Document:

Exhibit 10.4

 

 

 

 

 

 

 

 

WARRANT

 

To
Purchase Common Stock of

BLACK RIDGE OIL & GAS, INC. 

Dated August 8, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

  

TABLE OF
CONTENTS

 

	 	 	Page
	SECTION 1.	Term; Exercise of Warrant	1
	1.1	Time of Exercise	1
	1.2	Manner of Exercise	1
	1.3	Cashless Exercise	2
	1.4	Market Price	3
	1.5	Exchange of Warrant	3
	 	 	 
	SECTION 2.	Adjustment of Exercise Price and Number of Warrant Shares Purchasable upon Exercise	3
	2.1	Stock Dividends, Subdivisions and Combinations	3
	2.2	Recapitalization or Reclassification	4
	2.3	Distributions	4
	2.4	Preemptive Right	5
	2.5	Notice	5
	 	 	 
	SECTION 3.	Restrictions on Transfer; Legends	6
	3.1	Registration or Exemption Required	6
	3.2	Restrictive Legend	6
	3.3	Removal of Restrictive Legends	6
	3.4	Required Registration	7
	3.5	Piggyback Registration	7
	3.6	Registration Procedures	8
	3.7	Expenses	9
	3.8	Indemnification and Contribution	9
	3.9	Listing on Securities Exchange	10
	 	 	 
	SECTION 4.	Representations, Warranties and Covenants of the Company	11
	4.1	Representations and Warranties	11
	4.2	Covenants of the Company	11
	 	 	 
	SECTION 5.	Representations and Warranties of the Holder	13
	5.1	Acquisition of Warrant for Personal Account	13
	5.2	Rule 144	13
	5.3	Accredited Investor	13
	5.4	Opportunity To Discuss; Information	13
	 	 	 
	SECTION 6.	Other Matters	13
	6.1	Binding Effect	13
	6.2	Notices	13
	6.3	Governing Law; Consent to Jurisdiction; Waiver of Jury Trial	14
	6.4	Parties Bound and Benefited	14
	6.5	Confidentiality	14
	6.6	Identity of Transfer Agent	14
	6.7	Amendment; Waiver	14
	6.8	Assignment	14
	6.9	Holder as Owner	15
	6.10	Rights of Holder	15
	6.11	Indemnification	15
	6.12	Remedies	15
	6.13	Lost Certificates	15
	6.14	Severability	15
	6.15	Nonwaiver and Expenses	15
	6.16	Office of the Company; Maintenance of Books	16
	6.17	Section Headings	16

 

Appendix A-Exercise
of Warrant

Appendix
B-Warrant Assignment Form

Appendix
C-Net Issue Election Notice

 

    	i

    	 

    

 

THIS SECURITY
HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE OFFERED OR SOLD UNLESS (I) REGISTERED AND QUALIFIED PURSUANT TO THE APPLICABLE PROVISIONS OF FEDERAL AND STATE SECURITIES
LAWS, (II) THIS SECURITY MAY BE SOLD PURSUANT TO RULE 144 OF THE ACT OR (III) UNLESS AN EXEMPTION FROM SUCH REGISTRATION OR QUALIFICATION
APPLIES.  THEREFORE, NO SALE OR TRANSFER OF THIS SECURITY SHALL BE MADE, NO ATTEMPTED SALE OR TRANSFER SHALL BE VALID,
AND THE ISSUER SHALL NOT BE REQUIRED TO GIVE ANY EFFECT TO ANY SUCH TRANSACTION UNLESS (A) SUCH TRANSACTION HAS BEEN DULY REGISTERED
UNDER THE ACT AND QUALIFIED OR APPROVED UNDER APPROPRIATE STATE SECURITIES LAWS, (B) THE SECURITY MAY BE SOLD PURSUANT TO RULE
144 OF THE ACT OR (C) THE ISSUER HAS FIRST RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH REGISTRATION,
QUALIFICATION OR APPROVAL IS NOT REQUIRED.

 

	No. of Shares of Common Stock:  545,514.5119	Warrant No. 2

 

WARRANT

 

To Purchase
Common Stock of

 

BLACK
RIDGE OIL & GAS, INC.

 

THIS
IS TO CERTIFY, that, for value received, Chambers Energy Capital II TE, LP, a Delaware limited partnership, or its successors
or registered assigns (the “Holder”), is entitled, subject to the terms and conditions hereinafter set forth,
to purchase 545,514.5119 shares (the “Warrant Shares”) of Common Stock, par value $0.001 (the “Common
Stock”), of Black Ridge Oil & Gas, Inc., a Delaware corporation (the “Company”), from the Company
(the “Warrant”) at an exercise price per share equal to $0.65 at the Issue Date (the exercise price in effect
being herein called the “Exercise Price”).  The number of Warrant Shares purchasable upon exercise
of this Warrant and the Exercise Price shall be subject to adjustment from time to time as described herein. For the avoidance
of doubt, the parties hereto agree that for U.S. federal income tax purposes, the value of this Warrant on the date of issuance
is equal to $269,874.42.

 

SECTION
1.   Term; Exercise of Warrant.

 

1.1             
Time of Exercise.  This Warrant may be exercised at any time and from time to time during the period
commencing as of 9:00 a.m., Central Time, on August 8, 2013 (the “Issue Date”) and ending as of 5:00 p.m., Central
Time, on August 8, 2018, at which time this Warrant shall become void and all rights hereunder shall cease.

 

1.2             
Manner of Exercise.

 

1.2.1        
The Holder may exercise this Warrant, in whole or in part, upon surrender of this Warrant, with the duly executed exercise
notice, in the form attached hereto as Appendix B, to the Company at its corporate office in Minnetonka, Minnesota, and
upon payment to the Company of the Exercise Price for each Warrant Share to be purchased in lawful money of the United States,
or by certified or cashier’s check, or wired funds or by cashless exercise as provided in Section 1.3 below.

 

    	1

    	 

    

 

1.2.2        
Upon receipt of this Warrant with the duly executed exercise notice and accompanied by payment of the aggregate Exercise
Price for the Warrant Shares for which this Warrant is then being exercised (unless this Warrant is being exercised on a cashless
basis as provided in Section 1.3 below), the Company shall cause to be issued and delivered to the Holder, certificates
for the total number of whole Warrant Shares for which this Warrant is being exercised in such denominations as are required for
delivery to the Holder.  

 

1.2.3        
In case the Holder shall exercise this Warrant with respect to less than all of the Warrant Shares that may be purchased
under this Warrant, the Company shall execute a new Warrant for the balance of the Warrant Shares that may be purchased upon exercise
of this Warrant and deliver such new Warrant to the Holder.

 

1.2.4        
The Company covenants and agrees that it will pay when due and payable any and all taxes which may be payable in respect
of the issue of this Warrant, or the issue of any Warrant Shares upon the exercise of this Warrant.  The Company shall
not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issuance or delivery of
this Warrant or of the Warrant Shares in a name other than that of the Holder at the time of surrender, and until the payment of
such tax the Company shall not be required to issue such Warrant Shares.

 

1.3             
Cashless Exercise.  Notwithstanding any other provision contained herein to the contrary, the Holder
may elect to receive, without the payment by the Holder of the aggregate Exercise Price in respect of the shares of Common Stock
to be acquired, shares of Common Stock of equal value to the value of this Warrant, or any specified portion hereof, by the surrender
of this Warrant (or such portion of this Warrant being so exercised) together with a Net Issue Election Notice, in the form annexed
hereto as Appendix C, duly executed, to the Company.  Thereupon, the Company shall issue to the Holder such number
of fully paid, validly issued and nonassessable shares of Common Stock as is computed using the following formula:

 

X = Y
(A - B)

A

 

where

 

X
=           the number of shares of Common Stock to which the Holder is
entitled upon such cashless exercise;

 

Y
=           the total number of shares of Common Stock covered by this Warrant
for which the Holder has surrendered purchase rights at such time for cashless exercise (including both shares to be issued to
the Holder and shares as to which the purchase rights are to be canceled as payment therefor);

 

A
=          the Market Price of one share of Common Stock as at the date the net
issue election is made; and

 

B
=           the Exercise Price in effect under this Warrant at the time
the net issue election is made.

 

    	2

    	 

    

 

1.4             
 Market Price. “Market Price” shall mean, on any given day: (A) if the class
of Warrant Shares is exchange-traded, the average of the closing sales prices per share of the class of Warrant Shares for the
ten consecutive trading days ending on the day that is two trading days prior to the applicable date of determination of Market
Price; or (B) if the class of Warrant Shares is not listed or admitted to trading on any securities exchange but is regularly
traded in any over-the-counter market, then the average of the bid and ask prices per share of the class of Warrant Shares for
the ten consecutive trading days ending on the day that is two trading days prior to the applicable date of determination of Market
Price; or (C) if the class of Warrant Shares is not traded as described in clauses (A) or (B), then the per share market
price of the class of Warrant Shares as determined in good faith by the Company’s board of directors (the “Board
of Directors”).

