Exhibit J Purchase Agreement and Disclosure Schedules
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Exhibit J FILED Purchase Agreement and Disclosure Schedules 6-03-15 04:59 PM CONFIDENTIAL A1506005 Execution Version PURCHASE AND SALE AGREEMENT BY AND AMONG CEQUEL CORPORATION, ALTICE US HOLDING I S.A R.L., ALTICE US HOLDING II S.A R.L., ALTICE S.A., the Sellers parties hereto and CEQUEL III, LLC May 19, 2015 Confidential & Proprietary Subject to General Order 66-C and Public Utilities Code § 583 TABLE OF CONTENTS Page ARTICLE I DEFINITIONS ............................................................................................................4 1.1 Definitions................................................................................................................4 1.2 Cross-Reference of Other Definitions ...................................................................18 ARTICLE II PURCHASE AND SALE ........................................................................................22 2.1 The Closing ............................................................................................................22 2.2 Sale and Purchase of Purchased Shares; Repurchase of Repurchased Shares .....................................................................................................................22 2.3 Downstream Merger; Post-Closing Purchaser Reorganization .............................23 2.4 Management Agreement ........................................................................................24 2.5 Closing Deliveries ..................................................................................................24 2.6 Payments by the Company.....................................................................................27 2.7 Payments to Employees; Withholding Rights .......................................................27 2.8 Leakage ..................................................................................................................28 2.9 Allocation Exhibit ..................................................................................................29 2.10 Payment of Funded Debt .......................................................................................30 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY ...................30 3.1 Organization and Power .........................................................................................30 3.2 Capitalization .........................................................................................................31 3.3 Authority; Binding Effect ......................................................................................32 3.4 No Violations .........................................................................................................33 3.5 Financial Statements ..............................................................................................34 3.6 Absence of Liabilities ............................................................................................34 3.7 Absence of Changes ...............................................................................................34 3.8 Compliance with Laws ..........................................................................................34 3.9 Permits and Approvals; Regulatory Compliance ...................................................35 3.10 Franchise Matters; Subscribers; Programming; System ........................................36 3.11 Environmental Laws ..............................................................................................37 3.12 Company Benefit Plans and Related Matters; ERISA ...........................................38 3.13 Employees and Labor Matters ...............................................................................40 3.14 Litigation ................................................................................................................40 3.15 Real Property .........................................................................................................41 3.16 Tangible Personal Property ....................................................................................42 3.17 Tax Matters ............................................................................................................42 3.18 Material Contracts ..................................................................................................44 3.19 Intellectual Property ...............................................................................................46 3.20 Insurance ................................................................................................................47 3.21 Related Party Transactions ....................................................................................48 i Confidential & Proprietary Subject to General Order 66-C and Public Utilities Code § 583 NY\7064628.16 Table of Contents (Continued) Page 3.22 Indebtedness ...........................................................................................................48 3.23 Solvency .................................................................................................................48 3.24 Brokers ...................................................................................................................48 3.25 Anti-Corruption Compliance .................................................................................48 3.26 [Redacted] ..............................................................................................................49 3.27 Full Disclosure .......................................................................................................49 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE SELLERS ......................50 4.1 Authority; Binding Effect ......................................................................................50 4.2 No Violation...........................................................................................................50 4.3 Title ........................................................................................................................51 4.4 Litigation ................................................................................................................51 4.5 Brokers ...................................................................................................................51 ARTICLE V REPRESENTATIONS AND WARRANTIES OF PURCHASER PARTIES ........51 5.1 Authority; Binding Effect ......................................................................................51 5.2 No Violation...........................................................................................................52 5.3 Litigation ................................................................................................................52 5.4 Financing................................................................................................................52 5.5 Solvency .................................................................................................................53 5.6 Acknowledgement .................................................................................................54 5.7 Brokers ...................................................................................................................55 5.8 No Other Assets or Liabilities ................................................................................55 ARTICLE VI COVENANTS OF THE COMPANY ....................................................................55 6.1 Conduct of the Business.........................................................................................55 6.2 Company Obligations in Respect of the Debt Financing .......................................59 ARTICLE VII CERTAIN COVENANTS AND AGREEMENTS OF THE PARTIES ...............60 7.1 Access to Books and Records ................................................................................60 7.2 Contact with Business Relations ............................................................................62 7.3 Affiliate Contract Terminations .............................................................................62 7.4 No Shop/Exclusivity ..............................................................................................62 7.5 Efforts; Filings .......................................................................................................63 7.6 Certain Obligations in Respect of the Financings..................................................67 7.7 Non-Solicit; Non-Hire ...........................................................................................69 7.8 Non-Competition ...................................................................................................69 7.9 Director and Officer Liability and Indemnification ...............................................69 7.10 Carry Partnership Amendments .............................................................................71 7.11 Further Assurances.................................................................................................71 7.12 Disclosure Schedule Updating ...............................................................................71 ii Confidential & Proprietary Subject to General Order 66-C and Public Utilities Code § 583 NY\7064628.16 Table of Contents (Continued) Page 7.13 Confidentiality .......................................................................................................72 7.14 Section 280G Matters ............................................................................................73