failure by the Lessee to pay when due (whether at the stated maturity, by acceleration, upon demand or otherwise) any indebtedness or obligation owing to any third party or any Affiliate, the occurrence of any event which could result in acceleration of payment of any such indebtedness or obligation or the failure to perform any agreement with any third party or any Affiliate; (iv) the Lessee is dissolved, becomes insolvent, generally fails to pay or admits in writing its inability generally to pay its debts as they become due; (v) the Lessee makes a general assignment, arrangement or composition agreement with or for the benefit of its creditors or makes, or sends notice of

 

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any intended, bulk sale; the sale, assignment, transfer or delivery of all or substantially all of the assets of the Lessee to a third party; or the cessation by the Lessee as a going business concern; (vi) the Lessee files a petition in bankruptcy or institutes any action under federal or state law for the relief of debtors or seeks or consents to the appointment of an administrator, receiver, custodian or similar official for the wind up of its business (or has such a petition or action filed against it and such petition action or appointment is not dismissed or stayed within forty-five (45) days); (vii) the reorganization, merger, consolidation or dissolution of the Lessee (or the making of any agreement therefor); (viii) the death or judicial declaration of incompetency of the Lessee, if an individual; (ix) the entry of any judgment or order of any court, other governmental authority or arbitrator against the Lessee; (x) falsity, omission or inaccuracy of facts submitted to the Lessor or any Affiliate (whether in a financial statement or otherwise); (xi) an adverse change in the Lessee, its business, assets, operations, affairs or condition (financial or otherwise) from the status shown on any financial statement or other document submitted to the Lessor or any Affiliate, and which change the Lessor determines will have a material adverse affect on (a) the Lessee, its business, assets, operations or condition (financial or otherwise), or (b) the ability of the Lessee to pay the Rent; (xii) any pension plan of the Lessee fails to comply with applicable law or has vested unfunded liabilities that, in the opinion of the Lessor, might have a material adverse effect on the Lessee’s ability to repay its debts; (xiii) any indication or evidence received by the Lessor that the Lessee may have directly or indirectly been engaged in any type of activity which, in the Lessor’s discretion, might result in the forfeiture or any property of the Lessee to any governmental authority; (xiv) any direct or indirect change in the beneficial ownership of Lessee or any Guarantor, whether by operation of law or otherwise, after which the percentage of any issued and outstanding shares of any class of stock of such Lessee or Guarantor, beneficially owned by any person or group of persons having beneficial ownership of any such shares, has changed by at least ten percent (10%) more or less than it was on the date of the Lease; (xv) the occurrence of any event described in Section 21 (i) through and including 21(xiv) with respect to any subsidiary or to any endorser, guarantor (“Guarantor”) or any other party liable for, or whose assets or any interest therein secures, payment of any of the Rent; or (xvi) the Lessor in good faith deems itself insecure with respect to payment of the Rent.  The occurrence of an Event of Default with respect to any Schedule shall, at the sole discretion of Lessor, constitute an Event of Default with respect to any or all Schedules.  Notwithstanding anything to the contrary set forth herein, Lessor may exercise all rights and remedies hereunder independently with respect to each Schedule.

 

22.    Remedies.  (a) Immediately upon the occurrence of any Event of Default, Lessor may, without notice or demand, take any or all of the following steps:  (1) immediately cancel the Lease and require Lessee, at its expense, promptly to return all or any portion of the Equipment to the possession of Lessor at such place or places as Lessor may designate; (2) without process of law, enter upon the premises where the Equipment is located and take immediate possession of the Equipment, free from all claims for loss or damage caused by repossession; (3) declare immediately due and payable an amount equal to the Liquidated Damages together with all Enforcement Costs (as defined below); (4) sell, re-lease or otherwise dispose of the Equipment as is or with any commercially reasonable preparation, at public or private sale, in one or more parcels, upon any terms, at such place(s) and time(s) and to such persons or firms as Lessor deems best, without demand or notice, although Lessee agrees ten (10) business days’ written notice if given shall be deemed reasonable notice; or (5) exercise any other right or remedy in equity or under applicable law, including without limitation remedies of a secured party under the Uniform Commercial Code.   As used herein, “Liquidated Damages” shall mean the liquidated damages (all of which, Lessee hereby acknowledges, are damages to be paid in lieu of future Rent and are reasonable in light of the anticipated harm arising by reason of an Event of Default, and are not a penalty) described in the first sentence of parts (1) or (2) of Section 22(b), depending upon the recovery and disposition of the Equipment leased under the applicable Schedule.  Upon the occurrence of the Event of Default described in Section 21(vi) or (vii) hereof, the remedy provided in Clause (3) above shall be automatically exercised without the requirement of prior written notice to Lessee or of any other act or declaration by Lessor, and the Liquidated Damages described therein shall be immediately due and payable.

