Document:

Exhibit

Counterpart __ of 50
Exhibit 4.42

ENTERGY LOUISIANA, LLC
(as successor by merger to Entergy Gulf States Power, LLC) 

4809 Jefferson Highway
Jefferson, Louisiana 70121

TO

THE BANK OF NEW YORK MELLON
(formerly The Bank of New York, successor to JPMorgan Chase Bank, N.A.)
as Trustee

101 Barclay Street
New York, New York 10286
__________________

Eighty-sixth Supplemental Indenture
Dated as of August 1, 2016
__________________

Relating to an Issue of First Mortgage Bonds,
4.875% Series due September 1, 2066
and Supplementing Indenture of Mortgage
dated September 1, 1926
__________________

THIS INSTRUMENT GRANTS A SECURITY
INTEREST BY A UTILITY

THIS INSTRUMENT CONTAINS AFTER-ACQUIRED
PROPERTY PROVISIONS

THIS EIGHTY-SIXTH SUPPLEMENTAL INDENTURE, dated as of the 1st day of August, 2016, by and between ENTERGY LOUISIANA, LLC (formerly Entergy Louisiana Power, LLC, successor by merger to Entergy Gulf States Power, LLC, a limited liability company (hereinafter sometimes called the “Predecessor Company”) that was successor to Entergy Gulf States Louisiana, LLC, a Texas limited liability company (formerly Entergy Gulf States Louisiana, L.L.C., a Louisiana limited liability company) (hereinafter sometimes called “EGSL”) that was successor by merger to Entergy Gulf States, Inc. (formerly Gulf States Utilities Company), a Texas corporation (hereinafter sometimes called the “Original Company”)), a limited liability company duly organized and existing under the laws of the State of Texas (hereinafter sometimes called the “Company”), party of the first part, and THE BANK OF NEW YORK MELLON (formerly The Bank of New York, successor to JPMorgan Chase Bank, N. A.), a New York banking corporation and having its corporate trust office in the Borough of Manhattan, City and State of New York, as successor trustee under the Indenture of Mortgage and indentures supplemental thereto hereinafter mentioned (hereinafter sometimes called the “Trustee”), party of the second part;
WHEREAS, the Original Company heretofore executed and delivered its Indenture of Mortgage, dated September 1, 1926 (hereinafter sometimes called the “Original Indenture”), to The Chase National Bank of the City of New York, as trustee, in and by which the Original Company conveyed and mortgaged to said The Chase National Bank of the City of New York, as trustee, certain property, therein described, to secure the payment of its bonds issued and to be issued under said Original Indenture in one or more series, as therein provided; and
WHEREAS, the Original Company heretofore executed and delivered to The Chase National Bank of the City of New York, as trustee, the First through the Fourth Supplemental Indentures, all supplementing and modifying said Original Indenture; and
WHEREAS, on March 21, 1939, The Chase National Bank of the City of New York resigned as trustee under the Original Indenture and all indentures supplemental thereto as aforesaid, pursuant to Section 4 of Article XIV of the Original Indenture, and by an Indenture dated March 21, 1939 said resignation was accepted and Central Hanover Bank and Trust Company was duly appointed the successor trustee under the Original Indenture and all indentures supplemental thereto, said resignation and appointment both being effective as of March 21, 1939, and the Central Hanover Bank and Trust Company did by said Indenture dated March 21, 1939 accept the trust under the Original Indenture and all indentures supplemental thereto; and
WHEREAS, the Original Company heretofore executed and delivered to Central Hanover Bank and Trust Company, as successor trustee, the Fifth through the Tenth Supplemental Indentures, supplementing and modifying said Original Indenture; and
WHEREAS, the name of Central Hanover Bank and Trust Company, successor trustee, as aforesaid, was changed effective June 30, 1951 to “The Hanover Bank”; and
WHEREAS, the Original Company heretofore executed and delivered to The Hanover Bank, as successor trustee, the Eleventh through the Twentieth Supplemental Indentures, supplementing and modifying said Original Indenture; and
WHEREAS, on September 8, 1961, pursuant to the laws of the State of New York, The Hanover Bank, successor trustee, as aforesaid, was duly merged into Manufacturers Trust Company, a New York corporation, under the name “Manufacturers Hanover Trust Company,” and Manufacturers Hanover Trust Company thereupon became the duly constituted successor trustee under the Original Indenture, as supplemented and modified as aforesaid; and

WHEREAS, the Original Company heretofore executed and delivered to Manufacturers Hanover Trust Company, as successor trustee, the Twenty-first through the Fifty-fourth Supplemental Indentures, supplementing and modifying said Original Indenture; and
WHEREAS, on June 19, 1992, pursuant to the laws of the State of New York, Manufacturers Hanover Trust Company, successor trustee, as aforesaid, was duly merged into Chemical Bank, a New York corporation, under the name “Chemical Bank,” and Chemical Bank thereupon became the duly constituted successor trustee under the Original Indenture, as supplemented and modified as aforesaid; and
WHEREAS, the Original Company heretofore executed and delivered to Chemical Bank, as successor trustee, the Fifty-fifth through the Fifty-seventh Supplemental Indentures, supplementing and modifying said Original Indenture; and 
WHEREAS, effective July 14, 1996, Chemical Bank, successor trustee, as aforesaid, was duly merged with and its name was duly changed to “The Chase Manhattan Bank”; and 
WHEREAS, the Original Company heretofore executed and delivered to The Chase Manhattan Bank, as successor trustee, the Fifty-eighth through Sixtieth Supplemental Indentures, supplementing and modifying said Original Indenture; and
WHEREAS, the name of The Chase Manhattan Bank, successor trustee, as aforesaid, was duly changed effective November 10, 2001 to “JPMorgan Chase Bank”; and
WHEREAS, the Original Company heretofore executed and delivered to JPMorgan Chase Bank, as successor trustee, the Sixty-first through Sixty-seventh Supplemental Indentures, supplementing and modifying said Original Indenture; and
WHEREAS, effective November 13, 2004, JPMorgan Chase Bank, successor trustee, was converted from a New York corporation to a national banking association under the name “JPMorgan Chase Bank, N.A.”; and
WHEREAS, the Original Company heretofore executed and delivered to JPMorgan Chase Bank, N.A., as successor trustee, the Sixty-eighth through Seventy-fourth Supplemental Indentures, supplementing and modifying said Original Indenture; and
WHEREAS, on October 3, 2007, JPMorgan Chase Bank, N.A. resigned as trustee under the Original Indenture and all indentures supplemental thereto as aforesaid, by an Agreement of Resignation, Appointment and Acceptance dated October 3, 2007, said resignation was accepted, and The Bank of New York was duly appointed the successor trustee under the Original Indenture and all indentures supplemental thereto, said resignation and appointment both being effective as of October 3, 2007, and The Bank of New York did by said Agreement dated October 3, 2007 accept the trust under the Original Indenture and all indentures supplemental thereto; and
WHEREAS, effective as of December 26, 2007, the Original Company obtained the release from the lien of the Original Indenture, as supplemented and modified, of all of its real property located in Texas and substantially all of its personal property located in Texas that was part of the trust estate, together with certain associated rights, privileges and franchises, as well as certain undivided interests in mortgaged property located in Louisiana, as more particularly described in the instruments of partial release filed with respect thereto on or before December 26, 2007; and

WHEREAS, effective as of 1:00 P.M. Central Standard Time, December 31, 2007, the Original Company underwent a merger by division under Texas law pursuant to which, among other things, all of its property located in Texas, together with certain property located in Louisiana, was allocated to Entergy Texas, Inc., substantially all of its property located in Louisiana was retained by the Original Company, and all of its obligations and liabilities under the Original Indenture, as supplemented and modified, and the Bonds were retained by the Original Company; and
WHEREAS, effective as of 4:00 P.M. Central Standard Time, December 31, 2007, the Original Company merged (hereinafter sometimes called the “2007 Merger”) into EGSL pursuant to an Agreement and Plan of Merger and Reorganization of Entergy Gulf States, Inc. into Entergy Gulf States Louisiana, L.L.C. and a Certificate and Articles of Merger (hereinafter sometimes collectively called the “2007 Merger Documents”), pursuant to which, among other things, (1) all of the rights, privileges, franchises, assets, liabilities and obligations of the Original Company were allocated to EGSL; and (2) the identity of the Original Company was merged into that of EGSL; and
WHEREAS, pursuant to Section 14.01 of the Original Indenture, as restated by the Seventh Supplemental Indenture, EGSL and the Trustee executed the Seventy-fifth Supplemental Indenture dated as of December 31, 2007 whereby EGSL assumed and agreed to pay duly and punctually the principal of and interest on the Bonds issued under the Original Indenture, as supplemented and modified, in accordance with the provisions of said Bonds and the Original Indenture, as supplemented and modified, and agreed to perform and fulfill all the terms, covenants and conditions of the Original Indenture, as supplemented and modified, binding the Original Company; and
WHEREAS, pursuant to Section 14.02 of the Original Indenture, as restated by the Seventh Supplemental Indenture, EGSL succeeded to the Original Company under the Original Indenture and all indentures supplemental thereto with the same effect as if it had been named in the Original Indenture, as supplemented and modified, as the mortgagor company and in the Bonds as the obligor thereon or maker thereof; and
WHEREAS, pursuant to Section 14.03 of the Original Indenture, as restated by the Seventh Supplemental Indenture, in respect of property owned by the Original Company at the time of the 2007 Merger as provided in Section 14.01 of the Original Indenture, as restated by the Seventh Supplemental Indenture, and substitutions, replacements, additions, betterments, developments, extensions and enlargements thereto subsequently made, constructed or acquired, the rights and duties of EGSL were the same as the rights and duties of the Original Company would have been had the 2007 Merger not taken place; and
WHEREAS, pursuant to Section 14.04 of the Original Indenture, as restated by the Seventh Supplemental Indenture, in respect of property at the time of the 2007 Merger owned by EGSL and/or of property thereafter acquired by EGSL except said substitutions, replacements, additions, betterments, developments, extensions and enlargements to, of or upon the property owned by the Original Company referred to in Section 14.03 of the Original Indenture, as restated by the Seventh Supplemental Indenture, the Original Indenture, as supplemented and modified shall not become or be a lien upon any of such property; and
WHEREAS, effective as of March 25, 2008, EGSL obtained the release from the lien of the Original Indenture, as supplemented and modified, of all of the remainder of its property located in Texas that was part of the trust estate, together with certain associated rights, privileges and franchises, as well as certain undivided interests in mortgaged property located in Louisiana, as more particularly described in the instruments of partial release filed with respect thereto on or before March 25, 2008; and
WHEREAS, the name of The Bank of New York, successor trustee, as aforesaid, was duly changed effective July 1, 2008 to “The Bank of New York Mellon”; and

