Document:

Exhibit

	
	
	 

	 

	INTELLECTUAL PROPERTY MATTERS AGREEMENT

	 

	DATED AS OF [l], 2015

	 

	by and between

COMPUTER SCIENCES CORPORATION

and

COMPUTER SCIENCES GOVERNMENT SERVICES INC.

	
			
	 

	 
	 
	 

	
	
	 

	
			
	Section
	 
	Page

	1
	Definitions and Interpretation
	1

	1.1
	General
	1

	1.2
	References; Interpretation
	7

	2
	Grant of Licenses and Option to License to Computer Sciences GS
	7

	2.1
	Grant of CSC Agility License
	7

	2.2
	Grant of Products License
	8

	2.3
	Applicable Licensed Product Items and NPS-Developed Products
	10

	2.4
	Grant of Know-How License
	11

	2.5
	Grant of Trademarks License
	11

	2.6
	Grant of Option to License Other Products
	15

	2.7
	Preservation of Ownership of Proprietary Rights and Sublicense Requirements
	15

	2.8
	Enforcement Actions
	16

	2.9
	Prohibited Uses and Administrative Obligations
	17

	2.10
	Compliance with Third Party Licenses
	18

	3
	Grant of IP to Computer Sciences GS
	19

	3.1
	Assignment of Restricted IP to Computer Sciences GS
	19

	4
	Grant of License to CSC
	19

	4.1
	Grant of Imminent Computer Sciences GS IP License to CSC
	19

	5
	Term
	20

	5.1
	Initial Term
	20

	5.2
	Extension of the Term
	20

	6
	Fees, Fee Adjustments, Payment, and Taxes
	20

	6.1
	Fees and Adjustments
	20

	6.2
	Payments
	20

	6.3
	Taxes
	20

	7
	Support and Maintenance Obligations
	21

	7.1
	Support and Maintenance Services
	21

	7.2
	Support Exclusions
	22

	8
	Warranties
	22

	8.1
	Warranty Exclusions
	22

	9
	Indemnification; Injunctive Relief; Limitations of Liability
	23

	9.1
	Indemnification by CSC
	23

	9.2
	Indemnification by Computer Sciences GS
	23

	9.3
	Sole Remedy; Indemnification Procedures
	24

	9.4
	Injunctive Relief
	24

	9.5
	Limitation of Liability
	24

	10
	Confidential Data & Proprietary Materials
	25

	10.1
	Confidential Data, Proprietary Information, and Trade Secrets
	25

	10.2
	Employees and Sublicensees
	25

	11
	Termination
	25

	11.1
	Events of Termination
	25

	11.2
	Effect of Termination or Expiration
	25

	
			
	 

	 
	i
	 

	
	
	 

	
			
	11.3
	Survival of Terms
	26

	12
	General Provisions
	26

	12.1
	Further Assurances
	26

	12.2
	Relationship of the Parties
	26

	12.3
	Amendment
	26

	12.4
	Entire Agreement
	26

	12.5
	Priority of Agreements
	26

	12.6
	Assignment
	27

	12.7
	Successors and Assigns
	27

	12.8
	Third Party Beneficiaries
	27

	12.9
	Notices
	27

	12.10
	Rules of Construction
	27

	12.11
	Title and Headings
	28

	12.12
	No Waiver
	28

	12.13
	Severability
	28

	12.14
	Governing Law; Jurisdiction
	28

	12.15
	Dispute Resolution
	28

	12.16
	Specific Performance
	29

	12.17
	Counterparts
	29

	Signatory
	 
	30

	
			
	List of Schedules and Exhibits
	 

	Schedule 1.1(vv)
	Licensed Products
	 

	Schedule 1.1(nnn)
	Restricted IP
	 

	Schedule 2.5(a)
	Licensed Marks
	 

	Schedule 2.9(a)
	Written Proprietary Item Usage Consent Procedure
	 

	Exhibit A
	Form of CSC Agility Reseller Agreement
	 

	
			
	 

	 
	ii
	 

	
	
	 

This INTELLECTUAL PROPERTY MATTERS AGREEMENT (this “Agreement”) is dated as of November [l], 2015 (the “Effective Date”), by and between Computer Sciences Corporation, a Nevada corporation (“CSC”), and Computer Sciences Government Services Inc., a Nevada corporation (“Computer Sciences GS”). Each of CSC and Computer Sciences GS is sometimes referred to herein as a “Party” and collectively as the “Parties”.
WHEREAS:
		
	(A)
	CSC, acting directly and through its direct and indirect Subsidiaries, currently conducts the CSC Business and the Computer Sciences GS Business;

		
	(B)
	CSC and Computer Sciences GS have entered into the Master Separation and Distribution Agreement by and between CSC and Computer Sciences GS dated as of [l], 2015 (the “Master Separation and Distribution Agreement”), in connection with the separation of the Computer Sciences GS Business from CSC and the Distribution of Computer Sciences GS Common Stock to stockholders of CSC; and

		
	(C)
	in connection therewith, the Parties desire to enter into this Agreement.

NOW, THEREFORE, in consideration of and subject to the premises and the mutual agreements, terms and conditions herein contained, the benefits to be derived therefrom and other good and valuable consideration, the receipt and the sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
		
	1.
	DEFINITIONS AND INTERPRETATION

		
	1.1
	General

Capitalized terms used in this Agreement and not defined herein shall have the meanings ascribed in the Master Separation and Distribution Agreement. As used in this Agreement, the following terms shall have the following meanings:
		
	(a)
	“Acquiring Person” shall have the meaning set forth in Section 2.1(h) of this Agreement.

		
	(b)
	“Additional Maintenance Fees” shall have the meaning set forth in Section 6.1 of this Agreement.

		
	(c)
	“Affiliate” shall have the meaning set forth in the Master Separation and Distribution Agreement.

		
	(d)
	“Agreement” shall have the meaning set forth in the preamble to this Agreement.

		
	(e)
	“Applicable Licensed Product Items” shall mean, with respect to each Licensed Product, the Licensed Product Items if and to the extent indicated on Schedule 1.1(vv).

		
	(f)
	“Applicable Security Laws and Regulations” shall mean regulations and policies promulgated by the Defense Security Service, including the National Industrial Security Program Operating Manual (NISPOM), established by Executive Order 12829, and analogue guidance from United States federal government intelligence agencies.

		
	(g)
	“Change of Control” shall mean the sale of all or substantially all the assets of Computer Sciences GS; any merger, consolidation or acquisition of Computer Sciences GS with, by or into another corporation or other entity; any change in the ownership of more than fifty percent (50%) of the voting capital stock of Computer Sciences GS in one or more related transactions; or the like.

	
			
	 

	 
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	(h)
	“Confidential Information” shall have the meaning set forth in the Master Separation and Distribution Agreement.

		
	(i)
	“Contract” shall have the meaning set forth in the Master Separation and Distribution Agreement.

		
	(j)
	“Contractor” shall mean any contractor, subcontractor or provider of outsourcing services to Computer Sciences GS or a Computer Sciences GS Subsidiary in relation to the Computer Sciences GS Business that requires the right to use the Licensed Products or Licensed Product Items on behalf of Computer Sciences GS or a Computer Sciences GS Subsidiary in order to perform a Customer Contract.

		
	(k)
	“Computer Sciences GS” shall have the meaning set forth in the preamble to this Agreement.

		
	(l)
	“Computer Sciences GS Business” shall have the meaning set forth in the Master Separation and Distribution Agreement.

		
	(m)
	“Computer Sciences GS Field” shall mean any licenses or sales (as applicable), directly or indirectly, (i) to any federal Governmental Entity in the United States or any branch or location thereof located outside of the United States, (ii) to any United States state or local Governmental Entity other than in the CSC State and Local Field, or (iii) outside of the United States of America solely in connection with (A) any Contract entered into between Computer Sciences GS or any Computer Sciences GS Subsidiary and a United States federal Governmental Entity or (B) any Contract entered into between Computer Sciences GS or any Computer Sciences GS Subsidiary and a Governmental Entity outside the United States to the extent in connection with military sales that are sponsored or financed by a United States federal Governmental Entity.

		
	(n)
	“Computer Sciences GS Indemnitee” shall have the meaning set forth in Section 9.1 of this Agreement.

		
	(o)
	“Computer Sciences GS Personnel” shall mean employees, officers and directors of Computer Sciences GS or any Computer Sciences GS Subsidiary engaged in the Computer Sciences GS Business. Computer Sciences GS Personnel shall be deemed to exclude all Customers, resellers, distributors or other Persons performing similar functions and any employees, partners, authorized agents and representatives of any such Persons but shall include (for the avoidance of doubt) any Contractor.

		
	(p)
	“Computer Sciences GS Subsidiary” shall mean any direct or indirect subsidiary of Computer Sciences GS that is controlled by Computer Sciences GS.

		
	(q)
	“CSC” shall have the meaning set forth in the preamble to this Agreement.

		
	(r)
	“CSC Agility” shall mean the proprietary Software of CSC or a CSC Subsidiary known as CSC Agility Platform.

		
	(s)
	“CSC Agility License” shall have the meaning set forth in Section 2.1(a) of this Agreement.

		
	(t)
	“CSC Business” shall have the meaning set forth in the Master Separation and Distribution Agreement.

		
	(u)
	“CSC Indemnitee” shall have the meaning set forth in Section 9.2 of this Agreement.

	
			
	 

	 
	2
	 

	
	
	 

		
	(v)
	“CSC Proprietary Items” shall mean the Licensed Products, the Licensed Product Items, the Licensed Know-How and the Licensed Marks and any databases and Software a part of or ancillary thereto, any update, modification, enhancement, derivative work, data format, engine, platform, program, method of processing, graphical user interface, technique, procedure, concept, form, image, documentation, specification, development language, development tool, design, flow chart, instructional material, user booklet, printouts, or other written or machine-readable materials that are a part of or ancillary to the Licensed Products, the Licensed Product Items, the Licensed Know-How and the Licensed Marks and also includes all copyrights, trademarks, trade secrets, patents and other intellectual property right subsisting in or covering any of them.

		
	(w)
	“CSC State and Local Field” shall have the meaning set forth in the Master Separation and Distribution Agreement.

		
	(x)
	“CSC Subsidiary” shall mean any direct or indirect wholly owned subsidiary of CSC.

		
	(y)
	“Customer” shall mean any Person who receives, directly or indirectly, goods and/or services from Computer Sciences GS or any Computer Sciences GS Subsidiary in connection with the operation of the Computer Sciences GS Business and shall exclude (for the avoidance of doubt) any Contractor.

		
	(z)
	“Customer Contract” shall mean any contract, including all task and delivery orders issued thereunder, assumed or entered into between Computer Sciences GS or any Computer Sciences GS Subsidiary, on the one hand, and a Customer, on the other hand, in connection with the Computer Sciences GS Business.

		
	(aa)
	“Distribution” shall have the meaning set forth in the Master Separation and Distribution Agreement.

		
	(bb)
	“DFARS” shall mean the U.S. Department of Defense Federal Acquisition Regulation Supplement.

		
	(cc)
	“Effective Date” shall have the meaning set forth in the preamble to this Agreement.

		
	(dd)
	“Employee Matters Agreement” shall have the meaning set forth in the Master Separation and Distribution Agreement.

		
	(ee)
	“Enforcement Action” shall have the meaning set forth in Section 2.8 of this Agreement.

		
	(ff)
	“End User” shall mean a Customer (i) that is an agency or instrumentality of the United States federal government, (ii) in connection with military sales that are sponsored or financed by a United States federal Governmental Entity or (iii) that is a state or local government located within the territory of the United States of America (other than a CSC customer in the CSC State and Local Field), in each case that licenses the Licensed Products from Computer Sciences GS in accordance with the terms of this Agreement and the Reseller Agreement.

		
	(gg)
	“Export Control Laws and Regulations” shall mean trade controls found at 22 U.S.C. 2778 of the Arms Export Control Act (“AECA”) Executive Order 13637, the International Traffic in Arms Regulations (“ITAR”) 22 CFR 120-130 Executive Order 13556, and DFARS 252.204-7000 Disclosure of Information and similar special clauses inserted in United States federal government contracts to which Computer Sciences GS or a Computer Sciences GS Subsidiary is a party or that have been passed through to Computer Sciences GS or a Computer Sciences GS Subsidiary as a subcontractor and that require United States 

	
			
	 

	 
	3
	 

	
	
	 

government contracting officer consent prior to disclosure to Third Parties of unclassified documents subject to disclosure restrictions.
		
	(hh)
	“Extension Term” shall have the meaning set forth in Section 5.2 of this Agreement.

		
	(ii)
	“FAR” shall mean the U.S. Federal Acquisition Regulation.

		
	(jj)
	“Fees” shall have the meaning set forth in Section 6.1 of this Agreement.

		
	(kk)
	“Governmental Entity” shall have the meaning set forth in the Master Separation and Distribution Agreement.

		
	(ll)
	“Imminent Computer Sciences GS IP” shall mean any Intellectual Property Rights acquired (whether by merger, consolidation, stock or asset purchase or other similar transaction) by Computer Sciences GS or a Computer Sciences GS Subsidiary or developed by Computer Sciences GS or a Computer Sciences GS Subsidiary without making use of any CSC Proprietary Items, in each case within six (6) months after the Effective Date, including all Intellectual Property Rights of SRA Companies, Inc. and its direct and indirect Subsidiaries.

		
	(mm)
	“Imminent Computer Sciences GS IP License” shall have the meaning set forth in Section 4.1(a) of this Agreement.

		
	(nn)
	“Improvements” shall mean, with respect to any Licensed Product, Licensed Product Items or Imminent Computer Sciences GS IP, all derivative works of such Licensed Product, Licensed Product Items or Imminent Computer Sciences GS IP as well as all inventions, modifications, improvements, fixes, enhancements and/or updates made to or derived from such Licensed Product, Licensed Product Items or Imminent Computer Sciences GS IP, in each case whether or not any of the foregoing is entitled to protection under applicable Law.

		
	(oo)
	“Initial Term” shall have the meaning set forth in Section 5.1 of this Agreement.

		
	(pp)
	“Intellectual Property Rights” shall mean all intellectual property, proprietary and industrial property rights of any kind worldwide, including all (i) patents, patent applications, inventions and invention disclosures and utility models, (ii) Trademarks, (iii) copyrights and copyrightable subject matter, including software, code, algorithms, databases, compilations and documentation, (iv) technology, trade secrets, know-how, processes, formulae, models, methodologies, discoveries, ideas, concepts, techniques, designs, specifications, drawings, blueprints, diagrams, models and prototypes, (v) moral rights and rights of privacy and publicity, (vi) all registrations, applications, continuations, continuations-in-part, divisionals, reissues, re-examinations, substitutions, renewals, extensions and foreign counterparts thereof and (vii) all rights and remedies against infringement, misappropriation, or other violation of the foregoing.

		
	(qq)
	“Know-How License” shall have the meaning set forth in Section 2.4(a) of this Agreement.

		
	(rr)
	“Law” shall mean all laws, statutes and ordinances and all regulations, rules and other pronouncements of Governmental Entities having the effect of law of the United States of America, any foreign country, or any domestic or foreign state, province, commonwealth, city, country, municipality, territory, protectorate, possession or similar instrumentality, or any Governmental Entity thereof.

	
			
	 

	 
	4
	 

	
	
	 

		
	(ss)
	“License Year” shall mean the twelve (12)-month period commencing on the Effective Date and extending through the corresponding date in the following year and each subsequent twelve (12)-month period thereafter during the Term.

		
	(tt)
	“Licensed Know-How” shall mean the information, ideas, knowledge, skill and experience owned by CSC or a CSC Subsidiary as of the Effective Date and in the possession of or known to Computer Sciences GS (or a Computer Sciences GS Group Employee (as defined in the Employee Matters Agreement)) as of the Effective Date that Computer Sciences GS reasonably requires to conduct the Computer Sciences GS Business as of the Effective Date, whether or not proprietary or patentable, or public or confidential, and whether stored or transmitted in oral, documentary, electronic or other form and excluding, for the avoidance of doubt, any Restricted IP, Licensed Products, Licensed Product Items, Licensed Marks and Other Products.

		
	(uu)
	“Licensed Marks” shall have the meaning set forth in Section 2.5(a) of this Agreement.

		
	(vv)
	“Licensed Products” shall mean each of the products and services listed on Schedule 1.1(vv), collectively.

		
	(ww)
	“Licensed Product Configuration Software” shall mean the code owned by CSC or its controlled Affiliates that, together with the applicable Third Party Software licensed directly by Computer Sciences GS from such Third Party, is used to create a Licensed Product, including scripts, configuration files, blueprints and CSC proprietary Software.

		
	(xx)
	“Licensed Product Documentation” shall mean the offering and/or service descriptions, installation and instructional guides and training materials generally provided by CSC to clients for use in connection with a Licensed Product.

		
	(yy)
	“Licensed Product Items” shall mean the Licensed Product Configuration Software, Licensed Product Documentation, Licensed Product Sales Materials and Licensed Product Specifications, collectively.

		
	(zz)
	“Licensed Product Sales Materials” shall mean sales and marketing materials generally provided by CSC to its internal sales personnel for use in connection with the Licensed Products, including pricing information as indicated on Schedule 1.1(vv).

		
	(aaa)
	“Licensed Product Specifications” shall mean the technical description and specifications of the Licensed Products that CSC uses to build and support the Licensed Products, but that are not provided to CSC clients or resellers.

		
	(bbb)
	“Losses” shall mean all losses, damages, claims, demands, judgments or settlements of any nature or kind, known or unknown, fixed, accrued, absolute or contingent, liquidated or unliquidated, including all reasonable costs and expenses (legal, accounting or otherwise as such costs are incurred) relating thereto, suffered by a CSC Indemnitee or a Computer Sciences GS Indemnitee.

		
	(ccc)
	“Maintenance Fee” shall have the meaning set forth in Section 6.1 of this Agreement.

		
	(ddd)
	“Master Separation and Distribution Agreement” shall have the meaning set forth in the recitals to this Agreement.

		
	(eee)
	“New Marks” shall have the meaning set forth in Section 2.5(o) of this Agreement.

	
			
	 

	 
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	(fff)
	“NPS-Developed Products” shall mean those Licensed Products listed as “NPS-Developed Products” on Schedule 1.1(vv).

		
	(ggg)
	“Other Products” shall mean all generally available, reasonably identifiable products or services in existence and owned by CSC or a CSC Subsidiary as of the Effective Date that Computer Sciences GS reasonably requires to conduct the Computer Sciences GS Business at any time after the Effective Date, other than the Licensed Products.

		
	(hhh)
	“Party” and “Parties” shall have the meaning set forth in the preamble to this Agreement.

		
	(iii)
	“Person” shall mean any natural person, corporation, business trust, limited liability company, joint venture, association, company, partnership or government, or any agency or political subdivision thereof.

		
	(jjj)
	“Pre-COC Subsidiaries” shall have the meaning set forth in Section 2.1(h) of this Agreement.

		
	(kkk)
	“Products License” shall have the meaning set forth in Section 2.2(a) of this Agreement.

		
	(lll)
	“Recoveries” shall have the meaning set forth in Section 2.8 of this Agreement.

		
	(mmm)
	“Reseller Agreement” shall mean the CSC Agility Reseller Agreement in the agreed form attached hereto as Exhibit A.

		
	(nnn)
	“Restricted IP” shall mean all Intellectual Property Rights relating exclusively to, used exclusively in, or arising exclusively from those products or services set forth on Schedule 1.1(nnn).

		
	(ooo)
	“Restricted IP Assignment” shall have the meaning set forth in Section 3.1(a).

		
	(ppp)
	“Software” shall mean any software whether in source code or object code, including application software, instructions for controlling the operation of a central processing unit or computer, firmware, middleware, mobile digital applications, assemblers, applets, compilers and binary libraries, but specifically excluding any licensed Third Party software.

		
	(qqq)
	“Tax” shall mean all income, excise, gross receipts, ad valorem, value-added, sales, use, employment, franchise, profits, gains, property, transfer, use, payroll, intangibles or other taxes, fees, stamp taxes, duties, charges, levies or assessments of any kind whatsoever (whether payable directly or by withholding), together with any interest and any penalties, additions to tax or additional amounts imposed by any Tax authority with respect thereto.

		
	(rrr)
	“Technical Data” shall mean recorded information, regardless of the form or method of the recording, of a scientific or technical nature (including computer software documentation). The term does not include computer software or data incidental to contract administration, such as financial and/or management information.

		
	(sss)
	“Term” shall have the meaning set forth in Section 5.2 of this Agreement.

		
	(ttt)
	“Third Party” shall mean any Person who is not a Party to this Agreement.

		
	(uuu)
	“Third Party Reimbursement Fee” shall mean all out-of-pocket fees and other costs payable to Third Parties by CSC or CSC Subsidiaries as a result of the creation of a copy of any Licensed Product.

	
			
	 

	 
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	(vvv)
	“Trademarks” shall mean trademarks, service marks, corporate names, trade names, domain names, logos, slogans, designs, social media identifiers, trade dress and other designations of source or origin, together with the goodwill symbolized by any of the foregoing.

		
	(www)
	“Trademarks License” shall have the meaning set forth in Section 2.5(a) of this Agreement.

		
	(xxx)
	“Unlicensed Marks” shall mean all Trademarks owned by CSC or its controlled Affiliates other than the Licensed Marks.

		
	(yyy)
	“Virginia Courts” shall have the meaning set forth in Section 12.14 of this Agreement.

		
	1.2
	References; Interpretation

References in this Agreement to any gender include references to all genders, and references to the singular include references to the plural and vice versa. Unless the context otherwise requires, the words “include”, “includes” and “including” when used in this Agreement shall be deemed to be followed by the phrase “without limitation”. Unless the context otherwise requires, references in this Agreement to Sections, Exhibits and Schedules shall be deemed references to Sections of, and Exhibits and Schedules to, this Agreement. Unless the context otherwise requires, the words “hereof”, “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Section or provision of this Agreement. The words “written request” when used in this Agreement shall include email. In the event of any inconsistency or conflict that may arise in the application or interpretation of any of the definitions set forth in Section 1.1, for the purpose of determining what is and is not included in such definitions, any item explicitly included on a Schedule referred to in any such definition shall take priority over any provision of the text thereof.
		
	2.
	GRANT OF LICENSES AND OPTION TO LICENSE TO COMPUTER SCIENCES GS

		
	2.1
	Grant of CSC Agility License

		
	(a)
	Upon the terms and subject to the conditions set forth in this Agreement, including Section 2.3, and excluding any Intellectual Property Rights of any Third Party in CSC Agility or the Applicable Licensed Product Items, CSC hereby grants to Computer Sciences GS a perpetual, non-transferrable, non-assignable, royalty-free, limited license to access and use CSC Agility and the Applicable Licensed Product Items and to sublicense CSC Agility and the Applicable Licensed Product Items to Computer Sciences GS Subsidiaries, in each case in accordance with and as expressly permitted by this Agreement, and to sublicense CSC Agility and the Licensed Product Documentation to End Users in accordance with and as expressly permitted by the Reseller Agreement and in no other manner whatsoever (the “CSC Agility License”). During the Initial Term, the CSC Agility License shall be (i) limited solely to the Computer Sciences GS Field and (ii) exclusive as to clause (i) of the definition of “Computer Sciences GS Field” (other than and subject to any rights in respect of CSC Agility or the Applicable Licensed Product Items granted by CSC or any CSC Subsidiaries to any Third Party prior to the date of this Agreement) even as against CSC.

		
	(b)
	Without limiting the foregoing, the CSC Agility License shall entitle Computer Sciences GS to access and use in accordance with the Reseller Agreement and herewith, including Section 2.1(d), all Improvements to CSC Agility and the Applicable Licensed Product Items as well as any new versions thereof, in each case that are created and released during the Term and made generally available by CSC to end users of CSC Agility or the Applicable Licensed Product Items or otherwise provided by CSC to Computer Sciences 

	
			
	 

	 
	7
	 

	
	
	 

GS. Notwithstanding the foregoing, CSC shall have no obligation to create or release any such Improvements, and the timing of any such Improvements shall be at the sole discretion of CSC.
		
	(c)
	Computer Sciences GS hereby assigns, and agrees to cause all Computer Sciences GS Subsidiaries and to require all End Users to assign, all right (including all Intellectual Property Rights), title and interest in and to any and all Improvements made or created from or based on CSC Agility or any Applicable Licensed Product Items by or on behalf of Computer Sciences GS or a Computer Sciences GS Subsidiary or End User following the Effective Date to CSC, and, as between the Parties and any Computer Sciences GS Subsidiaries (and each agreement with End Users shall so provide), CSC shall have sole and exclusive ownership of such Improvements and all right (including all Intellectual Property Rights), title and interest therein and thereto.

		
	(d)
	Computer Sciences GS shall provide CSC with written notice of any Improvements made or created from or based on CSC Agility or any Applicable Licensed Product Items by or on behalf of Computer Sciences GS or a Computer Sciences GS Subsidiary or, to Computer Sciences GS’s knowledge, an End User during the Term. After such notice is provided, such Improvements shall automatically be included in the definition of Licensed Product Items, and the CSC Agility License granted to Computer Sciences GS in Section 2.1(a) shall automatically be amended to allow Computer Sciences GS to use such Improvements under the terms and conditions set forth in this Agreement and the Reseller Agreement.

		
	(e)
	Unless and to the extent otherwise indicated on Schedule 1.1(vv), the CSC Agility License does not create on behalf of Computer Sciences GS or any Computer Sciences GS Subsidiary or End User any right to or interest in or right of possession or access to the source code relating to CSC Agility or the Applicable Licensed Product Items or any right to possess, or copy or decompile object code relating to CSC Agility or the Applicable Licensed Product Items.

		
	(f)
	Computer Sciences GS (acting through Computer Sciences GS Personnel) may use CSC Agility and the Applicable Licensed Product Items only to the extent required in connection with the operation of the Computer Sciences GS Business, which during the Initial Term shall be solely in the Computer Sciences GS Field, and otherwise in accordance with this Agreement and only as and to the extent necessary to meet the performance requirements of End Users under Customer Contracts in accordance with the terms and conditions of the Reseller Agreement. CSC’s sole obligations and responsibilities with respect to CSC Proprietary Items shall be limited to those set out in this Agreement and the Reseller Agreement. Subject to Section 2.5, unless otherwise agreed in writing, CSC Agility and the Licensed Product Documentation will be licensed to End Users under the applicable Licensed Mark.

		
	(g)
	Computer Sciences GS shall not transfer, assign or sublicense, or purport to transfer, assign or sublicense, its rights under CSC Agility or the Applicable Licensed Product Items other than to Computer Sciences GS Subsidiaries to the extent required in connection with the operation of the Computer Sciences GS Business in accordance with this Agreement or to End Users in accordance with the Reseller Agreement.

		
	(h)
	Notwithstanding anything to the contrary contained herein, the CSC Agility License shall not extend to any Person that, directly or indirectly, acquires control of Computer Sciences GS through a Change of Control of Computer Sciences GS (an “Acquiring Person”) or to any Affiliate or subsidiary of any such Acquiring Person (other than Computer Sciences GS and entities that were direct or indirect subsidiaries of Computer Sciences GS prior to the time such Acquiring Person acquired such control (a “Pre-COC Subsidiaries”)). Without limiting the foregoing, if any material operations or businesses are contributed 

	
			
	 

	 
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by any Affiliate of an Acquiring Person (other than a Pre-COC Subsidiary) to Computer Sciences GS or a Pre-COC Subsidiary, such contributed operations or businesses shall not be entitled to any of the rights granted pursuant to the CSC Agility License. 
		
	2.2
	Grant of Products License

		
	(a)
	Except with respect to CSC Agility (which shall be licensed to Computer Sciences GS pursuant to Section 2.1), upon the terms and subject to the conditions set forth in this Agreement, including Section 2.3, and excluding any Intellectual Property Rights of any Third Party in the Licensed Products and the Applicable Licensed Product Items, CSC hereby grants to Computer Sciences GS a perpetual, non-transferrable, non-assignable, royalty-free limited license to access and use the Licensed Products and the Applicable Licensed Product Items and to sublicense the Licensed Products and the Applicable Licensed Product Items solely to Computer Sciences GS Subsidiaries and End Users, in each case in accordance with and as expressly permitted by this Agreement and in no other manner whatsoever (the “Products License”). During the Initial Term, the Products License shall be (i) limited solely to the Computer Sciences GS Field and (ii) exclusive as to clause (i) of the definition of “Computer Sciences GS Field” (other than and subject to any rights in respect of the Licensed Products or the Applicable Licensed Product Items granted by CSC or any CSC Subsidiaries to any Third Party prior to the date of this Agreement) even as against CSC.

		
	(b)
	Without limiting the foregoing, the Products License shall entitle Computer Sciences GS to access and use in accordance herewith, including Section 2.2(d), all Improvements to the Licensed Products and the Applicable Licensed Product Items as well as any new versions thereof, in each case that are created and released by CSC during the Term and made generally available by CSC to end users of the Licensed Products and the Applicable Licensed Product Items or otherwise provided by CSC to Computer Sciences GS. Notwithstanding the foregoing, CSC shall have no obligation to create or release any such Improvements, and the timing of any such Improvements shall be at the sole discretion of CSC.

		
	(c)
	Computer Sciences GS hereby assigns, and agrees to cause all Computer Sciences GS Subsidiaries and to require all End Users to assign, all right (including all Intellectual Property Rights), title and interest in and to any and all Improvements made or created from or based on any Licensed Products or Applicable Licensed Product Items by or on behalf of Computer Sciences GS or a Computer Sciences GS Subsidiary or End User following the Effective Date to CSC, and, as between the Parties and any Computer Sciences GS Subsidiaries (and each agreement with End Users shall so provide), CSC shall have sole and exclusive ownership of such Improvements and all right (including all Intellectual Property Rights), title and interest therein and thereto.

		
	(d)
	Computer Sciences GS shall provide CSC with written notice of any Improvements made or created from or based on any Licensed Products or Applicable Licensed Product Items by or on behalf of Computer Sciences GS or a Computer Sciences GS Subsidiary or, to Computer Sciences GS’s knowledge, an End User during the Term. After such notice is provided, such Improvements shall automatically be included in the definition of Licensed Product Items, and the Products License granted to Computer Sciences GS in Section 2.2(a) shall automatically be amended to allow Computer Sciences GS to use such Improvements under the terms and conditions set forth in this Agreement.

		
	(e)
	Unless and to the extent otherwise indicated on Schedule 1.1(vv), the Products License does not create on behalf of Computer Sciences GS or any Computer Sciences GS Subsidiary or End User any right to or interest in or right of possession or access to the source code relating to the Licensed Products or Applicable 

	
			
	 

	 
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Licensed Product Items or any right to possess, or copy or decompile object code relating to the Licensed Products or Applicable Licensed Product Items.
		
	(f)
	Computer Sciences GS (acting through Computer Sciences GS Personnel) may use the Licensed Products and the Applicable Licensed Product Items only to the extent required in connection with the operation of the Computer Sciences GS Business, which during the Initial Term shall be solely in the Computer Sciences GS Field, and otherwise in accordance with this Agreement. 

		
	(g)
	Computer Sciences GS shall not transfer, assign or sublicense, or purport to transfer, assign or sublicense, its rights under the Licensed Products or Applicable Licensed Product Items other than to Computer Sciences GS Subsidiaries to the extent required in connection with the operation of the Computer Sciences GS Business or to End Users, in each case in accordance with this Agreement.

		
	(h)
	Notwithstanding anything to the contrary contained herein, the Products License shall not extend to any Acquiring Person or to any Affiliate or subsidiary of any such Acquiring Person (other than Computer Sciences GS and Pre-COC Subsidiaries). Without limiting the foregoing, if any material operations or businesses are contributed by any Affiliate of an Acquiring Person (other than a Pre-COC Subsidiary) to Computer Sciences GS or a Pre-COC Subsidiary, such contributed operations or businesses shall not be entitled to any of the rights granted pursuant to the Products License.

		
	2.3
	Applicable Licensed Product Items and NPS-Developed Products

		
	(a)
	Notwithstanding anything herein to the contrary, to the extent the Products License granted to Computer Sciences GS in Section 2.2(a) entitles Computer Sciences GS to any Licensed Product Configuration Software, Computer Sciences GS shall only be permitted pursuant to such license to (i) access, use and copy such Licensed Products Configuration Software, (ii) make Improvements to such Licensed Products Configuration Software if and only to the extent Computer Sciences GS is also entitled to the source code for the Licensed Product Configuration Software as indicated on Schedule 1.1(vv) and (iii) either sublicense the Licensed Product Configuration Software to Computer Sciences GS Subsidiaries and End Users or use the Licensed Product Configuration Software for internal use only in each case as specified on Schedule 1.1(vv).

		
	(b)
	Notwithstanding anything herein to the contrary, to the extent the CSC Agility License granted to Computer Sciences GS in Section 2.1(a) or the Products License granted to Computer Sciences GS in Section 2.2(a) entitles Computer Sciences GS to Licensed Product Documentation, Computer Sciences GS shall only be permitted pursuant to such license to (i) access, use, copy and make Improvements to such Licensed Product Documentation and (ii) sublicense such Licensed Product Documentation to Computer Sciences GS Subsidiaries and End Users.

		
	(c)
	Notwithstanding anything herein to the contrary, to the extent the CSC Agility License granted to Computer Sciences GS in Section 2.1(a) or the Products License granted to Computer Sciences GS in Section 2.2(a) entitles Computer Sciences GS to any Licensed Product Specifications, Computer Sciences GS shall only be permitted pursuant to such license to access, use, copy and make Improvements to such Licensed Product Specification for internal use only as necessary to support the applicable Licensed Product. For the avoidance of doubt, under no circumstances shall Computer Sciences GS or any Computer Sciences GS Subsidiaries provide copies of, display or otherwise disclose the Licensed Product Specifications to End Users or to any Third Party other than Computer Sciences GS Personnel.

	
			
	 

	 
	10
	 

	
	
	 

		
	(d)
	Notwithstanding anything herein to the contrary, to the extent the CSC Agility License granted to Computer Sciences GS in Section 2.1(a) or the Products License granted to Computer Sciences GS in Section 2.2(a) entitles Computer Sciences GS to any Licensed Product Sales Materials, Computer Sciences GS shall only be permitted pursuant to such license to access, use, copy and make Improvements to such Licensed Product Sales Materials solely for internal use to support sales of the Licensed Products to End Users.

		
	(e)
	Notwithstanding anything herein to the contrary, the Products License shall entitle Computer Sciences GS to access, use, copy, modify, distribute and make Improvements to the NPS-Developed Products and the Applicable Licensed Product Items for both internal use as well as to sublicense the NPS-Developed Products and the Applicable Licensed Product Items to Computer Sciences GS Subsidiaries and End Users.

		
	2.4
	Grant of Know-How License

		
	(a)
	Upon the terms and subject to the conditions set forth in this Agreement, CSC hereby grants to Computer Sciences GS a perpetual, non-transferrable, non-assignable, royalty-free limited license to access and use the Licensed Know-How in accordance with and as expressly permitted by this Agreement and in no other manner whatsoever (the “Know-How License”). During the Initial Term, the Know-How License shall be (i) limited solely to the Computer Sciences GS Field and (ii) exclusive as to clause (i) of the definition of “Computer Sciences GS Field” (other than and subject to any rights in respect of the Licensed Know-How granted by CSC or any CSC Subsidiaries to any Third Party prior to the date of this Agreement) even as against CSC.

		
	(b)
	Computer Sciences GS shall not transfer, assign or sublicense, or purport to transfer, assign or sublicense, its rights under the Licensed Know-How other than to Computer Sciences GS Subsidiaries to the extent required in connection with the operation of the Computer Sciences GS Business solely in the Computer Sciences GS Field and in accordance with this Agreement.

		
	2.5
	Grant of Trademarks License

		
	(a)
	Upon the terms and subject to the conditions set forth in this Section 2.5, including Sections 2.5(f) and 2.5(g), CSC hereby grants to Computer Sciences GS and Computer Sciences GS Subsidiaries a perpetual, non-transferrable, non-assignable, royalty-free, non-exclusive, limited license to use the trademarks, service marks, logos, and domain names listed on Schedule 2.5(a), whether registered or unregistered (the “Licensed Marks”), within the Computer Sciences GS Field, in connection with the operation, advertisement, marketing, promotion and support of the Computer Sciences GS Business and the Licensed Products in accordance with the limitations set forth on Schedule 2.5(a), and in a manner not likely to cause confusion with the Unlicensed Marks (the “Trademarks License”).

		
	(b)
	Computer Sciences GS acknowledges and agrees, and agrees to cause all Computer Sciences GS Subsidiaries and sublicensees to acknowledge and agree, that all right (including all Intellectual Property Rights), title and interest in the Licensed Marks are owned exclusively by CSC. No right, title or interest in any Unlicensed Marks are granted to Computer Sciences GS, Computer Sciences GS Subsidiaries or any Third Party by this Agreement. 

		
	(c)
	The Trademarks License to use the specific marks (i) “COMPUTER SCIENCES GOVERNMENT SERVICES” and (ii) “COMPUTER SCIENCES GS” includes the right to use such marks as and as part of a corporate or entity name, or trade name; provided that such corporate or entity name, or trade name, 

	
			
	 

	 
	11
	 

	
	
	 

consists of the exact phrase “COMPUTER SCIENCES GOVERNMENT SERVICES”, or “COMPUTER SCIENCES GS”, followed directly by an entity designation such as (but not limited to) “Inc.”, “LLC”, or “Limited” after the word “SERVICES” or the letter “S.” Subject to Section 2.5(g), none of the other Licensed Marks may be used by Computer Sciences GS or Computer Sciences GS Subsidiaries as a corporate or entity name, or trade name.
		
	(d)
	So long as Computer Sciences GS is using the specific marks (i) “COMPUTER SCIENCES GOVERNMENT SERVICES” or (ii) “COMPUTER SCIENCES GS” as or as part of its corporate or entity name, or trade name and, if Computer Sciences GS ever ceases to use “COMPUTER SCIENCES GOVERNMENT SERVICES” or “COMPUTER SCIENCES GS” as or as part of its corporate or entity name, or tradename until six (6) months following such cessation, CSC agrees not to use, or permit any other Person (other than Computer Sciences GS or Computer Sciences GS Subsidiaries) to use, the exact designation “COMPUTER SCIENCES GOVERNMENT SERVICES” or “COMPUTER SCIENCES GS” as, or as a component of, any trademark, service mark, trade name, corporate or entity name, or “doing business as” name; provided, however, that CSC may use, and authorize others to use, “COMPUTER SCIENCES” as, or as a component of, any trademark, service mark, trade name, corporate or entity name, or “doing business as” name as long as not used as the exact phrase “COMPUTER SCIENCES GOVERNMENT SERVICES” or “COMPUTER SCIENCES GS”; and CSC may also use “COMPUTER SCIENCES GOVERNMENT SERVICES” or “COMPUTER SCIENCES GS” to refer to Computer Sciences GS or Computer Sciences GS Subsidiaries.

		
	(e)
	Computer Sciences GS may develop logos or stylized “CSGOV” marks; however, before any public use of any such CSGOV logos commence, Computer Sciences GS must first submit proposed drawings of such marks to CSC for CSC’s written approval. After having obtained written approval from CSC, such “CSGOV” logos will become Licensed Marks under this Agreement, and as long as such “CSGOV” logos are not materially altered, Computer Sciences GS may use such “CSGOV” logos as long as such use otherwise complies with the terms of this Agreement. Computer Sciences GS further agrees that CSC will own all trademark, copyright, and other rights in such “CSGOV” logos, and Computer Sciences GS hereby assigns, grants and delivers (and agrees further to assign, grant and deliver) exclusively to CSC, all right, title and interest of every kind and nature whatsoever in and to any such “CSGOV” logos, including all trademark rights and copyrights and all renewals thereof. Computer Sciences GS further agrees, at CSC’s sole cost and expense, to execute and deliver to CSC such other and further instruments and documents that CSC may reasonably request for the purpose of establishing, evidencing, enforcing or defending CSC’s right, title and interest of every kind and nature whatsoever, including all trademark rights and copyrights, in and to such “CSGOV” logos.

		
	(f)
	Notwithstanding anything herein to the contrary, the Trademarks License to use the specific marks “COMPUTER SCIENCES GOVERNMENT SERVICES”, “COMPUTER SCIENCES GS” and “CSGOV” and the domain names listed on Schedule 2.5(a) shall terminate immediately if and to the extent Computer Sciences GS files any amended articles of incorporation (or equivalent organizational documents) with the appropriate Governmental Entity changing its corporate or entity name to any such name that does not contain “COMPUTER SCIENCES GOVERNMENT SERVICES” or “COMPUTER SCIENCES GS”.

		
	(g)
	Notwithstanding anything herein to the contrary, the Trademarks License to use the specific marks (i) “COMPUTER SCIENCES” (without the words “GOVERNMENT SERVICES” or “GS”) and (ii) “CSC” is hereby expressly limited to the right of Computer Sciences GS to use, for up to six (6) months after the date hereof, such marks as part of an existing corporate or entity name of any Computer Sciences GS 

	
			
	 

	 
	12
	 

	
	
	 

Subsidiary and for no other purpose whatsoever; provided, however, that Computer Sciences GS shall, and shall cause the applicable Computer Sciences GS Subsidiaries to, (i) use its and their best efforts to promptly file amended articles of incorporation (or equivalent organizational documents) with the appropriate Governmental Entity changing its corporate or entity name to a corporate or entity name that does not contain “COMPUTER SCIENCES” or “CSC”, and (ii) provide CSC with any additional information, documents and materials that CSC may request to evidence those filings.
		
	(h)
	Other than the specific marks “COMPUTER SCIENCES” and “CSC”, which may not be sublicensed to any Person other than an existing Computer Sciences GS Subsidiary currently using such marks as or as part of an existing corporate or entity name, Computer Sciences GS and Computer Sciences GS Subsidiaries may sublicense the Licensed Marks solely in writing in accordance with the Trademarks License to advertisers, distributors, vendors, dealers, suppliers and other Persons, solely for use in connection with the operation of the Computer Sciences GS Business in a manner consistent with current practice and in accordance with and as expressly permitted by this Agreement. Computer Sciences GS shall be liable hereunder for any act or omission by a sublicensee or by any Computer Sciences GS Subsidiaries that would constitute a breach of the Trademarks License or other terms hereof, as if committed by Computer Sciences GS.

		
	(i)
	Computer Sciences GS’s, Computer Sciences GS Subsidiaries’ and any sublicensees’ use of the Licensed Marks shall comply with relevant elements of CSC’s trademark guidelines and applicable Laws. CSC further reserves the right to approve the quality and propriety of any goods or services using the Licensed Marks, which approval shall not be unreasonably withheld, conditioned or delayed. It is the purpose of this provision to prevent uses of the Licensed Marks in a manner that are inconsistent with CSC’s high quality of goods and services or in a manner that might be offensive to ordinary and customary standards of exceptional service as determined by CSC, in its sole discretion, or that could undermine or damage the reputation of CSC. Computer Sciences GS further agrees to furnish CSC, upon request, with sample specimens of each item bearing or displaying the Licensed Marks or pre-printed promotional literature, video, media production, web pages, or other marketing aids which Computer Sciences GS, Computer Sciences GS Subsidiaries, or any sublicensee proposes to use with and which incorporate the Licensed Marks. Computer Sciences GS agrees that all advertising and promotional materials in which it and Computer Sciences GS Subsidiaries and sublicensees use the Licensed Marks shall be truthful in all respects. CSC shall have the right to require Computer Sciences GS, Computer Sciences GS Subsidiaries and any sublicensee to make reasonable changes to such literature or marketing aids, or to any goods or services, for the purpose of eliminating inaccuracies, to ensure compliance with the requirements of this section or otherwise to protect the Licensed Marks. If no objection is made by CSC within ten (10) Business Days after its receipt of such material, CSC shall be deemed not to object to its use or distribution. CSC shall not be deemed to endorse the accuracy of, or assume any legal responsibility for the contents of, such promotional material or media presentations. Computer Sciences GS and Computer Sciences GS Subsidiaries may not modify, change or alter any Licensed Mark without the prior written consent of CSC. Computer Sciences GS agrees that it shall not, directly or indirectly, do, omit to do, or permit to be done, any act that will or may dilute the goodwill associated with the Licensed Marks or tarnish or bring into disrepute the reputation of or goodwill associated with the Licensed Marks or CSC or that will or may invalidate or jeopardize any registration of the Licensed Marks. Computer Sciences GS and Computer Sciences GS Subsidiaries shall not purchase Internet keywords or domain names containing the Licensed Marks.

