EQUITY PURCHASE AGREEMENTby and amongCAPSTONE GREEN ENERGY LLC,CAL MICRO HOLDCO, INC.,THE RBKB TRUST, DATED DECEMBER 3, 2019,KENDA BROWN,andRYAN BROWNDated as of August 13, 2025
Execution Version
by and among CAPSTONE GREEN ENERGY LLC, CAL MICRO HOLDCO, INC., THE RBKB TRUST, DATED DECEMBER 3, 2019, ▇▇▇▇▇ ▇▇▇▇▇, and RYAN BROWN Dated as of August 13, 2025 |
TABLE OF CONTENTS
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INDEX OF DEFINED TERMS
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THIS EQUITY PURCHASE AGREEMENT (this “Agreement”), dated as of August 13, 2025, is by and among Capstone Green Energy LLC, a Delaware limited liability company (“Buyer”), Cal Micro Holdco, Inc., a California corporation, (“Seller”), The RBKB Trust, dated December 3, 2019 (the “Trust”), ▇▇▇▇▇ ▇▇▇▇▇ (“▇. ▇▇▇▇▇”), and ▇▇▇▇ ▇▇▇▇▇ (“▇. ▇▇▇▇▇” and together with ▇. ▇▇▇▇▇, the “Indirect Equityholders”, and the Indirect Equityholders together with the Trust, the “Indirect Sellers”, and the Indirect Sellers together with Seller, the “Seller Parties”).
RECITALS
NGOLSHAN\37992.00001\5201037.18
AGREEMENT
In consideration of the mutual promises and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties (as defined below) hereby agree as follows:
“Accountant” means one of BDO USA, LLP, RSM US LLP, or ▇▇▇▇▇ ▇▇▇▇▇ International, as agreed by ▇▇▇▇▇ and Seller.
“Accounting Principles” means GAAP, except, solely with respect to the Balance Sheet, as set forth on Schedule 1.1(a).
“Adverse Consequences” means any and all Liabilities, losses, damages, awards, deficiencies, penalties, fines, assessments, Taxes, costs and expenses (including reasonable fees and expenses of attorneys, accountants and other experts paid in connection with the investigation or defense of, and all amounts paid in settlement with respect to, any of the foregoing or any Proceeding relating to any of the foregoing); provided, however, that “Adverse Consequences” shall not include any punitive damages except to the extent such damages are incurred in connection with the assertion, whether orally or in writing, of a Third Party Claim against any Person entitled to indemnification hereunder.
“Affiliate” means, with respect to any Person, any other Person that (a) directly or indirectly controls, is controlled by or is under common control with such Person, or (b) is a parent, spouse or child of such Person. As used herein, the term “control” means: (i) the power to vote at least thirty percent (30%) of the voting power of a Person, or (ii) the possession, directly or indirectly, of any other power to direct or cause the direction of the management and policies of such a Person, whether through ownership of voting securities, by contract or otherwise.
“Arbitration” means Cal Microturbine, Inc. v. Capstone Green Energy Corporation, American Arbitration Association Case No. 1-24-0003-0961, which includes all claims made therein by the Company and all counter-claims made thereto by Capstone Green Energy Corporation.
“Auditor” means ▇▇▇▇▇▇, ▇▇▇▇ & Company.
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“Business Day” means any day except Saturday, Sunday, any statutory holiday in the State of California or any other day on which the principal chartered banks in the State of California are closed for business.
“Buyer Indemnified Parties” means Buyer, the Company, and ▇▇▇▇▇’s other Affiliates and their respective equity holders, partners, directors, managers, officers, employees, agents and representatives.
“CARB Proceeding” means the ongoing Proceeding that began with the information request from the California Air Resources Board (“CARB”) dated November 14, 2024, concerning the sale or lease, or offering for sale or lease, by the Company, in the State of California, of permit-exempt distributed generation units manufactured by Buyer.
“CARES Act” means the Coronavirus Aid, Relief, and Economic Security Act (including any changes in state or local law that are analogous to provisions of the CARES Act or adopted to conform to the CARES Act) and any legislative or regulatory guidance issued pursuant thereto.
“Code” means the U.S. Internal Revenue Code of 1986, as amended.
“Company Software” all Software owned or purported to be owned by the Company.
“Company Vehicles” means (i) the 2023 Ram 2500, with VIN # ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇, (ii) the 2019 GMC Sierra, with VIN # ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇, (iii) the 2018 Ford F-250, with VIN # ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇, (iv) the 2024 Toyota Tacoma, with VIN # ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇ and (v) the 2025 Toyota Tacoma, with VIN # 3TMKB5FN0SM02820 (the “2025 Tacoma”).
