Document:

Document

Exhibit 10.3

MUTUAL RELEASE AND TERMINATION AGREEMENT
This MUTUAL RELEASE AND TERMINATION AGREEMENT (this “Agreement”) is entered into as of the 31st day of December, 2022, by and among Azteca International Corporation, a Delaware corporation (“AIC”), HC2 Network Inc., a Delaware corporation, (“HC2 Network”) and TV Azteca, S.A.B. de C.V., a Sociedad Anónima Bursátil de Capital Variable, publicly traded variable capital corporation organized under the laws of Mexico (“TVA”).
RECITALS
WHEREAS, AIC, HC2 Network and TVA are party to that certain Program Licensing Agreement entered into as of November 29, 2017 (the “PLA”) and the Binding Term Sheet: La Academia (the “Term Sheet”) dated as of November 10, 2019;
WHEREAS, TVA and HC2 Network were party to that certain Broadcasting Services Agreement dated as of November 29, 2017 (as such agreement has been amended and supplemented prior to the date hereof, including pursuant to the First Amendment to Broadcasting Services Agreement made as of December 2021 and the Second Amendment to Broadcasting Services Agreement made as of March 31, 2022, the “BSA”) which was terminated according to its terms on March 31, 2022;
WHEREAS, AIC, HC2 Network and TVA desire to terminate the PLA, the Term Sheet and any and all other agreements or arrangements, including without limitation, arising out of the BSA following the termination of the BSA as of the Termination Effective Time, and resolve all disputes among them concerning the parties’ relationships and monies potentially due and owing; and
NOW, THEREFORE, in consideration of the above premises, the mutual covenants herein contained and for other good and valuable consideration (the receipt, adequacy and sufficiency of which are hereby acknowledged), the parties hereto agree as follows:
1.Termination. Each of AIC, HC2 Network and TVA agrees that:
(a)pursuant to Section 13.2(a) of the PLA, the PLA is hereby terminated as of the Termination Effective Time and, thereafter, except to the extent set forth in Section 5.5 of the PLA, the parties shall have no further obligations or rights under the PLA; 
(b)the Term Sheet is hereby terminated as of the Termination Effective Time;
(c)any and all other agreements or arrangements, including without limitation, arising out of the BSA following the termination of the BSA are hereby terminated as of the Termination Effective Time; and
(d)the BSA terminated in accordance with its terms on March 31, 2022.
2.Termination of the PLA. Each of the parties hereto agrees that, for the avoidance of doubt, because the PLA is being terminated pursuant to Section 13.2(a) of the PLA, none of 
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the parties hereto or their respective Affiliates is required, as of and after the Termination Effective Time, to comply with any of the provisions of Article 15 of the PLA.
3.Waiver and Release.
(a)Release by AIC, TVA. Each of AIC and TVA effective as of the Termination Effective Time, for itself and on behalf of its respective Affiliates and each of their respective officers, directors, managers, members, partners, agents, successors and assigns (the "AIC/TVA Releasing Parties") hereby absolutely, unconditionally and irrevocably WAIVES, RELEASES and FOREVER DISCHARGES (i) HC2 Network, (ii) the Affiliates of HC2 Network, and (iii) the current and former officers, directors, members, managers, partners, equityholders, employees, successors and assigns and agents of the Persons identified in clauses (i) and (ii) (collectively, the “AIC/TVA Released Parties”) from any and all Claims that any AIC/TVA Releasing Party ever had or may have against any AIC/TVA Released Party that may be based on, arising out of or related to the PLA, the BSA, the Term Sheet, any and all other agreements or arrangements, including without limitation, arising out of the BSA following the termination of the BSA, this Agreement or otherwise prior to the date hereof (the “AIC/TVA Released Claims”), and waives all rights that any AIC/TVA Releasing Party may now or in the future have with respect to any AIC/TVA Released Claims.  The AIC/TVA Releasing Parties shall not, and no one on their behalf shall, assert or file any Claim against any AIC/TVA Released Party arising out of any matter released pursuant to this Section 3(a). In the event that any Claim is asserted or filed against any AIC/TVA Released Party in breach hereof, such AIC/TVA Released Party shall be entitled to recover its costs, fees or expenses, including reasonable attorney fees and costs at trial and on appeal, incurred in defending against such action from the AIC/TVA Releasing Parties.  The AIC/TVA Releasing Parties acknowledge that they are fully informed and aware of their rights to receive independent legal advice regarding the advisability of the releases contemplated hereby and have received such independent legal advice as they deem necessary with regard to the advisability thereof. The AIC/TVA Releasing Parties further acknowledge that they have made an investigation of the facts pertaining to the releases contemplated hereby as they have deemed necessary, and, further, acknowledge that they have not relied upon any statement or representation of others.  
(b)Release by HC2 Network. HC2 Network effective as of the Termination Effective Time, for itself and on behalf of its Affiliates and each of their respective officers, directors, managers, members, agents, partners, successors and assigns (the "HC2 Network Releasing Parties"), hereby absolutely, unconditionally and irrevocably WAIVES, RELEASES and FOREVER DISCHARGES (i) each of AIC and TVA, (ii) the Affiliates of AIC and TVA, and (iii) the current and former officers, directors, members, managers, partners, equityholders, employees, successors and assigns and agents of the Persons identified in clauses (i) and (ii) (collectively, the “HC2 Network Released Parties”) from any and all Claims that any HC2 Network Releasing Party ever had or may have against any HC2 Network Released Party that may be based on, arising out of or related to the PLA, the BSA, the Term Sheet, any and all other agreements or arrangements, including without limitation, arising out of the BSA following the termination of the BSA, this Agreement or otherwise prior to the date hereof (the “HC2 Network Released Claims”), and waives all rights that any HC2 Network Releasing Party may now or in the future have with respect to any HC2 Network Released Claims.  The HC2 Network Releasing Parties shall not, and no one on their behalf shall, assert or file any Claim against any HC2 Network Released Party arising out of any matter released pursuant to this Section 3(b). In the event that any Claim is asserted or filed against any HC2 Network Released Party in breach 
