Document:

EX-4.2

 Exhibit 4.2 

Execution Version 
  

 
  

SECOND SUPPLEMENTAL INDENTURE 

between 
 OCEANEERING
INTERNATIONAL, INC. 
 as Issuer 

and 
 WELLS FARGO BANK,
NATIONAL ASSOCIATION, 
 as Trustee 
  

 
 6.000% Senior
Notes due 2028 
  
  

February 6, 2018 
  

 
  

 OCEANEERING INTERNATIONAL, INC. 

SECOND SUPPLEMENTAL INDENTURE 

THIS SECOND SUPPLEMENTAL INDENTURE, dated as of February 6, 2018 (the “Second Supplemental Indenture”), between Oceaneering
International, Inc., a corporation incorporated under the laws of the State of Delaware (the “Company”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”). 

W I T N E S S E T H : 

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture (the “Base Indenture”), dated as of
November 21, 2014 (as supplemented by this Second Supplemental Indenture, the “Indenture”) providing for the issuance from time to time of one or more series of the Company’s Securities; 

WHEREAS, Sections 2.01 and 9.01(9) of the Base Indenture provide that the Company and the Trustee may from time to time enter into one or more
indentures supplemental thereto to establish the form or terms of Securities of a new series; 
 WHEREAS, Section 9.01(6) of the Base
Indenture permits the execution of supplemental indentures without the consent of any Holders to add to the covenants of the Company for the benefit of the Holders of all or any series of Securities; 

WHEREAS, the Company desires to issue 6.000% Senior Notes due 2028, a new series of Securities, the issuance of which was authorized by or
pursuant to resolution of the Board of Directors of the Company; 
 WHEREAS, the Company, pursuant to the foregoing authority, proposes in
and by this Second Supplemental Indenture to supplement and amend the Base Indenture insofar as it shall apply only to the Senior Notes (as defined herein) in certain respects; and 

WHEREAS, all things necessary have been done to make the Senior Notes, when executed by the Company and authenticated and delivered hereunder
and duly issued by the Company, the valid obligations of the Company, and to make this Second Supplemental Indenture a valid agreement of the Company, in accordance with their and its terms. 

NOW THEREFORE: 
 In
consideration of the premises provided for herein, the Company and the Trustee mutually covenant and agree for the equal and proportionate benefit of all Holders of the Senior Notes as follows: 

  

 ARTICLE ONE 

THE SENIOR NOTES 
 SECTION
101 Designation of Senior Notes; Establishment of Form. There shall be a series of Securities designated “6.000% Senior Notes due 2028” of the Company (the “Senior Notes”), the form of which shall be substantially as set
forth in Annex A hereto, which is incorporated into and shall be deemed a part of this Second Supplemental Indenture, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the
Indenture, and which may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or as may, consistently herewith, be
determined by the officers of the Company executing such Senior Notes, as evidenced by their execution of the Senior Notes. 
 All of the
Senior Notes shall initially be issued in permanent global form, substantially in the form set forth in Annex A hereto (collectively, the “Global Securities”), as book-entry Securities. Each Global Security shall represent such amount of
the outstanding Senior Notes as shall be specified therein and shall provide that such Global Security shall represent the aggregate amount of outstanding Senior Notes from time to time endorsed thereon and that the aggregate amount of outstanding
Senior Notes represented thereby may from time to time be reduced to reflect exchanges and redemptions. 
 The Company initially appoints
The Depository Trust Company to act as Depositary with respect to the Global Security. 
 SECTION 102 Amount. The Senior Notes may be
issued in unlimited aggregate principal amount. The Trustee shall authenticate and deliver Senior Notes for original issue in an initial aggregate principal amount of up to $300,000,000 of Senior Notes upon Company Order without any further action
by the Company. 
 SECTION 103 Interest. The Senior Notes shall bear interest at the rate set forth under the caption
“Interest” in the Senior Notes, commencing on the Issue Date of the Senior Notes. Interest on the Senior Notes shall be payable to the Persons in whose name the Senior Notes are registered at the close of business on the Regular Record
Date for such interest payment. The date from which interest shall accrue for each Senior Note shall be set forth in such Senior Note. The Interest Payment Dates on which interest on the Senior Notes shall be payable are February 1 and
August 1 of each year, commencing on August 1, 2018. The Regular Record Dates for the interest payable on the Senior Notes on any Interest Payment Date shall be January 15 or July 15, as the case may be, immediately preceding
such Interest Payment Date (each a “Regular Record Date”). 
 SECTION 104 Denominations. The Senior Notes shall be issued
in minimum denominations of $2,000 or any integral multiple of $1,000 in excess thereof. 
 SECTION 105 Optional Redemption. The
Company, at its option, may redeem the Senior Notes in accordance with the provisions of and at the Redemption Prices set forth under the caption “Optional Redemption” in the Senior Notes and in accordance with the provisions of the
Indenture. 
 SECTION 106 Sinking Fund. There shall be no sinking fund for the retirement of the Senior Notes. 

  
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 SECTION 107 Place of Payment. The Place of Payment for the Senior Notes and the place or
places where the principal of and interest on the Senior Notes shall be payable, the Senior Notes may be surrendered for registration of transfer, the Senior Notes may be surrendered for exchange or redemption and where notices may be given to the
Company in respect of the Senior Notes is at the office or agency of the Trustee in New York, New York, or Dallas, Texas; provided that payment of interest may be made at the option of the Company by check mailed to the address of the Person
entitled thereto as such address shall appear in the register of the Securities or by wire transfer of immediately available funds to the accounts in the United States specified by the Holder of such Senior Notes. 

SECTION 108 Payment on Business Day. If any Interest Payment Date, Redemption Date or Maturity date of the Senior Notes is not a
Business Day at any Place of Payment, then payment of the principal, premium, if any, and interest may be made on the next Business Day at that Place of Payment. No interest shall accrue on the amount payable for the period from and after the
applicable Interest Payment Date, Redemption Date or Maturity date, as the case may be. 
 SECTION 109 Maturity. The date on which
the principal of the Senior Notes is payable, unless accelerated pursuant to the Indenture, shall be February 1, 2028. 
 SECTION 110
Paying Agent and Registrar. The Company initially appoints the Trustee to act as Paying Agent and Registrar with respect to the Senior Notes. 

SECTION 111 Other Terms of the Senior Notes. Without limiting the foregoing provisions of this Article One, the terms of the Senior
Notes shall be as set forth in the form of Senior Notes set forth in Annex A hereto as provided in the Indenture. 
 ARTICLE TWO 

AMENDMENTS TO THE INDENTURE 

The amendments contained herein shall apply to the Senior Notes only and not to any other series of Security issued under the Indenture, and
any covenants provided herein are expressly being included solely for the benefit of the Senior Notes. These amendments shall be effective for so long as there remain any Senior Notes outstanding. 

SECTION 201 Definitions. Section 1.01 of the Base Indenture is amended by inserting or restating, as the case may be, in their
appropriate alphabetical position, the following definitions: 
 “Attributable Debt” in respect of a Sale and Leaseback
Transaction means, at the time of determination, the lesser of: 
 (i) the present value of the obligation of the lessee for net rental
payments during the remaining term of the lease included in such Sale and Leaseback Transaction, including any period for which such lease has been extended or may, at the option of the lessor, be extended. Such present value shall be calculated
using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with generally accepted accounting principles or, if not practicable to determine such rate, the weighted average interest rate per annum
borne by the Senior Notes compounded semiannually; and 

  
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 (ii) if the obligation with respect to the Sale and Leaseback Transaction constitutes an
obligation that is required to be accounted for as a capital lease obligation in accordance with generally accepted accounting principles, the amount equal to the capitalized amount of such obligation determined in accordance with U.S. generally
accepted accounting principles and included in the financial statements of the lessee. 
 “Below Investment Grade Rating Event”
means the Senior Notes are rated below Investment Grade by both Rating Agencies on any date from the date of the first public notice of an arrangement that could result in a Change of Control until the end of the
60-day period following public notice of the occurrence of a Change of Control (which period shall be extended so long as the rating of the Senior Notes is under publicly announced consideration for possible
downgrade by either of the Rating Agencies); provided that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control
(and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Repurchase Event hereunder) if any of the Rating Agencies making the reduction in rating to which this definition would otherwise
apply does not announce or publicly confirm or inform the Trustee in writing at its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable
Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating Event). 

“Change of Control” means the occurrence of any of the following: 

(i) the consummation of the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation),
in one or a series of related transactions, of all or substantially all of the Company’s properties or assets and those of the Company’s Subsidiaries, taken as a whole, to any “person” (as that term is used in
Section 13(d)(3) of the Exchange Act), other than the Company or one or more of the Company’s wholly owned Subsidiaries; 
 (ii)
the adoption of a plan relating to the Company’s liquidation, winding-up or dissolution of the Company; or 

(iii) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any
“person” (as that term is used in Section 13(d)(3) of the Exchange Act) becomes the beneficial owner, directly or indirectly, of more than 50% of the Company’s Voting Stock, measured by voting power rather than number of shares.

  
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 Notwithstanding the foregoing, a transaction effected to create a holding company for the Company
shall not be deemed to involve a Change of Control if (i) pursuant to such transaction the Company becomes a wholly owned Subsidiary of such holding company and (ii) the Holders of the Voting Stock of such holding company immediately
following consummation of such transaction are the same as the Holders of the Company’s Voting Stock immediately prior to consummation of such transaction. 

“Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event.