WHEREAS, EGSL heretofore executed and delivered to The Bank of New York Mellon, as successor trustee, the Seventy-sixth through Eighty-first Supplemental Indentures, supplementing and modifying said Original Indenture; and
WHEREAS, on September 21, 2015, EGSL converted to a Texas limited liability company and changed its name to Entergy Gulf States Louisiana, LLC; and 
WHEREAS, effective as of 10:03 A.M. Central Standard Time, October 1, 2015, EGSL transferred (hereinafter sometimes called the “2015 Transfer”), subject to the lien of the Indenture, the trust estate as, or substantially as, an entirety to the Predecessor Company pursuant to an Agreement and Plan of Merger and Reorganization of Entergy Gulf States Louisiana, LLC and Entergy Gulf States Power, LLC and a Certificate of Merger (hereinafter sometimes collectively called the “2015 Transfer Documents”), pursuant to which, among other things, (1) the trust estate as, or substantially as, an entirety, was allocated to the Predecessor Company; and (2) all of the obligations of EGSL under the Indenture and the Bonds outstanding thereunder were allocated to the Predecessor Company; and
WHEREAS, pursuant to Section 14.01 of the Original Indenture, as restated by the Seventh Supplemental Indenture, the Predecessor Company and the Trustee executed the Eighty-second Supplemental Indenture dated as of October 1, 2015 whereby the Predecessor Company assumed and agreed to pay duly and punctually the principal of and interest on the Bonds issued under the Original Indenture, as supplemented and modified in accordance with the provisions of said Bonds and the Original Indenture, as supplemented and modified, and agreed to perform and fulfill all the terms, covenants and conditions of the Original Indenture, as supplemented and modified, binding on EGSL; and
WHEREAS, pursuant to Section 14.02 of the Original Indenture, as restated by the Seventh Supplemental Indenture, the Predecessor Company succeeded to EGSL under the Original Indenture and all indentures supplemental thereto with the same effect as if it had been named in the Original Indenture, as supplemented and modified, as the mortgagor company and in the Bonds as the obligor thereon or maker thereof; and
WHEREAS, pursuant to Section 14.03 of the Original Indenture, as restated by the Seventh Supplemental Indenture, in respect of property owned by EGSL at the time of the 2015 Transfer as provided in Section 14.01 of the Original Indenture, as restated by the Seventh Supplemental Indenture, and substitutions, replacements, additions, betterments, developments, extensions and enlargements thereto subsequently made, constructed or acquired, the rights and duties of the Predecessor Company were the same as the rights and duties of EGSL would have been had the 2015 Transfer not taken place; and
WHEREAS, pursuant to Section 14.04 of the Original Indenture, as restated by the Seventh Supplemental Indenture, in respect of property at the time of the 2015 Transfer owned by the Predecessor Company and/or of property thereafter acquired by the Predecessor Company except said substitutions, replacements, additions, betterments, developments, extensions and enlargements to, of or upon the property owned by EGSL referred to in Section 14.03 of the Original Indenture, as restated by the Seventh Supplemental Indenture, the Original Indenture, as supplemented and modified shall not become or be a lien upon any of such property; and
WHEREAS, effective as of 10:05 A.M. Central Time, October 1, 2015, the Predecessor Company was merged (hereinafter sometimes called the “2015 Merger”) into the Company pursuant to a Plan of Merger of Entergy Gulf States Power, LLC into Entergy Louisiana Power, LLC and a Certificate of Merger (hereinafter sometimes collectively called the “2015 Merger Documents”), pursuant to which, among other things, (1) all of the rights, privileges, franchises, assets, liabilities and obligations of the Predecessor Company were allocated to the Company; and (2) the identity of the Predecessor Company was merged into that of the Company; and

WHEREAS, effective as of 2:02 P.M. Central Time, October 1, 2015, the Company changed its name to “Entergy Louisiana, LLC”; and
WHEREAS, pursuant to Section 14.01 of the Original Indenture, as restated by the Seventh Supplemental Indenture, the Company and the Trustee executed the Eighty-third Supplemental Indenture dated as of October 1, 2015 whereby the Company assumed and agreed to pay duly and punctually the principal of and interest on the Bonds issued under the Original Indenture, as supplemented and modified in accordance with the provisions of said Bonds and the Original Indenture, as supplemented and modified, and agreed to perform and fulfill all the terms, covenants and conditions of the Original Indenture, as supplemented and modified, binding on the Predecessor Company; and
WHEREAS, pursuant to Section 14.02 of the Original Indenture, as restated by the Seventh Supplemental Indenture, the Company succeeded to the Predecessor Company under the Original Indenture and all indentures supplemental thereto with the same effect as if it had been named in the Original Indenture, as supplemented and modified, as the mortgagor company and in the Bonds as the obligor thereon or maker thereof; and
WHEREAS, pursuant to Section 14.03 of the Original Indenture, as restated by the Seventh Supplemental Indenture, in respect of property owned by the Predecessor Company at the time of the 2015 Merger as provided in Section 14.01 of the Original Indenture, as restated by the Seventh Supplemental Indenture, and substitutions, replacements, additions, betterments, developments, extensions and enlargements thereto subsequently made, constructed or acquired, the rights and duties of the Company were the same as the rights and duties of the Predecessor Company would have been had the 2015 Merger not taken place; and
WHEREAS, pursuant to Section 14.04 of the Original Indenture, as restated by the Seventh Supplemental Indenture, in respect of property at the time of the 2015 Merger owned by the Company and/or of property thereafter acquired by the Company except said substitutions, replacements, additions, betterments, developments, extensions and enlargements to, of or upon the property owned by the Predecessor Company referred to in Section 14.03 of the Original Indenture, as restated by the Seventh Supplemental Indenture, the Original Indenture, as supplemented and modified shall not become or be a lien upon any of such property; and
WHEREAS, the Company heretofore executed and delivered to The Bank of New York Mellon, as successor trustee, the Eighty-fourth and Eighty-fifth Supplemental Indentures, supplementing and modifying said Original Indenture; and
WHEREAS, the series of bonds established under the Seventh Supplemental Indenture supplementing and modifying said Original Indenture and under each successive supplemental indenture have been designated respectively and are referred to herein as “Bonds of the 1976, 1978, 1979, 1980, 1981, 1982, 1983, 1986, 1987, 1988, 1989, 1989A, 1990, 1992, 1996, 1997, 1998, 1998A, 1999, 1999A, 2000, 2000A, 2001, 2003, 2004, 2005, 2006, 2007, 2009, 2009A, 1987A, 2010, 1991, 1993, 1992A, 2012, 2013, 2013A, 1994, 2014B, C and D, 2015, 2016, 2016A, 1994A, 2002, 2022, 2004A, 2024, 1996A, 1997A, 1998B, 1999B, 2003A, MTN, 2003B, 2004B, 2007A, 2012A, 2008, 2007B, 2033, 2015A, 2011, 2009B, 2014E, 2035, 2015B, 2010A, 2006A, 2008A, 2011B, 2018, 2024, 2020, 2028E, 2015F, 2025, 2028 and 2031 Series”; and 
WHEREAS, under the Original Indenture, as supplemented and modified, any new series of Bonds may at any time be established by the Board of Directors of the Company and the terms thereof may be specified by a supplemental indenture executed by the Company and the Trustee; and
WHEREAS, the Company proposes to create under the Original Indenture, as supplemented and modified as aforesaid and as further supplemented by this Eighty-sixth Supplemental Indenture (the Original Indenture as so supplemented and modified being hereinafter sometimes called the Indenture), a new series 

of Bonds to be designated First Mortgage Bonds, 4.875% Series due September 1, 2066, such Bonds when originally issued to be dated August 17, 2016 and to mature on September 1, 2066 (hereinafter sometimes referred to as the Bonds of the 2066 Series), and presently to issue $200,000,000 aggregate principal amount of the Bonds of the 2066 Series; and
WHEREAS, all acts and proceedings required by law and by the Articles of Organization and Operating Agreement of the Company necessary to make the Bonds of the 2066 Series, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding mortgage for the security of all of the Bonds of the Company issued or to be issued under the Indenture, in accordance with its and their terms, have been done and taken; and the execution and delivery of this Eighty-sixth Supplemental Indenture have been in all respects duly authorized;
NOW, THEREFORE, THIS EIGHTY-SIXTH SUPPLEMENTAL INDENTURE WITNESSETH:
That in order to secure the payment of the principal of, premium, if any, and interest on, all Bonds at any time issued and outstanding under the Indenture, according to their tenor, purport and effect, and to secure the performance and observance of all the covenants and conditions in said Bonds and in the Indenture contained, and to declare the terms and conditions upon and subject to which the Bonds of the 2066 Series are and are to be issued and secured, and for and in consideration of the premises and of the mutual covenants herein contained, and the acceptance of the Bonds of the 2066 Series by the holder thereof, and of the sum of $1 duly paid to the Company by the Trustee, at or before the execution and delivery hereof, and for other valuable consideration, the receipt whereof is hereby acknowledged, the Company has executed and delivered this Eighty-sixth Supplemental Indenture, and by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm unto the Trustee, its successors in trust and assigns, the following property, rights, privileges and franchises hereinafter described, (1) owned by the Predecessor Company at the time of the 2015 Merger and constituting the trust estate allocated to the Company by the 2015 Merger Documents or (2) acquired or constructed by the Company after the 2015 Merger to the extent constituting substitutions, replacements, additions, betterments, developments, extensions or enlargements to, of or upon the trust estate, together in each case with any substitutions, replacements, additions, betterments, developments, extensions and enlargements thereto, thereof or thereupon subsequently made, constructed or acquired by the Company (other than excepted property as hereinafter defined):
CLAUSE I
All and singular the lands, real estate, chattels real, interests in land, leaseholds, ways, rights of way, grants, easements, servitudes, rights pursuant to ordinances, consents, permits, patents, licenses, lands under water, water and riparian rights, franchises, privileges, immunities, rights to construct, maintain and operate distribution and transmission systems, all other rights and interests, gas, water, steam and electric light, heat and power plants and systems, dams, and dam sites, stations and substations, powerhouses, electric transmission and distribution lines and systems, pipe lines, conduits, towers, poles, wires, cables and all other structures, machinery, engines, boilers, dynamos, motors, transformers, generators, electric and mechanical appliances, office buildings, warehouses, garages, stables, sheds, shops, tunnels, subways, bridges, other buildings and structures, implements, tools and other apparatus, appurtenances and facilities, materials and supplies, and all other property of any nature appertaining to any of the plants, systems, business or operations of the Company, whether or not affixed to the realty, used in the operation of any of the premises or plants or systems, or otherwise, constituting part of the trust estate at the time of the 2015 Merger or constituting substitutions, replacements, additions, betterments, developments, extensions or enlargements to, of or upon the trust estate (other than excepted property as hereinafter defined); including (but not limited to) all its properties situated in the Cities of Baton Rouge, Jennings and Lake Charles and in the Parishes of Acadia, Allen, Ascension, Beauregard, Calcasieu, Cameron, East 

Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson Davis, Lafayette, Livingston, Pointe Coupee, St. Helena, St. Landry, St. Martin, St. Tammany, Tangipahoa, Vermilion, Washington, West Baton Rouge and West Feliciana, Louisiana, and vicinity constituting part of the trust estate at the time of the 2015 Merger or constituting substitutions, replacements, additions, betterments, developments, extensions or enlargements to the trust estate (other than excepted property as hereinafter defined).
CLAUSE II
All corporate, Federal, State, county (parish), municipal and other permits, consents, licenses, bridge licenses, bridge rights, river permits, franchises, patents, rights pursuant to ordinances, grants, privileges and immunities of every kind and description constituting part of the trust estate at the time of the 2015 Merger or constituting substitutions, replacements, additions, betterments, developments, extensions or enlargements to, of or upon the trust estate (other than excepted property as hereinafter defined).
CLAUSE III
Also all other property, real, personal or mixed, tangible or intangible of every kind, character and description, constituting part of the trust estate at the time of the 2015 Merger or constituting substitutions, replacements, additions, betterments, developments, extensions or enlargements to, of or upon the trust estate (other than excepted property as hereinafter defined), whether or not useful in the generation, manufacture, production, transportation, distribution, sale or supplying of electricity, steam, water or gas.
CLAUSE IV
PROPERTIES EXCEPTED
There is, however, expressly excepted and excluded from the lien and operation of this Indenture (1) all "excepted property" as defined and described in Granting Clause VII of the Indenture (omitting from such exception specifically described property thereafter expressly subjected to the lien of the Indenture), (2) all property owned by the Company prior to the 2015 Merger and (3) all property acquired by the Company after the 2015 Merger not constituting substitutions, replacements, additions, betterments, developments, extensions or enlargements to, of or upon the trust estate.
TO HAVE AND TO HOLD the trust estate and all and singular the lands, properties, estates, rights, franchises, privileges and appurtenances hereby mortgaged, hypothecated, conveyed, pledged or assigned, or intended so to be, together with all the appurtenances thereto appertaining and the rents, issues and profits thereof, unto the Trustee and its successors in trust and to its assigns, forever.
SUBJECT, HOWEVER, to the exceptions (except as omitted above in Clause IV hereof), reservations, restrictions, conditions, limitations, covenants and matters recited in Article Twenty of the Indenture, and in each respective Article Three of the Eighth and each consecutive succeeding Supplemental Indenture through the Seventeenth Supplemental Indenture and, likewise, of the Nineteenth through the Thirty-seventh Supplemental Indentures and, likewise, of the Thirty-ninth through the Fifty-seventh Supplemental Indentures or contained in any deeds and other instruments whereunder the Company has acquired any of the property now owned by it, to permitted encumbrances as defined in Subsection B of Section 1.07 of the Indenture, and, with respect to any property which the Company may hereafter acquire, to all terms, conditions, agreements, covenants, exceptions and reservations expressed or provided in the deeds or other instruments, respectively, under and by virtue of which the Company shall hereafter acquire the same and to any liens thereon existing, and to any liens for unpaid portions of the purchase money placed thereon, at the time of such acquisition.
BUT, IN TRUST, NEVERTHELESS, for the equal and proportionate use, benefit, security and protection of those who from time to time shall hold the Bonds and coupons, if any, authenticated and delivered under the Indenture and duly issued by the Company, without any discrimination, preference or priority of any one Bond or coupon, if any, over any other by reason of priority in the time of issue, sale or negotiation 

thereof or otherwise, except as provided in Section 12.28 of the Original Indenture, as restated by the Seventh Supplemental Indenture, so that, subject to said Section 12.28 of the Original Indenture, as restated by the Seventh Supplemental Indenture, each and all of said Bonds and coupons, if any, shall have the same right, lien and privilege under the Indenture and shall be equally secured thereby and shall have the same proportionate interest and share in the trust estate, with the same effect as if all the Bonds and coupons, if any, had been issued, sold and negotiated simultaneously.
AND UPON THE TRUSTS, USES AND PURPOSES and subject to the covenants, agreements and conditions of the Original Indenture as modified and supplemented by previous supplemental indentures and by this Eighty-sixth Supplemental Indenture.
ARTICLE ONE

BONDS OF THE 2066 SERIES AND
CERTAIN PROVISIONS RELATING THERETO
Section 1.01 
A.    Terms of Bonds of the 2066 Series.  There is hereby established a new series of Bonds to be issued under and secured by the Indenture, to be known as and entitled “First Mortgage Bonds, 4.875% Series due September 1, 2066”. The definitive Bonds of the 2066 Series shall be registered Bonds without coupons of the denominations of $25 and in multiples of $25 in excess thereof as shall be authorized by written order of the Company, numbered R-1 consecutively upwards. Bonds of the 2066 Series may be issued in the first instance (until definitive Bonds to be issued in exchange therefor are prepared and ready for delivery) as temporary Bonds dated August 17, 2016, in denominations of $25 and of such multiples of $25 as shall have been authorized, as aforesaid, numbered TR-1 consecutively upwards, in substantially the form of Bond set forth in Section 1.01B of this Eighty-sixth Supplemental Indenture, with changes therein appropriate to their character.
Bonds of the 2066 Series shall be dated as provided in Section 3.05 of the Indenture. Notwithstanding the provisions of said Section 3.05, so long as there is no default in the payment of interest on Bonds of the 2066 Series existing at the time of the authentication hereinafter referred to, all Bonds of the 2066 Series authenticated by the Trustee on any interest payment date for Bonds of the 2066 Series shall be dated the date of and shall bear interest from such interest payment date; provided, however, that if and to the extent the Company shall default in the payment of such interest due on such interest payment date, then any such Bond of the 2066 Series shall bear interest from the interest payment date immediately preceding the date of such Bond of the 2066 Series. The Bonds of the 2066 Series shall mature on September 1, 2066 and, beginning on August 17, 2016, shall bear interest at the rate of 4.875% per annum until the payment of the principal thereof, such interest to be payable quarterly on March 1, June 1, September 1 and December 1 in each year, commencing December 1, 2016, and on the maturity date.  The interest so payable on any Bonds of the 2066 Series will be paid to the person in whose name such Bonds of the 2066 Series are registered.  If any interest payment date for the Bonds of the 2066 Series falls on a day that is not a Business Day, the payment of interest will be made on the next succeeding Business Day, and no interest on such payment shall accrue for the period from and after such interest payment date. If the maturity date or any redemption date of the Bonds of the 2066 Series falls on a day that is not a Business Day, the payment of principal (and premium, if any) and interest (to the extent payable with respect to the principal being redeemed if on a redemption date) will be made on the next succeeding Business Day, and no interest on such payment shall accrue for the period from and after the maturity date or such redemption date. Interest on the Bonds of the 2066 Series will be calculated on the basis of a 360-day year consisting of twelve 30-day months.
Both principal of and interest on the Bonds of the 2066 Series will be paid in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and 

private debts, at the corporate trust office in the Borough of Manhattan, City and State of New York, of the Trustee.
The definitive Bonds of the 2066 Series may be issued in the form of Bonds engraved, printed, lithographed, or partly engraved and partly printed or lithographed, on steel engraved borders or typed.
Upon compliance with the provisions of Section 3.10 of the Indenture and upon payment, at the option of the Company, of the charges provided in Section 3.11 of the Indenture, subject to the provisions of any legend set forth thereon, Bonds of the 2066 Series may be exchanged for a new Bond or Bonds of the said Series of different authorized denominations of like aggregate principal amount.
The Trustee hereunder shall, by virtue of its office as such Trustee, be the registrar and transfer agent of the Company for the purpose of registering and transferring Bonds of the 2066 Series.
B.    Form of Bonds of the 2066 Series. The Bonds of the 2066 Series, and the Trustee’s authentication certificate to be executed on the Bonds of the 2066 Series, shall be in substantially the following forms, respectively:
[FORM OF FACE OF BOND OF THE 2066 SERIES]
[legend to be included on Bonds of the 2066 Series]
This Bond is not transferable except to a successor trustee under the Collateral Trust Mortgage (as defined below) between Entergy Louisiana, LLC and the Collateral Trust Trustee (as defined below).  This Bond is a Class A Bond (as defined in the Collateral Trust Mortgage) issued under the EGSL Mortgage (as defined in the Collateral Trust Mortgage).
	
