Document:

Exhibit 4.13

Exhibit 4.13

Certain information has been omitted from the following agreement because such information is both not material to investors and would be competitively harmful to the registrant. Such omitted information has been marked “[***]”

DEVELOPMENT AGREEMENT

THIS DEVELOPMENT AGREEMENT (this “Agreement”) is made as of February 13, 2019 (the “Effective Date”) among COMERCIALIZADORA MEXMAKEN S.A. DE C.V., a company organized and existing under the laws of Mexico (the “Developer”) and [***] , a company organized and existing under the laws of Mexico (“[***]”). Each of Developer and [***] may hereafter be referred to as a “Party”, and collectively, as the “Parties”. Capitalized terms used herein without definition shall have the meanings assigned to them in the Purchase Agreement.

W I T N E S S E T H:

WHEREAS, Tower Three SAS (an affiliate of Developer) (“T-Three”) and [***] (“[***] Colombia”) entered into an Asset Purchase Agreement dated as of November 21, 2018 (as amended, the “Colombia Purchase Agreement”) pursuant to which Developer agreed to sell and assign to [***] Colombia, and [***] Colombia agreed to purchase and assume from T-Three the Sites (as defined in the Colombia Purchase Agreement), in each case as more fully described and upon the terms and subject to the conditions set forth herein;

WHEREAS, Developer is engaged in the business of constructing and operating telecommunications towers in Mexico (the “Territory”); and

WHEREAS, [***] desires to purchase from Developer, and Developer desires to sell to [***] certain Towers and their related Tower Assets that Developer intends to develop in the Territory (each a “Development Tower”), on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the parties hereto agree as follows:

1. Agreement to Purchase and Sell; Minimum Number of Development Towers; Term of Agreement.

(a) For a period of [***] commencing as of the Effective Date (the “Term”), and subject to the satisfaction of all of the terms and conditions of this Agreement, Developer agrees to offer up to [***] Development Towers (in the aggregate together with the Colombia Development Towers and the Argentina Development Towers) for sale to [***] in accordance with the procedure described in Section 2 that meet the Minimum Conditions set forth in Exhibit A, and free and clear of all Liens except Permitted Liens. In the event that [***] (or [***] Colombia or [***]’s applicable affiliate in connection with the Colombia Development Towers or the Argentina Development Towers) approves the development of [***] Development Towers (in the aggregate together with the Colombia Development Towers and the Argentina Development Towers), [***] and Developer (or their respective affiliates) could mutually agree to amend this Agreement, the Colombia Development Agreement, and/or the Argentina Development Agreement to contemplate the development and acquisition of an additional [***] Towers.

(b) The Term may be extended by mutual agreement of the Parties to be confirmed in writing prior to expiration of the Term then in effect. For the avoidance of doubt, if [***] has approved its intention to purchase any Development Tower during the Term, the terms and conditions of this Agreement shall continue to apply through Closing (and any related post-Closing obligations) related to such Development Tower(s) but neither Party shall have continuing obligations related to any potential Development Tower(s) not identified by Developer and/or approved by [***].

2. Identification; Purchase Price; Payments; Closing.

(a) (i) Identification and Acceptance of Sites for Development Towers. During the Term, Developer shall identify each communications site (each a “Site”) on which it proposes to develop a future Tower in the Territory and which, in Developer’s sole discretion, it wishes to present to [***], by delivering to [***] detailed information in a form of a Search Ring or Site Acquisition Map in the form acceptable to the prospective Tenant. [***] shall have ten (10) Business Days following receipt from Developer of a Search Ring or Site Acquisition Map to determine, in its sole discretion, whether or not to accept the Site as a “Development Tower” for the sale to [***] under the terms and conditions of this Agreement and the Asset Purchase Agreement. Any failure to respond by [***] during such ten (10) Business Day period shall be deemed to be a rejection of the Site as a Development Tower. Notwithstanding any other provision herein, only those sites presented by Developer to [***] and accepted by [***] in accordance with this Section 2(a)(i) shall be “Development Towers” for purposes of this Agreement.

(ii) Ground Lease Option or Usufruct. For each Site that is accepted as a “Development Tower” pursuant to Section 2(a)(i), Developer shall provide to [***], as soon as practicable, the proposed Ground Lease Option applicable to such Site substantially in the form set forth as Exhibit 2(a)(ii) hereto. If the terms of the proposed Ground Lease Option are satisfactory to [***], [***] will purchase the Development Tower (and the related Tower Assets and Site) subject to the terms and conditions of this Agreement and the applicable Asset Purchase Agreement. If the terms of the proposed Ground Lease Option are not satisfactory to [***], [***] shall have the right to reject such Site as a Development Tower upon written notice to Developer within five (5) Business Days and upon receipt of such written notice, neither Party shall have any further obligations to the other Party under this Agreement with respect to such Site and such Site shall not be deemed to be a Development Tower for purposes of this Agreement (the failure of [***] to deliver written notice within such time frame shall be deemed [***]’s acceptance of the Ground Lease Option set forth therein).

(iii) ROFO. During the Term, Developer shall not sell, transfer or otherwise convey, or agree to sell, transfer or otherwise convey, except in connection with a joint venture or other financing arrangement to which Developer is a party, all or any portion of a tower (including the related Tower Assets and Site if such tower were a “Development Tower” or an “Acquisition Tower” under this Agreement), or any group of towers or any interest therein, located in the Territory, to any Person unless Developer has first offered to sell, transfer and convey the tower(s) (including the related Tower Assets and Site) to [***] by written notice (the “Sale Notice”). Any tower previously tendered to and rejected

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by [***] as described in this Agreement (each a “Rejected Tower”) shall be exempt from the terms of this Section 2(a)(iii), provided that such exemption shall not apply if Developer proposes to include any Rejected Tower in an offer to any Person that combines such Rejected Tower with any other tower or group of towers that is subject to this Section 8 (the “Renewed ROFO”). The Sale Notice shall include (A) a description of the proposed tower(s) and (B) the price and other terms and conditions on which it is willing to sell such tower(s). Upon receipt by [***] of the Sale Notice and continuing for twenty (20) days thereafter (the “Exercise Period”), [***] shall have the right, exercisable by giving written notice (the “Exercise Notice”) to Developer, to purchase all (but not less than all, except any tower(s) for which Defects are identified during due diligence) of the tower(s) (including the related Tower Assets and Sites) described in the Sale Notice from Developer on terms and conditions set forth in the Sale Notice. In the event [***] purchases the tower(s) pursuant to this Section 2(a)(iii), the Parties shall negotiate an Asset Purchase Agreement containing at least the same terms and conditions contemplated in the Sale Notice. Unless the Parties otherwise agree, the closing of any purchase of tower(s) shall occur five (5) Business Days after all third-party consents (including governmental approvals) are obtained. As to any tower(s) [***] does not exercise its right to purchase, Developer shall be free, during the [***] period following the Sale Notice (together with any reasonable and bona fide extensions of time required to complete the closing of an agreement made binding during such [***] period), to sell and convey the tower(s) to a bona fide third-party upon the same material terms and conditions available to [***] set forth in the Sale Notice. Any towers (and related Tower Assets and Sites) not sold within such [***] period shall continue to be subject to the requirements of this Section 2(a)(iii).

(b) Purchase Price. The purchase price for each Development Tower that meets the Minimum Conditions (the “Purchase Price”) shall equal the sum of (A) the Allocable Purchase Price, plus (B) any Earn-Out Amounts, if any, payable to Developer in accordance with this Section 2(b). At the Closing of each Development Tower, [***] shall pay an amount (the “Closing Date Payment”) equal to the Allocable Purchase Price minus the total amount of Milestone Payments paid in accordance with Section 2(c) of this Agreement (it being understood that the Fifth Milestone Payment shall not be required to be paid to the Developer until the Closing in accordance with Section 2(c)). The Purchase Price of each Development Tower shall be paid by wire transfer in immediately available funds pursuant to Developer’s wire instructions. Subject to the satisfaction of all terms and conditions of this Agreement and the Asset Purchase Agreement, the closing (each a “Closing”) of the purchase of a Development Tower will occur on the later of thirty (30) days after (i) the date on which Developer delivers notice to [***] with reasonable supporting documentation that the Fifth Milestone was achieved, or (ii) the date that all Minimum Conditions have been satisfied or previously waived by [***] in writing. The date of a Closing shall be referred to as a “Closing Date.”

(c) (b) Earn-Out Amount Payment. With respect to each Eligible Lease, [***] agrees to pay Developer on the 5th day following the Eligible Lease Commencement Date applicable to such Eligible Lease (the “Earn-Out Payment Date”), the applicable Earn-Out Amount, if any, applicable to such Eligible Lease. Any Earn-Out Amount shall be paid by wire transfer in immediately available funds pursuant to Developer’s wire instructions.

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(d) Milestone Purchase Price Payments. Subject to the satisfaction of all of the terms and conditions of this Agreement, (i) within five (5) Business Days after the date on which Developer delivers notice to [***] with reasonable supporting documentation that (A) a Milestone with respect to any Development Tower is first satisfied and (B) any then applicable Minimum Conditions have been satisfied (each such date being referred to as a “Milestone Payment Date”), [***] shall pay to Developer the applicable Milestone Payments below, and (ii) at the Closing, [***] shall pay Developer (in accordance with the Asset Purchase Agreement) the Milestone Payment applicable to the Fifth Milestone. Each Milestone Payment shall be paid by wire transfer in immediately available funds pursuant to Developer’s wire instructions.

		
	Milestones	Milestone Payments
	A copy of the signed Ground Lease, Ground Lease Option or Usufruct and a copy of the title search report from the Public Registry applicable to such Site evidencing no liens or encumbrances on the Tower Assets except for Permitted Liens.
Receipt of evidence of application of all Applicable Permits for construction and operation of Site.
(“First Milestone”)	25% of the estimated Allocable Purchase Price.
	Receipt of (i) Site constructed/vertical support, (ii) unconditional acceptance of the applicable Development Tower by carrier and (iii) Site folder.
(“Second Milestone”)	25% of the estimated Allocable Purchase Price.
	Receipt of fully executed site lease agreement with carrier in a form approved by [***].
(“Third Milestone”)	22.5% of the estimated Allocable Purchase Price.
	Receipt of all Applicable Permits for construction and operation of Site.
(“Fourth Milestone”)	17.5% of the estimated Allocable Purchase Price.

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	Receipt of all third party consents from carrier/landlords and assignment of all Tenant Leases to [***] along with first rent payment received by [***].
(“Fifth Milestone”)	10.0%% of the estimated Allocable Purchase Price.

(e) Sites Not Meeting Minimum Conditions or Delayed by Excusable Events.

(i) In the event that a Site does not meet all of the Minimum Conditions after the completion of the Development Tower (each, a “Defect Site”), [***] shall be under no obligation to pay any pending Milestone Payment with respect to such Defect Site until such time as all of the Minimum Conditions have been met. During the [***] period following completion of the Development Tower on such Defect Site (the “Cure Period”), Developer shall use commercially reasonable efforts to cause such Defect Site to meet all Minimum Conditions, which may include Developer expending reasonable sums, at the sole cost of Developer, and time to effectuate a solution. If such Defect Site does not meet the Minimum Conditions within the Cure Period, [***] and Developer’s shall agree on one of the following remedies: (i) Developer shall reimburse [***] for all Milestone Payments previously paid to Developer with respect to such Defect Site (which shall be paid within fifteen (15) Business Days after requested by [***]), (ii) [***] shall offset any Milestone Payments previously paid to Developer with respect to such Defect Site against Milestone Payments due and payable with respect to a Development Tower that is not a Defect Site or (iii) Developer shall replace the Tower Cash Flow projected for the Defect Site with Tower Cash Flow from a Site with a comparable completed Tower from Developer’s portfolio, all on terms and conditions reasonably acceptable to [***] and Developer. Developer shall pay to [***] all such amounts within fifteen (15) Business Days after request by [***]. If [***] and Developer fail to mutually agree on one of the foregoing remedies within thirty (30) days after the expiration of the Cure Period, [***] may, in its sole discretion, elect either (ii) or (iii) of the foregoing remedies. For the avoidance of doubt, in case Developer performs any of the actions set forth in clauses (i) through (iii) above, such Defect Site will be deemed to no longer be a Development Tower and Developer will be subject to no restrictions with respect to any sale or other transaction related thereto (including those set forth in Section 2(a)(iii)). With respect to the circumstances described in this Section 2(d), notwithstanding Section 9 or any other provision hereof, [***] shall not be entitled to recover damages or obtain payment, reimbursement, restitution or indemnity more than once in respect of the same loss.

(e) Closing. At each Closing, [***] and Developer shall satisfy each of the conditions set forth in the Asset Purchase Agreement, including those conditions set forth on Appendix B.

3. Representations and Warranties of Developer. Developer makes the following representations and warranties as of the date hereof and as of each Closing Date (except that any representations and warranties made on any Closing Date that relate to any particular Development Tower (and the related Tower Assets and Sites) shall be made only with respect to the

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Development Tower being transferred to [***] under the Asset Purchase Agreement and no other Development Tower previously or subsequently transferred):

(a) Organization. Developer is a corporation with limited liability duly formed, validly existing and in good standing under the laws of the jurisdiction where the Tower Assets are located. Developer has full corporate authority and power to enter into the transactions provided in this Agreement.

(b) Authorization; Enforceability. The execution, delivery and performance of this Agreement and the consummation by Developer of the transactions contemplated hereby are within the corporate power of Developer and have been duly authorized by all necessary company action by Developer. Developer and those persons executing this Agreement on its behalf in a representative capacity have legal capacity to execute and deliver this Agreement. This Agreement is valid and binding obligations of Developer, enforceable against it in accordance with its terms, subject only to bankruptcy, insolvency, reorganization, moratoriums or similar laws at the time in effect affecting the enforceability or right of creditors generally and by general equitable principles which may limit the right to obtain equitable remedies.

(c) Liens; Condemnation. Developer has (i) good and marketable title to the Development Towers (and the related Tower Assets and Sites), in each case free and clear of all Liens except for Permitted Liens; and (ii) there are not any present or pending Actions relating to condemnation, eminent domain, or other taking by any Authority, of any of the Development Towers (or related Tower Assets and Sites), no Action is contemplated, and Developer has not received notice of any such Action. The Development Towers (and the related Tower Assets and Sites) constitute all of the rights, property and assets necessary to operate the Development Towers as proposed to be operated.

(d) Absence of Conflicting Agreements. The execution, delivery and performance of this Agreement by Developer in accordance with its terms neither do nor will, after the giving of notice or the lapse of time or both, or otherwise:

(i) conflict with, result in a breach of, or constitute a default under, Developer articles of incorporation, bylaws or shareholders’ agreement, any Applicable Law to which Developer is subject, or any court or administrative order or process, or any material contract, agreement, arrangement, commitment or plan to which Developer is a party or by which Developer is bound;

(ii) require the consent, waiver, approval, permit, license, clearance or authorization of, or any declaration or filing with, any court or governmental or public agency or other authority; or

(iii) require the consent of any Person under any material agreement, arrangement or commitment of any nature to which Developer is a party or bound by or to which the Development Towers (and the related Tower Assets and Sites) is bound or subject.

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(e) No Litigation; Compliance with Laws; Conditions.

(i) There is no decree, judgment, order, investigation, complaint, litigation at law or in equity, arbitration proceeding or proceeding before or by any commission, agency or other administrative or regulatory body or authority pending or, to the knowledge of Developer, threatened, which could adversely and materially affect Developer’s ability to undertake its obligations under this Agreement or that pertains to or affects any of the Development Towers (or related Tower Assets and Sites).

(ii) Developer owns and operates, and has owned and operated, its business, and carries on and conducts, and has carried on and conducted, its business in compliance in all material respects with all Applicable Laws. Developer has not received any notification from any Authority of any asserted present or past failure to comply in any material respect with such Applicable Laws or orders and there is no pending or, to the knowledge of Developer, threatened investigation of any sort against Developer. Developer or its Affiliates possess all Governmental Authorization that are necessary for the ownership and operation of the Development Towers (and the related Tower Assets and Sites) being transferred to [***].

(iii) The Development Towers and other items of tangible personal property included in the Tower Assets are structurally sound, are in good operating condition and repair, and are adequate for the uses to which they are being put, and none of such Development Towers and other items of tangible personal property is in need of maintenance or repairs except for routine maintenance and repairs that are not material in nature or cost.

(f) Brokers. Neither this Agreement nor any other transaction contemplated by this Agreement was induced or procured through any Person acting on behalf of or representing Developer as broker, finder, investment banker, financial advisor or in any similar capacity.

(g) Approvals, Other Authorizations, Consents, Reports, Etc.

(i) Each Development Tower (and the related Tower Assets and Site) has been owned and operated by Developer in accordance with all material Governmental Authorizations; no consents are required to be obtained by Developer from any Authority under any Governmental Authorization in order to consummate the purchase of such Development Tower. All improvements of Developer on each Site are in compliance with applicable zoning, wetlands, and any related or similar Applicable Laws and applicable title covenants, conditions, restrictions and reservations in all respects, now and at the time of development of the Sites as communications facilities;

(ii) except for the third party consents set forth in Section 3(g)(ii) of the Disclosure Schedule, no consent, approval or authorization of, or registration or filing with any Person is required to be obtained in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby;

(iii) no such Governmental Authorization is the subject of any proceeding to revoke or terminate any such Governmental Authorization or to fine or admonish Developer; neither Developer nor any Development Tower (and related Tower Assets and Site) is charged by any Authority with any breach or violation of, or default in the performance,

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observance or fulfillment of, any Applicable Law relating to Developer’s or its subsidiaries’ ownership, use, occupancy management, repair, or and operation of the Development Towers (and related Tower Assets and Sites); and

(iv) no event exists or has occurred during Developer’s ownership of the Development Towers (and related Tower Assets and Sites), which constitutes, or but for any requirement of giving of notice or passage of time or both would constitute, such a breach, violation or default, under any Governmental Authorization or any Applicable Law.

(h) Financial Capacity. Developer has the financial capacity to perform its obligations under this Agreement.

(i) Material Agreements. Unless the Tenant Lease and the Ground Leases have been executed by [***] or one of its relevant wholly owned subsidiary in the relevant jurisdiction:

(i) Each Tenant Lease and Ground Lease is in full force and effect, has been duly authorized, executed and delivered by Developer and, to the knowledge of Developer, the other parties thereto, and is a legal, valid and binding obligation of such party, enforceable in accordance with its terms;

(ii) Developer is the original lessor (or has validly succeeded to the rights of the original lessor) under each of the Tenant Leases, or [***] or is relevant wholly owned subsidiary in the relevant jurisdiction is the lessor under each Tenant Lease pursuant to an assignment done by Developer to [***] or its relevant wholly owned subsidiary in the relevant jurisdiction. Furthermore: unless already assigned to [***] or its relevant wholly owned subsidiary in the relevant jurisdiction (i) Developer is collecting the rent set forth in each Tenant Lease on a current basis and there are no past due amounts thereunder; (ii) no Tenant is entitled to any rental concessions or abatements in rent for any period subsequent to the Effective Date; (iii) Developer has not given notice to any Tenant claiming that the Tenant is in default under its Tenant Lease, and, to the best of Developer’s knowledge, there is no event which, with the giving of notice or the passage of time or both, would constitute such a default; (iv) Developer has not received notice from any Tenant claiming that Developer is in default under the Tenant Lease, or claiming that there are defects in the improvements, which default or defect remains in any manner uncured; (v) neither Developer nor any Developer has received notice from any Tenant asserting any claims, offsets or defenses of any nature whatsoever to the performance of its obligations under its Tenant Lease and, to Developer’s knowledge, there is no event which, with the giving of notice or the passage of time or both, would constitute the basis of such claim, offset or defense; (vi) except as expressly set forth in the Tenant Leases, there are no security deposits or prepaid rentals under any of the Tenant Leases; and (vii) no Tenant Lease provides for non-monetary rent or consideration.

