Document:

Exhibit 10.2 - DBGUARANTY

Exhibit 10.2
LIMITED GUARANTY
This LIMITED GUARANTY (the “Guaranty”) is made and entered into as of July 2, 2014, by NORTHSTAR REAL ESTATE INCOME II, INC., a Maryland corporation (“NS Income II”), and NORTHSTAR REAL ESTATE INCOME OPERATING PARTNERSHIP II, LP, a Delaware limited partnership, each having an address at c/o NorthStar Real Estate Income II, Inc., 399 Park Avenue, 18th Floor, New York, New York  10022 (individually and collectively, as the context may require “Guarantor”), for the benefit of DEUTSCHE BANK AG, CAYMAN ISLANDS BRANCH, a branch of a foreign banking institution, whose address is 60 Wall Street, 10th Floor, New York, New York  10005 (“Buyer”).  This Guaranty is made with reference to the following facts:

A.    DB Loan NT-II, LLC, a Delaware limited liability company (“Master Seller”; together with each Series Seller (as defined in the Repurchase Agreement (defined below)) formed by Master Seller under the Repurchase Agreement, collectively, “Seller”), and Buyer have entered into that certain Master Repurchase Agreement, dated as of the date hereof (as amended, modified and/or restated, the “Repurchase Agreement”), pursuant to which Buyer may purchase Purchased Loans (as defined in the Repurchase Agreement) from Seller with a simultaneous agreement from Seller to repurchase such Purchased Loans at a date certain or on demand (the “Transactions”);
B.    Buyer has requested, as a condition of entering into the Transaction Documents, that Guarantor deliver to Buyer this Guaranty;
C.    Guarantor is an Affiliate (as defined in the Repurchase Agreement) and directly or indirectly controls Seller;
D.    Guarantor expects to benefit if Buyer enters into the Transaction Documents with Seller, and desires that Buyer enter into the Transaction Documents with Seller; and
E.    Buyer would not enter into the Transaction Documents with Seller unless Guarantor executed this Guaranty.  This Guaranty is therefore delivered to Buyer to induce Buyer to enter into the Transaction Documents.
NOW, THEREFORE, in exchange for good, adequate, and valuable consideration, the receipt of which Guarantor acknowledges, and to induce Buyer to enter into the Transaction Documents, Guarantor agrees as follows:
1.    Definitions.  For purposes of this Guaranty, the following terms shall be defined as set forth below.  In addition, any capitalized term used herein which is defined in the Repurchase Agreement but not defined in this Guaranty shall have the meaning ascribed to such term in the Repurchase Agreement.
(a)    “Adjusted Leverage Ratio” means, as of any date, the ratio of (a) Total Indebtedness to (b) Total Equity of NS Income II as of such date.
(b)    “Control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise and “Controlling,” “Controlled” and “under common Control” shall have meanings correlative thereto.  For purposes of this definition, debt securities that are convertible into common stock will be treated as voting securities only when converted.