 

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(b) (1) If an Event of Default occurs with respect to any Schedule, if Lessor recovers the Equipment and disposes of it by a lease or elects not to dispose of the Equipment after recovery, upon demand, Lessee shall pay to Lessor an amount equal to the sum of (A) any accrued and unpaid Rent as of the date Lessor recovers possession of the Equipment, plus (B) the present value as of such date of the total Rent for the then remaining term of such Schedule, minus (C) either, as applicable, (i) the present value, as of the commencement date of any substantially similar re-lease of the Equipment, of the re-lease rent payable for that period, commencing on such date, which is comparable to the then remaining term of such Schedule or (ii) the present value, as of that certain date which may be determined by taking into account Lessor’s having a reasonable opportunity to remarket the Equipment, of the “market rent” for such Equipment (as computed pursuant to UCC Article 2A) in the continental United States on that date, computed for that period, commencing on such date, which is comparable to the then remaining term of such Schedule; provided, however, Lessee acknowledges that if Lessor is unable after reasonable effort to dispose of the Equipment at a reasonable price and pursuant to other reasonable terms, or the circumstances reasonably indicate that such an effort will be unavailing, the “market rent” in such event will be deemed to be $0.00, but in the event that Lessor does eventually re-lease or otherwise dispose of the Equipment, it will apply the net proceeds of such disposition, to the extent received in good and indefeasible funds, as a credit or reimbursement, as applicable, in a manner consistent with the applicable provisions of UCC Article 2A.  Any amounts discounted to present value, shall be discounted at the rate of three percent (3%) per annum, compounded annually. Any amounts recovered by Lessor hereunder shall be applied by Lessor, with respect to the related Schedule: first, to pay all Enforcement Costs, to the extent not previously paid; second, to pay to Lessor an amount equal to any unpaid Rent due and payable, together with the liquidated damage amounts specified in this part (1), to the extent not previously paid; third, to pay to Lessor any interest accruing on the amounts covered by the preceding clauses, at the late charge rate, from and after the date the same becomes due, through the date of payment; and fourth, (A) if the Lessor under such Schedule is also the Lessor under any other Schedules (whether by retaining the same, or as Assignee), to satisfy any remaining obligations under any or all such other Schedules, or (B) if such Lessor is not the Lessor under any other Schedule, or if Lessee’s obligations to such Lessor under such other Schedules have been fully and indefeasibly satisfied, to reimburse Lessee for such amounts to the extent paid by Lessee as liquidated damages pursuant to this part (1).

 

(b) (2) If an Event of Default occurs with respect to any Schedule, if Lessee fails to return the Equipment in the manner and condition required by this Lease, or Lessor recovers and sells the Equipment, upon demand, Lessee shall pay to Lessor an amount calculated as the Stipulated Loss Value of the Equipment (determined as of the next rent payment date after the date of the occurrence of the subject Event of Default), together with all other Rent due with respect to the related Schedule as of such determination date, and all Enforcement Costs, less a credit for any disposition proceeds, if applicable pursuant to the application provisions in the next sentence.  If Lessor demands the Liquidated Damages under this part (2), and recovers and sells the Equipment, any proceeds received in good and indefeasible funds shall be applied by Lessor, with respect to the related Schedule: first, to pay all Enforcement Costs, to the extent not previously paid; second, to pay to Lessor an amount equal to any unpaid Rent due and payable, together with the liquidated damage amounts specified in this part (2), to the extent not previously paid; third, to pay to Lessor any interest accruing on the amounts covered by the preceding clauses, at the late charge rate, from and after the date the same becomes due, through the date of payment; and fourth, (A) if the Lessor under such Schedule is also the Lessor under any other Schedules (whether by retaining the same, or as Assignee), to satisfy any remaining obligations under any or all such other Schedules, or (B) if such Lessor is not the Lessor under any other Schedule, or if Lessee’s obligations to such Lessor under such other Schedules have been fully and indefeasibly satisfied, to reimburse Lessee for such amounts to the extent paid by Lessee as liquidated damages pursuant to this part (2).

 