 

1.5             
Exchange of Warrant.  Upon the request of the Holder, this Warrant may be divided into, combined
with or exchanged for another warrant or warrants of like tenor (collectively, the “Warrants”) to purchase
a like aggregate number of Warrant Shares.  If the Holder desires to divide, combine or exchange this Warrant, the Holder
shall make such request in writing delivered to the Company at its corporate office and shall surrender this Warrant and any other
Warrants to be so divided, combined or exchanged.  The Company shall execute and deliver to the person entitled thereto
a Warrant or Warrants, as the case may be, as so requested.  The Company shall not be required to effect any division,
combination or exchange which will result in the issuance of a Warrant entitling the Holder to purchase upon exercise a fraction
of a Warrant Share. As to any fraction of a share which a Holder of one or more Warrants, the rights under which are exercised
in the same transaction, would otherwise be entitled to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to the same fraction of the Market Price per share of Common Stock on the date
of exercise. The Company shall prepare, issue and deliver at its own expense the new Warrant or Warrants under this Section
1.

 

SECTION
2.   Adjustment of Exercise Price and Number
of Warrant Shares Purchasable upon Exercise.

 

Subject
and pursuant to the provisions of this Section 2, the Exercise Price and the number of Warrant Shares subject to this Warrant
shall be subject to adjustment from time to time as set forth hereinafter.

 

2.1             
Stock Dividends, Subdivisions and Combinations.  If the Company shall, at any time or from time
to time while this Warrant is outstanding, pay a dividend or make a distribution on its Common Stock in shares of Common Stock,
subdivide its outstanding shares of Common Stock into a greater number of shares or combine its outstanding shares of Common Stock
into a smaller number of shares or issue by reclassification of its outstanding shares of Common Stock any shares of its capital
stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing
corporation), then (A) the Exercise Price in effect immediately prior to the date on which such change shall become effective shall
be adjusted by multiplying such Exercise Price by a fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to such change and the denominator of which shall be the number of shares of Common Stock outstanding
immediately after giving effect to such change and (B) the number of Warrant Shares purchasable upon exercise of this Warrant shall
be adjusted by multiplying the number of Warrant Shares purchasable upon exercise of this Warrant immediately prior to the date
on which such change shall become effective by a fraction, the numerator of which shall be the Exercise Price in effect immediately
prior to the date on which such change shall become effective and the denominator of which shall be the Exercise Price in effect
immediately after giving effect to such change, calculated in accordance with clause (i) above.  Such adjustments shall
be made successively whenever any event listed above shall occur.

 

    	3

    	 

    

 

2.2             
Recapitalization or Reclassification.  If any capital reorganization, reclassification of the capital
stock of the Company, consolidation or merger of the Company with another corporation in which the Company is not the survivor,
or sale, transfer or other disposition of all or substantially all of the Company’s assets to another corporation shall be
effected, then, as a condition of such reorganization, reclassification, consolidation, merger, sale, transfer or other disposition,
lawful and adequate provision shall be made whereby each Holder shall thereafter have the right to purchase and receive upon the
basis and upon the terms and conditions herein specified and in lieu of the Warrant Shares immediately theretofore issuable upon
exercise of the Warrant, such shares of stock, securities or assets as would have been issuable or payable with respect to or in
exchange for a number of Warrant Shares equal to the number of Warrant Shares immediately theretofore issuable upon exercise of
the Warrant, had such reorganization, reclassification, consolidation, merger, sale, transfer or other disposition not taken place,
and in any such case appropriate provision shall be made with respect to the rights and interests of the Holder to the end that
the provisions hereof (including, without limitation, provision for adjustment of the Exercise Price) shall thereafter be applicable,
as nearly equivalent as may be practicable in relation to any shares of stock, securities or assets thereafter deliverable upon
the exercise hereof.  The Company shall not effect any such consolidation, merger, sale, transfer or other disposition
unless prior to or simultaneously with the consummation thereof the successor corporation (if other than the Company) resulting
from such consolidation or merger, or the corporation purchasing or otherwise acquiring such assets or other appropriate corporation
or entity shall assume the obligation to deliver to the Holder, at the last address of the Holder appearing on the books of the
Company, upon the proper exercise of this Warrant by the Holder, such shares of stock, securities or assets as, in accordance with
the foregoing provisions, the Holder may be entitled to purchase, and the other obligations under this Warrant.  The
provisions of this Section 2.2 shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers,
sales, transfers or other dispositions.

 

2.3             
Distributions.  In case the Company shall fix a payment date for the making of a distribution to
all holders of Common Stock (including any such distribution made in connection with a consolidation or merger in which the Company
is the continuing corporation) of evidences of indebtedness or assets (other than dividends or distributions referred to in Section
2.1), or subscription rights or warrants, the Exercise Price to be in effect after such payment date shall be determined by
multiplying the Exercise Price in effect immediately prior to such payment date by a fraction, the numerator of which shall be
the total number of shares of Common Stock outstanding multiplied by the Market Price per share of Common Stock immediately prior
to such payment date, less the fair market value (as determined by the Board of Directors in good faith) of said assets or evidences
of indebtedness so distributed, or of such subscription rights or warrants, and the denominator of which shall be the total number
of shares of Common Stock outstanding multiplied by such Market Price per share of Common Stock immediately prior to such payment
date.

 

    	4

    	 

    

 

2.4             
Preemptive Right. If at any time the Company proposes to grant, issue or sell (collectively, to “issue”)
any shares of Common Stock, options, warrants or other subscription or purchase rights, securities which are convertible into shares
of Common Stock, or rights to purchase stock, warrants or securities which are convertible into shares of Common Stock, including
pursuant to the exercise of any warrant, option or other right to purchase (collectively, “Offered Securities”),
the Company shall give notice to the Holder, stating (i) its bona fide intention to issue such Offered Securities, (ii) the number
of such Offered Securities to be issued, and (iii) the price and terms upon which it proposes to issue such Offered Securities.
By notification to the Company within 15 days after such notice is given, the Holder may elect to purchase or otherwise acquire,
at the price and on the terms specified in the notice, up to that portion of Offered Securities which equals the proportion that
the shares of Common Stock issued and held, including the number of Warrant Shares immediately theretofore issuable upon exercise
of the Warrant, by the Holder bears to the total shares of Common Stock then outstanding. Anything herein to the contrary notwithstanding,
the Holder shall not be entitled to purchase or acquire any Offered Securities granted or issued to any director or officer of
the Company pursuant to any stock incentive plan of the Company.

 

2.5             
Notice.

 

2.5.1        
If at any time (A) the Company shall take a record of the holders of its Common Stock for the purpose of entitling them
to receive a dividend (other than a cash dividend payable out of earnings or earned surplus legally available for the payment of
dividends under the laws of the jurisdiction of incorporation of the Company) or other distribution, or any right to subscribe
for or purchase any evidences of its indebtedness, any shares of stock of any class or any other securities or property, or to
receive any other right, (B) there shall be any capital reorganization of the Company, any reclassification or recapitalization
of the capital stock of the Company or any consolidation or merger of the Company with, or any sale, transfer or other disposition
of all or substantially all the property, assets or business of the Company to, another corporation, or (C) there shall be a voluntary
or involuntary dissolution, liquidation or winding up of the Company; then, in any one or more of such cases, the Company shall
give to Holder at least 30 days’ prior written notice of the date on which a record date shall be selected for such dividend,
distribution or right or for determining rights to vote in respect of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, and, in the case of any such reorganization, reclassification,
merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up, at least 30 days’ prior written
notice of the date when the same shall take place. Such notice in accordance with the foregoing clause also shall specify (Y) the
date on which any such record is to be taken for the purpose of such dividend, distribution or right, the date on which the holders
of Common Stock shall be entitled to any such dividend, distribution or right, and the amount and character thereof, and (Z) the
date on which any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation
or winding up is to take place and the time, if any such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other property deliverable upon such reorganization, reclassification,
merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up. Each such written notice shall be sufficiently
given if addressed to the Holder at the last address of the Holder appearing on the books of the Company and delivered in accordance
with Section 6.2.

 

    	5

    	 

    

 

2.5.2        
The Holder shall be entitled to the same rights to receive notice of corporate action as any holder of Common Stock.

 

SECTION
3.   Restrictions on Transfer; Legends.

 

3.1             
Registration or Exemption Required. Assuming the accuracy of the representations and warranties of the Holder
in Section 5, this Warrant has been issued in a transaction exempt from the registration requirements of the Securities
Act of 1933, as amended (the “Act”), by virtue of Regulation D and exempt from state registration or qualification
under applicable state laws. Neither this Warrant nor the Warrant Shares may be pledged, transferred, sold or assigned except pursuant
to an effective registration statement or an exemption to the registration requirements of the Act and applicable state laws. If,
at the time of the surrender of this Warrant in connection with any transfer of this Warrant, or upon surrender of the Warrant
Shares for transfer, the transfer of this Warrant, or where applicable the Warrant Shares, shall not be registered pursuant to
an effective registration statement under the Act and under applicable state securities or blue sky laws, the Company may require,
as a condition of allowing such transfer (i) that the Holder or transferee of this Warrant or the Warrant Shares, as the case may
be, furnish to the Company a written opinion of counsel (which opinion shall be in form, substance and scope customary for opinions
of counsel in comparable transactions) to the effect that such transfer may be made without registration under the Act and under
applicable state securities or blue sky laws, (ii) that the holder or transferee execute and deliver to the Company an investment
letter in form and substance acceptable to the Company and (iii) that the transferee be an “accredited investor” as
defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated under the Act or a “qualified institutional buyer”
as defined in Rule 144A(a) under the Act in a transaction pursuant to Rule 144A.