(iii) Developer has not received any correspondence or notice from any party to the Tenant Leases or Ground Leases regarding the termination or expiration of the term of such agreement;

(iv) Except in cases where Developer or one of its Affiliates owns the real property upon which the Development Tower is located, Developer, provided that the Ground Lease and Tenant Lease allow the assignment, will assign the Ground Leases and Ground Lease

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Options to [***] free and clear of all Liens except Permitted Liens. With respect to any Ground Lease, when applicable, (i) such party is in actual possession of the leased premises under the Ground Leases; (ii) such party has paid the rent set forth in the Ground Leases on a current basis and there are no past due amounts; (iii) except as expressly set forth in the Ground Leases, such party is not obligated to pay any additional rent or charges to the Ground Lessors; (iv) such party has not received notice from or given notice to any Ground Lessor claiming that the Ground Lessor or such party is in default under a Ground Lease, and, to the best of Developer’s knowledge, there is no event which, with the giving of notice or the passage of time or both, would constitute such a default; (v) none of the Ground Leases provide for non-monetary rent or other consideration to the Ground Lessor thereunder; (vi) none of the Ground Lessors is an Affiliate of Seller, (vii) each of the Ground Leases (or a memorandum thereof), if required under Applicable Law, is recorded in the appropriate jurisdiction, (viii) such party has not prepaid any rent under any of the Ground Leases more than one (1) month in advance (except with the consent of [***]), (ix) each Ground Lease has at least [***] years of its term remaining, which term may include extension of terms not yet exercised (provided that under the terms of such lease the extension terms are either automatic or exercisable at the option of the tenant under the Ground Lease and in no event may any other Person, other than the tenant under the Ground Lease, be entitled to prevent, refuse or nullify the exercise of such extension, unless the tenant under the Ground Lease is in default), and (x) each Ground Lease permits such party to co-locate additional Tenants on the Development Towers without the requirement to obtain the approval or consent of any other Person and without the requirement to pay additional money to any other Person.

(v) Developer has obtained all easements and rights-of-way that are reasonably necessary to provide vehicular and/or pedestrian ingress and egress to and from each of the Development Towers (and the related Tower Assets and Sites) and no action is pending or threatened or event existing which, individually or in the aggregate, would have the effect of terminating or limiting such access.

(j) Environmental Matters.

(i) Developer has not entered into or received any consent decree, compliance order or administrative order issued pursuant to any Environmental Health and Safety Requirements and Developer is not a party in interest with respect to any judgment, order, writ, injunction or decree issued pursuant to any Environmental Health and Safety Requirements;

(ii) Developer has all permits required by all Environmental Health and Safety Requirements and to its knowledge, Developer is in compliance with all such required permits; Developer is not the subject of or, to its knowledge, threatened with any legal action involving a demand for damages or other potential liability with respect to violations or breaches of any Environmental Health and Safety Requirements relating to the Development Towers (and the related Tower Assets and Sites);

(iii) Developer has not received any written notice that (i) any Environmental Permit is not in full force and effect or (ii) it is not in compliance in all material respects with the terms of all of its Environmental Permits;

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(iv) Only if required for the construction and development of the relevant Development Tower, Developer will provide to [***] with reasonable access to a true, complete and correct copy of all surveys, reports, assessments, audits, evaluations, investigations, sampling results or other documents relating to the presence, migration or disposal of any Hazardous Substance or noncompliance with Environmental Health and Safety Requirements prepared for or at the request of Developer that are in its possession or control relating to the Development Towers (and the related Tower Assets and Sites).

(v) Seller is currently and has been in compliance with all applicable regulations of the Territory related to the preservation of cultural heritage.

(k) Bankruptcy Matters. Developer has not (a) changed its name or suspended its business or payments, (b) had proceedings pending or threatened by or against it in bankruptcy or reorganization in any Authority, (c) resolved or otherwise agreed to file a case in bankruptcy or reorganization in any Authority, or (d) admitted in writing its inability to pay its debts as they become due. Developer is, and after giving effect to the transactions contemplated hereby will be, solvent.

(l) Taxes. Developer has paid or will, at or prior to the applicable Closing, pay all outstanding obligations for Taxes on the real and personal property constituting the Development Towers (and the related Tower Assets and Sites), including without limitation, any Taxes relating to construction materials other than those that are being contended before any Tax Authority or court of law under bona fide basis. Developer has duly and timely filed with the appropriate Authorities all Tax Returns required to be filed by it with respect to the Development Towers (and the related Tower Assets and Sites), and such Tax Returns are true, correct and complete in all material respects and were prepared in accordance with Applicable Law. There are no Tax Liens on any Development Towers (and related Tower Assets and Sites) that will not be paid prior to Closing, or any Lien, action, suit, proceeding, investigation, audit, examination or assessment with regard to any Taxes that relate to the Development Towers (and related Tower Assets and Sites) pending or, to Developer’s knowledge, which could result in a Lien on any of the Development Towers (and related Tower Assets and Sites).

(m) Anti-Corruption Laws. None of Developer or its subsidiaries, Affiliates, officers, directors, employees, agents (acting on behalf of Developer or its subsidiaries) or to Developer’s knowledge, any other Persons (acting on behalf of Developer or its subsidiaries), has directly or indirectly made any contribution, gift, bribe, rebate, payoff, influence payment, kickback or other payment to any Person, private or public, regardless of form, whether in money, property or services to obtain favorable treatment in securing business, to pay for favorable treatment for business secured, to obtain special concessions for special concessions already obtained, for or in respect of Developer or any subsidiary or Affiliate thereof, or in violation of any Applicable Law, or established or maintained any fund or asset that has not been recorded in the books and records of Developer or any subsidiary or Affiliate thereof. Each of Developer and its subsidiaries and Affiliates has complied with applicable anti-corruption, anti-money laundering, anti-terrorism, economic sanctions and anti-boycott laws of the United States of America and all Anti-Corruption Laws. None of Developer or its subsidiaries, Affiliates, officers, directors, agents (acting on behalf of Developer or its subsidiaries), employees (a) are, or are owned by any Person currently identified on the Specially Designated Nations and Blocked

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Persons List maintained by the OFAC, and/or any other similar list maintained by OFAC pursuant to any authorizing statute, executive order or regulation, or (b) is a Person with whom a citizen of the United States is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of Applicable Laws or any executive order of the President of the United States. Without limiting the foregoing, none of Developer, its subsidiaries or Affiliates has directly, or indirectly, entered into any arrangement or agreement related to the installation of Security-Solutions Equipment or the provision of other services on the Towers and/or the Tower Assets with the any local municipality and/or Authority in the Territory in violation of any Applicable Law, including all Anti-Corruption Laws.

(n) Insurance. The Development Towers (and related Tower Assets and Sites) are covered by insurance policies that provide coverage to the extent and in the manner consistent with common practice in Mexico. No notice of reduction in coverage, increase in premium, or cancellation or non-renewal with respect to, or disallowance of any material claim under, any such policy or binder has been received by Developer. All such insurance policies (a) are in full force and effect and enforceable in accordance with their terms; (b) are provided by insurance companies who are financially solvent; and (c) have not been subject to any lapse in coverage. Developer has insurance in such amounts and covering such risks and liabilities as are in accordance with normal industry practice in the Territory.

(o) No Third Party Rights. No Person other than [***] by reason of this Agreement has any contractual or other right of first refusal or any other right or option to acquire the Development Towers (and their related Tower Assets and Sites), or any portion thereof, including through any merger, consolidation, liquidation, dissolution or other reorganization.

(p) Due Diligence Items. The copies of the Due Diligence Items provided and/or made available to [***] constitute, all of the Due Diligence Items relating to the Development Towers (and the related Tower Assets and Sites) in the possession of Developer or any of its Affiliates as of any such date. The copies of such Due Diligence Items are true and accurate, taken as a whole, in all material respects and not misleading in any material respect nor is any information omitted from such information that makes the information provided misleading in any material respect (except to the extent that Developer has provided written updates or amendments to such previously furnished information reflecting changes in circumstance subsequent to the provision of such information).

(q) Related Transactions. Developer is not a party or subject to any contract relating to the ownership or operation of the Development Towers (and the related Tower Assets and Sites) between Developer and any of the officers or directors or any Affiliate, including without limitation any contract providing for the furnishing of services to or by, providing for rental of property, real, personal or mixed, to or from, or providing for the lending or borrowing of money to or from or otherwise requiring payments to or from, any such Person, other than contracts between Developer and any of the foregoing that will be terminated, at no cost or expense to [***], prior to the applicable Closing.

(r) Municipal Agreements. Neither Developer nor any of its Affiliates has entered into any agreement for the provision of other services on the Towers and/or the Tower Assets with the any local municipality and/or Authority in the Territory. No such agreement(s)

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with any local municipality and/or Authority in the Territory will affect the Purchaser’s ownership or operation of the Development Tower and/or the Tower Assets following the applicable Closing.

4. Representations and Warranties of [***]. As of each Closing Date with respect to the Development Towers (and the related Tower Assets and Sites) to be transferred on such Closing Date, [***] represents and warrants to Developer as follows:

(a) Organization and Business; Power and Authority; Effect of Transaction.

(i) [***] is a company with limited liability duly formed, validly existing and in good standing under the laws of the jurisdiction where the Tower Assets are located. [***] has full corporate authority and power to enter into the transactions provided in this Agreement.

(ii) The execution, delivery and performance of this Agreement and all of the documents and instruments required hereby of [***] and the consummation by [***] of the transactions contemplated hereby and thereby are within the corporate power of [***] and have been duly authorized by all necessary company action by [***]. [***] and those persons executing this Agreement on its behalf in a representative capacity have legal capacity to execute and deliver this Agreement. This Agreement is the valid and binding obligations of [***], enforceable against it in accordance with the documents’ respective terms, subject only to bankruptcy, insolvency, reorganization, moratoriums or similar laws at the time in effect affecting the enforceability or right of creditors generally and by general equitable principles which may limit the right to obtain equitable remedies).

(iii) Neither the execution and delivery by [***] of this Agreement, nor the consummation of the transactions contemplated hereby, nor compliance with the terms, conditions and provisions hereof or thereof by [***] will conflict with, or result in a breach or violation of, [***]’s articles of incorporation, bylaws or shareholders’ agreement, any Applicable Law to which [***] is subject, or any court or administrative order or process, or any material contract, agreement, arrangement, commitment or plan to which [***] is a party or by which [***] is bound.

(b) Governmental Approvals. There are no Governmental Approvals and other filings, applications or notices required to be made, filed, given or obtained by [***] or any of its Affiliates with, to or from any Governmental Authorities in connection with the consummation of the transactions contemplated by this Agreement.

(c) Litigation; Orders. As of any Closing, there is no action, suit or proceeding pending or, to [***]’s knowledge, threatened against [***] by or before any Governmental Authority or by any Person which challenges the validity of this Agreement or which would reasonably be likely to adversely affect or restrict [***]’s or its Affiliates ability to consummate the transactions contemplated by this Agreement.

(d) Broker or Finder. No agent, broker, investment banker, financial advisor or other firm or Person engaged by or on behalf of [***] or any of its Affiliates is or will be entitled to a fee or commission in connection with the Purchase.

(e) Financial Capacity. [***] has access to sufficient funds to perform its obligations under this Agreement and the execution and performance of this Agreement will not

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have as an effect the insolvency of [***] or will result in the inability to pay its debts as they become due.

(f) Proceeds. The source of the proceeds to be used by [***] in connection with the payments due to Developer under this Agreement and the corresponding Asset Purchase Agreement, is the legal exercise of its business and activities.

(g) Bankruptcy Matters. [***] has not (a) changed its name or suspended its business or payments, (b) had proceedings pending or threatened by or against it in bankruptcy or reorganization in any Authority, (c) resolved or otherwise agreed to file a case in bankruptcy or reorganization in any Authority, or (d) admitted in writing its inability to pay its debts as they become due. [***] is, and after giving effect to the transactions contemplated hereby will be, solvent.

(h) Anti-Corruption Laws. To [***]’s knowledge, none of [***] or its subsidiaries, Affiliates, officers, directors, employees, or other Persons (acting on behalf of [***] or its subsidiaries), has directly or indirectly made any contribution, gift, bribe, rebate, payoff, influence payment, kickback or other payment to any Person, private or public, regardless of form, whether in money, property or services to obtain favorable treatment in securing business, to pay for favorable treatment for business secured, to obtain special concessions for special concessions already obtained, for or in respect of [***] or any subsidiary or Affiliate thereof, or in violation of any Applicable Law, or established or maintained any fund or asset that has not been recorded in the books and records of [***] or any subsidiary or Affiliate thereof. Each of [***] and its subsidiaries and Affiliates has complied with applicable anti-corruption, anti-money laundering, anti-terrorism, economic sanctions and anti-boycott laws of the United States of America and all Anti-Corruption Laws. None of [***] or its subsidiaries, Affiliates, officers, directors, agents (acting on behalf of [***] or its subsidiaries), employees (a) are, or are owned by any Person currently identified on the Specially Designated Nations and Blocked Persons List maintained by the OFAC, and/or any other similar list maintained by OFAC pursuant to any authorizing statute, executive order or regulation, or (b) is a Person with whom a citizen of the United States is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of Applicable Laws or any executive order of the President of the United States.

(i) No Third Party Rights. No Person other than [***] by reason of this Agreement has any contractual or other right of first refusal or any other right or option to acquire the Development Towers (and their related Tower Assets and Sites), or any portion thereof, including through any merger, consolidation, liquidation, dissolution or other reorganization. [***] is not acquiring the Development Towers for resale nor for the benefit of any third party.

5. Independent Contractors.

(a) [***] and Developer acknowledge and agree that, at all times during the Term, Developer and its representatives shall act solely as independent contractors and nothing in this Agreement is intended or shall be construed to create an employee/employer relationship or a relationship as partners or joint ventures between or among Developer or its representatives, on the one hand, and [***] and its Affiliates, on the other hand.

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(b) Each Party understands and agrees that its representatives will not be treated as employees or agents of the other Party, or its respective Affiliates for any purpose, including, without limitation, for tax purposes, employment or workers’ compensation laws, or any other laws pertaining to the employer/employee relationship, and neither Party will not withhold on behalf of the other Party or any of its representatives any sums for income tax, unemployment insurance, social security or any other withholding pursuant to any law or requirement, and all such payments and withholdings are the sole responsibility of the Party incurring such payments or withholdings and its representatives.

6. Assignability. This Agreement may not be assigned by Developer without the prior written consent of [***], which may be withheld for any reason or no reason. [***] may not assign its rights under this Agreement without Developer’s prior approval, which cannot be unreasonably withheld, delayed or conditioned except (i) in connection with the sale of all, or substantially all of the assets or equity interests of [***] (ii) to one or more of its Affiliates, or (iii) the granting of a security interest and/or collateral assignment by [***] of its rights and obligations under this Agreement to [***]’s senior lenders. Notwithstanding the foregoing, all the terms and provisions contained herein shall inure to the benefit of and shall be binding upon the Parties hereto and their respective heirs, legal representatives, successors and permitted assigns.

7. Covenants.

(a) Insurance. Developer shall maintain insurance with respect to any Development Tower (and the related Tower Assets and Site) with responsible and reputable insurance companies or associations in such amounts and covering such risks as is usually carried by companies of similar size in similar businesses and owning similar properties in the same areas in which Developer operates, provided that, commencing one (1) day after the delivery of any outstanding Designated Holdback Deliverable, Developer shall have the right to cancel insurance with respect to any Development Tower (and the related Tower Assets and Site) transferred to [***] at such time.

(b) Compliance with Anti-Corruption Laws.

(i) The Parties and its directors, officers, employees, representatives or other third parties acting on its behalf shall not pay, offer or promise to pay, or authorize the payment, directly or indirectly, through any other person or entity, of any monies or anything of value in violation of Applicable Law:

1. to any person or firm employed by, or acting for or on behalf of, any customer or potential customer, whether private or governmental, for the purposes of inducing or rewarding favorable action by the customer or potential customer in any commercial transaction;

2. established or maintained any fund or asset with respect to the Parties that has not be recorded in the books and records of Developer;

3. to any person or firm employed by, or acting for or on behalf of, any governmental entity (including state-owned or controlled entities or public international

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organizations) for the purposes of inducing or rewarding any action, or the withholding of any action, by such entity in any governmental matter; or

4. to any governmental official or employee (including employees of state-owned or controlled entities or public international organizations), political party or official of such party, or any candidate for political office, for the purposes of inducing or rewarding favorable action (or the withholding of action) or the exercise of influence by such official, party or candidate in any commercial transaction or in any governmental matter.

(ii) Neither Party, its subsidiaries, Affiliates nor its officers, directors, employees is or will become an official or employee of a government within the Territory during the Term, unless such person obtains the prior written approval of the other Party. Each owner, partner, officer, director or employee of a Party, and of any parent or subsidiary company of such Party, has complied with all applicable anti-corruption, anti-money laundering, anti-terrorism and economic sanction and anti-boycott laws of the Territory and any other jurisdiction having jurisdiction over such Parties.

(iii) None of the Parties, or its subsidiaries, Affiliates, or any officer, director, agent, employee or other person or entity acting on Developer’s behalf, has violated or will violate, directly or indirectly, any applicable provision of the Anti-Corruption Law, or of any applicable anticorruption laws and regulations of the Territory, and none of them has used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity, made, offered or authorized any unlawful payment to foreign or domestic government officials or employees, or made, offered or authorized any unlawful bribe, rebate, payoff, influence payment, kickback or other similar unlawful payment. Each Party has established reasonable internal controls and procedures reasonably designed to ensure compliance with the Anti-Corruption Law and any applicable anticorruption laws of the Territory and any other applicable jurisdiction.

(iv) In the event a Party has reasonable evidence that a breach of any of the representations and warranties and covenants in subsections 7(b)(i) through (b)(iii) above has occurred or will occur, such Party shall have the right to reasonably audit the other Party in connection with such purported breach, in order to satisfy itself that no breach has occurred. Each Party shall fully cooperate in any audit conducted by or on behalf of the other Party.

(v) In the event of a evidenced breach of any of the covenants in subsections 7(b)(i) through (b)(iii) above, this Agreement may be terminated by the non-defaulting Party upon delivery to the other Party of written notice of termination, and the non-defaulting Party shall have the right to seek for damages and [***] additionally may seek fir reimbursement of Milestone Payments paid by [***] prior to the date of breach or termination with respect to any affected Development Tower. Each Party shall indemnify and hold the other Party harmless against any and all claims, losses or damages arising from or related to any such breach by other Party or the non-defaulting Party termination of the Agreement, or both.

(vi) In no event shall any Party be obligated under this Agreement to take any action or omit to take any action, which action or omission such Party believes, in good faith, would cause it to be in violation of any law, including the Anti-Corruption Laws.

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(c) Report; Inspection. Developer shall report to [***] on a bi-weekly basis concerning the status of development and construction of the Development Towers. [***], at its expense and upon reasonable prior written request during normal business hours, shall have the right to inspect and review all information pertaining to the Development Towers.

8. Representations and Warranties; Survival. Anything in this Agreement to the contrary notwithstanding, the representations and warranties of the Parties contained in or made pursuant to this Agreement shall survive the applicable Closing and shall remain operative and in full force and effect for a period of twelve (12) months after the applicable Closing Date, regardless of any investigation or statement as to the results thereof made by or on behalf of either Party hereto except that the representations and warranties contained in Section 3(a) and 3(b) (Organization; Authorization; Enforceability), Section 3(f) (Broker), Section 3(i) (Material Agreements), Section 3(j) (Environmental Matters), Section 3(k) (Bankruptcy Matters), Section 3(l) (Taxes), Section 3(m) (Anti-Corruption Laws), Section 4(a) (Organization and Business; Power and Authority; Effect of Transaction), Section 4(d) (Broker or Finder), Section 4(e) (Financial Capacity), Section 4(f) (Proceeds), Section 4(g) (Bankruptcy), Section 4(h) (Anti-Corruption Laws) and Section 4(i) (No Third Parties Rights) will survive the applicable Closing and will remain in full force and effect until the expiration of the applicable statute of limitations relating thereto. If Developer or [***], as applicable, deliver written notice to the other Party of an indemnification claim for a breach of a representation, warranty or covenant under this Agreement within the survival period, such claim shall survive until final settlement or judgment of such claim.

9. Indemnification by Developer. Developer shall indemnify, defend and hold [***] and [***]’s employees, members, directors, officers and agents (collectively, “[***] Indemnified Parties”) harmless from and against, and agree promptly to defend [***] from and reimburse [***] Indemnified Parties for, any and all losses, damages, costs, expenses, liabilities, obligations and claims of any kind (including, without limitation, reasonable fees and expenses of attorneys, accountants, and other experts and those incurred to enforce the terms of this Agreement (collectively, “Losses”) which [***] Indemnified Parties may at any time incur, or become subject to, in connection with:

(a) any breach or inaccuracy of any of the representations and warranties made by Developer in or pursuant to this Agreement;

(b) any failure by Developer to carry out, perform, satisfy and discharge any of its covenants, agreements, undertakings, liabilities or obligations under this Agreement;

(c) any civil claims or labor claims affecting the Development Towers (and the related Tower Assets and Sites) and arising prior to the Closing of such Development Towers;

(d) any obligation or liability of Developer (contingent or otherwise) not explicitly assumed by [***] pursuant to this Agreement; and

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(e) any suit, action or other proceeding brought by any Authority or Person in any way related to any of the foregoing matters occurred prior to the applicable Closing of the relevant Development Towers.