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(c)    “Consolidated Subsidiaries” mean, with respect to any Person as of any date, any and all Subsidiaries or other entities that are consolidated with such Person in accordance with GAAP.
(d)    “Costs” means all reasonable out-of-pocket costs and expenses incurred by Buyer in any Proceeding or in obtaining legal advice and assistance in connection with any Proceeding, any Guarantor Litigation, or any Default or Event of Default by Seller under the Transaction Documents or any default by Guarantor under this Guaranty (including any breach of a representation or warranty contained in this Guaranty), including, without limitation, reasonable out-of-pocket attorneys’ fees, disbursements, court costs and expenses.
(e)    “Guarantied Obligations” means Seller’s obligations to fully and promptly pay all sums owed to Buyer under the Repurchase Agreement, the Letter Agreement, and the other Transaction Documents and to Buyer and any Affiliated Hedge Counterparties under any Affiliated Hedging Transactions with Affiliated Hedge Counterparties, at the times and according to the terms required by the Transaction Documents or the applicable Affiliated Hedging Transaction documents, as applicable, including the Repurchase Price for each Purchased Loan, accrued interest, default interest, costs, or fees (including any such interest, costs or fees arising from and after the filing of an Insolvency Proceeding by or against Seller), without regard to any modification, suspension, or limitation of such terms not agreed to by Buyer, such as a modification, suspension, or limitation arising in or pursuant to any Insolvency Proceeding by or against Seller (even if any such modification, suspension, or limitation causes Seller’s obligation to become discharged or unenforceable, and in the case of an Insolvency Proceeding against Seller, even if such modification was made with Buyer’s consent or agreement).
(f)    “Guarantor Litigation” means any litigation, arbitration, investigation, or administrative proceeding of or before any court, arbitrator, or governmental authority, bureau or agency that materially affects this Guaranty or any asset(s) or property(ies) of Guarantor.
(g)    “Indebtedness” means, with respect to any Person: (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of property to another Person subject to an agreement, contingent or otherwise, to repurchase such property from such Person); (b) obligations of such Person to pay the deferred purchase or acquisition price of property or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business; (c) indebtedness of others secured by a Lien on the property of such Person, whether or not the respective indebtedness so secured has been assumed by such Person (not to exceed the market value of such property); (d) recourse obligations of such Person in respect of letters of credit or similar instruments (in each case, to the extent such obligations are not cash collateralized) issued or accepted by banks and other financial institutions for account of such person; (e) recourse obligations of such Person under any repurchase agreement, short sale, futures contract (including Eurodollar futures) or options contract or any interest rate swap, cap or collar agreement or derivatives transaction to which it is a party; and (f) recourse guarantees issued by such Person with respect to any of the foregoing obligations of its Affiliates (excluding so-called “bad boy” guarantees that have not yet been quantified).
(h)    “Insolvency Proceeding” means any voluntary or involuntary case or proceeding under the Bankruptcy Code or any other insolvency, bankruptcy, reorganization, liquidation, or like proceeding under any Bankruptcy Laws.
(i)    “Lien” means any mortgage, lien, encumbrance, charge or other security interest, whether arising under contract, by operation of law, judicial process or otherwise.

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(j)    “Liquidity” means, as of any date, NS Income II’s consolidated cash and cash equivalents as of such date, as reflected on NS Income II’s publicly-filed consolidated financial statements prepared in accordance with GAAP.
(k)    “Member” means DB Loan Member NT-II, LLC, a Delaware limited liability company.
(l)    “NS Income II” means Northstar Real Estate Income II, Inc., a Maryland corporation
(m)    “Proceeding” means any action, suit, arbitration, or other proceeding arising out of or relating to the interpretation or enforcement of, this Guaranty or the Transaction Documents, including (a) an Insolvency Proceeding; (b) any proceeding in which Buyer endeavors to realize upon any Security or to enforce any Transaction Document(s) (including this Guaranty) against Seller or Guarantor, to the extent that Buyer is the prevailing party in such proceeding or such proceeding results in a settlement pursuant to which any payment is made by Guarantor; and (c) any proceeding commenced by Seller or Guarantor against Buyer in which Buyer is the prevailing party.
(n)    “Security” means any security or collateral held by or for Buyer for the Transactions or the Guarantied Obligations, whether real or personal property, including any mortgage, deed of trust, financing statement, security agreement, and other security document or instrument of any kind securing the Transactions in whole or in part.  “Security” shall include all assets and property of any kind whatsoever pledged or mortgaged to Buyer pursuant to the Transaction Documents.
(o)    “Seller” has the meaning set forth in recital A to this Guaranty and shall include: (a) any estate created by the commencement of an Insolvency Proceeding by or against Seller; (b) any trustee, liquidator, sequestrator, or receiver of Seller or any of its property; and (c) any similar person duly appointed pursuant to any law governing any Insolvency Proceeding of Seller.
(p)    “State” means the State of New York.
(q)    “Subsidiary” means, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership, limited liability company or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person.
(r)    “Total Equity” means total equity as shown on NS Income II’s publicly-filed consolidated financial statements prepared in accordance with GAAP.
(s)    “Total Indebtedness” means, as of any date, the sum of (i) all amounts of Indebtedness of NS Income II and its Consolidated Subsidiaries plus (ii) the proportionate share of all Indebtedness of NS Income II not reflected on NS Income II’s publicly-filed consolidated financial statements prepared in accordance with GAAP.
(t)    “Transaction Document” means each “Transaction Document” (as defined in the Repurchase Agreement) other than this Guaranty.
2.    Absolute Guaranty of All Guarantied Obligations.  (a)  Subject to clause (b) below, Guarantor hereby unconditionally and irrevocably guarantees to Buyer the prompt and complete payment and performance by Seller when due (whether at the stated maturity, by acceleration or 