 “Consolidated Net Tangible Assets” means, as of any date of determination, the total amount of assets after deducting
therefrom: 
 (i) all current liabilities, excluding any thereof which are by their terms extendible or renewable at the option of the
obligor thereon to a time more than 12 months after the time as of which the amount thereof is being computed; and 
 (ii) unamortized debt
discount and expense, goodwill, trademarks, brand names, patents and other intangible assets, all as shown on the latest consolidated balance sheet of the Company and its Subsidiaries at the time of the determination and computed in accordance with
U.S. generally accepted accounting principles. 
 “Investment Grade” means a rating of Baa3 or better by Moody’s (or its
equivalent under any successor rating categories of Moody’s) and BBB- or better by S&P (or its equivalent under any successor rating categories of S&P) (or, in each case, if such Rating Agency
ceases to rate the Senior Notes or fails to make a rating of the Senior Notes publicly available for reasons outside of the Company’s control, the equivalent investment grade credit rating from any Rating Agency selected by the Company as a
replacement Rating Agency). 
 “Lien” means and includes any lien, pledge, mortgage, security interest, conditional sale or other
title retention agreement or other similar encumbrance. 
 “Moody’s” means Moody’s Investors Services, Inc. and any
successor to its rating agency business. 
 “Permitted Liens” means: 

 

	 	(1)	any statutory or governmental Lien or a Lien arising by operation of law, or any mechanics’, repairman’s, materialman’s, supplier’s, carrier’s, landlord’s, warehouseman’s, maritime or
similar Lien incurred in the ordinary course of business which is not yet due or is being contested in good faith by appropriate proceedings and any undetermined Lien that is incidental to construction, development, improvement or repair;

  

	 	(2)	banker’s Liens, rights of set-off or similar rights and remedies as to deposit accounts or other funds maintained with a creditor depository institution and arising in the
ordinary course of business; 

  
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	 	(3)	Liens securing forward contracts, futures contracts, swap agreements or other commodities contracts in the ordinary course of business and in accordance with established risk management policies; 

 

	 	(4)	the right reserved to, or vested in, any municipality or public authority by the terms of any right, power, franchise, license or permit or by any provision of law to purchase or to recapture, or to designate a
purchaser of, any property; 

  

	 	(5)	Liens for taxes and assessments that are not at the time delinquent or are delinquent but the validity of which are being contested at the time by the Company or any of its Subsidiaries in good faith; 

 

	 	(6)	Liens on, or to secure the performance of, leases and charters arising in the ordinary course of business; 

  

	 	(7)	Liens upon, or deposits of, any assets in favor of any surety company or clerk of court for the purpose of obtaining indemnity or stay of judicial proceedings; 

 

	 	(8)	Liens upon property or assets acquired or sold by the Company or any of its Subsidiaries resulting from the exercise of any rights arising out of defaults on receivables; 

 

	 	(9)	Liens incurred in the ordinary course of business in connection with workers’ compensation, unemployment insurance, temporary disability, social security, retiree health or similar laws or regulations or to secure
obligations imposed by statute or governmental regulations; 

  

	 	(10)	Liens on cash and cash equivalents deposited with an escrow agent, trustee or similar Person to defease or to satisfy and discharge in full any indebtedness; 

 

	 	(11)	Liens upon or deposits of any assets to secure performance and Liens in favor of issuers of surety or performance bonds, letters of credit, bankers’ acceptances or guarantees pursuant to the request of and for the
account of the Company or any of its Subsidiaries; and 

  

	 	(12)	Liens arising or imposed by reason of any attachment, judgment, decree or order of any regulatory, governmental or court authority or proceeding, so long as any proceeding initiated to review same shall not have been
terminated or the period within which such proceeding may be initiated shall not have expired, or such attachment, judgment, decree or order shall otherwise be effectively stayed. 

  
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 “Rating Agency” means (i) each of Moody’s and S&P and (ii) if either
of Moody’s or S&P ceases to rate the Senior Notes or fails to make a rating of the Senior Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act selected by the Company as a replacement agency for Moody’s or S&P, or both, as the case may be. 

“Restricted Property” means any real property, manufacturing plant, warehouse, office building or other physical facility, or any
item of marine, transportation or construction equipment or other like depreciable assets of the Company or any of its Restricted Subsidiaries, whether owned on or acquired after the original issue date of the Senior Notes, unless, in the opinion of
the board of directors of the Company, such plant or facility or other asset is not of material importance to the total business conducted by the Company and its Restricted Subsidiaries taken as a whole; provided, that any such individual
property shall be deemed to not be a restricted property (without the need for any board resolution) if such property does not have a fair value in excess of 0.25% of the total assets included in the Company’s most recent quarterly consolidated
balance sheet, provided further that the aggregate fair value of properties excluded pursuant to the preceding proviso shall not exceed $100,000,000. 

“Restricted Subsidiary” means any Subsidiary of the Company that owns a Restricted Property. 

“Sale and Leaseback Transaction” means a sale or transfer made by the Company or a Restricted Subsidiary (except a sale or transfer
made to the Company or another Restricted Subsidiary) of any Restricted Property, if such sale or transfer is made with the agreement, commitment or intention of leasing such property to the Company or a Restricted Subsidiary, other than:
(i) any such transaction involving a lease for a term (including renewals or extensions exercisable by the Company or any of its Restricted Subsidiaries) of not more than three years; or (ii) any such transaction entered into at the time
of, or within 12 months after the latest of, the acquisition, the completion of construction or improvement, or the commencement of commercial operation of the Restricted Property. 

“Subsidiary” means (i) any corporation of which a majority of the outstanding Voting Stock is owned, directly or indirectly, by
the Company or by one or more of its other subsidiaries, or both, (ii) a partnership in which the Company or its subsidiaries are, at the date of determination, a general or limited partner of such partnership, but only if the Company or its
subsidiaries are entitled to receive more than fifty percent of the assets of such partnership upon its dissolution, or (iii) any other Person (other than a corporation or partnership) in which the Company or any of its subsidiaries, directly
or indirectly, at the date of determination thereof, have (x) at least a majority ownership interest or (y) the power to elect or direct the election of a majority of the directors or other governing body of such Person. 

“S&P” means Standard & Poor’s Ratings Services and any successor to its rating agency business. 

“Voting Stock” of a Person means all classes of capital stock of such Person then outstanding and normally entitled (without regard
to the occurrence of any contingency) to vote generally in the election of directors (or Persons performing similar functions). 

  
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 SECTION 202    Additional Covenants. Article Four of the Base
Indenture shall be amended by adding the following Sections 4.08, 4.09, 4.10 and 4.11: 
 Section 4.08    Limitation on
Liens. 
 The Company shall not, and shall not permit any of its Subsidiaries to, incur, issue, assume or guarantee any notes, bonds,
debentures or other similar evidences of indebtedness for money borrowed, secured by a Lien on any Restricted Property, or on any Capital Stock of a Restricted Subsidiary, without effectively providing, concurrently with the incurrence, issuance,
assumption or guarantee of such secured indebtedness, that the Senior Notes (together with, if the Company shall so determine, any of its other indebtedness or the indebtedness of any such Restricted Subsidiary then existing or thereafter created
ranking on a parity with the Senior Notes) shall be secured equally and ratably with (or prior to) such secured indebtedness, so long as such secured indebtedness shall be so secured, unless, after giving effect thereto, the aggregate amount of
(x) all such secured indebtedness (excluding any indebtedness secured by Liens referred to in clauses (1) through (10) below and any indebtedness as to which the Senior Notes have been secured equally and ratably with (or prior to) as
provided above) and (y) all of the then outstanding Attributable Debt related to any Sale and Leaseback Transaction as to which the requirements in clauses (2)(i) through (2)(iii) of the first paragraph of Section 4.09 have not been
complied with, does not exceed 15% of the Company’s Consolidated Net Tangible Assets as shown on the Company’s most recent consolidated quarterly financial statements; provided, however, that the foregoing limitations shall
not apply to: 
  

	 	(1)	Liens existing on the date of original issuance of the Senior Notes; 

  

	 	(2)	Liens on property or assets of, or on any shares of stock, ownership interests in or indebtedness (and any additions thereto, proceeds thereof and property in replacement or substitution thereof) of any Person existing
at the time such Person becomes a Subsidiary (including a Restricted Subsidiary) of the Company; 

  

	 	(3)	Liens on property or assets (and any additions thereto, proceeds thereof and property in replacement or substitution thereof) existing at the time of acquisition thereof (including acquisition through merger or
consolidation) or to secure the payment of all or any part of the purchase price or cost of construction, development, expansion or improvement thereof or to secure any indebtedness incurred prior to, at the time of, or within 12 months after, the
acquisition or completion of construction, development, expansion or improvement of such property or assets or its commencement of commercial operations for the purpose of financing all or any part of the purchase price or cost of construction,
development, expansion or improvement thereof; 

  

	 	(4)	Liens in favor of the Company or any Subsidiary of the Company; 

  

	 	(5)	Liens on any current assets that secure current liabilities; 

  
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	 	(6)	Liens in favor of the United States of America or any other sovereign entity, or any state, province or other political subdivision thereof, or any entity, department, agency, instrumentality or comparable authority
thereof, to secure partial, progress, advance or other payments or performance pursuant to the provisions of any contract, statute, law, rule or regulation; 

  

	 	(7)	Liens to secure any indebtedness incurred for the purpose of financing all or any part of the purchase price or the cost of constructing, developing, repairing or improving the property subject to such Liens, including
without limitation, Liens to secure indebtedness of the pollution control or industrial revenue bond type; 

  

	 	(8)	Liens to secure indebtedness issued or guaranteed by the United States of America, any state thereof, any foreign country or any department, agency or instrumentality of any such jurisdiction; 

 

	 	(9)	Permitted Liens; and 

  

	 	(10)	any extension, renewal or replacement (or successive extensions, renewals or replacements), as a whole or in part, of any Lien referred to in the foregoing clauses, inclusive; provided, that such extension,
renewal or replacement Lien shall be limited to all or a part of the same property or assets (and any additions thereto, proceeds thereof and property in replacement or substitution thereof) that secured the Lien extended, renewed or replaced, plus
improvements on such property or assets. 

 Section 4.09    Restrictions on Sale and Leaseback Transactions.

 The Company shall not, and shall not permit any Restricted Subsidiary to, enter into any Sale and Leaseback Transaction, unless: 

 

	 	(1)	fair value is received by the Company or the relevant Restricted Subsidiary for the property sold (as determined in good faith by the Company or the relevant Restricted Subsidiary); and 

 

	 	(2)	the Company or a Restricted Subsidiary, within 365 days after the completion of the Sale and Leaseback Transaction, apply an amount equal to the greater of the net proceeds therefrom and the Attributable Debt associated
with the property either: (i) to the redemption, repayment or retirement of third-party long-term debt that is not subordinated in right of payment to the Senior Notes (including the cancellation by the Trustee of any debt securities of any
series delivered by the Company to the Trustee) or (ii) to the purchase by the Company or any Restricted Subsidiary of property substantially similar to the property sold or transferred or (iii) any combination of the applications referred
to in clauses (i) and (ii). 

  
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 In addition, the Company and its Restricted Subsidiaries may enter into a Sale and Leaseback
Transaction if the Company or the Restricted Subsidiary would be entitled to incur indebtedness secured by a Lien on Restricted Property at least equal in amount to the Attributable Debt with respect to such transaction pursuant to Section 4.08
above without having to secure equally and ratably the Senior Notes (without taking into account clauses (1) through (10) in the first paragraph thereof). 

Section 4.10    Change of Control Repurchase Offer. 

If a Change of Control Repurchase Event occurs, unless the Company has exercised the Company’s right to redeem all of the Senior Notes as
described above, the Company shall be required to make an offer to each Holder of Senior Notes to repurchase all or, at the election of the Holder, any part (in minimum principal amounts of $2,000 and integral multiples of $1,000 in excess thereof)
of that Holder’s Senior Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of Senior Notes to be repurchased plus any accrued and unpaid interest on the Senior Notes repurchased to, but excluding, the date of
purchase. Within 30 days following any Change of Control Repurchase Event or, at the Company’s option, prior to any Change of Control, but after the public announcement of the Change of Control, the Company shall give notice to each Holder,
with a copy to the Trustee, in the manner provided in the Indenture describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase Senior Notes on the payment date
specified in the notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is given. The notice shall, if given prior to the date of consummation of the Change of Control, state that the offer to
purchase is conditioned on the Change of Control Repurchase Event occurring on or prior to the payment date specified in the notice. 
 The
Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection
with the repurchase of the Senior Notes as a result of a Change of Control Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Repurchase Event provisions of the Senior Notes,
the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached the Company’s obligations under the Change of Control Repurchase Event provisions of the Senior Notes by virtue of such
conflict. 
 On the Change of Control Repurchase Event payment date, the Company shall, to the extent lawful: 

 

	 	(1)	accept for payment all Senior Notes or portions of Senior Notes properly tendered pursuant to the Company’s offer (in principal amounts of $2,000 and integral multiples of $1,000 in excess thereof);

  

	 	(2)	deposit with the Paying Agent an amount equal to the aggregate purchase price in respect of all Senior Notes or portions of Senior Notes properly tendered and not withdrawn; and 

  
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	 	(3)	deliver or cause to be delivered to the Trustee the Senior Notes properly accepted, together with an Officer’s Certificate stating the aggregate principal amount of Senior Notes being purchased by the Company.