“Confidential Information” means all information of a confidential or proprietary nature (whether or not specifically labeled or identified as “confidential”), in any form or medium, of Buyer, the Company or their respective Affiliates, or its or their respective customers, suppliers, distributors or other business relations, including all information possessing an element of value to the Company, or information concerning finances, customer information, supplier information, products, product specifications, services, prices, organizational structure and internal practices, forecasts, sales and other financial results, records and budgets, and business, marketing, development, sales and other commercial strategies, unpatented inventions, ideas, methods and discoveries, trade secrets, know-how, unpublished Patents and other confidential Intellectual Property, documentation, components, object code, data, compositions, schematics, designs, sketches, photographs, graphs, drawings, protocols and processes. Confidential Information shall not include any information that is or becomes generally known to and available for use by the public other than as a result of any acts or omissions of any Seller Party or any of their respective Affiliates.
“Contingent Worker” means a natural person who performs services for or on behalf of the Company and who receives or should receive a Form 1099 NEC from the Company, but excluding independent service providers such as lawyers, accountants, investment bankers, and other similar providers of professional services.
“Contracts” means all contracts, agreements, leases, subleases, deeds, instruments, mortgages, deeds of trust or other security instruments, notes, licenses, commitments, obligations,
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guarantees, indemnities and understandings, in any case whether written or oral, to which the Company is party or by which any of its assets are bound.
“Disclosure Schedules” means the disclosure schedules being delivered to Buyer contemporaneously with the execution of this Agreement. Notwithstanding anything to the contrary contained in the Disclosure Schedules or in this Agreement, (a) the disclosures contained in any section of the Disclosure Schedules shall be deemed to be disclosed and incorporated by reference in any other section of the Disclosure Schedules as though fully set forth in such other section for which the applicability of such disclosure is reasonably apparent on the face of such disclosure, (b) the disclosure of any matter in the Disclosure Schedules shall not be construed as indicating that such matter is necessarily required to be disclosed in order for any representation or warranty to be true and correct, (c) the Disclosure Schedules are qualified in their entirety by reference to this Agreement and are not intended to constitute, and shall not be construed as constituting, representations and warranties by any party except to the extent expressly set forth herein or therein, (d) the inclusion of any item in the Disclosure Schedules shall be deemed neither an admission that such item is material to the business, financial condition or results of operations of the Company nor an admission of any liability to any third party, (e) matters reflected in the Disclosure Schedules are not necessarily limited to matters required by this Agreement to be reflected therein and any additional matters are set forth therein for informational purposes, and (f) headings are inserted in the Disclosure Schedules for convenience of reference only and shall not have the effect of amending or changing the express description of the sections as set forth in this Agreement.
“Employee Benefit Plan” means any of the following (whether written or unwritten, formal or informal and whether or not subject to ERISA) which the Company or any predecessor that operated the business of the Company has at any time sponsored, maintained, made contributions to (or is or has been required to make contributions to), or with respect to which such entity has, has had or may have any other Liability (actual, contingent or otherwise): (a) any “employee welfare benefit plan” (as defined in Section 3(1) of ERISA, whether or not subject to ERISA), including any medical plan, life insurance plan, short-term or long-term disability plan, dental plan, vision plan, severance plan, or sick leave plan; (b) any “employee pension benefit plan” (as defined in Section 3(2) of ERISA), including any excess benefit, top hat or deferred compensation plan or any nonqualified deferred compensation or retirement plan or arrangement or any qualified defined contribution or defined benefit plan; or (c) any other plan, policy, program, arrangement or agreement which provides compensation, employee benefits or benefits to any current or former employee, dependent, beneficiary, director, manager, independent contractor or like person, including any Nonqualified Deferred Compensation Plan, severance agreement or plan, personnel policy, vacation time, holiday pay, tuition reimbursement program, service award, moving expense reimbursement programs, tool allowance, safety equipment allowance, material fringe benefit plan or program, bonus or incentive plan, equity appreciation, stock option, restricted stock, stock bonus, deferred bonus, transaction bonus, retention or similar compensation plan, salary reduction, change-of-control or employment agreement or consulting agreement and any amendments or modifications thereof, in each case, including any trust agreements and insurance contracts forming a part thereof.
“Environmental and Safety Requirements” means any Law that is related to (a) pollution, contamination, cleanup, preservation, protection, reclamation or remediation of the environment,
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(b) health or safety, (c) the Release or threatened Release of any Hazardous Material, including investigation, study, assessment, testing, monitoring, containment, removal, remediation, response, cleanup, abatement, prevention, control or regulation of such Release or threatened Release or (d) the management of any Hazardous Material, including the manufacture, generation, formulation, processing, labeling, use, treatment, handling, storage, disposal, transportation, distribution, re-use, recycling or reclamation of any Hazardous Material, and including the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9601 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 5101 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Clean Water Act (33 U.S.C. § 1251 et seq.), the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.), the Toxic Substance Control Act (15 U.S.C. § 2601 et seq.) and the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. § 136 et seq.), and their state corollaries.