			
	No. R-___
	 
	 

	$_____________
	 
	 

ENTERGY LOUISIANA, LLC
FIRST MORTGAGE BOND 4.875% SERIES
DUE SEPTEMBER 1, 2066
ENTERGY LOUISIANA, LLC, a Texas limited liability company (hereinafter sometimes called the “Company”), for value received, hereby promises to pay to THE BANK OF NEW YORK MELLON, as trustee under the Mortgage and Deed of Trust of the Company dated as of November 1, 2015 (as the same may be supplemented and amended from time to time, the “Collateral Trust Mortgage”), or its successor as trustee under the Collateral Trust Mortgage, the principal amount set forth above on September 1, 2066, and to pay interest thereon from August 17, 2016, if the date of this bond is prior to December 1, 2016, or, if the date of this bond is on or after December 1, 2016, from the March 1, June 1, September 1 or December 1 immediately preceding the date of this bond to which interest has been paid on the bonds of this series (unless the date hereof is an interest payment date to which interest has been paid, in which case from the date hereof) at the rate of 4.875% per annum, on March 1, June 1, September 1 and December 1 of each year, commencing December 1, 2016, and at maturity or earlier redemption, until payment of the principal hereof. The interest so payable will be paid to the person in whose name this bond is registered. If any interest payment date for this bond falls on a day that is not a Business Day, the payment of interest will be made on the next succeeding Business Day, and no interest on such payment shall accrue for the period from and after the interest payment date. If the maturity date or any redemption date of this bond falls on a day that is not a Business Day, the payment of principal and interest (to the extent payable with respect to the principal being redeemed if on a redemption date) will be made on the next succeeding Business Day, and no interest on such payment shall accrue for the period from and after the maturity date or such redemption date.

Both principal of and interest on this bond will be paid in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts, at the corporate trust office in the Borough of Manhattan, City and State of New York, of the Trustee under the Indenture.
This bond shall not become or be valid or obligatory for any purpose until the authentication certificate hereon shall have been signed by the Trustee.
The provisions of this bond are continued on the reverse hereof and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.

IN WITNESS WHEREOF, Entergy Louisiana, LLC has caused these presents to be executed in its company name, by facsimile signature or manually, by its President or one of its Vice Presidents and by its Treasurer or an Assistant Treasurer under its company seal or a facsimile thereof, all as of _________, 20__.

ENTERGY LOUISIANA, LLC 

By: _____________________________________
       Name:    
       Title:    
 
And By: __________________________
  Name:   
  Title:     
[SEAL]

[FORM OF REVERSE OF BOND OF THE 2066 SERIES]

ENTERGY LOUISIANA, LLC
FIRST MORTGAGE BOND, 4.875% SERIES
DUE SEPTEMBER 1, 2066 (Continued)

This bond is one of the bonds, of the above designated series, of an authorized issue of bonds of the Company, known as First Mortgage Bonds, issued or issuable in one or more series under and equally secured (except insofar as any sinking and/or improvement fund or other fund established in accordance with the provisions of the Indenture hereinafter mentioned may afford additional security for the bonds of any specific series) by an Indenture of Mortgage dated September 1, 1926, as supplemented and modified by indentures supplemental thereto, to and including a Eighty-sixth Supplemental Indenture dated as of August 1, 2016 to The Bank of New York Mellon, as Trustee, to which Indenture of Mortgage, as so supplemented and modified, and all indentures supplemental thereto (herein sometimes called the “Indenture”) reference is hereby made for a description of the property mortgaged and pledged as security for said bonds, the nature and extent of the security, and the rights, duties and immunities thereunder of the Trustee, the rights of the holders of said bonds and of the Trustee and of the Company in respect of such security, and the terms upon which said bonds may be issued thereunder.
The bonds of this series shall be issued by the Company, registered in the name of and delivered to The Bank of New York Mellon, as trustee under the Collateral Trust Mortgage, or its successor as trustee under the Collateral Trust Mortgage (collectively, the “Collateral Trust Trustee”), to provide for the payment when due (whether at maturity, by acceleration or otherwise) of the principal and interest of the Securities (as defined in the Collateral Trust Mortgage) to be issued from time to time under the Collateral Trust Mortgage.
Any payment by the Company under the Collateral Trust Mortgage of the principal of or interest on the Securities which shall have been authenticated and delivered under the Collateral Trust Mortgage on the basis of the issuance and delivery to the Collateral Trust Trustee of bonds of this series (other than by application of the proceeds of a payment in respect of such bonds) shall, to the extent of such payment, be deemed to satisfy and discharge the obligation of the Company, if any, to make a payment of principal of,  or interest on such bonds, as the case may be, which is then due. 
The Trustee may conclusively presume that the obligation of the Company to pay the principal of and interest on this bond as the same shall become due and payable shall have been fully satisfied and discharged unless and until it shall have received a written notice from the Collateral Trust Trustee signed by its President, a Vice President, an Assistant Vice President or a Trust Officer, stating that interest or principal due and payable on any Securities issued under the Collateral Trust Mortgage has not been fully paid and specifying the amount of funds required to make such payment. 
The holder of this bond hereby consents that the bonds of this series may be redeemable at the option of the Company or pursuant to the requirements of the Indenture in whole at any time, or in part from time to time, prior to the maturity date, without notice provided in Section 10.02 of the Indenture, at the principal amount of the bonds to be redeemed, in each case, together with accrued interest to the date fixed for redemption by the Company in a notice delivered to the Trustee and to the holder of the bonds to be redeemed on or before the date fixed for redemption.
The bonds of this series shall be redeemed, in whole at any time, or in part from time to time, prior to maturity, at a redemption price equal to the principal amount thereof, upon receipt by the Trustee of a written notice from the Collateral Trust Trustee (i) delivered to the Trustee and the Company, (ii) signed by its President, a Vice President, an Assistant Vice President or a Trust Officer, (iii) stating that an Event of Default has occurred and is continuing under the Collateral Trust Mortgage and that, as a result, there then 

is due and payable a specified amount with respect to the Securities Outstanding under the Collateral Trust Mortgage, for the payment of which the Collateral Trust Trustee has not received funds, and (iv) specifying the principal amount of the bonds of this series to be redeemed.  Delivery of such notice shall constitute a waiver by the Collateral Trust Trustee of notice of redemption under the Indenture.
The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than seventy-five percent in principal amount of the bonds (exclusive of the bonds disqualified by reason of the Company’s interest therein) at the time outstanding, including, if more than one series of bonds shall be at the time outstanding, not less than sixty percent in principal amount of each series affected, to effect, by an indenture supplemental to the Indenture, modifications or alterations of the Indenture and of the rights and obligations of the Company and of the holders of the bonds; provided, however, that no such modification or alteration shall be made without the written approval or consent of the registered owner hereof which will (a) extend the maturity of this bond or reduce the rate or extend the time of payment of interest hereon or reduce the amount of the principal hereof, or (b) permit the creation of any lien, not otherwise permitted, prior to or on a parity with the lien of the Indenture, or (c) reduce the percentage of the principal amount of the bonds upon the approval or consent of the holders of which modifications or alterations may be made as aforesaid. Each initial and future holder of the bonds of this series, by its acquisition of an interest in such bonds, irrevocably (a) consents to the amendments set forth in Article Three of the Eighty-first Supplemental Indenture without any other or further action by any holder of such bonds, and (b) designates the Trustee, and its successors, as its proxy with irrevocable instructions to vote and deliver written consents on behalf of such holder in favor of such amendments at any bondholder meeting, in lieu of any bondholder meeting, in any consent solicitation or otherwise.
This bond shall not be transferable by the Collateral Trust Trustee, except to a successor trustee under the Collateral Trust Mortgage.  This bond so transferable to a successor trustee under the Collateral Trust Mortgage may be transferred by the registered owner hereof in person or by his or her duly authorized attorney at the corporate trust office in the Borough of Manhattan, City and State of New York of the Trustee upon surrender of this bond for cancellation and upon payment, if the Company shall so require, of the charges provided for in the Indenture, and thereupon a new registered bond of the same series of like principal amount will be issued to the transferee in exchange therefor.
The registered owner of this bond, at the option of said owner, may surrender the same for cancellation at said office and receive in exchange therefor the same aggregate principal amount of bonds of the same series but of other authorized denominations, upon payment, if the Company shall so require, of the charges provided for in the Indenture and subject to the terms and conditions therein set forth.
If a default as defined in the Indenture shall occur, the principal of this bond may become or be declared due and payable before maturity in the manner and with the effect provided in the Indenture. The holders, however, of certain specified percentages of the bonds at the time outstanding, including in certain cases specified percentages of bonds of particular series, may in those cases, to the extent and under the conditions provided in the Indenture, waive certain defaults thereunder and the consequences of such defaults.
No recourse shall be had for the payment of the principal of or the interest on this bond, or for any claim based hereon, or otherwise in respect hereof or of the Indenture, against any incorporator, shareholder, director or officer, past, present or future, as such, of the Company or of any predecessor or successor company, either directly or through the Company or such predecessor or successor company, under any constitution or statute or rule of law, or by the enforcement of any assessment or penalty, or otherwise, all such liability of incorporators, shareholders, directors and officers, as such, being waived and released by the holder and owner hereof by the acceptance of this bond and as provided in the Indenture.
[FORM OF TRUSTEE’S AUTHENTICATION CERTIFICATE FOR BONDS]

TRUSTEE’S AUTHENTICATION CERTIFICATE
This is one of the bonds, of the series designated therein, described in the within-mentioned Indenture.
THE BANK OF NEW YORK MELLON,
As Trustee
 