10. Indemnification by [***]. [***] shall indemnify and hold Developer and Developer’s employees, shareholders, directors, officers and agents (collectively, “Developer Indemnified Parties”) harmless from and against, for any and all Losses which Developer Indemnified Parties may at any time incur, or become subject to, and agrees to promptly defend Developer Indemnified Parties from and reimburse Developer Indemnified Parties for, any and all Losses which Developer Indemnified Parties may at any time suffer or incur, or become subject to, as a result of or in connection with:

(a) any breach or inaccuracy of any representations and warranties made by [***] in or pursuant to this Agreement;

(b) any failure by [***] to carry out, perform, satisfy and discharge any of its covenants, agreements, undertakings, liabilities or obligations under this Agreement;

(c) any obligation or liability of [***] (contingent or otherwise) not explicitly assumed by Developer pursuant to this Agreement; and

(d) any suit, action or other proceeding brought by any Authority or Person in any way related to any of the foregoing matters.

11. Claims.

(a) Notice of Claims. If an indemnified Party believes that it has suffered or incurred any Loss for which it will seek indemnification from the indemnifying Party pursuant to this Agreement, including as a result of any legal action instituted by a third party, it shall notify the indemnifying Party, in writing, within thirty (30) days of becoming aware that it has suffered such Loss or of such third party action, describing such Loss in reasonable detail and referring to the provisions of this Agreement in respect of which such Loss shall have occurred. If the defense is to be submitted prior to the thirty (30) day term agreed herein then such term shall be reduced to the term granted by Applicable Law to submit a defense minus five (5) Business Days.

(b) Defense of Third Party Claims. The indemnifying party shall have the right to conduct and control, through counsel of its own choosing, reasonably acceptable to the indemnified Party, any third party legal action or other claim, but the indemnified Party may, at its election, participate in the defense thereof at its sole cost and expense; provided, however, that the defense leader shall continue to be the indemnifying Party and any action or defense by the indemnified Party shall be previously approved by writing by the indemnifying Party or else the indemnified Party will lose its right to recover Losses; provided, however, that if the indemnifying Party shall fail to defend any such legal action or other claim, then the indemnified Party may defend, through counsel of its own choosing, such legal action or other claim, and (so long as it gives the indemnifying Party at least fifteen (15) days’ notice of the terms of the proposed settlement thereof and permits the indemnifying Party to then undertake the defense thereof) settle such legal action or other claim and to recover the amount of such settlement or of any judgment

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and the reasonable costs and expenses of such defense. The indemnifying Party may compromise or settle any such legal action or other claim without the prior written consent of the indemnified Party. The indemnified and indemnifying Parties shall cooperate in the defense or prosecution thereof.

12. Termination; Remedies; Expiration. In addition to any remedies expressly provided elsewhere in this Agreement:

(a) In the event that (i) any of the representations and warranties of Developer contained herein, was materially incorrect when made, (ii) Developer fails to comply with any covenant or obligation in any material respect set forth herein, and shall not have cured, or taken adequate measures to remedy the breach, the same within thirty (30) days of receipt of prompt written notice from [***] of the same then, in any such event, [***] shall be entitled (A) to terminate this Agreement with respect to the affected Tower (and the related Tower Assets and Site), (B) to pursue all legal and equitable remedies against Developer for such uncured default or breach by Developer, including specific performance (Developer hereby acknowledging that each Site is unique and that [***] may have no adequate remedy at law if Developer breached this Agreement), and/or (C) to seek recovery from Developer for the Milestone Payment(s) paid by [***] prior to the date of such breach or termination with respect to the affected Development Tower.

(b) In the event that any of the representations and warranties of [***] contained herein was materially incorrect when made or [***] fails to comply with any covenant or obligation in any material respect set forth herein, and [***] shall not have cured, or taken adequate measures to remedy the breach, the same within thirty (30) days of receipt of prompt written notice from Developer of the same, then, in such event, Developer shall be entitled to terminate this Agreement and Developer shall not have a right to seek or procure specific performance, any rights to which Developer specifically waives.

(c) This Agreement shall terminate upon the expiration of the Term unless extended by the Parties pursuant to Section 1(b).

(d) The rights and obligations of the Parties, including all rights and obligations of indemnification, shall survive the expiration or termination of this Agreement unless the Party entitled to the benefit of any such right or obligation waives in writing its entitlement thereto.

13. Fees, Expenses and Other Payments. Each Party will be responsible for its own costs and expenses incurred in the negotiation and completion of the transactions contemplated herein, or the performance of its respective obligations hereunder, including legal and other advisory fees.

14. Notices. All notices and other communications which by any provision of this Agreement are required or permitted to be given shall be given in writing as set forth below. All notices or other communications which are required or otherwise delivered hereunder shall be deemed to be sufficient and duly given if contained in a written instrument (a) personally delivered or sent by telecopier, (b) sent by internationally recognized overnight courier guaranteeing next or second Business Day delivery, or (c) electronic mail (i.e., e-mail), but only for technical issues

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relating to the Development Towers (and the related Tower Assets and Sites). Any such notice or communication shall be deemed to have been received (i) when delivered, if personally delivered or sent by telecopier (with confirmation of transmission) provided, however, that the delivery date is a Business Day or else it will be deemed to have been delivered on on the next Business Day; (ii) on the third or fourth Business Day after dispatch, if sent by internationally recognized, overnight courier guaranteeing first or second Business Day delivery, as applicable; and (iii) when sent by electronic mail if sent during the normal business hours of the recipient (if not sent during the normal business hours of the recipient, then on the next Business Day) provided, that proof of delivery is obtained by the sender. Delivery by telecopier of an executed counterpart of any amendment or waiver of any provision of this Agreement or of any Exhibit hereto to be executed and delivered hereunder shall be effective as delivery of a manually executed counterpart thereof.

			
	 	Notice to [***]:	[***]
	 	 	Attn: [***]
	 	 	Telecopier: [***]
	 	 	Email: [***]
	 	 	 
	 	Notice to Developer:	c/o Tower One Wireless
	 	 	600-535 Howe Street, Vancouver, BC,
	 	 	Canada, V6C-2Z4
	 	 	Attn: Alejandro Ochoa
	 	 	Email: a.ochoa@toweronewireless.com

15. Dispute Resolution. If a dispute arises out of or in connection with this Agreement or in the performance, validity or enforceability of this Agreement, including any question regarding its existence or termination (including non-contractual claims arising out of this Agreement) (“Dispute”), the senior management of each of the parties hereto shall meet to attempt to resolve such Dispute within twenty (20) days following the date on which a party provides written notice to the other party of the existence of such Dispute (which written notice shall provide a reasonably detailed explanation of the basis for the Dispute). In the event such Dispute cannot be resolved by senior management of the parties within such twenty (20) day period, then the parties hereby agree that such Dispute shall be finally resolved by arbitration. Disputes submitted to arbitration shall be resolved in accordance with the Rules of International Centre for Dispute Resolution (“ICDR”), which rules are deemed to be incorporated by reference into this clause. The tribunal shall consist of three arbitrators of whom, one shall be appointed by each of the parties hereto and the third shall be appointed by the two arbitrators. The place of arbitration shall be New York, New York. The language of the arbitration shall be English. The tribunal shall give a written record of the award and reasons therefor.

16. Construction. All the Parties to this Agreement have participated fully in the negotiation and preparation hereof and, accordingly, this Agreement shall not be more strictly construed against any one of the Parties hereto.

17. Severability; Counterparts, Governing Law. If any term or provision of this Agreement shall be held or deemed to be, or shall in fact be, invalid, inoperative, illegal or unenforceable as applied, such circumstance shall not have the effect of rendering the provision or

19

provisions in question invalid, inoperative, illegal or unenforceable but this Agreement shall be reformed and construed in any such jurisdiction or case as if such invalid, inoperative, illegal or unenforceable provision had never been contained herein. In any case, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby, but rather shall be enforced to the greatest extent permitted by law. This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, binding upon all of the Parties. In pleading or proving any provision of this Agreement, it shall not be necessary to produce more than one set of such counterparts. Delivery of an executed counterpart of a signature page to this Agreement by electronic mail with reception acknowledgment by recipient shall be effective as delivery of a manually executed counterpart of this Agreement. The validity, interpretation, construction and performance of this Agreement shall be governed by, and construed in accordance with the laws of the State of New York, without regard to its internal conflict of law principles.

18. Interpretation. In construing this Agreement, the singular shall be held to include the plural, the plural shall include the singular, the use of any gender shall include every other and all genders, and captions and paragraph headings shall be disregarded.

19. No Waiver. Except as otherwise provided in this Agreement, any failure of any of the Parties to comply with any obligation, representation, warranty, covenant, agreement or condition herein may be waived by the Party entitled to the benefits thereof only by a written instrument signed by the Party granting, such waiver, but such waiver or failure to insist upon strict compliance with such obligation, representation, warranty, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

20. No Third-Party Beneficiaries. Except as otherwise expressly provided herein, nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any person, firm, corporation, partnership, association or other entity, other than the Parties hereto and their respective legal representatives and permitted successors and assigns, any rights or remedies under or by reason of this Agreement.

21. Entire Agreement. This Agreement and the other transaction documents constitute the entire agreement between the Parties with respect to the subject of this Agreement and cancel all prior memorandums, discussions and agreements with respect to such subject matter, and no alteration, modification, amendment or interpretation of this Agreement shall be binding unless it is in writing and signed by the Party against whom enforcement is sought.

22. English Language. This Agreement has been negotiated and executed by the Parties in English. In the event any translation of this Agreement is prepared by a Party for convenience or for any other purpose, the provisions of the English version shall prevail.

23. Further Assurances. In addition to the acts and deeds recited herein and contemplated to be performed, executed and/or delivered by any Party hereto, each Party hereto agrees to perform, execute and deliver, but without any obligation to incur any additional liability or expense, any further deliveries and assurances as may be reasonably necessary to effectuate the provisions contained herein or contemplated hereby.

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(signature page follows)

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

Developer:

COMERCIALIZADORA MEXMAKEN S.A. DE C.V.

By: ____________________________________ 
Name: 
Title:

[***]:

[***]

By: ____________________________________ 
Name: [***] 
Title: Sole Administrator

Appendix A

Definitions

Action means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at law or in equity.

Affiliate means with respect to a Person, (a) any other Person at the time directly or indirectly controlling, controlled by or under direct or indirect common control with such Person, (b) any executive officer or director of such Person, (c) with respect to any partnership, joint venture, limited liability company, or similar entity, any general partner or manager thereof, and (d) when used with respect to an individual, shall include any member of such individual’s immediate family or a family trust. For purposes of this definition, “control”, when used with respect to any specified person, means the possession, direct or indirect, of the power to vote 50.1% or more of the voting stock of such person or the power to direct the management and policies of the person whether through the ownership of voting securities or by contract; and the term “controlled” has the meanings correlative to the foregoing.

Allocable Purchase Price means with respect to each Tower, the Tower Cash Flow as of the Closing Date multiplied by[***].

Anchor Tenant Lease means a Tenant Lease where the Qualified Tenant requested the construction of the Development Tower (as distinguished from a later request to co-locate on an existing Development Tower).

Anti-Corruption Laws means the FCPA, and all applicable anti-corruption, anti-money laundering, anti-terrorism and economic sanction and anti-boycott laws of the United States, the Territory and any jurisdiction where Developer transacts business or where Development Towers (and related Tower Assets and Sites) are located.

Applicable Law means all applicable provisions of all (i) constitutions, treaties, statutes, laws (including the common law), codes, rules, regulations, ordinances or orders of any Authority, (ii) governmental approvals, and (iii) orders, decisions, injunctions, judgments, awards and decrees of or agreements with any Authority, in each case, in the Territory or the jurisdiction where the Development Tower (and the related Tower Assets and Sites) to which such Law relates are located.

Applicable Permits means all permits, authorizations or approvals required for construction or operation of a particular Development Tower and its related Site applicable by any Authority applicable to where such Development Tower is located, including, without limitation, land use licenses, construction licenses, environmental approval, approval of Mexican Civil Aviation Office of the Ministry of Communications and Transports, civil protection approval.

Argentina Development Agreement means that certain Development Agreement, dated as of the Effective Date, by and between [***] and Evolution Technology S.A.

Argentina Development Tower means a “Development Tower” as defined in the Argentina Development Agreement.

Asset Purchase Agreement has the meaning set forth in Appendix B.

Assignment and Assumption of Governmental Authorizations shall have the meaning set forth in Section 2(e)(v).

Assignment and Assumption of Ground Lease shall have the meaning set forth in Section 2(e)(iii).

Assignment and Assumption of Related Contracts shall have the meaning set forth in Section 2(e)(vi).

Assignment and Assumption of Tenant Lease shall have the meaning set forth in Section 2(e)(iv).

Authority means any nation or government (in the federal, state or local levels, or any other political subdivision thereof) having jurisdiction over the relevant Person; any entity, authority or body, including any government authority, agency, department, board, commission or instrumentality in the Territory, or the jurisdiction where the Development Towers (and the related Tower Assets and Sites) to which such Authority relates are located, and, if relevant or appropriate, in any other country; any court, tribunal or arbitrator, exercising executive, legislative, judicial, regulatory or administrative functions of, over, or pertaining to any of the Development Towers (and the related Tower Assets and Sites).

Business Day means any day other than Saturday, Sunday or a day on which banking institutions in New York, New York or the Territory are required by law to be closed.

Commence, Commences or Commenced shall mean, with respect to any Tenant Lease, the obligation to pay rent under such Tenant Lease has accrued and is payable by the Tenant, or Tenant has substantially completed installation of its equipment on the Tower relating thereto.

Closing shall have the meaning as set forth in Section 2(b). 

Closing Date shall have the meaning as set forth in Section 2(b). 

Closing Date Payment shall have the meaning as set forth in Section 2(b). 

Collateral Documents has the meaning set forth in Appendix B.

Colombia Development Agreement means that certain Development Agreement, dated as of January 31, 2019, by and between [***] Colombia and T-Three

Colombia Development Tower means a “Development Tower” as defined in the Colombia Development Agreement.

Cure Period shall have the meaning set forth in Section 2(d).

Defect Site shall have the meaning set forth in Section 2(d).

Developer Indemnified Parties shall have the meaning set forth in Section 10.

Development Tower has the meaning set forth in the second Recitals.

Due Diligence Items means true, correct and complete copies of each of the following items as are in Developer’s possession or control, including electronic versions (if any) with respect to any Development Towers (and the related Tower Assets and Sites):

a. all environmental reports and environmental permits relating to the Sites;

b. the Ground Lease Options, Ground Leases, Tenant Leases and Related Contracts;

c. the most recent surveys, title commitments, title policies or abstracts of title, together with all copies of all documents and instruments (as recorded where applicable) referred to or identified in the title commitment, surveys, title policies or abstracts, including, but not limited to, all lien instruments, leases, plats, reservations, restrictions and easements, and all curative documentation executed subsequent to the commitment, policy or abstract related to the Sites;

d. if applicable, the most recent zoning permits, variances, building and any other Governmental Authorizations, which have been issued or for which Developer has made application, and the applications, responses, approvals and registration numbers submitted or received for the Sites;

e. current Tenant contact information for the Sites;

f. if applicable, a list of all tax ID numbers (or equivalent information in the relevant jurisdiction) for the Ground Lessors under the Ground Leases;

g. any available financial information (including property tax information) pertaining to the Development Tower; and

h. copies of any documents, structural analyses, certifications and/or drawings and related site plans relating to the construction and condition of the Development Towers or the Sites.

Earn-Out Amount shall mean (i) with respect to any Eligible Lease that has Commenced on or prior to the twelve (12) month anniversary of the Closing Date, an amount equal to the Tower Cash Flow generated by such Eligible Lease multiplied by [***] and (ii) with respect to any Eligible Lease that has Commenced after the twelve (12) month anniversary of the Closing Date and prior to the twenty-four (24) month anniversary of the Closing Date, an amount equal to the Tower Cash Flow generated by such Eligible Lease multiplied by [***].

Earn-Out Payment Date has the meaning set forth in Section 2(c).

Eligible Lease means, with respect to any Development Tower, any Included Tenant Lease that has Commenced during the twenty-four (24) month period following the Closing Date applicable to such Development Tower.

Eligible Lease Commencement Date means with respect to any Eligible Lease, the date such Eligible Lease has Commenced.

Environmental Health and Safety Requirements means, to the extent applicable to the relevant Person, all federal, state and local statutes, regulations, ordinances and other provisions having the force or effect of law, all judicial and administrative orders and determinations, all contractual obligations and all common law concerning public health and safety, worker health and safety, indigenous rights and pollution and protection of the environment and, natural protected areas, including without limitation, all those relating to the presence, use, production, generation, handling, transportation, treatment, storage, disposal, distribution, labeling, testing, processing, discharge, release, control, or cleanup of any hazardous materials, substances or wastes, chemical substances or mixtures, pesticides, pollutants, contaminants, toxic chemicals, petroleum products or by products, asbestos, polychlorinated biphenyls, noise or radiation, each as amended and as now or hereafter in effect; without limiting the foregoing, Environmental Health and Safety Requirements shall include all permits required for the construction and operation of Towers whether on protected ground or non-protected ground, including permits acquired from the relevant environmental authority and/or any other authorized environmental delegated authority.

Environmental Permit means any Governmental Authorization required by or pursuant to any Environmental Health and Safety Requirements, any indigenous territories or natural protected areas.

FCPA means the Foreign Corrupt Practices Act of 1977, as amended. 

Fifth Milestone shall have the meaning set forth in Section 2.

First Milestone shall have the meaning set forth in Section 2. 

Fourth Milestone shall have the meaning set forth in Section 2.

Governmental Authorizations means all approvals, permits, licenses, authorizations, decrees, registrations, certificates of occupancy, certificates of completion, zoning permits, variances, agreements and similar approvals issued in writing by any Authority to use or operate a Development Tower (and the related Tower Assets and Sites), as well as any extensions or renewals thereof, and any pending applications therefore, including permits and approvals required (where applicable) by Applicable Law.

Ground Lease shall mean any lease, easement, right of way, license, permit or other right of use agreement pursuant to which the lessee or tenant thereunder holds a leasehold interest, leasehold estate or other real property interest, including, without limitation, the associated access easements and rights of way, and pursuant to which the lessee or tenant thereunder has the right to construct, own and operate a telecommunications tower on the land relating thereto. For the avoidance of doubt the Ground Leases include the right to place the Site in the public right of way (i.e., by way of easement or equivalent rights).

Ground Lease Option shall mean an option to enter into a Ground Lease.

Ground Lessor means the “grantor” or “lessor” or “landlord” or “licensor” under the Ground Lease.

Hazardous Substance means any substance that is deemed by any Environmental Health and Safety Requirements to be “hazardous,” “toxic,” a “contaminant” or “waste” or is otherwise regulated by any Environmental Health and Safety Requirements.

Included Tenant Lease means a Tenant Lease with a Qualified Tenant that meets all of the following criteria as the date of determination: (a) that is executed in writing and in full force and effect in all material respects, (b) that is for a term no less than ten (10) years, and will not expire within three (3) months from the date hereof in accordance with its terms, (c) is not on a “month-to-month” term, (d) the tenant thereunder is not currently involved in a bankruptcy proceeding (e) that has not otherwise been terminated (and has not sent any notice of termination), (f) which has Commenced and (g) with respect to which there are no material default on the part of lessor or the tenant thereunder, including, without limitation, any monetary default by such tenant for greater than sixty (60) days. For the avoidance of doubt, any amendment to an Included Tenant Lease which meets the foregoing requirements, where such amendment provides for the installation and/or operation of fiber and/or microcells.

Knowledge (or words of similar import) of Developer or [***] shall mean both the actual knowledge and knowledge that Developer or [***], as applicable, or its respective executive officers should reasonably be expected to acquire by ordinary attentiveness to duty and by reasonably prudent inquiry given the nature of such individual’s position and responsibilities.

Lien shall mean any of the following: mortgage; lien (statutory or other); or other security agreement, arrangement or interest; hypothecation, pledge or other deposit arrangement; assignment; charge; levy; executory seizure; attachment; garnishment; encumbrance (including any easement, exception, reservation or limitation, right of way, and the like); conditional sale, title retention or other similar agreement, arrangement, device or restriction; preemptive or similar right; any financing lease involving substantially the same economic effect as any of the foregoing; the filing of any financing statement under the Uniform Commercial Code or comparable law of any jurisdiction; restriction on sale, transfer, assignment, disposition or other alienation; or any option, equity, claim or right of or obligation to, any other Person, of whatever kind and character.

Losses shall have the meaning set forth in Section 9.

Material Adverse Effect means a change, event or occurrence that, individually or together with any other change(s), event(s) or occurrence(s), has had or would be reasonably expected to have a material adverse change or effect on the cash flow position, results of operations or prospects of Developer or the Development Towers, as applicable.

Minimum Conditions mean the conditions that, unless expressly waived by [***], must be satisfied by Developer with respect to each Development Tower at Closing (or earlier on a Milestone Payment Date associated with the Milestone specified on Exhibit A) and that are set forth in Exhibit A.