“Equity Securities” means: (a) if a Person is a corporation, shares of capital stock of such corporation and, if a Person is a form of entity other than a corporation, ownership interests in such form of entity, whether membership interests, partnership interests or otherwise, in any case including classes or series thereof having such relative rights, powers and duties as may from time to time be established; (b) obligations, evidences of indebtedness or other securities or interests convertible or exchangeable into units or other equity interests in any Person and (c) warrants, options or other rights to purchase or otherwise acquire units or other equity interests in any Person.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations in effect thereunder.
“ERISA Affiliate” means each member of the Company, any Seller Party and any predecessor of the Company or any Seller Party, and any other Person who constitutes or has constituted all or part of a controlled group or had been or is under common control with, or whose employees were or are treated as employed by the Company or any Seller Party and/or any predecessor of the Company or any Seller Party, in each case under Section 414 of the Code.
“FPP Backlog List” means all parts and components that have been requested by the Company from Buyer but have not been provided by Buyer to the Company.
“Fundamental Representations” means, (a) in the case of the Seller and the Company, the representations and warranties contained in Sections 3.1 (Organization; Good Standing; Authorization), 3.2 (Title to the Company Equity Securities), 3.5 (No Brokers or Finders), 4.1 (Organization; Good Standing; Authorization), 4.2 (Capitalization), 4.5 (Brokers or Finders), 4.6(c) (Indebtedness and Cash), 4.9 (Assets), 4.16 (Taxes), 4.18 (Employee Benefit Plans) solely to the extent related to Taxes, 4.20 (Transactions with Related Parties), 4.26 (Absence of Questionable Payments), and, (b) in the case of Buyer, the representations and warranties contained in Sections 5.1 (Buyer Organization), 5.2 (Authorization), and 5.6 (▇▇▇▇▇▇▇ and Finders).
“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or
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in such other statements by such other entity as may be approved by a significant segment of the accounting profession that are applicable to the circumstances from time to time.
“Governmental Authority” means any court, tribunal, arbitrator, authority, agency, commission, official, body or other instrumentality of the United States, any foreign country, or any domestic or foreign state, province, county, city, other political subdivision or any other similar body or organization exercising governmental or quasi-governmental power or authority.
“Hazardous Material” means: (a) any hazardous substance, as defined by the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq., as amended from time to time, and regulations promulgated thereunder and all applicable state and local laws, rules, and regulations related to hazardous substances now existing or hereinafter enacted; (b) any hazardous waste, as defined by the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., or state corollaries, as amended from time to time, and regulations promulgated thereunder; (c) petroleum, including crude oil or any fraction thereof; (d) radioactive material, including any source, special nuclear, or byproduct material as defined in 42 U.S.C. § 2011 et seq.; (e) asbestos or asbestos containing materials; (f) polychlorinated biphenyls; (g) urea formaldehyde; (h) microbial matter, biological toxins, mycotoxins, mold or mold spores; (i) lead-based paint; (j) any toxic substance; (k) radon gas; (l) any explosive or extremely dangerous material; (m) any per- and polyfluoroalkyl substances (including perfluorononanoic acid, perfluorooctanoic acid and perfluorooctanesulfonic acid); and (n) other “hazardous substance,” “hazardous material,” “hazardous waste,” “toxic substance,” “toxic pollutant,” “contaminant,” or “pollutant” within the meaning of, regulated pursuant to or which requires or may require investigation, under any applicable Environmental and Safety Requirements.
“Income Tax” means: (a) all Taxes based upon, measured by, or calculated with respect to (i) net income or profits (including any gross receipts, capital gains or minimum Tax but not including any sales, use, real or personal property, transfer or similar Taxes) or (ii) multiple bases (including corporate franchise or doing business) if one or more Taxes upon which such Tax may be based, measured by or calculated with respect to, is described in clause (a)(i) above, (b) all U.S. federal, state, territorial, local, municipal and non-U.S. franchise Taxes imposed in lieu of Taxes described in clause (a), and (c) any nonresident withholding of Income Taxes required to be made by the Company.
