Document:

Registration Rights Agreement

 Exhibit 4.3 

REGISTRATION RIGHTS AGREEMENT 

This REGISTRATION RIGHTS AGREEMENT dated April 15, 2010 (the “Agreement”) is entered into by and among Rosetta Resources
Inc., a Delaware corporation (the “Company”), the guarantors listed on the signature pages hereto (the “Guarantors”) and J.P. Morgan Securities Inc. (“JPMorgan”), as representative of the several Initial Purchasers
listed on Schedule 1 hereto (the “Initial Purchasers”). 
 The Company, the Guarantors and the Initial Purchasers are
parties to the Purchase Agreement dated April 12, 2010 (the “Purchase Agreement”), which provides for the sale by the Company to the Initial Purchasers of $200,000,000 aggregate principal amount of the Company’s 9 1/2% Senior
Notes due 2018 (the “Securities”) which will be guaranteed on an unsecured senior basis by each of the Guarantors. As an inducement to the Initial Purchasers to enter into the Purchase Agreement, the Company and the Guarantors have agreed
to provide to the Initial Purchasers and their direct and indirect transferees the registration rights set forth in this Agreement. The execution and delivery of this Agreement is a condition to the closing under the Purchase Agreement. 

In consideration of the foregoing, the parties hereto agree as follows: 

1. Definitions. As used in this Agreement, the following terms shall have the following meanings: 

“Additional Guarantor” shall mean any subsidiary of the Company that executes a Subsidiary Guarantee under the
Indenture after the date of this Agreement. 
 “Business Day” shall mean any day that is not a
Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed. 

“Company” shall have the meaning set forth in the preamble and shall also include the Company’s successors.

 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 “Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof. 

“Exchange Offer” shall mean the exchange offer by the Company and the Guarantors of Exchange Securities for
Registrable Securities pursuant to Section 2(a) hereof. 
 “Exchange Offer Registration” shall
mean a registration under the Securities Act effected pursuant to Section 2(a) hereof. 
 “Exchange
Offer Registration Statement” shall mean an exchange offer registration statement on Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to such registration statement, in each case including the
Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein. 

 “Exchange Securities” shall mean senior notes issued by the
Company and guaranteed by the Guarantors under the Indenture containing terms identical to the Securities (except that the Exchange Securities will not be subject to restrictions on transfer or to any increase in annual interest rate for failure to
comply with this Agreement) and to be offered to Holders of Securities in exchange for Securities pursuant to the Exchange Offer. 

“Free Writing Prospectus” means each free writing prospectus (as defined in Rule 405 under the Securities Act)
prepared by or on behalf of the Company or used or referred to by the Company in connection with the sale of the Securities or the Exchange Securities. 

“Guarantors” shall have the meaning set forth in the preamble and shall also include any Guarantor’s
successors and any Additional Guarantors. 
 “Holders” shall mean the Initial Purchasers, for so long
as they own any Registrable Securities, and each of their successors, assigns and direct and indirect transferees who become owners of Registrable Securities under the Indenture; provided that for purposes of Sections 4 and 5 of this Agreement, the
term “Holders” shall include Participating Broker-Dealers. 
 “Indemnified Person” shall have
the meaning set forth in Section 5(c) hereof. 
 “Indemnifying Person” shall have the meaning set
forth in Section 5(c) hereof. 
 “Indenture” shall mean the Indenture relating to the Securities
dated as of April 15, 2010 among the Company, the Guarantors and Wells Fargo Bank, National Association, as trustee, and as the same may be amended from time to time in accordance with the terms thereof. 

“Initial Purchasers” shall have the meaning set forth in the preamble. 

“Inspector” shall have the meaning set forth in Section 3(a)(xiv) hereof. 

“Issue Date” shall mean April 15, 2010. 

“Issuer Information” shall have the meaning set forth in Section 5(a) hereof. 

“JPMorgan” shall have the meaning set forth in the preamble. 

“Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of the outstanding
Registrable Securities; provided that whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, any Registrable Securities owned directly or indirectly by the Company or any

  

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of its affiliates shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage or amount; and provided, further, that if
the Company shall issue any additional Securities under the Indenture prior to consummation of the Exchange Offer or, if applicable, the effectiveness of any Shelf Registration Statement, such additional Securities and the Registrable Securities to
which this Agreement relates shall be treated together as one class for purposes of determining whether the consent or approval of Holders of a specified percentage of Registrable Securities has been obtained. 

“Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof. 

“Person” shall mean an individual, partnership, limited liability company, corporation, trust or unincorporated
organization, or a government or agency or political subdivision thereof. 
 “Prospectus” shall mean
the prospectus included in, or, pursuant to the rules and regulations of the Securities Act, deemed a part of, a Registration Statement, including any preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus
supplement, including a prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other amendments and supplements to such prospectus, and in
each case including any document incorporated by reference therein. 
 “Purchase Agreement” shall have
the meaning set forth in the preamble. 
 “Registrable Securities” shall mean the Securities;
provided that the Securities shall cease to be Registrable Securities on the earliest of (i) when the Exchange Securities are issued in exchange for the Securities pursuant to the Exchange Offer Registration Statement, (ii) if an
Exchange Offer is completed, on or after the Exchange Date with respect to Holders that are eligible to participate in the Exchange Offer but fail to tender such Securities in the Exchange Offer, (iii) when a Registration Statement with respect
to such Securities has become effective under the Securities Act and such Securities have been exchanged or disposed of pursuant to such Registration Statement, (iv) the date that is two years from the Issue Date or (v) when such
Securities cease to be outstanding. 
 “Registration Expenses” shall mean any and all expenses incident
to performance of or compliance by the Company and the Guarantors with this Agreement, including without limitation: (i) all SEC, stock exchange or Financial Industry Regulatory Authority, Inc. (“FINRA”) registration and filing fees,
(ii) all fees and expenses incurred in connection with compliance with state securities or blue sky laws (including reasonable fees and disbursements of counsel for any Underwriters or Holders in connection with blue sky qualification of any
Exchange Securities or Registrable Securities), (iii) all expenses of any Persons in preparing or assisting in preparing, word processing, printing and distributing any Registration Statement, any Prospectus, any Free Writing Prospectus and any
amendments or supplements thereto, any underwriting agreements, securities sales 
  

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agreements or other similar agreements and any other documents relating to the performance of and compliance with this Agreement, (iv) all rating agency fees, (v) all fees and
disbursements relating to the qualification of the Indenture under applicable securities laws, (vi) the fees and disbursements of the Trustee and its counsel, (vii) the fees and disbursements of counsel for the Company and the Guarantors
and, in the case of a Shelf Registration Statement, the fees and disbursements of one counsel for the Holders (which counsel shall be selected by the Majority Holders and which counsel may also be counsel for the Initial Purchasers) and
(viii) the fees and disbursements of the independent public accountants of the Company and the Guarantors, including the expenses of any special audits or “comfort” letters required by or incident to the performance of and compliance
with this Agreement, but excluding fees and expenses of counsel to the Underwriters (other than fees and expenses set forth in clause (ii) above) or the Holders and underwriting discounts and commissions, brokerage commissions and transfer
taxes, if any, relating to the sale or disposition of Registrable Securities by a Holder. 
 “Registration
Statement” shall mean any registration statement filed under the Securities Act of the Company and the Guarantors that covers any of the Exchange Securities or Registrable Securities pursuant to the provisions of this Agreement and all
amendments and supplements to any such registration statement, including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference
therein. 
 “SEC” shall mean the United States Securities and Exchange Commission. 

“Securities” shall have the meaning set forth in the preamble. 

“Securities Act” shall mean the Securities Act of 1933, as amended from time to time. 

“Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof. 

“Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof. 

“Shelf Registration Statement” shall mean a “shelf’ registration statement of the Company and the
Guarantors that covers all or a portion of the Registrable Securities (but no other securities unless approved by a majority of the Holders whose Registrable Securities are to be covered by such Shelf Registration Statement) on an appropriate form
under Rule 415 under the Securities Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained
therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein. 

“Shelf Request” shall have the meaning set forth in Section 2(b) hereof. 

 

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 “Subsidiary Guarantees” shall mean the guarantees of the Exchange
Securities by the Guarantors under the Indenture. 
 “Staff” shall mean the staff of the SEC.

 “Target Registration Date” shall have the meaning set forth in Section 2(d) hereof. 

“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to time. 

“Trustee” shall mean the trustee with respect to the Securities under the Indenture. 

“Underwriter” shall have the meaning set forth in Section 3(e) hereof. 

“Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an Underwriter for
reoffering to the public. 
 2. Registration Under the Securities Act. 

(a) To the extent not prohibited by any applicable law or applicable interpretations of the Staff, the Company and the Guarantors shall
use their reasonable best efforts to (i) cause to be filed an Exchange Offer Registration Statement covering an offer to the Holders to exchange all the Registrable Securities for Exchange Securities and (ii) cause such Registration
Statement to become effective at the earliest possible time under the Securities Act. The Company and the Guarantors shall commence the Exchange Offer promptly after the Exchange Offer Registration Statement is declared effective by the SEC and use
their reasonable best efforts to complete the Exchange Offer not later than 210 days after the Issue Date. 
 The Company and
the Guarantors shall commence the Exchange Offer by mailing the related Prospectus, appropriate letters of transmittal and other accompanying documents to each Holder stating, in addition to such other disclosures as are required by applicable law,
substantially the following: 
 (i) that the Exchange Offer is being made pursuant to this Agreement and that all
Registrable Securities validly tendered and not properly withdrawn will be accepted for exchange. 
 (ii) the
dates of acceptance for exchange (which shall be a period of at least 20 Business Days from the date such notice is mailed) (the “Exchange Dates”); 

(iii) that any Registrable Security not tendered will remain outstanding and continue to accrue interest but will not
retain any rights under this Agreement, except as otherwise specified herein; 
  

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 (iv) that any Holder electing to have a Registrable Security exchanged
pursuant to the Exchange Offer will be required to (A) surrender such Registrable Security, together with the appropriate letters of transmittal, to the institution and at the address (located in the Borough of Manhattan, The City of New York)
and in the manner specified in the notice, or (B) effect such exchange otherwise in compliance with the applicable procedures of the depositary for such Registrable Security, in each case prior to the close of business on the last Exchange
Date; and 
 (v) that any Holder will be entitled to withdraw its election, not later than the close of business
on the last Exchange Date, by (A) sending to the institution and at the address (located in the Borough of Manhattan, The City of New York) specified in the notice, a telegram, telex, facsimile transmission or letter setting forth the name of
such Holder, the principal amount of Registrable Securities delivered for exchange and a statement that such Holder is withdrawing its election to have such Registrable Securities exchanged or (B) effecting such withdrawal in compliance with
the applicable procedures of the depositary for the Registrable Securities. 
 As a condition to participating in the Exchange
Offer, a Holder will be required to represent to the Company and the Guarantors that (i) any Exchange Securities to be received by it will be acquired in the ordinary course of its business, (ii) at the time of the commencement of the
Exchange Offer it has no arrangement or understanding with any Person to participate in the distribution (within the meaning of the Securities Act) of the Exchange Securities in violation of the provisions of the Securities Act, (iii) it is not
an “affiliate” (within the meaning of Rule 405 under the Securities Act) of the Company or any Guarantor and (iv) if such Holder is a broker-dealer that will receive Exchange Securities for its own account in exchange for Registrable
Securities that were acquired as a result of market-making or other trading activities, then such Holder will deliver a Prospectus (or, to the extent permitted by law, make available a Prospectus to purchasers) in connection with any resale of such
Exchange Securities. 
 As soon as practicable after the last Exchange Date, the Company and the Guarantors shall: 

(i) accept for exchange Registrable Securities or portions thereof validly tendered and not properly withdrawn pursuant to
the Exchange Offer; and 
 (ii) deliver, or cause to be delivered, to the Trustee for cancellation all
Registrable Securities or portions thereof so accepted for exchange by the Company and issue, and cause the Trustee to promptly authenticate and 

(iii) deliver to each Holder, Exchange Securities equal in principal amount to the principal amount of the Registrable
Securities tendered by such Holder. 
 The Company and the Guarantors shall use their commercially reasonable efforts to
complete the Exchange Offer as provided above and shall comply with the applicable requirements of the Securities Act, the Exchange Act and other applicable laws and regulations in connection with the Exchange Offer. The Exchange Offer shall not be
subject to any conditions, other than that the Exchange Offer does not violate any applicable law or applicable interpretations of the Staff. 
  

