Document:

Form of Employment Agreement between Katonah Debt Advisors and John M. Stack

 Exhibit 10.11 

 

 

 December 14, 2009 

Mr. John M. Stack 
 167 West Trail

 Stamford, CT 06903 
 Dear Jack:

 This letter will confirm our offer to you of employment with Katonah Debt Advisors, L.L.C. (“KDA”) (the
“Company”), under the terms and conditions that follow. This letter supersedes the letter agreement dated July 12, 2005 between you and KDA in its entirety effective as of the date hereof. 

 

	 	1.	Term, Position and Duties. 

  

	 	(a)	You will be employed as a Managing Director. You will report to the Portfolio Manager or Managers of various funds managed by the Company. 

 

	 	(b)	You agree to perform the duties of your position and such other duties as may reasonably be assigned to you from time to time including, but not limited to identifying,
analyzing and monitoring loans, bonds, and other instruments purchased or held by various types of collateralized loan obligation (“CLO”) funds, synthetic collateralized debt obligation (“CDO”) funds, and other credit-based funds
(collectively “Funds”) as directed by the Portfolio Manager. You also agree that you will devote your full business time and your best efforts, business judgment, skill and knowledge exclusively to the advancement of the business and
interests of the Company. 

  

	 	(c)	In addition, you will be a Vice President for Kohlberg Capital Corporation (the “Corporation”), for which the Company is a wholly-owned affiliate.

  

	 	2.	Compensation and Benefits. During your employment, as compensation for all services performed by you for the Company and its Affiliates, the Company will provide
you the following pay and benefits: 

  

	 	(a)	Base Salary. The Company will pay you a base salary at the rate of Two Hundred Twenty Five Thousand Dollars ($225,000) per year, payable in accordance with the
regular payroll practices of the Company and subject to increase from time to time by the Committee in its discretion. 

  

 
 295 Madison
Avenue, 6th Floor
Ÿ New York, NY 10017 

Telephone (212) 455-8300
Ÿ Facsimile (212) 983-7654 

			
	Mr. John M. Stack	  	
	November 6, 2009	  	Page 2

  

	 	(b)	Bonus Compensation. During employment, you will be considered for a target annual bonus of One Hundred and Seventy Five Thousand Dollars ($175,000) each calendar
year. You will be considered for an increase in the annual bonus amount, solely at the discretion of the Committee, based on the future growth and performance of the Company. Bonus awards will be determined by the Committee against goals established
annually by the Portfolio Manager after consultation with you. The bonus will be paid on or about January 31 of each succeeding calendar year. 

  

	 	(c)	Participation in Employee Benefit Plans. You will be entitled to participate in all employee benefit plans from time to time in effect for employees of the
Company generally, except to the extent such plans are duplicative of benefits otherwise provided you under this agreement. Your participation will be subject to the terms of the applicable plan documents and generally applicable Company policies.

  

	 	3.	Confidential Information and Restricted Activities. 

  

	 	(a)	Confidential Information. During the course of your employment with the Company, you will learn of Confidential Information, as defined below, and you may
develop Confidential Information on behalf of the Company. You agree that you will not use or disclose to any Person (except as required by applicable law or for the proper performance of your regular duties and responsibilities for the Company) any
Confidential Information obtained by you incident to your employment or any other association with the Company or any of its Affiliates. You understand that this restriction shall continue to apply after your employment terminates, regardless of the
reason for such termination. 

  

	 	(b)	Protection of Documents. All documents, records and files, in any media of whatever kind and description, relating to the business, present or otherwise, of the
Company or any of its Affiliates, and any copies, in whole or in part, thereof (the “Documents”), whether or not prepared by you shall be the sole and exclusive property of the Company. You agree to safeguard all Documents and to surrender
to the Company, at the time your employment terminates or at such earlier time or times as the Committee or its designee may specify, all Documents then in your possession or control. 

 

	 	(c)	Non-Competition. You acknowledge that in your employment with the Company you will have access to Confidential Information which, if disclosed, would assist in
competition against the Company and its Affiliates and that you will also generate goodwill for the Company and its Affiliates in the course of your employment. Therefore, you agree that the following restrictions on your activities during and after
your employment are necessary to protect the goodwill, Confidential Information and other legitimate interests of the Company and its Affiliates: 

  

	 	(i)	 While you are employed by the Company and for six (6) months after your employment terminates (in the aggregate, the “Non-Competition
Period”), you agree that you will not, without the prior written consent of the Company, directly or 

			
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indirectly, own, manage, operate, join, control, finance, or participate in the ownership, marketing, management, operation, control, fundraising or financing of, or be connected as an officer,
director, employee, partner, principal, agent, representative, consultant, or otherwise use or permit your name to be used in connection with any business or enterprise engaged in the United States in the business of structuring CDO or CLO
securitization vehicles, analyzing and acquiring loans and other assets to be held by CDO or CLO vehicles, arranging for the issuance of debt and preferred securities by CDO or CLO vehicles, acting as collateral managers for such securitizations, or
performing similar functions. 

  

	 	(ii)	You agree that during the Non-Competition Period, you will not, directly or through any other Person, (i) hire any employee of the Company or any of its Affiliates
or seek to persuade any employee of the Company or any of its Affiliates to discontinue employment, (ii) solicit or encourage any customer or investor of the Company or any of its Affiliates or independent contractor providing services to the
Company or any of its Affiliates to terminate or diminish its relationship with them or (iii) seek to persuade any customer or investor or prospective customer or investor of the Company or any of its Affiliates to conduct with anyone else any
business or activity that such customer or investor or prospective customer or investor conducts or could conduct with the Company or any of its Affiliates. 

 

	 	(d)	In signing this agreement, you give the Company assurance that you have carefully read and considered all the terms and conditions of this agreement, including the
restraints imposed on you under this Section 3. You agree without reservation that these restraints are necessary for the reasonable and proper protection of the Company and its Affiliates and that each and every one of the restraints is
reasonable in respect to subject matter, length of time and geographic area. You further agree that, were you to breach any of the covenants contained in this Section 3, the damage to the Company and its Affiliates would be irreparable. You
therefore agree that the Company, in addition to any other remedies available to it, shall be entitled to preliminary and permanent injunctive relief against any breach or threatened breach by you of any of those covenants, without having to post
bond. You and the Company further agree that, in the event that any provision of this Section 3 is determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a
geographic area or too great a range of activities, that provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law. It is also agreed that each of the Company’s Affiliates shall have the right to
enforce all of your obligations to that Affiliate under this agreement, including without limitation pursuant to this Section 3. 