“Indebtedness” means, with respect to the Company as of the Closing, without duplication, all (a) indebtedness for borrowed money; (b) obligations for the deferred purchase price of property or services, (c) long or short-term obligations evidenced by notes, bonds, debentures or other similar instruments; (d) obligations under any interest rate, currency swap or other hedging agreement or arrangement; (e) capital lease obligations; (f) reimbursement obligations under any letter of credit, banker's acceptance or similar credit transactions; (g) guarantees made by the Company on behalf of any third party in respect of obligations of the kind referred to in the foregoing clauses (a) through (f); (h) any unpaid interest, prepayment penalties, premiums, costs and fees that would arise or become due as a result of the prepayment of any of the obligations referred to in the foregoing clauses (a) through (g), and (i) other items of Indebtedness in the amounts set forth opposite each such item on Schedule 1.1(b); provided, however, that
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“Indebtedness” shall not include any obligations of the Company in connection with any lease or installment purchase contracts entered into by the Company for the Company Vehicles.
“Intellectual Property” means, collectively, in the United States and all countries or jurisdictions foreign thereto, (a) all inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and all Patents, (b) all Trademarks, all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith, (c) all moral rights and copyrights in any work of authorship (including catalogues and related copy, databases, Software, and mask works) and all applications, registrations, and renewals in connection therewith, (d) all trade secrets and confidential business information (including confidential ideas, research and development, know-how, methods, formulas, compositions, manufacturing and production processes and techniques, technical and other data, collections, designs, drawings, specifications, customer and supplier lists, advertiser and subscriber lists and information, pricing and cost information, and business and marketing plans and proposals), (e) all websites and social media accounts (including login credentials), and Software, (f) all other proprietary and intellectual property rights, (g) all copies and tangible embodiments of any of the foregoing (in whatever form or medium), (h) the exclusive right to display, reproduce, and create derivative works based on any of the foregoing, and (i) all income, royalties, damages and payments related to any of the foregoing (including damages and payments for past, present or future infringements, misappropriations or other conflicts with any intellectual property), and the right to sue and recover for past, present or future infringements, misappropriations or other conflict with any intellectual property.
“Inventory” means all of the goods, merchandise, raw materials, finished goods, and work-in-progress, in each case physically located at, or otherwise in the possession or under the dominion and control of, the Company as of the Closing and held or intended to be held for sale or use in the ordinary course of the Company’s business. For the avoidance of doubt, “Inventory” is limited to physical inventory under the Company’s control at Closing and expressly excludes (a) any items listed on the FPP Backlog List, and (b) any intangible or non-physical assets. Notwithstanding the foregoing, the value of any used part shall not exceed thirty-five percent (35%) of the distributor net price in respect of such used part; provided, that re-manufactured parts shall be valued as new (not used) at one hundred percent (100%) of distributor net price.
“Knowledge” means, when referring to the “knowledge” of the Company, any Seller Party, or any similar phrase or qualification based on knowledge of the Company, (i) the actual knowledge of either Indirect Equityholder or (ii) the knowledge that either Indirect Equityholder would be expected to have obtained after the exercise of reasonable diligence and due inquiry.
“Law” means the common law of any state or other jurisdiction, or any provision of any foreign, federal, state or local law, statute, ordinance, code, rule, regulation, order, constitution, certification standard, accreditation standard, Permit, judgment, injunction, decree or other decision of any court or other tribunal or Governmental Authority.
“Liability” means any indebtedness, Taxes, liabilities or obligations of any nature whatsoever, whether accrued or unaccrued, absolute or contingent, direct or indirect, asserted or unasserted, fixed or unfixed, known or unknown, ▇▇▇▇▇▇ or inchoate, perfected or unperfected, liquidated or unliquidated, secured or unsecured, or otherwise, and whether due or to become due.
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“Liens” means all liens, security interests, claims, mortgages, pledges, assessments, covenants, burdens and other encumbrances of every kind.
“Open Source Software” means any Software that contains or is derived in any manner (in whole or in part) from any Software, code or libraries that are distributed as open source software or under any licensing or distribution models similar to open source, including any Software licensed under or subject to terms that require source code to be provided or made available to subsequent licensees or sublicensees (regardless of whether the license restricts source code from being distributed in modified form) or which may impose any other obligation or restriction with respect to a Person’s Intellectual Property, including any Software licensed under or subject to the Artistic License, the Mozilla Public License, the GNU Affero GPL, the GNU GPL, the GNU LGPL, any other license that is defined as an Open Source License by the Open Source Initiative (▇▇▇.▇▇▇▇▇▇▇▇▇▇.▇▇▇), and any similar license or distribution model.
“Order” means any order, judgment, ruling, injunction, award, decree or writ of any Governmental Authority.