Milestone Payment Date shall have the meaning set forth in Section 2(c).

Organic Document shall mean, (a) with respect to a Person which is a corporation, its charter, its by-laws and all shareholder agreements, voting trusts and similar arrangements applicable to any of its capital stock, (b) with respect to a Person which is a partnership, its agreement and certificate of partnership, any agreements among partners, and any management and similar agreements between the partnership and any general partners (or any Affiliate thereof) and (c) with respect to a Person which is a limited liability company, its certificate of formation, its limited liability company agreement, any agreements among members of such Person and similar agreements.

Permitted Liens shall mean (a) Liens on real estate or other property for taxes, assessments, governmental charges or levies not yet delinquent and those the non-payment of which is being diligently contested in good faith by appropriate proceedings and for which adequate reserves have been set aside on the books of Developer, but only so long as no foreclosure, distraint, sale or similar proceedings have been commenced with respect thereto; (b) Liens of carriers, warehousemen, mechanics, vendors (solely to the extent arising by operation of law), carriers, workmen, repairmen, laborers and materialmen or other similar encumbrances incurred in the Ordinary Course of Business for sums not yet due or being diligently contested in good faith, if reserves or appropriate provisions shall have been made therefor; (c) easements, rights-of-way, zoning restrictions, licenses, reservations or restrictions on use and other similar encumbrances on the use of real property which do not materially interfere with the ordinary use of such property in the same or substantially similar manner as such is currently used; (d) existing building restrictions, ordinances, easements of roads, privileges, or rights of public service companies; and (e) mortgages or other liens made or suffered by and through a Ground Lessor on or affecting real property of which any Site is a part.

Person means any natural individual or any entity including any governmental authority or body.

[***] Indemnified Parties shall have the meaning set forth in Section 9.

Purchase Price shall have the meaning set forth in Section 2(b).

Qualified Tenant means [***] or any other Tenant approved by [***].

Related Contract means an agreement between Developer or an Affiliate and a third party not affiliated with Developer, pursuant to which a third party provides goods and services to, or which otherwise relates to, the Site (e.g., a maintenance agreement).

Search Ring means a physical location within 50 meters of a point expressed as a longitude and latitude within which operators would install their telecommunications equipment if a Development Tower would be available in such search ring.

Second Milestone shall have the meaning set forth in Section 2.

Site shall have the meaning set forth in Section 2(a).

Site Acquisition Map means a map showing an area for the installation of wireless antennas as proposed by a carrier.

Tenant means a lessee or tenant under a Tenant Lease.

Tenant Lease means any lease agreement pursuant to which a leasehold interest, leasehold estate or other real property interest on a Development Tower has been demised to a Qualified Tenant, including the associated access easements and rights of way.

Territory shall have the meaning set forth in the Recitals. 

Third Milestone shall have the meaning set forth in Section 2. Tower means a wireless communications tower.

Tower Assets shall mean, individually, and collectively, all of the real and personal tangible and intangible assets, properties and rights owned by Developer that acts as seller under the Asset Purchase Agreement applicable to the relevant Development Towers, wherever situated and located, that are used in, or accounted for as a part of, the ownership and operation of relevant Development Towers and their Sites, including without limitation the following:

	  	1.      	

   the Towers located at the Sites;

	 	 	

   
 
	  	2.      	

   all buildings, structures, improvements and fixtures located at the Sites and owned (or proposed to be used) by Developer in connection with the ownership and operation of the Tower Assets (the “Improvements”);

	 	 	

   
 
	  	3.      	

   all physical assets (other than Towers, Improvements and other real property and interests therein) owned by Developer and located at the Sites (the “Equipment”);

	 	 	

   
 
	  	4.      	

   all Ground Lease Options;

	 	 	

   
 
	  	5.      	

   all Ground Leases related to the Sites;

	 	 	

   
 
	  	6.      	

   all easements relating to the Sites;

	 	 	

   
 
	  	7.      	

   all Related Contracts relating exclusively to the Sites;

	 	 	

   
 
	  	8.      	

   all Tenant Leases relating to the Sites;

	 	 	

   
 
	  	9.      	

   (i) the security deposits (if any) from tenants paid to Developer under the Tenant Leases and to ground lessors under the Ground Lease Options or Ground Leases relating to the Sites (collectively, the “Security Deposits”), (ii) all rights under any Governmental Authorizations held by Developer with respect to the Sites or the operation of the Tower Assets, (iii) utility deposits and reservation fees paid by or on behalf of Developer with respect to the Sites; (iv) any condemnation or eminent domain proceeds received by Developer after the date hereof with respect to the such Site; and (v) any insurance proceeds, and causes of action

	 	 	

   related to damaged or destroyed property included in the Tower Assets that has not been repaired or replaced prior to Closing; and

	 	 	

   
 
	  	10.      	

   the Due Diligence Items.

Term shall have the meaning set forth in Section 1(a).

Tower Cash Flow means, with respect to any Development Tower, the difference of the Tower Revenue minus an amount equal to the product of [***] times the sum of (i) the aggregate monthly amount of easement “rent” or ground rent (including any revenue share payments payable to the landlords thereunder or any third parties) as of the date of determination, and (ii) monthly operating expenses including and not limited to: (a) monitoring and utility expenses (including telephone charges) for those Development Towers requiring monitoring or lighting under either Applicable Law, (b) any discounts to Tenants or third parties, (c) landlord requirements, (d) zoning requirements, or any other Applicable Law, (e) the monthly amount of real estate taxes and personal property taxes (or similar type taxes), including municipal Taxes, if any, (f) insurance cost of US $[***] per month; (g) maintenance expense of US [***] per month; (h) security expense, (i) municipal inspection fees, and (j) any other expense related or attributed to that Development Tower. All aspects of Tower Cash Flow as of any date, will be calculated using the official interbank exchange rate as of such date.

Tower Revenue means, as of any date (the “Date of Measurement”) with respect to any Tower, an amount equal to the product of twelve (12) times the monthly rent as of the date of determination of each Included Tenant Lease; provided, however, such amount (i) shall not include any security deposits, prepaid rents (unless taken into income by [***]), refunds to tenants, sales, property, excise or similar taxes (including VAT) imposed by Governmental Authorities and collected from subtenants, pass through expenses collected from any tenants, to the extent that such pass through expenses are not deducted from Tower Cash Flow, and any tenant’s reimbursement of ground rent if land underlying the Site has been purchased, and (ii) shall include, in the case of prepaid rent, an apportioned amount of such prepaid rent attributable to such monthly period. All aspects of Tower Revenue as of any date, will be calculated using the official interbank exchange rate as of such date.

Use Right means a twenty (20) year exclusive use right (in the form of a lease) over the land on which a Tower is located. No rent or lease payments shall be payable by [***] during the term of the Use Right. For the avoidance of doubt, pursuant to a Use Right, Purchaser will be only granted the right to use such real property and not the ownership as the owner of the real property retains the ownership); provided, however, that the Purchaser may have the option to purchase such land on which a Tower is located, at any time during the thirty (30) year Use Right term, at one (1) times the Tower Cash Flow as of the applicable Closing Date of such Tower.

VAT means value added tax or similar value added tax in the relevant jurisdiction.

Appendix B

At each Closing, Developer shall execute and deliver all of the following documents, each in form and substance reasonably acceptable to [***] (collectively, the “Collateral Documents”):

(i) Form of Asset Purchase Agreement. A duly executed form of Asset Purchase Agreement (the “Asset Purchase Agreement”) that shall contain representations, warranties, covenants, closing conditions, and indemnities as set forth in the Colombia Purchase Agreement, in each case, as conformed to Applicable Law and approved by [***] and [***]’s local counsel.

(ii) Payment Certificate. An original certificate (a “Payment Certificate”) signed by an executive officer of Developer certifying that (A) the representations and warranties of Developer in this Agreement and the Asset Purchase Agreement relating to the Development Towers (and the related Tower Assets and Sites) are true and correct in all material respects as of the applicable Closing Date, and (ii) Developer has performed all agreements contained in this Agreement and the Purchase Agreement required to be performed by Developer at or before the applicable Closing.

(iii) Assignment and Assumption of Ground Leases. A duly executed and acknowledged original assignment and assumption of all of Developer’s right, title and interest in and to any Ground Lease to [***], in each instance in a form approved by [***], and [***]’s local counsel (the “Assignment and Assumption of Ground Lease”);

(iv) Assignment and Assumption of Tenant Leases. A duly executed and acknowledged original assignment and assumption of all of Developer’s right, title and interest in and to any Tenant Lease to [***], in each instance in a form approved by [***], and [***]’s local counsel (the “Assignment and Assumption of Tenant Lease”);

(v) Assignment and Assumption of Governmental Authorizations. If required by Applicable Law, a duly executed and acknowledged original assignment and assumption of all of Developer’s right, title and interest in and to any Governmental Authorizations to [***], in each instance in a form approved by [***], and [***]’s local counsel (the “Assignment and Assumption of Governmental Authorizations”);

(vi) Assignment and Assumption of Related Contracts. A duly executed and acknowledged original assignment and assumption of all of Developer’s right, title and interest in and to any Related Contracts, if any, to [***], in each instance in a form approved by [***], and [***]’s local counsel (the “Assignment and Assumption of Related Contracts”);

(vii) Third Party Consents. Such third party consents required for the transfer of the Development Towers (and the related Tower Assets and Sites) from Developer to [***].

(viii) Lien Releases. Duly executed lien releases, dated as of the applicable Closing Date, evidencing the release of liens on or other security interests in the Tower

Assets, if any, other than Permitted Liens, and confirmatory payoff letters from the applicable secured parties.

(ix) Due Diligence Items. Originals or copies of all Due Diligence Items.

(x) Resolutions and Organic Documents. A certificate of Developer signed by an executive officer of such entity, certifying to and attaching (a) a copy of resolutions of the governing body of such entity authorizing the execution, delivery and performance of this Agreement and the other Collateral Documents by such entity, which resolutions were duly adopted and are in full force and effect, (b) the Organic Documents of such entity (c) a certificate from the applicable Authority that such entity is in good standing setting forth each of the persons executing and delivering this Agreement and Collateral Documents to which such entity is a party who has or have the authority to execute, deliver and consummate this Agreement and each other Collateral Document; and

(xi) Other Documents. Such other documents as may be reasonably requested by [***] or its local counsel in order to effectuate and carry out the intent of this Agreement.

Notwithstanding the foregoing, [***] and Developer agree that at each Closing occurring under this Agreement, [***] and Developer shall execute a Management Agreement (as hereinafter defined) pursuant to which [***] will be designated as a the sole and exclusive “manager” of the Development Towers acquired at such Closing (to the extent that such Development Towers require the consent of the Tenant to assign Developer’s rights under such Development Tower), until such time as such consent is obtained. Notwithstanding the foregoing, Developer agrees that the applicable Asset Purchase Agreement shall provide that (i) Developer deliver and diligently obtain such consents after the applicable Closing; provided, however, that Developer shall not be required to notify any Tenant of the potential assignment to [***] of any given Development Tower until the one (1) year anniversary of the first Closing hereunder (and then upon [***] after each subsequent Closing hereunder), and (ii) some or all of the Fifth Milestone be withheld from Developer until all such Tenant consents applicable to such Closing are obtained, and (iii) at the Closing Developer and [***] will execute and deliver at each Closing a deposit account control agreement acceptable to [***] providing for [***]’s control of the bank account to which rents are paid by the Tenants of the applicable Development Tower. As used herein, the term “Management Agreement” shall mean an agreement executed at the applicable Closing acceptable to [***], by and between Developer and [***] designating [***] the sole and exclusive “manager” of the applicable Development Towers which shall include, without limitation, (i) the sole and absolute right to the rents collected from the applicable Tenants, (ii) obligation of Developer to forward all rents to an account designated by [***] within one (1) Business Day after receipt by Developer, and (iii) the execution and delivery of a power of attorney that [***] can unilaterally deliver to the applicable Tenants in the event of a default by Developer under the Management Agreement immediately directing all Tenants to direct rent payable directly to [***].

EXHIBIT A

MINIMUM CONDITIONS

The following “Minimum Conditions” apply to Development Towers located in each of the Territories.

	

Each Development Tower shall be on owned land, easement land or leased land with no revenue share payable to ground owner, with a minimum initial term of [***] years and a minimum total term of [***] years and clean recorded chain of title (First Milestone).

	

Each Development Tower shall have all Applicable Permits and governmental authorization obtained in accordance with FCPA laws and regulations as well as local and Federal laws and regulations.

	

Development Towers shall be constructed for Qualified Tenants (Second Milestone).

	

Each Development Tower shall have a signed Anchor Tenant Lease, with a minimum initial non-cancellable term of [***] years in length and for which upon construction the applicable Qualified Tenant would be obligated to commence rental payments (Third Milestone).

	

Rent shall be payable in local currency.

	

Development Towers shall be designed with ground and structure capacity for three (3) carriers. Tower should be designed in accordance with the then in place TIA/EIA-222 standards or any other applicable standards in the Territory and be in compliance with local building code requirements.

	

Development Towers shall have permanent power source established for the Anchor Tenant with a meter and with capacity to expand utility power for up to three additional tenants or the Development Tower shall already have permanent utility power established for the Anchor Tenant Lease with a meter and with capacity to expand utility power for up to three additional tenants or the Anchor Tenant Lease provides that the applicable Anchor Tenant is obligated to provide such permanent power source.Exhibit

EXHIBIT 10.1

PIPER JAFFRAY COMPANIES

$175,000,000

FIXED RATE SENIOR NOTES, CLASS A AND CLASS B

______________

NOTE PURCHASE AGREEMENT

______________

Dated October 15, 2019

TABLE OF CONTENTS

	
			
	SECTION
	HEADING
	PAGE

	 
	 
	 

	SECTION 1.
	AUTHORIZATION OF NOTES
	1

	Section 1.1.
	Description of Notes
	1

	Section 1.2.
	Interest Rate
	1

	 
	 
	 

	SECTION 2.
	SALE AND PURCHASE OF NOTES
	2

	 
	 
	 

	SECTION 3.
	CLOSING
	2

	 
	 
	 

	SECTION 4.
	CONDITIONS TO CLOSING
	2

	Section 4.1.
	Representations and Warranties
	2

	Section 4.2.
	Performance; No Default
	2

	Section 4.3.
	Compliance Certificates
	3

	Section 4.4.
	Opinions of Counsel
	3

	Section 4.5.
	Purchase Permitted By Applicable Law, Etc.
	3

	Section 4.6.
	Sale of Other Notes
	3

	Section 4.7.
	Payment of Special Counsel Fees
	3

	Section 4.8.
	Private Placement Number
	4

	Section 4.9.
	Changes in Corporate Structure
	4

	Section 4.10.
	Proceedings and Documents
	4

	 
	 
	 

	SECTION 5.
	REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	4

	Section 5.1.
	Organization; Power and Authority
	4

	Section 5.2.
	Authorization, Etc.
	4

	Section 5.3.
	Disclosure
	4

	Section 5.4.
	Organization and Ownership of Shares of Subsidiaries; Affiliates
	5

	Section 5.5.
	Financial Statements; Material Liabilities
	5

	Section 5.6.
	Compliance with Laws, Other Instruments, Etc.
	6

	Section 5.7.
	Governmental Authorizations, Etc.
	6

	Section 5.8.
	Litigation; Observance of Agreements, Statutes and Orders
	6

	Section 5.9.
	Taxes
	6

	Section 5.10.
	Title to Property; Leases
	7

	Section 5.11.
	Licenses, Permits, Etc.
	7

	Section 5.12.
	Compliance with ERISA
	7

	Section 5.13.
	Private Offering by the Company
	8

	Section 5.14.
	Use of Proceeds; Margin Regulations
	8

	Section 5.15.
	Existing Indebtedness; Future Liens
	8

	Section 5.16.
	Foreign Assets Control Regulations, Etc.
	9

	Section 5.17.
	Status under Certain Statutes
	9

	
			
	Section 5.18.
	Environmental Matters
	9

	Section 5.19.
	Other Securities
	10

	Section 5.20.
	Internal Controls
	10

	Section 5.21.
	Investment Company Act
	10

	 
	 
	 

	SECTION 6.
	REPRESENTATIONS OF THE PURCHASERS
	11

	Section 6.1.
	Purchase for Investment
	11

	Section 6.2.
	Source of Funds
	11

	 
	 
	 

	SECTION 7.
	INFORMATION AS TO COMPANY
	12

	Section 7.1.
	Financial and Business Information
	12

	Section 7.2.
	Officer’s Certificate
	15

	Section 7.3.
	Visitation
	15

	 
	 
	 

	SECTION 8.
	PAYMENT AND PREPAYMENT OF THE NOTES
	16

	Section 8.1.
	Maturity
	16

	Section 8.2.
	Allocation of Partial Prepayments
	16

	Section 8.3.
	Maturity; Surrender, Etc.
	16

	Section 8.4.
	Purchase of Notes
	16

	Section 8.5.
	Change in Control
	17

	 
	 
	 

	SECTION 9.
	AFFIRMATIVE COVENANTS
	19

	Section 9.1.
	Compliance with Law
	19

	Section 9.2.
	Insurance
	19

	Section 9.3.
	Maintenance of Properties
	19

	Section 9.4.
	Payment of Taxes and Claims
	19

	Section 9.5.
	Corporate Existence, Etc.
	20

	Section 9.6.
	Books and Records
	20

	Section 9.7.
	Reserved
	20

	Section 9.8.
	Minimum Regulatory Net Capital
	20

	Section 9.9.
	Reserved
	20

	Section 9.10.
	Minimum Operating Cash Flow to Consolidated Fixed Charges
	20

	 
	 
	 

	SECTION 10.
	NEGATIVE COVENANTS
	20

	Section 10.1.
	Transactions with Affiliates
	20

	Section 10.2.
	Merger, Consolidation, Etc.
	21

	Section 10.3.
	Line of Business
	21

	Section 10.4.
	Terrorism Sanctions Regulations
	21

	Section 10.5
	Restricted Payments
	22

	 
	 
	 

	SECTION 11.
	EVENTS OF DEFAULT
	22

	 
	 
	 

	SECTION 12.
	REMEDIES ON DEFAULT, ETC.
	24

- ii -

	
			
	Section 12.1.
	Acceleration
	24

	Section 12.2.
	Other Remedies
	24

	Section 12.3.
	Rescission
	25

	Section 12.4.
	No Waivers or Election of Remedies, Expenses, Etc.
	25

	 
	 
	 

	SECTION 13.
	REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES
	25

	Section 13.1.
	Registration of Notes
	25

	Section 13.2.
	Transfer and Exchange of Notes
	25

	Section 13.3.
	Replacement of Notes
	26

	Section 13.4.
	Book-Entry Provisions for Global Notes
	27

	 
	 
	 

	SECTION 14.
	PAYMENTS ON NOTES
	28

	Section 14.1.
	Place of Payment
	28

	Section 14.2.
	Home Office Payment
	28

	 
	 
	 

	SECTION 15.
	EXPENSES, ETC.
	29

	Section 15.1.
	Transaction Expenses
	29

	Section 15.2.
	Survival
	29

	 
	 
	 

	SECTION 16.
	SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT
	29

	 
	 
	 

	SECTION 17.
	AMENDMENT AND WAIVER
	29

	Section 17.1.
	Requirements
	29

	Section 17.2.
	Solicitation of Holders of Notes
	30

	Section 17.3.
	Binding Effect, Etc.
	30

	Section 17.4.
	Notes Held by Company, Etc.
	30

	 
	 
	 

	SECTION 18.
	NOTICES
	31

	 
	 
	 

	SECTION 19.
	REPRODUCTION OF DOCUMENTS
	31

	 
	 
	 

	SECTION 20.
	RESERVED
	32

	 
	 
	 

	SECTION 21.
	SUBSTITUTION OF PURCHASER
	32

	 
	 
	 

	SECTION 22.
	MISCELLANEOUS
	32

	Section 22.1.
	Successors and Assigns
	32

	Section 22.2.
	Payments Due on Non-Business Days
	32

	Section 22.3.
	Accounting Terms
	32

	Section 22.4.
	Severability
	33

	Section 22.5.
	Construction, Etc.
	33

	Section 22.6.
	Counterparts
	33

	Section 22.7.
	Governing Law
	33

- iii -

	
			
	Section 22.8.
	Jurisdiction and Process; Waiver of Jury Trial
	33

	Section 22.9.
	Piper Jaffray & Co. Execution
	34

    

- iv -

	
			
	SCHEDULE A
	—
	INFORMATION RELATING TO PURCHASERS

	 
	 
	 

	SCHEDULE B
	—
	DEFINED TERMS

	 
	 
	 

	SCHEDULE 5.3
	—
	Disclosure Materials

	 
	 
	 

	SCHEDULE 5.4
	—
	Subsidiaries of the Company and Ownership of Subsidiary Stock

	 
	 
	 

	SCHEDULE 5.5
	—
	Financial Statements

	 
	 
	 

	SCHEDULE 5.15
	—
	Existing Indebtedness

	 
	 
	 

	EXHIBIT A-1
	—
	Form of Fixed Rate Senior Note(s)

	 
	 
	 

	EXHIBIT A-2
	—
	Form of Fixed Rate Global Notes

	 
	 
	 

	EXHIBIT 4.4
	—
	Form of Opinion of Special Counsel for the Company

- v -

PIPER JAFFRAY COMPANIES
800 Nicollet Mall, Suite 1000
Minneapolis, Minnesota 55402

FIXED RATE SENIOR NOTES, CLASS A AND CLASS B

October 15, 2019
TO THE PURCHASERS:
Ladies and Gentlemen:
PIPER JAFFRAY COMPANIES, a Delaware corporation (the “Company”), agrees with each of the purchasers whose name is identified on the Purchaser Notice (each, a “Purchaser” and, collectively, the “Purchasers”) as follows:
		
	SECTION 1.
	AUTHORIZATION OF NOTES.