	
			
	 

	 
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	(j)
	Computer Sciences GS recognizes the ownership of, and great value of the goodwill associated with, the Licensed Marks as well as the mark “COMPUTER SCIENCES CORPORATION”. Computer Sciences GS acknowledges that such goodwill belongs to CSC and that such Licensed Marks, as well as the mark “COMPUTER SCIENCES CORPORATION”, have inherent and/or acquired distinctiveness and are famous marks. Nothing in this Agreement gives Computer Sciences GS, Computer Sciences GS Subsidiaries, or any sublicensees any right, title, or interest in the Licensed Marks, except the right to use the Licensed Marks in accordance with the terms of this Agreement. Computer Sciences GS’s, Computer Sciences GS Subsidiaries’, and any sublicensees’ use of the Licensed Marks shall inure to the benefit of CSC. Computer Sciences GS, Computer Sciences GS Subsidiaries, and sublicensees, will not, and will not cause any other Person to, seek to register any marks for, containing, or confusingly similar to, the Licensed Marks. Computer Sciences GS, Computer Sciences GS Subsidiaries, and sublicensees shall not, and shall not cause any other Person to, oppose or seek to cancel or challenge, in any forum anywhere in the world, including, but not limited to, the United States Patent and Trademark Office, any application or registration by CSC for the Licensed Marks, or any composite mark containing a Licensed Mark as an element of such composite mark. Further, Computer Sciences GS, Computer Sciences GS Subsidiaries, and sublicensees shall not, and shall not cause any other Person to, object to, or file any action or lawsuit because of, any use by CSC of (i) the Licensed Marks, (ii) any composite mark containing a Licensed Mark, or (iii) any company name, corporate name, trade name, keyword, or domain name consisting of or containing any of the Licensed Marks, for or in connection with any goods or services, whether such use is by CSC directly or through CSC’s licensees, CSC Subsidiaries, or CSC’s authorized users; and Computer Sciences GS, Computer Sciences GS Subsidiaries, and sublicensees will not, and will not cause any other Person to, take any other action that may adversely affect or contest CSC’s ownership of or right to use or the validity, incontestability or enforceability of the Licensed Marks, any composite mark containing a Licensed Mark, or the goodwill associated with the Licensed Marks.

		
	(k)
	Computer Sciences GS, Computer Sciences GS Subsidiaries, and any sublicensees as permitted under this Agreement will display on materials utilizing or displaying the Licensed Marks any notice, marking, or indicia of ownership required by this Agreement or otherwise by CSC from time to time. Computer Sciences GS, Computer Sciences GS Subsidiaries, and any sublicensees as permitted under this Agreement will, in all material respects, use the Licensed Marks in a manner reasonably calculated to prevent the Licensed Marks from becoming generic or otherwise invalid.

		
	(l)
	Computer Sciences GS agrees to notify CSC in writing, as promptly as reasonably practicable, of any of the following that may come to the attention of Computer Sciences GS: (i) any adoption, use, or registration of any mark, trade name, trading style or corporate name, domain name, or designation which would infringe, impair or dilute, or tend to infringe, impair or dilute, the Licensed Marks, (ii) any challenge to CSC’s use, Computer Sciences GS’s use, Computer Sciences GS Subsidiaries’ use, or any sublicensees’ use of any Licensed Mark, or (iii) any claim made by any Person of any rights in any Licensed Mark.

		
	(m)
	Except as provided herein, CSC shall be responsible, at its sole discretion, for renewing and maintaining at CSC’s expense all trademark applications and registrations for the Licensed Marks. CSC may elect, for any reason, not to renew any applications and registrations for the Licensed Marks. In the event CSC determines during the Initial Term that it intends to allow an application or registration for a Licensed Mark, other than the “CSC” mark, to lapse, be cancelled or be abandoned, it will notify Computer Sciences GS as promptly as reasonably practicable and Computer Sciences GS shall be entitled to pursue or maintain such application or registration in CSC’s name, but at Computer Sciences GS’s sole cost and expense. Each Party agrees to cooperate and provide promptly, upon any request by the other Party, appropriate samples 

	
			
	 

	 
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and specimens of CSC’s, Computer Sciences GS’s, and Computer Sciences GS Subsidiaries’, and any authorized sublicensees’ use of the Licensed Marks and to otherwise assist the relevant Party in applying for, registering, maintaining and renewing CSC’s applications and registrations for the Licensed Marks, at CSC’s expense.
		
	(n)
	Computer Sciences GS shall, at its own expense, at least once in every six (6) months and at any time at CSC’s written request, provide CSC with a written report detailing, for each Licensed Mark: (i) each jurisdiction where Computer Science GS, every Computer Sciences GS Subsidiary, and every sublicensee is using such Licensed Mark and (ii) the manner in which such Licensed Mark is being used in such jurisdiction.

		
	(o)
	CSC may elect at any time, at its sole discretion and for any reason, to change, alter, or replace the trademarks and service marks that CSC directs to be used by Computer Sciences GS as the names of the Licensed Products. Any changed/altered/replaced trademarks and service marks directed by CSC to be used by Computer Sciences GS as the new names of the Licensed Products (the “New Marks”) will become Licensed Marks under this Agreement immediately upon receipt by Computer Sciences GS of written notification by CSC of any New Marks. Upon receipt by Computer Sciences GS of written notice of any New Marks, Computer Sciences GS agrees to, and agrees to cause all Computer Sciences GS Subsidiaries and sublicensees to, change over within ninety (90) days on all web pages, marketing materials, promotional items, advertising, documents, files, and other materials to the use of the New Marks instead of the former Licensed Marks being used for such Licensed Products. 

		
	(p)
	Nothing in this Agreement shall constitute any representation or warranty by CSC that any Licensed Mark is valid or that the exercise by Computer Sciences GS, any Computer Sciences GS Subsidiary, or any sublicensee of any rights granted under this Agreement with respect to any Licensed Mark will not infringe the Intellectual Property Rights of any Person.

		
	2.6
	Grant of Option to License Other Products

CSC hereby grants to Computer Sciences GS an option to license, at any time during the Initial Term, any Other Products as Computer Sciences GS may from time to time within such period reasonably request for use by Computer Sciences GS solely within the Computer Sciences GS Field. The terms and conditions of any such licenses, including any fees or maintenance rights or obligations, shall be negotiated and agreed between CSC and Computer Sciences GS on an arm’s-length basis at such time.
		
	2.7
	Preservation of Ownership of Proprietary Rights and Sublicense Requirements

		
	(a)
	All rights not specifically granted to Computer Sciences GS herein are hereby retained by CSC. There are no implied licenses to any of the CSC Proprietary Items (or to any right, title or interest therein or part, portion or aspect thereof). Computer Sciences GS covenants, and agrees to cause all Computer Sciences GS Subsidiaries and require all other sublicensees to covenant, to take no action or commit any omission that would reasonably be expected to be adverse to CSC’s sole and exclusive ownership of all right (including all Intellectual Property Rights), title and interest in and to the CSC Proprietary Items and shall not (i) apply to register or cooperate in any effort by any Third Party to register any right (including any Intellectual Property Rights), title or interest in or to any CSC Proprietary Items anywhere in the world in connection with any products or services, (ii) challenge or participate in any challenge or diminution of CSC’s rights (including any Intellectual Property Rights) in the CSC Proprietary Items, or (iii) do anything else 

	
			
	 

	 
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inconsistent with CSC’s rights (including any Intellectual Property Rights) in the CSC Proprietary Items. If, contrary to the intent of the Parties, it should occur that Computer Sciences GS has any rights of ownership in the CSC Proprietary Items, Computer Sciences GS hereby agrees, at any time upon the written request of CSC, to assign and to sell for ten dollars (US$10.00) to CSC any and all such rights of ownership as well as the entire right, title and interest to any such right (including any attendant goodwill), and Computer Sciences GS agrees that it has not entered and shall not enter into any agreement with any Third Party, including any Computer Sciences GS Subsidiaries or other sublicensees, or otherwise take or fail to take any action, that would prevent such assignment and sale. Computer Sciences GS shall promptly upon request by CSC execute, without additional consideration, any assignment or other document that may be reasonably necessary or appropriate for CSC to purchase, take assignment or perfect its ownership interest or to memorialize, record or otherwise denote or demonstrate ownership by CSC of all right (including all Intellectual Property Rights), title and interest in and to any CSC Proprietary Items. 
		
	(b)
	CSC shall be responsible, at CSC’s own expense, for, and shall make all decisions concerning, the preparation, filing, registration, prosecution, renewal, enforcement and maintenance of any Intellectual Property Rights in or covering any CSC Proprietary Item. Computer Sciences GS agrees to, and agrees to cause all Computer Sciences GS Subsidiaries and require all other sublicensees to, cooperate fully with, and provide reasonable assistance to, CSC in respect thereof, at CSC’s own expense.

		
	(c)
	In order to assign title to CSC in accordance with the terms of this Agreement, Computer Sciences GS shall take all actions reasonably required to obtain title to inventions made in the performance of a Customer Contract, including providing timely notice to the Customer under such Customer Contract and electing to take title. Computer Sciences GS shall seek an advance waiver of any Governmental Entity’s right to take title in those instances where such requests are required or permitted.

		
	(d)
	Unless CSC has provided its express, prior written consent (in accordance with CSC’s internal delegation of authority policy and procedures), Computer Sciences GS shall not enter into any Customer Contract that includes FAR Clause 52.227-17, “Rights in Data - Special Works” or Department of Defense FAR Supplement Cause 252.227-7020, “Rights in Special Works,” or any other similar provision that grants any Governmental Entity a right to title to any CSC Proprietary Item.

		
	(e)
	Computer Sciences GS shall set forth in written agreements with any sublicensee all applicable restrictions and obligations regarding CSC Proprietary Items as set forth in this Agreement. Computer Sciences GS shall not grant any right to or fail to require any obligation from any permitted sublicensee that is inconsistent with the terms and conditions of this Agreement or reduces or eliminates protections of CSC Proprietary Items or CSC’s ownership of CSC Proprietary Items as set forth herein. Computer Sciences GS shall expressly identify CSC as a third party beneficiary in all written agreements with any sublicensee.

		
	(f)
	Computer Sciences GS shall set forth in written agreements with any Contractor all applicable restrictions and obligations regarding such Licensed Product or the Applicable Licensed Product Items as set forth in this Agreement.

		
	2.8
	Enforcement Actions

Computer Sciences GS agrees to notify CSC in writing, as promptly as reasonably practicable, of any actual, threatened or alleged infringement, challenge, misappropriation, claim, impairment or violation of any Intellectual Property Rights relating to the Licensed Products, Licensed Know-How or Licensed Marks 

	
			
	 

	 
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that comes to the attention of Computer Sciences GS or a Computer Sciences GS Subsidiary. CSC shall have sole and exclusive authority and discretion to take such legal action as it deems appropriate and control any dispute, claim, litigation, United States Patent and Trademark Office or other U.S. or foreign governmental or administrative proceeding, or other action arising out of any actual or alleged infringement, challenge, misappropriation, claim, impairment or violation of any Intellectual Property Rights relating to the CSC Proprietary Items and including any brought by a Third Party (an “Enforcement Action”). Unless the Parties otherwise agree, all costs and expenses related to an Enforcement Action shall be borne by CSC, and CSC shall be entitled to all monetary damages, fines, settlement payments, costs, attorneys’ fees, and other amounts (“Recoveries”) awarded to CSC as a direct result of an Enforcement Action. Computer Sciences GS shall, and if requested by CSC cause Computer Sciences GS Subsidiaries and any sublicensees to, at CSC’s expense, cooperate fully and promptly with CSC with respect to such Enforcement Action, in such manner and to such extent as CSC may reasonably request, including joining such Enforcement Action as a party. Nothing herein shall be construed as requiring CSC to take any action to bring or defend any Enforcement Action or to indemnify or hold harmless Computer Sciences GS, Computer Sciences GS Subsidiaries, or any sublicensees in connection therewith. During the Initial Term, in the event CSC provides written notice or confirmation to Computer Sciences GS that it determines not to bring an Enforcement Action, Computer Sciences GS may, with the prior written consent of CSC (which consent may be withheld by CSC for any reason in its sole discretion), bring an Enforcement Action with respect to any violation of the Licensed Products, Licensed Know-How or Licensed Marks that Computer Sciences GS reasonably believes would have a material and adverse effect on its business; provided, however, that Computer Sciences GS shall not compromise or settle any Enforcement Action without the prior written consent of CSC; provided, further that Computer Sciences GS shall indemnify, defend and hold harmless (at Computer Sciences GS’s sole cost and expense) CSC for any losses of CSC arising from or relating to such Enforcement Action brought by Computer Sciences GS without CSC’s prior written consent, including, for the avoidance of doubt, any losses arising from any counterclaim to such Enforcement Action. Unless the Parties otherwise agree, all costs and expenses related to an Enforcement Action brought by Computer Sciences GS shall be borne by Computer Sciences GS and any Recoveries awarded to Computer Sciences GS as a direct result of an Enforcement Action brought by Computer Sciences GS shall belong to Computer Sciences GS. CSC shall, if reasonably requested by Computer Sciences GS and at Computer Sciences GS’ expense, provide and cause its controlled Affiliates to provide reasonable cooperation with respect to any such Enforcement Action. For the avoidance of doubt, nothing herein shall be construed as requiring CSC to join as a party any Enforcement Action brought by Computer Sciences GS.
		
	2.9
	Prohibited Uses and Administrative Obligations

		
	(a)
	Except as expressly permitted by this Agreement (including Section 2.9(b)), the Reseller Agreement or with the prior written consent of CSC (not to be unreasonably withheld, conditioned or delayed) in accordance with Schedule 2.9(a), Computer Sciences GS shall not, nor shall it allow or give permission to any Third Party, including but not limited to any Computer Sciences GS Subsidiary, End User or Governmental Entity, to:

		
	(i)
	use, copy (except for internal archival purposes), distribute, rent, lease, license, lend, give, sublicense, disclose or transfer any of the CSC Proprietary Items or any portion thereof;

		
	(ii)
	access or make available to any Third Party source code in any manner (and whether or not subject to escrow arrangements) relating to the Licensed Products, Licensed Product Items or any portion thereof;

	
			
	 

	 
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	(iii)
	translate, modify, adapt, enhance, extend, decompile, disassemble or reverse engineer the Licensed Products, Licensed Product Items or any portion thereof;

		
	(iv)
	transfer, assign or sublicense, or purport to transfer, assign or sublicense, to any Third Party any right, including any Intellectual Property Rights, in or to any of the CSC Proprietary Items;

		
	(v)
	allow any of the CSC Proprietary Items or any right in any of them to become subject of any charge, lien or encumbrance;

		
	(vi)
	alter, remove or obscure any trademark, copyright, trade secret, patent, proprietary right and/or other legal notice of CSC that are part of or affixed to any of the CSC Proprietary Items;

		
	(vii)
	modify, decompile, disassemble or reverse engineer or otherwise attempt to derive, obtain or modify the source code to, write or develop any derivative software based upon the Licensed Products, or sell, rent, lease, license, sublicense, copy, reproduce, disclose or transmit the CSC Proprietary Items or any portion thereof, or permit any Third Party to do any of the foregoing, for any purpose whatsoever;

		
	(viii)
	use or permit use of the CSC Proprietary Items by a Third Party or on any service bureau, time-sharing or similar system; or

		
	(ix)
	create Improvements or additions to any of the CSC Proprietary Items.

For purposes of this Section 2.9(a), CSC Proprietary Items shall include, with respect to Licensed Know-How, only that Licensed Know-How that is Technical Data related to Licensed Products or any other reasonably identifiable products or services in existence and owned by CSC or a CSC Subsidiary as of the Effective Date. 
		
	(b)
	Prior to entering into any Customer Contract in connection with any CSC Proprietary Items (other than NPS-Developed Products, unless Computer Sciences GS or the applicable Computer Sciences GS Subsidiary would reasonably be expected to satisfy the obligations set forth in this Section 2.9(b) with respect to such NPS-Developed Product) with any Governmental Entity, Computer Sciences GS or the applicable Computer Sciences GS Subsidiary shall first (i) obtain a written acknowledgment from the relevant contracting officer that such CSC Proprietary Items required to be delivered or used in performance of such Customer Contract are “commercial items” as such term is defined in FAR 2.101, (ii) ensure that the regulatory-specified contract clauses and licenses, if any, for the acquisition of such “commercial items” are included in such Customer Contract and (iii) obtain a written acknowledgment from the relevant contracting officer that any modifications to such “commercial items” are (A) of a type customarily available in the commercial marketplace or (B) minor modifications made to meet U.S. federal government requirements.

		
	(c)
	Computer Sciences GS shall effect and maintain security measures as are necessary to safeguard the CSC Proprietary Items from any unauthorized access or use by any Person. Computer Sciences GS shall cause Computer Sciences GS Subsidiaries to comply with the terms and conditions of this Agreement and Computer Sciences GS shall be liable hereunder for the actions and inactions of Computer Sciences GS Subsidiaries, all Computer Sciences GS Personnel and all other sublicensees as though they were the actions or inactions of Computer Sciences GS.

	
			
	 

	 
	18
	 

	
	
	 

		
	(d)
	Computer Sciences GS shall not, and agrees to cause Computer Sciences GS Subsidiaries to not, take any action or grant any sublicense to any Person that exceeds the scope of any license or right to sublicense granted by this Agreement.

		
	(e)
	Computer Sciences GS shall not, and agrees to cause Computer Sciences GS Subsidiaries to not, directly or indirectly, violate any applicable Laws or regulations in exercising any rights provided by or performed under this Agreement.

		
	2.10
	Compliance with Third Party Licenses

Computer Sciences GS shall comply with the terms of the license agreements governing Third Party vendor materials incorporated into any of the Licensed Products or Licensed Product Items as and to the extent CSC so notifies Computer Sciences GS in writing from time to time. None of the licenses or rights to sublicense granted hereby include any license to or right to sublicense the Intellectual Property Rights of any Third Party, unless and only to the extent CSC is authorized to provide such license or right to sublicense to Computer Sciences GS. Computer Sciences GS acknowledges and agrees that Computer Sciences GS shall seek any license to or right to sublicense any Intellectual Property Rights of a Third Party in the CSC Proprietary Items from such Third Party. Computer Sciences GS shall comply with any requirements set forth in the Reseller Agreement relating to the Intellectual Property Rights of any Third Party in CSC Agility or the Applicable Licensed Product Items.
		
	3.
	GRANT OF IP TO COMPUTER SCIENCES GS

		
	3.1
	Assignment of Restricted IP to Computer Sciences GS

		
	(a)
	CSC hereby assigns, conveys, transfers and delivers to Computer Sciences GS or its designee all of CSC’s right, title and interest in and to the Restricted IP, including, without limitation, any and all goodwill symbolized thereby (as applicable), the right to recover for damages and profits for past, present and future infringements, dilutions, misappropriations or other violations of any part of the Restricted IP and the right to sue for and recover the same throughout the world in the name of CSC or its designee (the “Restricted IP Assignment”).

		
	(b)
	The Restricted IP Assignment may be made of record in any government and/or administrative authority in any applicable jurisdiction, including in the United States Patent and Trademark Office and the United States Copyright Office, as appropriate and desired by Computer Sciences GS.

		
	4.
	GRANT OF LICENSE TO CSC

		
	4.1
	Grant of Imminent Computer Sciences GS IP License to CSC

		
	(a)
	Computer Sciences GS hereby grants to CSC a non-exclusive, perpetual, non-transferrable, non-assignable, royalty-free, fully paid-up right and license to access, use, copy, make Improvements to and sublicense to end users, any CSC Subsidiary and any contractor of CSC or of a CSC Subsidiary any Imminent Computer Sciences GS IP (the “Imminent Computer Sciences GS IP License”). During the Initial Term, the Imminent Computer Sciences GS IP License shall be limited solely to outside the Computer Sciences GS Field.

	
			
	 

	 
	19
	 

	
	
	 

		
	(b)
	Without limiting the foregoing, the Imminent Computer Sciences GS IP License shall entitle CSC to access, use, copy and sublicense in accordance herewith, including Section 4.1(d), all Improvements to the Imminent Computer Sciences GS IP as well as any new versions thereof in each case that are created and released by Computer Sciences GS during the Initial Term and made generally available by Computer Sciences GS to end users of the Imminent Computer Sciences GS IP. Notwithstanding the foregoing, Computer Sciences GS shall have no obligation to create or release any such Improvements, and the timing of any such Improvements shall be at the sole discretion of Computer Sciences GS or its applicable Affiliate.

		
	(c)
	As between the Parties, Computer Sciences GS shall exclusively own all right (including all Intellectual Property Rights), title and interest in and to any and all Improvements made or created from or based on any Imminent Computer Sciences GS IP by or on behalf of CSC following the Effective Date.

		
	(d)
	CSC shall provide Computer Sciences GS with written notice of any Improvements made or created from or based on any Imminent Computer Sciences GS IP by or on behalf of CSC during the Initial Term. After such notice is provided, such Improvements shall automatically be included in the definition of Imminent Computer Sciences GS IP, and the Imminent Computer Sciences GS IP License granted to CSC in Section 4.1(a) shall automatically be amended to allow CSC to use such Improvements under the terms and conditions set forth in this Agreement.

		
	(e)
	CSC shall not transfer, assign or sublicense, or purport to transfer, assign or sublicense, its rights under any Imminent Computer Sciences GS IP other than to CSC Subsidiaries and any contractor of CSC or of a CSC Subsidiary to the extent required in connection with the operation of the CSC Business outside of the Computer Sciences GS Field and in accordance with this Agreement.

		
	5.
	TERM

		
	5.1
	Initial Term

The initial term of this Agreement (the “Initial Term”) shall commence as of the Effective Date and continue through the fifth (5th) anniversary of the Effective Date unless terminated earlier pursuant to Section 11.
		
	5.2
	Extension of the Term

Computer Sciences GS may elect to extend the expiration date of this Agreement for up to one (1) additional period of five (5) years (the “Extension Term”), by providing written notice of such election to CSC at least ninety (90) days before the then-scheduled expiration of the Initial Term of its intent to extend the Initial Term (the Initial Term as extended by an Extension Term, the “Term”).
		
	6.
	FEES, FEE ADJUSTMENTS, PAYMENT, AND TAXES

		
	6.1
	Fees and Adjustments

		
	(a)
	During the Initial Term, for maintenance and support of the Licensed Products in accordance with this Agreement and the Reseller Agreement, Computer Sciences GS agrees to pay to CSC each License Year, an annual net fee equal to thirty million dollars (US$30,000,000) (the “Maintenance Fee”).

		
	(b)
	Computer Sciences GS shall pay to CSC the following additional maintenance fees during the Initial Term as follows:

	
			
	 

	 
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	(i)
	0.5% of the amount by which Computer Sciences GS’s total consolidated revenues during any fiscal year exceed seven billion dollars (US$7,000,000,000); and 

		
	(ii)
	5% of the amount by which Computer Sciences GS’s total revenues from its cloud computing solutions and services during any fiscal year exceed six hundred million dollars (US$600,000,000) (the “Additional Maintenance Fees”, and together with the Maintenance Fee, the “Fees”).

		
	(c)
	The Fees applicable during the Extension Term shall be as agreed by the Parties acting reasonably and in good faith.

		
	6.2
	Payments

Computer Sciences GS shall pay CSC the Maintenance Fee applicable to each License Year within five (5) Business Days of the commencement of such License Year. Computer Sciences GS shall pay any Additional Maintenance Fees within twenty-one (21) calendar days after completion of any fiscal year during which any such Fees become due.
		
	6.3
	Taxes

Each Party shall be responsible for all Taxes imposed on such Party under applicable Law. In no event shall any Party be responsible for Taxes on or measured by net income of the other Party. The Parties shall cooperate with each other to furnish such forms and certificates that they are legally entitled to furnish to eliminate or reduce Taxes on payments described herein. No Party shall be required to “gross up” the other party for Taxes imposed through withholding or deduction. To the extent any Party is required under applicable Law to collect sales, use or similar taxes from the other Party, the Party required to collect such taxes shall separately state the applicable sales, use or similar tax on an invoice rendered to the other Party.
		
	7.
	SUPPORT AND MAINTENANCE OBLIGATIONS

		
	7.1
	Support and Maintenance Services

		
	(a)
	The Parties acknowledge that the Maintenance Fee is a net amount reflecting maintenance and support obligations on each Party and agree that:

		
	(i)
	Computer Sciences GS shall provide support and maintenance services to CSC in respect of the NPS-Developed Products as set forth below;

		
	(ii)
	CSC shall provide support and maintenance services to Computer Sciences GS in respect of all Licensed Products, other than the NPS-Developed Products, as set forth below;

		
	(iii)
	in respect of each Licensed Product other than the NPS-Developed Products, CSC shall provide Computer Sciences GS with (i) any Improvements created by or on behalf of CSC as and when made generally available by CSC to its customers, or, if not made generally available by CSC to its customers, within a reasonable time after such Improvements are developed by or on behalf of CSC and (ii) the applicable help desk support as set forth on Schedule 1.1(vv); and

		
	(iv)
	in respect of the NPS-Developed Products, Computer Sciences GS shall provide CSC with (i) any Improvements created by or on behalf of Computer Sciences GS as and when made generally 

	
			
	 

	 
	21
	 

	
	
	 

available by Computer Sciences GS to its customers, or, if not made generally available by Computer Sciences GS to its customers, within a reasonable time after such Improvements are developed by or on behalf of Computer Sciences GS, (ii) help desk support equivalent to at least CSC level 3 help desk support to the extent being provided by Computer Sciences GS as of the Effective Date in respect of such NPS-Developed Product, (iii) access to the source code relating to any and all Improvements made or created from or based on such NPS-Developed Product by or on behalf of Computer Sciences GS, and (iv) all maintenance and support services required of CSC under CSC’s existing maintenance and support contracts with its customers relating to such NPS-Developed Product.
		
	(b)
	Notwithstanding the foregoing, CSC and Computer Sciences GS may elect to enter into a separate agreement after the date hereof setting forth any additional maintenance and support services to be provided by CSC to Computer Sciences GS in respect of any Licensed Product or Licensed Product Items, such as training on the Licensed Products. The terms and conditions of any such agreement, including the fees for such services, shall be negotiated and agreed between CSC and Computer Sciences GS on an arm’s-length basis at such time.

		
	(c)
	The Parties will agree on governance procedures for the request and delivery of the Licensed Products, Licensed Product Items and Improvements during the Term but the failure to agree shall not void the Parties’ respective obligations to request and deliver the Licensed Products, Licensed Product Items and Improvements during the Term in accordance with this Agreement.

		
	7.2
	Support Exclusions

		
	(a)
	Neither Party shall be required to provide support to the extent that any problem with any Licensed Product is due to:

		
	(i)
	the Licensed Product having been altered, damaged or modified by the other Party or its Subsidiaries or Customers;

		
	(ii)
	the other Party’s or its Subsidiary’s negligence, hardware malfunction or any cause beyond the reasonable control of the Party providing support; 

		
	(iii)
	the Licensed Product being used in an operating environment other than an operating environment (i) specified in the Licensed Product Specifications or the Licensed Product Documentation or (ii) otherwise agreed in writing by CSC and Computer Sciences GS; or

		
	(iv)
	use of a version of the Licensed Product that is not the latest or most recent version.

		
	(b)
	Unless otherwise agreed by the Parties in writing, neither Party shall be required to provide any maintenance or support services directly to the other Party’s end users.

		
	(c)
	Neither Party shall be required to provide any maintenance or support services in connection with any portion of the Licensed Product that is owned by a Third Party, unless such Party delivers or otherwise makes available such portion directly to the other Party.

		
	8.
	WARRANTIES

	
			
	 

	 
	22
	 

	
	
	 

		
	8.1
	Warranty Exclusions

		
	(a)
	Except as otherwise may be expressly set forth in the Reseller Agreement, CSC shall in no circumstances have any liability for any of the following: (i) failure of the Licensed Products resulting from unpermitted modification, abuse or prohibited use of the Licensed Products or use of the Licensed Products that does not comply with the requirements of the Licensed Product Sales Materials, (ii) failure of the Licensed Products resulting from use of the Licensed Products in combination with any other software and/or equipment which has not been supplied or approved in writing by CSC for use with the Licensed Products, (iii) loss of data or any storage media in the possession or under the control of Computer Sciences GS or any Computer Sciences GS Subsidiary, (iv) the content and accuracy of any document produced by the Licensed Products, (v) Computer Sciences GS’s or any Computer Sciences GS Subsidiary’s negligence or hardware malfunction, (vi) NPS-Developed Products, or (vii) Restricted IP.

		
	(b)
	NO WARRANTY SHALL BE CREATED BY, AND NO OBLIGATION OR LIABILITY SHALL ARISE FROM, THIS AGREEMENT OR CSC’S RENDERING OF TECHNICAL, PROGRAMMING, OR OTHER ADVICE OR SERVICE HEREUNDER. COMPUTER SCIENCES GS SHALL BE DEEMED TO HAVE ACCEPTED THE CSC PROPRIETARY ITEMS, THE RESTRICTED IP AND ANY SERVICES PROVIDED “AS IS” AND “WHERE IS,” AND WITHOUT ANY WARRANTY OF ANY KIND.

		
	(c)
	(i) COMPUTER SCIENCES GS HEREBY WAIVES ALL WARRANTIES EITHER EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OR CONDITION OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WARRANTY OF TITLE, WARRANTY OF NON-INFRINGEMENT OR OTHERWISE (INCLUDING TIME OF PERFORMANCE) RESPECTING THE CSC PROPRIETARY ITEMS, RESTRICTED IP OR SERVICES AND, (ii) CSC MAKES NO WARRANTY THAT THE FUNCTIONS CONTAINED IN A LICENSED PRODUCT ITEM OR ANY RESTRICTED IP WILL MEET COMPUTER SCIENCES GS’S REQUIREMENTS OR THAT THE OPERATION OF A LICENSED PRODUCT ITEM OR ANY RESTRICTED IP WILL BE UNINTERRUPTED OR ERROR-FREE.

		
	(d)
	EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, COMPUTER SCIENCES GS ASSUMES SOLE RESPONSIBILITY AND ENTIRE RISK AS TO THE SUITABILITY AND RESULTS OBTAINED FROM USE OF THE CSC PROPRIETARY ITEMS, THE RESTRICTED IP AND THE SERVICES, AND ANY DECISIONS MADE OR ACTIONS TAKEN BASED ON THE INFORMATION CONTAINED IN OR GENERATED BY THE CSC PROPRIETARY ITEMS, THE RESTRICTED IP AND THE SERVICES.

		
	9.
	INDEMNIFICATION; INJUNCTIVE RELIEF; LIMITATIONS OF LIABILITY

		
	9.1
	Indemnification by CSC

CSC will indemnify, defend and hold harmless Computer Sciences GS, and each of Computer Sciences GS’s controlled Affiliates and Computer Sciences GS’s and its controlled Affiliates’ directors, officers, employees, agents and permitted successors and assigns (“Computer Sciences GS Indemnitees”) from and against any and all Losses incurred by any Computer Sciences GS Indemnitee as a direct result of any claim by a Third Party that is not a Computer Sciences GS Affiliate that Computer Sciences GS’s use of any Improvements to the Licensed Products provided by CSC pursuant to this Agreement infringes or 

	
			
	 

	 
	23
	 

	
	
	 

misappropriates any U.S. copyright, trademark or trade secret, except to the extent resulting from (i) Computer Sciences GS’s modification of the Licensed Products or combination by Computer Sciences GS of the Licensed Products with other products or services if the Licensed Products would not have been infringing but for such combination or modification, (ii) Computer Sciences GS’s use of such Licensed Products other than as permitted under this Agreement, (iii) Computer Sciences GS’s failure to use an updated non-infringing version of the applicable Licensed Products to the extent Computer Sciences GS was notified that the update cured an infringement, (iv) changes to the Licensed Products made by CSC at the direction of Computer Sciences GS, (v) any open source software included in the Licensed Products or used by Computer Sciences GS or an End User in connection with the Licensed Products, or (vi) any portion of the Licensed Products that is owned by a Third Party.
		
	9.2
	Indemnification by Computer Sciences GS

Computer Sciences GS will indemnify, defend and hold harmless CSC, and each of CSC’s Affiliates and CSC’s and its Affiliates’ directors, officers, employees, agents and permitted successors and assigns (“CSC Indemnitees”) from and against any and all Losses incurred by any CSC Indemnitee as a direct result of any claim by a Third Party that is not a CSC Affiliate (a) arising from or relating to Computer Sciences GS’s, Computer Sciences GS Subsidiaries’ or any End User’s use of the Licensed Products, and/or any end user agreement, documentation or representation provided or made by Computer Sciences GS to an End User to the extent such end user agreement, documentation or representation differs from the Licensed Product Sales Materials, Licensed Product Documentation, marketing materials and/or Reseller Agreement provided by CSC or (b) that CSC’s use of any Improvements to the Licensed Products provided by Computer Sciences GS pursuant to this Agreement infringes or misappropriates any U.S. copyright, trademark or trade secret, except to the extent resulting from (i) CSC’s modification of the Licensed Products or combination by CSC of the Licensed Products with other products or services if the Licensed Products would not have been infringing but for such combination or modification, (ii) CSC’s failure to use an updated non-infringing version of the applicable Licensed Products to the extent CSC was notified that the update cured an infringement, (iii) changes to the Licensed Products made by Computer Sciences GS at the direction of CSC, (iv) any open source software included in the Licensed Products or used by CSC or its customers in connection with the Licensed Products or (v) any portion of the Licensed Products that is owned by a Third Party.
		
	9.3
	Sole Remedy; Indemnification Procedures

		
	(a)
	If any Improvement for which CSC has an indemnification obligation under Section 9.1 becomes, or in CSC’s reasonable opinion is likely to become, the subject of any U.S. copyright, trademark or trade secret infringement or misappropriation claim or proceeding, CSC will, in addition to indemnifying Computer Sciences GS as provided in Section 9.1, promptly take the following actions, at no additional charge to Computer Sciences GS, in the following order of priority: (i) secure the right to continue using the item or (ii) replace or modify the item to make it non-infringing. If neither of such actions can be accomplished by CSC using commercially reasonable efforts, and only in such event, CSC will remove the applicable Improvements and, in full satisfaction of CSC’s obligations with respect to this Section 9.3(a), the applicable Fees will be equitably adjusted to reflect such removal. THIS SECTION 9.3 AND SECTION 9.1 STATE THE ENTIRE LIABILITY AND OBLIGATIONS OF CSC AND THE EXCLUSIVE REMEDY OF COMPUTER SCIENCES GS, ITS AFFILIATES, SUCCESSORS AND ASSIGNS WITH RESPECT TO ANY VIOLATION OR INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS BY THE LICENSED PRODUCTS AND THE SUPPORT SERVICES OR ANY PART THEREOF.

	
			
	 

	 
	24
	 

	
	
	 

		
	(b)
	All indemnification procedures shall be governed by Section 7.4 of the Master Separation and Distribution Agreement.

		
	9.4
	Injunctive Relief

The Parties acknowledge and agree that money damages would not be a sufficient remedy for any breach of Sections 2, 4, or 10 of this Agreement by a Party or any of its Subsidiaries and that the other Party shall, in addition to any other rights it may have at Law or in equity, be entitled to equitable relief, including injunction and specific performance, as a remedy for any breach (and the Party in breach shall not raise the defense of an adequate remedy at Law) without the posting of a bond or other form of assurance or surety.
		
	9.5
	Limitation of Liability

EXCEPT WITH RESPECT TO (a) EITHER PARTY’S INDEMNIFICATION OBLIGATIONS UNDER THIS SECTION 9 WITH RESPECT TO THIRD PARTY CLAIMS, (b) EITHER PARTY’S INFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THE OTHER OR USE OF THE INTELLECTUAL PROPERTY RIGHTS OF THE OTHER IN ANY MANNER OR FOR ANY PURPOSE OR APPLICATION NOT EXPRESSLY PERMITTED BY THIS AGREEMENT, (c) EITHER PARTY’S BREACH OF THE CONFIDENTIALITY OBLIGATIONS SET FORTH IN THIS AGREEMENT, OR (d) EITHER PARTY’S FRAUD, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT, EXEMPLARY, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES OR COSTS, OR FOR LOST OR DAMAGED DATA OR LOSS OF PROFIT OR GOODWILL, WHETHER FORESEEABLE OR NOT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR COSTS. 
		
	10.
	CONFIDENTIAL DATA & PROPRIETARY MATERIALS

		
	10.1
	Confidential Data, Proprietary Information, and Trade Secrets

All Confidential Information submitted by one Party to the other Party in connection with this Agreement shall be governed by the confidentiality obligations set forth in Section 8.5 of the Master Separation and Distribution Agreement. For purposes of this Agreement, Confidential Information of CSC shall include all CSC Proprietary Items.
		
	10.2
	Employees and Sublicensees

Each Party shall require its sublicensees and cause its Affiliates and its and their employees, authorized agents and representatives to comply with the provisions set forth in this Agreement and shall be deemed for purposes of this Agreement to have taken the actions and inactions of the same in connection thereto. 
		
	11.
	TERMINATION

		
	11.1
	Events of Termination

This Agreement may only be terminated if:
		
	(a)
	the Parties mutually agree; 

	
			
	 

	 
	25
	 

	
	
	 

		
	(b)
	the other Party is in material breach or default of any of its representations, warranties, covenants or obligations under this Agreement or violates or infringes the Intellectual Property Rights of such Party and which breach, violation or infringement has remained uncured or otherwise unresolved for a period of thirty (30) days or more following that Party’s receipt of written notice regarding such breach; or

		
	(c)
	the other Party makes any assignment or assumption for the benefit of creditors or files a petition in bankruptcy or is adjudged bankrupt or is placed in the hands of a receiver or if the equivalent of any of the proceedings or acts referred to in this clause, though known and/or designated by some other name or term, occurs;

and such Party notifies the other Party of its election to terminate this Agreement.
		
	11.2
	Effect of Termination or Expiration

		
	(a)
	Upon the termination of this Agreement or the expiration of the Term, (i) Computer Sciences GS’s licenses to access and use any Improvements to the Licensed Products and the Licensed Product Items pursuant to Sections 2.1(b), 2.1(d), 2.2(b) and 2.2(d) shall cease and be of no further force or effect and (ii) Computer Sciences GS shall only be entitled to access and use the then-current versions of the Licensed Products and the Licensed Product Items in Computer Sciences GS’s possession.

		
	(b)
	Upon the termination of this Agreement, Computer Sciences GS shall immediately return all copies, in any form, of any Confidential Information in its possession or control (or certify to CSC in writing that the same has been destroyed), except the then-current versions of the Licensed Products and the Licensed Product Items in Computer Sciences GS’s possession or control.

		
	(c)
	Unless a contrary intention clearly appears, expressions of termination, cancellation or rescission of this Agreement may not be construed as a renunciation or discharge of any claim in damages for an antecedent breach of this Agreement or an obligation incurred prior to the termination or expiration thereof.

		
	11.3
	Survival of Terms

Upon the termination of this Agreement or the expiration of the Term for any reason, the following shall survive: (a) any unsatisfied payment obligation or other right or remedy regardless of whether based on prior default or performance or otherwise, (b) any limitation on the scope, manner, method, or location of the exercise of rights in the CSC Proprietary Items, (c) any limitation, exclusion or waiver of warranties, remedy, liability or damages, (d) any obligation of confidentiality, nondisclosure, return of data or materials, or singular obligation to the extent that the obligation was created by the terms of this Agreement, (e) any right for effectuating any of the aforesaid, (f) the right of CSC to receive any and all Improvements made or created from or based on the Licensed Products or any Licensed Product Items by or on behalf of Computer Sciences GS or a Computer Sciences GS Subsidiary or End User following the Effective Date, and (g) the provisions of Sections 2 (except for the right of Computer Sciences GS to receive Improvements pursuant to Sections 2.1(b), 2.1(d), 2.2(b) and 2.2(d) and the option to license Other Products pursuant to Section 2.6, each of which shall not survive), 3, 4, 8, 9, 10, 11 and 12.
		
	12.
	GENERAL PROVISIONS

		
	12.1
	Further Assurances

	
			
	 

	 
	26
	 

	
	
	 

In addition to the actions specifically provided for elsewhere in this Agreement, each Party agrees to execute or cause to be executed and to record or cause to be recorded such other agreements, instruments and other documents, and to take such other action, as reasonably necessary or desirable, to fully effectuate the license grants, assignment, intents and purposes of this Agreement.
		
	12.2
	Relationship of the Parties

This Agreement shall not be construed to place the Parties in the relationship of legal representatives, partners, joint venturers or agents of or with each other. No Party shall have any power to obligate or bind the other Party in any manner whatsoever, except as specifically provided herein.
		
	12.3
	Amendment

This Agreement may not be modified or amended, except by an agreement in writing signed by each of the Parties.
		
	12.4
	Entire Agreement

The Schedules shall be construed with and as an integral part of this Agreement to the same extent as if the same had been set forth verbatim herein. This Agreement (including the Schedules) and the Master Separation and Distribution Agreement constitute the entire agreement between the Parties related to the subject matter of the Agreement and supersede all prior agreements, discussions and understandings between the Parties related to its subject matter.
		
	12.5
	Priority of Agreements

If there is a conflict between any provision of this Agreement and the Master Separation and Distribution Agreement (or any other agreement referred to therein), the provisions of this Agreement will control. If there is a conflict between any provision of this Agreement and a Reseller Agreement that references this Agreement, the provisions of this Agreement will control.
		
	12.6
	Assignment

This Agreement shall not be assignable by Computer Sciences GS, in whole or in part, directly or indirectly, without the prior written consent of CSC, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void; provided, however, that Computer Sciences GS may assign this Agreement (a) to an Affiliate controlled by Computer Sciences GS, or (b) to a purchaser of all or substantially all of the properties and assets of Computer Sciences GS, in each case so long as such assignee expressly assumes, in a written instrument in form reasonably satisfactory to CSC, the due and punctual performance or observance of every agreement and covenant of this Agreement to be performed or observed on the part of Computer Sciences GS. Notwithstanding the foregoing, because of its personal nature to CSC, the Trademarks License may not be assigned to any Person without the prior written consent of CSC, which consent may be withheld by CSC for any reason in its sole discretion. For the avoidance of doubt, this Agreement shall be assignable by CSC, in whole or in part, directly or indirectly, to any Person without restriction.
		
	12.7
	Successors and Assigns

	
			
	 

	 
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The provisions to this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted assigns.
		
	12.8
	Third Party Beneficiaries

This Agreement is solely for the benefit of the Parties and their respective Affiliates and shall not be deemed to confer upon any Third Party any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to this Agreement, except that any Computer Sciences GS Indemnitees or CSC Indemnitees shall be intended third-party beneficiaries of Section 9 of this Agreement.
		
	12.9
	Notices

All notices, requests, claims, demands and other communications under this Agreement shall be made and delivered in conformity with Section 11.6 of the Master Separation and Distribution Agreement.
		
	12.10
	Rules of Construction

This Agreement will be fairly interpreted in accordance with its terms and without any strict construction in favor of or against either Party. Moreover, drafts of the Agreement and Schedules shall not be taken into account in interpreting, or establishing the nature or limits of, a Party’s rights and obligations hereunder. Any singular term in this Agreement shall be deemed to include the plural, and any plural term the singular. Notwithstanding anything herein to the contrary, all rights granted herein and hereby shall be construed so as to permit or require only such action and/or use that is in compliance with Applicable Security Laws and Regulations. Notwithstanding the foregoing, the Parties shall comply with all applicable Export Control Laws and Regulations.
		
	12.11
	Title and Headings

Titles and headings to Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.
		
	12.12
	No Waiver

A Party does not waive any right under this Agreement by failing to insist on compliance with any of the terms of this Agreement or by failing to exercise any right hereunder. Any waivers granted hereunder are effective only if recorded in a writing signed by the Party granting such waiver.
		