“Ordinary Course of Business” means the ordinary and usual course of day-to-day operations of the business of the Company through the date hereof consistent with the nature, scope and magnitude of the past custom and practice (including with respect to quantity and frequency) of the Company.
“Parent” means Capstone Green Energy Holdings, Inc., a Delaware corporation.
“Party” means any party to this Agreement.
“Patents” means all letters patent and pending applications for patents of the United States and all countries and jurisdictions foreign thereto and all reissues, reexaminations, divisions, continuations, continuations-in-part, revisions and extensions thereof.
“Payroll Tax Executive Order” means the Presidential Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster, as issued on August 8, 2020, and including any administrative or other guidance published with respect thereto by any Governmental Authority (including IRS Notices 2020-65 and 2021-11).
“Permits” means permits, licenses, registrations, qualifications, certifications, approvals and authorizations by or of Governmental Authorities or any other Person who has licensed, qualified or certified any of the products or services of the Company.
“Permitted Lien” means (a) Liens for Taxes that are not yet due and payable or for Taxes which are being contested in good faith by appropriate Proceedings, in each case for which adequate reserves have been made with respect thereto in accordance with GAAP, (b) statutory Liens of landlords and workers’, carriers’, materialmen’s, suppliers’ and mechanics’ Liens incurred in the Ordinary Course of Business securing amounts that are not past due, (c) Liens arising under worker’s compensation, unemployment insurance, social security, retirement and similar Laws, and (d) ▇▇▇▇▇ created by or through Buyer upon or after the Closing.
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“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated association, corporation or other entity or any Governmental Authority.
“Pre-Closing Tax Accrual” means, with respect to any jurisdiction, an amount (which amount shall not be less than zero) equal to the Liability for Taxes of the Company unpaid as of the Closing Date with respect to Pre-Closing Tax Periods and Straddle Periods, and determined as of the end of the day on the Closing Date; provided, that for purposes of computing the Pre-Closing Tax Accrual, (a) in the case of any Straddle Period, Liability for Taxes shall be apportioned to the pre-Closing portion of such Straddle Period in accordance with Section 8.2(a), (b) Tax assets shall be excluded (except as provided in clause (d) herein), (c) any Liabilities for accruals or reserves established or required to be established under GAAP methodologies that require the accrual for contingent Taxes or with respect to uncertain Tax positions shall be included, (d) any overpayments of Income Taxes (and any payments of estimated Income Taxes) for any taxable period shall be taken into account, but only to the extent they have the effect of reducing (but not below zero in the applicable jurisdiction or for the applicable taxpaying entity) the particular current Liabilities in respect of Income Taxes in respect of which such overpayments or estimated payments, as applicable, were made, (e) any deferred Liabilities in respect of Income Taxes under Section 965 of the Code (or any corresponding or similar provision of applicable Law) shall be included, (f) Taxes for any taxable period resulting from deferred revenue, prepaid amounts or under Section 481 of the Code (or any corresponding or similar provision of applicable Law) as a result of a change in, or use of an improper, accounting method for Tax purposes shall be included, (g) any Taxes attributable to cash basis receivables (net of any related payables) of the Company that have not yet been taken into income as of the Closing (excluding any such receivables that are accelerated into income of Seller in connection with the Closing) shall be included, and (h) all Taxes arising (or that would arise) from the settlement, repayment, retirement, cancellation or elimination of any intercompany balance or excess loss account relating to the Company existing on or prior to the Closing Date, in each case as described in Treasury Regulations under Section 1502 of the Code (or any similar provision of any Law) shall be included.
“Pre-Closing Tax Period” means any taxable period that ends on or before the Closing Date and, with respect to any Straddle Period, the portion of such Straddle Period ending on and including the Closing Date.
“Proceeding” means any action, suit, proceeding, known or unknown investigation, inquiry, arbitration, mediation, claim or audit.
“Related Party” means (a) each Seller Party, (b) each officer, director, manager or other fiduciary of the Company or any Seller Party, (c) each parent, spouse, child or sibling of a Seller Party, (d) each trust for the benefit of any of the foregoing and (e) each Affiliate of any of the foregoing (other than the Company members).
“Related Party Transaction” means any Contract, arrangement or transaction between the Company, on the one hand, and any Related Party (other than another member of the Company), on the other hand.
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“Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, migrating, or disposing into the indoor or outdoor environment, including the abandonment or discarding of barrels, containers, and other closed receptacles containing any Hazardous Material.