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hereof, such HC2 Network Released Party shall be entitled to recover its costs, fees or expenses, including reasonable attorney fees and costs at trial and on appeal, incurred in defending against such action from the HC2 Network Releasing Parties.  The HC2 Network Releasing Parties acknowledge that they are fully informed and aware of their rights to receive independent legal advice regarding the advisability of the releases contemplated hereby and have received such independent legal advice as they deem necessary with regard to the advisability thereof. The HC2 Network Releasing Parties further acknowledge that they have made an investigation of the facts pertaining to the releases contemplated hereby as they have deemed necessary, and, further, acknowledge that they have not relied upon any statement or representation of others. 
(c)Exceptions. Notwithstanding anything to the contrary provided in Section 3(a) or Section 3(b), the AIC/TVA Released Claims and the HC2 Network Released Claims shall not include, and nothing herein shall waive, release or discharge in any manner, or constitute a defense to any claim arising in connection with the enforcement of this Agreement by any party hereto.
(d)Waiver of Legal Rights. EACH PARTY HERETO EXPRESSLY WAIVES ANY AND ALL RIGHTS IT HAS UNDER ANY STATE OR FEDERAL STATUTE OR ANY COMMON LAW PRINCIPLE OF SIMILAR EFFECT, THAT PROVIDES THAT THE FOREGOING WAIVER, RELEASE AND DISCHARGE DOES NOT EXTEND TO CLAIMS THAT IT DOES NOT KNOW OR SUSPECT TO EXIST IN ITS FAVOR AS OF THE DATE HEREOF, WHICH IF KNOWN BY IT WOULD HAVE MATERIALLY AFFECTED ITS SETTLEMENT OF THE AIC/TVA RELEASED CLAIMS AND THE HC2 NETWORK RELEASED CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT IT MAY HEREAFTER DISCOVER FACTS DIFFERENT FROM, OR IN ADDITION TO, THOSE WHICH IT KNOWS OR BELIEVES TO BE TRUE WITH RESPECT TO THE AIC/TVA RELEASED CLAIMS AND THE HC2 NETWORK RELEASED CLAIMS, AND AGREES THAT THE RELEASES CONTEMPLATED BY THIS SECTION 3 SHALL BE AND REMAIN EFFECTIVE IN ALL RESPECTS NOTWITHSTANDING SUCH DIFFERENT OR ADDITIONAL FACTS OR THE DISCOVERY THEREOF. EACH WAIVER, RELEASE AND DISCHARGE OF ANY CLAIM UNDER THE RELEASES CONTEMPLATED BY THIS SECTION 3 BENEFITING ANY PERSON OR ENTITY SHALL APPLY TO SUCH CLAIM, WHETHER SUCH CLAIM IS CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE (WHETHER SOLE, JOINT OR CONCURRENT), STRICT LIABILITY OR OTHERWISE LEGAL FAULT OF SUCH PERSON OR ENTITY.
(e)No Assignment of Released Claims. (a) HC2 Network represents and warrants to AIC and TVA that the release set forth in Section 3(b) is binding upon it, HC2 Network has not in any manner assigned, pledged or otherwise voluntarily or involuntarily disposed of or transferred to any Person any interest in any HC2 Network Released Claim, HC2 Network (or its Affiliates) are the sole and exclusive owners of all HC2 Network Released Claims and each HC2 Network Released Claim is hereby fully and finally discharged, settled and satisfied effective as of the Termination Effective Time; and (b) each of AIC and TVA represents and warrants to HC2 Network that the release set forth in Section 3(a) is binding upon AIC and TVA, neither AIC nor TVA has in any manner assigned, pledged, or otherwise voluntarily or involuntarily disposed of or transferred to any Person any interest in any AIC/TVA Released Claim, AIC, TVA (or an Affiliate thereof) are the sole and exclusive owners of all AIC/TVA Released Claims and each AIC/TVA Released Claim is hereby fully and finally discharged, settled and satisfied effective as of the Termination Effective Time.
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(f)No Admission. This Agreement does not constitute evidence of unlawful conduct or wrongdoing by any of AIC, TVA, HC2 Network or any of their respective Affiliates.
4.Non-disparagement Covenant. Each of AIC, HC2 Network and TVA agrees and agrees to cause their respective Affiliates for a period of five years after the date hereof, to not publish or make any negative, disparaging, damaging, or critical statements, whether written or oral, which are likely to adversely affect or otherwise malign the business or reputation of, with respect to AIC, TVA and their respective Affiliates, HC2 Network, the Affiliates of HC2 Network or the respective officers, directors, managers, members, agents, partners, equityholders, employees and successors and assigns of HC2 Network and such Affiliates of HC2 Network and, with respect to HC2 Network and its Affiliates, AIC, TVA and their respective Affiliates or the respective officers, directors, managers, members, agents, partners, equityholders, employees and  successors and assigns of AIC, TVA and such Affiliates of AIC and TVA, or do anything that may harm the reputation of any of them, provided, however, that the foregoing is neither intended to, nor shall limit the ability of any Person to testify truthfully in response to any valid subpoena issued by a court of competent jurisdiction or to engage in any other activity compelled or protected by law.
5.Jurisdiction; Waiver of Jury Trial.
(a)Jurisdiction. Each of the parties (i) agrees that any suit action or other proceeding against it arising out of or relating to this Agreement or of any transaction contemplated hereby that might be brought by its or any of its Affiliates, as the case shall be, may be instituted in any court of the State of New York or any United States court sitting, in each case, in the Borough of Manhattan, The City of New York, New York, United States of America, and any appellate court from any court thereof, (ii) waives to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to the laying of venue of any such suit action or proceeding, any immunity from the jurisdiction of such courts over any suit, action or proceeding, its right to bring action in any other jurisdiction that may apply by virtue of its present or future domicile or for any other reason, any claim that any suit, action or proceeding in such a court has been brought in an inconvenient forum and any right to any other jurisdiction to which it may be entitled on account of place of residence or domicile, or for any other reason, (iii) irrevocably consents and submits to the exclusive jurisdiction of any court of the State of New York or any United States court sitting, in each case, in the Borough of Manhattan, The City of New York, New York, United States of America, and any appellate court from any court thereof,  and (iv) agrees that final judgment in any such suit, action or proceeding brought in such a court shall be conclusive and binding and may be enforced in the courts of any jurisdiction of which it is subject by a suit upon judgment.
(b)Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS OR ANY OTHER MATTER CONTEMPLATED BY THIS AGREEMENT.
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(c)Specific Performance; Injunctive Relief. The parties hereto agree that irreparable damage may occur in the event that any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached. It is accordingly agreed that the parties may be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, such relief being in addition to any other remedy to which they are entitled at law or in equity.
6.Definitions.
As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):