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 (b) In the event that (i) the Company and the Guarantors determine that the Exchange
Offer Registration provided for in Section 2(a) above is not available or may not be completed as soon as practicable after the last Exchange Date because it would violate any applicable law or applicable interpretations of the Staff,
(ii) the Exchange Offer is not for any other reason completed on or before 210th day after the Issue Date, (iii) upon receipt of a Holders’ request, with respect to any Holder of Registrable Securities that (A) is prohibited by
applicable law or SEC policy from participating in the Exchange Offer or (B) may not resell the Exchange Securities acquired by it in the Exchange Offer to the public without delivering a prospectus and that the Prospectus contained in the
Exchange Offer Registration Statement is not appropriate or available for such resales by such or (iv) upon receipt of a written request (a “Shelf Request”) from any Initial Purchaser representing that it holds Registrable Securities
that are or were ineligible to be exchanged in the Exchange Offer, the Company and the Guarantors shall use their reasonable best efforts to cause to be filed as soon as practicable after such determination, date or Shelf Request, as the case may
be, a Shelf Registration Statement providing for the sale of all the Registrable Securities by the Holders thereof and to have-such-Shelf Registration Statement become effective. 

In the event that the Company and the Guarantors are required to file a Shelf Registration Statement pursuant to clause (iv) of the
preceding sentence, the Company and the Guarantors shall use their reasonable best efforts to file and have become effective both an Exchange Offer Registration Statement pursuant to Section 2(a) with respect to all Registrable Securities and a
Shelf Registration Statement (which may be a combined Registration Statement with the Exchange Offer Registration Statement) with respect to offers and sales of Registrable Securities held by the Initial Purchasers after completion of the Exchange
Offer. 
 The Company and the Guarantors agree to use their reasonable best efforts to keep the Shelf Registration Statement
continuously effective until the earlier of (i) one year after the initial effectiveness or (ii) the date when all of the Registrable Securities covered by the Shelf Registration Statement have been sold pursuant to the Shelf Registration
Statement (the “Shelf Effectiveness Period”). The Company and the Guarantors further agree to supplement or amend the Shelf Registration Statement, the related Prospectus and any Free Writing Prospectus if required by the rules,
regulations or instructions applicable to the registration form used by the Company for such Shelf Registration Statement or by the Securities Act or by any other rules and regulations thereunder or if reasonably requested by a Holder of Registrable
Securities with respect to information relating to such Holder, and to use their commercially reasonable efforts to cause any such amendment to become effective, if required, and such Shelf Registration Statement, Prospectus or Free Writing
Prospectus, as the case may be, to become usable as soon as thereafter practicable. The Company and the Guarantors agree to furnish to the Holders of Registrable Securities copies of any such supplement or amendment promptly after its being used or
filed with the SEC. 
 (c) The Company and the Guarantors shall pay all Registration Expenses in connection with any
registration pursuant to Section 2(a) or Section 2(b) hereof. Each Holder shall pay all underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s
Registrable Securities pursuant to the Shelf Registration Statement. 
  

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 (d) An Exchange Offer Registration Statement pursuant to Section 2(a) hereof will not
be deemed to have become effective unless it has been declared effective by the SEC. A Shelf Registration Statement pursuant to Section 2(b) hereof will not be deemed to have become effective unless it has been declared effective by the SEC or
is automatically effective upon filing with the SEC as provided by Rule 462 under the Securities Act. 
 In the event that
either the Exchange Offer is not completed or the Shelf Registration Statement, if required pursuant to Section 2(b)(i), 2(b)(ii) or 2(b)(iii) hereof, does not become effective on or prior to the 210th day after the Issue Date (the “Target
Registration Date”), the interest rate on the Registrable Securities will be increased by 0.25% per annum for the first 90 day period following the Target Registration Date and by an additional 0.25% per annum with respect to each
subsequent 90 day period, up to a maximum of 1.00% per annum, until the earliest of the Exchange Offer being completed, the Shelf Registration Statement, if required hereby, becoming effective and the date on which all Securities cease to be
Registrable Securities. 
 If the Exchange Offer Registration Statement or the Shelf Registration Statement, if required hereby,
has become effective and thereafter either ceases to be effective or the Prospectus contained therein ceases to be usable, in each case whether or not permitted by this Agreement, at any time during the Shelf Effectiveness Period, and such failure
to remain effective or usable exists for more than 60 days (whether or not consecutive) in any 12-month period, then the interest rate on the Registrable Securities will be increased by 0.25% per annum commencing on the date of such default in
such 12-month period for the first 90 day period following such date and by an additional 0.25% per annum with respect to each subsequent 90 day period, up to a maximum of 1.00% per annum and ending on such date that the Shelf Registration
Statement has again become effective or the Prospectus again becomes usable. 
 (e) The Company and the Guarantors acknowledge
that any failure by the Company or the Guarantors to comply with their obligations under Section 2(a) and Section 2(b) hereof may result in material irreparable injury to the Initial Purchasers or the Holders for which there is no adequate
remedy at law, that it will not be possible to measure damages for such injuries precisely and, therefore, the provisions for the payment of additional interest set forth in Section 2(d) shall be the only monetary remedy available to Holders
for the Company’s and the Guarantors’ failure to cause the Exchange Offer Registration Statement or the Shelf Registration Statement to become effective, or continue to be effective, as the case may be, in accordance with the provisions of
this Agreement. 
 The Company represents, warrants and covenants that it (including its agents and representatives) will not
prepare, make, use, authorize, approve or refer to any Free Writing Prospectus other than any written communication relating to or that contains solely the terms of the Exchange Offer and/or other information that was included in the Registration
Statement. 
  

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 3. Registration Procedures. 

(a) In connection with their obligations pursuant to Section 2(a) and Section 2(b) hereof, the Company and the Guarantors shall:

 (i) prepare and file with the SEC a Registration Statement on the appropriate form under the Securities Act,
which form (x) shall be selected by the Company and the Guarantors, (y) shall, in the case of a Shelf Registration, be available for the sale of the Registrable Securities by the Holders thereof and (z) shall comply as to form in all
material respects with the requirements of the applicable form and include all financial statements required by the SEC to be filed therewith; and use their reasonable best efforts to cause such Registration Statement to become effective and remain
effective for the applicable period in accordance with Section 2 hereof; 
 (ii) prepare and file with the
SEC such amendments and post-effective amendments to each Registration Statement and file with the SEC any other required document as may be necessary to keep such Registration Statement effective for the applicable period in accordance with
Section 2 hereof and cause each Prospectus to be supplemented by any required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424 under the Securities Act; and keep each Prospectus current during the period described
in Section 4(3) of and Rule 174 under the Securities Act that is applicable to transactions by brokers or dealers with respect to the Registrable Securities or Exchange Securities; 

(iii) to the extent any Free Writing Prospectus is used, file with the SEC any Free Writing Prospectus that is required to
be filed by the Company or the Guarantors with the SEC in accordance with the Securities Act and to retain any Free Writing Prospectus not required to be filed; 

(iv) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities, to counsel for the Initial
Purchasers, to counsel for such Holders and to each Underwriter of an Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each Prospectus, preliminary prospectus or Free Writing Prospectus, and any amendment or
supplement thereto, as such Holder, counsel or Underwriter may reasonably request in order to facilitate the sale or other disposition of the Registrable Securities thereunder; and the Company and the Guarantors consent to the use of such
Prospectus, preliminary prospectus or such Free Writing Prospectus and any amendment or supplement thereto in accordance with applicable law by each of the Holders of Registrable Securities and any such Underwriters in connection with the offering
and sale of the Registrable Securities covered by and in the manner described in such Prospectus, preliminary prospectus or such Free Writing Prospectus or any amendment or supplement thereto in accordance with applicable law; 

(v) use their commercially reasonable efforts to register or qualify the Registrable Securities under all applicable state
securities or blue sky laws of such jurisdictions as any Holder of Registrable Securities covered by a Registration Statement shall reasonably request in writing by the time the applicable Registration Statement becomes effective; cooperate with
such Holders in connection with any filings required to be made with FINRA; and do any and all other acts and things that may be reasonably necessary or advisable to enable each Holder to complete the disposition in each such jurisdiction of the
Registrable Securities owned by such Holder; provided that neither the Company nor 
  

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any Guarantor shall be required to (1) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so
qualify, (2) file any general consent to service of process in any such jurisdiction or (3) subject itself to taxation in any such jurisdiction if it is not so subject; 

(vi) notify counsel for the Initial Purchasers and, in the case of a Shelf Registration notify each Holder of Registrable
Securities and counsel for such Holders promptly and, if requested by any such Holder or counsel, confirm such advice in writing (1) when a Registration Statement has become effective, when any post-effective amendment thereto has been filed
and becomes effective, when any Free Writing Prospectus has been filed or any amendment or supplement to the Prospectus or any Free Writing Prospectus has been filed, (2) of any request by the SEC or any state securities authority for
amendments and Prospectus or for additional information after the Registration Statement has become effective, (3) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of a Registration
Statement or the initiation of any proceedings for that purpose, including the receipt by the Company of any notice of objection of the SEC to the use of a Shelf Registration Statement or any post-effective amendment thereto pursuant to Rule
401(g)(2) under the Securities Act, (4) if, between the applicable effective date of a Shelf Registration Statement and the closing of any sale of Registrable Securities covered thereby, the representations and warranties of the Company or any
Guarantor contained in any underwriting agreement, securities sales agreement or other similar agreement, if any, relating to an offering of such Registrable Securities cease to be true and correct in all material respects or if the Company or any
Guarantor receives any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose, (5) of the happening of any event during
the period a Registration Statement is effective that makes any statement made in such Registration Statement or the related Prospectus or any Free Writing Prospectus untrue in any material respect or that requires the making of any changes in such
Registration Statement or Prospectus or any Free Writing Prospectus in order to make the statements therein not misleading and (6) of any determination by the Company or any Guarantor that a post-effective amendment to a Registration Statement
or any amendment or supplement to the Prospectus or any Free Writing Prospectus would be appropriate; 
 (vii)
use their commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement or, in the case of a Shelf Registration, the resolution of any objection of the SEC pursuant to Rule 401(g)(2),
including by filing an amendment to such Shelf Registration Statement on the proper form, at the earliest possible moment and provide immediate notice to each Holder of the withdrawal of any such order or such resolution; 

(viii) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities, without charge, at least one
conformed copy of each Registration Statement and any post-effective amendment thereto (without any documents incorporated therein by reference or exhibits thereto, unless requested); provided, however, that any such documents
availability on the SEC’s Electronic Data Gathering Analysis and Retrieval System database shall satisfy such obligation. 
  

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 (ix) in the case of a Shelf Registration, cooperate with the Holders of
Registrable Securities to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any restrictive legends and enable such Registrable Securities to be issued in such denominations
and registered in such names (consistent with the provisions of the Indenture) as such Holders may reasonably request at least two Business Days prior to the closing of any sale of Registrable Securities; 

(x) in the case of a Shelf Registration, upon the occurrence of any event contemplated by Section 3(a)(vi)(5) hereof,
use their commercially reasonable efforts to prepare and file with the SEC a supplement or post-effective amendment to such Shelf Registration Statement or the related Prospectus or any Free Writing Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered (or, to the extent permitted by law, made available) to purchasers of the Registrable Securities, such Prospectus or Free Writing Prospectus, as the case may be, will not
contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and the Company and the Guarantors shall notify
the Holders of Registrable Securities to suspend use of the Prospectus or any Free Writing Prospectus as promptly as practicable after the occurrence of such an event, and such Holders hereby agree to suspend use of the Prospectus or any Free
Writing Prospectus, as the case may be, until the Company and the Guarantors have amended or supplemented the Prospectus or the Free Writing Prospectus, as the case may be, to correct such misstatement or omission; 

(xi) a reasonable time prior to the filing of any Registration Statement, any Prospectus, any Free Writing Prospectus, any
amendment to a Registration Statement or amendment or supplement to a Prospectus or a Free Writing Prospectus or of any document that is to be incorporated by reference into a Registration Statement, a Prospectus or a Free Writing Prospectus after
initial filing of a Registration Statement, provide copies of such document to the Initial Purchasers and their counsel (and, in the case of a Shelf Registration Statement, to the Holders of Registrable Securities and their counsel) and make such of
the representatives of the Company and the Guarantors as shall be reasonably requested by the Initial Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities or their counsel) available
for discussion of such document at reasonable times and upon reasonable prior notice; and the Company and the Guarantors shall not, at any time after initial filing of a Registration Statement, use or file any Prospectus, any Free Writing
Prospectus, any amendment of or supplement to a Registration Statement or a Prospectus or a Free Writing Prospectus, or any document that is to be incorporated by reference into a Registration Statement, a Prospectus or a Free Writing Prospectus, of
which the Initial Purchasers and their counsel (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities and their counsel) shall not have previously been advised and furnished a copy or to which the Initial
Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities or their counsel) shall reasonably object; 

 

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 (xii) obtain a CUSIP number for all Exchange Securities or Registrable
Securities, as the case may be, not later than the initial effective date of a Registration Statement; 
 (xiii)
cause the Indenture to be qualified under the Trust Indenture Act in connection with the registration of the Exchange Securities or Registrable Securities, as the case may be; cooperate with the Trustee and the Holders to effect such changes to the
Indenture as may be required for the Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and execute, and use their commercially reasonable efforts to cause the Trustee to execute, all documents as may be required
to effect such changes and all other forms and documents required to be filed with the SEC to enable the Indenture to be so qualified in a timely manner; 