 The Paying Agent shall promptly mail to each Holder of Senior Notes properly tendered the purchase price for the Senior
Notes, and the Trustee shall promptly authenticate and mail (or cause to be transferred by book-entry) to each Holder a new note equal in principal amount to any unpurchased portion of any Senior Notes surrendered; provided that each new note
shall be in minimum principal amounts of $2,000 or an integral multiple of $1,000 in excess thereof. 
 The Company shall not be required to
make an offer to repurchase the Senior Notes upon a Change of Control Repurchase Event if a third party makes an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and such third
party purchases all Senior Notes properly tendered and not withdrawn under its offer. 
 An offer to repurchase may be made in advance of a
Change of Control Repurchase Event, conditional upon such Change of Control Repurchase Event after the public announcement of the Change of Control. 

Section 4.11    Reporting. 

So long as the Senior Notes are outstanding, the Company shall furnish to the Trustee and make available on its website copies of such annual
and quarterly reports and such information, documents and other reports as are required under Sections 13 and 15(d) of the Exchange Act within 15 days after the date such information, documents or other reports were filed with the SEC. The Company
shall be deemed to have furnished such reports, information and documents to the Trustee if the Company has filed such reports, information and documents with the SEC via the Electronic Data Gathering, Analysis and Retrieval System (EDGAR) filing
system (or any successor system) or has made available such reports, information and documents on its website. The Trustee shall have no responsibility to ensure that such filing has occurred. 

Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such
shall not constitute actual or constructive knowledge or notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants under the Indenture (as to
which the Trustee is entitled to rely exclusively on Officers’ Certificates and the Company’s compliance certificates required by the Indenture). The Trustee will not be obligated to monitor or confirm, on a continuing basis or otherwise,
the Company’s compliance with this Section 4.11 or to determine whether such reports, information or documents have been posted on any website or filed with the SEC (via EDGAR or otherwise). 

ARTICLE THREE 
 MISCELLANEOUS
PROVISIONS 
 SECTION 301    Integral Part. 

This Second Supplemental Indenture constitutes an integral part of the Indenture. 

  
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 SECTION 302    General Definitions. 

For all purposes of this Second Supplemental Indenture: 

(a)    capitalized terms used herein without definition shall have the meanings specified in the Base Indenture; and 

(b)    the terms “herein,” “hereof,” “hereunder” and other words of similar import refer to
this Second Supplemental Indenture. 
 SECTION 303    Adoption, Ratification and Confirmation. 

The Indenture, as supplemented and amended by this Second Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed.

 SECTION 304    Counterparts. 

This Second Supplemental Indenture may be executed in any number of counterparts, each of which when so executed shall be deemed an original;
and all such counterparts shall together constitute but one and the same instrument. 
 SECTION 305    Governing
Law. 
 THIS SECOND SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
BUT WITHOUT GIVING EFFECT TO THE APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

SECTION 306    Trustee Disclaimer. 

The Trustee makes no representation as to the validity or sufficiency of this Second Supplemental Indenture. The recitals contained herein
shall be taken as statements of the Company, and the Trustee assumes no responsibility for their correctness. 
 [Signature Page
Follows] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be duly
executed as of the day and year first written above. 
  

			
	OCEANEERING INTERNATIONAL, INC.

 
			
		
	By:	 	 /s/ Alan R. Curtis

	Name: Alan R. Curtis
	 Title:   Senior Vice President and

            Chief Financial
Officer

 
			
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

 
			
		
	By:	 	 /s/ Patrick Giordano

	Name: Patrick Giordano
	Title:   Vice President

 Signature Page to Second Supplemental Indenture 

  
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 ANNEX A 

[FORM OF GLOBAL SECURITY—SENIOR NOTES] 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO
CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE
OF SUCH SUCCESSOR DEPOSITARY. 
 6.000% SENIOR NOTE DUE 2028 

OCEANEERING INTERNATIONAL, INC. 
  

			
	 Issue Date: [    ]
	  	Maturity: February 1, 2028
		
	 Principal Amount: [    ]
	  	CUSIP: 675232 AB8
		
	 Registered: [    ]
	  	ISIN: US675232AB89

 Oceaneering International, Inc., a corporation incorporated under the laws of the State of Delaware (herein
called the “Company”, which term includes any successor corporation under the indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
[    ] Dollars ($[    ]), or such other amount as provided on the “Schedule of Increases or Decreases in Global Security” attached hereto, on February 1, 2028 and to pay interest thereon in
immediately available funds as specified on the reverse of this Security. 
 Payment of the principal of and interest on this Security shall
be made at the office or agency of the Company maintained for that purpose in New York, New York or Dallas, Texas in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private
debts; provided, however, that at the option of the Company, payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the register of Securities or by wire transfer
of immediately available funds to the accounts in the continental United States designated by the Holder of $1 million or more of this Security. 

  
 A-1 

 Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature (the exchange of copies of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery thereof), this
Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed. 
  

							
	Dated:                                     
                                   	 		 	OCEANEERING INTERNATIONAL, INC.
				
		 		 	By:	 	  

		 		 		 	Name:
		 		 		 	Title:
				
		 		 	By:	 	  

		 		 		 	Name:
		 		 		 	Title:
	Attest:	 		 		 	
				
	                                      
                                         
     	 		 		 	
	Secretary	 		 		 	

  
 A-2 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

 

	
	 WELLS FARGO BANK, NATIONAL

ASSOCIATION, as Trustee

	
	  

	 Authorized Signatory

  

	
	 Date of
Authentication:                                      
                

  
 A-3 

 [Reverse of Security] 

OCEANEERING INTERNATIONAL, INC. 

6.000% SENIOR NOTE DUE 2028 

This Security is one of a duly authorized issue of senior securities of the Company issued and to be issued in one or more series under an
Indenture, dated as of November 21, 2014 between the Company and Wells Fargo Bank, National Association, as trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture (as defined below)), as
amended by the Second Supplemental Indenture thereto dated as of February 6, 2018 between the Company and the Trustee (as so amended, herein called the “Indenture”), or their respective predecessors, as applicable, to which the
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the
terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof, which is initially limited to the aggregate principal amount of $300,000,000. As used herein, the term
“Securities” means securities of the series designated on the face hereof except that, where the context requires that such term be construed as including another series of securities (e.g., where phrases such as “Securities of
each series” or “Securities of any series” or similar phrases are used), the term “Securities” means securities of any series issued or to be issued under the Indenture. 

The Company may, without the consent of the existing holders of the Securities, issue additional Securities having the same ranking and the
same interest rate, maturity and other terms as the Securities, except for issue date, public offering price and, if applicable, the date from which interest will accrue. Any additional Securities having such similar terms, together with the
Securities, shall constitute a single series of Securities under the Indenture. 
 Interest 

The rate at which this Security shall bear interest shall be 6.000% per annum. The date from which interest shall accrue for this Security
shall be February 6, 2018. The Interest Payment Dates on which interest on this Security shall be payable are February 1 and August 1 of each year, commencing on August 1, 2018. The Regular Record Date for the interest payable on
this Security on any Interest Payment Date shall be the January 15 or July 15, as the case may be, immediately preceding such Interest Payment Date. Interest shall cease to accrue on this Security upon its maturity, purchase by the Company
at the option of a holder or redemption. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. 

Method of Payment 
 Payments in respect of
principal of and interest, if any, on the Securities shall be made by the Company in immediately available funds. 
 Payment on Business Day 

If any Interest Payment Date, Redemption Date (as defined below) or Maturity date of the Senior Notes is not a Business Day at any Place of
Payment, then payment of the principal, premium, if any, and interest may be made on the next Business Day at that Place of Payment. No interest shall accrue on the amount payable for the period from and after the applicable Interest Payment Date,
Redemption Date or Maturity date, as the case may be. 

  
 A-4 

 Optional Redemption 

The Securities are redeemable, at the option of the Company, at any time prior to maturity in whole or from time to time in part, on a date
fixed by the Company for such redemption (the “Redemption Date”) and at a redemption price (the “Redemption Price”) calculated as follows. If the relevant Redemption Date occurs prior to November 1, 2027, the Redemption
Price shall be equal to 100% of the principal amount of the Securities being redeemed plus accrued and unpaid interest up to but not including the Redemption Date plus a premium (the “Make-Whole Premium”), if any is applicable pursuant to
the calculation thereof as provided in the immediately following paragraph. If the relevant Redemption Date occurs on or after November 1, 2027, the Redemption Price payable shall be equal to 100% of the principal amount of the Securities being
redeemed plus accrued and unpaid interest up to but not including the Redemption Date (with no Make-Whole Premium). If the Redemption Date is after a Regular Record Date and on or prior to the corresponding Interest Payment Date, the accrued and
unpaid interest shall be paid on the Redemption Date to the Person in whose name the Securities are registered at the close of business on the Regular Record Date and not included in the Redemption Price. The Redemption Price shall never be less
than 100% of the principal amount of the Securities plus accrued and unpaid interest up to but not including the Redemption Date. 
 The
Company shall calculate the Make-Whole Premium, if any, in good faith, applying the Treasury Rate determined as set forth in the definition thereof. The amount of the Make-Whole Premium is equal to the excess, if any, of: (i) the sum of the
present values, calculated as of the Redemption Date, of: (A) the remaining scheduled payments of interest on the Securities to be redeemed that would be due after the Redemption Date but for such redemption (except that, if such Redemption
Date is not an Interest Payment Date, the amount of the next succeeding scheduled interest payment shall be reduced by the amount of interest accrued thereon to the Redemption Date); and (B) the principal amount that, but for the redemption,
would have been payable at the Stated Maturity; over (ii) the principal amount of the Securities being redeemed. 
 The present values
of interest and principal payments referred to in clause (i) above shall be determined in accordance with generally accepted principles of financial analysis. Those present values shall be calculated by discounting the amount of each payment of
interest or principal from the date that each payment would have been payable, but for the redemption, to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30- day months) at a discount rate equal to the Treasury Rate (as defined below) plus 40 basis points. 

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semiannual equivalent yield to maturity
(computed by the Company as of the second Business Day immediately preceding such Redemption Date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such Redemption Date. 

  
 A-5 

 “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Securities.

 “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company. 