  

	 	4.	Termination of Employment. Your employment under this agreement may be terminated at any time pursuant to this Section 4. 

 

	 	(a)	 The Company may terminate your employment for cause upon notice to you setting forth in reasonable detail the nature of the cause. The following shall
constitute cause for 

			
	Mr. John M. Stack	  	
	November 6, 2009	  	Page 4

  

	 	
termination: (i) your repeated material failure to perform (other than by reason of disability), or gross negligence in the performance of, your duties and responsibilities to the Company or
any of its Affiliates which failure is not cured within thirty (30) days after written notice of such failure or negligence is delivered to you; (ii) your material breach of this agreement or any other agreement between you and the Company
or any of its Affiliates which breach is not cured within thirty (30) days after written notice of such breach is delivered to you; or (iii) commission by you of a felony involving moral turpitude or fraud with respect to the Company or
any of its Affiliates. The Company also may terminate your employment at any time without cause upon notice to you. 

  

	 	(b)	This agreement shall automatically terminate in the event of your death during employment, and you shall be entitled to the severance payments set forth under 5
(a) below. In the event of your death, any amounts owed to you under this agreement will be paid to the beneficiary designated in writing by you or, if no beneficiary has been so designated by you, to your estate. In the event you become
disabled during employment and, as a result, are unable to continue to perform substantially all of your duties and responsibilities under this agreement, the Company will continue to pay you your base salary and to provide you benefits in
accordance with Section 2(a) above, to the extent permitted by plan terms, for up to twelve (12) weeks of disability during any period of three hundred and sixty-five (365) consecutive calendar days. If you are unable to return to
work after twelve (12) weeks of disability, the Company may terminate your employment, upon written notice to you, and you shall be entitled to the severance payments set forth under 5(a) below. If any question shall arise as to whether you are
disabled to the extent that you are unable to perform substantially all of your duties and responsibilities for the Company and its Affiliates, you shall, at the Company’s request, submit to a medical examination by a physician selected by the
Company to whom you or your guardian, if any, has no reasonable objection to determine whether you are so disabled and such determination shall for the purposes of this agreement be conclusive of the issue. If such a question arises and you fail to
submit to the requested medical examination, the Company’s determination of the issue shall be binding on you. 

  

	 	(c)	 You may terminate your employment hereunder for “Good Reason” by providing written notice to the Company of the condition giving rise to the
Good Reason no later than thirty (30) days following the occurrence of the condition; by giving the Company thirty (30) days to remedy the condition; and, if the Company fails to remedy the condition, by terminating your employment within
ten (10) days following the expiration of such thirty (30) day period. For purposes of this letter agreement, the term “Good Reason” means, without your consent, the occurrence of one or more of the following events:
(i) material diminution in the nature or scope of your responsibilities, duties or authority as contemplated by this letter agreement; (ii) failure by the Company to pay the minimum Bonus Compensation set forth in 2(b) above in any year
under this letter agreement if you have achieved the annual financial target referenced therein; or (iii) your being required to relocate to a principal place of employment outside of the New York metropolitan area. For purposes of this
paragraph 4(c) a change in reporting relationships resulting from a 

			
	Mr. John M. Stack	  	
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Change in Control will constitute Good Reason. In addition, a termination of your employment by you for any reason during the 90-day period immediately following a Change in Control shall be
deemed to be a termination for Good Reason for all purposes of this letter agreement. 

  

	 	5.	Severance Payments and Other Matters Related to Termination. 

  

	 	(a)	In the event of termination of your employment by the Company without cause, the Company will continue to pay you your base salary (“severance payments”) and
will continue to contribute to the premium cost of your health insurance on the same terms and conditions as it contributes for active employees provided that you make a timely election under the federal law known as “COBRA”. The Company
may, in its sole discretion, elect to cease the continuation of base salary and contributions toward health insurance premiums at any point after you have received six (6) months of base salary continuation and health insurance contributions
(or one (1) year if you are terminated by the Company within ninety (90) days of the completion of a Change in Control) provided that it also releases you from your remaining obligation under Section 3(c)(i) above. The Company will
also pay you on the date of termination any base salary earned but not paid through the date of termination and pay for any vacation time accrued but not used to that date. In addition, the Company will pay you any bonus compensation and profit
sharing payment to which you are entitled in accordance with Sections 2(b) and 2(c) above, prorated to the date of termination and payable at the time such monies are payable to Company executives generally. Any obligation of the Company to provide
you severance payments or other payments or benefits under this Section 5(a) is conditioned, however, upon your signing and not revoking a release of claims in the form provided by the Company (the “Employee Release”), which shall be
delivered to you not later than ten (10) business days following the date of termination and you shall be required to execute the Employee Release and return it to the Company, if at all, not later than the date determined by the Company to be
the last day of the period it must provide to you by law to consider the Employee Release. All severance payments will be in the form of salary continuation, payable in accordance with the normal payroll practices of the Company, and will begin at
the Company’s next regular payroll period following the effective date of the Employee Release, but shall be retroactive to the date of termination. Notwithstanding anything else contained in this agreement, no bonus or severance payments or
other payments or benefits will be due and payable under any provision of this Section 5(a) until the next regular Company payday following the effective date of the Employee Release. 

 

	 	(b)	In the event of termination of your employment by the Company for cause or by you for any reason, the Company will pay you any base salary earned but not paid through
the date of termination and pay for any vacation time accrued but not used to that date. The Company shall have no obligation to you for any bonus or other incentive compensation, benefits continuation or severance payments.

			
	Mr. John M. Stack	  	
	November 6, 2009	  	Page 6

  

	 	(c)	In the event of termination of your employment by death, or by disability, the Company will pay you any base salary earned but not paid through the date of termination,
pay for any vacation time accrued but not used to that date, and any bonus or other incentive compensation to which you are entitled in accordance with Sections 2(b) and 2(c) above, prorated to the date of termination and payable at the time such
bonuses are payable to Company executives generally. The Company shall have no obligation to you for any severance payments or benefits continuation. 