“Seller Taxes” means, without duplication, (a) any and all Taxes imposed on any Seller Party for any taxable period, (b) any and all Taxes of or imposed on the Company for any and all Pre-Closing Tax Periods and any and all portions of Straddle Periods ending on the Closing Date (determined in accordance with Section 8.2(a)(ii)), (c) any and all Taxes imposed solely and directly in connection with the transactions contemplated by this Agreement (including any Transfer Taxes), (d) Taxes for which the Company becomes liable by reason of (A) being a member of an affiliated, combined, consolidated, unitary or aggregate group at any time prior to the Closing, including pursuant to Treasury Regulation Section 1.1502-6 or any analogous or similar provision under any state, local or foreign Law, (B) being a successor-in interest or transferee of any other Person, by any Law or otherwise, which Taxes relate to an event or transaction occurring prior to Closing, or (C) having an obligation to indemnify any other Person under any Tax Sharing Agreement that was executed or in effect at any time prior to Closing and (e) any and all Taxes for which any Seller Party is liable pursuant to Section 8.2(a). For the avoidance of doubt, “Seller Taxes” shall include any Tax liability of Buyer or the Company resulting from an adjustment pursuant to Section 481 of the Code as a result of a change in method of accounting in a Pre-Closing Tax Period.
“Seller Transaction Expenses” means, as of the Closing, (a) all of the fees, costs and expenses incurred by any Seller Party or the Company in connection with the transactions contemplated by this Agreement, including all fees, costs and expenses payable to attorneys, financial advisors, accountants insurance or benefits brokers or any other professional advisors and all obligations under any engagement letter or other agreement with any investment banker or broker (but excluding any amounts paid by the Company to its accountants in connection with the Audit described in Section 8.5, which shall not be Seller Transaction Expenses), (b) all payments by any Seller Party or the Company to obtain any third party consent required under any Contract in connection with the consummation of the transactions contemplated by this Agreement, (c) all obligations that (i) become payable prior to the Closing or (ii) arise in whole or in part as a result of the consummation of the transactions contemplated by this Agreement under any Contract or Employee Benefit Plan in effect on or before the Closing Date, including all commission, sales, transaction, change of control, retention, “stay,” severance, stock appreciation, phantom stock or similar obligations, bonuses or payments or any other accelerations of or increases in rights or benefits, and all Taxes that are payable in connection with or as a result of the satisfaction of such obligations, (d) any payroll or other Tax required to be withheld or paid in connection with any compensation paid in connection with or anticipation of the Closing (including, for the avoidance of doubt, the employer-paid portion of any payroll, insurance, Social Security and other similar Taxes), (e) all costs incurred to obtain the Tail Policies, (f) any Transfer Taxes, and (g) the aggregate amount of all obligations of the Company in connection with any lease or installment purchase contracts entered into by the Company for the Seller Vehicles, to the extent not paid by the Seller Parties prior to Closing.
“Seller Vehicles” means (i) the 2025 Mercedes G-Class SUV, with VIN # ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇ and (ii) the 2025 Toyota Sequioa, with VIN # ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.
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“Shareholders’ Agreement” means that certain Cal Microturbine, Inc. Shareholders’ Agreement, dated as of March 6, 2019, by and among the Indirect Equityholders and ▇▇▇▇ ▇▇▇▇▇▇.
“Software” means computer programs, including software implementation of algorithms, models and methodologies, applications, routines, interfaces, whether in source code, object code, or human readable or other form, including firmware, operating systems, specifications and database software that is accessed using computer programs, and all documentation, including user manuals and training manuals, related to any of the foregoing.
“Specified Matters” means each of the following: (i) the Arbitration and (ii) the State Court Action.
“State Court Action” means Cal Microturbine, Inc. v. Capstone Green Energy Corporation, LASC Case No. 25STCV04008 (Cal. Super. Ct. Feb. 13, 2025), which includes all claims made therein by the Company and all counter-claims made thereto by Capstone Green Energy Corporation.
“Straddle Period” means any taxable period that includes, but does not end on, the Closing Date.
“Tax” means all (a) taxes, charges, withholdings, fees, levies, imposts, duties and governmental fees or other like assessments or charges of any kind whatsoever in the nature of taxes imposed by any United States federal, state, local or foreign or other Governmental Authority (including those related to income, net income, gross income, receipts, capital, windfall profit, severance, property (real and personal), production, sales, goods and services, use, business and occupation, license, excise, registration, franchise, employment, payroll (including social security contributions), deductions at source, withholding, alternative or add-on minimum, intangibles, ad valorem, transfer, gains, stamp, customs, duties, transaction, title, capital, paid-up capital, profits, premium, value added, recording, inventory and merchandise, business privilege, federal highway use, commercial rent or environmental tax, any liability under unclaimed property, escheat, or similar Laws), (b) interest, penalties, fines, additions to tax or additional amounts imposed by any Governmental Authority, whether disputed or not disputed, in connection with (i) any item described in clause (a) or (ii) the failure to comply with any requirement imposed with respect to any Tax Return, and (c) Liability in respect of any items described in clauses (a) and/or (b) payable by reason of Contract (including any Tax Sharing Agreement), assumption, transferee, successor or similar liability, operation of law (including pursuant to Treasury Regulations Section 1.1502-6 (or any predecessor or successor thereof or any analogous or similar state, local, or foreign Law)) or otherwise.