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer
Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the
average of all Reference Treasury Dealer Quotations obtained. 
 “Reference Treasury Dealer” means Credit Suisse Securities (USA)
LLC, Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and their successors and two other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Company, except that if any of the
foregoing ceases to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company is required to designate as a substitute another nationally recognized investment banking firm that is a Primary
Treasury Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any
Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent
Investment Banker by such Reference Treasury Dealer as of 3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. 

If less than all of the Securities are to be redeemed, the Trustee shall select the Securities to be redeemed on a pro rata basis (or, in the
case of Securities represented by Global Securities, in accordance with the Depositary’s applicable procedures). 
 Notice of
redemption shall be sent at least 30 days but not more than 60 days before the Redemption Date to each Holder of Securities to be redeemed at its registered address. Securities in denominations larger than $2,000 in principal amount, or any integral
multiple of $1,000 in excess thereof, may be redeemed in part, but only in minimum principal amounts of $2,000 and integral multiples of $1,000 in excess thereof. On and after the Redemption Date, subject to the deposit with the Paying Agent of
funds sufficient to pay the Redemption Price, interest shall cease to accrue on Securities or portions thereof called for redemption. 
 The
Securities are not entitled to the benefit of any sinking fund or other mandatory redemption provisions. 

  
 A-6 

 Change of Control Repurchase Offer 

Upon the occurrence of a Change of Control Repurchase Event, the Company shall make an offer to repurchase the Securities, if and in the manner
required by Section 4.10 of the Indenture. 
 Transfer 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the register
of the Securities, upon surrender of this Security for registration of transfer at the office or agency in a Place of Payment for Securities of this series, duly endorsed by, or accompanied by a written instrument of transfer in form reasonably
satisfactory to the Registrar duly executed by the Holder thereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series, of like tenor and of other authorized denominations and for the same aggregate
principal amount, executed by the Company and authenticated and delivered by the Trustee, shall be issued to the designated transferee or transferees. 

The Securities of this series are issuable only in registered form without coupons in minimum denominations of $2,000 or any integral multiple
of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations set forth therein and on the face of this Security, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this
series of a different authorized denomination as requested by the Holder surrendering the same. 
 No service charge shall be made for any
such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee or any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security is overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

Amendment, Supplement and Waiver; Limitation on Suits 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of
the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of at least a majority in principal amount of the then
outstanding Securities of all series affected (acting as one class). The Indenture also contains provisions permitting the Holders of at least a majority in principal amount of the then outstanding Securities of any series or of all series (acting
as one class), to waive compliance by the Company with certain existing or past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon
all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

  
 A-7 

 Subject to the right of the Holder of any Securities of this series to institute proceedings to
enforce the Holder’s right to receive payment of the principal thereof and interest thereon (or repurchase price thereof), no Holder of the Securities of this series shall have any right to institute any proceeding, judicial or otherwise, with
respect to the Indenture, or for the appointment of a receiver or trustee, or for any other remedy thereunder, unless 

(1)    such Holder has previously given written notice to the Trustee of a continuing Event of Default; 

(2)    the Holders of not less than 25% in principal amount of the then outstanding Securities of this series shall have
made written request to the Trustee to pursue the remedy; 
 (3)    such Holder or Holders offer to the Trustee indemnity
satisfactory to the Trustee against any loss, liability or expense to be incurred in compliance with such request; 

(4)    the Trustee for 60 days after its receipt of such request and offer of indemnity has failed to institute any such
proceeding; and 
 (5)    no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the then outstanding Securities of this series; 
 it
being understood and intended that no one or more of such Holders shall have the right in any manner whatever by virtue of, or by availing of, any provision of the Indenture to affect, disturb or prejudice the rights of any other of such Holders, or
to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under the Indenture, except in the manner herein provided and for the equal and ratable benefit of all of such Holders. 

Successor Corporation 
 When a successor
Person assumes all the obligations of its predecessor under the Securities and the Indenture in accordance with the terms and conditions of the Indenture, the predecessor Person shall (except in certain circumstances specified in the Indenture) be
released from those obligations. 
 Defaults and Remedies 

If an Event of Default with respect to the Securities of this series shall occur and be continuing, all unpaid principal amount plus accrued
and unpaid interest through the acceleration date of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

  
 A-8 

 No Recourse Against Others 

No recourse shall be had for the payment of the principal of or the interest, if any, on this Security, for any claim based hereon, or
otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, shareholder, officer or director, as such, past, present or future, of the Company or of any successor
corporation thereto, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment of penalty or otherwise, all such liability being, by acceptance hereof and as part of the consideration for the issue hereof,
expressly waived and released. 
 Indenture to Control; Governing Law 

In the case of any conflict between the provisions of this Security and the Indenture, the provisions of the Indenture shall control. 

THE INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, BUT WITHOUT
GIVING EFFECT TO THE APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

Definitions 
 All terms defined in the
Indenture and used in this Security but not specifically defined herein are used herein as so defined. 

  
 A-9 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY1 
 The following increases or decreases in this Global Security have been made: 

 

									
	 Date of exchange
	  	 Amount of
decrease in

principal amount
of this Global
Security
	  	 Amount of
increase in
principal amount
of this
Global
Security
	  	 Principal amount
of this
Global
Security following
such decrease or 
increase
	  	 Signature of
authorized officer
of Trustee
or
Security 
Custodian

  

	1 	Include schedule only for Global Security. 

  
 A-10Exhibit 10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT ("Agreement"), made effective as of February 6, 2018, between PERNIX THERAPEUTICS HOLDINGS, INC.,
a Maryland corporation (the "Company") and ANGUS SMITH ("Executive").

WITNESSETH:

WHEREAS, Executive will be serving as the Senior Vice President, Chief Business Officer and Principal Financial Officer of the Company; and

WHEREAS, the Company and Executive desire to enter into this Agreement to set out the terms and conditions for the continued employment relationship of Executive
with the Company.

NOW, THEREFORE, intending to be legally bound hereby, the Company hereby agrees to continue to employ Executive, and Executive hereby agrees to continue to be
employed by the Company, upon the following terms and conditions:

	Term.

Subject to the terms and provisions of this Agreement, this Agreement shall commence as of the date hereof (the "Effective Date") and shall continue
indefinitely until Executive's employment with the Company is terminated by the Company or by Executive.  Executive's employment hereunder is on an "at-will" basis, as defined
under applicable law, meaning that either Executive or the Company may terminate Executive's employment at any time and for any reason or no reason at all, subject to the provisions of
Section 5 hereof.  The period during which this Agreement is in effect and Executive is employed by the Company hereunder is hereinafter referred to as the "Term."

	Title, Duties and Responsibilities.

	Upon the terms and subject to the conditions herein contained, the Company shall continue to employ Executive as the Senior Vice President, Chief Business
Officer and Principal Financial Officer of the Company, reporting to the Chief Executive Officer of the Company, and Executive hereby accepts such continued employment.  Executive shall, if
requested by the Board of Directors of the Company (the "Board"), also serve as an officer or director of any affiliate of the Company for no additional compensation.

	Executive shall render such services and perform such duties commensurate with his positions as may be reasonably assigned to him from time to time by the
Chief Executive Officer of the Company.  Excluding any periods of vacation and sick leave to which Executive is entitled, Executive agrees to devote Executive's full business time and best
efforts to the performance of Executive's duties hereunder and to the business and affairs of the Company.

	Compensation and Benefits.

	Executive's annual base salary shall be $350,000.00 per year ("Base Salary").  The Base Salary shall be payable
in accordance with the Company's normal payroll practices.  The Base Salary may be increased annually by the Board or the Compensation Committee of the Board (the "Compensation
Committee"), in its sole discretion, and all references in this Agreement to Base Salary shall include any such increase.  The Base Salary may not be decreased during the Term.

	With respect to each calendar year that ends during the Term, commencing with calendar year 2018, Executive shall be eligible to receive an annual cash bonus,
which shall be payable based on the extent to which, in the discretion of the Compensation Committee, Executive achieves specific and measurable performance objectives established by the
Compensation Committee.  Commencing with calendar year 2018 and each calendar year thereafter during the Term, the performance objectives for Executive's annual cash bonus shall be
established by the Compensation Committee within the first ninety (90) days of the calendar year to which the bonus relates.  Executive's target annual cash bonus (the "Target
Bonus") shall be equal to 50% of his Base Salary.  The exact amount of the bonus payable to Executive for any calendar year during the Term shall
be determined by the Board or the Compensation Committee, in its sole discretion, and may be less than or greater than the Target Bonus; provided, that, in no event shall the bonus payable
to Executive for any calendar year during the Term be greater than 200% of the Target Bonus.  Except as otherwise provided in this Agreement, with respect to each calendar year that ends
during the Term, including 2018, Executive must remain employed with the Company through the date on which the bonus is paid to Executive in order to be eligible to receive an annual cash
bonus for such calendar year.  

	With respect to each calendar year that ends during the Term, commencing with calendar year 2018, Executive shall be eligible to receive annual equity awards
based on the Company's and Executive's actual performance, as determined by the Board or the Compensation Committee, in its sole discretion.  Each such equity award granted to Executive
hereunder shall be granted under and subject to the terms and conditions of the Company's 2017 Omnibus Incentive Plan (or such other equity incentive plan as may be in effect from time to
time) and such other terms and conditions as are established by the Compensation Committee and set forth in an award agreement evidencing the grant of such equity award.

	During the Term, Executive shall be eligible to participate in all employee benefit plans, practices and programs maintained by the Company, as in effect from time
to time, on a basis which is no less favorable than is provided to other senior executives of the Company, to the extent consistent with applicable law and the terms of the applicable employee
benefit plans, practices and programs.  The Company reserves the right to amend or cancel any employee benefit plan, practice or program at any time in its sole discretion, subject to the
terms of such employee benefit plan, practice or program and applicable law.  Executive shall be entitled to four (4) weeks of paid vacation, in addition to any Company holidays, subject to
reasonable business expectations.  Executive shall be entitled to carry forward a cumulative amount of up to ten (10) accrued but unused vacation days from calendar year to calendar year
during the Term.  The Company shall reimburse Executive for all reasonable expenses properly incurred by Executive in the discharge of his duties hereunder upon production of evidence
therefor in accordance with the Company's then current policy.

                                              2

	Termination of Employment.

	The employment of Executive hereunder may be terminated by the Company with or without Cause (as defined below) or by Executive with or without Good
Reason (as defined below).  If the Company terminates Executive's employment without Cause, it shall give Executive not less than thirty (30) days' advance written notice of such termination.
If Executive terminates his employment without Good Reason, he shall give the Company not less than thirty (30) days' advance written notice of such termination; provided, that, the Company
may elect, in its sole discretion, to waive such thirty (30) day advance written notice requirement, and any such waiver of notice by the Company shall not constitute an involuntary termination
of Executive's employment by the Company.  Executive's employment shall terminate automatically if Executive dies.  If the Company determines in good faith that the Disability (as defined
below) of Executive has occurred, and determines in good faith, consistent with applicable law, that Executive cannot perform his duties, with or without a reasonable accommodation, it may
give to Executive written notice of the termination of Executive's employment as a result of such Disability.  In such event, Executive's employment with the Company shall terminate effective
on the 30th day after receipt of such notice by Executive, provided that, within the thirty (30) days after such receipt, Executive shall not have returned to full-time performance of Executive's
duties.  Upon termination of Executive's employment hereunder for any reason, Executive shall be deemed to have resigned from all positions that Executive holds as an officer or member of
the board of directors (or a committee thereof) of the Company or any of its affiliates.