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(c)   Enforcements costs, as used herein, shall include all of the following (“Enforcement Costs”): (1) all unpaid Rent due before, during or after exercise of any of the foregoing remedies, and (2) all reasonable legal fees (including consultation, drafting notices or other documents, expert witness fees, sending notices or instituting, prosecuting or defending litigation or arbitration) and other enforcement costs and expenses incurred by reason of any Default or Event of Default or the exercise of Lessor’s rights or remedies, including all expenses incurred in connection with the return or other recovery of any Equipment in accordance with the terms of this Lease or in placing such Equipment in the condition required hereby, or the sale, re-lease or other disposition (including but not limited to costs of transportation, possession, storage, insurance, taxes, lien removal, repair, refurbishing, advertising and brokers’ fees), and all other pre-judgment and post-judgment enforcement related actions taken by Lessor or any actions taken by Lessor in any bankruptcy case involving Lessee, the Equipment, or any other person.  Late charges shall accrue with respect to any amounts payable under this Section for as long as such amounts remain outstanding, and shall be paid by Lessee upon demand.  No right or remedy is exclusive and each may be used successively and cumulatively.  Any failure to exercise the rights granted hereunder upon any Default or Event of Default shall not constitute a waiver of any such right.  No extension of time for payment or performance of any of Lessee’s obligations hereunder shall operate to release, discharge, modify, change or affect the original liability of Lessee for such obligations, either in whole or in part.  In any action to repossess any Equipment, Lessee waives any bonds and any surety or security required by any applicable laws as an incident to such repossession.  Notices of Lessor’s intention to accelerate, acceleration, nonpayment, presentment, protest, dishonor or any other notice whatsoever (other than as expressly set forth herein) are waived by Lessee.  Any notice given by Lessor of any disposition of the Equipment or other intended action of Lessor which is given in accordance with this Lease at least five (5) business days prior to such action, shall constitute fair and reasonable notice of such action. The execution of a Schedule shall not constitute a waiver by Lessor of any pre-existing Default or Event of Default.  With respect to any disposition of any Equipment pursuant to this Section, (i) Lessor shall have no obligation, subject to the requirements of commercial reasonableness, to clean-up or otherwise prepare the same for disposition, (ii) Lessor may comply with any applicable law in connection with any such disposition, and any actions taken in connection therewith shall not be deemed to have adversely affected the commercial reasonableness of any disposition thereof, (iii) Lessor may disclaim any title or other warranties in connection with any such disposition, and (iv) Lessee shall remain responsible for any deficiency remaining after Lessor’s exercise of its remedies and application of any funds or credits against Lessee’s obligations under any Schedule, and Lessor shall retain any excess after such application.

 

23.    Lessor’s Right to Cure. If Lessee fails to perform or comply with any of the terms hereof, Lessor, at its option, but without any obligation to do so, may perform or comply, or otherwise cause performance or compliance, with such terms including the payment or discharge of all taxes, fees, security interest or other liens, encumbrances or claims, at any time levied or placed on the Equipment.  Lessee shall reimburse Lessor, upon demand, for all expenses incurred by Lessor in connection with such performance.  An election to make expenditures or to take action or perform an obligation of Lessee under the Lease, after Lessee’s failure to perform, shall not affect Lessor’s right to declare an Event of Default and to exercise its remedies.  The provisions of this Section shall not relieve Lessee of any of its obligations hereunder with respect to the Equipment or impose any obligation on Lessor to proceed in any particular manner with respect to the Equipment.

 

24.    Purchase Option and Automatic Renewal.  Lessee shall have only such option to purchase the Equipment upon expiration of the Lease as specified in a separate Purchase and Renewal Option Rider (“Rider”) to the Schedule.  Any option shall be suspended during the existence of any Event of Default. In addition, in the event Lessee does not intend to exercise the Purchase or Renewal Option as provided for in the Purchase and Renewal Rider attached to a Schedule and made a part thereof, Lessee must notify Lessor of its intent to return the Equipment at least one hundred twenty (120) days but not more than two hundred seventy (270) days prior to the Base Term Expiration Date.  If Lessee intends to return the Equipment, it

 

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must do so to a location of Lessor’s choosing under the terms and conditions set forth in the Lease.  Until and unless Lessee provides Lessor with the notice required hereunder, the Lease shall automatically renew for additional twelve (12) month terms, during which time all of the terms and conditions of the Lease will remain in full force and effect.

 

25.          Further Assurances; Reports.  Lessee will execute all documents and take all further actions requested by Lessor to protect Lessor’s interests under each Lease, including without limitation Uniform Commercial Code financing statements.  Lessee irrevocably authorizes Lessor to file UCC financing statements (“UCCs”), and other filings with respect to the Equipment.  Without Lessor’s prior written consent, Lessee agrees not to file any corrective or termination statements or partial releases with respect to any UCCs filed by Lessor pursuant to a Lease.  Lessee will pay all costs of filing financing statements with respect to a Lease, including (without limitation) documentary stamp taxes.  Lessee will cause Lessor’s interest in the Equipment to be noted on any certificate of title relating to the Equipment.  Lessee shall provide written notice to Lessor: (1) thirty (30) days prior to any change in Lessee’s name or jurisdiction or form of organization; (2) promptly upon the occurrence of any Event of Default or event which, with the lapse of time or the giving of notice, or both, would become an Event of Default (a “Default”); and (3) promptly upon Lessee becoming aware of any alleged violation of applicable law relating to the Equipment or any Lease.

