Document:

Exhibit 10.2

  

   

  

  
    Execution Version

    CONFIDENTIAL

    

    

    MEMORANDUM OF UNDERSTANDING

    

    

    3 MAY, 2019

    

    

    This Memorandum of Understanding sets forth the binding agreement between Occidental Petroleum Corporation, a Delaware corporation (“Seller”), and Total S.A., a French
      société anonyme (“Purchaser” and, together with Seller, the “Parties”), regarding the acquisition by Purchaser of all of the assets, liabilities, businesses and operations of Anadarko Petroleum Corporation (“APC”) in Algeria,
      Ghana, Mozambique, and South Africa (collectively, the “Acquired Business”, and such acquisition, the “Transaction”), all as more specifically described below.

    

    

    	
            1.

          	
            Purchase Price:

          	
            At the Closing, Purchaser shall acquire the Acquired Business for $8.8 billion USD in cash, on a cash-free, debt-free basis.

          
	

          	 	 	 
	
            2.

          	
            Transaction Structure and Scope:

          	
            The Parties shall cooperate to structure the Transaction in a tax efficient manner in compliance with applicable laws, including by way of a sale of applicable interests in entities
              holding the Acquired Business, the assets of the Acquired Business or a combination thereof. The purchase agreement between the Parties for the Transaction (the “Purchase Agreement”) shall reflect an allocation of the Purchase Price
              among the various assets comprising the Acquired Business, on a country-by-country basis, as mutually agreed by the Parties.

             

            

            Subject to the last paragraph of Section 4, in the event any material portion of the Acquired Business were not available to be sold by Seller at Closing, Seller shall offer Purchaser
              to acquire the rest of the Acquired Business under the terms of this Memorandum of Understanding, and Purchaser shall have a right to acquire the same, provided that in such an event Purchaser will have a right not to acquire the Ghana assets
              whether on their own or in a combination, subject to the corresponding adjustments of the Purchase Price by the allocated value of the portion of the Acquired Business that was excluded. 

            

          
	 	 	 	 
	 	 	
            To the extent that APC has any assets, liabilities, businesses or operations in any African country other than Algeria, Ghana, Mozambique and South Africa, the Parties will discuss in
              good faith whether to include such assets, liabilities, businesses or operations in the Acquired Business, such inclusion to be subject to the Parties’ mutual agreement. 

             

            

            Subject to compliance with all applicable laws, the Seller will use its reasonable best efforts to request that APC consider Purchaser’s desire to enter into an agreement with APC (as
              soon as reasonably practicable following the signing of the Acquisition Agreement between APC and the Seller) for the Purchaser to offtake a minimum of 2 and up to 3 million tons per annum (MTPA) of LNG from Mozambique LNG.

          

    
      
        

    

    
    	 	 	 	 
	
            3.

          	
            Closing:

          	
            The Parties agree that they shall use their reasonable best efforts to obtain all necessary regulatory approvals as soon as practicable following the date hereof. 

             

            

            The Parties agree that the closing of the Transaction (the “Closing”) shall take place at 10:00 a.m. (New York City time) on the second business day following the satisfaction or
              waiver of the conditions set forth under “Conditions to Closing”, subject to adjustment as necessary to implement the transaction structure determined pursuant to Section 2.

             

            

            Notwithstanding the actual date of, but subject to the occurrence of, the Closing, the consummation of the purchase and sale of the Acquired Business will be deemed to have economic
              effect from January 1, 2019 (the “Economic Effective Date”).

          
	 	 	 	 
	
            4.

          	
            Conditions to Closing:

          	
            The obligations of each Party to consummate the Transaction are subject to the satisfaction or waiver of the following conditions:

             
	 	 	
            (a)

          	Seller and APC shall have entered into a definitive agreement providing for the acquisition of APC by Seller (the “APC Acquisition Agreement”), and such acquisition shall have been
            consummated.
	 	 	 
	 	 	
            (b)

             	Execution and delivery of the Purchase Agreement by Purchaser and Seller.
	 	 	
            (c)

             	Receipt of all required governmental approvals.
	 	 	
            (d)

             	
            Absence of any provision of applicable law or any judgment, injunction, order or decree restraining, enjoining or otherwise prohibiting the consummation of the Transaction.

             

            

          
	 	 	
            The obligations of Seller to consummate the Transaction are subject to the satisfaction or waiver of the following additional conditions:

             
	 	 	
            (i)

             	
            Compliance in all material respects with the covenants to be performed by Purchaser as of the Closing under the Purchase Agreement.

