Document:

Telematics Services Agreement - HUGHES Telematics Inc. & Mercedes-Benz USA, LLC

 Exhibit 10.18 
 EXECUTION VERSION 
 TELEMATICS SERVICES AGREEMENT 
 DATED AS OF 
 OCTOBER 31, 2007 
 BY AND BETWEEN 
 HUGHES TELEMATICS,
INC. 
 AND 
 MERCEDES-BENZ USA, LLC 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page
	 1.
	  	DEFINITIONS	  	1
				
		  	 (a)
	  	Defined Terms	  	1
				
		  	 (b)
	  	Other Definitional Matters	  	10
			
	 2.
	  	TELEMATICS SERVICES	  	10
				
		  	 (a)
	  	Start of PASS Services and MBTA Services	  	10
				
		  	 (b)
	  	[Reserved]	  	10
				
		  	 (c)
	  	Provision of the PASS Services and the MBTA Services to Enabled Vehicles and LCT Enabled Vehicles	  	10
				
		  	 (d)
	  	Standards for the PASS Services and the MBTA Services	  	11
				
		  	 (e)
	  	[Reserved]	  	11
				
		  	 (f)
	  	Commencement	  	11
				
		  	 (g)
	  	Costs and Expenses	  	11
				
		  	 (h)
	  	Approved Additional Services	  	12
				
		  	 (i)
	  	Exclusivity	  	14
				
		  	 (j)
	  	Obligation to Provide Data Channel Capacity	  	15
				
		  	 (k)
	  	HTI Activities Other Than With Respect to MCG Vehicles and LCT Enabled Vehicles	  	15
				
		  	 (l)
	  	Delay	  	15
				
		  	 (m)
	  	***	  	15
			
	 3.
	  	 SUBSCRIPTIONS
	  	15
				
		  	 (a)
	  	Subscriber Communication and Agreements	  	15
				
		  	 (b)
	  	Billing	  	16
				
		  	 (c)
	  	Free First Year of Subscription Service to the PASS Services and MBTA Services	  	16
				
		  	 (d)
	  	Prices for the PASS Services and the MBTA Services for Second and Subsequent Years	  	16
				
		  	 (e)
	  	Subscriber Relationship	  	16
				
		  	 (f)
	  	Telematics Packages	  	16
			
	 4.
	  	HTI TELEMATICS COMMUNICATORS	  	16
				
		  	 (a)
	  	Development of HTI Telematics Communicator	  	16
				
		  	 (b)
	  	Purchase and Sale of HTI Telematics Communicators	  	17

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
		  	(c)	  	Purchase Price	  	17
				
		  	(d)	  	Sourcing and Development Strategy; Approved Suppliers	  	18
				
		  	(e)	  	Technical Specifications	  	18
				
		  	(f)	  	Planned MCG Vehicle Installation Schedule	  	18
				
		  	(g)	  	Warranty and Warranty Repairs; Service or Recall Campaigns	  	19
				
		  	(h)	  	Product Documentation	  	19
			
	5.	  	RESERVED	  	20
			
	6.	  	RESERVED	  	20
			
	7.	  	TESTING PROTOCOLS AND ACCEPTANCE	  	20
				
		  	(a)	  	Testing Protocols	  	20
				
		  	(b)	  	Acceptance Testing of the HTI System	  	20
				
		  	(c)	  	Testing for Vehicles	  	21
			
	8.	  	OTHER TELEMATICS SERVICES	  	21
			
	9.	  	MBUSA SHARING IN SUBSCRIPTION FEES; OTHER PAYMENTS	  	21
				
		  	(a)	  	Payment Obligations	  	21
				
		  	(b)	  	***	  	21
				
		  	(c)	  	Method of Payments	  	21
				
		  	(d)	  	Supporting Documentation	  	21
				
		  	(e)	  	Additional HTI Services	  	21
				
		  	(f)	  	***	  	21
			
	10.	  	VEHICLE AND SUBSCRIBER DATA	  	21
				
		  	(a)	  	Exchange of Vehicle and Subscriber Data	  	21
				
		  	(b)	  	Marketing to Subscribers and Non-Subscribers	  	22
				
		  	(c)	  	Subscriber Consents	  	22
				
		  	(d)	  	MBUSA Approval of Vehicle Subscriber Data Access and Supplemental Uses	  	22
				
		  	(e)	  	Data Security	  	23
				
		  	(f)	  	Privacy Contact Points	  	23
				
		  	(g)	  	Survival of Rights to Use Vehicle and Subscriber Data and Supplemental Uses	  	23

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
	11.	  	MARKETING	  	23
				
		  	(a)	  	Marketing Plan	  	23
				
		  	(b)	  	Subscriber Agreements	  	25
			
	12.	  	ON-SITE ENGINEERING STAFFING, ACCESS TO DAIMLER PREMISES AND USE OF DAIMLER VEHICLES	  	25
				
		  	(a)	  	Compliance with MBUSA Rules and Policies	  	25
				
		  	(b)	  	Access to MBUSA Personnel and Use of MCG Vehicles and LCT Enabled Vehicles	  	25
				
		  	(c)	  	Compliance with DAG and MBUSA Rules and Policies	  	26
			
	13.	  	HTI MILESTONE REQUIREMENTS	  	26
				
		  	(a)	  	Milestone Requirements	  	26
				
		  	(b)	  	Required Notification	  	26
				
		  	(c)	  	Cure	  	26
			
	14.	  	INTELLECTUAL PROPERTY	  	26
				
		  	(a)	  	Ownership of Prior Developed and Contributed Intellectual Property	  	26
				
		  	(b)	  	Ownership of Fruit of the Agreement Intellectual Property	  	27
				
		  	(c)	  	Ownership of Intellectual Property in Approved Additional Services, Approved WiMax Services and Approved Other Telematics Services	  	27
				
		  	(d)	  	License of Intellectual Property Rights	  	27
				
		  	(e)	  	***	  	28
				
		  	(f)	  	***	  	28
				
		  	(g)	  	***	  	28
				
		  	(h)	  	No Infringement	  	28
				
		  	(i)	  	Date or Time Functionality Processing	  	28
			
	15.	  	INDEMNIFICATION	  	28
				
		  	(a)	  	Intellectual Property Indemnification	  	28
				
		  	(b)	  	General Indemnification	  	29
				
		  	(c)	  	Indemnification Procedure	  	29
				
		  	(d)	  	Survival. The indemnity obligation under this Section 15 will survive the termination or expiration of this Agreement	  	30
				
		  	(e)	  	Purchase Order Indemnity	  	30

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
		  	(f)	  	Applicability of Indemnification Procedures	  	30
			
	16.	  	CONFIDENTIALITY	  	31
				
		  	(a)	  	Confidential Information	  	31
				
		  	(b)	  	Nondisclosure Obligations	  	31
				
		  	(c)	  	Discontinuation of Use of Confidential Information Upon Termination	  	31
			
	17.	  	TAXES	  	31
			
	18.	  	TELECOM CONNECTIVITY MANAGEMENT	  	32
			
	19.	  	OWNERSHIP AND USE OF TRADEMARKS	  	32
			
	20.	  	AUDIT RIGHTS	  	32
				
		  	(a)	  	Audit Rights for MBUSA	  	32
				
		  	(b)	  	Maintenance of Records	  	33
			
	21.	  	EXECUTIVE STEERING & OPERATING COMMITTEES	  	33
				
		  	(a)	  	Executive Steering Committee	  	33
				
		  	(b)	  	Operating Committee	  	33
				
		  	(c)	  	Procedures	  	33
				
		  	(d)	  	Scope of Duties	  	34
			
	22.	  	LEGAL COMPLIANCE	  	34
			
	23.	  	REPRESENTATIONS AND WARRANTIES	  	34
				
		  	(a)	  	Corporate Representations and Warranties	  	34
				
		  	(b)	  	HTI Representations and Warranties	  	34
			
	24.	  	REQUIRED INSURANCE	  	34
			
	25.	  	TERM	  	35
			
	26.	  	TERMINATION OF AGREEMENT	  	35
				
		  	(a)	  	Right to Terminate	  	35
				
		  	(b)	  	Change in Control Event	  	35
				
		  	(c)	  	Right to Continue Agreement	  	35
			
	27.	  	EFFECT OF TERMINATION ON SUBSCRIBER AGREEMENTS; CONTINUED PROVISION OF SERVICES; TRANSITION SERVICES; SURVIVAL	  	36
			
	28.	  	DISPUTE RESOLUTION	  	37

  

 -iv- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
		  	(a)	  	Informal Dispute Resolution	  	37
				
		  	(b)	  	Jurisdiction and Venue	  	37
				
		  	(c)	  	Injunctive Relief	  	37
				
		  	(d)	  	Confidentiality of Dispute Resolution Proceedings	  	38
			
	29.	  	NOTICES	  	38
			
	30.	  	ASSIGNMENT AND SUBCONTRACTING	  	39
			
	31.	  	AMENDMENTS	  	39
			
	32.	  	WAIVERS	  	39
			
	33.	  	EXPENSES	  	39
			
	34.	  	GOVERNING LAW	  	40
			
	35.	  	FURTHER ASSURANCES	  	40
			
	36.	  	NONSOLICITATION	  	40
			
	37.	  	FORCE MAJEURE	  	40
				
		  	(a)	  	Force Majeure Event	  	40
				
		  	(b)	  	Notice Obligation	  	40
				
		  	(c)	  	Mitigation; Termination Rights	  	40
			
	38.	  	RELATIONSHIP	  	41
			
	39.	  	SEVERABILITY	  	41
			
	40.	  	NO INFERENCE AGAINST DRAFTER	  	41
			
	41.	  	NO THIRD PARTY BENEFICIARIES	  	41
			
	42.	  	HEADINGS	  	41
			
	43.	  	COUNTERPARTS	  	41
			
	44.	  	ENTIRE AGREEMENT	  	42
			
	45.	  	GOOD FAITH	  	42
			
	46.	  	COMMUNICATIONS	  	42
			
	47.	  	RESOLUTION OF CONFLICTS AMONG DOCUMENTS	  	42

  

 -v- 

 LIST OF EXHIBITS 
  

			
	Exhibit A-1	  	Description of the PASS Service
	Exhibit A-2	  	Description of the MBTA Services
	Exhibit B	  	Standards and Service Levels for the PASS Service and MBTA Services
	Exhibit C	  	[Reserved]
	Exhibit D-1	  	MCG Vehicle Models
	Exhibit D-2	  	Planned Volumes for MCG Vehicles
	Exhibit G	  	Technical Specifications
	Exhibit H	  	Common Technology
	Exhibit I	  	Excluded Telematics Agreements and Programs
	Exhibit J	  	[Reserved]
	Exhibit K	  	[Reserved]
	Exhibit L	  	[Reserved]
	Exhibit M	  	Applicable MBUSA/DAG Policies
	Exhibit N	  	Milestone Requirements
	Exhibit O	  	***
	Exhibit P	  	Common Provision; MCG Change Management Process
	Exhibit Q	  	Marketing Concepts
	Exhibit R	  	[Reserved]
	Exhibit S	  	General Terms and Conditions for the Purchase of Production Material and Spare Parts which are Destined for the Automobile and Supply Specifications Logistical Contents (Direct
Delivery)
	Exhibit T	  	Mercedes-Benz Special Terms MBST 2007
	Exhibit U	  	[Reserved]
	Exhibit V	  	Types of Vehicle and Subscriber Data Collected by MBUSA and HTI
	Exhibit W	  	[Reserved]
	Exhibit X	  	[Reserved]
	Exhibit Y	  	[Reserved]
	Exhibit Z	  	[Reserved]
	Exhibit AA	  	Personal Information, Data Protection and Security

  

 -vi- 

 EXECUTION VERSION 
 TELEMATICS SERVICES AGREEMENT 
 This Telematics Services Agreement (“Agreement”) is made
effective as of October 31, 2007 (the “Effective Date”) by and between Hughes Telematics Inc., a Delaware corporation with a principal address at 41 Perimeter Center East, Suite 400, Atlanta, Georgia 30346 (“HTI”) and
Mercedes-Benz USA, LLC, a Delaware limited liability company with a principal address at One Mercedes Drive, Montvale, New Jersey 07645 (“MBUSA”). 
 RECITALS 
 (A) HTI is in the business of, among other things, providing telematics equipment and
services. 
 (B) MBUSA is in the business of, among other things, manufacturing (by and through its Affiliates), distributing, marketing and
selling automobiles throughout the United States of America and Puerto Rico. 
 (C) HTI desires to provide certain telematics services for
MCG Vehicles and LCT Enabled Vehicles (each as defined below) that have factory-installed equipment capable of receiving those services. 
 (D) MBUSA through its vehicle manufacturing Affiliates is willing to factory-install equipment capable of receiving those telematics services in MCG Vehicles, and to let HTI deliver those services to MCG Vehicles and LCT Enabled Vehicles,
on the terms and conditions set forth in this Agreement. 
 AGREEMENT 
 NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, HTI and MBUSA hereby agree as follows:

  

	 	1.	DEFINITIONS 

 (a) Defined Terms. In addition to the
terms defined elsewhere in this Agreement, the defined terms set forth below and used in this Agreement will have the meanings set forth below. The definitions in this Agreement apply equally to the singular and plural forms of the defined terms.

 “AAA” means the American Arbitration Association. 
 “Additional Excluded Telematics Agreement” has the meaning set forth in Section 2(i)(iii) of this Agreement. 

 “Additional Service” means any telematics service, other than the PASS Services and the MBTA
Services, that (i) consists (or would upon the initiation thereof consist) of *** and (ii) is (or would upon the initiation thereof be) provided using an Embedded Cellular Technology Device installed as original equipment by MBUSA through
its vehicle manufacturing Affiliates. 
 “Affiliate” of a Person means a Person that directly or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, such Person. As used in this definition, the term “control,” including the correlative terms “controlling,” “controlled by” and “under
common control with,” means the possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or
otherwise) of a Person. 
 “Agreement” means this agreement, including all exhibits attached hereto, as such agreement may be
amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof. 
 “Ancillary Fees”
means any and all fees or costs assessed by any Governmental Entity, including pass-throughs of taxes or other charges imposed by such Governmental Entities (including Surcharges), that are charged by HTI to a Subscriber, in each case, in a manner
consistent with the practices of other telematics services providers or telecommunications companies, other than through the inclusion of such costs in the applicable Subscription Fee. 
 “Approved Additional Service” means those Additional Services which HTI is permitted or selected to provide in the manner set forth in Sections
2(h)(i) through 2(h)(iii). 
 “Approved Other Telematics Service” has the meaning set forth in Section 8 of this Agreement.

 “Approved WiMax Service” means those WiMax Services, which HTI is permitted or selected to provide in the manner set forth in
Sections 2(h)(i) through 2(h)(iii). 
 “ATX” means ATX Technologies, Inc., a Texas corporation. 
 “ATX Telematics Services Agreement” has the meaning set forth in Exhibit O. 
 “Authorized Manufacturer” means a manufacturer approved by MBUSA or its Affiliate to manufacture HTI Telematics Communicators for installation
in MCG Vehicles. 
 “Authorized Supplier” means, for any component (including the HTI Telematics Communicator) to be installed in
an MCG Vehicle, a supplier approved by MBUSA or its Affiliate with respect to the applicable component. For the avoidance of doubt, Hughes Network Systems, LLC, a Delaware limited liability company, is hereby deemed to be an Authorized Supplier of
HTI with respect to the HTI Telematics Communicators, provided, however, that any entities which Hughes Network Systems, LLC acquires or to which Hughes Network Systems, LLC subcontracts shall not be deemed to be Authorized Suppliers without
MBUSA’s prior written approval in each instance, which approval shall not be unreasonably withheld, conditioned or delayed. 
  

 2 

 “Base Warranty” has the meaning set forth in Section 4(c) of this Agreement. 

“Business Day” means any day other than a Saturday, Sunday or a day on which banks in New York City, New York are authorized or regulated to
close. 
 “CDMA” means Code Division Multiple Access. 
 “Change in Control Event” means any event or sequence of events that results in an *** not an Affiliate of DAG acquiring either (x) more
than *** of the outstanding capital stock of HTI on a fully diluted basis or (y) securities representing more than *** of the voting power of HTI. 
 “Commencement Date” means ***. 
 “Confidential Information” has the meaning set forth in
Section 16(a) of this Agreement. 
 “Current Subscriber” means a Subscriber who, as of any relevant point in time, has a
then-current subscription for any Telematics Service or any Approved Other Telematics Service in each case which service is provided by HTI. 
 “DAG” means Daimler AG, a German stock corporation. 
 ***. 
 “Dealer” means any dealer or dealer group authorized by MBUSA that markets, sells or leases any new or pre-owned MCG Vehicle or LCT Enabled
Vehicle. 
 “Deposit” has the meaning set forth in Section 14(e) of this Agreement. 
 “Dispute” has the meaning set forth in Section 28(a) of this Agreement. 
 “DSRC” means Dedicated Short Range Communications. 
 “Effective Date” has the meaning set forth in the introductory paragraph of this Agreement. 
 “Embedded Cellular Technology” means transmission and reception via a device installed as original equipment by MBUSA or its vehicle manufacturing Affiliates in an MCG Vehicle or an LCT Enabled Vehicle of wireless signals using
communication networks that are based on ***, and shall expressly exclude ***. 
  

 3 

 “Embedded Cellular Technology Device” means a device via which transmission and reception of
wireless signals take place using communication networks that are based on ***, but expressly excluding ***. 
 “Enabled Vehicle”
means any MCG Vehicle which, at the time of such MCG Vehicle’s production, contains a factory-installed HTI Telematics Communicator or Other Telematics Communicator. An LCT Enabled Vehicle shall be deemed to be an Enabled Vehicle in the event
that the LCT Communicator installed in such vehicle is replaced with an HTI Telematics Communicator or an Other Telematics Communicator. 
 ***. 
 ***. 
 “ESD” means Electro Static Discharge. 
 “Excessive Use Charges” has the meaning set forth in Section 3(c)
of this Agreement. 
 “Excluded Telematics Agreements and Programs” means the Existing Telematics Agreements and Programs and any
Additional Excluded Telematics Agreements, in each case, as listed on Exhibit I from time to time. 
 “Executive Steering
Committee” has the meaning set forth in Section 21(a) of this Agreement. 
 “Existing Telematics Agreements and Programs”
has the meaning set forth in Section 2(i)(iii) of this Agreement. 
 “Force Majeure Event” has the meaning set forth in
Section 37(a) of this Agreement. 
 “Governmental Entity” means any federal, state or local government or any regulatory body
or political subdivision thereof. 
 “GSM” means Global System for Mobile Communications. 
 “HNS” means Hughes Network Systems, LLC. 
 “HTI” has the meaning set forth in the introductory paragraph of this Agreement. 
 “HTI Europe” has the meaning
set forth in Section 4(b). 
 “HTI Indemnitees” has the meaning set forth in Section 15(a)(ii) of this Agreement.

 “HTI Operational System” means all *** required, in conjunction with the HTI Telematics Communicators or the Other Telematics
Communicators, to create a full service offering of the Telematics Services and Approved Other Telematics Services to Subscribers ***. 
  

 4 

 “HTI System” includes the HTI Telematics Communicator and the HTI Operational System.

 “HTI Telematics Communicator” means a device capable of receiving the PASS Services and the MBTA Services within the Territory
and provided by HTI through an Authorized Manufacturer and, at HTI’s option, through one or more Authorized Suppliers (it being understood that the HTI Telematics Communicators may be capable of receiving services in addition to the PASS
Services and the MBTA Services). 
 “Indemnified Party” has the meaning set forth in Section 15(c) of this Agreement.

 “Indemnifying Party” has the meaning set forth in Section 15(c) of this Agreement. 
 “Infringement Exceptions” means (i) any modification by MBUSA or its Affiliates of ***, which modification infringes, misappropriates or
violates the Intellectual Property rights of a third Person, *** (ii) any combination by MBUSA or its Affiliates of ***, which combination infringes, misappropriates or violates the Intellectual Property rights of a third Person ***
(iii) infringement, misappropriation or violation of any third-party’s Intellectual Property rights a proximate cause of which is ***. 
 “Intellectual Property” means any intellectual property rights existing from time to time under any Law in any jurisdiction throughout the world, including: (a) patents, utility models, rights in designs, patent applications
and patent disclosures and statutory invention registrations, including reissues, divisions, continuations, continuations in part, extensions and reexaminations thereof, (b) trademarks, service marks, trade dress, trade names, corporate names,
logos and slogans (and all translations, adaptations, derivations and combinations of the foregoing) and Internet domain names, together with all goodwill associated with each of the foregoing, any and all common law rights and registrations and
applications for the registration thereof, and all extensions and renewals of any of the foregoing, (c) copyrights (including rights in computer software source code, executable code, and databases), registered copyrights and copyright
applications, mask works, net lists and schematics, and all rights or forms of protection of a similar nature or having equivalent effect to any of the foregoing which may subsist anywhere in the world, (d) applications for any of the
foregoing, and (e) know-how and technical and proprietary information, including trade secrets, ideas, concepts, inventions, industrial models, processes, designs, methodologies, computer programs (including all source codes) and related
documentation, technical information, and manufacturing, engineering and technical drawings. 
 “JTP” means ***. 
 “Law” means any federal, state or local law, statute, code or ordinance, or any rule or regulation promulgated pursuant thereto. 
 “LCT Communicator” means the “Low Cost Tele Aid” telematics device of the type installed as of the Effective Date by MBUSA or its
Affiliate for the purpose of receiving the telematics services ***, or successor devices thereto installed by MBUSA or its Affiliate. 
  

 5 

 “LCT Enabled Vehicle” means a vehicle sold or leased by or through MBUSA in the Territory which
is equipped with an LCT Communicator. 
 “Marks” has the meaning set forth in Section 19 of this Agreement. 
 “Material Milestone Obligations” means those milestones *** reflected on Exhibit N to this Agreement. 
 “MBTA Services” means the telematics services described in Exhibit A-2 to this Agreement. 
 “MBUSA” has the meaning set forth in the introductory paragraph of this Agreement. 
 “MBUSA Customer Assistance Center” means the call center owned or operated by MBUSA or its third party agent. 
 “MBUSA Indemnitees” has the meaning set forth in Section 15(a)(i) of this Agreement. 
 “MBUSA Interface Intellectual Property” has the meaning set forth in Section 14(a) of this Agreement. 
 “MBUSA Interface Specifications” means the written specifications (whether in one document or multiple documents) provided by MBUSA for:
(a) the interface between the HTI Telematics Communicators or Other Telematics Communicators and the MCG Vehicles, and between the LCT Communicators and the LCT Enabled Vehicles, including without limitation, data structures, protocols, message
formats and communications matrices, except not including the controller area network (CAN) protocols; and (b) the means specified by MBUSA by which MCG Vehicle and LCT Enabled Vehicle diagnostic data will be transmitted by HTI to MBUSA or
DAG and by which configuration and control information will be transmitted by MBUSA or DAG to HTI, for example, (i) the identification of, definitions for, and form of, the vehicle diagnostic data elements that are to be transmitted,
(ii) the processing of such diagnostic data prior to transmission, (iii) the frequencies at which such diagnostic data elements are to be transmitted, (iv) the message flow and additional information (e.g., tags, internal case IDs,
time stamps, messages) to be included with such diagnostic data when transmitted, (v) the data exchange mechanisms and data configuration and control information with regard to diagnostic data, (vi) quality of service requirements,
(vii) security requirements, (viii) the infrastructure for the data exchange protocol, and (ix) the identification of technologies or applications to be used to perform such data processing and transmission. 
 “MBUSA Property” means any software, source code, libraries, specifications, data, content, documentation, equipment or other materials
provided by MBUSA or its Affiliates to HTI hereunder, and any Intellectual Property relating thereto. 
 “MBUSA Specifications”
means any and all requirements and specifications of MBUSA or its manufacturing Affiliates (including, without limitation, MBUSA’s environmental 

  

 6 

 
specifications, interface specifications, any other functionality specifications and including, for avoidance of doubt, the MBUSA Interface Specifications),
which are set forth or referred to in Exhibit G. 
 ***. 
 “MCG” means Mercedes Car Group. 
 “MCG Vehicle” means a vehicle that is
(i) manufactured by or for MBUSA or its Affiliates during calendar year 2010 or thereafter for sale or lease within the Territory, and (ii) of a Model Line listed on Exhibit D-1; provided that vehicles produced prior to the calendar year
listed opposite such vehicle’s Vehicle Model on Exhibit D-1 shall not constitute MCG Vehicles. 
 “Milestone Requirements” has
the meaning set forth in Section 13(a) of this Agreement. 
 “Model Line” means any of ***, and any similar class or category
of vehicles added to Exhibit D-2 during the Term. 
 “Multiple Cause Action” means a demand, action, cause of action, lawsuit or
claim that alleges loss or damage directly caused by both HTI and MBUSA. 
 “Non-Disclosure Agreement” means the Confidentiality
and Non-Disclosure Agreement by and between the Parties, dated ***. 
 “Open Source Code” has the meaning set forth in
Section 14(g) of this Agreement. 
 “Operating Committee” has the meaning set forth in Section 21(b) of this Agreement.

 “Other Telematics Communicators” has the meaning set forth in Section 4(b) of this Agreement. 
 “Other Telematics Service” has the meaning set forth in Section 8 of this Agreement. 
 “Party” means HTI or MBUSA; and “Parties” means HTI and MBUSA. 
 “PASS Services” means the personal assistance safety services described in Exhibit A-1 to this Agreement. 
 “Person” means any natural person, organization, partnership, limited liability company, holding company, corporation, other legal entity or
Governmental Entity. 
 “Personal Information” has the meaning set forth in Exhibit AA. 
 “Post-Termination Transition Assistance” has the meaning set forth in Section 27(b) of this Agreement. 
  

 7 

 “Post-Termination Transition Assistance Period” has the meaning set forth in Section 27(b)
of this Agreement. 
 “Reasonable Competitiveness” has the meaning set forth in Section 2(d) of this Agreement. 
 “Release Condition” has the meaning set forth in Section 14(e) of this Agreement. 
 “Separate Intellectual Property” has the meaning set forth in Section 14(a) of this Agreement. 
 “Service or Recall Campaign” means a systematic effort by MBUSA or its Affiliates or Dealers to locate or cause to be accessed by a Dealer an
Enabled Vehicle or an LCT Enabled Vehicle for the purpose of addressing a safety, legal or other issue that impacts such vehicle. 
 ***.

 “Subscriber” means any Person who has subscribed, via a Subscriber Agreement, for any Telematics Services or any Approved Other
Telematics Services, in each case, for an Enabled Vehicle or an LCT Enabled Vehicle, whether or not such Person is the original owner or lessee of such Enabled Vehicle or LCT Enabled Vehicle. 
 “Subscriber Agreement” means the agreement between HTI and a Subscriber pursuant to which the Subscriber subscribes for Telematics Services or
Approved Other Telematics Services to be provided by HTI. 
 “Subscriber Vehicle” means any Enabled Vehicle or LCT Enabled Vehicle
owned by, or leased to, a Current Subscriber. 
 “Subscription Fee” means the fees (other than Ancillary Fees and Excessive Use
Charges) charged by HTI to a Subscriber for Telematics Services and Approved Other Telematics Services. 
 “Supplemental Use” means
the use of data for purposes above and beyond the uses necessary to provide the Telematics Services or Approved Other Telematics Services which have been subscribed to by each Subscriber, including, without limitation, the sale or other transfer of
such data to third parties for purposes above and beyond the uses necessary to provide the Telematics Services or Approved Other Telematics Services which have been subscribed to by each Subscriber. 
 “Surcharges” means a percentage based and/or flat fee assessed by HTI on a Subscriber for specific government taxes or government fees imposed
on HTI’s gross receipts and/or sales, including State Telecommunications Relay Services, gross receipts surcharges, 911 access line charges, DEAF surcharges, local wireless surcharges, and state infrastructure and similar surcharges, in each
case, which government taxes or fees shall be allocated among Subscribers on a pro rata basis unless such amounts are imposed on HTI in a specific amount with respect to particular Subscribers, in which case such amounts shall be assessed on such
Subscribers in such specific amount. 
  

 8 

 “TCU” means the telematics communication unit which is synonymous with the HTI Telematics
Communicator or an Other Telematics Communicator. 
 “Technical Specifications” has the meaning set forth in Section 4(e) of
this Agreement. 
 “Telematics Package” means a specific bundle of Telematics Services (and, at HTI’s option, Approved Other
Telematics Services) to be offered to purchasers and lessees of MCG Vehicles and LCT Enabled Vehicles. 
 “Telematics Services”
means (a) the PASS Services, (b) the MBTA Services, (c) any Approved Additional Services and Approved WiMax Services and (d) all related infrastructure and support services as outlined by MBUSA and contained in the Technical
Specifications listed in Exhibit G and in Exhibit B; but shall not include any service described in clauses (a) through (d) above when used for testing, demonstration, development or research or for data collection, recording or
transmission in connection with testing, demonstration, development or research or for any other purpose incidental thereto. 
 “Term” has the meaning set forth in Section 25 of this Agreement. 
 “Termination Date,” as used in
Section 14(f), has the meaning set forth in Section 14(f) of this Agreement. 
 “Territory” means the fifty
(50) states of the United States of America together with the District of Columbia and Puerto Rico. 
 “Testing Protocols” has
the meaning set forth in Section 7(a) of this Agreement. 
 “Transition Customers” means ***. 
 “Transition Services” means the telematics services to be provided by HTI to Transition Customers, as further described in Exhibit O.

 “Transition Services Commencement Date” has the meaning set forth in Exhibit O. 
 “UWB” means Ultra-WideBand. 
 “Vehicle and Subscriber Data” means any information regarding an Enabled Vehicle, an LCT Enabled Vehicle or a Subscriber, which either Party obtains or derives in connection with this Agreement. Exhibit V sets forth a summary and
examples of the general types of Vehicle and Subscriber Data that each Party may obtain or derive, and each Party’s specific obligations regarding the sharing thereof with the other Party. Exhibit V is intended to be a living document, to be
modified in writing during the course of the Agreement via the mutual written agreement of the Parties from time to time. 
 “Vehicle
Model” means each model listed on Exhibit D-1 from time to time during the Term ***. 
  

 9 

 “Vendor” means a third-party engaged by either HTI or MBUSA for the sole purpose of providing
one or more Telematics Service or Approved Other Telematics Service (for example, a third-party call center provider). 
 “Wi-Fi”
means Wireless Fidelity. 
 “WiMax” means wireless connectivity provided by means of the *** family of standards existing as of the
date of this Agreement ***, and any extensions of such standards approved by such standard’s governing body. 
 “WiMax Device”
means a device via which transmission and reception of wireless signals take place using communication networks that are based on WiMax. 
 “WiMax Service” means a telematics service provided using WiMax. 
 (b) Other Definitional Matters. The words
“include” and “including” will be deemed to be followed by the phrase “without limitation” when such phrase does not otherwise appear. The terms “herein”, “hereof” and “hereunder” and other
words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision unless specifically stated to apply to a specific section, paragraph or subdivision. All article, section, paragraph, clause,
exhibit or schedule references not attributed to a particular document will be references to such parts of this Agreement. All references to “$” or “dollars” are to the currency of the United States of America, unless explicitly
stated otherwise. 
  