(a)“Affiliate” of a Person means any Person that directly or indirectly controls, is controlled by, or is under common control with the Person in question. For the purposes of this Agreement, “control”, when used with respect to any Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise. 
(b)“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in the City of New York or Mexico City.
(c)“Claims” means any and all manner of liabilities, causes of action at law or in equity, claims, complaints, actions, proceedings, demands, suits, debts, losses, obligations, damages, indebtedness, amounts owed, dues, judgments, rights of contribution, costs, expenses, covenants, agreements, representations and other claims of any and every kind, arising under any theory of contract, tort, breach of duty, strict liability, negligence, law, equity or any other theory of liability or based on any foreign, federal, state, or local law, code, statute, rule or regulation, or the common or civil law of any jurisdiction (in each case, whether known, unknown, disclosed, undisclosed, matured, unmatured, accrued, unaccrued, asserted, unasserted, fixed, unfixed, perfected, unperfected, liquidated, unliquidated, absolute, contingent, direct, indirect, conditional, unconditional, secured, unsecured, vicarious, derivative, due, joint, several or secondary).
(d)  “Person” shall mean any individual, partnership, limited partnership, joint venture, firm, corporation, association, limited liability company, trust or other entity, or any government or political subdivision or any agency, department or instrumentality thereof.
(e)“Termination Effective Time” means 11:59 p.m. eastern standard time on December 31, 2022.  
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7. Payment.  In accordance with the express conditions set forth below, HC2 Network hereby agrees to pay TVA the sum of Two Million Four Hundred Ninety-Eight Thousand Five Hundred Sixty-Two United States Dollars (US$2,498,562) in full and final settlement of all amounts claimed by TVA, AIC and its respective Affiliates from HC2 Network under the PLA, the Term Sheet, the BSA, any and all other agreements or arrangements, including without limitation, arising out of the BSA following the termination of the BSA, the Agreement or otherwise (including reimbursement of legal fees) on the third Business Day following the date of the earliest to occur of the following:  (i) an order issued by the court in the matter entitled Diamond Films Netherlands Cooperatief U.A. against TV Azteca S.A.B. DE C.V., Supreme Court of New York, County of New York, Index No. 655384/2020 (the “New York Lawsuit”) vacating the judgement entered on June 23, 2022 in favor of Diamond Films Netherlands Cooperatief U.A. against TVA, (ii) an order issued by the court in the New York Lawsuit authorizing the payment of the amount set forth in this Section 7, (iii) the expiration of the Restraining Notice dated July 26, 2022 served on HC2 Network in connection with the New York Lawsuit or (iv) reasonable opinion of counsel of HC2 Network.
8.Miscellaneous.
(a)Assignment; No Prior Assignment. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their permitted successors and assigns. No party to this Agreement may assign or delegate, by operation of law or otherwise, all or any portion of its rights, obligations or liabilities under this Agreement without the prior written consent of the other parties. Any purported assignment without such prior written consents shall be void. 
(b)Amendments. This Agreement may not be amended except by an instrument in writing signed by each of the parties hereto.
(c)No Waiver. Waiver of any term or condition of this Agreement by any party hereto shall only be effective if in writing and executed by a duly authorized officer or representative of the waiving party and shall not be construed as a waiver of any subsequent breach or failure of the same term or condition, or a waiver of any other term or condition of this Agreement. The failure of any party hereto to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege under this Agreement.
(d)Entire Agreement. This Agreement embodies the entire agreement and understanding among the parties hereto relating to the subject matter hereof and supersedes any prior agreements and understandings, both written and oral, relating to the subject matter hereof.
(e)Invalid Provisions. If any term, provision, agreement, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, agreements, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Notwithstanding the foregoing, no release hereunder shall be effective in favor of any Person unless the release is and remains binding upon such Person. Upon such a determination, the parties shall negotiate in 
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good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a reasonably acceptable manner so that the transactions contemplated hereby may be consummated as originally contemplated to the fullest extent possible.
(f)Governing Law. This Agreement shall be governed by the laws of the State of New York without giving effect to any conflict or choice of law provision, except as Section 5-1401 of the New York General Obligations Law shall apply.
(g)Headings. The headings contained in this Agreement are intended solely for convenience and shall not affect the rights of the parties to this Agreement.
(h)Counterparts. This Agreement may be signed in any number of counterparts with the same effect as if the signatures to each counterpart were upon a single instrument, and all such counterparts together shall be deemed an original of this Agreement. Facsimile signatures, electronic signatures or signatures received as a pdf attachment to electronic mail shall be treated as original signatures for all purposes of this Agreement.
(i)Confidentiality. Each Person party hereto, for themselves and the Persons on whose behalf such Person party hereto has bound them to this Agreement, covenant to keep this Agreement strictly confidential other than as necessary to enforce the terms hereof; and, except as required by law, rule or regulation, will not disclose the terms of this Agreement except to legal, tax and other advisors who have been advised of this confidentiality obligation.
(j)Notices.  Unless this Agreement specifically requires otherwise, any notice, demand or request provided for in this Agreement, or served, given or made in connection with it, shall be in writing and shall be deemed properly served, given or made if delivered in person or sent by facsimile or email (in the case of delivery by facsimile or email, solely if receipt is confirmed) or sent by registered or certified mail, postage prepaid, or by a nationally recognized overnight courier service that provides a receipt of delivery, in each case, to the parties at the addresses specified below: 
If to AIC: 
3900 W Alameda Ave
Suite 1200
Burbank, CA 91505
Attn: General Counsel
With a copy to: 
Winston & Strawn LLP
200 Park Avenue
New York, New York 10166
United States of America
Attn: J. Allen Miller
Email:  amiller@winston.com
Facsimile No.: (212) 294-4700 