             

            

          
	 	 	
            (ii)

             	Accuracy of the representations and warranties of Purchaser contained in the Purchase Agreement in all material respects as of the Closing (or with respect to representations and
            warranties made as of a particular date, as of such date).

    
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            The obligations of Purchaser to consummate the Transaction are subject to the satisfaction or waiver of the following additional conditions:

             
	 	 	
            (A)

          	
            Absence of the occurrence of a Material Adverse Effect on the Acquired Business since January l, 2019.

             

            

          
	 	 	
            (B)

             	
            Compliance in all material respects with the covenants to be performed by Seller as of the Closing under the Purchase Agreement.

             

            

          
	 	 	(C)	
            Accuracy of the representations and warranties of Seller contained in the Purchase Agreement in all material respects as of the Closing (or with respect to representations and warranties made as of a particular date, as of such date): 
                provided that any representations and warranties made with respect to the business, operations or financial condition of the Acquired Business shall be subject to an overall qualification as to Material Adverse Effect. 

              

            

          
	 	 	 
	 	 	 	“Material Adverse Effect” shall be defined in a manner consistent with the definition of such term in the CVX Agreement (as defined below), applied to the Acquired Business taken as
            a whole. 
	 	 	 	 
	 	 	
            

            

          	In the event all other Conditions to Closing are satisfied or waived and certain governmental approvals to the Transaction are still outstanding, the Parties agree to consummate the
            Transaction in relation to the portion(s) of the Acquired Business for which governmental approvals have been obtained, and the Purchase Price will be adjusted to reflect the corresponding value of the Acquired Business’ portions as per the
            Purchase Agreement. The Parties will use their reasonable best efforts to obtain the missing governmental approvals within 12 months following Closing, which period may be extended by mutual agreement for up to two additional six-month periods.
            Upon any subsequent closing of the acquisition of portions of the Acquired Business, the portion of the Purchase Price will be paid by Purchaser to Seller. 

          
	 	 	 	 
	
            5.

          	
            Restrictions on Waivers:

          	
            The Parties agree that with respect to any covenants in favor of Seller under the APC Acquisition Agreement, Seller shall not grant any consents or waivers under the APC Acquisition
              Agreement without Purchaser’s prior consent, to the extent any such waiver or consent relates primarily to the Acquired Business. Without limiting the generality of the foregoing, Seller agrees not to grant any consents or waivers under the
              APC Acquisition Agreement in relation to any proposed disposal by APC of any portion of the Acquired Business without Purchaser’s prior consent.

             

    

    

    
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            6.:

          	
            Definitive Documentation:

          	
            The Parties agree to negotiate in good faith and cooperate (and use reasonable best efforts to seek and obtain the required governmental approvals) to prepare, as promptly as reasonably
              practicable following the date hereof, a Purchase Agreement and any additional documentation necessary or advisable to give effect to the Transaction, and to execute and deliver such Purchase Agreement as promptly as practicable following the
              execution of the APC Acquisition Agreement. The Purchase Agreement shall reflect the terms of this Memorandum of Understanding and shall otherwise be in the form of the Agreement and Plan of Merger, dated as of April 11, 2019 (the “CVX
                Agreement”), by and among Chevron Corporation, Justify Merger Sub 1 Inc., Justify Merger Sub 2 Inc. and APC, with only such modifications as are necessary to reflect the Parties, the agreed-upon structure, all-cash consideration and the
              scope of the Acquired Business; provided that, subject to Section 5, interim operating covenants in the Purchase Agreement shall be limited to matters over which Seller has a consent right under the APC Acquisition Agreement.

          
	 	 	 	 
	
            7.

          	
            Due Diligence:

          	
            Seller confirms to Purchaser that, to the actual knowledge of Cedric Burgher, Oscar Brown and Michael Ure, it is not aware of any information, except for any disclosures made by APC in
              its securities filings, (i) that would affect the value of the Acquired Businesses in such a way that would have a Material Adverse Effect and (ii) that provides for or indicates the existence of any pre-emptive rights held by third parties
              that would prevent the consummation of the Transaction (assuming the Transaction is structured as a sale of applicable interests in entities holding the Acquired Business).

             
	 	 	 	 
	
            8.