	 	2.	TELEMATICS SERVICES 

 (a) Start of PASS Services and
MBTA Services. Beginning on the Commencement Date and continuing during the Term and for such additional time periods as are provided for in Sections 27(a) or 27(b), HTI will provide the PASS Services and the MBTA Services to the purchasers and
lessees of all MCG Vehicles and LCT Enabled Vehicles which are equipped with HTI Telematics Communicators, Other Telematics Communicators or LCT Communicators and for which such purchasers or lessees have Subscriber Agreements with HTI that are then
in effect. The services that make up the PASS Services are described on the attached Exhibit A-1. The services that make up the MBTA Services are described on the attached Exhibit A-2. Exhibits A-1 and A-2 may be amended, supplemented or restated
from time to time by mutual written agreement among the Parties. 
 (b) [Reserved]. 
 (c) Provision of the PASS Services and the MBTA Services to Enabled Vehicles and LCT Enabled Vehicles. On and from the Commencement Date and
continuing during the Term and for such additional time periods as are provided for in Sections 27(a) or 27(b), HTI will provide the PASS Services and the MBTA Services for each Enabled Vehicle and LCT Enabled Vehicle that is also a Subscriber
Vehicle in accordance with the standards and service levels set forth in this Section 2 and Exhibit B. Additionally, on the terms set forth on the Term Sheet attached as Exhibit O hereto and such other terms and conditions as may be set forth
in a written definitive agreement to be negotiated in good faith by and between HTI and MBUSA *** in 

  

 10 

 
accordance with the standards and service levels set forth in this Section 2 and Exhibit B. Exhibit B may be amended, supplemented or restated from time
to time by mutual written agreement of HTI and MBUSA. HTI will make the PASS Services and the MBTA Service available to each Subscriber Vehicle 24 hours a day, seven days a week, irrespective of where the Subscriber Vehicle is located within the
Territory, exempting issues related to cellular coverage (which exception is inapplicable if HTI fails to meet its obligations under Section 18). 
 (d) Standards for the PASS Services and the MBTA Services. HTI will ensure that the PASS Services and the MBTA Services meet or exceed the specific service levels in Exhibit B and will maintain reasonable
competitiveness of the PASS Services and the MBTA Services, including with respect to the price and quality thereof (“Reasonable Competitiveness”). If *** MBUSA shall notify HTI in writing of such determination, which notice shall contain
a reasonably complete explanation of the requested upgrade *** HTI issues such a notice, the Parties shall attempt to resolve the dispute in accordance with the procedures *** such dispute shall be ***. If HTI notifies MBUSA that it agrees to make
the change, the Parties shall negotiate in good faith to determine the appropriate timetable for implementation ***. Additionally, HTI will use *** to ensure that Subscribers are satisfied with the PASS Services and the MBTA Services.

 (e) [Reserved]. 
 (f)
Commencement. HTI will make the HTI Operational System fully operational and the PASS Services and the MBTA Services available to all Subscribers in Enabled Vehicles and LCT Enabled Vehicles not later than the Commencement Date in accordance
with and subject to the terms of this Agreement. Furthermore, HTI will make the HTI Operational System operational to the extent required to provide the Transition Services commencing on the Transition Services Commencement Date, in accordance with
the terms set forth in Exhibit O and the definitive agreement referenced in Section 2(c), if any. HTI and MBUSA will use ***. HTI shall, with the cooperation of MBUSA, transition the LCT Enabled Vehicles to the Telematics Services or
Approved Other Telematics Services without any material interruption, disruption or degradation, with high levels of customer service in the course of communications with the owners or lessees of such vehicles during such period, in accordance with
the service levels applicable to the Telematics Services and Approved Other Telematics Services ***. 
 (g) Costs and Expenses.
Except as specifically set forth in this Agreement, HTI will be solely responsible for all costs and expenses in providing the PASS Services and the MBTA Services to Subscribers in Enabled Vehicles and LCT Enabled Vehicles, for the HTI
Operational System, *** except to the extent ***. Without limiting the generality of the foregoing, in the event that, during the Term and for such additional time periods as are provided for in Sections 27(a) or 27(b), regulatory changes imposed by
a Governmental Entity or a discontinuation of the availability of a necessary telecommunications service would result in the interruption, disruption, degradation or discontinuation in, to or of the Telematics Services or Approved Other Telematics
Services provided to an MCG Vehicle during the Base Warranty period applicable to such MCG Vehicle, HTI shall be required to develop technically feasible changes as shall be determined by HTI, but subject to approval by the processes set forth in
Exhibit P and MBUSA’s change notice processes, to avoid the interruption, disruption, degradation or discontinuation in, to or of the provision of such Telematics Services or Approved Other Telematics Services via 

  

 11 

 
such HTI Telematics Communicators, and shall, notwithstanding anything contained in Section 37, be obligated to offer, and make such upgraded HTI
Telematics Communicators available, to applicable Subscribers (it being understood that (i) HTI has no obligation to make changes required to provide Telematics Services or Approved Other Telematics Services not subscribed to by the applicable
Subscriber immediately prior to the regulatory change or discontinuation of availability of telecommunications service, (ii) HTI shall not be responsible for the cost of retrofitting or replacing existing HTI Telematics Communicators in
connection with upgrades contemplated by this Section 2(g), and shall not be required to offer the upgraded HTI Telematics Communicators to customers at a discounted cost, (iii) HTI shall supply MBUSA’s manufacturing Affiliates, at
*** with such Affiliates’ requirement of such upgraded HTI Telematics Communicators for factory installation thereof in new MCG Vehicles and (iv) the cost of any replacement HTI Telematics Communicators in existing Enabled Vehicles
necessitated as a result of regulatory changes or discontinuation of necessary telecommunications services shall be borne by Subscribers, and HTI shall ensure that the Subscriber Agreement clearly sets forth Subscribers’ responsibilities with
respect to the same). HTI shall be solely responsible for making, at its own expense, any changes required by any Governmental Entity to the HTI Operational System or to the way in which Telematics Services and Approved Other Telematics Services are
to be provided (other than changes in the HTI Telematics Communicators which are governed by the preceding sentence), and, subject to the foregoing and notwithstanding anything to the contrary in Section 37, HTI shall timely and at its own
expense implement such changes as are necessary to avoid interruption in the delivery of Telematics Services and Approved Other Telematics Services to Subscribers. 
 (h) Approved Additional Services. HTI shall provide the Approved Additional Services and Approved WiMax Services, as applicable, in accordance with the terms applicable thereto as set forth in this Agreement
and in any amendment hereto contemplated by Subparagraphs 2(h)(i) through 2(h)(iii) below. 
  

	 	(i)	 Telematics Services Proposed by HTI. With respect to Additional Services or WiMax Services proposed in writing from time to time by HTI which services are to
be provided using the HTI Telematics Communicator, an Other Telematics Communicator or those LCT Communicators which are referred to in the last sentence of Section 4(c), HTI (as opposed to other third party suppliers) shall have the right to
provide such Additional Services or WiMax Services to Enabled Vehicles if MBUSA consents on a case-by-case basis to the provision by HTI of such telematics service via the HTI Telematics Communicator. MBUSA will in good faith review each such
written proposal made by HTI pursuant to the preceding sentence and decide within *** days from the receipt of such written proposal whether it will consent to the provision of such service by HTI or whether it will withhold its consent based on
***, which basis shall be described in writing to HTI. Upon the issuance of such consent, if any, HTI and MBUSA shall negotiate in good faith the *** terms for the provision of such Additional Service or WiMax Service, as applicable, by HTI. If HTI
and MBUSA agree on such terms, a description of the Additional Service or WiMax Service, as applicable, 

  

 12 

	 	 
and the terms applicable to such Additional Service or WiMax Service, as applicable, and not otherwise contained in this Agreement shall be set forth in an
amendment to this Agreement (which amendment shall include any mutually agreed upon amendments to Section 14). ***. If MBUSA has declined to permit HTI to provide an Additional Service or WiMax Service pursuant to this Section 2(h)(i) and
subsequently determines that it would like to have such Additional Service or WiMax Service available in MCG Vehicles or LCT Enabled Vehicles, MBUSA shall comply with the procedures set forth in Section 2(h)(iii) with respect to the awarding of
such Additional Service or WiMax Service ***. 

  

	 	(ii)	Telematics Services Proposed by MBUSA for MBUSA Use as End User: With respect to Additional Services proposed from time to time by MBUSA to HTI and with respect to which
MBUSA will be the end user of such telematics service (which service does not involve the resale of any such service or aspect thereof to any third-party), HTI shall offer, in writing, within *** of its receipt of MBUSA’s written proposal, to
provide any such technically-feasible service on *** to be negotiated and agreed upon by HTI and MBUSA on a case-by-case basis. Upon mutual agreement on the terms, the description of the service and the agreed-upon terms applicable to such service
and not otherwise contained in this Agreement shall be set forth in an amendment to this Agreement. 

  

	 	(iii)	Telematics Services Proposed by MBUSA for Subscriber or Other Third-Party Use as End User: With respect to Additional Services or WiMax Services proposed from time to time by
MBUSA (including telematics services the ideas for which are proposed to MBUSA or its Affiliate by third-parties) with respect to which MBUSA will not be the end user of such telematics services, HTI (as opposed to other third party suppliers) shall
have the right to offer such telematics services to the end user if HTI offers, in writing, within *** of MBUSA’s written request for proposal, to provide such telematics services on terms that are ***. If HTI is to provide an Additional
Service or WiMax Service under this Subparagraph 2(h)(iii) to end users who are owners or lessees of MCG Vehicles or LCT Enabled Vehicles, following mutual agreement on the terms with respect thereto, HTI and MBUSA shall set forth the description of
the Additional Service or WiMax Service, as applicable, and the terms applicable to such Additional Services or WiMax Services, as applicable, and not otherwise contained in this Agreement in an amendment to this Agreement (which amendment shall
include any mutually agreed upon amendments to Section 14). ***. 

  

	 	(iv)	***. 

  

	 	(v)	Required Wireless Connectivity. For the avoidance of doubt, if any Governmental Entity or standardization body mandates that a telematics service be provided using a specific
protocol and/or connectivity, Section 2(h) shall not apply to such service, mandated protocol or connectivity. 

  

 13 

 (i) Exclusivity. HTI will have exclusivity in regard to telematics services to the extent, and
only to the extent, as set forth in this Section 2(i). Except as provided in this Section 2(i), all exclusivity granted to HTI in this Section 2(i) shall end upon the expiration or earlier termination of this Agreement. 
  

	 	(i)	Exclusivity for PASS Services, MBTA Service and Approved Additional Services. Subject to Subparagraph 2(i)(iii) below, HTI shall have, within the Territory, the exclusive
right to provide the PASS Services, the MBTA Services and each telematics service that becomes an Approved Additional Service or Approved WiMax Service, in each case, in Enabled Vehicles *** and LCT Enabled Vehicles (that contain those LCT
Communicators which are referred to in the last sentence of Section 4(c)) both (1) during the Term and (2) with respect to each Enabled Vehicle produced within *** prior to the earlier of (A) any termination of this Agreement
prior to the end of the Term or (B) any expiration of the Term, during the *** period which commences on the date such vehicle is sold or leased, including any portion of such *** period which follows the termination or expiration, as
applicable, of this Agreement ***. 

  

	 	(ii)	Exclusivity for Embedded Cellular Technology Devices. Subject to Subparagraph 2(i)(iii) below, (i) MBUSA will not install (or have installed) as original equipment any
Embedded Cellular Technology Device (other than an HTI Telematics Communicator, an Other Telematics Communicator or an LCT Communicator) *** in any MCG Vehicle that MBUSA sells or leases during the Term within the Territory and (ii) at any time
following the point in time when HTI has been approved or selected to provide an Approved WiMax Service pursuant to Section 2(h), MBUSA also will not install (or have installed) as original equipment any WiMax Device (other than an HTI
Telematics Communicator or an Other Telematics Communicator) *** in any MCG Vehicle that MBUSA sells or leases during the Term within the Territory ***. 

  

	 	(iii)	 Exclusivity Limitations. The exclusivity granted to HTI in this Section 2(i) is not intended to restrict MBUSA in, and shall not limit or interfere with
its reasonable fulfillment of, the existing and future agreements, relationships and program participations of MBUSA or its Affiliates that are listed in Exhibit I (collectively the “Existing Telematics Agreements and Programs”); provided,
however, that no amendment or modification to the Existing Telematics Agreements and Programs (other than any amendment or modification to a program if such modification does not require the consent of MBUSA) shall expand the limitations with
respect to HTI’s exclusivity rights that exist under, or as a result of, such Existing 

  

 14 

	 	 
Telematics Agreements and Programs as of the date hereof. If MBUSA enters into an agreement with a third-party to provide an Additional Service or WiMax
Service in compliance with Section 2(h) (an “Additional Excluded Telematics Agreement”) and such agreement provides for such third-party to provide such Additional Service or WiMax Service on an exclusive basis (whether partially
exclusive or fully exclusive), MBUSA and HTI shall add such Additional Excluded Telematics Agreements to Exhibit I; provided, however, that such exclusivity shall not extend beyond such Additional Service or WiMax Service, as applicable. ***.

  

	 	(iv)	Certain Additional Matters Related to Additional Services and Exclusivity. All provisions of Section 2(h)(ii), Section 2(h)(iii) and Section 2(h)(iv) and
Section 2(i) shall apply to each Affiliate of MBUSA in the same manner as which such provisions apply to MBUSA, even if such provisions do not otherwise reference Affiliates of MBUSA; provided, however, that in no event shall the result of this
Section 2(i)(iv) be to make such provision applicable with respect to any vehicle other than an MCG Vehicle. 

  

	 	(v)	Required Wireless Connectivity. For the avoidance of doubt, if any Governmental Entity or standardization body mandates that a telematics service be provided using a specific
protocol and/or connectivity, Section 2(i) shall not apply to such service, mandated protocol or connectivity. 

 (j) ***

 (k) HTI Activities Other Than With Respect to MCG Vehicles and LCT Enabled Vehicles. Nothing in this Agreement shall limit or
preclude HTI’s right or ability to provide any telematics services in any vehicle other than an MCG Vehicle or an LCT Enabled Vehicle on such terms and conditions as HTI determines in its sole discretion. 
 (l) Delay. Notwithstanding anything in this Section 2 to the contrary, HTI shall not be responsible for delays in making the HTI Telematics
Communicator, the HTI Operational System, the Telematics Services or Approved Other Telematics Service available to Subscribers to the extent that an action or failure to act under a duty to act on the part of MBUSA is a *** cause of such delay ***.

 (m) *** 
  

	 	3.	SUBSCRIPTIONS 

 (a) Subscriber Communication and
Agreements. HTI will *** Subscriber Agreements with each Subscriber (including each prospective Subscriber agreeing to become a Subscriber), in accordance with the provisions of this Agreement, including without limitation Section 3(e),
Section 10 and Section 11(b) ***. 
  

 15 

 (b) Billing. HTI will handle all Subscriber billing and Subscriber service functions. All billing
and account management functions will be handled using HTI’s name. If requested by MBUSA, HTI will prominently display Mark(s) of MBUSA on any bill sent to a Subscriber, in a manner approved in advance by MBUSA in writing. 
 (c) Free First Year of Subscription Service to the PASS Services and MBTA Services. HTI will offer the PASS Services and the MBTA Services (other
than those services designated on Exhibit A-2 as premium services) to original owners and lessees of MCG Vehicles without any Subscription Fee or Ancillary Fees for the first year of subscription service (from the date of such purchase or lease),
which fees shall be deemed to be included in the purchase or lease price, as applicable, paid by the original owner or lessee of such MCG Vehicle. HTI shall have the right to assess charges against Subscribers whose use of the PASS Services and MBTA
Services exceed certain limitations *** (collectively, “Excessive Use Charges”) and which Excessive Use Charges shall not constitute Subscription Fees or Ancillary Fees. Additionally, with respect to the services designated on Exhibit A-2
as premium services, HTI will offer such services to original owners and lessees of MCG Vehicles and LCT Enabled Vehicles at *** rates to be determined by HTI, ***. Additionally, with respect to *** for the period between *** HTI shall offer
the *** provided that this sentence shall not apply to charges for those services designated on Exhibit A-2 as premium services, which services are instead subject to the foregoing sentence. 
 (d) Prices for the PASS Services and the MBTA Services for Second and Subsequent Years. HTI will establish the Subscription Fees, Ancillary Fees
and Excessive Use Charges, if any ***; provided that HTI must give MBUSA an opportunity to review the initial Subscription Fees and Ancillary Fees as well as any changes to the Subscription Fees and Ancillary Fees *** at least *** prior to the
proposed effectiveness of any such change, as applicable, and HTI shall negotiate in good faith with MBUSA to address any objections MBUSA raises to such fees. The ultimate determination with respect to the amount of Subscription Fees and Ancillary
Fees shall be made by HTI ***. 
 (e) Subscriber Relationship. HTI shall have primary responsibility for managing the relationship
with Subscribers. HTI’s responsibilities will include: (1) facilitating the execution of the Subscriber Agreements by the Subscriber and HTI (with such assistance as is to be provided by MBUSA and MBUSA’s Dealers, respectively, as set
forth herein***, (2) handling all account management functions in accordance with Exhibit B hereto (including all customer billing matters) and (3) collecting and using Vehicle and Subscriber Data in accordance with this Agreement and its
Exhibits (including, without limitation, Section 10 and Exhibit V and Exhibit AA). 
 (f) Telematics Packages. Subject to
Sections 3(c) and 3(d), HTI shall have the right to determine the composition of Telematics Packages ***. 
  

	 	4.	HTI TELEMATICS COMMUNICATORS 

 (a) Development of HTI
Telematics Communicator. As among HTI and MBUSA, HTI will be responsible for *** the development, research, engineering, manufacture and supply, including all third-party development, research, engineering, manufacturing and supply costs,

  

 16 

 
*** and the HTI Operational System for MCG Vehicles, except that MBUSA will be responsible for *** HTI will be responsible for: ***. Each generation of
hardware design of the HTI Telematics Communicators will *** approved by MBUSA, *** MBUSA may from time to time propose changes to be made to the HTI Telematics Communicator for HTI’s good faith review and consideration. *** in accordance with
the terms of this Agreement or to permit HTI to implement any Telematics Service or Approved Other Telematics Service which HTI makes available to Enabled Vehicles *** Vehicles, HTI shall make available *** which, in either case, prevent HTI from
performing its obligations under this Agreement in accordance with the terms of this Agreement. 
 (b) Purchase and Sale of HTI Telematics
Communicators. For purposes of engaging in HTI Telematics Communicator procurement transactions with DAG, HTI will establish a legal or corporate entity in Europe, in accordance with applicable Laws, which will be primarily responsible for
engaging in and managing such transactions, in particular the acceptance of purchase orders for HTI Telematics Communicators (such entity referred to herein as “HTI Europe”), provided that any such transactions between HTI Europe and DAG
shall be ***. Pursuant to the foregoing sentence, MBUSA will cause DAG to issue to HTI Europe one or more purchase orders for the purchase by DAG of HTI Telematics Communicators from HTI pursuant to this Agreement. DAG may place such orders via an
EDS system. Such procurements shall be made by DAG to meet the procurement needs of both DAG and MBUSA’s other manufacturing Affiliates, and shall result in the shipment of HTI Telematics Communicators to the locations set forth in the purchase
orders. All purchases of HTI Telematics Communicators by DAG from HTI will be ***. For example, without limitation, the payment terms regarding the procurement of the HTI Telematics Communicators are as set forth in Exhibit T. ***. At MBUSA’s
election, DAG may purchase the *** subject to terms negotiated ***. Additionally, at MBUSA’s election, DAG may purchase, at DAG’s cost, *** approved by HTI *** HTI Operational System. Notwithstanding anything in the foregoing to the
contrary, (i) DAG may not purchase *** (ii) DAG may not purchase*** (iii) DAG may not purchase *** (iv) the order forecasts provided by DAG shall specify if ***. 
 (c) Purchase Price. In recognition of, and as consideration for, MBUSA’s willingness to enter into this Agreement, and through its
manufacturing Affiliates to factory-install HTI Telematics Communicators in MCG Vehicles, HTI agrees to sell and deliver MBUSA’s manufacturing Affiliates’ requirements for HTI Telematics Communicators (i) for the number of HTI
Telematics Communicators that such manufacturing Affiliates will install or have installed in MCG Vehicles, to such manufacturing Affiliates at a cost or charge to DAG of *** (ii) for the number of HTI Telematics Communicators required for
replacement in the event of defects covered by warranties within *** (the “Base Warranty”) *** MCG Vehicles, at *** (iii) for the number of HTI Telematics Communicators required for replacement in the event of defects not covered by
the Base Warranty, *** at the cost of *** greater than HTI’s reasonable and actual cost to provide such HTI Telematics Communicators, ***. Additionally, *** and only if MBUSA is not *** but subject to agreement between MBUSA and HTI on the
related technical specifications, *** HTI shall include *** HTI Telematics Communicators ***. MBUSA agrees that it and its manufacturing Affiliates will *** as may be agreed to from time to time between MBUSA or its manufacturing Affiliates and HTI.
Additionally, *** at HTI’s option, MBUSA and HTI shall negotiate in good faith to determine an appropriate increase in the purchase price to be paid by MBUSA or its manufacturing Affiliates for the HTI Telematics Communicators hereunder. ***

  

 17 

 (d) Sourcing and Development Strategy; Approved Suppliers. The manufacturer of the HTI Telematics
Communicator must be an Authorized Manufacturer. The supplier of the HTI Telematics Communicators must be an Authorized Supplier. ***. HTI will be responsible for the timely supply of HTI Telematics Communicators from Authorized Manufacturers
(including through Authorized Suppliers) to MBUSA’s manufacturing Affiliates in sufficient quantities to meet such Affiliates’ requirements *** from time to time. HTI may, at its option, have all or some of the HTI Telematics Communicators
delivered directly to MBUSA’s manufacturing Affiliates by Authorized Manufacturers (or Authorized Suppliers) ***. HTI will be responsible for qualifying any manufacturers of the HTI Telematics Communicators as Authorized Manufacturers if they
are not already Authorized Manufacturers, and for qualifying suppliers of the HTI Telematics Communicators as Authorized Suppliers if they are not already Authorized Suppliers, and MBUSA and its Affiliates shall cooperate in good faith with the
process of qualifying manufacturers as Authorized Manufacturers and suppliers as Authorized Suppliers. MBUSA and its Affiliates shall bear their own costs in support of qualifying manufacturers and suppliers whether proposed by MBUSA, its
manufacturing Affiliates or HTI, as Authorized Manufacturers or Authorized Suppliers, respectively. 
 (e) Technical Specifications.
The final technical specifications for the HTI Telematics Communicators (the “Technical Specifications”) will be determined by HTI and the Authorized Manufacturers ***. Exhibit G and the Technical Specifications may be amended,
supplemented or restated from time to time by mutual agreement among the Parties, including to reflect changes implemented pursuant to the process set forth in Exhibit P. ***. HTI shall promptly notify MBUSA if HTI discovers or acquires actual
knowledge from a source other than MBUSA of any performance issue affecting any part or system of the Enabled Vehicle or the LCT Enabled Vehicle, including the HTI Telematics Communicator, an Other Telematics Communicator or an LCT Communicator,
that results from the MBUSA Specifications. MBUSA shall promptly notify HTI if MBUSA discovers or acquires actual knowledge from a source other than HTI of any performance issue affecting any part or system of the Enabled Vehicle or the LCT Enabled
Vehicle, including the HTI Telematics Communicator, an Other Telematics Communicator or an LCT Communicator, that results from the MBUSA Specifications. The Parties shall negotiate in good faith to determine appropriate means to remedy such issues.
Notwithstanding anything in this Agreement to the contrary, HTI shall not be liable to MBUSA, including pursuant to Section 15(b), in respect of ***. 
 (f) Planned MCG Vehicle Installation Schedule. It is the intent of the Parties that HTI Telematics Communicators or Other Telematics Communicators will be installed by MBUSA through its manufacturing Affiliates
in MCG Vehicles listed on D-1 and produced during the Term starting, with respect to each Vehicle Model, with the year set forth opposite such Vehicle Model on Exhibit D-1. Exhibit D-2 sets forth the current estimated production numbers per calendar
year for each Vehicle Model identified on Exhibit D-1, ***. Additionally, MBUSA shall update Exhibits D-1 and D-2 from time to time to reflect additional Vehicle Models (and Model Lines) manufactured by or for MBUSA for sale within the Territory
that MBUSA intends to be considered a MCG Vehicle *** as of the Effective Date *** any model extensions or replacements thereof), and the estimated production numbers with respect to each 

  

 18 

 
such Vehicle Model; provided, however, that HTI shall not be required to provide HTI Telematics Communicators for installation in any Vehicle Model *** not
originally listed on Exhibit D-1 if MBUSA requires any modifications in the terms and conditions set forth in this Agreement as applied to such Vehicle Model, in which case, the Parties shall negotiate in good faith to attempt to reach agreement on
modified terms applicable to such Vehicle Model, it being understood that neither Party is under any obligation to agree to such terms and, in the absence of such an agreement, this Agreement shall remain in effect with respect to all other Vehicle
Models in accordance with its terms. For the avoidance of doubt, *** and they will only be ***. In the event that, *** following the ***. For all other Vehicle Models listed on Exhibit D-1 (for which the year opposite such Vehicle Model on Exhibit
D-1 has come) ***, if MBUSA, through its manufacturing Affiliates, fails to install HTI Telematics Communicators or Other Telematics Communicators in at least *** percent *** of the total production volume, in the aggregate, for all such MCG
Vehicles, during any calendar year beginning in calendar year 2012, such failure shall constitute a material breach of this Agreement by MBUSA for which HTI’s *** remedies and damages shall ***. 
 (g) Warranty and Warranty Repairs; Service or Recall Campaigns. MBUSA’s Dealers will decide whether to replace the HTI Telematics
Communicators in any applicable Enabled Vehicles covered by the Base Warranty, or during any extended warranty period, or when the MCG Vehicle is not under warranty. ***. With respect to replacements or repairs of HTI Telematics Communicators
purchased from HTI or from HTI’s Authorized Supplier, through HTI, (i) Dealers will place orders for such HTI Telematics Communicators with MBUSA, and MBUSA shall relay such orders to HTI or an Authorized Supplier, as applicable and
(ii) HTI or the applicable Authorized Supplier will ship within *** to locations as directed by MBUSA or its Dealers all HTI Telematics Communicators required as replacements for such Base Warranty, extended warranty or non-warranty repairs.
***. With respect to extended warranty and non-warranty replacements, the cost for each such HTI Telematics Communicator purchased from, or through, HTI, shall be as set forth in Section 4(c). ***. If MBUSA fails to return a replaced HTI
Telematics Communicator purchased from, or through, HTI, to HTI within *** days *** of the replacement HTI Telematics Communicator from or through HTI, MBUSA shall pay to HTI *** depending on the applicable purchase price at the time pursuant to
Section 4(c), for each such HTI Telematics Communicator not so returned. ***. 
 (h) Product Documentation. To the extent that
the HTI Telematics Communicator, the Telematics Services or Approved Other Telematics Services are described in vehicle manuals provided to purchasers or lessees of Enabled Vehicles or LCT Enabled Vehicles (only with respect to Telematics Services
and Approved Other Telematics Services), HTI shall provide to MBUSA *** before the Commencement Date (or, as they relate to LCT Enabled Vehicles, the Transition Services Commencement Date), the text, information, notices, warnings and disclaimers
related to the HTI Telematics Communicators, the HTI Operational System, the Telematics Services and any Approved Other Telematics Services that are required to be included by applicable law or as HTI determines are advisable for MBUSA to include
therein, and which MBUSA shall include therein to the extent they are acceptable to MBUSA after good faith consideration. HTI shall continue to provide to MBUSA any additional or different text, information, notices, warnings and disclaimers that
HTI determines are so required or advisable during the Term. ***. Alternatively, if MBUSA refuses to include in any such vehicle manual 

  

 19 

 
any text, information, notice, warning or disclaimer related to the HTI Telematics Communicators, the HTI Operational System, the Telematics Services or the
Approved Other Telematics Services, as HTI determines is advisable to include therein, MBUSA shall ***, include in each Enabled Vehicle and LCT Enabled Vehicle a separate instruction manual with respect to the HTI Telematics Communicator, the HTI
Operational System, the Telematics Services and/or any Approved Other Telematics Services, containing, among other things, all such text, information, notices, warnings or disclaimers related to the HTI Telematics Communicators, the Telematics
Services and/or the Approved Other Telematics Services that HTI desires to be included in such manual. HTI and MBUSA shall, and DAG shall secure the agreement of the manufacturer or supplier of Other Telematics Communicators or LCT Communicators to,
cooperate in good faith in taking actions equivalent to those described in this Section 4(h) with respect to Enabled Vehicles and LCT Enabled Vehicles containing Other Telematics Communicators and LCT Communicators, respectively, as relates to
such Other Telematics Communicators or LCT Communicators. 
  

	 	5.	RESERVED 

  

	 	6.	RESERVED 

  

	 	7.	TESTING PROTOCOLS AND ACCEPTANCE 

 (a) Testing
Protocols. The Parties agree on the design verification, production validation and continuing conformance testing protocols (“Testing Protocols”) that are set forth on Exhibit G, which may be amended, supplemented or restated from time
to time during the Term by mutual written agreement of the Parties. 
 (b) Acceptance Testing of the HTI System. HTI shall be
primarily responsible for developing the HTI System testing protocols and conducting the acceptance testing of the HTI System against the HTI System testing protocols (“Acceptance Testing”). HTI will submit the HTI System testing protocols
in writing to MBUSA ***. The purpose of such Acceptance Testing is to determine: (i) if the HTI System, in whole or in part, satisfies the Technical Specifications and the MBUSA Specifications, and (ii) that all performance standards for
the HTI System set forth in this Agreement, including its Exhibits, have been met or exceeded. MBUSA and HTI will mutually agree on when the HTI System has satisfied *** such HTI System testing protocols. MBUSA will provide HTI with *** assistance
*** to test the HTI System against the HTI System testing protocols, and MBUSA shall cooperate with HTI in identifying in what respects the HTI System has failed to conform to the HTI System testing protocols. If the HTI System, *** fails to pass
the Acceptance Testing, which failure is revealed in the course of the Acceptance Testing, HTI shall notify MBUSA in writing specifying the nature of such failure in reasonable detail. At MBUSA’s request, HTI shall, at no cost to MBUSA, correct
the problem *** and then repeat the Acceptance Testing for such corrected HTI System. The process should be repeated until the HTI System fully satisfies the HTI System testing protocols and passes the Acceptance Testing. However, in the event that
the HTI System fails the Acceptance Testing after *** MBUSA may exercise its right to terminate the Agreement, without further obligation to HTI. For the avoidance of doubt, *** shall also demonstrate *** and shall be subject to *** unless such
other ***. 
  

 20 

 (c) Testing for Vehicles. All testing for Enabled Vehicles and LCT Enabled Vehicles must be in
compliance with the performance standards and functional performance requirements contained in Exhibit G and where applicable, to the portions of the HTI System testing protocols as defined in Section 7(b) that are dependent on the TCU ***.

  

	 	8.	OTHER TELEMATICS SERVICES 

 In addition to the PASS
Services, the MBTA Services, the Approved Additional Services and the Approved WiMax Services, HTI may provide to Subscribers through the HTI Telematics Communicators, Other Telematics Communicators or LCT Communicators other than by means of
Embedded Cellular Technology or WiMax such other telematics services as HTI has the capability to provide (each an “Other Telematics Service”); provided, however ***. If HTI proposes to *** MBUSA shall *** review such proposal ***. MBUSA
may *** with respect to ***. Unless otherwise agreed in writing by the applicable Parties, HTI shall not *** with respect to ***. 
  

	 	9.	MBUSA SHARING IN SUBSCRIPTION FEES; OTHER PAYMENTS 

 (a)
Payment Obligations. HTI will pay to MBUSA a portion of the Subscription Fees and Excessive Use Charges received by HTI for each Subscriber Vehicle that is an Enabled Vehicle equal to (i) with respect to *** (ii) with respect to ***
(iii) with respect to ***. Notwithstanding anything in the foregoing to the contrary: (i) HTI will not pay MBUSA any amount with respect to *** (ii) no fee sharing is required with respect to ***. 
 (b) ***. 
 (c) Method of Payments.
HTI will pay MBUSA the amounts determined to be owed in accordance with Section 9(a), *** during which the Subscription Fees were received by HTI. *** by wire transfer to MBUSA’s bank account as directed by MBUSA from time to time.