	"Cause" shall mean: (i) Executive's willful failure to perform his duties (other than any such failure resulting from incapacity due to physical or mental
illness); (ii) Executive's gross negligence or willful misconduct in the performance of his duties to the Company that he knows violates applicable law or that causes the Company or any
subsidiary thereof to violate applicable law and that, in either case, as reasonably determined, causes material harm to the reputation, goodwill or business operations of the Company; (iii)
Executive's willful violation of a material policy of the Company to which Executive is bound; (iv) Executive's commission of fraud or embezzlement with respect to the Company; (v) Executive's
conviction of, or plea of guilty or nolo contendere to, a felony (other than traffic offenses); and (vi) a willful material breach by Executive of this Agreement.  For purposes of the definition
of Cause, no act or failure to act on the part of Executive shall be considered "willful" unless it is done, or omitted to be done, by Executive in bad faith or without reasonable belief
that his action or omission was in the best interests of the Company.  Termination of Executive's employment shall not be deemed to be for Cause unless and until the Company delivers
to Executive a written notice detailing the specific acts that serve as the basis for the termination for Cause, within thirty (30) days of the Company becoming aware of such acts, and Executive
fails to cure such acts within a period of thirty (30) days of receipt of the notice of termination.    

                                              3

	"Good Reason" shall mean, without Executive's prior written consent: (i) a material diminution in Executive's duties, authority or responsibilities; (ii) a
material reduction in Executive's Base Salary or Target Bonus opportunity, (iii) a relocation of Executive to offices of the Company that are more than fifty (50) miles from the Company's offices
in Morristown, NJ, or (iv) any action or inaction that constitutes a material breach of this Agreement by the Company.  In order to invoke a termination for Good Reason, Executive must deliver
a written notice of the grounds for such termination within ninety (90) days of the initial existence of the event giving rise to Good Reason and the Company shall have thirty (30) days to cure
the circumstances.  In order to terminate his employment, if at all, for Good Reason, Executive must terminate employment within sixty (60) days following the end of the cure period if the
circumstances giving rise to Good Reason have not been cured.    

	"Disability" shall mean Executive is "Disabled" within the meaning of section 409A(a)(2)(C) of the Internal Revenue Code of 1986, as
amended (the "Code"), or a successor provision.

	Compensation Upon Termination of Employment.

	Termination by the Company for Cause or Resignation by Executive Without Good Reason.  If Executive's employment is terminated by the Company for
Cause or by Executive without Good Reason, the Company shall provide the following (referred to in this Agreement as the "Accrued Obligations") to Executive: (i) Executive's Base
Salary, vacation and other cash entitlements accrued through the date of termination shall be paid to Executive in a lump sum of cash on the first regularly scheduled payroll date that is at least
ten (10) days from the date of termination to the extent theretofore unpaid, (ii) any earned but unpaid annual bonus for the calendar year preceding the calendar year of termination shall be
paid to Executive in a lump sum of cash on the date that annual bonuses are paid to similarly situated executives, but in no event later than March 15 of the calendar year in which the date of
termination occurs; (iii) any amounts owing to Executive for reimbursements of expenses properly incurred by Executive prior to the date of his termination of employment and which are
reimbursable in accordance with Section 3(d) above shall be payable in accordance with the Company's expense reimbursement policy in a lump sum of cash on the first regularly scheduled
payroll date that is at least ten (10) days from the date of termination to the extent theretofore unpaid; (iv) the amount of any compensation previously deferred by Executive shall be paid to
Executive in accordance with the terms of the applicable deferred compensation plan to the extent theretofore unpaid; and (v) amounts that are vested benefits or that Executive is otherwise
entitled to receive under any plan, policy, practice or program of or any other contract or agreement with the Company at or subsequent to the date of termination, payable in accordance with
such plan, policy, practice or program or contract or agreement, and the Company shall have no other severance obligations with respect to Executive under this Agreement.

	Termination by the Company Without Cause or Resignation by Executive With Good Reason.  Except as provided in Section 5(c) below, if Executive's
employment is terminated by the Company without Cause (other than as a result of Executive's death or Disability), or if Executive resigns with Good Reason, Executive shall be entitled to
receive the Accrued Obligations, which shall be payable as provided in Section 5(a) hereof, and, subject to his execution and non-revocation of the release described in Section 5(e) below and
his compliance with the restrictive covenants in Section 8 hereof, Executive shall be entitled to receive the following: 

                                              4

	An amount equal to the sum of: (i) 100%  of Executive's annual Base Salary in effect at the time of his termination of employment (without taking into account any
reduction that constituted Good Reason for Executive's resignation); and (ii) 100% of the Target Bonus (without taking into account any reduction that constituted Good Reason for Executive's
resignation), less all applicable payroll deductions, paid in substantially equal installments in accordance with the Company's normal payroll practices over the twelve (12) month period
following Executive's termination date, commencing on the first payroll date that occurs on or after the Release Effective Date (as defined below), but in any event within sixty (60) days
following Executive's termination date, provided that the initial payment will include a catch-up payment to cover the period between Executive's termination date and the date of such first
payment and the remaining amounts shall be paid over the remainder of such twelve (12) month period; and

	provided Executive and his eligible dependents timely and properly elect to continue health care coverage under the Consolidated Omnibus Reconciliation Act of
1985 ("COBRA"), Executive and such eligible dependents shall be entitled to continue to participate in such basic medical, dental, vision and prescription drug benefits as in effect
from time to time, on the same terms and conditions as applicable to active senior executives of the Company, and the Company shall reimburse Executive an amount equal to 150% of the
monthly COBRA premium paid by Executive for him and his eligible dependents, for twelve (12) months or, if earlier, until the date Executive becomes eligible to receive coverage from another
employer or is otherwise no longer eligible to receive COBRA continuation coverage, which reimbursements shall be paid to Executive on each Company payroll date that occurs after the
monthly premium is due and such reimbursements shall commence on the first payroll date that occurs on or after the Release Effective Date, but in any event within sixty (60) days following
Executive's termination date, provided that the initial payment will include a catch-up payment to cover the period between Executive's termination date and the date of such first payment and
the remaining amounts shall be paid over the remainder of such twelve (12) month period.  Notwithstanding the foregoing provisions of this Section 5(b)(ii), in the event the Company
determines that such provisions would subject Executive to taxation under Code Section 105(h), or otherwise violate any healthcare law or regulation, then, in lieu of reimbursing Executive as
set forth in the preceding sentence, the Company shall pay to Executive an amount equal to one hundred fifty percent (150%) of the amount Executive would be required to pay for continuation
of group health coverage for Executive and his eligible dependents through an election under COBRA for twelve (12) months.  This amount shall be paid in a lump sum at the same time
payments under Section 5(b)(i) commence and is intended to assist Executive with costs of health coverage, which Executive may (but is not required to) obtain through an election to continue
health care coverage under COBRA.

For the avoidance of doubt, the amounts paid under this Section 5(b) are in lieu of payment to Executive under any other severance agreement, plan, policy, practice or
program of the Company.

	Termination by the Company Without Cause or Resignation by Executive With Good Reason Following a Change in Control.  If Executive's employment is
terminated by the Company without Cause (other than as a result of Executive's death or Disability), or if Executive resigns with Good Reason, in any such case, on or within twelve (12)
months following a Change in Control (defined below), Executive shall be entitled to receive the Accrued Obligations, which shall be payable as provided in Section 5(a) hereof, and, subject to
his execution and non-revocation of the release described in Section 5(e) below and his compliance with the restrictive covenants in Section 8 hereof, Executive shall be entitled to receive the
following: 

                                              5

	an amount equal to the sum of: (i) 125% of Executive's annual Base Salary in effect at the time of his termination of employment (without to taking into account any
reduction that constituted Good Reason for Executive's resignation) and (ii) 125% of the Target Bonus (without taking into account any reduction that constituted Good Reason for Executive's
resignation), less all applicable payroll deductions, paid in substantially equal installments in accordance with the Company's normal payroll practices over the twelve (12) month period
following Executive's termination date, commencing on the first payroll date that occurs on or after the Release Effective Date , but in any event within sixty (60) days following Executive's
termination date, provided that the initial payment will include a catch-up payment to cover the period between Executive's termination date and the date of such first payment and the
remaining amounts shall be paid over the remainder of such twelve (12) month period; 

	a cash payment in an amount equal to the Target Bonus (as determined above) multiplied by a fraction, the numerator of which is the number of days during which
Executive was employed by the Company in the calendar year of his termination of employment and the denominator of which is three hundred sixty-five (365), which payment shall be made in
a lump sum, less all applicable payroll deductions, on the date that annual bonuses are paid to similarly situated executives, but in no event later than March 15 of the calendar year following
the calendar year of Executive's termination of employment;

	all outstanding, unvested equity awards held by Executive on the date his employment terminates shall become fully vested as of such date, and each outstanding
stock option held by Executive on such date shall remain exercisable until the earlier of the original expiration date of such stock option and the six (6) month anniversary of Executive's
termination of employment; and 

	provided Executive and his eligible dependents timely and properly elect to continue health care coverage under COBRA, Executive and such eligible dependents
shall be entitled to continue to participate in such basic medical, dental, vision and prescription drug benefits as in effect from time to time, on the same terms and conditions as applicable to
active senior executives of the Company, and the Company shall reimburse Executive an amount equal to 150% of the monthly COBRA premium paid by Executive for him and his eligible
dependents, for fifteen (15) months or, if earlier, until the date Executive becomes eligible to receive coverage from another employer or is otherwise no longer eligible to receive COBRA
continuation coverage, which reimbursements shall be paid to Executive on each Company payroll date that occurs after the monthly premium is due and such reimbursements shall
commence on the first payroll date that occurs on or after the Release Effective Date, but in any event within sixty (60) days following Executive's termination date, provided that the initial
payment will include a catch-up payment to cover the period between Executive's termination date and the date of such first payment and the remaining amounts shall be paid over the
remainder of such fifteen (15) month period.  Notwithstanding the foregoing

                                              6

provisions of this Section 5(c)(iv), in the event the Company determines that such provisions would subject
Executive to taxation under Code Section 105(h), or otherwise violate any healthcare law or regulation, then, in lieu of reimbursing Executive as set forth in the preceding sentence, the
Company shall pay to Executive an amount equal to one hundred fifty percent (150%) of the amount Executive would be required to pay for continuation of group health coverage for Executive
and his eligible dependents through an election under COBRA for fifteen (15) months.  This amount shall be paid in a lump sum at the same time payments under Section 5(b)(i) commence
and is intended to assist Executive with costs of health coverage, which Executive may (but is not required to) obtain through an election to continue health care coverage under
COBRA

For the avoidance of doubt, the amounts paid under this Section 5(c) are in lieu of payment to Executive under any other severance agreement, plan, policy, practice or
program of the Company.

