Document:

Exhibit

Exhibit 10.1
Execution Version                                                                                      

AMENDMENT NO. 8 TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT
THIS AMENDMENT NO. 8 TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT, dated as of September 13, 2018 (this “Agreement”), is made by and among (i) CYPRESS SEMICONDUCTOR CORPORATION, a Delaware corporation (the “Borrower”), (ii) SPANSION INC., a Delaware corporation, SPANSION LLC, a Delaware limited liability company, SPANSION TECHNOLOGY LLC, a Delaware limited liability company, SPANSION INTERNATIONAL AM, INC., a Delaware corporation, and SPANSION INTERNATIONAL TRADING, INC. a Delaware corporation (collectively, the “Guarantors” and, together with the Borrower, collectively, the “Credit Parties”), (iii) the Lenders party hereto, and (iv) MORGAN STANLEY SENIOR FUNDING, INC. (“MSSF”), as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders (such capitalized term and all other capitalized terms not otherwise defined herein shall have the meanings set forth in the Credit Agreement referred to below unless the context otherwise requires).
PRELIMINARY STATEMENTS:
WHEREAS, the Borrower, the Credit Parties, MSSF, as Administrative Agent, swing line lender and collateral agent, Morgan Stanley Bank, N.A., as issuing bank, and the Lenders party thereto from time to time have heretofore entered into that certain Amended and Restated Credit and Guaranty Agreement, dated as of March 12, 2015 (as amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof, the “Existing Credit Agreement”);
WHEREAS, the Borrower has engaged (a) MSSF (the “Amendment No. 8 Lead Arranger”) as sole lead arranger and (b) MSSF, Barclays Bank PLC, Fifth Third Bank and SunTrust Robinson Humphrey, Inc. as joint bookrunners, in each case, in respect of this Agreement;
WHEREAS, pursuant to the terms of the Existing Credit Agreement, the Borrower incurred (a) incremental term loans in an original, aggregate principal amount equal to $450 million on July 5, 2016 (the “Original 2016 Incremental Term Loans”) pursuant to that certain Joinder Agreement, dated as of July 5, 2016 (the “Original 2016 Incremental Joinder Agreement”), by and among, inter alios, the Borrower, the Guarantors party thereto, the institutions party thereto from time to time (together with any successors and assigns, the “Original 2016 Incremental Lenders”) and the Administrative Agent and (b) incremental term loans in an original, aggregate principal amount equal to $92.25 million on August 18, 2017 (the “Additional 2016 Incremental Term Loans” and, together with the Original 2016 Incremental Term Loans, the “2016 Incremental Term Loans”) pursuant to that certain Joinder Agreement and Amendment No. 6 to Amended and Restated Credit and Guaranty Agreement, dated as of August 18, 2017 (the “Additional 2016 Incremental Joinder Agreement”), by and among, inter alios, the Borrower, the Guarantors party thereto, MSSF as the Initial Additional 2016 Incremental Term Lender (together with any successors and assigns, the “Additional 2016 Incremental Lenders” and, together with the Original 2016 Incremental Lenders, the “2016 Incremental Lenders”) and the Administrative Agent;
WHEREAS, the Borrower has requested that the Requisite Lenders (and in the case of any changes requiring the consent of the Requisite 2016 Incremental Term Lenders, the Requisite 2016 Incremental Term Lenders) consent to certain amendments to the Existing Credit Agreement (the Existing Credit Agreement as so amended hereby, the “Credit Agreement”); and
WHEREAS, certain Lenders (which together constitute the Requisite Lenders and the Requisite 2016 Incremental Term Lenders) are willing, on the terms and subject to the conditions set forth below, to consent to such amendments to the Existing Credit Agreement; 
NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, 

1

the Credit Parties and the Requisite Lenders (and in the case of any changes requiring the consent of the Requisite 2016 Incremental Term Lenders, the Requisite 2016 Incremental Term Lenders), hereby agree as follows:
AGREEMENT:
Section 1.Amendments to the Credit Documents. Subject to the satisfaction (or waiver) of the conditions set forth in Section 3, the Existing Credit Agreement is amended as follows: 
(a)Additional Definition. Section 1.01 of the Existing Credit Agreement is hereby amended to add the following definition in proper alphabetical order:
“Amendment No. 8 Effective Date” means the “Amendment No. 8 Effective Date” as defined in Amendment No. 8 to Amended and Restated Credit and Guaranty Agreement, dated as of September 13, 2018, among the Borrower, the other Credit Parties party thereto, the Lenders party thereto and the Administrative Agent.” 
(b)2016 Term Loan Applicable Margin. Section 2 of the 2016 Incremental Joinder Agreement shall be replaced in its entirety by the following:
Applicable Margin. Interest on the Incremental Term Loan shall bear interest, at the option of the Borrower, at the Base Rate plus the Applicable Margin or the Adjusted Eurodollar Rate plus the Applicable Margin. The Applicable Margin for the Incremental Term Loan shall mean, as of any date of determination, (i) with respect to any Incremental Term Loan that is a Eurodollar Rate Loan, 2.00% per annum and (ii) with respect to any Incremental Term Loan that is a Base Rate Loan, 1.00% per annum.
(c)2016 Incremental Term Loan Repayment Premium. Section 10(b) of the 2016 Incremental Joinder Agreement shall be replaced in its entirety by the following:
Repayment Premium. In the event that all or any portion of the Incremental Term Loan is (i) repaid, prepaid, refinanced or replaced or (ii) repriced or effectively refinanced through any waiver, consent or amendment (in each case, in connection with any repayment, prepayment, refinancing, replacement, waiver, consent or amendment to the Incremental Term Loan directed at, or the result of which would be, the lowering of the effective interest cost or the weighted average yield of the Incremental Term Loan or the incurrence of any debt financing having an effective interest cost or weighted average yield that is less than the effective interest cost or weighted average yield of the Incremental Term Loan (or portion thereof) so repaid, prepaid, refinanced, replaced or repriced (other than a refinancing of the Incremental Term Loan in connection with any transaction that would, if consummated, constitute a change of control) (a “Repricing Transaction”)) occurring on or prior to the date that is six months after the Amendment No. 8 Effective Date, such repayment, prepayment, refinancing, replacement or repricing will be made at 101.0% of the principal amount so repaid, prepaid, refinanced, replaced or repriced. If all or any portion of the Incremental Term Loan held by any Lender is repaid, prepaid, refinanced or replaced pursuant to Section 11.05(g) of the Credit Agreement as a result of, or in connection with, such Lender not agreeing or otherwise consenting to any waiver, consent or amendment referred to in clause (ii) above (or otherwise in connection with a Repricing Transaction), such repayment, prepayment, refinancing or replacement will be made at 101.0% of the principal amount so repaid, prepaid, refinanced or replaced.