Section 1.1.    Description of Notes.  The Company hereby authorizes the issuance and sale of $50,000,000 aggregate principal amount of its Fixed Rate Senior Notes, Class A due October 15, 2021 (the “Class A Notes”), and $125,000,000 aggregate principal amount of its Fixed Rate Senior Notes, Class B due October 15, 2023 (the “Class B Notes”, and together with the Class A Notes, the “Notes”, each such term to include any such notes issued in substitution therefor (including Global Notes) pursuant to Section 13) and the Purchaser wishes to purchase the Notes.  The Notes shall be substantially in the form set out in Exhibit A-1 or A-2, as applicable.  Certain capitalized and other terms used in this Agreement are defined in Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.
 Section 1.2.    Interest Rate.  The Class A Notes and Class B Notes shall bear interest (computed assuming a 360-day year consisting of twelve 30-day months) (a) on the unpaid balance thereof at the rate per annum equal to the Class A Fixed Interest Rate and Class B Fixed Interest Rate, respectively, from the date thereof, payable on April 15 and October 15 in each year (each, an “Interest Payment Date”) commencing on April 15, 2020, until the principal thereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal and on any overdue payment of interest, at a rate per annum from time to time equal to 2% over the applicable rate of interest set forth in clause (a), payable semi-annually on each Interest Payment Date, as aforesaid (or at the option of the registered holder thereof, on demand). 
 Interest payable on each Interest Payment Date will be paid to the holders of the Notes as of the immediately preceding Record Date.  

  “Record Date” means April 5 and October 5 in each year (whether or not a Business Day).
		
	SECTION 2.
	SALE AND PURCHASE OF NOTES.

Subject to the terms and conditions of this Agreement, the Company will issue and sell to Piper Jaffray & Co. as “Initial Purchaser” Class A Notes in the aggregate principal amount of $50,000,000 at the purchase price of 100% of the principal amount thereof and Class B Notes in the aggregate principal amount of $125,000,000 at the purchase price of 100% of the principal amount thereof, and Initial Purchaser will sell to each Purchaser and each Purchaser will purchase from the Initial Purchaser, at the Closing provided for in Section 3, Class A Notes and Class B Notes in the respective principal amounts specified in the Purchaser Notice at the purchase price of 100% of the principal amount thereof.  The Purchasers’ obligations hereunder are several and not joint obligations and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder.
		
	SECTION 3.
	CLOSING.

The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Hunton Andrews Kurth, LLP, 2200 Pennsylvania Avenue, N.W., Washington, D.C., 20037, at 11:00 a.m., New York time, at a closing (the “Closing”) on October 15, 2019 (the “Closing Date”).  At the Closing, the Initial Purchaser will deliver to each Purchaser through the DTC book-entry system pursuant to Section 13.4 (in denominations of at least $100,000, and in integral multiples of $1,000 in excess thereof, as such Purchaser may request) beneficial interests in the Notes, which shall be evidenced by a Global Note dated the Closing Date and registered in the name of Cede & Co., as nominee of DTC, against delivery by such Purchaser to the Initial Purchaser or its order of immediately available funds in the amount of the purchase price therefor by same day settlement process through DTC.  If at the Closing the Initial Purchaser shall fail to tender such Notes to any Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure or such nonfulfillment.  
		
	SECTION 4.
	CONDITIONS TO CLOSING.

Such Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the Closing, of the following conditions:
Section 4.1.    Representations and Warranties.  The representations and warranties of the Company in this Agreement shall be correct when made and at the time of the Closing.
Section 4.2.    Performance; No Default.     The Company shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed 

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or complied with by it prior to the date hereof and prior to or at the Closing and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Section 5.14) no Default or Event of Default shall have occurred and be continuing.  As of the date hereof and as of the Closing Date, neither the Company nor any Subsidiary shall have entered into any transaction since June 30, 2019, that would have been prohibited by Sections 10.1 through 10.4 had such Sections applied since such date.
Section 4.3.    Compliance Certificates.
(a)    Officer’s Certificate.  The Company shall have delivered to such Purchaser an Officer’s Certificate, dated the Closing Date, certifying that the conditions specified in Sections 4.1, 4.2 and 4.9  have been fulfilled.
(b)    Secretary’s Certificate.  The Company shall have delivered to such Purchaser a certificate of its Secretary or Assistant Secretary, dated the Closing Date, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and this Agreement.
Section 4.4.    Opinion of Counsel.  Such Purchaser shall have received opinions in form and substance satisfactory to such Purchaser, dated the date of the Closing from Hunton Andrews  Kurth, LLP, counsel for the Company, covering the matters set forth in Exhibit 4.4 and covering such other matters incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably request (and the Company hereby instructs its counsel to deliver such opinion to the Purchasers). 
Section 4.5.    Purchase Permitted By Applicable Law, Etc.  On the date of the Closing such Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, (b) not violate any applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation.  If requested by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted.
Section 4.6.    Sale of Other Notes.  Contemporaneously with the Closing, the Initial Purchaser shall sell to each other Purchaser and each other Purchaser shall purchase the Notes to be purchased by it at the Closing.  
Section 4.7.    Payment of Special Counsel Fees.  Without limiting the provisions of Section 15.1, the Company shall have paid on or before the Closing the fees, charges and disbursements of the Purchasers’ special counsel, Latham & Watkins LLP, to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing.

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Section 4.8.    Private Placement Number.  A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for each Class of Notes.
Section 4.9.    Changes in Corporate Structure.  The Company shall not have changed its name, jurisdiction of incorporation or organization or corporate form, as applicable, or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5; provided that, any change to the Company’s name that occurs after the Closing Date will be provided to Purchasers by Company within 30 days of the date of such change. 
Section 4.10.    Proceedings and Documents.  All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to such Purchaser and its special counsel, and such Purchaser and its special counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such special counsel may reasonably request.
		
	SECTION 5.
	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

The Company represents and warrants to each Purchaser that:
Section 5.1.    Organization; Power and Authority.  The Company is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  The Company has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement and the Notes and to perform the provisions hereof and thereof.
Section 5.2.    Authorization, Etc.  This Agreement and the Notes have been duly authorized by all necessary corporate action on the part of the Company, and this Agreement constitutes, and upon execution and delivery thereof each Note will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
Section 5.3.    Disclosure.  This Agreement and the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company in connection with the transactions contemplated hereby and identified in Schedule 5.3, and the financial statements listed in Schedule 5.5 (this Agreement and such documents, certificates or other writings and such financial statements delivered to each Purchaser prior to the date hereof being referred to, collectively, as

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the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made.  Except as disclosed in the Disclosure Documents, since June 30, 2019, there has been no change in the financial condition, operations, business, properties or prospects of the Company or any Subsidiary except changes that individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect.  There is no fact known to the Company that could reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents.
Section 5.4.    Organization and Ownership of Shares of Subsidiaries; Affiliates    (a) Schedule 5.4 contains (except as noted therein) complete and correct lists (i) of the Company’s Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, type of organization and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary, (ii) of the Company’s Affiliates, other than Subsidiaries, and (iii) of the Company’s directors and senior officers.
(b)    All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 5.4).
(c)    Each Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact.
(d)    No Subsidiary is a party to, or otherwise subject to any legal, regulatory, contractual or other restriction (other than this Agreement, the agreements listed on Schedule 5.4 and customary limitations imposed by corporate law or similar statutes) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Subsidiary.
Section 5.5.    Financial Statements; Material Liabilities.  The Company has delivered to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on Schedule 5.5.  All of said financial statements (including, in each case, the related schedules and notes) fairly present in all material respects the consolidated financial position of the Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal

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year-end adjustments).   The Company and its Subsidiaries do not have any Material liabilities that are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents.
Section 5.6.    Compliance with Laws, Other Instruments, Etc.  The execution, delivery and performance by the Company of this Agreement and the Notes will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, or any other agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary. 
Section 5.7.    Governmental Authorizations, Etc.  No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of this Agreement or the Notes, except for the filing with the SEC of a Current Report on Form 8-K and a Form D.
Section 5.8.    Litigation; Observance of Agreements, Statutes and Orders.  (a) Except as identified under “Legal Proceedings” in Part I, Item 3 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, and updated in subsequent reports filed with the SEC, there are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary or any property of the Company or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that, if determined adversely to the Company or any Subsidiary, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
(b)    Neither the Company nor any Subsidiary is in default under any term of any agreement or instrument to which it is a party or by which it is bound, or any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including without limitation Environmental Laws or the USA Patriot Act) of any Governmental Authority, which default or violation, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
Section 5.9.    Taxes.  The Company and its Subsidiaries have filed all tax returns that are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which is not individually or in the aggregate Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP.  The Company knows of no basis for any other tax or assessment that could reasonably be expected to have a Material Adverse Effect.  The charges, accruals and reserves on 

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the books of the Company and its Subsidiaries in respect of Federal, state or other taxes for all fiscal periods are adequate.  The Federal income tax liabilities of the Company and its Subsidiaries have been finally determined (whether by reason of completed audits or the statute of limitations having run) for all fiscal years up to and including the fiscal year ended December 31, 2018.
Section 5.10.    Title to Property; Leases.  The Company and its Subsidiaries have good and sufficient title to their respective properties that individually or in the aggregate are Material, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case, free and clear of Liens prohibited by this Agreement.  All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in all material respects. 
Section 5.11.    Licenses, Permits, Etc.  (a) The Company and its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known conflict with the rights of others.
(b)    To the best knowledge of the Company, no product of the Company or any of its Subsidiaries infringes in any material respect any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned by any other Person.
(c)    To the best knowledge of the Company, there is no Material violation by any Person of any right of the Company or any of its Subsidiaries with respect to any patent, copyright, proprietary software, service mark, trademark, trade name or other right owned or used by the Company or any of its Subsidiaries.
Section 5.12.    Compliance with ERISA.  (a)  The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to any Plan, and no event, transaction or condition has occurred or exists that could reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to section 401(a)(29) or 412 of the Code or section 4068 of ERISA, other than such liabilities or Liens as would not be individually or in the aggregate Material.
(b)    The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans), determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities.  The term “benefit liabilities” has the meaning specified in 

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section 4001 of ERISA and the terms “current value” and “present value” have the meaning specified in section 3 of ERISA.
(c)    The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material.
(d)    The expected postretirement benefit obligation (determined as of the last day of the Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Company and its Subsidiaries is not Material.
(e)    The execution and delivery of this Agreement and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code.  The representation by the Company to each Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of such Purchaser’s representation in Section 6.2 as to the sources of the funds used to pay the purchase price of the Notes to be purchased by such Purchaser.
Section 5.13.    Private Offering by the Company.   Neither the Company nor anyone acting on its behalf (including the Initial Purchaser) has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any person other than the Purchasers.  Neither the Company nor anyone acting on its behalf (including the Initial Purchaser) has taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.
Section 5.14.    Use of Proceeds; Margin Regulations.  The Company will use the proceeds of the sale of the Notes for the general corporate purposes of the Company.  No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).  As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U.
Section 5.15.    Existing Indebtedness; Future Liens.  (a) Except as described therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Consolidated Funded Indebtedness of the Company and its Subsidiaries as of the date hereof (including a description of the obligors and obligees, principal amount outstanding and collateral therefor, if any, and Guaranty thereof, if any), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company or its Subsidiaries.  Neither the Company nor any Subsidiary is in default and no waiver of default is 

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currently in effect, in the payment of any principal or interest on any Indebtedness of the Company or such Subsidiary and no event or condition exists with respect to any Indebtedness of the Company or any Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.
(b)    Neither the Company nor any Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company or such Subsidiary, any agreement relating thereto or any other agreement (including, but not limited to, its charter or other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, except as specifically indicated in Schedule 5.15.
Section 5.16.    Foreign Assets Control Regulations, Etc.  (a) Neither the sale of the Notes by the Company hereunder nor its use of the proceeds thereof will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto.  
(b)    Neither the Company nor any Subsidiary (i) is a Person described or designated in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti‐Terrorism Order or (ii) engages in any dealings or transactions with any such Person.  The Company and its Subsidiaries are in compliance, in all material respects, with the USA Patriot Act. 
(c)    No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases that such Act applies to the Company. 
Section 5.17.    Status under Certain Statutes.  Neither the Company nor any Subsidiary is subject to regulation under the Investment Company Act of 1940, as amended, the Public Utility Holding Company Act of 2005, as amended, the ICC Termination Act of 1995, as amended, or the Federal Power Act, as amended.
Section 5.18.    Environmental Matters.  (a) Neither the Company nor any Subsidiary has knowledge of any claim or has received any notice of any claim, and no proceeding has been instituted raising any claim against the Company or any of its Subsidiaries or any of their respective real properties now or formerly owned, leased or operated by any of them or other assets, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect. 
(b)    Neither the Company nor any Subsidiary has knowledge of any facts which would give rise to any claim, public or private, of violation of Environmental Laws or damage to the 

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environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets or their use, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect.
(c)    Neither the Company nor any Subsidiary has stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them and has not disposed of any Hazardous Materials in a manner contrary to any Environmental Laws, in each case, in any manner that could reasonably be expected to result in a Material Adverse Effect; and
(d)    All buildings on all real properties now owned, leased or operated by the Company or any Subsidiary are in compliance with applicable Environmental Laws, except where failure to comply could not reasonably be expected to result in a Material Adverse Effect.
Section 5.19    Other Securities.  Within the preceding six months, neither the Company nor any other person acting on behalf of the Company (including the Initial Purchaser) has offered or sold to any person any Notes, or any securities of the same or a similar class as the Notes, other than the Notes offered or sold to the Purchasers hereunder.  The Company will take reasonable precautions designed to insure that any offer or sale, direct or indirect, in the United States or to any U.S. person (as defined in Rule 902 under the Securities Act) of any Notes or any substantially similar security issued by the Company, within six months subsequent to the date hereof is made under restrictions and other circumstances reasonably designed not to affect the status of the offer and sale of the Notes contemplated by this Agreement as transactions exempt from the registration provisions of the Securities Act.
Section 5.20    Internal Controls.  
(a)    The Company maintains a system of internal control over financial reporting that complies with the requirements of the Exchange Act and has been designed by the Company’s principal executive officer and principal financial officer, or under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  
(b)    To the knowledge of the Company, the Company’s internal control over financial reporting is effective and the Company is not aware of any material weaknesses in its internal control over financial reporting.
(c)    The Company maintains disclosure controls and procedures that comply with the requirements of the Exchange Act; such disclosure controls and procedures have been designed to ensure that material information relating to the Company and its Subsidiaries is made known to the Company’s principal executive officer and principal financial officer by others within those entities; and, to the knowledge of the Company, such disclosure controls and procedures are effective.
Section 5.21    Investment Company Act.  The Company is not, and after giving effect to the offering and sale of the Notes to be issued and sold by the Company under this Agreement and 

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the application of the net proceeds from such sale as described in Section 5.14, will not be required to register as an “investment company,” as such term is defined in the Investment Company Act.
		
	SECTION 6.
	REPRESENTATIONS OF THE PURCHASERS.

Section 6.1.    Purchase for Investment.  Each Purchaser severally represents that it is purchasing the Notes for its own account and not with a view to the distribution thereof in violation of the Securities Act, it being recognized that the Initial Purchaser is selling the Notes hereunder solely to Qualified Institutional Buyers pursuant to Rule 144A promulgated by the SEC under the Securities Act, as amended from time to time (“Rule 144A”).  Each Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes.  Each Purchaser represents that it is a Qualified Institutional Buyer acting for its own account (and not for the account of others) or as a fiduciary or agent for others (which others are also Qualified Institutional Buyers) and is aware that the sale of the Notes to such Purchaser will be made in reliance on Rule 144A.  Each Purchaser further represents that such Purchaser has had the opportunity to ask questions of the Company and received answers concerning the terms and conditions of the sale of the Notes.
Each Purchaser agrees that it will only offer, sell or otherwise transfer the Notes (a) to the Company or the Initial Purchaser, or by, through or in a transaction approved by, the Initial Purchaser, or (b) as long as the Notes are eligible for resale pursuant to Rule 144A, to a Person it reasonably believes is a Qualified Institutional Buyer under Rule 144A that purchases for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the transfer is being made in reliance on Rule 144A.  Each Purchaser acknowledges that the Company and the Initial Purchaser will rely upon the truth and accuracy of the foregoing acknowledgements, representations and agreements and agrees that, if any of the acknowledgements, representations or agreements are no longer accurate, it shall promptly notify the Company and the Initial Purchaser; and if any Purchaser is acquiring any Notes as a fiduciary or agent for one or more Persons who qualifies as Qualified Institutional Buyers, such Purchaser represents that it has sole investment discretion with respect to each such Person and that it has full power to make the foregoing acknowledgements, representations and agreements on behalf of each such Person. Each Purchaser acknowledges that (i) the Initial Purchaser, Piper Jaffray & Co., is a subsidiary of the Company, (ii) its registered representative at Piper Jaffray & Co. in connection with this purchase is an employee of Piper Jaffray & Co., (iii) Piper Jaffray & Co. may compensate such Purchaser’s registered representative by reference to the dollar amount of the Notes such Purchaser is purchasing from the Initial Purchaser and (iv) it is aware that the relationships referred to above pose a potential conflict of interest.
Section 6.2.    Source of Funds.  Each Purchaser severally represents that either:
(a)    The Purchaser is not an “employee benefit plan” or an entity whose underlying assets are deemed to include “plan assets” by reason of the investment by an “employee benefit plan” in the entity within the meaning of 29 C.F.R. Section 2510.3–101; or

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(b)    If the Purchaser is an employee benefit plan or an entity whose underlying assets are deemed to include plan assets by reason of the investment by an employee benefit plan, the purchase and holding of the Notes by the Purchaser will not constitute a prohibited transaction under section 406 of ERISA, other than one with respect to which a statutory or administrative exemption applies.
As used in this Section 6.2, the term “employee benefit plan” shall have the meaning assigned to such term in section 3 of ERISA.
		
	SECTION 7.
	INFORMATION AS TO COMPANY.