 

26.    Power of Attorney.   Lessee hereby irrevocably appoints Lessor, its officers, employees and agents, or any of them, as attorneys-in-fact for Lessee with full power and authority in the place and stead of Lessee and in the name of Lessee or its own name from time to time in Lessor’s discretion, to (a) execute applications for certificates of title or notices of lien relating to titled Equipment, (b) endorse checks, drafts or other instruments drawn by the issuer of insurance covering the Equipment, or (c) execute and deliver any writing and take any other actions that Lessor deems necessary or desirable to perfect or protect Lessor’s interests under a Lease.  This power is coupled with an interest and if Lessee is a natural person shall not be affected by any subsequent disability of the Lessee.

 

27.    Enforceability.  This Master Equipment Lease shall be binding upon Lessee’s successors and assigns and shall be enforceable by Lessor’s successors and assigns.  Time is of the essence.

 

28.    Waivers; Changes in Writing.  No course of dealing nor any omission, failure or delay of the Lessor in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. Lessee expressly disclaims any reliance on any course of dealing or usage of trade or oral representation of the Lessor and agrees that none of the foregoing shall operate as a waiver of any right or remedy of the Lessor.  No notice to or demand on the Lessee in any case shall entitle the Lessee to any other or further notice or demand in similar or other circumstances.  No waiver of any provision of this Lease or consent to any departure by the Lessee therefrom shall in any event be effective unless made specifically in writing by the Lessor and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  No modification to any provision of this Lease shall be effective unless made in writing in an agreement signed by the Lessee and the Lessor.

 

29.    No Commitment; Lessor’s Right to Terminate Commitments.  This Master Equipment Lease is not a legal commitment to lend and Lessor shall have no obligation to enter into any Schedule unless (1) Lessor has issued a specific commitment for such Schedule, (2) no Event of Default or any event which with lapse of time or notice, or both, would become an Event of Default exists with respect to any agreement or other obligation of Lessee in any capacity to Lessor or any of its Affiliates in any capacity, and (3) none of the following has occurred:  (a) there has been a material adverse change in Lessee’s financial position or credit standing as determined by Lessor in its sole discretion; (b) the Equipment fails to be delivered and

 

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accepted by Lessee before the commitment expires; (c) Lessee or any Guarantor fails to cause its counsel to deliver on its behalf any legal opinion requested by the Lessor; (d) Lessee fails to deliver evidence satisfactory to Lessor that Lessee has obtained and will maintain in force during the term of a Lease all federal, state and local permits, licenses and approvals necessary for the acquisition, transportation, operation and maintenance of the Equipment, including (without limitation) disposal of all associated wastes and by-products and protection of operators and other persons in the vicinity of the Equipment; or (e) any other condition specified in the Schedule has not been fulfilled.  Immediately upon Lessor’s termination or rejection of a Schedule or commitment based on this Section, Lessee will return, and reimburse Lessor on demand for all sums disbursed by Lessor with respect to, the Equipment and proposed Schedule, including (without limitation) all Lessor’s attorneys’ fees and disbursements, whereupon, if Lessee is not in default with respect to any agreement with Lessor, Lessor will transfer to Lessee without warranty or recourse any rights Lessor may have with respect to the Equipment.

 

30.    Software License; Service Financing.  To the extent that any Schedule includes Software:

 

(a)         Lessee acknowledges that (i) all Software listed on any Schedule, or incorporated as a component of any Equipment listed in a Schedule, is governed by separate software license agreement(s) between Lessee and manufacturer(s) or vendor(s) of the Software, solely in its (their) capacity as licensor of such Software (the “Licensor”) relating to Software (the “License Agreement”) governing Lessee’s rights thereto, (ii) the Lease does not convey any explicit or implicit license for the use of the Software or other intellectual property relating to the Equipment, and (iii) Lessor does not hold title to any Software and Lessee is or shall be the licensee of such Software directly from the Licensor.

 

(b)         Lessee shall not amend, modify or otherwise alter, any term or condition of the License Agreement, including, without limitation, any such term or condition related to (i) payment of any amounts due thereunder, (ii) any liabilities or obligations of Lessee as licensee, (iii) the payment of late fees on past due amounts, or (iv) the payment of applicable taxes; provided, however, that this provision shall not apply to those terms and conditions relating solely to amounts owing to Licensor which have not been financed under the Lease.

 

31.    Entire Agreement.  This Master Equipment Lease, each Equipment Schedule and each Acceptance Certificate executed pursuant hereto, constitutes the entire agreement between Lessor and Lessee relating to the Equipment and supersedes all prior dealings.  This Master Equipment Lease may be amended only in a writing signed by both parties.