          	
            Representations and Warranties - Memorandum of Understanding:

          	
            Seller hereby represents and warrants to Purchaser that this Memorandum of Understanding has been duly authorized, executed and delivered by Seller and constitutes a valid and binding
              agreement of Seller. For the avoidance of doubt, Seller hereby represents and warrants to Purchaser that no other discussions or offers from a third party regarding the Acquired Business will be considered up until the consummation of the
              Transaction or the termination of this Memorandum as per Section 10.

             
	 	 	
            Purchaser hereby represents and warrants to Seller that (i) this Memorandum of Understanding has been duly authorized, executed and delivered by Purchaser and constitutes a valid and
              binding agreement of Purchaser and (ii) it has conducted its own independent investigation, review and analysis of the Acquired Business and is entering into this Memorandum of Understanding based solely on publicly available information. For
              the avoidance of doubt, Purchaser hereby represents and warrants to Seller that no other discussions or offers from a third party (including APC or any other potential acquirer of APC) regarding the Acquired Business will be considered up
              until the consummation of the Transaction or the termination of this Memorandum as per Section 10.

          

    
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            9.

          	
            Representations and Warranties - 

            Purchase Agreement:

          	
            The Purchase Agreement shall contain customary representations and warranties of each party regarding organization, authority, due execution, no conflicts and brokers’ or finders’ fees.

             
	 	 	
            The Purchase Agreement shall also contain customary representations of Seller regarding the business, operations and financial condition of the Acquired Business substantially in the
              form of the representations and warranties regarding the business, operations and financial condition of APC contained in the CVX Agreement.

             
	 	 	
            The Purchase Agreement shall also contain representations and warranties of Purchaser (a) relating to its ability to pay the purchase price for the Transaction and (b) that it has
              conducted its own independent investigation, review and analysis of the Acquired Business and has not relied on, and acknowledges that Seller and its affiliates and representatives have not made, any express or implied representation or
              warranty other than those expressly set forth in the Purchase Agreement.

             
	 	 	
            None of the representations and warranties of Purchaser and Seller will survive the Closing.

          
	 	 	 	 
	
            10.

          	
            Termination:

          	
            Either Party may terminate this Memorandum of Understanding, by written notice to the other Party, (1) if the Closing has not occurred by December 1, 2020; provided that if
              either Party is not using its good faith and reasonable best efforts to cause the conditions to Closing to be satisfied, the other Party may terminate this Memorandum of Understanding earlier than such date, or (2) if any judgment,
              injunction, order or decree permanently restraining, enjoining or otherwise prohibiting consummation of the Transaction shall have become final and non-appealable.

          
	 	 	 	 
	
            11.

          	
            Taxes:

          	
             (i)  

            

             	All transfer, documentary, sales, use, stamp, registration, value added, capital gains, and other such taxes and fees (including those taxes and fees referred to as income taxes)
            (including any penalties and interest) incurred in connection with Seller’s acquisition of APC solely to the extent arising with respect to the Acquired Business, the Transaction, this Memorandum of Understanding or the Purchase Agreement (“Transfer

              Taxes” or individually a “Transfer Tax”), in the aggregate, shall be borne by Seller in respect of the first $500 million USD and thereafter by Seller and Purchaser in equal shares.

    
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	 	 	(ii) 	Notwithstanding the foregoing, if any Transfer Taxes are imposed by the same taxing jurisdiction on both the APC Acquisition Agreement and the Purchase Agreement, then such Transfer Taxes
            relating to the APC Acquisition Agreement will be the sole obligation of the Seller (and, for the avoidance of doubt, such Transfer Taxes relating to the Purchase Agreement only shall be subject to the allocation mechanism between Seller and
            Purchaser described in clause 11(i) above).
	 	 	 	 
	 	 	(iii)	
            All taxes (including income taxes), other than Transfer Taxes, imposed on the entities holding the Acquired Business, Seller, APC or any of their affiliates with respect to the Acquired Business in any taxable period (or portion thereof)
              beginning on or after the Economic Effective Date shall be borne by Purchaser.

             

            

          
	
            12.

          	
            Costs:

          	
            Each Party shall bear its own costs (including legal, accounting and other fees) relating to this Memorandum of Understanding, the Purchase Agreement and the Transaction.

          
	 	 	 	 
	
            13.

          	
            Assignment:

          	
            The Parties agree either Party may assign its rights under this Memorandum of Understanding to an affiliate, so long as such Party remains responsible for its obligations hereunder.