 

3.2             
Restrictive Legend. The Holder understands that until such time as the Warrant Shares have been registered
under the Act, or otherwise may be sold pursuant to Rule 144 under the Act or an exemption from registration under the Act without
any restriction as to the number of securities as of a particular date that can then be immediately sold, this Warrant and the
Warrant Shares, as applicable, shall bear a restrictive legend in substantially the form set forth on the cover page of this Warrant
(and a stop-transfer order may be placed against transfer of the certificates for such securities).

 

3.3             
Removal of Restrictive Legends. The certificates evidencing the Warrant Shares shall not contain any legend
restricting the transfer thereof: (A) while a registration statement covering the sale or resale of the Warrant Shares is effective
under the Act, or (B) following any sale of such Warrant Shares pursuant to Rule 144, or (C) if such Warrant Shares are eligible
for sale under Rule 144(b)(1), or (D) if such legend is not required under applicable requirements of the Act (including judicial
interpretations and pronouncements issued by the staff of the Securities and Exchange Commission (the “Commission”))
and the Company shall have received an opinion of counsel to the Holder in form reasonably acceptable to the Company to such effect
(collectively, the “Unrestricted Conditions”). The Company shall cause its counsel to issue a legal opinion
to its transfer agent if required by the transfer agent to effect the issuance of the Warrant Shares, as applicable, without a
restrictive legend or removal of the legend hereunder. The Company agrees that at such time as the Unrestricted Conditions are
met, it will, no later than seven (7) trading days following the delivery by the Holder to the Company or the transfer agent of
a certificate representing Warrant Shares, issued with a restrictive legend, deliver or cause to be delivered to such Holder a
certificate (or electronic transfer) representing such Warrant Shares that is free from all restrictive and other legends.

 

    	6

    	 

    

 

3.4             
Required Registration. At any time after the third anniversary of the Issue Date, Holder and any holder of
Warrant Shares issuable upon exercise of this Warrant may make a written request of the Company (a “Demand Request”)
to register the offer and resale of the Warrant Shares issuable or issued upon exercise of this Warrant. The Company shall promptly
notify all holders of Warrants and Warrant Shares in writing of the receipt of such request and each such holder, in lieu of exercising
its rights under Section 3.5, may elect (by written notice sent to the Company within 10 business days from the date of
such holder's receipt of the aforementioned Company's notice) to have its Warrant Shares included in such registration thereof
pursuant to this Section 3.4. Thereupon the Company shall (i) as expeditiously as is possible but in any event within 60
days after receipt of a Demand Request, the Company shall file a registration statement (a “Shelf Registration Statement”)
for the registration of the offer and sale of the Warrant Shares by the holders thereof from time to time pursuant to Rule 415
under the Act and (ii) use its commercially reasonable efforts to cause any such Shelf Registration Statement to be declared effective
by the Commission as promptly as practicable after such filing but in any event not later than 120 days following the date of the
applicable Demand Request. Upon the effectiveness under the Act of the Shelf Registration Statement, the Company will use all commercially
reasonable efforts to cause the Shelf Registration Statement to remain effective, and supplemented and amended as required by throughout
period ending on the date one year after the date on which such Shelf Registration Statement becomes effective with respect to
the offer and sale of Warrant Shares.

 

3.5             
Piggyback Registration. If the Company at any time determines to prepare and file on its behalf or on behalf
of any of its security holders (the “demanding security holders”) a registration statement under the Act on
any form (other than a registration statement on Form S-4 or S-8 or any successor form for securities to be offered in a transaction
of the type referred to in Rule 145 under the Act or to employees of the Company pursuant to any employee benefit plan, respectively)
for the general registration of securities to be sold to the public for cash with respect to its Common Stock or any other class
of equity security (as defined in Section 3(a)(11) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”))
of the Company, it will give written notice to the Holder at least 45 days before the initial filing with the Commission of such
registration statement, which notice shall set forth the intended method of disposition of the securities proposed to be registered
by the Company. The notice shall offer to include in such filing the aggregate number of shares of Common Stock, and the number
of Warrants Shares, as the Holder may request.

 

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If
the Holder desires to have Warrant Shares registered under this Section 3.5, it shall advise the Company in writing within
30 days after the date of receipt of such offer from the Company, setting forth the amount of Warrant Shares for which registration
is requested. The Company shall thereupon include in such filing the number of Warrant Shares for which registration is so requested,
subject to the next sentence, and shall use its commercially reasonable efforts to effect registration under the Act of the offer
and sale of such shares. If the managing underwriter of a proposed public offering shall advise the Company in writing that, in
its opinion, the distribution of the Warrant Shares requested to be included in the registration concurrently with the securities
being registered by the Company or the demanding security holders would materially and adversely affect the distribution of such
securities by the Company or the demanding security holder or holders, then all selling security holders shall reduce the amount
of securities each intended to distribute through such offering on a pro rata basis. All expenses of such registration shall be
borne by the Company.

 

3.6             
Registration Procedures. If the Company determines to effect the registration of the offer and sale of any
of its securities under the Act, the Company will, as expeditiously as possible:

 

(A)             
prepare and file with the Commission a registration statement with respect to such securities and use its commercially reasonable
efforts to cause such registration statement to become and remain effective for a period of time required for the disposition of
such securities by the holders thereof;

 

(B)              
prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used
in connection therewith as may be necessary to keep such registration statement effective and to comply with the provisions of
the Act with respect to the sale or other disposition of all securities covered by such registration statement until the earlier
of such time as all of such securities have been disposed of in a public offering or the expiration of 180 days;

 

(C)              
furnish to such selling security holders such number of copies of a summary prospectus or other prospectus, including a
preliminary prospectus, in conformity with the requirements of the Act, and such other documents, as such selling security holders
may reasonably request;

 

(D)             
use its commercially reasonable efforts to register or qualify the securities covered by such registration statement under
such other securities or blue sky laws of such jurisdictions within the United States as each holder of such securities shall request
(provided, however, the Company shall not be obligated to qualify as a foreign corporation to do business under the
laws of any jurisdiction in which it is not then qualified or to file any general consent to service or process), and do such other
reasonable acts and things as may be required of it to enable such holder to consummate the disposition in such jurisdiction of
the securities covered by such registration statement;

 

(E)              
enter into customary agreements (including an underwriting agreement in customary form), cause its auditors to provide a
customary comfort letter, and take such other actions as are reasonably required in order to expedite or facilitate the disposition
of such registrable securities; and

 

    	8

    	 

    

 

(F)               
otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission.

 

It
shall be a condition precedent to the obligation of the Company to take any action pursuant to this Section 3 in respect
of the securities which are to be registered at the request of the Holder that the Holder shall furnish to the Company such information
regarding the securities held by such holder and the intended method of disposition thereof as the Company shall reasonably request
and as shall be required in connection with the action taken by the Company.

 

3.7             
Expenses. All expenses incurred in complying with this Section 3, including, without limitation, all
registration and filing fees (including all expenses incident to filing with FINRA), printing expenses, fees and disbursements
of counsel for the Company, the fees of any auditors providing comfort letters, the reasonable fees and expenses of one counsel
for the selling security holders (selected by those holding a majority of the shares being registered), expenses of any special
audits incident to or required by any such registration and expenses of complying with the securities or blue sky laws of any jurisdictions
pursuant to Section 3.6(D), shall be paid by the Company, except that the Company shall not be liable for any fees, discounts
or commissions to any underwriter or any fees or disbursements of counsel for any underwriter in respect of the securities sold
by any holder of Warrant Shares.

 

3.8             
Indemnification and Contribution.

 

3.8.1        
In the event of any registration of any Warrant Shares under the Act pursuant to this Section 3, the Company shall
indemnify and hold harmless the holder of such Warrant Shares, such holder's directors and officers, and each other Person (including
each underwriter) who participated in the offering of such Warrant Shares and each other Person, if any, who controls such holder
or such participating Person within the meaning of the Act, against any losses, claims, damages or liabilities, joint or several,
to which such holder or any such director or officer or participating Person or controlling Person may become subject under the
Act or any other statute or at common law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon (i) any alleged untrue statement of any material fact contained, on the effective date thereof,
in any registration statement under which such securities were registered under the Act, any preliminary prospectus or final prospectus
contained therein, or any amendment or supplement thereto, or (ii) any alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading, and shall reimburse such holder or such director,
officer or participating Person or controlling Person for any legal or any other expenses reasonably incurred by such holder or
such director, officer or participating Person or controlling Person in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based upon any alleged untrue statement or alleged omission
made in such registration statement, preliminary prospectus, prospectus or amendment or supplement in reliance upon and in conformity
with written information furnished to the Company by such holder specifically for use therein. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of such holder or such director, officer or participating
Person or controlling Person, and shall survive the transfer of such securities by such holder.

 

    	9

    	 

    

 

3.8.2        
Each holder of Warrant Shares, by acceptance thereof, agrees to indemnify and hold harmless the Company, its directors and
officers and each other person, if any, who controls the Company within the meaning of the Act against any losses, claims, damages
or liabilities, joint or several, to which the Company or any such director or officer or any such person may become subject under
the Act or any other statute or at common law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon information in writing provided to the Company by such holder of Warrant Shares contained, on the
effective date thereof, in any registration statement under which securities were registered under the Act at the request of such
holder, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereto; provided,
however, that the indemnification obligations of such holder shall be limited to the net proceeds from the offering of Warrant
Shares received by such holder.