	12.13
	Severability

If any provision of this Agreement is determined by any court or Governmental Entity to be unenforceable, the Parties intend that this Agreement be enforced as if the unenforceable provisions were not present and that any partially valid and enforceable provisions be enforced to the extent that they are enforceable.
		
	12.14
	Governing Law; Jurisdiction

This Agreement (and any claims or disputes arising out of or related thereto or to the transactions contemplated thereby or to the inducement of any Party to enter therein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common Law, statute or otherwise) shall in all 

	
			
	 

	 
	28
	 

	
	
	 

respects be governed by and construed in accordance with the Laws of the State of New York, including all matters of construction, validity and performance, in each case without reference to any choice-of-law or conflict of law principles that might lead to the application of the Laws of any other jurisdiction. Subject to the provisions of Section 9 of the Master Separation and Distribution Agreement, each of the Parties irrevocably submits to the exclusive jurisdiction of (a) the Fairfax County Circuit Court and any appeals courts thereof or (b) the United States District Court for the Eastern District of Virginia and any appeals courts thereof (the courts referred to in clauses (a) and (b), the “Virginia Courts”), for the purposes of any suit, action or other proceeding to compel arbitration or for provisional relief in aid of arbitration in accordance with Section 9 of the Master Separation and Distribution Agreement or to prevent irreparable harm, and to the non-exclusive jurisdiction of the Virginia Courts for the enforcement of any award issued thereunder. Each of the Parties further agrees that service of any process, summons, notice or document by U.S. registered mail to such Party’s respective address set forth in Section 11.6 of the Master Separation and Distribution Agreement shall be effective service of process for any action, suit or proceeding in the Virginia Courts with respect to any matters to which it has submitted to jurisdiction in this Section 12.14. Each of the Parties irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in the Virginia Courts, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.
		
	12.15
	Dispute Resolution

The procedures set forth in Section 9 of the Master Separation and Distribution Agreement shall apply to the resolution of all disputes arising under this Agreement.
		
	12.16
	Specific Performance

From and after the Effective Date, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Parties agree that the Party to this Agreement that is or is to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of its rights under this Agreement, in addition to any and all other rights and remedies at Law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that, from and after the Effective Date, the remedies at Law for any breach or threatened breach of this Agreement, including monetary damages, are inadequate compensation for any loss, that any defense in any action for specific performance that a remedy at Law would be adequate is hereby waived, and that any requirements for the securing or posting of any bond with such remedy are hereby waived.
		
	12.17
	Counterparts

This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Party.
[Signature Page Follows]

	
			
	 

	 
	29
	 

	
	
	 

SIGNATORY
IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day and year first above written.

	
			
	 
	COMPUTER SCIENCES CORPORATION

	 
	By:
	 

	 
	Name:
	 

	 
	Title:
	 

	 
	COMPUTER SCIENCES GOVERNMENT SERVICES INC.

	 
	By:
	 

	 
	Name:
	 

	 
	Title:
	 

	
			
	 

	 
	30
	 

	
	
	 

SCHEDULE 1.1(vv)
LICENSED PRODUCTS
	
															
	Licensed Product
	Entire Licensed Product may be sublicensed to End Users
	Third Party software (including Open Source) and/or Third Party services that are required for Licensed Product must be licensed directly by Computer Sciences GS
	License to Source Code is provided to Computer Sciences GS
	Updates of entire Licensed Product will be provided if and when made available in accordance with CSC’s release schedule for the Licensed Product
	License to Licensed Products Documentation is provided; updates will be provided with product releases
	License to  
Licensed Product Specifications is provided; updates will be provided with product releases
	License to Licensed Product Sales Materials is provided; updates will be provided if and when made available in accordance with CSC’s release schedule for the Licensed Product
	Licensed Product Sales Materials licensed by CSC will include pricing information
	Licensed Product Configuration Software may be used for internal use and sublicensed to End Users
	Licensed Product Configuration Software is for internal use only; it may be used to provide services to End Users, but not sublicensed to End Users
	Updates of Licensed Product Configuration Software will be provided if and when made available in accordance with CSC’s release schedule for the Licensed Product
	License to Source Code for the Licensed Product Configuration Software is provided
	Technical Support of Licensed Product provided by CSC
	Notes

	Note:  If CSC is not licensing the entire Licensed Product to Computer Sciences GS (see Column B), CSC will be licensing one or more Licensed Product Items (see Columns F through M)

	I.  Resale Products
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	CSC Agility Platform
	Yes
	No
	No
	Yes
	Yes
	Yes
	Yes
	Yes
	N/A
	N/A
	N/A
	N/A
	See Reseller Agreement
	 

	II.  NPS-Developed Products
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	VirtualShip
	Yes
	Yes
	Yes
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes
	N/A
	N/A
	N/A
	N/A
	None
	 

	Yatri
	Yes
	Yes
	Yes
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes
	N/A
	N/A
	N/A
	N/A
	None
	 

	CVATS
	Yes
	Yes
	Yes
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes
	N/A
	N/A
	N/A
	N/A
	None
	Unless otherwise agreed-upon by the Parties in writing, Computer Sciences GS will continue to use CVATS to support the Visa Application Services Agreement between CSC Canada and the Canadian Government and any extensions thereof.

	
			
	 

	 
	1
	 

	
	
	 

	
															
	Licensed Product
	Entire Licensed Product may be sublicensed to End Users
	Third Party software (including Open Source) and/or Third Party services that are required for Licensed Product must be licensed directly by Computer Sciences GS
	License to Source Code is provided to Computer Sciences GS
	Updates of entire Licensed Product will be provided if and when made available in accordance with CSC’s release schedule for the Licensed Product
	License to Licensed Products Documentation is provided; updates will be provided with product releases
	License to  
Licensed Product Specifications is provided; updates will be provided with product releases
	License to Licensed Product Sales Materials is provided; updates will be provided if and when made available in accordance with CSC’s release schedule for the Licensed Product
	Licensed Product Sales Materials licensed by CSC will include pricing information
	Licensed Product Configuration Software may be used for internal use and sublicensed to End Users
	Licensed Product Configuration Software is for internal use only; it may be used to provide services to End Users, but not sublicensed to End Users
	Updates of Licensed Product Configuration Software will be provided if and when made available in accordance with CSC’s release schedule for the Licensed Product
	License to Source Code for the Licensed Product Configuration Software is provided
	Technical Support of Licensed Product provided by CSC
	Notes

	CSC Background Investigation System (CBIS)(a variant of i2MS)
	Yes
	Yes
	Yes
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Pricing Information Only
	Yes
	N/A
	N/A
	N/A
	N/A
	None
	 

	i2MS
	Yes
	Yes
	Yes
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes
	Not currently applicable
	N/A
	N/A
	N/A
	N/A
	None
	 

	Risk Manager
	Yes
	Yes
	Yes
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	Yes 
Updates provided by Computer Sciences GS but owned by CSC and licensed to Computer Sciences GS
	No
	No
	N/A
	N/A
	N/A
	N/A
	None
	 

	III.  Other
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	FuturEdge
	No
	Yes
	No
	No
	No
	No
	Yes
	No
	No
	No
	No
	No
	None
	 

	MyWorkStyle
	No
	Yes
	No
	No
	Starter Forms Only
	Yes
	Yes
	Yes
	Yes
See Notes
	N/A
	Yes
	No
	None
	Computer Sciences GS will build its own offering based on the Configuration Software and Specifications provided by CSC.  The Configuration Software will be provided to End Users and/or used internally only depending on how Computer Sciences GS constructs the offering.  All Third-Party software will be licensed directly by Computer Sciences GS.  Sales Materials, etc. will be provided if and when part of the general commercial release.

	
			
	 

	 
	2
	 

	
	
	 

	
															
	Licensed Product
	Entire Licensed Product may be sublicensed to End Users
	Third Party software (including Open Source) and/or Third Party services that are required for Licensed Product must be licensed directly by Computer Sciences GS
	License to Source Code is provided to Computer Sciences GS
	Updates of entire Licensed Product will be provided if and when made available in accordance with CSC’s release schedule for the Licensed Product
	License to Licensed Products Documentation is provided; updates will be provided with product releases
	License to  
Licensed Product Specifications is provided; updates will be provided with product releases
	License to Licensed Product Sales Materials is provided; updates will be provided if and when made available in accordance with CSC’s release schedule for the Licensed Product
	Licensed Product Sales Materials licensed by CSC will include pricing information
	Licensed Product Configuration Software may be used for internal use and sublicensed to End Users
	Licensed Product Configuration Software is for internal use only; it may be used to provide services to End Users, but not sublicensed to End Users
	Updates of Licensed Product Configuration Software will be provided if and when made available in accordance with CSC’s release schedule for the Licensed Product
	License to Source Code for the Licensed Product Configuration Software is provided
	Technical Support of Licensed Product provided by CSC
	Notes

	Enterprise Service Management (using ServiceNow)
	No
	Yes
	No
	No
	Yes
	Yes
	Yes
	Yes
	Yes
See Notes
	N/A
	Yes
	No
	None
	Computer Sciences GS is already building its own ServiceNow Blueprints (part of Configuration Software).  Computer Sciences GS will provide Blueprints to CSC upon CSC's request in accordance with rights to Improvements.  Computer Sciences GS will determine if blueprints will be sublicensed to End Users or used only internally based on its offering.

	Horizon
	No
	Yes
	No
	No
	Yes
	Yes
	Yes
	Yes
	Yes
(CSC usually sells the service only)
	N/A
	Yes
	No
	CSC will provide Tier 2 technical support.  If requires escalation to third-party vendor, will send ticket back to Computer Sciences GS
	Computer Sciences GS will build its own offering based on the Configuration Software and Specifications provided by CSC.  The Configuration Software will be provided to End Users and/or used internally only depending on how Computer Sciences GS constructs the offering.  All Third-Party software will be licensed directly by Computer Sciences GS.  Sales Materials, etc. will be provided if and when part of the general commercial release.

Current product is being changed due to changes in contract with Third-Party vendor.

	A-10
	No 
for internal use only
	Yes 
(platform requirements)
	No
	Yes
	No
	Yes
	No
	No
	No
	No
	No
	No
	Email support included in system
	 

	PM-10
	No 
for internal use only
	Yes 
(platform requirements)
	No
	Yes
	No
	Yes
	No
	No
	No
	No
	No
	No
	Email support included in web-based system
	CSC will be moving P-10 to same platform as A-10 within 6 months of the Effective Date. Until then, spreadsheet version is available for use by Computer Sciences GS.

	Catalyst
	No
	Yes 
(as necessary to view data, etc.)
	No
	No
	No
	Yes
	No
	No
	N/A
	N/A
	N/A
	N/A
	None
	Current version of Catalyst has already been delivered to Computer Sciences GS.  CSC will provide updates to Specifications only to the extent they continue to reside in Catalyst.

	
			
	 

	 
	3
	 

	
	
	 

	
															
	Licensed Product
	Entire Licensed Product may be sublicensed to End Users
	Third Party software (including Open Source) and/or Third Party services that are required for Licensed Product must be licensed directly by Computer Sciences GS
	License to Source Code is provided to Computer Sciences GS
	Updates of entire Licensed Product will be provided if and when made available in accordance with CSC’s release schedule for the Licensed Product
	License to Licensed Products Documentation is provided; updates will be provided with product releases
	License to  
Licensed Product Specifications is provided; updates will be provided with product releases
	License to Licensed Product Sales Materials is provided; updates will be provided if and when made available in accordance with CSC’s release schedule for the Licensed Product
	Licensed Product Sales Materials licensed by CSC will include pricing information
	Licensed Product Configuration Software may be used for internal use and sublicensed to End Users
	Licensed Product Configuration Software is for internal use only; it may be used to provide services to End Users, but not sublicensed to End Users
	Updates of Licensed Product Configuration Software will be provided if and when made available in accordance with CSC’s release schedule for the Licensed Product
	License to Source Code for the Licensed Product Configuration Software is provided
	Technical Support of Licensed Product provided by CSC
	Notes

	BizCloud
	No
	Yes
	No
	No
	Yes
	Yes
	Yes
	Yes
	Yes
	No
	Yes
	No
	Yes 
as provided to other CSC clients, except that Computer Sciences GS will escalate to applicable Third Party vendors
	 

	Hybrid Cloud
	No
	Yes
	No
	Yes
	Yes
	Yes
	Yes
	Yes
	No
	Yes 
(installed with Hybrid Cloud components but for internal use only)
	Yes
	No
	Yes 
as provided to other CSC clients, except that Computer Sciences GS will escalate to applicable Third Party vendors
	 

	Flame
	No 
Tool for Internal Use Only
	Yes
	Yes
	Yes
	No
	No
	No
	No
	N/A
	N/A
	N/A
	N/A
	None
	CSC & Computer Sciences GS will provide Improvements to each other.

	SoAssure
	No
	Yes
	No
	No
	No
	Yes

(to the extent resides in Catalyst)
	Yes
	No
	N/A
	N/A
	N/A
	N/A
	None
	 

Note:  All updates referenced in the table above are provided only during the Term of the Agreement.
In addition to the Licensed Products listed in the table above, Computer Sciences GS shall have rights in and to the CSC Intellectual Property embodied in or used for the Licensed Products listed in the table below as they exist as of the Effective Date.  Some of the additional Licensed Products listed in the table below are a group of products and/or services, each of which may include a different set of Licensed Product Items.  For such additional Licensed Products listed in the table below, updates will be provided to the products and/or services in existence as of the Effective Date, but will not include new products and/or services added to the group. In accordance with the delivery process agreed by the Parties pursuant to Section 7.1(c) of the Agreement, CSC will provide the Licensed Products Specifications for each additional Licensed Product listed in the table below to the extent they exist as of the Effective Date and including any updates during the Term. Computer Sciences GS’ rights in and to such Licensed Product Specifications are subject to the rights of any Third Party in and to such additional Licensed Products and do not include CSC legal, financial or other information that cannot properly be shared with Computer Sciences GS.

	
			
	 

	 
	4
	 

	
	
	 

At the request of Computer Sciences GS, CSC will provide Computer Sciences GS with the other Licensed Product Items, as applicable, for each additional Licensed Product listed in the table below.  Upon such request, CSC will provide an amendment to this Schedule 1.1(vv) adding the additional Licensed Products to the table above in order to identify the Licensed Products Items being provided to Computer Sciences GS for each additional Licensed Product listed in the table below and to provide the further information given in the table above.  In the event any additional Licensed Product is added to “Section I. Resale Products” in the table above, CSC will provide the additional terms required for the resale of such additional Licensed Product to End Users. For the avoidance of doubt, the Parties agree that none of the additional Licensed Products listed in the table below are or will be classified as NPS Developed Products.
For all additional Licensed Products listed in the table below, Third Party software (including Open Source) and/or Third Party services that are required for such products must be licensed directly by Computer Sciences GS.  
	
			
	Additional Licensed Products

	CSC Product  
Organization
	Product  
Family
	Product

	EBG
	Big Data & Analytics
	CSC Analytics as a Service

	EBG
	Big Data & Analytics
	CSC Big Data Analytics Insights

	EBG
	Big Data & Analytics
	CSC Big Data Platform as a Service

	EBG
	Big Data & Analytics
	CSC Big Data Platform Innovation

	EBG
	Big Data & Analytics
	CSC Big Data Strategy

	EBG
	Cloud
	CSC BizCloud HC

	EBG
	Cloud
	Cloud Migration Services

	EBG
	Cloud
	CloudCompute

	EBG
	Cybersecurity
	Business Continuity - Disaster Recovery

	EBG
	Cybersecurity
	Cyber Application Security Services

	EBG
	Cybersecurity
	Cyber Cloud Security Services

	EBG
	Cybersecurity
	Cyber Endpoint Security Services

	EBG
	Cybersecurity
	Cyber Identity and Access Management

	EBG
	Cybersecurity
	Cyber Network Security Services

	EBG
	Cybersecurity
	Cyber Risk Management Centers

	EBG
	Cybersecurity
	Security Testing Certification Laboratories

	EBG
	Mobility & Social
	Mobile Managed Services

	EBG
	Mobility & Social
	Mobile Solution Development

	EBG
	Mobility & Social
	Mobile Strategy Services

	GBS
	Application Services
	Application Development:  Application Development Services

	GBS
	Application Services
	Application Development:  Cloud Development Services

	
			
	 

	 
	5
	 

	
	
	 

	
			
	Additional Licensed Products

	GBS
	Application Services
	Application Management:  Application Management Services

	GBS
	Application Services
	Application Management:  Database Management Services

	GBS
	Application Services
	Application Management:  Enterprise Solutions Management

	GBS
	Application Services
	Application Management:  Performance Engineering Services

	GBS
	Application Services
	Application Management:  Platform Management Services

	GBS
	Application Services
	Application Management:  App Store

	GBS
	Application Services
	Application Modernization:  Migration Services

	GBS
	Application Services
	Application Modernization:  Portfolio Rationalization Services

	GBS
	Application Services
	Testing Services:  Application Testing Services

	GBS
	Application Services
	Testing Services:  Emerging Technology Testing

	GBS
	Application Services
	Testing Services:  ERP Testing:  Enterprise Solutions Testing

	GBS
	Application Services
	Testing Services:  Performance and Cloud Testing Services

	GBS
	Application Services
	Testing Services:  Infrastructure & Certification Testing

	GBS
	Application Services
	Testing Services:  Test Consulting Services

	GBS
	Application Services
	Fruition SIAM Services

	GIS
	LAN, Storage and Compute Platform
	Managed Mainframe Services

	GIS
	LAN, Storage and Compute Platform
	Managed Storage Services

	GIS
	LAN, Storage and Compute Platform
	Midrange Services Virtualized

	GIS
	LAN, Storage and Compute Platform
	CSC Project Services – Platform

	GIS
	LAN, Storage and Compute Platform
	Storage as a Service – Archive

	GIS
	LAN, Storage and Compute Platform
	Storage as a Service – Recover

	GIS
	LAN, Storage and Compute Platform
	Storage as a Service – Store

	GIS
	LAN, Storage and Compute Platform
	Fixnetix Low Latency Infrastructure

	GIS
	Service Management
	Asset and Configuration Management

	GIS
	Service Management
	Operational Service Management

	GIS
	Service Management
	Service Request Management

	GIS
	Workplace
	Enterprise Print Solutions

	GIS
	Workplace
	Enterprise Service Desk

	GIS
	Workplace
	Local Support

	GIS
	Workplace
	PC Backup-Restore Service

	GIS
	Workplace
	Telepresence as a Service

	Internal IP
	N/A
	Global Business Processes:  Finance & Accounting

	Internal IP
	N/A
	Global Business Processes:  Risk, Issue, & Opportunity Management

	Internal IP
	N/A
	Global Business Processes:  Human Resources

	
			
	 

	 
	6
	 

	
	
	 

	
			
	Additional Licensed Products

	Internal IP
	N/A
	Global Business Processes:  Sales Operations

	Internal IP
	N/A
	Global Business Processes:   Global Health and Safety

	Internal IP
	N/A
	Global Business Processes:  Global Environmental Management

	Internal IP
	N/A
	Expert Development Programs:  Distinguished Architects and Engineers Program

	Internal IP
	N/A
	Expert Development Programs:  Specialty training via the Catalyst Virtual Academy

Note: All Licensed Products listed on this Schedule 1.1(vv) are not necessarily generally available for licensing.

	
			
	 

	 
	7
	 

SCHEDULE 1.1(nnn)
RESTRICTED IP
		
	1.
	CR Family;

		
	2.
	SF Family;

		
	3.
	Airborne platform weaponization systems engineering methods;

		
	4.
	Non-standard aircraft systems engineering methods; and

		
	5.
	Select cyber tools.

	
	
	 

SCHEDULE 2.5(a)
LICENSED MARKS
		
	1.
	CSGOV – solely as permitted in accordance with Section 2.5 of this Agreement;

		
	2.
	COMPUTER SCIENCES GOVERNMENT SERVICES – solely as permitted in accordance with Section 2.5 of this Agreement;

		
	3.
	COMPUTER SCIENCES GS – solely as permitted in accordance with Section 2.5 of this Agreement;

4.COMPUTER SCIENCES – solely as permitted in accordance with Section 2.5 of this Agreement;

5.CSC – solely as permitted in accordance with Section 2.5 of this Agreement;
		
	6.
	CSC AGILITY PLATFORM – solely in connection with marketing and selling the Licensed Product CSC Agility, and distributing the Applicable Licensed Product Items for CSC Agility;

7.VirtualShip and  – solely in connection with the Applicable Licensed Product Items;
		
	8.
	YATRI – solely in connection with the Applicable Licensed Product Items;

		
	9.
	CVATS – solely in connection with the Applicable Licensed Product Items;

		
	10.
	CBIS – solely in connection with the Applicable Licensed Product Items;

		
	11.
	I2MS – solely in connection with the Applicable Licensed Product Items;

		
	12.
	FuturEdge – solely in connection with providing, marketing, and selling application modernization services;

		
	13.
	CSC MYWORKSTYLE – solely in connection with providing, marketing, and selling the same set of third-party and CSC communication, collaboration, mobility, infrastructure, security, social, and other tools, software, and services provided, marketed, and sold at such time by CSC under CSC’s then-current use of the CSC MYWORKSTYLE mark, compliance with such limitation to be determined by CSC;

		
	14.
	HORIZON – solely in connection with the Applicable Licensed Product Items and in connection with providing, marketing, and selling the same set of CSC and third-party components provided, marketed, and sold at such time by CSC under CSC’s then-current use of the HORIZON mark, compliance with such limitation to be determined by CSC;

		
	15.
	A-10 – solely in connection with the Applicable Licensed Product Items for internal human resources career tracking projection purposes;

		
	16.
	P-10 – solely in connection with the Applicable Licensed Product Items for internal human resources career tracking projection purposes;

		
	17.
	CATALYST – solely in connection with the Applicable Licensed Product Items to refer to information contained in the knowledge repository known as “Catalyst”;

	
			
	 

	 
	9
	 

	
	
	 

		
	18.
	CSC BizCloud – solely in connection with providing, marketing, and selling the same set of third-party and CSC infrastructure, monitoring, security and other tools, software and services provided, marketed, and sold at such time by CSC under CSC’s then-current use of the CSC BizCloud mark, compliance with such limitation to be determined by CSC;

		
	19.
	FLAME – solely in connection with the Applicable Licensed Product Items in connection with a tool used in providing automated software testing services;

		
	20.
	SOAsure – solely in connection with the Applicable Licensed Product Items in connection with consulting and professional services for integrating applications in a client environment;

		
	21.
	csgov.com;

		
	22.
	csgovserv.com;

		
	23.
	csgsus.com; and

		
	24.
	csgsweb.com.

	
			
	 

	 
	10
	 

	
	
	 

SCHEDULE 2.9(a)
WRITTEN PROPRIETARY ITEM USAGE CONSENT PROCEDURE
Written consent as required by Section 2.9(a) of this Agreement shall be sought in the following manner:
		
	1.
	An email addressed to [IP.administrator@cscportal.onmicrosoft.com], return receipt required, shall be sent with a “Subject” identification of “CSC Proprietary Item Usage Consent Request” and containing following required information:

		
	a.
	The Contract Solicitation Number or Contract Number.

		
	b.
	A brief description of the products and services required by the Solicitation/Contract and an identification of the end user(s).

		
	c.
	The applicable Solicitation/Contract patent and data rights provisions:

	
		
	FAR 52.227-1     £
	DFARS 252.227-7013   £

	FAR 52.227-11   £
	DFARS 252.227-7014   £

	FAR 52.227-13   £
	DFARS 252.227-7015   £

	FAR 52.227-14   £
	DFARS 252.227-7020   £

	FAR 52.227-17   £
	DFARS 252.227-7022   £

	FAR 52.227-19   £
	 

	Other: _______________________________________________________

		
	2.
	If any Intellectual Property Rights other than those Intellectual Property Rights in existence on the Effective Date of the Agreement and made or created in connection with NPS-Developed Products will be used in the performance of the Solicitation/Contract, then the email shall include the following additional  information:

		
	a.
	Identify the CSC Proprietary Items that GS will or may use, modify, enhance, disclose or deliver under the Solication/Contract.

		
	b.
	Identify the rights in technical data and software that were or will be asserted by Computer Sciences GS to CSC Proprietary Items.

		
	c.
	If rights other than Limited Rights, Restricted Rights or Commercial Rights will not be asserted to all technical data and software (as those terms are defined by the Applicable Security Laws and Regulations) associated with CSC Proprietary Items, provide a brief statement of why such course is reasonable.

		
	d.
	Whether the Solicitation/Contract, or any portion thereof, is classified or subject to DFARS 252.204-7000

		
	3.
	Computer Sciences GS shall request in its email that CSC’s decision on whether it will consent to the Computer Sciences GS course of action as set forth therein be issued within __ days. CSC will make a 

	
			
	 

	 
	11
	 

good faith effort to issue its decision within the requested time but the actual days required to reach a conclusion in each particular case may vary.

	
			
	 

	 
	12
	 

EXHIBIT A
FORM OF CSC AGILITY RESELLER AGREEMENT

RESELLER AGREEMENT

This Reseller Agreement (this “Agreement”) dated this              day of                 , 2015 (the “Effective Date”) by and between 

		
	(a)
	Computer Sciences Corporation, a Nevada corporation (“CSC”); and 

		
	(b)
	 [Reseller], a                          (“         ” or “Reseller”).  

(each a “Party” and collectively, the “Parties”)

		
	1.0
	Definitions; Order of Precedence

		
	1.1
	All capitalized terms are defined in Exhibit A – Definitions.

		
	1.2
	This Agreement includes the following Exhibits attached hereto:

Exhibit A – Definitions

Exhibit B – List of Licensed Software

Exhibit C – Rules of Engagement

Exhibit D – User Terms and Conditions
Attachment D.1 – Software License Order
    
Exhibit E -- Maintenance and Support Order    

		
	1.3
	In the event of a conflict, the following order of precedence will control in the order listed:

		
	(a)
	An Order executed by Reseller and CSC

		
	(b)
	An Attachment to an Exhibit to this Agreement

		
	(c)
	An Exhibit to this Agreement

		
	(d)
	This Agreement  

		
	1.4
	Any terms not defined herein shall have the same meaning as in the IP Matters Agreement.

		
	2.0
	Term

The term of this Agreement shall commence on the Effective Date and shall continue for a period of five (5) years (the “Term”).  If the IP Matters Agreement is extended for an additional term of five (5) years, this Agreement shall automatically extend for the same five (5) year period. In addition, upon expiration of the Term, this Agreement may be renewed or extended by mutual agreement of the Parties. 

	
			
	 

	 
	13
	 

		
	3.0
	Appointment As Reseller

		
	3.1
	Appointment as Reseller. Until this Agreement is terminated in accordance with Section 21.0, CSC (i) appoints Reseller as a reseller of the Licensed Software on a non-exclusive basis in the Territory (except as otherwise provided in the IP Matters Agreement) in accordance with the terms of this Agreement, and (ii) grants Reseller the right to Sell, Demonstrate and grant licenses for Evaluations of the Licensed Software to the End User(s) in the Territory. 

		
	3.2
	License Grant. Until this Agreement is terminated in accordance with Section 21.0, and subject to the terms and conditions of this Agreement, with respect to the Licensed Software, CSC hereby grants to Reseller a non-exclusive (except as otherwise provided in the IP Matters Agreement) license to:

		
	(i)
	exercise the rights granted under the CSC Agility License in the IP Matters Agreement;

		
	(ii)
	use the Licensed Software for Reseller’s internal use in accordance with (i) an executed CSC Agility Platform Software License Order and, if applicable, an executed CSC Agility Platform Maintenance and Support Order for such use, and (ii) all provisions of the CSC Agility Platform End User Terms as stated in Exhibit D; 

		
	(iii)
	distribute CSC-provided copies of the Licensed Software solely to End User(s) in the Territory; 

		
	(iv)
	use and Sell the Documentation and use the marketing materials provided by CSC in connection with such Licensed Software, solely in support of Reseller’s authorized uses of the Licensed Software; 

		
	(v)
	install and run a reasonable number of copies of Licensed Software on equipment belonging to Reseller for the sole purpose of Reseller’s staff being able to Demonstrate the Licensed Software to potential End Users; and

		
	(vi)
	authorize a third-party reseller, on a non-exclusive basis only, to Sell Licensed Software, Support Services and Documentation to End User(s) in accordance with (ii), (iii) and (iv) above and the terms of this Agreement.

		
	3.3
	Restrictions. Reseller may not, except as expressly provided in this Agreement or the IP Matters Agreement:

		
	(i)
	copy  the Licensed Software for any reason other than internal archival purposes;

		
	(ii)
	modify, decompile, disassemble or reverse engineer or otherwise attempt to derive, obtain or modify the source code to, write or develop any derivative software based upon the Licensed Software, or sell, rent, lease, license, sublicense, copy, reproduce, disclose or transmit the Licensed Software or any portion thereof, or permit any third party to do any of the foregoing, for any purpose whatsoever; or

		
	(iii)
	sublicense its rights to the Licensed Software as set forth in Section 3.2 and/or its right to Sell the Licensed Software or Documentation under this Agreement except as provided in Section 3.2(v) above.   

		
	3.4
	Business Code of Ethics and Compliance.  For purposes of this section, “Covered Person” is defined to include any individual who, to the knowledge of Reseller or CSC, as applicable: (1) holds an official governmental position; (2) is a political party official; (3) is a candidate for public office; (4) is an official of a public international organization (such as the World Bank, International Monetary Fund, World Health Organization, United Nations, or World Trade Organization); (5) is a director, officer or employee of a state-owned enterprise; or (6) is closely related (for example, through family, business, personal, or other connections) to any of the foregoing.  

Neither Reseller nor any employee of Reseller, nor CSC nor any employee of CSC, has offered, paid, promised or authorized the payment or gift of anything of value, directly or indirectly, to any Covered Person for the purpose of: (A) influencing any act or decision of any Covered Person, government, government agency or government-owned or controlled entity, in order to obtain or retain business in any way related to the Agreement; (B) directing business to CSC or to any person or entity in any way related to the Agreement; or (C) securing any improper business advantage 

	
			
	 

	 
	14
	 

relating to the Agreement, including, without limitation, any regulatory action to the advantage with respect to the Agreement.  Neither Reseller nor any Reseller employee, nor CSC nor any employee of CSC, has offered, paid, promised or authorized the payment or gift of anything of value to any person, while knowing or being aware of a likelihood that such money or thing of value would be offered, paid, given or promised, to any Covered Person for any purpose described in provisions (A) through (C) above.  Reseller and its employees and agents and CSC and its employees and agents will refrain from conduct identified in this section in the future with respect to the Agreement.  Neither CSC nor the Reseller is owned or controlled, in whole or in part, by a governmental entity or a Covered Person as defined above. 
 
		
	3.5
	Except as otherwise provided in the IP Matters Agreement or the Master Separation and Distribution Agreement, CSC reserves the right in its sole discretion, both inside and outside the Territory, to (i) to market and license the Licensed Software anywhere in the world using its own personnel, independent sales representatives or any other distribution channels, and (ii) to appoint any entity as a dealer, distributor, reseller or agent of the Licensed Software anywhere in the world.    

		
	4.0
	Code Delivery

		
	4.1
	CSC is responsible for providing Reseller with a means of downloading or otherwise obtaining a copy of the Licensed Software for each license sold.

		
	4.2
	Reseller shall obtain from CSC a separate copy of the Licensed Software for each software license sold by Reseller to an End User.  Reseller shall not reproduce the Licensed Software for distribution to its End Users.

		
	4.3
	Upon request by Reseller, CSC shall supply the CSC Software directly to the End User on Reseller’s behalf.  

		
	5.0
	Terms of Resale

Selling the Licensed Software shall be subject to the following: 

		
	(a)
	All agreements for the provision of the Licensed Software shall be entered into between Reseller and the applicable End User (the “Reseller End User Agreement”). CSC’s obligations and liabilities to Reseller shall be limited to those set out in this Agreement. Reseller shall have no authority to bind or obligate CSC under the terms of the Reseller End User Agreement.  The Licensed Software will be licensed to the End Users under the CSC brand in accordance with CSC’s branding guidelines as provided to Reseller in writing from time to time.

		
	(b)
	For its own internal use of the Software and for each End User and/or additional order for such End User, CSC and Reseller will enter into (i) a CSC Agility Platform Software License Order substantially in the form of Attachment E-1, and (ii) if required, a CSC Agility Platform Maintenance and Support Order substantially in the form of Exhibit E, for the Instances, Cloud Adapters and the number of Licensed Virtual Machines requested by the End User.

		
	(c)
	Reseller shall ensure that End Users accept and agree to be bound by the User Terms.  In addition, the terms of the Reseller End User Agreement shall be no less protective of CSC than the terms of this Agreement applicable to the Licensed Software.  Reseller shall be solely responsible for any amendments or variations made by Reseller to the User Terms, Documentation or marketing materials in the documents and information provided by Reseller to End Users and for the terms of any maintenance and support agreement related to the Licensed Software entered into with an End User.

		
	(d)
	Except as expressly provided in this Agreement, all costs relating to Selling the Licensed Software shall be borne by Reseller.

		
	(e)
	Reseller shall not export, re-export or disclose, directly or indirectly, the Licensed Software or related technical information, documents or materials (or any direct product thereof) in contravention of US export laws or applicable local laws.

	
			
	 

	 
	15
	 

		
	(f)
	Reseller is solely responsible for establishing the prices it charges to End Users for the Licensed Software. 

 
		
	(g)
	Except as expressly permitted by this Agreement or the IP Matters Agreement, Reseller shall not, nor shall it give permission to any third party, to: 

(i)    copy the Licensed Software or any portion thereof; or

		
	(ii)
	translate, modify, adapt, enhance, extend, decompile, disassemble or reverse engineer the Licensed Software or any portion thereof.

		
	(h)
	Reseller shall promptly notify CSC in writing of any breaches of the User Terms that may come to its attention, provide CSC with all information within its knowledge regarding such circumstance and assist CSC in all steps deemed necessary by CSC, including terminating the Reseller End User Agreement of the End User who has breached the User Terms.

 
		
	(i)
	Without limiting the applicability of the IP Matters Agreement, Sections 2.7(d) and 2.9(b) of the IP Matters Agreement shall apply to all sales to End Users.

 
		
	6.0
	Marketing

		
	6.1
	Reseller shall actively market and promote the applicable Licensed Software within the Territory with all due care and diligence. 

 
		
	6.2
	Each Party shall be responsible for carrying out the marketing obligations set forth in Exhibit C at its own cost and expense.  

		
	6.3
	Reseller is responsible for Localizing all marketing materials, Documentation and the User Terms to be used in the Territory, including obtaining and making all translations and other changes appropriate for the Territory, at the cost and expense of Reseller.  Reseller shall obtain prior written consent from CSC Offering Management for the CSC Agility Platform before beginning such Localization; such consent shall not be unreasonably withheld.  As part of such approval, CSC may provide Reseller with translations of the Documentation and the User Terms in the relevant language that have been previously approved by CSC.    

		
	6.4
	Reseller agrees that – 

		
	(a)
	no modifications or derivatives of the Documentation or CSC-provided marketing materials, including translations, shall be created without CSC’s prior written consent as set forth in Section 6.3 above;   

		
	(b)
	it shall not use any Documentation or marketing materials in relation to the Licensed Software except those supplied or approved by CSC; and

		
	(c)
	it shall not at any time use the Documentation or marketing materials, or any part thereof, for any purpose other than for the purposes expressly permitted by this Agreement.

		
	6.5
	Subject to the provisions of Sections 6.3 and 6.4, CSC hereby grants Reseller a license to (i) reproduce the Documentation and marketing materials, (ii) make derivative works of the Documentation solely as necessary to incorporate the Documentation into the Reseller End User Agreement, and (iii) distribute the Documentation and marketing materials to End Users, as necessary to market and Sell the Licensed Software and enable End Users to use the Licensed Software in accordance with this Agreement.  

		
	7.0
	Trademarks

	
			
	 

	 
	16
	 

		
	7.1
	CSC grants Reseller a license to use CSC’s trademarks, trade names, product names and service marks (“CSC Trademarks”) in connection with marketing and Selling the Licensed Software in accordance with the provisions of the IP Matters Agreement. 

		
	8.0
	Ordering Procedures

		
	8.1
	Reseller shall comply with the ordering procedures described in Exhibit C. 

		
	9.0
	Changes

		
	9.1
	CSC shall have the right to modify and otherwise update the User Terms by providing to Reseller an updated version of the User Terms reflecting the changes. Upon receipt of the updated User Terms, Reseller shall provide copies of such terms to the End Users, and Reseller shall require that each End User, including existing End Users, agree to the updated User Terms as a condition to the continuous provision of the Licensed Software to the End Users.

		
	10.0
	Support and Training

		
	10.1
	Reseller shall be solely responsible for providing first level help desk support to End Users. 

		
	10.2
	CSC will provide Platinum level Support Services to Reseller for its internal use of the Licensed Software.

		
	10.3
	In accordance with the applicable executed Maintenance and Support Order, CSC shall provide the following Support Services to Reseller:

		
	(a)
	second and third level help desk support to designated Reseller technical personnel, and 

		
	(b)
	maintenance releases.

		
	10.4
	CSC shall provide:

		
	(a)
	training to Reseller’s personnel as generally provided to resellers of CSC Agility Platform for the Selling and marketing of the Licensed Software by Reseller to End Users. CSC will be responsible for travelling expenses only if incurred by CSC’s personnel for purposes of such training. All other training costs and expenses, including the costs of making the necessary facilities and equipment available and travelling expenses of Reseller’s personnel shall be borne by Reseller; and  

		
	(b)
	access to the Documentation and marketing materials to be used by Reseller for purposes of Selling and marketing the Licensed Software to End Users in accordance with the terms of this Agreement, 

		
	10.5
	In the event that Reseller fails to perform its support obligations to End Users as set forth in this Agreement and the executed CSC Agility Platform Maintenance and Support Orders, CSC shall have the right, but not the obligation, to provide support directly to End Users to the extent that Reseller’s failure affects the performance of CSC’s obligations under this Agreement.  In such case, CSC may charge Reseller CSC’s then-current standard fees for such support. 

		
	11.0
	Insurance

		
	11.1
	Reseller shall, throughout the term of this Agreement and any extensions thereof, and for a period of twenty-four (24) months following expiry or termination of this Agreement, maintain in full force and effect at its sole cost and expense, the following insurance coverage:

		
	(a)
	Commercial General Liability insurance, including but not limited to, liability for property damage, bodily injury (including death), personal or advertising injury, employers’ liability, contractual liability, and non-owned automobile liability.  Coverage must be occurrence based, and provide limits of not less than one (1) million US dollars (US$1,000,000) per occurrence; and 

	
			
	 

	 
	17
	 

		
	(b)
	Workers Compensation insurance as required under applicable Legislation.

		
	11.2
	Such insurance coverage shall be provided by an insurance company rated a minimum of A-, X by A.M. Best and otherwise authorized to underwrite in the Territory.  The insurance policy under Section 11.1(a) shall name CSC as an additional insured.

		
	12.0
	Governance

		
	12.1
	Each Party agrees to manage this Agreement in accordance with the governance structure more specifically detailed in Exhibit C. 

		
	13.0
	Fees

For the Term of this Agreement, fees for the Licensed Software, including maintenance and support, are as stated in the IP Matters Agreement.  Any additional services, such as installation and configuration services, development of new Cloud Adapters and training, shall be provided under a separate professional services agreement at fees to be negotiated between the Parties.  

		
	14.0
	Intellectual Property Rights 

CSC (or its licensors) shall retain ownership of all Intellectual Property Rights in and relating to the Licensed Software, Documentation and marketing materials. The Licensed Software constitutes trade secrets, information and data proprietary to and copyrighted by CSC. Reseller acknowledges and agrees that unauthorized disclosure, use or copying of the Licensed Software will cause CSC serious loss or damage. Any customizations, enhancements, improvements, translations, derivative works or other modifications of the marketing, Documentation and/or Licensed Software made by Reseller shall be treated as Improvements under the IP Matters Agreement.  Any such Improvements shall belong to CSC and CSC shall have all right, title and Intellectual Property Rights in and to such Improvements. 

		
	15.0
	Confidentiality

		
	15.1
	“Confidential Information” means information disclosed by a Party in connection with this Agreement which if disclosed in tangible form is marked “Confidential” or with other similar designation to indicate that it is confidential or proprietary in nature or should reasonably be considered to be confidential given the circumstances of the disclosure and/or the nature of the information. The Parties agree that the receiving Party shall not publish or otherwise disclose, and shall not use for any purpose, any Confidential Information furnished to it by the other Party pursuant to this Agreement, except as set forth in this Section15.0.  Notwithstanding the foregoing, Confidential Information shall not include information that:

		
	(i)
	is already known to the receiving Party at the time of disclosure;

		
	(ii)
	is independently developed by the receiving Party without use of or reference to the Confidential Information of the disclosing Party;

		
	(iii)
	is or becomes publicly available other than by any breach of the receiving Party’s obligations; or

		
	(iv)
	is lawfully disclosed to the receiving Party without an obligation of confidentiality.

		
	15.2
	Notwithstanding the provisions of Section 15.1 above, each Party may disclose the other Party’s Confidential Information to the extent such disclosure is reasonably necessary to comply with applicable governmental laws, regulations, or orders; provided that if a Party is required to make any such disclosure of the other Party’s Confidential Information, it will, to the extent it may legally do so, give reasonable advance notice to the latter Party of such disclosure sufficient to give the disclosing Party an opportunity to secure confidential treatment of such information prior to its disclosure (whether through protective orders or otherwise).

	
			
	 

	 
	18
	 

		
	15.3
	Reseller may disclose CSC’s Confidential Information to End Users as necessary to market and Sell the Licensed Software and enable End Users to use the Licensed Software in accordance with this Agreement, provided that such End Users are under confidentiality obligations substantially similar to those in this Agreement.

		
	15.4
	CSC may disclose certain Confidential Information to CSC’s third-party suppliers, subject to an obligation of confidentiality, solely as necessary to (i) perform back-office functions and/or administrative services; (ii) obtain information specifically requested by Reseller, or (iv) as necessary to comply with legal and/or accounting requirements.  

		
	15.5
	Neither Party shall remove any trademark, trade name, copyright notice, patent marking, confidentiality, or other proprietary rights notice or marking from any materials provided to it by the other Party in connection with this Agreement. 

		
	16.0
	Data Protection.  

Notwithstanding anything to the contrary in Section 15.0 above, CSC’s entire obligation with respect to Data is set forth in this Section 16.0.  CSC will comply with data protection legislation to the extent such legislation applies to the services provided under this Agreement and/or to CSC as a software provider.  CSC will also maintain and enforce the then-current standard CSC security policies and standards applicable to the services provided under this Agreement as practiced at the CSC service locations from which CSC is providing the services.  As between Reseller and CSC, Reseller is solely responsible for the security of Data.  Reseller, at its own cost and expense, is solely responsible for obtaining and maintaining all government and third-party consents and/or approvals (including without limitation from End Users) that are required for CSC to access, store and/or otherwise process your Data to the extent necessary to fulfill CSC’s obligations under this Agreement.    

		
	18.0
	Warranties

		
	18.1
	Each Party represents and warrants to the other that –

		
	(a)
	it has the right and power to enter into this Agreement and to fulfill its obligations hereunder; and

		
	(b)
	entering into, and performance of its obligations under, this Agreement does not and will not violate, and is not inconsistent with, any agreements between such Party and any third parties or any applicable laws or regulations. 

		
	18.2
	Except as provided in the User Terms and Section 18.1, CSC TO THE MAXIMUM EXTENT ALLOWED BY LAW DISCLAIMS ALL WARRANTIES WITH RESPECT TO THE LICENSED SOFTWARE AND THE SUPPORT SERVICES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.  

		
	19.0
	Indemnification

The Parties’ respective indemnification obligations are as set forth in the IP Matters Agreement.

		
	20.0
	Limitation of Liability

The limitation of liability procedures are as set forth in the IP Matters Agreement.

		
	21.0
	Termination

		
	21.1
	Either Party may terminate this Agreement for cause upon written notice to the other Party if the other Party fails to cure a material breach of the Agreement within thirty (30) days after receiving written notice of the breach.