By: ______________________________
      Authorized Officer

Section 1.02.  Redemption Provisions for Bonds of the 2066 Series.  The Bonds of the 2066 Series shall be redeemable as provided in the form of Bond set forth in Section 1.01B of this Eighty-sixth Supplemental Indenture.
Section 1.03.  Limitation on Issue of Bonds of the 2066 Series.  The principal amount of the Bonds of the 2066 Series shall not be limited except as provided in Section 3.01 of the Indenture, and except as may otherwise be provided in an indenture supplemental to the Indenture, including this Section 1.03. Upon the delivery of this Eighty-sixth Supplemental Indenture and upon compliance with the applicable provisions of the Indenture, there shall be an initial issue of Bonds of the 2066 Series in the aggregate principal amount of $200,000,000. Additional Bonds of the 2066 Series having substantially the same terms as the outstanding Bonds of the 2066 Series (except for the issue date and, if applicable, the initial interest payment date) may be issued by the Company, subject to satisfaction of the requirements of the Indenture, without notice to or the consent of the existing holders of the Bonds of the 2066 Series.
Section 1.04.  Duration of Effectiveness of Article One.  Sections 1.01 and 1.02 of this article shall be of force and effect only so long as any Bonds of the 2066 Series are outstanding.
ARTICLE TWO
Section 2.01.  This Eighty-sixth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture as supplemented and modified. As heretofore supplemented and modified, and as supplemented hereby, the Original Indenture is in all respects ratified and confirmed, and the Original Indenture, as heretofore supplemented and modified, and this Eighty-sixth Supplemental Indenture shall be read, taken and construed as one and the same instrument.
Section 2.02.  The recitals in this Eighty-sixth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Original Indenture as supplemented and modified, in respect to the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.
Section 2.03.  Although this Eighty-sixth Supplemental Indenture is dated for convenience and for the purpose of reference as of August 1, 2016, the actual date or dates of execution by the Company and by the Trustee are as indicated by their respective acknowledgements hereto annexed.
Section 2.04.  In order to facilitate the recording or filing of this Eighty-sixth Supplemental Indenture, the same may be simultaneously executed in several counterparts and each shall be deemed to be an original and such counterparts shall together constitute one and the same instrument.
Section 2.05.  The words “herein”, “hereof”, “hereunder” and other words of similar import refer to this Eighty-sixth Supplemental Indenture. All other terms used in this Eighty-sixth Supplemental Indenture shall be taken to have the same meaning as in the Original Indenture and indentures supplemental thereto, except in cases where the context clearly indicates otherwise.

ARTICLE THREE
Section 3.01.  Each initial and future holder of Bonds of the 2066 Series, by its acquisition of an interest in such Bonds, irrevocably (a) consents to the amendment set forth in Sections 3.01, 3.02, 3.03, 3.04, 3.05, 3.06 and 3.07 of the Eighty-first Supplemental Indenture without any other or further action by any holder of such Bonds, and (b) designates the Trustee, and its successors, as its proxy with irrevocable instructions to vote and deliver written consents on behalf of such holder in favor of such amendments at any bondholder meeting, in lieu of any bondholder meeting, in any consent solicitation or otherwise.

IN TESTIMONY WHEREOF, ENTERGY LOUISIANA, LLC has caused these presents to be executed in its name and behalf by its President, one of its Vice Presidents, its Treasurer or one of its Assistant Treasurers, and its company seal to be hereunto affixed or a facsimile thereof printed hereon and attested by its Secretary or an Assistant Secretary, and THE BANK OF NEW YORK MELLON, in token of its acceptance hereof, has likewise caused these presents to be executed in its name and behalf by one of its Vice Presidents, Senior Associates or Associates and its corporate seal to be hereunto affixed and attested by one of its Vice Presidents, Senior Associates or Associates, each in the presence of the respective undersigned Notaries Public, and of the respective undersigned competent witnesses, as of the day and year first above written.
ENTERGY LOUISIANA, LLC

By:  /s/ Stacey M. Lousteau
       Name: Stacey M. Lousteau
       Title:   Assistant Treasurer
(COMPANY SEAL)

Attest:

/s/ Dawn A. Balash
Name: Dawn A. Balash
Title:   Assistant Secretary

Signed in the presence of: 

/s/ Leah W. Dawsey
Name: Leah W. Dawsey

/s/ Christina M. Edwards
Name: Christina M. Edwards

THE BANK OF NEW YORK MELLON,
  as successor Trustee 

By:  /s/ Laurence J. O’Brien
       Name: Laurence J. O’Brien
       Title:   Vice President
Attest:

/s/ Latoya S. Elvin
Name: Latoya S. Elvin
Title:   Vice President

 
 
Signed, sealed and delivered by in the presence of:
 

/s/ John Bowman
Name: John Bowman

 
/s/ Marcela Alvarez
Name: Marcela Alvarez

ENTERGY LOUISIANA, LLC
United States of America,
State of Louisiana,         ss:
Parish of Orleans
I, the undersigned, a Notary Public duly qualified, commissioned, sworn and acting in and for the Parish and State aforesaid, hereby certify that, on this 15th day of August, 2016:
Before me personally appeared STACEY M. LOUSTEAU, Assistant Treasurer, and DAWN A. BALASH, Assistant Secretary, of Entergy Louisiana, LLC, both of whom are known to me to be the persons whose names are subscribed to the foregoing instrument and both of whom are known to me to be Assistant Treasurer, and Assistant Secretary, respectively, of said ENTERGY LOUISIANA, LLC, and separately acknowledged to me that they executed the same in the capacities therein stated for the purposes and considerations therein expressed and as the act and deed of ENTERGY LOUISIANA, LLC
Before me personally came STACEY M. LOUSTEAU, to me known, who being by me duly sworn, did depose and say, that she resides in Metairie, Louisiana; that she is Assistant Treasurer of ENTERGY LOUISIANA, LLC, one of the companies described in and which executed the above instrument; that she knows the seal of said company; that the seal affixed to or printed on said instrument is such company seal; that it was so affixed by order of the Board of Directors of said company, and that she signed her name thereto by like order.
BE IT REMEMBERED, that before me, and in the presence of LEAH K. DAWSEY and SHANNON K. RYERSON, competent witnesses, residing in said State, personally came and appeared STACEY M. LOUSTEAU and DAWN A. BALASH, Assistant Treasurer, and Assistant Secretary, respectively, of ENTERGY LOUISIANA, LLC, a limited liability company created by and existing under the laws of the State of Louisiana, with its Louisiana domicile in the City of Baton Rouge, Louisiana, and said STACEY M. LOUSTEAU and DAWN A. BALASH declared and acknowledged to me, Notary, in the presence of the witnesses aforesaid, that they signed, executed and sealed the foregoing supplemental indenture for and on behalf of and in the name of ENTERGY LOUISIANA, LLC, and have affixed the company seal of said company to the same or caused it to be printed thereon, by and with the authority of the Board of Directors of said Company.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 15th day of August, 2016.
(Notarial Seal)
/s/ Jennifer B. Favalora
Name: Jennifer B. Favalora
Notary Public No. 57639
Parish of Jefferson, State of Louisiana
My Commission is for Life.

STATE OF NEW JERSEY
                                                            } ss.:
COUNTY OF PASSAIC
On this 11th day of August, 2016, before me appeared Laurence J. O’Brien, to me personally known or proved to me on the basis of satisfactory evidence and, who, being by me duly sworn, did say that he is a Vice President of THE BANK OF NEW YORK MELLON, and that the seal affixed to the above instrument is the corporate seal of said entity and that said instrument was signed and sealed in behalf of said entity by authority of its Board of Directors, and said Vice President acknowledged said instrument to be the free act and deed of said entity.
On this 11th day of August, 2016, before me personally came Latoya S. Elvin, to me known or proved to me on the basis of satisfactory evidence and, who, being by me duly sworn, did depose and say that she resides in Bogota, New Jersey; that she is a Vice President of THE BANK OF NEW YORK MELLON, one of the entities described in and which executed the above instrument; that she knows the seal of said entity; that the seal affixed to said instrument is such seal, that it was so affixed by order of the Board of Directors of said entity, and that she signed her name thereto by like order.
/s/ Rick J. Fierro
Rick J. Fierro
Notary Public
State of New Jersey
My Commission Expires Nov 24, 2019Exhibit 10.23

 

SETTLEMENT AND RELEASE AGREEMENT

 

This Settlement and Release Agreement (the “Agreement”) is made as of the 15th day of August, 2016 (the “Effective Date”), regardless of when it is executed, by and among SCS Corporation Ltd. (“SCS”), Tullow Guinea Ltd. (“Tullow”) and Dana Petroleum (E&P) Limited (“Dana”). SCS, Tullow and Dana are sometimes collectively referred to herein as the “Parties,” or individually as a “Party”.

 

WHEREAS the Republic of Guinea and SCS entered into a Hydrocarbon Production Sharing Contract dated September 2006 (“PSC”).

 

WHEREAS in January 2010, SCS assigned a 23% participating interest in the PSC to Dana.

 

WHEREAS on January 28, 2010, SCS and Dana entered into an Operating Agreement (“JOA”) for the exploration for oil offshore the Republic of Guinea.

 

WHEREAS in November 2012, SCS and Tullow entered into a Purchase and Sale Agreement, whereby SCS, as Farmor, assigned and transferred to Tullow, as Farmee, an undivided forty percent (40%) Participating Interest in the PSC, “subject to the JOA, the PSC and the Material Contracts of all Encumbrances.”

 

WHEREAS thereafter Tullow was appointed Operator under the JOA.

 

WHEREAS a dispute arose among the Parties regarding the drilling of a well commonly known as the Fatala (“Fatala”).

 

WHEREAS on January 8, 2016, SCS filed Cause No: 4;16-cv-0076, styled SCS Corporation Ltd. v. Tullow Guinea Ltd. and Dana Petroleum (E&P) Ltd., in the United States District Court for the Southern District of Texas (the “First Lawsuit”). In the First Lawsuit SCS sought against Tullow an injunction for specific performance of the JOA and declarations that:

 

i.              Tullow is in breach of its obligations under the JOA;

 

ii.             Tullow is required to carry out the work program and budget approved by the Operating Committee and to do so in a time frame consistent with the obligations imposed by the JOA;

 

iii.            Tullow cannot refuse to perform its obligations due to the potential nonpayment by Dana; and

 

iv.            Tullow’s actions are taken in bad faith and are a breach of its duties of good faith and fair dealing towards its partners in a joint operating agreement under Texas common law and the Texas Business and Commerce Code,

 

and against Dana sought an injunction for specific performance of the JOA and declarations that:

 

1

 

i.              Dana must pay its share of costs for the work program and budget allocated to the drilling of the Fatala well before September 2016;

 

ii.             Dana is not entitled to seek additional title assurances from the Guinea government as a precondition to its payment obligations;

 

iii.            If Dana refuses to pay, Tullow, and SCS to the extent SCS has paid any part of Dana’s share of well costs, is entitled to pursue collection actions against it pursuant to JOA Article 8; and

 

iv.            Dana’s actions are taken in bad faith and are a breach of its duties of good faith and fair dealing towards its partners in a joint operating agreement under Texas common law and the Texas Business and Commerce Code.