	Death or Disability.  If Executive's employment is terminated by reason of Executive's death or Disability, the Company shall provide the Accrued
Obligations to Executive or his estate or beneficiaries, as applicable, and (i) in the event of death, Executive's beneficiaries shall be entitled to receive any Company life insurance benefits in
which he was covered at the time of his death or (ii) in the event of Disability, Executive shall be entitled to receive any disability benefits under any applicable long-term disability plan of the
Company which covers Executive. 

	Release.  Executive agrees that, as a condition to receiving the severance payments and benefits set forth in Section 5(b) or Section 5(c), as applicable,
Executive will execute a release of claims substantially in the form of the release attached hereto as Exhibit B.  Within two (2) business days of Executive's date of termination, the
Company shall deliver to Executive the release for Executive to execute.  Executive will forfeit all rights to the severance payments and benefits set forth in Section 5(b) or Section 5(c), as
applicable, unless, within fifty (50) days of delivery of the release by the Company to Executive, Executive executes and delivers the release to the Company and such release has become
irrevocable by virtue of the expiration of the revocation period without the release having been revoked (the first such date, the "Release Effective Date").  The Company's obligation
to pay the severance payments and benefits set forth in Section 5(b) or Section 5(c), as applicable, is subject to the occurrence of the Release Effective Date, and if the Release Effective Date
does not occur, then the Company shall have no obligation to pay such severance payments and benefits.  

	Definition of Change in Control.  For purposes of this Agreement, a "Change in Control" shall be deemed to occur if and when the first of the
following occurs: (i) the acquisition (other than from the Company), by any person (as such term is defined in Section 13(c) or 14(d) of the Securities Exchange Act of 1934, as amended,
including the rules and regulations promulgated thereunder and any successor thereto (the "Exchange Act")) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of fifty percent (50%) or more of the combined voting power of the Company's then outstanding voting securities; (ii) the closing of a merger or similar business
combination (each, an "Business Combination") involving the Company if (x) the shareholders of the Company, immediately before such Business Combination, do not, as a result
of such Business Combination, own,

                                              7

directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding voting securities of the entity resulting from such
Business Combination in substantially the same proportion as their ownership of the combined voting power of the voting securities of the Company outstanding immediately before such
Business Combination or (y) immediately following the Business Combination, the individuals who comprised the Board immediately prior thereto do not constitute at least a majority of the
board of directors of the entity resulting from such Business Combination (or, if the entity resulting from such Business Combination is then a subsidiary, the ultimate parent thereof); or (iii) a
complete liquidation or dissolution of the Company or the closing of an agreement for the sale or other disposition of all or substantially all of the assets of the Company.  Notwithstanding the
foregoing, a Change in Control shall not be deemed to occur solely because fifty percent (50%) or more of the combined voting power of the Company's then outstanding securities is acquired
by: (A) a trustee or other fiduciary holding securities under one or more employee benefit plans maintained by the Company or any of its subsidiaries or (B) any corporation which, immediately
prior to such acquisition, is owned directly or indirectly by the shareholders of the Company in the same proportion as their ownership of shares in the Company immediately prior to such
acquisition.  Notwithstanding anything in this Section 5(f) to the contrary, a Change in Control shall not be deemed to have occurred as a result of any restructuring of the Company's debt,
including but not limited to any transaction whose purpose is solely to finance or re-finance the financial obligations of the Company.  

	Section 280G.

	Executive shall bear all expense of, and be solely responsible for, any excise tax imposed by Section 4999 of the Code (such excise tax being the "Excise
Tax"); provided, however, that any payment or benefit received or to be received by Executive, whether payable under the terms of this Agreement or any other plan, arrangement or
agreement with Company or an affiliate of Company (collectively, the "Payments") that would constitute a "parachute payment" within the meaning of Section 280G of the
Code, shall be reduced to the extent necessary so that no portion thereof shall be subject to the Excise Tax but only if, by reason of such reduction, the net after-tax benefit received by
Executive shall exceed the net after-tax benefit that would be received by Executive if no such reduction was made.

	The "net after-tax benefit" shall mean (i) the Payments which Executive receives or is then entitled to receive from the Company that would constitute
"parachute payments" within the meaning of Section 280G of the Code, less (ii) the amount of all federal, state and local income and employment taxes payable by Executive with
respect to the foregoing calculated at the highest marginal income tax rate for each year in which the foregoing shall be paid to Executive (based on the rate in effect for such year as set forth
in the Code as in effect at the time of the first payment of the foregoing), less (iii) the amount of Excise Tax imposed with respect to the payments and benefits described in (b)(i) above.

	All determinations under this Section 6 will be made by an accounting firm or law firm (the "280G Firm") that is mutually agreed to by Executive and the
Company prior to a change in ownership or control of a corporation (within the meaning of Treasury regulations under Section 280G of the Code).  The 280G Firm shall be required to evaluate
the extent to which payments are exempt from Section 280G of the Code as reasonable

                                              8

compensation for services rendered before or after the Change in Control.  All fees and expenses of the
280G Firm shall be paid solely by the Company.  The Company will direct the 280G Firm to submit any determination it makes under this Section 6 and detailed supporting calculations to both
Executive and the Company as soon as reasonably practicable.

	If the 280G Firm determines that one or more reductions are required under this Section 6, such Payments shall be reduced in the order that would provide
Executive with the largest amount of after-tax proceeds (with such order, to the extent permitted by Sections 280G and 409A of the Code, designated by Executive, or otherwise determined by
the 280G Firm) to the extent necessary so that no portion thereof shall be subject to the Excise Tax, and the Company shall pay such reduced amount to Executive. Executive shall at any time
have the unilateral right to forfeit any equity award in whole or in part.

	As a result of the uncertainty in the application of Section 280G of the Code at the time that the 280G Firm makes its determinations under this Section 6, it is
possible that amounts will have been paid or distributed to Executive that should not have been paid or distributed (collectively, the "Overpayments"), or that additional amounts
should be paid or distributed to Executive (collectively, the "Underpayments"). If the 280G Firm determines, based on either the assertion of a deficiency by the Internal Revenue
Service against the Company or Executive, which assertion the 280G Firm believes has a high probability of success or is otherwise based on controlling precedent or substantial authority, that
an Overpayment has been made, Executive must repay the Overpayment to the Company, without interest; provided, however, that no loan will be deemed to have been made and no amount
will be payable by Executive to the Company unless, and then only to the extent that, the deemed loan and payment would either reduce the amount on which Executive is subject to tax under
Section 4999 of the Code or generate a refund of tax imposed under Section 4999 of the Code. If the 280G Firm determines, based upon controlling precedent or substantial authority, that an
Underpayment has occurred, the 280G Firm will notify Executive and the Company of that determination, and the Company will promptly pay the amount of that Underpayment to Executive
without interest.

	The Company and Executive will provide the 280G Firm access to and copies of any books, records, and documents in their possession as reasonably requested
by the 280G Firm, and otherwise cooperate with the 280G Firm in connection with the preparation and issuance of the determinations and calculations contemplated by this Section 6.  For
purposes of making the calculations required by this Section 6, the 280G Firm may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the
Code.

	Confidential Information.

Executive recognizes and acknowledges that: (i) in the course of Executive's employment by the Company it will be necessary for Executive to acquire information
which could include, in whole or in part, information concerning the Company's sales, sales volume, sales methods, sales proposals, customers and prospective customers, identity of
customers and prospective customers, identity of key purchasing personnel in the employ of customers and prospective customers, amount or kind of customers' purchases from the Company,
the Company's sources of supply, computer programs, system documentation, special hardware, product hardware, related software development, manuals, formulae, processes, methods,

                                              9

machines, compositions, ideas, improvements, inventions or other confidential or proprietary information belonging to the Company or relating to the Company's affairs (collectively referred to
herein as the "Confidential Information"); (ii) the Confidential Information is the property of the Company; (iii) the use, misappropriation or disclosure of the Confidential Information
would constitute a breach of trust and could cause irreparable injury to the Company; and (iv) it is essential to the protection of the Company's good will and to the maintenance of the
Company's competitive position that the Confidential Information be kept secret and that Executive not disclose the Confidential Information to others or use the Confidential Information to
Executive's own advantage or the advantage of others.

	Confidentiality, Non-Solicit, Inventions and Related Covenants.

	Except as provided in Section 8(g), Executive agrees to hold and safeguard the Confidential Information in trust for the Company, its successors and assigns and
agrees that he shall not, without the prior written consent of the Company, disclose or make available to anyone for use outside the Company at any time, either during his employment by the
Company or subsequent to the termination of his employment by the Company for any reason, including without limitation termination by the Company in a termination for Cause or otherwise,
any of the Confidential Information, whether or not developed by Executive, except as required in the performance of Executive's duties to the Company.  The Company and Executive
acknowledge that, notwithstanding anything to the contrary contained in this Agreement, pursuant to 18 USC   1833(b), an individual may not be held liable under any criminal or civil federal or
state trade secret law for disclosure of a trade secret: (i) made in confidence to a government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or
investigating a suspected violation of law or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  The Company and Executive further
acknowledge that an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his attorney and use the trade secret
information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court
order.

	Upon the termination of Executive's employment by the Company or by Executive for any reason, including without limitation termination by the Company in a
termination for Cause or otherwise, Executive shall promptly deliver to the Company all originals and copies of correspondence, drawings, blueprints, financial and business records, marketing
and publicity materials, manuals, letters, notes, notebooks, laptops, reports, flow-charts, programs, proposals and any documents concerning the Company's customers or concerning products
or processes used by the Company and, without limiting the foregoing, shall promptly deliver to the Company any and all other documents or materials containing or constituting Confidential
Information.

	Upon termination of Executive's employment by the Company or by Executive for any reason, including without limitation termination by the Company in a
termination for Cause or otherwise, Executive agrees that for a period of one (1) year after such termination of employment hereunder, Executive shall not, directly or indirectly, solicit for hire,
attempt to hire, or encourage or recommend for hire, any individual who is a Company employee

                                              10

or exclusive agent, consultant, or representative at the time of Executive's termination of
employment or was so employed or engaged at any time within six (6) months prior to Executive's last day of employment at the Company nor interfere with the Company's relationship with an
independent contractor.  The foregoing shall not be violated by general advertising not targeted at Company employees or by serving as a reference upon request to an entity with which
Executive is not affiliated.    