 (d) Supporting Documentation. Within *** after the end of each calendar *** HTI will deliver to MBUSA written documentation
certified by an officer of HTI showing the number of Subscribers and showing the aggregate amount of Subscription Fees *** owed to HTI, and separately the aggregate amount of Subscription Fees *** received by HTI, from Subscribers, on a
model-year-by-model-year basis, during the preceding calendar ***. 
 (e) Additional HTI Services. If, at any time during the Term of
the Agreement, MBUSA requests that HTI provide professional services to MBUSA that are outside of the scope of this Agreement, HTI shall provide such services, at MBUSA’s cost, at commercially reasonable rates, terms and conditions to be
mutually agreed upon by the Parties. 
 (f) ***. 
  

	 	10.	VEHICLE AND SUBSCRIBER DATA 

 (a) Exchange of Vehicle
and Subscriber Data. During the Term in accordance with the general terms set forth in Exhibit V: (x) MBUSA will provide to HTI the Vehicle and 

  

 21 

 
Subscriber Data obtained or derived by it in connection with this Agreement, and (y) HTI will provide to MBUSA the Vehicle and Subscriber Data obtained
or derived by it in connection with this Agreement. The Party receiving information pursuant to this Section 10(a) shall treat such information in accordance with the requirements of this Agreement and all applicable Laws. ***. Each Party may
use the Vehicle and Subscriber Data received from the other Party solely for such Party’s internal use, except that ***. Neither Party shall authorize any third-party to access Vehicle and Subscriber Data provided by the other Party except as
expressly permitted by this Agreement ***. 
 (b) Marketing to Subscribers and Non-Subscribers. ***. HTI agrees to comply with the
limitations determined pursuant to the preceding sentence. ***. The terms for any such arrangement shall recognize the right of each of HTI, on the one hand, and MBUSA, on the other hand, to be compensated for the value inherent in the receipt and
use by the receiving Party of the information contemplated by such arrangement. The Parties also will consider in good faith each request for additional similar information made by the other Party from time to time subject to the availability of
such information. ***. If HTI proposes to send a direct marketing campaign to non-Subscribers using contact information to be supplied by MBUSA, MBUSA may *** and instead, if HTI so agrees, MBUSA may conduct the direct marketing itself ***.

 (c) Subscriber Consents. All Personal Information is “owned” by the Subscriber. Each Subscriber Agreement will:
(i) require the Subscriber’s consent to the acquisition and sharing of all Vehicle and Subscriber Data by and between HTI and MBUSA (and with Vendors and Dealers) freely, and to MBUSA’s and HTI’s use of such data to perform the
Telematics Services and Approved Other Telematics Services to which such Subscriber has subscribed, and, by MBUSA, for MBUSA’s purposes of internal research and improvement and development of vehicles and, by HTI (but not including diagnostic
data other than with MBUSA’s express written consent and approval in each instance), for HTI’s purposes of internal research and improvement and development of telematics services, and (ii) provide the Subscriber with an opportunity
to consent to the Supplemental Use of the Vehicle and Subscriber Data. ***. However, Subscriber consent for Supplemental Use is only necessary if the Supplemental Use makes use of Personal Information, unless otherwise required by applicable Law.
Subscriber consent is not necessary for use of aggregate non-personally identifiable data for Supplemental Use, unless otherwise required by applicable Law. ***. 
 (d) MBUSA Approval of Vehicle and Subscriber Data Access and Supplemental Uses. HTI shall obtain the written consent of MBUSA prior to (x) obtaining or deriving any Vehicle and Subscriber Data of a type
not set forth on Exhibit V (as Exhibit V may be revised from time to time by mutual written agreement of the Parties), or (y) using any Vehicle and Subscriber Data (irrespective of whether it is personally identifiable or aggregated) for any
Supplemental Use (including sale or transfer of data to third parties) that has not been previously approved by MBUSA. MBUSA will in good faith review each written proposal by HTI to obtain or derive Vehicle and Subscriber Data of a type not set
forth on Exhibit V, or to use it for a Supplemental Use, and will ***. MBUSA shall not withhold its consent to a proposed Supplemental Use by HTI (as permitted by the foregoing sentence) if a principal purpose of withholding such consent is ***.

  

 22 

 (e) Data Security. HTI and MBUSA shall handle and protect the Vehicle and Subscriber Data
(including any credit card or other payment card information collected, stored, processed or transmitted in connection with customer billing matters) in accordance with the standards and provisions set forth on Exhibit AA ***. HTI will inform MBUSA
of any complaints it receives from Subscribers regarding privacy or data security and MBUSA will inform HTI of any complaints it receives from Subscribers regarding privacy or data security. The Party receiving such complaint will handle and respond
to such complaints promptly and with a high level of customer service and the Parties will cooperate in good faith with respect thereto. 
 (f) Privacy Contact Points. Each of MBUSA and HTI shall designate an individual contact person within its organization to act as a contact point with regard to privacy, data security and other issues relating to the items addressed
in this outline and Exhibit V and Exhibit AA. Each Party shall provide the contact information of its contact person to the other Party. 
 (g) Survival of Rights to Use Vehicle and Subscriber Data and Supplemental Uses. The rights and restrictions applicable to each Party’s use of the Vehicle and Subscriber Data shall survive termination of the Agreement. ***.

  

	 	11.	MARKETING 

 (a) Marketing Plan. HTI and MBUSA will
together develop a strategic marketing launch and sales plan for the sale of the Telematics Services, and Approved Other Telematics Services in Enabled Vehicles and LCT Enabled Vehicles. HTI will provide ongoing marketing and sales support at a
level deemed reasonably appropriate by the Parties. MBUSA will provide assistance at a level it reasonably deems appropriate to support HTI in developing and sustaining its marketing and sales plans, and the Parties will negotiate in good faith to
develop any joint plans consistent therewith. Except for the requirement to comply with Section 10, Section 19 and Section 46, nothing herein shall preclude HTI’s right to develop and launch marketing plans for Telematics
Services or Approved Other Telematics Services independent of MBUSA marketing programs. 
  

	 	(i)	Marketing Plan. *** HTI shall develop and deliver to MBUSA a written marketing plan to promote the sales of the telematics services in Enabled Vehicles ***. 

  

	 	(ii)	 Advertising. MBUSA shall *** advertise the availability of the Telematics Services in Enabled Vehicles and LCT Enabled Vehicles and to market the Telematics
Services in a manner consistent with MBUSA’s marketing of other key features. Additionally, MBUSA and HTI shall cooperate with respect to the inclusion in such advertisements, with HTI’s approval, of descriptions of Approved Other
Telematics Services. MBUSA shall *** encourage all retail purchasers or lessees of Enabled Vehicles and LCT Enabled Vehicles to continue to subscribe to the Telematics Services and Approved Other Telematics Services ***. HTI shall *** encourage all
retail purchasers or lessees of Enabled Vehicles and LCT Enabled Vehicles to continue to subscribe to the Telematics 

  

 23 

	 	 
Services and Approved Other Telematics Services. Each Party shall cooperate in the development of web-based marketing activities related to the Telematics
Services and Approved Other Telematics Services, which activities are subject to MBUSA’s approval and consent in each case. 

  

	 	(iii)	Dealer Support. MBUSA shall provide marketing and instructional information *** to MBUSA Dealers relating to the availability of HTI Telematics Communicators and Other
Telematics Communicators, including dealer training ***, to existing and new MBUSA Dealers *** cause the MBUSA Dealers to use such information and to prominently display signage and brochures relating to the Telematics Services and Approved Other
Telematics Services, and to provide demonstrations of the Telematics Services and Approved Other Telematics Services. MBUSA shall work with HTI to design, and MBUSA shall create and provide to MBUSA Dealers and *** cause them to (x) use
in-vehicle marketing materials and (y) place other branded material in the vehicle, in each case, to draw attention to the availability of the Telematics Services and Approved Other Telematics Services in each Enabled Vehicle or LCT Enabled
Vehicle. MBUSA shall *** cause MBUSA Dealers to actively promote the Telematics Services and Approved Other Telematics Services to purchasers and lessees of Enabled Vehicles and LCT Enabled Vehicles, to demonstrate the Telematics Services and
Approved Other Telematics Services, to assist new customers by explaining the Telematics Services and Approved Other Telematics Services during the vehicle delivery process, and to offer retail purchasers and lessees the opportunity to enter into a
Subscriber Agreement, in accordance with HTI’s and MBUSA’s standard policies in effect from time to time. Each Party agrees that the marketing message should be clear and consistent with the MBUSA and HTI brand images ***. HTI shall
cooperate with MBUSA in connection with HTI’s communications with MBUSA Dealers to facilitate coordination and consistency of messaging. 

  

	 	(iv)	Brand Name. Except as may otherwise be agreed by HTI and MBUSA in writing, HTI shall market the MBTA Services under the *** name. MBUSA represents and warrants to HTI that it
(or its Affiliate) holds sufficient rights in the *** name to permit HTI to utilize such brand name pursuant to this Agreement. 

  

	 	(v)	Market Research. HTI and MBUSA will devote such resources as each deems appropriate, in its sole discretion, to conduct market research to understand the buying behaviors and
motivations of purchasers or lessees of Enabled Vehicles and LCT Enabled Vehicles who become HTI Subscribers and to maximize use of the Telematics Services and Approved Other Telematics Services by Subscribers. 

  

 24 

 (b) Subscriber Agreements. 
  

	 	(i)	The Parties will cooperate in good faith to identify and implement processes for encouraging purchasers and lessees of Enabled Vehicles and LCT Enabled Vehicles to enter into
Subscriber Agreements with HTI, pursuant to Section 3 of this Agreement, including, unless the Parties agree to obtain Subscriber Agreements in a different manner, cooperating in efforts to encourage MBUSA Dealers to assist with the efforts of
securing *** Subscriber Agreements to HTI. HTI will make Subscriber Agreements available to purchasers or lessees of Enabled Vehicles ***, notwithstanding that Telematics Services or Approved Other Telematics Services will not be provided to such
Enabled Vehicles prior to the Commencement Date. 

  

	 	(ii)	HTI shall ensure that the Subscriber Agreements contain all disclosures, notices and consents required by applicable Laws regarding privacy, data collection and use, data sharing,
data security, etc. (including those necessary to effectuate the rights set forth in this Agreement, including Exhibit V, and all necessary rights to HTI, MBUSA, either of their call centers and other agents, and Dealers), as such Laws may change
from time to time, which changes HTI shall promptly incorporate into the Subscriber Agreements ***. Consent language used to obtain Subscriber consent to the sharing of their personally-identifiable data with third parties for Supplemental Uses
shall be reasonably clear, specific and conspicuous to the extent required by applicable Laws ***. HTI shall obtain from all Subscribers pursuant to the Subscriber Agreement, as a condition to the receipt of services thereunder, any consents
required by Law for HTI to share Vehicle and Subscriber Data with MBUSA and its Affiliates ***. Additionally, HTI will include in the Subscriber Agreement provisions related to the limitation of MBUSA’s liability to Subscribers ***.

  

	 	12.	ON-SITE ENGINEERING STAFFING, ACCESS TO DAIMLER PREMISES AND USE OF DAIMLER VEHICLES 

 (a) Compliance with MBUSA Rules and Policies. When any HTI or Authorized Manufacturer or Authorized Supplier personnel are on MBUSA or its Affiliate’s premises or operate a vehicle provided by MBUSA, they
must comply with all applicable MBUSA or its Affiliate’s rules, regulations and policies in effect from time to time, including such matters as working hours, holidays and security measures, and agree, as a condition for gaining such access or
operating such vehicles, to be bound by MBUSA’s or its Affiliate’s standard provisions ***. 
 (b) Access to MBUSA Personnel and
Use of MCG Vehicles and LCT Enabled Vehicles. MBUSA will provide HTI or Authorized Manufacturer with reasonable access to a reasonable number of MCG Vehicles and LCT Enabled Vehicles *** for testing of HTI Telematics Communicators, the Other
Telematics Communicators and the LCT Communicators in conjunction with the HTI Operational System. MBUSA will *** also provide HTI or 

  

 25 

 
Authorized Manufacturer reasonable access to personnel involved with the MBTA Services and installation of HTI Telematics Communicators in MCG Vehicles and
to information related to MCG Vehicles as such may reasonably impact the MBTA Service or the HTI Operational System. 
 (c) Compliance
with DAG and MBUSA Rules and Policies. Subject to Section 47, HTI will comply with: 
  

	 	(i)	*** 

  

	 	(ii)	*** 

  

	 	13.	HTI MILESTONE REQUIREMENTS 

 (a) Milestone
Requirements. To ensure compliance with the required deadlines in Section 2(f) for the HTI Operational System to become operational to the full extent required to deliver the PASS Services and the MBTA Services in accordance with
Section 2 of this Agreement, and the PASS Services and the MBTA Services to become available to all Subscribers, HTI shall meet each Material Milestone Obligation identified in the attached Exhibit N by the respective dates set forth therein
(“Milestone Requirements”) or else pay the applicable penalties set forth, if any, for each milestone in Exhibit N; provided, however, that HTI shall not be responsible for any delay in meeting a Milestone Requirement to the extent the
delay directly results from any action or failure under a duty to act on the part of MBUSA or any change in the Technical Specifications required by MBUSA and which delay HTI could not reasonably avoid, overcome or mitigate in order to meet the
Milestone Requirement. 
 (b) Required Notification. HTI will provide MBUSA with prompt written notification of any issues that arise
during the Term that HTI should reasonably expect to adversely affect the ability of HTI to meet any of its Milestone Requirements. 
 (c)
Cure. HTI shall have a period of *** days in which to cure a breach of a Milestone Requirement; however, such cure period shall have no effect on the milestone penalties set forth on Exhibit N. 
  

	 	14.	INTELLECTUAL PROPERTY 

 (a) Ownership of Prior Developed
and Contributed Intellectual Property. All Intellectual Property developed or created prior to the initiation of collaborative efforts between the Parties regarding telematics services or outside of the scope of this Agreement during the term of
this Agreement (the “Separate Intellectual Property”) is and shall remain the property of the Party which made, developed, created or presently owns such Separate Intellectual Property and, unless otherwise expressed in this Agreement, no
license is implied or granted herein to any Separate Intellectual Property. For the avoidance of doubt, as between the Parties, the MBUSA Property constitutes MBUSA’s Separate Intellectual Property, and MBUSA or its Affiliates, or both, shall
own and retain, solely and exclusively, any and all copyright interests in and to the MBUSA Interface Specifications, as well as *** not including any Intellectual Property rights in or to the *** and the MBUSA Interface Intellectual Property is
deemed MBUSA’s Separate 

  

 26 

 
Intellectual Property and to be Confidential Information for purposes of Section 16. For the avoidance of doubt, a modification of *** shall not be
deemed to be a *** made for the *** to the extent that such *** to which MBUSA does not have *** and which does not infringe MBUSA’s Intellectual Property rights. 
 (b) Ownership of Fruit of the Agreement Intellectual Property. Except as set forth in Section 14(a) above or Section 14(c) below, in the event that any new Intellectual Property right arises out
of either Party’s activities under this Agreement (such Intellectual Property Rights to be referred to herein as “Fruit of the Agreement Intellectual Property”), such Intellectual Property right shall be owned by ***. In no event
shall MBUSA Interface Intellectual Property be considered Fruit of the Agreement Intellectual Property. 
 (c) Ownership of Intellectual
Property in Approved Additional Services, Approved WiMax Services and Approved Other Telematics Services. In the event that the Parties agree, pursuant to Section 2(h) or Section 8, to Approved Additional Services, Approved WiMax
Services or Approved Other Telematics Services, the Parties shall negotiate in good faith any mutually agreeable modifications to the provisions of Section 14(a), Section 14(b) and Section 14(d) as applicable to the Intellectual
Property Rights applicable to such telematics service and appropriate licenses between them, and such allocation of rights and licenses, if any, shall be set forth in the amendment to this Agreement entered into pursuant to Section 2(h) or
Section 8 of this Agreement (it being understood that agreement on such allocation of rights and licenses is not a precondition to the approval of an Approved Additional Service proposed by HTI pursuant to Section 2(h)(i)). 
 (d) License of Intellectual Property Rights. 
  

	 	(i)	 HTI hereby grants to MBUSA and its Affiliates a limited, non-exclusive, non-transferable (except in conjunction with a permitted assignment of this Agreement),
non-sublicensable (except in connection with a permitted sub-contract of performance obligations under this Agreement), irrevocable (subject to the last sentence of this Section 14(d)(i)) royalty-free license in and to (i) the patent
rights inherent in HTI’s Separate Intellectual Property and Fruit of the Agreement Intellectual Property to sell, lease and provide maintenance and repair service to Enabled Vehicles and LCT Enabled Vehicles and use the HTI Telematics
Communicators in the production of Enabled Vehicles or the provision of maintenance and repair services to Enabled Vehicles or LCT Enabled Vehicles, and (ii) the copyrights included in HTI’s Separate Intellectual Property and Fruit of the
Agreement Intellectual Property (other than with respect to software code) within the Territory to reproduce, modify, make derivatives work of, distribute, publish, in each case, such copyrighted works solely for the purpose of performing its
obligations and exercising its express rights under this Agreement. ***. For the avoidance of doubt, the license granted to MBUSA and its Affiliates pursuant to this Section 14(d)(i) shall not constitute an express right for MBUSA or any of its
Affiliates to, or otherwise authorize MBUSA or its Affiliates to, utilize HTI’s Separate Intellectual Property or HTI’s Fruit of the Agreement Intellectual Property 

  

 27 

	 	 
to ***. Notwithstanding anything in the foregoing to the contrary, HTI shall have the right to terminate the license granted pursuant to this
Section 14(d)(i) in the event that MBUSA or any of its Affiliates materially breaches the scope of such license and fails to cure such material breach within ***. 

  

	 	(ii)	During the term of this Agreement, MBUSA may provide MBUSA Property to HTI solely for HTI’s use in fulfilling HTI’s obligations hereunder. Subject to the terms and
conditions of this Agreement, MBUSA hereby grants HTI ***. 

 (e) *** 
 (f) *** 
 (g) *** 
 (h) No Infringement. HTI covenants that, except with regard to the Infringement Exceptions, neither the HTI System, nor any component thereof, nor
any of the Telematics Services or Approved Other Telematics Services provided by HTI, nor the use of any of the foregoing (other than as results from any infringement a proximate cause of which was either the installation of Other Telematics
Communicators or the use of LCT Communicators), will infringe, misappropriate or violate any third party Intellectual Property right ***. 
 (i) Date or Time Functionality Processing. HTI shall be responsible, at HTI’s cost, for repairing any error relating to date or time functionality processing, so that no such error results in any degradation of performance or
functionality specifically arising from, relating to or including such error. HTI shall have the right, in HTI’s discretion, to repair any such error by making adjustments in the HTI Telematics Communicator or otherwise modifying the HTI
System, provided that the same shall continue to conform to the requirements of this Agreement. 
  

	 	15.	INDEMNIFICATION 

 (a) Intellectual Property
Indemnification. 
  

	 	(i)	HTI will defend, indemnify and hold MBUSA and its Affiliates and Dealers, and its and their officers, employees, directors, successors and permitted assigns (collectively, the
“MBUSA Indemnitees”) harmless from and against any loss, damage, liability, claim or expense, including reasonable attorney fees and expenses, in connection with or arising from claims by third parties of violation or infringement of any
Intellectual Property right (including libel, slander, defamation, invasion of the right of privacy, or violation or infringement of copyright, patents, trade marks, service marks, and misappropriation of trade secrets) relating to *** (except with
regard to Infringement Exceptions, to the extent *** and will, in the case of such violation or infringement (other than those exempted *** either *** such that the modified services no longer violate or infringe, in a manner so that such
modification does not substantially impair the functionality or performance of such services. 

  

 28 

	 	(ii)	MBUSA will defend, indemnify and hold HTI, its Affiliates and their officers, employees, directors, successors and permitted assigns (collectively, the “HTI Indemnitees”)
harmless from and against any loss, damage, liability, claim or expense, including reasonable attorney fees and expenses, in connection with or arising from claims against the HTI Indemnitees by third parties that *** and will, in the case of such
infringement, either ***. 

 (b) General Indemnification. 
  

	 	(i)	HTI will defend, indemnify and hold the MBUSA Indemnitees harmless from and against any cost, loss, damage, liability, claim or expense, including reasonable attorney fees and
expenses, arising from (A) any third party claim arising from *** (B) any claims *** provided by HTI under this Agreement, including any failure to answer calls from Subscribers’ Vehicles or dispatch necessary assistance or other acts
or omissions in answering such calls or effectuating such requests, (C) any third party allegation that *** (D) any other third party *** (E) any third party *** (F) any third party claims arising from *** (G) any third
party claims arising from ***. HTI’s indemnification obligations shall include *** including without limitation, ***. With respect to any claim by *** giving rise to a claim for indemnification pursuant to the preceding sentence or the first
sentence of Section 15(b)(ii), if such claim is part of a *** HTI’s indemnification responsibility shall be limited solely to *** HTI or its Authorized Manufacturer, Authorized Supplier, or other agent or contractor. For the avoidance of
doubt, HTI shall not have any indemnification obligations with respect to any damages resulting from ***. 

  

	 	(ii)	MBUSA will defend, indemnify and hold the HTI Indemnitees harmless from and against any loss, damage, liability, claim or expense, including reasonable attorney fees and expenses,
directly arising from third party claims (A) that any *** (B) to the extent *** breach by *** or (C) any claims ***. 

 (c) Indemnification Procedure. Whenever a claim arises for indemnification under this Section 15, the Person entitled to indemnification (the “Indemnified Party”) will promptly notify the Party from which
indemnification is sought (the “Indemnifying Party”) of such claim and, when known, the facts constituting the basis for such claim; provided, however, that in the event of any claim for indemnification hereunder resulting from or in
connection with any claim by a third party, the Indemnified Party will give such notice thereof to the Indemnifying Party not later than *** Days prior to the time any response to the asserted claim is required, if possible, and in any event within
*** Days following receipt of notice thereof (provided that failure to notify the Indemnifying Party will not relieve the Indemnifying Party of any liability it 

  

 29 

 
may have to the Indemnified Party, except to the extent that the Indemnifying Party has been actually prejudiced by such failure). Following receipt of
notice of a claim by a third party, and provided that the Indemnifying Party has not failed or is not failing to use reasonable efforts to defend such claim, the Indemnifying Party will have the option, at its cost and expense, to assume the defense
of such matter and to retain counsel to defend any such claim, and the Indemnifying Party will not be liable to the Indemnified Party for any fees of other counsel or any other expenses (except as expressly provided to the contrary herein) with
respect to the defense of such claim or litigation, other than reasonable fees and expenses of counsel employed by the Indemnified Party for any period during which the Indemnifying Party has not assumed the defense thereof. The Indemnified Party
will have the option of joining the defense of such claim (which will be at the sole cost and expense of the Indemnified Party) with counsel not reasonably objected to by the Indemnifying Party and counsel for each Party will, to the extent
consistent with such counsel’s professional responsibilities, cooperate with the other Party and any counsel designated by that Party. In effecting the settlement or compromise of, or consenting to the entry of any judgment with respect to, any
such claim, the Indemnifying Party, or the Indemnified Party, as the case may be, will act in good faith, will consult with the other Party and will enter into only such settlement or compromise or consent to the entry of any judgment as the other
Party will consent, such consent not to be unreasonably withheld, conditioned or delayed. If an Indemnifying Party has failed or is failing to use reasonable efforts to defend such a claim, the Indemnified Party may, at the Indemnifying Party’s
expense, assume the defense of such claim, with counsel reasonably acceptable to the Indemnifying Party; provided, however, that the Indemnified Party shall not have the right to settle such claim without the consent of the Indemnifying Party, which
consent shall not be withheld unless the Indemnifying Party notifies the Indemnified Party in writing of the Indemnifying Party’s commercially reasonable basis for withholding such consent. An Indemnifying Party will not be liable for any
settlement, compromise or judgment not made in accordance with the preceding sentence; provided, however, that, notwithstanding anything to the contrary in this Section 15, no consent of the Indemnifying Party to the settlement or compromise of
any claim by the Indemnified Party will be necessary to the extent that the Indemnified Party provides the Indemnifying Party with an unqualified release from liability in respect of such third-party claim. Without limiting the generality of the
foregoing, with respect to any Multiple-Cause Action, HTI and MBUSA shall reasonably cooperate with respect to the defense of such action, which may include entering into joint defense or other similar arrangements. Additionally, nothing in
Section 15(b) is intended to limit HTI’s right to assert a defense arising under Section 4(e) (regarding damages caused by errors or omissions in the specifications and requirements set forth in Exhibit G), including as a cross claim
in any proceeding otherwise subject to Section 15(b). For the avoidance of doubt, the Indemnifying Party’s obligations under this Section 15 shall include, without limitation, the obligation to compensate the Indemnified Party for
***. 
 (d) Survival. The indemnity obligation under this Section 15 will survive the termination or expiration of this
Agreement. 
 (e) Purchase Order Indemnity. The indemnities contained in Exhibit S and Exhibit T shall apply to all purchases made by
DAG of HTI Telematics Communicators. 
 (f) Applicability of Indemnification Procedures. In addition to claims arising under this
Section 15, the provisions set forth in Section 15(c) shall be applicable to any other claim for 

  

 30 

 
indemnification asserted by either Party under this Agreement or otherwise in connection with the transactions contemplated hereby, including, without
limitation, any claim for indemnification *** Exhibit S and Exhibit T. 
  

	 	16.	CONFIDENTIALITY 

 (a) Confidential Information.
“Confidential Information” means, with respect to a Party, all information or material that gives that Party some competitive business advantage or the opportunity of obtaining such advantage and is either (i) marked
“Confidential”, “Restricted”, “Proprietary Information”, or has similar marking or (ii) any information or materials *** confidential. For the avoidance of doubt, notwithstanding the foregoing, ***. Notwithstanding
the foregoing, Confidential Information will not include information which: (a) is or becomes generally known to the public through no wrongful act of the receiving Party, (b) as evidenced by contemporaneous documentation, was previously
known to the receiving Party or rightly received by the receiving Party from a third party without obligation of confidentiality, (c) is disclosed to third parties by the disclosing Party on a non-confidential basis, or (d) is
independently developed by the receiving Party without reference to information received from the disclosing Party or derived therefrom. 
 (b) Nondisclosure Obligations. Neither HTI nor MBUSA will disclose (whether orally or in writing, or by press release or otherwise) to any third party for a period of *** from first receipt any Confidential Information of another
Party, except ***; (ii) disclosure as may be required by Law, whereupon the disclosing Party shall provide prompt written notice to the other Party prior to such disclosure, so that the other Party may seek a protective order or other
appropriate remedy, (iii) disclosure to each Party’s respective officers, directors, employees, agents, consultants, accountants and attorneys in their capacity as such, and who have a “need to know,” provided that the Party
making such disclosure *** shall be responsible for any breach by such recipients of the provisions of this Section 16(b), or (iv) disclosures to which the owner of the Confidential Information has given its express, written consent. ***.
Additionally, subject to the last sentence of Section 16(a), the existence and terms of this Agreement shall constitute Confidential Information at all times during the Term and for six (6) years thereafter (notwithstanding the general ***
limitation on the obligations with respect to Confidential Information hereunder). Each Party will use Confidential Information received from the other Party only for the purpose of performing its obligations and exercising its rights hereunder,
and, if necessary, to enforce its rights against another Party under this Agreement. 
 (c) Discontinuation of Use of Confidential
Information Upon Termination. Upon termination of this Agreement for any reason, each Party will immediately discontinue use of any Confidential Information of another Party, except to the extent necessary to perform any continuing obligation
under this Agreement, and each Party shall promptly, at the other Party’s option, either return or destroy all (or, if such Party so requests, any part) of the Confidential Information in its possession or control, and all copies thereof.

  

	 	17.	TAXES 

 HTI will be solely responsible for the complete
collection and remission of all sales, use and telecommunication taxes. 
  

 31 

	 	18.	TELECOM CONNECTIVITY MANAGEMENT 

 HTI will be solely
responsible for the relationship with wireless carriers used by HTI to provide the Telematics Services or Approved Other Telematics Services under this Agreement ***. In conjunction with the provision of Transition Services, HTI intends to take over
responsibility for CDMA connectivity of all LCT Enabled Vehicles that were owned or leased by Transition Customers prior to the Transition Services Commencement Date after the expiration of the current MBUSA/Verizon Wireless telecommunications
contract. *** shall give reasonable advance notice (as determined based upon the nature of the decision and the time available for making such determination) and an opportunity to comment to MBUSA with respect to determinations made *** in good
faith constitute material network technology matters. Additionally ***, MBUSA and HTI shall hold an annual meeting to discuss network technology matters. 
  

	 	19.	OWNERSHIP AND USE OF TRADEMARKS 

 The Parties recognize
each other’s rights in their respective trademarks, service marks, trade names and logos. Neither HTI nor MBUSA will make any use of the trademarks, service marks, trade names or logos (collectively the “Marks”) or domain names of the
other Party, except as specifically approved by the other Party in writing ***. Each Party hereby grants to the other Party ***, subject to the owning Party’s *** in each case, under this Agreement. Except as permitted by United States
trademark law and except as expressly provided herein, nothing in this Agreement will imply the grant by HTI, MBUSA to the other Party of a license to use (i) its trademark, service mark, trade name or logo or those of any of its Affiliates in
connection with advertising, licensing, marketing or any other use, or (ii) any trademark, service mark, trade name or logo that is confusingly similar to its or any of its Affiliates’ names or marks. Without limiting the generality of the
foregoing, (i) HTI acknowledges and agrees that the words “Mercedes-Benz”, “Mercedes”, “Maybach”, and “Smart”, “Tele Aid” and the Three-Pointed Star Within a Circle, the Maybach logo and the
Smart logo are the solely owned trademarks and trade names of Daimler AG, and (ii) MBUSA acknowledge and agree that the words “Hughes”, “Hughes Telematics”, “Networkcar”, and “HTI” are the solely owned
(or licensed) trademarks and trade names of HTI or its Affiliates. HTI agrees that the MBUSA Marks, and any goodwill appurtenant thereto, shall be owned exclusively by MBUSA and shall inure solely to the benefit of MBUSA, and MBUSA agrees that the
HTI Marks, and any goodwill appurtenant thereto, shall be owed exclusively by HTI and shall inure solely to the benefit of HTI. ***. 
  