 

3.8.3        
If the indemnification provided for in this Section 3 from the indemnifying party is unavailable to an indemnified
party hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party,
in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of
the indemnifying party and indemnified parties in connection with the actions which resulted in such losses, claims, damages, liabilities
or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified
parties shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information
supplied by, such indemnifying party or indemnified parties, and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the losses, claims, damages,
liabilities and expenses referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by
such party in connection with any investigation or proceeding; provided, however, that the contribution obligation
of any holder shall be limited to the net proceeds from the offering of the Warrant Shares received by any such holder.

 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 3.8.3 were determined
by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred
to in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

3.9             
Listing on Securities Exchange. If the Company shall list any shares of Common Stock on any securities exchange,
it will, at its expense, list thereon, maintain and, when necessary, increase such listing of, all shares of Common Stock issued
or, to the extent permissible under the applicable securities exchange rules, issuable upon the exercise of the Warrants so long
as any shares of Common Stock shall be so listed during the period in which the Warrants may be exercised. 

 

    	10

    	 

    

 

SECTION
4.   Representations, Warranties and Covenants
of the Company.

 

4.1             
Representations and Warranties. As of the date hereof, the Company represents and warrants to the Holder that:

 

(A)             
it has the corporate power to enter into, perform and deliver, and has taken all necessary action to authorize its entry
into, and performance and delivery of, this Warrant and the transactions contemplated by this Warrant;

 

(B)              
this Warrant constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance
with its terms, subject to (i) the effect of bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other
similar laws now or hereinafter in effect relating to or affecting the rights and remedies of creditors and (ii) the effect of
general principles of equity, including, without limitation, concepts of materiality, reasonableness, good faith and fair dealing
and the possible unavailability of specific performance or injunctive relief regardless of whether considered in a proceeding in
equity or at law;

 

(C)              
the execution of this Warrant and the performance of the Company’s obligations hereunder do not conflict with, result
in a breach or violation or imposition of any lien, charge or encumbrance upon any property or assets of the Company’s or
any of its subsidiaries pursuant to: (i) the Company’s organizational documents; (ii) the terms of any indenture, contract,
lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument
to which the Company or any of its subsidiaries is a party or bound or to which its or their property is subject; or (iii) any
statute, law, rule, regulation, judgment, order or decree of any court, regulatory body, administrative agency, governmental body,
arbitrator or other authority having jurisdiction over it or any of its subsidiaries or any of its or their properties; and

 

(D)             
assuming the accuracy of the representations and warranties of the Holder contained in this Warrant, the sale and issuance
of the Warrant Shares pursuant to this Warrant is intended to be exempt from the registration requirements of the Act, and neither
the Company nor any person acting on its behalf has taken or will take any action hereafter that would cause the loss of such exemption.

 

4.2             
Covenants of the Company. The Company covenants and agrees as follows:

 

(A)            
at all times the Company shall reserve and keep available for the exercise of this Warrant such number of authorized shares
of Common Stock as are sufficient to permit the exercise in full of this Warrant;

 

(B)            
all Warrant Shares, when issued upon the exercise of this Warrant, will be duly and validly issued, fully paid, nonassessable
and free of preemptive rights;

 

(C)            
the Company shall, for so long as the Warrant remains outstanding, timely file all reports and other documents required
to be filed by it pursuant to the Act or the Exchange Act. In the event the Company no longer has reporting obligations under the
Act or the Exchange Act, then the Company will deliver to the Holder:

 

    	11

    	 

    

 

(i)                
as soon as available, but in any event within 90 days after the end of each fiscal year of the Company, commencing with
the fiscal year ended December 31, 2013, a copy of the audited consolidated balance sheet of the Company and its subsidiaries as
at the end of such year and the related audited consolidated statements of income and of cash flows for such year, setting forth
in each case in comparative form the figures as of the end of and for the previous year, together with a narrative discussion and
analysis of the financial condition and results of operations of the Company and its subsidiaries for such fiscal year as compared
to the previous year, and reported on without a “going concern” or like qualification or exception, or qualification
arising out of the scope of the audit, by the Company’s independent accountants;

 

(ii)              
as soon as available, but in any event not later than 60 days after the end of each quarterly period of each fiscal year
of the Company, the unaudited consolidated balance sheet of the Company and its consolidated subsidiaries as at the end of such
quarter and the related unaudited consolidated statements of income and of cash flows for such quarter and the portion of the fiscal
year through the end of such quarter, setting forth in each case in comparative form the figures as of the end of and for the corresponding
period in the previous year, together with a narrative discussion and analysis of the financial condition and results of operations
of the Company and its subsidiaries for such fiscal quarter and for the period from the beginning of the then current fiscal year
to the end of such fiscal quarter, as compared to the comparable periods of the previous year; and

 

(iii)            
within 10 business days after the time periods specified by the SEC’s rules and regulations, information substantively
of the type that would be required to be filed with the Commission in a Current Report on Form 8-K.

 

All
such financial statements delivered pursuant to this Section 4.2(C) shall be complete and correct in all material respects
and to be prepared in reasonable detail and in accordance with GAAP applied consistently throughout the periods reflected therein
and with prior periods (except as approved by the Company's independent accountants or chief financial officer, as the case may
be, and disclosed therein, and quarterly financial statements shall be subject to normal year-end audit adjustments and need not
be accompanied by footnotes);

 

(D)            
the Company shall not, for so long as any Warrants remain outstanding, by any action, including amending its organizational
documents or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or
any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant. The Company
will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary
or appropriate to protect the rights of the Holder against impairment. Without limiting the generality of the foregoing, the Company
will use its commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory
body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant.

 

    	12

    	 

    

 

SECTION
5.   Representations and Warranties of the
Holder.

 

Each Holder
of a Warrant represents and warrants to the Company as follows:

 

5.1             
Acquisition of Warrant for Personal Account. The Holder is acquiring this Warrant and the Warrant Shares (collectively
the “Securities”) for investment for its own account and not with a present view to, or for resale in connection
with, any public resale or distribution thereof. The Holder understands that the Securities have not been registered under the
Act by reason of a specific exemption from the registration provisions of the Act which depends upon, among other things, the bona
fide nature of the investment intent as expressed herein. The Holder further understands that the Securities have not been passed
upon or the merits thereof endorsed or approved by any state or federal authorities.

 

5.2             
Rule 144. The Holder acknowledges that the Securities must be held indefinitely unless subsequently registered
under the Act or an exemption from such registration is available. The Holder is aware of the provisions of Rule 144 promulgated
under the Act.

 

5.3             
Accredited Investor. As of the date hereof, the Holder is an “accredited investor” within the
meaning of Regulation D promulgated under the Act. The Holder is sophisticated in financial matters, and is able to evaluate the
risks and benefits of an investment in the Securities for an indefinite period of time.

 

5.4             
Opportunity To Discuss; Information. The Holder has been afforded the opportunity to ask questions of, and
receive answers from, the officers and/or directors of the Company acting on its behalf concerning the terms and conditions of
this transaction and to obtain any additional information, to the extent that the Company possesses such information or can acquire
it without unreasonable effort or expense, necessary to verify the accuracy of the information furnished; and has availed itself
of the opportunity to the extent the Holder considers appropriate in order to permit it to evaluate the merits and risks of an
investment in the Company.

 

SECTION
6.   Other Matters.

 

6.1             
Binding Effect. All the covenants and provisions of this Warrant by or for the benefit of the Company or the
Holder shall bind and inure to the benefit of any successors hereunder.

 

6.2             
Notices. Notices or demands pursuant to this Warrant to be given or made by any Holder to or on the Company
shall be sufficiently given or made if sent by certified or registered mail, return receipt requested, postage prepaid, or facsimile
and addressed, until another address is designated in writing by the Company, as follows:

 

Black
Ridge Oil & Gas, Inc.

10275
Wayzata Blvd., Suite 310

Minnetonka,
Minnesota 55305

Telephone
No.: (952) 426-1851

Attention:
James Moe, Chief Financial Officer

 

Notices
to the Holder provided for in this Warrant shall be deemed given or made by the Company if sent by certified or registered mail,
return receipt requested, postage prepaid, and addressed to the Holder or each successor at its last known address as it shall
appear on the books of the Company.

 

    	13

    	 

    

 

6.3             
Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Warrant shall be governed by, and construed
in accordance with, the internal laws of the State of New York, without reference to the choice of law provisions thereof.  The
Company and, by accepting this Warrant, the Holder, each irrevocably submits to the exclusive jurisdiction of the courts of the
State of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Warrant and the
transactions contemplated hereby.  Service of process in connection with any such suit, action or proceeding may be served
on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Warrant.  The
Company and, by accepting this Warrant, the Holder, each irrevocably consents to the jurisdiction of any such court in any such
suit, action or proceeding and to the laying of venue in such court.  The Company and, by accepting this Warrant, the
Holder, each irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts
and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. EACH OF THE COMPANY AND, BY ITS ACCEPTANCE HEREOF, THE HOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

6.4             
Parties Bound and Benefited. Nothing in this Warrant expressed and nothing that may be implied from any of
the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the
Company and the Holder any right, remedy or claim under any promise or agreement hereof, and all covenants, conditions, stipulations,
promises and agreements contained in this Warrant shall be for the sole and exclusive benefit of the Company and its successors
and of the Holder and its successors and registered assigns.

 

6.5             
Confidentiality. The Holder agrees to maintain, and to require its representatives to maintain, all confidential
information obtained from the Company on a confidential basis, which, among other things, precludes the use of such confidential
information for the purposes of trading on the Warrant Shares.