 

32.    Notices.  Any demand or notice hereunder or under any applicable law pertaining hereto shall be in writing and duly given if delivered to Lessee (at its address on the Lessor’s records) or to the Lessor (at the address on page one and separately to the representative of the Lessor responsible for Lessee’s relationship with the Lessor).  Such notice or demand shall be deemed sufficiently given for all purposes when delivered (i) by personal delivery and shall be deemed effective when delivered, or (ii) by mail or courier and shall be deemed effective three (3) business days after deposit in an official depository maintained by the United States Post Office for the collection of mail or one (1) business day after delivery to a nationally recognized overnight courier service (e.g., Federal Express).  Notice by e-mail is not valid notice under this or any other agreement between Lessee and the Lessor. Lessee shall immediately notify Lessor and any assignee of any change in the location of the Equipment or in Lessee’s address, name, management, financial condition or form of organization.

 

33.    Generally Accepted Accounting Principles.  Any financial calculation to be made, all financial statements and other financial information to be provided, and all books and records, system of accounting and reserves to be kept in connection with the provisions of this Lease, shall be in accordance with generally accepted accounting principles consistently applied during each interval and from interval to interval;

 

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provided, however, that in the event changes in generally accepted accounting principles shall be mandated by the Financial Accounting Standards Board or any similar accounting body of comparable standing, or should be recommended by Lessee’s certified public accountants, to the extent such changes would affect any financial calculations to be made in connection herewith, such changes shall be implemented in making such calculations only from and after such date as Lessee and the Lessor shall have amended this Master Equipment Lease to the extent necessary to reflect such changes in the financial and other covenants to which such calculations relate.

 

34.    Cumulative Nature and Non-Exclusive Exercise of Rights and Remedies.  All rights and remedies of the Lessor pursuant to this Master Equipment Lease shall be cumulative, and no such right or remedy shall be exclusive of any other such right or remedy. No single or partial exercise by the Lessor of any right or remedy pursuant to this Master Equipment Lease or otherwise shall preclude any other or further exercise thereof, or any exercise of any other such right or remedy, by the Lessor.

 

35.    Governing Law; Jurisdiction.  This Master Equipment Lease has been delivered to and accepted by the Lessor and will be deemed to be made in the State of New York.  Except as otherwise provided under federal law, this Master Equipment Lease will be interpreted in accordance with the laws of the State of New York excluding its conflict of laws rules. LESSEE HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT IN THE STATE OF NEW YORK IN A COUNTY OR JUDICIAL DISTRICT WHERE THE LESSOR OR ANY OF ITS AFFILIATES MAINTAINS A BRANCH AND CONSENTS THAT THE LESSOR MAY EFFECT ANY SERVICE OF PROCESS IN THE MANNER AND AT LESSEE’S ADDRESS SET FORTH ABOVE FOR PROVIDING NOTICE OR DEMAND; PROVIDED THAT NOTHING CONTAINED IN THIS LEASE WILL PREVENT THE LESSOR FROM BRINGING ANY ACTION, ENFORCING ANY AWARD OR JUDGMENT OR EXERCISING ANY RIGHTS AGAINST LESSEE INDIVIDUALLY, AGAINST ANY SECURITY OR AGAINST ANY PROPERTY OF LESSEE WITHIN ANY OTHER COUNTY, STATE OR OTHER FOREIGN OR DOMESTIC JURISDICTION.   Lessee acknowledges and agrees that the venue provided above is the most convenient forum for both the Lessor and Lessee.  Lessee waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Master Equipment Lease.

 

36.    Additional Waivers by Lessee.  Lessee  (a) waives personal service of process and subpoenas, (b) consents to the service of process and subpoenas by registered mail directed to the Lessee’s last known address, with such service deemed complete five days after mailing, (c) waives any right to assert any counterclaim or setoff or any defense based upon any statute of limitations or any claim of laches, (d) waives its right to attack any final judgment that is obtained as a direct or indirect result of any such action and (e) consents to each such final judgment being sued upon in any court having jurisdiction.  LESSEE WAIVES ANY AND ALL RIGHTS AND REMEDIES CONFERRED BY UCC ARTICLE 2A SECTIONS 505-522, INCLUDING WITHOUT LIMITATION ANY RIGHTS TO (a) CANCEL OR REPUDIATE THE LEASE, (b) REJECT OR REVOKE ACCEPTANCE OF THE EQUIPMENT, (c) RECOVER DAMAGES FROM THE LESSOR FOR BREACH OF WARRANTY OR FOR ANY OTHER REASON, (d) CLAIM A SECURITY INTEREST IN ANY REJECTED EQUIPMENT IN LESSEE’S POSSESSION OR CONTROL, (e) DEDUCT FROM RENT ALL OR ANY PART OF ANY CLAIMED DAMAGES RESULTING FROM THE LESSOR’S DEFAULT UNDER THE LEASE, (f) ACCEPT PARTIAL DELIVERY OF THE EQUIPMENT, (g) RECOVER FROM LESSOR OR ASSIGNEE ANY GENERAL, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES FOR ANY REASON WHATSOEVER, AND (h) SPECIFIC PERFORMANCE, REPLEVIN OR THE LIKE FOR ANY OF THE EQUIPMENT.  Lessee also waives any statutory right it may have now or in the future to require the Lessor to sell or re-lease the Equipment or otherwise to mitigate damages.