  

	 	(d)	Except for any rights you may have under Section 5(a) above or under the federal law known as “COBRA” to continue participation in the Company’s
group health and dental plans at your cost, benefits shall terminate in accordance with the terms of the applicable benefit plans based on the date of termination of your employment, without regard to any continuation of base salary or other payment
to you following termination. Your Option and/or Restricted Stock Agreement will govern your exercise, if any, of your option following termination of employment. 

 

	 	(e)	Provisions of this agreement shall survive any termination if so provided in this agreement or if necessary or desirable to accomplish the purposes of other surviving
provisions, including without limitation your obligations under Section 3 of this agreement. The obligation of the Company to make payments to you under this Section 5 is expressly conditioned upon your continued full performance of
obligations under Section 3 hereof. Upon termination by either you or the Company, all rights, duties and obligations of you and the Company to each other shall cease, except as otherwise expressly provided in this agreement.

  

	 	6.	Definitions. For purposes of this agreement, the following definitions apply: 

“Affiliates” means all persons and entities directly or indirectly controlling, controlled by or under common
control with the Company, where control may be by management authority, equity interest or otherwise. 

“Change in Control” means: 
  

	 	(i)	The acquisition by any person, entity or “group”, within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, (excluding, for this purpose,
the Corporation or its Affiliates) of beneficial ownership of 33% or more of either the then outstanding shares of the Corporation’s common stock or the combined voting power of the Corporation’s then outstanding voting securities entitled
to vote generally in the election of directors. 

  

	 	(ii)	 Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board, provided that any person who first becomes a director subsequent to the date hereof whose recommendation, election or nomination for election by the Company’s stockholders was approved by a vote of at least a majority of the
directors then comprising the Incumbent 

			
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Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the
directors of the Company as described in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) shall be, for the purposes of this Agreement, considered as though such person were a member of the Incumbent Board; or

  

	 	(iii)	Approval by the stockholders of the Company of a reorganization share exchange, merger or consolidation with respect to which, in any such case, the persons who were
the stockholders of the Company immediately prior to such reorganization, share exchange, merger or consolidation do not, immediately thereafter, own more than 50% of the combined voting power entitled to vote in the election of directors of the
reorganized, merged or consolidated company; or 

  

	 	(iv)	Liquidation or dissolution of the Company or a sale of all or substantially all of the assets of the Company. 

“Confidential Information” means any and all information of the Company and its Affiliates that is not generally
available to the public. Confidential Information also includes any information received by the Company or any of its Affiliates from any Person with any understanding, express or implied, that it will not be disclosed. Confidential Information does
not include information that enters the public domain, other than through your breach of your obligations under this agreement. 

“Person” means an individual, a corporation, a limited liability company, an association, a partnership, an
estate, a trust or any other entity or organization, other than the Company or any of its Affiliates. 
  

	 	7.	Conflicting Agreements. You hereby represent and warrant that your signing of this agreement and the performance of your obligations under it will not breach or
be in conflict with any other agreement to which you are a party or are bound and that you are not now subject to any covenants against competition or similar covenants or any court order that could affect the performance of your obligations under
this agreement. You agree that you will not disclose to or use on behalf of the Company any proprietary information of a third party without that party’s consent. 

 

	 	8.	Withholding. All payments made by the Company under this agreement shall be reduced by any tax or other amounts required to be withheld by the Company under
applicable law. 

  

	 	9.	Assignment. Neither you nor the Company may make any assignment of this agreement or any interest in it, by operation of law or otherwise, without the prior
written consent of the other; provided, however, that the Company may assign its rights and obligations under this agreement without your consent to one of its Affiliates or to any Person with whom the Company shall hereafter affect a
reorganization, consolidate with, or merge into or to whom it transfers all or substantially all of its properties or assets. This Agreement shall inure to the benefit of and be binding upon you and the Company, and each of our respective
successors, executors, administrators, heirs and permitted assigns. 

			
	Mr. John M. Stack	  	
	November 6, 2009	  	Page 8

  

	 	10.	Severability. If any portion or provision of this agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then
the remainder of this agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this
agreement shall be valid and enforceable to the fullest extent permitted by law. 

  

	 	11.	Miscellaneous. This agreement sets forth the entire agreement between you and the Company and replaces all prior and contemporaneous communications, agreements
and understandings, written or oral, with respect to the terms and conditions of your employment. This agreement may not be modified or amended, and no breach shall be deemed to be waived, unless agreed to in writing by you and an expressly
authorized representative of the Committee. The headings and captions in this agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement. This agreement may be executed in two or more
counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument. This is a Delaware contract and shall be governed and construed in accordance with the laws of the State of Delaware, without
regard to the conflict of laws principles thereof. 

  

	 	12.	Notices. Any notices provided for in this agreement shall be in writing and shall be effective when delivered in person or deposited in the United States mail, postage
prepaid, and addressed to you at your last known address on the books of the Company or, in the case of the Company, to it at its principal place of business, attention of the Committee, or to such other address as either party may specify by notice
to the other actually received. 

 If the foregoing is acceptable to you, please sign this letter in the space
provided and return it to me at your earliest convenience. We will provide a countersigned copy for your records. 
 Sincerely yours,

  

	
	
	 /s/ E.A. Kratzman

	E.A. Kratzman
	President and Portfolio Manager
	
	Accepted and agreed:
	
	 /s/ John M. Stack

	John M. Stack
	
	 December 14, 2009

	Date
	
	cc: Michael WirthCertificate of Designation

 Exhibit 4.1 

CERTIFICATE OF DESIGNATION 

OF 
 SERIES B
SENIOR CONVERTIBLE PREFERRED SHARES 
 OF 

FORBES ENERGY SERVICES LTD. 

Pursuant to the authority conferred upon the board of directors (the “Board of Directors”) of Forbes Energy Services Ltd. (the
“Company”) by its bye-laws (the “Bye-laws”) a series of preferred shares, par value $0.01 each (shares of any authorized series, the “Preference Shares”) be and it hereby is established, in the number and having the
designation, preferences, terms, qualifications, limitations, restrictions and relative rights, including voting rights, set forth below: 

Section 1. Designation and Amount. The shares of such series shall be designated as “Series B Senior Convertible
Preferred Shares” (the “Series B Preferred Shares”) and the number of shares constituting such series shall be eight hundred and twenty-five thousand (825,000). 

Section 2. Dividends and Distributions. 