2

(d)2016 Incremental Term Loan Mandatory Prepayment. The proviso at the end of Section 10(c)(i) of the 2016 Incremental Joinder Agreement is amended and restated as follows:
“provided, further, that no payment pursuant to this Section 10(c)(i) shall be required to be made for the fiscal years ending December 31, 2017 or December 30, 2018.”
Section 2.Non-Consenting Lenders.
(a)If any existing Lender holding Term Loans declines or fails to consent to this Agreement (a “Non-Consenting Lender”) by returning an executed counterpart of this Agreement to the Administrative Agent prior to 10:00 a.m. (New York time) on August 10, 2018, then pursuant to and in compliance with the terms of Section 2.22(b) and 11.05(g) of the Existing Credit Agreement, such Lender may be replaced and the Term Loans held by it may be purchased and assumed by an assignee upon such assignee’s execution of this Agreement (which will also be deemed to be the execution of an Assignment Agreement, and the execution of this Agreement by the Administrative Agent and the Borrower shall be deemed to be the consent of the Administrative Agent and the Borrower (to the extent such consent is required under the Existing Credit Agreement) thereto) and payment by such assignee of the purchase price required by Section 2.22(b) of the Existing Credit Agreement.
(b)Notwithstanding anything to the contrary in the Existing Credit Agreement and for the avoidance of doubt, all Term Loans held by Non-Consenting Lenders that are assigned pursuant to this Agreement and for which accrued and unpaid interest has been paid pursuant to Section 2(a) shall accrue interest solely on and after the Amendment No. 8 Effective Date. 
(c)Notwithstanding anything to the contrary in the Existing Credit Agreement or in this Agreement, the parties hereto hereby agree that the Borrower, at its option, may elect to prepay (on a non-pro rata basis) Term Loans held by Non-Consenting Lenders, in an aggregate amount of $25,000,000, that are assigned to Morgan Stanley Bank, N.A. as Assignee hereunder in connection with Section 2(a) to the extent that, with respect to such Term Loans, commitments have not been received in the amount necessary to replace such Non-Consenting Lenders.  The Borrower’s election to prepay the Term Loans held by Non-Consenting Lenders under this Section 2(c) shall be deemed an election to prepay under Section 2.13(a) of the Existing Credit Agreement and this Agreement shall constitute the written notice required thereunder.  The execution of this Agreement by the parties hereto shall be deemed a waiver of the requirement to deliver written notice of prepayment under Section 2.13(a) of the Existing Credit Agreement (and any timing requirements in respect thereof) and, for the purpose of Section 2.15(a) of the Existing Credit Agreement, the Borrower’s prepayment of Term Loans held by Non-Consenting Lenders as referred to above shall be applied as set forth herein.
(d)Notwithstanding Section 10(a) of the Original 2016 Incremental Joinder Agreement or anything to the contrary in the Existing Credit Agreement or in this Agreement, by returning an executed counterpart of this Agreement to the Administrative Agent, each 2016 Incremental Term Loan Lender hereby approves the Borrower’s prepayment of the Term Loans held by Non-Consenting Lenders pursuant to Section 2(c) on a non-pro rata basis as contemplated hereby.
(e)For purposes hereof, the Administrative Agent and the Borrower agree that this Agreement shall constitute an Assignment Agreement for purposes of the Credit Agreement (including, without limitation, in respect of Section 2.22(b) thereof) and that the provisions set forth in Annex I (Standard Terms and Conditions for Assignment Agreement) of Exhibit E to the Existing Credit Agreement shall apply in regard to any assignments effected hereby.

3

(f)For the further avoidance of doubt, nothing herein shall be deemed to modify the definition of “Applicable Margin” for any day in the relevant period prior to the Amendment No. 8 Effective Date for purposes of calculating interest accrued prior to the Amendment No. 8 Effective Date.
(g)Each of the parties hereto acknowledges and agrees that the terms of this Agreement do not constitute a novation but, rather, an amendment of the terms of a pre-existing Indebtedness and related agreement, as evidenced by the Existing Credit Agreement.
Section 3.Conditions to Effectiveness. The amendments contained in Section 1 shall be effective on the date the Administrative Agent has confirmed the satisfaction or waiver of each of the conditions contained in this Section 3 (the “Amendment No. 8 Effective Date”).
(a)Execution of Counterparts. The Administrative Agent shall have received counterparts of this Agreement duly executed and delivered by (i) the Credit Parties, (ii) the Administrative Agent, (iii) the Requisite 2016 Incremental Term Lenders and (iv) the Lenders constituting the Requisite Lenders.
(b)Officer’s Closing Certificate. The Administrative Agent shall have received an officer’s certificate from the Borrower certifying that (i) no Default or Event of Default exists, or will result from the execution of this Agreement and the transactions contemplated hereby as of the date hereof and (ii) all representations and warranties contained in this Agreement and the other Credit Documents are true and correct in all material respects on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date (provided that representations and warranties that are qualified by materiality shall be true and correct in all respects).
(c)Fees and Expenses. The Borrower shall have paid to the Administrative Agent all fees due to the Administrative Agent and/or the Amendment No. 8 Lead Arranger to be paid in connection with this Agreement and all expenses to be paid or reimbursed to the Administrative Agent and/or the Amendment No. 8 Lead Arranger that have been invoiced at least one Business Day prior to the Amendment No. 8 Effective Date.
(d)Know Your Client. 
(i)The Administrative Agent shall have received, at least three Business Days prior to the Amendment No. 8 Effective Date, all documentation and other information with respect to the Borrower and the Guarantors requested by the Administrative Agent that is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act.
(ii)At least five days prior to the Amendment No. 8 Effective Date, if the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, the Borrower shall have delivered a Beneficial Ownership Certification to each Lender who has requested a Beneficial Ownership Certification.
(e)Non-Consenting Lenders. The Borrower shall have paid to the Administrative Agent for the account of each Non-Consenting Lender all accrued and unpaid fees and interest with respect to such Lender, in each case, through the Amendment No. 8 Effective Date. 
Section 4.Representations and Warranties. In order to induce the Requisite Lenders, the Requisite 2016 Incremental Term Lenders and the Administrative Agent to enter into this Agreement, 