 

6.6             
Identity of Transfer Agent. The transfer agent for the Common Stock is Empire Stock Transfer, Inc.  Upon
the appointment of any subsequent transfer agent for the Common Stock or other shares of the Company’s capital stock issuable
upon the exercise of the rights of purchase represented by the Warrant, the Company will mail to the Holder a statement setting
forth the name and address of such transfer agent.

 

6.7             
Amendment; Waiver. Any term of this Warrant may be amended or waived upon the written consent of the Company
and the Holder.

 

6.8             
Assignment. Any assignment or transfer of any portion or all of this Warrant shall be made by surrender of
this Warrant to the Company at its principal office with the form of assignment attached as Appendix A hereto duly executed.  In
such event, the Company shall, without charge, execute and deliver a new Warrant in the name of the assignee named in such instrument
of assignment and the portion of this Warrant assigned to the assignee shall promptly be canceled.

 

    	14

    	 

    

 

6.9             
Holder as Owner. Prior to the surrender, transfer or assignment of this Warrant, the Company may deem and
treat the Holder as the absolute owner of this Warrant (notwithstanding any notation of ownership or other writing hereon) for
the purpose of any exercise hereof and for all other purposes, and the Company shall not be affected by any notice to the contrary.

 

6.10         
Rights of Holder. Nothing contained in this Warrant shall be construed as conferring upon the Holder, prior
to the exercise of this Warrant, the right to vote, consent or receive notice as a shareholder in respect of any meetings of shareholders
for the election of directors or any other matter, or as having any rights whatsoever as a shareholder of the Company.

 

6.11         
Indemnification. The Company agrees to indemnify and hold harmless the Holder from and against any liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, attorneys’ fees, expenses and disbursements
of any kind which may be imposed upon, incurred by or asserted against the Holder in any manner relating to or arising out of (i)
the Holder’s exercise of this Warrant or ownership of any Warrant Shares issued in consequence thereof, or (ii) any litigation
to which the Holder is made a party in its capacity as a shareholder of the Company; provided, however, that the
Company will not be liable hereunder to the extent that any liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, claims, costs, attorneys’ fees, expenses or disbursements are found in a final non appealable judgment by a court
to have resulted from the Holder’s gross negligence, bad faith or willful misconduct in its capacity as a shareholder or
warrantholder of the Company.

 

6.12         
Remedies. The Holder and each holder of Warrant Shares, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company
agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions
of this Warrant and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate.

 

6.13         
Lost Certificates. If this Warrant is lost, stolen, mutilated or destroyed, the Company shall, on such reasonable
terms as to indemnity as it may impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue
a new Warrant of like denomination and tenor as, and in substitution for, this Warrant, which shall thereupon become void.  Any
such new Warrant shall constitute an additional contractual obligation of the Company, whether or not the Warrant so lost, stolen,
destroyed or mutilated shall be at any time enforceable by anyone.

 

6.14         
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable
law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Warrant.

 

6.15         
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the
part of a Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies.
If the Company fails to make, when due, any payments provided for hereunder, or fails to comply with any other provision of this
Warrant, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but
not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting
any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

    	15

    	 

    

 

6.16         
Office of the Company; Maintenance of Books. As long as any of the Warrants remain outstanding, the Company
shall maintain an office or agency (which may be the principal executive offices of the Company) where the Warrants may be presented
for exercise, registration of transfer, division or combination as provided in this Warrant. The Company agrees to maintain, at
its aforesaid office or agency, books for the registration and the registration of transfer of the Warrants.

 

6.17         
Section Headings. The section headings in this Warrant are for the convenience of the Company and the Holder
and in no way alter, modify, amend, limit or restrict the provisions hereof.

 

[THE
REMAINDER OF THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY.

SIGNATURE PAGE FOLLOWS.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	16

    	 

    

 

IN
WITNESS WHEREOF, each of the Company and the Holder has caused this Warrant to be executed and delivered as of the Issue Date
by an officer thereunto duly authorized.

 

BLACK RIDGE OIL &
GAS, INC.

 

By:   /s/
Kenneth DeCubellis                   

       Kenneth DeCubellis

       Chief Executive Officer

 

 

 

CHAMBERS ENERGY CAPITAL
II TE, LP

 

By: CEC Fund II GP, LLC,
as its general partner

 

By:  /s/
J. Robert Chambers                    

Name: J. Robert Chambers

Title: Managing Director

 

 

 

 

 

 

 

 

 

 

 

 

    	17

    	 

    

 

APPENDIX
A

ASSIGNMENT OF WARRANT

 

FOR
VALUE RECEIVED, _______________________ hereby sells, assigns and transfers unto _____________________________ Warrant No.
1 dated August 8, 2013 (the “Warrant”) and the rights represented thereby, and does hereby irrevocably constitute
and appoint _______________________________ Attorney, to transfer said Warrant on the books of Black Ridge Oil & Gas, Inc.,
with full power of substitution.

 

Dated: ______________________________________

 

Signed:
_____________________________________

 

Signature
guaranteed:

 

___________________________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	18

    	 

    

 

APPENDIX
B

WARRANT EXERCISE FORM

 

To Black
Ridge Oil & Gas, Inc.:

 

The undersigned
hereby irrevocably elects to exercise the right of purchase represented by Warrant No. 1 dated August 8, 2013 (the “Warrant”)
for, and to purchase thereunder by the payment of the Exercise Price (as defined in the Warrant) and surrender of the Warrant,
___________ shares of Common Stock (“Warrant Shares”) provided for therein, and requests that certificates for
the Warrant Shares be issued as follows:

 

___________________________________________

Name

___________________________________________

Address

___________________________________________

 

___________________________________________

Federal
Tax ID or Social Security No.

 

and delivered
by               (certified mail to the above address,
or

(electronically
(provide DWAC Instructions:___________________), or

(other (specify):

___________________________________________).

 

and, if
the number of Warrant Shares shall not be all the Warrant Shares purchasable upon exercise of the Warrant, that a new Warrant for
the balance of the Warrant Shares purchasable upon exercise of this Warrant be registered in the name of the undersigned Holder
or the undersigned’s Assignee as below indicated and delivered to the address stated below.

 

Dated: ___________________,
____

 

Signature:______________________________

 

___________________________________________

Name (please
print)

___________________________________________

Address

___________________________________________

 

___________________________________________

Federal
Identification or

Social Security
No.

 

Assignee:

___________________________________________

___________________________________________

___________________________________________

 

    	19

    	 

    

 

APPENDIX
C

NET ISSUE ELECTION NOTICE

 

To Black
Ridge Oil & Gas, Inc.:

 

Date:_________________________

 

The
undersigned hereby elects under Section 1.3 of Warrant No. 1 dated August 8, 2013 (the “Warrant”) to
surrender the right to purchase _____________ shares of common stock pursuant to this Warrant (the “Warrant Shares”)
and hereby requests the issuance of ______________ of common stock.  The certificate(s) for the shares issuable upon
such net issue election shall be issued in the name of the undersigned or as otherwise indicated below.

 

_________________________________________

Signature

 

_________________________________________

Name for
Registration

 

_________________________________________

Mailing
Address

 

and, if
the number of Warrant Shares shall not be all the Warrant Shares purchasable upon exercise of the Warrant, that a new Warrant for
the balance of the Warrant Shares purchasable upon exercise of this Warrant be registered in the name of the undersigned Holder
or the undersigned’s Assignee as below indicated and delivered to the address stated below.

 

Dated: ___________________,
____

 

Signature:______________________________

 

_________________________________________

Name (please
print)

_________________________________________

Address

_________________________________________

 

_________________________________________

Federal
Identification or

Social
Security No.

 

Assignee:

_________________________________________

_________________________________________

_________________________________________

 

 

    	20Exhibit 10.2

 

OMNIBUS AGREEMENT

 

by and among

 

OCI ENTERPRISES INC.,

 

OCI RESOURCE PARTNERS LLC

 

and

 

OCI RESOURCES LP

 

 

OMNIBUS AGREEMENT

 

This OMNIBUS AGREEMENT (the “Agreement”) is entered into on, and effective as of, the Closing Date (as defined herein) by and among OCI Enterprises Inc., a Delaware corporation (the “Sponsor”), OCI Resource Partners LLC, a Delaware limited liability company (the “General Partner”), and OCI Resources LP, a Delaware limited partnership (the “Partnership”). The above-named entities are sometimes referred to in this Agreement each as a “Party” and collectively as the “Parties.”

 

R E C I T A L S:

 

1.                                      On the Closing Date, OCI Wyoming Co., an Affiliate (as defined herein) of the General Partner, will contribute all of its rights, title and interest in its 10.02% limited partner interest in OCI Wyoming L.P. to the Partnership (the “Contribution”) in exchange for a cash payment of $[     ] to be made from the proceeds from the Partnership’s initial public offering of common units representing limited partner interests;

 

2.                                      The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article II, with respect to certain indemnification obligations of the Parties to each other;

 

3.                                      The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article III, with respect to certain general and administrative services and operation and management services to be performed by the Sponsor Entities for and on behalf of the Partnership Group (as defined herein) and the reimbursement obligations of the General Partner and the Partnership related thereto; and

 

4.                                      The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article IV, with respect to the granting of a sublicense from the Sponsor (as defined herein) to the Partnership Group and the General Partner.