(xiv) in the case of a Shelf Registration, make available for inspection by a representative of the Holders of the
Registrable Securities (an “Inspector”), any Underwriter participating in any disposition pursuant to such Shelf Registration Statement, any attorneys and accountants designated by a majority of the Holders of Registrable Securities to be
included in such Shelf Registration and any attorneys and accountants designated by such Underwriter, at reasonable times and in a reasonable manner, all pertinent financial and other records, documents and properties of the Company and its
subsidiaries, and cause the respective officers, directors and employees of the Company and the Guarantors to supply all information reasonably requested by any such Inspector, Underwriter, attorney or accountant in connection with a Shelf
Registration Statement, in each case, as is customary for similar “due diligence” examinations in the context of underwritten offerings; provided that if any such information is identified by the Company or any Guarantor as being
confidential or proprietary, each Person receiving such information shall take such actions as are reasonably necessary to protect the confidentiality of such information to the extent such action is otherwise not inconsistent with, an impairment of
or in derogation of the rights and interests of any Inspector, Holder or Underwriter); 
 (xv) in the case of a
Shelf Registration, use their commercially reasonable efforts to cause all Registrable Securities to be listed on any securities exchange or any automated quotation system on which similar securities issued or guaranteed by the Company-or-any
Guarantor are then listed if requested by the Majority Holders, to the extent such Registrable Securities satisfy applicable listing requirements; 

(xvi) if reasonably requested by any Holder of Registrable Securities covered by a Shelf Registration Statement, promptly
include in a Prospectus supplement or post-effective amendment such information with respect to such Holder as such Holder reasonably requests to be included therein and make all required filings of such Prospectus supplement or such post-effective
amendment as soon as the Company has received notification of the matters to be so included in such filing; 
  

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 (xvii) in the case of a Shelf Registration, enter into such customary
agreements and take all such other actions in connection therewith (including those requested by the Holders of a majority in principal amount of the Registrable Securities covered by the Shelf Registration Statement) in order to expedite or
facilitate the disposition of such Registrable Securities including, but not limited to, an Underwritten Offering and and in such connection, (1) to the extent possible, make such representations and warranties to the Holders and any
Underwriters of such Registrable Securities with respect to the business of the Company and its subsidiaries and the Registration Statement, Prospectus, any Free Writing Prospectus and documents incorporated by reference or deemed incorporated by
reference, if any, in each case, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings and confirm the same if and when requested, (2) obtain opinions of counsel to the Company and the
Guarantors (which counsel and opinions, in form, scope and substance, shall be reasonably satisfactory to such Underwriters and their counsel) addressed to each selling Holder (to the extent such Holder has advised the Company that such Holder may
have a “due diligence” defense under Section 11 of the Securities Act) and Underwriter of Registrable Securities, covering the matters customarily covered in opinions requested in underwritten offerings, (3) obtain
“comfort” letters from the independent certified public accountants of the Company and the Guarantors (and, if necessary, any other certified public accountant of any subsidiary of the Company or any Guarantor, or of any business acquired
by the Company or any Guarantor for which financial statements and financial data are or are required to be included in the Registration Statement) addressed to each selling Holder (to the extent permitted by applicable professional standards) and
Underwriter of Registrable Securities, such letters to be in customary form and covering matters of the type customarily covered in “comfort” letters in connection with underwritten offerings, including but not limited to financial
information contained in any preliminary prospectus, Prospectus or Free Writing Prospectus and (4) deliver such documents and certificates as may be reasonably requested by the Holders of a majority in principal amount of the Registrable
Securities being sold or the Underwriters, and which are customarily delivered in underwritten offerings, to evidence the continued validity of the representations and warranties of the Company and the Guarantors made pursuant to clause
(1) above and to evidence compliance with any customary conditions contained in an underwriting agreement; and 

(xviii) so long as any Registrable Securities remain outstanding, cause each Additional Guarantor upon the creation or
acquisition by the Company of such Additional Guarantor, to execute a counterpart to this Agreement in the form attached hereto as Annex A and to deliver such counterpart, together with an opinion of counsel as to the enforceability thereof against
such entity, to the Initial Purchasers no later than five Business Days following the execution thereof. 
 (b) In the case of a
Shelf Registration Statement, the Company may require each Holder of Registrable Securities to furnish to the Company such information regarding such Holder and the proposed disposition by such Holder of such Registrable Securities as the Company
and the Guarantors may from time to time reasonably request in writing. 
  

 -13- 

 (c) In the case of a Shelf Registration Statement, each Holder of Registrable Securities
covered in such Shelf Registration Statement agrees that, upon receipt of any notice from the Company and the Guarantors of the happening of any event of the kind described in Section 3(a)(vi)(3) or 3(a)(vi)(5) hereof, such Holder will
forthwith discontinue disposition of Registrable Securities pursuant to the Shelf Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus and any Free Writing Prospectus contemplated by
Section 3(a)(x) hereof and, if so directed by the Company and the Guarantors, such Holder will deliver to the Company and the Guarantors all copies in its possession, other than permanent file copies then in such Holder’s possession, of
the Prospectus and any Free Writing Prospectus covering such Registrable Securities that is current at the time of receipt of such notice and the Company may exclude from such registration the Registrable Securities of any Holder that unreasonably
fails to furnish such information within 20 Business Days after receiving such request, without prejudice to that Holder’s right (or the right of any subsequent Holder of such Registrable Securities) to request participation in subsequent
amendments or filings of a Shelf Registration Statement. 
 (d) If the Company and the Guarantors shall give any notice to
suspend the disposition of Registrable Securities pursuant to a Registration Statement, the Company and the Guarantors shall extend the period during which such Registration Statement shall be maintained effective pursuant to this Agreement by the
number of days during the period from and including the date of the giving of such notice to and including the date when the Holders of such Registrable Securities shall have received copies of the supplemented or amended Prospectus or any Free
Writing Prospectus necessary to resume such dispositions. The Company and the Guarantors may give any such notice only twice during any 365-day period and any such suspensions shall not exceed 30 days for each suspension and there shall not be more
than two suspensions in effect during any 365-day period. 
 (e) The Holders of Registrable Securities covered by a Shelf
Registration Statement who desire to do so may sell such Registrable Securities in an Underwritten Offering. In any such Underwritten Offering, the investment bank or investment banks and manager or managers (each an “Underwriter”) that
will administer the offering will be selected by the Holders of a majority in principal amount of the Registrable Securities included in such offering, subject to the approval of the Company, which approval shall not be unreasonably withheld.

 4. Participation of Broker-Dealers in Exchange Offer. 

(a) The Staff has taken the position that any broker-dealer that receives Exchange Securities for its own account in the Exchange Offer in
exchange for Securities that were acquired by such broker-dealer as a result of market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed to be an “underwriter” within the meaning of the Securities
Act and must deliver a prospectus meeting the requirements of the Securities Act in connection with any resale of such Exchange Securities. 

The Company and the Guarantors understand that it is the Staff’s position that if the Prospectus contained in the Exchange Offer
Registration Statement includes a plan of distribution containing a statement to the above effect and the means by which Participating Broker-Dealers 

 

 -14- 

 
may resell the Exchange Securities, without naming the Participating Broker-Dealers or specifying the amount of Exchange Securities owned by them, such Prospectus may be delivered by
Participating Broker-Dealers (or, to the extent permitted by law, made available to purchasers) to satisfy their prospectus delivery obligation under the Securities Act in connection with resales of Exchange Securities for their own accounts, so
long as the Prospectus otherwise meets the requirements of the Securities Act. 
 (b) In light of the above, and notwithstanding
the other provisions of this Agreement, the Company and the Guarantors agree to amend or supplement the Prospectus contained in the Exchange Offer Registration Statement for a period of up to 180 days after the last Exchange Date (as such period may
be extended pursuant to Section 3(d) of this Agreement), in order to expedite or facilitate the disposition of any Exchange Securities by Participating Broker-Dealers consistent with the positions of the Staff recited in Section 4(a)
above. The Company and the Guarantors further agree that Participating Broker-Dealers shall be authorized to deliver such Prospectus (or, to the extent permitted by law, make available) during such period in connection with the resales contemplated
by this Section 4. 
 (c) The Initial Purchasers shall have no liability to the Company, any Guarantor or any Holder with
respect to any request that they may make pursuant to Section 4(b) above. 
 5. Indemnification and Contribution.

 (a) The Company and each Guarantor, jointly and severally, agree to indemnify and hold harmless each Initial Purchaser and
each Holder, their respective affiliates, directors and officers and each Person, if any, who controls any Initial Purchaser or any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and
against any and all losses, claims, damages and liabilities (including, without limitation, legal fees and other reasonable expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are
incurred), joint or several, that arise out of, or are based upon, (1) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or any omission or alleged omission to state therein a material
fact required to be stated therein or necessary in order to make the statements therein not misleading, or (2) any untrue statement or alleged untrue statement of a material fact contained in any Prospectus, any Free Writing Prospectus or any
“issuer information” (“Issuer Information”) filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or any omission or alleged omission to state therein a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading, in each case except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with any information relating to any Initial Purchaser information relating to any Holder furnished to the Company in writing through JPMorgan or any selling Holder, respectively,
expressly for use therein. In connection with any Underwritten Offering permitted by Section 3, the Company and the Guarantors, jointly and severally, will also indemnify the Underwriters, if any, selling brokers, dealers and similar securities
industry professionals participating in the distribution, their respective affiliates and each Person who controls such Persons (within the meaning of the Securities Act and the Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders, if requested in connection with any Registration Statement, any Prospectus, any Free Writing Prospectus or any Issuer Information. 

 

 -15- 

 (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, the Guarantors, the Initial Purchasers and the other selling Holders, the directors of the Company and the Guarantors, each officer of the Company and the Guarantors who signed the Registration Statement and each Person, if any, who
controls the Company, the Guarantors, any Initial Purchaser and any other selling Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth in paragraph
(a) above, but only with respect to any losses, claims, damages or liabilities that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any
information relating to such Holder furnished to the Company in writing by such Holder expressly for use in any Registration Statement, any Prospectus and any Free Writing Prospectus. 

(c) If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or
asserted against any Person in respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified Person”) shall promptly notify the Person against whom such
indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have under this Section 5 except to the
extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided, further, that the failure to notify the Indemnifying Person shall not relieve it from any liability
that it may have to an Indemnified Person otherwise than under this Section 5. If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person
shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others entitled to indemnification pursuant to this Section 5 that the Indemnifying Person may designate in such proceeding and
shall pay the fees and expenses of such proceeding and shall pay the fees and expenses of such counsel related to such proceeding, as incurred. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a
reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those
available to the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interests between them. It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for
the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be reimbursed as they are incurred. Any such separate firm (x) for any Initial
Purchaser, its affiliates, directors and officers and any control Persons of such Initial Purchaser shall be designated in 
  

 -16- 

 
writing by JPMorgan, (y) for any Holder, its directors and officers and any control Persons of such Holder shall be designated in writing by the Majority Holders and (z) in all other
cases shall be designated in writing by the Company. The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the
plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have
requested that an Indemnifying Person reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding effected without its written
consent if (i) such settlement is entered into more than 30 days after receipt by the Indemnifying Person of such request and (ii) the Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such request
prior to the date of such settlement. No Indemnifying Person shall, without the written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been
a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (A) includes an unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified
Person, from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as to any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person. 

(d) If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an Indemnified Person or insufficient
in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors from the offering of the Securities and the
Exchange Securities, on the one hand, and by the Holders from receiving Securities or Exchange Securities registered under the Securities Act, on the other hand, or (ii) if the allocation provided by clause (i) is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) but also the relative fault of the Company and the Guarantors on the one hand and the Holders on the other in connection
with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative fault of the Company and the Guarantors on the one hand and the Holders on the other
shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and the Guarantors
or by the Holders and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 

(e) The Company, the Guarantors and the Holders agree that it would not be just and equitable if contribution pursuant to this
Section 5 were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation that does not-take-account of-the-equitable considerations referred to in paragraph

  

 -17- 

 
(d) above. The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in connection with any such action or claim. Notwithstanding the provisions of this Section 5, in no event shall a Holder be required to
contribute any amount in excess of the amount by which the total price at which the Securities or Exchange Securities sold by such Holder exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of
such fraudulent misrepresentation. The Holders’ obligations to contribute pursuant to this Section 5 are several and not joint. 

(f) The remedies provided for in this Section 5 are not exclusive and shall not limit any rights or remedies that may otherwise be
available to any Indemnified Person at law or in equity. 
 (g) The indemnity and contribution provisions contained in this
Section 5 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of the Initial Purchasers or any Holder or any Person controlling any
Initial Purchaser or any Holder, or by or on behalf of the Company or the Guarantors or the officers or directors of or any Person controlling the Company or the Guarantors, (iii) acceptance of any of the Exchange Securities and (iv) any
sale of Registrable Securities pursuant to a Shelf Registration Statement. 
 6. General. 