		
	21.2
	Either Party may immediately terminate this Agreement if the other Party is subject to proceedings in bankruptcy or insolvency, voluntarily or involuntarily, if a receiver is appointed with or without the other Party’s consent, if the 

	
			
	 

	 
	19
	 

other Party assigns its property to its creditors or performs any other act of bankruptcy or insolvency or if the other Party becomes insolvent and cannot pay its debts when they are due.

		
	21.3
	Upon any termination of this Agreement, Reseller will:

		
	(i)
	 cease –

		
	a)
	all marketing and distribution activities in respect of the Software License(s) under this Agreement; and

		
	b)
	the use of any CSC Trademark;

		
	(ii)
	return to CSC or cause  End Users to return, at Reseller’s expense, all copies of all Documentation and marketing materials, together with a certified statement by a duly authorized officer of Reseller stating that all such materials and any other Confidential Information of CSC have been returned to CSC; and

		
	(iii)
	pay all outstanding amounts due CSC in accordance with this Agreement, including but not limited to, any applicable termination fees.

		
	22.0
	Audit, Records and Reporting

		
	22.1
	Reseller shall maintain complete, true and accurate books of account and records sufficient to demonstrate compliance with the terms of this Agreement, including copies of the Reseller End User Agreements and other correspondence relating to its performance of its obligations under this Agreement, for at least six (6) years after termination of this Agreement and for no less than the period required by the law of the country where this Agreement and/or each Reseller End User Agreement is executed.  

		
	22.2
	CSC shall have the right to conduct audits in respect of Reseller’s compliance with Section 3.4, the records referred to in Section 22.1, and the manner in which the marketing materials, Documentation and Licensed Software are used by Reseller. Reseller will allow CSC reasonable access to its personnel, records, premises, network, facilities and software, and shall provide to CSC copies of any documents as may be required by CSC for purposes of the audit referred to herein, all of which shall be deemed Reseller’s Confidential Information. Such audits may be conducted by CSC personnel or by an independent third party auditor appointed by CSC who has executed a confidentiality agreement with Reseller no less protective of Reseller’s Confidential Information than the provisions of Section 15. In addition, Reseller shall either (i) include in its Reseller End User Agreements the right of CSC to audit the End User to verify compliance with the User Terms and Reseller’s compliance with this Agreement, or (ii) at the request of CSC, and at Reseller’s expense, perform an audit of its End User(s) using a mutually-agreed-upon third party auditor and parameters agreed-upon by CSC and provide CSC with a copy of the auditor’s report.  All such audits shall be conducted at mutually agreeable times, during normal business hours and subject to CSC providing reasonable prior notice to Reseller.

		
	22.3
	In the event the audit reveals any breach committed by Reseller: (i) Reseller shall reimburse CSC for the cost of the audit; and (ii) Reseller shall pay to CSC any loss and damages suffered as a result of any non-compliance as revealed by the audit conducted by CSC.

		
	23.0
	Compliance with Laws

		
	23.1
	Reseller shall, and when applicable shall require End Users to, obtain and maintain any governmental authorizations, registrations and filings required to Sell and use the Licensed Software. CSC shall obtain and maintain any governmental authorizations, registrations and filings required to provide the Licensed Software.  

		
	23.2
	Reseller and/or End Users shall be responsible for complying with all Laws related to (i) Reseller’s and/or the End User’s use of the Licensed Software, and (ii) the business of Reseller and/or the End Users.  CSC shall be responsible for complying with all Laws related to the Licensed Software and the business of CSC.

		
	24.0
	Publicity

	
			
	 

	 
	20
	 

		
	24.1
	CSC may use and publish Reseller’s name and logo, identifying Reseller as CSC’s reseller or partner with respect of the Licensed Software, subject to CSC’s compliance with any guidelines provided by Reseller. Comments/feedback regarding the Licensed Software may be used without restriction, attribution, or payment to Reseller. Except as provided herein, neither party shall make any media release or public announcements relating to these terms or its subject matter without the prior written consent of the other, which consent shall not be unreasonably withheld. 

		
	24.2
	The Parties shall coordinate all publicity relating to the transactions including press releases, if any, contemplated by this Agreement and no Party shall issue any press release, publicity statement or other public notice relating to this Agreement, or the transactions contemplated by this Agreement, without consulting with and obtaining the consent of the other Party, including allowing the other Party reasonable time to comment on such release, statement or other notice.

		
	25.0
	Dispute Resolution

   
		
	25.1
	Before initiating formal dispute resolution, representatives nominated by each Party will meet within fifteen (15) business days following receipt of a written request from either of them for a meeting. If a dispute is not resolved by the representatives as a result of the initial dispute resolution meeting(s), then either Party may request in writing a meeting of more senior executives. Appropriately senior executives of the Parties will meet within fifteen (15) business days following receipt of the request. If the dispute is not resolved as a result of the senior executive dispute resolution meeting(s), either Party may commence formal dispute resolution under Section 25.2.

		
	25.2
	The procedures set forth in Section 12.15 of the IP Matters Agreement shall apply to the resolution of all disputes arising under this Agreement that have not been resolved under Section 25.1.

		
	26.0
	Non Solicitation

Unless otherwise mutually agreed to by the Parties, during the Term and continuing for a period of twelve (12) months thereafter, neither Party may, directly or indirectly (for example, through its Affiliates), solicit or attempt to solicit the employment of, hire, employ or contract any officer, director, partner or employee of the other Party with whom it came into contact in the course of performing this Agreement. For greater certainty, the foregoing shall not prevent a Party from advertising employment or consulting opportunities or otherwise soliciting such opportunities to the general public and/or from hiring or employing any person who has responded to such advertising or solicitation. 

		
	27.0
	Notices

Except as otherwise provided in this Agreement, all notices required to be given hereunder shall be in writing and shall be delivered (a) personally; (b) by certified mail, return receipt requested; (c) by courier service having a record of receipt; (d) by facsimile with receipt of a “Transmission OK” acknowledgement; or (e) by email provided that such notice is followed by a copy of the notice delivered by means of (a), (b) or (c) above.  Notices will be deemed given on the day the notice is received.  Notices shall be addressed as follows:

		
	(i)
	If to Reseller:

 
		
	(ii)
	If to CSC:

Computer Sciences Corporation
3170 Fairview Park Drive
Falls Church, VA 22042
Attention: Contracts Department, CSC Cloud Business

Copy to:

	
			
	 

	 
	21
	 

Computer Sciences Corporation
3170 Fairview Park Drive
Falls Church, VA 22042
Attention: Senior Principal Counsel, CSC Cloud Business

		
	28.0
	Governing Law

		
	28.1
	The validity, interpretation, and enforcement of this Agreement as well as any disputes related to its subject matter, whether arising out of contract, warranty, strict liability, tort, equity, or otherwise shall be governed by and construed under the laws of the Commonwealth of Massachusetts, without regard to its conflict of law rules.  CSC and Reseller elect not to be bound by the United Nations Convention on Contracts for the International Sale of Goods.  

		
	28.2
	Reseller agrees that CSC may be irreparably harmed by the breach of the license for the Licensed Software by Reseller or End User, and that any remedy at law or in damages may be inadequate.  Reseller therefore agrees that notwithstanding anything to the contrary in Section 25 of this Agreement, in addition to any other remedies available at law or in equity, CSC may seek an injunction to prevent or stop such breach.  If a court of competent jurisdiction finds that Reseller or an End User has breached (or attempted or threatened to breach) the license for the Licensed Software, Reseller agrees that, without any additional findings of irreparable injury or other conditions to injunctive relief, it shall not oppose the entry of an appropriate order compelling performance (including enforcing any applicable Reseller End User Agreement) by the Reseller or End User and restraining Reseller or End User from any further breaches (or attempted or threatened breaches).

		
	29.0
	Force Majeure

Neither Party shall be liable to the other for delays or failures in performance resulting from causes beyond the reasonable control of that Party, including acts of God; acts of government or its agencies, including laws, regulations, and judicial action; strikes or other labor disputes or disturbances; power disruptions, including power rationing; riots or civil disturbances; acts of war; or communication, utility or transportation failures, or failure of supply. The obligation of the Party unable to perform, as set forth in this Section 29.0 (the “Affected Party”) shall be suspended, and non-performance shall be excused, during such force majeure event, subject to the Affected Party’s compliance with the following:  The Affected Party shall (i) give the other Party written notice of its inability to perform and a description, in reasonable detail, of the cause of the inability; (ii) will use diligent efforts to remedy the situation and remove, so far as is commercially reasonable and as soon as practicable, the cause of such inability; and (iii) give the other Party prompt notice of the cessation of the event of force majeure. In the event that the Affected Party is unable to overcome the force majeure event, and resume performance in accordance with the other terms of this Agreement, within two (2) months of the occurrence of the event, each Party shall have the right to terminate this Agreement by providing written notice of termination to the other.

		
	30.0
	General Provisions

		
	30.1
	This Agreement may not be assigned by Reseller, whether by operation of law or otherwise, to any other person, firm or entity without the express written consent of CSC.

		
	30.2
	Each Party is acting as an independent contractor and not as an agent, partner, franchisor, franchisee, or joint venturer with the other party for any purpose. Neither party shall have any right, power, or authority to act or to create any obligation, express or implied, on behalf of the other.

		
	30.3
	No supplement, modification or amendment of this Agreement shall be binding, unless executed in writing by a duly authorized representative of each Party.

		
	30.4
	Each provision of this Agreement is severable from the entire Agreement, and in the event that any provision is declared invalid or unenforceable, that provision shall be amended if possible to be enforceable, but in any event, the remaining provisions hereof shall remain in effect.

	
			
	 

	 
	22
	 

		
	30.5
	No waiver by either party of any default shall operate as a waiver of any other default or of a similar default on a future occasion. No waiver of any term or condition shall be effective unless in writing and signed by the party against whom enforcement of the waiver is sought.

		
	30.6
	The rights and remedies provided in this Agreement are cumulative with and unless expressly stated in this Agreement, do not exclude any rights and remedies provided by law or equity.

		
	30.7
	This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one single Agreement between the Parties. The Parties agree that this Agreement may be executed by facsimile transmission or other electronic means and that the reproduction of signatures by facsimile, other electronic means or similar device shall be treated as binding as if originals and each Party agrees and undertakes to provide the other Party with a copy of the Agreement bearing original signatures forthwith upon demand by the other Party.

		
	30.8
	This Agreement, together with the IP Matters Agreement and the Master Separation and Distribution Agreement, constitutes the complete and entire agreement of the Parties and supersedes all previous communications, oral or written, and all other communications between them relating to the subject matter hereof. The terms and conditions of this Agreement shall supersede any terms and conditions of any purchase orders or other ordering documents or acknowledgement given or received that are additional to or inconsistent with this Agreement. No representations or statements of any kind made by either Party, which are not expressly stated herein, shall be binding on such Party.

IN WITNESS WHEREOF, the parties hereto have affixed their signatures hereof on the date first written above. 

	
					
	COMPUTER SCIENCES CORPORATION
	 
	[RESELLER]

	By:
	 
	 
	By:
	 

	Name:
	 
	 
	Name:
	 

	Title:
	 
	 
	Title:
	 

	Date:
	 
	 
	Date:
	 

	
			
	 

	 
	23
	 

EXHIBIT A
DEFINITIONS

	
		
	Affiliate
	means, with respect to any entity, any other entity directly or indirectly Controlling or Controlled by, or under direct or indirect common Control with, such entity or one or more of the other Affiliates of that entity (or a combination thereof).

	Control
	means, with regard to any person, either –

(a)   the legal, financial or equitable ownership, directly or indirectly (including through any holding company), of fifty percent (50%) or more of the share capital (or other ownership interest, if not a corporation) of such person ordinarily having voting rights;

(b)   where such person is a corporation, the ability to elect a majority of the directors of the other person; or

(c)   other effective control of such person.

	Data
	means any data of either Reseller or an End User that is provided to CSC under this Agreement and/or to which CSC has access due to the performance of CSC’s obligations under this Agreement.

	Demonstrate
	means to the Licensed Software’s functions to its current and potential Licensees using a supervised installation of the Licensed Software.

	Documentation
	means the written manuals and technical specifications for the Licensed Software prepared by CSC as delivered to Reseller and as generally updated form time-to-time.

	End User
	means a customer of Reseller who is –
an agency or instrumentality of (i) the United States federal government or (ii) a state or local government located within the territory of the United States of America (other than in the CSC State and Local Field), or an entity outside of the United States of America solely in connection with (A) any Contract entered into between Computer Sciences GS and a United States federal Governmental Entity and (B) military sales that are sponsored or financed by a United States federal Governmental Entity.

	Enhancement
	means all modifications, improvements or upgrades to the Licensed Software made generally available by CSC during the term of this Agreement, including those Upgrades or Releases delivered pursuant to an executed CSC Agility Platform Maintenance and Support Order.

	Evaluation
	means an installation of the Licensed Software for the purpose of permitting a current or potential End User to evaluate the Licensed Software for such End User’s internal use on a temporary basis (not to exceed four (4) weeks without CSC’s prior consent).

	Intellectual Property Rights
	means the following rights, wherever in the world enforceable including all reversions, renewals and extensions:

•   inventions, discoveries and novel designs, whether registered or unregistered as patents or designs, including developments or improvements of equipment, products, technology, processes, methods or techniques;
•   any patents or patent applications;
•   copyright (including future copyright) throughout the world in all literary works, artistic works, computer software, and any other works or subject matter in which copyright subsists and may in the future subsist, or any derivative thereof; 
•   trade secrets; 
•   trade and service marks (whether registered or unregistered) including any applications for registration of the same; and 
•   any other intellectual or proprietary rights having a similar nature or equivalent effect anywhere in the world.

	IP Matters Agreement
	means the Intellectual Property Matters Agreement by and between CSC and Computer Sciences GS dated as of the Distribution Date.

	Licensed Software
	means any copy of the object code version of the computer software identified in Exhibit B to this Agreement, all Enhancements to such software and the Documentation.

	
			
	 

	 
	24
	 

	
		
	Localize
	means to (i) translate into the language used for carrying out business in the Territory in countries outside the United States and/or (ii) to make adaptations (including without limitation additions and deletions) required by a specific End User, in each case as necessary to (a) cause the text, visual displays, printouts, and other elements of user interfaces of the Services and Documentation to be appropriate for use in the Territory, and (b) implement functional variations as may be required for a specific End User.

	Master Separation and Distribution Agreement
	means the Master Separation and Distribution Agreement by and between CSC and Computer Sciences GS dated as of [l], 2015.

	Object Code
	means computer programming code, substantially or entirely in binary form, which is directly executable by a computer after suitable processing but without the intervening steps of compilation or assembly.

	Sell
	means to resell the Licensed Software to an End User in accordance with the terms of this Agreement.

	Support Services
	means the maintenance and support services set forth in a CSC Agility Platform Maintenance and Support Order executed by the Parties.

	Term
	has the meaning set forth in Section 2.0 of this Agreement.

	Territory
	has the meaning in Exhibit B.

	User Terms
	means the terms and conditions governing the use of the Licensed Software by End Users, as set out in Exhibit D “User Terms and Conditions”, including the terms of Attachment D-1, which Exhibit may be updated by CSC from time to time in accordance with Section 10.0 of this Agreement.

	
			
	 

	 
	25
	 

EXHIBIT B  
Licensed Software

Licensed Software – For Sale to End Users

	
		
	Licensed Software
	Territory

	CSC Agility Platform
	Computer Sciences GS Field.

	
			
	 

	 
	26
	 

EXHIBIT C
RULES OF ENGAGEMENT

		
	1.0
	Sales Process

CSC will provide sale and technical training to allow Reseller to conduct its own lead generation and sales pursuit strategies.  CSC will conduct a quarterly review with appropriate Reseller personnel to discuss the overall partnership.

		
	2.0
	Ordering Process

Reseller will provide to CSC a License Order for each End User identifying such End User.  Upon execution of the Order by CSC, CSC will assign license keys to Reseller to provide to the End User per the Order.  Each Order must include number of Licensed VMs, name of End User, term of license (if applicable), annual support and maintenance fee, and start date for annual maintenance and support. 

		
	3.0
	Marketing

.
		
	3.1
	CSC will provide general product marketing materials, as developed and used by CSC, for Reseller to use in its marketing campaigns.

		
	4.0
	Training

		
	4.1
	 CSC will provide one week of training to be scheduled at mutually convenient times and places for up to 15 Reseller personnel at no cost to Reseller.

		
	4.2
	CSC will provide additional training for Reseller personnel at its standard training rates.

		
	5.0
	Governance

		
	5.1
	Each party will appoint an account executive who will be responsible for managing the reseller relationship between CSC and Reseller. 

		
	5.2
	Meetings will be held quarterly to review all aspects of the relationship, including the product roadmap for CSC Agility Platform, and determine any improvements to be made to the partnership.

		
	5.3
	CSC and Reseller shall agree on the level of support to be provided by CSC for Reseller’s sales to End Users.

		
	6.0
	Reporting

Unless otherwise specifically agreed to by CSC in an Order for an End User, Reseller will configure each Instance of the CSC Agility Platform to email a license report to CSC and Reseller on a monthly basis.  Reseller shall not, and shall ensure its End Users do not, change this configuration during the applicable Order Term.  These emails will provide details on the End Users and number of virtual machines that are under management of the Licensed Software.  Reseller will also provide CSC with a monthly report of those End Users that are receiving Support Services.

	
			
	 

	 
	27
	 

EXHIBIT D
User Terms and Conditions

The following terms indicate the obligations of CSC under each executed CSC Agility Platform Software License Order.  As between CSC and Reseller, all obligations of “Customer” or “You” shall be the responsibility of Reseller.  

When included in a Reseller End User Agreement, Reseller must replace “CSC” with “Reseller”; however, the name of the Software, i.e. “CSC Agility Platform”, and the use of “CSC and CSC’s licensors” in Section 25 shall remain as written below.

CSC Agility Platform End User Terms
As used below, “Agreement” shall mean these CSC Agility Platform End User Terms together with the applicable Order for CSC Agility Platform.  “              ”, “You”, “Customer” or “Your” shall mean [          ] only excluding any Affiliates.
1.    DEFINITION OF SOFTWARE.  For purposes of this Agreement, the “Software” means the current generally available version of CSC Agility Platform, including any specified Agility Cloud Adapters and any software from third party licensors distributed with the Software (the “Software”), together with any related user manuals and product documentation provided or made available to You (“Documentation”).  The Software is delivered to You by internet download or other agreed upon means (“Media”), as and when otherwise determined by CSC.  The specific capabilities and functionality of the Software are detailed in the Documentation.
2.    LICENSE FOR LIMITED USE.  Subject to the terms and conditions of this Agreement and Your payment of all applicable fees, CSC hereby grants You a limited, nonexclusive, nontransferable, non-assignable (except as provided in Section 19 below), non-sublicensable right and license during the Term to install the specified number of Instances, as defined below, of the Software and use the Software for the management of the specified number of simultaneously running Virtual Machines, as defined below, as set forth in an order or other written agreement executed by You and CSC or Reseller (an “Order”). “Instance” means a copy of the Software that is executing on one or more CPUs and made available for Your access and use.  “Virtual Machine” or “VM” means a software implementation of a computing environment in which an operating system (OS) or program can be installed and run.
3.    RESTRICTIONS.  The Software licensed to You under this Agreement may be used only by You for Your internal business purposes.  You may not assign, sell, rent, lease, sublicense, lend, transfer, resell or distribute the Software, in whole or in part, to any third party or use the Software on behalf of any third party.  For the avoidance of doubt, the foregoing restriction is not intended to restrict Your right to allow third parties to access the Virtual Machines, or the associated applications and data, that are managed by the Software.  You agree not to copy the Software, in whole or in part, nor permit anyone else to copy the Software, except that You may make a reasonable number of copies of the Software and Documentation for customary backup and archival purposes. You may also copy the Documentation for internal use only to the extent required for Your use of the Software.  You agree not to modify, obscure or delete any proprietary rights notices included in or on the Software or Documentation and You agree to include all such notices on all copies.  You may not modify the Software, make derivative works or merge the Software into any other computer program.  You may not reverse engineer, disassemble or decompile the Software, in whole or in part or otherwise attempt to derive its source code.  You may not disclose the results of any benchmark tests of the Software to any third party without CSC’s prior written approval.  
4.    You acknowledge that, as between You and CSC, title and full ownership in and to the Software and all trade secret, copyright, patent and other intellectual property and proprietary rights in and to the Software remain with CSC and CSC’s third party licensors, whether or not any portion thereof is or may be validly copyrighted or patented.  You are granted the limited license rights to use and install the Software as described in this Agreement.  You agree to treat the Software, excluding any third party software, as CSC’s proprietary information and treat any third party software included with the Software as the respective third licensor’s proprietary information.  You will take all reasonable steps to protect the Software from disclosure to or use by any unauthorized third party.  Use, duplication or disclosure by or on behalf of the United States Federal Government is subject to the restrictions set forth in subparagraph (c)(1)(ii) of the Rights in Technical Data and Computer Software Clause of DFARS 227.7202-1 and in FAR Clause 52.227-19, or any superseding provisions.  
5.    TERM AND TERMINATION.
A.    Term.  This Agreement begins on the Effective Date and shall terminate upon the termination or expiration of the last Order attached hereto or incorporated by reference.

	
			
	 

	 
	28
	 

B.    Termination for Breach.  CSC may immediately terminate this Agreement if You breach any material term or condition of this Agreement; provided, however, that if any such breach is curable, CSC may terminate this Agreement only if You fail to cure such breach within 30 days of written notice to You describing such breach.
C.    Effect of Termination.  Upon termination or expiration of this Agreement, You will immediately uninstall the Software and: 1) return the Software and Documentation, together with all copies in any form and any other Confidential Information (as defined below) in Your possession or control; or 2) certify to CSC in writing that the same has been destroyed.  Any payment obligations as of the termination or expiration of this Agreement shall remain in effect.  
6.    PAYMENT.  You agree to pay to CSC or Reseller, as applicable, the fees (collectively, the “Fees”) set forth in the Order(s). Unless otherwise provided in the Order, You shall make all payments due to CSC in full within 30 days from the date of each invoice or such time (if any) stated in the applicable Order.  Any undisputed amounts remaining unpaid following the payment due date and all disputed payments that are paid following the resolution of such dispute shall bear interest accruing from the original payment due date through the date that such amounts are paid at the lower interest rate of (a) 1.0% per month and (b) the highest interest rate allowed by law.  For the avoidance of doubt, You are solely responsible for all taxes, fees, duties and governmental assessments (except for taxes based on CSC’s net income) that are imposed or become due in connection with the subject matter of this Agreement.
7.    SUPPORT AND UPDATES. During the Term, CSC or Reseller will provide such maintenance services, subject to a Maintenance and Support Services Order (the “Maintenance Services”).  If Maintenance Services are provided under an Order, they include the provision of any updates and enhancements to the Software and Documentation that are made generally available to CSC’s other customers receiving such Software.  Maintenance Services will not be provided after termination of this Agreement or any related Order.  Third party licensors are not responsible for providing any support in connection with the Software.
8.    EXPORT RESTRICTIONS. You are prohibited to export/re-export the Software and/or Documentation: (a) in violation of the export laws of the United States of America, the European Union or any other applicable jurisdiction; (b) if you know or have reason to know that an illegal re-export will take place; (c) to any entities listed on any U.S. Government Denied Party/Person List (See BIS’s The Denied Persons List, the Office of Foreign Assets Control’s Economic and Trade sanctions list, and the Office of Defense Trade Controls); or (d) to any person or entity you know or have reason to know that is involved in the design, development, manufacture or production of nuclear technology, or nuclear, biological or chemical “weapons of mass destruction”.
9.    OPEN SOURCE.  Certain items included with the Software are subject to “open source” or “free software” licenses (“Open Source Software”).  The Open Source Software is not subject to the terms and conditions of this Agreement.  Instead, each item of Open Source Software is licensed under the terms of the end user license that accompanies such Open Source Software.  Nothing in this Agreement limits Your rights under, or grants You rights that supersede, the terms and conditions of any applicable end user license for the Open Source Software.  A complete list of Open Source Software and each associated license is provided in the Documentation or available by written request to CSC via mail or email.  If required by an Open Source Software license, CSC (a) makes the distributed files, and, if applicable, CSC’s modifications to the Open Source Software available in accordance with the license requirement, and/or (b) makes the instructions for replacement of that Open Source Software available.  The effect and/or impact of such replacement cannot be reasonably foreseen, and consequently cannot be supported by CSC.  If You use Open Source Software in conjunction with the Software, You must ensure that Your use does not: (i) create, or purport to create, obligations of CSC or any of its third party licensors; or (ii) grant, or purport to grant, to any third party any rights to or immunities under CSC’s or any third party licensor’s intellectual property or proprietary rights.
10.    WARRANTY AND DISCLAIMER. 
A.    Warranty.  CSC represents, warrants and covenants to You that (i) to the extent within CSC’s control, the unmodified Software, as of the date delivered to you in accordance with this Agreement, will be free from any computer code or other technology specifically designed to disrupt, disable, harm or otherwise impede in any manner, any other software, hardware, computer system or network (sometimes referred to as “malware,” “viruses” or “worms”), and (ii) the Media is and will be free from defects in materials and workmanship under normal business use.  CSC further represents, warrants and covenants that any Maintenance and Support services performed by CSC pursuant to this Agreement (the “Services”) will be performed in a good and workmanlike manner by appropriately qualified and trained personnel.  If the Software, the Media or the Services (as applicable) fails to fulfill or is not in compliance with one or more of the warranties set forth in this Section 10(A), then You shall inform CSC in writing and provide to CSC such information and materials as CSC may reasonably request to document and reproduce such noncompliance.  Such information may include, if and to the extent applicable, a written explanation of the problem with the Software, the Media, the Services or other noncompliance, as applicable, a written description of the operating environment and (if permitted) a copy of any software program used with the Software.  As Your sole and exclusive remedy, CSC shall modify the Software or replace the Software with other software offering comparable functionality or replace the defective Media (or, if applicable, re-perform the Services), in each case as may be necessary to cause the Software, the Media or the Services (as applicable) to fulfill and be in compliance with the warranties set forth in this Section 10(A).  CSC shall have no responsibility if the Software has been altered in any way, if the Media has been damaged by misuse, accident, abuse, modification or 

	
			
	 

	 
	29
	 

misapplication, or if the failure arises out of use of the Software with other than a recommended hardware configuration.  Any such misuse, accident, abuse, modification or misapplication of the Software and/or Media will void the warranty above.
B.    DISCLAIMER.  EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, THE SOFTWARE IS OFFERED “AS IS,” AND YOU RECEIVE NO WARRANTY OF ANY KIND, EXPRESS OR IMPLIED OR OTHERWISE.  CSC AND ITS LICENSORS SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT.  CSC AND ITS LICENSORS DO NOT WARRANT THAT THE OPERATION OF THE SOFTWARE PRODUCTS WILL BE UNINTERRUPTED OR ERROR FREE OR THAT IT WILL FUNCTION OR OPERATE IN CONJUNCTION WITH ANY OTHER PRODUCT, SOFTWARE OR HARDWARE, OR THAT IT WILL NOT CAUSE ANY LOSS OR CORRUPTION OF DATA.
11.    LIMITATION OF LIABILITY.
A.    NO CONSEQUENTIAL DAMAGES.  TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, CSC AND ITS LICENSORS WILL NOT BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING FOR THE INDIRECT LOSS OF PROFIT, REVENUE OR CONTENT) ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, HOWEVER CAUSED, AND UNDER WHATEVER CAUSE OF ACTION OR THEORY OF LIABILITY BROUGHT (INCLUDING UNDER ANY CONTRACT, NEGLIGENCE OR OTHER TORT THEORY OF LIABILITY) EVEN IF CSC HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
B.    LIMITATION OF DAMAGES.  TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, CSC’S CUMULATIVE, AGGREGATE LIABILITY TO YOU OR ANY OTHER PARTY FOR ANY DAMAGES SHALL NOT EXCEED THE FEES PAID BY YOU TO CSC DURING THE TWELVE (12) MONTHS PRECEDING THE CLAIM GIVING RISE TO SUCH LIABILITY. 
C.    EXCEPTIONS.  The exclusions and limitations of liability in this Section 11 will not apply to (i) CSC’s breach of Section 12 (Indemnification) or to any amounts paid or payable in connection with such obligations, and (ii) CSC’s breach of Section 13 (Confidentiality).
12.    INDEMNIFICATION.  
A.    Indemnity.  CSC agrees to defend and hold You harmless from and against any liability, damage, loss or expense (including reasonable attorneys’ fees and expenses of litigation) (collectively, “Losses”) incurred by or imposed upon You in connection with any third party claim, action or proceeding (a “Claim”) that the Software as made available to You by CSC infringes any patent, copyright or trademark or misappropriates any trade secret.  You agree to defend and hold CSC, its third party licensors, its affiliates and its and their directors, officers, employees and agents and its and their respective successors, heirs and assigns (the “CSC Parties”) harmless from and against any Losses incurred by or imposed upon the CSC Parties or any of them in connection with any Claim arising from or in connection with (a) any breach of this Agreement by You or (b) your Use of the Software.  The Party requesting indemnification hereunder (the “Indemnified Party”) will (i) provide the Party providing indemnification hereunder (the “Indemnifying Party”) with prompt notice of any such Claim (provided, however, that failure to do so shall not relieve the Indemnifying Party of its indemnification obligations hereunder except to the extent of any material prejudice to the Indemnifying Party as a direct result of such failure); (ii) permit the Indemnifying Party to assume and control the defense of such action upon the Indemnifying Party’s written notice to the Indemnified Party of its intention to indemnify; and (iii) upon the Indemnifying Party’s written request, provide to the Indemnifying Party all available information and assistance reasonably necessary for the Indemnifying Party to defend such Claim.  The Indemnified Party shall have the right, at its sole cost and expense, to participate in the defense and settlement of any such Claim with counsel of its choice. Notwithstanding the foregoing, CSC shall have no obligation to indemnify You to the extent that any Claim arises from (a) Your use of the Software in contravention of this Agreement or the Documentation; (b) the combination or use of the Software with any other services, technology, content or material that were not provided by CSC; (c) the modification of the Software by anyone other than CSC; or (d) Your use of the Software after You reasonably could have implemented a non-infringing alternative pursuant to Section 12(B)(i) or (ii).
B.    Right to Ameliorate Damages.  In the event that a court of competent jurisdiction determines or in the event that CSC, in its sole discretion, reasonably determines, that the Software, or any portion thereof, infringes or misappropriates, or may infringe or misappropriate, any third-party intellectual property right, CSC shall, as Your sole and exclusive remedy (but without limitation of CSC’s obligations under Section 12(A)), and at CSC’s sole discretion, either: (i) modify the Software while retaining substantively equivalent functionality; or (ii) replace the affected Software with functionally equivalent software or services.
13.    CONFIDENTIALITY.  Each party (a “Receiving Party”) understands that the other party (the “Disclosing Party”) may disclose information of a confidential nature including, without limitation, the Software, product information, data, pricing, financial information, end user information, software, specifications, research and development and proprietary algorithms or other materials that is (a) clearly and conspicuously marked as “confidential” or with a similar designation or (b) is disclosed in a manner in which the Disclosing Party reasonably communicated, or the Receiving Party should reasonably have understood under the circumstances, that the disclosure should be treated as confidential, whether or not the specific designation “confidential” or any similar designation is used (“Confidential Information”).  The terms and conditions of this Agreement also constitute Confidential Information of each party.  The Receiving Party 

	
			
	 

	 
	30
	 

agrees, for itself and its agents and employees, that it will not publish, disclose or otherwise divulge or use for its own purposes (other than as expressly permitted under this Agreement) any Confidential Information of the Disclosing Party furnished to it by such Disclosing Party without the prior written approval of the Disclosing Party in each instance.  Each party will use at least the same level of care to maintain the Confidential Information of the other party as it uses to maintain the confidentiality of its own non-public information, and in no event less than a reasonable degree of care. The foregoing obligations shall not extend to any information to the extent that the Receiving Party can demonstrate that such information (i) was at the time of disclosure or, to the extent that such information thereafter becomes through no fault of the Receiving Party, public knowledge; (ii) was already properly and lawfully in the Receiving Party’s possession at the time it was received by the Receiving Party free from any obligation of confidentiality, (iii) was lawfully received by the Receiving Party from a third party who was under no obligation of confidentiality to the Disclosing Party with respect thereto, or (iv) was independently developed by the Receiving Party or its independent contractors who did not have access to the Disclosing Party’s Confidential Information.  In the event that the Receiving Party is required to disclose Confidential Information in accordance with judicial or governmental order or requirement, the Receiving Party shall promptly notify the Disclosing Party in order to allow such party to contest the order or requirement or seek confidential treatment for such information.
14.    DATA PROTECTION.  Notwithstanding anything to the contrary in Section 13 above, CSC’s entire obligation with respect to Your data is set forth in this Section 14.  CSC will comply with data protection legislation to the extent such legislation applies to the services provided under this Agreement and/or to CSC as a software provider.  To the extent You provide CSC with (i) Your data and/or (ii) access to Your data on Your systems, CSC will maintain and enforce the then-current standard CSC security policies and standards applicable to the services provided under this Agreement as practiced at the CSC service locations from which CSC is providing the services to You.  As between You and CSC, You are solely responsible for the security of the Data on Your Systems. 
15.    AUTOMATED COLLECTION OF USAGE DATA. Unless otherwise agreed-upon in writing, by Your use of this Software, you agree that CSC will be able to view the number of Virtual Machines under management by the Software.
16.    CSC RESELLERS.  If You obtain the Software through a Reseller, CSC’s obligations to You are set forth in this Agreement.  CSC is not responsible for the actions or statements of Reseller or any obligations they have to You.
17.    GOVERNING LAW; VENUE AND JURISDICTION.  This Agreement is to be governed by and interpreted in accordance with the laws of the Commonwealth of Massachusetts, without giving effect to its conflict of law provisions.  The parties expressly agree that the United Nations Convention on Contracts for the International Sale of Goods or the Uniform Computer Transactions Act shall not apply to this Agreement.  
18.    DISPUTE RESOLUTION.   
A.    Before initiating formal dispute resolution, representatives nominated by each Party will meet within fifteen (15) business days following receipt of a written request from either of them for a meeting. If a dispute is not resolved by the representatives as a result of the initial dispute resolution meeting(s), then either Party may request in writing a meeting of more senior executives. Appropriately senior executives of the Parties will meet within fifteen (15) business days following receipt of the request. If the dispute is not resolved as a result of the senior executive dispute resolution meeting(s), either Party may commence formal dispute resolution under Section 18(B).
B.    If a dispute has not been settled under Section 18(A), either Party may formally pursue any and all remedies it may have available at law or in equity. The Parties may, in their sole discretion, agree to mediation, arbitration, or any other dispute resolution process regarding a dispute. In the absence of agreement on an alternative process, the dispute may be resolved in a court of competent jurisdiction. TO THE EXTENT HEARD AND TRIED BY A COURT AND TO THE EXTENT NOT PROHIBITED BY LAW, ALL ACTIONS BETWEEN THE PARTIES WILL BE HEARD AND TRIED BY THE COURT SITTING WITHOUT A JURY AND THE PARTIES IRREVOCABLY WAIVE ANY RIGHTS TO A JURY TRIAL.
C.    Notwithstanding the foregoing, You acknowledge and agree that in the event that You breach Sections 2, 3, 6, 8 or 13 of this Agreement, CSC, without limitation of its other rights and remedies, shall be entitled to seek immediate injunctive relief in any court of competent jurisdiction.
19.    ASSIGNMENT.  This Agreement may not be assigned, transferred, delegated, sold or otherwise disposed of, including, without limitation, by operation of law, by You without the prior written consent of CSC.
20.    SEVERABILITY.  Each provision of this Agreement shall be viewed as separate and distinct, and in the event that any provision shall be deemed by a court of competent jurisdiction to be illegal, invalid or unenforceable, the court finding such illegality, invalidity or unenforceability shall modify or reform this Agreement to give as much effect as possible to such provision.  Any provision which cannot be so modified or reformed shall be deleted and the remaining provisions of this Agreement shall continue in full force and effect.

	
			
	 

	 
	31
	 

21.    NOTICES. All notices provided hereunder shall be in writing, delivered personally or sent by overnight courier, registered or certified mail to the addresses provided by the parties or such other address as may be specified in writing by notice given in accordance with this Section.  All such notices shall be deemed to have been given: (i) upon receipt when delivered personally or (ii) upon verification of receipt via overnight courier, registered or certified mail.
22.    WAIVER. Performance of any obligations required by a party hereunder may be waived only by a written waiver signed by an authorized representative of the other party, which waiver shall be effective only with respect to the specific obligation described herein.  Any waiver or failure to enforce any provision of this Agreement on one occasion will not be deemed a waiver of any other provision or of such provision on any other occasion. 
23.    FORCE MAJEURE. Each party will be excused from performance for any period during which, and to the extent that, it is prevented from performing any obligation or services as a result of causes beyond its reasonable control, and without its fault or negligence, including without limitation, acts of God , strikes, lockouts, riots, acts of war, epidemics, communication line failure and power failures.  Nothing in the foregoing shall be deemed to relieve You of Your obligation to pay any and all fees owed to CSC under this Agreement.
24.    INDEPENDENT CONTRACTORS.  It is the intention of CSC and You that CSC and You are, and will be deemed to be, independent contractors with respect to the subject matter of this Agreement, and nothing contained in this Agreement will be deemed or construed in any manner whatsoever as creating any partnership, joint venture, employment, agency, fiduciary or other similar relationship between CSC and You.  Neither You nor CSC will represent that it has any authority to assume or create any obligation, express or implied, on behalf of the other party (including, with respect to CSC, its third party licensors), or to represent the other party as agent, employee, franchisee or in any other capacity.
25.    THIRD PARTY NOTICE AND BENEFICIARIES.  The Software may include third party code that CSC, not the third party, licenses to You under this Agreement.  Notices, if any, for the third party code may be found on the third party’s website, in the Documentation or the Software’s Notices file.  CSC and CSC’s licensors are third-party beneficiaries of this Agreement for the purpose of enforcing these User Terms. 
26.    SURVIVAL.  Those provisions of this Agreement that by their terms should survive any termination of this Agreement shall be deemed to survive and remain in full force and effect.
27.    ENTIRE AGREEMENT.  This Agreement, together with the Order(s), is the entire agreement between the parties in respect of its subject matter and replaces all previous agreements or understandings between the parties, whether written, verbal, express or implied. In executing this Agreement, Customer has not relied on: (a) any previous statement or representation made in respect of the Agreement or related subject matter thereof; or (b) the availability of any future enhancement, maintenance release, update, upgrade, modification or revision, to either the Software or any future product.  This Agreement may only be modified or amended pursuant to a written agreement signed by each party.  
28.    HEADINGS.  Headings are for convenience only and are not deemed to be part of this Agreement. 

	
			
	 

	 
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Attachment D.1
CSC Agility Platform Software License Order

Client Legal Name:  
Order Date: 
Order Valid To:  30 calendar days from the Order Date
Order Number: 

Term:  
Cloud Adapters:  
License Keys:  

This Order (“Order”) is entered into between Computer Sciences Corporation (“CSC”) and the client named above (“Customer”, “Licensee” or “You”), effective upon the last date executed as indicated below (“Effective Date”), and contains the terms and conditions for certain Software to be licensed pursuant to the CSC Agility Platform End User License Agreement executed between CSC and Customer (“Agreement”).  Capitalized terms used but not defined in this Order will have the meanings provided in the Agreement.  In the event of a conflict between this Order and the Agreement, the terms of the Order shall govern.

		
	1.
	Term.  The Term begins on the Effective Date and continues as indicated below for the Term chosen above: 

Perpetual Term:  The Term shall continue until terminated as provided in the Agreement. 

One-Year Term:   The “Initial Term” of this Order is one (1) year from the Effective Date.  The license term will automatically renew for additional one-year periods, each a “Renewal Term,” unless You provide CSC with written notice at least 60 calendar days prior to the end of the current term or (b) until terminated as provided in the Agreement.  The pricing during any automatic Renewal Term shall be the same as that during the immediately prior term unless CSC has given You written notice of a pricing change at least 90 days before the end of that prior term, in which case the pricing change will be effective upon renewal and thereafter.
  

		
	2.
	Licenses and Fees.  License fees are due 30 days from the date of each invoice.  

	
			
	Number of Licensed  VMs
	Price Per VM
	One-Time Fees

	 
	 
	 

	Additional License Keys
(over 3)
	 
	One-Time Fees

	 
	 
	 

	Additional Cloud Adapters
(over 2)
	 
	One-Time Fees

	 
	 
	 

	 
	One-Time Fees

	TOTAL FEES
	 

The fees for any additional Licensed VMs shall be the same as provided herein unless CSC has given You 60 days’ prior written notice of a pricing change, at which time the pricing change will be effective as of the date in the notice and thereafter.

The Licensed VM Quantity specifies the maximum number of concurrently running Virtual Machines (VMs) under the management of the Software, summed across all of Your Instances of the Software.  Additional VM Licenses may be licensed from CSC or Reseller, as applicable, for the applicable Price per VM, under separate Order(s).  If You are currently receiving Maintenance & Support Services under an Order, then the applicable Maintenance and Support fees will be applied to the additional VM Licenses, prorated to the end of the current Maintenance Term.

		
	3.
	Cloud Adapters.  With the initial license of the Software under the Agreement, licenses to use two (2) CSC standard cloud adapters are included at no additional charge.  Additional cloud adapters may be licensed from CSC for an additional fee.   

	
			
	 

	 
	33
	 

		
	4.
	License Keys.  You may install and use a number of Instances of the Software equivalent to the Number of License Keys specified above. You agree to provide CSC with following information in order to issue the license keys: IP address and subnet mask of the servers on which the Software will be installed and allocation of the Number of Licensed VMs across the license keys. Additional license keys can be licensed from CSC for a one-time (non-recurring) license fee at then-current prices, under separate Order(s).  Customer assumes all liability of any kind that may result from delay by Customer in providing such information for issuance of license keys. 

 
5.     Governing Agreement.  All items in this Order are subject to the terms and conditions set forth in the Agreement.  
 

	
			
	 

	 
	34
	 

EXHIBIT E
CSC Agility Platform Maintenance and Support Services Order

Reseller Legal Name:
End User Name (if needed): 
Order Date:  
Order Valid To: 30 calendar days from the Order Date
Order Number: 

Term:  
Support Level:  

This CSC Agility Platform Maintenance and Support Services Order (“Order”) is entered into between Computer Sciences Corporation (“CSC”) and the Reseller named above (“Reseller”, or “You”), effective upon the last date executed as indicated below (“Effective Date”), and contains the terms and conditions for certain maintenance and support services to be provided by CSC pursuant to the Reseller Agreement: CSC Agility Platform  executed between CSC and Reseller (“Agreement”).  Capitalized terms used but not defined in this Order will have the meanings provided in the Agreement.  In the event of a conflict between this Order and the Agreement, the terms of the Order shall govern.

		
	3.
	Term.  The “Initial Term” of this Order is one (1) year from the (“Effective Date”).  The maintenance and support services term will automatically renew for additional one-year periods, each a “Renewal Term,” unless You provide CSC with written notice at least 60 calendar days prior to the end of the current term or until terminated as provided in the Agreement.  The pricing during any automatic renewal term is set forth below in Section 7.  

		
	4.
	Support.  CSC shall provide technical support for the Software as set forth in Section 4 below via telephone to Your approved requestor(s) during the Support Hours listed below:

	
	
	Support Hours

	8:00 a.m. - 8:00 p.m. ET during Business Days (Standard Support) 

OR

On call 24 X 7 (Platinum Support)  

All support will be conducted in English.

		
	5.
	Customer Responsibilities.

		
	a.
	The Licensee shall provide its end users of the Software with a help desk staffed with personnel who are fully trained on the use of the Software. The Licensee’s help desk staff will be responsible for providing Level 1support, as defined below.   