 

In consideration of the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

 

ARTICLE I

Definitions

 

1.1                               Definitions. As used in this Agreement, the following terms shall have the respective meanings set forth below:

 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.

 

 

“Cause” is defined in the Partnership Agreement.

 

“Change of Control” means, with respect to any Person (the “Applicable Person”), any of the following events: (i) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the Applicable Person’s assets to any other Person, unless immediately following such sale, lease, exchange or other transfer such assets are owned, directly or indirectly, by the Applicable Person or such Applicable Person owns or controls such other Person; (ii) the dissolution or liquidation of the Applicable Person; (iii) the consolidation or merger of the Applicable Person with or into another Person, other than any such transaction where (a) the outstanding Voting Securities of the Applicable Person are changed into or exchanged for Voting Securities of the surviving Person or its parent and (b) the holders of the Voting Securities of the Applicable Person immediately prior to such transaction own, directly or indirectly, not less than a majority of the outstanding Voting Securities of the surviving Person or its parent immediately after such transaction; and (iv) a “person” or “group” (within the meaning of Sections 13(d) or 14(d)(2) of the Exchange Act), other than the Sponsor or its Affiliates, being or becoming the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) of more than 50% of all of the then outstanding Voting Securities of the Applicable Person, except in a merger or consolidation that would not constitute a Change of Control under clause (iii) above.

 

“Closing Date” means [·], 2013.

 

“Common Units” is defined in the Partnership Agreement.

 

“Conflicts Committee” is defined in the Partnership Agreement.

 

“Contribution Agreement” means that certain Contribution, Assignment and Assumption Agreement, dated as of the Closing Date, among OCI Wyoming Co., the Partnership, the General Partner, OCI Wyoming Holding Co. and OCI Chemical Corporation, together with the additional conveyance documents and instruments contemplated or referenced thereunder.

 

“Control,” “is controlled by” or “is under common control with” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of Voting Securities, by contract, or otherwise.

 

“Covered Environmental Losses” means any and all Losses (including, without limitation, the costs and expenses associated with any Environmental Activity or of any necessary environmental or toxic tort pre-trial, trial or appellate legal or litigation work) to the extent  arising out of:

 

(a)                                 any violation or correction of a violation of any Environmental Law related to ownership or operation of the Partnership Assets;

 

2

 

(b)                                 any event, circumstance, action, omission, condition or matter that has an adverse impact on the environment and is associated with or arising from the ownership or operation of the Partnership Assets (including, without limitation, the presence of Hazardous Substances at, on, under, about or migrating from the Partnership Assets;

 

(c)                                  any exposure to or the presence or Release of Hazardous Substances at or arising out of the ownership or operation of Partnership Assets (including at non-Partnership Asset locations); and

 

(d)                                 the off-site storage, treatment, recycling, transportation, disposal or arrangement for disposal (collectively “Off-Site Management”) of Hazardous Substances generated by or used in the ownership or operation of the Partnership Assets.

 

“Environmental Activity” means any investigation, study, assessment, evaluation, sampling, testing, monitoring, containment, removal, disposal, closure, corrective action, remediation (whether active or passive), natural attenuation, restoration, bioremediation, response, repair, cleanup or abatement that is required by any Environmental Law, including, without limitation, the establishment of institutional or engineering controls and the performance of or participation in a supplemental environmental project in partial or whole mitigation of a fine or penalty.

 

“Environmental Laws” means all federal, state, and local laws, statutes, rules, regulations, orders, ordinances, judgments, codes, injunctions, decrees, Environmental Permits and other legally enforceable requirements and rules of common law applicable to the Partnership Assets and relating to (a) pollution or protection of the environment or natural resources, (b) any Release or threatened Release of, or any exposure of any Person or property to, any Hazardous Substance and (c) the generation, manufacture, processing, distribution, use, treatment, storage, transport or handling of any Hazardous Substance, including, without limitation, the federal Comprehensive Environmental Response, Compensation, and Liability Act, the Superfund Amendments Reauthorization Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Federal Water Pollution Control Act, the Toxic Substances Control Act, the Oil Pollution Act, the Safe Drinking Water Act, the Hazardous Materials Transportation Act and other environmental conservation and protection laws, each as amended through and existing on the Closing Date.

 

“Environmental Permits” means any permit, approval, identification number, license, registration, certification, consent, exemption, variance or other authorization required under or issued pursuant to any Environmental Law.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“General Partner” is defined in the introduction to this Agreement.

 

“Hazardous Substance” means (a) any substance that is designated, defined or classified as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic or hazardous

 

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substance, or terms of similar meaning, or that is otherwise regulated under any Environmental Law, including, without limitation, any hazardous substance as such term is defined under the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, (b) petroleum, petroleum products, natural gas, crude oil, gasoline, fuel oil, motor oil, waste oil, diesel fuel, jet fuel and other petroleum hydrocarbons, whether refined or unrefined, and (c) radioactive materials, asbestos, whether in a friable or a non-friable condition, and polychlorinated biphenyls.

 

“Indemnified Party” means either one or more members of the Partnership Group or one or more Sponsor Entities, as the case may be, each in its capacity as a party entitled to indemnification in accordance with Article II hereof.

 

“Indemnifying Party” means either one or more members of the Partnership Group or the Sponsor, as the case may be, each in its capacity as a party from whom indemnification may be required in accordance with Article II hereof.

 

“License” is defined in Section 4.1.

 

“Limited Partner” is defined in the Partnership Agreement.

 

“Losses” means, subject to the provisions of Section 2.5(e), all losses, damages, liabilities, injuries, claims, demands, causes of action, judgments, settlements, fines, penalties, costs and expenses of any and every kind or character (including, without limitation, court costs and reasonable attorneys’ and experts’ fees).

 

“Mark” is defined in Section 4.1.

 

“MLP Credit Agreement” means that certain credit agreement, dated as of July 18, 2013, among the Partnership, Bank of America, N.A., as administrative agent, swing line lender and L/C issuer, and the other lenders party thereto.

 

“OCI Company” is defined in Section 4.2(a).

 

“Opco Credit Agreement” means that certain credit agreement, dated as of July 18, 2013, among OCI Wyoming, L.P., Bank of America, N.A., as administrative agent, swing line lender and L/C issuer, and the other lenders party thereto.

 

“Partnership” is defined in the introduction to this Agreement.

 

“Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of OCI Resources LP, dated as of the Closing Date, as such agreement is in effect on the Closing Date, to which reference is hereby made for all purposes of this Agreement.

 

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“Partnership Assets” means the assets conveyed, contributed or otherwise transferred, directly or indirectly (including through the transfer of equity interests), or intended to be conveyed, contributed or otherwise transferred, to the Partnership Group pursuant to the Contribution Agreement, including, without limitation, mining rights, mining and processing facilities and equipment relating thereto, offices and related equipment and real estate.

 

“Partnership Group” means the Partnership and its Subsidiaries treated as a single consolidated entity.

 

“Party” and “Parties” are defined in the introduction to this Agreement.

 

“Person” means an individual or a corporation, firm, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

 

“Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, migrating, injecting, escaping, leaching, dumping or disposing into the environment (including the abandonment or discarding of barrels, containers, and other closed receptacles).

 

“Retained Assets” means the assets and investments owned by the Sponsor Entities as of the Closing Date that were not conveyed, contributed or otherwise transferred to the Partnership Group pursuant to the Contribution Agreement or otherwise; provided, however, that any Retained Asset shall cease to be a Retained Asset upon its conveyance, contribution or transfer to the Partnership Group after the date hereof.

 

“SG&A Services” is defined in Section 3.1.

 

“Sponsor Entities” means the Sponsor and any Person controlled, directly or indirectly, by the Sponsor other than the General Partner or a member of the Partnership Group; and “Sponsor Entity” means any of the Sponsor Entities.

 

“Sponsor” is defined in the introduction to this Agreement.

 

“Subsidiary” means, with respect to any Person, (a) a corporation of which more than 50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person or a combination thereof, (b) a partnership (whether general or limited) in which such Person or a Subsidiary of such Person is, at the date of determination, a general or limited partner of such partnership, but only if more than 50% of the partnership interests of such partnership (considering all of the partnership interests of the partnership as a single class) is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person, or a combination thereof, or (c) any other Person (other than a corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a combination

 

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thereof, directly or indirectly, at the date of determination, has (i) at least a majority ownership interest or (ii) the power to elect or direct the election of a majority of the directors or other governing body of such Person.

 

“Voting Securities” of a Person means securities of any class of such Person entitling the holders thereof to vote in the election of, or to appoint, members of the board of directors or other similar governing body of the Person.

 

ARTICLE II

Indemnification

 

2.1                               Environmental Indemnification by Sponsor.

 

(a)                                 Subject to the provisions of Sections 2.4 and 2.5, the Sponsor shall indemnify, defend and hold harmless the Partnership Group from and against any Covered Environmental Losses suffered or incurred by the Partnership Group and relating to the Partnership Assets to the extent that the event, action, omission, violation, exposure, Release or Off-Site Management giving rise to such Covered Environmental Losses occurred on or prior to the Closing Date.

 

(b)                                 Notwithstanding the foregoing, in no event shall the Sponsor have any indemnification obligations under this Agreement with respect to any claims based on additions to or modifications of Environmental Laws enacted or promulgated on or after the Closing Date.