(a) Inconsistent Agreements. The Company and the Guarantors represent, warrant and agree that (i) the rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of any other outstanding securities issued or guaranteed by the Company or any Guarantor under any other agreement and
(ii) neither the Company nor any Guarantor has entered into, or on or after the date of this Agreement will enter into, any agreement that is inconsistent with the rights granted to the Holders of Registrable Securities in this Agreement or
otherwise conflicts with the provisions hereof. 
 (b) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless the Company and the Guarantors have obtained the written consent of
Holders of at least a majority in aggregate principal amount of the outstanding Registrable Securities affected by such amendment, modification, supplement, waiver or consent; provided, that no amendment, modification, supplement, waiver or
consent to any departure from the provisions of Section 5 hereof shall be effective as against any Holder of Registrable Securities unless consented to in writing by such Holder. Any amendments, modifications, supplements, waivers or consents
pursuant to this Section 6(b) shall be by a writing executed by each of the parties hereto. 
  

 -18- 

 (c) Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, registered first-class mail, telex, telecopier, or any courier guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such Holder to the Company by means of a notice
given in accordance with the provisions of this Section 6(c), which address initially is, with respect to the Initial Purchasers, the address set forth in the Purchase Agreement; (ii) if to the Company and the Guarantors, initially at the
Company’s address set forth in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(c); and (iii) to such other persons at their respective addresses
as provided in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(c). All such notices and communications shall be deemed to have been duly given: at the
time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt is acknowledged, if telecopied; and on the next Business Day if timely
delivered to an air courier guaranteeing overnight delivery. Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee, at the address specified in the Indenture.

 (a) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors, assigns
and transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders; provided that nothing herein shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement or the Indenture. If any transferee of any Holder shall acquire Registrable Securities in any manner, whether by operation of law or otherwise, such Registrable Securities
shall be held subject to all the terms of this Agreement, and by taking and holding such Registrable Securities such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement
and such Person shall be entitled to receive the benefits hereof. The Initial Purchasers (in their capacity as Initial Purchasers) shall have no liability or obligation to the Company or the Guarantors with respect to any failure by a Holder to
comply with, or any breach by any Holder of, any of the obligations of such Holder under this Agreement. 
 (b) Third Party
Beneficiaries. Each Holder shall be a third party beneficiary to the agreements made hereunder between the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such
agreements directly to the extent it deems such enforcement necessary or advisable to protect its rights or the rights of other Holders hereunder. 

(c) Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier, facsimile, email
or other electronic transmission (i.e., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement. 
  

 -19- 

 (d) Headings. The headings in this Agreement are for convenience of reference only,
are not a part of this Agreement and shall not limit or otherwise affect the meaning hereof. 
 (e) Governing Law. This
Agreement, and any claims, controversy or dispute arising under or related to this Agreement, shall be governed by and construed in accordance with the laws of the State of New York without regard to conflict of law principles that would result in
the application of any laws other than the laws of the State of New York. 
 (f) Entire Agreement; Severability. This
Agreement contains the entire agreement between the parties relating to the subject matter hereof and supersedes all oral statements and prior writings with respect thereto. If any term, provision, covenant or restriction contained in this Agreement
is held by a court of competent jurisdiction to be invalid, void or unenforceable or against public policy, the remainder of the terms, provisions, covenants and restrictions contained herein shall remain in full force and effect and shall in no way
be affected, impaired or invalidated. The Company, the Guarantors and the Initial Purchasers shall endeavor in good faith negotiations to replace the invalid, void or unenforceable provisions with valid provisions the economic effect of which comes
as close as possible to that of the invalid, void or unenforceable provisions. 
  

 -20- 

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

			
	ROSETTA RESOURCES INC.
		
	By:	 	 /s/ Michael J. Rosinski

	Name:	 	Michael J. Rosinski
	Title:	 	Executive Vice President,
		 	Chief Financial Officer and Treasurer
	
	ROSETTA RESOURCES OFFSHORE, LLC,
		
	By:	 	 /s/ Michael J. Rosinski

	Name:	 	Michael J. Rosinski
	Title:	 	Executive Vice President,
		 	Chief Financial Officer and Treasurer
	
	ROSETTA RESOURCES HOLDINGS, LLC,
		
	By:	 	 /s/ Michael J. Rosinski

	Name:	 	Michael J. Rosinski
	Title:	 	Executive Vice President,
		 	Chief Financial Officer and Treasurer
	
	ROSETTA RESOURCES OPERATING GP, LLC
		
	By:	 	 /s/ Michael J. Rosinski

	Name:	 	Michael J. Rosinski
	Title:	 	Executive Vice President,
		 	Chief Financial Officer and Treasurer

REGISTRATION RIGHTS AGREEMENT 

			
	ROSETTA RESOURCES OPERATING LP,
		
	By:	 	Rosetta Resources Operating GP, LLC,
		 	its general partner
		
	By:	 	 /s/ Michael J. Rosinski

	Name:	 	Michael J. Rosinski
	Title:	 	Executive Vice President,
		 	Chief Financial Officer and Treasurer
	
	ROSETTA RESOURCES GATHERING LP,
		
	By:	 	Rosetta Resources Operating LP,
		 	its general partner
		
	By:	 	Rosetta Resources Operating GP, LLC,
		 	its general partner
		
	By:	 	 /s/ Michael J. Rosinski

	Name:	 	Michael J. Rosinski
	Title:	 	Executive Vice President,
		 	Chief Financial Officer and Treasurer

REGISTRATION RIGHTS AGREEMENT 

 Confirmed and accepted as of the date first above written: 

 

			
	J.P. MORGAN SECURITIES INC.
	
	For itself and on behalf of the several Initial Purchasers
		
	By:	 	 /s/ P. Tosch

		 	Authorized Signatory

 REGISTRATION RIGHTS
AGREEMENT 

 Schedule 1 

Initial Purchasers 
 J.P.
Morgan Securities Inc. 
 BNP Paribas Securities Corp. 

Wells Fargo Securities, LLC 
 BMO Capital Markets
Corp. 
 Canaccord Adams, Inc. 
 Johnson
Rice & Company L.L.C. 
 Mitsubishi UFJ Securities (USA), Inc. 

US Bancorp Investments, Inc. 

 Annex A 

Counterpart to Registration Rights Agreement 

The undersigned hereby absolutely, unconditionally and irrevocably agrees as a Guarantor (as defined in the Registration Rights
Agreement, dated as of April 15, 2010 by and among Rosetta Resources Inc., a Delaware corporation, the guarantors party thereto and J.P. Morgan Securities Inc., on behalf of itself and the other Initial Purchasers) to be bound by the terms and
provisions of such Registration Rights Agreement. 
 IN WITNESS WHEREOF, the undersigned has executed this counterpart as of
                            . 

 

			
	[NAME]
		
	By:	 	  

	Name:	 	
	Title:Prepared and filed by St Ives Burrups

Exhibit
        10.18

DEVELOPMENT AGREEMENT

between

LUCENT TECHNOLOGIES INC.

and

mPHASE TECHNOLOGIES, INC.

Effective as of February
      3, 2004

Relating to Micro-Power Source Arrays Fabricated

Using Nanotextured, Superhydrophobic Materials

 

 
Back to Contents

DEVELOPMENT AGREEMENT

TABLE OF CONTENTS

ARTICLE I- DEVELOPMENT PROJECT

	1.01	
Scope of Development Project	3
	1.02	
 Cost of Development Project	4

ARTICLE II- INTELLECTUAL PROPERTY

	2.01	
Existing Intellectual Property	4
	2.02	
Rights in Developed Information	4
	2.03	
Rights in Inventions	5
	2.04	
Patent Licenses	7
	2.05	
Licenses to Technology	8
	2.06	
Co-Branding	9
	2.07	
No Other Licenses	9

ARTICLE III – TERM AND
TERMINATION

	3.01	Termination	10
	3.02	Survival	10

 ARTICLE
IV- PROTECTION OF INFORMATION

	4.01	
Lucent and Company Confidential Information	10
	4.02	
Joint Information	12
	4.03	
Exceptions to Confidentiality	12
	4.04	
Export Control	13
	4.05	
Restricted Information	13

ARTICLE V – MISCELLANEOUS
PROVISIONS

	5.01	Compliance with Rules
    and Regulations and Indemnification	14
	5.02	Agreement Prevails	15
	5.03	Accuracy	15
	5.04	Nothing Construed	15
	5.05	Disclaimer	15
	5.06	Addresses	16
	5.07	Integration	16
	5.08	Nonassignability	17
	5.09	Choice of Law	17
	5.10	Agreement Confidentiality	17

      

 

 
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	5.11	
Dispute Resolution	18
	5.12	
Relationship Between Parties	19
	5.13	
Force Majeure	19
	5.14	
Headings	19
	5.15	
Waiver	20
	5.16	
Severability	20
	5.17	
Execution In Counterparts	20
	5.18	
Payments and Taxes	20
	5.19	
Non-Solicitation	21

APPENDIX
A – DEFINITION

APPENDIX B1 – STATEMENT
OF WORK

APPENDIX B2 – Cost of
Development Project

APPENDIX B3 – Royalties

APPENDIX C1 – Lucent
Patents and/or Patent Applications

APPENDIX C2 – mPhase
Patents and/or Patent Applications

2

 
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mPhase Technologies, Inc.
      DEVELOPMENT AGREEMENT

DEVELOPMENT AGREEMENT

THIS DEVELOPMENT AGREEMENT (“Agreement”), effective as of February_____, 2004 (“Effective Date”), is made by and between Lucent Technologies Inc., a Delaware corporation, with offices located at 600 Mountain Avenue, Murray Hill, New Jersey 07974-0636 (“Lucent”) and mPhase Technologies Inc., a New Jersey corporation, with offices located at 587 Connecticut Avenue, Norwalk, CT 06854 (“Company”).  Lucent and Company are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.
The Parties agree as follows:

ARTICLE I

DEVELOPMENT PROJECT

	1.01	
Scope of Development Project

The Parties shall, during the Development Period, use reasonable efforts to work cooperatively with each other in order to perform the Development Project described in the Statement of Work in Appendix B1 pursuant to the schedule contained therein.  This initial Statement of Work in Appendix B1 relates to development of a detailed and comprehensive plan that would help shape the technical direction of one or more subsequent SOWs to develop the Licensed Product.  Subsequent SOWs may cover one or more of the following:

	 	•	Research and development relating to micro-power cell arrays
employing nanotextured, superhydrophobic materials;
	 	•	Research and development pertaining to electrolyte chemistry of the battery to produce tunable power level power cells of various voltages and durations;
	 	•	Research and development pertaining to semiconductor technology interconnections needed to activate tunable arrays of micro power cells;
	 	•	Development of any of the associated critical packaging technologies to commercially develop the Licensed Product; and
	 	•	A working prototype of the Licensed Product that can be demonstrated (on a timeframe to be mutually agreed on) to external customers.   

During the course of the Development Project, it is anticipated that Developed Information will be produced by the Parties.  Developed Information may include Technical Information, Hardware and/or Software.  Representatives for Lucent and Company shall meet as needed, either in person or by telephone, to evaluate and discuss the progress of the Development Project.  The parties may, from time to time, agree upon additional statements of work that will likewise be appended to and become a part of this Agreement.

	*

    	 Any term in capital letters
          which is defined in Appendix A – Definitions shall have the meaning
          specified therein.

    

 

3

 
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mPhase Technologies, Inc.
      DEVELOPMENT AGREEMENT

	1.02	Cost of Development Project

The cost of the Development Project to be paid by Company to Lucent are set forth in Appendix B2.

ARTICLE II

INTELLECTUAL PROPERTY

	2.01	Existing Intellectual Property

     Except
    as provided in Sections 2.04 and 2.05 below, all right, title and interest
    in and to inventions, patents, works of authorship, trade secrets, know-how
    or any other intellectual property existing prior to the Effective Date of
    this Agreement shall remain vested in the Party which owns it immediately
prior to the Effective Date. 

	2.02	Rights in Developed Information

     (a) Except as specifically provided otherwise in this Agreement, all works of authorship, trade secrets, know-how or any other intellectual property first created and reduced to tangible, recordable or permanent form, solely by employees, contractors, consultants or agents of one Party during the Development Period and as a direct result of work performed under this Agreement, shall be termed “Developed Information” and
shall be owned solely by that Party.