(A) Subject to the provisions for adjustment hereinafter set forth, and subject to the Companies Act 1981 (the “Act”), the
holders of Series B Preferred Shares shall be entitled to receive out of funds legally available for the purpose, preferential dividends in an amount per share (rounded to the nearest cent) equal to five percent (5%) of the Series B Original
Issue Price (as defined in paragraph 2(B) of this Section 2) (or $1.25) per annum per share, payable quarterly on the 28th day of February, May, August and November, respectively (the “Quarterly Payment Date”), in each year during
which any Series B Preferred Shares remain issued and outstanding (the “Preferential Dividends”). The Preferential Dividends shall accrue from the Issuance Date (as defined in paragraph 8(A) of Section 8), whether or not declared;
shall be fully cumulative, prior and in preference to any declaration or payment of any dividend or other distribution on any other class or series of capital stock of the Company that is junior to the Series B Preferred Shares including, for
greater certainty, the Series A Junior Participating Preferred Shares described in the Company’s rights agreement with CIBC Mellon Trust Company, as rights agent (the “Series A Junior Participating Preferred Shares”), and the common
shares, par value $0.01 each (the “Common Shares”) of the Company. Except with the consent in writing of the holders of the Series B Preferred Shares, no dividend will at any time be declared and paid on or set apart for payment on any
other class or series of capital stock of the Company that ranks in parity with the Series B Preferred Shares (the “Parity Shares”) in any quarter unless the Preferential Dividends on all the Series B Preferred Shares outstanding prior to
such payment have been declared and paid through the most recent Quarterly Payment Date either prior to or coincidental with the payment of such dividends on the Parity Shares. The Preferential Dividends shall be payable, at the sole election of the
Company, (i) in cash or (ii) in kind in the form of additional Series B Preferred Shares (with an issue price equal to the Series B Original Issue Price). 

(B) If the Company elects to pay a Preferential Dividend in kind in the form of additional Series B Preferred Shares, subject to
paragraph 7(D) of Section 7, the Company shall 

 
issue and deliver to each holder of the Series B Preferred Shares certificates representing the number of additional Series B Preferred Shares equal to the Preferential Dividend not paid in cash
divided by twenty-five dollars ($25.00) (the “Series B Original Issue Price”). Subject to paragraph 7(D) of Section 7, any fractional share owing such holder of Series B Preferred Shares shall be held by the Company and paid in the
form of a whole share when any fractional shares owed to such holder of Series B Preferred Shares equal at least one whole share and any such fractional shares thereafter to be held and accounted for by the Company in accordance with generally
accepted accounting principles until paid as a whole share or shares. The Company shall at all times when the Series B Preferred Shares shall be outstanding, reserve and keep available out of its authorized but unissued capital stock such number of
its duly authorized Series B Preferred Shares as shall be sufficient to pay in kind all unpaid and potential Preferential Dividends that the outstanding Series B Preferred Shares (and any Series B Preferred Shares that may be issued as Preferential
Dividends) may accrue prior to the Maturity Date (as defined in Section 10) (the “Potential In-Kind Dividends”). If at any time the number of authorized but unissued Series B Preferred Shares shall not be sufficient to pay the
Potential In-Kind Dividends, the Company shall take such corporate action as may be necessary to increase its authorized but unissued Series B Preferred Shares to such number of shares as shall be sufficient for such purposes, including, amending
this Certificate of Designation pursuant to Section 12. 
 (C) Notwithstanding the foregoing, in the event that
(i) the payment of a Preferential Dividend in cash would cause the Company to violate a covenant (“Cash Restriction”) under any of the agreements governing the Company’s debt facilities in existence on the Issuance Date (as
defined in Section 8), as subsequently amended, supplemented, modified or replaced (the “Debt Agreements”), and (ii) the payment of a Preferential Dividend in kind would trigger a change of control provision in any of the Debt
Agreements (“In-Kind Restriction”), the Company’s obligation to pay, in cash or in kind, Preferential Dividends would be suspended until the earlier to occur of and, with respect to subparagraph (a), only to the extent, (a) the
Cash Restriction or the In-Kind Restriction is removed or lapses in applicability, or (b) February 16, 2015. During any period of time when the payment of Preferential Dividends is suspended, the Series B Preferred Shares shall continue to
accrue and accumulate Preferential Dividends. 
 Section 3. Voting Rights. 

(A) The holders of Series B Preferred Shares shall not be entitled to any voting rights, except as provided in paragraph 3(B) of this
Section 3, the Bye-laws or otherwise under the Act. 
 (B) If the Preferential Dividends accrued on the Series B Preferred
Shares for eight or more quarterly dividend periods, whether consecutive or not, shall not have been declared and paid in full, either in cash or in kind, the holders of record of the Series B Preferred Shares shall be entitled to notice of any
shareholder meeting in accordance with the Bye-Laws and each holder of Series B Preferred Shares shall in such event be entitled to vote with the holders of the Common Shares, upon all matters presented to the shareholders of the Company for their
action or consideration at any meeting of shareholders of the Company (or by written consent of shareholders in lieu of meeting), to cast the number of votes equal to the number of 

 

 2 

 
whole Common Shares into which the Series B Preferred Shares held by such holder are convertible (as set out in Section 7) as of the record date for determining shareholders entitled to vote
on such matter (the “Preferential Voting Rights”). Except as provided by law or elsewhere herein, holders of Series B Preferred Shares shall vote together with the holders of Common Shares as a single class. 

(C) The voting rights provided in paragraph 3(B) of this Section 3 shall cease upon payment in full, in cash or in kind, by the
Company of all the dividends then in arrears to which the holders are entitled on the Series B Preferred Shares. 

Section 4. Certain Restrictions. 