	 	20.	AUDIT RIGHTS 

 (a) Audit Rights for MBUSA. HTI will
maintain accurate and complete books and records relating to the HTI Operational System, the HTI Telematics Communicators, the Telematics Services and the Approved Other Telematics Services which are provided by HTI, HTI’s performance of this
Agreement, and any and all amounts received and receivable from Subscribers for Telematics Services or Approved Other Telematics Services pursuant to a Subscriber Agreement. HTI will maintain all such records until at least *** following the date
that HTI no longer provides services pursuant to this Agreement and for such longer time as may be required by Law or as may be required in connection with pending litigation. During the 

  

 32 

 
Term and for a period ending *** after HTI no longer provides any telematics service pursuant to this Agreement, MBUSA or its authorized representatives will
have the right, at its expense, to reasonably inspect, audit, and copy such books and records of HTI, at HTI’s offices, during normal business hours upon not less than thirty (30) days’ prior written notice, to the extent the books
and records relate directly to the performance of HTI’s obligations, any amounts received or receivable from Subscribers for Telematics Services or Approved Other Telematics Services pursuant to Subscriber Agreements, HTI’s costs of
providing the Telematics Communicators at various times under various circumstances (pursuant to Section 4(c)), and any claim for payment hereunder. Additionally, MBUSA shall have the right, at its expense, to *** for the purpose of conducting
an audit relating to HTI’s *** and HTI shall be responsible for making arrangements for MBUSA to have the right to *** at its expense, ***. Any information of HTI provided during such audits will be treated as Confidential Information of HTI in
accordance with Section 16 *** MBUSA shall be required to ***. 
 (b) Maintenance of Records. MBUSA shall, or, as applicable,
shall cause its manufacturing Affiliates to maintain accurate and complete records relating to their installation of HTI Telematics Communicators and Other Telematics Communicators and the sale or leasing of Enabled Vehicles and LCT Enabled
Vehicles. MBUSA will maintain all such records until at least *** following termination or expiration of this Agreement and for such longer time as may be required by Law or as may be required in connection with pending litigation 
  

	 	21.	EXECUTIVE STEERING & OPERATING COMMITTEES 

 (a)
Executive Steering Committee. In order to monitor, coordinate and facilitate implementation of the terms and conditions of this Agreement, the Parties shall establish an “Executive Steering Committee” consisting of at least one
(1) vice president or equivalent from each Party and an equal number of members. The Executive Steering Committee shall provide general oversight of the terms and conditions of this Agreement and shall work in good faith to resolve any Disputes
that cannot be resolved by the Operating Committee in accordance with Section 28 below. Additionally, the Executive Steering Committee shall discuss new business development opportunities with respect to telematics services. 
 (b) Operating Committee. The “Operating Committee” shall consist of one (1) representative of each Party from the following
functional areas (to the extent such function areas are applicable to a Party): development, marketing, parts and service, sales, quality assurance, warranty, engineering and other areas as appropriate. The Operating Committee shall be responsible
for the day-to-day operations related to the implementation of the terms and conditions of this Agreement and the exhibits hereto, and shall be the initial group that shall address Disputes in accordance with Section 28 below. Additionally, the
Operating Committee shall discuss plans by HTI to provide new telematics services prior to HTI submitting its formal proposal to MBUSA for consent to and approval of such services. 
 (c) Procedures. The Executive Steering Committee representatives shall meet at least semi-annually (or more frequently if needed) during the Term
and the Operating Committee representatives shall meet at least quarterly (or more frequently if needed) during the Term. The Steering Committee and Operating Committee representatives for each Party shall stay reasonably apprised of the activities
of the employees, agents and contractors of such Party who are involved in the performance of any services hereunder. 
  

 33 

 (d) Scope of Duties. Without limiting the responsibilities of the Executive Steering Committee and
the Operating Committee, it is expected that these committees will routinely discuss: (1) any modifications to the Telematics Services and any telematics services that HTI plans to add as Additional Services or Other Telematics Services,
(2) the Technical Specifications and installation procedures for the HTI Telematics Communicators, (3) the implementation and any modification of the terms of each of the exhibits to this Agreement, (4) any further assistance to be
provided by HTI, MBUSA, (5) matters related to costs allocated between the Parties hereunder, (6) network technology matters, (7) matters related to the use of Vehicle and Subscriber Data, and (8) any objections raised by a Party
hereunder under any provision providing for such Party to have a right to raise objections. ***. 
  

	 	22.	LEGAL COMPLIANCE 

 Each Party will comply in all material
respects with all applicable Laws in the performance of its obligations and exercise of its rights under this Agreement. Without limiting the foregoing, HTI will comply in all material respects with all applicable Laws in the operation of the HTI
Operations System and the delivery of the Telematics Services and Approved Other Telematics Services. 
  

	 	23.	REPRESENTATIONS AND WARRANTIES 

 (a) Corporate
Representations and Warranties. ***, each Party represents and warrants to the other Parties that: (1) it is duly organized, validly existing and in good standing under the Laws of the state under which it is organized; (2) it has the
power and authority to enter into this Agreement and to perform fully its obligations hereunder; (3) it is under no contractual or other legal obligation that will in any way interfere with its full, prompt and complete performance hereunder;
(4) the individual executing this Agreement on its behalf has the authority to do so; and (5) the obligations created by this Agreement, insofar as they purport to be binding on it, constitute legal, valid and binding obligations
enforceable in accordance with their terms. 
 (b) HTI Representations and Warranties. Except as may result solely and directly from
any action or inaction in the face of a duty by MBUSA, HTI represents and warrants to MBUSA that the Telematics Services and Approved Other Telematics Services will be provided in accordance with *** any applicable Laws. ***. 
  

	 	24.	REQUIRED INSURANCE 

 HTI will provide and maintain during
the Term of this Agreement and for such additional periods in which HTI provides telematics services to any MCG Vehicle or LCT Enabled Vehicle, insurance coverage with commercially acceptable companies rated no less than an A- by A.M. Best in with
at least the following limits (excess liability policies used to meet the limits required for (a), (b) and (c) below must follow form): 
  

			
	(a) General Liability (including contractual liability)	  	***

  

 34 

			
	(b) Professional Services Liability	  	***
		
	(c) Automobile Liability (including non-owned vehicles)	  	***

  
 (d) Workers
Compensation for all states where work is performed Statutory Limit including: 
 *** 
 Notwithstanding anything in the foregoing to the contrary, HTI shall not be obligated to provide and maintain the coverages referenced in items (a) and
(b) above prior to the Commencement Date or the Transition Services Commencement Date, whichever is earlier. Such policies *** will name MBUSA, DAG and Mercedes-Benz U.S. International, Inc. as additional insureds thereunder ***. HTI will cause
its insurance broker(s) to furnish to MBUSA certificates of insurance within fifteen (15) days following HTI’s execution of this Agreement. Such certificates will provide for thirty (30) days advance written notice of cancellation,
material change in coverage or non-renewal of coverage. ***. 
  

	 	25.	TERM 

 Unless earlier terminated pursuant to the terms of
this Agreement, the term of this Agreement will commence as of the Effective Date and will expire on June 16, 2016 (the “Term”). 
  

	 	26.	TERMINATION OF AGREEMENT 

 (a) Right to Terminate.
If either Party (1) substantially breaches any of its material obligations hereunder (including, without limitation, the Material Milestone Obligations) and fails to remedy that breach within *** days after that breach has been called to its
attention by written notice from the other Party, which written notice shall describe such breach in reasonable detail, (2) files a petition in bankruptcy or makes a general assignment for the benefit of creditors or otherwise acknowledges
insolvency, or is adjudged bankrupt, (3) commences or is placed in a process of complete liquidation other than for an amalgamation or reconstruction, or (4) suffers the appointment of a receiver for any substantial portion of its business
who is not discharged within ninety (90) days after his or her appointment, then, and in any such event, the other Party, at its option, may without liability terminate this Agreement upon giving written notice of its determination to terminate
this Agreement to the other Party only after a *** day period during which the materially nonperforming Party has an opportunity to cure any material deficiencies in its performance. 
 (b) Change in Control Event. Upon the occurrence of a Change in Control Event, HTI will promptly deliver to MBUSA written notice of such event and
MBUSA, may within *** of receipt of HTI’s notice, or without any time restriction in the event such notice is not received, terminate this Agreement without liability. 
 (c) Right to Continue Agreement. If, following a breach by either Party or other event which gives the other Party the right to terminate this
Agreement in accordance with this 

  

 35 

 
Section 26, the Party holding such right of termination elects not to exercise the right of termination with respect to that particular breach and so
notifies the other Party in writing within *** of such right to terminate arising pursuant to Section 26(a), this Agreement will thereafter remain in full force and effect. The election not to terminate shall not constitute a waiver of that
Party’s right to exercise its termination right with respect to a separate breach by the other Party, nor shall it affect a Party’s right to seek damages on account of the breach by HTI of any of its obligations hereunder. 
 (d) Termination of Specific Telematics Service. If HTI breaches (i) a material obligation to MBUSA that pertains to an Approved Additional
Service or Approved WiMax Service or (ii) a material condition for MBUSA’s consent to or approval of such Approved Additional Service or Approved WiMax Service, after a thirty (30) day period during which HTI has an opportunity to
cure any such material deficiencies in its performance, MBUSA may, in addition to other remedies available to MBUSA under this Agreement, at law or in equity, terminate any amendments to this Agreement entered into pursuant to Section 2(h) with
respect to such Approved Additional Service(s) and/or Approved WiMax Services, and, may thereafter, notwithstanding anything in Section 2(i) to the contrary, provide such service or have third parties provide such service, in which case, any
agreement between MBUSA and such third-party with respect to the provision of such Additional Service or WiMax Service by such third party shall be deemed to be an Additional Excluded Telematics Agreement. 
  

	 	27.	EFFECT OF TERMINATION ON SUBSCRIBER AGREEMENTS; CONTINUED PROVISION OF SERVICES; TRANSITION SERVICES; SURVIVAL 

 (a) Effect of Termination. Termination of this Agreement for any reason (including expiration of the Term if the Agreement is not renewed) will not
affect any Subscriber Agreement then in force and the Subscriber Agreements will remain in effect in accordance with their terms. Following termination of the Agreement (including expiration of the Term if the Agreement is not renewed), HTI shall
have the non-exclusive right (or exclusive right, to the extent set forth in Section 2(i)): (i) to continue to provide telematics services to Subscribers, including that HTI may renew such Subscriber Agreements with respect to Enabled
Vehicles and may enter into new Subscriber Agreements with owners or lessees of Enabled Vehicles, and (ii) to enter into Subscriber Agreements with purchasers or lessees of Enabled Vehicles as to which exclusivity applies pursuant to
Section 2(i)(i). Additionally, following termination of this Agreement (other than any termination due to the material breach by MBUSA of its obligations hereunder), HTI shall be obligated to make available to owners and lessees of the Enabled
Vehicles and LCT Enabled Vehicles (for those services capable of being received by LCT Enabled Vehicles) the Telematics Services or Approved Other Telematics Service until the expiration of the Base Warranty for the vehicle (to the extent such
owners or lessees continue to subscribe to such services). ***. For purposes of clarification, the following listed Sections of this Agreement shall apply with regard to any telematics services provided by HTI to owners or lessees of Enabled
Vehicles and LCT Enabled Vehicles after the termination or expiration of this Agreement: 2(c), 2(g), 3, 4(a) (last sentence), 4(g), 9, 10, 11(b)(ii), 14(d), 15 through 20, 22 through 24, 27 through 30, 32 through 34 and 37 through 47. 
  

 36 

 (b) Post-Termination Transition Assistance. Notwithstanding anything to the contrary set forth in
this Agreement or otherwise, upon expiration or termination of this Agreement, and in addition to any rights MBUSA may have under Section 14(e), but subject to Section 2(i)(i), MBUSA shall have the right to continue to use the HTI
Telematics Communicators installed in Enabled Vehicles prior to the expiration of the Term perpetually and have HTI provide the telematics services in accordance with this Agreement to such Enabled Vehicles (and to any Enabled Vehicles containing
Other Telematics Communicators as well as any LCT Enabled Vehicles containing LCT Communicators) and to MCG Vehicles produced after the expiration of the Term, in each case, for *** from such date of expiration or termination (the
“Post-Termination Transition Assistance Period”), with all such telematics services to be provided *** to be negotiated in good faith at such time and with HTI’s obligations being subject to MBUSA having procured all third party
rights necessary for HTI to provide services to MCG Vehicles produced after the expiration of the Term. ***. The terms and conditions of this Agreement shall be deemed to survive any expiration or termination of this Agreement for the purpose of
governing the provision of Post-Termination Termination Assistance. 
 (c) Survival. In addition, the following provisions in this
Agreement shall survive the termination of this Agreement: 2(a), 2(c), 2(g), 2(i)(i), 3 (other than Sections 3(d) and 3(f)), 4(g), 9(a), 9(c), 9(e), 9(f), 10, 12, 14, 15, 16, 18, 19, 20, 22 through 24, 27, 28 through 48; provided, however, that
nothing in this Section 27(c) is intended to supersede any specific survival period set forth in any provision referenced in this Section 27(c). 
  

	 	28.	DISPUTE RESOLUTION 

 (a) Informal Dispute
Resolution. The Parties agree to meet and confer in good faith on any matter of controversy, claim, or dispute arising under or relating to this Agreement or a breach thereof (each, a “Dispute”). All Disputes shall first be addressed
by the appropriate members of the Operating Committee where such members shall engage in good faith discussions for a period of twenty (20) days. If the Dispute cannot be resolved at the Operating Committee within twenty (20) days, then
the Parties shall refer the Dispute to the Steering Committee, where the appropriate members shall engage in good faith discussions for a period of not less than thirty (30) days. If the Dispute cannot be resolved by the Steering Committee
within thirty (30) days or such shorter period required for its resolution, either Party may exercise any legal and equitable right at its disposal, subject to this Section 28. 
 (b) Jurisdiction and Venue. The Parties hereby submit and consent to the exclusive jurisdiction of any state or federal court located in the
County of New York, in the State of New York, and agree that all actions or proceedings relating to this Agreement shall be litigated in such courts, and each of the Parties waives any objection which it may have based on improper venue or forum
non conveniens to the conduct of any such action or proceeding in such court. 
 (c) Injunctive Relief. Nothing in this
Section 28 shall preclude a Party from applying to a court of competent jurisdiction for a temporary restraining order or preliminary injunction to preserve the status quo or prevent irreparable harm pending the resolution of any Dispute.

  

 37 

 (d) Confidentiality of Dispute Resolution Proceedings. Any negotiation, mediation and arbitration
proceedings conducted pursuant to this Section 28 shall be confidential, and shall be treated in accordance with Section 16 of this Agreement. ***. 
  

	 	29.	NOTICES 

 Any notice or report required to be given under
this Agreement will be in writing, will be sent by certified mail, postage prepaid and return receipt requested, or by hand delivery, or by overnight delivery service, to the Party to receive such notice or report, at the following address (unless a
Party at any time or times designates another address for itself by notifying the other Parties by certified mail, in which case all notices to such Party thereafter will be given at its most recently so designated address): 
  

			
	To HTI:	  	Hughes Telematics, Inc.
		  	 41 Perimeter Center East, Suite 400
 Atlanta, Georgia
30346
 Attention: CEO

		
	with copies to:	  	 Hughes Telematics, Inc.
 41 Perimeter Center East,
Suite 400
 Atlanta, Georgia 30346
 Attention: General Counsel

		
		  	-and-
		
		  	 O’Melveny & Myers LLP
 1625 Eye Street,
NW
 Washington, DC 20006
 Attention: David
Pommerening

		
	To MBUSA:	  	 Mercedes-Benz USA, LLC
 One Mercedes Drive

Montvale, NJ 07645
 Attention: Vice President, Customer Service

Copy: Vice President, Marketing

		
	with a copies to:	  	 Mercedes-Benz USA, LLC
 One Mercedes Drive

Montvale, NJ 07645
 Attention: General Counsel

		
		  	-and-
		
		  	 Thelen Reid Brown Raysman & Steiner LLP
 875
Third Avenue
 New York, NY 10022
 Attention: Kristen J. Mathews

  

 38 

 Notice or report given by hand delivery will be deemed received on delivery. Notice or report given by
mail will be deemed received on the earlier to occur of actual receipt or on the fourth Business Day following mailing if sent in accordance with the notice requirements of this Section 29. Notice or report given by overnight delivery service
will be deemed received on the next Business Day following delivery of the notice or report to such service with instructions for overnight delivery. 
  

	 	30.	ASSIGNMENT AND SUBCONTRACTING 

 (a) Assignment. A
Party may not assign any right or delegate any duty under this Agreement without the prior express written consent of the other Parties, except that (i) this Agreement may be assigned in accordance with 14(f) and (ii) subject to
Section 26(b), either Party may assign this Agreement to any Affiliate or any successor organization which acquires such Party or into which such Party is merged, sold, acquired or otherwise transferred. This Agreement will inure to the benefit
of and be binding upon the Parties and their respective successors and permitted assigns. Any assignment by either Party not in accordance with this Agreement shall be null and void. 
 (b) Subcontracting. ***. HTI shall be solely responsible for ensuring its subcontractors’ full compliance with all terms and
conditions of the Agreement. Any subcontract hereunder shall not release HTI from its responsibility or obligations under the Agreement, and HTI shall remain fully responsible for obligations performed by its subcontractors to the same extent as if
such obligations were performed by HTI. 
  

	 	31.	AMENDMENTS 

 Except as expressly set forth herein, this
Agreement may not be modified except in a writing executed by both Parties. Upon the mutual execution and delivery of any revised exhibit to this Agreement, the revised exhibit will become the effective exhibit and will replace the previous exhibit
in its entirety without the need for further amendment of this Agreement. 
  

	 	32.	WAIVERS 

 Any waiver of any provision of this Agreement
must be in writing and signed by the Party whose rights are being waived. No waiver of a breach of any provision hereof will be or be deemed to be a waiver of any other breach of the same or any other provision of this Agreement. The failure of any
Party to enforce or seek enforcement of the terms of this Agreement following any breach will not be construed as a waiver of such breach. 
  

	 	33.	EXPENSES 

 Except as expressly set forth herein or in a
separate agreement, each of the Parties will bear its own expenses (including fees and disbursements of its counsel, accountants and other experts) incurred by it in connection with the preparation, negotiation, execution, delivery and performance
hereof, each of the other documents and instruments executed in connection herewith or contemplated hereby and the consummation of the transactions contemplated hereby and thereby. 
  

 39 

	 	34.	GOVERNING LAW 

 This Agreement is governed by and must be
construed in accordance with the law of the State of *** as if fully performed therein and without reference to its conflict of laws principles. 
  

	 	35.	FURTHER ASSURANCES 

 Each Party covenants and agrees on
behalf of itself, its successors, and its permitted assigns, without further consideration, to prepare, execute, acknowledge, file, record, publish, and deliver such other instruments, documents and statements, and to take such other action as may
be required by Law or reasonably necessary to effectively carry out the purposes of this Agreement. 
  

	 	36.	NONSOLICITATION 

 During the Term and for a period of ***
thereafter the Parties agree not to intentionally or knowingly hire, intentionally or knowingly actively solicit, or intentionally or knowingly actively attempt to solicit, the services of any employee of the other Party associated with the
negotiation or performance of this Agreement without the prior written consent of such Party. This provision does not apply to individuals responding to the general media advertising of either Party nor shall this provision prohibit either Party
from hiring an employee of the other Party, who answers an advertisement or who otherwise voluntarily applies to hire without first having been intentionally personally solicited or recruited. 
  

	 	37.	FORCE MAJEURE 

 (a) Force Majeure Event. Except as
set forth in the last sentence of this Section 37(a) below, a Party will be excused from performing any of its obligations under this Agreement to the extent its inability to perform such obligation is the result of an act of God, natural
disaster, epidemic, acts or decrees of any government (excluding that which is covered by Section 2(g)), fire, vandalism, war, civil disturbance, strike, lockout or other labor dispute, or other similar causes, whether foreseeable or not, which
are beyond the reasonable control of the Party unable to perform (each a “Force Majeure Event”). ***. 
 (b) Notice
Obligation. If a Force Majeure Event prevents the total or partial execution of a Party’s obligation under this Agreement, the Party claiming Force Majeure will inform the other Party in writing as soon as practicable, but, in any event
within five (5) Business Days after such Party obtains actual knowledge of the occurrence of such event, stating the beginning and, if known, the ending times of such case of Force Majeure and describing the circumstances thereof. 

(c) Mitigation; Termination Rights. A Party claiming Force Majeure will use its commercially reasonable best efforts to avoid or remove the
cause of non-conformance and will continue performance hereunder with the utmost dispatch whenever such cause is removed, it 

  

 40 

 
being understood that, in a circumstance subject to Section 2(g), HTI’s obligations shall be limited to the extent described by Section 2(g).
Notwithstanding the above provisions of this Section 37, in the event a Force Majeure Event prevents the total or partial execution of a Party’s material obligation under this Agreement for more than ***, the other Party will have the
right, but not the obligation, to elect to terminate this Agreement by providing written notice of termination. In the event of a Force Majeure Event resulting from any acts or decree of any Governmental Entity, that requires changes to the
Telematics Services or Approved Other Telematics Services, the Parties agree to negotiate in good faith to modify Exhibit A-1 and Exhibit A-2 as necessitated thereby pursuant to Section 2(g). 
  

	 	38.	RELATIONSHIP 

 Each Party is an independent contractor in
relation to the other Party with respect to all matters arising under this Agreement. Nothing herein will be deemed to establish a partnership, joint venture, association or employment relationship between or among the Parties. 
  

	 	39.	SEVERABILITY 

 The invalidity under applicable Law of any
provision of this Agreement will not affect the validity of any other provision of this Agreement, and in the event that any provision hereof is determined to be invalid or otherwise illegal by a court of competent jurisdiction, this Agreement will
remain effective and will be construed in accordance with its terms as if the invalid or illegal provision were not contained in the Agreement. 
  

	 	40.	NO INFERENCE AGAINST DRAFTER 

 Each Party acknowledges that
this Agreement was fully negotiated by the Parties and, therefore, no provision of this Agreement will be interpreted against either Party because such Party or its legal representative drafted such provision. 
  

	 	41.	NO THIRD PARTY BENEFICIARIES 

 The provisions of this
Agreement are for the exclusive benefit of the Parties, their successors and their permitted assigns, and no third party will be a beneficiary of, or have any rights by virtue of, this Agreement. 
  

	 	42.	HEADINGS 

 The table of contents and section headings are
for convenience of reference only and are to be given no effect in the construction, interpretation or effect of this Agreement. 
  

	 	43.	COUNTERPARTS 

 This Agreement may be executed in any number
of original or facsimile counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 
  

 41 

	 	44.	ENTIRE AGREEMENT 

 This Agreement (inclusive of its
exhibits), together with the Non-Disclosure Agreement, contains the entire agreement (including all understandings with respect to the rights and obligations of the Parties) of the Parties and supersedes and abrogates all contemporaneous and prior
agreements (including all understandings with respect to the rights and obligations of the Parties) of the Parties, whether written or oral, relating to the subject matter hereof. 
  

	 	45.	GOOD FAITH 

 The Parties shall act in good faith in the
conduct of their obligations under this Agreement. 
  

	 	46.	COMMUNICATIONS 

 Neither HTI nor MBUSA will take any of the
following actions (i) with respect to the existence, execution or terms of this Agreement, (ii) with respect to the fact that HTI is providing any telematics services for MBUSA, or (iii) which mention any of the Parties to this
Agreement, in each case, without first obtaining express written consent of the other Party hereto, which consent shall not be unreasonably withheld, delayed or conditioned and, including, with respect to MBUSA, that requests for such consent shall
be made to the MBUSA business department contact: ***. With respect to MBUSA, such coordination shall be handled by or through the MBUSA Corporate Communications Department. For the avoidance of doubt, nothing in this Section 46 shall restrict
either Party from issuing any press release, providing written or verbal commentary to the media, making an external speech, participating in other publicity-related activities or responding to any press inquiry to the extent generally related to
such Party’s business and not specifically related to, or including, the matters set forth in clauses (i) through (iii) of the first sentence of this Section 46. Additionally, HTI and MBUSA will work together in good faith to
identify certain standard phrases, descriptions or other language which they may generally use from time to time without the requirement to obtain a specific prior written consent before such use. 
  

	 	47.	RESOLUTION OF CONFLICTS AMONG DOCUMENTS 

 ***, in the event
of any conflict between the terms of any provision of Sections 1 through 48 of this Agreement, and any term contained in (i) any of the exhibits hereto, (ii) any document attached to or referenced in any such exhibit, or (iii) any
purchase order issued pursuant to this Agreement whether by MBUSA, DAG or their Affiliates, the terms contained in Sections 1 through 48 of this Agreement shall govern. ***. 
  

	 	48.	MBUSA AFFILIATES 

 ***. Each of MBUSA and any MBUSA
Affiliate shall be responsible and liable only for its own obligations, acts and omissions in connection with its agreement with HTI, and shall not be liable or responsible for any act or failure to act by any other such MBUSA Affiliate or, in the
case of a MBUSA Affiliate, MBUSA. Termination of this Agreement as to MBUSA shall not terminate any such other agreements as to the MBUSA Affiliates. ***. MBUSA may disclose HTI’s Confidential Information to MBUSA Affiliates who are bound to
confidentiality obligations for purposes ***. 
  

 42 

 [Remainder of Page Intentionally Left Blank] 
  

 43 

 IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of the Effective
Date. 
  

			
	HUGHES TELEMATICS, INC.
	
	 /s/ Jeff A. Leddy

	By:	 	Jeff A. Leddy
	Title:	 	CEO
	
	MERCEDES-BENZ USA, LLC
	
	 /s/ Norbert Litzkow

	By:	 	Norbert Litzkow
	Title:	 	VP Finance & CFO
	
	 /s/ Ernst Lieb

	By:	 	Ernst Lieb
	Title:	 	President and CEO

  

 S-1 

 JOINDER 
 *** 
  

 S-2 

 AMENDMENT TO 
 TELEMATICS SERVICES AGREEMENT 
 BY AND BETWEEN 
 HUGHES TELEMATICS, INC. AND MERCEDES-BENZ USA, LLC 
 This Amendment (“Amendment”), which is effective as of the Effective Date of the Agreement (as defined below), amends that certain “Telematics Services Agreement,” by and between Hughes Telematics
Inc. (“HTI”) and Mercedes-Benz USA, LLC (“MBUSA”), which was executed by the Parties on or around October 31, 2007 (the “Agreement”). 
 All capitalized terms used herein without definition shall have the meanings assigned to them in the Agreement; all capitalized terms defined herein shall have the meaning set forth in this Amendment. All other terms
of the Agreement remain in full force and effect. In the event of a conflict between this Amendment and the Agreement, the terms and conditions’ of this Amendment shall prevail. 
 For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties agree as follows: 
  

	(1)	The definition of “Commencement Date” set forth in Section 1 of the Agreement (“Definitions”) shall be deleted in its entirety and replaced with the
following language: “‘Commencement Date’ means November 16, 2009.” 

 IN WITNESS WHEREOF, the
Parties have caused their duly authorized representatives to execute this Amendment. 
  

			
	HUGHES TELEMATICS, INC.
		
	By:	 	 /s/ Jeff A. Leddy

	Title:	 	 CEO

									
	MERCEDES-BENZ USA, LLC	 		 		 	
					
	By:	 	 /s/ Norbert Litzkow
	 		 	By:	 	 /s/ Ernst Lieb

	Title:	 	 VP Finance and CFO
	 		 	Title:	 	 President and CEO

 AMENDMENT NO. 2 TO 
 TELEMATICS SERVICES AGREEMENT 
 BY AND BETWEEN 
 HUGHES TELEMATICS, INC. AND MERCEDES-BENZ USA, LLC 
 This Amendment No. 2 (“Amendment No. 2”), which is effective as of the Effective Date of the Agreement (as defined below), amends that certain “Telematics Services Agreement,” by and
between Hughes Telematics Inc. (“HTI”) and Mercedes-Benz USA, LLC (“MBUSA”), which was executed by the Parties on or around October 31, 2007 (as amended by a previous amendment, the “Agreement”). 
 All capitalized terms used herein without definition shall have the meanings assigned to them in the Agreement; all capitalized terms defined herein
shall have the meaning set forth in this Amendment No. 2. All other terms of the Agreement remain in full force and effect. In the event of a conflict between this Amendment No. 2 and the Agreement, the terms and conditions of this
Amendment No. 2 shall prevail. 
 For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the
Parties agree as follows: 
  

	(1)	Section 47 of the TSA is hereby replaced in its entirety with the following: 

  

	 	“47.	  RESOLUTION OF CONFLICTS AMONG DOCUMENTS 

 With
the exception of Exhibit S and Exhibit T, in the event of any conflict between the terms of any provision of Sections 1 through 48 of this Agreement, and any term contained in (i) any of the exhibits hereto, (ii) any document attached to
or referenced in any such exhibit, or (iii) any purchase order issued pursuant to this Agreement whether by MBUSA, DAG or their Affiliates, the terms contained in Sections 1 through 48 of this Agreement shall govern, provided that in any event:
(i) Section 4(g) of this Agreement shall govern over Sections 10.2, 10.3 and 10.4 of Exhibit S, and (ii) Section 15.1 of Exhibit S is deemed to be deleted in its entirety. Specifically, with the exception of Exhibit S (Sections
10.2, 10.3 and 10.4 only) and Exhibit T, if any of the documents referenced in clauses (i), (ii) or (iii) of the preceding sentence contain any warranties, the Parties agree that such warranties shall be disregarded and of no force or
effect for any purpose under this Agreement or such other document. In the event of any conflict between the terms of the Supply Specifications Logistical Contents (Direct Delivery) document included in Exhibit S and the terms set forth in Exhibit
T, the Parties shall cooperate in good faith to resolve such conflict in a reasonable manner. Following such resolution, at HTI’s request, MBUSA shall confirm the agreed upon resolution of such conflict to HTI in writing.” 

 [Remainder of Page Intentionally Left Blank] 
 IN WITNESS WHEREOF, the Parties have caused their duly authorized representatives to execute this Amendment No. 2. 
  

			
	HUGHES TELEMATICS, INC.
		