     (b)
    Except as specifically provided otherwise in this Agreement, all Developed
    Information created jointly by one or more employees, contractors, consultants
    or agents of one Party working in conjunction with one or more employees,
    contractors, consultants or agents of the other Party during the Development
    Period, and as a direct result of work performed under this Agreement, shall
    be owned jointly by both Parties. Subject to the provisions of Sections 4.01
    and 4.02, each Party shall have the right to grant nonexclusive licenses
    under jointly owned Developed Information, and each Party hereby consents
    to the granting of such licenses by the other Party. Royalties that each
    Party receives for granting licenses under jointly owned Developed Information
shall be subject to the provisions of Appendix B3. 

     (c)
    Notwithstanding Sections 2.02(a) and 2.02 (b), Developed Information shall
    not include (a) the portion of Lucent Information that is defined in Section
    2.01 above or (b) the portion of Company Information that is defined in Section
2.01 above. 

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     (d)
      Nothing contained in this Agreement shall preclude either party from including
      Developed Information in a patent application for a sole invention as described
in Section 2.03(a) or for a joint invention as described in Section 2.03(b).

	2.03	Rights in Inventions

(a) Sole Inventions 

     (i)
    All right, title and interest in and to inventions created solely by a Party
    during the Development Period and arising out of the Development Project,
    which inventions are not made jointly with employees, contractors, consultants
    or agents of the other Party, shall remain vested in the Party which created
it. 

     (ii)
    Either Party may file patent applications for its sole inventions, but neither
    Party shall be required to file such patent applications, secure any patent
or maintain any patent.

(b) Joint Inventions 

     (i)       For purposes of this Agreement, a Joint Invention shall mean any invention made by one or more of Lucent’s employees, contractors, consultants or agents working on the Development Project jointly with one or more of Company’s
    employees, contractors, consultants or agents, which Joint Invention is first
conceived or first actually reduced to practice during the Development Project.

     (ii)       The
following provisions shall apply only with respect to any Joint Invention:

	 	(A)	
 Lucent shall have the first right to file a patent application in the United States on such Joint Invention and it shall notify Company whether it elects to file such application either before or at the time the development project is complete.  

	 	 	 
	 	(B)	
 Company shall have the right to file a patent application in the United States on such Joint Invention in any case in which Lucent does not elect to file pursuant to Section 2.05(ii)(A) hereof.

	 	 	 
	 	(C)	
 The Party that elects to file a patent application on such Joint Invention in the United States shall have the first right of election to file a corresponding patent application in each foreign country or, where applicable, community of countries.  Such Party shall notify the other Party of those foreign countries, if any, in which it elects to file such patent applications.  The other Party shall have the right to file patent applications on such Joint Inventions in all other foreign countries.

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	 	(D)	
 The expenses for preparing, filing and prosecuting each application, and for issue of the respective patents, shall be borne by the Party which prepares and files the application, except that expenses associated with official patent office fees, taxes, annuities and translation costs, if applicable, shall be equally divided between Lucent and Company, and paid as specified in Section 2.03(b)(ii)(E).  The other Party shall have the right to review and comment on each such application prior to its filing, and shall furnish the filing Party with all documents, information, or other assistance that may be necessary for the preparation, filing and prosecution of each such application.

	 	 	 
	 	(E)	
 In the case of an application for patent that is filed in a country that requires the translation of the application or payment of taxes, maintenance fees or annuities on a pending application or on an issued patent, the Party that files the application shall pay such taxes, maintenance fees or annuities on the pending application or the issued patent and shall invoice the other Party for one-half (1/2) of all such expenses, which shall be payable by the other Party within thirty (30) days of the invoice.

	 	 	 
	 	(F)	
 In the event that a Party does not wish to pay its share of expenses associated with a patent application or an issued patent in any country as specified in Section 2.03(b)(ii)(D), such Party shall notify the other Party in writing of its refusal to share in such expenses, and shall assign all its right, title and interest in such patent application or issued patent in such country to the other Party, subject to existing licenses and rights granted by such Party to third parties.  Concurrent with the execution by such Party of all necessary documents associated with such an assignment, the other Party shall grant to the Party and its Subsidiaries personal, non-transferable, nonexclusive, royalty-free, licenses (with no sublicensing rights) under such patent
application or issued patent to make, have made, use, lease, sell, offer for sale and import the Licensed Product.  

	 	 	 
	 	 (G)	
 Subject to the provisions of Section 2.03(b)(ii)(F), the Parties shall each have an equal title interest in each application and patent for such Joint Inventions, with Company holding an undivided one-half (1/2) interest and Lucent holding an undivided one-half (1/2) interest.

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	 	(H)	
 Subject to the provisions of Section 2.03(b)(ii)(F), each Party shall have the right to grant nonexclusive licenses under applications and patents covering such Joint Inventions, and each Party hereby consents to the granting of such licenses by the other Party.  Each Party shall have the right to retain all royalties that it receives for granting licenses, without accounting therefor to the other Party. 

	 	 
	2.04	Patent Licenses

     (a)      Upon
    payment of the applicable fees as set forth in Appendix B3 and subject to
    the provisions of this Agreement, Lucent hereby grants to Company during
    the License Term, a personal, non-transferable (except as permitted in Section
    5.08) and non-exclusive license (without any right to sublicense) under (a)
    patents and/or patent applications listed in Appendix C, (b) patents on sole
    inventions (as defined in Section 2.03(a) owned by Lucent, to (i) perform
    the Development Project during the Development Period, and (ii) to make,
have made, use, lease, sell, offer to sell and import Licensed Product. 

     (b)      Upon
    payment of the applicable fees as set forth in Appendix B3 and subject to
    the provisions of this Agreement, Company hereby grants to Lucent during
    the License Term, a personal, non-transferable (except as permitted in Section
    5.08) and non-exclusive license (without any right to sublicense) under (a)
    patents and/or patent applications listed in Appendix C2, (b) patents on
    sole inventions (as defined in Section 2.03(a) owned by Company, to (i) perform
    the Development Project during the Development Period, and (ii) to make,
have made, use, lease, sell, offer to sell and import Licensed Product.

     (c)      Licenses
    granted pursuant to Sections 2.04(a) and 2.04(b) are not to be construed
    either (i) as consent by the licensor to any act which may be performed by
    licensee, except to the extent impacted by a patent licensed herein to licensee,
    or (ii) to include licenses to contributorily infringe or induce infringement
under U.S. law or a foreign equivalent thereof.

     (d)
    Each Party agrees, upon written request of the other Party, to grant to third
    parties, personal, non-transferable and non-exclusive patent licenses (without
    any right to sublicense) of similar scope as the licenses set forth in Sections
    2.04(a) and (b) above, if such third parties are licensees of Developed Information
    belonging to the requesting Party. Such third-party licenses shall be limited
    to (a) the manufacture of Licensed Products by the third party and/or contract
    manufacturers in the factories of the third party and/or contract manufacturers,
    or (b) the sale of Licensed Products by the third party. Such licenses will
    be governed by a separate patent license agreement between the third party
    and the Party granting the license, such agreement to contain reasonable
    and non-discriminatory terms and conditions, including license fees not to
exceed five (5%) percent of the Fair Market Value of the Licensed Products. 

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	2.05	Licenses to Technology

     (a)
      Upon payment of the applicable fees as set forth in Appendix B3 and subject
      to the provisions of this Agreement, Lucent hereby grants to Company during
      the License Term a personal, nontransferable (except as permitted in Section
      5.08) and nonexclusive, worldwide rights to use and/or copy (a) Lucent
      Information and (b) any Developed Information solely owned by Lucent, (i)
      for the purpose of conducting the Development Project, (ii) for the manufacture
      of Licensed Products either (A) by Company in the factories of Company,
      or (B) by Contract Manufacturers for Company, and (iii) for the sale of
Licensed Products by Company. 

     (b)
    The rights granted to Company pursuant to Section 2.05(a) may be sublicensed
    by Company to third parties only upon written consent from Lucent, which
    consent will not be unreasonably withheld. Any such sublicense shall contain
    terms and conditions mutually agreed upon by the Parties, and shall be subject
    to payment of applicable fees and royalties to Lucent, as set forth in Section
B1 in Appendix B3. 

     (c)
    Upon payment of the applicable fees as set forth in Appendix B3 and subject
    to the provisions of this Agreement, Company hereby grants to Lucent during
    the License Term a personal, nontransferable (except as permitted in Section
    5.08) and nonexclusive, worldwide rights to use and/or copy (a) Company Information
    and (b) any Developed Information solely owned by Company, (i) for the purpose
    of conducting the Development Project, (ii) for the manufacture of Licensed
    Products either (A) by Lucent in the factories of Lucent, or (B) by Contract
    Manufacturers for Lucent, and (iii) for the sale of Licensed Products by
Lucent.

      (d)
    The rights granted to Lucent pursuant to Section 2.05(c) may be sublicensed
    by Lucent to third parties only upon written consent from Company, which
    consent will not be unreasonably withheld. Any such sublicense shall contain
    terms and conditions mutually agreed upon by the Parties, and shall be subject
    to payment of applicable fees and royalties to Company, as set forth in Section
B2 of Appendix B3. 

     (e)     After the expiration of the Development Period, but during the License Term, Lucent’s
Bell Labs Research Nanotechnology Lab personnel may make improvements to the
nanotextured, superhydrophobic materials in the Licensed Product. Lucent, at
its sole discretion, may disclose these improvements to Company during a mutually
agreed upon semi-annual review between the Parties, and make same available to
Company pursuant to terms and conditions as set forth in Sections 2.05(a) and
2.05(b).

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    (f)     After
the expiration of the Development Period, but during the License Term, Company
personnel may make improvements to the Licensed Product. Company, at its sole
discretion, may disclose these improvements to Lucent during a mutually agreed
upon semi-annual review between the Parties, and make same available to Lucent
pursuant to terms and conditions as set forth in Sections 2.05(c) and 2.05(d)

	 	 
	2.06	
Co-Branding

     The
    Parties agree to negotiate in good faith with respect to a possible co-branding
agreement relating to the use of Lucent branding for Licensed Products.

	2.07	No Other Licenses

     (a)     
    No right is granted herein to either Party to use any identification (such
    as, but not limited to, trade names, trademarks, service marks or symbols,
    and abbreviations, contractions or simulations thereof) owned by or used
    to identify the other Party or any of its Subsidiaries or any of its or their
    products, services or organizations, and that, with respect to the subject
    matter of this Agreement, each Party agrees it will not without the express
    written permission of the other Party (i) use any such identification in
    advertising, publicity, packaging, labeling or in any other manner to identify
    itself or any of its products, services or organizations; or (ii) represent
    directly or indirectly that any product, service or organization of the receiving
    Party is a product, service or organization of the other Party or any of
    its Subsidiaries, or that any product or service of such Party is made in
    accordance with or utilizes any information of the other Party or any of
its Subsidiaries.

     (b)     Except as expressly set forth herein, no other right or license is either granted or implied by either party to the other with respect to any technical or business information, or with respect to rights in any patents, trademarks, copyrights, trade secrets, mask work protection rights, and other intellectual property. Company further understands and agrees that no rights or licenses under any third party information, software or intellectual property is being furnished or granted by Lucent hereunder and it shall be Company’s
sole responsibility to procure any such rights or licenses (even if such a right
or license is necessary to exercise the rights expressly
granted herein).

 

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ARTICLE III

TERM AND TERMINATION

	3.01	Termination

      

     (a)     If
    a Party fails to fulfill one or more of its material obligations or fails
    to perform or observe any material term or condition under this Agreement,
    the other Party may, upon its election and in addition to any other remedies
    that it may have, at any time terminate this Agreement by not less than thirty
    (30) days written notice to the Party specifying any such breach, subject
    to 3.02 below unless within the period of such notice, or such longer period
    as the Parties may agree, all breaches specified therein shall have been
remedied. 

     (b)     After
    payment of the initial non-refundable payment specified in Appendix B2, either
    Party may terminate this Agreement for convenience upon thirty (30) days
    written notice to the other Party, subject to 3.02 below. Within such thirty-day
    period, the Parties shall meet and agree on a commercially reasonable wind
    up of the Development Project, including but not limited to delivery of completed
    (or partial) deliverables, and payment to Lucent for non-refundable costs
and expenses incurred. 

	3.02	Survival

The rights and obligations of Lucent and Company in Sections 2.01 through 2.06, 4.01, 4.02, 4.03, 4.04, 5.09, 5.10 and 5.11), shall survive and continue after any such termination of this Agreement.