 
		
	b.
	For security and management purposes, any Licensee representative initiating a service ticket with CSC must be registered as an approved requester within the CSC support management system. Licensee may designate two approved requesters with CSC, each of whom must be fully trained on the use of the Software. Such designations may be changed from time-to-time by written notification to CSC.  To prevent unauthorized requests from taking place, a CSC support member may request approval via e‐mail for security sensitive requests.

		
	c.
	Level 1 Support. The Licensee’s help desk staff will provide Licensee’s end users of the Software with assistance on basic day-to-day usage questions and issues including account provisioning, password resets, access issues, configuration, and normal usage questions addressed in the Documentation.

 
		
	d.
	Level 2 Support. The Licensee’s help desk staff will ensure that Licensee’s internal support, troubleshooting, and escalation procedures have been pursued, including attempting to resolve any issues with the Software using all applicable resolution procedures set out in the Documentation. Level 2 Support triages issues, resolves configuration 

	
			
	 

	 
	35
	 

issues, provides detailed problem solving or problem documentation and generally attempts to solve issues before escalating to CSC support.

		
	e.
	When contacting CSC to initiate a service ticket, the approved requestor from the Licensee’s help desk staff must be able to provide the following information:

		
	i.
	Problem Statement: Identify clearly and specifically the problem that needs to be solved.

		
	ii.
	Steps to Reproduce: How can CSC reproduce the issue?

		
	iii.
	Impact Statement: How is the problem impacting your business? e.g., Not able to process orders.

		
	iv.
	Additional Contact Information: Any additional phone numbers or email addresses that may be required for a follow-up or further contact.

		
	v.
	Troubleshooting: Any troubleshooting steps already performed by a member of Licensee’s team.

		
	vi.
	Screenshots & Errors: Any available screenshots, and the exact error message you are receiving.

		
	vii.
	Log Files

		
	f.
	CSC may require the Licensee to provide direct remote access via VPN in order to troubleshoot and resolve certain problems.  It is the Licensee’s responsibility to promptly provide such access to the CSC support team and to ensure that all required approvals and consents are in place prior to granting such access. 

		
	6.
	Error Classification & Response Time. The CSC Agility Platform support team shall respond to Licensee’s inquiries regarding reproducible errors or bugs in the Software not caused by modifications made to the Software by persons other than CSC (“Errors”). CSC shall use commercially reasonable efforts to respond to Errors as described below and as commensurate with CSC’s classification of the Severity Level as follows: 

	
		
	Severity Level
	Criteria

	1 - Critical Business Impact
	An Error that causes a critical service impact and/or prevents use of the Software and/or a critical part of the Software is not available.

	2- Serious
	An Error that affects normal operation or service quality of the Software and/or that inhibits but does not prevent Licensee’s use of the Software

	3- Non-Critical
	A minor Error that does not affect normal operation or service quality of the Software, or an error in the Documentation, or a technical inquiry that is not related to an Error.

Response Time, Description of Effort, and Resolution Time Objectives are as follows:

	
				
	Severity Level
	Initial Response Time
(Receipt Confirmation)
	Description of Effort
	Resolution Time Objectives

	1 - Critical Business Impact
	0 – 2 Hours 
(Subject to contracted Support Hours)
	CSC will use commercially reasonable and continuous effort 24/7 to isolate and diagnose the defect.

Within 4 hours CSC Agility Platform Support will provide an evaluation of the defect and a plan to resolve it. The plan will include a timeframe required to provide an acceptable workaround and/or a permanent fix.
	CSC Agility Platform Support continues support effort until a permanent resolution or an acceptable workaround is delivered.

	2 - Serious
	0 – 4 Hours 
(Subject to contracted Support Hours)
	CSC will use continuous effort during Support Hours until a correction or workaround is provided. 

Within 8 hours CSC Agility Platform Support will provide an evaluation of the defect and a plan to resolve it. The plan will include a timeframe required to provide an acceptable workaround and/or a permanent fix. 
	An acceptable workaround will be provided within 2 Business Days

	3 – Non-Critical
	Next Business Day
	Acknowledge Errors, and provide a correction or workaround, if possible. within ten (10) business days. Provide permanent fix in next upgrade release or maintenance release.
	Provide a correction or workaround, if possible. within ten (10) business days. Provide permanent fix in next upgrade release or maintenance release.

Note: All response times are indicated from receipt of Licensee’s initial notification.

	
			
	 

	 
	36
	 

		
	7.
	Support Process. 

		
	a.
	When Licensee requires technical support, a CSC support member will open a service ticket, document the nature of the issue, assist the Licensee in collecting logs, screen captures and documenting the sequence of events or steps resulting in the issue to initiate troubleshooting and engage the necessary support resources.

		
	b.
	A strict “one issue per ticket” policy is enforced. This allows the CSC Agility Platform Support Team to work multiple issues simultaneously with the Licensee, ensuring each request or issue is handled appropriately and documented correctly.

		
	c.
	Resolution. Upon resolution, the support engineer will contact Licensee, providing any details of resolution and verify that the issue has resolved.  Once resolution has been confirmed, the ticket will be noted and closed.

		
	8.
	Non-Maintenance Services:  In the event that Licensee submits a request for support or an inquiry regarding a problem  that is later determined not to be an Error, and as a result of such request or inquiry, CSC performs services for Licensee that are not within the scope of the Maintenance and Support Services set forth in this Order, CSC will charge Licensee for any such additional services that cumulatively exceed ten (10) hours per year.  CSC will invoice License, and Licensee shall pay, for such services using CSC’s then-current hourly rates .  

		
	9.
	 Maintenance Fees.  Maintenance fees are due 30 days from the date of each invoice to be issued on the first day of each applicable term.  This price may change subject to fluctuations in CPI.

	
			
	Term
	Number of Licensed VMs
	Fees

	 
	 
	 

		
	10.
	Updates and Enhancements: This Order includes the provision for only those updates and enhancements to the Software and Documentation that are made generally available to CSC’s other customers receiving such Software. 

 
		
	11.
	Governing Agreement.  All items in this Order are subject to the terms and conditions set forth in the Agreement.  

	
					
	 
	 
	COMPUTER SCIENCES CORPORATION

	By:
	 
	 
	By:
	 

	 
	(Authorized Signature)
	 
	 
	(Authorized Signature)

	Name:
	 
	 
	Name:
	 

	Title:
	 
	 
	Title:
	 

	Date:
	 
	 
	Date:
	 

	
			
	 

	 
	37Exhibit

EXHIBIT 10.1

SECOND AMENDMENT

TO

CREDIT AGREEMENT
 
DATED AS OF NOVEMBER 2, 2015 
 
AMONG 
 
CALIFORNIA RESOURCES CORPORATION, 
AS THE BORROWER, 
 
JPMORGAN CHASE BANK, N.A., 
AS ADMINISTRATIVE AGENT, SWINGLINE LENDER 
AND A LETTER OF CREDIT ISSUER, 
 
BANK OF AMERICA, N.A., 
AS SYNDICATION AGENT, SWINGLINE LENDER 
AND A LETTER OF CREDIT ISSUER, 
 
AND

THE LENDERS 
PARTY HERETO

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SECOND AMENDMENT TO CREDIT AGREEMENT
This Second Amendment to the Credit Agreement (this “Amendment”) dated as of November 2, 2015, is among California Resources Corporation, a Delaware corporation (the “Borrower”), each of the undersigned guarantors (the “Guarantors”), each Lender (as defined below) party hereto, and JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (in such capacity, together with its successors and assigns, the “Administrative Agent”).
RECITALS
A.The Borrower, the Administrative Agent and the banks and other financial institutions from time to time party thereto (together with their respective successors and assigns in such capacity, each a “Lender”) have entered into that certain Credit Agreement dated as of September 24, 2014 (as amended by the First Amendment to Credit Agreement dated as of February 25, 2015 and as further amended, restated, modified or supplemented from time to time, the “Credit Agreement”).
B.The Borrower has requested and the Lenders party hereto have agreed to amend certain provisions of the Credit Agreement on the terms and conditions set forth herein.
C.NOW, THEREFORE, to induce the Administrative Agent and the Lenders to enter into this Amendment and in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Definitions.  Unless otherwise defined in this Amendment, each capitalized term used in this Amendment has the meaning assigned to such term in the Credit Agreement. Unless otherwise indicated, all section references in this Amendment refer to sections of the Credit Agreement.
Section 2.    Amendments to Credit Agreement.
2.1    Amendments to Section 1.1.  
(a)    The following defined terms are hereby amended and restated in their entirety or added in their entirety, in each case to read as follows:
“Applicable Margin” shall mean:
(a) during an Investment Grade Period and as otherwise provided in clause  (b) of this definition below, for any day, with respect to any ABR Loan or LIBOR Loan, as the case may be, the rate per annum set forth in the grid below based upon the Leverage Ratio in effect on such day:

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Table 1
	
					
	Leverage Ratio Grid

	Leverage Ratio
	≥ 3.00x
	< 3.00x 
and 
≥ 2.00x
	< 2.00x 
and
 ≥ 1.00x
	< 1.00x

	LIBOR Loans
	2.25%
	2.00%
	1.75%
	1.50%

	ABR Loans
	1.25%
	1.00%
	0.75%
	0.50%

	Commitment Fee Rate
	0.50%
	0.50%
	0.375%
	0.30%

During an Investment Grade Period, each change in the Commitment Fee Rate or Applicable Margin shall apply during the period commencing on the last day of each fiscal quarter of the Borrower after the date of such change and ending on the last day of the succeeding fiscal quarter of the Borrower after the date of such change (the “Calculation Period”).
During an Investment Grade Period, if any financial statements required to be delivered under Section 10.1 are not delivered within the time periods specified in Section 10.1, then the Applicable Margin and Commitment Fee Rate previously in effect shall continue to apply until such financial statements are delivered; provided that upon delivery of such financial statements, if timely delivery of such financial statements would have led to the application of a higher Applicable Margin or a higher Commitment Fee Rate for any Applicable Period than the Applicable Margin or Commitment Fee Rate, as applicable, actually applied during such time, then the Borrower shall immediately pay to the Administrative Agent the net accrued additional interest and expense (determined after taking into account any corresponding reduction in the Applicable Margin or Commitment Fee Rate in any other period), if any, owing as a result of such increased Applicable Margin or Commitment Fee Rate;
and 
(b) during a Borrowing Base Trigger Period, for any day, with respect to any ABR Loan or LIBOR Loan, as the case may be, the rate per annum set forth in the grid below based upon the Borrowing Base Utilization in effect on such day:
Table 2
	
						
	Borrowing Base Utilization Grid

	Borrowing Base Utilization Percentage

	≥ 90%
	< 90%
	< 75%
	< 50%
	< 25%

	LIBOR Loans
	2.75%
	2.50%
	2.25%
	2.00%
	1.75%

	ABR Loans
	1.75%
	1.50%
	1.25%
	1.00%
	.75%

	Commitment Fee Rate
	0.50%
	0.50%
	0.50%
	0.50%
	0.50%

2
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provided that (i) if for any day during a Borrowing Base Trigger Period, with respect to any ABR Loan or LIBOR Loan, as the case may be, the rate per annum set forth in the grid of Table 2 is lower than the rate per annum set forth in the grid of Table 1, the rate per annum set forth in the grid of Table 1 shall apply and (ii) if for any day during a Borrowing Base Trigger Period, the Leverage Ratio for the applicable Calculation Period is equal to or lower than 3.00 to 1:00, then the rate per annum set forth in the grid of Table 1 shall apply with respect to any ABR Loan or LIBOR Loan, as the case may be.
During a Borrowing Base Trigger Period, each change in the Commitment Fee Rate or Applicable Margin shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change; provided, however, that if the Borrower fails to deliver a Reserve Report pursuant to Section 10.13, and until such Reserve Report is delivered, then the “Applicable Margin” means the rate per annum set forth on Table 2 when the Borrowing Base Utilization Percentage is at its highest level. 
“Borrowing Base Properties” shall mean the Oil and Gas Properties of the Credit Parties included in the most recently delivered Reserve Report delivered pursuant to Section 10.13; provided that for the avoidance of doubt, Midstream Assets and Power Assets shall not constitute Borrowing Base Properties.
“Borrowing Base Trigger Event” shall mean (a) the public announcement by Moody’s or S&P that the Borrower’s Credit Rating is either Ba1 or lower from (or is unrated by) Moody’s or BB+ or lower from (or is unrated by) S&P or (b) the Borrower or one of its Restricted Subsidiaries creates, assumes or suffers to exist an Enumerated Lien.
“Borrowing Base Trigger Period” shall mean (a) the first Business Day following a Borrowing Base Trigger Event until the first Business Day on which (i) the Borrower’s Credit Rating is Baa3 with a stable or better outlook, or higher, from Moody’s and is BBB- with a stable or better outlook, or higher, from S&P and (ii) all Enumerated Liens are released; or (b) the period commencing with the date on which the Borrower elects under Section 14.18 to have the Facility governed by a Borrowing Base and ending on any date on which the Borrower has elected to cease to have the Facility governed by a Borrowing Base, provided, that on such date, no Borrowing Base Trigger Event is in effect.
“Borrowing Base Utilization Percentage” means, as of any day, the fraction expressed as a percentage, the numerator of which is the Total Exposure, and the denominator of which is the Borrowing Base in effect on such day.
“Collateral Requirements” shall mean, during a Borrowing Base Trigger Period, the collateral requirements set forth in Section 10.10 and in any other Security Document including without limitation: 

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(a)    a pledge by the Credit Parties of (i) 100% of the stock of each Restricted Subsidiary that is a Domestic Subsidiary directly owned thereby and (ii) 66-2/3% of the stock of each Restricted Subsidiary that is a Foreign Subsidiary directly owned thereby; and
(b)    with respect to substantially all other assets of the Credit Parties other than Excluded Property, first priority, perfected liens and security interests on such assets of the Credit Parties; provided that, (i) with respect to the Borrower’s Oil and Gas Properties (other than Excluded Property), the Credit Parties shall be required to deliver and maintain an Acceptable Security Interest on not less than 80% (but shall not be required to deliver and maintain an Acceptable Security Interest on more than 80%) of the PV-9 of the Proved Reserves evaluated in the Reserve Report most recently delivered to the Administrative Agent and (ii) with respect to all other assets other than Excluded Property, the Credit Parties shall not be required to take any action to perfect a lien on any such assets securing the Facilities unless such perfection may be accomplished by (A) the filing of a UCC-1 financing statement in the obligor’s jurisdiction of formation, (B) delivery of certificates representing any pledged equity consisting of certificated securities, in each case, with appropriate endorsements or transfer powers, (C) granting the Administrative Agent control (within the meaning of the Uniform Commercial Code) over any pledged equity consisting of uncertificated securities or (D) granting the Administrative Agent control (within the meaning of the Uniform Commercial Code) over any Deposit Accounts (other than Excluded Deposit Accounts) by entering into a deposit account control agreement with the Administrative Agent and the account bank for such Deposit Account; provided further that such assets may be subject to Liens permitted under Section 11.2; and provided further that no intention to subordinate the first priority Lien of the Administrative Agent and the Secured Parties pursuant to the Security Documents is to be hereby implied or expressed by the permitted existence of such Permitted Liens.
“Consolidated EBITDAX” shall mean, for any period, for the Borrower and its Restricted Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income for such period plus (a) the following to the extent deducted in calculating such Consolidated Net Income: (i) Consolidated Interest Charges for such period, (ii) an amount equal to the provision for federal, state, and local income and franchise taxes payable or to become payable by the Borrower and its Restricted Subsidiaries for such period, (iii) depletion, depreciation, amortization and exploration expense for such period (including all drilling, completion, geological and geophysical costs), (iv) losses from asset Dispositions (excluding Hydrocarbons Disposed of in the ordinary course of business), (v) all other non-cash items reducing such Consolidated Net Income for such period, and (vi) extraordinary or non-recurring losses for such period, and minus (b) the following to the extent included in calculating such Consolidated Net Income: (i) federal, state and local income tax credits of the Borrower and its Restricted 

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Subsidiaries for such period (ii) gains from asset Dispositions (excluding Hydrocarbons Disposed of in the ordinary course of business), (iii) all other non-cash items increasing Consolidated Net Income for such period, and (iv) extraordinary or non-recurring gains for such period; provided that, with respect to the determination of the Borrower’s compliance with the Financial Performance Covenants set forth in Section 11.11 for any period, Consolidated EBITDAX shall be adjusted to give effect, on a pro forma basis, to any Qualified Acquisition or Qualified Disposition made during such period, as if such acquisition or Disposition had occurred on the first day of such period. 
“Consolidated First Lien Secured Debt” shall mean, as of any date of determination, the sum of (a) the Total Exposure of all Lenders on such date, plus (b) without duplication of any amounts included in clause (a), the aggregate principal amount of Consolidated Total Debt of the Borrower and its Restricted Subsidiaries on such date that is secured by a first priority Lien on any asset or Property of the Borrower or any Restricted Subsidiary, minus (c) the aggregate amount of unrestricted cash and Permitted Investments (other than clauses (b) and (i) thereof) included in the cash and cash equivalents accounts listed on the consolidated balance sheet of the Borrower and the Restricted Subsidiaries at such date, not to exceed $50,000,000 (it being understood that such amount shall exclude in any event any cash or cash equivalents identified on such balance sheet as “restricted” (it being further understood that (i) cash or cash equivalents subject to a control agreement in favor of any Person other than the Administrative Agent or any Lender shall be deemed “restricted”, and (ii) cash or cash equivalents restricted in favor of the Administrative Agent or any Lender (excluding cash that is Cash Collateralizing outstanding L/C Obligations under Section 3.8) shall be deemed not “restricted”)).
“Consolidated Interest Charges” shall mean, for any period, for the Borrower and its Restricted Subsidiaries on a consolidated basis, the sum of (a) all interest, premium payments, debt discount, fees, charges and related expenses of the Borrower and its Restricted Subsidiaries for such period in connection with borrowed money (including capitalized interest for such period) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP and (b) the portion of rent expense of the Borrower and its Restricted Subsidiaries with respect to such period under capital leases that is treated as interest in accordance with GAAP; provided, that Consolidated Interest Charges shall not include non-cash interest and amortization of original issue discount on the Permitted Second Lien Indebtedness; provided, further, that Consolidated Interest Charges shall include payment in kind interest.
“Consolidated Total Debt” shall mean, as of any date of determination, (a) all Indebtedness of the types described in clauses (a) and (b) (other than intercompany Indebtedness owing to the Borrower or any Restricted Subsidiary), clause (d) (but, in the case of clause (d), only to the extent of any unreimbursed drawings 

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under any letter of credit that has not been cash collateralized) and clauses (e) through (i) (but, in the case of clause (i) only to the extent of Guarantee Obligations with respect to Indebtedness otherwise included in this definition) of the definition thereof, in each case actually owing by the Borrower and the Restricted Subsidiaries on such date and to the extent appearing on the balance sheet of the Borrower determined on a consolidated basis in accordance with GAAP minus (b) the aggregate amount of unrestricted cash and Permitted Investments (other than clauses (b) and (i) thereof) included in the cash and cash equivalents accounts listed on the consolidated balance sheet of the Borrower and the Restricted Subsidiaries at such date, not to exceed $50,000,000 (it being understood that such amount shall exclude in any event any cash or cash equivalents identified on such balance sheet as “restricted” (it being understood that (i) cash or cash equivalents subject to a control agreement in favor of any Person other than the Administrative Agent or any Lender shall be deemed “restricted”, and (ii) cash or cash equivalents restricted in favor of the Administrative Agent or any Lender (excluding cash that is Cash Collateralizing outstanding L/C Obligations under Section 3.8) shall be deemed not “restricted”)).
“Enumerated Liens” shall mean, at any time of determination, any Lien that is incurred under Section 11.2(e) (but only with respect to Liens permitted by Section 11.2(f)) or Sections 11.2(f), (g), (h), (w), (y), or (z); provided that if at such time such Lien could otherwise be incurred under Section 11.2, such Lien shall not be deemed to be an Enumerated Lien at such time.
“Excluded Deposit Account” shall mean Deposit Accounts the balance of which consists exclusively of (a) withheld income taxes and federal, state or local employment taxes required to be paid to the Internal Revenue Service or state or local government agencies with respect to employees of the Borrower or any Subsidiary, (b) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg. Sec. 2510.3 102 on behalf of or for the benefit of employees of the Borrower or any Subsidiary and (c) amounts set aside for payroll and the payment of accrued employee benefits, medical, dental and employee benefits claims to employees of the Borrower or any Subsidiary.
“Excluded Property” shall mean (a) all Excluded Stock, (b) any property to the extent the grant or maintenance of a Lien on such property (i) is prohibited by applicable law, (ii) could reasonably be expected to result in material adverse tax consequences to the Borrower or any Subsidiary of the Borrower, (iii) requires a consent not obtained of any Governmental Authority pursuant to applicable law or (iv) is prohibited by, or constitutes a breach or default under or results in the termination of or requires any consent not obtained under, any contract, license, agreement, instrument or other document evidencing or giving rise to such property, except to the extent that such term in such contract, license, agreement, instrument or other document or similar agreement providing for such prohibition, breach, default or termination or requiring such consent is ineffective under 

6
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applicable law (including without limitation, pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the New York UCC), (c) motor vehicles and other assets subject to certificates of title, (d) trust accounts, payroll accounts, zero balance accounts and escrow accounts, in each case for so long as they remain such type of account, (e) all real property not constituting Borrowing Base Properties, (f) all Midstream Assets and Power Assets and (g) any property as to which the Administrative Agent and the Borrowers agree in writing that the costs of obtaining a security interest in, or Lien on, such property, or perfection thereof, are excessive in relation to the value to the Secured Parties of the security interest afforded thereby.
“First Lien Senior Secured Leverage Ratio” shall mean as of the last day of each fiscal quarter of the Borrower, the ratio of (a) Consolidated First Lien Secured Debt as of such date to (b) Consolidated EBITDAX for the Test Period ending on such date (after giving pro forma effect to any transactions contemplated in such period as set forth in the definition of “Consolidated EBITDAX”).
“First Scheduled Redetermination Date” shall mean January 15, 2016.
“Interest Expense Ratio” shall mean, as of the last day of each fiscal quarter of the Borrower, the ratio of (a) Consolidated EBITDAX for the Test Period ending on such date (after giving pro forma effect to any transactions completed in such period as set forth the definition of “Consolidated EBITDAX”) to (b) Consolidated Interest Charges for the Test Period ending on such date.
“ISP” shall mean, with respect to any standby Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance).
“Leverage Ratio” shall mean, as of the last day of each fiscal quarter of the Borrower, the ratio of (a) Consolidated Total Debt as of such date to (b) Consolidated EBITDAX for the Test Period ending on such date (after giving pro forma effect to any transactions completed in such period as set forth in the definition of “Consolidated EBITDAX”).
“Liquidity” shall mean, as of any date of determination, the positive difference, if any, between (a) the sum of (i) the Available Revolving Commitment and (ii) the aggregate amount of unrestricted cash and cash equivalents of the Borrower and its Restricted Subsidiaries as set forth on the most recent consolidated balance sheet of the Borrower and its Restricted Subsidiaries (it being understood that (1) cash or cash equivalents subject to a control agreement in favor of any Person other than the Administrative Agent or any Lender shall be deemed “restricted” (except calculating the Consolidated Cash Balance for purposes of Section 5.2(d), in which case such cash or cash equivalents shall be deemed not “restricted”) and (2) cash or cash equivalents upon which a Lien in favor of the Administrative Agent or any Lender has been granted (excluding cash that is Cash Collateralizing outstanding L/C Obligations under Section 3.8) shall be deemed 

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not “restricted”) (the amount in this clause (ii), the “Consolidated Cash Balance”) and (b) the amount, if any, of the Borrowing Base Deficiency existing on such date of determination.
“Midstream Assets” shall mean all tangible and intangible property used in (a) gathering, compressing, treating, processing and transporting Hydrocarbons, water or steam; (b) fractionating and transporting Hydrocarbons, water or steam; and (c) marketing Hydrocarbons, water or steam; including, without limitation, gathering lines and gathering systems, pipelines and pipeline systems, storage facilities, liquid extraction plants, plant compressors, pumps, pumping units, field gathering systems, gas processing plants, and any other gathering, transportation, compression, storage, processing, treating, dehydration, fractionation, generation, disposal or other similar assets related to the handling of Hydrocarbons, water or steam, and together with surface leases, rights-of-way, easements and servitudes related to each of the foregoing.
“Net Cash Proceeds” shall mean (a) with respect to any Disposition, the cash proceeds (including cash proceeds subsequently received (as and when received) in respect of noncash consideration initially received), net of (i) selling expenses (including reasonable broker’s fees or commissions, legal, accounting and investment banking fees and expenses, title insurance premiums, survey costs, transfer and similar taxes and the Borrower’s good faith estimate of income taxes paid or payable in connection with such sale), (ii) amounts provided as a reserve, in accordance with GAAP, against any liabilities under any indemnification obligations or purchase price adjustment associated with such Disposition (provided that, to the extent and at the time any such amounts are released from such reserve, such amounts shall constitute Net Cash Proceeds), (iii) amounts paid in respect of the termination of Hedge Agreements in respect of notional volumes or amounts corresponding to the property subject of such Disposition or any Indebtedness being repaid under clause (iv) and (iv) the principal amount, premium or penalty, if any, interest and other amounts on any Indebtedness permitted hereunder that is secured by a Lien permitted hereunder (other than any Lien pursuant to a Security Document) on the asset disposed of in such Disposition and required to be repaid with such proceeds (other than any such Indebtedness assumed by the purchaser of such asset); and (b) with respect to any issuance or incurrence of Indebtedness, the cash proceeds thereof, net of all taxes and attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, listing fees, commissions and brokerage, consultant and other customary fees and charges actually incurred in connection with such issuance.
“Permitted Refinancing Indebtedness” shall mean, with respect to any Indebtedness (the “Refinanced Indebtedness”), any Indebtedness issued or incurred in exchange for, or the net proceeds of which are used to modify, extend, refinance, renew, replace or refund (collectively to “Refinance” or a “Refinancing” or “Refinanced”), such Refinanced Indebtedness (or previous 

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refinancing thereof constituting Permitted Refinancing Indebtedness); provided that (A) the principal amount (or accreted value, if applicable) of any such Permitted Refinancing Indebtedness does not exceed the principal amount (or accreted value, if applicable) of the Refinanced Indebtedness outstanding immediately prior to such Refinancing except by an amount equal to the unpaid accrued interest and premium thereon plus other amounts paid and fees and expenses incurred in connection with such Refinancing plus an amount equal to any existing commitment unutilized and letters of credit undrawn thereunder, (B) if the Indebtedness being Refinanced is Indebtedness permitted by Section 11.1(h) or 11.1(i), the direct and contingent obligors with respect to such Permitted Refinancing Indebtedness are not changed (except that a Credit Party may be added as an additional obligor), (C) other than with respect to a Refinancing in respect of Indebtedness permitted pursuant to Section 11.1(g), such Permitted Refinancing Indebtedness shall have a final maturity date equal to or later than the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the Refinanced Indebtedness (calculated at the time such Permitted Refinancing Indebtedness is incurred), (D) if the Indebtedness being Refinanced is Indebtedness permitted by Section 11.1(h) or 11.1(i), terms and conditions of any such Permitted Refinancing Indebtedness, taken as a whole, are not materially less favorable to the Lenders than the terms and conditions of the Refinanced Indebtedness being Refinanced (including, if applicable, as to collateral priority and subordination, but excluding as to interest rates, fees, floors, funding discounts and redemption or prepayment premiums); provided that a certificate of an Authorized Officer of the Borrower delivered to the Administrative Agent at least five Business Days prior to the incurrence or issuance of such Indebtedness, together with a reasonably detailed description of the material terms and conditions of such Indebtedness or drafts of the documentation relating thereto, stating that the Borrower has determined in good faith that such terms and conditions satisfy the foregoing requirement shall be conclusive evidence that such terms and conditions satisfy the foregoing requirement and (E) if the Indebtedness being Refinanced is Indebtedness permitted by Section 11.1(z), the terms and conditions of such Permitted Refinancing Indebtedness meet the requirements of clauses (i), (ii), (iii) and (iv) of the definition of “Permitted Second Lien Indebtedness” if such Permitted Refinancing Indebtedness is secured by any Property of the Borrower or its Restricted Subsidiaries.
“Permitted Second Lien Indebtedness” shall mean Indebtedness of the Borrower and its Subsidiaries that is secured by a second priority Lien on any asset or Property of the Borrower or any Restricted Subsidiary; provided, that such Indebtedness (i) is subject to an intercreditor agreement in the form of Exhibit J, (ii) has a maturity date that is not earlier than 91 days after the Maturity Date (determined at the time of issuance or incurrence), (iii) is issued at market terms, as certified by an Authorized Officer of the Borrower in good faith and (iv) may not be mandatorily prepaid prior the repayment of the Term Loans (except 

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regularly scheduled amortization payments not to exceed 1% annually of the original principal amount of such Indebtedness); provided, further, that the terms and documentation of such Indebtedness shall be (A) reasonably satisfactory to the Administrative Agent or (B) either (x) not materially more restrictive, taken as a whole, to the Borrower and its Restricted Subsidiaries, than the Credit Documents (or if materially more restrictive, the Lenders receive the benefit of the more restrictive terms which, for the avoidance of doubt, may be provided to the Lenders without consent) or (y) if more restrictive, then such more restrictive terms are only applicable after the Maturity Date, in each case, as certified by an Authorized Officer of the Borrower in good faith.
“Power Assets” shall mean all tangible and intangible property used in connection with the ownership and operation of electric power and cogeneration facilities, including, without limitation, related transmission lines and gas lines.
“PV-9” shall mean, with respect to any Proved Reserves expected to be produced from any Borrowing Base Properties, the net present value, discounted at 9% per annum, of the future net revenues expected to accrue to the Credit Parties’ collective interests in such reserves during the remaining expected economic lives of such reserves, calculated using the Bank Price Deck (provided to the Borrower by the Administrative Agent pursuant to Section 2.14(j)) and, solely with respect to Section 2.14(k), the Strip Price.  The PV-9 attributable to Proved Non-Producing Reserves and Proved Undeveloped Reserves (in the aggregate) shall not exceed 35% of aggregate PV-9.  The PV-9 shall be adjusted to give effect to the Hedge Agreements (or term physical sales contracts) permitted by this Agreement as in effect on the date of such determination.
“Reserve Report” shall mean any report, in form and substance reasonably satisfactory to the Administrative Agent, setting forth, as of each December 31st (or another date in the event of certain Interim Redeterminations or establishing the Borrowing Base after a Borrowing Base Trigger Event) the Proved Reserves and the Proved Developed Reserves attributable to the Borrowing Base Properties of the Borrower and the Credit Parties, together with a projection of the rate of production and future net income, taxes, operating expenses and Capital Expenditures with respect thereto as of such date, based upon the most recent Bank Price Deck provided to the Borrower by the Administrative Agent pursuant to Section 2.14(j) and, solely with respect to Section 2.14(k), the Strip Price; provided that in connection with any Interim Redeterminations of the Borrowing Base pursuant to the last sentence of Section 2.14(b), (i.e., as a result of the Borrower having acquired Oil and Gas Properties with Proved Reserves that are to be Borrowing Base Properties having a PV-9 (calculated at the time of acquisition) in excess of 10% of the Borrowing Base in effect immediately prior to such acquisition), the Borrower shall be required, for purposes of updating the Reserve Report, to set forth only such additional Proved Reserves and related information as are the subject of such acquisition.

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“Second Amendment” shall mean that certain Second Amendment to Credit Agreement, dated as of November 2, 2015, between the Borrower, the Administrative Agent and the Lenders party thereto. 
“Second Amendment Effective Date” shall mean the Effective Date as defined in the Second Amendment.
“UCP” shall mean, with respect to any commercial or standby Letter of Credit, the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600 (or such later version thereof as may be in effect at the time of issuance).
(b)    Clause (m) of the definition of “Permitted Liens” is hereby amended and restated in its entirety to read as follows:
(m)    Liens which arise in the ordinary course of business under operating agreements (including preferential purchase rights, consents to assignment and other restraints on alienation), joint operating agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, farm-in agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements, overriding royalty and royalty agreements, reversionary interests, marketing agreements, processing agreements, net profits agreements, development agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements, salt water or other disposal agreements, seismic or other geophysical permits or agreements, and other agreements that are usual and customary in the oil and gas business and are for claims which are not delinquent or that are being contested in good faith and by appropriate proceedings for which appropriate reserves have been established to the extent required by and in accordance with GAAP; and to the extent the same constitute Liens, Liens on Oil and Gas Properties that arise pursuant to usual and customary dedications of Hydrocarbon production from specified Oil and Gas Properties in favor of a joint venture providing midstream services in connection with the obligation to deliver such Hydrocarbons, if and when produced, for transportation or processing by such joint venture, in each case so long as such Liens do not secure any monetary obligation; provided that any such Lien referred to in this clause does not in the aggregate have a Material Adverse Effect;
(c)    The following defined terms are hereby deleted in their entirety: “Existing Financial Covenants”, “Interim Covenant Period” and “Regular Covenant Period”.
2.2    Amendment to Section 2.14(e).  Section 2.14(e) of the Credit Agreement is hereby amended by adding the following sentence at the end thereof:

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For the avoidance of doubt, no adjustment shall be made to the Borrowing Base in connection with a Disposition of Oil and Gas Properties that are not Borrowing Base Properties (including, for the avoidance of doubt, Midstream Assets and Power Assets).
2.3    Amendment to Section 2.14(f).  The first parenthetical in Section 2.14(f) of the Credit Agreement is hereby amended in its entirety to read as follows: 
(other than (i) Indebtedness constituting Permitted Refinancing Indebtedness up to the original principal amount of the refinanced Indebtedness and (ii) Permitted Second Lien Indebtedness incurred to refinance the Term Loans or the Senior Notes, up to the original principal amount of the refinanced Term Loans or Senior Notes, as applicable).
2.4    Amendment to Section 2.14(k).  Section 2.14(k) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
(k)    Revolving Facility Termination.  If (i) the Revolving Facility has terminated, (ii) a Borrowing Base Trigger Period is continuing, and (iii) JPMorgan Chase Bank, N.A. is no longer the Administrative Agent hereunder, the Borrowing Base will be equal to the amount of (1) 65% of the PV-9 of the Proved Developed Producing Reserves described in the most recent Reserve Report delivered to the Administrative Agent, based on the Strip Price, plus (2) 35% of the  PV-9 of Proved Non-Producing Reserves described in such Reserve Report, based on the Strip Price, plus (3) 25% of the PV-9 of Proved Undeveloped Reserves described in such Reserve Report, based on the Strip Price, plus or minus (4) 65% of the PV-9 of the future receipts expected to be paid to or by the Borrower and its restricted subsidiaries under commodity Hedge Agreements or term physical sales contracts (other than basis differential commodity swap agreements), netted against the Strip Price, plus or minus (5) 65% of the PV-9 of the future receipts expected to be paid to or by the Borrower and its Restricted Subsidiaries under basis differential commodity Hedge Agreements, in each case for the Borrower and its Restricted Subsidiaries.
2.5    Amendment to Section 3.3(c).  Section 3.3(c) of the Credit Agreement is hereby amended in its entirety to read as follows:
(c)    In the event that the Letter of Credit Issuer makes any payment under any Letter of Credit issued by it and the Borrower shall not have repaid such amount in full to the respective Letter of Credit Issuer pursuant to Section 3.4(a), or if any reimbursement payment is required to be refunded to the Borrower, the Letter of Credit Issuer shall promptly notify the Administrative Agent and each L/C Participant of such failure, and each such L/C Participant shall promptly and unconditionally pay to the Administrative Agent for the account of the Letter of Credit Issuer, the amount of such L/C Participant’s Revolving Commitment 

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Percentage of such unreimbursed payment in Dollars and in immediately available funds; provided, however, that the foregoing shall not be construed to excuse the Letter of Credit Issuer for any liability to the Borrower arising from any wrongful payment made by the Letter of Credit Issuer under any such Letter of Credit as a result of acts or omissions constituting willful misconduct or gross negligence on the part of the Letter of Credit Issuer (as determined in a final and non-appealable judgment by a court of competent jurisdiction).  Each L/C Participant shall make available to the Administrative Agent for the account of the Letter of Credit Issuer such L/C Participant’s Revolving Commitment Percentage of the amount of such payment no later than 1:00 p.m. (New York City time) on the first Business Day after the date notified by the Letter of Credit Issuer in immediately available funds.  If and to the extent such L/C Participant shall not have so made its Revolving Commitment Percentage of the amount of such payment available to the Administrative Agent for the account of the Letter of Credit Issuer, such L/C Participant agrees to pay to the Administrative Agent for the account of the Letter of Credit Issuer, forthwith on demand, such amount, together with interest thereon for each day from such date until the date such amount is paid to the Administrative Agent for the account of the Letter of Credit Issuer at a rate per annum equal to the Overnight Rate from time to time then in effect, plus any administrative, processing or similar fees customarily charged by the Letter of Credit Issuer in connection with the foregoing.  The failure of any L/C Participant to make available to the Administrative Agent for the account of the Letter of Credit Issuer its Revolving Commitment Percentage of any payment under any Letter of Credit shall not relieve any other L/C Participant of its obligation hereunder to make available to the Administrative Agent for the account of the Letter of Credit Issuer its Revolving Commitment Percentage of any payment under such Letter of Credit on the date required, as specified above, but no L/C Participant shall be responsible for the failure of any other L/C Participant to make available to the Administrative Agent such other L/C Participant’s Revolving Commitment Percentage of any such payment
2.6    Amendment to Section 3.3(e).  The paragraph appearing immediately after Section 3.3(e) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
provided, however, that the foregoing shall not be construed to excuse the Letter of Credit Issuer for any liability to the Borrower arising from any wrongful payment made by the Letter of Credit Issuer under a Letter of Credit as a result of acts or omissions constituting willful misconduct or gross negligence on the part of the Letter of Credit Issuer (as determined in a final and non-appealable judgment by a court of competent jurisdiction). 
2.7    Amendment to Section 3.4(b).  Section 3.4(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

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(b)     The obligations of the Borrower under this Section 3.4 to reimburse the Letter of Credit Issuer with respect to Unpaid Drawings (including, in each case, interest thereon) shall be absolute and unconditional under any and all circumstances and irrespective of any set-off, counterclaim or defense to payment that the Borrower or any other Person may have or have had against the Letter of Credit Issuer, the Administrative Agent or any Lender (including in its capacity as an L/C Participant), including any defense based upon the failure of any drawing under a Letter of Credit (each a “Drawing”) to conform to the terms of the Letter of Credit or any non-application or misapplication by the beneficiary of the proceeds of such Drawing; provided that the foregoing shall not be construed to excuse the Letter of Credit Issuer for any liability to the Borrower for wrongful payment made by the Letter of Credit Issuer under the Letter of Credit issued by it as a result of acts or omissions constituting willful misconduct or gross negligence on the part of the Letter of Credit Issuer (as determined in a final and non-appealable judgment by a court of competent jurisdiction).
2.8    Amendment to Section 3.9.  Section 3.9 of the Credit Agreement is hereby amended in its entirety to read as follows: 
3.9 Applicability of ISP and UCP.  Unless otherwise expressly agreed by the Letter of Credit Issuer and the Borrower when a Letter of Credit is issued, (a) the rules of the ISP shall apply to each standby Letter of Credit and (b) the rules of the UCP, as most recently published by the International Chamber of Commerce at the time of issuance, shall apply to each commercial Letter of Credit and, on an exception basis to a standby Letter of Credit, as may be required by local law or statute.
2.9    Amendment to Section 5.2.  Section 5.2 of the Credit Agreement is hereby amended by (a) deleting Subsection 5.2(d) in its entirety and adding the following as new Subsection 5.2(d); (b) adding the following new Subsection 5.2(e) after the current Subsection 5.2(d) and (c) renumbering the current Subsections 5.2(e) (together with the paragraph appearing immediately thereafter) and 5.2(f) as, respectively, Subsections 5.2(f) and 5.2(g):
(d)     Application of Excess Cash.  If, as of any date of determination, the Consolidated Cash Balance exceeds $250,000,000, the Borrower shall on the next Business Day prepay (i) any then-outstanding Swingline Loans and (ii) after all Swingline Loans have been paid in full, any then-outstanding Revolving Loans, in an aggregate principal amount equal to the lesser of (A) such excess and (B) the sum of the then-outstanding Swingline Loans plus Revolving Loans.
(e)     Repayment of Loans Following Disposition of Non-Borrowing Base Properties.  If the Borrower or any one of the other Credit Parties Disposes of Oil and Gas Properties or Disposes of any Stock or Stock Equivalents in any Restricted Subsidiary owning Oil and Gas Properties, and such Disposition does not involve Borrowing Base Properties, the Borrower 

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shall, on the next Business Day, prepay the Term Loans in an aggregate principal amount equal to the lesser of (A) 50% of the Net Cash Proceeds obtained from such Disposition and (B) the sum of the then-outstanding Term Loans.  
2.10    Amendment to Section 5.4(i).  Section 5.4(i) of the Credit Agreement is hereby amended by adding the following sentence at the end thereof: 
For purposes of determining withholding Taxes imposed under FATCA, from and after the effective date of the Second Amendment, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Loans as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).
2.11    Amendment to Section 10.10(d).  The last sentence of Section 10.10(d) is hereby amended in its entirety to read as follows:
Notwithstanding the foregoing, Borrower will not be required to take any action to perfect a Lien on any of its or the Subsidiaries’ personal property unless perfection may be accomplished by (A) the filing of a Uniform Commercial Code financing statement in Borrower’s or a Subsidiary’s respective jurisdiction of formation or in the case of as-extracted collateral and goods that are or are to become fixtures or collateral in connection with a Mortgage, the filing of a financing statement filed as a fixture filing or as a financing statement covering such property in the county in which such collateral or fixtures are located, (B) delivery of certificates representing pledged Stock or Stock Equivalents consisting of certificated securities together with appropriate endorsements or transfer powers, (C) granting the Administrative Agent “control” (within the meaning of the relevant Uniform Commercial Code) over any pledged Stock or Stock Equivalents consisting of uncertificated securities and (D) granting the Administrative Agent “control” (within the meaning of the relevant Uniform Commercial Code) over any Deposit Accounts (other than Excluded Deposit Accounts) by entering into a deposit account control agreement with the Administrative Agent and the account bank for such Deposit Account.
2.12    Amendment to Section 10.13(b).  Section 10.13(b) of the Credit Agreement is hereby amended in its entirety to read as follows:
(b) Upon a Borrowing Base Trigger Event or in the event of an Interim Redetermination, the Borrower shall furnish to the Administrative Agent a Reserve Report prepared by one or more Approved Petroleum Engineers or by or under the supervision of the chief engineer of the Borrower or by the Borrower.  For any Interim Redetermination pursuant to Section 2.14(b) or any determination of the Borrowing Base upon a Borrowing Base Trigger Event pursuant to Section 2.14(l), the Borrower shall provide such Reserve Report as soon as possible, but in any event (i) no later than ninety (90) days following the receipt of such a request occurring on or prior 

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to December 31, 2015 and (ii) no later than sixty (60) days following the receipt of such a request occurring after December 31, 2015, in each case with an “as of” date as of the most recent month ending prior to the request; provided that the Reserve Report delivered in connection with the Borrowing Base Trigger Event occurring immediately prior to the Second Amendment shall have an “as of” date of October 1, 2015. 
2.13    Amendments to Section 11.1.  Section 11.1 of the Credit Agreement is hereby amended by adding the word “and” to the end of subclause (y), deleting the period at the end of subclause (y), amending and restating subclause (x) as set forth below and adding the following as subclause (z):
(x)    during a Borrowing Base Trigger Period, other Indebtedness so long as (i) the aggregate principal amount of such Indebtedness at the time of the incurrence thereof and after giving pro forma effect thereto and the use of proceeds thereof, does not exceed the greater of $200,000,000 and 1.50% of Consolidated Total Assets (measured, in each case, as of the date such Indebtedness is incurred based upon the financial statements most recently available prior to such date) and (ii) after giving pro forma effect thereto, the Borrower is in pro forma compliance with the Financial Performance Covenants set forth in Section 11.11; 
(z)    Permitted Second Lien Indebtedness and any Permitted Refinancing Indebtedness issued or incurred to refinance such Indebtedness not to exceed, at any time, $2,250,000,000; provided that as of the time of the issuance or incurrence thereof and after giving pro forma effect thereto and to the use of proceeds thereof, (i) no Event of Default has occurred and is continuing, (ii) the Borrower is in pro forma compliance with the Financial Performance Covenants set forth in Section 11.11 and (iii) the proceeds thereof are issued or incurred to prepay, repurchase, redeem or defease (A) the Term Loans simultaneously with the issuance or incurrence of such Indebtedness or (B) the Senior Notes or Permitted Additional Debt, so long as, with respect to this clause (B), (I) Liquidity is equal to $750,000,000 or greater and (II) the aggregate increase in the Consolidated Interest Charges resulting from transactions consummated pursuant to this clause (B) from the Second Amendment Effective Date to the date of such issuance or incurrence does not exceed $34,000,000.
2.14    Amendment to Section 11.2.  
(a)    Section 11.2 of the Credit Agreement is hereby amended by adding the words “during a Borrowing Base Trigger Period,” (i) to clause (e) thereof immediately before the first instance of the phrase “(f)” and (ii) at the beginning of clause (h) thereof.
(b)    Section 11.2 of the Credit Agreement is hereby amended by deleting the existing subclause (y) and adding the following as new subclause (y) and subclause (z):