	Executive agrees that all inventions, discoveries, improvements and patentable or copyrightable works ("Inventions") initiated, conceived or made by him
in the course of his employment with the Company, either alone or in conjunction with others, shall be the sole property of the Company to the maximum extent permitted by applicable law and,
to the extent permitted by law, shall be "works made for hire" as that term is defined in the United States Copyright Act (17 U.S.C., Section 101).  The Company shall be the sole
owner of all patents, copyrights, trade secret rights, and other intellectual property or other rights in connection therewith; provided, however that this Section 8(d) shall not apply to Inventions
which are not related to the business of the Company and which are made and conceived by Executive not during normal working hours, not on the Company's premises and not using the
Company's tools, devices, equipment or Confidential Information. Subject to the foregoing, Executive hereby assigns to the Company all right, title and interest he may have or acquire in all
Inventions; provided, however, that the Board may in its sole discretion agree to waive the Company's rights pursuant to this Section 8(d).  Executive agrees to cooperate reasonably with the
Company and at the Company's expense, both during and after his employment with the Company, with respect to the procurement, maintenance and enforcement of copyrights, patents,
trademarks and other intellectual property rights (both in the United States and foreign countries) relating to the Inventions.  Executive shall sign all papers, including, without limitation,
copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights and powers of attorney, that the Company reasonably may deem necessary or
desirable in order to protect its rights and interests in any Inventions.  Executive further agrees that if the Company is unable, after reasonable effort, to secure Executive's signature on any
such papers, any officer of the Company shall be entitled to execute such papers as his agent and attorney-in-fact and Executive hereby irrevocably designates and appoints each officer of the
Company as his agent and attorney-in-fact to execute any such papers on his behalf and to take any and all actions as the Company reasonably may deem necessary or desirable in order to
protect its rights and interests in any Inventions, under the conditions described in this Section 8(d).  Executive will not assert any rights to any invention, discovery, idea or improvement relating
to the business of the Company or to his duties hereunder as having been made or acquired by Executive prior to his work for the Company, except for the matters, if any, described in
Exhibit A to this Agreement.  Executive agrees that he will promptly disclose to the Company all Inventions initiated, made, conceived or reduced to practice by him, either alone or
jointly with others, during the Term.

	During the Term and thereafter, Executive agrees not to and the Company agrees not to and to cause its Board and Section 16 reporting officers not to, utter,
publish, or communicate, or cause the utterance, publication or communication of any defamatory, disparaging, or untrue, inaccurate, or misleading statements or opinions intended to cause
the other to be held in lower regard.  The foregoing shall not be violated by testimony in response to legal processes, statements made in good faith performance of duties to the Company,
normal competitive type statements or rebuttal of false or misleading statements about the Company or Executive, as the case may be.

                                              11

	The parties agree that certain matters in which Executive will be involved during the Term may necessitate Executive's cooperation in the future. Accordingly,
following the termination of Executive's employment for any reason, to the extent reasonably requested by the Board and subject to Executive's professional commitments, Executive shall
cooperate with the Company in connection with matters arising out of Executive's service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption of
Executive's other activities.  The Company shall pay Executive a reasonable per diem and reimburse Executive for reasonable expenses incurred in connection with such
cooperation.

	Nothing in this Agreement, including Sections 8(a) - 8(f) above, restricts or prohibits Executive from initiating communications directly with, responding
to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation
directly with a self-regulatory authority or a government agency or entity, including the U.S. Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations
Board, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or from making other disclosures that are protected under the
whistleblower provisions of state or federal law or regulation.

	Injunctive and other relief.

	In the event of a breach by Executive of the terms of this Agreement, the Company shall be entitled, if it shall so elect, to institute legal proceedings to obtain
damages for any such breach, or to enforce the specific performance of this Agreement by Executive and to enjoin Executive from any further violation of this Agreement and to exercise such
remedies cumulatively or in conjunction with all other rights and remedies provided by law.  Executive acknowledges, however, that the remedies at law for any breach by him of the provisions
of this Agreement may be inadequate and that the Company shall be entitled to injunctive relief against him in the event of any breach whether or not the Company may also be entitled to
recover damages hereunder.

	It is the intention of the parties that the provisions of Section 8 hereof shall be enforceable to the fullest extent permissible under applicable law, but that the
unenforceability (or modification to conform to such law) of any provision or provisions hereof shall not render unenforceable, or impair, the remainder thereof.  If any provision or provisions
hereof shall be deemed invalid or unenforceable, either in whole or in part, this Agreement shall be deemed amended to delete or modify, as necessary, the offending provision or provisions
and to alter the bounds thereof in order to render it valid and enforceable.

	Clawback/Recoupment.  Notwithstanding any other provision in this Agreement to the contrary, to the extent the Company adopts a "clawback" or recoupment policy
(i) that is applicable to all senior executives of the Company or (ii) in order to comply with applicable law, rule, or regulation, Executive acknowledges that the Company may require that any
incentive compensation payable to Executive pursuant to this Agreement or any other agreement or

                                              12

arrangement, in each such case, the payment of which is based on the level of
achievement of financial performance goals, may be subject to such policy; provided that any mandatory repayment by Executive to the Company under such policy will be limited to the excess
of the compensation that is paid to Executive as a result of the accounting restatement, unless otherwise required by applicable law, rule or regulation.

	Attorneys' Fees.  In the event that any suit, action or arbitration proceeding is instituted under or in relation to this Agreement, the prevailing party in such dispute shall be entitled
to recover from the losing party all fees, costs and expenses of enforcing or defending any right of such prevailing party under or with respect to this Agreement, including without limitation,
such reasonable fees and expenses of attorneys and accountants (which shall include, without limitation, all fees, costs and expenses of appeals).  All costs of arbitration, including the fees
and expenses of the arbitrator, shall be borne by such losing party.

	Arbitration.  Except as excluded below, any legal or equitable claim or controversy arising out of or relating to this Agreement, including but not limited to Executive's employment
by the Company or the termination of that employment (whether by Executive or the Company), shall be settled exclusively by binding arbitration in the Borough of Manhattan, City of New
York, State of New York (or the regional office of AAA located in the Borough of Manhattan, City of New York, State of New York) before a single arbitrator, conducted in accordance with the
Federal Arbitration Act and the National Rules for the Resolution of Employment Disputes of the American Arbitration Association ("AAA") which are then in effect (the
"Rules").  A party seeking arbitration must: (i) deliver a written demand for arbitration and the applicable filing fee to the regional office of AAA located in the Borough of Manhattan,
City of New York, State of New York and (ii) on the same day, send a copy of that demand to the other party.  In accordance with the Rules, the demand must describe all claims the party
seeks to arbitrate, and must be received by the AAA and the other party within the applicable statute of limitations governing that claim, or the party seeking arbitration will be barred from
pursuing that claim.  All aspects of the arbitration process, including the demand for arbitration, the hearing, and the record of the proceeding, shall be confidential and shall not be open to or
disclosed to any third party or the public.  Notwithstanding the foregoing, this agreement to arbitrate shall not apply to or cover (x) any claim by Executive for workers' compensation benefits or
unemployment compensation benefits, (y) claims by Executive relating to employee benefits under any of the Company's insurance, disability, or retirement plans to the extent they must be
raised with the administrator of the relevant plan pursuant to the terms of that plan and (z) any claim by the Company for injunctive or equitable relief, including without limitation claims that
Executive has violated any part of Section 8 of this Agreement, or involving intellectual property, unfair competition, or trade secrets.

	Governing Law.

This Agreement shall be construed and enforced under and be governed in all respects by the laws of the State of New Jersey without regard to the conflict of laws
principles thereof.  For the purposes of any claim or cause of action in any legal proceeding initiated over any dispute arising out of or relating to this Agreement or any of the transactions
contemplated hereby that is not subject to arbitration pursuant to Section 12 above, such claim or cause of action shall be initiated in any federal or state court located within the County of
Morris, State of New Jersey,

                                              13

and the parties further agree that venue for all such matters shall lie exclusively in those courts.  The parties hereby irrevocably waive, to the fullest extent
permitted by applicable law, any objection that they may now or hereafter have, including, without limitation, any claim of forum non conveniens, to venue and any objection to personal
jurisdiction or venue in such jurisdiction in the courts located in the County of Morris, State of New Jersey. The parties agree that a judgment in any such dispute may be enforced in other
jurisdictions by proceedings on the judgment or in any other manner provided by law.

	Amendments, waivers, etc.

No amendment of any provision of this Agreement, and no postponement or waiver of any such provision or of any default, misrepresentation, or breach of
warranty or covenant hereunder, whether intentional or not, shall be valid unless such amendment, postponement or waiver is in writing and signed by or on behalf of the Company and
Executive.  No such amendment, postponement or waiver shall be deemed to extend to any prior or subsequent matter, whether or not similar to the subject matter of such amendment,
postponement or waiver.  No failure or delay on the part of the Company or Executive in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof nor shall
any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

	Assignment.

The rights and duties of the Company under this Agreement may be transferred to, and shall be binding upon, any person or company which acquires or is a successor
to the Company, its business or a significant portion of the assets of the Company by merger, purchase or otherwise, and the Company shall require any such acquirer or successor by
agreement in form and substance reasonably satisfactory to Executive, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the
Company, as the case may be, would be required to perform if no such acquisition or succession had taken place.  Regardless of whether such agreement is executed, this Agreement shall be
binding upon any acquirer or successor in accordance with the operation of law and such acquirer or successor shall be deemed the "Company", as the case may be, for purposes
of this Agreement.  Except as otherwise provided in this Section 15, neither the Company nor Executive may transfer any of their respective rights and duties hereunder except with the written
consent of the other party hereto.

	Notices.

Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt requested,
or by overnight carrier to the parties at the addresses set forth below (or such other addresses as specified by the parties by like notice):

                                              14

If to the Company:

Pernix Therapeutics Holdings, Inc.

                   10 North Park Place, Suite 201

                   Morristown, NJ 07960

                   Attn: Vice President, Human Resources

If to Executive, to such address as shall most currently appear on the records of the Company.

	Severability.

The invalidity or unenforceability of any one or more provisions of this Agreement shall not affect the validity or enforceability of the other provisions of this
Agreement, which shall remain in full force and effect.

	Interpretation, etc.

The Company and Executive have participated jointly in the negotiation and drafting of this Agreement.  If an ambiguity or question of intent or interpretation arises,
this Agreement shall be construed as if drafted jointly by the Company and Executive and no presumption or burden of proof shall arise favoring or disfavoring the Company or Executive
because of the authorship of any of the provisions of this Agreement.  The word "including" shall mean including without limitation.  The rights and remedies expressly specified in
this Agreement are cumulative and are not exclusive of any rights or remedies which either party would otherwise have.  The Section headings hereof are for convenience only and shall not
affect the meaning or interpretation of this Agreement.  

	Integration; counterparts.

This Agreement and the Indemnification Agreement (as defined below) constitute the entire agreement among the parties and supersede any prior understandings,
agreements or representations by or among the parties, written or oral, to the extent they relate to the subject matter hereof, including the offer letter between Executive and the Company,
dated September 15, 2014 (the "Offer Letter").  Notwithstanding the foregoing, the requirement in the Offer Letter that Executive re-pay to the Company the entire sign-on bonus
paid to him pursuant to the Offer Letter if Executive voluntarily leaves the Company prior to a year following Executive's date of hire, shall not be superseded by this Agreement and shall
remain in full force and effect.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the
same instrument.  It shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart.