(A) Whenever Preferential Dividends have not been paid through the most recent Quarterly Payment Date, thereafter and until all such
unpaid Preferential Dividends on Series B Preferred Shares outstanding shall have been paid in full or set aside for payment on the date declared for payment, and in addition to any and all other rights which any holder of Series B Preferred Shares
may have in such circumstances, the Company shall not: 
 (i) declare or pay dividends on, make any other
distributions on, or redeem or purchase or otherwise acquire for consideration, any shares ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series B Preferred Shares; 

(ii) declare or pay dividends on or make any other distributions on any Parity Shares, other than in accordance with
paragraph 2(A) of Section 2; 
 (iii) except as permitted by subparagraph (iv) of this
paragraph 4(A), redeem or purchase or otherwise acquire for consideration any shares ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series B Preferred Shares, provided, however, that
the Company may at any time redeem, purchase or otherwise acquire shares of any such parity shares in exchange for any shares of the Company ranking junior (both as to dividends and upon liquidation, dissolution or winding up) to the Series B
Preferred Shares; or 
 (iv) purchase or otherwise acquire for consideration any Series B Preferred Shares, or
any shares ranking on a parity with the Series B Preferred Shares (either as to dividends or upon liquidation, dissolution or winding up), except in accordance with a purchase offer made to all holders of such shares upon such terms as the Board of
Directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective
series or classes. 
 (B) The Company shall not permit any Subsidiary (as hereinafter defined) of the Company to purchase or
otherwise acquire for consideration any shares of the Company unless the Company could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. A “Subsidiary” of the
Company shall mean any corporation or other entity of which securities or other ownership interests having ordinary 

 

 3 

 
voting power sufficient to elect a majority of the Board of Directors or other persons performing similar functions are beneficially owned, directly or indirectly, by the Company or by any
corporation or other entity that is otherwise controlled by the Company. 
 (C) While any Series B Preferred Shares remain
issued and outstanding, the Company shall not issue any series of Preference Shares with rights and privileges senior to or greater than those of the Series B Preferred Shares. 

Section 5. Reacquired Shares. Any Series B Preferred Shares purchased or otherwise acquired by the Company in any manner
whatsoever shall be retired and canceled promptly after the acquisition thereof. All such shares upon their retirement and cancellation shall become authorized but unissued Preference Shares, without designation as to series, and such shares may be
reissued as part of a new series of Preference Shares to be created by resolution or resolutions of the Board of Directors in accordance with the Bye-laws. 

Section 6. Liquidation, Dissolution or Winding Up. Upon any voluntary or involuntary liquidation, dissolution or winding up
of the Company, no distribution shall be made (i) to the holders of shares ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series B Preferred Shares including, for greater certainty, the Series A
Junior Participating Preferred Shares and the Common Shares of the Company, unless the holders of Series B Preferred Shares shall have received, subject to adjustment as provided in Section 8, an amount equal to the Series B Original Issue
Price per share plus an amount equal to accumulated and unpaid dividends and distributions thereon to the date of such payment, and (ii) to the holders of shares ranking on a parity upon liquidation, dissolution or winding up with the Series B
Preferred Shares, unless simultaneously therewith distributions are made ratably on the Series B Preferred Shares and all other such parity stock in proportion to the total amounts to which the holders of Series B Preferred Shares are entitled under
clause (i) of this sentence and to which the holders of such parity shares are entitled, in each case upon such liquidation, dissolution or winding up. The amount to which holders of Series B Preferred Shares may be entitled upon liquidation,
dissolution or winding up of the Company pursuant to clause (i) of the foregoing sentence is hereinafter referred to as the “Liquidation Amount.” 

Section 7. Conversion Rights. 

(A) Each of the Series B Preferred Shares shall be convertible, at the option of the holder thereof, at any time and from time to time,
and without the payment of additional consideration by the holder thereof, into thirty-six (36) fully paid and nonassessable Common Shares (the “Conversion Rate”). Such Conversion Rate shall be subject to adjustment as provided in
Section 8 below. In the event of a Redemption Notice (as defined below) of any Series B Preferred Shares pursuant to Section 9, the conversion rights of the shares designated for redemption shall terminate at the close of business on the
last full day preceding the date fixed for redemption, unless the redemption price is not fully paid on such redemption date, in which case the conversion rights for such shares shall continue until such price is paid in full. In the event of a
liquidation, dissolution or winding up of the Company, the conversion rights shall terminate at the close of business on the last full day preceding the date fixed for the payment of the Liquidation Amount to the holders of Series B Preferred
Shares. 
  

 4 

 (B) Notwithstanding anything herein, no holder of Series B Preferred Shares shall be
entitled to effect and no holder shall effect any conversion of Series B Preferred Shares to the extent that after giving effect to such conversion and taking into account any Common Shares already owned by such holder (together with the
holder’s affiliates), the holder (together with the holder’s affiliates) would beneficially own twenty percent (20%) or more of the number of Common Shares outstanding immediately after giving effect to such conversion. 

(C) No fractional Common Shares shall be issued upon conversion of the Series B Preferred Shares. In lieu of any fractional Common Share
to which the holder would otherwise be entitled, the Company shall pay cash equal to such fraction multiplied by the fair market value (as defined below), unless the Company determines, in its sole discretion, that such cash payment would cause the
Company to be in violation of a Debt Agreement, in which case any fractional Common Share to which the holder would otherwise be entitled shall be forfeited. For the purpose hereof, the fair market value of a Common Share (the “Common Share
Fair Market Value”) shall be determined by: 
 (i) its trailing five (5) day volume weighted average
trading price of the Common Shares on the date immediately preceding the date of conversion of such Series B Preferred Shares on (a) the Toronto Stock Exchange (the “TSX”), converted into U.S. dollars at the average noon rate for
converting Canadian dollars into U.S dollars as quoted by the Bank of Canada (or, if no longer available, by another institution selected by the Board of Directors) during such five (5) day trading period; or (b) on such other market or
exchange as the Common Shares may then trade, in the event that the Common Shares are not then traded on the TSX; or 

(ii) the Board of Directors in good faith, in the event that the Common Shares are not then traded on any market or
exchange; 
 (D) In order for a holder of Series B Preferred Shares to voluntarily convert Series B Preferred Shares into Common
Shares, such holder shall request from the Company the total number of Common Shares outstanding and the Conversion Rate, as adjusted pursuant to Section 8, if applicable. The chief executive officer or chief financial officer of the Company
shall provide the holder with such information as soon as reasonably practicable, but in any event within one (1) business day after receipt of notice of the request. After receiving this information from the Company, the holder desiring to
convert shall, within one (1) business day, provide the Company with a certificate, in the form attached hereto as Exhibit A (the “Conversion Certificate”), certifying (i) the number of Common Shares currently held by such holder
(together with such holder’s affiliates), (ii) the number of Series B Preferred Shares that the holder elects to convert, (iii) the name or the names of the nominees in which such holder wishes the certificate or certificates of
Common Shares to be issued and the number of Common Shares that will be held by such holder and such holder’s affiliates after the conversion and (iv) whether, based on the number of Common Shares outstanding represented by the Company,
the conversion complies with paragraph (B) of this Section 7. Together with the Conversion Certificate, the holders should provide the Company with the certificate or certificates for such Series B Preferred Shares (or, if such registered
holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Company to indemnify the Company against any claim that may be made against the Company