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(y)     during a Borrowing Base Trigger Period, Liens securing Indebtedness issued or incurred under Section 11.1(z); provided that such Liens are subordinated to the Liens securing the Obligations pursuant to an intercreditor agreement in the form of Exhibit J; and
(z)     during a Borrowing Base Trigger Period, additional Liens on property not constituting Borrowing Base Properties, so long as (i) the aggregate principal amount of the obligations secured thereby at the time of the incurrence thereof and after giving pro forma effect thereto and the use of proceeds thereof, does not exceed the greater of $200,000,000 and 1.50% of Consolidated Total Assets (measured, in each case, as of the date such Lien or the obligations secured is incurred based upon the financial statements most recently available prior to such date) and (ii) after giving pro forma effect thereto the Borrower is in pro forma compliance with the Financial Performance Covenants set forth in Section 11.11(measured based on the financial statements most recently delivered prior to such date).
2.15    Amendment to Section 11.6(h).  Section 11.6(h) of the Credit Agreement is hereby amended in its entirety to read as follows:
(h)     during any Borrowing Base Trigger Period, if, after giving pro forma effect thereto, (i) no Event of Default shall have occurred and be continuing, and (ii) Available Revolving Commitment is not less than 10% of the then effective Revolving Loan Limit (on a pro forma basis after giving effect to such Restricted Payment), the Borrower may make, declare and pay additional Restricted Payments in an aggregate amount not to exceed $20,000,000 per calendar year, in cash or otherwise to the holders of its Stock and Stock Equivalents; provided, that, in the case of any Restricted Payment in the form of assets other than cash, no such Restricted Payment shall be made if a Borrowing Base Deficiency would result from an adjustment to the Borrowing Base resulting from such Restricted Payment (unless the Borrower shall have cash on hand sufficient to eliminate any such potential Borrowing Base Deficiency);
2.16    Amendment to Section 11.7(a).  Section 11.7(a) of the Credit Agreement is hereby amended in its entirety to read as follows:
(a)    The Borrower will not, and will not permit any Restricted Subsidiary to, optionally prepay, repurchase or redeem or otherwise defease the Senior Notes, any Permitted Second Lien Indebtedness or any Permitted Additional Debt (it being understood that payments of regularly scheduled cash interest in respect of, and payment of principal on the scheduled maturity date of, the Senior Notes, Permitted Second Lien Indebtedness (only to the extent permitted under the definition thereof) or Permitted Additional Debt shall be permitted); provided, that:

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(i) the Borrower or any Subsidiary may optionally prepay, repurchase, redeem or defease the Senior Notes or any Permitted Additional Debt in an amount not to exceed the sum of (a) $150,000,000, plus (b) the amount equal to 50% of the Net Cash Proceeds obtained from any Disposition pursuant to Section 11.4(a)(xiii); so long as (A) the principal amount of such Senior Notes or Permitted Additional Debt is prepaid, repurchased, redeemed or defeased at a discount of 30% or greater (calculated for each prepayment, repurchase, redemption or defeasance on a weighted average basis giving effect (in addition to the discount in such prepayment, repurchase, redemption or defeasance) to any prior discount in prepayments, repurchases, redemptions or defeasances that have occurred from the first day of the calendar quarter in which such prepayment, repurchase, redemption or defeasance is consummated to the date such prepayment, repurchase, redemption or defeasance is consummated) and (B) after giving pro forma effect to such prepayment, repurchase, redemption or defeasance, (1) Liquidity is equal to $750,000,000 or greater, (2) no Event of Default has occurred and is continuing and (3) after giving pro forma effect to such prepayment, repurchase, redemption or defeasance, the Borrower is in pro forma compliance with the Financial Performance Covenants set forth in Section 11.11; 
(ii) the Borrower or any Subsidiary may (A) optionally prepay, repurchase, redeem or defease the Senior Notes or any Permitted Additional Debt with the Net Cash Proceeds of Permitted Second Lien Indebtedness in an amount not to exceed the positive difference (if any) between (1) the aggregate amount of Net Cash Proceeds of Permitted Second Lien Indebtedness issued at any time after the Second Amendment Effective Date to the date of such prepayment, repurchase, redemption or defeasance and (2) the aggregate amount of the Net Cash Proceeds used to prepay, repurchase, redeem or defease such Senior Notes or Permitted Additional Debt pursuant to this Section 11.7(a)(ii) during such period, (B) exchange the Senior Notes or any Permitted Additional Debt for Permitted Second Lien Indebtedness issued in connection with such exchange or (C) exchange the Senior Notes or any Permitted Additional Debt for Permitted Second Lien Indebtedness issued in connection with such exchange and Net Cash Proceeds of Permitted Second Lien Indebtedness (in the case of such Net Cash Proceeds not to exceed the amount specified in clause (A) above); provided that, in each case after giving pro forma effect to such prepayment, repurchase, redemption, defeasance or exchange (1) Liquidity is equal to $750,000,000 or greater, (2) no Event of Default has occurred and is continuing, (3) the aggregate increase in the Consolidated Interest Charges resulting from transactions consummated pursuant to this Section 11.7(a)(ii) (including such prepayment, repurchase, redemption, defeasance or exchange) from the Second Amendment Effective Date to the date of such prepayment, repurchase, redemption, defeasance or 

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exchange does not exceed $34,000,000 and (4) after giving pro forma effect to such prepayment, repurchase, redemption or defeasance, the Borrower is in pro forma compliance with the Financial Performance Covenants set forth in Section 11.11; 
2.17    Amendment to Section 11.11.  Section 11.11 of the Credit Agreement is hereby amended in its entirety to read as follows:
Section 11.11    Financial Performance Covenants.  
		
	(a)
	Leverage Ratio.

		
	(A)
	During a Borrowing Base Trigger Period, the Borrower will not permit the First Lien Senior Secured Leverage Ratio as of the last day of each fiscal quarter of the Borrower to be greater than 2.25 to 1:00.

		
	(B)
	During an Investment Grade Period, the Borrower will not permit the Leverage Ratio as of the last day of each fiscal quarter of the Borrower to be greater than 4.50 to 1.00. 

		
	(b)
	Interest Expense Ratio.  

		
	(A)
	During a Borrowing Base Trigger Period, the Borrower will not permit the Interest Expense Ratio as of the last day of each fiscal quarter of the Borrower to be less than 2.00 to 1.00.  

		
	(B)
	During an Investment Grade Period, the Borrower will not permit the Interest Expense Ratio as of the last day of each fiscal quarter of the Borrower to be less than 2.50 to 1.00.

		
	(c)
	Asset Coverage Ratio.  As of the last day of each fiscal quarter of the Borrower (other than during a Borrowing Base Trigger Period when a Borrowing Base has been established), the Borrower will not permit the Asset Coverage Ratio to be less than the ratio applicable to such fiscal quarter set forth below:

	
		
	Fiscal Quarter Ending
	Asset Coverage Ratio

	March 31, 2015 through December 31, 2016
	1.05 to 1.00

	Thereafter
	1.50 to 1.00

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2.18    Amendment to Section 13.12.  Section 13.12 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
13.12    Security Documents and Guarantee.  Each Secured Party hereby further authorizes the Administrative Agent, on behalf of and for the benefit of Secured Parties, to be the agent for and representative of the Secured Parties with respect to the Collateral and the Security Documents.  Subject to Section 14.1, without further written consent or authorization from any Secured Party, the Administrative Agent may (a) execute any documents or instruments necessary in connection with a Disposition of assets permitted by this Agreement, (b) release any Lien encumbering any item of Collateral that is the subject of such Disposition of assets or with respect to which Majority Lenders (or such other Lenders as may be required to give such consent under Section 14.1) have otherwise consented, (c) release any Guarantor from the Guarantee with respect to which Majority Lenders (or such other Lenders as may be required to give such consent under Section 14.1) have otherwise consented or (d) enter into an intercreditor agreement in the form of Exhibit J.
2.19    Amendments to Schedules.  Schedule 14.2 of the Credit Agreement is hereby amended by deleting such Schedule in its entirety and replacing it with Schedule 14.2 attached hereto.
2.20    Amendments to Exhibits.  The attached Exhibit J is hereby added to the Credit Agreement as Exhibit J.
Section 3.    Borrowing Base.  On the Effective Date, the Borrowing Base shall be equal to $3,000,000,000, which Borrowing Base shall remain in effect until the First Scheduled Redetermination Date, the next Scheduled Redetermination Date, the next Interim Redetermination Date or the next adjustment to the Borrowing Base under Section 2.14(e), Section 2.14(f), Section 2.14(g) or Section 2.14(l) of the Credit Agreement, whichever occurs first.  This Section 3 constitutes (a) notice of the redetermined Borrowing Base in accordance with Section 2.14(d) of the Credit Agreement and (b) acknowledgement by the Required Revolving Lenders that they have approved the redetermined Borrowing Base consistent with each such Lender’s usual and customary oil and gas lending criteria as they currently exist as provided in Section 2.14(c)(iii) of the Credit Agreement.
Section 4.    Effectiveness.  
4.1    This Amendment shall become effective on the first date on which each of the conditions set forth in this Section 4.1 is satisfied (the “Effective Date”):
(a)    The Administrative Agent shall have received duly executed counterparts (in such number as may be requested by the Administrative Agent) of this Amendment from the Borrower, each Guarantor, the Majority Lenders and the Required Revolving Lenders.

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(b)    The Borrower shall have paid all fees and other amounts due and payable on or prior to the Effective Date to the extent invoiced, including all reasonable out-of-pocket expenses required to be reimbursed or paid by the Borrower under the Credit Agreement.
(c)    No Default or Event of Default shall have occurred and be continuing as of the date hereof, after giving effect to the terms of this Amendment.
Section 5.    Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
Section 6.    Miscellaneous.  
6.1    (a) On and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in each other Credit Document to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as amended or otherwise modified by this Amendment; (b) the execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any default of the Borrower or any right, power or remedy of the Administrative Agent or the Lenders under any of the Credit Documents, nor constitute a waiver of any provision of any of the Credit Documents; (c) this Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Agreement by signing any such counterpart; and (d) delivery of an executed counterpart of a signature page to this Amendment by telecopier or electronic mail shall be effective as delivery of a manually executed counterpart of this Amendment.
6.2    Neither the execution by the Administrative Agent or the Lenders of this Amendment, nor any other act or omission by the Administrative Agent or the Lenders or their officers in connection herewith, shall be deemed a waiver by the Administrative Agent or the Lenders of any defaults which may exist or which may occur in the future under the Credit Agreement and/or the other Credit Documents, or any future defaults of the same provision waived hereunder (collectively “Violations”).  Similarly, nothing contained in this Amendment shall directly or indirectly in any way whatsoever either: (a) impair, prejudice or otherwise adversely affect the Administrative Agent’s or the Lenders’ right at any time to exercise any right, privilege or remedy in connection with the Credit Documents with respect to any Violations; (b) amend or alter any provision of the Credit Agreement, the other Credit Documents, or any other contract or instrument; or (c) constitute any course of dealing or other basis for altering any obligation of the Borrower or any right, privilege or remedy of the Administrative Agent or the Lenders under the Credit Agreement, the other Credit Documents, or any other contract or instrument.  Nothing in this letter shall be construed to be a consent by the Administrative Agent or the Lenders to any Violations.
6.3    The Borrower and each Guarantor hereby (a) acknowledges the terms of this Amendment; (b) ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Credit Document to which it is a party and agrees that each Credit Document to which it is a party remains in full force and effect, except as expressly amended or modified hereby; and (c) represents and warrants to the Lenders that as of the Effective Date, after 

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giving effect to the terms of this Amendment: (i) all of the representations and warranties contained in each Credit Document to which it is a party are true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty shall be true and correct), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty shall be true and correct) as of such specified earlier date, and (ii) no Default or Event of Default has occurred and is continuing.
6.4    This Amendment is a Credit Document as defined and described in the Credit Agreement and all of the terms and provisions of the Credit Agreement relating to Credit Documents shall apply hereto.
6.5      THE CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS, INCLUDING THIS AMENDMENT, EMBODY THE ENTIRE AGREEMENT AND UNDERSTANDING BETWEEN THE PARTIES AND SUPERSEDE ALL OTHER AGREEMENTS AND UNDERSTANDINGS BETWEEN SUCH PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their officers thereunto duly authorized as of the date first above written.
	
		
	BORROWER:
	CALIFORNIA RESOURCES CORPORATION

	 
	 

	 
	 

	 
	By:   /s/ Marshall D. Smith

	 
	Name:   Marshall D. Smith

	 
	Title:   Senior Executive Vice President and Chief Financial Officer

	 
	 

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
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	GUARANTORS:
	CALIFORNIA HEAVY OIL, INC.

	 
	CALIFORNIA RESOURCES PETROLEUM COPORATION

	 
	CALIFORNIA RESOURCES PRODUCTION CORPORATION

	 
	SOUTHERN SAN JOAQUIN PRODUCTION, INC.

	 
	THUMS LONG BEACH COMPANY

	 
	CALIFORNIA RESOURCES WILMINGTON, LLC

	 
	CALIFORNIA RESOURCES ELK HILLS, LLC

	 
	CRC SERVICES, LLC

	 
	SOCAL HOLDING, LLC

	 
	CRC CONSTRUCTION SERVICES, LLC

	 
	 

	 
	 

	 
	By:   /s/ Michael L. Preston

	 
	Name:   Michael L. Preston 

	 
	Title:   Executive Vice President, General Counsel and Corporate Secretary

	 
	 

	 
	CRC MARKETING, INC.

	 
	 

	 
	By:   /s/ D. Adam Smith

	 
	Name:   D. Adam Smith

	 
	Title:   Assistant Secretary

	 
	 

	 
	TIDELANDS OIL PRODUCTION COMPANY

	 
	 

	 
	By:   /s/ Michael L. Preston

	 
	Name: Michael L. Preston

	 
	Title:   Executive Vice President, General Counsel and Corporate Secretary of California Resources Tidelands, Inc., Its Managing Partner

	 
	 

	 
	CALIFORNIA RESOURCES LONG BEACH, INC.

	 
	CALIFORNIA RESOURCES TIDELANDS, INC.

	 
	 

	 
	By:   /s/ Michael L. Preston

	 
	Name: Michael L. Preston

	 
	Title: Vice President, General Counsel and Corporate Secretary

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
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	ELK HILLS POWER, LLC

	 
	 

	 
	By:   /s/ Micky Nelson

	 
	Name: Micky Nelson

	 
	Title: Vice President

	 
	 

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	JPMORGAN CHASE BANK, N.A., as Administrative Agent, Letter of Credit Issuer, Swingline Lender, Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:   /s/ Dave Katz

	 
	Name:  Dave Katz

	 
	Title:  Executive Director

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	BANK OF AMERICA, N.A., as Syndication Agent, Letter of Credit Issuer, Swingline Lender, Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:  /s/ Bryan Heller 

	 
	Name:  Bryan Heller

	 
	Title:   Director

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	CITIBANK, N.A., as Letter of Credit Issuer, Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:  /s/ Phil Ballard

	 
	Name:  Phil Ballard

	 
	Title: Managing Director

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Letter of Credit Issuer, Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By: /s/ Michael A. Tribolet 

	 
	Name:  Michael A. Tribolet

	 
	Title:  Managing Director

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
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	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Stephen W. Warfel 

	 
	Name:      Stephen W. Warfel

	 
	Title:      Managing Director

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	U.S. BANK NATIONAL ASSOCIATION, as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Elizabeth C. Hengeveld

	 
	Name:      Elizabeth C. Hengeveld

	 
	Title:      Senior Vice President

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	MORGAN STANLEY BANK, N.A., as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Dmitriy Barskiy

	 
	Name:      Dmitriy Barskiy

	 
	Title:      Authorized Signatory

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	HSBC BANK USA, NA, as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Steven Smith

	 
	Name:      Steven Smith

	 
	Title:      Director

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	GOLDMAN SACHS BANK USA, as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Jerry Li

	 
	Name:      Jerry Li

	 
	Title:      Authorized Signatory

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	COMPASS BANK, as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Susana Campuzano

	 
	Name:      Susana Campuzano

	 
	Title:      Senior Vice President

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	MIZUHO BANK, LTD., as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Leon Mo

	 
	Name:      Leon Mo

	 
	Title:      Authorized Signatory

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	BANK OF NOVA SCOTIA, as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Mark Sparrow

	 
	Name:      Mark Sparrow

	 
	Title:      Director

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	SOCIÉTÉ GÉNÉRALE, as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Diego Medina

	 
	Name:      Diego Medina

	 
	Title:      Director

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	PNC BANK, NATIONAL ASSOCIATION, as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Sandra Aultman

	 
	Name:      Sandra Aultman

	 
	Title:      Managing Director

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	BRANCH BANKING AND TRUST COMPANY, as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ James Giordano

	 
	Name:      James Giordano

	 
	Title:      Senior Vice President

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	DNB CAPITAL LLC, as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ James Grubb

	 
	Name:      James Grubb

	 
	Title:      Vice President

	 
	 

	 
	By:      /s/ Asulv Tveit

	 
	Name:      Asulv Tveit

	 
	Title:      First Vice President

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	THE BANK OF NEW YORK MELLON, as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Mark W. Rogers

	 
	Name:      Mark W. Rogers

	 
	Title:      Vice President

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	SUMITOMO MITSUI BANKING CORPORATION, as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Ryo Suzuki

	 
	Name:      Ryo Suzuki

	 
	Title:      General Manager

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
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	INTESA SANPAOLO S.P.A., as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ Neil Derfler

	 
	Name:      Neil Derfler

	 
	Title:      Vice President

	 
	 

	 
	By:      /s/ Francesco DiMario

	 
	Name:      Francesco DiMario

	 
	Title:      FVP. Credit Manager

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
Active.18106573.29

            

	
		
	 
	KEYBANK NATIONAL ASSOCIATION, as Revolving Lender and Term Loan Lender

	 
	 

	 
	 

	 
	By:      /s/ John Dravenstott

	 
	Name:      John Dravenstott

	 
	Title:      Vice President

Signature Page
CALIFORNIA RESOURCES CORPORATION – Second Amendment
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Schedule 14.2
Notice Addresses
	
		
	Entity
	Notice Address/Information

	Administrative Agent
	JPMorgan Chase Bank, N.A.
Mail Code FL3-2414
10410 Highland Manor Drive, Floor 4
Tampa, FL 33610-9128

	Borrower
	California Resources Corporation
27200 Tourney Road
Santa Clarita, CA 91355

Attention: Michael Preston
Phone: 818.661.3702
Email: michael.preston@crc.com

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Exhibit J

INTERCREDITOR AGREEMENT 
 
dated as of [_______], 201[_] between 
 
JPMORGAN CHASE BANK, N.A., 
 as Priority Lien Agent, 
 
and 
 
[______________________], 
as Second Lien Collateral Agent

THIS IS THE INTERCREDITOR AGREEMENT REFERRED TO IN (A) THE [INDENTURE/SECOND LIEN CREDIT AGREEMENT] DATED AS OF [______], 201[_], AMONG CALIFORNIA RESOURCES CORPORATION, CERTAIN OF ITS SUBSIDIARIES FROM TIME TO TIME PARTY THERETO AND [_________________], AS SECOND LIEN COLLATERAL AGENT, (B) THE FIRST LIEN CREDIT AGREEMENT DATED AS OF SEPTEMBER 24, 2014, AS AMENDED, SUPPLEMENTED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME, AMONG CALIFORNIA RESOURCES CORPORATION, THE LENDERS PARTY THERETO FROM TIME TO TIME AND JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT, (C) THE OTHER NOTE DOCUMENTS REFERRED TO IN SUCH [INDENTURE/SECOND LIEN CREDIT AGREEMENT] AND (D) THE OTHER LOAN DOCUMENTS REFERRED TO IN SUCH FIRST LIEN CREDIT AGREEMENT.

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TABLE OF CONTENTS
	
					
	 
	 
	 
	Page
	

	 
	 
	ARTICLE I 
	 

	 
	 
	DEFINITIONS
	 

	 
	 
	 
	 

	Section 1.01
	 
	Construction; Certain Defined Terms
	1
	

	 
	 
	 
	 

	 
	 
	ARTICLE II
	 

	 
	 
	LIEN PRIORITIES
	 

	Section 2.01
	 
	Relative Priorities
	10
	

	Section 2.02
	 
	Prohibition on Marshalling, Etc
	11
	

	Section 2.03
	 
	No New Liens
	11
	

	Section 2.04
	 
	Similar Collateral and Agreements
	12
	

	Section 2.05
	 
	No Duties of Priority Lien Agent
	12
	

	 
	 
	 
	 

	 
	 
	ARTICLE III
	 

	 
	 
	ENFORCEMENT RIGHTS; PURCHASE OPTION
	 

	Section 3.01
	 
	Limitation on Enforcement Action
	13
	

	Section 3.02
	 
	Standstill Period; Permitted Enforcement Action
	13
	

	Section 3.03
	 
	Insurance
	14
	

	Section 3.04
	 
	Notification of Release of Collateral
	14
	

	Section 3.05
	 
	No Interference; Payment Over
	15
	

	Section 3.06
	 
	Purchase Option
	16
	

	 
	 
	 
	 

	 
	 
	ARTICLE IV
	 

	 
	 
	OTHER AGREEMENTS
	 

	Section 4.01
	 
	Release of Liens; Automatic Release of Second Liens
	18
	

	Section 4.02
	 
	Certain Agreements With Respect to Insolvency or Liquidation Proceedings
	18
	

	Section 4.03
	 
	Reinstatement
	21
	

	Section 4.04
	 
	Refinancings
	22
	

	Section 4.05
	 
	Amendments to Second Lien Documents
	22
	

	Section 4.06
	 
	Legends
	23
	

	Section 4.07
	 
	Second Lien Secured Parties Rights as Unsecured Creditors; Judgment Lien Creditor
	23
	

	Section 4.08
	 
	Postponement of Subrogation
	23
	

	Section 4.09
	 
	Acknowledgment by the Secured Debt Representatives
	23
	

	 
	 
	 
	 

	 
	 
	ARTICLE V 
	 

	 
	 
	GRATUITOUS BAILMENT FOR PERFECTION OF CERTAIN SECURITY INTERESTS
	 

	Section 5.01
	 
	General
	24
	

	Section 5.02
	 
	Deposit Accounts
	24
	

	 
	 
	 
	 

	 
	 
	ARTICLE VI
	 

	 
	 
	APPLICATION OF PROCEEDS; DETERMINATION OF AMOUNTS
	 

	Section 6.01
	 
	Application of Proceeds
	24
	

	Section 6.02
	 
	Determination of Amounts
	25
	

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	ARTICLE VII
	 

	 
	 
	NO RELIANCE; NO LIABILITY; OBLIGATIONS ABSOLUTE; 
CONSENT OF GRANTORS; ETC.
	 

	Section 7.01
	 
	No Reliance; Information
	25
	

	Section 7.02
	 
	No Warranties or Liability
	25
	

	Section 7.03
	 
	Obligations Absolute
	26
	

	Section 7.04
	 
	Grantors Consent
	27
	

	 
	 
	 
	 

	 
	 
	ARTICLE VIII
	 

	 
	 
	REPRESENTATIONS AND WARRANTIES
	 

	Section 8.01
	 
	Representations and Warranties of Each Party
	27
	

	Section 8.02
	 
	Representations and Warranties of Each Representative
	27
	

	 
	 
	 
	 

	 
	 
	ARTICLE IX
	 

	 
	 
	MISCELLANEOUS
	 

	Section 9.01
	 
	Notices
	27
	

	Section 9.02
	 
	Waivers; Amendment
	28
	

	Section 9.03
	 
	Actions Upon Breach; Specific Performance
	28
	

	Section 9.04
	 
	Parties in Interest
	29
	

	Section 9.05
	 
	Survival of Agreement
	29
	

	Section 9.06
	 
	Counterparts
	29
	

	Section 9.07
	 
	Severability
	29
	

	Section 9.08
	 
	Governing Law; Jurisdiction; Consent to Service of Process
	29
	

	Section 9.09
	 
	WAIVER OF JURY TRIAL
	30
	

	Section 9.10
	 
	Headings
	30
	

	Section 9.11
	 
	Conflicts
	30
	

	Section 9.12
	 
	Provisions Solely to Define Relative Rights
	30
	

	Section 9.13
	 
	Certain Terms Concerning the Second Lien Agent
	30
	

	Section 9.14
	 
	Certain Terms Concerning the Priority Lien Agent and the Second Lien Agent
	31
	

	Section 9.15
	 
	Authorization of Secured Agents
	31
	

	Section 9.16
	 
	Further Assurances
	31
	

	Section 9.17
	 
	Relationship of Secured Parties
	31
	

Annex and Exhibits
	
		
	Annex I
	 

	 
	 

	Exhibit A
	Form of Priority Confirmation Joinder

	Exhibit B
	Security Documents

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INTERCREDITOR AGREEMENT, dated as of [________], 201[_] (as amended, supplemented or otherwise modified from time to time in accordance with the terms hereof, this “Agreement”), between JPMORGAN CHASE BANK, N.A., as administrative agent for the Priority Lien Secured Parties referred to herein (in such capacity, and together with its successors and assigns in such capacity, the “Original Priority Lien Agent”) and [_______________], as [administrative agent/collateral agent/collateral trustee for the Second Lien Secured Parties referred to herein (in such capacity, and together with its successors in such capacity, the “Second Lien Collateral Agent”) and acknowledged and agreed by California Resources Corporation, a Delaware corporation (the “Borrower”) and the other Grantors party hereto.
WHEREAS, the Borrower, the Original Priority Lien Agent, as administrative agent, and the lenders party thereto from time to time, entered into that certain First Lien Credit Agreement dated as of September 24, 2014 providing for a revolving credit facility of up to $[___] million and a term credit facility up to $[___] million (as amended, restated, supplemented, modified or Refinanced from time to time in accordance with the terms of this Agreement, the “Priority Credit Agreement”);
WHEREAS, the Borrower, certain subsidiaries of the Borrower and the Original Second Lien Agent are entering into that certain [Indenture/Second Lien Credit Agreement] dated as of even date herewith providing for up to $[____] million of [Second Lien Indenture Notes/Second Lien Term Loans] (as amended, restated, supplemented, modified or Refinanced from time to time in accordance with the terms of this Agreement, the “Original Second Lien Agreement”);
WHEREAS, the Priority Lien Obligations will be secured by the Collateral pursuant to the terms of the Priority Lien Documents;
WHEREAS, the Second Lien Obligations will be secured by the Collateral pursuant to the terms of the Second Lien Documents;
WHEREAS, the Priority Lien Documents and the Second Lien Documents provide, among other things, that the parties thereto shall set forth in this Agreement their respective rights and remedies with respect to the Collateral; and
WHEREAS, in order to induce the Priority Lien Agent and the other Priority Lien Secured Parties to consent to the incurring of the Second Lien Obligations and to induce the Priority Lien Secured Parties to continue to extend credit and other financial accommodations and lend monies to or for the benefit of the Borrower, the Second Lien Collateral Agent on behalf of the Second Lien Secured Parties, has agreed to the Lien subordination and other provisions set forth in this Agreement.
NOW THEREFORE, in consideration of the foregoing, the mutual agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Priority Lien Agent (for itself and on behalf of the Priority Lien Secured Parties) and the Second Lien Collateral Agent (for itself and on behalf of the Second Lien Secured Parties) agree as follows:
ARTICLE IDEFINITIONS
Section 1.01    Construction; Certain Defined Terms.  (a) The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, 

            

(i) any reference herein to any agreement, instrument, other document, statute or regulation shall be construed as referring to such agreement, instrument, other document, statute or regulation as from time to time amended, supplemented or otherwise modified, (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, but shall not be deemed to include the subsidiaries of such Person unless express reference is made to such subsidiaries, (iii) the words “herein,” “hereof and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (iv) all references herein to Articles, Sections and Annexes shall be construed to refer to Articles, Sections and Annexes of this Agreement, (v) unless otherwise expressly qualified herein, the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights and (vi) the term “or” is not exclusive.
(b)    All terms used in this Agreement that are defined in Article 1, 8 or 9 of the New York UCC (whether capitalized herein or not) and not otherwise defined herein have the meanings assigned to them in Article 1, 8 or 9 of the New York UCC.  If a term is defined in Article 9 of the New York UCC and another Article of the UCC, such term shall have the meaning assigned to it in Article 9 of the New York UCC.
(c)    Unless otherwise indicated, capitalized terms used but not defined herein shall have the meaning given to such terms in the Priority Credit Agreement as in effect on the date hereof or as amended in accordance with this Agreement.
(d)    As used in this Agreement, the following terms have the meanings specified below:
“Accounts” has the meaning assigned to such term in Section 3.01(a).
“Additional Second Lien Credit Facility” means any credit agreement, indenture, note or other definitive loan agreement governing Indebtedness for which the requirements of Section 4.04(b) of this Agreement have been satisfied, as amended, restated, modified, renewed, refunded, restated, restructured, increased, supplemented, replaced or refinanced in whole or in part from time to time in accordance with each applicable Secured Debt Document; provided that neither the Original Second Lien Agreement nor any Second Lien Substitute Facility shall constitute an Additional Second Lien Credit Facility at any time.
“Additional Second Lien Documents” means the Additional Second Lien Credit Facility and the Additional Second Lien Security Documents.
“Additional Second Lien Obligations” means, with respect to any Grantor, any obligations of such Grantor owed to any Additional Second Lien Secured Party (or any of its Affiliates) in respect of the Additional Second Lien Documents.
“Additional Second Lien Secured Parties” means, at any time, the Second Lien Collateral Agent, the trustee, agent or other representative of the holders of any Series of Second Lien Debt who maintains the transfer register for such Series of Second Lien Debt (other than the Original Second Lien Credit Facility), the beneficiaries of each indemnification obligation undertaken by any Grantor under any Additional Second Lien Document and each other holder of, or obligee in respect of, any holder or lender pursuant to any Series of Second Lien Debt outstanding at such time; provided that the Original Second Lien Secured Parties shall not be deemed Additional Second Lien Secured Parties.
“Additional Second Lien Security Documents” means the Additional Second Lien Credit Facility (insofar as the same grants a Lien on the Collateral) and any other security agreements, pledge agreements, 

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collateral assignments, mortgages, deeds of trust, collateral agency agreements, control agreements, or grants or transfers for security, now existing or entered into after the date hereof, executed and delivered by the Borrower or any other Grantor creating (or purporting to create) a Lien upon the Second Lien Collateral in favor of the Additional Second Lien Secured Parties.
“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person.  For purposes of this definition, “control,” as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise; provided that beneficial ownership of 10% or more of the Voting Stock of a Person will be deemed to be control.  For purposes of this definition, the terms “controlling,” “controlled by” and “under common control with” have correlative meanings.
“Agreement” has the meaning assigned to such term in the preamble hereto.
“Bankruptcy Code” means Title 11 of the United States Code.
“Bankruptcy Law” means the Bankruptcy Code and any similar federal, state or foreign law providing for the relief of debtors.
“Board of Directors” means:  (1) with respect to a corporation, the board of directors of the corporation; (2) with respect to a partnership, the Board of Directors of the general partner of the partnership; and (3) with respect to any other Person, the board or committee of such Person serving a similar function.
“Borrower” has the meaning assigned to such term in the preamble hereto.
“Business Day” means each day that is not a Saturday, Sunday or other day on which banking institutions in Houston, Texas or in New York, New York are authorized or required by law to close.
“Capital Stock” means (a) in the case of a corporation, corporate stock; (b) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; (c) in the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and (d) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person.
“Collateral” means all of the assets and property of any Grantor, whether real, personal or mixed, constituting the Priority Lien Collateral and/or the Second Lien Collateral.
“Credit Facilities” means, one or more debt facilities, indentures or commercial paper facilities (including, without limitation, the Priority Credit Agreement), in each case, with banks or other financial institutions providing for revolving credit loans, term loans, capital markets financings, private placements, receivables financings (including through the sale of receivables to such lenders or to special purpose entities formed to borrow from such lenders against such receivables) or letters of credit or letter of credit guarantees, in each case, as amended, restated, modified, supplemented, extended, renewed, refunded, replaced or refinanced in whole or in part from time to time.
“DIP Financing” has the meaning assigned to such term in Section 4.02(b).
“DIP Financing Liens” has the meaning assigned to such term in Section 4.02(b).

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“DIP Lenders” has the meaning assigned to such term in Section 4.02(b).
“Discharge of Priority Lien Obligations” means the occurrence of all of the following:
(a)    termination or expiration of all commitments to extend credit that would constitute Priority Lien Debt;
(b)    indefeasible payment in full in cash of the principal of and interest and premium (if any) on all Priority Lien Debt (other than any undrawn letters of credit);
(c)    discharge or cash collateralization in an amount equal to 105% of the sum of the aggregate undrawn amount of all then outstanding letters of credit constituting Priority Lien Obligations and the aggregate fronting and similar fees which will accrue thereon through the stated expiry of such letters of credit;
(d)    payment of all obligations under Secured Hedge Agreements constituting Priority Lien Obligations (and, with respect to any particular Hedge Agreement, termination of such agreement and payment in full in cash of all obligations thereunder or such other arrangements as have been made by the counterparty thereto (and communicated to the Priority Lien Agent) pursuant to the terms of the Priority Credit Agreement); and
(e)    payment in full in cash of all other Priority Lien Obligations, including without limitation, any obligations under Secured Cash Management Agreements, that are outstanding and unpaid at the time the Priority Lien Debt is paid in full in cash (other than any obligations for taxes, costs, indemnifications, reimbursements, damages and other liabilities in respect of which no claim or demand for payment has been made at or prior to such time);
provided that, if, at any time after the Discharge of Priority Lien Obligations has occurred, the Borrower enters into any Priority Lien Document evidencing a Priority Lien Obligation which incurrence is not prohibited by the applicable Secured Debt Documents, then such Discharge of Priority Lien Obligations shall automatically be deemed not to have occurred for all purposes of this Agreement with respect to such new Priority Lien Obligations (other than with respect to any actions taken as a result of the occurrence of such first Discharge of Priority Lien Obligations), and, from and after the date on which the Borrower designates such Indebtedness as Priority Lien Debt in accordance with this Agreement, the obligations under such Priority Lien Document shall automatically and without any further action be treated as Priority Lien Obligations for all purposes of this Agreement, including for purposes of the Lien priorities and rights in respect of Collateral set forth in this Agreement, any Second Lien Obligations shall be deemed to have been at all times Second Lien Obligations and at no time Priority Lien Obligations.  For the avoidance of doubt, a Replacement as contemplated by Section 4.04(a) shall not be deemed to cause a Discharge of Priority Lien Obligations.

“Disposition” shall mean any sale, lease, exchange, assignment, license, contribution, transfer or other disposition.  “Dispose” shall have a correlative meaning.
“Excess Priority Lien Obligations” means Obligations constituting Priority Lien Obligations for the principal amount of indebtedness (including letters of credit and reimbursement obligations) under the Priority Credit Agreement and/or any other Credit Facility pursuant to which Priority Lien Debt has been 

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issued to the extent that such Obligations for principal, letters of credit and reimbursement obligations are in excess of the amount in clause (a) of the definition of “Priority Lien Cap.”
“Governmental Authority” means the government of the United States or any other nation, or any political subdivision thereof, whether state, provincial or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other Person exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.
“Grantor” means the Borrower, each other subsidiary of the Borrower that shall have granted any Lien in favor of any of the Priority Lien Agent or the Second Lien Collateral Agent on any of its assets or properties to secure any of the Secured Obligations.
“Insolvency or Liquidation Proceeding” means:
(a)    any case commenced by or against the Borrower or any other Grantor under the Bankruptcy Code or any other Bankruptcy Law, any other proceeding for the reorganization, recapitalization or adjustment or marshalling of the assets or liabilities of the Borrower or any other Grantor, any receivership or assignment for the benefit of creditors relating to the Borrower or any other Grantor or any similar case or proceeding relative to the Borrower or any other Grantor or its creditors, as such, in each case whether or not voluntary;
(b)    any liquidation, dissolution, marshalling of assets or liabilities or other winding up of or relating to the Borrower or any other Grantor, in each case whether or not voluntary and whether or not involving bankruptcy or insolvency; or
(c)    any other proceeding of any type or nature including any composition agreement in which substantially all claims of creditors of the Borrower or any other Grantor are determined and any payment or distribution is or may be made on account of such claims.
“Lien” means any interest in property securing an obligation owed to, or a claim by, a Person other than the owner of the property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including (a) the lien or security interest arising from a mortgage, encumbrance, pledge, security agreement or a financing lease, consignment or bailment for security purposes or (b) Production Payments and the like payable out of Oil and Gas Properties; provided that in no event shall an operating lease be deemed to be a Lien.
“New York UCC” means the Uniform Commercial Code as from time to time in effect in the State of New York.
“Obligations” means any principal (including reimbursement obligations and obligations to provide cash collateral with respect to letters of credit whether or not drawn), interest , premium (if any), fees, indemnifications, reimbursements, expenses and other liabilities payable under the documentation governing any Indebtedness including, to the extent legally permitted, all interest incurred, accrued or arising thereon after the commencement of any Insolvency or Liquidation Proceeding at the applicable interest rate, including any applicable post-default interest rate even if such interest is not enforceable, allowable or allowed as a claim in such proceeding.
“Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary, any Senior Vice President, any Vice President or any Assistant Vice President of such Person.

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“Officers’ Certificate” means a certificate signed on behalf of the Borrower by any Officers of the Borrower.
“Original Priority Lien Agent” has the meaning assigned to such term in the preamble hereto.
“Original Second Lien Agent” means [ ], in its capacity as [ ] under the Original Second Lien Agreement, and together with its successors in either such capacity.
“Original Second Lien Agreement” has the meaning assigned to such term in the recitals hereto.
“Original Second Lien Documents” means the Original Second Lien Agreement, the Original Second Lien Security Documents, the other “Loan Documents” (as defined in the Original Second Lien Agreement) and all other loan documents, notes, guarantees, instruments and agreements governing or evidencing, or executed or delivered in connection with, the Original Second Lien Agreement or any Second Lien Substitute Facility.
“Original Second Lien Obligations” means, with respect to any Grantor, any obligations of such Grantor owed to any Original Second Lien Secured Party (or any of its Affiliates) in respect of the Original Second Lien Documents.
“Original Second Lien Secured Parties” means, at any time, the Second Lien Agent, the Second Lien Collateral Agent, the trustees, agents and other representatives of the holders of the Original Second Lien Obligations (including any holders of notes pursuant to supplements executed in connection with the issuance of any Series of Second Lien Debt under the Original Second Lien Agreement) who maintain the transfer register for such Original Second Lien Obligations or such Series of Second Lien Debt, the beneficiaries of each indemnification obligation undertaken by any Grantor under any Original Second Lien Document and each other holder of, or obligee in respect of, any Original Second Lien Obligation, any holder or lender pursuant to any Original Second Lien Document outstanding at such time; provided that the Additional Second Lien Secured Parties shall not be deemed Original Second Lien Secured Parties.
“Original Second Lien Security Documents” means the Original Second Lien Agreement (insofar as the same grants a Lien on the Collateral), the Second Lien Collateral Agency Agreement, each agreement listed in Part B of Exhibit B hereto and any other security agreements, pledge agreements, collateral assignments, mortgages, deeds of trust, collateral agency agreements, control agreements, or grants or transfers for security, now existing or entered into after the date hereof, executed and delivered by the Borrower or any other Grantor creating (or purporting to create) a Lien upon Collateral in favor of the Second Lien Collateral Agent (including any such agreements, assignments, mortgages, deeds of trust and other documents or instruments associated with any Second Lien Substitute Facility).
“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity.
“Priority Confirmation Joinder” means an agreement substantially in the form of Exhibit A.
“Priority Credit Agreement” has the meaning assigned to such term in the recitals hereto.
“Priority Lien” means a Lien granted by the Borrower or other Grantor in favor of the Priority Lien Agent, at any time, upon any Property of the Borrower or such Grantor or the proceeds thereof to secure Priority Lien Obligations (including Liens on such Collateral under the security documents associated with any Priority Substitute Credit Facility).

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“Priority Lien Agent” means the Original Priority Lien Agent, and, from and after the date of execution and delivery of a Priority Substitute Credit Facility, the agent, collateral agent, trustee or other representative of the lenders or holders of the indebtedness and other Obligations evidenced thereunder or governed thereby, in each case, together with its successors in such capacity.
“Priority Lien Cap” means, as of any date, (a) the aggregate principal amount of all indebtedness outstanding at any time under the Priority Credit Agreement (with outstanding letters of credit being deemed to have a principal amount equal to the stated amount thereof) not in excess of the greater of (i) $4.0 billion, (ii) the Borrowing Base in effect at the time of incurrence of such indebtedness and (iii) 15% of the Consolidated Total Assets (as defined in the Priority Credit Agreement) of the Borrower and the Restricted Subsidiaries (as defined in the Priority Credit Agreement) if incurred under the Priority Credit Agreement plus (b) the amount of all Hedge Obligations arising under Secured Hedge Agreements, plus (c) the amount of all Cash Management Obligations arising under Secured Cash Management Agreements, plus (d) the amount of accrued and unpaid interest (excluding any interest paid-in-kind) and outstanding fees, to the extent such Obligations are secured by the Priority Liens, plus (e) fees, indemnifications, reimbursements and expenses as may be due pursuant to the terms of any Priority Lien Documents.
“Priority Lien Collateral” shall mean all “Collateral”, as defined in the Priority Credit Agreement or any other Priority Lien Document, and any other assets of any Grantor now or at any time hereafter subject to Liens which secure or purport to secure any Priority Lien Obligation.
“Priority Lien Debt” means the indebtedness under the Priority Credit Agreement and guarantees thereof (including letters of credit and reimbursement obligations with respect thereto) that was permitted to be incurred and secured under the Priority Credit Agreement, the Original Second Lien Agreement, any Additional Second Lien Agreement or any Second Lien Substitute Facility (or as to which the lenders or other financing sources under the Priority Credit Agreement obtained an Officers’ Certificate at the time of incurrence to the effect that such indebtedness was permitted to be incurred and secured by all applicable Secured Debt Documents) and additional indebtedness under any Priority Substitute Credit Facility.  For purposes of this Agreement, indebtedness under the Priority Credit Agreement is permitted to be incurred under the Original Second Lien Agreement.
“Priority Lien Documents” means the Priority Credit Agreement, the Priority Lien Security Documents, the other “Loan Documents” (as defined in the Priority Credit Agreement) and all other loan documents, notes, guarantees, instruments and agreements governing or evidencing, or executed or delivered in connection with, any Priority Substitute Credit Facility.
“Priority Lien Obligations” has the meaning assigned to the term “Obligations” in the Priority Credit Agreement.
“Priority Lien Secured Parties” means, at any time, the Priority Lien Agent, each lender or issuing bank under the Priority Credit Agreement, each holder, provider or obligee of any Secured Hedge Agreement and Secured Cash Management Agreement that is a Cash Management Bank or Hedge Bank, as applicable, and is a secured party (or a party entitled to the benefits of the security) under any Priority Lien Document, the beneficiaries of each indemnification obligation undertaken by any Grantor under any Priority Lien Document, each other Person that provides letters of credit, guarantees or other credit support related thereto under any Priority Lien Document and each other holder of, or obligee in respect of, any Priority Lien Obligations (including pursuant to a Priority Substitute Credit Facility), in each case to the extent designated as a secured party (or a party entitled to the benefits of the security) under any Priority Lien Document outstanding at such time.