	By:	 	 /s/ Jeff A. Leddy

	Title:	 	 CEO

  

									
	MERCEDES-BENZ USA, LLC	 		 		 	
					
	By:	 	 /s/ Norbert Litzkow
	 		 	By:	 	 /s/ Ernst Lieb

	Title:	 	 VP Finance and CFO
	 		 	Title:	 	 President and CEO

 Exhibit A-1 
  

	•	 	 Automatic Crash Notification 

 Following a vehicle’s request to electronically deploy a passive safety device (e.g.: airbag, pretensioner, etc.), the PASS system shall attempt to automatically contact HTI’s Emergency Response Center, called hereunder ERC. ***

  

	•	 	 Emergency Assistance 

 A request for
Emergency Assistance will be triggered by manually pressing an emergency button within the vehicle. *** 
  

	•	 	 Roadside Assistance 

 This feature
allows the customer to contact MBUSA’s roadside assistance provider for vehicle service or non-emergency roadside assistance. *** 
  

	•	 	 Remote Door Unlock 

 Should a customer
require their vehicle’s doors to be unlocked in the absence of a key. the Remote Door Unlock service can be initiated by a customer request through HTI’s Customer Response Center hereunder called CRC. *** 
  

	•	 	 Stolen Vehicle Tracking 

 If a
customer discovers their vehicle is missing, the Stolen Vehicle Tracking feature will help authorities locate it. The customer begins by reporting the theft to local law enforcement who will issue a claim number or other form of certification. At
that point, either the customer or authorities can contact lift’s CRC to enable the tracking process. *** 

 Attachment A 
 *** 

 Attachment B 
 *** 

 Exhibit A-2 
 Description of the META Services 
 The MBTA Services include the following: 
 1. Telematics Services beyond the Telematics Services described in Exhibit A-1 that (i) were commercially available on Tele Aid as of November 1, 2006,
(ii) are delivered to the vehicle through embedded cellular technology, and (iii) are listed below: 
  

	•	 	 Remote Door Lock 

 In case the
customer forgets to lock the car, the customer can make use of the Remote Door Lock (RDL) service in order to have the car locked without using the keys. The customer will call the service center and request for the RDL service. *** 
  

	•	 	 Operators Manual (IVR Delivered User Manual) 

 Should a customer require information regarding usage of vehicle features, the customer may initiate a voice call by pressing the “I” button in the vehicle. Upon activation of the “I” button and connection of the call,
the customer will be directed to an HTI operated IVR. *** 
  

	•	 	 Automatic Alarm Notification*** 

  

	•	 	 Dealer Connect — Direct voice connection to a preferred dealer 

 Should a customer desire to communicate directly with his preferred dealer, the customer may initiate a voice call by pressing the “I” button in the vehicle. *** 
  

	•	 	 Mercedes Information – Direct voice connection to MBUSA CAC 

 The Information Call service allows the customer to access information sources or customer assistance services through the PASS system in the vehicle. *** 
  

	•	 	 Voice Delivered Turn By Turn Navigation Information (premium service) 

 Should a customer desire to receive voice delivered directions from a live operator, the customer may
initiate a voice call by pressing the “I” button in the vehicle. *** 
  

	•	 	 Voice Delivered Traffic Information (premium service) 

 Should a customer desire to receive preconfigured traffic information, the customer may initiate a voice call by pressing the “I” button in the vehicle. *** 
  

	•	 	 Point of Interest (+ Destination) download into navigation unit (premium service) 

 Should a customer desire to receive a destination download into the vehicle’s embedded navigation unit, the customer may initiate a voice call by
pressing the “I” button in the vehicle. *** 
  

	•	 	 Concierge Service (premium service) 

 Should both HTI and MBUSA decide to offer a personal concierge service, upon a customer desiring to receive personal concierge services, as defined by both companies in a written agreement, the customer may initiate a voice call by pressing
the “I” button in the vehicle. *** 
  

	•	 	 Automatic Maintenance Call 

 The
Maintenance Status Reporting service provides maintenance status information to MBUSA when a maintenance service is due for a vehicle. *** 
 2. Telematics
Services that are (i) to be introduced with the introduction of HTI Telematics Communicator and only in Enabled Vehicles containing HTI Telematics Communicators or Other Telematics Communicators, unless the Parties agree otherwise in writing,
(ii) delivered to the vehicle through embedded cellular technology, and (iii) listed below:*** 

 Attachment A 
 *** 

 Exhibit B 
 Mercedes-Benz USA, LLC 

							
	 Contents
	  	
	1	  	 Features List
	  	4
		  	1.1	  	Features (see exhibits A-1 and A-2):	  	4
	2	  	 Service Provisioning Requirements
	  	5
		  	2.1	  	Service level Requirements	  	6
		  	2.2	  	MBUSA responsibilities	  	33
		  	2.3	  	HTI duties and responsibilities	  	34
		  	2.4	  	Backup Procedures	  	35

 Features List 
 Features (see exhibits A-1 and A-2): 
  

	 	•	 	 Automatic Crash Notification 

  

	 	•	 	 Emergency Assistance 

  

	 	•	 	 Roadside Assistance 

  

	 	•	 	 Remote Door Unlock 

  

	 	•	 	 Stolen Vehicle Tracking 

  

	 	•	 	 Voice Delivered Turn by Turn Navigation Information 

  

	 	•	 	 Voice Delivered Traffic Information 

  

	 	•	 	 Point of Interest (+Destination) download to Navigational Units (as supported by model lines) 

  

	 	•	 	 Automatic Maintenance Call (Service Name: Tele Care) 

  

	 	•	 	 Concierge Service 

  

	 	•	 	 Automatic Alarm Notification 

  

	 	•	 	 Remote Door Lock 

  

	 	•	 	 Dealer Connect 

 *** 

 Service Provisioning Requirements 
 *** 
 Service Level Requirements 
  

	 	•	 	 Service Level Chart: 

 Generally Applicable Service
Levels: 
  

					
	Telephone Call Answer Time	  	***	 	
			
	Telematics Call Answer Time	  	***	 	
			
	HTI Operational System (e.g., telephone and telematics; Auto answering; IVR, call handling) Uptime	  	***	 	
			
	Hold time one voice communication is established	  	***	 	
			
	Wireless Service Levels	  	***	 	
			
	Interactive Voice Response system (IVR) and Speech recognition	  	***	 	
			
	Customer Service	  	***	 	

 Service Specific Service Levels: 
  

					
	Telematics Service	  	***	 	
			
	Automatic Crash Notification	  	***	 	
			
	Emergency Assistance	  	***	 	
			
	Roadside Assistance	  	***	 	
			
	Remote Door Unlock	  	***	 	
			
	Stolen Vehicle Tracking	  	***	 	
			
	Remote Door Lock	  	***	 	
			
	Stolen Vehicle Tracking	  	***	 	
			
	Remote Door Lock	  	***	 	
			
	Automatic Alarm Notification	  	***	 	
			
	Dealer Connect – Direct voice connection to a preferred dealer	  	***	 	
			
	Mercedes Information – Direct voice connection to MBUSA CAC	  	***	 	
			
	Voice Delivered Turn by Turn Navigation Information	  	***	 	
			
	Concierge Service	  	***	 	
			
	Automatic Maintenance Call	  	***	 	

 *** 

 MBUSA responsibilities 
 *** 
 HTI duties and responsibilities 
 *** 
 Backup Procedures 
 *** 

 EXHIBIT D-1 
 MCG Vehicle Models 
  

			
	MB passenger cars	 	Calendar Year
		
	S-Class Segment	 	
		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	E-Class Segment	 	
		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	 ***
	 	 ***

			
	C-Class Segment	 	
		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	M-Class	 	
		
	 ***
	 	 ***

		
	R-Class	 	
		
	 ***
	 	 ***

		
	 ***
	 	 ***

		
	GL-Class	 	
		
	 ***
	 	 ***

		
	 ***
	 	 ***

 EXHIBIT D-2 
 Planned Volumes for MCG Vehicles 
 *** 

 Exhibit G 
 Technical Specifications for the HTI Telematics Communicator (MCG) 
 The following technical specifications,
including any internally referenced technical specification, shall be met. 
 *** 
 The Parties have received copies of the above documents separately 

 Exhibit H 
 Common Technology for HTI Telematics Communicator 
 The HTI Communicator shall use a common design and technology for
*** MCG Vehicles *** 

 Exhibit I 
 Excluded Telematics Agreements and Programs 
 *** 

 *** 
 EXHIBIT
“M” 
 CORPORATE TRAVEL POLICY and CONFLICT OF INTEREST 
 *** 

 Exhibit N 
 PASS
SYSTEM PROGRAM MILESTONES 
  

							
	Phase	 	Milestone Deadline	 	Status	 	Penalty amount

 *** 

 EXHIBIT O 
 *** 

 Exhibit P 
 Common Provision:MCG Change Management Process 
 *** 

 EXHIBIT Q 
 Marketing Concepts 
 HTI will work with MBUSA to review and refine as necessary, the marketing and sales plan, PR
plan, and advertising plan related to the continued sales of Tele Aid. HTI will work with MBUSA and all appropriate dealer contacts required to transition the current Tele Aid marketing and sales efforts and will work collectively to develop
enhancements. *** 
  

	1.	Market Research and Marketing Activities 

 *** 
  

	2.	Dealer Activities 

 *** 
  

	3.	Public Relations Activities 

 *** 
  

	4.	Advertising Activities 

 *** 

 Exhibit V 
 Types of Vehicle and Subscriber Data Collected by MBUSA and HTI 
  

	I.	Vehicle and Subscriber Data Collected by MBUSA (“MBUSA-Collected Data”): 

 *** 
  

	II.	Vehicle and Subscriber Data Collected by HTI (“HTI-Collected Data”): 

 *** 
  

	III.	Data Delivery Under Sharing Obligations: 

 *** 

 Exhibit AA 
 Personal Information, Data Protection and Security 
 1. Personal Information. The Parties acknowledge that in
performing their obligations hereunder, they may obtain or have access to, or otherwise store, process or transmit, certain personally identifiable information of Subscribers, potential and prospective Subscribers and/or other Persons, including
name, address, other contact information, financial account information, vehicle identification number, social security number, driver’s license or non-driver identification card number, mother’s maiden name, date of birth, passwords,
biometrics, electronic serial number, personal identification number or code and/or any other account information and/or account activity information or other information or data that would reasonably be expected to be used for identity theft (even
that which is not personally identifiable) (collectively referred to herein as “Personal Information”). 
 2. Applicable Privacy and Data
Security Laws and Other Standards. The Parties agree that at all times during the term of the Agreement and thereafter, they will comply in all material respects with (a) their obligations under all Applicable Privacy and Data Security Laws
(as defined below) in relation to Personal Information. For purposes of this Exhibit AA, “Applicable Privacy and Data Security Laws” shall mean all privacy, security and data protection laws, rules and regulations of any applicable
jurisdiction, with respect to privacy, security and data protection including the collection, processing, storage, protection and disclosure of Personal Information; and (b) the Safe Harbor Principles issued by the United States Department of
Commerce on July 21, 2000 (which can be found at: http://www.export.gov/safeharbor/SH_Privacy.asp). Each Party also shall use reasonable efforts to monitor and implement then-current industry standards, guidelines and practices. HTI shall
implement and abide by the privacy policy that applies to the Telematics Services and the Approved Other Telematics Services, as it may be updated and amended from time to time by HTI and communicated to MBUSA. Such policy, as well as any updates
and amendments thereto, shall be provided to MBUSA for its approval, which shall not be unreasonably withheld, conditioned or delayed. HTI also shall comply with MBUSA’s generally applicable policies and guidelines applicable to the treatment
and handling of Personal Information in the form attached hereto together with any modifications thereto of which MBUSA notifies HTI from time to time; provided, however, that any such modification which is adverse to HTI’s activities and are
not otherwise required to be adhered to by HTI pursuant to this Section 2 (i.e. because they correspond to requirements of Applicable Privacy and Data Security Laws) shall not be binding upon HTI absent HTI’s consent, which shall not be
unreasonably withheld, conditioned or delayed. 
 3. Security Measures. Without limiting other obligations under this Exhibit AA, the Parties shall,
and shall contractually require and cause their contractors and agents to: (i) implement and maintain an overall information security policy which includes reasonable 

 
security procedures and practices appropriate to the nature of the Personal Information to protect the security and confidentiality of the Personal
Information, protect against any anticipated or actual threats or hazards to the security or integrity of the Personal Information, and prevent unauthorized access to or destruction, use, modification and disclosure of Personal Information, and
(ii) otherwise keep the Personal Information confidential in accordance with the terms of this Agreement and any Applicable Privacy and Data Security Laws. Without limitation of the above, the Parties shall (and shall cause their contractors
and agents to) take those precautions and adopt those safety measures reasonable to protect sensitive data and to avoid the foregoing risks, through: (a) proactive monitoring of known vulnerability reporting services, (b) regularly
auditing and validating the applicable safety measures, (c) changing default security settings (including, without limitation, passwords) and installing security-relevant updates, patches and other security enhancements made available -by the
vendors of any of the third party products used in connection with such collection, processing, storage and distribution, (d) encrypting Sensitive Personal Information (as defined below) with industry standard encryption levels while in transit
or storage, (e) prohibiting employees and agents from bringing, transporting or transmitting unencrypted Sensitive Personal Information to their homes or personal computers, e-mail accounts, devices or media, (f) providing personnel access
to Sensitive Personal Information on a need-to-know basis only, and subject to appropriate confidentiality obligations at least as protective as those set forth in this Agreement, (g) adopting strong technologies (of a type that would
reasonably be adopted to protect the types of data in question), in mutual consultation, for the safe, secure and accurate collection, processing, storage, and distribution of all Personal Information and (h) considering in good faith any
recommendations made from time to time by each Party to the other in connection with the foregoing. MBUSA reserves the right to review, upon reasonable advance notice, during normal business hours and in a manner designed to avoid unreasonably
interfering with HTI’s business activities, the HTI policies, procedures and practices used to maintain the privacy, security and confidentiality of Personal Information. For purposes of this section, “Sensitive Personal Information”
means and Personal Information that contains Social Security number(s), drivers license number(s), other government-issued identification numbers, financial account numbers (including, without limitation, payment card numbers), financial
information, consumer medical information, dates of birth, passwords, mother’s maiden name, biometric information, personal identification number or code and/or any other account information and/or account activity information or other
information or data that would reasonably be expected to be used to commit or attempt to commit identity theft (even that which is not personally identifiable). 
 4. Payment Card Industry Data Security Requirements. HTI shall ensure, and shall contractually require and/or cause its contractors and agents to ensure, that all of its practices, policies and procedures with regard to cardholder
data (as defined below) are in compliance with the Payment Card Industry (PCI) Data Security Standards and the individual card associations’ data security and protection programs, in each case, as they are updated and modified from time to time
and including any successors thereto, including but not limited to the Visa “Cardholder Information Security Program (LISP),” MasterCard’s “Site Data Protection Program,” and analogous security programs implemented by other
card associations (collectively referred to herein as the “PCI Requirements”). HTI acknowledges and agrees that HTI is responsible for the security of cardholder data that it possesses, stores or transmits, and is also responsible for

 
monitoring and complying with the PCI Requirements, as they may be modified from time to time. HTI acknowledges and agrees that cardholder data may only be
used as necessary to provide the services retained by MBUSA under the Agreement, or otherwise as requested by Subscribers. HTI and its successors and assigns shall continue to fully comply with the PCI Requirements, and all of the requirements set
forth in this Exhibit AA, during and after termination of the Agreement, with regard to Personal Information relating to Subscribers who are Subscribers during the Term as well as Subscribers to which HTI’s surviving rights (set forth in
Sections 27(a) and 27(b) of the Agreement) apply. For purposes of this Exhibit AA, “cardholder data” means any payment card magnetic stripe data (track data), primary account number, cardholder name, expiration date, service code, pin
number, pin blocks, card validation codes/values (CAV, CVC, CVV, CSC, CID, CAV2, CVC2, CVV2) or other authentication data (each term as defined by the PCI Requirements). 
 5. Notification of Security Breach and Incident Response. Each Party shall advise the other Party promptly in the event that it learns that there has been or may have been unauthorized access to or use of, or
any security breach relating to or affecting, Sensitive Personal Information, or that any Person who has had access to Sensitive Personal Information has violated or intends to violate the terms of this Agreement. In such an event, each Party, at
its own expense, shall cooperate with the other Party in investigating and responding to the foregoing, notifying customers or other affected services, call center services and forensics services, fines imposed by credit card associations, merchant
banks or financial account institutions, and costs passed on by individual card companies, banks and other financial institutions, such as the costs of issuing replacement cards, fraud liability, chargebacks, compromise fees and other remediation
costs). The remedies set forth herein shall be in addition to any other remedies available at law or in equity, including but not limited to the indemnification obligations set forth in Section 7 below. Notwithstanding the foregoing, no Party
shall have the obligation to pay for the other Party’s costs or expenses of any kind to the extent a breach of this Exhibit AA by such other Party or its agents is a proximate cause of the Security Breach. 
 6. Data Retention and Disposal. The Parties shall adopt a document retention and disposal policy which conforms to the requirements of Applicable Privacy and Data
Security Laws as well as other applicable laws and the PCI Requirements. The Parties also shall use commercially reasonable efforts to monitor and implement other industry standard practices applicable to document retention and disposal. The
aforementioned document retention and disposal policy shall orient towards deleting Personal Information (or a portion thereof) if it is no longer needed by a Party to fulfill its obligations under the Agreement. Irrespective of the form of
existence (e.g., whether on paper documents or electronic copies), the destruction or deletion of Personal Information must be carried out in a manner that makes retrieval impossible to the extent reasonably practicable, consistent with Applicable
Privacy and Data Security Laws, or other applicable laws and the PCI Requirements, 
 7. Indemnification. Without limitation of the indemnification
obligations set forth in the Agreement, each Party hereby agrees to indemnify, defend and hold harmless the other Party and 

 
its Affiliates, officers, directors, employees and agents, from and against any and all third party claims, including any liabilities, obligations, losses,
damages, costs, fees, penalties, fines, charges or other expenses of any kind (including, but not limited to, reasonable attorneys’ fees and legal costs) arising from any such third party claims (collectively, “Claims”), including
without limitation actions by the Federal Trade Commission and/or state attorneys general and private Claims, where such Claims arise out of a Security Event (as defined below) that arises from such Party’s non-compliance with this Exhibit AA.
For purposes of this Section 7, a. “Security Event” is an event where Personal Information (including but not limited to cardholder data, with or without name or other personally identifiable information) is accessed or received by an
individual or entity who is not authorized to access or receive such information. Any such Claims shall be subject to the procedures set forth in Section 15(c) of the Agreement. Additionally, notwithstanding the foregoing, no Party shall
recover losses or damages of any kind unless those losses or damages are (1) traceable to the Security Event, and (2) reasonable and foreseeable as a probable result of the Security Event. The non-breaching Party shall have the burden of
proving its losses and damages. *** 

 *** 
 DaimlerChrysler 
 *** 
 Information Security in Outsourcing Policy 
 *** 

 DaimlerChrysler Information Security Policies 
 DaimlerChrysler 
 Approved by: SSC 
 Information Security of Third Party Access Policy 
 *** 

 DaimlerChrysler 
 Approved by: SSC 
 Information Security Compliance Policy 
 *** 

 DaimlerChrysler 
 Mercedes-Benz Special Terms 2007 
 *** 

 DaimlerChrysler 
 General Terms and Conditions for the purchase of the production material and spare parts which are destined for the automobile 
 ***Sale Agreement

 Exhibit 10.1 
 Agreement 
 Sale Agreement 
  
 Gastar Exploration USA, Inc. 
 Gastar Exploration New South Wales, Inc. 
 Santos QNT Pty Ltd 
 Santos International Holdings Pty Ltd 

 Contents 
  

					
		  	 Table of contents

			
	1	  	Definitions and interpretation	  	6
			
		  	 1.1      Definitions
	  	6
		  	 1.2      Interpretation
	  	13
		  	 1.3      Inclusive expressions
	  	14
		  	 1.4      Agreement components
	  	14
			
	2	  	Conditions for Completion	  	14
			
		  	 2.1      Conditions precedent
	  	14
		  	 2.2      Site visit
	  	15
		  	 2.3      Notice
	  	16
		  	 2.4      Reasonable endeavours
	  	16
		  	 2.5      Waiver
	  	16
		  	 2.6      Cut Off Date
	  	16
		  	 2.7      Effect of termination
	  	16
			
	3	  	Sale and purchase	  	17
			
		  	 3.1      Participating Interest Sale
	  	17
		  	 3.2      Share Sale
	  	17
		  	 3.3      Participating Interests Consideration
	  	17
		  	 3.4      Withholding and Ministerial approvals
	  	18
		  	 3.5      Uplift payment
	  	19
		  	 3.6      Santos Shares
	  	19
		  	 3.7      Payment
	  	19
		  	 3.8      Title and risk passes on the Completion Date
	  	20
			
	4	  	Deposit	  	20
			
		  	 4.1      Payment of Deposit
	  	20
		  	 4.2      Withdrawal of Deposit
	  	20
		  	 4.3      Instructions to Escrow Agent
	  	21
			
	5	  	Period before Completion	  	21
			
		  	 5.1      Participating Interests
	  	21
		  	 5.2      Gastar Power
	  	21
		  	 5.3      Buyer’s consent
	  	22
		  	 5.4      Permitted acts
	  	22
		  	 5.5      Access
	  	22
			
	6	  	Completion	  	23
			
		  	 6.1      Time and place
	  	23
		  	 6.2      Completion
	  	23
		  	 6.3      Notice to complete
	  	23
		  	 6.4      Completion simultaneous
	  	24
			
	7	  	Post Completion matters	  	24
			
		  	 7.1      Allocation of rights and liabilities
	  	24
		  	 7.2      Participating Interest Pre-completion liabilities
	  	25
		  	 7.3      Participating Interest Post-completion liabilities
	  	25
		  	 7.4      Royalties
	  	26
		  	 7.5      Gastar Power Indemnity
	  	26

  

 page 1 

					
		  	 7.6      Tax returns
	  	26
			
	8	  	Adjustments	  	26
			
		  	 8.1      Preparation of Participating Interests Adjustment Statement
	  	26
		  	 8.2      Resolution of disputes
	  	27
		  	 8.3      Payment of Adjustment Amount
	  	27
			
	9	  	Assignment of Contracts	  	28
			
		  	 9.1      Assignment of Contract
	  	28
		  	 9.2      Obligations pending transfer
	  	28
			
	10	  	Land	  	29
			
		  	 10.1    PPL 3 Operations Centre Land
	  	29
		  	 10.2    Encumbrances and easements
	  	29
			
	11	  	Warranties	  	30
			
		  	 11.2    Independent Warranties
	  	30
		  	 11.3    Knowledge
	  	30
		  	 11.4    Reliance
	  	30
		  	 11.5    Indemnity for breach of Warranty
	  	31
		  	 11.6    Mutual warranties
	  	31
		  	 11.7    No reliance except on warranties
	  	31
			
	12	  	Qualifications and limitations on Claims	  	32
			
		  	 12.1    Disclosure
	  	32
		  	 12.2    Maximum and minimum amounts
	  	32
		  	 12.3    Recovery under other rights and reimbursement
	  	32
		  	 12.4    Time limits
	  	33
		  	 12.5    Mitigation of Loss
	  	33
		  	 12.6    Payments affecting Purchase Price
	  	33
			
	13	  	Conduct of Claims	  	34
			
		  	 13.1    Conduct of claims
	  	34
		  	 13.2    Third party claims
	  	34
		  	 13.3    GSE’s and GENSW’s ability to remedy Claims
	  	34
			
	14	  	Buyer Warranties	  	35
			
		  	 14.1    Buyer Warranties
	  	35
		  	 14.2    Independent Warranties
	  	35
		  	 14.3    Reliance
	  	35
			
	15	  	Guarantor of GENSW	  	35
			
		  	 15.1    Guarantee and indemnity
	  	35
		  	 15.2    Extent of guarantee and indemnity
	  	35
		  	 15.3    Principal and independent obligation
	  	36
		  	 15.4    Continuing guarantee and indemnity
	  	36
		  	 15.5    No withholdings
	  	36
		  	 15.6    Currency
	  	36
		  	 15.7    GSE’s Liability
	  	36
			
	16	  	Buyer’s Guarantor	  	37
			
		  	 16.1    Guarantee and indemnity
	  	37
		  	 16.2    Extent of guarantee and indemnity
	  	37
		  	 16.3    Principal and independent obligation
	  	37
		  	 16.4    Continuing guarantee and indemnity
	  	38
		  	 16.5    No withholdings
	  	38

  

 page 2 

					
		  	 16.6    Currency
	  	38
		  	 16.7    The Buyer’s Guarantor’s Liability
	  	38
			
	17	  	Security Deposit	  	38
			
	18	  	Confidentiality and announcements	  	39
			
		  	 18.1    Agreed announcement
	  	39
		  	 18.2    Confidentiality
	  	39
		  	 18.3    Replacement of any prior confidentiality agreements
	  	40
			
	19	  	Duties, costs and expenses	  	40
			
		  	 19.1    Duties
	  	40
		  	 19.2    Costs and expenses
	  	40
			
	20	  	GST	  	40
			
	21	  	General	  	41
			
		  	 21.1    Notices
	  	41
		  	 21.2    Governing law and jurisdiction
	  	42
		  	 21.3    Service of process
	  	43
		  	 21.4    Prohibition and enforceability
	  	43
		  	 21.5    Waivers and variation
	  	43
		  	 21.6    Assignment
	  	43
		  	 21.7    Further assurances
	  	43
		  	 21.8    Approvals and consent
	  	43
		  	 21.9    Remedies cumulative
	  	44
		  	 21.10  Counterparts
	  	44
		  	 21.11  Severability
	  	44
		  	 21.12  No merger
	  	44
		  	 21.13  Entire agreement
	  	44
		  	 21.14  Contra proferentem excluded
	  	44
			
		  	 Schedule 1
 GENSW
Warranties
	  	46
			
		  	 Schedule 2
 GSE
Warranties
	  	50
			
		  	 Schedule 3
 Buyer
Warranties
	  	55
			
		  	 Schedule 4
 Completion
steps
	  	57
			
		  	Signing page	  	59

  

 page 3 

			
		 	 Assets Sale Agreement

  

	  	Date u 

  

			
	Between the parties	  	
		
		  	 Gastar Exploration USA, Inc.
  
 a company incorporated in the State of Michigan, United States of America of 1331 Lamar, Suite 1080, Houston Texas 77010, USA.
  
 (GSE)

		
		  	 Gastar Exploration New South Wales, Inc.
  
 ABN 17 079 003 133 (a company incorporated in the State of Michigan, United States of America) of 1331 Lamar, Suite 1080, Houston Texas 77010, USA.
  
 (GENSW)

		
		  	 Santos QNT Pty Ltd
  
 ACN 083 077 196 of 60 Flinders Street, Adelaide, SA 5000
  
 (Buyer)

		
		  	 Santos International Holdings Pty Ltd
  
 ABN 57 057 585 869 of 60 Flinders Street, Adelaide, SA 5000
  
 (Buyer’s Guarantor)

		
	Background	  	 1       GENSW owns the Participating Interests.
  
 2       GSE owns the Sale
Shares.
  
 3       GENSW has agreed to sell and the Buyer has agreed to buy the Participating Interests on the terms and conditions of this agreement.
  
 4       GSE has agreed to
sell, and the Buyer has agreed to buy, the Sale Shares on the terms and conditions of this agreement.
  
 5       GSE has agreed to guarantee GENSW’s obligations on the terms and conditions of
this agreement.
  
 6       The Buyer’s Guarantor has agreed to guarantee the Buyer’s obligations on the terms and conditions of this agreement.

  

 page 4 

			
	The parties agree	  	as set out in the Operative part of this agreement, in consideration of, among other things, the mutual promises contained in this agreement.

  

 page 5 

	1	Definitions and interpretation 

  
  

	1.1	Definitions 

 The meanings of the terms used in this
agreement are set out below. 
  

			
	 Term
	  	 Meaning

	2P Reserves	  	those estimated quantities of gas which it is anticipated can be recovered from a given date, forward and categorised as proved reserves, plus probable reserves using the 1997 definitions
for, or the 2007 Petroleum Resources Management System approved for, oil and gas reserves adopted by the Society of Petroleum Engineers and World Petroleum Congress .
		
	2P Reserves Report	  	has the meaning given to that term in clause 3.5(a).
		
	2003 Farmin Agreement	  	the PEL 238 Farmin Agreement between EEA and First Sourcenergy Group Inc (now GENSW) dated 8 October 2003 (as amended).
		
	2003 Farmin Agreement Uplift Payment	  	 GENSW’s right under the 2003 Farmin Agreement to receive the uplift payments if the aggregate sustainable production of sales gas produced,
saved and sold from the coal seam methane reservoirs on PEL 238 reaches:
  
 1       25mmcfd (in which case EEA must pay to GENSW the sum of US$5,000,000); and
  
 2       40mmcf (in which case EEA must pay to GENSW a further sum of US$5,000,000 in addition
to the above payment).

		
	ASIC	  	the Australian Securities and Investments Commission.
		
	Accounts	  	the Joint Accounts under each of the Joint Venture Agreements.
		
	Accounting Procedures	  	the Accounting Procedures under each of the Joint Venture Agreements.
		
	Adjustment Amount	  	as defined in clause 8.1.
		
	Adjustment Credit	  	as defined in clause 8.1(c).
		
	Adjustment Debit	  	as defined in clause 8.1(b).

  

 page 6 

 1    Definitions and interpretation 
  

			
	Adjustment Statement	  	as defined in clause 8.1.
		
	Authorisation	  	any approval, licence, consent, authority or permit relating to the business or operations of a Joint Venture (including those held by an Operator, in its capacity as the operator of the
relevant Joint Venture).
		
	Bank	  	an authorised deposit taking institution that is entitled to refer to itself as a “bank” under the Banking Act 1959 (Cth).
		
	Business Day	  	a day on which banks are open for business in South Australia, other than a Saturday, Sunday or public holiday in South Australia.
		
	Buyer Warranties	  	the representations and warranties given in clause 12.6 and Schedule 3.
		
	Cash Calls	  	amounts required to be paid by the relevant joint venture participants to the relevant Operator under a Joint Venture Agreement.
		
	Claim	  	any claim, demand. legal proceedings or cause of action.
		
	Completion	  	completion of the sale and purchase of the Participating Interests and Sale Shares under clause 6.
		
	Completion Date	  	 the later of:
  
 1       10 July 2009;
  
 2       the date falling
3 Business Days after the conditions precedent in clause 2.1 have been satisfied or waived; and
  
 3       the date any dispute under clause 2.2(d) is resolved or
determined.

		
	Contracts	  	 any agreement to which:
  
 1       GENSW is a party (or the rights under which are held by a person on trust or as agent
for GENSW) in its capacity as a participant under a Joint Operating Agreement; or
  
 2       Gastar Power is a party (or the rights under which are held by a person on trust or as
agent for Gastar Power) in its capacity as a participant under the Power Joint Venture Agreement,
  
 and includes the:
  
 1       Memorandum of Understanding between EEA, Hillgrove, GENSW and Babcock & Brown Australia Infrastructure Pty Ltd dated 12 November 2007;
  
 2       Memorandum of
Understanding between EEA, Hillgrove, GENSW and Macquarie Generation dated 13 March 2007;
  
 3       Gas Supply Agreement between Narrabri, EEA, Hillgrove, GSE and GENSW dated 18 February
2009;
  
 4       Country Energy Power Purchase Agreement; and
  
 5       Connection Agreement between Country Energy and Narrabri.

  

 page 7 

 1    Definitions and interpretation 
  

			
	 Country Energy Power
 Purchase Agreement

	  	the Power Purchase Agreement between Narrabri and Country Energy dated 18 October 2003.
		
	Corporations Act	  	the Corporations Act 2001 (Cth).
		
	Cut Off Date	  	31 October 2009.
		
	Deposit	  	$15,000,000.00.
		
	Disclosure Letter	  	a letter dated the date of this agreement addressed by GSE and GENSW to the Buyer disclosing facts, matters and circumstances that are, or may be, inconsistent with the
Warranties.
		
	Disclosure Materials	  	 the documents:
  
 1       available in the Project Olive Data Room provided by Piper Alderman and/or ESG as at
25 June 2009;
  
 2       provided by Piper Alderman to Freehills relating to the Overriding Royalties on or about 15 June 2009.

		
	Duty	  	any stamp, transaction or registration duty or similar charge imposed by any Governmental Agency and includes, but is not limited to, any interest, fine, penalty, charge or other amount imposed
in respect of any of them.
		
	EEA	  	Eastern Energy Australia Pty Ltd ACN 009 321 662.
		
	Effective Date	  	1 July 2009.
		
	Encumbrance	  	 an interest or power:
  
 1       reserved in or over an interest in any asset; or
  
 2       created or
otherwise arising in or over any interest in any asset under a bill of sale, mortgage, charge, lien, pledge, trust or power,
  
 by way of security for the payment of a debt, any other monetary obligation or the performance of any other obligation, and includes, but is not limited to, any agreement
to create any of the above, but does not include operator’s liens, mechanic’s liens or title retention, to the extent such interests or powers arise or are created during the ordinary course of the business of the Joint
Ventures.

		
	ESG	  	Eastern Star Gas Limited ACN 094 269 780.
		
	ESG Entities	  	 1       ESG;
  
 2       EEA;

  

 page 8 

 1    Definitions and interpretation 
  

			
		  	 3       Hillgrove; and
  
 4       Narrabri.

		
	Escrow Agent	  	Blake Dawson
		
	Escrow Agreement	  	an agreement entitled “Escrow Agreement” between the Escrow Agent, the Buyer and GENSW relating to the holding of the Deposit pursuant to clause 4, to be entered into on or prior to
the execution of this agreement.
		
	Expert	  	as defined in clause 8.2.
		
	Fundamental Warranties	  	 Warranties:
  
 1       1.1 and 1.2 in Schedule 1; and
  
 2       1.1, 1.2, 7.1 and
7.2 in Schedule 2.

		
	Gastar Power	  	Gastar Power Pty Ltd ACN 128 295 063.
		
	Gas Joint Ventures	  	the joint ventures established by the Joint Operating Agreements.
		
	GENSW Warranties	  	the representations and warranties given by GENSW in Schedule 2.
		
	Governmental Agency	  	any government or governmental, administrative, monetary, fiscal or judicial body, department, commission, authority, tribunal, agency or entity in any part of the world.
		
	Green Products	  	has the same meaning as in the Country Energy Power Purchase Agreement.
		
	GSE Warranties	  	the representations and warranties given by GSE in Schedule 1.
		