 

WHEREAS on January 8, 2016, SCS filed an arbitration before the American Arbitration Association, Case No: 01-16-0000-0679, styled SCS Corporation Ltd v. Tullow Guinea Ltd. and Dana Petroleum (E&P) Ltd. (the “Arbitration”) against Tullow and Dana seeking actual and punitive damages for breach of contract and breach of the duty of good faith and fair dealing, an injunction for specific performance of the JOA and declarations with respect to Tullow that:

 

i.              Tullow is in breach of its obligations under the JOA;

 

ii.             Tullow is required to carry out the work program and budget approved by the Operating Committee and do so in a time frame consistent with the obligations imposed by the JOA;

 

iii.            Tullow cannot refuse to perform its obligations due to the potential nonpayment by Dana; and

 

iv.            Tullow’s actions are taken in bad faith and are a breach of its duties of good faith and fair dealing towards its partners in a joint operating agreement under Texas common law and the Texas Business and Commerce Code,

 

and declarations with respect to Dana that:

 

i.              Dana must pay its share of costs for the work program and budget allocated to the drilling of the Fatala well before September 2016;

 

ii.             Dana is not entitled to seek additional title assurances from the Guinea government as a precondition to its payment obligations;

 

iii.            If Dana refuses to pay, Tullow, and SCS to the extent SCS has paid any part of Dana’s share of well costs, is entitled to pursue collection actions against it pursuant to JOA Article 8; and

 

2

 

iv.            Dana’s actions are taken in bad faith and are a breach of its duties of good faith and fair dealing towards its partners in a joint operating agreement under Texas common law and the Texas Business and Commerce Code.

 

WHEREAS on January 27, 2016, Tullow filed in the First Lawsuit a Motion to Dismiss for Insufficient Service, a Motion to Dismiss for Lack of Subject Matter Jurisdiction pursuant to Rule 12 (b)(1), and a Motion to Dismiss for Lack of Personal Jurisdiction pursuant to Rule 12(b)(2) and a Motion to Dismiss for Insufficient Service pursuant to Rule 12(b)(5). Dana filed a Motion to Dismiss pursuant to Rule 12(b)(1), for lack of subject-matter jurisdiction; Rule 12(b)(3) and 12(b)(6), for improper venue and for failure to state a claim; and Rule 12(b)(5), for insufficient service of process.

 

WHEREAS on January 28, 2016, SCS filed its Notice of Nonsuit without Prejudice dismissing the claims asserted against Tullow and Dana in the First Lawsuit without prejudice.

 

WHEREAS on January 28, 2016, SCS filed Cause No: 2016-05556, styled SCS Corporation Ltd. v. Tullow Guinea Ltd. and Dana Petroleum (E&P) Ltd. in the District Court of Harris County, Texas, 190th Judicial District (the “Second Lawsuit”). In the Second Lawsuit, SCS sought against Tullow an injunction for specific performance of the JOA and declarations that:

 

i.              Tullow is in breach of its obligations under the JOA;

 

ii.             Tullow is required to carry out the work program and budget approved by the Operating Committee and do so in a time frame consistent with the obligations imposed by the JOA;

 

iii.            Tullow cannot refuse to perform its obligations due to the potential non-payment by Dana; and

 

iv.            Tullow’s actions are taken in bad faith and are a breach of its duties of good faith and fair dealing towards its partners in a joint operating agreement under Texas common law and the Texas Business and Commerce Code,

 

and against Dana an injunction for specific performance of the JOA and declarations that:

 

i.              Dana must pay its share of costs for the work program and budget allocated to the drilling of the Fatala well before September 2016;

 

ii.             Dana is not entitled to seek additional title assurances from the Guinea government as a precondition to its payment obligations;

 

iii.            If Dana refuses to pay, Tullow, and SCS to the extent SCS has paid any part of Dana’s share of well costs, is entitled to pursue collection actions against it pursuant to JOA Article 8; and

 

3

 

iv.            Dana’s actions are taken in bad faith and are a breach of its duties of good faith and fair dealing towards its partners in a joint operating agreement under Texas common law and the Texas Business and Commerce Code.

 

WHEREAS on February 2, 2016, SCS requested the appointment of an Emergency Arbitrator in the Arbitration and Tullow and Dana contested the tribunal’s jurisdiction in the Arbitration.

 

WHEREAS on February 4, 2016, an Emergency Arbitrator was appointed.

 

WHEREAS on February 8, 2016, Tullow removed the Second Lawsuit to the United States District Court for the Southern District of Texas, Houston Division, Cause No: 4:16-cv-00330, SCS Corporation Ltd. v. Tullow Guinea Ltd. and Dana Petroleum (E&P) Ltd. and subsequently filed a Motion to Dismiss for Lack of Personal Jurisdiction pursuant to Rule 12 (b)(2), a Motion to Dismiss for Insufficient Service pursuant to Rule 12(b)(5), a Motion to Dismiss for Failure to State a Claim pursuant to Rule 12(b)(6) and a Motion to Compel Arbitration.

 

WHEREAS on February 10, 2016, an Emergency Arbitrator found he had jurisdiction and entered a temporary order enjoining SCS from seeking or pursuing district court—ordered discovery or other interim measures.

 

WHEREAS on February 11, 2016, Dana filed a Motion to Dismiss pursuant to Rules 12(b)(3) and 12(b)(6) for improper venue and failure to state a claim, and Rule 12(b)(5) for insufficient service and filed its Consent to the Removal of the Second Lawsuit.

 

WHEREAS on February 15, 2016, the Emergency Arbitrator conducted a telephonic hearing on Claimant’s Request for Interim Measures.

 

WHEREAS on February 17, 2016, an Emergency Arbitrator issued an Order Granting in Part, and Denying in Part, SCS’s Request for Interim Measures.

 

WHEREAS Tullow and Dana contest the material factual allegations in the Arbitration, the First Lawsuit and the Second Lawsuit (the First Lawsuit and Second Lawsuit hereinafter collectively referred to as the “Lawsuit”).

 

WHEREAS, the Parties, without any admission of any fact asserted in the Arbitration and/or Lawsuit and without the admission of any liability of any kind, desire to settle with finality, compromise, dispose of and release all claims as between and among the Parties, including, but not limited to, claims asserted by SCS against Tullow and/or Dana arising out of or in any way related to the Arbitration and/or Lawsuit.

 

NOW, THEREFORE, in consideration of the promises, mutual releases and agreements, covenants, and provisions contained in this Agreement, the receipt, sufficiency, and adequacy of which are expressly acknowledged by the Parties’ signatures affixed below, it is hereby agreed by and between the Parties that any and all claims shall be settled and compromised upon the following terms and conditions.

 

4

 

ARTICLE I

SETTLEMENT

 

In consideration of the mutual promises and mutual releases in this Agreement, the Parties agree as follows:

 

1.1          Consideration. The Consideration for this Agreement is as follows:

 

(a)           Tullow shall:

 

i.              execute the Notice of Withdrawal, in the form attached as Exhibit “A”;

 

ii.             execute the Storage Agreement, in the form attached as Exhibit “B”; and

 

iii.            pay to SCS a total of USD$ 3,000,000.00 as follows:

 

the sum of USD$ 686,570.86 to SCS via the following wire instructions:

 

SCS Corp

Amegy Bank

Houston, TX

Acct. #0030341029

ABA/Routing #113011258

 

and the sum of USD$2,313,429.14 to Dana in full and final settlement of SCS’ payment to Dana in 1.1(c)(iii) and 1.1(c)(iv) below via the following wire instructions:

 

Dana Petroleum (E&P) Limited

Bank of America N.A.

2 King Edward Street,

London, EC1A 1HQ

Branch Code 6008

Account Number 49438030

Swift Code BOFAGB22

IBAN GB61 BOFA 1650 5049 4380 30

 

((a)(i),(ii),and (iii) above together (the “Tullow Consideration”)).

 

(b)           Dana shall:

 

i.              execute the Notice of Withdrawal, in the form attached as Exhibit “A” (the “Dana Consideration”).

 

5

 

(c)           SCS shall:

 

i.              execute the Notice of Withdrawal, in the form attached as Exhibit “A;”;

 

ii.             execute the Storage Agreement, in the form attached as Exhibit “B”

 

iii.            Upon receipt by SCS of invoices (redacted to protect attorney-client privilege) issued to Dana from its counsel, reimburse Dana for legal costs incurred in respect of the Lawsuit and the Arbitration in the amount of USD $313,429.14 in accordance with the payment instructions at 1.1(a)(iii) above;

 

iv.            pay to Dana the sum of US$2,000,000.00 as reimbursement of Dana’s past costs paid towards Joint Property (as such term is defined in the JOA) via the payment instruction at 1.1(a)(iii) above;

 

v.             pay to Dana a success fee (the “Success Fee”) calculated as follows:

 

X = USD $100,000.00 (Y x Z) where,

 

X represents the amount of the success payment expressed in United States dollars;

 

Y represents the Gross MMBO P1 reserves from the Fatala prospect on the date on which P1 reserves are first booked in respect of the Fatala prospect (the “Success Payment Trigger Date”) as certified by the independent resources and reserves auditor appointed by SCS for SEC reporting purposes (or if SCS ceases to be an SEC reporting issuer, by the independent reserves auditor to be appointed by SCS as though it were an SEC reporting issuer); and

 

Z represents the percentage, expressed as a decimal, that equates to SCS’ participating interest in the JOA or (if the JOA is terminated for any reason) in the PSC or any successor licence awarded over the Fatala prospect, at the time

 

provided that such amount shall be at least equal to USD $50,000 per MMBO P1 reserves from the Fatala prospect calculated on a gross basis. Payment of the Success Fee shall be made within three (3) business days of the Success Payment Trigger Date. If the Success Fee is not paid within the specified time period, interest on such amount shall accrue to Dana at the rate of LIBOR + 3%.