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If to TVA: 
Perferico Sur 4121
Colonia Fuentes del Pedregal
Ciudad de Mexico, Mexico  14141 
Attn:  General Counsel
With a copy to: 
Winston & Strawn LLP
200 Park Avenue
New York, New York 10166
United States of America
Attn: J. Allen Miller
Email: amiller@winston.com
Facsimile No.: (212) 294-4700 
If to HC2 Network: 
HC2 Network Inc.
295 Madison Avenue, 12th Floor
New York, NY 10017
United States of America
Attn: Wayne Barr
Email: wbarr@INNOVATEcorp.com

With copies to: 
Akerman LLP
1251 Avenue of the Americas, 37th Floor
New York, NY 10020
Attn: Palash Pandya
Email: palash.pandya@akerman.com
or to such other address or addresses as the parties may from time to time designate in writing.
Notice given by personal delivery, mail or overnight courier pursuant to this Section 7(j) shall be effective upon physical receipt.  Notice given by facsimile or email pursuant to this Section 7 (j) shall be effective as of the date of confirmed delivery if delivered before 5:00 p.m. Eastern Time on any Business Day or the next succeeding Business Day if confirmed delivery is after 5:00 p.m. Eastern Time on any Business Day or during any non-Business Day.
[Signature page follows]

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

									
		AZTECA INTERNATIONAL CORPORATION
			
			
		By:	/s/ Rafael Rodriguez S
		Name:	Rafael Rodriguez S
		Title:	

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		HC2 NETWORK INC.
			
			
		By:	/s/ Wayne Barr, Jr.
		Name:	Wayne Barr, Jr.
		Title:	Chief Executive Officer

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		TV AZTECA, S.A.B. de C.V.
			