ARTICLE IV

PROTECTION OF INFORMATION

	4.01	Lucent and Company Confidential
    Information

(a)  Company and Lucent agree that:

	 	(i)	
 Company will not use any of Lucent Information, and that Lucent will not use any of Company Information except as authorized herein;

	 	(ii)	
 Company shall hold all of Lucent Information and Lucent shall
hold all of Company Information in confidence, and neither Party shall make any
disclosure of any or all of such other Party’s information to anyone, except
to its employees, contractors, consultants and agents who have a need to know,
and to any others to whom such disclosure may be expressly authorized hereunder
and is necessary to implement the use authorized hereunder, and that each Party
shall appropriately notify each person to whom any such disclosure is made that
such disclosure is made in confidence and shall be kept in confidence by such
person, and each Party shall keep a list of each person to who any such disclosure
is made; 

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	 	(iii)	
 the receiving Party will not, without the disclosing Party’s express written permission, reverse engineer any of the furnished Lucent Information or Company Information;
	 	 	 
	 	(iv)	
 the receiving Party will not, without the disclosing Party’s express written permission, make or have made, or permit to be made, more copies of any of the furnished Lucent Information or Company Information than are necessary for its use hereunder, and that each such copy shall contain the same proprietary notices or legends that appear on the furnished Lucent Information or Company Information being copied;
	 	 	 
	 	(v)	
 all of Lucent Information shall remain the property of Lucent, and upon termination of this Agreement, Company shall, at Lucent’s written request, immediately cease all use of Lucent Information and shall, as directed by Lucent, promptly destroy or deliver to Lucent each and every part specified by Lucent of Lucent Information then under Company or its Subsidiaries’ control; 
	 	 	 
	 	(vi)	
 all of Company Information shall remain the property of Company, and upon termination of this Agreement , Lucent shall, at Company written request, immediately cease all use of Company Information and shall, as directed by Company, promptly destroy or deliver to Company each and every part specified by Company of Company Information then under Lucent’s or its Subsidiaries’ control; and
	 	 	 
	 	(vii)	
 if this Agreement is terminated by a Party for breach prior to completion of the Development Project, then: (i) the terminating Party may retain and use, in accordance with the terms and conditions of this Agreement, Company Information or Lucent Information, as appropriate, for a period of  six (6) months from the date of termination, and (ii) the breaching Party shall, at the terminating Party’s written request, immediately cease all use Company Information or Lucent Information, as appropriate, and shall, as directed by the terminating Party, promptly destroy or deliver to the terminating Party each and every part specified by the terminating Party of Company Information or Lucent Information, as appropriate, then under the breaching Party’s or
its Subsidiaries’ control.

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	4.02	Joint
Information

(a)  During the course of the
    Development Project, the Parties will maintain a list of Developed Information
    that is jointly owned pursuant to Section 2.02(b). All such Developed Information
    that is jointly owned shall, if in written or other tangible form, be marked “PROPRIETARY LUCENT-mPHASE” and
    shall be maintained confidential by both Parties. All such Developed Information
    that is jointly owned, if in intangible form shall be reduced to a written
or other tangible form within thirty (30) days and marked accordingly.

(b) Each Party may license the Joint Information, or any portion thereof, to a third party without the permission of the other party, provided that (i) such third party agrees to confidentiality provisions for the Joint Information which are not less restrictive than the provisions herein, and (ii) royalties are paid by the licensing Party in accordance with Appendix B3, Sections B1(b) and B2(b) and B2(c), as applicable .

(c) The Parties agree not to release any information regarding the existence or content of this Agreement, except as required by law. The Parties may discuss the possibility of issuing a joint press release(s) regarding the relationship contemplated by this Agreement. However, each of the Parties must agree in writing on the content and timing of such joint press release; provided, neither party shall be under any obligation to agree to any joint press release, each party being entitled to refuse, for any reason or no reason at all, with or without cause, to agree to the issuance of such joint press release.

	4.03	Exceptions to Confidentiality

Notwithstanding the provisions of Sections 4.01 or 4.02, neither Party shall be required to restrict use and/or disclosure with respect to portions of Lucent Information, Company Information or the Joint Information, if any:

	 	(i) 	
 that are independently developed by the receiving Party, solely by personnel with no access to such portions furnished under this Agreement to the receiving Party; 
	 	(ii) 	
 that are lawfully received from another source having the right to so furnish such portions without breach of this Agreement; 
	 	(iii) 	
 that have become generally known to the public, provided that such public knowledge was not the result of any breach of this Agreement attributable to the receiving Party; 

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	 	(iv) 	
 that at the time of furnishing to the receiving Party was known to the receiving Party as evidenced by documentation or other evidence available to the receiving Party; 
	 	 	 
	 	(v) 	
 that the disclosing Party otherwise explicitly agrees in writing need not be kept confidential; or
	 	 	 
	 	(vi)	
 that is disclosed pursuant to governmental or judicial order or request provided that the Party receiving such request or order shall, whenever practicable, promptly notify the other Party and shall reasonably cooperate with the other Party in contesting such disclosure or in obtaining confidential treatment of any disclosed information (at the other Party’s sole cost and expense).

	 	 
	4.04	Export Control

Each Party hereby assures the other that it will not without a license or license exception authorized by the Bureau of Export Administration of the U.S. Department of Commerce, Washington, D.C. 20230, United States of America, if required:

	 	(i)	
 export or release any Deliverables (Technical Information or Software, including source code) obtained pursuant to this Agreement to a national of Country Groups D:1 or E:2 (15 C.F.R. Part 740, Supp. 1), Iran, Iraq, Serbia, Sudan, or Syria; or
	 	 	 
	 	(ii)	
 export to Country Groups D:1 or E:2, or to Iran, Iraq, Serbia, Sudan, or Syria, the direct product (including processes and services) of the Technical Information or Software; or
	 	 	 
	 	(iii)	
 if the direct product of the Technical Information is a complete plant or any major component of a plant, export to Country Groups D:1 or E:2, or to Iran, Iraq, Serbia, Sudan, or Syria, the direct product of the plant or major component.

This assurance will be honored even after the expiration or termination of this Agreement.

	4.05	
Restricted Information

The parties agree that certain Lucent Information, Company Information and/or Joint Information may be particularly valuable and warrant additional protection above and beyond that afforded to confidential information.  Accordingly, upon mutual agreement, such specific Lucent Information, Company Information and/or Joint Information will be designated as Restricted Information.  The parties agree that Restricted Information shall NOT be distributed electronically, that all copies of the Restricted Information shall bear a sequential serial number, and that a log will be maintained by each Party containing the location and recipient of each copy of each item of Restricted Information under the control of that Party.   

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ARTICLE V

MISCELLANEOUS PROVISIONS

	5.01	Compliance with Rules
    and Regulations and Indemnification

(a)      Company personnel shall, while on any location of Lucent in connection with the Development Project, comply with Lucent’s rules and regulations with regard to safety and security.  Lucent shall inform such personnel of such rules and regulations.  Company shall have full control over such personnel and shall be entirely responsible for their complying with Lucent’s rules and regulations.  Company agrees to indemnify and save Lucent harmless from any claims or demands, including the costs, expenses and reasonable attorneys’ fees incurred on account thereof, that may be made by (i) anyone for injuries to persons or damage to property to the extent they arise in connection with this
Agreement and result from the willful misconduct or negligence of Company personnel; or (ii) Company personnel under Worker’s Compensation or similar laws.  Company agrees to defend Lucent, at Lucent’s
request, against any such claim or demand.

(b)     Lucent’s personnel shall, while on any location of Company, in connection with the Development Project, comply with Company rules and regulations with regard to safety and security.  Company shall inform such personnel of such rules and regulations.  Lucent shall have full control over such personnel and shall be entirely responsible for their complying with Company rules and regulations.  Lucent agrees to indemnify and save Company harmless from any claims or demands, including the costs, expenses and reasonable attorneys’ fees incurred on account thereof, that may be made by (i) anyone for injuries to persons or damage to property to the extent they arise in connection with this
Agreement and result from the willful misconduct or negligence of Lucent’s personnel; or (ii) Lucent’s personnel under Worker’s
Compensation or similar laws. Lucent agrees to defend Company, at Company request,
against any such claim or demand.

(c)     Each Party shall be solely responsible for (i) its personnel’s
    remuneration, travel, living and other local expenses, and (ii) payment of
    all federal, state, social security and other payroll taxes in respect of
    its personnel, including contributions from them when required by the law
    of the country or any political subdivisions thereof in which such personnel
is employed by such Party.

(d)     Lucent
    and Company shall, at all times, each retain the administrative supervision
of their respective personnel.

 

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(e)     Lucent
    and Company contemplate the provision of a mutually agreed upon reasonable
    amount of technical assistance or training services, some of which may be
    provided in countries outside of the United States. Company shall pay all
    travel and living expenses incurred by Lucent personnel in connection with
    such technical assistance or training services.

5.02   Agreement Prevails

This Agreement shall prevail in the event of any conflicting terms or legends that may appear on Lucent Information or Company Information or Joint Information. 

5.03    Accuracy

Lucent believes that Lucent Information is true and accurate, and Company believes that Company Information is true and accurate, but neither Lucent nor Company nor their respective Subsidiaries shall be held to any liability for errors or omissions therein.

5.04    Nothing Construed

Neither the execution of this Agreement nor anything in it or in Lucent Information or in Company Information shall be construed as:

	 	(i)	
 an obligation upon either Party or their Subsidiaries to furnish, except as expressly provided in this Agreement, any assistance of any kind whatsoever, or any products or information other than Company or Lucent Information or to revise, supplement or elaborate upon such information; or

	 	 	 
	 	(ii)	
 providing or implying any arrangement or understanding, except to the extent set forth in this Agreement, that either Party or its Subsidiaries will make any purchase or lease from, or enter into any contract or other business arrangement with, the other Party or its Subsidiaries.

5.05    Disclaimer

(a)     The Parties acknowledge that the Development Project is a research-related
activity and may not lead to a commercially viable Licensed Product. All Deliverables,
Lucent Information and other information furnished by Lucent under this Agreement
is furnished “AS IS” with all faults, latent and patent, and without
any warranty of any type. Notwithstanding the foregoing, Company and Lucent shall
test the Deliverables in order to determine that the Deliverables are in substantial
compliance with the Statement(s) of Work set forth in Appendix B.

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(b)     Lucent and its Subsidiaries make no representations
 or warranties, express or implied.  By way of example but not of limitation, Lucent and
  its Subsidiaries make no representations or warranties of merchantability or fitness for
   a particular purpose, or that the use of Deliverables, Lucent Information or other
   information will not infringe any patent or other intellectual property right.
     Lucent and its Subsidiaries shall not be held to any liability with respect to
	 any claim by Company or any third party on account of, or arising from, the use
	 of Deliverables, Lucent Information or other information furnished hereunder.

(c)     Neither
    Party or its Subsidiaries will under any circumstance, whether as a result
    of breach of contract, breach of warranty, delay, negligence, tort or otherwise,
    be liable to the other Party or to any third party for any consequential,
    incidental, special, punitive or exemplary damages and/or loss of profits
    or revenues of the other Party or any third party arising out of this Agreement,
    whether or not the applicable Party has been advised of the possibility of
such damages.

5.06    Addresses

     (a)
    Any notice or other communication hereunder shall be sufficiently given to
    Company when sent by certified mail addressed to mPhase Technologies Inc.,
    587 Connecticut Avenue, Norwalk, CT 06854, or to LUCENT when sent by certified
    mail addressed to Lucent Technologies, Inc. Attention: Contract Administrator
    Intellectual Property Business 2400 SW 145th Avenue, Monarch Lakes Office
    Park, Miramar, FL 33027. Changes in such addresses may be specified by written
notice.

      (b)
    Payments by the LICENSEE shall be made to LUCENT at Lucent Technologies,
    Inc., Account No.375 121 0670, Bank of America, P.O. Box 281547, Atlanta,
    Georgia 30384-1547 USA . Alternatively, payments to LUCENT may be made by
    bank wire transfers to LUCENT's account at Lucent Technologies Licensing,
    Account No.375 121 0670, Bank of America, 1401 Elm Street, Dallas, TX 75202
    USA , ABA Code: 111000012, SWIFT CODE: NABKUS4A. Changes in such address
or account may be specified by written notice.

5.07    Integration

This Agreement sets forth the entire Agreement and understanding between the Parties as to the subject matter hereof and merges all prior discussions and agreements between them.  Neither of the Parties shall be bound by any warranties, understandings, modifications or representations with respect to the subject matter hereof other than as expressly provided herein or in a writing signed with or subsequent to the execution hereof by an authorized representative of the Party to be bound thereby.

 

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5.08    Nonassignability

(a)     The Parties hereto have entered
into this Agreement in contemplation of personal performance, each by the other,
and intend that the licenses and rights granted hereunder to a Party not be extended
to entities other than such Party's Subsidiaries without the other Party's express
written consent. 

(b)     Notwithstanding Section 5.08(a), Lucent’s
    rights, licenses, obligations, title and interest in this Agreement may be
    assigned, but only after the conclusion of the Development Period, in whole
    or in part, to (i) any Subsidiary of Lucent; or (ii) any direct or indirect
    successor to all or any portion of the business of Lucent or its Subsidiaries,
    which successor shall thereafter be deemed substituted for Lucent as the
Party hereto, effective upon such assignment. 