 

2.2                               Additional Indemnification. In addition to and not in limitation of the indemnification provided under Section 2.1(a), subject to the provisions of Sections 2.4 and 2.5, the Sponsor shall indemnify, defend and hold harmless the Partnership Group from and against any Losses suffered or incurred by the Partnership Group and related to or arising out of or in connection with:

 

(a)                                 any failure of the Partnership Group to be the owner on the Closing Date of valid and indefeasible easement rights, rights-of-way, leasehold and/or fee ownership interests in and to the lands on which any Partnership Assets are located to the extent that such failure renders the Partnership Group liable to a third party or unable to use or operate the Partnership Assets in substantially the same manner as they were used or operated by the Sponsor Entities immediately prior to the Closing Date;

 

(b)                                 any failure of the Partnership Group to have on the Closing Date any consent, license or governmental permit or waiver necessary to allow the Partnership Group to use or operate the Partnership Assets in substantially the same manner that the Partnership Assets were used and operated by the Sponsor Entities immediately prior to the Closing Date;

 

(c)                                  any federal, state or local income tax liabilities attributable to the ownership or operation of the Partnership Assets prior to the Closing Date, including (i) any income tax liabilities of the Sponsor Entities that may result from the consummation of the formation transactions for the Partnership Group and (ii) any income tax liabilities arising under Treasury

 

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Regulation Section 1.1502-6 and any similar provision of applicable state, local or foreign law, or by contract, as successor, transferee or otherwise, and which income tax liability is attributable to having been a member of any consolidated, combined or unitary group prior to the Closing Date;

 

(d)                                 the use of “OCI” as part of the Partnership’s or any of its Subsidiaries’ corporate name, company name or partnership name, as the case may be, and as a trademark and service mark or as part of a trademark or service mark for such entity’s products and services or the possession or use of the License; and

 

(e)                                  any event or condition associated with the Retained Assets, whether occurring before, on or after the Closing Date.

 

2.3                               Indemnification by the Partnership Group. Subject to the provisions of Sections 2.4 and 2.5, the Partnership Group shall indemnify, defend and hold harmless the Sponsor Entities from and against any Losses (including Covered Environmental Losses) suffered or incurred by the Sponsor Entities and related to or arising out of or in connection with the ownership or operation of the Partnership Assets after the Closing Date, except to the extent that any member of the Partnership Group is entitled to indemnification hereunder unless such indemnification would not be permitted under the Partnership Agreement.

 

2.4                               Limitations Regarding Indemnification.

 

(a)                                 The indemnification obligations set forth in Sections 2.1(a), 2.2(a), 2.2(b) and 2.2(d) shall terminate on the third (3rd) anniversary of the Closing Date, and the indemnification obligation set forth in Section 2.2(c) shall terminate on the sixtieth (60th) day after the termination of any applicable statute of limitations; provided, however, that any such indemnification obligation with respect to a Loss shall survive the time at which it would otherwise expire pursuant to this Section 2.4(a) if notice of such Loss is properly given to the Sponsor prior to such time. The indemnification obligations set forth in Section 2.2(e) and Section 2.3 shall survive indefinitely.

 

(b)                                 The aggregate liability of the Sponsor under Section 2.1(a) shall not exceed $10,000,000.

 

(c)                                  No claims may be made against the Sponsor for indemnification pursuant to Section 2.1(a) unless the aggregate dollar amount of the Losses suffered or incurred by the Partnership Group exceeds $500,000, after which the Sponsor shall be liable only for the amount of such claims in excess of $500,000, subject to the limitations of Sections 2.4(a) and 2.4(b).

 

(d)                                 In no event shall the Sponsor be obligated to the Partnership Group under Section 2.1(a) or Sections 2.2(a), 2.2(b), 2.2(c) or 2.2(d) for any Losses or income tax liabilities to the extent (i) such Losses or liabilities are reserved for in the Partnership Group’s financial statements as of December 31, 2012, (ii) any insurance proceeds are realized by the Partnership

 

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Group, such correlative benefit to be net of any incremental insurance premium that becomes due and payable by the Partnership Group as a result of such claim, or (iii) any amounts are recovered by the Partnership Group from third persons.

 

2.5                               Indemnification Procedures.

 

(a)                                 The Indemnified Party agrees that promptly after it becomes aware of facts giving rise to a claim for indemnification under this Article II, it shall provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim; provided, however, that the Indemnified Party shall not submit claims more frequently than once each calendar quarter (or twice, in the case of the calendar quarter in which the applicable indemnity coverage under this Agreement expires) unless such Indemnified Party believes in good faith that such a delay in notice to the Indemnifying Party would cause actual prejudice to the Indemnifying Party’s ability to defend against the applicable claim. Notwithstanding anything in this Article II to the contrary, a delay by the Indemnified Party in notifying the Indemnifying Party shall not relieve the Indemnifying Party of its obligations under this Article II, except to the extent that such failure shall have caused actual prejudice to the Indemnifying Party’s ability to defend against the applicable claim.

 

(b)                                 The Indemnifying Party shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims brought against the Indemnified Party that are covered by the indemnification under this Article II, including, without limitation, the selection of counsel, the determination of whether to appeal any decision of any court and the settlement of any such matter or any issues relating thereto; provided, however, that no such settlement shall be entered into without the written consent of the Indemnified Party (with the concurrence of the Conflicts Committee in the case of the Partnership Group) unless it does not include any admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party.

 

(c)                                  The Indemnified Party agrees to cooperate fully with the Indemnifying Party with respect to all aspects of the defense of any claims covered by the indemnification under this Article II, including, without limitation, the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized in connection with such defense, the making available to the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying Party considers relevant to such defense and the making available to the Indemnifying Party, at no cost to the Indemnifying Party, of any employees of the Indemnified Party; provided, however, that in connection therewith, the Indemnifying Party agrees to use commercially reasonable efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all confidential files, records and other information furnished by the Indemnified Party pursuant to this Section 2.5. In no event shall the obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in connection with the defense of any claims covered by the indemnification set forth in this Article II; provided, however, that the

 

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Indemnified Party may, at its own option, cost and expense, hire and pay for counsel in connection with any such defense. The Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party reasonably informed as to the status of any such defense, but the Indemnifying Party shall have the right to retain sole control over such defense.

 

(d)                                 The date on which the Indemnifying Party receives notification of a claim for indemnification shall determine whether such claim is timely made.

 

(e)                                  Notwithstanding anything herein to the contrary, in no event shall any party’s indemnification obligation hereunder cover or include consequential, indirect, incidental, punitive, exemplary, special or similar damages or lost profits suffered by any other party entitled to indemnification under this Agreement. The Indemnified Party hereby agrees to use commercially reasonable efforts to realize any applicable insurance proceeds or amounts recoverable under contractual indemnities; provided, however, that the costs and expenses (including, without limitation, court costs and reasonable attorneys’ fees) of the Indemnified Party in connection with such efforts shall be promptly reimbursed by the Indemnifying Party.

 

(f)                                   To the extent that the Indemnifying Party has made any indemnification payment hereunder in respect of a claim for which the Indemnified Parties have asserted a related claim for insurance proceeds or under a contractual indemnity, the Indemnifying Party shall be subrogated to the rights of the Indemnified Party to receive the proceeds of such insurance or contractual indemnity.

 

ARTICLE III

Services

 

3.1                               Agreement to Provide Selling, Marketing, General and Administrative Services. Until such time as this Agreement is terminated as provided in Section 5.4, the Sponsor hereby agrees to provide and to cause the Sponsor Entities to provide the Partnership Group with certain corporate, selling, marketing, general and administrative services, such as accounting, audit, billing, business development, selling, marketing, corporate record keeping, treasury services, cash management and banking, real property/land, legal, engineering, logistics, purchasing, planning, budgeting, geology/geophysics, investor relations, risk management, information technology, insurance administration and claims processing, regulatory compliance and government relations, tax, payroll, human resources and environmental, health and safety, including without limitation permit filing, support for permit filing and maintenance (collectively, the “SG&A Services”). The Sponsor shall, and shall cause the Sponsor Entities to, provide the Partnership Group with such SG&A Services in a manner consistent in nature and quality to the services of such type previously provided by the Sponsor Entities in connection with their management of the Partnership Assets prior to their acquisition by the Partnership Group.

 

3.2                               Reimbursement by Partnership. Subject to and in accordance with the terms and provisions of this Article III and such reasonable allocation and other procedures as may be

 

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agreed upon by the Sponsor and the General Partner from time to time, the Partnership hereby agrees to reimburse the Sponsor Entities for all direct and indirect costs and expenses incurred by the Sponsor Entities in connection with the provision of the SG&A Services to the Partnership Group, including the following:

 

(a)                                 any payments or expenses incurred for insurance coverage, including allocable portions of premiums, and negotiated instruments (including surety bonds and performance bonds) provided by underwriters with respect to the Partnership Assets or the business of the Partnership Group;

 

(b)                                 an allocated portion of salaries and related benefits (including 401(k), pension, bonuses and health insurance benefits) and expenses of personnel employed by the Sponsor Entities who render SG&A Services to the Partnership Group, plus general and administrative expenses associated with such personnel;

 

(c)                                  any taxes or other direct operating expenses paid by the Sponsor Entities for the benefit of the Partnership Group (including any state income, franchise or similar tax paid by the Sponsor Entities resulting from the inclusion of the Partnership Group in a combined or consolidated state income, franchise or similar tax report with the Sponsor Entities as required by applicable law as opposed to the flow through of income attributable to the Sponsor Entities’ ownership interest in the Partnership Group), provided, however, that the amount of any such reimbursement shall be limited to the tax that the Partnership Group would have paid had it not been included in a combined or consolidated group with the Sponsor Entities; and

 

(d)                                 all expenses and expenditures incurred by the Sponsor Entities as a result of the Partnership becoming and continuing as a publicly traded entity, including costs associated with annual and quarterly reports, tax return and Schedule K-1 preparation and distribution, auditor fees, partnership governance and compliance, registrar and transfer agent fees, legal fees and independent director compensation;

 

it being agreed, however, that to the extent any reimbursable costs or expenses incurred by the Sponsor Entities consist of an allocated portion of costs and expenses incurred by the Sponsor Entities for the benefit of both the Partnership Group and the other Sponsor Entities, such allocation shall be made on a reasonable cost reimbursement basis as determined by the Sponsor.