          
	 	 	 	 
	
            14.

          	
            Governing Law; Jurisdiction:

          	
            This Memorandum of Understanding and the Purchase Agreement shall be governed by the laws of the State of Delaware, without giving effect to principles of conflicts of laws thereof.
              Each Party hereby irrevocably (a) submits to the exclusive jurisdiction of the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware, or in the event that such court does not have subject matter
              jurisdiction over the applicable action, suit or proceeding, the other courts of the State of Delaware and the Federal courts of the United States of America located in the State of Delaware, (b) waives, and agrees not to assert, as a defense
              or otherwise, any claim that it is not subject to the personal jurisdiction of such courts or that such action, suit or proceeding may not be brought or is not maintainable in such courts or that the venue thereof may not be appropriate and
              (c) agrees not to commence any action, suit or proceeding arising out of or based on this Memorandum of Understanding or the subject matter hereof other than before such courts (except for actions to enforce the judgment of such courts) nor
              make any motion or take any other action seeking or intending to cause the transfer or removal of any such action, suit or proceeding to any other court whether on the grounds of inconvenient forum or otherwise.

             

            

            EACH PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS MEMORANDUM OF UNDERSTANDING, THE PURCHASE AGREEMENT OR
              THE TRANSACTION.

          

    
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            15.

          	
            Agent for Service of Process:

          	
            Without prejudice to any other permitted mode of service, Purchaser irrevocably agrees that service of any claim form, notice or other document for the purpose of this Memorandum of
              Understanding or the Purchase Agreement shall be duly served upon it if delivered personally or sent by pre-paid recorded delivery, special delivery or registered post to the US office of the outside legal adviser that Purchaser will retain
              to assist in the negotiation of the Purchase Agreement and which name shall be communicated by Purchaser to Seller within 3 days as from the press release announcing the execution of this Memorandum of Understanding referred to in Section 18
              below, and Purchaser agrees that failure by such appointed person to notify Purchaser of any such service shall not invalidate the proceedings concerned.

             

            

            Without prejudice to any other permitted mode of service, Seller irrevocably agrees that service of any claim, form, notice or other document for the purpose of this Memorandum of
              Understanding or the Purchase Agreement shall be duly served upon it if delivered personally or sent by pre-paid recorded delivery, special delivery or registered post to Occidental Petroleum Corporation, 5 Greenway Plaza, Suite 110, Houston,
              Texas, 77046, Attention: General Counsel, and Seller agrees that failure by such appointed person to notify Seller of any such service shall not invalidate.

             
	 	 	 	 
	
            16.

          	
            Specific Performance:

          	
            The Parties agree that irreparable damage would occur in the event that any of the provisions of this Memorandum of Understanding were not performed in accordance with their specific
              terms or were otherwise breached. It is accordingly agreed that the Parties shall be entitled to an injunction or injunctions, without the posting of any bond, to prevent breaches of this Memorandum of Understanding and to enforce
              specifically the terms and provisions of this Memorandum of Understanding in the Delaware Court of Chancery (and if the Delaware Court of Chancery shall be unavailable, in any Delaware State court or the federal court of the United States of
              America sitting in the State of Delaware), this being in addition to any other remedy to which they are entitled at law or in equity.

          

    
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            17.

          	
            Further Cooperation and Assistance:

          	
            The Parties will cooperate to take any further action necessary or desirable to implement or otherwise consummate the transactions contemplated hereby.

          
	 	 	 	 
	
            18.

          	
            Public Announcements and Confidentiality:

          	
            The Parties shall maintain the confidentiality of this Memorandum of Understanding and shall not disclose such terms to any other person, other than their respective representatives,
              and shall ensure that neither they nor their representatives or affiliates shall issue any press release or make any other public statement with respect to this Memorandum of Understanding, the Purchase Agreement or the existence or status of
              any discussions or negotiations among the parties hereto with respect to the matters contemplated in this Memorandum of Understanding or the Purchase Agreement except (i) with the prior written consent of the other Party (which consent shall
              not be unreasonably withheld), (ii) as required by law, rule or regulation (including applicable stock exchange rules), or (iii) Seller may provide a copy of this Memorandum of Understanding (and disclose the terms thereof) to APC and its
              advisors; provided that the Parties hereto may each issue a press release announcing the execution of this Memorandum of Understanding, such press release to be in a form mutually agreed by the Parties.