Section 7.1.    Financial and Business Information.  The Company shall deliver to each Purchaser, and to each holder and Beneficial Holder of Notes that requests it:
(a)    Quarterly Statements — within 60 days (or such shorter period as is 15 days greater than the period applicable to the filing of the Company’s Quarterly Report on Form 10‐Q (the “Form 10‐Q”) with the SEC regardless of whether the Company is subject to the filing requirements thereof) after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of,
(i)    a consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and
(ii)    consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter,
setting forth, in each case, in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments, provided that delivery within the time period specified above of copies of the Company’s Form 10‐Q prepared in compliance with the requirements therefor and filed with the SEC shall be deemed to satisfy the requirements of this Section 7.1(a), provided, further, that the Company shall be deemed to have made such delivery of such Form 10‐Q if it shall have timely made such Form 10‐Q available on “EDGAR” and on its home page on the worldwide web (at the date of this Agreement located at:  http//www.piperjaffray.com) and shall have given each Purchaser prior notice of such availability on EDGAR and on its home page in connection with each delivery (such availability and notice thereof being referred to as “Electronic Delivery”);
(b)    Annual Statements — within 105 days (or such shorter period as is 15 days greater than the period applicable to the filing of the Company’s Annual Report on

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 Form 10‐K (the “Form 10‐K”) with the SEC regardless of whether the Company is subject to the filing requirements thereof) after the end of each fiscal year of the Company, duplicate copies of
(i)    a consolidated balance sheet of the Company and its Subsidiaries as at the end of such year, and
(ii)    consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries for such year,
setting forth, in each case, in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by
(A)    an opinion thereon of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, and
(B)    a certificate of such accountants stating that they have reviewed this Agreement and stating further whether, in making their audit, they have become aware of any condition or event that then constitutes a Default or an Event of Default, and, if they are aware that any such condition or event then exists, specifying the nature and period of the existence thereof (it being understood that such accountants shall not be liable, directly or indirectly, for any failure to obtain knowledge of any Default or Event of Default unless such accountants should have obtained knowledge thereof in making an audit in accordance with generally accepted auditing standards or did not make such an audit), 
provided that the delivery within the time period specified above of the Company’s Form 10‐K for such fiscal year (together with the Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a‐3 under the Exchange Act) prepared in accordance with the requirements therefor and filed with the SEC, together with the accountant’s certificate described in clause (B) above (the “Accountants’ Certificate”), shall be deemed to satisfy the requirements of this Section 7.1(b), provided, further, that the Company shall be deemed to have made such delivery of such Form 10‐K if it shall have timely made Electronic Delivery thereof, in which event the Company shall separately deliver, concurrently with such Electronic Delivery, the Accountants’ Certificate;
(c)    SEC and Other Reports — promptly upon their becoming available, one copy of (i) each financial statement, report, notice or proxy statement sent by the Company or any Subsidiary to its principal lending banks as a whole (excluding information sent to such banks in the ordinary course of administration of a bank facility, such as information 

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relating to pricing and borrowing availability) or to its public securities holders generally, and (ii) each regular or periodic report, each registration statement (without exhibits except as expressly requested by such Purchaser, holder or Beneficial Holder of Notes), and each prospectus and all amendments thereto filed by the Company or any Subsidiary with the SEC and of all press releases and other statements made available generally by the Company or any Subsidiary to the public concerning developments that are Material; provided, that the Company shall be deemed to have made such delivery if it shall timely have made Electronic Delivery thereof;
(d)    Notice of Default or Event of Default — promptly, and in any event within five days after a Responsible Officer becoming aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section 11(f), a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto;
(e)    ERISA Matters — promptly, and in any event within five days after a Responsible Officer becoming aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto:
(i)    with respect to any Plan, any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof; or
(ii)    the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multi-employer Plan that such action has been taken by the PBGC with respect to such Multi-employer Plan; or
(iii)    any event, transaction or condition that could result in the incurrence of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to the Plans, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, could reasonably be expected to have a Material Adverse Effect; 
(f)    Notices from Governmental Authority — promptly, and in any event within 30 days of receipt thereof, copies of any publicly available notice to the Company or any Subsidiary from any Federal or state Governmental Authority relating to any order, ruling, 

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statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect; and
(g)    Requested Information — with reasonable promptness, such other publicly available data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries (including, but without limitation, actual copies of the Company’s Form 10‐Q and Form 10‐K) or relating to the ability of the Company to perform its obligations hereunder and under the Notes as from time to time may be reasonably requested by such Purchaser, holder or Beneficial Holder of Notes or such information regarding the Company required to satisfy the requirements of Rule 144A in connection with any contemplated transfer of the Notes.  
Section 7.2.    Officer’s Certificate.  Each set of financial statements delivered to a Purchaser, holder or Beneficial Holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer setting forth (which, in the case of Electronic Delivery of any such financial statements, shall be by separate concurrent delivery of such certificate to each holder of Notes):
(a)    Covenant Compliance — the information (including detailed calculations) required in order to establish whether the Company was in compliance with the requirements of Section 9.8 through Section 9.10, inclusive, during the quarterly or annual period covered by the statements then being furnished (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence); and
(b)    Event of Default — a statement that such Senior Financial Officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including, without limitation, any such event or condition resulting from the failure of the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.
Section 7.3.    Visitation.  The Company shall permit the representatives of each Purchaser, holder and Beneficial Holder of Notes:
(a)    No Default — if no Default or Event of Default then exists, at the expense of such Purchaser, holder or Beneficial Holder of Notes and upon reasonable prior notice to the Company, to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs,

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finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be reasonably requested; and
(b)    Default — if a Default or Event of Default then exists, at the expense of the Company to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be requested.
In connection with the exercise by a Purchaser, holder or Beneficial Holder of Notes of any rights under this Section 7.3, the Company may require such Purchaser, holder or Beneficial Holder of Notes to execute a confidentiality agreement containing customary terms.  
		
	SECTION 8.
	PAYMENT AND PREPAYMENT OF THE NOTES.

Section 8.1.    Maturity.  As provided therein, the entire unpaid principal balance of the Class A Notes and the Class B Notes shall be due and payable on their respective Applicable Maturity Date.  Except as provided in Section 8.5, the Notes are not prepayable, in whole or in part.
Section 8.2.    Allocation of Partial Prepayments.  In the case of each partial prepayment of a Class of the Notes, the principal amount of such Class of Notes to be prepaid shall be allocated among all of the Notes of the same Class at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts of the Notes of such Class not theretofore called for prepayment.
Section 8.3.    Maturity; Surrender, Etc.      In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note of the applicable Class to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date.  From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest as aforesaid, interest on such principal amount shall cease to accrue.  Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note.
Section 8.4.    Purchase of Notes.      The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes.  The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant

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to any payment or prepayment of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes.
Section 8.5.    Change in Control.  
(a)    Notice of Change in Control or Control Event.  The Company will, within 15 Business Days after any Responsible Officer has knowledge of the occurrence of any Change in Control or Control Event, give written notice of such Change in Control or Control Event to each holder of Notes unless notice in respect of such Change in Control (or the Change in Control contemplated by such Control Event) shall have been given pursuant to subparagraph (b) of this Section 8.5.  If a Change in Control has occurred, such notice shall contain and constitute an (i) offer to prepay each Class of Notes as described in subparagraph (c) of this Section 8.5 or (ii) an election to prepay each Class of Notes as described in Subparagraph (e) of this Section 8.5 and, in each case, shall be accompanied by the certificate described in subparagraph (h) of this Section 8.5.
(b)    Condition to Company Action.  The Company will not take any action that consummates or finalizes a Change in Control unless (i) at least 15 Business Days prior to such action it shall have given to each holder of Notes written notice containing and constituting an offer to prepay each Class of Notes as described in subparagraph (c) of this Section 8.5 or an election to prepay each Class of Notes as described in subparagraph (e) of this Section 8.5, accompanied by the certificate described in subparagraph (h) of this Section 8.5, and (ii) contemporaneously with such action, it prepays all Notes required to be prepaid in accordance with this Section 8.5.
(c)    Offer to Prepay Notes.  The offer to prepay each Class of Notes contemplated by subparagraphs (a) and (b) of this Section 8.5 shall be an offer to prepay, in accordance with and subject to this Section 8.5, all, but not less than all, of the Notes of such Class held by each holder and Beneficial Holder of such Class of Notes on a date specified in such offer (the “Proposed Prepayment Date”).  If such Proposed Prepayment Date is in connection with an offer contemplated by subparagraph (a) of this Section 8.5, such date shall be not less than 20 days and not more than 30 days after the date of such offer (if the Proposed Prepayment Date shall not be specified in such offer, the Proposed Prepayment Date shall be the 20th day after the date of such offer).
(d)    Acceptance; Rejection.  A holder or Beneficial Holder of Notes of a Class may accept or reject the offer to prepay its Notes of such Class made pursuant to this Section 8.5 by causing a notice of such acceptance or rejection to be delivered to the Company at least 5 Business Days prior to the Proposed Prepayment Date.  A failure by a holder or Beneficial Holder of Notes of a Class to respond to an offer to prepay such Class made pursuant to this Section 8.5 shall be deemed to constitute a rejection of such offer by such holder or Beneficial Holder of Notes of such Class.  For the avoidance of doubt, a holder or Beneficial Holder of more than one Class of Notes shall have a separate right to accept or reject such offer with respect to each Class.
(e)    Company Election to Prepay Notes.  The Company may, at its option, elect to prepay the Notes in whole, but not in part, upon the occurrence of a Change in Control.  The Company shall prepay, all, but not less than all, the Class A Notes and Class B Notes held by each holder

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and Beneficial Holder of Notes on a date specified in an optional prepayment notice (the “Proposed Prepayment Date”).  Such date shall be not less than 20 days and not more than 30 days after the date of such notice (if the Proposed Prepayment Date shall not be specified in such notice, the Proposed Prepayment Date shall be the 20th day after the date of such notice).
(f)    Prepayment.  (i) Prepayment of the Notes to be prepaid pursuant to subparagraph (c) of this Section 8.5 shall be at 101% of the principal amount of such Notes, together with interest on such Notes accrued to the date of prepayment.  The prepayment shall be made on the Proposed Prepayment Date except as provided in subparagraph (g) of this Section 8.5. 
 (ii) Prepayment of the Notes to be prepaid pursuant to subparagraph (e) of  this Section 8.5 shall be at the sum of (A) the greater of (i) 100% of the principal amount of such Notes, or (ii) the Make-Whole Amount plus (B) interest on such Notes accrued to the date of prepayment.  The prepayment shall be made on the Proposed Prepayment Date. 
(g)    Deferral Pending Change in Control.  The obligation of the Company to prepay Notes pursuant to the offers required by subparagraph (b) and accepted in accordance with subparagraph (d) of this Section 8.5, or an election by the Company pursuant to subparagraph (e) of this Section 8.5, is subject to the occurrence of the Change in Control in respect of which such offers and acceptances, or election, shall have been made.  In the event that such Change in Control does not occur on the Proposed Prepayment Date in respect thereof (or any date specified in the election by the Company pursuant to subparagraph (e) of this Section 8.5), the prepayment shall be deferred until and shall be made on the date on which such Change in Control occurs.  The Company shall keep each holder of Notes reasonably and timely informed of (i) any such deferral of the date of prepayment, (ii) the date on which such Change in Control and the prepayment are expected to occur, and (iii) any determination by the Company that efforts to effect such Change in Control have ceased or been abandoned (in which case the offers and acceptances, or election by the Company to prepay, made pursuant to this Section 8.5 in respect of such Change in Control shall be deemed rescinded).
(h)    Officer’s Certificate.  Each offer or election to prepay the Notes pursuant to this Section 8.5 shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated the date of such offer or election, specifying: (i) the Proposed Prepayment Date; (ii) that such offer or election is made pursuant to this Section 8.5; (iii) the principal amount of each Note offered or elected to be prepaid; (iv) the interest that would be due on each Note offered or elected to be prepaid, accrued to the Proposed Prepayment Date; (v) that the conditions of this Section 8.5 have been fulfilled; and (vi) in reasonable detail, the nature and date or proposed date of the Change in Control.
(i)    “Change in Control” Defined.  “Change in Control” is defined in Schedule B. 
(j)    “Control Event” Defined.  “Control Event” means:
(i)     the execution by the Company or any of its Subsidiaries or Affiliates of any agreement or letter of intent with respect to any proposed transaction or event or series of 

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transactions or events which, individually or in the aggregate, may reasonably be expected to result in a Change in Control, or
(ii)     the execution of any written agreement which, when fully performed by the parties thereto, would result in a Change in Control.
		
	SECTION 9.
	AFFIRMATIVE COVENANTS.    

The Company covenants that so long as any of the Notes are outstanding:
Section 9.1.    Compliance with Law.  Without limiting Section 10.4, the Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, ERISA, the USA Patriot Act and Environmental Laws, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case, to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
Section 9.2.    Insurance.  The Company will, and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.
Section 9.3.    Maintenance of Properties.  The Company will, and will cause each of its Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section shall not prevent the Company or any Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Company has concluded that such discontinuance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
Section 9.4.    Payment of Taxes and Claims.  The Company will, and will cause each of its Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of the Company or any Subsidiary, provided that neither the Company nor any Subsidiary need pay any such tax, assessment, charge, levy or claim if (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in 

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appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (ii) the nonpayment of all such taxes, assessments, charges, levies and claims in the aggregate could not reasonably be expected to have a Material Adverse Effect. 
Section 9.5.    Corporate Existence, Etc.  Subject to Section 10.2, the Company will at all times preserve and keep in full force and effect its corporate existence.  Subject to Section 10.2, the Company will at all times preserve and keep in full force and effect the corporate existence of each of its Subsidiaries (unless merged into the Company or a Wholly-Owned Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate existence, right or franchise could not, individually or in the aggregate, have a Material Adverse Effect. 
Section 9.6.    Books and Records.  The Company will, and will cause each of its Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Subsidiary, as the case may be.
Section 9.7.    Reserved.  
Section 9.8.    Minimum Regulatory Net Capital.  The Company will cause its Subsidiary, Piper Jaffray & Co., to maintain Regulatory Net Capital of at least $120,000,000.
Section 9.9.    Adjusted Leverage Ratio.  The Company will maintain, as of the end of each fiscal quarter commencing with the fiscal quarter ending December 31, 2019, an Adjusted Leverage Ratio of not more than 5.50 to 1.00.
Section 9.10.    Minimum Operating Cash Flow to Consolidated Fixed Charges.  The Company will maintain, as of the end of each fiscal quarter, commencing with the fiscal quarter ending December 31, 2019, a ratio of Operating Cash Flow for the period commencing on the first day of the related fiscal year, through the end of such fiscal quarter to Consolidated Fixed Charges for the period commencing on the first day of the related fiscal year, through the end of such fiscal quarter, of at least 2.00 to 1.00.
		
	SECTION 10.
	NEGATIVE COVENANTS.    

The Company covenants that so long as any of the Notes are outstanding:
Section 10.1.    Transactions with Affiliates.  The Company will not and will not permit any Subsidiary to enter into directly or indirectly any transaction or group of related transactions (including without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except in the ordinary course and pursuant to the reasonable requirements of the Company’s or such Subsidiary’s business and upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate and the Company delivers to each holder of Notes within 10 days after any such transaction 

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or group of related transactions involving aggregate consideration in excess of $25,000,000,     (a) a resolution of the board of directors of the Company set forth in an Officers’ Certificate certifying that such transaction or group of related transactions complies with this Section 10.1 and that such transaction or group of related transactions has been approved by a majority of the members of the board of directors of the Company and (b) an opinion as to the fairness to the Company or such Subsidiary of such transaction or group of related transactions from a financial point of view issued by an accounting, appraisal or investment banking firm of national standing.
Section 10.2.    Merger, Consolidation, Etc.  The Company will not consolidate with or merge with any other Person or sell, convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person unless:
(a)    the successor formed by such consolidation or the survivor of such merger or the Person that acquires by sale, conveyance, transfer or lease all or substantially all of the assets of the Company as an entirety, as the case may be, shall be a solvent corporation or limited liability company organized and validly existing under the laws of the United States or any State thereof (including the District of Columbia), and, if the Company is not such corporation or limited liability company, (i) such corporation or limited liability company shall have executed and delivered to each holder of any Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and the Notes and (ii) such corporation or limited liability company shall have caused to be delivered to each holder of any Notes an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Required Holders, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof; and
(b)    immediately before and immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing.
No such sale, conveyance, transfer or lease of substantially all of the assets of the Company shall have the effect of releasing the Company or any successor corporation or limited liability company that shall theretofore have become such in the manner prescribed in this Section 10.2 from its liability under this Agreement or the Notes.
Section 10.3.    Line of Business.  The Company will not and will not permit any Subsidiary to engage in any business if, as a result, the general nature of the business in which the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company and its Subsidiaries, taken as a whole, are engaged on the date of this Agreement.
Section 10.4.    Terrorism Sanctions Regulations.  The Company will not and will not permit any Subsidiary to (a) become a Person described or designated in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti‐Terrorism Order or (b) engage in any dealings or transactions with any such Person.

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Section 10.5    Restricted Payments.  After the occurrence and during the continuation of an Event of Default, the Company will not make any distribution, payment on account of, or set apart assets for, a sinking or other analogous fund for the purchase, redemption, retirement or other acquisition of any equity or ownership interest of the Company, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of the Company or any Subsidiary. The Company will not make any payment on any Indebtedness of the Company that is subordinated in right of payment to the Notes that is prohibited by the applicable subordination provisions.
		
	SECTION 11.
	EVENTS OF DEFAULT.

An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing:
(a)    the Company defaults in the payment of any principal on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or
(b)    the Company defaults in the payment of any interest on or other amount (for the avoidance of doubt, other than principal) payable in respect of, any Note when due and payable and such default continues for a period of five Business Days; or
(c)    the Company defaults in the performance of or compliance with any term contained in Section 7.1(d), Section 8.5(a), Sections 9.7, 9.8, 9.9 or 9.10, or Sections 10.1 through 10.4; or
(d)    the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in Sections 11(a), (b) and (c)) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this Section 11(d)); or
(e)    any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in this Agreement or in any writing furnished in connection with the transactions contemplated hereby proves to have been false or incorrect in any material respect on the date as of which made; or
(f)    (i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Indebtedness that is outstanding and has an aggregate principal amount of at least $10,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance with any term of any evidence of any Indebtedness that has an aggregate outstanding principal amount of at least $10,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such 

-22-

Indebtedness has become, or has been declared (or one or more Persons are entitled to declare such Indebtedness to be), due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Indebtedness to convert such Indebtedness into equity interests), (x) the Company or any Subsidiary has become obligated to purchase or repay Indebtedness in an aggregate outstanding principal amount of at least $10,000,000 before its regular maturity or before its regularly scheduled dates of payment, or (y) one or more Persons have the right to require the Company or any Subsidiary so to purchase or repay such Indebtedness; or
(g)    the Company or any Subsidiary (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or
(h)    a court or Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company or any of its Subsidiaries, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any of its Subsidiaries, or any such petition shall be filed against the Company or any of its Subsidiaries and such petition shall not be dismissed within 60 days; or
(i)    a final judgment or judgments for the payment of money aggregating in excess of $10,000,000 are rendered against one or more of the Company and its Subsidiaries and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay; or
(j)    if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the aggregate “amount of unfunded benefit liabilities” (within the meaning of section 4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of ERISA, shall exceed $10,000,000, (iv) the Company or any ERISA Affiliate shall have incurred or is 

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reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to the Plans, (v) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or any Subsidiary establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that would increase the liability of the Company or any Subsidiary thereunder; and any such event or events described in clauses (i) through (vi) above, either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse Effect. 
As used in Section 11(j), the terms “employee benefit plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such terms in section 3 of ERISA.
		
	SECTION 12.
	REMEDIES ON DEFAULT, ETC.

Section 12.1.    Acceleration.  (a)  If an Event of Default with respect to the Company described in Section 11(g) or (h) (other than an Event of Default described in clause (i) of Section 11(g) or described in clause (vi) of Section 11(g) by virtue of the fact that such clause encompasses clause (i) of Section 11(g)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable.
(b)    If any other Event of Default has occurred and is continuing, any holder or holders of more than 50% in principal amount of a Class of Notes at the time outstanding may at any time at its or their option, by notice or notices to the Company, declare all the Notes of such Class then outstanding to be immediately due and payable.
(c)    If any Event of Default described in Section 11(a) or (b) has occurred and is continuing, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable.
Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus all accrued and unpaid interest thereon, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.  
Section 12.2.    Other Remedies.  If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, the holder or Beneficial Holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder or Beneficial Holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.

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Section 12.3.    Rescission.  At any time after any Class of Notes or individual Notes have been declared due and payable pursuant to Section 12.1(b) or (c), respectively, not less than 51% in principal amount of Notes of such Class then outstanding (in the case of Section 12.1(b)) or the holder or holders of such Notes (in the case of Section 12.1(c)), in either case, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on such Class of Notes or such individual Notes, as applicable, all principal of any Notes of such Class or such individual Notes, in either case, that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and (to the extent permitted by applicable law) any overdue interest in respect of the Notes of such Class or such individual Notes, as the case may be, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 17, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes of such Class or such individual Notes, as the case may be.  No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon.
Section 12.4.    No Waivers or Election of Remedies, Expenses, Etc.  No course of dealing and no delay on the part of any holder or Beneficial Holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s or Beneficial Holder’s rights, powers or remedies.  No right, power or remedy conferred by this Agreement or by any Note upon any holder or Beneficial Holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise.  Without limiting the obligations of the Company under Section 15, the Company will pay to the holder or Beneficial Holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder or Beneficial Holder incurred in any enforcement or collection under this Section 12, including, without limitation, reasonable attorneys’ fees, expenses and disbursements.
		