4

the Credit Parties hereby represent and warrant to the Agents, Issuing Bank and each Lender, as of the date hereof, as follows:
(a)this Agreement has been duly authorized, executed and delivered by each Credit Party and constitutes a legal, valid and binding obligation of each such Credit Party, enforceable against it in accordance with its terms, except to the extent the enforceability hereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law);
(b)the execution, delivery and performance by the Credit Parties of this Agreement will not (i) violate any of the Organizational Documents of Borrower or any of its Restricted Subsidiaries, (ii) violate any provision of any law or any governmental rule or regulation applicable to Borrower or any of its Restricted Subsidiaries, (iii) violate any order, judgment or decree of any court or other agency of government binding on Borrower or any of its Restricted Subsidiaries; (iv) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any Contractual Obligation of Borrower or any of its Restricted Subsidiaries; or (v) result in or require the creation or imposition of any Lien upon any of the properties or assets of Borrower or any of its Restricted Subsidiaries (other than any Liens created under any of the Credit Documents in favor of Collateral Agent, on behalf of the Secured Parties), except, in the case of each of clauses (ii) through (v) above, to the extent that such violation, conflict or Lien could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;
(c)each of the representations and warranties contained in Article 4 of the Credit Agreement and in the other Credit Documents is true and correct in all material respects as of the Amendment No. 8 Effective Date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties are true and correct in all material respects on and as of such earlier date (provided, that representations and warranties that are qualified by materiality shall be true and correct in all respects); 
(d)no Default or Event of Default exists, or will result from the execution of this Agreement and the transactions contemplated hereby as of the Amendment No. 8 Effective Date; and
(e)as of the Amendment No. 8 Effective Date, the information included in the Beneficial Ownership Certification is true and correct in all respects. For purposes of this First Amendment, “Beneficial Ownership Certification” shall mean a certification regarding beneficial ownership required by the Beneficial Ownership Regulation (31 C.F.R. § 1010.230), which certification shall be in form and substance agreed to by the Borrower and the Administrative Agent.
Section 5.Non-Impairment and Reaffirmation.
(a)Non-Impairment, etc. After giving effect to this Agreement, neither the modification of the Existing Credit Agreement nor the execution, delivery, performance or effectiveness of this Agreement or any other Credit Document impairs the validity, effectiveness or priority of the Liens granted pursuant to the Collateral Documents (as in effect immediately prior to the Amendment No. 8 Effective Date), and such Liens continue unimpaired with the same priority to secure repayment of all Obligations, whether heretofore or hereafter incurred.
(b)Reaffirmation of Obligations. Each of the Credit Parties hereby consent to this Agreement and hereby (i) restates, ratifies and reaffirms each and every term and condition set forth in the Credit Agreement and the Credit Documents effective as of the Effective Date and as amended hereby and hereby reaffirms its obligations (including the Obligations) under each Credit Document to which it is a 

5

party, (ii) confirms and agrees that the pledge and security interest in the Collateral granted by it pursuant to the Collateral Documents to which it is a party shall continue in full force and effect, and (iii) acknowledges and agrees that such pledge and security interest in the Collateral granted by it pursuant to such Collateral Documents shall continue to secure the Obligations, as amended or otherwise affected hereby.
Section 6.Miscellaneous. 
(a)Full Force and Effect; Amendment and Restatement. Except as expressly provided herein and in the Credit Agreement, this Agreement shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Administrative Agent, Collateral Agent, the Arrangers or the Lenders under the Existing Credit Agreement or any other Credit Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Existing Credit Agreement or any other Credit Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing herein shall be deemed to entitle any Credit Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Existing Credit Agreement or any other Credit Document in similar or different circumstances.
(b)Credit Document Pursuant to Credit Agreement. This Agreement is a Credit Document executed pursuant to the Credit Agreement and shall be construed, administered and applied in accordance with all of the terms and provisions of the Credit Agreement, including, without limitation, the provisions relating to forum selection, consent to jurisdiction and waiver of jury trial included in Article 11 of the Credit Agreement, which provisions are hereby acknowledged and confirmed by each of the parties hereto.
(c)Headings. The various headings of this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any provisions hereof.
(d)Execution in Counterparts. This Agreement may be executed by the parties hereto in counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. Delivery of an executed signature page of this Agreement by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart hereof.
(e)Cross-References. References in this Agreement to any Article or Section are, unless otherwise specified or otherwise required by the context, to such Article or Section of this Agreement.
(f)Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
(g)Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
(h)GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER (INCLUDING, WITHOUT LIMITATION, ANY CLAIMS SOUNDING IN CONTRACT LAW OR TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY DETERMINATIONS WITH RESPECT TO POST-JUDGMENT INTEREST) SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

6

(i)CONSENT TO JURISDICTION. THE TERMS AND PROVISIONS OF SECTION 11.15 OF THE CREDIT AGREEMENT ARE INCORPORATED BY REFERENCE HEREIN AS IF FULLY SET FORTH HEREIN.
                               [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

7

IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Agreement as of the date first written above.

CYPRESS SEMICONDUCTOR CORPORATION
By: /s/ Thad Trent    
		
	Name:
	Thad Trent

Title: Executive Vice President, Finance and Administration and Chief Financial Officer

SPANSION INC.
By: /s/ Thad Trent    
Name: Thad Trent
Title:  President and Secretary

SPANSION LLC
By: /s/ Thad Trent    
Name: Thad Trent
Title: President, CFO and Secretary

SPANSION TECHNOLOGY LLC
By: Spansion Inc., its sole member

By: /s/ Thad Trent    
Name: Thad Trent
Title: President and Secretary

SPANSION INTERNATIONAL AM, INC.
By: /s/ Thad Trent    
Name: Thad Trent
Title: President, CFO and Assistant Secretary

Signature Page to Amendment No. 8 

SPANSION INTERNATIONAL TRADING, INC.
By: /s/ Thad Trent    
Name: Thad Trent
Title: President

MORGAN STANLEY SENIOR FUNDING, INC., as Administrative Agent and Collateral Agent
By: /s/ Jonathon Rauen    
Name: Jonathon Rauen    
               Title:  Authorized Signatory

MORGAN STANLEY BANK, N.A., as Assignee
By: /s/ Jonathon Rauen    
Name: Jonathon Rauen    
Title: Authorized Signatory

MORGAN STANLEY BANK, N.A., as a Revolving Lender
By: /s/ Jonathon Rauen    
Name: Jonathon Rauen    
Title: Authorized Signatory

Mizuho Bank, Ltd., as a Revolving Lender
By: /s/ Raymond Ventura    
Name: Raymond Ventura    
Title: Managing Director

Signature Page to Amendment No. 8 

SUNTRUST BANK, as a Revolving Lender
By: /s/ Christian Sumulong    
Name: Christian Sumulong    
Title: Vice President

Signature Page to Amendment No. 8 

[Term Loan Lender Signature Pages on File with the Administrative Agent]

Signature Page to Amendment No. 8EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
 COOPERATION
AGREEMENT 
 This Cooperation Agreement (this “Agreement”), dated as of September 18, 2018, is by and between
Elliott Associates, L.P. and Elliott International, L.P. (together, “Elliott”), Bluescape Resources Company LLC (“Bluescape”), Cove Key Management, LP (“Cove Key”, and together with Elliott and
Bluescape, each an “Investor” and collectively, the “Investors”) and Sempra Energy (the “Company”). In consideration of and reliance upon the mutual covenants and agreements contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Investors and the Company agree as follows: 