“Tax Return” means any return, notice, declaration, report, property rendition, election, claim for refund, information return or statement or other document that is filed with or submitted to, or required to be filed with or submitted to any Governmental Authority relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.
“Tax Sharing Agreement” means any Tax indemnity agreement, Tax sharing agreement, Tax allocation agreement or similar contract or arrangement, whether written or unwritten
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(including any such agreement, contract or arrangement included in any purchase or sale agreement, merger agreement, joint venture agreement or other document).
“Trademarks” means, in the United States and all countries and jurisdictions foreign thereto, registered trademarks, registered service marks, trademark and service mark applications, unregistered trademarks and service marks, registered trade names and unregistered trade names, corporate names, fictitious names, trade dress, logos, slogans, Internet domain names, rights in telephone numbers, and other indicia of origin, together with all translations, adaptations, derivations, combinations and renewals thereof.
“Transaction Document” means this Agreement, and any agreement, document, certificate or instrument attached hereto or delivered pursuant to or in connection with this Agreement.
“Treasury Regulations” means the Treasury Regulations promulgated under the Code.
“U.S.” or “United States” means the United States of America.
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As a material inducement to Buyer to enter into this Agreement and consummate the transactions contemplated hereby, the Seller Parties jointly and severally represent and warrant to Buyer as of the date hereof as follows:
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insolvency, reorganization, moratorium and other similar Laws affecting the rights of creditors generally, and the availability of equitable remedies.
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As a material inducement to Buyer to enter into this Agreement and consummate the transactions contemplated hereby, the Seller Parties jointly and severally represent and warrant to Buyer as of the date hereof as follows:
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federal or state securities Laws in connection with the offer, sale or issuance of any of its Equity Securities, or other securities directly or indirectly convertible into or exchangeable for its Equity Securities, or any options, warrants or rights to directly or indirectly subscribe for or purchase its Equity Securities or any securities directly or indirectly convertible into or exchangeable for its Equity Securities. No Equity Securities, or any securities directly or indirectly convertible into or exchangeable for Equity Securities, or any options, warrants or rights to directly or indirectly subscribe for or purchase Equity Securities, or any securities directly or indirectly convertible into or exchangeable for its Equity Securities, of the Company are subject to, or have been issued in violation of, preemptive or similar rights.
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by Buyer or its Affiliates, the Company does not have any Liability for replacement thereof or other material damages in connection therewith in excess of any warranty reserve established with respect thereto on the Balance Sheet as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice of the Company. Except as set forth on Schedule 4.25(a), no products manufactured, sold or delivered by the Company are subject to any guaranty, warranty or other indemnity beyond the applicable standard terms and conditions of sale with respect thereto which, in each case, have been made available to Buyer. Except as set forth on Schedule 4.25(b), the Company has not received any written notice of any claims for, and to the Company’s Knowledge (except with respect to products manufactured by Buyer or its Affiliates, as to which Seller Parties make no representation or warranty) there is no reasonable basis for, any extraordinary product recalls, returns, warranty obligations or service calls relating to any of its products or services. Except with respect to products manufactured by Buyer or its Affiliates, the Company has not had, and currently does not have, any material Liability arising out of any injury to individuals or property as a result of the ownership, possession or use of any products manufactured, sold or delivered by the Company or with respect to any services rendered by the Company.
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As a material inducement to the Seller Parties to enter into this Agreement and consummate the transactions contemplated hereby, Buyer hereby represents and warrants to Seller as of the date hereof as follows:
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delivered in accordance herewith prior to the expiration of the applicable period set forth above, the indemnification obligations shall continue with respect to such claim until the final resolution and satisfaction of such claim in accordance with the provisions of this Article 6.
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All documents and instruments delivered to Buyer shall be in form and substance reasonably satisfactory to Buyer.
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All documents and instruments delivered to Seller shall be in form and substance reasonably satisfactory to Seller.