			
		By:	/s/ Rafael Rodriguez S
		Name:	Rafael Rodriguez S
		Title:	

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67913862;4EX-10.1

 Exhibit 10.1 

CONTRIBUTION AGREEMENT 

THIS CONTRIBUTION AGREEMENT, dated as of January 1, 2023 (this “Agreement”), is by and between Peoples Gas System,
Inc., a Florida corporation (“PGSI”) and Tampa Electric Company, a Florida corporation (“Tampa Electric”). PGSI and Tampa Electric each a “Party” and, collectively, they are sometimes
referred to as the “Parties.” 
 W I T N E S S E T H: 

WHEREAS, TECO Energy, Inc., a Florida corporation (“TECO”) owns 100% of the issued and outstanding capital stock of Tampa
Electric; 
 WHEREAS, Tampa Electric has an electric division and the natural gas division known as Peoples Gas System (the “Gas
Division”) each of which is regulated by the Florida Public Service Commission, and each maintain separate books and records; 

WHEREAS, prior to the Closing and the transactions described in these recitals below, Tampa Electric owns (i) 100% of the issued and
outstanding capital stock of PGSI and (ii) the Assets (as defined below) which are all of the assets of the Gas Division and 100% of the issued and outstanding capital stock (the “TPI Stock”) of TECO Partners, Inc., a Florida
corporation (“TPI”); 
 WHEREAS, Tampa Electric desires to contribute, transfer, assign and deliver to PGSI, and PGSI
desires to accept the Assets, including the TPI Stock; and 
 WHEREAS, after the contribution, transfer, assignment and delivery of the
Assets to PGSI; Tampa Electric will distribute, transfer and assign 100% of the issued and outstanding capital stock of PGSI (the “Peoples Stock”) to TECO, which in turn will contribute the Peoples Stock to TECO Gas Operations,
Inc., a Florida corporation and a wholly-owned subsidiary of TECO (“TGO”), such that after the transactions contemplated by this Agreement and such distributions, PGSI will own the Assets and be a direct, wholly-owned subsidiary of
TGO. 
 NOW, THEREFORE, in consideration of the premises and the representations, warranties, covenants and agreements stated herein, the
receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, covenant and agree as follows: 

ARTICLE I 
 CONTRIBUTION
AND DELIVERY 
 Section 1.1 Assets. Subject to the terms and conditions of this Agreement, and on the basis of the
representations and warranties hereinafter set forth, at the Closing (as hereinafter defined), Tampa Electric shall contribute, transfer, convey, assign and deliver to PGSI, and PGSI shall accept and acquire from Tampa Electric, the TPI Stock and
all of the assets of the Gas Division, which are listed on Exhibit A attached hereto (collectively, the “Assets”). After completion of the audit of the financial statements of the Gas Division as at December 31, 2022,
the Parties agree to amend this Agreement to replace Exhibit A with the audited financial assets of the Gas Division transferred to PGSI effective as of the Closing Date. 

Section 1.2 Excluded Assets. Notwithstanding anything to the contrary contained in Section 1.1 or
elsewhere in this Agreement, except for the Assets, Tampa Electric is not contributing and PGSI is not acquiring pursuant to this Agreement the following assets of Tampa Electric (collectively, the “Excluded Assets”), (a) any assets
related to Tampa Electric’s electric utility business, including assets for the generation, purchase, transmission, distribution, and wholesale and retail sale of electric energy; (b) Tampa

 
Electric’s allocated portion of TECO benefit plans relating to its electric utility business, including all rights and obligations thereunder; (c) books and records that relate to
(i) the organizational or governance proceedings of Tampa Electric, (ii) Tampa Electric’s tax returns and tax records, or (iii) the Excluded Assets; and (d) Tampa Electric’s allocated portion of any insurance policies
and rights thereunder relating to its electric utility business, including pre-paid insurance premiums. 

Section 1.3 Closing. The closing of the contribution, transfer, conveyance and assignment of the Assets (the
“Closing”) provided for in this Agreement shall take place at the offices of Tampa Electric or remotely pursuant to the exchange of electronic documents, as of 12:01 a.m. on January 1, 2023 (the “Closing
Date”). 
 Section 1.4 Closing Deliveries. 

(a) At the Closing, Tampa Electric shall deliver to PGSI the following, representing all of the assets of its Gas Division: 

(i) the Assets; 
 (ii) a Bill of Sale, in the form attached
hereto as Exhibit B (the “Bill of Sale”), transferring to PGSI title to all of the Assets, duly executed by Tampa Electric; 
 (iii)
an Assignment and Assumption of Franchises, in the form attached hereto as Exhibit C-1 (the “Franchise Assignment”), transferring to PGSI all of the franchises of its Gas Division, duly
executed by Tampa Electric; 
 (iv) an Assignment and Assumption of General Contracts, in the form attached hereto as Exhibit C-2 (the “Contract Assignment”), transferring to PGSI all of the other contracts of its Gas Division, duly executed by Tampa Electric; 

(v) a Quit Claim Deed for each fee owned property by the Gas Division in the form attached hereto as Exhibit
D-1 and recordable assignments for each county in which easements lie in the form attached hereto as Exhibit D-2 (collectively, the “Real Property
Assignment”), transferring to PGSI all of the interests in real estate including easements of its Gas Division, duly executed by Tampa Electric; 

(vi) such instruments and documents reasonably necessary to transfer the TPI Stock to PGSI; 

(vii) all consents and approvals required in connection with the execution, delivery and performance of this Agreement (except for (A) those consents and
approvals customarily obtained post-Closing and (B) those consents and approvals for which the Parties will satisfy pursuant to Section 5.6); 

(viii) all Tampa Electric’s books and records and other data relating to the Assets; and 

(ix) such other separate instruments of assignment or transfer reasonably required by PGSI to effect the transfer of the foregoing. 