(c)     Notwithstanding Section 5.08(a), Company’s
    rights, licenses, obligations, title and interest in this Agreement may be
    assigned, but only after the conclusion of the Development Period, in whole
    or in part, to (i) any Subsidiary of Company; (ii) any direct or indirect
    successor to all or any portion of the business of Company or its Subsidiaries,
    which successor shall thereafter be deemed substituted for Company as the
    Party hereto, effective upon such assignment, or (iii) to a third party,
    provided that Company first notifies Lucent of its intent to make such assignment,
    and that Company obtains consent from Lucent to the form of and terms contained
    in such assignment, which consent shall not
be unreasonably withheld by Lucent.

(d)     In the event of a Change of Control of Company after the end of the Development Project, Company’s
    rights, licenses, obligations, title and interest in this Agreement may be
    continued, provided that Company first notifies Lucent of its intent to make
    such Change of Control, and that Company obtains consent from Lucent to the
    form of and terms relating to such Change of Control, which consent shall
not be unreasonably withheld by Lucent. 

5.09    Choice of Law

The Parties agree that the law of the State of New York, exclusive of its conflict of laws provisions, shall apply in any dispute or controversy arising with respect to this Agreement.

5.10   Agreement Confidentiality

The terms, but not the existence, of this Agreement shall be treated as confidential information by the Parties, and no Party shall disclose such terms to any third party without the prior written consent of the other Party; provided however, that each Party may (i) represent to third parties that such Party is licensed as provided by this Agreement; (ii) disclose this Agreement and its terms to potential acquirers of, investors in or lenders to such Party (including any representatives of the parties in such transaction), or disclosures reasonably necessary in connection with the divestiture of all or any portion of a Party's respective businesses, provided such disclosure is made pursuant to a written confidentiality agreement binding upon such
potential acquirer, investor or lender which contains confidentiality obligations which are no less protective than at least the same degree of care the disclosing Party normally exercises to protect its own proprietary information of a similar nature; (iii) disclose this Agreement and its terms in any arbitration, mediation or other official dispute resolution procedure pursuant to a written confidentiality agreement binding upon the parties which contains confidentiality obligations which are no less protective than at least the same degree of care the disclosing Party normally exercises to protect its own proprietary of a similar nature; and (iv) disclose this Agreement and its terms which is requested pursuant to a judicial or governmental request, requirement or order under law,
provided that such Party provides the other Party with sufficient prior notice in order to contest such request, requirement or order or seek protective measures.  In addition, this Section shall not prevent a Party from making disclosures reasonably required by law or as required by a stock exchange.

 

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5.11   Dispute Resolution

(a)     If a dispute arises out of or relates to this Agreement, or the breach, termination or validity thereof, the Parties agree to submit the dispute to a sole mediator selected by the Parties or, at any time at the option of a Party, to mediation by the American Arbitration Association (“AAA”).
    If not thus resolved, it shall be referred to a sole arbitrator selected
    by the Parties within thirty (30) days of the mediation, or in the absence
    of such selection, to AAA arbitration before a sole arbitrator which shall
be governed by the United States Arbitration Act.

(b)     Any
    award made (i) shall be a bare award limited to a holding for or against
    a Party and affording such remedy as is deemed equitable, just and within
    the scope of the agreement; (ii) shall be without findings as to issues (including
    but not limited to patent validity and/or infringement) or a statement of
    the reasoning on which the award rests; (iii) may in appropriate circumstances
    (other than patent disputes) include injunctive relief; (iv) shall be made
    within four (4) months of the appointment of the arbitrator; and (v) may
be entered in any court.

(c)     The
    requirement for mediation and arbitration shall not be deemed a waiver of
    any right of termination under this Agreement and the arbitrator is not empowered
    to act or make any award other than based solely on the rights and obligations
of the Parties prior to any such termination.

 

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      DEVELOPMENT AGREEMENT

(d)     The
    arbitrator shall be knowledgeable in the legal and technical aspects of this
    Agreement and shall determine issues of arbitrability but may not limit,
    expand or otherwise modify the terms of this Agreement.

(e)     The
place of mediation and arbitration shall be New York City.

(f)     Each
    Party shall bear its own expenses but those related to the compensation and
expenses of the mediator and arbitrator shall be borne equally.

(g)     A
    request by a Party to a court for interim measures shall not be deemed a
waiver of the obligation to mediate and arbitrate.

(h)     The
    arbitrator shall have authority to award compensatory damages only. The arbitrator
    shall have no authority to award punitive or other damages , and each Party
irrevocably waives any claim thereto.

(i)     Except
    as required by law, the Parties, their representatives, other participants
    and the mediator and arbitrator shall hold the existence, content and result
of mediation and arbitration in confidence.

5.12   Relationship Between Parties

Neither Party to this Agreement shall have the power to accept purchase orders on behalf of the other, bind the other by any guarantee or representation that it may give, or to incur any debts or liabilities in the name of or on behalf of the other Party.  The Parties acknowledge and agree that nothing contained in this Agreement shall be deemed or construed to constitute or create between the Parties hereto a partnership, association, joint venture or other agency.    

5.13   Force Majeure

Neither Lucent nor Company shall be liable for any loss, damage, delay or failure of performance resulting directly or indirectly from any cause which is beyond its reasonable control, including but not limited to acts of God, extraordinary traffic conditions, riots, civil disturbances, wars, states of belligerency or acts of the public enemy, strikes, work stoppages, or the laws, regulations, acts or failure to act of any governmental authority.  In the event that performance under this Agreement is prevented for a continuous period of two (2) months or longer by any of the foregoing causes, either Party shall have the right to terminate this Agreement by giving written notice to the other Party.

5.14   Headings

Section and subsection headings contained in this Agreement are inserted for convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof. 

 

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5.15   Waiver

Except as specifically provided
    for herein, the waiver from time to time by a Party of any of their rights
    or their failure to exercise any remedy shall not operate or be construed
    as a continuing waiver of the same or of any other of such Party’s
rights or remedies provided in this Agreement.

5.16   Severability

If any term, covenant or condition of this Agreement or the application thereof to any Party or circumstances shall, to any extent, be held to be invalid or unenforceable, then the remainder of this Agreement, or the application of such term, covenant or condition to parties or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

5.17   Execution in Counterparts

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original (including facsimile copies), but all of which together shall constitute one and the same instrument.

5.18  Payments and Taxes 

(a)     Company
    shall pay all invoices rendered by Lucent, in U.S. dollars, within sixty
(60) days after receipt thereof, to the address specified in the invoice. 

(b)     Company
    shall bear all taxes, duties, levies and similar charges (and any related
    interest and penalties), however designated, imposed as a result of the existence
    or operation of this Agreement, except (i) any tax imposed upon Lucent in
    a jurisdiction other than the United States if such tax is allowable as a
    credit against the United States income taxes of Lucent; and (ii) any net
    income tax imposed upon Lucent by the United States or any governmental entity
    within the United States (the fifty (50) states and the District of Columbia).
    In order for the exception contained in (i) to apply, Company must furnish
    Lucent with evidence issued by the taxing authority in such jurisdiction
    that such tax has been paid. The evidence must be furnished within thirty
    (30) days of issuance by the taxing authority and must be sufficient to satisfy
United States taxing authorities that such tax has been paid.

(c)     If
    Company is required to bear a tax, duty, levy or similar charge pursuant
    to (a) above, Company shall pay such tax, duty, levy or similar charge and
    any additional amounts as are necessary to ensure that the net amounts received
    by Lucent hereunder after all such payments or withholdings equal the amounts
    to which Lucent is otherwise entitled under this Agreement as if such tax,
duty, levy or similar charge did not apply.

 

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5.19   Non-Solicitation

     During the Development Period and a period of one (1) year thereafter, neither Party will, directly or indirectly, employ, or solicit to employ or initiate contact with any employees of the other Party that are performing or may reasonably be expected to perform work in furtherance of the Development Project, for the purpose of inducing them to terminate their employment with the current employing Party, or to become employed by the other (non-employing) Party.  This restriction shall not apply to any employee whose employment with a Party is involuntarily terminated or who has retired in good standing from such Party.  The term "solicit to employ" shall not be deemed to include generalized searches for
employees through media advertisements, employment firms or otherwise, that are not focused on persons employed by a Party.  For purposes hereof, “employ” shall
include any employment, consultant, independent contractor, agent or similar
relationship.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed in duplicate originals by their duly authorized representatives on the respective dates entered below.
  	LUCENT TECHNOLOGIES INC.

    By: /s/ Jeffrey M. Jaffe

President of Research &

Advanced Technologies

    Date: 2/6/04	mPhase Technologies, Inc.

By: Ronald A. Durando

Name: Ronald A. Durando

Title: President

THIS AGREEMENT DOES NOT BIND OR OBLIGATE EITHER PARTY IN ANY MANNER UNLESS DULY EXECUTED BY AUTHORIZED REPRESENTATIVES OF BOTH PARTIES

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DEVELOPMENT AGREEMENT

APPENDIX A

DEFINITIONS

Change of Control means
    (a) any “person” (as such term is used in Sections 13(d) and 14(d)
    of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)),
    other than a trustee or other fiduciary holding securities of the Company
    under an employee benefit plan of the Company, becomes the “beneficial
    owner” (as
    defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly,
    of securities of the Company representing 50% or more of (A) the outstanding
    shares of common stock of the Company or (B) the combined voting power of
    the Company's then-outstanding securities;
  (b) the Company is party to a merger or consolidation, or series of related
    transactions, which results in the voting securities of the Company outstanding
    immediately prior thereto failing to continue to represent (either by remaining
    outstanding or by being converted into voting securities of the surviving
    or another entity) at least fifty (50%) percent of the combined voting power
    of the voting securities of the Company or such surviving or other entity
    outstanding immediately after such merger or consolidation; (c) the sale
    or disposition of all or substantially all of the Company's assets (or consummation
    of any transaction, or series of related transactions, having similar effect);
    (d) there occurs a change in the composition of the Board of Directors of
    the Company within a two-year period, as a result of which fewer than a majority
    of the directors are Incumbent Directors; (e) the dissolution
or liquidation of the Company; or (f) any transaction or series of related transactions
    that has the

substantial effect of any one or more of the foregoing.

Code means Object Code and Source Code, collectively.

Company Information means
    informative material, software, technical information or other information,
    owned by Company or any of its Subsidiaries, disclosed hereunder by Company
    that is marked as “confidential” or “proprietary” at the time of disclosure to Lucent or, if disclosed orally, is identified at the time of disclosure as “confidential” or “proprietary” and
    followed by a summary in writing provided by Company to Lucent within sixty
(60) days of the original disclosure.

Contract Manufacturer means a third party engaged by Company or Lucent, to manufacture Licensed Products intended for sale by Company or Lucent, as the case may be, to distributors and/or end users.  The selection of Contract Manufacturers shall be subject to mutual agreement.

Derivative Work shall mean (i) any work of authorship that is based, in whole or in part, upon one or more pre-existing works (e.g., the Lucent Information or the Deliverables), such as a revision, modification, translation, abridgment, condensation, expansion or any other form in which such pre-existing works may be recast, transformed or adopted and (ii) which, if prepared without authorization of the owner of the copyright in such pre-existing work, would constitute a copyright infringement. 

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      DEVELOPMENT AGREEMENT

Developed Information has the meaning set forth in Section 2.02.

Development Period means, unless otherwise mutually agreed in writing, the period commencing on the Effective Date of this Agreement and extending until completion of the last milestone of the Development Project unless terminated according to the provisions of Article III.  

Development Project means performance of the work set forth in the Statement(s) of Work in Appendix B, and the provision to Company of the Deliverables identified in Appendix B.

Documentation means all information, whether in human and/or machine-readable form, relating to Code, including but not limited to user manuals and materials useful for design (for example, logic manuals, flow charts, and principles of operation).

Fair Market Value means, with respect to any Licensed Product sold, leased or put into use, the greater of (i) the selling price which a seller would realize from an unaffiliated buyer in an arm's length sale of an identical product in the same quantity and at the same time and place as such sale, lease or putting into use; or (ii) the selling price actually obtained for such Licensed Product in the form in which it is sold, whether or not assembled (and without excluding therefrom any components or subassemblies thereof which are included in such selling price).

Joint Information means
    any newly developed manufacturing process information, product, service,
    software, technical information or other information that is developed while
    doing work specific to the Development Project by a contribution of one or
    more of one Party’s employees, agents or consultants jointly with one or more of the other Party’s
    employees, agents or consultants during the Development Period. The term
    does not mean and does not include any existing intellectual property, product
    or underlying information of a Party developed prior to the Effective Date
    of this Agreement or during the term of this Agreement solely by or on behalf
of Lucent or Company.

Joint Invention shall have the meaning assigned in Section 2.04(b)(i) hereto.

License Term means the period beginning on the Effective Date and ending on the later of (a) ten (10) years after the Effective Date, or (b) upon the expiration of the last patent to which the license granted pursuant to Section 2.04 applies.  

Licensed Product means a micro-power source array fabricated using materials having nanotextured superhydrophobic surfaces.