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“Priority Lien Security Documents” means the Priority Credit Agreement (insofar as the same grants a Lien on the Collateral), each agreement listed in Part A of Exhibit B hereto, and any other security agreements, pledge agreements, collateral assignments, mortgages, deeds of trust, control agreements, or grants or transfers for security, now existing or entered into after the date hereof, executed and delivered by the Borrower or any other Grantor creating (or purporting to create) a Lien upon Collateral in favor of the Priority Lien Agent (including any such agreements, assignments, mortgages, deeds of trust and other documents or instruments associated with any Priority Substitute Credit Facility).
“Priority Substitute Credit Facility” means any Credit Facility with respect to which the requirements contained in Section 4.04(a) of this Agreement have been satisfied and that Replaces the Priority Credit Agreement then in existence.  For the avoidance of doubt, no Priority Substitute Credit Facility shall be required to be a revolving, term or asset-based loan facility and may be a facility evidenced or governed by a credit agreement, loan agreement, note agreement, promissory note, indenture or any other agreement or instrument; provided that any Priority Lien securing such Priority Substitute Credit Facility shall be subject to the terms of this Agreement for all purposes (including the lien priorities as set forth herein as of the date hereof).
“Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights.
“Replaces” means, (a) in respect of any agreement with reference to the Priority Credit Agreement or the Priority Lien Obligations or any Priority Substitute Credit Facility, that such agreement refunds, refinances or replaces the Priority Credit Agreement, the Priority Lien Obligations or such Priority Substitute Credit Facility in whole (in a transaction that is in compliance with Section 4.04(a)) and that all commitments thereunder are terminated, or, to the extent permitted by the terms of the Priority Credit Agreement, Priority Lien Obligations or such Priority Substitute Credit Facility, in part and (b) in respect of any agreement with reference to the Second Lien Documents, the Second Lien Obligations or any Second Lien Substitute Facility, that such indebtedness refunds, refinances or replaces the Second Lien Documents, the Second Lien Obligations or such Second Lien Substitute Facility in whole (in a transaction that is in compliance with Section 4.04(a)) and that all commitments thereunder are terminated, or, to the extent permitted by the terms of the Second Lien Documents, the Second Lien Obligations or such Second Lien Substitute Facility, in part.  “Replace,” “Replaced” and “Replacement” shall have correlative meanings.
“Second Lien” means a Lien granted by a Second Lien Document to the Second Lien Collateral Agent, at any time, upon any Collateral by any Grantor to secure the Second Lien Obligations (including Liens on such Collateral under the security documents associated with any Second Lien Substitute Facility).
“Second Lien Agent” means the Original Second Lien Agent, and from and after the date of execution and delivery of a Second Lien Substitute Facility, the agent, collateral agent, trustee or other representative of the lenders or holders of the indebtedness and other Obligations evidenced thereunder or governed thereby, in each case together with its successors in such capacity appointed pursuant to the terms of the Original Second Lien Agreement or Second Lien Substitute Facility, as applicable.
“Second Lien Collateral” shall mean all “Collateral”, as defined in any Second Lien Document, and any other assets of any Grantor now or at any time hereafter subject to Liens which secure, but only to the extent securing, any Second Lien Obligations.
“Second Lien Collateral Agency Agreement” means the [ ], dated as of [ ], among the Borrower, the other Grantors from time to time party thereto, the Second Lien Agent, the other Second Lien Representatives from time to time party thereto and the Second Lien Collateral Agent, as amended, restated, adjusted, waived, 

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renewed, extended, supplemented or otherwise modified from time to time, in accordance with each applicable Second Lien Document.
“Second Lien Collateral Agent” means the Original Second Lien Collateral Agent, together with its successors in such capacity appointed pursuant to the terms of the Second Lien Collateral Agency Agreement.
“Second Lien Debt” means the indebtedness under the Original Second Lien Agreement and guarantees thereof and all additional indebtedness incurred under any Additional Second Lien Documents, in each case that was permitted to be incurred and secured in accordance with the Secured Debt Documents (or as to which the lenders or other financing sources under the applicable Second Lien Documents obtained an Officers’ Certificate at the time of incurrence to the effect that such Indebtedness was permitted to be incurred and secured by all applicable Secured Debt Documents and with respect to which the requirements of Section 4.04(b) have been (or are deemed) satisfied, and all Indebtedness incurred under any Second Lien Substitute Facility.
“Second Lien Documents” means the Original Second Lien Documents and the Additional Second Lien Documents.
“Second Lien Obligations” means Second Lien Debt and all other Obligations in respect thereof.  Notwithstanding any other provision hereof, the term “Second Lien Obligations” will include accrued interest, fees, costs, and other charges incurred under the Second Lien Documents, whether incurred before or after commencement of an Insolvency or Liquidation Proceeding and whether or not allowable in an Insolvency or Liquidation Proceeding.
“Second Lien Purchasers” has the meaning assigned to such term in Section 3.06.
“Second Lien Representative” means (a) in the case of the Original Second Lien Agreement, the Second Lien Agent, and (b) in the case of any other Series of Second Lien Debt, the trustee, agent or representative of the holders of such Series of Second Lien Debt who (i) is appointed as a Second Lien Representative (for purposes related to the administration of the security documents) pursuant to the indenture, credit agreement or other agreement governing such Series of Second Lien Debt, together with its successors in such capacity, and (ii) has become party to the Second Lien Collateral Agency Agreement by executing a joinder in the form required under the Second Lien Collateral Agency Agreement.
“Second Lien Secured Parties” means the Original Second Lien Secured Parties and the Additional Second Lien Secured Parties.
“Second Lien Security Documents” means the Original Second Lien Agreement Documents and the Additional Second Lien Security Documents.
“Second Lien Substitute Facility” means any facility with respect to which the requirements contained in Section 4.04(a) of this Agreement have been satisfied and that is permitted to be incurred pursuant to the Priority Lien Documents, the proceeds of which are used to, among other things, Replace the Original Second Lien Agreement and/or any Additional Second Lien Credit Facility then in existence.  For the avoidance of doubt, no Second Lien Substitute Facility shall be required to be evidenced by notes or other instruments and may be a facility evidenced or governed by a credit agreement, loan agreement, note agreement, promissory note, indenture or any other agreement or instrument; provided that any such Second Lien Substitute Facility shall be subject to the terms of this Agreement for all purposes (including the lien priority as set forth herein as of the date hereof) to the same extent as the other Liens securing the Second Lien Obligations are subject to under this Agreement.

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“Secured Debt Documents” means the Priority Lien Documents and the Second Lien Documents.
“Secured Debt Representative” means the Priority Lien Agent and the Second Lien Collateral Agent.
“Secured Obligations” means the Priority Lien Obligations and the Second Lien Obligations.
“Secured Parties” means the Priority Lien Secured Parties and the Second Lien Secured Parties.
“Security Documents” means the Priority Lien Security Documents and the Second Lien Security Documents.
“Series of Second Lien Debt” means, severally, the Original Second Lien Agreement and each other issue or series of Second Lien Debt (including any Additional Second Lien Credit Facility) for which a single transfer register is maintained.
“Standstill Period” has the meaning assigned to such term in Section 3.02.
“subsidiary” means, with respect to any specified Person: (1) any corporation, association, limited liability company or other business entity (other than a partnership) of which more than 50% of the total voting power of Voting Stock is at the time owned or controlled, directly or through another subsidiary, by that Person or one or more of the other subsidiaries of that Person (or a combination thereof); and (2) any partnership (a) the sole general partner or the managing general partner of which is such Person or a subsidiary of such Person or (b) the only general partners of which are that Person or one or more subsidiaries of that Person (or any combination thereof), or (c) as to which such Person and its subsidiaries are entitled to receive more than 50% of the assets of such partnership upon its dissolution.
[“TIA” means the Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb) as in effect on the date hereof.]
“Voting Stock” of any Person as of any date means the Capital Stock of such Person that is at the time entitled (without regard to the occurrence of any contingency) to vote in the election of the Board of Directors of such Person.
ARTICLE II     
LIEN PRIORITIES
Section 2.01    Relative Priorities.  (a) The grant of the Priority Liens pursuant to the Priority Lien Documents and the grant of the Second Liens pursuant to the Second Lien Documents create two separate and distinct Liens on the Collateral.
(b)    Notwithstanding anything contained in this Agreement, the Priority Lien Documents, the Second Lien Documents or any other agreement or instrument or operation of law to the contrary, or any other circumstance whatsoever and irrespective of (i) how a Lien was acquired (whether by grant, possession, statute, operation of law, subrogation, or otherwise), (ii) the time, manner, or order of the grant, attachment or perfection of a Lien, (iii) any conflicting provision of the New York UCC or other applicable law, (iv) any defect in, or non-perfection, setting aside, or avoidance of, a Lien or a Priority Lien Document or a Second Lien Document, (v) the modification of a Priority Lien Obligation or a Second Lien Obligation, or (vi) the subordination of a Lien on Collateral securing a Priority Lien Obligation to a Lien securing another obligation of the Borrower or other Person that is permitted under the Priority Lien Documents as in effect on the date hereof or securing a DIP Financing, the Second Lien Collateral Agent, 

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on behalf of itself and the other Second Lien Secured Parties hereby agrees that (A) any Priority Lien on any Collateral now or hereafter held by or for the benefit of any Priority Lien Secured Party shall be senior in right, priority, operation, effect and all other respects to any and all Second Liens on any Collateral, and (B) any Second Lien on any Collateral now or hereafter held by or for the benefit of any Second Lien Secured Party shall be junior and subordinate in right, priority, operation, effect and all other respects to any and all Priority Liens on any Collateral.
(c)    It is acknowledged that, subject to the Priority Lien Cap as provided herein (i) the aggregate amount of the Priority Lien Obligations may be increased from time to time pursuant to the terms of the Priority Lien Documents, (ii) a portion of the Priority Lien Obligations consists or may consist of indebtedness that is revolving in nature, and the amount thereof that may be outstanding at any time or from time to time may be increased or reduced and subsequently reborrowed, and (iii) (A) the Priority Lien Documents may be replaced, restated, supplemented, restructured or otherwise amended or modified from time to time and (B) the Priority Lien Obligations may be increased, extended, renewed, replaced, restated, supplemented, restructured, repaid, refunded, refinanced or otherwise amended or modified from time to time, in the case of the foregoing (A) and (B) all without affecting the subordination of the Second Liens hereunder or the provisions of this Agreement defining the relative rights of the Priority Lien Secured Parties and the Second Lien Secured Parties.  The lien priorities provided for herein shall not be altered or otherwise affected by any amendment, modification, supplement, extension, increase, renewal, restatement or Replacement of either the Priority Lien Obligations (or any part thereof) or the Second Lien Obligations (or any part thereof), by the release of any Collateral or of any guarantees for any Priority Lien Obligations or by any action that any Secured Debt Representative or Secured Party may take or fail to take in respect of any Collateral.
Section 2.02    Prohibition on Marshalling, Etc.  Until the Discharge of Priority Lien Obligations, the Second Lien Collateral Agent will not assert any marshalling, appraisal, valuation, or other similar right that may otherwise be available to a junior secured creditor.
Section 2.03    No New Liens.  The parties hereto agree that, so long as the Discharge of Priority Lien Obligations has not occurred, none of the Grantors shall, nor shall any Grantor permit any of its subsidiaries to, (a) grant or permit any additional Liens on any asset of a Grantor to secure any Second Lien Obligation, or take any action to perfect any additional Liens, unless it has granted, or substantially concurrently therewith grants (or offers to grant), a Lien on such asset of such Grantor to secure the Priority Lien Obligations and has taken all actions required to perfect such Liens; or (b) grant or permit any additional Liens on any asset of a Grantor to secure any Priority Lien Obligation, or take any action to perfect any additional Liens, unless it has granted, or substantially concurrently therewith grants (or offers to grant), a Lien on such asset of such Grantor to secure the Second Lien Obligations and has taken all actions required to perfect such Liens.  To the extent that the provisions of the immediately preceding sentence are not complied with for any reason, without limiting any other right or remedy available to the Priority Lien Agent or the other Priority Lien Secured Parties, the Second Lien Collateral Agent, for itself and on behalf of the other Second Lien Secured Parties, agrees that any amounts received by or distributed to any Second Lien Secured Party pursuant to or as a result of any Lien granted in contravention of this Section 2.03 shall be subject to Section 3.05(b).
Section 2.04    Similar Collateral and Agreements.  The parties hereto acknowledge and agree that it is their intention that the Priority Lien Collateral and the Second Lien Collateral be identical.  In furtherance of the foregoing, the parties hereto agree (a) to cooperate in good faith in order to determine, upon any reasonable request by the Priority Lien Agent or the Second Lien Collateral Agent, the specific assets included in the Priority Lien Collateral and the Second Lien Collateral, the steps taken to perfect the Priority Liens 

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and the Second Liens thereon and the identity of the respective parties obligated under the Priority Lien Documents and the Second Lien Documents in respect of the Priority Lien Obligations and the Second Lien Obligations, respectively, (b) that the Second Lien Security Documents creating Liens on the Collateral shall be in all material respects the same forms of documents as the respective Priority Lien Security Documents creating Liens on the Collateral other than (i) with respect to the priority nature of the Liens created thereunder in such Collateral, (ii) such other modifications to such Second Lien Security Documents which are less restrictive than the corresponding Priority Lien Security Documents, (iii) provisions in the Second Lien Security Documents which are solely applicable to the rights and duties of the Second Lien Collateral Agent, and (iv) if applicable, deletions or modifications of representations, warranties and covenants as are customary with respect to security documents establishing Liens securing publicly traded debt securities, and (c) that at no time shall there be any Grantor that is an obligor in respect of the Second Lien Obligations that is not also an obligor in respect of the Priority Lien Obligations.
Section 2.05    No Duties of Priority Lien Agent.  The Second Lien Collateral Agent, for itself and on behalf of each Second Lien Secured Party acknowledges and agrees that neither the Priority Lien Agent nor any other Priority Lien Secured Party shall have any duties or other obligations to any such Second Lien Secured Party with respect to any Collateral, other than to transfer to the Second Lien Collateral Agent any remaining Collateral and any proceeds of the sale or other Disposition of any such Collateral remaining in its possession following the associated Discharge of Priority Lien Obligations, in each case without representation or warranty on the part of the Priority Lien Agent or any Priority Lien Secured Party.  In furtherance of the foregoing, each Second Lien Secured Party acknowledges and agrees that until the Discharge of Priority Lien Obligations (subject to the terms of Section 3.02, including the rights of the Second Lien Secured Parties following the expiration of the Standstill Period), the Priority Lien Agent shall be entitled, for the benefit of the Priority Lien Secured Parties, to sell, transfer or otherwise Dispose of or deal with such Collateral, as provided herein and in the Priority Lien Documents, without regard to any Second Lien or any rights to which the Second Lien Collateral Agent or any Second Lien Secured Party would otherwise be entitled as a result of such Second Lien.  Without limiting the foregoing, each Second Lien Secured Party agrees that neither the Priority Lien Agent nor any other Priority Lien Secured Party shall have any duty or obligation first to marshal or realize upon any type of Collateral, or to sell, Dispose of or otherwise liquidate all or any portion of such Collateral, in any manner that would maximize the return to the Second Lien Secured Parties, notwithstanding that the order and timing of any such realization, sale, Disposition or liquidation may affect the amount of proceeds actually received by the Second Lien Secured Parties from such realization, sale, Disposition or liquidation.  Each of the Second Lien Secured Parties waives any claim such Second Lien Secured Party may now or hereafter have against the Priority Lien Agent or any other Priority Lien Secured Party arising out of any actions which the Priority Lien Agent or the Priority Lien Secured Parties take or omit to take (including actions with respect to the creation, perfection or continuation of Liens on any Collateral, actions with respect to the foreclosure upon, sale, release or depreciation of, or failure to realize upon, any of the Collateral, and actions with respect to the collection of any claim for all or any part of the Priority Lien Obligations from any account debtor, guarantor or any other party) in accordance with this Agreement and the Priority Lien Documents or the valuation, use, protection or release of any security for the Priority Lien Obligations.
ARTICLE III     
ENFORCEMENT RIGHTS; PURCHASE OPTION
Section 3.01    Limitation on Enforcement Action.  Prior to the Discharge of Priority Lien Obligations, the Second Lien Collateral Agent, for itself and on behalf of each Second Lien Secured Party, hereby agrees that, subject to Section 3.05(b) and Section 4.07, none of the Second Lien Collateral Agent or any other Second Lien Secured Party shall commence any judicial or nonjudicial foreclosure proceedings 

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with respect to, seek to have a trustee, receiver, liquidator or similar official appointed for or over, attempt any action to take possession of, exercise any right, remedy or power with respect to, or otherwise take any action to enforce its interest in or realize upon, or take any other action available to it in respect of, any Collateral under any Second Lien Security Document, applicable law or otherwise (including but not limited to any right of setoff), it being agreed that only the Priority Lien Agent, acting in accordance with the applicable Priority Lien Documents, shall have the exclusive right (and whether or not any Insolvency or Liquidation Proceeding has been commenced), to take any such actions or exercise any such remedies, in each case, without any consultation with or the consent of the Second Lien Collateral Agent or any other Second Lien Secured Party.  In exercising rights and remedies with respect to the Collateral, the Priority Lien Agent and the other Priority Lien Secured Parties may enforce the provisions of the Priority Lien Documents and exercise remedies thereunder, all in such order and in such manner as they may determine in their sole discretion and regardless of whether such exercise and enforcement is adverse to the interest of any Second Lien Secured Party.  Such exercise and enforcement shall include the rights of an agent appointed by them to Dispose of Collateral upon foreclosure, to incur expenses in connection with any such Disposition and to exercise all the rights and remedies of a secured creditor under the Uniform Commercial Code, the Bankruptcy Code or any other applicable or Bankruptcy Law.  Without limiting the generality of the foregoing, the Priority Lien Agent will have the exclusive right to deal with that portion of the Collateral consisting of deposit accounts and securities accounts (collectively “Accounts”), including exercising rights under control agreements with respect to such Accounts.  The Second Lien Collateral Agent, for itself and on behalf of the other Second Lien Secured Parties, hereby acknowledges and agrees that no covenant, agreement or restriction contained in any Second Lien Security Document, or any other Second Lien Document shall be deemed to restrict in any way the rights and remedies of the Priority Lien Agent or the other Priority Lien Secured Parties with respect to the Collateral as set forth in this Agreement.  Notwithstanding the foregoing, subject to Section 3.05, the Second Lien Collateral Agent, on behalf of the Second Lien Secured Parties, may, but will have no obligation to, take all such actions (not adverse to the Priority Liens or the rights of the Priority Lien Agent and the Priority Lien Secured Parties) it deems necessary to perfect or continue the perfection of the Second Liens in the Collateral or to create, preserve or protect (but not enforce) the Second Liens in the Collateral.  Nothing herein shall limit the right or ability of the Second Lien Secured Parties to (a) purchase (by credit bid or otherwise) all or any portion of the Collateral in connection with any enforcement of remedies by the Priority Lien Agent to the extent that, and so long as, the Priority Lien Secured Parties receive payment in full in cash of all Priority Lien Obligations after giving effect thereto or (b) file a proof of claim with respect to the Second Lien Obligations.
Section 3.02    Standstill Period; Permitted Enforcement Action.  Prior to the Discharge of Priority Lien Obligations and notwithstanding the foregoing Section 3.01, both before and during an Insolvency or Liquidation Proceeding after a period of 180 days has elapsed (which period will be tolled during any period in which the Priority Lien Agent is not entitled, on behalf of the Priority Lien Secured Parties, to enforce or exercise any rights or remedies with respect to any Collateral as a result of (a) any injunction issued by a court of competent jurisdiction or (b) the automatic stay or any other stay in any Insolvency or Liquidation Proceeding) since the date on which the Second Lien Collateral Agent has delivered to the Priority Lien Agent written notice of the acceleration of any Second Lien Debt (the “Standstill Period”), the Second Lien Collateral Agent and the other Second Lien Secured Parties may enforce or exercise any rights or remedies with respect to any Collateral; provided, however that notwithstanding the expiration of the Standstill Period or anything in the Second Lien Documents to the contrary, in no event may the Second Lien Collateral Agent or any other Second Lien Secured Party enforce or exercise any rights or remedies with respect to any Collateral, or commence, join with any Person at any time in commencing, or petition for or vote in favor of any resolution for, any such action or proceeding, if the Priority Lien Agent on behalf of the Priority Lien Secured Parties or any other Priority Lien Secured Party shall have commenced, and shall be diligently pursuing (or shall have sought or requested relief from, or modification of, the automatic stay or any other 

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stay or other prohibition in any Insolvency or Liquidation Proceeding to enable the commencement and pursuit thereof), the enforcement or exercise of any rights or remedies with respect to the Collateral or any such action or proceeding (prompt written notice thereof to be given to the Second Lien Representatives by the Priority Lien Agent); provided, further, that, at any time after the expiration of the Standstill Period, if neither the Priority Lien Agent nor any other Priority Lien Secured Party shall have commenced and be diligently pursuing (or shall have sought or requested relief from, or modification of, the automatic stay or any other stay or other prohibition in any Insolvency or Liquidation Proceeding to enable the commencement and pursuit thereof) the enforcement or exercise of any rights or remedies with respect to any material portion of the Collateral or any such action or proceeding, and the Second Lien Collateral Agent shall have commenced the enforcement or exercise of any rights or remedies with respect to any material portion of the Collateral or any such action or proceeding in respect of such rights and remedies, then for so long as the Second Lien Collateral Agent is diligently pursuing such rights or remedies, none of any Priority Lien Secured Party or the Priority Lien Agent shall take any action of a similar nature with respect to such Collateral, or commence, join with any Person at any time in commencing, or petition for or vote in favor of any resolution for, any such action or proceeding (provided that during such period the Priority Lien Agent may take any of the actions the Second Lien Collateral Agent is permitted to take during the Standstill Period).  Nothing contained in this Section 3.02 shall relieve the Second Lien Collateral Agent or any Second Lien Secured party of its obligations under Section 3.05(b).
Section 3.03    Insurance.  Unless and until the Discharge of Priority Lien Obligations has occurred (subject to the terms of Section 3.02, including the rights of the Second Lien Secured Parties following expiration of the Standstill Period), the Priority Lien Agent shall have the sole and exclusive right, subject to the rights of the Grantors under the Priority Lien Documents, to adjust and settle claims in respect of Collateral under any insurance policy in the event of any loss thereunder and to approve any award granted in any condemnation or similar proceeding (or any deed in lieu of condemnation) affecting the Collateral.  Unless and until the Discharge of Priority Lien Obligations has occurred, and subject to the rights of the Grantors under the Priority Lien Documents, all proceeds of any such policy and any such award (or any payments with respect to a deed in lieu of condemnation) in respect to the Collateral shall be paid to the Priority Lien Agent pursuant to the terms of the Priority Lien Documents (including for purposes of cash collateralization of commitments, letters of credit and Hedge Obligations).  If the Second Lien Collateral Agent or any Second Lien Secured Party shall, at any time prior to the Discharge of Priority Lien Obligations, receive any proceeds of any such insurance policy or any such award or payment in contravention of the foregoing, it shall pay such proceeds over to the Priority Lien Agent.  In addition, if by virtue of being named as an additional insured or loss payee of any insurance policy of any Grantor covering any of the Collateral, the Second Lien Collateral Agent or any other Second Lien Secured Party shall have the right to adjust or settle any claim under any such insurance policy, then unless and until the Discharge of Priority Lien Obligations has occurred, the Second Lien Collateral Agent and any such Second Lien Secured Party shall follow the instructions of the Priority Lien Agent, or of the Grantors under the Priority Lien Documents to the extent the Priority Lien Documents grant such Grantors the right to adjust or settle such claims, with respect to such adjustment or settlement (subject to the terms of Section 3.02, including the rights of the Second Lien Secured Parties following expiration of the Standstill Period).
Section 3.04    Notification of Release of Collateral.  Each of the Priority Lien Agent and the Second Lien Collateral Agent shall give the other Secured Debt Representatives prompt written notice of the Disposition by it of, and Release by it of the Lien on, any Collateral.  Such notice shall describe in reasonable detail the subject Collateral, the parties involved in such Disposition or Release, the place, time manner and method thereof, and the consideration, if any, received therefor; provided, however, that the failure to give any such notice shall not in and of itself in any way impair the effectiveness of any such Disposition or Release.

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Section 3.05    No Interference; Payment Over.
(a)    No Interference.  The Second Lien Collateral Agent, for itself and on behalf of each Second Lien Secured Party, agrees that each Second Lien Secured Party (i) will not take or cause to be taken any action the purpose or effect of which is, or could be, to make any Second Lien pari passu with, or to give such Second Lien Secured Party any preference or priority relative to, any Priority Lien with respect to the Collateral or any part thereof, (ii) will not challenge or question in any proceeding the validity or enforceability of any Priority Lien Obligations or Priority Lien Document, or the validity, attachment, perfection or priority of any Priority Lien, or the validity or enforceability of the priorities, rights or duties established by the provisions of this Agreement, (iii) will not take or cause to be taken any action the purpose or effect of which is, or could be, to interfere, hinder or delay, in any manner, whether by judicial proceedings or otherwise, any sale, transfer or other Disposition of the Collateral by any Priority Lien Secured Party or the Priority Lien Agent acting on their behalf, (iv) shall have no right to (A) direct the Priority Lien Agent or any other Priority Lien Secured Party to exercise any right, remedy or power with respect to any Collateral or (B) consent to the exercise by the Priority Lien Agent or any other Priority Lien Secured Party of any right, remedy or power with respect to any Collateral, (v) will not institute any suit or assert in any suit or Insolvency or Liquidation Proceeding any claim against the Priority Lien Agent or other Priority Lien Secured Party seeking damages from or other relief by way of specific performance, instructions or otherwise with respect to, and neither the Priority Lien Agent nor any other Priority Lien Secured Party shall be liable for, any action taken or omitted to be taken by the Priority Lien Agent or other Priority Lien Secured Party with respect to any Priority Lien Collateral, (vi) will not seek, and hereby waives any right, to have any Collateral or any part thereof marshaled upon any foreclosure or other Disposition of such Collateral, (vii) will not attempt, directly or indirectly, whether by judicial proceedings or otherwise, to challenge the enforceability of any provision of this Agreement, (viii) will not object to forbearance by the Priority Lien Agent or any Priority Lien Secured Party, and (ix) will not assert, and hereby waives, to the fullest extent permitted by law, any right to demand, request, plead or otherwise assert or claim the benefit of any marshalling, appraisal, valuation or other similar right that may be available under applicable law with respect to the Collateral or any similar rights a junior secured creditor may have under applicable law.
(b)    Payment Over.  The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party, hereby agrees that if any Second Lien Secured Party shall obtain possession of any Collateral or shall realize any proceeds or payment in respect of any Collateral, pursuant to any rights or remedies with respect to the Collateral under any Second Lien Security Document or on account of any rights available to it under applicable law or in any Insolvency or Liquidation Proceeding, to the extent permitted hereunder, at any time prior to the Discharge of Priority Lien Obligations secured, or intended to be secured, by such Collateral, then it shall hold such Collateral, proceeds or payment in trust for the Priority Lien Agent and the other Priority Lien Secured Parties and transfer such Collateral, proceeds or payment, as the case may be, to the Priority Lien Agent as promptly as practicable.  Furthermore, the Second Lien Collateral Agent shall, at the Grantors’ expense, promptly send written notice to the Priority Lien Agent upon receipt of such Collateral, proceeds or payment by any Second Lien Secured Party and if directed by the Priority Lien Agent within five (5) days after receipt by the Priority Lien Agent of such written notice, shall deliver such Collateral, proceeds or payment to the Priority Lien Agent in the same form as received, with any necessary endorsements, or as court of competent jurisdiction may otherwise direct.  The Priority Lien Agent is hereby authorized to make any such endorsements as agent for the Second Lien Collateral Agent or any other Second Lien Secured Party.  The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party agrees that if, at any time, it obtains written notice that all or part of any payment with respect to any Priority Lien Obligations previously made shall be rescinded for any reason whatsoever, it will promptly pay over to the Priority Lien Agent any payment received by it and then in its possession or under its direct control in respect of any such Priority Lien Collateral and shall promptly turn 

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any such Collateral then held by it over to the Priority Lien Agent, and the provisions set forth in this Agreement will be reinstated as if such payment had not been made, until the Discharge of Priority Lien Obligations.  All Second Liens will remain attached to and enforceable against all proceeds so held or remitted, subject to the priorities set forth in this Agreement.  Anything contained herein to the contrary notwithstanding, this Section 3.05(b) shall not apply to any proceeds of Collateral realized in a transaction not prohibited by the Priority Lien Documents and as to which the possession or receipt thereof by the Second Lien Collateral Agent or any other Second Lien Secured Party is otherwise permitted by the Priority Lien Documents.
Section 3.06    Purchase Option.
(a)    Notwithstanding anything in this Agreement to the contrary, on or at any time after (i) the commencement of an Insolvency or Liquidation Proceeding or (ii) the acceleration of the Priority Lien Obligations, holders of the Second Lien Debt and each of their respective designated Affiliates (the “Second Lien Purchasers”) will have the right, at their sole option and election (but will not be obligated), at any time upon prior written notice to the Priority Lien Agent, to purchase from the Priority Lien Secured Parties all (but not less than all) Priority Lien Obligations (including unfunded commitments then in effect) other than any Priority Lien Obligations constituting Excess Priority Lien Obligations and any loans provided by any of the Priority Lien Secured Parties in connection with a DIP Financing that are outstanding on the date of such purchase.  Promptly following the receipt of such notice, the Priority Lien Agent will deliver to the Second Lien Collateral Agent a statement of the amount of Priority Lien Debt, other Priority Lien Obligations (other than any Priority Lien Obligations constituting Excess Priority Lien Obligations) and DIP Financing provided by any of the Priority Lien Secured Parties, if any, then outstanding and the amount of the cash collateral requested by the Priority Lien Agent to be delivered pursuant to Section 3.06(b)(ii) below.  The right to purchase provided for in this Section 3.06 will expire unless, within 10 Business Days after the receipt by the Second Lien Collateral Agent of such notice from the Priority Lien Agent, the Second Lien Collateral Agent delivers to the Priority Lien Agent an irrevocable commitment of the Second Lien Purchasers to purchase all (but not less than all) of the Priority Lien Obligations (including unfunded commitments) other than any Priority Lien Obligations constituting Excess Priority Lien Obligations and any loans provided by any of the Priority Lien Secured Parties in connection with a DIP Financing and to otherwise complete such purchase on the terms set forth under this Section 3.06.
(b)    On the date specified by the Second Lien Collateral Agent (on behalf of the Second Lien Purchasers) in such irrevocable commitment (which shall not be less than five Business Days nor more than 20 Business Days, after the receipt by the Priority Lien Agent of such irrevocable commitment), the Priority Lien Secured Parties shall sell to the Second Lien Purchasers all (but not less than all) Priority Lien Obligations (including unfunded commitments) other than any Priority Lien Obligations constituting Excess Priority Lien Obligations and any loans provided by any of the Priority Lien Secured Parties in connection with a DIP Financing that are outstanding on the date of such sale, subject to any required approval of any Governmental Authority then in effect, if any, and only if on the date of such sale, the Priority Lien Agent receives the following:
(i)    payment, as the purchase price for all Priority Lien Obligations sold in such sale, of an amount equal to the full amount of all Priority Lien Obligations (other than outstanding letters of credit as referred to in clause (ii) below) other than any Priority Lien Obligations constituting Excess Priority Lien Obligations and loans provided by any of the Priority Lien Secured Parties in connection with a DIP Financing then outstanding (including principal, interest, fees, reasonable attorneys’ fees and legal expenses, but excluding contingent indemnification obligations for which no claim or demand for payment has been made at or prior to such time); provided that in the case of Hedge Obligations that constitute Priority Lien 

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Obligations, the Second Lien Purchasers shall cause the applicable agreements governing such Hedge Obligations to be assigned and novated or, if such agreements have been terminated, such purchase price shall include an amount equal to the sum of any unpaid amounts then due in respect of such Hedge Obligations, calculated using the market quotation method and after giving effect to any netting arrangements;
(ii)    a cash collateral deposit in such amount as the Priority Lien Agent determines is reasonably necessary to secure the payment of any outstanding letters of credit constituting Priority Lien Obligations that may become due and payable after such sale (but not in any event in an amount greater than one hundred five percent (105%) of the amount then reasonably estimated by the Priority Lien Agent to be the aggregate outstanding amount of such letters of credit at such time), which cash collateral shall be (A) held by the Priority Lien Agent as security solely to reimburse the issuers of such letters of credit that become due and payable after such sale and any fees and expenses incurred in connection with such letters of credit and (B) returned to the Second Lien Collateral Agent (except as may otherwise be required by applicable law or any order of any court or other Governmental Authority) promptly after the expiration or termination from time to time of all payment contingencies affecting such letters of credit; and
(iii)    any agreements, documents or instruments which the Priority Lien Agent may reasonably request pursuant to which the Second Lien Collateral Agent and the Second Lien Purchasers in such sale expressly assume and adopt all of the obligations of the Priority Lien Agent and the Priority Lien Secured Parties under the Priority Lien Documents and in connection with loans provided by any of the Priority Lien Secured Parties in connection with a DIP Financing on and after the date of the purchase and sale and the Second Lien Collateral Agent (or any other representative appointed by the holders of a majority in aggregate principal amount of the Second Lien Debt then outstanding) becomes a successor agent thereunder.
(c)    Such purchase of the Priority Lien Obligations (including unfunded commitments) and any loans provided by any of the Priority Lien Secured Parties in connection with a DIP Financing shall be made on a pro rata basis among the Second Lien Purchasers giving notice to the Priority Lien Agent of their interest to exercise the purchase option hereunder according to each such Second Lien Purchaser’s portion of the Second Lien Debt outstanding on the date of purchase or such portion as such Second Lien Purchasers may otherwise agree among themselves.  Such purchase price and cash collateral shall be remitted by wire transfer in federal funds to such bank account of the Priority Lien Agent as the Priority Lien Agent may designate in writing to the Second Lien Collateral Agent for such purpose.  Interest shall be calculated to but excluding the Business Day on which such sale occurs if the amounts so paid by the Second Lien Purchasers to the bank account designated by the Priority Lien Agent are received in such bank account prior to 12:00 noon, New York City time, and interest shall be calculated to and including such Business Day if the amounts so paid by the Second Lien Purchasers to the bank account designated by the Priority Lien Agent are received in such bank account later than 12:00 noon, New York City time.
(d)    Such sale shall be expressly made without representation or warranty of any kind by the Priority Lien Secured Parties as to the Priority Lien Obligations, the Collateral or otherwise and without recourse to any Priority Lien Secured Party, except that the Priority Lien Secured Parties shall represent and warrant severally as to the Priority Lien Obligations (including unfunded commitments) and any loans provided by any of the Priority Lien Secured Parties in connection with a DIP Financing then owing to it: (i) that such applicable Priority Lien Secured Party owns such Priority Lien Obligations (including unfunded commitments) and any loans provided by any of the Priority Lien Secured Parties in connection with a DIP Financing; and (ii) that such applicable Priority Lien Secured Party has the necessary corporate or other governing authority to assign such interests.

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(e)    After such sale becomes effective, the outstanding letters of credit will remain enforceable against the issuers thereof and will remain secured by the Priority Liens upon the Collateral in accordance with the applicable provisions of the Priority Lien Documents as in effect at the time of such sale, and the issuers of letters of credit will remain entitled to the benefit of the Priority Liens upon the Collateral and sharing rights in the proceeds thereof in accordance with the provisions of the Priority Lien Documents as in effect at the time of such sale, as fully as if the sale of the Priority Lien Debt had not been made, but, except with respect to cash collateral held by the issuer(s) of such letters of credit, only the Person or successor agent to whom the Priority Liens are transferred in such sale will have the right to foreclose upon or otherwise enforce the Priority Liens and only the Second Lien Purchasers in the sale will have the right to direct such Person or successor as to matters relating to the foreclosure or other enforcement of the Priority Liens.
ARTICLE IV     
OTHER AGREEMENTS
Section 4.01    Release of Liens; Automatic Release of Second Liens.  (a) Prior to the Discharge of Priority Lien Obligations, the Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party agrees that, in the event the Priority Lien Secured Parties release their Lien on any Collateral, the Second Lien on such Collateral shall terminate and be released automatically and without further action if (i) such release is permitted under the Priority Lien Documents, (ii) such release is effected in connection with the Priority Lien Agent’s foreclosure upon, or other exercise of rights or remedies with respect to, such Collateral, or (iii) such release is effected in connection with a sale or other Disposition of any Collateral (or any portion thereof) under Section 363 of the Bankruptcy Code or any other provision of the Bankruptcy Code if the Priority Lien Secured Parties shall have consented to such sale or Disposition of such Collateral; provided that, in the case of each of clauses (i), (ii) and (iii), the Second Liens on such Collateral shall attach to (and shall remain subject and subordinate to all Priority Liens securing Priority Lien Obligations, subject to the Priority Lien Cap) any proceeds of a sale, transfer or other Disposition of Collateral not paid to the Priority Lien Secured Parties or that remain after the Discharge of Priority Lien Obligations.
(b)    The Second Lien Collateral Agent agrees to execute and deliver (at the sole cost and expense of the Grantors) all such releases and other instruments as shall reasonably be requested by the Priority Lien Agent to evidence and confirm any release of Collateral provided for in this Section 4.01.
Section 4.02    Certain Agreements With Respect to Insolvency or Liquidation Proceedings.  (a) The parties hereto acknowledge that this Agreement is a “subordination agreement” under Section 510(a) of the Bankruptcy Code and shall continue in full force and effect, notwithstanding the commencement of any Insolvency or Liquidation Proceeding by or against the Borrower or any subsidiary of the Borrower.  All references in this Agreement to the Borrower or any subsidiary of the Borrower or any other Grantor will include such Person or Persons as a debtor-in-possession and any receiver or trustee for such Person or Persons in an Insolvency or Liquidation Proceeding.  
(b)    If the Borrower or any of its subsidiaries shall become subject to any Insolvency or Liquidation Proceeding and shall, as debtor(s)-in-possession, or if any receiver or trustee for such Person or Persons shall, move for approval of financing (“DIP Financing”) to be provided by one or more lenders (the “DIP Lenders”) under Section 364 of the Bankruptcy Code or the use of cash collateral under Section 363 of the Bankruptcy Code, the Second Lien Collateral Agent, for itself and on behalf of each Second Lien Secured Party, agrees that neither it nor any other Second Lien Secured Party will raise any objection, contest or oppose, and each Second Lien Secured Party will waive any claim such Person may now or hereafter 

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have, to any such financing or to the Liens on the Collateral securing the same (“DIP Financing Liens”), or to any use, sale or lease of cash collateral that constitutes Collateral or to any grant of administrative expense priority under Section 364 of the Bankruptcy Code, unless (i) the Priority Lien Agent or the Priority Lien Secured Parties oppose or object to such DIP Financing or such DIP Financing Liens or such use of cash collateral, (ii) the maximum principal amount of indebtedness permitted under such DIP Financing exceeds the sum of (A) $1,000,000,000 plus (B) the aggregate face amount of any letters of credit issued and outstanding under Priority Lien Documents on the date of the commencement of such Insolvency or Liquidation Proceeding, or (iii) the terms of such DIP Financing provide for the sale of a substantial part of the Collateral or require the confirmation of a plan of reorganization containing specific terms or provisions (other than repayment in cash of such DIP Financing on the effective date thereof).  To the extent such DIP Financing Liens are senior to, or rank pari passu with, the Priority Liens, the Second Lien Collateral Agent will, for itself and on behalf of the other Second Lien Secured Parties, subordinate the Second Liens on the Collateral to the Priority Liens and to such DIP Financing Liens, so long as the Second Lien Collateral Agent, on behalf of the Second Lien Secured Parties, retains Liens on all the Collateral, including proceeds thereof arising after the commencement of any Insolvency or Liquidation Proceeding, with the same priority relative to the Priority Liens as existed prior to the commencement of the case under the Bankruptcy Code.
(c)    Prior to the Discharge of Priority Lien Obligations, without the consent of the Priority Lien Agent, in its sole discretion, the Second Lien Collateral Agent, for itself and on behalf of each Second Lien Secured Party agrees not to propose, support or enter into any DIP Financing.
(d)    The Second Lien Collateral Agent, for itself and on behalf of each Second Lien Secured Party agrees that it will not object to, oppose or contest (or join with or support any third party objecting to, opposing or contesting) a sale or other Disposition, a motion to sell or Dispose or the bidding procedure for such sale or Disposition of any Collateral (or any portion thereof) under Section 363 of the Bankruptcy Code or any other provision of the Bankruptcy Code if the Priority Lien Secured Parties shall have consented to such sale or Disposition, such motion to sell or Dispose or such bidding procedure for such sale or Disposition of such Collateral provided that (a) all Priority Liens and Second Liens will attach to the proceeds of the sale in the same respective priorities as set forth in this Agreement or (b) the net cash Proceeds of any Disposition under Section 363(b) of the Bankruptcy Code are permanently applied to the DIP Financing or to the Priority Lien Obligations.
(e)    The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party waives any claim that may be had against the Priority Lien Agent or any other Priority Lien Secured Party arising out of any DIP Financing Liens or administrative expense priority under Section 364 of the Bankruptcy Code (in each case that is granted in a manner that is consistent with this Agreement).
(f)    The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party, agrees that neither the Second Lien Collateral Agent nor any other Second Lien Secured Party will file or prosecute in any Insolvency or Liquidation Proceeding any motion for adequate protection (or any comparable request for relief) based upon their interest in the Collateral, nor object to, oppose or contest (or join with or support any third party objecting to, opposing or contesting) (i) any request by the Priority Lien Agent or any other Priority Lien Secured Party for adequate protection or (ii) any objection by the Priority Lien Agent or any other Priority Lien Secured Party to any motion, relief, action or proceeding based on the Priority Lien Agent or Priority Lien Secured Parties claiming a lack of adequate protection, except that the Second Lien Secured Parties may:
(A)    freely seek and obtain relief granting adequate protection in the form of a replacement lien co-extensive in all respects with, but subordinated (as set forth in Section 