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agreed that the facts in respect of which this release is given may turn out to be other than or different from the facts in that respect now known or believed by such Seller Releasor to be true; and with such understanding and agreement, each Seller Releasor expressly accepts and assumes the risk of facts being other than or different from the assumptions and perceptions as of any date prior to and including the Closing Date, and agrees that this release shall be in all respects effective and shall not be subject to termination or recession by reason of any such difference in facts. Notwithstanding anything to the contrary herein, this Section 8.4 shall not be construed as a release of any claims, causes of action, obligations, demands, contracts, agreements, debts, damages, liabilities, costs and expenses, related to the Specified Matters, the [**redated**] Matter, or arising directly out of this Agreement and/or any other Transaction Documents, including without limitation the indemnity obligations in Article 6.
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the extent provision of such records and information would not result in a waiver of the attorney-client privilege.
If to Seller:The RBKB Trust
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: [Intentionally redacted as personal information]
[Intentionally redacted as personal information]
with a copy to: | ▇▇▇▇ & ▇▇▇▇ LLP |
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E-Mail: ▇▇▇▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇.▇▇▇
Attn: ▇▇▇ ▇▇▇▇▇▇▇▇▇
If to Buyer: | Capstone Green Energy LLC |
E-Mail: [Intentionally redacted as personal information]
with a copy to:▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ LLP
▇▇▇ ▇. ▇▇▇▇▇▇ ▇▇▇▇▇▇
Chicago, IL 60661-3693
Attn: ▇▇▇▇ ▇. ▇▇▇▇ and
▇▇▇▇ ▇▇▇▇▇▇
Email: ▇▇▇▇.▇▇▇▇@▇▇▇▇▇▇.▇▇▇ and ▇▇▇▇.▇▇▇▇▇▇@▇▇▇▇▇▇.▇▇▇
Notice shall be deemed given on (a) the date such notice is personally delivered, (b) three (3) days after the mailing if sent by certified or registered mail, (c) one (1) Business Day after the date of delivery to the overnight courier if sent by overnight courier, or (d) the date such notice is transmitted by electronic mail, if such transmission is prior to 5:00 p.m. Pacific Time on a Business Day, or the next succeeding Business Day if such transmission is later.
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required by applicable Law or securities exchange; provided (for the avoidance of doubt) that, without the prior approval of any of the Seller Parties, Parent may file with the SEC a Current Report on Form 8-K (and/or any amendments thereto) describing this Agreement and the transactions contemplated hereby, may file a copy of this Agreement with the SEC as an exhibit thereto or to a subsequent periodic report, may include financial statements of the Company (and related pro forma financial information) as an exhibit thereto or to a subsequent periodic report and may issue or make any release, statement, announcement or other disclosure with respect to this Agreement or the transactions contemplated hereby that is substantially similar to those such Form 8-K or other periodic report. The initial press release regarding the transactions contemplated by this Agreement shall be a joint press release mutually agreed to in writing by ▇▇▇▇▇ and Seller.
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permitted assigns (other than the Parties themselves) (each, a “Non-Recourse Person”), and no such Non-Recourse Person shall have any liability for any obligations or liabilities of the Parties under this Agreement or for any claim, action, or proceeding based on, in respect of or by reason of the transactions contemplated hereby. Nothing in this Section 9.14 shall limit any Parties’ recourse for fraud or intentional misrepresentation.
[SIGNATURE PAGE FOLLOWS.]
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.
| BUYER: |
| |
| CAPSTONE GREEN ENERGY LLC |
| |
| |
| By: /s/ ▇▇▇▇ ▇▇▇▇▇ |
| Name: ▇▇▇▇ ▇▇▇▇▇ |
| Its: Chief Financial Officer |
| |
| |
| SELLER PARTIES: |
| |
| CAL MICRO HOLDCO, INC. |
| |
| |
| By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇ |
| Name: ▇▇▇▇▇▇ ▇▇▇▇▇ |
| Its: President |
| |
| THE RBKB TRUST, DATED DECEMBER 3, 2019 |
| |
| |
| By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇ |
| Name: ▇▇▇▇▇▇ ▇▇▇▇▇ |
| Its: Co-Trustee and Settlor |
| By: /s/ ▇▇▇▇ ▇▇▇▇▇ |
| Name: ▇▇▇▇ ▇▇▇▇▇ |
| Its: Co-Trustee and Settlor |
| /s/ ▇▇▇▇▇▇ ▇▇▇▇▇ |
| Name: ▇▇▇▇▇▇ ▇▇▇▇▇ |
| |
| /s/ ▇▇▇▇ ▇▇▇▇▇ |
| Name: ▇▇▇▇ ▇▇▇▇▇ |
[Signature Page to Equity Purchase Agreement]
EXHIBIT A
Methodology for Allocation of the Total Tax Consideration
[Omitted]
SCHEDULE 1.1(a)
Accounting Principles
[Omitted]
SCHEDULE 1.1(b)
Specific Indebtedness
[Omitted]