 

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37.    Interpretation.  Unless the context otherwise clearly requires, references to plural includes the singular and references to the singular include the plural; references to “individual” shall mean a natural person and shall include a natural person doing business under an assumed name (e.g., a “DBA”); the word “or” has the inclusive meaning represented by the phrase “and/or”; the word “including”, “includes” and “include” shall be deemed to be followed by the words “without limitation”; and captions or section headings are solely for convenience and not part of the substance of this Lease.  Any representation, warranty, covenant or agreement herein shall survive execution and delivery of this Lease and shall be deemed continuous.  Each provision of this Lease shall be interpreted as consistent with existing law and shall be deemed amended to the extent necessary to comply with any conflicting law.  If any provision nevertheless is held invalid, the other provisions shall remain in effect.  The Lessee agrees that in any legal proceeding, a photocopy of this Lease kept in the Lessor’s course of business may be admitted into evidence as an original.  The captions in this Lease are for convenience only.

 

38.  Waiver of Jury Trial.  LESSEE AND LESSOR HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY LESSEE AND LESSOR MAY HAVE IN ANY ACTION OR PROCEEDING, AT LAW OR IN EQUITY, IN CONNECTION WITH THIS MASTER EQUIPMENT LEASE OR ANY TRANSACTIONS RELATED HERETO.  LESSEE REPRESENTS AND WARRANTS THAT NO REPRESENTATIVE OR AGENT OF LESSOR HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT LESSOR WILL NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS JURY TRIAL WAIVER.  LESSEE ACKNOWLEDGES THAT LESSOR HAS BEEN INDUCED TO ENTER INTO THIS MASTER EQUIPMENT LEASE BY, AMONG OTHER THINGS, THE PROVISIONS OF THIS SECTION.

 

39.  Joint and Several Liability. If there is more than one Lessee, each of them shall be jointly and severally liable under this Master Equipment Lease and any Schedule entered into hereunder and the term “Lessee” shall include each as well as all of them.

 

40.    Miscellaneous.   (a) This Master Equipment Lease and all of the other lease documents may be executed in counterparts.  Photocopies or facsimile transmissions of signatures shall be deemed original signatures and shall be fully binding on the parties to the same extent as original signatures.  The transfer or possession of the “Original” of this Master Equipment Lease shall be irrelevant to the full or collateral assignment of, or grant of security interest in, any Schedule; provided, however, no security interest in any Schedule may be created through the transfer, possession or control, as applicable, of any counterpart of such Schedule other than the original thereof, which shall be identified as the document or record (as applicable) marked “Original” and all other counterparts shall be marked “Duplicate”.  (b) If Lessor is required by the terms hereof to pay to or for the benefit of Lessee any amount received as a refund of an imposition or as insurance proceeds, Lessor shall not be required to pay such amount, if any Default has occurred and not been cured or any Event of Default shall have occurred and not been waived by Lessor.  In addition, if Lessor is required by the terms hereof to cooperate with Lessee in connection with certain matters, such cooperation shall not be required if a Default or Event of Default has then occurred and is continuing.  (c) To the extent Lessor is required to give its consent or approval with respect to any matter, the reasonableness of Lessor’s withholding of such consent shall be determined based on the then existing circumstances; provided, that Lessor’s withholding of its consent shall be deemed reasonable for all purposes if (i) the taking of the action that is the subject of such request, might result (in Lessor’s discretion), in (A) an impairment of Lessor’s rights, title or interests hereunder or under any Schedule, or to the Equipment, or (B) expose Lessor to any Claims or impositions, or (ii) Lessee fails to provide promptly to Lessor any filings, certificates, opinions or indemnities required by Lessor as a condition to such consent.  (d) There is no restriction (either express or implied) on any disclosure or dissemination of the tax treatment or tax structure of the transactions contemplated by this Lease or any documents executed in connection herewith. Further, each party hereto acknowledges that it has no proprietary rights to any tax matter or tax idea or to any element of the transaction structure contemplated by this Lease; and each party hereto (and

 

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any employee, representative or agent of any party hereto) may disclose to any and all persons (without limitation of any kind), the Federal tax treatment and Federal tax structure of the transaction contemplated by this Lease.  This Section 40(d) is intended to cause the transaction contemplated by this Lease to be treated as not having been offered under conditions of confidentiality for purposes of Section 1.6011-4(b)(3) (or any successor provision) of the Treasury Regulations promulgated under Section 6011 of the Code and Section 6111 of the Code and the Treasury Regulations promulgated thereunder; and shall be construed in a manner consistent with such purpose.