	SECTION 13.
	REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

Section 13.1.    Registration of Notes.  The Notes will be registered in the name of Cede & Co., as nominee for DTC.  If Notes are taken out of the DTC book-entry system and issued in definitive form, the Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes.  The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register.  Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary.  The Company shall give to any holder of a Note promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes.
Section 13.2.    Transfer and Exchange of Notes.  (a) If Notes are taken out of the DTC book-entry system and issued in definitive form, upon surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)), for 

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registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address and other information for notices of each transferee of such Note or part thereof), within ten Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note.  Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of Exhibit A-1 or Exhibit A-3, as applicable.  Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon.  The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes.  Notes shall not be transferred in denominations of less than $100,000, and in integral multiples of $1,000 in excess thereof, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000.  Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representations set forth in Sections 6.1 and 6.2.
           (b)        For each of the Class A Notes and the Class B Notes, the Company shall deliver a single permanent global Note in registered form, substantially in the form set forth in Exhibit A-1 and Exhibit A-2, respectively, (the “Global Notes”), registered in the name of Cede & Co., the nominee of DTC, duly executed by the Company.  The Company will require that all resales be made in compliance with the provisions of Rule 144A to Qualified Institutional Buyers who have advised the Company in writing that they are purchasing the Note for their own account or accounts with respect to which such Qualified Institutional Buyer exercises sole investment discretion and that such Qualified Institutional Buyer is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as it has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that Piper Jaffray & Co. is relying upon its foregoing representations in order to claim the exemption from registration provided by Rule 144A.  Any such transferee shall be deemed to have also made the representations set forth in Sections 6.1 and 6.2.
(c)     If a beneficial interest in the Global Notes is proposed to be transferred, the transfer of such beneficial interest may be effected only through the book-entry system maintained by DTC.  
(d)    The Notes have not been registered under the Securities Act or under the securities laws of any state and may not be transferred or resold unless registered under the Securities Act and applicable state securities laws or unless an exemption from such requirement is available.  Upon the registration of transfer, exchange or replacement of Notes, the Company shall deliver only Notes that bear a legend to such effect.
Section 13.3.    Replacement of Notes.  If Notes are taken out of the book-entry system of DTC and issued in definitive form, upon receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably satisfactory to

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 it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be notice from such holder of such ownership and such loss, theft, destruction or mutilation), and
(a)    in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $100,000,000 or a Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or
(b)    in the case of mutilation, upon surrender and cancellation thereof,
within ten Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.
Section 13.4.    Book-Entry Provisions for Global Notes.  (a)  The Notes issued to the Purchasers hereunder shall be in the form of a Global Note which initially shall be registered in the name of Cede & Co., the nominee of DTC.  The ownership interests of each beneficial holder (a “Beneficial Holder”) of a Global Note will be recorded on DTC’s records and are expected to receive written confirmations from DTC of their transaction from the direct or indirect participants in DTC (“Agent Members”).  Agent Members shall have no rights under this Agreement with respect to any Global Notes held on their behalf by DTC, or under any Global Note, and DTC may be treated by the Company and any agent of the Company as the absolute owner of each Global Note for all purposes whatsoever; provided, that each Beneficial Holder shall have the rights expressly granted to Beneficial Holders hereunder, subject to written notice to the Company from such Beneficial Holder confirming its status as a Beneficial Holder and disclosing the principal amount of its beneficial interest in the Global Note.  Notwithstanding the foregoing, nothing herein shall prevent the Company or any agent of the Company from giving effect to any written certification, proxy or other authorization furnished by DTC or impair, as between DTC and its Agent Members, the operation of customary practices governing the exercise of the rights of a Beneficial Holder of any Note. 
(b) Transfers of Global Notes shall be limited to transfers in whole, but not in part, to DTC, its successors or nominees.  Interests of Beneficial Holders in any Global Note may be transferred or exchanged for physical Notes in accordance with the rules and procedures of DTC and the provisions of Section 13.2.  
(c)  In connection with any transfer or exchange of a portion of the beneficial interest in any Global Notes to Beneficial Holders pursuant to clause (b) above, DTC shall reflect on its books and record the date and a decrease in the principal amount of the beneficial interest in such Global Note to be transferred, and the Company shall execute, one or more Notes of like tenor and amount.  

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(d)  In connection with the transfer of interests of Beneficial Holders in Global Notes for physical Notes pursuant to clause (b) above, the Global Notes shall be deemed to be surrendered to the Company for cancellation, and the Company shall execute, to each such Beneficial Holder identified by DTC in exchange for its beneficial interest in such Global Notes, an equal aggregate principal amount of physical Notes of authorized denominations.  
(e)  All transfers and exchanges of Global Notes or beneficial interests therein shall be effected through DTC, in accordance with this Agreement (including applicable restrictions on transfer set forth herein) and the procedures of DTC.  A transferor of a beneficial interest in a Global Note shall deliver a written order given in accordance with DTC’s procedures containing information regarding the participant account of DTC to be credited with a beneficial interest in such Global Note and such account shall be credited in accordance with such order with a beneficial interest in the Global Note and the account of the person making the transfer shall be debited by an amount equal to the beneficial interest in the Global Note being transferred.  Any transferee of a beneficial interest in a Global Note shall be deemed to have made the representations set forth in Sections 6.1 and 6.2. 
(f)  The holder of a Global Note may grant proxies and otherwise authorize any person, including Agent Members and persons that may hold interests through Agent Members, to take any action which a holder of a Note is entitled to take under this Agreement.  
		
	SECTION 14.
	PAYMENTS ON NOTES    .

Section 14.1.    Place of Payment.  Subject to Section 14.2, payments of principal and interest becoming due and payable on the Notes shall be made in Pittsburgh, Pennsylvania at the corporate trust office of The Bank of New York Mellon Trust Company, N.A., as paying agent for further payment in the case of the book-entry Notes to DTC and DTC shall make payments to its direct participants for credit to the beneficial owners through DTC’s typical payment procedures.  
Section 14.2.    Home Office Payment.  If Notes are taken out of the book-entry system of DTC and issued in definitive form, then so long as any Purchaser or its nominee shall be the holder of the Note, and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal and interest by the method and at the address as such Purchaser shall have from time to time specified to the Company (by Purchaser Notice or otherwise) in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 14.1.  Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2.  The Company will afford the benefits of this Section 14.2 to any Person that is the direct or indirect 

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transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Note as the Purchasers have made in this Section 14.2.
		
	SECTION 15.
	EXPENSES, ETC.

Section 15.1.    Transaction Expenses.  Whether or not the transactions contemplated hereby are consummated, the Company will pay all costs and expenses (including reasonable attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other holder or Beneficial Holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement or the Notes (whether or not such amendment, waiver or consent becomes effective), including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement or the Notes or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or the Notes, or by reason of being a holder or Beneficial Holder of any Note, and (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes.  The Company will pay, and will save each Purchaser and each other holder and Beneficial Holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder or Beneficial Holder in connection with its purchase of the Notes).
Section 15.2.    Survival.  The obligations of the Company under this Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement.
SECTION 16.  SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.
All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder or Beneficial Holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser or any other holder or Beneficial Holder of a Note.  All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement  shall be deemed representations and warranties of the Company under this Agreement.  Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.
		
	SECTION 17.
	AMENDMENT AND WAIVER.  

Section 17.1.    Requirements.  This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that no 

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such amendment or waiver may, without the written consent of the holder of each Note at the time outstanding affected thereby, (i) subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest on the Notes, (ii) change the percentage of the principal amount of the Notes of any Class the holders of which are required to consent to any such amendment or waiver, or (iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20.
Section 17.2.    Solicitation of Holders of Notes.
(a)    Solicitation.  The Company will provide each holder of the Notes (irrespective of the amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Notes.  The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 17 to each holder of outstanding Notes promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.
(b)    Payment.  The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder or Beneficial Holder of Notes as consideration for or as an inducement to the entering into by any holder  or Beneficial Holder of Notes of any waiver or amendment of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder or Beneficial Holder of Notes then outstanding even if such holder did not consent to such waiver or amendment.
Section 17.3.    Binding Effect, Etc.  Any amendment or waiver consented to as provided in this Section 17 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver.  No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon.  No course of dealing between the Company and the holder or Beneficial Holder of any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder or Beneficial Holder of such Note.  As used herein, the term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented.
Section 17.4.    Notes Held by Company, Etc.  Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.

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	SECTION 18.
	NOTICES.

All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with charges prepaid).  Any such notice must be sent:
(i)    if to any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications by Purchaser Notice, or at such other address as such Purchaser or nominee shall have specified to the Company in writing,
(ii)    if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in writing,
(iii)    if to the Company, to the Company at its address set forth at the beginning hereof to the attention of Kasi V. Subramanian, or at such other address as the Company shall have specified to the holder of each Note in writing, or
(iv)    if to the Initial Purchaser, at 800 Nicollet Mall, Suite 1000, Minneapolis, Minnesota 55402, attention Kasi V. Subramanian.  
Notices under this Section 18 will be deemed given only when actually received.
		
	SECTION 19.
	REPRODUCTION OF DOCUMENTS.

This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced.  The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.  This Section 19 shall not prohibit the Company or any other holder or Beneficial Holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

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SECTION 20.    RESERVED.
		
	SECTION 21.
	SUBSTITUTION OF PURCHASER.

Each Purchaser shall have the right to substitute any one of its Affiliates, or  any other fund or account managed by Pacific Investment Management Company LLC or its Affiliate (a “PIMCO Fund”) as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Affiliate or PIMCO Fund, shall contain such Affiliate’s or PIMCO Fund’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate or PIMCO Fund of the accuracy with respect to it of the representations set forth in Section 6.  Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 21), shall be deemed to refer to such Affiliate or PIMCO Fund in lieu of such original Purchaser.  In the event that such Affiliate or PIMCO Fund is so substituted as a Purchaser hereunder and such Affiliate or PIMCO Fund thereafter transfers to such original Purchaser all of the Notes then held by such Affiliate or PIMCO Fund, upon receipt by the Company of notice of such transfer, any reference to such Affiliate or PIMCO Fund as a “Purchaser” in this Agreement (other than in this Section 21), shall no longer be deemed to refer to such Affiliate or PIMCO Fund, but shall refer to the original Purchaser, and such original Purchaser shall again have all the rights of an original holder of the Notes under this Agreement.
		
	SECTION 22.
	MISCELLANEOUS.

Section 22.1.    Successors and Assigns.  All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a Note and, in the case of rights expressly granted to Beneficial Holders hereunder, to any Beneficial Holder to the extent set forth herein) whether so expressed or not.  Except as set forth in Section 10.2, the Company may not assign any of its rights or obligations under this Agreement or the Notes without the prior written consent of each holder of the Notes.
Section 22.2.    Payments Due on Non-Business Days.  Anything in this Agreement or the Notes to the contrary notwithstanding (but without limiting the requirement in Section 8.3 that the notice of any optional prepayment specify a Business Day as the date fixed for such prepayment), any payment of principal of or interest on any Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided that if the maturity date of any Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.
Section 22.3.    Accounting Terms.  All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP.  Except as otherwise specifically provided herein, (i) all computations made pursuant 

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to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP.
Section 22.4.    Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.
Section 22.5.    Construction, Etc.  Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant.  Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.
For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be deemed to be a part hereof.
Section 22.6.    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument.  Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.  Counterparts may be delivered electronically and may include .pdf files.
Section 22.7.    Governing Law.  This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice‐of‐law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.
Section 22.8.    Jurisdiction and Process; Waiver of Jury Trial.  (a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes.  To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.
(b)    The Company consents to process being served by or on behalf of any holder or Beneficial Holder of Notes in any suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested, to it at its address specified in Section 18 or at such other address of which such holder shall then have been notified pursuant to said Section.  The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent 

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permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it.  Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.
           (c)    Nothing in this Section 22.8 shall affect the right of any holder or Beneficial Holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.
(d)    THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.
Section 22.9.    Piper Jaffray & Co. Execution.   Piper Jaffray & Co. is a party to this Agreement solely for purpose of purchasing the Notes from the Company as Initial Purchaser and selling the Notes to the Purchasers hereunder.  Piper Jaffray & Co. assumes no responsibility for any obligations, representations, warranties or covenants of the Company.
[SIGNATURE PAGES FOLLOW]

*    *    *    *    *

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If you are in agreement with the foregoing, please sign the form of agreement on a counterpart of this Agreement and return it to the Company, whereupon this Agreement shall become a binding agreement between you and the Company.

	
			
	 
	 
	Very truly yours,

	 
	 
	PIPER JAFFRAY COMPANIES

	 
	 
	 

	 
	 
	By:   /s/ Kasi V. Subramanian

	 
	 
	Kasi V. Subramanian,Treasurer

 [Signature Page to Note Purchase Agreement]

This Agreement is hereby
accepted and agreed to as 
of the date thereof.

INITIAL PURCHASER

PIPER JAFFRAY & CO., SOLELY IN ITS CAPACITY AS INITIAL PURCHASER

	
	
	By:   /s/ Timothy L. Carter_____________

	Name:  Timothy L. Carter

	Title:  Chief Financial Officer

 [Signature Page to Note Purchase Agreement]

PURCHASERS

BY:  PACIFIC INVESTMENT MANAGEMENT COMPANY LLC, AS INVESTMENT MANAGER
OR ADVISOR TO THE PURCHASERS IDENTIFIED BY PURCHASER NOTICE

	
	
	By:   /s/ T. Christian Stracke_____________

	Name: T. Christian Stracke

	Title: Managing Director

The obligations arising out of this instrument are several and not joint with respect to each participating fund and account, in accordance with its proportionate interest hereunder, and the parties agree not to proceed against any fund or account for the obligations of another. To the extent a fund or account is a registered investment company (“Trust”) or a series thereof, a copy of the Declaration of Trust of such Trust is on file with the Secretary of State of The Commonwealth of Massachusetts or Secretary of State of the State of Delaware. The obligations of or arising out of this instrument are not binding upon any of such Trust’s trustees, officers, employees, agents or shareholders individually, but are binding solely upon the assets and property of the Trust in accordance with its proportionate interest hereunder. If this instrument is executed by or on behalf of a Trust on behalf of one or more series of the Trust, the assets and liabilities of each series of the Trust are separate and distinct and the obligations of or arising out of this instrument are binding solely upon the assets or property of the series on whose behalf this instrument is executed. If this agreement is being executed on behalf of more than one series of a Trust, the obligations of each series hereunder shall be several and not joint, in accordance with its proportionate interest hereunder, and the parties agree not to proceed against any series for the obligations of another.  

 [Signature Page to Note Purchase Agreement]

PIPER JAFFRAY COMPANIES 
800 NICOLLET MALL, SUITE 1000 
MINNEAPOLIS, MN 55402 
 

All notices to be delivered to:

Pacific Investment Management Company LLC  
650 Newport Center Drive 
Newport Beach, California 92660  
Tel: +1 (949) 720-6000  
Fax: +1 (949) 720-6363  
Attention: Chief Legal Officer 

SCHEDULE A 
(to Note Purchase Agreement)

DEFINED TERMS
As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:
“Adjusted Assets” is a non-GAAP financial measure that means Consolidated Total Assets reduced by assets such as goodwill and intangible assets, right-of-use lease assets and amounts attributed to noncontrolling interests.  To the extent that GAAP changes in the future, similar type asset reductions may be needed to address new categories of assets that are not currently in the definition of Consolidated Total Assets.
“Adjusted Leverage Ratio”  means Adjusted Assets divided by Tangible Common Shareholder’s Equity as reported in the quarterly report on form 10-Q (including the 10-Q filed for the quarter ended June 30, 2019) or the annual report on form 10-K.  
“Affiliate” means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and, with respect to the Company, shall include any Person beneficially owning or holding, directly or indirectly, 10% or more of any class of voting or equity interests of the Company or any Subsidiary or any corporation of which the Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of any class of voting or equity interests.  As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company.
 “Agent Members” is defined in Section 13.4(a).
 “Anti-Terrorism Order” means Executive Order No. 13,224 of September 24, 2001, Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended.
 “Applicable Maturity Date” means in the case of the Class A Notes, October 15, 2021, and in the case of the Class B Notes, October 15, 2023.
 “Beneficial Holder” is defined in Section 13.4(a). 
 “Beneficial Owner” has the meaning as defined by Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Sections 13(d) and 14(d) of the Exchange Act), notwithstanding the provisions of Rule 13(d)(1)(i)(A) and (B), such “person” will not be deemed to have beneficial ownership of any securities that such “person” has the right to acquire by conversion of other securities or the exercise of any option, warrant or right, whether such right is currently exercisable or is exercisable 

SCHEDULE B 
(to Note Purchase Agreement)

only upon the occurrence of a subsequent condition.  The terms “Beneficially Owns” and “Beneficially Owned” have the correlative meaning. 
“Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Minneapolis, Minnesota are required or authorized to be closed.
“Capital Lease” means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.
“Capital Lease Obligation” means, with respect to any Person and a Capital Lease, the amount of the obligation of such Person as the lessee under such Capital Lease which would, in accordance with GAAP, appear as a liability on a balance sheet of such Person.
“Capital Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants, rights or options to purchase any of the foregoing.  
“Change in Control” means an event or series of events by which any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding any employee benefit plan of such person or its Subsidiaries, and any Person acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the Beneficial Owner, directly or indirectly, of 50% or more of the Capital Stock of the Company entitled to vote for members of the board of directors or equivalent governing body of the Company.
“Class” of Notes mean either the Class A Notes or the Class B Notes, as applicable.
“Class A Fixed Interest Rate” means 4.74% per annum.
 “Class B Fixed Interest Rate” means 5.20% per annum.
“Closing” is defined in Section 3.
“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time.
“Company” means Piper Jaffray Companies, a Delaware corporation or any successor that becomes such in the manner prescribed in Section 10.2.
“Consolidated EBITDA” shall mean, for any period, (a) the Consolidated Net Income for such period, plus (b) to the extent deducted in determining such Consolidated Net Income for such period, the sum of the following for such period:  (i) Consolidated Interest Expense for such period, (ii) income tax expense for such period (iii) depreciation and amortization for such period, and (iv) the aggregate amount of extraordinary, non-operating or non-cash charges for such period,

-2-

and, minus, without duplication, (c) the aggregate amount of extraordinary, non-operating or non-cash income during such period.   
“Consolidated Fixed Charges” means, with respect to any period, the sum of (i) Consolidated Interest Expense for such period plus (ii) Lease Rentals for such period.
“Consolidated Funded Indebtedness” means as of any date of determination the total amount of all Indebtedness of the Company and its Subsidiaries payable one year or more from the date of its creation, including the current portion thereof.
“Consolidated Interest Expense” shall mean, for any period, the gross interest expense of the Company and its Subsidiaries on Consolidated Funded Indebtedness deducted in the calculation of Consolidated Net Income for such period, determined on a consolidated basis in accordance with GAAP.
“Consolidated Net Income” shall mean, for any period, the consolidated net income (or loss) of the Company and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP.
“Consolidated Shareholder’s Equity” means the consolidated shareholder’s equity of the Company and its Subsidiaries, as defined according to GAAP.
“Consolidated Total Assets” shall mean the total assets of the Company and its Subsidiaries on a consolidated basis, as defined according to GAAP.
 “Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.
“DTC” means The Depository Trust Company, New York, New York, or a successor thereto registered under the Securities Exchange Act of 1934, as amended, of other applicable statute or regulation.
“Electronic Delivery” is defined in Section 7.1(a).
“Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including but not limited to those related to Hazardous Materials.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. 
“ERISA Affiliate” means any trade or business  (whether or not incorporated) that is treated as a single employer together with the Company under section 414 of the Code.

-3-

“Event of Default” is defined in Section 11.
 “Form 10‐K” is defined in Section 7.1(b).
“Form 10‐Q” is defined in Section 7.1(a).
“GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America.
“Global Notes” is defined in Section 13.2(b).
“Governmental Authority” means
(a)    the government of
(i)    the United States of America or any State or other political subdivision thereof, or
(ii)    any other jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or
(b)    any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.
“Guaranty” means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including (without limitation) obligations incurred through an agreement, contingent or otherwise, by such Person:
(a)    to purchase such indebtedness or obligation or any property constituting security therefor;
(b)    to advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such indebtedness or obligation;
(c)    to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness or obligation; or
(d)    otherwise to assure the owner of such indebtedness or obligation against loss in respect thereof.

-4-

In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.
“Hazardous Material” means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable law including, but not limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.
“holder” means, with respect to any Note the Person in whose name such Note is registered in the register maintained by the Company pursuant to Section 13.1.
“Indebtedness” with respect to any Person means, at any time, without duplication,
(a)    its liabilities for borrowed money and its redemption obligations in respect of mandatorily redeemable Preferred Stock;
(b)    its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable arising in the ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property); provided, however, that compensation-related obligations triggered in connection with an acquisition shall not be considered “Indebtedness”;
(c)    (i) all liabilities appearing on its balance sheet in accordance with GAAP in respect of Capital Leases and (ii) all liabilities which would appear on its balance sheet in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic Leases were accounted for as Capital Leases;
(d)    all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed or otherwise become liable for such liabilities);
(e)    all its liabilities in respect of letters of credit or instruments serving a similar function issued or accepted for its account by banks and other financial institutions (whether or not representing obligations for borrowed money);
(f)    the aggregate Swap Termination Value of all Swap Contracts of such Person; and
(g)    any Guaranty of such Person with respect to liabilities of a type described in any of clauses (a) through (f) hereof.  

-5-

Indebtedness of any Person shall include all obligations of such Person of the character described in clauses (a) through (g) to the extent such Person or its property remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP.
“Initial Purchaser” is defined in Section 2.
 “Interest Payment Date” is defined in Section 1.2.