1.    New Directors and Other Company Matters. 

(a)    In accordance with the Company’s bylaws, as amended through December 15, 2015 (the
“Bylaws”), and California law, simultaneously with the execution and delivery of this Agreement, the Company agrees that: 

i.    the Board of Directors of the Company (the “Board”) will take all necessary actions
to (A) rename the LNG Construction and Technology Committee of the Board as the “LNG and Business Development Committee” (the “Committee”), (B) appoint the following directors as the only initial members of the
Committee: Alan Boeckmann, William Rusnack and James Yardley and (C) appoint Alan Boeckmann as chair of the Committee; 

ii.    the Board will take all necessary actions to (A) amend the charter of the Committee such that
the Committee’s mandate will be to work with management and the Board to conduct a comprehensive business review of the Company presided over by the chair of the Committee, such charter to include terms consistent with those set forth in
Exhibit A hereto and (B) upon the appointment of the New Directors (as defined below) to the Committee in accordance with Section 1(b)(iv), cause the Committee to commence activities in accordance with its charter (as amended in accordance
with clause (A)); and 
 iii.    at least until the expiration of the Cooperation Period (as defined
below), the Board will take all actions necessary to (A) not further amend the charter in any material respect without the prior written consent of the Investors (such consent not to be unreasonably withheld, conditioned or delayed), (B) cause
the Committee to remain in place, (C) following the appointment of the New Directors to the Committee, maintain the size of the Committee at five (5) members, and (D) simultaneous with the appointment of any Replacement New Director
(as defined below) to the Board pursuant to Section 1(e), appoint such Replacement New Director to the Committee to replace the applicable prior New Director. 

(b)    The Company and the Investors have worked cooperatively together to identify a discrete list of final director
candidates (each, an “Approved Candidate”) and 

 
expect to work together so that the Company can announce and appoint two (2) new directors to the Board in the coming weeks that are mutually agreed between the Company and the Investors. In
accordance with the Bylaws and California law, the Company agrees that in furtherance of the foregoing: 

i.    immediately prior to the time that the Board appoints the first of the New Directors to the Board,
the Board will increase the size of the Board to sixteen (16) directors to create two (2) vacancies; 

ii.    the Company and the Investors will mutually agree on two (2) individuals for appointment to the
Board to the fill the vacancies created by Section 1(b)(i); 
 iii.    the Board will appoint the
two (2) individuals mutually agreed on by the Company and the Investors pursuant to Section 1(b)(ii) (each, a “New Director” and together the “New Directors”) to the Board to fill the vacancies created by
Section 1(b)(i); and 
 iv.    the Board will take all necessary actions to appoint the New
Directors upon their appointment to the Board to the Committee. 
 (c)    The Company agrees that it will publicly
announce the results of the business review conducted by the Committee and the Board during Q1 2019 and, if the Cooperation Period is extended to the Outside Expiration Time pursuant to Section 2(a) or 2(b), Q1 2020. 

(d)    The Company agrees that, provided that a New Director continues to be a Qualified Director and is able and willing
to serve on the Board: 
 i.    at the 2019 annual meeting of the Company’s stockholders (the
“2019 Annual Meeting”), the Board will nominate such New Director, together with the other persons included in the Company’s slate of nominees for election as director at the 2019 Annual Meeting in accordance with this
Section 1(d), as a director of the Company, with a term expiring at the 2020 annual meeting of the Company’s stockholders (the “2020 Annual Meeting”); 

ii.    if the Cooperation Period is extended to the Outside Expiration Time pursuant to Section 2(a)
or 2(b), at the 2020 Annual Meeting, the Board will nominate such New Director, together with the other persons included in the Company’s slate of nominees for election as director at the 2020 Annual Meeting in accordance with this
Section 1(d), as a director of the Company, with a term expiring at the 2021 annual meeting of the Company’s stockholders; 

iii.    the Board will recommend that the stockholders of the Company vote to elect such New Director as a
director of the Company at the 2019 Annual 

  
 2 

 
Meeting and, if the Cooperation Period is extended to the Outside Expiration Time pursuant to Section 2(a) or 2(b), at the 2020 Annual Meeting; and 

iv.    the Company will use its reasonable best efforts (which will include the solicitation of proxies) to
obtain the election of such New Director at the 2019 Annual Meeting and, if the Cooperation Period is extended to the Outside Expiration Time pursuant to Section 2(a) or 2(b), at the 2020 Annual Meeting (it being understood that such efforts
will be not less than the efforts used by the Company to obtain the election of any other Independent director nominee nominated by it to serve as a director on the Board at the 2019 Annual Meeting or the 2020 Annual Meeting, as applicable). 

(e)    If any New Director (or any Replacement New Director) is unable or unwilling to serve as a director, resigns as a
director, is removed as a director or ceases to be a director for any other reason (including as the result of a failure to receive the requisite number of votes at the 2019 Annual Meeting or, if the Cooperation Period is extended to the Outside
Expiration Time pursuant to Section 2(a) or 2(b), the 2020 Annual Meeting, as applicable) prior to the expiration of the Cooperation Period, and at such time Elliott beneficially owns (which at any such measurement time during the Cooperation
Period shall include a combination of Elliott’s economic and beneficial ownership (as determined under Rule 13d-3 under the Exchange Act (as defined below)) of shares of Company Common Stock (as defined
below) as of such time) at least the lesser of 3.0% of the then outstanding shares of Company Common Stock and 8,205,097 shares of Company Common Stock (subject to adjustment for stock splits, reclassifications, combinations and similar
adjustments), as promptly as practicable the Company will select and appoint a substitute New Director (a “Replacement New Director”) to serve as a director of the Company, which Replacement New Director will be a Qualified Director
and whose selection will, unless such Replacement New Director is an Approved Candidate, be subject to Elliott’s consent (such consent not to be unreasonably withheld, conditioned or delayed). Effective upon the appointment of a Replacement New
Director to the Board, such Replacement New Director will be considered a New Director for all purposes of this Agreement. 

(f)    The Company will continue during the duration of the Cooperation Period to pursue its standard Board refreshment
process, subject to good faith adjustments made by the Board in its reasonable discretion. Debra L. Reed will retire from the Board, as previously announced, effective as of December 1, 2018 and William G. Ouchi, Ph.D will not be nominated to
stand for re-election as a director at the 2019 Annual Meeting. 
 (g)    The
Company agrees that the size of the Board shall be no greater than fifteen (15) at any time from the conclusion of the 2019 Annual Meeting through the end of the Cooperation Period, unless the Investors consent in writing to any proposal to
increase the size of the Board, such consent not be unreasonably withheld, conditioned or delayed. 

  
 3 

 (h)    The Company agrees that the last day of the time period,
established pursuant to the Bylaws, for stockholders to deliver notice to the Company of director nominations to be brought before the 2020 Annual Meeting will be no earlier than January 30, 2020. 