	Hillgrove	  	Hillgrove Energy Pty Ltd ACN 107 654 928.
		
	 Immediately Available
 Funds
	  	cash, bank cheque or telegraphic or other electronic means of transfer of cleared funds into a bank account nominated in advance by the payee.
		
	 Independent Reserves
 Expert
	  	Netherland, Sewell & Associates, Inc. or MHA Petroleum Consultants, Inc.
		
	Interim Period	  	the period between execution of this Agreement and the Completion Date.
		
	 Joint Operating
 Agreements
	  	the PEL 238 JOA, the PEL 433 JOA and the PEL 434 JOA.

  

 page 9 

 1    Definitions and interpretation 
  

			
	Joint Ventures	  	the unincorporated joint ventures constituted under the Joint Venture Agreements.
		
	 Joint Venture
 Agreements
	  	 the:
  
 1       Joint Operating Agreements; and
  
 2       Power Joint
Venture Agreement.

		
	Joint Venture Budget	  	the budgets contemplated in the Joint Venture Agreements.
		
	Loss	  	losses, liabilities, damages and costs (and includes Duty and Taxes) but excludes loss of business opportunity, punitive and exemplary damages and loss of profit.
		
	 Material Adverse
 Change
	  	 an event or circumstance that has a material adverse effect on the:
  

1       status, rights attaching to or value of the Participating Interests
  
 2       status, rights
attaching to or value of the Sale Shares; or
  
 3       assets, financial position or prospects of the Joint Ventures,
  
 except to the extent that the event or circumstance is a change in general economic conditions, interest rates, exchange rates or commodity prices.

		
	Minister	  	the Minister for Primary Industries.
		
	Narrabri	  	Narrabri Power Pty Ltd ACN 104 570 943.
		
	Operator	  	the Operator appointed under each Joint Venture Agreement.
		
	Overriding Royalties	  	 35% of the following royalties payable to the following grantors in the proportions set out below:
  
 1       Geothetis Pty Ltd
(0.06%);
  
 2       Henalay Pty Ltd (0.66%); and
  
 3       Dowland Pty Ltd (0.135%).

		
	PAL 2	  	the Petroleum Assessment Lease 2 granted under Division 3 of the Petroleum Act.
		
	Participating Interests	  	 1       the PEL 238 Participating Interest;
  
 2       the PEL 433
Participating Interest; and
  
 3       the PEL 434 Participating Interest.

		
	 Participating Interests
 Purchase Price

	  	the purchase price to be paid by the Buyer to GENSW on Completion in consideration for the Participating Interests, being $293 million, as adjusted pursuant to the terms of this agreement,
including in respect of any Uplift Payment or Adjustment Amount allocated to the Participating Interests Purchase Price.

  

 page 10 

 1    Definitions and interpretation 
  

			
	PEL 238	  	Petroleum Exploration Licence 238 granted under Division 2 of the Petroleum Act.
		
	PEL 238 JOA	  	the PEL 238 Joint Operating Agreement between EEA, Hillgrove and GENSW dated 8 October 2003.
		
	 PEL 238 Participating
 Interest
	  	 the 35% participating interest in PEL 238 held by GENSW under the PEL 238 JOA, including GENSW’s:
  
 1       contractual and
equitable rights and interests in respect of PAL 2;
  
 2       contractual and equitable rights in respect of PPL 3; and
  
 3       interest as tenant in common in the PPL 3 Operations Centre Land,
  
 but excluding any rights to the 2003 Farmin Agreement Uplift Payment.

		
	PEL 433	  	Petroleum Exploration Licence 433 granted under Division 2 of the Petroleum Act.
		
	PEL 433 JOA	  	the PEL 433 Joint Operating Agreement between ESG and GENSW Agreement executed in 2007.
		
	 PEL 433 Participating
 Interest
	  	the 35% participating interest in PEL 433 held by GENSW under the PEL 433 JOA.
		
	PEL 434	  	Petroleum Exploration Licence 434 granted under Division 2 of the Petroleum Act.
		
	 PEL 434 Participating
 Interest
	  	the 35% participating interest in PEL 434 held by GENSW under the PEL 434 JOA.
		
	PEL 434 JOA	  	the PEL 434 Joint Operating Agreement between ESG and GENSW executed in 2007.
		
	Petroleum	  	the coal seam methane or conventional gas produced from the Petroleum Titles.
		
	Petroleum Act	  	Petroleum (Onshore) Act (NSW) 1991.
		
	Petroleum Titles	  	PEL 238, PAL 2, PPL 3, PEL 433 and PEL 434.
		
	 Power Joint Venture
 Agreement
	  	the Power Station Joint Venture Agreement between Narrabri and Gastar Power dated 18 February 2009.
		
	Power Station Joint Venture	  	the unincorporated joint venture constituted under the Power Joint Venture Agreement.

  

 page 11 

 1    Definitions and interpretation 
  

			
		
	Power Station Land	  	the freehold estate on which the Wilga Park power station is located which is identified as Certificate of Title Folio Identifier 1/1064422.
		
	Power Station Operator	  	the operator of the Power Station Joint Venture.
		
	 Power Joint Venture
 Participating Interest

	  	the 35% Participating Interest held by Gastar Power under the Power Joint Venture Agreement.
		
	PPL 3	  	the Petroleum Production Lease 3 granted under Division 5 of the Act.
		
	 PPL 3 Operations
 Centre
Land
	  	the freehold estate on which the PPL 3 operations centre is located which is identified as Certificate of Title Folio Identifier 241/1120041.
		
	PPL 3 Operations Centre Land Agreement	  	a Sale of Land Contract, on customary terms consistent with this agreement, to be entered into between the Buyer and GENSW for the sale of GENSW’s interest in PPL 3 Operations Centre Land.

		
	Records	  	 all written records that are in the possession of the Seller, or the Seller’s Guarantor relating to the Participating Interests or Sale Shares,
including:
  
 1       copies of the Joint Venture Agreements, Contracts, Authorisations and Petroleum Titles;
  
 2       copies of records relating to the operations of the Joint Ventures, including the
results of exploration, reserves reports and other technical information;
  
 3       minutes of meetings of the operating committees under the Joint Venture Agreements; and
  
 4       the corporate register and all statutory records, accounting and taxation of Gastar
Power.

		
	 Recovery Action
	  	anything done to exercise a right to recover anything from a person other than GSE or GENSW, a related body corporate or a director or officer of the GSE or GENSW, the Buyer or a related body
corporate of the Buyer, for example, issuing a demand, making an insurance claim, suing for tort, or claiming under an indemnity.
		
	Related Body Corporate	  	has the meaning given in section 9 of the Corporations Act.
		
	Sale Shares	  	all the issued share capital in Gastar Power, being 5,275,788 ordinary shares.
		
	Seller	  	GSE or GENSW, as applicable
		
	 Share Sale Purchase
 Price
	  	the purchase price to be paid by the Buyer to GSE on Completion in consideration for the Sale Shares, being $7 million and as adjusted pursuant to the terms of this agreement, including in
respect of any Adjustment Amount allocated to the Share Sale Purchase Price.

  

 page 12 

 1    Definitions and interpretation 
  

			
	Subsidiary	  	has the meaning given to it in the Corporations Act.
		
	State Royalties	  	the royalties payable by the GENSW to the State of New South Wales pursuant to the Petroleum Act.
		
	Taxes	  	any tax, charge, levy, deduction, impost, fee, goods and services tax, petroleum resource rent tax which is assessed, levied , imposed or collected by any Governmental Agency and includes any
interest, fine or penalty imposed on or in respect of the above, but excludes any Duty or State Royalty.
		
	Total Purchase Price	  	 the aggregate of the:
  
 1       Participating Interest Purchase Price; and
  
 2       Share Sale
Purchase Price,
  
 as adjusted under the terms of this agreement.

		
	Third Party Claim	  	a claim, demand, assessment, action or proceeding against the Buyer or against a related body corporate of the Buyer brought by a person other than a related body corporate of the Buyer, GENSW
or GSE, or a related body corporate of GSE or GENSW.
		
	Uplift Payment	  	the payment (if any) to be made under clause 3.5.
		
	US Litigation	  	The litigation consolidated under the order in the master file for the proceedings: In re: Classicstar Mare Lease Litigation, MDL No. 1877, Lexington Civil Action No.
07-353-JMH.
		
	Warranties	  	the GENSW Warranties and the GSE Warranties.

  

	1.2	Interpretation 

 In this agreement headings and
words in bold are inserted for convenience and do not affect the interpretation of this agreement and unless the contrary intention appears: 
  

	 	(a)	a reference to this agreement or another instrument includes any variation or replacement of any of them; 

  

	 	(b)	a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of any of
them; 

  

	 	(c)	the singular includes the plural and vice versa; 

  

	 	(d)	the word ‘person’ includes a firm, a body corporate, an unincorporated association or an authority; 

  

 page 13 

 2    Conditions for Completion 
  

	 	(e)	a reference to a person includes a reference to the person’s executors, administrators, successors, substitutes (including persons taking by novation) and assigns;

  

	 	(f)	if a period of time is specified and dates from a given day or the day of an act or event, it is to be calculated exclusive of that day; 

  

	 	(g)	a reference to a day is to be interpreted as the period of time commencing at midnight and ending 24 hours later; 

  

	 	(h)	if an act prescribed under this agreement to be done by a party on or by a given day is done after 5.00pm on that day, it is taken to be done on the next day;

  

	 	(i)	if an event must occur on a stipulated day which is not a Business Day then the stipulated day will be taken to be the next Business Day; 

  

	 	(j)	a reference to time is a reference to South Australian time; 

  

	 	(k)	a promise or agreement by two or more persons binds them jointly and severally; 

  

	 	(l)	a reference to any thing (including any amount) is a reference to the whole and each part of it and a reference to a group of persons is a reference to any one or more of them;

  

	 	(m)	a reference to a part, clause, party, annexure, exhibit or Schedule is a reference to a part and clause of, and a party, annexure, exhibit and Schedule to, this agreement and a
reference to this agreement includes any annexure, exhibit and Schedule; and 

  

	 	(n)	a reference to $ is to Australian currency unless denominated otherwise. 

  

	1.3	Inclusive expressions 

 Specifying anything in this
agreement after the words ‘including’, ‘includes’ or ‘for example’ or similar expressions does not limit what else is included. 
  

	1.4	Agreement components 

 This agreement includes any
schedule. 
  

	2	Conditions for Completion 

  
  

	2.1	Conditions precedent 

 Clauses 3.1 and 6 do not
become binding on the parties and are of no force or effect unless and until each of the following conditions have been satisfied or waived in accordance with clause 2.5: 
  

	 	(a)	 (Consent and waiver by Narrabri and ESG entities): the relevant ESG Entities consent, under the terms of the Joint Operating Agreements, to the acquisition
by the Buyer of the Participating Interests and Narrabri consents to the acquisition by the Buyer of the Sale Shares and waives any pre-emptive 

  

 page 14 

 2    Conditions for Completion 
  

	 	 
right it may have in respect of the Sale Shares under the Power Joint Venture Agreement, either unconditionally or on conditions that are acceptable to the
Buyer, GENSW and GSE (acting reasonably); 

  

	 	(b)	(Site access): the Buyer has (provided it has complied with clause 2.2, with a failure to comply by the Buyer being deemed a waiver by the Buyer of this clause 2.1(b))
undertaken a site visit of the areas and facilities the subject of the Joint Ventures, including the Wilga Park Power Station (a Site Visit), which does not reveal information or circumstances that is, or are materially adverse in terms of
the: 

  

	 	(1)	status, rights attaching to or value of the Participating Interests (as a whole); 

  

	 	(2)	the Sales Shares; or 

  

	 	(3)	assets, financial position, operations or prospects of the Joint Ventures (as a whole), 

 compared to the position disclosed in the Disclosure Materials, except to the extent that the event or circumstance is a change in general economic conditions, interest rates, exchange rates or commodity prices; and

  

	 	(c)	(Material adverse change): no Material Adverse Change occurs or is discovered prior to Completion. 

  

	2.2	Site visit 

 For the purposes of clause 2.1(b):

  

	 	(a)	the Buyer will use all reasonable endeavours promptly to arrange and organise a Site Visit within a reasonable time of execution of this agreement, and must use reasonable
endeavours to arrange and organise such a visit in any event no later than 7 July 2009. GSE and GENSW must use reasonable endeavours to facilitate such a Site Visit, subject to clause 5.5(b); 

  

	 	(b)	the Buyer, GSE and GENSW must agree in writing beforehand the proposed date and duration of the Site Visit, and will confirm such date and duration within 1 Business Day of it
occurring, by means of a director of each executing a written record and exchanging facsimile copies thereof; 

  

	 	(c)	the Buyer is only permitted one Site Visit; and 

  

	 	(d)	any disputes relating to whether materially adverse information or circumstances has or have been revealed shall be determined by (i) promptly upon one party notifying the
other parties that a dispute has arisen, by discussions between the CEOs of each party and, if such discussions have not resolved the issue within 1 Business Day of the notice above first having been given, by (ii) referral to an independent
expert whose identity will be agreed upon by all the parties. If the parties cannot agree on the identity of an independent expert within 1 Business Day of the 1 Business Day period in (i) expiring, then either party may request the Australian
Institute of Chartered Accountants to appoint an expert, and the parties will submit to the decision of such expert. The parties must provide in the terms of engagement of the expert that such expert present his or her final decision within 3
Business Days of being instructed and in any event no later than 7 Business Days after the initial notice of dispute was given pursuant to this paragraph. 

  

 page 15 

 
2    Conditions for Completion 
  

	2.3	Notice 

 Each party must promptly notify the others
in writing if it becomes aware that any condition in clause 2.1 has been satisfied or has become incapable of being satisfied. 
  

	2.4	Reasonable endeavours 

  

	 	(a)	The Buyer, GSE and GENSW must use all reasonable endeavours to ensure that the condition in clause 2.1(a) is satisfied as expeditiously as possible and in any event on or before the
Cut Off Date. 

  

	 	(b)	Neither GSE nor GENSW must unreasonably object, and GSE must procure that Gastar Power does not unreasonably object to or obstruct any access given to the Buyer and its
representatives to the areas and facilities referred to in clause 2.1(b) by ESG. 

  

	 	(c)	The parties must keep each other informed of the progress towards satisfaction of its obligations under clause 2.1. 

  

	 	(d)	Each party must provide all reasonable assistance to the other as is necessary to satisfy the conditions in clause 2.1. 

  

	2.5	Waiver 

  

	 	(a)	The condition in clause 2.1(a) is for the benefit of the Buyer, GSE and GENSW and may only be waived by agreement in writing between them. 

  

	 	(b)	The conditions in clauses 2.1(b) and (c) are for Buyer’s benefit and any of them may be waived by the Buyer. 

  

	2.6	Cut Off Date 

 A party may, by not less than 5
Business Days’ notice to the other and subject to having complied with clause 2.4 (if relevant), terminate this agreement at any time before Completion if: 
  

	 	(a)	a condition in clause 2.1 is not satisfied, or waived in accordance with clause 2.5, by the Cut Off Date; or 

  

	 	(b)	a condition in clause 2.1 becomes incapable of satisfaction and that condition is not waived prior to the Cut Off Date in accordance with clause 2.5; or

  

	 	(c)	the parties agree in writing that a condition in clause 2.1 cannot be satisfied and that condition is not waived prior to the Cut Off Date in accordance with clause 2.5.

  

	2.7	Effect of termination 

 Subject to clause 4.2(b), if
this agreement is terminated under clauses 2.6, or 6.3(b), then: 
  

	 	(a)	each party is released from its obligations under this agreement, except those obligations which are expressed to survive termination; 

  

 page 16 

 3    Sale and purchase 
  

	 	(b)	each party retains the rights it has against the other in respect of any breach of this agreement occurring before termination; 

  

	 	(c)	the rights and obligations of each party under each of the following clauses and Schedules will continue independently from the other obligations of the parties and survive
termination of this agreement: 

  

	 	(1)	clause 1 (Definitions and Interpretation); 

  

	 	(2)	clause 2 (Conditions for Completion); 

  

	 	(3)	clause 14 (Confidentiality); 

  

	 	(4)	clause 19 (Duties, costs and expenses); 

  

	 	(5)	clause 20 (GST); and 

  

	 	(6)	clause 21 (General). 

  

	3	Sale and purchase 

  
  

	3.1	Participating Interest Sale 

 On the Completion
Date, GENSW must sell, and the Buyer must buy, the Participating Interests free from Encumbrances (but subject to any Encumbrances disclosed in the Disclosure Letter, the Disclosure Materials or this agreement), in consideration of the Buyer
agreeing to pay the Participating Interest Purchase Price. 
  

	3.2	Share Sale 

 On the Completion Date, GSE must sell,
and the Buyer must buy the Sale Shares free and clear of all Encumbrances (but subject to any Encumbrances disclosed in the Disclosure Letter, the Disclosure Materials or this agreement), in consideration for the Buyer agreeing to pay the Share Sale
Purchase Price. 
  

	3.3	Participating Interests Consideration 

 The Buyer
and GENSW agree that the Participating Interest Purchase Price is allocated as follows (the figures which follow in the table are based on the initial Participating Interest Purchase Price of $293 million before any adjustments): 
  

			
	 PEL 238 Participating Interest
	  	(93.85665%) $275 million (of which $2 million is attributable to the PPL 3 Operations Centre Land)
		
	 PEL 433 Participating Interest
	  	(3.07167%) $9 million
		
	 PEL 434 Participating Interest
	  	(3.07168%) $9 million

  

 page 17 

 3    Sale and purchase 
  

	3.4	Withholding and Ministerial approvals 

  

	 	(a)	The Buyer and GENSW must co-operate and use reasonable endeavours to obtain, as soon as practicable and in any event before the Completion Date, the approval of the Minister, to the
extent required by section 96 of the Petroleum Act, to the transfer of the Participating Interests to the Buyer. 

  

	 	(b)	If an approval of the Minister referred to in clause 3.4(a) has not been obtained by the Completion Date, the following amounts will be withheld from the Participating Interest
Purchase Price, to be paid on Completion: 

  

	 	(1)	if the Minister has not approved the transfer of the PEL 433 Participating Interest - $9 million; 

  

	 	(2)	if the Minister has not approved the transfer of the PEL 434 Participating Interest - $9 million; and 

  

	 	(3)	if the Minister has not approved the transfer of GENSW’s interest in PPL 3 - $2 million. 

  

	 	(c)	If an approval of the Minister referred to in clause 3.4(a) has not been obtained by the Completion Date, the Buyer and GENSW must continue, for a period of 9 months following the
Completion Date (or any longer period that the Buyer and GENSW agree in writing), to co-operate and use reasonable endeavours to obtain that approval. If an approval of the Minister: 

  

	 	(1)	is obtained within that 9 month period (or any longer period that the Buyer and GENSW agree in writing), the Buyer must pay to GENSW, in Immediately Available Funds, the amount of
the Participating Interest Purchase Price withheld under clause 3.4(b) in respect of that approval within 3 Business Days of that approval; or 

  

	 	(2)	not obtained within that 9 month period (or any longer period the Buyer and GENSW agree in writing), then clause 3.4(d) shall apply. 

  

	 	(d)	If any approval of the Minister referred to in clause 3.4(b) is not obtained within the time period referred to in clause 3.4(c)(2), then: 

  

	 	(1)	the amount of the Participating Interest Purchase Price withheld under clause 3.4(b) in respect of that approval will continue to be withheld; 

  

	 	(2)	to the extent that any parties have already undertaken any actions or provided any documents to transfer such interest, the parties must do everything required to reverse those
actions as applicable to the interests referred to in clause 3.4(b)(1), 3.4(b)(2) and 3.4(b)(3) and in particular, ensure that any interests in respect of which the approval was not obtained are fully retransferred to GENSW; and

  

	 	(3)	GENSW and the Buyer must each return to the other all documents delivered to it under clause 6.2(a) and Schedule 4 in respect of the transfer of the interests referred to in clause
3.4(b)(1), 3.4(b)(2) and 3.4(b)(3). 

  

 page 18 

 3    Sale and purchase 
  

	3.5	Uplift payment 

  

	 	(a)	The Buyer must or must procure that the participants under the PEL 238 JOA commission the Independent Reserves Expert to prepare a report on the gross 2P Reserves in respect of PEL
238 prior to 1 April 2010, addressed to the participants of the PEL 238 JOA (and on which those participants are capable of relying) (the 2P Reserves Report). The Buyer must provide a copy of the 2P Reserve Report to GENSW and GSE as
soon as it receives it. 

  

	 	(b)	Uplift consideration of $20 million is payable by the Buyer to GENSW if the Independent Reserves Expert certifies in the 2P Reserves Report that the gross 2P Reserves in respect of
PEL 238, are at least 1300PJ as at 31 December 2009. 

  

	 	(c)	The costs of the Independent Reserves Expert in preparing the 2P Reserves Report are to be borne by the Buyer. 

  

	3.6	Santos Shares 

  

	 	(a)	Within 2 Business Days of receiving the 2P Reserves Report, if the uplift consideration is payable under clause 3.5(b), GENSW must notify the Buyer whether it wishes to receive the
$20 million consideration in the form of cash, ordinary shares in Santos Limited (Santos Shares) or a combination of cash and Santos Shares to an aggregate value of $20 million. 

  

	 	(b)	If GENSW elects in clause 3.6(a) to receive some of the consideration in the from of Santos Shares, the aggregate value of the consideration comprising Santos Shares
(determined in accordance with clause 3.6(c) below) must be at least $5 million. 

  

	 	(c)	For the purposes of clause 3.6(a), the value of each Santos Share is equal to the volume weighted average price of Santos Shares in the ordinary course of trading on ASX Limited for
the 5 full trading days immediately before the 2P Reserves Report was provided to GENSW in accordance with clause 3.5(a). 

  

	 	(d)	To the extent that GENSW elects to receive the consideration in the form of: 

  

	 	(1)	cash, the consideration must be paid to (or at the direction of) GENSW in Immediately Available Funds within 5 Business Days of GENSW giving notice to the Buyer referred to in
clause 3.6(a); and 

  

	 	(2)	Santos Shares, the Buyer must procure that Santos Limited issues those Santos Shares to (or at the direction of) GENSW within 5 Business Days of GENSW giving notice to the Buyer
referred to in clause 3.6(a), provides a holding statement in respect of those Santos Shares to GENSW, and seeks official quotation of those Santos Shares on ASX Limited. 

  

	3.7	Payment 

 The Share Sale Purchase Price and the
Participating Interest Purchase Price must be paid by the Buyer as follows: 
  

	 	(a)	the Deposit, within 2 Business Days of execution of this agreement; 

  

 page 19 

 4    Deposit 
  

	 	(b)	$300 million, less any withholding under clause 3.4, and less the amount of the Deposit (and any interest on the Deposit), on the Completion Date; 

  

	 	(c)	any amount that has been withheld by the Buyer from the Participating Interest Purchase Price that subsequently becomes payable under clause 3.4(c), at the time referred to in
clause 3.4(c)(1); 

  

	 	(d)	if the Adjustment Amount is positive, the Adjustment Amount at the time set out in clause 8.3; and 

  

	 	(e)	the Uplift Payment (if applicable), at the time referred to in clause 3.6. 

  

	3.8	Title and risk passes on the Completion Date 

 Title
to and risk in the Participating Interests and the Sale Shares passes to the Buyer on Completion. 
  

	4	Deposit 

  
  

	4.1	Payment of Deposit 

  

	 	(a)	Within 2 Business Days of execution of this agreement, the Buyer and GENSW must jointly instruct the Escrow Agent to open an interest bearing trust account with a Bank:

  

	 	(1)	for the benefit of the Buyer and GENSW; and 

  

	 	(2)	for the purpose of holding the Deposit in accordance with this agreement and the Escrow Agreement. 

  

	 	(b)	Within 2 Business Days of execution of this agreement, the Buyer must pay the Deposit into the account referred to in clause 4.1(a) in Immediately Available Funds.

  

	4.2	Withdrawal of Deposit 

  

	 	(a)	The Buyer and GENSW must instruct the Escrow Agent to withdraw the Deposit and accrued interest on the earlier of Completion or termination of this agreement and pay it to the
person entitled to it under clause 4.2(b) and 4.2(c) as applicable. 

  

	 	(b)	GENSW is entitled to the Deposit (and all interest on the Deposit) if: 

  

	 	(1)	Completion occurs (in which case the Deposit is deducted from the Participating Interest Purchase Price, in accordance with clause 3.7(b)); or 

  

	 	(2)	the conditions in clause 2.1 are satisfied or waived and the Buyer does not comply with its obligations under this agreement and GENSW terminates this agreement under clause 6.3(b).

  

 page 20 

 5    Period before Completion 
  

	 	(c)	The Buyer is entitled to the Deposit (and all interest on the Deposit) if this agreement is terminated by GSE, GENSW or the Buyer other than in the circumstances referred to in
clause 4.2(b)(2) (including if it is terminated under clause 2.6) 

  

	4.3	Instructions to Escrow Agent 

 The Buyer and GENSW
each irrevocably undertake to ensure that it gives all necessary instructions to the Escrow Agent to withdraw the Deposit Amount and pay it to the Buyer or GENSW as is required under this clause 4. 
  

	5	Period before Completion 

  
  

	5.1	Participating Interests 

 Subject to
clause 5.3, during the Interim Period GENSW must, and GSE must procure that Gastar Power must: 
  

	 	(a)	not dispose of, or grant any Encumbrances over, (or agree to do either of those things) a Participating Interest or the Power Joint Venture Participating Interest (as applicable);

  

	 	(b)	comply with the terms of the Joint Venture Agreements (including making Cash Calls when required); 

  

	 	(c)	notify the Buyer if it becomes aware that ESG intends to apply for any new permit in respect of a Petroleum Title; 

  

	 	(d)	not make, or, agree to make any changes to, or waive any rights under, the Joint Venture Agreements; 

  

	 	(e)	not do anything that would result in a breach of a: 

  

	 	(1)	condition of, or otherwise put at risk, a Petroleum Title or other Authorisation; or 

  

	 	(2)	Contract; 

  

	 	(f)	subject to clause 5.3, not approve of, or vote in respect of any decision under a Joint Venture Agreement, without consulting with and obtaining the consent of the Buyer (not to be
unreasonably withheld or delayed); and 

  

	 	(g)	maintain all existing insurance coverage in respect of the Participating Interests and the Power Joint Venture Participating Interest. 

  

	5.2	Gastar Power 

 Subject to clauses 5.3 and 6.4,
during the Interim Period GSE must ensure that the business of Gastar Power is conducted materially in the ordinary course and, in particular, that Gastar Power must not: 
  

	 	(a)	enter into any contract or commitment; 

  

 page 21 

 5    Period before Completion 
  

	 	(b)	acquire or dispose of any assets; 

  

	 	(c)	create an Encumbrance over any of its assets; 

  

	 	(d)	distribute or return any capital to its members; 

  

	 	(e)	buy back of its shares; 

  

	 	(f)	pay any dividends or make any other distribution of profits; 

  

	 	(g)	issue any shares, options or securities that are convertible into shares of Gastar Power; 

  

	 	(h)	alter its constitution; 

  

	 	(i)	cancel any existing insurance policy in the name of benefit of Gastar Power (if any). 

  

	5.3	Buyer’s consent 

 Notwithstanding clauses 5.1
and 5.2, GENSW, Gastar Power or GSE may take actions otherwise governed by those clauses which are required to implement decisions which have made in a Joint Venture Budget applicable at the relevant time and disclosed in the Disclosure Materials or
otherwise provided to the Buyer by GENSW or GSE, without needing the consent of the Buyer. GENSW, Gastar Power or GSE must otherwise request the Buyer’s consent to take action otherwise prohibited by clause 5.1 and 5.2, which the Buyer will not
unreasonably withhold or delay in the case of decisions which are required in the ordinary course of conducting the business of the Joint Ventures. 
  

	5.4	Permitted acts 

 Nothing in clause 5.1 or clause 5.2
restricts GSE, Gastar Power or GENSW from doing anything: 
  

	 	(a)	which is required by this agreement; or 

  

	 	(b)	which is necessary for GSE, Gastar Power or GENSW, as applicable, to meet its legal or contractual obligations. 

  

	5.5	Access 

  

	 	(a)	Subject to clause 5.5(b), during the Interim Period, GSE or GENSW, as appropriate, must: 

  

	 	(1)	inform and consult with the Buyer on all material matters relating to the Joint Ventures that they become aware of; 

  

	 	(2)	provide the Buyer with a copy of all notices received by it: 

  

	 	•	 	 under the Joint Venture Agreements or the Contracts; 

  

	 	•	 	 from any Governmental Agency in relation to the Petroleum Titles or any other Authorisation; and 

  

	 	•	 	 in relation to any litigation, arbitration or administrative proceeding concerning the Joint Ventures, 

  

 page 22 

 6    Completion 
  

 and all other information relating to the Participating Interests or the Joint Ventures reasonably
requested by the Buyer; 
  

	 	(3)	not unreasonably object to or obstruct any access given to the Buyer (and any person nominated by the Buyer) to the areas the subject of the Petroleum Titles, the PPL Operations
Centre Land and the Power Station Land and all equipment and facilities located on those areas by ESG 

  

	 	(4)	co-operate with ESG and the ESG entities to allow the Buyer to have reasonable access to the site. 

  

	 	(b)	Nothing in this clause 5 requires either GSE or GENSW to act in a way that may cause it to breach its obligations under a contract or breach any applicable laws or regulations.

  

	6	Completion 

  
  

	6.1	Time and place 

 Completion must take place at
Freehills offices in Melbourne at 10.00am on the Completion Date or such other place, time and date as GENSW, GSE and the Buyer agree. 
  

	6.2	Completion 

  

	 	(a)	On or before Completion, each party must carry out the Completion Steps referable to it in accordance with Schedule 4. 

  

	 	(b)	Completion is taken to have occurred when each party has performed all its obligations under this clause 6.2 and Schedule 4. 

  

	 	(c)	Without derogating from the obligations already imposed on parties under this agreement, each party will use all reasonable efforts to facilitate obtaining the consents contemplated
by clause 2.1(b). 

  

	6.3	Notice to complete 

  

	 	(a)	If a party (Defaulting Party) fails to satisfy its obligations under clause 6.2 and Schedule 4 on the day and at the place and time for Completion determined under
clause 6.1 then the other party (Notifying Party) may give the Defaulting Party a notice requiring the Defaulting Party to satisfy those obligations within a period of 10 Business Days from the date of the notice and declaring time to be
of the essence. 

  

	 	(b)	If the Defaulting Party fails to satisfy those obligations within those 10 Business Days the Notifying Party may, without limitation to any other rights it may have, terminate this
agreement by giving written notice to the Defaulting Party. 

  

 page 23 

 7    Post Completion matters 
  

	6.4	Completion simultaneous 

  

	 	(a)	Subject to clause 6.4(b), the actions to take place as contemplated by this clause 6.2 and Schedule 4 are interdependent and must take place, as nearly as possible, simultaneously.
If one action does not take place, then without prejudice to any rights available to any party as a consequence: 

  

	 	(1)	there is no obligation on any party to undertake or perform any of the other actions; 

  

	 	(2)	to the extent that such actions have already been undertaken, the parties must do everything reasonably required to reverse those actions; and 

  

	 	(3)	GSE or GENSW (as applicable) and the Buyer must each return to the other all documents delivered to it under clause 6.2(a) and Schedule 4 and must each repay to the other all
payments received by it under clause 6.2(a) and Schedule 4, without prejudice to any other rights any party may have in respect of that failure. 

  

	 	(b)	The Buyer may, in its sole discretion, waive any or all of the actions which either GSE or GENSW are required to perform under clause 1.1 of Schedule 4 and GSE may, in its sole
discretion, waive any or all of the actions which the Buyer is required to perform under clause 1.2 of Schedule 4. 