 

6

 

vi.            within one (1) business day after execution of the Agreement, SCS shall take all necessary steps to file a Motion to Dismiss the Second Lawsuit with Prejudice, dismissing SCS’s claims against Tullow and Dana with prejudice; and

 

vii.           within one (1) business day after execution of the Agreement, SCS shall take all necessary steps to file a Notice of Dismissal of the Arbitration with Prejudice dismissing SCS’s claims against Tullow and Dana with prejudice.

 

((c)(i), (ii), (iii), (iv) (v) (vi) and (vii) above together (the “SCS Consideration”))

 

1.2          The Tullow Consideration, the Dana Consideration and the SCS Consideration are in full and complete consideration of the promises and agreements in this Agreement and the mutual releases in Article II.

 

ARTICLE II

RELEASES

 

In consideration of the Tullow Consideration, the Dana Consideration and the SCS Consideration, the mutual covenants of this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

2.1          Incorporation of Recitals. All of the facts set forth in the Recitals are true and correct and incorporated into this Agreement by reference.

 

2.2          Release of Claims. Except for the obligations contained in Article I of the Agreement, each Party (a “Releasing Party”), on behalf of itself and its parents, subsidiaries, directors, representatives, successors, assigns, agents, or employees, hereby fully, finally, completely and absolutely RELEASES, ACQUITS AND FOREVER DISCHARGES each of the other Parties (a “Released Party”) (including each of their affiliates and subsidiaries) and any and all related entities (collectively, the “Entities”), their parents, subsidiaries, directors, representatives, successors, assigns, agents, or employees of and from any and all past, present or future claims, demands, obligations, remedies, actions, causes of actions, choses in action, rights, debts, liabilities, contracts, damages, punitive damages, costs, expenses, losses, attorneys’ fees, costs of court, costs of arbitration, or compensation of any kind or nature whatsoever, whether known or unknown, direct or indirect, fixed or contingent, in law, by statute, by regulation, by court order, by arbitral tribunal order or in equity whether based in tort, contract, equity, or any other theory of recovery, that the Releasing Party and its parents, subsidiaries, directors, representatives, successors, assigns, agents, or employees, and all those at interest therewith, ever had, now has, or hereafter can, shall, or may have, that arise from or relate to the Arbitration, the Lawsuit, the JOA, the PSC, and/or any other agreements or understandings between/or among the Parties. Each Releasing Party hereby releases all claims including, but not limited to, causes of action for injunctive relief, specific performance, breach of contract, breach of the duty of good faith and fair dealing, declaratory relief, actual damages, punitive damages and any associated costs, attorneys’ fees, or interest, or any other claims asserted or available to it in the Arbitration and/or Lawsuit, or based on any pleadings filed in the Arbitration and/or Lawsuit.

 

7

 

2.3          Released Claims. The “Released Claims” are those claims released under Sections 2.2, above, but shall not include any claims based on any Party’s failure to comply with the terms of the Agreement.

 

2.4          Limitation on Releases. Notwithstanding the releases set forth in Section 2.2, above, nothing in this Agreement shall be read to prohibit or limit, in any way, any claims, demands, obligations, remedies, actions, causes of actions, choses in action, rights, debts, liabilities, contracts, damages, punitive damages, costs, expenses, losses, attorneys’ fees, costs of court, costs of arbitration, or compensation of any kind or nature whatsoever in relation to the Parties’ enforcement of this Agreement, the Notice of Withdrawal and the Storage Agreement.

 

ARTICLE III

ACKNOWLEDGMENTS, WARRANTIES AND REPRESENTATIONS

 

3.1          Assignment of Released Claims. Should it be determined by an arbitral tribunal and/or a court that any of the Released Claims are in fact not released by this Agreement, such claim is hereby assigned, transferred and conveyed to the Released Party.

 

3.2          Complete Bar and Defense. Except as limited by Section 2.4, the Parties agree that this Agreement may be pleaded as a complete bar and defense to any action or proceeding, past, present or future, which may be instituted or prosecuted by the Parties against one another, or any person claiming by, through or under one of the Parties (including any successor or assign of SCS) based upon any of the Released Claims, including those in connection with the Arbitration and/or Lawsuit.

 

3.3          Future Knowledge. The Parties acknowledge that they may hereafter discover facts different from, or in addition to, those that they now know or believe to be true with respect to the facts and circumstances giving rise to this Agreement. In that event, the Parties agree that this Agreement and the final, absolute and unconditional nature of the releases set forth in this Agreement shall be and remain effective and enforceable in all respects notwithstanding such different or additional facts, or the discovery thereof, regardless of when learned by any of the Parties.

 

3.4          Covenant Not to Sue. Except as provided for in Section 2.4 above, the Parties covenant and agree not to sue, prosecute or otherwise seek any relief, monetary or otherwise, from each other in any forum, whether state, federal, foreign, or arbitral, by motion or otherwise, on account of any claim or cause of action arising from or related directly to any Released Claims.

 

3.5          Ownership of Claims. By execution hereof, each Party represents, covenants, and warrants that it is the exclusive owner and holder of each and every Released Claim released herein, and that no Released Claim has previously been conveyed, assigned, or in any manner transferred, in whole or in part, to any third party.

 

3.6          Communications with the Government of Guinea. Tullow and Dana agree not have any communications with the Government of the Republic of Guinea regarding the matters contemplated by this Agreement or regarding the PSC or any extension thereof (“Government Communications”), until the earlier of: a) the announcement by SCS or its parent company of

 

8

 

the granting of an extension to the term of the PSC; or b) the termination of the PSC. (“Communication Deadline”), provided however, Tullow and/or Dana shall be permitted to engage in Government Communications prior to the Communication Deadline with the consent of SCS, which consent shall not be unreasonably withheld.

 

ARTICLE IV

MISCELLANEOUS PROVISIONS

 

4.1          Construction of Agreement. The Parties each acknowledge that they have participated in the negotiation of this Agreement and no provision shall be construed against or interpreted to the disadvantage of any Party by any arbitral tribunal, court or other governmental or judicial authority by reason of such Party having or being deemed to have structured, dictated or drafted such provision.

 

4.2          No Reliance on Any Representations Outside This Agreement. The Parties at all times have had access to an attorney in the negotiation of the terms of and in the preparation and execution of this Agreement and have had the opportunity to review and analyze this Agreement for a sufficient period of time prior to execution and delivery. No representations or warranties have been made by or on behalf of the Parties, or relied upon by them, pertaining to the subject matter of this Agreement, other than those specifically set forth in this Agreement. All prior statements, representations and warranties, if any, are totally superseded and merged into this Agreement, which represent the final and sole agreement between the Parties with respect to the subject matters set forth herein. All of the terms of this Agreement were negotiated at arm’s length, and this Agreement was prepared and executed without fraud, duress, undue influence or coercion of any kind exerted by the Parties upon any of the others. The execution and delivery of this Agreement is the free and voluntary act of the Parties.

 

4.3          Headings; Exhibits. The headings of the articles, sections and subsections of this Agreement are for the convenience of reference only, are not to be considered a part of this Agreement and shall not be used to construe, limit or otherwise affect this Agreement.

 

4.4          Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which will constitute the same agreement. Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more additional signature pages.

 

4.5          Governing Law. This Agreement and the rights and duties of the Parties hereunder shall be governed for all purposes by the laws of the State of Texas.

 

4.6          Dispute Resolution. Any dispute, controversy, or claim arising out of, relating to, or in connection with this Agreement, including with respect to the formation, applicability, breach, termination, invalidity or enforceability thereof, shall be finally settled by arbitration before the International Centre for Dispute Resolution based on the International Arbitration Rules of the International Centre for Dispute Resolution (the “Rules”). The Claimant shall nominate an arbitrator in its request for arbitration. The Respondent shall nominate an arbitrator

 

9

 

within 30 days of the receipt of the request for arbitration. The two arbitrators shall nominate a third arbitrator within 30 days after the nomination of the second arbitrator. The third arbitrator shall act as chair of the tribunal. If any of the three arbitrators is not nominated within the time prescribed above, the International Centre for Dispute Resolution shall, at the written request of any party, complete the appointments that have not been made. The arbitration shall be conducted in accordance with the Rules in effect at the time of the arbitration, except as they may be modified herein or by mutual agreement of the Parties. The seat of the arbitration shall be Houston, Texas, U.S.A. The arbitration shall be conducted in English. The arbitration award shall be final and binding on the Parties. The Parties undertake to carry out any award without delay and waive their right to any form of recourse based on grounds other than those contained in the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 insofar as such waiver can validly be made. Judgment upon the award may be entered by any court having jurisdiction thereof or having jurisdiction over the relevant party or its assets.

 

4.7          Execution. In order to expedite the action contemplated herein, telecopied, email, or other signatures sent by electronic means may be used in place of original signatures on this Agreement. The Parties each intend to be bound by the signatures on the telecopied, emailed, or otherwise electronically delivered document, are aware that the other Party will rely on the telecopied signatures, and hereby waive any defenses to the enforcement of the terms of this Agreement and Section 4.6 based on the form of signature. To the extent any Party transmits its signatures by facsimile transmission, the original signature shall promptly thereafter be delivered to the other Parties.

 

4.8          Confidentiality. The Parties agree that the negotiations of this Agreement, all the terms of this Agreement, and this Agreement itself are confidential. No Party may disclose the substance or contents of this Agreement to any third party except: (1) to the extent necessary to comply with the applicable laws, rules or regulations of any government, legal proceedings, regulatory or stock exchange having jurisdiction over such Party or its Affiliates; (2) for tax related purposes; (3) to enforce rights under this Agreement; or (4) if mutually agreed by Tullow, Dana and SCS in advance and in writing, consent not to be unreasonably withheld. If any third party seeks or attempts to obtain any information related to this Agreement, the Parties will notify each other, in writing, before any response, hearing, trial, or other formal action is taken.

 

4.9          No Admission. It is understood and agreed that no Party to this Agreement admits any liability to any other Party, but to the contrary, expressly denies the same. This Agreement is entered to resolve, settle and compromise the matters in dispute between the Parties and avoid the cost, expense and effort of protracted and disputed Arbitration and/or Lawsuit.

 

4.10        Entire Agreement. This Agreement, including any exhibit, embodies the entire agreement between the Parties, supersedes all prior agreements and understandings, if any, relating to the subject matter hereof, and may be amended only by an instrument in writing executed jointly by the Parties.