2.    Cooperation. 

(a)    Each of the Investors and the Company agrees that, from the date of this Agreement until the earlier of (such
period, including as it may be automatically extended pursuant to clause (i) of this Section 2(a) or Section 2(b), the “Cooperation Period”): 

(i)    the Early Expiration Time (as defined below); provided, however, that such date shall automatically
be extended to the Outside Expiration Time in the event that the cumulative relative total shareholder return of the Company Common Stock from the closing price of the Company Common Stock on the business day prior to the date of this Agreement
through the business day prior to the Early Expiration Time (measured using the 30-Day VWAP as of the business day prior to the Early Expiration Time) is at least eleven percent (11%), calculated on an
annualized basis, better than the comparable performance of the S&P 500 Utilities Index during that period, and 

(ii) any material breach of this Agreement by the Company (provided that the Company will have ten (10) business days
following written notice from the Investors of material breach to remedy such material breach if capable of remedy), 
 the Company and the Investors shall
each refrain from making, and shall cause their respective Affiliates and its and their respective principals, directors, members, general partners, officers and key employees not to make or cause to be made publicly or privately any statement or
announcement that constitutes an ad hominem attack on, or that otherwise disparages, defames, slanders, impugns or is reasonably likely to damage the reputation of, (A) in the case of any such statements or announcements by any of the Investors
or their related parties, the Company and its Affiliates or any of their current or former officers, directors, or employees, and (B) in the case of any such statements or announcements by the Company or its related parties, the current or
former principals, directors, members, general partners, officers, or employees of the Investors or any of their Affiliates; in each case including (x) in any statement (oral or written), document or report filed with, furnished or otherwise
provided to the SEC or any other governmental agency, (y) in any press release or other publicly available format or (z) to any journalist or member of the media (including, in a television, radio, newspaper or magazine interview). 

(b)    The Cooperation Period shall also be automatically extended to the Outside Expiration Time if, prior to the Early
Expiration Time, the Company, in its sole discretion, delivers to the Investors a written, binding commitment (i) to nominate one or more new Qualified Director candidates for election to the Board at the 2020 Annual

  
 4 

 
Meeting and (ii) that the nomination of any such new Qualified Director candidates shall be subject to the consent of the Investors (such consent not to be unreasonably withheld, delayed or
conditioned). 
 (c)    During the Cooperation Period, each Investor will cause all of the outstanding shares of common
stock, no par value, of the Company (“Company Common Stock”) that such Investor or any of its controlled Affiliates or Associates have the right to vote as of the applicable record date, to be present in person or by proxy for
quorum purposes and to be voted at any meeting of stockholders or at any adjournments or postponements thereof, and to consent in connection with any action by consent in lieu of a meeting, (x) in favor of each director nominated and
recommended by the Board for election at any such meeting (including the New Directors), (y) against any stockholder nominations for director that are not approved and recommended by the Board for election at any such meeting and against any
proposals or resolutions to remove any member of the Board and (z) in accordance with recommendations by the Board on all other proposals or business that may be the subject of stockholder action at such meetings other than proposals related to
any Extraordinary Transaction (as defined below). 
 (d)    During the Cooperation Period, each Investor will not, and
will cause its Affiliates and Associates to not, directly or indirectly, without the prior written consent of the Company: 

i.    acquire, offer or seek to acquire or agree to acquire, beneficial ownership, directly or indirectly
and acting alone or in concert, whether by purchase, tender or exchange offer, through the acquisition of control of another person, by joining a partnership, limited partnership, syndicate or other group, or through swap or hedging transactions,
derivative arrangements or otherwise, any securities of the Company or any rights that would result in (A) with respect to Bluescape and Cove Key, such Investors (together with their respective Affiliates and Associates) having aggregate
economic exposure to more than 2.0% of the shares of Company Common Stock outstanding at such time and (B) with respect to Elliott, such Investor (together with its Affiliates and Associates) having aggregate economic exposure to more than the
difference between (x) 9.9% of the shares of Company Common Stock outstanding at such time and (y) the aggregate economic exposure of Bluescape and Cove Key as a percentage of the shares of Company Common Stock outstanding at such time; 

ii.    (A) request (publicly or otherwise) a special meeting of the Company’s stockholders,
(B) submit, make or be a proponent of any stockholder proposal to the Company, (C) seek representation on, or nominate any candidate to, the Board, except as expressly set forth in Section 1 hereof, or (D) seek, alone or in
concert with others (including through any “withhold” or similar campaign), the removal of any member of the Board; 

  
 5 

 iii.    make a request for any stockholder list or other
Company books and records; 
 iv.    make or engage in, directly or indirectly, any
“solicitation” of proxies (as such terms are used in the proxy rules of the SEC but without regard to the exclusion set forth in Rule 14A-1(1)(2)(iv) of the Exchange Act) or consents to vote, or
knowingly advise, encourage or influence any person with respect to the voting of any securities of the Company or any securities convertible or exchangeable into or exercisable for any such securities for the election of individuals to the Board or
to approve stockholder proposals, or become a “participant” in any contested “solicitation” for the election of directors with respect to the Company (as such terms are defined or used under the Exchange Act) (other than a
“solicitation” or acting as a “participant” in support of all of the nominees of the Board at any stockholder meeting); 

v.    submit (publicly or otherwise) a proposal for, or offer of (with or without conditions), or
participate in any way, either alone or in concert with others, in any tender offer, exchange offer, merger, amalgamation, consolidation, acquisition, business combination, recapitalization, consolidation, restructuring, liquidation, dissolution or
similar extraordinary transaction involving the Company or any of its subsidiaries or joint ventures or any of their respective securities or assets (an “Extraordinary Transaction”) (it being understood that the foregoing shall not
restrict the Investor from tendering shares, receiving payment for shares or otherwise participating in any such transaction on the same basis as other stockholders of the Company, or from participating in any such transaction that has been approved
by the Board); 
 vi.    make any public proposal with respect to (A) any material change in the
capitalization, stock repurchase programs and practices, capital allocation programs and practices or dividend policy of the Company, (B) any other material change in the Company’s management, business or corporate structure, (C) any
modifications to the Company’s articles of incorporation or bylaws, or (D) the delisting of a class of securities of the Company from any stock exchange or any action that would cause a class of securities of the Company to become eligible
for termination of registration pursuant to Section 12(g)(4) of the Exchange Act; 

vii.    knowingly encourage, assist or enter into any negotiations, arrangements or understandings with any
person not a party to this Agreement (a “Third Party”) with respect to any of the foregoing (other than with the Company’s consent), or otherwise form, join, knowingly encourage or in any way participate in any
“group” (as such term is defined in Section 13(d)(3) of the Exchange Act) with respect to any securities of the Company, or otherwise in any manner agree to deposit any securities of the Company in any voting trust or similar
arrangement, or subject any securities of the Company to any agreement or arrangement with respect to the voting thereof (including by granting any 