	Indemnification.

The Company and Executive shall enter into an Indemnification Agreement, effective as of February 6, 2018 (the "Indemnification Agreement"). To the extent
any provision set forth in the Indemnification Agreement is in conflict with any provision set forth in this Agreement, the provision set forth in the Indemnification Agreement shall govern.

                                              15

	Survivorship.

The respective rights and obligations of the parties under this Agreement, including, without limitation the Company's obligations to pay and provide the severance
benefits described in Section 5(b) and 5(c) of this Agreement, shall survive any termination of Executive's employment to the extent necessary to carry out the intentions of the parties under
this Agreement.

	Withholding.

The Company may withhold from any benefit payment or any other payment or amount under this Agreement all federal, state, city or other taxes as shall be required
pursuant to any law or governmental regulation or ruling.

	Section 409A.

	The payments and benefits under this Agreement are intended to comply with or be exempt from Section 409A of the Code, and the regulations and guidance
promulgated thereunder (collectively, "Section 409A") and this Agreement shall be interpreted and construed in a manner intended to comply therewith.  For purposes of this
Agreement, Executive will be considered to have experienced a termination of employment only if Executive has a "separation from service" with the Company and all of its
controlled group members within the meaning of Section 409A.  Whether Executive has a separation from service will be determined based on all of the facts and circumstances and in
accordance with the guidance issued under Section 409A.

	Each payment under this Agreement, including each installment payment, shall be considered a separate and distinct payment.  For purposes of this Agreement,
each payment is intended to be excepted from Section 409A to the maximum extent provided as follows:  (i) each payment made within the applicable 21⁄2 month period specified in Treas. Reg. §
  1.409A-1(b)(4) is intended to be excepted under the short-term deferral exception; (ii) post-termination medical benefits are intended to be excepted under the medical benefits exception as
specified in Treas. Reg. §  1.409A-1(b)(9)(v)(B); and (iii) to the extent payments are made as a result of an involuntary separation, each payment that is not otherwise excepted under the short-term
deferral exception or medical benefits exception is intended to be excepted under the involuntary pay exception as specified in Treas. Reg. §   1.409A-1(b)(9)(iii).  With respect to payments
subject to Section 409A (and not excepted therefrom), if any, it is intended that each payment is paid on a permissible distribution event and at a specified time consistent with Section 409A.
Neither the Company nor Executive shall have the right to accelerate or defer the delivery of any such payments or benefits except to the extent specifically permitted or required by Section
409A.  Executive shall have no right to designate the date or any payment under this Agreement.  If the sixty (60) day period following separation from service for which severance payments
are to commence begins in one calendar year and ends in a second calendar year, the portion of such payments that are otherwise payable in the first calendar year will be delayed and
commence to be paid in a lump sum within the remainder of the sixty (60) day period that occurs in the second calendar, but only (i) with respect to the portion of such amounts that are payable
within such sixty (60) day period that constitute deferred compensation subject to Section 409A and (ii) to the extent no additional delay is required pursuant to Section 23(c) below.

                                              16

	If Executive is a "specified employee" (as that term is used in Section 409A and regulations and other guidance issued thereunder) on the date of
Executive's separation from service, any benefits payable under this Agreement that constitute non-qualified deferred compensation subject to Section 409A shall be delayed until the earlier of
(i) the first business day following the six-month anniversary of the date of Executive's separation from service, or (ii) the date of Executive's death, but only to the extent necessary to avoid the
adverse tax consequences and penalties under Section 409A.  On the earlier of (x) the first business day following the six-month anniversary of the date of Executive's separation from service,
or (y) Executive's death, the Company shall pay Executive (or Executive's estate or beneficiaries) a lump-sum payment equal to all payments deferred pursuant to the preceding
sentence.

	If any of the reimbursements or in-kind benefits provided for under this Agreement are subject to Section 409A, the following rules shall apply: (i) in no event shall
any such reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred; (ii) the amount of such reimbursable expenses incurred, or
the provision of in-kind benefits, in one tax year shall not affect the expenses eligible for reimbursement or the provision of in-kind benefits in any other tax year; and (iii) the right to such
reimbursement for expenses or provision of in-kind benefits is not subject to liquidation or exchange for any other benefit.

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

PERNIX THERAPEUTICS HOLDINGS, INC.

By:/s/ Kenneth R. Piña

Kenneth R. Piña

                  Senior Vice President & Chief Legal Officer

 

/s/ Angus Smith

           Angus Smith

                                           17

EXHIBIT A

 

Prior Inventions

 

None.

                                           A-1

EXHIBIT B

Release

You, for yourself, your spouse and your agents, successors, heirs, executors, administrators and assigns, hereby irrevocably and unconditionally forever release and discharge Pernix
Therapeutics Holdings, Inc. (the "Corporation"), its parents, divisions, subsidiaries and affiliates and its and their current and former owners, directors, officers,
stockholders, insurers, benefit plans, representatives, agents and employees, and each of their predecessors, successors, and assigns (collectively, the "Releasees"), from
any and all actual or potential claims or liabilities of any kind or nature, including, but not limited to, any claims arising out of or related to your employment and separation from employment with
the Corporation and any services that you provided to the Corporation; any claims that you may have for any benefits under the Employee Retirement Income Security Act of 1974
("ERISA") (except for vested ERISA benefits); any claims that you may have for discrimination, harassment or retaliation of any kind or based upon any legally protected
classification or activity; any claims that you may have under Title VII of the Civil Rights Acts of 1964, the Civil Rights Act of 1866 and 1964, as amended, 42 U.S.C. §   1981, the Age
Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Americans with Disabilities Act, 42 U.S.C. §  1981, 42 U.S.C. §   1983, the Family Medical Leave Act and any
similar state law, the Fair Credit Reporting Act and any similar state law, the Fair Credit Reporting Act, 15 U.S.C. §   1681, et seq., the Worker Adjustment and Retraining
Notification Act, 29 U.S.C. §   2101, et seq., the Equal Pay Act and any similar state law, the New Jersey Law Against Discrimination, the New Jersey Conscientious Employee
Protection Act, the New Jersey Family Leave Act, the New Jersey Wage Payment Law, the New Jersey Wage and Hour Law, the New Jersey Equal Pay Act, and any retaliation claims that you
may have under the New Jersey Workers' Compensation Law, as well as any amendments to any such laws; any claims that you may have for any violation of any federal or state constitutions
or executive orders; any claims for wrongful or constructive discharge, violation of public policy, breach of contract or promise (oral, written, express or implied), personal injury not covered by
workers' compensation benefits, misrepresentation, negligence, fraud, estoppel, defamation, infliction of emotional distress, contribution and any claims that you may have under any other
federal, state or local law, including those not specifically listed in this Release, that you, your heirs, executors, administrators, successors, and assigns now have, ever had or may hereafter
have, whether known or unknown, suspected or unsuspected, up to and including the date of your execution of this Release.

For the purpose of implementing a full and complete release and discharge of the Releasees as set forth above, you acknowledge that this Release is intended to include in its effect,
without limitation, all claims known or unknown that you have or may have against the Releasees which arise out of or relate to your employment, including but not limited to performance or
termination of employment with the Corporation, except for, and notwithstanding anything in this Release to the contrary, claims which cannot be released solely by private agreement.  This
Release also excludes (i) any claims relating to any right you may have to payments pursuant to Section 5(b) or Section 5(c), as applicable, of the Employment Agreement, entered into as of
July 21, 2017, by and between the Corporation and you (the "Employment Agreement"), (ii) any Accrued Obligations (as defined in the Employment Agreement), (iii) any entitlements to vested

                                           B-1

equity rights, (iv) any claim for workers' compensation benefits and (v) any rights you may have to indemnification or directors' and officers' liability insurance under the
Indemnification Agreement.  You further acknowledge and agree that you have received all leave, compensation and reinstatement benefits to which you were entitled through the date of your
execution of this Release (other than the Accrued Obligations), and that you were not subjected to any improper treatment, conduct or actions as a result of a request for leave, compensation
or reinstatement.

You affirm, by signing this Release, that you have not suffered any unreported injury or illness arising from your employment, and that you have not filed with any federal, state
or local court any actions against Releasees relating to or arising out of your employment with or separation from the Corporation.

Nothing in this Agreement restricts or prohibits you from initiating communications directly with, responding to any inquiries from, providing testimony before, providing confidential
information to, reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation directly with a self-regulatory authority or a government agency or
entity, including the U.S. Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Department of Justice, the Securities and Exchange
Commission, the Congress, and any agency Inspector General (collectively, the "Regulators"), or from making other disclosures that are protected under the whistleblower
provisions of state or federal law or regulation.  However, to the maximum extent permitted by law, you are waiving your right to receive any individual monetary relief from the Company or any
others covered by the Release resulting from such claims or conduct, regardless of whether you or another party has filed them, and in the event you obtain such monetary relief the Company
will be entitled to an offset for the payments made pursuant to this Agreement.  This Agreement does not limit your right to receive an award from any Regulator that provides
awards for providing information relating to a potential violation of law.

Pursuant to 18 USC §   1833(b), you understand that an individual may not be held liable under any criminal or civil federal or state trade secret law for disclosure of a trade
secret: (i) made in confidence to a government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law or (ii) in a
complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, you understand that an individual suing an employer for retaliation based on the
reporting of a suspected violation of law may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing the
trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order.  Nothing in this Release is intended to conflict with 18 USC §   1833(b) or
create liability for disclosures of trade secrets that are expressly allowed by 18 USC §   1833(b).

You acknowledge:

	That you were provided twenty-one (21) full days during which to consider whether to sign this Release.  If you have signed this Release prior to the
expiration of the 21-day period, you have voluntarily elected to forego the remainder of that period. 

	That you have carefully read and fully understand all of the terms of this Release, including its Attachment A.

                                           B-2

	That you understand that by signing this Release, you are waiving your rights under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act,
29 U.S.C. § 621, et seq., and that you are not waiving any rights arising after the date that this Release is signed.

	That you have been given an opportunity to consult with anyone you choose, including an attorney, about this Release.

	That you understand fully the terms and effect of this Release and know of no claim that has not been released by this Release.  

	That these terms are final and binding on you.

	That you have signed this Release voluntarily, and not in reliance on any representations or statements made to you by any employee or officer of the Corporation or any of its
subsidiaries.

	That you have seven (7) days following your execution of this Release to revoke it in writing, and that this Release is not effective or enforceable until after this seven (7) day period has
expired without revocation.  If you wish to revoke this Release after signing it, you must provide written notice of your decision to revoke this Release to the Corporation, to the attention of the
Vice President, Human Resources, Pernix Therapeutics Holdings, Inc., 10 North Park Place, Suite 201, Morristown, NJ 07960, by no later than 11:59 p.m. on the seventh calendar day after the
date on which you have signed this Release. 

PLEASE READ CAREFULLY.  THIS RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

ACKNOWLEDGED AND AGREED

	
______________________________
Angus Smith
	
  
	
______________________________
Date

   

                                           B-3

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