  

 5 

 
on account of the alleged loss, theft or destruction of such certificate), at the principal office of the Company’s transfer agent for the Series B Preferred Shares (or at the principal
office of the Company if the Company serves as its own transfer agent for the Series B Preferred Shares). 
 Absent manifest
error on the Conversion Certificate, the close of business on the date of receipt by the Company’s transfer agent (or by the Company if the Company serves as its own transfer agent) of such Conversion Certificate and such Series B Preferred
Share certificates (or lost certificate affidavit and agreement) shall be the time of conversion (the “Conversion Time”) and the Company shall cause the Company’s transfer agent for its Common Shares to, as soon as practicable after
the Conversion Time, (a) issue and deliver to such holder of Series B Preferred Shares, or to his, her or its nominees, a certificate or certificates for the number of Common Shares issuable upon such conversion in accordance with the
provisions hereof and a certificate for the number (if any) of the Series B Preferred Shares represented by the surrendered certificate that were not converted into Common Shares, (b) if required by paragraph 7(C) of this Section 7, pay in
cash such amount as provided therein in lieu of any fraction of a Common Share otherwise issuable upon such conversion and (c) pay in cash or in kind (as provided in Section 2) all dividends (accumulated but unpaid through the Conversion
Time) on the Series B Preferred Shares converted. Business day means any day, other than a Saturday or a Sunday, upon which banks are open for business in Toronto, Ontario and Houston, Texas. If the Company elects to pay such accumulated but unpaid
dividends in kind, the holder submitting the Series B Preferred Shares for conversion under this Section 7 shall be deemed to have also submitted for conversion the Series B Preferred Shares otherwise payable under this subparagraph
(b) (the “In-Kind Share Conversion”), which In-Kind Share Conversion will be added to the other Series B Preferred Shares of such holder submitted for conversion for purposes of the fractional share calculation under subparagraph
(b) of this paragraph 7(D) of Section 7, if applicable. The Common Shares issuable upon conversion of the Series B Preferred Shares submitted for conversion under this Section 7 (along with any such shares that are deemed to be
converted under this Section 7) shall be deemed to be outstanding of record as of the date on which the Conversion Time occurs. 

(E) The Company shall at all times when the Series B Preferred Shares shall be outstanding, reserve and keep available out of its
authorized but unissued capital stock, for the purpose of effecting the conversion of the Series B Preferred Shares, such number of its duly authorized Common Shares as shall from time to time be sufficient to effect the conversion of all
outstanding Series B Preferred Shares (including any In-Kind Share Conversion); and if at any time the number of authorized but unissued Common Shares shall not be sufficient to effect the conversion of all then outstanding Series B Preferred
Shares, the Company shall take such corporate action as may be necessary to increase its authorized but unissued Common Shares to such number of Common Shares as shall be sufficient for such purposes, including, without limitation, engaging in best
efforts to obtain the requisite shareholder approval of any necessary amendment to the Bye-laws. Before taking any action which would cause an adjustment to the Conversion Rate such that the Series B Original Issue Price per share divided by the
Conversion Rate would be less than the then par value of the Common Shares issuable upon conversion of the Series B Preferred Shares, the Company will take any corporate action which may, in the opinion of its counsel, be necessary in order that the
Company may validly and legally issue fully paid and nonassessable Common Shares at such adjusted Conversion Rate. 
  

 6 

 (F) All Series B Preferred Shares which shall have been surrendered for conversion as herein
provided shall no longer be deemed to be outstanding and all rights with respect to such shares shall immediately cease and terminate at the Conversion Time, except only the right of the holders thereof to receive Common Shares in exchange therefor,
to receive payment in lieu of any fraction of a share otherwise issuable upon such conversion as provided in paragraph 7(C) of this Section 7 and to receive payment of any dividends pursuant to paragraph 7(D)(iii) of this Section 7. Upon
any such conversion, no adjustment to the Conversion Rate shall be made for any accumulated but unpaid dividends on the Series B Preferred Shares surrendered for conversion or on the Common Shares delivered upon conversion. 

(G) The Company shall pay any and all issue and other similar taxes that may be payable in respect of any issuance or delivery of Common
Shares upon conversion of Series B Preferred Shares pursuant to this Section 7. The Company shall not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of Common Shares in
a name other than that in which the Series B Preferred Shares so converted were registered, and no such issuance or delivery shall be made unless and until the person or entity requesting such issuance has paid to the Company the amount of any such
tax or has established, to the satisfaction of the Company, that such tax has been paid. 
 Section 8. Certain
Reclassifications and Other Events. 
 (A) If the Company shall at any time or from time to time after May 28, 2010
(the “Issuance Date”) effect a subdivision of the outstanding Common Shares, the Conversion Rate in effect immediately before that subdivision shall be proportionately increased so that the number of Common Shares issuable on conversion of
each Series B Preferred Share shall be increased in proportion to such increase in the aggregate number of Common Shares outstanding. If the Company shall at any time or from time to time after the Issuance Date consolidate the outstanding Common
Shares, the Conversion Rate in effect immediately before the consolidation shall be proportionately decreased so that the number of Common Shares issuable on conversion of each share of such series shall be decreased in proportion to such decrease
in the aggregate number of Common Shares outstanding. 
 (B) In the event the Company at any time or from time to time after the
Issuance Date shall make or issue, or fix a record date for the determination of holders of Common Shares entitled to receive, a dividend or other distribution payable on the Common Shares in additional Common Shares, then and in each such event the
Conversion Rate in effect immediately before such event shall be increased as of the time of such issuance or, in the event such a record date shall have been fixed, as of the close of business on such record date, by multiplying the Conversion Rate
then in effect by a fraction: 
 (i) the numerator of which shall be the total number of Common Shares issued and
outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of Common Shares issuable in payment of such dividend or distribution, and 

 