  

	7	Post Completion matters 

  
  

	7.1	Allocation of rights and liabilities 

  

	 	(a)	GENSW is, subject to clauses 9 and 7.3: 

  

	 	(1)	responsible for all obligations and liabilities in respect of the Participating Interests in relation to the period prior to and on Completion and must perform all obligations and
liabilities under the Joint Operating Agreements that are required to be performed on, or before, Completion; and 

  

	 	(2)	entitled to all benefits in respect of the Participating Interests in relation to the period prior to and on Completion, including the benefit of all rights under the Joint
Operating Agreements that arise on, or before, Completion. 

  

	 	(b)	The Buyer is, subject to clauses 9 and 7.3: 

  

	 	(1)	responsible for all obligations and liabilities in respect of the Participating Interests in relation to the period after Completion and must perform all obligations and liabilities
under the Joint Operating Agreements that are required to be performed after Completion; and 

  

	 	(2)	entitled to all benefits in respect of the Participating Interests in relation to the period after Completion, including the benefit of all rights under the Joint Operating
Agreements that arise after Completion. 

  

 page 24 

 7    Post Completion matters 
  

	7.2	Participating Interest Pre-completion liabilities 

  

	 	(a)	Without limiting clause 7.1(a), and subject to clause 12.2(c), 12.3 and 12.5, GENSW is responsible for, and indemnifies the Buyer in respect of any Loss (to the extent only that the
Loss is in respect of the Participating Interests) in connection with: 

  

	 	(1)	any obligation under a Contract to which GENSW is a party in its capacity as a participant under a Joint Operating Agreement, Authorisation, Petroleum Title or Joint Operating
Agreement in respect of the period up to and including Completion except to the extent that the relevant cost is allocated to the Buyer under clause 8.1; 

  

	 	(2)	any contamination, pollution, damage to the environment, requirement to clean up or remediate or other Loss or liability (contingent or otherwise) resulting from a breach of an
environmental law or Authorisation or damage to the environment referable to activities of a Gas Joint Venture or Operator thereof in respect of the period up to and including Completion; and 

  

	 	(3)	any Duty, Tax, State Royalty or contractual royalty relating to business or activities of a Gas Joint Venture or the Operator thereof (including the production of Petroleum) in
respect of the period up to and including Completion except to the extent the relevant cost is allocated to the Buyer under clause 8.1 or clause 19.1. 

  

	 	(b)	Clause 7.2 does not extend to any Loss to the extent that is taken into account, in the calculation and payment of, any Adjustment Amount payable under clause 8.3.

  

	7.3	Participating Interest Post-completion liabilities 

  

	 	(a)	Without limiting clause 7.1(b), the Buyer is responsible for, and indemnifies GENSW in respect of any Loss (to the extent only that the Loss is in respect of the Participating
Interests) in connection with: 

  

	 	(1)	any obligation under a Contract to which the Buyer is a party, in its capacity as a participant under a Joint Operating Agreement, Authorisation, Petroleum Title or Joint Operating
Agreement in respect of the period after Completion; and 

  

	 	(2)	any contamination, pollution, damage to the environment, requirement to clean up or remediate or other Loss or liability (contingent or otherwise) resulting from a breach of an
environmental law or Authorisation or damage to the environment referable to activities of a Gas Joint Venture or Operator thereof in respect of the period after Completion; and 

  

	 	(3)	subject to clause 7.4, any Duty, Tax, State Royalty or contractual royalty relating to business or activities of a Gas Joint Venture or the Operator thereof (including the
production of Petroleum) in respect of the period after Completion. 

  

	 	(b)	Clause 7.3 does not extend to any Loss to the extent that is taken into account, in the calculation and payment of, any Adjustment Amount payable under clause 8.3.

  

 page 25 

 8    Adjustments 
  

	7.4	Royalties 

 Except for any royalties created after
Completion, GENSW (to the extent of the Participating Interests): 
  

	 	(a)	will retain, following Completion, liability relating to, including any responsibility to pay; and 

  

	 	(b)	indemnify the Buyer in respect of any Loss relating to 

 any royalties in connection with a Petroleum Titles, Petroleum, the Joint Ventures or the Participating Interests, other than the Overriding Royalties and the State Royalties. 
  

	7.5	Gastar Power Indemnity 

 Subject to clause 12.2(c),
12.3, and 12.5, GSE indemnifies the Buyer in respect of any Loss suffered, paid or incurred by the Buyer that is directly attributable to the Buyer purchasing the Sale Shares instead of acquiring the Power Joint Venture Participating Interest on the
same terms (including clause 7.2) as the Buyer will acquire the Participating Interests under this agreement. This includes any Loss: 
  

	 	(a)	in respect of any indebtedness or liability of Gastar Power (including to GSE or a Related Body Corporate) as at Completion; or 

  

	 	(b)	in respect of any Taxes or Duty incurred or payable by Gastar Power relating to the period up to and including Completion (except to the extent the relevant cost is allocated to the
Buyer under clause 8.1 or clause 19.1). 

  

	7.6	Tax returns 

 The Buyer will procure that Gastar
Power files its tax return for the year ended 31 December 2009 (or, if applicable, part thereof) within the required time limits. 
  

	8	Adjustments 

  
  

	8.1	Preparation of Participating Interests Adjustment Statement 

  

	 	(a)	Within 40 Business Days of the Completion Date, the Buyer must prepare and provide to GSE a statement (the draft Adjustment Statement) that calculates the Adjustment Amount,
being the Adjustment Debits as referred to in clause 8.1(b) below less the amount of Adjustment Credits as referred to in clause 8.1(c). The Buyer must simultaneously provide to GSE all relevant and available supporting documentation to enable GSE
to consider the Adjustment Statement and to respond to it in the time required by clause 8.2. 

  

	 	(b)	The Adjustment Debits are: 

  

	 	(1)	any Cash Calls or part thereof paid by GENSW or Gastar Power relating to expenditure incurred by the Operator under a Joint Venture Agreement after the Effective Date; and

  

 page 26 

 8    Adjustments 
  

	 	(2)	any revenue or proceeds from the sale of Petroleum from a Petroleum Title, generated in the period up to and including the Effective Date, received by the Buyer or Gastar Power,
including electricity or Green Products under the Country Energy Power Purchase Agreement net of any costs, Taxes (other than income tax), State Royalties or contractual royalties associated with the production or sale of the Petroleum, electricity
or Green Products. 

  

	 	(c)	The Adjustment Credits are: 

  

	 	(1)	any Cash Calls or part thereof paid by the Buyer or Gastar Power relating to expenditure incurred by the Operator under a Joint Venture Agreement up to and including the Effective
Date; and 

  

	 	(2)	any revenue or proceeds from the sale of Petroleum from a Petroleum Title generated in the period after the Effective Date received by GENSW or Gastar Power, including electricity
or Green Products under the Country Energy Power Purchase Agreement net of any costs, Taxes (other than income tax), State Royalties or contractual royalties associated with the production or sale of the Petroleum, electricity or Green Products.

  

	 	(d)	Where expenditure relating to a Cash Call falls both before and after the Effective Date, GENSW or, as applicable, Gastar Power is responsible for the expenditure falling before the
Effective Date, and the Buyer is responsible for the expenditure falling on and after the Effective Date, and this clause 8.1 will be interpreted accordingly. 

  

	8.2	Resolution of disputes 

  

	 	(a)	GENSW, Gastar Power and the Buyer must use reasonable endeavours to agree and finalise the Adjustment Statement within 10 Business Days of the Buyer giving the draft Adjustment
Statement to GSE under clause 8.1. 

  

	 	(b)	If the Buyer and GSE cannot agree on the Adjustment Statement within 10 Business Days, either the Buyer or GSE may refer the disputed items to an independent accountant agreed
between GSE and the Buyer within a further 5 Business Days or, if they cannot agree within that period, an accountant appointed by the President for the time being of the Institute of Chartered Accountants in Australia (the Expert).

  

	 	(c)	The Expert must be requested to determine the Adjustment Statement, in accordance with the principles in clause 8.1, as soon as practicable and in any event within 15 Business Days
of the Expert’s appointment. 

  

	 	(d)	The Expert acts as an expert and not an arbitrator and the decision of the Expert is final and binding on the Buyer and GSE. The costs of the Expert will be borne in the manner
determined by the Expert. 

  

	8.3	Payment of Adjustment Amount 

  

	 	(a)	If the Adjustment Amount is: 

  

	 	(1)	positive, the Buyer must pay the Adjustment Amount to GSE or GENSW, as applicable; or 

  

 page 27 

 9    Assignment of Contacts 
  

	 	(2)	negative, GENSW or GSE must pay the Adjustment Amount to the Buyer, as applicable, 

 in Immediately Available Funds, within 5 Business Days of finalisation of the Adjustment Statement. 
  

	 	(b)	The Adjustment Amount will be allocated between the Participating Interest Purchase Price and the Share Sale Purchase Price in a manner determined by the Buyer, acting reasonably,
and having regard to the extent to which the Adjustment Amount is referable to the Participating Interests on the one hand and the Power Joint Venture Interests on the other hand. If any dispute in this regard arises, the provisions of clause 2.2(d)
will apply to resolve such dispute as though set out fully in this paragraph. 

  

	9	Assignment of Contracts 

  
  

	9.1	Assignment of Contract 

  

	 	(a)	For the purposes of this clause 9, any reference to Contracts specifically excludes any Contract to which Gastar Power is a counterparty. 

  

	 	(b)	GENSW and the Buyer must use all reasonable endeavours to, in respect of each Contract to which GENSW is a party: 

  

	 	(1)	novate GENSW’s interest in the rights and obligations under the Contract to the Buyer by Completion; or 

  

	 	(2)	assign the Buyer the benefit of the GENSW’s interest in the Contract by Completion, 

 and to procure that the novation or assignment takes effect from Completion. 
  

	 	(c)	Where an assignment or novation required under clause 9.1(b) has not occurred by Completion, the Buyer and GENSW must use all reasonable endeavours to ensure that novation or
assignment occurs in accordance with this agreement as soon as reasonably practicable after Completion. 

  

	9.2	Obligations pending transfer 

  

	 	(a)	If an assignment or novation of a Contract required under clause 9.1(b) has not occurred by Completion, then after Completion and until such novation or assignment:

  

	 	(1)	GENSW will hold the benefit of its interest in that Contract and in any monies, goods or other benefits received under that Contract as trustee for the Buyer and will promptly upon
receipt pay or deliver all those monies, goods and other benefits to the Buyer without any deduction or withholding; 

  

	 	(2)	to the extent it lawfully can, GENSW must permit the Buyer to have the benefit of and exercise GENSW’s interest in the rights under that Contract from Completion;

  

 page 28 

 10    Land 
  

	 	(3)	the Buyer must, to the extent it lawfully can, perform all of the non-personal obligations of GENSW, to the extent of GENSW’s interest in the Contract, under that Contract from
Completion; 

  

	 	(4)	if the Buyer cannot lawfully perform an obligation or exercise, to the extent of GENSW’s interest in the Contract, the right of GENSW under the Contract, GENSW must perform
that obligation or exercise that right on, and in accordance with, any request by the Buyer and at the expense of the Buyer; 

  

	 	(5)	GENSW will give all reasonable assistance to the Buyer to enable it to enforce the rights of GENSW under that Contract and will at all times act with regard to the Contracts in
accordance with the Buyer’s reasonable instructions from time to time; and 

  

	 	(6)	GENSW will not take any action in respect of that Contract without the prior written approval of the Buyer. 

  

	 	(b)	Nothing in this agreement is to be construed as an attempt to assign the benefit of any Contract that by its terms or by law is not assignable without a third party consent, unless
such consent has been given. 

  

	10	Land 

  
  

	10.1	PPL 3 Operations Centre Land 

  

	 	(a)	Subject to clause 10.2, as part of the sale of the PEL 238 Participating Interest, GENSW will sell and the Buyer will buy GENSW’s 35% interest as tenant in common in the PPL 3
Operations Centre Land pursuant to the PPL 3 Operations Centre Land Agreement, which will be entered into by the Buyer and GENSW immediately prior to Completion. For the avoidance of doubt, the purchase price in respect of GENSW’s 35% interest
as tenant in common in the PPL 3 Operations Centre Land is included in the Participating Interests Purchase Price. 

  

	 	(b)	Together with the purchase of GENSW’s 35% interest in the PPL 3 Operations Centre Land, the Buyer will acquire the rights, privileges and other appurtenances referred to in the
Certificate of Title for the PPL 3 Operations Centre Land and all improvements and fixtures on the PPL 3 Operations Centre Land which cannot be severed from the land. 

  

	10.2	Encumbrances and easements 

 The Buyer will purchase
the PPL 3 Operations Centre Land subject to the Encumbrances and easements as disclosed in the Disclosure Letter and Disclosure Materials and Encumbrances and easements which would have been disclosed had the Buyer conducted public searches of the
type usually undertaken by a purchaser. 
  

 page 29 

 11    Warranties 
  

	11	Warranties 

  
 Subject to the qualifications and limitations in clause 12: 
  

	 	(a)	GENSW will give the GENSW Warranties; and 

  

	 	(b)	GSE will give the GSE Warranties, 

 in favour of the Buyer
on the date of this agreement and immediately before Completion (except where the Warranty specifies the time when it is given, in which case it will be taken to be given at that time). 
  

	11.2	Independent Warranties 

 Each of the Warranties is
to be construed independently of the others and is not limited by reference to any other Warranty. 
 GENSW only gives GENSW Warranties in
respect of the Gas Joint Venture activities and its Participating Interests and not in respect of the Power Station Joint Venture activities or the Power Station Participating Interests. GSE only gives GSE Warranties in respect of the Power Station
Joint Venture activities and the Power Station Participating Interests and not in respect of the Gas Joint Venture activities or the Participating Interests, and all GENSW Warranties and GSE Warranties shall be read accordingly. 
  

	11.3	Knowledge 

  

	 	(a)	Where a Warranty is given “to the best of GSE’s Knowledge”, GSE will be deemed to know or be aware of a particular fact, matter or circumstance if J. Russell Porter
or Michael A. Gerlich of GSE or Gastar Power: 

  

	 	(1)	is aware of that fact, matter or circumstance on the date the GSE Warranty is given; 

  

	 	(2)	should be aware of that fact, matter or circumstance, having regard to the non-operator status of Gastar Power under the Power Station Joint Venture. 

  

	 	(b)	Where a Warranty is given “to the best of GENSW’s Knowledge”, GENSW will be deemed to know or be aware of a particular fact, matter or circumstance if J. Russell
Porter or Michael A. Gerlich of GENSW: 

  

	 	(1)	is aware of that fact, matter or circumstance on the date the GENSW Warranty is given; or 

  

	 	(2)	should be aware of that fact, matter or circumstance, having regard to the non-operator status of GENSW under the Gas Joint Ventures. 

  

	11.4	Reliance 

 GSE and GENSW acknowledge that the Buyer
has entered into this agreement and will complete this agreement in reliance on the GSE Warranties and the GENSW Warranties respectively. 
  

 page 30 

 11    Warranties 
  

	11.5	Indemnity for breach of Warranty 

  

	 	(a)	GSE indemnifies the Buyer against and must pay an amount equal to any Loss suffered or incurred by the Buyer in connection with a breach of a GSE Warranty, except to the extent that
the GSE Warranty or the GSE’s liability for Loss for breach of GSE Warranty is limited or qualified under clause 12. 

  

	 	(b)	GENSW indemnifies the Buyer against and must pay an amount equal to any Loss suffered or incurred by the Buyer in connection with a breach of a GENSW Warranty, except to the extent
that the GENSW Warranty or the GENSW’s liability for Loss for breach of GENSW Warranty is limited or qualified under clause 12. 

  

	 	(c)	The Buyer indemnifies GSE and/or GENSW against and must pay an amount equal to any Loss suffered or incurred by GSE and/or GENSW in connection with a breach of a Buyer Warranty.

  

	11.6	Mutual warranties 

 Each party represents and
warrants to each other party, on the date of this agreement and on the Completion Date that: 
  

	 	(a)	the execution, delivery and performance of this agreement by it: 

  

	 	(1)	complies with its constitution or other constituent documents; and 

  

	 	(2)	does not constitute a breach of any law, or cause or result in a default under any Encumbrance, by which it is bound and which would prevent it from entering into and performing its
obligations under this agreement; 

  

	 	(b)	all necessary authorisations for the execution, delivery and performance by it of this agreement in accordance with its terms have been obtained; and 

  

	 	(c)	other than expressly provided in the Buyer Warranties or the Warranties (as applicable), the parties make no express or implied representation or warranty. 

 

	11.7	No reliance except on warranties 

 The Buyer and the
Buyer’s Guarantor (on behalf of themselves and their related bodies corporate) acknowledge and agree that: 
  

	 	(a)	no representations or warranties in relation to the transactions contemplated hereby, the Participating Interests, the Sale Shares, any future matters including any projections and
forecasts have been relied on in any way as being accurate by the Buyer or have been warranted by GENSW or GSE as being true, except those expressly set out in this agreement (including in the Warranties); and 

  

	 	(b)	the directors and officers of GSE and GENSW will have no personal liability in respect of the GSE Warranties or GENSW Warranties (as applicable), other than in a case of fraud or
wilful misconduct. 

  

 page 31 

 12    Qualifications and limitations on Claims 
  

	12	Qualifications and limitations on Claims 

  
  

	12.1	Disclosure 

 The Buyer acknowledges and agrees that
the Warranties are not breached by, and each representation in the Warranties is qualified by: 
  

	 	(a)	anything provided for or described in this agreement; 

  

	 	(b)	anything explicitly disclosed in the Disclosure Letter or Disclosure Materials; or 

  

	 	(c)	anything within the actual knowledge of the Buyer at the date of this agreement. 

  

	12.2	Maximum and minimum amounts 

  

	 	(a)	Neither GSE nor GENSW, as applicable, is liable under a Claim for breach of Warranty under this agreement unless the amount finally agreed or adjudicated to be payable in respect of
that Claim: 

  

	 	(1)	exceeds $100,000; and 

  

	 	(2)	either alone or together with the amount finally agreed or adjudicated to be payable in respect of all other Claims exceeds $3,000,000, 

 in which event, either GSE or GENSW (as applicable) is liable for all of the amount of that Claim. 
  

	 	(b)	Claims of the same or similar nature, or arising out of the same set of facts or circumstances, will be treated as a single Claim for the purpose of this clause 12.2.

  

	 	(c)	The maximum aggregate amount which GENSW and GSE, together, are required to pay in respect of all Claims: 

  

	 	(1)	for breach of Warranty (other than a breach of a Fundamental Warranty), any other breach of this agreement or any other indemnity or Claim under this agreement (other than the
indemnity in clause 7.5), is 50% of the Total Purchase Price; 

  

	 	(2)	for breach of a Fundamental Warranty or the indemnity in clause 7.5, is the Total Purchase Price; and 

  

	 	(3)	under (1) and (2) in aggregate, is the Total Purchase Price. 

  

	12.3	Recovery under other rights and reimbursement 

  

	 	(a)	The Buyer may only recover once for the same Loss, and cannot bring a Claim for an amount or Loss to the extent that the same amount or Loss has been recovered in another Claim
brought by the Buyer or a related body corporate of the Buyer. 

  

	 	(b)	 The Buyer cannot make a Claim under this agreement, for any Loss to the extent that the Buyer has recovered any Loss that gave rise to the Claim from 

  

 page 32 

 12    Qualifications and limitations on Claims 
  

	 	 
another source (including, without limitation, any amounts received or receivable under a policy of insurance or any Tax rebate or credits received or
receivable by the Buyer or any of its related bodies corporate in respect of the amount the subject of the Claim). 

  

	 	(c)	For the purpose of clause 12.3(b), the Buyer must use reasonable endeavours to (i) be noted as a beneficiary on any insurance policy taken out by any relevant operator for the
benefit of the parties under a relevant joint operating agreement and (ii) recover any Loss the subject of a Claim against GSE or GENSW from other sources (including pursuant to policies of insurance). 

  

	 	(d)	If, after either GSE or GENSW, as applicable, has made a payment in respect of a Claim for breach of Warranty, the Buyer recovers any Loss which gave rise to the Claim from another
source, the Buyer must, to the extent that it has recovered any Losses, immediately pay to GSE or GENSW, as applicable, the amount of the Loss which was recovered. 

  

	12.4	Time limits 

  

	 	(a)	Neither GSE nor GENSW is liable under a Claim for breach of Warranty unless the Buyer notifies GSE or GENSW, as applicable, of the Claim in accordance with clause 13 within 12
months after the Completion Date. 

  

	 	(b)	Any Claim made by the Buyer in respect of clause 7.5 must be made within 3 years of the date of this agreement. 

  

	12.5	Mitigation of Loss 

 The Buyer must: 
  

	 	(a)	take all reasonable actions to mitigate any Loss which may give rise to a Claim under this agreement; and 

  

	 	(b)	not omit to take any reasonable action which would mitigate any Loss which may give rise to a Claim under this agreement. 

  

	12.6	Payments affecting Purchase Price 

  

	 	(a)	Any payment made by GSE to the Buyer in respect of any Claim for breach of GSE Warranty will be treated as a reduction in the Share Sale Purchase Price. 

  

	 	(b)	Any payment made by GENSW to the Buyer in respect of any Claim for breach of GENSW Warranty will be treated as a reduction in the Participating Interest Purchase Price.

  

 page 33 

 13    Conduct of Claims 
  

	13	Conduct of Claims 

  
  

	13.1	Conduct of claims 

  

	 	(a)	If the Buyer becomes aware of any circumstances which constitute a breach of a Warranty or a potential Claim under this agreement, the Buyer must promptly give GSE and GENSW (as
applicable) notice of the breach, setting out reasonable details of the breach (including any possible defence or Recovery Action), as then known by the Buyer (Claim Notice). 

  

	 	(b)	The Buyer must also, on an on-going basis, keep the GSE and GENSW (as applicable) informed of all material developments in relation to the matter. 

  

	13.2	Third party claims 

  

	 	(a)	If a Third Party Claim is made that is likely to result in a Claim by the Buyer for a breach of Warranty, or otherwise, the Buyer must to the extent that it is permitted and able to
do so under the terms of the Joint Venture Agreements: 

  

	 	(1)	act reasonably in the conduct of that Third Party Claim (including using reasonable endeavours to defend it), and seek to mitigate any Losses resulting from, or that are likely to
result from, that Third Party Claim; 

  

	 	(2)	keep GSE or GENSW informed of all material developments and information relating to the Third Party Claim; and 

  

	 	(3)	not itself, and procure that each of its related body corporate do not, make any admission of liability, settlement or compromise to or with any third party about any Third Party
Claim or any Recovery Action without the prior written consent of GSE or GENSW (as applicable). Such consent of GSE or GENSW must not be unreasonably withheld or delayed. 

  

	 	(b)	The Buyer must not itself, and must procure that each of its related body corporates do not, make any admission of liability, settlement or compromise to or with any third party in
relation to the US Litigation without the prior written consent of GSE. 

  

	13.3	GSE’s and GENSW’s ability to remedy Claims 

  

	 	(a)	On receipt of a Claim Notice under clause 13.1(a), GSE and GENSW, as applicable, have a reasonable period of time (but not more than 30 Business Days) to remedy the Claim.

  

	 	(b)	If GSE or GENSW does not remedy the Claim, identified in the Claim Note, within the period specified in clause 13.3(a), the Buyer can enforce the Claim against GSE or GENSW.

  

 page 34 

 14    Buyer Warranties 
  

	14	Buyer Warranties 

  
  

	14.1	Buyer Warranties 

 The Buyer gives the Buyer
Warranties in favour of GSE and GENSW on the date of this agreement and the Buyer Warranties are deemed to be repeated immediately before Completion. To the extent a Buyer Warranty is given in respect of the Buyer Guarantor, the Buyer Guarantor is
also deemed to give that Buyer Warranty. 
  

	14.2	Independent Warranties 

 Each of the Buyer
Warranties is to be construed independently of the others and is not limited by reference to any other Buyer Warranty. 
  

	14.3	Reliance 

 The Buyer acknowledges that GSE and GENSW
has entered into and will complete this agreement in reliance of the Buyer Warranties. 
  

	15	Guarantor of GENSW 

  
  

	15.1	Guarantee and indemnity 

 GSE: 
  

	 	(a)	unconditionally and irrevocably guarantees to the Buyer the due and punctual performance of GENSW’s obligations under this agreement; and 

  

	 	(b)	as a separate and additional liability, indemnifies the Buyer against all Losses arising out of actions, proceedings and judgments of any nature, incurred by the Buyer arising from
any default or delay in the due and punctual performance of a GENSW’s obligations under this agreement. 

  

	15.2	Extent of guarantee and indemnity 

 The liability of
GSE under this clause 15 is not affected by anything which, but for this clause 15 might operate to release or exonerate GSE in whole or in part from its obligations including any of the following, whether with or without the consent of GSE:

  

	 	(a)	the grant to GENSW, the GSE or any other person of any time, waiver or other indulgence, or the discharge or release of GENSW, GSE or any other person from any liability or
obligation; 

  

	 	(b)	any transaction or arrangement that may take place between GENSW, GSE, the Buyer or any other person; 

  

	 	(c)	the Buyer exercising or refraining from exercising its rights under any security or any other rights, powers or remedies against GENSW, GSE or any other person;

  

 page 35 

 15    Guarantor of GENSW 
  

	 	(d)	the amendment, replacement, extinguishment, unenforceability, failure, loss, release, discharge, abandonment or transfer either in whole or in part and either with or without
consideration, of any security now or in the future held by the Buyer from GENSW, GSE or any other person or by the taking of or failure to take any security; 

  

	 	(e)	the failure or omission or any delay by GENSW or the Buyer to give notice to GSE of any default by GENSW under this agreement; and 

  

	 	(f)	any legal limitation, disability, incapacity or other circumstances related to a GENSW, GSE or any other person. 

  

	15.3	Principal and independent obligation 

 This clause
15 is a principal obligation and is not to be treated as ancillary or collateral to any other right or obligation and extends to cover this agreement as amended, varied, supplemented, renewed or replaced. 
  

	15.4	Continuing guarantee and indemnity 

 This clause 15
is a continuing obligation of GSE, despite Completion, and remains in full force and effect for so long as GENSW has any liability or obligation to the Buyer under this agreement and until all of those liabilities or obligations have been fully
discharged. 
  

	15.5	No withholdings 

  

	 	(a)	GSE, as applicable, must make all payments that become due under this clause free and clear without deduction of all present and future withholdings (including Taxes, Duties,
levies, imposts, deductions and charges of Australia or any other jurisdiction). 

  

	 	(b)	If GSE is compelled by law to deduct any withholding, then in addition to any payment due under this clause 15, it must pay to the Buyer such amount as is necessary to ensure that
the net amount received by the Buyer after withholding equals the amount that the Buyer, as applicable, would otherwise have been entitled to if not for the withholding. 

  

	15.6	Currency 

 GSE must pay all monies that it becomes
liable to pay under this clause in the currency in which they are payable under this agreement and free and clear of any commissions, expenses, relating to foreign currency conversion or any other charges or expenses. 
  

	15.7	GSE’s Liability 

 GSE’s liability, under
this clause 15, in respect of any Claim shall not exceed GENSW’s liability in respect of that Claim. 
  

 page 36 

 16    Buyer’s Guarantor 
  

	16	Buyer’s Guarantor 

  
  

	16.1	Guarantee and indemnity 

 The Buyer’s
Guarantor: 
  

	 	(a)	unconditionally and irrevocably guarantees to GSE and GENSW on demand the due and punctual performance of the Buyer’s obligations under this agreement.

  

	 	(b)	as a separate and additional liability, indemnifies GSE and GENSW against all Losses arising out of actions, proceedings and judgments of any nature, incurred by GSE and GENSW
arising from any default or delay in the due and punctual performance of the Buyer’s obligations under this agreement. 

  

	16.2	Extent of guarantee and indemnity 

 The liability of
the Buyer’s Guarantor under this clause 16 is not affected by anything which, but for this clause 16 might operate to release or exonerate the Buyer’s Guarantor in whole or in part from its obligations including any of the following,
whether with or without the consent of the Buyer’s Guarantor: 
  

	 	(a)	the grant to the Buyer, the Buyer’s Guarantor or any other person of any time, waiver or other indulgence, or the discharge or release of the Buyer, the Buyer’s Guarantor
or any other person from any liability or obligation; 

  

	 	(b)	any transaction or arrangement that may take place between the Buyer, the Buyer’s Guarantor, GENSW, GSE, or any other person; 

  

	 	(c)	GENSW or GSE, as applicable, exercising or refraining from exercising its rights under any security or any other rights, powers or remedies against the Buyer or any other person;

  

	 	(d)	the amendment, replacement, extinguishment, unenforceability, failure, loss, release, discharge, abandonment or transfer either in whole or in part and either with or without
consideration, of any security now or in the future held by the GENSW or GSE, from the Buyer, or any other person or by the taking of or failure to take any security; 

  

	 	(e)	the failure or omission or any delay by GSE, GENSW or the Buyer to give notice to the Buyer’s Guarantor of any default by the Buyer or any other person under this agreement;
and 

  

	 	(f)	any legal limitation, disability, incapacity or other circumstances related to the Buyer, the Buyer’s Guarantor or any other person. 

  

	16.3	Principal and independent obligation 

 This clause
16 is a principal obligation and is not to be treated as ancillary or collateral to any other right or obligation and extends to cover this agreement as amended, varied, supplemented, renewed or replaced. 
  

 page 37 

 17    Security Deposit 
  

	16.4	Continuing guarantee and indemnity 

 This clause 16
is a continuing obligation of the Buyer’s Guarantor and remains in full force and effect for so long as the Buyer has any liability or obligation to GSE or GENSW under this agreement and until all of those liabilities or obligations have been
fully discharged. 
  

	16.5	No withholdings 

  

	 	(a)	The Buyer’s Guarantor must make all payments that become due under this clause free and clear without deduction of all present and future withholdings (including Taxes, Duties,
levies, imposts, deductions and charges of Australia or any other jurisdiction). 

  

	 	(b)	If the Buyer’s Guarantor is compelled by law to deduct any withholding, then in addition to any payment due under this clause 16, it must pay to GSE or GENSW, as applicable,
such amount as is necessary to ensure that the net amount received by GSE or GENSW, as applicable, after withholding equals the amount that GSE or GENSW, as applicable, would otherwise have been entitled to if not for the withholding.

  

	16.6	Currency 

 The Buyer’s Guarantor must pay all
monies that it becomes liable to pay under this clause in the currency in which they are payable under this agreement and free and clear of any commissions, expenses, relating to foreign currency conversion or any other charges or expenses.

  

	16.7	The Buyer’s Guarantor’s Liability 

 The
Buyer’s Guarantor’s liability, under this clause 16, in respect of any Claim shall not exceed the Buyer’s liability in respect of that Claim. 
  

	17	Security Deposit 

  
 Within 3 Business Days of the Minister approving a transfer referred to under clause 3.4, the Buyer must: 
  

	 	(a)	use all reasonable endeavours to co-operate with GENSW to replace, and return to GENSW, any security deposit paid or issued to the Minister by GENSW (or a related body corporate of
GENSW) in respect of that Petroleum Title whose transfer is approved by the Minister (including posting any replacement security deposit where required); and 

  

	 	(b)	pay GENSW the amount equal to any security deposit referred to in clause 17(a) that is transferred to the Buyer and will not be released to GENSW by the Minister.

  

 page 38 

 18    Confidentiality and announcements 
  

	18	Confidentiality and announcements 

  
  

	18.1	Agreed announcement 

 A party may not make any other
public announcement relating to this agreement (including the fact that the parties have executed this agreement) unless the other party has consented to the announcement, including the timing, form and content of that disclosure, or unless the
announcement would be permitted under an exemption in clause 18.2(a)(1) or (2). 
  