            

          

    

    

    [Signature Page Follows]

    
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    IN WITNESS WHEREOF, the Parties have duly executed this Memorandum of Understanding as of the date first written above.

    

    

    
      	 	
              OCCIDENTAL PETROLEUM CORPORATION

            
	 	 	 	 
	 	 	by

            	/s/ Vicki Hollub
	 	 	 	
              Name: Vicki Hollub 

              

            
	 	 	 	Title: President and CEO
	 	 	 	
              

              

            
	 	 TOTAL S.A.  
	 	 	 	 
	 	 	by	
              /s/ Patrick Pouyanné 

            
	 	 	 	Name: Patrick Pouyanné
	 	 	 	Title: Chairman and CEO
	 	 	 	 

    

    

    9wellsgpmtamendmentno1toa

                                                         EXECUTION VERSION                            AMENDMENT NUMBER ONE                                      to the        Amended and Restated Master Repurchase Agreement and Securities Contract                              dated as of May 9, 2018                                     between                            GP COMMERCIAL WF LLC                                       and                 WELLS FARGO BANK, NATIONAL ASSOCIATION              THIS AMENDMENT NUMBER ONE to the Repurchase Agreement (as defined below) (this “Amendment”) is made this 28th day of June, 2019, between GP COMMERCIAL WF LLC (“Seller”) and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Buyer”).              WHEREAS, Seller and Buyer entered into (i) that certain Amended and Restated Master Repurchase Agreement and Securities Contract, dated as of May 9, 2018, by and between Seller and Buyer (as the same has been and may be further amended, restated, supplemented or otherwise modified from time to time, the “Repurchase Agreement”), and (ii) that certain Third Amended and Restated Fee and Pricing Letter, dated as of June 28, 2019, by and between Seller and Buyer (as the same has been and may be further amended, restated, supplemented or otherwise modified from time to time, the “Fee Letter”); and              WHEREAS, Seller and Buyer have agreed to amend the Repurchase Agreement as set forth herein.              NOW   THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and for the mutual covenants herein contained, the parties hereto hereby agree as follows:              SECTION 1.  Amendments. Effective as of the date of this Amendment the Repurchase Agreement is hereby amended as follows:              (a)   Section 2.01 of the Repurchase Agreement is hereby amended by adding the definitions of “BHC Act Affiliate”, “Default Right” and “U.S. Special Resolution Regime” in the appropriate alphabetical order:                    “BHC Act Affiliate”: The meaning assigned to the term “affiliate” in, and       shall be interpreted in accordance with, 12 U.S.C. § 1841(k).                    “Default Right”: The meaning assigned to that term in, and shall be       interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.                    “U.S. Special Resolution Regime”: Each of (i) the Federal Deposit       Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-       Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated       thereunder.              (b)   Section 2.01 of the Repurchase Agreement is hereby amended by deleting the definitions of “Debt Yield”, “Extension Period”, “Initial Termination Date”, “Maximum   LEGAL02/39011234v4 

 

Amount”, “Repurchase Documents”, “Revolving Period” and “Revolving Period Expiration Date” in their respective entireties and replacing them with the following:                    “Debt Yield”: With respect to any Purchased Asset, as of any date of       determination, the percentage equivalent of the quotient obtained by dividing (i) the       underwritten annual net operating income or net cash flow as of such date with respect to       the Mortgaged Properties securing such Purchased Asset, as determined by Buyer in its       discretion, by (ii) the Purchase Price of such Purchased Asset as of such date.                    “Extension Period”: The First Extension Period or the Second Extension       Period, as applicable.                    “Initial Termination Date”: June 28, 2021.                    “Maximum   Amount”:   As  of  the  Amendment   Effective Date,       $200,000,000 and, if Seller elects to exercise the Upsize Option, upon Buyer’s agreement       to grant the Upsize Option in accordance with all terms and conditions of Section 3.06(c),       an amount up to $350,000,000. The Maximum Amount shall not be increased by any       Future Funding Transaction or reduced upon the repurchase of any Purchased Asset prior       to the earlier of the Revolving Period Expiration Date and the Termination Date;       provided, that on and after the earlier of the Revolving Period Expiration Date and the       Termination Date, the Maximum Amount on any date shall be an amount equal to the       sum of (a) the then-current Aggregate Amount Outstanding, and (b) the Applicable       Percentage of those remaining future funding obligations that are scheduled in the       Confirmation for the related Purchased Assets, as such amounts decline as Future       Funding Transactions under Section 3.10 are funded, Purchased Assets are repurchased       and Margin Deficits are satisfied, all in accordance with the applicable terms of this       Agreement.                    “Revolving Period”: The period from the Amendment Effective Date to       but excluding the Initial Termination Date.                    “Revolving Period Expiration Date”: The earliest to occur of (a) the last       day of the Revolving Period, (b) any Accelerated Repurchase Date, and (c) any date on       which the Termination Date shall otherwise occur in accordance with the provisions       hereof or Requirements of Law.              (c)   Section 2.01 of the Repurchase Agreement is hereby amended by deleting the definitions of “Revolving Period Extension Option” and “Third Extension Period” in their respective entireties.              (d)   Section 3.06 of the Repurchase Agreement is hereby amended by deleting the section in its entirety and replacing it with the following:                    “Section 3.06 Termination Date Extension Options and Maximum       Amount Upsize Options.   LEGAL02/39011234v4 