 7 

 (ii) the denominator of which shall be the total number of Common Shares
issued and outstanding immediately prior to the time of such issuance or the close of business on such record date. 
 Notwithstanding the
foregoing, (a) if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Conversion Rate shall be recomputed accordingly as of the close of business
on such record date and thereafter the Conversion Rate shall be adjusted pursuant to this paragraph (C) of Section 8 as of the time of actual payment of such dividends or distributions; and (b) that no such adjustment shall be made if
the holders of Series B Preferred Shares simultaneously receive a dividend or other distribution of Common Shares in a number equal to the number of Common Shares as they would have received if all outstanding Series B Preferred Shares had been
converted into Common Shares on the date of such event. 
 (C) In the event the Company at any time or from time to time after
the Issuance Date shall make or issue, or fix a record date for the determination of holders of Common Shares entitled to receive, a dividend or other distribution payable in securities of the Company (other than a distribution of Common Shares in
respect of outstanding Common Shares) or in other property (excluding cash), then and in each such event the holders of Series B Preferred Shares shall receive, simultaneously with the distribution to the holders of Common Shares, a dividend or
other distribution of such securities or other property in an amount equal to the amount of such securities or other property as they would have received if all outstanding Series B Preferred Shares had been converted into Common Shares on the date
of such event. 
 (D) If there shall occur any reorganization, recapitalization, reclassification, consolidation or merger
involving the Company in which the Common Shares (but not the Series B Preferred Shares) are converted into or exchanged for securities, cash or other property (other than a transaction covered by paragraphs (B) and (C) of this
Section 8), then, following any such reorganization, recapitalization, reclassification, consolidation, merger or amalgamation, each Series B Preferred Share shall thereafter be convertible in lieu of the Common Shares into which it was
convertible prior to such event into the kind and amount of securities, cash or other property which a holder of the number of Common Shares of the Company issuable upon conversion of one Series B Preferred Shares immediately prior to such
reorganization, recapitalization, reclassification, consolidation, merger or amalgamation would have been entitled to receive pursuant to such transaction; and, in such case, appropriate adjustment (as determined in good faith by the Board of
Directors) shall be made in the application of the provisions in this Section 8 with respect to the rights and interests thereafter of the holders of the Series B Preferred Shares, to the end that the provisions set forth in this Section 8
(including provisions with respect to changes in and other adjustments of the Conversion Rate) shall thereafter be applicable, as nearly as reasonably may be, in relation to any securities or other property thereafter deliverable upon the conversion
of the Series B Preferred Shares. 
 (E) In the event the Company at any time or from time to time after the Issuance Date shall
make or issue, or fix a record date for the determination of holders of Common Shares entitled to receive, a dividend payable in cash, which is greater in value than five percent (5%), on a cumulative basis over the previous twelve months prior to
such making, issuing or fixing, of the then current Common Share Fair Market Value, then and in each such 
  

 8 

 
event the holders of Series B Preferred Shares shall receive, simultaneously with the distribution to the holders of Common Shares, a dividend payable in cash in an amount equal to the amount in
excess of five percent (5%) of the then current Common Share Fair Market Value per Common Share they would have received if all outstanding Series B Preferred Shares had been converted into Common Shares on the date of such event. 

(F) Upon the occurrence of each adjustment or readjustment of the Conversion Rate pursuant to this Section 8, the Company at its
expense shall, as promptly as reasonably practicable but in any event not later than twenty (20) days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of Series B Preferred
Shares a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or other property into which the Series B Preferred Shares is convertible) and showing in detail the facts upon which such
adjustment or readjustment is based. The Company shall, as promptly as reasonably practicable after the written request at any time of any holder of Series B Preferred Shares (but in any event not later than twenty (20) days thereafter),
furnish or cause to be furnished to such holder a certificate setting forth (i) the Conversion Rate then in effect, and (ii) the number of Common Shares and the amount, if any, of other securities, cash or property which then would be
received upon the conversion of Series B Preferred Shares. 
 (G) In the event: 

(i) the Company shall take a record of the holders of its Common Shares (or other capital stock or securities at the time
issuable upon conversion of the Series B Preferred Shares) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of capital stock of any class or
any other securities, or to receive any other security; or 
 (ii) of any capital reorganization of the Company,
any reclassification of the Common Shares of the Company; or 
 (iii) of the voluntary or involuntary
dissolution, liquidation or winding-up of the Company, 
 then, and in each such case, the Company will send or cause to be sent to the holders
of the Series B Preferred Shares a notice specifying, as the case may be, (i) the record date for such dividend, distribution or right, and the amount and character of such dividend, distribution or right, or (ii) the effective date on
which such reorganization, reclassification, consolidation, merger, amalgamation, transfer, dissolution, liquidation or winding-up is proposed to take place, and the time, if any is to be fixed, as of which the holders of record of Common Shares (or
such other capital stock or securities at the time issuable upon the conversion of the Series B Preferred Shares) shall be entitled to exchange their Common Shares (or such other capital stock or securities) for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger, amalgamation, transfer, dissolution, liquidation or winding-up, and the amount per share and character of such exchange applicable to the Series B Preferred Shares and
the Common Shares. Such notice shall be sent at least thirty (30) days prior to the record date or effective date for the event specified in such notice. 
  

 9 

 (H) Adjustments to the Series B Preferred Shares required by the provisions of this
Section 8 shall be effective as of the time at which the event requiring such adjustments occurs. 
 Section 9.
Optional Redemption. 
 (A) The Series B Preferred Shares may be redeemed by the Company, at its election, out of
funds lawfully available therefor, at any time after the third anniversary of the Issuance Date, provided that at the time written notice of redemption is provided to the holders of the Series B Preferred Shares the Common Shares have a Common Share
Fair Market Value that is greater than 120% of the Series B Issue Price per share divided by the number of Common Shares issuable on conversion of each Series B Preferred Share under the applicable Conversion Rate. The Series B Preferred Shares
shall be redeemed by a cash payment equal to the Series B Original Issue Price per share, plus the cash amount of any accumulated and unpaid dividends thereon (the “Redemption Price”) to the date on which the Company proposes to pay the
Redemption Price (the “Redemption Date”). Before making any redemption, the Company shall mail by certified or registered mail, return receipt requested, to each record holder of any Series B Preferred Shares, at the address shown on the
Company’s records, a written notice (the “Redemption Notice”) stating the number of Series B Preferred Shares that the Company proposes to redeem, the Redemption Price, the Redemption Date, and the place at which the shares to be
redeemed shall be surrendered for the Redemption Price. The Redemption Notice must be mailed not more than 60 days nor less than 30 days prior to the redemption. 