(b) At the Closing, PGSI shall deliver to Tampa Electric: 
 (i)
the Bill of Sale, duly executed by PGSI; 
 (ii) the Franchise Assignment, duly executed by PGSI 

(iii) the Contract Assignment, duly executed by PGSI; 
 (iv) the
Real Property Assignment, duly executed by PGSI; and 
 (v) such other separate instruments of assignment or transfer reasonably required by Tampa Electric.

  
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 ARTICLE II 

LIABILITIES AND OBLIGATIONS 

Section 2.1 Assumed Liabilities. At the Closing, PGSI shall assume and be solely responsible for (collectively, the
“Assumed Liabilities”): 
 (a) the payment, performance, observance and fulfillment of all of the debts, Liabilities, obligations of Tampa
Electric related to its Gas Division or the Assets whether incurred, or related to events occurring, before, during or after the Closing Date; provided that, with respect to obligations for borrowed money relating to its Gas Division or the
Assets, the obligations being assumed by PGSI are specified in that certain Loan Agreement between PGSI and Tampa Electric dated as of even date herewith; 

(b) all risk of loss with respect to the Assets; and 
 (c) any
damages, costs, losses, Liabilities and expenses (“Damages”) resulting from any claim, actions, lawsuit, demand or proceeding before a governmental authority or arbitrator relating to the Assets, irrespective of whether any such
Damages are the result of any fault, latent defect, condition or circumstance existing prior to the Closing Date or arising thereafter. 
 For the avoidance
of doubt, it is the intention of the Parties that PGSI shall assume all debts, Liabilities and obligations of Tampa Electric relating to its Gas Division. The term “Liability” means any liability or obligation of any nature
whatsoever (direct or indirect, matured or unmatured, absolute, accrued, contingent or otherwise), whether or not required by generally accepted accounting principles to be provided or reserved against on a balance sheet. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF PGSI 

PGSI represents and warrants to Tampa Electric as follows: 

Section 3.1 Organization and Qualification. PGSI is a corporation duly organized, validly existing and in good standing under
the laws of the State of Florida and has full corporate power and authority to own, lease and operate its assets and properties and to carry on its business as it is now being conducted. 

Section 3.2 Authority; Binding Agreement. PGSI has full power and authority to execute and deliver this Agreement and the
other documents delivered by PGSI at Closing and to consummate the transactions contemplated hereby or thereby. This Agreement has been approved by the board of directors of PGSI, and no additional approvals or proceedings on the part of PGSI are
necessary to authorize the execution and delivery of this Agreement or the consummation by PGSI of the transactions contemplated hereby. This Agreement has been duly executed and delivered by PGSI and, assuming the due authorization, execution and
delivery hereof by Tampa Electric, constitutes a valid and binding agreement of PGSI and is enforceable against PGSI in accordance with its terms, except that such enforcement may be subject to bankruptcy, insolvency, reorganization or other similar
laws affecting or relating to enforcement of creditors’ rights generally. 

  
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 Section 3.3 Non-Contravention;
Approvals. 
 (a) The execution and delivery of this Agreement and the other documents delivered by PGSI at Closing, and the consummation by PGSI of the
transactions contemplated hereby and thereby, do not and will not violate or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in
the termination of, or accelerate the performance required by, or result in a right of termination or acceleration under, or result in the creation of any encumbrance upon any of the properties or assets of PGSI under any of the terms, conditions or
provisions of (i) the articles of incorporation or bylaws of PGSI, (ii) any statute, law, ordinance, rule, regulation, judgment, decree, order, injunction, writ, permit or license of any court or governmental authority applicable to PGSI,
or (iii) any note, bond, mortgage, indenture, deed of trust, license, franchise, permit, concession, contract, lease or other instrument, obligation or agreement of any kind to which PGSI is now a party or by which PGSI may be bound or
affected. 
 (b) No declaration, filing or registration with, or notice to, or authorization, consent or approval of, any governmental or regulatory body or
authority is necessary for the execution and delivery of this Agreement by PGSI or the consummation by PGSI of the transactions contemplated hereby. 

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF TAMPA ELECTRIC 

Tampa Electric represents and warrant to PGSI as follows: 

Section 4.1 Organization and Qualification. Tampa Electric is a corporation duly organized, validly existing and in good
standing under the laws of the State of Florida and has the requisite corporate power and authority to own, lease and operate the Assets and to carry on its business as it is now being conducted. Tampa Electric is duly qualified to do business as a
foreign corporation and is in good standing in each jurisdiction in which the properties owned, leased, or operated by it or the nature of the business conducted by it makes such qualification necessary. 

Section 4.2 Authority; Non-Contravention; Approvals. 