  
 6 

 
proxy, consent or other authority to vote), except with Affiliates of such Investor or as expressly set forth in this Agreement; 

viii.    engage in any short sale or any purchase, sale or grant of any option, warrant, convertible
security, stock appreciation right or other similar right (including any put or call option or “swap” transaction) with respect to any security (other than a broad-based market basket or index) that includes, relates to or derives any
significant part of its value from a decline in the market price or value of the securities of the Company if such short sale, purchase, sale or grant would result in the Investor no longer having a net long position (as defined in Rule 14e-4 under the Exchange Act) in respect of the Company Common Stock; 

ix.    sell, offer or agree to sell, all or substantially all, directly or indirectly, through swap or
hedging transactions or otherwise, voting rights decoupled from the underlying Company Common Stock held by such Investor to any Third Party; 

x.    make any public disclosure, announcement or statement regarding any intent, purpose, plan or proposal
with respect to the Board or the Company’s strategy, operations or financial results that is inconsistent with the Press Release or the provisions of this Agreement; 

xi.    institute, solicit, knowingly assist or join, as a party, any litigation, arbitration or other
proceedings against or involving the Company or any of its current or former directors or officers (including derivative actions), other than (A) an action to enforce the provisions of this Agreement instituted in accordance with and subject to
Section 10, (B) making counterclaims with respect to any proceeding initiated by, or on behalf, the Company, (C) bringing bona fide commercial disputes that do not relate to the subject matter of this Agreement, or (D) exercising
statutory appraisal rights; 
 xii.    enter into any negotiations, understandings or agreements (whether
written or oral) with, or advise, finance, knowingly assist, seek to persuade or knowingly encourage, any Third Party to take any action that such Investor is prohibited from taking pursuant to this Section 2(d); or 

xiii.    take any action that could reasonably be expected to force the Company to make a public disclosure
with respect to any of the foregoing. 
 (e)    Each Investor agrees not to, and to cause its Affiliates and Associates
not to, request during the Cooperation Period that the Company (or its directors, officers, employees or agents), directly or indirectly, amend or waive any provision of this Section 2 (including this sentence), publicly or in a manner that is
intended to or would reasonably be expected to require public disclosure of such request. 

  
 7 

 (f)    Each Investor agrees during the Cooperation Period not to, and to
cause its Associates and Affiliates not to, comment publicly on the Board or the Company’s management, strategy, operations or financial results or any transactions involving the Company or any of its subsidiaries, other than on Specified
Transactions. 
 (g)    Nothing in this Agreement will limit any Investor’s or its Affiliates’ ability to
(i) make any factual statement or disclosure as required by applicable legal process, subpoena, or legal requirement from any governmental authority with competent jurisdiction over the party from whom information is sought (so long as such
request did not arise as a result of discretionary acts by the Investor or any of its Affiliates), (ii) provide its views privately to the Board or management on any matter or to privately request a waiver of any provision of this Agreement,
provided that such actions are not intended to and would not reasonably be expected to require public disclosure of such actions, (iii) make any public or private statement or announcement with respect to a Specified Transaction that is
publicly announced by the Company or a Third Party or (iv) take actions in furtherance of identifying director candidates in connection with the 2020 Annual Meeting (if the Cooperation Period is extended to the Outside Expiration Time pursuant
to Section 2(a) or 2(b)) so long as such actions do not create a public disclosure obligation for the Investor or the Company and are undertaken on a basis reasonably designed to be confidential and in accordance in all material respects with
the Investor’s normal practices in the circumstances. 
 3.    Public Announcement. 

(a)    The Investors and the Company will announce this Agreement and the material terms hereof including the terms of this
Section 3 by means of a joint press release in the form attached to this Agreement as Exhibit B (the “Press Release”) and the filing of a Current Report on Form 8-K as soon as practicable
but in no event later than 7:00 a.m., New York City time, on September 18, 2018. 
 (b)    Neither the Company nor
the Investors, nor any of their respective Affiliates or Associates, will issue a press release in connection with this Agreement, other than as mutually agreed by the Company and the Investors. 

4.    Confidentiality and Disclosure. Nothing in this Agreement will require the Company or any Investor to
(a) enter into a confidentiality agreement with any other party to this Agreement or (b) disclose any non-public information to any other party to this Agreement. 

5.    Representations and Warranties of the Company. The Company represents and warrants to the Investors as
follows: (a) the Company has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated by this Agreement and (b) this Agreement has been duly and
validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation and agreement of the Company and is enforceable against the Company in accordance with its terms, except as enforcement of

  
 8 

 
this Agreement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the right of creditors and subject to
general equity principles.     
 6.    Representations and Warranties of the Investors. Each
Investor, severally and not jointly, represents and warrants to the Company as follows: (a) such Investor has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the
transactions contemplated by this Agreement, (b) this Agreement has been duly and validly authorized, executed and delivered by such Investor, constitutes a valid and binding obligation and agreement of such Investor and is enforceable against
such Investor in accordance with its terms, except as enforcement of this Agreement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the right of creditors and
subject to general equity principles, (c) the Investors have advised the Company of their aggregate beneficial ownership of shares of Company Common Stock and the number of shares of Company Common Stock the Investors have the right to vote as
of the date of this Agreement, and as of the date of this Agreement, the Investors and their Affiliates have aggregate economic exposure to 13,600,000 shares of Company Common Stock. Elliott agrees during the Cooperation Period to update and advise
the Company of Elliott’s beneficial ownership (which shall include a combination of Elliott’s economic and beneficial ownership (as determined under Rule 13d-3 under the Exchange Act)) of shares of
Company Common Stock as of such date as any New Director (or any Replacement New Director) ceases to be director, as promptly as practicable after such date. 

7.    Definitions. For purposes of this Agreement: 

(a)    the terms “Affiliate” and “Associate” have the respective meanings set forth in
Rule 12b-2 promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”); 

(b)    the terms “beneficial owner” and “beneficially own” have the same meanings as set
forth in Rule 13d-3 promulgated by the SEC under the Exchange Act except that a person will also be deemed to be the beneficial owner of all shares of the Company’s capital stock which such person has the
right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to the exercise of any rights in connection with any securities or any agreement, arrangement or understanding (whether or not in writing),
regardless of when such rights may be exercised and whether they are conditional, and all shares of the Company’s capital stock which such person or any of such person’s Affiliates or Associates has or shares the right to vote or dispose;

 (c)    the term “Early Expiration Time” means 11:59 pm, New York time, on the December 31,
2019; 
 (d)    the term “Independent” means that such person qualifies as independent of the Company
under all applicable listing standards, applicable rules of the SEC and 

  
 9 

 
publicly disclosed standards used by the Board in determining the independence of the Company’s directors; 

(e)    the term “Outside Expiration Time” means 11:59 pm, New York time, on September 30, 2020; 

(f)    the terms “person” or “persons” mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability or unlimited liability company, joint venture, estate, trust, association, organization or other entity of
any kind or nature; 
 (g)    the term “Qualified Director” shall mean an individual who
(i) qualifies as Independent, (ii) is not an employee, director, general partner, manager or other agent of an Investor or of any Affiliate of an Investor, (iii) is not a limited partner, member or other investor in any Investor or
any Affiliate of an Investor, (iv) does not have any agreement, arrangement or understanding, written or oral, with any Investor or any Affiliate of an Investor regarding such person’s service as a director on the Board, and (v) meets
all other qualifications required for service as a director set forth in the Bylaws and the Company’s Corporate Governance Guidelines and Code of Business Conduct and Ethics for Board of Directors and Senior Officers; 