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2.01) to, and with the same relative priority to the Priority Liens as existed prior to the commencement of the Insolvency or Liquidation Proceeding, all Liens granted in the Insolvency or Liquidation Proceeding to, or for the benefit of, the Priority Lien Secured Parties; and
(B)    freely seek and obtain any relief upon a motion for adequate protection (or any comparable relief), without any condition or restriction whatsoever, at any time after the Discharge of Priority Lien Obligations; and
(g)    The Second Lien Collateral Agent, for itself and on behalf of each of the other of the Second Lien Secured Parties waives any claim it or any such other Second Lien Secured Party may now or hereafter have against the Priority Lien Agent or any other Priority Lien Secured Party (or their representatives) arising out of any election by the Priority Lien Agent or any Priority Lien Secured Parties, in any proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b) of the Bankruptcy Code.
(h)    The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party, agrees that in any Insolvency or Liquidation Proceeding, neither the Second Lien Collateral Agent nor any other Second Lien Secured Party shall support or vote to accept any plan of reorganization or disclosure statement of the Borrower or any other Grantor unless (i) such plan is accepted by the Priority Lien Secured Parties in accordance with Section 1126(c) of the Bankruptcy Code or otherwise provides for the payment in full in cash of all Priority Lien Obligations (including all post-petition interest approved by the bankruptcy court, fees and expenses and cash collateralization of all letters of credit) on the effective date of such plan of reorganization, or (ii) such plan provides on account of the Priority Lien Secured Parties for the retention by the Priority Lien Agent, for the benefit of the Priority Lien Secured Parties, of the Liens on the Collateral securing the Priority Lien Obligations, and on all proceeds thereof whenever received, and such plan also provides that any Liens retained by, or granted to, the Second Lien Collateral Agent are only on property securing the Priority Lien Obligations and shall have the same relative priority with respect to the Collateral or other property, respectively, as provided in this Agreement with respect to the Collateral.  Except as provided herein, the Second Lien Secured Parties shall remain entitled to vote their claims in any such Insolvency or Liquidation Proceeding.
(i)    The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party, agrees that neither the Second Lien Collateral Agent nor any other Second Lien Secured Party shall seek relief, pursuant to Section 362(d) of the Bankruptcy Code or otherwise, from the automatic stay of Section 362(a) of the Bankruptcy Code or from any other stay in any Insolvency or Liquidation Proceeding in respect of the Collateral without the prior written consent of the Priority Lien Agent.
(j)    The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party, agrees that neither the Second Lien Collateral Agent nor any other Second Lien Secured Party shall oppose or seek to challenge any claim by the Priority Lien Agent or any other Priority Lien Secured Party for allowance or payment in any Insolvency or Liquidation Proceeding of Priority Lien Obligations consisting of post-petition interest, fees or expenses or cash collateralization of all letters of credit to the extent of the value of the Priority Liens (it being understood that such value will be determined without regard to the existence of the Second Liens on the Collateral) subject to the Priority Lien Cap.  Neither the Priority Lien Agent nor any other Priority Lien Secured Party shall oppose or seek to challenge any claim by the Second Lien Collateral Agent or any other Second Lien Secured Party for allowance or payment in any Insolvency or Liquidation Proceeding of Second Lien Obligations consisting of post-petition interest, fees or expenses to the extent of the value of the Second Liens on the Collateral; provided that if the Priority Lien Agent or any other Priority Lien Secured Party shall have made any claim for post-petition interest, 

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fees or expenses in respect of the Priority Lien Obligations, such claim (i) shall have been approved or (ii) will be approved contemporaneously with the approval of any such claim by the Second Lien Collateral Agent or any Second Lien Secured Party.
(k)    Without the express written consent of the Priority Lien Agent, none of the Second Lien Collateral Agent or any other Second Lien Secured Party shall (or shall join with or support any third party in opposing, objecting to or contesting, as the case may be), in any Insolvency or Liquidation Proceeding involving any Grantor, (i) oppose, object to or contest the determination of the extent of any Liens held by any of Priority Lien Secured Party or the value of any claims of any such holder under Section 506(a) of the Bankruptcy Code or (ii) oppose, object to or contest the payment to the Priority Lien Secured Party of interest, fees or expenses under Section 506(b) of the Bankruptcy Code subject to the Priority Lien Cap.
(l)    Notwithstanding anything to the contrary contained herein, if in any Insolvency or Liquidation Proceeding a determination is made that any Lien encumbering any Collateral is not enforceable for any reason, then the Second Lien Collateral Agent for itself and on behalf of each other Second Lien Secured Party agrees that, any distribution or recovery they may receive in respect of any Collateral shall be segregated and held in trust and forthwith paid over to the Priority Lien Agent for the benefit of the Priority Lien Secured Parties in the same form as received without recourse, representation or warranty (other than a representation of the Second Lien Collateral Agent that it has not otherwise sold, assigned, transferred or pledged any right, title or interest in and to such distribution or recovery) but with any necessary endorsements or as a court of competent jurisdiction may otherwise direct.  The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party hereby appoints the Priority Lien Agent, and any officer or agent of the Priority Lien Agent, with full power of substitution, the attorney-in-fact of each Second Lien Secured Party for the limited purpose of carrying out the provisions of this Section 4.02(l) and taking any action and executing any instrument that the Priority Lien Agent may deem necessary or advisable to accomplish the purposes of this Section 4.02(l), which appointment is irrevocable and coupled with an interest.
(m)    The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party, hereby agrees that the Priority Lien Agent shall have the exclusive right to credit bid the Priority Lien Obligations and further that none of the Second Lien Collateral Agent or any other Second Lien Secured Party shall (or shall join with or support any third party in opposing, objecting to or contesting, as the case may be) oppose, object to or contest such credit bid by the Priority Lien Agent.
(n)    Without the consent of the Priority Lien Agent in its sole discretion, the Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party agrees it will not file an involuntary bankruptcy claim or seek the appointment of an examiner or a trustee for the Borrower or any of its subsidiaries.
(o)    The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party waives any right to assert or enforce any claim under Section 506(c) or 552 of the Bankruptcy Code as against any Priority Lien Secured Party or any of the Collateral.
Section 4.03    Reinstatement.  If any Priority Lien Secured Party is required in any Insolvency or Liquidation Proceeding or otherwise to turn over or otherwise pay to the estate of any Grantor any amount (a “Recovery”) for any reason whatsoever, then the Priority Lien Obligations shall be reinstated to the extent of such Recovery and the Priority Lien Secured Parties shall be entitled to a reinstatement of Priority Lien Obligations with respect to all such recovered amounts.  The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party agrees that if, at any time, a Second Lien Secured Party 

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receives notice of any Recovery, the Second Lien Collateral Agent or any other Second Lien Secured Party, shall promptly pay over to the Priority Lien Agent any payment received by it and then in its possession or under its control in respect of any Collateral subject to any Priority Lien securing such Priority Lien Obligations and shall promptly turn any Collateral subject to any such Priority Lien then held by it over to the Priority Lien Agent, and the provisions set forth in this Agreement shall be reinstated as if such payment had not been made.  If this Agreement shall have been terminated prior to any such Recovery, this Agreement shall be reinstated in full force and effect, and such prior termination shall not diminish, release, discharge, impair or otherwise affect the obligations of the parties hereto from such date of reinstatement.  Any amounts received by the Second Lien Collateral Agent or any other Second Lien Secured Party and then in its possession or under its control on account of the Second Lien Obligations after the termination of this Agreement shall, in the event of a reinstatement of this Agreement pursuant to this Section 4.03, be held in trust for and paid over to the Priority Lien Agent for the benefit of the Priority Lien Secured Parties for application to the reinstated Priority Lien Obligations until the discharge thereof.  This Section 4.03 shall survive termination of this Agreement.
Section 4.04    Refinancings; Additional Second Lien Debt.
(c)    The Priority Lien Obligations and the Second Lien Obligations may be Replaced, by any Priority Substitute Credit Facility or Second Lien Substitute Facility, as the case may be, in each case, without notice to, or the consent of any Secured Party, all without affecting the Lien priorities provided for herein or the other provisions hereof; provided, that (i) the Priority Lien Agent and the Second Lien Collateral Agent shall receive on or prior to incurrence of a Priority Substitute Credit Facility or Second Lien Substitute Facility (A) an Officers’ Certificate from the Borrower stating that (I) the incurrence thereof is permitted by each applicable Secured Debt Document to be incurred and (II) the requirements of Section 4.06 have been satisfied, and (B) a Priority Confirmation Joinder from the holders or lenders of any indebtedness that Replaces the Priority Lien Obligations or the Second Lien Obligations (or an authorized agent, trustee or other representative on their behalf), (ii) the aggregate outstanding principal amount of the Priority Lien Obligations, after giving effect to such Priority Substitute Credit Facility, shall not exceed the Priority Lien Cap and (iii) on or before the date of such incurrence, such Priority Substitute Credit Facility or Second Lien Substitute Facility is designated by the Borrower, in an Officers’ Certificate delivered to the Priority Lien Agent and the Second Lien Collateral Agent, as “Priority Lien Debt” or “Second Lien Debt”, as applicable, for the purposes of the Secured Debt Documents and this Agreement; provided that no series of Secured Debt may be designated as more than one of Priority Lien Debt or Second Lien Debt.
(d)    The Borrower will be permitted to designate as an additional holder of Second Lien Obligations hereunder each Person who is, or who becomes, the registered holder of Second Lien Debt, incurred by the Borrower after the date of this Agreement in accordance with the terms of all applicable Secured Debt Documents.  The Borrower may effect such designation by delivering to the Priority Lien Agent and the Second Lien Collateral Agent each of the following:
(ii)    an Officers’ Certificate stating that the Borrower intends to incur Additional Second Lien Obligations which will be Second Lien Debt permitted to be incurred by each applicable Secured Debt Document and secured by a Second Lien, equally and ratably with all previously existing and future Second Lien Debt;
(iii)    an authorized agent, trustee or other representative on behalf of the holders or lenders of any Additional Second Lien Obligations must be designated as an additional holder of Secured Obligations hereunder and must, prior to such designation, sign and deliver on behalf of the holders or lenders of such Additional Second Lien Obligations a Priority Confirmation Joinder, and, to the extent necessary or 

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appropriate to facilitate such transaction, a new intercreditor agreement substantially similar to this Agreement, as in effect on the date hereof; and
(iv)    evidence that the Borrower has duly authorized, executed (if applicable) and recorded (or caused to be recorded) in each appropriate governmental office all relevant filings and recordations deemed necessary by the Borrower and the holder of such Additional Second Lien Obligations, or its Secured Debt Representative, to ensure that the Additional Second Lien Obligations are secured by the Collateral in accordance with the Second Lien Security Documents (provided that such filings and recordings may be authorized, executed and recorded following any incurrence on a post-closing basis if permitted by the Second Lien Representative for such Additional Second Lien Obligations).
Notwithstanding the foregoing, nothing in this Agreement will be construed to allow the Borrower or any other Grantor to incur additional indebtedness unless otherwise permitted by the terms of each applicable Secured Debt Document.
(e)    Each of the then-exiting Priority Lien Agent and the Second Lien Collateral Agent shall be authorized to execute and deliver such documents and agreements (including amendments or supplements to this Agreement) as such holders, lenders, agent, trustee or other representative may reasonably request to give effect to any such Replacement or any incurrence of Additional Second Lien Obligations, it being understood that the Priority Lien Agent and the Second Lien Collateral Agent or (if permitted by the terms of the applicable Secured Debt Documents) the Grantors, without the consent of any other Secured Party or (in the case of the Grantors) one or more Secured Debt Representatives, may amend, supplement, modify or restate this Agreement to the extent necessary or appropriate to facilitate such amendments or supplements to effect such Replacement or incurrence all at the expense of the Grantors.  Upon the consummation of such Replacement or incurrence and the execution and delivery of the documents and agreements contemplated in the preceding sentence, the holders or lenders of such indebtedness and any authorized agent, trustee or other representative thereof shall be entitled to the benefits of this Agreement.
Section 4.05    Amendments to Second Lien Documents.  Prior to the Discharge of Priority Lien Obligations, without the prior written consent of the Priority Lien Agent, no Second Lien Document may be amended, supplemented, restated or otherwise modified and/or refinanced or entered into to the extent such amendment, supplement, restatement or modification and/or refinancing, or the terms of any new Second Lien Document would (i) adversely affect the lien priority rights of the Priority Lien Secured Parties or the rights of the Priority Lien Secured Parties to receive payments owing pursuant to the Priority Lien Documents, (ii) except as otherwise provided for in this Agreement, add any Liens securing any additional Property as Collateral under the Second Lien Security Documents unless such additional Property is added as Collateral under the Priority Lien Security Documents, (iii) confer any additional rights on the Second Lien Collateral Agent or any other Second Lien Secured Party in a manner adverse to the Priority Lien Secured Parties, or (iv) contravene the provisions of this Agreement or the Priority Lien Documents.Legends
Section 4.06    Second Lien Secured Parties Rights as Unsecured Creditors; Judgment Lien Creditor.  Both before and during an Insolvency or Liquidation Proceeding, any of the Second Lien Secured Parties may take any actions and exercise any and all rights that would be available to a holder of unsecured claims; provided, however, that the Second Lien Secured Parties may not take any of the actions prohibited by Sections 3.01, 3.05(a), 4.01 or 4.02 or any other provisions in this Agreement; provided, further, that in the event that any of the Second Lien Secured Parties becomes a judgment lien creditor in respect of any Collateral as a result of its enforcement of its rights as an unsecured creditor with respect to the Second Lien Obligations, such judgment lien shall be subject to the terms of this Agreement for all purposes (including in relation to the Priority Lien Obligations) as the Second Liens are subject to this Agreement.

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Section 4.07    Postponement of Subrogation.  The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party, hereby agrees that no payment or distribution to any Priority Lien Secured Party pursuant to the provisions of this Agreement shall entitle any Second Lien Secured Party to exercise any rights of subrogation in respect thereof until the Discharge of Priority Lien Obligations shall have occurred.  Following the Discharge of Priority Lien Obligations, but subject to the reinstatement as provided in Section 4.03, each Priority Lien Secured Party will execute such documents, agreements, and instruments as any Second Lien Secured Party may reasonably request to evidence the transfer by subrogation to any such Person of an interest in the Priority Lien Obligations resulting from payments or distributions to such Priority Lien Secured Party by such Person, so long as all costs and expenses (including all reasonable legal fees and disbursements) incurred in connection therewith by such Priority Lien Secured Party are paid by such Person upon request for payment thereof.
Section 4.08    Acknowledgment by the Secured Debt Representatives.  Each of the Priority Lien Agent, for itself and on behalf of the other Priority Lien Secured Parties and the Second Lien Collateral Agent, for itself and on behalf of the other Second Lien Secured Parties, hereby acknowledges that this Agreement is a material inducement to enter into a business relationship, that each has relied on this Agreement to enter into the Priority Credit Agreement and the Original Second Lien Agreement, as applicable, and all documentation related thereto, and that each will continue to rely on this Agreement in their related future dealings.
ARTICLE V     
GRATUITOUS BAILMENT FOR PERFECTION OF CERTAIN SECURITY INTERESTS
Section 5.01    General.  Prior to the Discharge of Priority Lien Obligations, the Priority Lien Agent agrees that if it shall at any time hold a Priority Lien on any Collateral that can be perfected by the possession or control of such Collateral or of any Account in which such Collateral is held, and if such Collateral or any such Account is in fact in the possession or under the control of the Priority Lien Agent, the Priority Lien Agent will serve as gratuitous bailee for the Second Lien Collateral Agent for the sole purpose of perfecting the Second Lien of the Second Lien Collateral Agent on such Collateral.  It is agreed that the obligations of the Priority Lien Agent and the rights of the Second Lien Collateral Agent and the other Second Lien Secured Parties in connection with any such bailment arrangement will be in all respects subject to the provisions of Article II.  Notwithstanding anything to the contrary herein, the Priority Lien Agent will be deemed to make no representation as to the adequacy of the steps taken by it to perfect the Second Lien on any such Collateral and shall have no responsibility, duty, obligation or liability to the Second Lien Collateral Agent or any other Second Lien Secured Party or any other Person for such perfection or failure to perfect, it being understood that the sole purpose of this Article is to enable the Second Lien Secured Parties to obtain a perfected Second Lien in such Collateral to the extent, if any, that such perfection results from the possession or control of such Collateral or any such Account by the Priority Lien Agent.  The Priority Lien Agent acting pursuant to this Section 5.01 shall not have by reason of the Priority Lien Security Documents, the Second Lien Security Documents, this Agreement or any other document or theory, a fiduciary relationship in respect of any Priority Lien Secured Party, the Second Lien Collateral Agent or any Second Lien Secured Party.  Subject to Section 4.03, from and after the Discharge of Priority Lien Obligations, the Priority Lien Agent shall take all such actions in its power as shall reasonably be requested by the Second Lien Collateral Agent (at the sole cost and expense of the Grantors) to transfer possession or control of such Collateral or any such Account (in each case to the extent the Second Lien Collateral Agent has a Lien on such Collateral or Account after giving effect to any prior or concurrent releases of Liens) to the Second Lien Collateral Agent for the benefit of all Second Lien Secured Parties.

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Section 5.02    Deposit Accounts.  Prior to the Discharge of Priority Lien Obligations, to the extent that any Account is under the control of the Priority Lien Agent at any time, the Priority Lien Agent will act as gratuitous bailee for the Second Lien Collateral Agent for the purpose of perfecting the Liens of the Second Lien Secured Parties in such Accounts and the cash and other assets therein as provided in Section 5.01 (but will have no duty, responsibility or obligation to the Second Lien Secured Parties (including, without limitation, any duty, responsibility or obligation as to the maintenance of such control, the effect of such arrangement or the establishment of such perfection) except as set forth in the last sentence of this Section 5.02).  Unless the Second Liens on such Collateral shall have been or concurrently are released, after the occurrence of Discharge of Priority Lien Obligations, the Priority Lien Agent shall, at the request of the Second Lien Collateral Agent, cooperate with the Grantors and the Second Lien Collateral Agent (at the expense of the Grantors) in permitting control of any other Accounts to be transferred to the Second Lien Collateral Agent (or for other arrangements with respect to each such Accounts satisfactory to the Second Lien Collateral Agent to be made).
ARTICLE VI     
APPLICATION OF PROCEEDS; DETERMINATION OF AMOUNTS
Section 6.01    Application of Proceeds.  Prior to the Discharge of Priority Obligations, and regardless of whether an Insolvency or Liquidation Proceeding has been commenced, Collateral or Proceeds received in connection with the enforcement or exercise of any rights or remedies with respect to any portion of the Collateral will be applied:
(a)    first, to the payment in full in cash of all Priority Lien Obligations that are not Excess Priority Lien Obligations,
(b)    second, to the payment in full in cash of all Second Lien Obligations, 
(c)    third, to the payment in full in cash of all Excess Priority Lien Obligations, and
(d)    fourth, to the Borrower or as otherwise required by applicable law.
Section 6.02    Determination of Amounts.  Whenever a Secured Debt Representative shall be required, in connection with the exercise of its rights or the performance of its obligations hereunder, to determine the existence or amount of any Priority Lien Obligations (or the existence of any commitment to extend credit that would constitute Priority Lien Obligations), or Second Lien Obligations, or the existence of any Lien securing any such obligations, or the Collateral subject to any such Lien, it may request that such information be furnished to it in writing by the other Secured Debt Representative and shall be entitled to make such determination on the basis of the information so furnished; provided, however, that if a Secured Debt Representative shall fail or refuse reasonably promptly to provide the requested information, the requesting Secured Debt Representative shall be entitled to make any such determination by such method as it may, in the exercise of its good faith judgment, determine, including by reliance upon a certificate of the Borrower.  Each Secured Debt Representative may rely conclusively, and shall be fully protected in so relying, on any determination made by it in accordance with the provisions of the preceding sentence (or as otherwise directed by a court of competent jurisdiction) and shall have no liability to the Borrower or any of their subsidiaries, any Secured Party or any other Person as a result of such determination.
ARTICLE VII     
NO RELIANCE; NO LIABILITY; OBLIGATIONS ABSOLUTE; 
CONSENT OF GRANTORS; ETC.

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Section 7.01    No Reliance; Information.  The Priority Lien Secured Parties and the Second Lien Secured Parties shall have no duty to disclose to any Second Lien Secured Party or to any Priority Lien Secured Party, as the case may be, any information relating to the Borrower or any of the other Grantors, or any other circumstance bearing upon the risk of non-payment of any of the Priority Lien Obligations or the Second Lien Obligations, as the case may be, that is known or becomes known to any of them or any of their Affiliates.  In the event any Priority Lien Secured Party or any Second Lien Secured Party, in its sole discretion, undertakes at any time or from time to time to provide any such information to, any Second Lien Secured Party or any Priority Lien Secured Party, as the case may be, it shall be under no obligation (a) to make, and shall not make or be deemed to have made, any express or implied representation or warranty, including with respect to the accuracy, completeness, truthfulness or validity of the information so provided, (b) to provide any additional information or to provide any such information on any subsequent occasion or (c) to undertake any investigation.
Section 7.02    No Warranties or Liability.  
(f)    The Priority Lien Agent, for itself and on behalf of the other Priority Lien Secured Parties, acknowledges and agrees that, except for the representations and warranties set forth in Article VIII, neither the Second Lien Collateral Agent nor any other Second Lien Secured Party has made any express or implied representation or warranty, including with respect to the execution, validity, legality, completeness, collectability or enforceability of any of the Second Lien Documents, the ownership of any Collateral or the perfection or priority of any Liens thereon.
(g)    The Second Lien Collateral Agent, for itself and on behalf of the other Second Lien Secured Parties, acknowledges and agrees that, except for the representations and warranties set forth in Article VIII, neither the Priority Lien Agent nor any other Priority Lien Secured Party has made any express or implied representation or warranty, including with respect to the execution, validity, legality, completeness, collectability or enforceability of any of the Priority Lien Documents, the ownership of any Collateral or the perfection or priority of any Liens thereon.
(h)    The Priority Lien Agent and the other Priority Lien Secured Parties shall have no express or implied duty to the Second Lien Collateral Agent or any other Second Lien Secured Party and the Second Lien Collateral Agent and the other Second Lien Secured Parties shall have no express or implied duty to the Priority Lien Agent or any other Priority Lien Secured Party to act or refrain from acting in a manner which allows, or results in, the occurrence or continuance of a default or an event of default under any Priority Lien Document and any Second Lien Document (other than, in each case, this Agreement), regardless of any knowledge thereof which they may have or be charged with.
(i)    The Second Lien Collateral Agent, for itself and on behalf of each other Second Lien Secured Party hereby waives any claim that may be had against the Priority Lien Agent or any other Priority Lien Secured Party arising out of any actions which the Priority Lien Agent or such Priority Lien Secured Party takes or omits to take (including actions with respect to the creation, perfection or continuation of Liens on any Collateral, actions with respect to the foreclosure upon, sale, release or depreciation of, or failure to realize upon, any Collateral, and actions with respect to the collection of any claim for all or only part of the Priority Lien Obligations from any account debtor, guarantor or any other party) in accordance with this Agreement and the Priority Lien Documents or the valuation, use, protection or release of any security for such Priority Lien Obligations.
Section 7.03    Obligations Absolute.  The Lien priorities provided for herein and the respective rights, interests, agreements and obligations hereunder of the Priority Lien Agent and the other Priority Lien 

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Secured Parties and the Second Lien Collateral Agent and the other Second Lien Secured Parties shall remain in full force and effect irrespective of:
(a)    any lack of validity or enforceability of any Secured Debt Document;
(b)    any change in the time, place or manner of payment of, or in any other term of (including the Replacing of), all or any portion of the Priority Lien Obligations, it being specifically acknowledged that a portion of the Priority Lien Obligations consists or may consist of Indebtedness that is revolving in nature, and the amount thereof that may be outstanding at any time or from time to time may be increased or reduced and subsequently reborrowed;
(c)    any amendment, waiver or other modification, whether by course of conduct or otherwise, of any Secured Debt Document;
(d)    the securing of any Priority Lien Obligations or Second Lien Obligations with any additional collateral or guarantees, or any exchange, release, voiding, avoidance or non-perfection of any security interest in any Collateral or any other collateral or any release of any guarantee securing any Priority Lien Obligations or Second Lien Obligations;
(e)    the commencement of any Insolvency or Liquidation Proceeding in respect of the Borrower or any other Grantor; or
(f)    any other circumstances that otherwise might constitute a defense available to, or a discharge of, the Borrower or any other Grantor in respect of the Priority Lien Obligations or the Second Lien Obligations.
Section 7.04    Grantors Consent.  Each Grantor hereby consents to the provisions of this Agreement and the intercreditor arrangements provided for herein and agrees that the obligations of the Grantors under the Secured Debt Documents will in no way be diminished or otherwise affected by such provisions or arrangements (except as expressly provided herein).
ARTICLE VIII     
REPRESENTATIONS AND WARRANTIES
Section 8.01    Representations and Warranties of Each Party.  Each party hereto represents and warrants to the other parties hereto as follows:
(j)    Such party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has all requisite power and authority to enter into and perform its obligations under this Agreement.
(k)    This Agreement has been duly executed and delivered by such party.
(l)    The execution, delivery and performance by such party of this Agreement (i) do not require any consent or approval of, registration or filing with or any other action by any Governmental Authority of which the failure to obtain could reasonably be expected to have a Material Adverse Effect (as defined in the Priority Credit Agreement), (ii) will not violate any applicable law or regulation or any order of any Governmental Authority or any indenture, agreement or other instrument binding upon such party which could reasonably be expected to have a Material Adverse Effect and (iii) will not violate the charter, by-laws or other organizational documents of such party.

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Section 8.02    Representations and Warranties of Each Representative.  Each of the Priority Lien Agent and the Second Lien Collateral Agent represents and warrants to the other parties hereto that it is authorized under the Priority Credit Agreement and the Original Second Lien Agreement, as the case may be, to enter into this Agreement.
ARTICLE IX     
MISCELLANEOUS
Section 9.01    Notices.  All notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:
(g)    if to the Priority Lien Agent, to it at: 
[____________________]
[____________________]
Fax: ([___]) [____________]
Attention: [______________]

(h)    if to the Second Lien Collateral Agent, to it at: 
[___________________]
[___________________]
Fax: ([___]) [___________]
Attention: [____________]
(i)    if to any other Secured Debt Representative, to such address as specified in the Priority Confirmation Joinder.
Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.  All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt (if a Business Day) and on the next Business Day thereafter (in all other cases) if delivered by hand or overnight courier service or sent by telecopy or on the date five Business Days after dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed (properly addressed) to such party as provided in this Section 9.01 or in accordance with the latest unrevoked direction from such party given in accordance with this Section 9.01.  As agreed to in writing among the Borrower, the Priority Lien Agent and the Second Lien Collateral Agent from time to time, notices and other communications may also be delivered by e-mail to the e-mail address of a representative of the applicable person provided from time to time by such person.
Section 9.02    Waivers; Amendment.  (a) No failure or delay on the part of any party hereto in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the parties hereto are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement or consent to any departure by any party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section 9.02, and then such waiver or consent shall be effective only in the specific instance and for the 

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purpose for which given.  No notice or demand on any party hereto in any case shall entitle such party to any other or further notice or demand in similar or other circumstances.
(b)    Neither this Agreement nor any provision hereof may be terminated, waived, amended or modified except pursuant to an agreement or agreements in writing entered into by each Secured Debt Representative; provided, however, that this Agreement may be amended from time to time as provided in Section 4.04.  Any amendment of this Agreement that is proposed to be effected without the consent of a Secured Debt Representative as permitted by the proviso to the preceding sentence shall be submitted to such Secured Debt Representative for its review at least 5 Business Days prior to the proposed effectiveness of such amendment.
Section 9.03    Actions Upon Breach; Specific Performance.  (a) Prior to the Discharge of Priority Lien Obligations, if any Second Lien Secured Party, contrary to this Agreement, commences or participates in any action or proceeding against any Grantor or the Collateral, such Grantor, with the prior written consent of the Priority Lien Agent, may interpose as a defense or dilatory plea the making of this Agreement, and any Priority Lien Secured Party may intervene and interpose such defense or plea in its or their name or in the name of such Grantor.
(b)    Prior to the Discharge of Priority Lien Obligations, should any Second Lien Secured Party, contrary to this Agreement, in any way take, attempt to or threaten to take any action with respect to the Collateral (including any attempt to realize upon or enforce any remedy with respect to this Agreement), or take any other action in violation of this Agreement or fail to take any action required by this Agreement, the Priority Lien Agent or any other Priority Lien Secured Party (in its own name or in the name of the relevant Grantor) or the relevant Grantor, with the prior written consent of the Priority Lien Agent, (A) may obtain relief against such Second Lien Secured Party by injunction, specific performance and/or other appropriate equitable relief, it being understood and agreed by the Second Lien Collateral Agent on behalf of each Second Lien Secured Party that (I) the Priority Lien Secured Parties’ damages from its actions may at that time be difficult to ascertain and may be irreparable, and (II) each Second Lien Secured Party waives any defense that the Grantors and/or the Priority Lien Secured Parties cannot demonstrate damage and/or be made whole by the awarding of damages, and (B) shall be entitled to damages, as well as reimbursement for all reasonable and documented costs and expenses incurred in connection with any action to enforce the provisions of this Agreement.
Section 9.04    Parties in Interest.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, as well as the other Secured Parties, all of whom are intended to be bound by, and to be third party beneficiaries of, this Agreement.
Section 9.05    Survival of Agreement.  All covenants, agreements, representations and warranties made by any party in this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement.
Section 9.06    Counterparts.  This Agreement may be executed in counterparts, each of which shall constitute an original but all of which when taken together shall constitute a single contract.  Delivery of an executed signature page to this Agreement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Agreement.
Section 9.07    Severability.  Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate 

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such provision in any other jurisdiction.  The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
Section 9.08    Governing Law; Jurisdiction; Consent to Service of Process.  (a) THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES (BUT GIVING EFFECT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATION LAW).
(b)    Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement shall affect any right that any party hereto may otherwise have to bring any action or proceeding relating to this Agreement in the courts of any jurisdiction.
(c)    Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in paragraph (b) of this Section 9.08.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(d)    Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.
Section 9.09    WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT.  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
Section 9.10    Headings.  Article, Section and Annex headings used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement.
Section 9.11    Conflicts.  In the event of any conflict or inconsistency between the provisions of this Agreement and the provisions of any Secured Debt Documents, the provisions of this Agreement shall 

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control; [provided, however, that if any of the provisions of the Second Lien Security Documents limit, qualify or conflict with the duties imposed by the provisions of the TIA, in each case, the TIA shall control].
Section 9.12    Provisions Solely to Define Relative Rights.  The provisions of this Agreement are and are intended solely for the purpose of defining the distinct and separate relative rights of the Priority Lien Secured Parties and the Second Lien Secured Parties.  None of the Borrower, any other Grantor or any other creditor thereof shall have any rights or obligations hereunder, except as expressly provided in this Agreement (provided that nothing in this Agreement (other than Sections 4.01, 4.02, 4.04, or 4.05) is intended to or will amend, waive or otherwise modify the provisions of the Priority Credit Agreement or the Original Second Lien Agreement, as applicable), and except as expressly provided in this Agreement neither the Borrower nor any other Grantor may rely on the terms hereof (other than Sections 4.01, 4.02, 4.04, or 4.05, Article V, Article VII and Article IX).  Nothing in this Agreement is intended to or shall impair the obligations of the Borrower or any other Grantor, which are absolute and unconditional, to pay the Obligations under the Secured Debt Documents as and when the same shall become due and payable in accordance with their terms.  Notwithstanding anything to the contrary herein or in any Secured Debt Document, the Grantors shall not be required to act or refrain from acting pursuant to this Agreement, any Priority Lien Document or any Second Lien Document with respect to any Collateral in any manner that would cause a default under any Priority Lien Document.
Section 9.13    Certain Terms Concerning the Second Lien Collateral Agent.  The Second Lien Collateral Agent is executing and delivering this Agreement solely in its capacity as such and pursuant to direction set forth in the Second Lien Collateral Agency Agreement; and in so doing, the Second Lien Collateral Agent shall not be responsible for the terms or sufficiency of this Agreement for any purpose.  The Second Lien Collateral Agent shall have no duties or obligations under or pursuant to this Agreement other than such duties and obligations as may be expressly set forth in this Agreement as duties and obligations on its part to be performed or observed.  In entering into this Agreement, or in taking (or forbearing from) any action under or pursuant to this Agreement, the Second Lien Collateral Agent shall have and be protected by all of the rights, immunities, indemnities and other protections granted to it under the Original Second Lien Agreement and the other Second Lien Documents (including without limitation [____________] of the [Second Lien Collateral Agency Agreement]).
Section 9.14    Certain Terms Concerning the Priority Lien Agent and the Second Lien Collateral Agent.  Neither of the Priority Lien Agent nor the Second Lien Collateral Agent shall have any liability or responsibility for the actions or omissions of any other Secured Party, or for any other Secured Party’s compliance with (or failure to comply with) the terms of this Agreement.  None of the Priority Lien Agent or the Second Lien Collateral Agent shall have individual liability to any Person if it shall mistakenly pay over or distribute to any Secured Party (or the Borrower) any amounts in violation of the terms of this Agreement, so long as the Priority Lien Agent or the Second Lien Collateral Agent, as the case may be, is acting in good faith.  Each party hereto hereby acknowledges and agrees that each of the Priority Lien Agent and the Second Lien Collateral Agent is entering into this Agreement solely in its capacity under the Priority Lien Documents and the Second Lien Documents, respectively, and not in its individual capacity.  (a) The Priority Lien Agent shall not be deemed to owe any fiduciary duty to the Second Lien Collateral Agent or any other Second Lien Representative or any other Second Lien Secured Party and (b) the Second Lien Collateral Agent shall not be deemed to owe any fiduciary duty to the Priority Lien Agent or any other Priority Lien Secured Party.
Section 9.15    Authorization of Secured Agents.  By accepting the benefits of this Agreement and the other Priority Lien Security Documents, each Priority Lien Secured Party authorizes the Priority Lien Agent to enter into this Agreement and to act on its behalf as collateral agent hereunder and in connection 

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herewith.  By accepting the benefits of this Agreement and the other Second Lien Security Documents, each Second Lien Secured Party authorizes the Second Lien Collateral Agent to enter into this Agreement and to act on its behalf as collateral agent hereunder and in connection herewith.
Section 9.16    Further Assurances.  Each of the Priority Lien Agent, for itself and on behalf of the other Priority Lien Secured Party and the Second Lien Collateral Agent, for itself and on behalf of the other Second Lien Secured Parties, and each Grantor party hereto, for itself and on behalf of its subsidiaries, agrees that it will execute, or will cause to be executed, any and all further documents, agreements and instruments, and take all such further actions, as may be required under any applicable law, or which the Priority Lien Agent or the Second Lien Collateral Agent may reasonably request, to effectuate the terms of this Agreement, including the relative Lien priorities provided for herein.
Section 9.17    Relationship of Secured Parties.  Nothing set forth herein shall create or evidence a joint venture, partnership or an agency or fiduciary relationship among the Secured Parties.  None of the Secured Parties nor any of their respective directors, officers, agents or employees shall be responsible to any other Secured Party or to any other Person for any Grantor’s solvency, financial condition or ability to repay the Priority Lien Obligations or the Second Lien Obligations, or for statements of any Grantor, oral or written, or for the validity, sufficiency or enforceability of the Priority Lien Documents or the Second Lien Documents, or any security interests granted by any Grantor to any Secured Party in connection therewith.  Each Secured Party has entered into its respective financing agreements with the Grantors based upon its own independent investigation, and neither of the Priority Lien Agent nor the Second Lien Collateral Agent makes any warranty or representation to the other Secured Debt Representatives or the Secured Parties for which it acts as agent nor does it rely upon any representation of the other agents or the Secured Parties for which it acts as agent with respect to matters identified or referred to in this Agreement.
[SIGNATURES BEGIN NEXT PAGE]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.
	
		
	 
	JPMORGAN CHASE BANK, N.A., as Priority Lien Agent

	 
	 

	 
	 

	 
	By:   

	 
	Name:   

	 
	Title:   

Signature Page 
Intercreditor Agreement

            

	
		
	 
	[______________________________],
as Second Lien Collateral Agent

	 
	 

	 
	 

	 
	By:   

	 
	Name:   

	 
	Title:   

Signature Page 
Intercreditor Agreement

            

	
		
	 
	ACKNOWLEDGED AND AGREED AS OF THE DATE FIRST ABOVE WRITTEN:

	 
	 

	 
	CALIFORNIA RESOURCES CORPORATION

	 
	 

	 
	 

	 
	By:   

	 
	Name:   

	 
	Title:   

	 
	 

	 
	 

	 
	[OTHER GUARANTORS]

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	

	 
	By:   
Name:   
Title:      [__________________], for          and on behalf of each of the          foregoing Guarantors

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

Signature Page 
Intercreditor Agreement

            

ANNEX I
Provision for any Additional Second Lien Credit Facility and the Second Lien Documents
Reference is made to the Intercreditor Agreement, dated as of [ ], between JPMORGAN CHASE BANK, N.A., as Priority Lien Agent (as defined therein), and [ ], as Second Lien Collateral Agent (as defined therein) and acknowledged and agreed by California Resources Corporation and certain of its subsidiaries (as amended, supplemented, amended and restated or otherwise modified and in effect from time to time, the “Intercreditor Agreement”).  Each holder of Additional Second Lien Obligations (as defined therein), by its acceptance of such Additional Second Lien Obligations (i) consents to the subordination of Liens provided for in the Intercreditor Agreement, (ii) agrees that it will be bound by, and will take no actions contrary to, the provisions of the Intercreditor Agreement and (iii) authorizes and instructs the Second Lien Collateral Agent (as defined therein) on behalf of each Second Lien Secured Party (as defined therein) to enter into the Intercreditor Agreement as Second Lien Collateral Agent on behalf of such Second Lien Secured Parties.  The foregoing provisions are intended as an inducement to the lenders under the Priority Lien Documents (as defined in the Intercreditor Agreement) to extend credit to the Borrower and such lenders are intended third party beneficiaries of such provisions and the provisions of the Intercreditor Agreement.
Provision for all Second Lien Security Documents that Grant a Security Interest in Collateral
Reference is made to the Intercreditor Agreement, dated as of [____________], 201[_], between JPMORGAN CHASE BANK, N.A., as Priority Lien Agent (as defined therein), and [________________________], as Second Lien Collateral Agent (as defined therein) (the “Intercreditor Agreement”).  Each Person that is secured hereunder, by accepting the benefits of the security provided hereby, (i) consents (or is deemed to consent), to the subordination of Liens provided for in the Intercreditor Agreement, (ii) agrees (or is deemed to agree) that it will be bound by, and will take no actions contrary to, the provisions of the Intercreditor Agreement, (iii) authorizes (or is deemed to authorize) the Second Lien Collateral Agent on behalf of such Person to enter into, and perform under, the Intercreditor Agreement and (iv) acknowledges (or is deemed to acknowledge) that a copy of the Intercreditor Agreement was delivered, or made available, to such Person.
Notwithstanding any other provision contained herein, this Agreement, the Liens created hereby and the rights, remedies, duties and obligations provided for herein are subject in all respects to the provisions of the Intercreditor Agreement and, to the extent provided therein, the applicable Security Documents (as defined in the Intercreditor Agreement).  In the event of any conflict or inconsistency between the provisions of this Agreement and the Intercreditor Agreement, the provisions of the Intercreditor Agreement shall control.

Annex I - 1
Active.18117613.5

            

EXHIBIT A 
to Intercreditor Agreement
[FORM OF] 
PRIORITY CONFIRMATION JOINDER
Reference is made to the Intercreditor Agreement, dated as of [__________], 201[_] (as amended, supplemented, amended and restated or otherwise modified and in effect from time to time, the “Intercreditor Agreement”) between JPMORGAN CHASE BANK, N.A., as Priority Lien Agent for the Priority Lien Secured Parties (as defined therein), and [___________________], as Second Lien Collateral Agent for the Second Lien Secured Parties (as defined therein).
Capitalized terms used but not otherwise defined herein shall have the meaning set forth in the Intercreditor Agreement.  This Priority Confirmation Joinder is being executed and delivered pursuant to Section 4.04[(a)][(b)] of the Intercreditor Agreement as a condition precedent to the debt for which the undersigned is acting as representative being entitled to the rights and obligations of being [Priority/Second/Additional Second] Obligations under the Intercreditor Agreement.
1.  Joinder.  The undersigned, [_______________], a [_______________], (the “New Representative”) as [trustee] [collateral trustee] [administrative agent] [collateral agent] under that certain [describe applicable indenture, credit agreement or other document governing the Priority Substitute Credit Facility, Second Lien Substitute Facility or Additional Second Lien Credit Facility] hereby:
(a)    represents that the New Representative has been authorized to become a party to the Intercreditor Agreement on behalf of the [Priority Lien Secured Parties under a Priority Substitute Credit Facility] [Second Lien Secured Parties under the Second Lien Substitute Facility] Additional Second Lien Secured Parties under the Additional Second Lien Credit Facility] as [a Priority Lien Agent under a Priority Substitute Credit Facility] [a Second Lien Agent under a Second Lien Substitute Facility] [Second Lien Representative] under the Intercreditor Agreement for all purposes thereof on the terms set forth therein, and to be bound by the terms of the Intercreditor Agreement as fully as if the undersigned had executed and delivered the Intercreditor Agreement as of the date thereof; and
(b)    agrees that its address for receiving notices pursuant to the Intercreditor Agreement shall be as follows:
[Address];
2.    Priority Confirmation.
[Option A: to be used if additional debt constitutes replacement Priority Debt] The undersigned New Representative, on behalf of itself and each Priority Lien Secured Party for which the undersigned is acting as Priority Lien Agent hereby agrees, for the benefit of all Secured Parties and each future Secured Debt Representative, and as a condition to being treated as Priority Lien Obligations under the Intercreditor Agreement, that the New Representative is bound by the provisions of the Intercreditor Agreement, including the provisions relating to the ranking of Priority Liens. [or]
[Option B: to be used if additional debt constitutes Second Lien Substitute Facility or an Additional Second Lien Credit Facility] The undersigned New Representative, on behalf of itself and each holder of Obligations in respect of the Series of Second Lien Debt [that constitutes Second Lien Substitute Facility] for which the undersigned is acting as [Second Lien Representative] [Second Lien Collateral Agent] hereby agrees, for the benefit of all Secured Parties and each future Secured Debt Representative, and as a condition to being treated as Secured Obligations under the Intercreditor Agreement, that:

Exhibit A - 1
Active.18117613.5

            

(a)    all Second Lien Obligations will be and are secured equally and ratably by all Second Liens at any time granted by the Borrower or any other Grantor to secure any Obligations in respect of such Second Lien Debt, whether or not upon property otherwise constituting Collateral for such Second Lien Debt, and that all such Second Liens will be enforceable by the Second Lien Collateral Agent with respect to such Second Lien Debt for the benefit of all Second Lien Secured Parties equally and ratably;
(b)    the New Representative and each holder of Obligations in respect of the Series of Second Lien Debt for which the undersigned is acting as [Second Lien Representative] [Second Lien Agent] are bound by the provisions of the Intercreditor Agreement, including the provisions relating to the ranking of Priority Liens and Second Liens and the order of application of proceeds from enforcement of Priority Liens and Second Liens; and
(c)    the New Representative and each holder of Obligations in respect of the Series of Second Lien Debt for which the undersigned is acting as [Second Lien Representative] [Second Lien Agent] appoints the Second Lien Collateral Agent and consents to the terms of the Intercreditor Agreement and the performance by the Second Lien Collateral Agent of, and directs the Second Lien Collateral Agent to perform, its obligations under the Intercreditor Agreement and the Second Lien Collateral Agency Agreement, together with all such powers as are reasonably incidental thereto.
3.    Full Force and Effect of Intercreditor Agreement.  Except as expressly supplemented hereby, the Intercreditor Agreement shall remain in full force and effect.
4.    Governing Law and Miscellaneous Provisions.  The provisions of Article IX of the Intercreditor Agreement will apply with like effect to this Priority Confirmation Joinder.
5.    Expenses.  The Borrower agree to reimburse each Secured Debt Representative for its reasonable out of pocket expenses in connection with this Priority Confirmation Joinder, including the reasonable fees, other charges and disbursements of counsel.

Exhibit A - 2
Active.18117613.5

            

IN WITNESS WHEREOF, the parties hereto have caused this Priority Confirmation Joinder to be executed by their respective officers or representatives as of [______________], 20[_].
	
		
	 
	[insert name of New Representative]

	 
	 

	 
	 

	 
	By:   

	 
	Name:   

	 
	Title:   

The Priority Lien Agent hereby acknowledges receipt of this Priority Confirmation Joinder:
	
		
	 
	 

	 
	as Priority Lien Agent

	 
	 

	 
	By:   

	 
	Name:   

	 
	Title:   

The Second Lien Collateral Agent hereby acknowledges receipt of this Priority Confirmation Joinder:
	
		
	 
	 

	 
	as Second Lien Collateral Agent

	 
	 

	 
	By:   

	 
	Name:   

	 
	Title:   

Exhibit A - 3
Active.18117613.5

            

	
		
	 
	Acknowledged and Agreed to by:

	 
	 

	 
	CALIFORNIA RESOURCES CORPORATION, as Borrower

	 
	 

	 
	 

	 
	By:   

	 
	Name:   

	 
	Title:   

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

Exhibit A - 4
Active.18117613.5

            

EXHIBIT B 
to Intercreditor Agreement
SECURITY DOCUMENTS
PART A.
List of Priority Lien Security Documents
1.    
2.    
3.    
PART B.
List of Second Lien Security Documents
1.    
2.    
3.    

Exhibit B - 1
Active.18117613.5

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