(a) Tampa Electric has the full power and authority to execute and deliver this Agreement and the other documents delivered by Tampa Electric at Closing and
to consummate the transactions contemplated hereby or thereby. This Agreement has been approved by the board of directors of Tampa Electric, and no additional approvals or proceedings on the part of Tampa Electric are necessary to authorize the
execution and delivery of this Agreement or the consummation by Tampa Electric of the transactions contemplated hereby. This Agreement has been duly executed and delivered by Tampa Electric, and, assuming the due authorization, execution and
delivery hereof by PGSI, constitutes a valid and binding agreement of Tampa Electric, enforceable against Tampa Electric in accordance with its terms, except that such enforcement may be subject to bankruptcy, insolvency, reorganization or other
similar laws affecting or relating to enforcement of creditors’ rights generally. 
 (b) The execution and delivery of this Agreement and the other
documents delivered by Tampa Electric at Closing, and the consummation by Tampa Electric of the transactions contemplated hereby and thereby, do not and will not violate or result in a breach of any provision of, or constitute a default (or an event
which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a right of termination or acceleration under, or result in the creation of any
encumbrance upon any of the properties or assets of Tampa Electric under any of the terms, conditions or provisions of (i) the articles of incorporation or bylaws of Tampa Electric, (ii) any statute, law, ordinance, rule, regulation,
judgment, decree, order, injunction, writ, permit or license of 

  
 4 

 
any court or governmental authority applicable to Tampa Electric, or any of the Assets, or (iii) any note, bond, mortgage, indenture, deed of trust, license, franchise, permit, concession,
contract, lease or other instrument, obligation or agreement of any kind to which Tampa Electric is now a party or by which Tampa Electric or any of Assets may be bound or affected; except in each case (in (i), (ii) or (iii) above) as would not
have a material adverse effect on PGSI’s ability to operate the Assets after Closing (taking into account the covenants in Section 5.6). 

(c) No declaration, filing or registration with, or notice to, or authorization, consent or approval of, any governmental or regulatory body or authority is
necessary for the execution and delivery of this Agreement by Tampa Electric or the consummation by Tampa Electric of the transactions contemplated hereby. 

ARTICLE V 
 CERTAIN
UNDERSTANDINGS AND AGREEMENTS OF THE PARTIES 
 Section 5.1 Confidentiality. Each Party agrees to maintain in
confidence and not disclose to any other Person the terms of the transactions contemplated hereby and the information obtained in confidence from the other Party in connection with the transactions contemplated hereby, other than
(i) disclosures required to obtain the approvals for the transactions contemplated hereby; (ii) disclosures to those professionals and advisors who have a need to know; (iii) disclosures of information already available to the public
that does not result from a breach of this Agreement; or (iv) any other disclosures required by applicable law or regulation (including applicable securities laws and regulations). For purposes of this Agreement, “Person” means
any individual, corporation, partnership, limited liability company, association, trust, unincorporated entity, governmental authority, or other legal entity. 

Section 5.2 Further Assurances. The Parties shall execute and deliver to the other, after the Closing Date, any other
instrument which may be reasonably requested by the other and which is reasonably appropriate to perfect or evidence any of the contributions, assignments, transfers or conveyances contemplated by this Agreement. 

Section 5.3 Expenses and Fees. Each Party shall be responsible for all costs and expenses incurred by such Party in
connection with this Agreement and the transactions contemplated hereby, including, without limitation, any and all broker’s commissions and the fees and expenses of such Party’s attorneys and accountants. 

Section 5.4 Agreement to Cooperate. Subject to the terms and conditions herein provided, the Parties hereto shall use all
reasonable efforts to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations to consummate and make effective the transactions contemplated hereby,
including using all reasonable efforts to obtain (i) all necessary, proper or advisable waivers, consents and approvals under applicable laws and regulations to consummate and make effective the transactions contemplated hereby, and
(ii) all necessary or appropriate waivers, consents or approvals of third parties required in order to preserve material contractual relationships. 

Section 5.5 Transfer Taxes. PGSI shall be liable for and pay, and shall indemnify and hold the other Parties harmless from
all transfer, sales, use, gross receipts, stamp, value added, excise, or similar taxes imposed on or relating to the transfer of the Assets. 

  
 5 

 Section 5.6 Transfer Restrictions. If prohibitions against or other
restrictions on the assignment or conveyance of any of the Assets without the prior written consent of third persons exist (other than those normally granted in the ordinary course of business) that if not satisfied would result in a breach by Tampa
Electric or that would give a third party a right to terminate Tampa Electric’s or PGSI’s rights with respect to the affected Asset (a “Restriction”), this Agreement shall not be an undertaking to transfer any Asset in
contravention of any Restriction, but the Parties shall cooperate together and use commercially reasonable efforts to obtain consents necessary or appropriate to satisfy or remove the Restriction. Alternatively, at the request of PGSI the Parties
will cooperate in any reasonable and lawful arrangement designed to provide PGSI with the benefits of any Assets subject to a Restriction and to enforce, at the request of PGSI, any rights of Tampa Electric arising from the affected Asset until the
Restriction is satisfied or waived. Upon satisfaction or waiver of the Restriction, the assignment of the affected Asset will become effective automatically as of the Closing Date without further action by Tampa Electric or PGSI. 