“Lease Rentals” shall mean, for any period, the aggregate amount of rental or operating lease expense payable by the Company and its Subsidiaries with respect to leases of real and personal property (excluding Capital Lease Obligations) determined on a consolidated basis in accordance with GAAP.
 “Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person (including in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements).
“Make-Whole Amount” means, with respect to any Notes, an amount equal to the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued to the date of redemption), discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus 50 basis points.
“Material” means material in relation to the business, operations, affairs, financial condition, assets, properties, or prospects of the Company and its Subsidiaries taken as a whole.
“Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole, or (b) the ability of the Company to perform its obligations under this Agreement and the Notes, or (c) the validity or enforceability of this Agreement or the Notes.
 “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in section 4001(a)(3) of ERISA).
“NAIC” means the National Association of Insurance Commissioners or any successor thereto.
“Notes” is defined in Section 1.
“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Company whose responsibilities extend to the subject matter of such certificate.

-6-

“Operating Cash Flow” means, for any period, (a) Consolidated EBITDA for such period, plus (b) Lease Rentals for such period, minus (c) capital expenditures to replace existing equipment, income tax expense and dividends paid for such period.
“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto.
“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or Governmental Authority.
“PIMCO Fund” is defined in Section 12.
“Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability.
“Preferred Stock” means any class of capital stock of a Person that is preferred over any other class of capital stock (or similar equity interests) of such Person as to the payment of dividends or the payment of any amount upon liquidation or dissolution of such Person.
“property” or “properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.
“PTE” is defined in Section 6.2(a).
“Purchaser Notice” means the notice provided by Pacific Investment Management Company LLC to the Company identifying certain information with respect to each Purchaser named therein.
“Purchasers” is defined in the first paragraph of this Agreement.
“Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer” within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.
“Record Date” is defined in Section 1.2.
“Regulatory Net Capital” means the Regulatory Net Capital of Piper Jaffray & Co. as shown on its monthly FOCUS report.
“Required Holders” means, at any time, the holders of at least 51% in principal amount of the Notes of each Class at the time outstanding (exclusive of Notes then owned by the Company or any of its Affiliates).

-7-

“Responsible Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement.
“Rule 144A” is defined in Section 6.1.
“SEC” shall mean the Securities and Exchange Commission of the United States, or any successor thereto.
“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.
“Security” or “Securities” shall have the meaning specified in Section 2(1) of the Securities Act. 
“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or controller of the Company.
“Subsidiary” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries).  Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company.
“SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.
“Swap Contract” means (a) any and all interest rate swap transactions, basis swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward foreign exchange transactions, cap transactions, floor transactions, currency options, spot contracts or any other similar transactions or any of the foregoing (including, but without limitation, any options to enter into any of the foregoing), and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement.
“Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amounts(s) determined as the mark-to-market 

-8-

values(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts.
“Synthetic Lease” means, at any time, any lease (including leases that may be terminated by the lessee at any time) of any property (a) that is accounted for as an operating lease under GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so leased for U.S. federal income tax purposes, other than any such lease under which such Person is the lessor.
“Tangible Common Shareholder’s Equity” is a non-GAAP financial measure that means Consolidated Shareholder’s Equity reduced by assets such as goodwill and intangible assets, right-of-use lease assets and amounts attributed to noncontrolling interests.  To the extent that GAAP changes in the future, similar type asset reductions may be needed to address new categories of assets that are not currently in the definition of Consolidated Shareholder’s Equity.
 “Treasury Rate” means the interest rate for Treasury securities of comparable maturity to the Applicable Maturity Date of the Note to which the Make-Whole Amount is being determined.
“USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.
“Wholly-Owned Subsidiary” means, at any time, any Subsidiary one hundred percent of all of the equity interests (except directors’ qualifying shares) and voting interests of which are owned by any one or more of the Company and the Company’s other Wholly-Owned Subsidiaries at such time.

-9-

Schedule 5.3 
Disclosure Materials

None

SCHEDULE 5.3 
(To Note Purchase Agreement)

Schedule 5.4 
Subsidiaries of the Company and Ownership of Subsidiary Stock

(a)(i).      Subsidiaries of the Company and Ownership 

	
					
	Subsidiary Name
	Jurisdiction and Type of Organization
	Parent
	Ownership %

	Piper Jaffray Companies
	Delaware corporation
	Piper Jaffray Companies
	n/a

	Piper Jaffray & Co.
	Delaware corporation
	Piper Jaffray Companies
	100%

	 
	Piper Jaffray EVP, LLC
	Delaware limited liability company
	Piper Jaffray & Co.
	100%

	 
	Edgeview Partners, L.P.
	Delaware limited partnership
	Piper Jaffray EVP,  LLC (general partner)
	100%

	Piper Jaffray European Holdings Co.
	Delaware corporation
	Piper Jaffray Companies
	100%

	 
	Piper Jaffray Ltd.
	U.K. private company limited by shares
	Piper Jaffray European Holdings Co.
	100%

	 
	Parallel General Partner Limited
	Guernsey private company
	Piper Jaffray Ltd.
	100%

	Piper Jaffray Hong Kong Limited
	Hong Kong private company limited by shares
	Piper Jaffray Companies
	100%

	Piper Jaffray Finance LLC

	Delaware limited liability company
	Piper Jaffray Companies
	100%

	 
	Piper Jaffray Finance I, LLC+
	Delaware limited liability company
	Piper Jaffray Finance LLC
	5%

	 
	Piper Jaffray Finance II, LLC+
	Delaware limited liability company
	Piper Jaffray Finance LLC
	4.8%

	 
	Piper Jaffray Finance III, LLC+
	Delaware limited liability company
	Piper Jaffray Finance LLC
	5.2%

	 
	Piper Jaffray Finance IV, LLC+
	Delaware limited liability company
	Piper Jaffray Finance LLC
	0%

	PJC Capital Management LLC

	Delaware limited liability company
	Piper Jaffray Companies
	Sole managing member; employees have some ownership interests

	 
	Piper Jaffray Merchant Banking Fund I, L.P. +
	Delaware limited partnership
	PJC Capital Management LLC
(general partner)
	60.5%

	 
	Piper Jaffray Merchant Banking Partners I, L.P. +
	Delaware limited partnership
	PJC Capital Management LLC
(general partner)
	0%

SCHEDULE 5.4 
(To Note Purchase Agreement)

	
					
	 
	Piper Jaffray Merchant Banking Partners II, L.P. +
	Delaware limited partnership
	PJC Capital Management LLC
(general partner)
	0%

	 
	Piper Jaffray Merchant Banking Partners III, L.P. +
	Delaware limited partnership
	PJC Capital Management LLC
(general partner)
	0%

	 
	Piper Jaffray Merchant Banking Partners IV, L.P. +
	Delaware limited partnership
	PJC Capital Management LLC
(general partner)
	0%

	PJC Capital Management II LLC

	Delaware limited liability company
	Piper Jaffray Companies
	Sole managing member; employees have some ownership interests

	 
	Piper Jaffray Merchant Banking Fund II, L.P. +
	Delaware limited partnership
	PJC Capital Management II LLC
	20.5%

	Piper Jaffray Investment Group Inc.

	Delaware corporation
	Piper Jaffray Companies
	100%

	 
	Piper Jaffray Investment Management LLC
	Delaware limited liability company
	Piper Jaffray Investment Group Inc.
	100%

	 
	PJC Capital Partners LLC
	Delaware limited liability company
	Piper Jaffray Investment Group Inc.
	100%

	 
	Piper Jaffray Senior Living LLC
	Delaware limited liability company
	Piper Jaffray Investment Group Inc.
	75%

	 
	Piper Jaffray Senior Living Fund I, LP+
	Delaware limited partnership
	Piper Jaffray Senior Living LLC
	27.1%

	PJC Capital LLC

	Delaware limited liability company
	Piper Jaffray Companies
	100%

	Piper Jaffray Funding LLC

	Delaware limited liability company
	Piper Jaffray Companies
	100%

	Piper Jaffray Financial LLC

	Delaware limited liability company
	Piper Jaffray Companies
	100%

	 
	Piper Jaffray Financial Trust Depositor LLC
	Delaware limited liability company
	Piper Jaffray Financial LLC
	100%

	Piper Jaffray Private Capital Inc.

	Delaware corporation
	Piper Jaffray Companies
	100%

	Piper Jaffray Asset Management Inc.

	Delaware corporation
	Piper Jaffray Companies
	100%

	Piper Jaffray Financial Products Inc.

	Delaware corporation
	Piper Jaffray Companies
	100%

SCHEDULE 5.4 
(To Note Purchase Agreement)

	
					
	Piper Jaffray Financial Products II Inc.

	Delaware corporation
	Piper Jaffray Companies
	100%

	Piper Jaffray Financial Products III Inc.

	Delaware corporation
	Piper Jaffray Companies
	100%

	Piper Jaffray Lending LLC

	Delaware limited liability company
	Piper Jaffray Companies
	100%

		
	+
	These entities are investment vehicles, as described in section (a)(ii).  The entities may be deemed to be Subsidiaries because the Company (or its Subsidiaries) own more than 50% and act as the managing member or general partner.

		
	‡
	Entity to be dissolved.

(a)(ii).      Affiliates of the Company, other than Subsidiaries
In the normal course of business, the Company periodically creates or transacts with entities that are investment vehicles organized as partnerships or limited liability companies. These entities were established for the purpose of investing in securities of public or private companies, and were initially financed through the capital commitments of the members. The Company has investments in and/or acts as the managing partner of these entities.  The following table lists investment entities for which the Company has investments that exceed 10% and acts as the managing member or general partner:
	
		
	Subsidiary Name
	Ownership %

	Piper Jaffray Merchant Banking Fund I, L.P.
	60.5%

	Piper Jaffray Merchant Banking Fund II, L.P.
	20.5%

	Piper Jaffray Senior Living Fund I, LP
	27.1%

 (a)(iii).  Directors and Senior Officers of the Company as of October 15, 2019
	
		
	Directors

	Chad R. Abraham
William R. Fitzgerald
Victoria M. Holt 
B. Kristine Johnson
Addison L. Piper
	Debbra L. Schoneman
Thomas S. Schreier
Sherry M. Smith
Philip E. Soran
Scott C. Taylor

SCHEDULE 5.4 
(To Note Purchase Agreement)

	
		
	Senior Officers
	Title

	Chad R. Abraham
	Chairman and Chief Executive Officer

	James P. Baker
	Co-Head of Investment Banking & Capital Markets

	Timothy L. Carter
	Chief Financial Officer

	Christine N. Esckilsen
	Chief Human Capital Officer

	Frank E. Fairman
	Head of Public Finance Services

	John W. Geelan
	General Counsel and Secretary

	R. Scott LaRue
	Co-Head of Investment Banking & Capital Markets

	Debbra L. Schoneman
	President

	Shawn Quant
	Chief Information Officer

(d).      Piper Jaffray & Co. is subject to the uniform net capital rule of the SEC and the net capital rule of Financial Industry Regulatory Authority (“FINRA”).  FINRA may prohibit a member firm from expanding its business for any financial or operational reason.  In addition, advances to affiliates, repayment of subordinated debt, dividend payments and other equity withdrawals by Piper Jaffray &Co. are subject to certain notification and other provisions of the SEC and FINRA rules.  Piper Jaffray & Co. also is subject to certain notification requirements related to withdrawals of excess net capital.
Piper Jaffray & Co. is a party to that certain Amended and Restated Indenture, dated April 30, 2015, as amended by that certain First Amendment to Amended and Restated Indenture, dated September 29, 2017 (the “Indenture”), by and between Piper Jaffray & Co. and The Bank of New York Mellon.  The Indenture requires Piper Jaffray & Co. to maintain excess Net Capital (as reported on to the SEC on a monthly basis) of at least $100 million.
Piper Jaffray & Co. is a party to that certain Amended and Restated Loan Agreement, dated December 28, 2013 (the “Loan Agreement”), by and between Piper Jaffray & Co. and U.S. Bank National Association (“US Bank”).  The Loan Agreement requires Piper Jaffray & Co. to maintain excess Regulatory Capital of at least $120 million.
Piper Jaffray Ltd., which is a registered United Kingdom broker dealer, is subject to the capital requirements of the U.K. Financial Conduct Authority (“FCA”).  Piper Jaffray Hong Kong Limited (“PJ HK”) is licensed by the Hong Kong Securities and Futures Commission (“SFC”). This license allows PJ HK to facilitate its U.S. advisory business.  Similar to the requirements of the SEC and FINRA, the SFC may restrict the ability of PJ HK from paying dividends or require notification of advances to affiliates, repayment of debt, dividend payments or other equity withdrawals.

SCHEDULE 5.4 
(To Note Purchase Agreement)

Schedule 5.5 
Financial Statements

The Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2018 (that contained Consolidated Statements of Financial Condition as at December 31, 2018 and Consolidated Statements of Operations and Consolidated Statements of Cash Flows for the 12 months then ended, audited by Ernst & Young LLP).

The Company’s Quarterly Report on Form 10-Q for the quarter ending June 30, 2019 (that contained unaudited Consolidated Statements of Financial Condition as at June 30, 2019 and unaudited Consolidated Statements of Operations for the three months then ended and Consolidated Statements of Cash Flows for the three months then ended).

SCHEDULE 5.5 
(To Note Purchase Agreement)

Schedule 5.15 
Existing Indebtedness

See Schedule 5.4(d).

SCHEDULE 5.15 
(To Note Purchase Agreement)

THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, AND (B) IN ACCORDANCE WITH ALL APPLICABLE BLUE SKY LAWS OF THE STATES OF THE UNITED STATES.
 [FORM OF NOTE]
PIPER JAFFRAY COMPANIES
FIXED RATE SENIOR NOTE [CLASS A][CLASS B] 
DUE [OCTOBER 15, 2021] [OCTOBER 15, 2023]

	
					
	No. [_____]
	[Date]

	$$[50,000,000]/[$125,000,000]
	CUSP No.[   ]

	Fixed Interest Rate: [4.74]/[5.20]%
	ISIN No. US[   ]

FOR VALUE RECEIVED, the undersigned, Piper Jaffray Companies (herein called the “Company”), a corporation organized and existing under the laws of the State of Delaware, hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on the Applicable Maturity Date, with interest (computed on the basis of actual days elapsed and a 360-day year) (a) on the unpaid balance hereof at the rate per annum equal to the [4.74]/[5.20]%, payable on the fifteenth (15th) day of April and October in each year (each, an “Interest Payment Date”) and at maturity, commencing on April 15, 2020, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal and on any overdue payment of interest, at a rate per annum from time to time equal to 2% over the rate of interest set forth in clause (a), payable quarterly on each Interest Payment Date as aforesaid (or, at the option of the registered holder hereof, on demand).  Interest payable on each Interest Payment Date will be paid to the holder of this Note as of the immediately preceding Record Date.  “Record Date” means April 5 and October 5 in each year (whether or not a Business Day).

EXHIBIT A-1 
(to Note Purchase Agreement)
|

 

Payments of principal of and interest on this Note are to be made in lawful money of the United States of America at the Corporate trust office of The Bank of New York Mellon Trust Company, N.A. in Pittsburgh, Pennsylvania, or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below.
This Note is one of a series of Class [A][B] Senior Notes (herein called the “Notes”) issued pursuant to the Note Purchase Agreement, dated as of October 15, 2019 (as from time to time amended, the “Note Purchase Agreement”), among the Company and the Purchasers named therein and is entitled to the benefits thereof.  Each holder of this Note will be deemed, by its acceptance hereof, to have made the representation set forth in Sections 6.1 and 6.2 of the Note Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.
This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.  Notes shall be issued in denominations of not less than $100,000, and in integral multiples of $1,000 in excess thereof, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000.   Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.
This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.
If an Event of Default occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price and with the effect provided in the Note Purchase Agreement.
This Note shall be construed and enforced in accordance with, and the rights of the Company and the holder of this Note shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

EXHIBIT A-1 
(to Note Purchase Agreement)

|

	
		
	 
	PIPER JAFFRAY COMPANIES

	 
	 

	 
	 

	 
	By:  __________________________________

	 
	[Name and Title]

This Certificate represents [Class A]/[Class B] Notes referred to
 in the within mentioned Note Purchase Agreement:

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
not in its individual capacity, but solely as Authentication Agent

	
	
	By:  __________________________________

	Name:

	Title:

	 

	Dated

EXHIBIT A-1 
(to Note Purchase Agreement)

|

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 13 OF THE NOTE PURCHASE AGREEMENT GOVERNING THIS GLOBAL NOTE.
THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A AND (B) IN ACCORDANCE WITH ALL APPLICABLE BLUE SKY LAWS OF THE STATES OF THE UNITED STATES.
[Form of Global Note]
PIPER JAFFRAY COMPANIES
FIXED RATE SENIOR NOTE [CLASS A][CLASS B] 
DUE [OCTOBER 15, 2021] [OCTOBER 15, 2023]

	
					
	No. [_____]
	 
	[Date]

	$[50,000,000]/[$125,000,000]
	 
	CUSIP No.[   ]

	Fixed Interest Rate: [4.74]/[5.20]%
	 
	ISIN No. US[   ]

        

EXHIBIT A-2 
(to Note Purchase Agreement)

FOR VALUE RECEIVED, the undersigned, Piper Jaffray Companies (herein called the “Company”), a corporation organized and existing under the laws of the State of Delaware, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of [FIFTY][ONE HUNDRED TWENTY-FIVE] MILLION DOLLARS (or so much thereof as shall not have been prepaid) on the Applicable Maturity Date, with interest (computed on the basis of actual days elapsed and a 360-day year) (a) on the unpaid balance hereof at the rate per annum equal to the [4.74]/[5.20]%, payable on the fifteenth (15th) day of April and October in each year (each, an “Interest Payment Date”) and at maturity, commencing on April 15, 2020, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal and on any overdue payment of interest, at a rate per annum from time to time equal to 2% over the rate of interest set forth in clause (a), payable quarterly on each Interest Payment Date as aforesaid (or, at the option of the registered holder hereof, on demand).  Interest payable on each Interest Payment Date will be paid to the record holder of this Note as of the immediately preceding Record Date.  “Record Date” means April 5 and October 5 in each year (whether or not a Business Day).  
Payments of principal of and interest on this Note are to be made in lawful money of the United States of America at the corporate trust office of The Bank of New York Mellon Trust Company, N.A. in Pittsburgh, Pennsylvania or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below. 
This Note is one of a series of Class [A][B] Senior Notes (herein called the “Notes”) issued pursuant to the Note Purchase Agreement, dated as of October 15, 2019 (as from time to time amended, the “Note Purchase Agreement”), among the Company and the Purchasers named therein and is entitled to the benefits thereof.  Each holder of this Note and each holder of a beneficial interest in this Note will be deemed, by its acceptance hereof or thereof, to have made the representations set forth in Sections 6.1 and 6.2 of the Note Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.
This Global Note is being held by DTC acting as Depository, and registered in the name of Cede & Co., a nominee of DTC, and transfers shall be made solely through the book-entry system of DTC.   This Note is a registered Note and, if issued in certificated form and not held through DTC, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.  Notes shall be issued in denominations of not less than $100,000, and in integral multiples of $1,000 in excess thereof, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000.  Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

EXHIBIT A-2 
(to Note Purchase Agreement)

|

This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.
If an Event of Default occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price and with the effect provided in the Note Purchase Agreement.
This Note shall be construed and enforced in accordance with, and the rights of the Company and the holder of this Note shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.
	
		
	 
	PIPER JAFFRAY COMPANIES

	 
	 

	 
	 

	 
	By:  __________________________________

	 
	[Name and Title]

This Certificate represents [Class A]/[Class B] Notes referred to
 in the within mentioned Note Purchase Agreement:

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
not in its individual capacity, but solely as Authentication Agent

	
	
	By:  __________________________________

	Name:

	Title:

	 

	Dated

EXHIBIT A-2 
(to Note Purchase Agreement)

|

FORM OF OPINION OF SPECIAL COUNSEL 
TO THE COMPANY
Matters To Be Covered in 
Opinion of Special Counsel to the Company
1.    The Company being a corporation validly existing and in good standing and having requisite corporate power and authority to issue and sell the Notes and to execute and deliver the documents.
2.    Due authorization, execution and delivery of the documents and such documents being legal, valid, binding and enforceable.
3.    No conflicts with charter documents, material agreements and laws.
4.    All governmental consents required to issue and sell the Notes and to execute and deliver the documents having been obtained.
5.    No litigation questioning validity of documents.
6.    The Notes not requiring registration under the Securities Act of 1933, as amended; no need to qualify an indenture under the Trust Indenture Act of 1939, as amended.
            7.    The Company not being required to register as an “investment company” under the Investment Company Act nor is it a “covered fund” for purposes of the Volcker Rule under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

EXHIBIT 4.4 
(to Note Purchase Agreement)

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