(B) If less than all outstanding Series B Preferred Shares are to be redeemed, the number of Series B Preferred Shares to be redeemed
from each holder thereof under this Section 9 shall be the greatest whole number generated by multiplying the total number of Series B Preferred Shares held by such holder by a fraction, the numerator of which shall be the total number of
Series B Preferred Shares to be redeemed and the denominator of which shall be the total number of Series B Preferred Shares then outstanding. On and after the Redemption Date specified in the Redemption Notice, each holder of Series B Preferred
Shares called for redemption as aforesaid, upon presentation and surrender at the place designated in such notice of the certificate or certificates representing the Series B Preferred Shares to be redeemed (or a properly executed affidavit of lost
securities), properly endorsed in blank for transfer or accompanied by proper instruments of assignment in blank, shall be entitled to receive the Redemption Price thereof. From and after the Redemption Date specified in the Redemption Notice,
unless default shall be made by the Company in payment of the Redemption Price, all dividends on the Series B Preferred Shares so called for redemption shall cease to accrue, such shares shall not be deemed to be outstanding for any purposes
whatsoever, and the rights of the holders thereof shall be solely limited to the right receive payment of the Redemption Price. In the event less than all of the shares represented by such certificate are redeemed, a new certificate shall be issued
representing the unredeemed shares. 
 Section 10. Mandatory Redemption. On the seventh anniversary of the date of
issuance (the “Maturity Date”), the Company shall redeem any Series B Preferred Shares then 
  

 10 

 
outstanding at the applicable Redemption Price. For the purpose of this Section 10, the Redemption Price may, at the election of the Company, be paid in cash or Common Shares, valued for
such purpose at 95% of the Common Share Fair Market Value. 
 Section 11. Ranking. Unless otherwise provided in the
Bye-laws of the Company or the rights relating to a subsequent series of Preference Shares of the Company ranking pari passu with the Series B Preferred Shares, the Series B Preferred Shares shall rank senior to all other series of the
Company’s Preference Shares and to the Common Shares as to the payment of dividends and the distribution of assets on liquidation, dissolution or winding up. 

Section 12. Amendment. Except as contemplated herein, the provisions hereof and the Bye-laws of the Company shall not be
amended in any manner which would adversely affect the rights, privileges or powers of the Series B Preferred Shares without, in addition to any other vote of shareholders required by law, the affirmative vote of the holders of 66 2/3% of the
outstanding Series B Preferred Shares, voting together as a single class. Notwithstanding the foregoing, in the event that the authorized but unissued Series B Preferred Shares shall not be sufficient to pay the Potential In-Kind Dividends pursuant
to paragraph 2(B) of Section 2, without a vote of the holders of the Series B Preferred Shares, the Company may amend this Certificate of Designation of the Series B Preferred Shares to increase the number of shares constituting the Series B
Preferred Shares as necessary to ensure there are sufficient authorized but unissued Series B Preferred Shares to pay the Potential In-Kind Dividends. 

Section 13. Currency. As used herein, reference to dollar amounts, unless otherwise specifically indicated, shall mean the
lawful money of the United States of America. 
 Section 14. Notice. All notices given pursuant to this certificate
of designation shall be done in the manner prescribed in the subscription agreement (including the requirement to provide copies to counsel) whereby the Series B Preferred Shares were originally issued. 

 

 11 

 EXHIBIT A 

Conversion Certificate 

Date:
                                        

 CURRENT HOLDINGS OF COMMON SHARES 
  

									
	Holder	  		  	
					
	 Name:
	 	  
	 		  	Number of shares:	  	  

			
	Affiliates of Holder	  		  	
					
	 Name:
	 	  
	 		  	Number of shares:	  	  

	 Name:
	 	  
	 		  	Number of shares:	  	  

		 		 		  	Total:	  	  

PROPOSED CONVERSION OF SERIES B PREFERRED SHARES 
  

									
	Holder	  		  	
					
	 Name:
	 	  
	 		  	Number of shares:	  	  

			
	Affiliates of Holder	  		  	
					
	 Name:
	 	  
	 		  	Number of shares:	  	  

	 Name:
	 	  
	 		  	Number of shares:	  	  

		 		 		  	Total:	  	  

CONVERSION RATE, AS ADJUSTED, IF APPLICABLE 

HOLDINGS OF COMMON SHARES AFTER PROPOSED CONVERSION (ASSUMING IN-KIND SHARE CONVERSION OF ACCUMULATED BUT UNPAID DIVIDENDS) 

 

									
	Holder	  		  	
					
	 Name:
	 	  
	 		  	Number of shares:	  	  

			
	Affiliates of Holder	  		  	
					
	 Name:
	 	  
	 		  	Number of shares:	  	  

	 Name:
	 	  
	 		  	Number of shares:	  	  

		 		 		  	Total:	  	  

PERCENTAGE OF COMMON SHARES HELD AFTER PROPOSED CONVERSION (ASSUMING IN-KIND SHARE CONVERSION OF ACCUMULATED BUT UNPAID DIVIDENDS)

											
			
	 Total number of Common Shares held by the holder and its affiliates after proposed conversion:
	  		  	  

	 Total number of Common Shares
outstanding:1
	  		  	  

	 Percentage ownership of the holder and its affiliates:
	  		  	 %

 

	1
	 Utilizing information provided by the chief executive officer or chief financial officer of the Company pursuant to paragraph 7(D) of Section 7 of
the Certificate of Designation of the Series B Preferred Shares. 

 NAME AND NUMBER OF SHARES TO BE PLACED ON COMMON SHARE CERTIFICATES 

 

									
					
	Name:	 	  
	 		  	Number of shares:	  	  

	Name:	 	  
	 		  	Number of shares:	  	  

	Name:	 	  
	 		  	Number of shares:	  	  

		 		 		  	Total:	  	  

I,                     ,
                     of the holder, certify for an on behalf of the holder, and not in my personal capacity and without personal liability to me,
that the foregoing is true and correct as of the date written above and that, based on the number of Common Shares outstanding communicated to holder by the Company, the proposed conversion complies with paragraph (B) of the Section 7 the
Certificate of Designation of the Series B Preferred Shares. 
  

			
	 [INSERT NAME OF HOLDER]

		
	 By:
	 	  

 

 2

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