(h)    the term “SEC” means the U.S. Securities and Exchange Commission; 

(i)    the term “Specified Transaction” means any (i) individual acquisition, disposition or
investment involving the Company or any of its subsidiaries or joint ventures, or any of their respective securities or assets, in an amount in excess of $5,000,000,000, (ii) any issuance by the Company of such number of shares of Company Common
Stock (or securities convertible or exchangeable into or exercisable for such shares of Company Common Stock) equal to 10% or more of the then outstanding shares of Company Common Stock, calculated on an as converted basis, other than in connection
with an acquisition, disposition or investment involving the Company or any of its subsidiaries or joint ventures, or any of their respective securities or assets, or (iii) any transaction that would require a vote of the shareholders of the
Company to approve the transaction or the issuance of shares in connection with such transaction; 
 (j)    the term
“Trading Day” means a day on which the New York Stock Exchange is open for trading; and 
 (k)    the
term “30-Day VWAP” means, as of any date, the volume weighted average price per share of Company Common Stock on the New York Stock Exchange (as reported by Bloomberg L.P. or, if not
available, by another authoritative source mutually agreed by the Company and the Investors) from 9:30 am, New York time, on the Trading Day that is thirty (30) Trading Days preceding such date to 4:00 pm, New York City time) on the last
Trading Day immediately preceding such date. 

  
 10 

 8.    Notices. All notices, consents, requests, instructions,
approvals and other communications provided for herein and all legal process in regard to this Agreement will be in writing and will be deemed validly given, made or served, if (a) given by telecopy and email, when such telecopy is transmitted
to the telecopy number set forth below and sent to the email address set forth below or (b) if given by any other means, when actually received during normal business hours at the address specified in this Section: 

if to the Company: 

Sempra Energy 

488 8th Avenue 

San Diego, California 92101 

Attention: Martha B. Wyrsch 

Telephone: (619) 696-4325 

Email: MWyrsch@sempra.com 

with a copy to: 

Sullivan & Cromwell LLP 

125 Broad Street 

New York, New York 10004-2498 

Attention: Joseph B. Frumkin 

Telephone: (212) 558-4101 

Email: frumkinj@sullcrom.com 

Attention: Audra D. Cohen 

Telephone: (212) 558-3275 

Email: cohena@sullcrom.com 

White & Case LLP 

1221 Avenue of the Americas 

New York, New York 10020-1095 

Attention: Thomas Lauria 

Telephone: (305) 995-5282 

Email: tlauria@whitecase.com 

if to Elliott: 

Elliott Associates, L.P. 

Elliott International, L.P. 

40 West 57th Street 

New York, New York 10019 

Attention: Jesse A. Cohn 

Telephone: (212) 974-6000 

Email: jcohn@elliottmgmt.com 

  
 11 

 with a copy to: 

Akin Gump Strauss Hauer & Feld LLP 

1 Bryant Park 

New York, New York 10036 

Attention: Jeffrey L. Kochian 

Telephone: (212) 872-8069 

E-mail: jkochian@akingump.com 

Olshan Frome Wolosky LLP 

1325 Avenue of the Americas 

New York, New York 10019 

Attention: Steve Wolosky 

                 Andrew Freedman 

Telephone: (212) 451-2333 

                   (212) 451-2250 
 Email: swolosky@olshanlaw.com 

            afreedman@olshanlaw.com 

if to Bluescape: 

Bluescape Resources Company LLC 

200 Crescent Court, Suite 1900 

Dallas, Texas 75201 

Attention: Charles John Wilder, Jr. 

Telephone: (214) 855-2262 

Email: cjwilder@bluescapegroup.com 

with a copy to: 

Kirkland & Ellis LLP 

601 Lexington Avenue 

New York, New York 10022 

Attention: Claire E. James 

Telephone: (212) 909-3287 

Email: Claire.james@kirkland.com 

if to Cove Key: 

Cove Key Management, LP 

5847 San Felipe Street, Suite 1560 

Houston, Texas 77057 

Attention: John Kiani 

Telephone: (346) 571-2528 

Email: john@covekey.com 

  
 12 

 with a copy to: 

Kirkland & Ellis LLP 

601 Lexington Avenue 

New York, New York 10022 

Attention: Claire E. James 

Telephone: (212) 909-3287 

Email: Claire.james@kirkland.com 

9.    Expenses. All attorneys’ fees, costs and expenses incurred in connection with this Agreement and all
matters related to this Agreement will be paid by the party incurring such fees, costs or expenses. 

10.    Specific Performance; Remedies; Venue. 

(a)    The Company and the Investors acknowledge and agree that irreparable injury to the other party hereto would occur in
the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that such injury would not be adequately compensable by the remedies available at law (including the payment
of money damages). It is accordingly agreed that the Company and the Investors will be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, in
addition to any other remedy to which they are entitled at law or in equity. FURTHERMORE, THE COMPANY AND EACH INVESTOR AGREES (1) THE NON-BREACHING PARTY WILL BE ENTITLED TO INJUNCTIVE AND OTHER
EQUITABLE RELIEF, WITHOUT PROOF OF ACTUAL DAMAGES; (2) THE BREACHING PARTY WILL NOT PLEAD IN DEFENSE THERETO THAT THERE WOULD BE AN ADEQUATE REMEDY AT LAW; AND (3) THE BREACHING PARTY AGREES TO WAIVE ANY BONDING REQUIREMENT UNDER ANY
APPLICABLE LAW, IN THE CASE ANY OTHER PARTY SEEKS TO ENFORCE THE TERMS BY WAY OF EQUITABLE RELIEF. THIS AGREEMENT WILL BE GOVERNED IN ALL RESPECTS, INCLUDING VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING
EFFECT TO THE CHOICE OF LAW PRINCIPLES OF SUCH STATE. 
 (b)    The Company and each Investor (a) irrevocably and
unconditionally submits to the personal jurisdiction of the federal or state courts located in the State of Delaware, (b) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any
such court, (c) agrees that any actions or proceedings arising in connection with this Agreement or the transactions contemplated by this Agreement shall be brought, tried and determined only in the federal or state courts located in the State
of Delaware, (d) waives any claim of improper venue or any claim that those courts are an inconvenient forum and (e) agrees that it will not bring any action relating to this Agreement or the transactions contemplated hereunder in any
court 

  
 13 

 
other than the aforesaid courts. The parties to this Agreement agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in
Section 8 or in such other manner as may be permitted by applicable law as sufficient service of process, shall be valid and sufficient service thereof. 