 

                  (a)   Termination Date Extension Options. Subject to the terms and       conditions of this Section 3.06(a), Seller shall have two (2) options to extend the then-       current Termination Date for a period of one (1) year each (each, an “Extension Period”).       Each extension of the Termination Date shall be subject to the satisfaction of the       following conditions both on the date of Seller’s request to extend and as of the then-       current Termination Date, each as determined by Buyer in its sole discretion (each, an       “Extension Condition”): (i) Seller shall request the extension of the Termination Date in       a writing delivered to Buyer no earlier than ninety (90) days and no later than thirty (30)       days before the then-current Termination Date, (ii) no Default or Event of Default has       occurred and is continuing, (iii) no Margin Deficit shall be outstanding, (iv) Seller shall       be in compliance with the Facility Debt Yield Test; provided, however, if Seller is not in       compliance with the foregoing condition, then Seller may make a payment to Buyer in an       amount sufficient, as determined by Buyer in its sole discretion, to cause each such       condition to be in full compliance prior to the then-current Termination Date, (v) all       Purchased Assets otherwise qualify as Eligible Assets, and (vi) Seller has paid to Buyer       the Extension Fee on or before the then-current Termination Date. If the Extension       Conditions are not fully satisfied as of the current Termination Date, then       notwithstanding any prior approval by Buyer of Seller’s request to extend the then-       current Termination Date, Seller shall have no right to extend the then-current       Termination Date, and any pending request to extend the then-current Termination Date       shall be deemed to be denied. Notwithstanding anything to the contrary in this Section       3.06, in no event shall the Termination Date be extended for more than two (2) Extension       Periods. For the avoidance of doubt, the exercise of an extension of the Termination       Date pursuant to this Section 3.06(a) shall not extend the scheduled Repurchase Date of       any Transaction for a period in excess of one (1) year.                    (b)   [Reserved.]                    (c)   Maximum Amount Upsize Options. At  any time  during the       Revolving Period, but in no event more than three (3) times per calendar year, Seller may       request an increase of the Maximum Amount (the “Upsize Option”) by delivery of       written notice to Buyer of such request not less than thirty (30) days prior to the requested       effective date of the corresponding increase in the Maximum Amount. Each Upsize       Option shall be in an amount not less than $50,000,000. Each Upsize Option in an       amount greater than $50,000,000 shall be in increments of $25,000,000. Seller’s       request(s) to exercise an Upsize Option may be approved or denied by Buyer in Buyer’s       sole and absolute discretion; provided, that a request by Seller to exercise an Upsize       Option will be deemed to be denied if, on the date of the related request or on the       proposed effective date of such request, any of the Extension Conditions set forth in       Section 3.06(a) are not satisfied, as determined by Buyer in Buyer’s sole and absolute       discretion. In addition, no exercise of an Upsize Option shall be effective until Seller has       paid to Buyer the Upsize Fee applicable for the related Upsize Option.”               (e)  The Repurchase Agreement is hereby amended by adding the following        new section immediately following Section 18.25.                    “Section 18.26. Recognition of the U.S. Special Resolution Regimes   LEGAL02/39011234v4 

 