 

4.11        No Oral Modifications. This Agreement may not be modified in any manner, nor may any rights provided for herein be waived, except by an instrument in writing signed by

 

10

 

the Party to be charged in such modification or waiver. The Parties further agree that there are no oral agreements among them that vary the terms of this Agreement.

 

4.12        Further Assurances. The Parties agree to cooperate in talking any and all steps necessary to give full force and effect to this Agreement, and to execute any and all additional documents necessary to effectuate the terms and conditions of this Agreement.

 

4.13        Savings Provision. If any term, condition or covenant contained in this Agreement is for any reason found null, void or otherwise unenforceable, that portion of the Agreement shall be treated as severed and the remainder of the Agreement will remain in full force and effect as if the severed portion were never contained herein. However, this paragraph does not apply to any material term, condition or covenant that forms all or part of the consideration supporting this Agreement.

 

4.14        Conflicting Provisions. In the event of any conflict between any provision of this Agreement and any Exhibit hereto, the body of this Agreement shall control.

 

4.15        Payment of Costs and Expenses. Except as expressly set forth in this Agreement, each Party shall bear and pay the respective fees, costs and expenses incurred by it in connection with the Arbitration and the Lawsuit, and/or any other agreements or understandings between/or among the Parties including this Agreement

 

[SIGNATURE PAGES FOLLOW]

 

11

 

[SIGNATURE PAGE TO SETTLEMENT AGREEMENT]

 

	
 
    	
SCS   Corporation Ltd.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Ray Leonard
    
	
 
    	
By: Ray Leonard
    
	
 
    	
Its: Director
    

 

	
STATE OF England
    	
§
    	
 
    
	
 
    	
§
    	
 
    
	
COUNTY OF London
    	
§
    	
 
    

 

Before me, the undersigned authority, on this day personally appeared RAY LEONARD, who acknowledged to me that he executed the foregoing Agreement in the capacity stated and for the purposes and consideration stated therein.

 

ACKNOWLEDGED, SUBSCRIBED, AND SWORN TO before me, the undersigned notary public, on this 15 day of August, 2016, to certify which witness my hand and official seal.

 

	
 
    	
 
    	
J. A. Fisher
    
	
 
    	
 
    	
Notary Public,   State of England
    
	
 
    	
 
    	
 
    
	
My Commission   Expires:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[ILLEGIBLE]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
John Albert   Fisher
    
	
 
    	
 
    	
[Notary’s Typed   or Printed Name]
    

 

 

12

 

[SIGNATURE PAGE TO SETTLEMENT AGREEMENT]

 

	
 
    	
Tullow   Guinea Ltd.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Kevin. M.   Massie
    
	
 
    	
By: Kevin. M.   Massie
    
	
 
    	
Its: Director
    

 

Before me, the undersigned authority, on this day personally appeared KEVIN MICHAEL MASSIE, who acknowledged to me that he executed the foregoing Agreement in the capacity stated and for the purposes and consideration stated therein.

 

ACKNOWLEDGED, SUBSCRIBED, AND SWORN TO before me, the undersigned notary public, on this 15 day of August , 2016 to certify which witness my hand and official seal.

 

 

	
 
    	
 
    	
J. A. Fisher
    
	
 
    	
 
    	
Notary Public in   and for London
    
	
 
    	
 
    	
 
    
	
My Commission   Expires:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[ILLEGIBLE]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
John Albert   Fisher
    
	
 
    	
 
    	
[Notary’s Typed   or Printed Name]
    

 

 

 

13

 

[SIGNATURE PAGE TO SETTLEMENT AGREEMENT]

 

	
 
    	
Dana   Petroleum (E&P) Limited
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ David   Crawford
    
	
 
    	
By: David   Crawford
    
	
 
    	
Director
    

 

Witnessed by: STEWART CUNNINGHAM, Solicitor and Notary Public at Aberdeen on 15th August 2016

 

 

	
 
    	
[ILLEGIBLE]
    
	
 
    	
Signature
    

 

 

Notary stamp:

 

 

14

 

[EXHIBIT “A” to SETTLEMENT AGREEMENT]

 

NOTICE OF WITHDRAWAL

 

WHEREAS SCS Corporation Ltd. (“SCS”), Tullow Guinea Ltd (“Tullow”), Dana Petroleum (E&P) Limited (“Dana”) (SCS, Tullow and Dana are collectively referred to as the “Parties”) are parties to a joint operating agreement dated 28 January 2010, as amended from time to time (the “JOA”);

 

WHEREAS certain disputes have arisen among the Parties which are described in detail in the settlement and release agreement among the Parties dated 15 August 2016 (the “Settlement Agreement”);

 

WHEREAS on 15 July 2016 the Parties held a meeting of the Operating Committee where a proposal to apply for an extension to the current exploration period of the PSC (the “Proposed Extension”) was considered and was not approved by the requisite majority vote;

 

WHEREAS SCS advised of its intention to proceed with an application for the Proposed Extension pursuant to Article 11.2(B) of the JOA;

 

WHEREAS resulting from SCS’ application for the Proposed Extension, Tullow and Dana (collectively the “Withdrawing Parties”) are entitled to withdraw from the JOA and the PSC; and

 

WHEREAS the Parties have agreed, in accordance with the terms of the Settlement Agreement that the Withdrawing Parties shall withdraw from the JOA with immediate effect,

 

NOW THEREFORE, in consideration of the mutual promises, releases and agreements contained in this Notice and the Settlement Agreement, the receipt and sufficiency of which are expressly acknowledged by the Parties’ signatures affixed below, the Parties agree as follows:

 

1.              Capitalised terms used but not otherwise defined in this Notice shall have the meaning given to such terms in the JOA or the Settlement Agreement as applicable.

 

2.              The Withdrawing Parties hereby withdraw from the JOA and the PSC with immediate effect and accordingly relinquish, release, abandon and transfer to SCS all right, title, claim and interest in and to the JOA, the PSC and all Joint Property including the Long Lead Items as further described in a Storage Agreement entered into between Tullow and SCS on 15 August 2016.

 

3.              SCS hereby releases each of Tullow and Dana from any obligations, costs, expenses and liabilities howsoever arising in connection with the JOA, the PSC and/or any Joint Property from and after the date of this Notice.

 

4.              Upon execution of this Notice by the Parties, the Participating Interests of the Parties as at the date of this Notice shall be:

 

a.              Hyperdynamics – 100%

b.              Tullow – 0%

c.               Dana – 0%

 

and, from and after the execution of this Notice the JOA shall terminate with respect to Tullow and Dana.

 

 

10.       This Notice shall be construed and interpreted in accordance with the laws of the State of Texas, USA and any disputes among the Parties howsoever arising under this Notice shall be adjudicated in accordance with Article 4.6 of the Settlement Agreement as in effect on the date of this Notice.

 

Agreed and Accepted:

 

	
 
    	
SCS   Corporation Ltd.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Ray Leonard
    
	
 
    	
By: Ray Leonard
    
	
 
    	
Position:   Director
    
	
 
    	
 
    
	
 
    	
Tullow   Guinea Ltd.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Kevin M. Massie
    
	
 
    	
By: Kevin M.   Massie
    
	
 
    	
Position:   Director
    
	
 
    	
 
    
	
 
    	
Dana   Petroleum (E&P) Limited
    
	
 
    	
 
    
	
 
    	
/s/ David Crawford
    
	
 
    	
By: David   Crawford
    
	
 
    	
Position: CFO
    

 

 

[EXHIBIT “B” to SETTLEMENT AGREEMENT]

 

STORAGE AGREEMENT

 

This Storage Agreement is made as of the 15th day of August, 2016 (the “Effective Date”), regardless of when it is executed, by and between SCS Corporation Ltd. (“SCS”) and Tullow Guinea Ltd. (“Tullow”).

 

1.                                      Tullow shall provide storage-only services for the items listed on Appendix A (the “Long Lead Items”) up to the date of the expiration of the existing customs deed, to wit: 5 May 2017 (the “Storage Period”).

 

2.                                      Tullow makes no representations regarding the condition of the Long Lead Items and SCS accepts the Long Lead Items on an “as is/where is” basis.

 

3.                                      Tullow shall not be responsible for any loss of the Long Lead Items and/or any deterioration of the condition of the Long Lead Items during the Storage Period, such responsibility shall be solely SCS’s.

 

4.                                      During the Storage Period, Tullow shall provide SCS and its contracted service providers, agents and advisors with access (including equipment and materials access where reasonably required) to the storage facility (open storage yards and warehouses) used for the provision of the storage services contemplated herein, upon request (with reasonable notice) by SCS.

 

5.                                      Upon request by SCS, Tullow shall furnish all existing customs documentation in Ghana relating to the Long Lead Items and shall provide reasonable assistance to SCS in arranging customs clearance for the removal of goods from Ghana.

 

6.                                      Tullow shall provide all mill certifications and third party inspection reports relating to the Long Lead Items that are in Tullow’s possession as at the Effective Date and which may be obtained during the Storage Period.

 

7.                                      On or before 5 May 2017, SCS shall remove the Long Lead Items from storage and shall bear any and all costs associated with the removal of the Long Lead Items from the storage facilities.

 

8.                                      Should SCS fail to remove the Long Lead Items on or before 5 May 2017, Tullow is authorized to dispose of the Long Lead Items and has the complete discretion to determine how and in what manner the disposal of the Long Lead Items is conducted.

 

 

9.                                      In the event Tullow disposes of the Long Lead Items due to SCS’s failure to remove the Long Lead Items, Tullow shall be entitled to deduct the cost of disposal from the proceeds, if any, of the disposal, and, after the deduction of these costs, Tullow shall pay to SCS any remaining proceeds.

 

Agreed and Accepted:

 

	
 
    	
SCS Corporation Ltd.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Ray Leonard
    
	
 
    	
By: Ray Leonard
    
	
 
    	
Its: Director
    
	
 
    	
 
    
	
 
    	
Tullow   Guinea Ltd.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Kevin M.   Massie
    
	
 
    	
By: Kevin M.   Massie
    
	
 
    	
Its: Director

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