11.    Severability. If at any time subsequent to the date hereof, any provision of this Agreement is held by any
court of competent jurisdiction to be illegal, void or unenforceable, such provision will be of no force and effect, but the illegality or unenforceability of such provision will have no effect upon the legality or enforceability of any other
provision of this Agreement. 
 12.    Termination. This Agreement will terminate on the expiry of the
Cooperation Period. Upon such termination, this Agreement shall have no further force and effect. Notwithstanding the foregoing, Sections 7, 8, 10, 11, 12, 14, 15, 16, 17 and 18 hereof shall survive termination of this Agreement and no termination
of this Agreement shall relieve any party of liability for any breach of this Agreement arising prior to such termination. 

13.    Counterparts. This Agreement may be executed in one or more counterparts and by scanned computer image (such
as pdf), each of which will be deemed to be an original copy of this Agreement. 
 14.    No Third Party
Beneficiaries. This Agreement is solely for the benefit of the Company and the Investors and is not enforceable by any other persons. No party to this Agreement may assign its rights or delegate its obligations under this Agreement, whether by
operation of law or otherwise, and any assignment in contravention hereof will be null and void. 
 15.    No
Waiver. No failure or delay by any party in exercising any right or remedy hereunder will operate as a waiver thereof, nor will any single or partial waiver thereof preclude any other or further exercise thereof or the exercise of any other
right or remedy hereunder. 
 16.    Several Liability. The obligations of each of the Investors under this
Agreement shall be several (and not joint) and no Investor shall be responsible in any way for the actions or omissions of the other Investor. 

17.    Entire Understanding. This Agreement contains the entire understanding of the parties with respect to the
subject matter hereof and supersedes any and all prior and contemporaneous agreements, memoranda, arrangements and understandings, both written and oral, between the parties, or any of them, with respect to the subject matter of this Agreement. This
Agreement may be amended only by an agreement in writing executed by the Company and the Investors. 

18.    Interpretation and Construction. The Company and each Investor acknowledges that it has been represented by
counsel of its choice throughout all 

  
 14 

 
negotiations that have preceded the execution of this Agreement, and that it has executed the same with the advice of said counsel. Each party and its counsel cooperated and participated in the
drafting and preparation of this Agreement and the documents referred to herein, and any and all drafts relating thereto exchanged among the parties will be deemed the work product of all of the parties and may not be construed against any party by
reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any party that drafted or prepared it is of no application and is hereby
expressly waived by the Company and each Investor, and any controversy over interpretations of this Agreement will be decided without regard to events of drafting or preparation. Whenever this Agreement permits or requires action or consent by the
Investors, action or consent of Elliott shall for all purposes be action or consent by the Investors. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be
followed by the words “without limitation.” 
 [Signature page follows] 

  
 15 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatories
of the parties as of the date hereof. 
 INVESTORS 

 

			
	ELLIOTT ASSOCIATES, L.P.
		
	By:	 	Elliott Capital Advisors, L.P.,
		 	as General Partner
	By:	 	Braxton Associates, Inc.,
		 	as General Partner
		
	By:	 	 /s/ Elliot Greenberg

	Name:	 	Elliot Greenberg
	Title:	 	Vice President
	
	ELLIOTT INTERNATIONAL, L.P.
		
	By:	 	Elliott International Capital Advisors Inc.,
		 	as Attorney-in-Fact
		
	By:	 	 /s/ Elliot Greenberg

	Name:	 	Elliot Greenberg
	Title:	 	Vice President

 *    *    *    * 

[Signature page to Cooperation Agreement] 

 
			
	BLUESCAPE RESOURCES COMPANY LLC
		
	By:	 	 /s/ C.J. Wilder

	Name:	 	C.J. Wilder
	Title:	 	Executive Chairman
	
	COVE KEY MANAGEMENT, LP
		
	By:	 	 /s/ John Kiani

	Name:	 	John Kiani
	Title:	 	Co-Founder, Portfolio Manager

 *    *    *    * 

[Signature page to Cooperation Agreement] 

 THE COMPANY 

 

			
	SEMPRA ENERGY
		
	By:	 	 /s/ J. Walker Martin

	Name:	 	J. Walker Martin
	Title:	 	Chief Executive Officer

 [Signature page to Cooperation Agreement] 

 Exhibit A 

LNG and Business Development Committee Charter 
  

	 	•	 	 Purpose and Responsibilities. The purpose and responsibilities of the Committee are to:

  

	 	•	 	 at the direction of the Company’s board of directors (the “Board”), serve as an advisor to
the Board and management in conducting a comprehensive business review of the Company presided over by the chair of the Committee (“Business Review”); 

 

	 	•	 	 review and analyze issues pertaining to the Business Review, subject to the direction of the Board;

  

	 	•	 	 oversee the management and resolution of issues relating to the Business Review, subject to the direction of the
Board; and 

  

	 	•	 	 report to the Board the results of the Business Review and the corresponding formal recommendations of the
Committee, such that the Company will be able to publicly announce the foregoing during Q1 2019 and Q1 2020. 

  

	 	•	 	 Membership 

The Committee will initially consist of three independent members of the Board, including Alan Boeckmann, William Rusnack and James Yardley. 

The Board will appoint two additional independent members of the Board to the Committee, and the Committee will thereafter consist of five independent members
of the Board. 
 All members and alternate members of the Committee must be “independent” within the meaning of the Company’s Corporate
Governance Guidelines and the rules of the New York Stock Exchange. 
  

	 	•	 	 Power and Authority 

In addition to the powers and responsibilities expressly delegated to the Committee in this charter, the Committee may exercise any other powers and carry out
any other responsibilities from time to time delegated to it by the Board. 
 The powers and responsibilities delegated to the Committee may be exercised in
any manner the Committee deems appropriate (including delegation to subcommittees) and without any requirement for Board approval except as otherwise specified in this charter or the Board’s delegation. Any decision by the Committee, including
any decision to exercise or refrain from exercising any of its delegated powers, is at the Committee’s sole 

 
discretion. While acting within the scope of the powers and responsibilities delegated to it, the Committee may exercise all the powers and authority of the Board and, to the fullest extent
permitted by law, has the authority to determine which matters are within the scope of its delegated authority. 
 The Committee will take action by
majority vote of all members of the Committee. 
 The Committee will be provided by the Company the resources and authority necessary for the Committee to
discharge its purpose, responsibilities and duties, including: 
  

	 	(a)	 to retain and terminate its own independent consultants and other advisors and experts, including but not
limited to accounting, financial and legal advisors (“Professional Advisors”), on such terms as the Committee considers appropriate and at the expense of the Company; and 

 

	 	(b)	 to direct the Company’s management to assist the Committee and its Professional Advisors and provide them
with information relevant to the Business Review as to which the Committee from time to time is acting. 

  

	 	•	 	 Procedures 

The Committee will determine its own rules of procedure with respect to the call, place, time and frequency of its meetings. 

The chair of the Committee or the acting chair will report on the Committee’s activities to the Board at appropriate times and as otherwise requested by
the chairman of the Board or the lead independent director. 
 All members of the Committee will have a reasonable opportunity to report to the Board the
results of the Business Review and his or her corresponding recommendations to the Board, including such results and recommendations that have not been adopted by majority vote of all members of the Committee.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}]]