 

(The remainder of this page is intentionally blank.  Signature page follows.)

 

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Acknowledgment.  LESSEE ACKNOWLEDGES THAT IT HAS READ AND UNDERSTANDS ALL THE PROVISIONS OF THIS MASTER EQUIPMENT LEASE, INCLUDING THE GOVERNING LAW, JURISDICTION AND WAIVER OF JURY TRIAL, AND HAS BEEN ADVISED BY COUNSEL AS NECESSARY OR APPROPRIATE.

 

LESSEE ALSO ACKNOWLEDGES THAT ONLY LESSOR’S ORIGINAL OF EACH EQUIPMENT SCHEDULE CONSTITUTES CHATTEL PAPER FOR PURPOSES OF THE UNIFORM COMMERCIAL CODE.  NO SECURITY INTEREST CAN BE PERFECTED BY POSSESSION OF ANY OTHER COUNTERPART.

 

	
Date: June 30, 2014
    	
Accepted on: June 30, 2014
    
	
 
    	
 
    
	
LESSEE:
    	
LESSOR:
    
	
 
    	
 
    
	
PLUG POWER INC.
    	
MANUFACTURERS AND TRADERS TRUST   COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
David P. Waldek
    	
 
    	
Name:
    	
Carlton Anderson
    
	
Title:
    	
Chief Financial Officer
    	
 
    	
Title:
    	
Vice President
    

 

(Signature Page — CDN 01 — Master Equipment Lease — Plug Power Inc.)

 

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Execution Copy

Closing Document No. 02-B

 

ADDITIONAL TERMS RIDER 
 to 
 EQUIPMENT SCHEDULE NO. 01 
 Dated as of June 30, 2014 (“SCHEDULE”) 
 to 
 MASTER EQUIPMENT LEASE 
 Dated as of June 30, 2014 (“Lease”) 
 between 
 MANUFACTURERS AND TRADERS TRUST COMPANY 
 (M&T BANK) (“LESSOR”) 
 And 
 PLUG POWER INC. 
 (“LESSEE”)

 

The following provisions are hereby agreed upon and made a part of the Lease.

 

1.             Financial Covenant. Lessee shall, at all times, have unencumbered Liquid Assets (as hereinafter defined) with cash value not less than $75,000,000.00, to be measured (a) quarterly, or (b) if M&T Bank/Wilmington Trust does not receive a sufficient level of investment management services business under Section 2(b) of this Rider, as determined by Lessor in its sole discretion, monthly. As used herein, the term “Liquid Assets” means cash on hand, plus the value of Marketable Securities, minus the value of restricted retirement assets.

 

2.             Bank Accounts. So long as any amounts remain outstanding under the Lease, Lessee must use (a) M&T Bank as its primary bank of account, and (b) M&T Bank/Wilmington Trust for investment management services.

 

3.           Lease Payment Accounts.

 

(a)          Lessor and Lessee shall establish the following accounts with Wilmington Trust, as escrow agent (the “Escrow Agent”): (1) an account (“Lease Payment Account B”), for the purpose of collecting payments under the Walmart Contract (as hereinafter defined); and (2) an account (“Lease Payment Account A”), for the purpose of establishing a reserve for payment of certain monies due to Lessee under the Walmart Contract. As used in this Section 3, the term “Walmart Contract” means a Power Purchase Agreement dated as of January 27, 2014, by and between Lessee and Wal-Mart Stores, East, LP (“Walmart”).

 

(b)          Lessee immediately will instruct Walmart to remit payments under the Walmart Contract to Lease Payment Account B.

 

(c)          Lessor and Lessee will enter into an agreement with the Escrow Agent with respect to each of Lease Payment Account B and Lease Payment Account A, providing for the terms under which monies received into such account will be disbursed by the Escrow Agent.

 

Except as specifically amended hereby, all of the terms and conditions set forth in the Lease are unaffected and remain in full force and effect.

 

(The remainder of this page is intentionally blank.  Signature page follows.)

 

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IN WITNESS WHEREOF, the parties have executed this Additional Terms Rider as of the date first above written.

 

	
LESSEE:
    	
LESSOR:
    
	
 
    	
 
    
	
PLUG   POWER INC.
    	
MANUFACTURERS AND TRADERS TRUST   COMPANY
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    
							

 

(Signature Page — CDN 02-B — Additional Terms Rider — Plug Power Inc.)