	18.2	Confidentiality 

  

	 	(a)	Each party (recipient) must keep secret and confidential, and must not divulge or disclose any information relating to another party or its business (which is disclosed to
the recipient by the other party, its representatives or advisers), this agreement or the terms of the sale of the Participating Interests or the Sale Shares other than to the extent that: 

  

	 	(1)	the information is in the public domain as at the date of this agreement (or subsequently becomes in the public domain other than by breach of any obligation of confidentiality
binding on the recipient); 

  

	 	(2)	the recipient is required to disclose the information by applicable law or the rules of any recognised stock exchange on which its shares or the shares of any of its Related Bodies
Corporate are listed provided that the recipient has consulted with the provider of the information as to the form and content of the disclosure; 

  

	 	(3)	the disclosure is made by the recipient to its financiers or lawyers, accountants, investment bankers, consultants or other professional advisers to the extent necessary to enable
the recipient to properly perform its obligations under this agreement or to conduct their business generally, in which case the recipient must ensure that such persons keep the information secret and confidential and do not divulge or disclose the
information to any other person; 

  

	 	(4)	the disclosure is necessary to seek satisfaction of any of the conditions in clauses 2.1 provided that the relevant Governmental Agency is made aware of the confidential nature of
the information and is instructed to keep the information secret and confidential and do not divulge or disclose the information to any other person; 

  

	 	(5)	the disclosure is required for use in legal proceedings regarding this agreement or the sale of the Participating Interests; or 

  

	 	(6)	the party to whom the information relates has consented in writing before the disclosure. 

  

	 	(b)	Each recipient must ensure that its directors, officers, employees, agents, representatives and Related Bodies Corporate comply in all respects with the recipient’s obligations
under this clause 18.2. 

  

 page 39 

 19    Duties, costs and expenses 
  

	18.3	Replacement of any prior confidentiality agreements 

 This clause 18 replaces any prior confidentiality agreements or understandings that the parties have in place in respect of the transactions contemplated under this agreement. 
  

	19	Duties, costs and expenses 

  
  

	19.1	Duties 

 The Buyer must pay all Duty in respect of
the execution, delivery and performance of this agreement and any agreement or document entered into or signed under this agreement. 
  

	19.2	Costs and expenses 

  

	 	(a)	Unless otherwise provided in this agreement, each party must pay its own costs and expenses in respect of the negotiation, preparation, execution, delivery and registration of this
agreement and any other agreement or document entered into or signed under this agreement. 

  

	 	(b)	Any action to be taken by the Buyer, GSE or GENSW in performing its obligations under this agreement must be taken at its own cost and expense unless otherwise provided in this
agreement. 

  

	20	GST 

  
  

	 	(a)	Any reference in this clause 20 to a term defined or used in A New Tax System (Goods and Services Tax) Act 1999 is, unless the context indicates otherwise, a reference to
that term as defined or used in that Act. 

  

	 	(b)	Any amount referred to in this agreement which is relevant in determining a payment to be made by one party to the other is, unless indicated otherwise, a reference to that amount
expressed on a GST exclusive basis. 

  

	 	(c)	The parties agree that any supply contemplated in clause 3.1 constitutes the supply of a going concern for the purposes of section 38-325 of the A New Tax System (Goods and
Services Tax) Act 1999 and to the understanding of the parties is accordingly GST-free. 

  

	 	(d)	The Buyer warrants that it is registered or required to be registered for GST and will remain so until Completion. 

  

	 	(e)	Notwithstanding the understanding of the parties as expressed in clause 20(c), if for any reason and to any extent any supply contemplated in clause 20(c)is not accepted by the
Commissioner as a GST-free supply of a going concern: 

  

	 	(1)	the Buyer must pay to the GSE or GENSW (as applicable) an amount equal to the amount of the GST payable by either (or both) GSE or GENSW (as applicable) in respect of the supply
within 14 days after the Commissioner confirms GSE’s or GENSW’s liability to GST in an assessment or correspondence; and 

  

 page 40 

 21    General 
  

	 	(2)	GSE or GENSW must give the Buyer a copy of the assessment or correspondence from the Commissioner and issue a tax invoice as a precondition to payment under clause 20(e)(1).and

  

	 	(3)	the Buyer must indemnify GSE or GENSW (as applicable) for any penalties and/or General Interest Charge which may be applied in such circumstances. 

  

	 	(f)	If GST is imposed on a supply made under or in connection with this agreement (other than the supply constituted by the sale and purchase contemplated in clause 3.1) the
consideration for the supply is increased by an amount equal to the consideration otherwise payable for the supply (or its GST exclusive market value if applicable) multiplied by the rate at which the GST is imposed under the GST law. The additional
consideration is, subject to the supplier issuing a tax invoice to the recipient, payable at the same time as the consideration to which it relates. 

  

	 	(g)	If a party to this agreement is entitled to be reimbursed or indemnified for a loss, cost, expense or outgoing incurred in connection with this agreement, then the amount of the
reimbursement must be reduced by an amount equal to any input tax credit to which the party being reimbursed (or its representative member) is entitled in relation to that loss, cost, expense or outgoing. 

  

	 	(h)	Whenever an adjustment event occurs in relation to any taxable supply made under or in connection with this agreement the supplier must determine the net amount payable in respect
of GST in relation to the supply (taking into account any adjustments) and if that amount differs from the amount previously paid under either clause 20(e) or clause 20(f) as appropriate, the amount of the difference must be paid by, refunded to or
credited to the recipient, as applicable and the party making the taxable supply shall issue an adjustment note to the recipient. 

  

	21	General 

  
  

	21.1	Notices 

  

	 	(a)	This clause 21.1 applies to any notice or other communication including any request, demand, consent or approval, to or by a party to this agreement. 

  

	 	(b)	The notice must be in legible writing and in English addressed as shown below: 

  

	 	(1)	if to a GSE: 

 Address: Suite 1080, 1331 Lamar, Houston TX
77010 USA 
 Attention: Russ Porter 
 Facsimile: (713) 739-0458; 
  

 page 41 

 21    General 
  

	 	(2)	if to GENSW: 

 Address: Suite 1080, 1331 Lamar, Houston TX
77010 USA 
 Attention: Russ Porter 
 Facsimile: (713) 739-0458; 
  

	 	(3)	if to the Buyer: 

 Address: 60 Flinders Street, Adelaide,
SA 5000 
 Attention: Company Secretary 
 Facsimile: : 618 8116 5623; and 
  

	 	(4)	if to the Buyer’s Guarantor: 

 Address: 60 Flinders
Street, Adelaide, SA 5000 
 Attention: Company Secretary 
 Facsimile: 618 8116 5623; 
 or as specified to the sender by any party by notice. 
  

	 	(c)	Where the sender is a company, the notice must be signed by an officer or under the common seal of the sender. 

  

	 	(d)	The notice is regarded as being given by the sender and received by the addressee: 

  

	 	(1)	if by delivery in person, when delivered to the addressee; 

  

	 	(2)	if by post, 3 Business Days from and including the date of postage (or 10 Business Days in the case of international post); 

  

	 	(3)	if by facsimile transmission, when a facsimile confirmation receipt is received indicating successful delivery; or 

 but if the delivery or receipt is on a day which is not a Business Day or is after 5.00pm (addressee’s time) it is regarded as received at
9.00am on the following Business Day; 
  

	 	(e)	The notice can be relied on by the addressee and the addressee is not liable to any other person for any consequences of that reliance if the addressee believes it to be genuine,
correct and authorised by the sender. 

  

	 	(f)	A facsimile transmission is regarded as legible unless the addressee telephones the sender within 2 hours after the transmission is received or regarded as received under this
clause 21.1 and informs the sender that it is not legible. 

  

	 	(g)	In this clause 21.1, reference to an addressee includes a reference to an addressee’s officers, agents or employees. 

  

	21.2	Governing law and jurisdiction 

  

	 	(a)	This agreement is governed by the laws of New South Wales. 

  

	 	(b)	Each party irrevocably submits to the non-exclusive jurisdiction of the courts of New South Wales. 

  

 page 42 

 21    General 
  

	21.3	Service of process 

 Without preventing any other
mode of service, any document in an action (including any writ of summons or other originating process or any third or other party notice) may be served on any party by being delivered to or left for that party at its address for service of notices
under clause 21.1. 
  

	21.4	Prohibition and enforceability 

  

	 	(a)	Any provision of, or the application of any provision of, this agreement which is prohibited in any jurisdiction is, in that jurisdiction, ineffective only to the extent of that
prohibition. 

  

	 	(b)	Any provision of, or the application of any provision of, this agreement which is void, illegal or unenforceable in any jurisdiction does not affect the validity, legality or
enforceability of that provision in any other jurisdiction or of the remaining provisions in that or any other jurisdiction. 

  

	21.5	Waivers and variation 

  

	 	(a)	A provision of, or a right, discretion or authority created under, this agreement may not be: 

  

	 	(1)	waived except in writing signed by the party granting the waiver; and 

  

	 	(2)	varied except in writing signed by the parties. 

  

	 	(b)	A failure or delay in exercise, or partial exercise, of a power, right, authority, discretion or remedy arising from a breach of, or default under this agreement does not result in
a waiver of that right, power, authority, discretion or remedy. 

  

	21.6	Assignment 

 A party may not assign its rights under
this agreement without the consent of the other party. 
  

	21.7	Further assurances 

 Each party must do all things
and execute all further documents necessary to give full effect to this agreement and use reasonable endeavours to cause relevant third parties to do the same. 
  

	21.8	Approvals and consent 

 If the doing of any act,
matter or thing under this agreement is dependent on the approval or consent of a party, that party may give conditionally or unconditionally or withhold its approval or consent in its absolute discretion, unless this agreement expressly provides
otherwise. 
  

 page 43 

 21    General 
  

	21.9	Remedies cumulative 

 Except as provided in this
agreement and permitted by law, the rights, powers and remedies provided in this agreement are cumulative with and not exclusive to the rights, powers or remedies provided by law independently of this agreement. 
  

	21.10	Counterparts 

 This agreement may be executed in any
number of counterparts which together will constitute one instrument. A party may execute this agreement by signing any counterpart. 
  

	21.11	Severability 

 Any provision in this agreement which
is invalid or unenforceable in any jurisdiction is to be read down for the purpose of that jurisdiction, if possible, so as to be valid and enforceable, and otherwise shall be severed to the extent of the invalidity or unenforceability, without
affecting the remaining provisions of this agreement or affecting the validity or enforceability of that provision in any other jurisdiction. 
  

	21.12	No merger 

 The Warranties, undertakings and
indemnities in this agreement will not merge on Completion. 
  

	21.13	Entire agreement 

 This agreement embodies the
entire agreement between the parties and supersedes any prior negotiation, conduct, arrangement, understanding or agreement, express or implied, with respect to the subject matter of this agreement. 
  

	21.14	Contra proferentem excluded 

 No term or condition
of this agreement will be construed adversely to a party solely on the ground that the party was responsible for the preparation of this agreement or that provision. 
  

 page 44 

 Schedules 
 Table of
contents 
  
  

			
	 GENSW Warranties
	  	46
		
	 GSE Warranties
	  	50
		
	 Buyer Warranties
	  	55
		
	 Completion steps
	  	57

  

 page 45 

 Schedule 1 
  

			
		 	 GENSW Warranties

  

	1	Ownership 

  
  

	1.1	Ownership 

  

	 	(a)	GENSW is the owner of the PEL 238 Participating Interest, the PEL 433 Participating Interest and the PEL 434 Participating Interest. 

  

	 	(b)	At Completion, the Buyer will acquire the full legal and beneficial ownership of the Participating Interests, free and clear of all Encumbrances. 

  

	1.2	No Encumbrances 

 At Completion, the Participating
Interests are: 
  

	 	(a)	free and clear of all Encumbrances; and 

  

	 	(b)	not the subject of any agreements or arrangements to dispose or not to dispose or otherwise restrict their use in any respect. 

  

	2	Petroleum Titles 

  
  

	 	(a)	The Petroleum Titles are validly existing and (except for any relinquishment obligations under the Petroleum Act) are not subject to forfeiture or cancellation in whole or in part
for any reason. 

  

	 	(b)	GENSW has not taken any action to surrender the Petroleum Titles and, to the best of GENSW’s knowledge, the other parties to the Joint Operating Agreements have not taken any
action to surrender the Petroleum Titles. 

  

	 	(c)	To the best of GENSW’s knowledge, there are no outstanding or unpaid fees or royalties payable in respect of the Petroleum Titles under the Petroleum Act.

  

	 	(d)	GENSW has not received any notice or information regarding nor, to the best of GENSW’s knowledge and belief is it aware of, any circumstances that would result in a breach of
the terms and conditions of the Petroleum Titles. 

  

 page 46 

 Schedule 1    GENSW Warranties 
  

	3	Joint Venture Agreements 

  
  

	 	(a)	GENSW has complied in all material respects with the terms of the Joint Operating Agreements. 

  

	 	(b)	All Cash Calls due and payable by GENSW under the Joint Operating Agreements have been paid. 

  

	 	(c)	GENSW has not received notice from any party to a Joint Operating Agreement of that party’s intention to withdraw from that Joint Operating Agreement. 

 

	 	(d)	GENSW has not received any sole risk or non-consent notice pursuant to a Joint Operating Agreement. 

  

	 	(e)	To the best of GENSW’s knowledge, no party to a Joint Operating Agreement is in default, or would be in default but for the requirements of notice or lapse of time, under a
Joint Operating Agreement. 

  

	4	Litigation, compliance and Authorisations 

  
  

	4.1	No Material Proceedings 

 To the best of
GENSW’s knowledge, neither the parties to the Joint Operating Agreements nor the Operators under the Joint Operating Agreements are subject to any investigation, prosecution or litigation in connection with the Participating Interests, the
Petroleum Titles, the Joint Ventures (excluding the Power Joint Venture) or the Authorisations (Material Proceedings). 
  

	4.2	No threatened Material Proceedings 

 To the best of
GENSW’s knowledge: 
  

	 	(a)	no Material Proceedings are pending or threatened; and 

  

	 	(b)	there are no disputes or circumstances which will, or would reasonably be likely to, give rise to any Material Proceedings. 

  

	4.3	Compliance with laws 

 To the best of GENSW’s
knowledge the Gas Joint Ventures have been conducted in a manner that complies in all material respects with applicable laws and Authorisations. 
  

	4.4	Authorisations 

 To the best of GENSW’s
knowledge, the Operators of the Gas Joint Ventures hold all Authorisations necessary or appropriate to enable the Gas Joint Ventures operations to be carried on as currently conducted. 
  

 page 47 

 Schedule 1    GENSW Warranties 
  

	5	Contracts 

  
  

	5.1	Disclosure 

 To the best of GENSW’s knowledge,
the index to the Disclosure Materials lists all Contracts material to the Gas Joint Ventures. 
  

	5.2	Compliance 

 To the best of GENSW’s knowledge,
no party to a Contract is in default, or would be in default but for the requirements of notice or lapse of time, under a Contract. 
  

	6	Solvency 

  
  

	6.1	No liquidation 

 GENSW has not: 
  

	 	(a)	gone, or is proposed to go, into liquidation; 

  

	 	(b)	passed a winding-up resolution or commenced steps for winding-up or dissolution; or 

  

	 	(c)	received a deregistration notice under section 601AB of the Corporations Act or applied for deregistration under section 601AA of the Corporations Act.

  

	6.2	No winding-up process 

 No petition or other process
for winding-up or dissolution has been presented or threatened in writing against GENSW and there are no circumstances justifying such a petition or other process. 
  

	6.3	No receiver or manager 

 No receiver, receiver and
manager, judicial manager, liquidator, administrator or like official has been appointed, over the whole or a substantial part of the undertaking or property of GENSW and there are no circumstances justifying such an appointment. 
  

	6.4	Arrangements with creditors 

 GENSW has not entered
into, or taken steps or proposed to enter into, any arrangement, compromise or composition with or assignment for the benefit of its creditors or a class of them. 
  

 page 48 

 Schedule 1    GENSW Warranties 
  

	7	Accuracy of information 

  
  

	7.1	Disclosure 

  

	 	(a)	Any documents concerning the: 

  

	 	(1)	Participating Interests; 

  

	 	(2)	Gas Joint Ventures; 

  

	 	(3)	Petroleum Titles; and 

  

	 	(4)	Contracts, 

 received by GENSW under the Joint Operating
Agreements are listed in the index to the Disclosure Materials. 
 To the best of GENSW’s knowledge, (taking into account, in assessing
that knowledge, it is not the Operator and has undertaken no verification of the information the Disclosure Material), the information and documents in the Disclosure Material are not misleading in any material respect 
  

	8	Accounts 

  
  

	8.1	Basis of preparation 

 To the best of GENSW’s
knowledge, the Accounts have been prepared: 
  

	 	(a)	in accordance with the Accounting Procedures; and 

  

	 	(b)	in the manner described in the notes to them. 

  

	8.2	True and fair view 

 To the best of GENSW’s
knowledge, the Accounts give a true and fair view of the financial position of the Joint Ventures. 
  

	9	Native Title 

  
 GENSW has not received any native title or cultural heritage claim which relates to the Participating Interests or the areas the subject of the Petroleum
Titles, nor has it been notified of such a claim or aware that an Operator or other participant under a Joint Operating Agreement has received such a claim, but otherwise makes no representation, warranty, undertaking or claim in relation to native
title or cultural heritage. 
  

 page 49 

 Schedule 2 
  

			
		 	 GSE Warranties

  

	1	Ownership 

  
  

	1.1	Ownership 

  

	 	(a)	Gastar Power is the owner of the Power Joint Venture Participating Interest. 

  

	 	(b)	At Completion, the Buyer, following the acquisition of the Sale Shares, will acquire the full legal and beneficial ownership of the Power Joint Venture Participating Interest, free
and clear of all Encumbrances. 

  

	1.2	No Encumbrances 

 At Completion, the Power Joint
Venture Participating Interest is: 
  

	 	(a)	free and clear of all Encumbrances; and 

  

	 	(b)	not the subject of any agreements or arrangements to dispose or not to dispose or otherwise restrict their use in any respect. 

  

	2	Joint Venture Agreements 

  
  

	 	(a)	Gastar Power has complied in all material respects with the terms of the Power Joint Venture Agreement. 

  

	 	(b)	All Cash Calls due and payable by Gastar Power under the Power Joint Venture Agreement have been paid. 

  

	 	(c)	Gastar Power has not received notice from any party to the Power Joint Venture Agreement of that party’s intention to withdraw from the Power Joint Venture Agreement.

  

	 	(d)	Gastar Power has not received any sole risk or non-consent notice pursuant to the Power Joint Venture Agreement. 

  

	 	(e)	To the best of GSE’s knowledge, no party to the Power Joint Venture Agreement is in default, or would be in default but for the requirements of notice or lapse of time, under
the Power Joint Venture Agreement. 

  

 page 50 

 Schedule 2    GSE Warranties 
  

	3	Litigation, compliance and Authorisations 

  
  

	3.1	No Material Proceedings 

 To the best of the
GSE’s knowledge, neither the parties to the Power Joint Venture Agreement nor Narrabri Power (as Operator) is subject to any investigation, prosecution or litigation in connection with the Power Joint Venture Participating Interests, the
Petroleum Titles, the Joint Ventures or the Authorisations (Material Proceedings). 
  

	3.2	No threatened Material Proceedings 

 To the best of
GSE’s knowledge no Material Proceedings are pending or threatened and to the best of GSE’S knowledge there are no disputes or circumstances which will, or would reasonably be likely to, give rise to any Material Proceedings. 
  

	3.3	Compliance with laws 

 To the best of GSE’s
knowledge the Power Joint Venture have been conducted in a manner that complies in all material respects with applicable laws and Authorisations. 
  

	3.4	Authorisations 

 To the best of the Sellers’
knowledge Narrabri Power (as Operator) holds all Authorisations necessary or appropriate to enable the Power Joint Venture operations to be carried on as currently conducted. 
  

	4	Contracts 

  
  

	4.1	Disclosure 

 To the best of GSE’s knowledge,
the index to the Disclosure Materials lists all Contracts material to the Power Joint Venture. 
  

	4.2	Compliance 

 To the best of GENSW’s knowledge,
no party to a Contract is in default, or would be in default but for the requirements of notice or lapse of time, under a Contract. 
  

	5	Solvency 

  
  

	5.1	No liquidation 

 Neither GSE nor Gastar Power has:

  

	 	(a)	gone, or is proposed to go, into liquidation; 

  

 page 51 

 Schedule 2    GSE Warranties 
  

	 	(b)	passed a winding-up resolution or commenced steps for winding-up or dissolution; or 

  

	 	(c)	received a deregistration notice under section 601AB of the Corporations Act or applied for deregistration under section 601AA of the Corporations Act.

  

	5.2	No winding-up process 

 No petition or other process
for winding-up or dissolution has been presented or threatened in writing against GSE or Gastar Power and there are no circumstances justifying such a petition or other process. 
  

	5.3	No receiver or manager 

 No receiver, receiver and
manager, judicial manager, liquidator, administrator or like official has been appointed, over the whole or a substantial part of the undertaking or property of GSE or Gastar Power, and there are no circumstances justifying such an appointment.

  

	5.4	Arrangements with creditors 

 Neither GSE nor Gastar
Power not entered into, or taken steps or proposed to enter into, any arrangement, compromise or composition with or assignment for the benefit of its creditors or a class of them. 
  

	6	Accuracy of information 

  
  

	6.1	Disclosure 

  

	 	(a)	Any documents concerning the: 

  

	 	(1)	Power Joint Venture Participating Interest; 

  

	 	(2)	Power Joint Venture; 

  

	 	(3)	Petroleum Titles; and 

  

	 	(4)	Contracts, 

 received by Gastar Power under the Power
Joint Venture Agreement are listed in the index to the Disclosure Materials. 
 To the best of GSE’s knowledge, (taking into account, in
assessing that knowledge, that it is not the Operator and has undertaken no verification of the information the Disclosure Material), the information and documents in the Disclosure Material are not misleading in any material respect 
  

 page 52 

 Schedule 2    GSE Warranties 
  

	7	Ownership 

  
  

	7.1	Ownership 

 At Completion: 
  

	 	(a)	GSE is the legal and beneficial owner of the Sale Shares; 

  

	 	(b)	the Sale Shares comprise all of the issued capital of Gastar Power; and 

  

	 	(c)	the Buyer will acquire the full legal and beneficial ownership of the Sale Shares free and clear of all Encumbrances, subject to registration of the Buyer in the register of
shareholders. 

  

	7.2	No Encumbrances or other arrangements 

 In respect
of Gastar Power: 
  

	 	(a)	at Completion all of its shares are free and clear of all Encumbrances; 

  

	 	(b)	its shares can be sold and transferred free of any competing rights, including pre-emptive rights or rights of first refusal (subject to Completion taking place and clause 2.1(b) of
this agreement being satisfied); 

  

	 	(c)	its shares have been validly issued, are fully paid and no money is owning in respect of them; 

  

	 	(d)	it is not under an obligation to issue, and no person has the right to call for the issue or transfer of, any shares or other securities in it at any time; 

 

	 	(e)	it has not issued securities with conversion rights to shares or securities in it and there are no agreements or arrangements under which options or convertible notes have been
issued by it; and 

  

	 	(f)	there are no voting agreements or arrangements with respect to its shares. 

  

	8	Power and authority 

  
  

	8.1	Transaction Entities 

 Gastar Power: 
  

	 	(a)	is duly incorporated under the laws of the place of its incorporation; 

  

	 	(b)	has the power to own its assets and carry on the business as it is being carried on at Completion; 

  

	 	(c)	is duly registered and authorised to do business in those jurisdictions that, by the nature of its business and assets, makes registration or authorisation necessary; and

  

 page 53 

 Schedule 2    GSE Warranties 
  

	 	(d)	has conducted the business in compliance with its constitution or other constituent documents. 

  

	 	(e)	GSE enters into and performs this agreement on its own account and not as trustee for or nominee of any other person. 

  

	8.2	Enforceability 

 GSE’s obligations under this
agreement are enforceable in accordance with its terms. 
  

	9	Native Title 

  
 GSE has not received any native title or cultural heritage claim which relates to the Power Joint Venture Participating Interest, nor has it been notified
of such a claim or aware that the Operator or other participant under the Power Joint Venture Agreement has received such a claim, but otherwise makes no representation, warranty, undertaking or claim in relation to native title or cultural
heritage. 
  

	10	Tax 

  
 Gastar Power is not (and has never been) a member of a consolidated Tax group. 
  

 page 54 

 Schedule 3 
  

			
		 	 Buyer Warranties

  

	1	Incorporation 

  
 The Buyer and the Buyer’s Guarantor are validly incorporated, organised and subsisting in accordance with the laws of its place of incorporation.

  

	2	Enforceability 

  
 The Buyer and the Buyer’s Guarantor’s obligations under this agreement are enforceable in accordance with its terms. 
  

	3	No liquidation 

  
 The Buyer and the Buyer’s Guarantor have not 
  

	 	(a)	gone, or is proposed to go, into liquidation; 

  

	 	(b)	passed a winding-up resolution or commenced steps for winding-up or dissolution; or 

  

	 	(c)	received a deregistration notice under section 601AB of the Corporations Act or applied for deregistration under section 601AA of the Corporations Act.

  

	4	No winding-up process 

  
 No petition or other process for winding-up or dissolution has been presented or threatened in writing against the Buyer (or the Buyer’s Guarantor)
and, so far as the Buyer is aware, there are no circumstances justifying a petition or other process. 
  

	5	No receiver or manager 

  
 No receiver, receiver and manager, judicial manager, liquidator, administrator or like official has been appointed, or is threatened or expected to be
appointed, over the whole or a substantial part of the undertaking or property of the Buyer (or Buyer’s Guarantor) and there are no circumstances justifying such an appointment. 
  

 page 55 

 Schedule 3    Buyer Warranties 
  

	6	No writs 

  
 No writ of execution has issued against the Buyer (or Buyer’s Guarantor) or any of the Buyer (or Buyer’s Guarantor)’s assets and, so far as
the Buyer is aware, there are no circumstances justifying such a writ. 
  

	7	Solvency 

  
 The Buyer (and the Buyer’s Guarantor) is able to pay its debts as and when they fall due. The Buyer (and the Buyer’s Guarantor) is not taken
under applicable laws to be unable to pay its debts and has not stopped or suspended, or threatened to stop or suspend, payment of all or a class of its debts. 
  

 page 56 

 Schedule 4 
  

			
		 	 Completion steps

  

	1	Completion 

  
  

	1.1	Seller’s obligations at Completion 

 At
Completion the Seller must give the Buyer the following documents (except for any Buyer counterparts): 
  

	 	(a)	(assumption of obligations of the PEL 238 JOA) the deed of assumption in respect of the PEL 238 JOA executed by the Buyer, GENSW and the relevant ESG Subsidiaries;

  

	 	(b)	(assumption of obligations of the PEL 433 JOA) the deed of assumption in respect of the PEL 433 JOA executed by the Buyer, GENSW and the relevant ESG Subsidiaries;

  

	 	(c)	(assumption of obligations of the PEL 434 JOA) the deed of assumption in respect of the PEL 434 JOA executed by the Buyer, GENSW and the relevant ESG Subsidiaries;

  

	 	(d)	(Deed of Confirmation) a deed of assumption agreeing to be bound by the terms of the Deed of Confirmation executed by the Buyer, the relevant ESG Subsidiaries, Gastar Power
and GENSW; 

  

	 	(e)	(Consents) the consents set out in clause 2.1(a); 

  

	 	(f)	(Transfers of land) the PPL Operations Centre Land Agreement and all other documents necessary to transfer GENSW’s interest in the PPL3 Operation Centre Land to the
Buyer (or Buyer’s nominee) including instruments of transfer, executed by GENSW; 

  

	 	(g)	(GSE Board approval) certified extract of minutes of meeting of GSE at which the directors of GSE approve the sale and transfer of the Sale Shares and the entry into and
performance of this agreement; 

  

	 	(h)	(GENSW Board approval) certified extract of minutes of meeting of GENSW at which the directors of GENSW approve the sale and transfer of the Participating Interests and the
entry into and performance of this agreement; 

  

	 	(i)	(Records) the Records; 

  

	 	(j)	(Share transfers) a share transfer form in respect of the Sale Shares, executed by GSE; 

  

 page 57 

 Schedule 4    Completion steps 
  

	 	(k)	(Share certificates) the share certificate or certificates in respect of the Sale Shares: 

  

	 	(l)	(Resignations) resignations and releases signed by each director and the company secretary and public officer of Gastar Power; 

  

	 	(m)	(Gastar Power board) a signed resolution of the Gastar board of directors resolving to: 

  

	 	(1)	approve registration of the transfer of the Sale Shares; and 

  

	 	(2)	appoint those persons nominated by the Buyer, at least 2 Business Days prior to Completion, as the directors, company secretary, and public officer of Gastar Power; and

  

	 	(n)	(Release of security) confirmation and evidence that the Sale Shares have been released from all Encumbrances over or affecting them. 

  

	1.2	Buyer’s obligations at Completion 

 At
Completion the Buyer must: 
  

	 	(a)	pay $300 million, less any witholding under clause 3.4, less the Deposit (and any interest on the Deposit) to the Seller in Immediately Available Funds; 

  

	 	(b)	(ESG consents and waiver) deliver to the Seller all documents referred to in clause 2.1(a); 

  

	 	(c)	(CP Letter) deliver to the Seller an executed letter confirming that all conditions precedent under clause 2.1 have been satisfied or waived under clause 2.5;

  

	 	(d)	(Buyer Board approval) deliver to the Seller certified extract of minutes of meeting of the Buyer at which the directors of the Buyer approve the purchase of the Sale Shares
and the Participating Interests and the entry into and performance of this agreement; 

  

	 	(e)	(Buyer Guarantor Board approval) deliver to the Seller certified extract of minutes of meeting of the Buyer at which the directors of the Buyer Guarantor to act as a
Guarantor for the Buyer and approve the entry into and performance of this agreement; 

  

	 	(f)	execute and deliver to the Seller counterparts, executed by the Buyer, of those documents listed in clause 1.1 of this Schedule 4 that are to be executed by the Buyer.

  

 page 58 

 Signing page 
  

					
		 	 Executed as an agreement

			
		 	 Executed by
 Gastar Exploration USA,
Inc.
 by:
	  	
			
	sign here u	 	 /s/    Philip Martin Kudnig
	  	
		 	Authorised Representative	  	
			
	print name	 	 Philip Martin Kudnig
	  	
			
		 	in the presence of	  	
			
	sign here u	 	 /s/    Sean Prior
	  	
		 	Witness	  	
			
	print name	 	 Sean Prior
	  	
	
	  

			
		 	 Executed by
 Gastar Exploration New South Wales,
Inc.
 by:
	  	
			
	sign here u	 	 /s/    Philip Martin Kudnig
	  	
		 	Authorised Representative	  	
			
	print name	 	 Philip Martin Kudnig
	  	
			
		 	in the presence of	  	
			
	sign here u	 	 /s/    Sean Prior
	  	
		 	Witness	  	
			
	print name	 	 Sean Prior
	  	
	
	  

  

 page 59 

					
		 	 Signed by
 Santos QNT Pty Ltd
 by
	  	
			
	sign here u	 	 /s/    James Baulderstone
	  	
		 	Company Secretary/Director	  	
			
	print name	 	 James Baulderstone
	  	
			
	sign here u	 	 /s/    David Knox
	  	
		 	Director	  	
			
	print name	 	 David Knox
	  	
	
	  

			
		 	 Signed for
 Santos International Holdings Pty
Ltd
 by
	  	
			
	sign here u	 	 /s/    James Baulderstone
	  	
		 	Company Secretary/Director	  	
			
	print name	 	 James Baulderstone
	  	
			
	sign here u	 	 /s/    David Knox
	  	
		 	Director	  	
			
	print name	 	 David Knox
	  	
	
	  

  

 page 60

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