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mPhase Technologies, Inc.
      DEVELOPMENT AGREEMENT

Lucent Information means
    informative material, Software, Technical Information or other information,
    owned by Lucent or any of its Subsidiaries, disclosed hereunder by Lucent
    that is marked as “confidential” or “proprietary” at the time of disclosure to Company or, if disclosed orally, is identified at the time of disclosure as “confidential” or “proprietary” and
    followed by a summary in writing provided by Lucent to Company within sixty
(60) days of the original disclosure.

Lucent Intellectual Property shall
    mean, collectively, any copyright or trade secret (but not Lucent Patents)
    in which Lucent, as of the Effective Date, owns and has the right to grant
    any licenses of the type herein granted by Lucent, but only to the extent
    of such right, and (i) which is specific to the Deliverables as furnished
    hereunder and (ii) but for the licenses granted herein is unavoidably and
    necessarily infringed by Customer’s implementation and use of the Deliverables.

Object Code means code in machine-readable form generated by compilation, assembly or other translation of Source Code and contained in a medium which permits it to be loaded into and operated on by a processor.

Revenue means the money (or other compensation) received from the sale or lease of Licensed Products that incorporate the Developed Information less (a) the amount of any refund to, or credit to the account of, any customer because of rejection or return of Licensed Products by the customer; and (b) customary charges incurred for such items as taxes, freight-out and trade discounts. 

Software meansCode and associated Documentation that is identified in Appendix B and intended by the Parties to be included in the Deliverables.

Source Code means code in any programming language contained in any format, including human and machine-readable formats, such code including all comments and procedural code plus all related development documents such as, but not limited to, flow charts, schematics, statements of principles of operations or any other specifications.

Subsidiary of a company means a corporation or other legal entity (i) the majority of whose shares or other securities entitled to vote for election of directors (or other managing authority) is now or hereafter controlled by such company either directly or indirectly; or (ii) that does not have outstanding shares or securities but the majority of whose ownership interest representing the right to manage such corporation or other legal entity is now or hereafter owned and controlled by such company either directly or indirectly; but any such corporation or other legal entity shall be deemed to be a Subsidiary of such company only as long as such control or ownership and control exists. 

Technical Information means all documented informative material (excluding patents and patent applications and excluding Code), including without limitation, Documentation, technical memoranda, technical reports, data and drawings of whatever kind in whatever tangible medium, specifications, tangible know-how, processes, manuals, instructions, directories, schematics, sketches, photographs, graphs, dies, molds, tools, tooling, samples, price lists, part lists and descriptions, and any and all notes, analysis, compilations, studies, summaries, and other material containing or based, in whole or in part, on any information included in the foregoing, that is identified in Appendix B and intended by the Parties to be included in the
Deliverables.

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APPENDIX B1

Micro-power Source Arrays Using Superhydrophobic Materials

STATEMENT OF WORK

This Statement of Work will be governed by and construed in accordance with the terms of the Agreement, but to the extent there is any inconsistency between the terms of this Statement of Work and those of the Agreement, the terms of the Statement of Work shall take precedence and control the work tasks identified herein.

General Description of the Development Project

This Development Project contemplates the provision of hardware and software engineering in connection with the design, development, ownership, building, manufacture, marketing and sales of micro-power source arrays fabricated using superhydrophobic materials, for government and commercial customers.

Company / Lucent Research and Development Work Items

	***	 	[THE REMAINING PORTION OF THIS SUBTITLE OF APPENDIX B TO THE DEVELOPMENT

AGREEMENT AS CONFIDENTIAL HAS BEEN OMITTED PURSUANT TO RULE 406 OF

THE SECURITIES ACT OF 1933, AS AMENDED. SUCH OMITTED SECTION HAS BEEN

SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION]

Staffing

The Parties will allocate sufficient
    technical staff to perform the Development Project and will identify these
    individuals to the other Party. The specific staff composition of the Party’s
    team will be determined by that Party, based upon the deliverables and phases
of the project. 

 

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Schedules

As part of the Development Project, Company and the Lucent teams will iteratively refine the schedule on a mutually agreed upon basis, taking into account Lucent capabilities and Company requirements.  The teams will hold at a minimum, monthly status calls, which may include face-to-face status meetings, in additional to regular scheduled work meetings.  Additionally, written quarterly reports are expected from the Lucent Team. Each of the defined category areas in this SOW will additionally have a more detailed milestone and project plan associated with them, and will be referenced in a separate document, as the work progresses.  This SOW and the individual milestone documents will constitute the expected deliverables to Company.

The Parties acknowledge that the duration of each milestone is contingent upon the timely completion of earlier milestones.  Unless otherwise agreed to in writing, Company and Lucent hereby agree that in the event a milestone is delayed and not completed on time in accordance with this Schedule, all subsequent milestones dependent thereon may be delayed an equivalent, or mutually agreed upon, amount of time provided that this Agreement has not been terminated under the provisions of Article III of the contract.

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mPhase Technologies, Inc. DEVELOPMENT AGREEMENT

APPENDIX B2

Cost of Development Project

The total cost for the Development Project to be paid by Company to Lucent is one million two hundred thousand (US$1,200,000.00) US Dollars.

Payment will be made by Company to Lucent in monthly installments, as follows:

(a) an initial non-refundable payment of $100,000 (US$100,000) United States Dollars upon signing of this Agreement. 

(b) provided that this Agreement is not terminated pursuant to Section 3.01, eleven (11) additional installments each of One Hundred Thousand (US$100,000) United States Dollars, beginning with the month of February, 2004 and ending with the month of December, 2004.    

Each of these eleven installments will be invoiced on the first day of the month following the month in which the work was performed, beginning February 1, 2004 and ending December 1, 2004, and shall be non-refundable.  

Company shall pay all invoices rendered by Lucent, in U.S. dollars, within 60 days after receipt thereof, pursuant to Section 5.18.  Notwithstanding the foregoing, payments to Lucent shall be made within 60 days following the end of the month in which the work was performed, even if Lucent fails to render an invoice.

Capital Equipment Costs

Over the course of the Development Project, new hardware and software equipment may need to be required to support the Development.  Any capital purchases made to support the Development Project and charged to Company, must be pre-approved in writing by Company. mPhase will own this capital equipment, but agrees to sell the equipment back to Lucent at market value at the termination of this Agreement, if Lucent wishes to retain said equipment.

Proceeds from Reimbursements

Company will share with Lucent, on an equitable basis, the proceeds from potential reimbursements that may occur during the course of the Development Project. These reimbursements may incur for example when government sponsored grant funds are acquired that may cover expenses already incurred by both Lucent and Company.

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      DEVELOPMENT AGREEMENT

APPENDIX B3

Royalties 

Section B1  In consideration for the licenses granted by Lucent to Company pursuant to Sections 2.04(a) and 2.05(a), Company agrees to pay to Lucent a royalty as follows:

	***	 	[THE REMAINING PORTION OF APPENDIX B3 TO THE DEVELOPMENT

AGREEMENT AS CONFIDENTIAL HAS BEEN OMITTED PURSUANT TO RULE 406 OF

THE SECURITIES ACT OF 1933, AS AMENDED. SUCH OMITTED SECTION HAS BEEN

SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION]

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Section B4  Payments and Records

     (a)
    Payments shall be made in United States dollars to the address specified
in Section 5.06. 

     (b)
    The royalties payments set forth in Section B1 and B2 and the Fees set forth
    in Section B6 shall be reportable and payable within sixty (60) days after
    the end of each semi-annual period ending on June 30th or December 31st.
    Each party shall furnish to the other Party a statement, certified by an
    authorized representative of the Party, identifying in a reasonable manner
    the number of units of Licensed Products that were subject to Royalty or
    Fee during such quarterly period, the revenues receives from the licensing
    of jointly owned Developed Information and Joint Inventions,and the amount
    payable pursuant to Section B1 or B2. If there is no such Royalty or Fee,
    that fact shall be
shown on such statement. 

     (c)
    Notwithstanding any other provision in this Agreement to the contrary, if,
    at any time during the License Term, no payment is otherwise due to be paid
    by Company to Lucent pursuant to this Agreement, then and in that event,
    Company agrees to pay to Lucent, a minimum annual royalty of One Thousand
($1,000.00) US Dollars. 

     (d)
    Each Party shall keep full, clear and accurate records of units of Licensed
    Products. Each Party shall furnish whatever additional information the other
    Party may reasonably request from time to time to enable it to ascertain
the amounts of royalty fees payable pursuant hereto.

     (e)
    Lucent shall have the right to make an examination and audit during normal
    business hours, not more frequently than annually and subject to prior clearance
    and coordination with Company, of all records kept by Company pursuant to
    this Section B4 and such other records and accounts as may under recognized
    accounting practices contain information bearing upon the amounts of fees
    payable to Lucent under this Agreement. Prompt adjustment shall be made by
    the proper party to compensate for any errors or omissions disclosed by such
    examination or audit. Neither such right to examine and audit nor the right
    to receive such adjustment shall be affected by any statement to the contrary
    appearing on checks or otherwise unless such statement appears in a letter
    signed by the party having such right expressly waiving such right and such
    letter is delivered to the other party. If such audit discloses a reported
    error of ten percent (10%) or greater with respect to the reported sums paid
    during the applicable period subject to such audit, Company shall fully reimburse
    Lucent, promptly upon demand, for the reasonable fees and disbursements for
    completing such audit. Otherwise, Lucent shall be responsible for the cost
of each such audit.

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      DEVELOPMENT AGREEMENT

     (f)
    In lieu of Company auditing Lucent, Lucent agrees to provide a royalty report
signed by one Lucent officers attesting the accuracy of the report.

     (g)
    Overdue payments shall be subject to a late payment charge calculated at
    an annual rate of one percent (1%) over the prime rate (as posted in New
    York City during delinquency). If the amount of such late payment charge
    exceeds the maximum permitted by law, such charge shall be reduced to such
maximum amount. 

Section B5 Taxes

     (a)
    Company shall bear all taxes, duties, levies and similar charges (and any
    related interest and penalties), however designated, imposed as a result
    of the existence or operation of this Agreement, except (i) any net income
    tax imposed upon Lucent in a jurisdiction other than the United States if
    such tax is allowable as a credit against the United States income taxes
    of Lucent; and (ii) any net income tax imposed upon Lucent by the United
    States or any governmental entity within the United States (the fifty (50)
states and the District of Columbia).

     (b)
    If Company is required to bear a tax, duty, levy or similar charge pursuant
    to (a) above, Company shall pay such tax, duty, levy or similar charge and
    any additional amounts as are necessary to ensure that the net amounts received
    by Lucent hereunder after all such payments or withholdings equal the amounts
    to which Lucent is otherwise entitled under this Agreement as if such tax,
duty, levy or similar charge did not apply.

Section B6 Fees for Sales Activities

	***	 	[THE REMAINING PORTION OF APPENDIX B6 TO THE DEVELOPMENT

AGREEMENT AS CONFIDENTIAL HAS BEEN OMITTED PURSUANT TO RULE 406 OF

THE SECURITIES ACT OF 1933, AS AMENDED. SUCH OMITTED SECTION HAS BEEN

SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION]

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APPENDIX C1

Lucent Patents and/or Patent Applications

	***	 	[THE REMAINING PORTION OF APPENDIX C1 TO THE DEVELOPMENT

AGREEMENT AS CONFIDENTIAL HAS BEEN OMITTED PURSUANT TO RULE 406 OF

THE SECURITIES ACT OF 1933, AS AMENDED. SUCH OMITTED SECTION HAS BEEN

SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION]

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Amendment

Re: DEVELOPMENT AGREEMENT
      between LUCENT TECHNOLOGIES INC. and mPHASE TECHNOLOGIES, INC. effective
      as of February 5, 2004 (“Agreement”) relating to Micro-Power
      Source Arrays Fabricated Using Nanotextured, Superhydrophobic Materials

          1.     It
          is further understood and agreed that the “detailed and comprehensive
          plan describing the technical direction of the Development Project” contemplated
          in Appendix B1 (Statement of Work) shall, when agreed upon by the Parties,
          be signed by authorized representatives of each Party, and thereupon
          become a part of the Agreement.

          2.     The
          paragraph entitled “Proceeds from Reimbursements” in Appendix
          B2 is deleted in its entirety.

          3.     All
          of the other terms and conditions in the Agreement shall remain the
          same.

IN WITNESS WHEREOF, the Parties
    hereto have caused this Agreement to be executed in duplicate originals by
    their duly authorized representatives on the respective dates entered below.

	LUCENT TECHNOLOGIES
          INC.

By: Jeffrey M. Jaffe

Jeffrey M. Jaffe

President of Research &

Advanced Technologies

Date: 2/6/04	mPhase Technologies,
          Inc.

By: Ronald A. Durando

Name: Ronald A. Durando

Title: President

Date: 2/06/04

32

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