                  (a)   In the event that Buyer becomes subject to a proceeding under a       U.S. Special Resolution Regime, the transfer from Buyer of this Agreement and/or the       Repurchase Documents, and any interest and obligation in or under this Agreement       and/or the Repurchase Documents, will be effective to the same extent as the transfer       would be effective under the U.S. Special Resolution Regime if this Agreement and/or       the Repurchase Documents, and any such interest and obligation, were governed by the       laws of the United States or a state of the United States.                    (b)   In the event that Buyer or a BHC Act Affiliate of Buyer becomes       subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under       this Agreement and/or the Repurchase Documents that may be exercised against Buyer       are permitted to be exercised to no greater extent than such Default Rights could be       exercised under the U.S. Special Resolution Regime if this Agreement and/or the       Repurchase Documents were governed by the laws of the United States or a state of the       United States.”        SECTION 2.  Defined Terms. Any terms capitalized but not otherwise defined herein shall have the respective meanings set forth in the Repurchase Agreement.        SECTION 3.  Conditions Precedent. It shall be a condition precedent to the effectiveness of this Amendment that:               (a)  Seller shall have executed and delivered to Buyer this Amendment and the        Third Amended and Restated Fee and Pricing Letter, dated as of the date hereof (the        “Amendment Documents”);               (b)  Seller shall have paid to Buyer the first installment of the Structuring Fee;        and               (c)  Seller shall have paid to Buyer all other fees and expenses due and owing        to Buyer in connection with the Amendment Documents in accordance with Section 6        of this Amendment.        SECTION 4.  Limited Effect. Except as amended hereby, the Repurchase Agreement shall continue in full force and effect in accordance with its terms. Reference to this Amendment need not be made in the Repurchase Agreement or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to, or with respect to, the Repurchase Agreement, any reference in any of such items to the Repurchase Agreement being sufficient to refer to the Repurchase Agreement as amended hereby.        SECTION 5.  Representations. In order to induce Buyer to execute and deliver this Amendment, Seller hereby represents to Buyer that as of the date hereof, except as otherwise expressly waived by Buyer in writing, Seller is in full compliance with all of the terms and conditions of the Repurchase Agreement, including without limitation, all of the representations and warranties and all of the affirmative and negative covenants, and no Default or Event of Default has occurred and is continuing under the Repurchase Agreement.   LEGAL02/39011234v4 

 

      SECTION 6.  Fees and Expenses. Subject to the limitations specified in Section 13.02 of the Repurchase Agreement, Seller agrees to pay to Buyer all reasonable fees and out of pocket expenses incurred by Buyer in connection with this Amendment (including all reasonable fees and out of pocket costs and expenses of Buyer’s legal counsel incurred in connection with this Amendment) pursuant to Section 13.02 of the Repurchase Agreement.        SECTION 7.  Governing Law. This Amendment and any claim, controversy or dispute arising under or related to or in connection with this Amendment, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties will be governed by the laws of the State of New York without regard to any conflicts of law principles other than Sections 5-1401 and 5-1402 of the New York General Obligations Law.        SECTION 8.  Counterparts. This Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute but one and the same agreement. This Amendment, to the extent signed and delivered by facsimile or other electronic means, shall be treated in all manner and respects as an original agreement and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. No signatory to this Amendment shall raise the use of a facsimile machine or other electronic means to deliver a signature or the fact that any signature or agreement was transmitted or communicated through the use of a facsimile machine or other electronic means as a defense to the formation or enforceability of a contract and each such Person forever waives any such defense.        SECTION 9.  Effect of  Amendment.   This Amendment   and   the transactions contemplated hereby shall not be construed to be, a novation of any of the obligations owing by Seller, Pledgor or Residual Pledgor (the “Repurchase Parties”) under or in connection with the Repurchase Agreement, the Fee Letter, the Pledge and Security Agreement, the Residual Pledge and Security Agreement or any of the other Repurchase Documents to which any Repurchase Party is a party. It is the intention of each of the parties hereto that (i) the perfection and priority of all security interests securing the payment of the obligations of the Repurchase Parties under the Repurchase Agreement, the Pledge and Security Agreement and the Residual Pledge and Security Agreement are preserved, (ii) the liens and security interests granted under Repurchase Agreement, the Pledge and Security Agreement and the Residual Pledge and Security Agreement continue in full force and effect, and (iii) any reference to the Repurchase Agreement in any Repurchase Document or other document or instrument delivered in connection therewith shall be deemed to refer to the Repurchase Agreement, as amended by this Amendment and the provisions hereof.                          [SIGNATURE PAGES FOLLOW]   LEGAL02/39011234v4

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