 

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Closing Document No. 02-G

 

SPECIAL TAX INDEMNITY RIDER

(Qualified Fuel Cell Property)

 

THIS SPECIAL TAX INDEMNITY RIDER dated as of June 30, 2014 (this “Rider”), is made by and between MANUFACTURERS AND TRADERS TRUST COMPANY (“Lessor”) and PLUG POWER INC. (“Lessee”), and is attached to, and made a part of, Equipment Schedule No. 001 dated as of June 30, 2014 (the “Schedule”) to the Master Equipment Lease dated as of June 30, 2014 (the “Master Lease”), each by and between Lessor and Lessee. The Schedule and the Master Lease, solely as it relates to the Schedule, are hereinafter collectively referred to as, this “Lease”.

 

Lessor and Lessee hereby agree that this Lease will be amended to include the following provisions:

 

(a)           Lessee acknowledges that Lessor has executed this Lease, and that the Rent payable by Lessee under this Lease has been computed, upon the assumptions that:

 

(1)           Lessor will be entitled to an energy credit under Sections 38, 46 and 48 of the Internal Revenue Code of 1986, as amended (the “Code”), in the amount of [***] (the “Section 48 Credit”), which amount is based on an energy percentage under Section 48(a)(2)(A)(i) of the Code equal to thirty percent (30%);

 

(2)           for the purposes of the Section 48 Credit: (A) the Equipment constitutes “energy property” within the meaning of Section 48(a)(3)(A)(iv) of the Code; (B) the Equipment constitutes “qualified fuel cell property” under such Section 48(c)(1)(A) of the Code; and (C) the Section 48 Credit can be claimed by Lessor during the same tax year in which the Equipment was placed in service; and

 

(3)           the Section 48 Credit does not (and will not) exceed the limitation set forth in Section 48(c)(1)(B) of the Code for the taxable year in which the Equipment is placed in service.

 

(b)           If, for any reason whatsoever, including, without limitation, a failure of the assumptions set forth in Section (a) above, Lessee having assumed all risk of the inaccuracy of such assumptions, the Section 48 Credit is lost, disallowed, deferred, eliminated, reduced, recaptured, compromised or otherwise unavailable to Lessor (together with any interest, penalties or additions to tax, hereinafter, a “Tax Loss”), then, within thirty (30) days of Lessee’s receipt of written notice from Lessor that such a Tax Loss has occurred, Lessee shall pay to Lessor an amount which, after deduction therefrom of all taxes to be paid in respect of the receipt thereof, will enable Lessor to receive the same Net Economic Return (as hereinafter defined) that Lessor would have realized on this Lease had such Tax Loss not occurred. Notwithstanding the foregoing, a Tax Loss will not be subject to indemnification under this Rider if such Tax Loss is solely the result of (1) Lessor’s failure to claim the Section 48 Credit on its applicable Federal income tax return, or (2) Lessor not having sufficient income to realize the full benefit of the Section 48 Credit.

 

(c)           As used in Section (b) above, the term “Net Economic Return” shall mean Lessor’s net after-tax yield, aggregate after-tax cash flow and return on assets, based on (1) the assumptions used by Lessor in originally calculating Rent percentages, including the assumptions set forth above (as such assumptions may have been revised pursuant to the last sentence of this subsection) and (2) the Highest Marginal Tax Rate actually in effect during each year from the date of such original calculations to the date of such Tax Loss, both dates inclusive. As used in this Section (c), the term “Highest Marginal Tax Rate” shall mean, collectively, the highest marginal Federal corporate rate then in effect plus the highest

 

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(d)           In the event Lessor shall suffer a Tax Loss with respect to which Lessee is required to pay an indemnity under this Rider, and the full amount of such indemnity has been paid or provided for under this Rider, the aforesaid assumptions, without further act of the parties hereto, shall thereupon be and be deemed to be amended, if and to the extent appropriate, to reflect such Tax Loss.

 

(e)           As used in this Rider, the term “Lessor” shall include any affiliated group (within the meaning of Section 1504 of the Code) of which Lessor is a member for any year in which a consolidated income tax return is filed for such affiliated group.

 

(f)            Lessee acknowledges that it has neither sought nor received any U.S. federal or state tax advice from Lessor as to the availability of the Section 48 Credit with respect to the Equipment. All of Lessor’s rights and privileges arising from the indemnities contained in this Lease, including this Rider, will survive the expiration or other termination or cancellation of this Lease. Such indemnities are expressly made for the benefit of, and are enforceable by, Lessor and its successors and assigns.

 

Except as specifically amended hereby, all of the terms and conditions set forth in this Lease are unaffected and remain in full force and effect.

 

(The remainder of this page is intentionally blank.  Signature page follows.)

 

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IN WITNESS WHEREOF, the parties have executed this Special Tax Indemnity Rider as of the date first above written.

 

	
LESSEE:
    	
LESSOR:
    
	
 
    	
 
    
	
PLUG POWER INC.
    	
MANUFACTURERS AND TRADERS TRUST   COMPANY
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    
							

 

(Signature Page — CDN 02-G — Special Tax Indemnity Rider — Plug Power Inc.)

 

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