 

(e)                                  The Partnership shall pay (i) all fees, commissions and other costs in connection with the MLP Credit Agreement and its proportionate share (as a partner of OCI Wyoming, L.P.) of fees, commissions and other costs in connection with the Opco Credit Agreement to the extent such costs are not borne by OCI Wyoming, L.P., including amounts due at or in connection with the execution or closing of the MLP Credit Agreement and the Opco Credit Agreement and all ongoing fees, and (ii) all fees, commissions and issuance costs due in connection with any future debt financing arrangements entered into for the purpose of replacing the MLP Credit Agreement and its proportionate share (as a partner of OCI Wyoming, L.P.) of fees, commissions and other costs in connection with any future debt financing arrangements entered into for the purpose of

 

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replacing the Opco Credit Agreement to the extent such costs are not borne by OCI Wyoming, L.P.

 

3.3                               Billing Procedures. The Partnership shall reimburse the Sponsor, or the Sponsor Entities providing the SG&A Services, as applicable (the “Service Provider”), for billed costs no later than the later of (a) the last day of the month following the performance month, or (b) thirty (30) business days following the date of the Service Provider’s billing to the Partnership. Billings and payments may be accomplished by inter-company accounting procedures and transfers. The Partnership shall have the right to review all source documentation concerning the liabilities, costs, and expenses upon reasonable notice and during regular business hours.  In respect of SG&A Services rendered by a Service Provider to a member of the Partnership Group other than the Partnership, at the request of the Partnership, such Service Provider shall directly bill such member for, and the Partnership shall cause such member of the Partnership Group to directly pay such Service Provider for, such SG&A Services.

 

ARTICLE IV

License of Mark

 

4.1                               Grant of License. Upon the terms and conditions set forth in this Article IV, the Sponsor hereby grants and conveys to each of the entities currently or hereafter comprising a part of the Partnership Group a nontransferable, nonexclusive, royalty-free right and sublicense (“License”) to use “OCI” (a) as part of its corporate name, company name or partnership name, as the case may be, and (b) as a trademark and service mark or as a part of a trademark or service mark for its products and services (each such name, trademark and service mark consisting of or incorporating “OCI,” a “Mark”).  Notwithstanding the foregoing, to the extent required by any relevant government authority, the Partnership shall pay a license fee to the Sponsor in such amount required by the relevant regulatory authority or as determined by the General Partner.

 

4.2                               Ownership and Quality.

 

(a)                                 The Partnership agrees that ownership of any Mark and the goodwill relating thereto shall remain vested in OCI Company Ltd. (“OCI Company”) and any successor thereto, both during the term of this License and thereafter, and the Partnership further agrees, and agrees to cause the other members of the Partnership Group, never to challenge, contest or question the validity of the License, OCI Company’s ownership of any Mark or any registration thereto by OCI Company. In connection with the use of any Mark, the Partnership and any other member of the Partnership Group shall not in any manner represent that they have any ownership in such Mark or registration thereof except as set forth herein, and the Partnership, on behalf of itself and the other members of the Partnership Group, acknowledge that the use of such Mark shall not create any right, title or interest in or to such Mark, and all use of such Mark by the Partnership or any other member of the Partnership Group, shall inure to the benefit of OCI Company.

 

(b)                                 The Partnership agrees, and agrees to cause the other members of the Partnership Group, to use any Mark in accordance with such quality standards established by or for the

 

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Sponsor and communicated to the Partnership from time to time, it being understood that the products and services offered by the members of the Partnership Group immediately before the Closing Date are of a quality that is acceptable to the Sponsor and justifies the License. In the event any entity comprising a part of the Partnership Group or the Partnership is determined by the Sponsor to be using any Mark in a manner not in accordance with quality standards established by the Sponsor, the Sponsor shall provide written notice of such unacceptable use including the reason why applicable quality standards are not being met. If acceptable proof that quality standards are met is not provided to the Sponsor within thirty (30) days after such notice, the entity’s license to use such Mark shall terminate and shall not be renewed absent written authorization from the Sponsor.

 

4.3                               In the Event of Termination. In the event of termination of this Agreement, pursuant to Section 5.4 or otherwise, or the termination of the License, the Partnership Group’s right to utilize any Mark licensed under this Agreement shall automatically cease, and no later than ninety (90) days following such termination, (a) the Partnership Group shall cease all use of any Mark and shall adopt trademarks, service marks, trade names and, as applicable, corporate names, company names and partnership names, that are not confusingly similar to the Mark; provided, however, that any use of the Mark during such 90-day period shall continue to be subject to Section 4.2(b), (b) at the Sponsor’s request, the Partnership Group shall destroy all materials and content upon which such Mark continues to appear (or otherwise modify such materials and content such that the use or appearance of such Mark ceases) that are under the Partnership Group’s control, and certify in writing to the Sponsor that the Partnership Group has done so, and (c) each member of the Partnership Group shall change its legal name so that there is no reference therein to the name “OCI,” any name or d/b/a then used by any Sponsor Entity or any variation, derivation or abbreviation thereof, and in connection therewith, shall make all necessary filings of certificates with the Secretary of State of the State of Delaware and to otherwise amend its organizational documents by such date.

 

ARTICLE V

Miscellaneous

 

5.1                               Choice of Law; Submission to Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. Each Party hereby submits to the jurisdiction of the state and federal courts in the State of New York and to venue in the state and federal courts in The City of New York, New York.

 

5.2                               Notice. All notices or requests or consents provided for by, or permitted to be given pursuant to, this Agreement must be in writing and must be given by depositing same in the United States mail, addressed to the Person to be notified, postage-paid, and registered or certified with return receipt requested or by delivering such notice in person, by overnight delivery service or by facsimile to such Party. Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by facsimile shall be effective upon actual receipt if received during the recipient’s normal business hours or at the beginning of the recipient’s next business day after receipt if not received during the recipient’s normal business hours. All

 

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notices to be sent to a Party pursuant to this Agreement shall be sent to or made at the address set forth below or at such other address as such Party may stipulate to the other Parties in the manner provided in this Section 5.2.

 

If to the Sponsor Entities:

 

OCI Enterprises Inc.

Five Concourse Parkway

Suite 2500

Atlanta, Georgia 30328

Attn: General Counsel

Telephone: 412-375-2300

 

If to the Partnership Group:

 

OCI Resources LP

c/o OCI Resource Partners LLC, its General Partner

Five Concourse Parkway

Suite 2500

Atlanta, Georgia 30328

Attn: General Counsel

Telephone: 707-375-2300

 

5.3                               Entire Agreement. This Agreement constitutes the entire agreement of the Parties relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein.

 

5.4                               Termination of Agreement.

 

Notwithstanding any other provision of this Agreement, if a Change of Control of the General Partner, the Sponsor or the Partnership occurs, then this Agreement, other than the provisions set forth in Article II, may at any time thereafter be terminated by the Sponsor or the Partnership by written notice to the other Parties.

 

5.5                               Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement of all the Parties hereto; provided, however, that the Partnership may not, without the prior approval of the Conflicts Committee, agree to any amendment or modification of this Agreement that, in the reasonable discretion of the General Partner, would be adverse in any material respect to the holders of Common Units. Each such instrument shall be reduced to writing and shall be designated on its face an “Amendment” or an “Addendum” to this Agreement.

 

5.6                               Assignment. No Party shall have the right to assign its rights or obligations under this Agreement without the consent of the other Parties hereto; provided, however, that the

 

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Partnership may make a collateral assignment of this Agreement solely to secure working capital financing for the Partnership.

 

5.7                               Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile transmission or in portable document format (.pdf) shall be effective as delivery of a manually executed counterpart hereof.

 

5.8                               Severability. If any provision of this Agreement shall be held invalid or unenforceable by a court or regulatory body of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect.

 

5.9                               Further Assurances. In connection with this Agreement and all transactions contemplated by this Agreement, each signatory party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions.

 

5.10                        Rights of Limited Partners. The provisions of this Agreement are enforceable solely by the Parties to this Agreement, and no Limited Partner of the Partnership shall have the right, separate and apart from the Partnership, to enforce any provision of this Agreement or to compel any Party to this Agreement to comply with the terms of this Agreement.

 

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IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the Closing Date.

 

 

	
 
    	
OCI ENTERPRISES INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
OCI RESOURCE PARTNERS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
OCI   RESOURCES LP
    
	
 
    	
 
    
	
 
    	
By:
    	
OCI RESOURCE PARTNERS LLC,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Title:

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