Section 5.7 Survival. The covenants and agreements set forth in this Agreement shall be continuing and shall survive the
Closing. 
 Section 5.8 PGSI Acknowledgement. ALL OF THE ASSETS CONVEYED HEREBY ARE CONVEYED “AS IS,” “WHERE
IS,” AND “WITH ALL FAULTS,” EXCEPT AS SPECIFICALLY SET OUT HEREIN. TAMPA ELECTRIC MAKES NO REPRESENTATION OR WARRANTY WHATSOEVER WHETHER EXPRESSED, IMPLIED OR STATUTORY WITH RESPECT TO THE KIND, SIZE, QUALITY, DESCRIPTION,
MERCHANTABILITY, CONDITION, USE OR FITNESS FOR ANY PARTICULAR PURPOSE OF THE ASSETS, EXCEPT AS SPECIFICALLY SET OUT HEREIN. PGSI AGREES, BY ITS EXECUTION HEREOF, THAT (i) THERE ARE NO REPRESENTATIONS AND WARRANTIES EXCEPT AS SPECIFICALLY SET
OUT HEREIN, (ii) IT IS NOT RELYING ON ANY REPRESENTATION OR WARRANTY OF TAMPA ELECTRIC WITH RESPECT TO THE FITNESS OF THE ASSETS FOR ANY PURPOSE INTENDED BY PGSI, (iii) IT HAS EXAMINED AND IS FAMILIAR WITH THE ASSETS AND (iv) IS
ACQUIRING THE ASSETS “AS IS,” “WHERE IS,” AND “WITH ALL FAULTS” AND WITHOUT ANY EXPRESSED OR IMPLIED WARRANTIES OF ANY KIND, EXCEPT AS SPECIFICALLY SET OUT HEREIN, INCLUDING, BUT NOT LIMITED TO, WARRANTIES RELATED TO
MATERIALS, WORKMANSHIP, MERCHANTABILITY, CONDITION, USE, OR FITNESS FOR ANY PARTICULAR PURPOSE, AND TAMPA ELECTRIC HEREBY DISCLAIMS ANY SUCH WARRANTIES. 

ARTICLE VI 
 GENERAL
PROVISIONS 
 Section 6.1 Notices. All notices and other communications hereunder shall be in writing and shall be
deemed given if delivered personally, mailed by registered or certified mail (return receipt requested) or sent via facsimile to the Parties at the following addresses (or at such other address for a Party as shall be specified by like notice): 

 

	(a)	 If to PGSI, to: 

Peoples Gas Company, Inc. 
 702
North Franklin Street 
 Tampa, FL 33602 

Attention: Corporate Secretary 

Telephone No.: (813) 228-1429 

Telecopy No.: (813) 228-1328 

  
 6 

	(b)	 If to Tampa Electric, to: 

Tampa Electric Company 
 702
North Franklin Street 
 Tampa, FL 33602 

Attention: Corporate Secretary 

Telephone No.: (813) 228-1429 

Telecopy No.: (813) 228-1328 

Section 6.2 Interpretation. The headings contained in this Agreement are for reference purposes only and shall not affect in
any way the interpretation of this Agreement. In this Agreement, unless a contrary intention is specifically set forth, (i) the words “herein”, “hereof” and “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision and (ii) reference to any Article or Section means such Article or Section hereof. No provision of this Agreement shall be
interpreted or construed against any Party solely because such Party or its legal representative drafted such provision. 

Section 6.3 Entire Agreement; Assignment. This Agreement (including the documents and instruments referred to herein and the
Schedules and Exhibits attached hereto) (a) constitutes the entire agreement and supersedes all other prior agreements and understandings, both written and oral, among the Parties, or any of them, with respect to the subject matter hereof, and
(b) shall not be assigned by operation of law or otherwise by either Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld, conditioned or delayed. 

Section 6.4 Governing Law. THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE
OF FLORIDA APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE. 
 Section 6.5 Amendment.
This Agreement may not be amended except by an instrument in writing signed on behalf of the Parties. 
 Section 6.6 Parties in
Interest. This Agreement shall be binding upon and inure solely to the benefit of each Party hereto, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever
under or by reason of this Agreement. 
 Section 6.7 Validity. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provisions of this Agreement, which shall remain in full force and effect. 

Section 6.8 Waiver of Consequential Damages. NO PARTY SHALL HAVE ANY LIABILITY TO ANY OTHER PARTY FOR ANY CONSEQUENTIAL, INDIRECT, PUNITIVE,
EXEMPLARY, OR SPECIAL DAMAGES UNDER THIS AGREEMENT OR BASED ON THE TRANSACTIONS CONTEMPLATED IN THIS AGREEMENT, WHETHER BASED IN CONTRACT, TORT, STRICT LIABILITY, OTHER LAW OR OTHERWISE. 

Section 6.9 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
by any rule of law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced,
the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated by this Agreement are fulfilled to the
greatest extent possible. 

  
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 Section 6.10 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. 
 [Signature
Page Follows] 

  
 8 

 IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement effective as of
the date first written above. 
  

			
	PGSI:
	
	PEOPLES GAS SYSTEM, INC.
		
	By:	 	/s/ Helen Wesley
		 	Helen Wesley
		 	President
		
	By:	 	/s/ Rachel Parsons
		 	Rachel Parsons
		 	Vice President of Finance and Planning
	
	TAMPA ELECTRIC:
	
	TAMPA ELECTRIC COMPANY
		
	By:	 	/s/ Archibald Collins
		 	Archibald Collins
		 	President and Chief Executive Officer
		
	By:	 	/s/ Jeffrey S. Chronister
		 	Jeffrey S. Chronister
		 	Vice President-Finance and Controller

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