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otherwise) of the Guarantied Obligations. All assets and property of Guarantor shall be subject to recourse if Guarantor fails to pay any Guarantied Obligation(s) when and as required to be paid pursuant to the Transaction Documents.
(b)    Notwithstanding anything herein or in any other Transaction Document to the contrary, but subject to clauses (c) and (d) below, the maximum liability of Guarantor hereunder and under the other Transaction Documents shall in no event exceed the sum of (i) the greater of (A) the sum of (1) twenty-five percent (25%) of the aggregate Repurchase Price of all Purchased Loans that are Stabilized Loans subject to Transactions under the Repurchase Agreement as of the date of the occurrence of any Event of Default (which remains uncured and for which Buyer has made any demand for payment by Guarantor hereunder)  plus (2) one hundred percent (100%) of the aggregate Repurchase Price of all Purchased Loans that are Transition Loans subject to Transactions under the Repurchase Agreement as of the date of the occurrence of any Event of Default (which remains uncured and for which Buyer has made any demand for payment by Guarantor hereunder), and (B) the lesser of (1) $12,500,000, provided that if the Maximum Amount (as defined in the Letter Agreement) shall be increased at any time to an amount greater than $100,000,000, the amount under this Section 2(b)(i)(B)(1) shall be increased to include twelve and one-half percent (12.5%) of the amount of such increase in the Maximum Amount, and (2) the aggregate Repurchase Price of all Purchased Loans then subject to Transactions under the Repurchase Agreement; (ii) all Exit Fees (as defined in the Letter Agreement) due and payable to Buyer under the Transaction Documents; and (iii) Buyer’s Costs relating to the enforcement of remedies pursuant to this Guaranty .
(c)    Notwithstanding the foregoing, the limitation on recourse liability as set forth in subsection (b) above SHALL BECOME NULL AND VOID and shall be of no further force and effect and the Guarantied Obligations immediately shall become fully recourse to Seller and Guarantor, jointly and severally, in the event of any of the following:
(i)    a voluntary Insolvency Proceeding is commenced by Seller (with respect to Seller) or Member (with respect to Member) under any Bankruptcy Law; or 
(ii)    an involuntary Insolvency Proceeding under any Bankruptcy Law against Seller or Member in which Seller, Member, Guarantor, or any Affiliate of any of the foregoing has or have colluded or conspired with the creditors in connection with the commencement or filing of such proceeding prior to such filing.
(d)    In addition to the foregoing and notwithstanding the limitation on recourse liability set forth in subsection (b) above, Guarantor shall be liable for any reasonable out-of-pocket losses, costs, claims, expenses or other liabilities incurred by Buyer arising out of or attributable to:
(i)    fraud or intentional misrepresentation by or on behalf of Seller, Member or Guarantor in connection with the execution and the delivery of this Guaranty, the Repurchase Agreement, the Letter Agreement or any of the other Transaction Documents, or any certificate, report, financial statement or other instrument or document furnished to Buyer at the time of the closing of the Repurchase Agreement or during the term of the Repurchase Agreement;
(ii)    any material breach by Seller or Member of the single-purpose entity covenants set forth in Section 12 of the Repurchase Agreement which results in the substantive consolidation of Master Seller, any Series Seller and/or Member with any other Person; 

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(iii)    the misappropriation or misapplication by Seller, Guarantor or any of their respective Affiliates of any Income received with respect to the Purchased Loans in violation of the Transaction Documents; and
(iv)    any material breach of any representations and warranties by Seller or Guarantor, or any of their respective Affiliates, of any representations and warranties in the Transaction Documents relating to Environmental Laws or Hazardous Materials, or any indemnity for costs incurred in connection with the violation of any Environmental Law, the correction of any environmental condition, or the removal of any Hazardous Materials, in each case in any way affecting any Mortgaged Property or any of the Purchased Loans.
(e)    Nothing herein shall be deemed to be a waiver of any right which Buyer may have under Section 506(a), 506(b), 1111(b) or any other provision of the Bankruptcy Code or any other Bankruptcy Law to file a claim for the full amount of the indebtedness secured by the Repurchase Agreement or to require that all collateral shall continue to secure all of the indebtedness owing to the Buyer in accordance with the Repurchase Agreement or any other Transaction Documents.
(f)    Guarantor further agrees to pay any and all reasonable out-of-pocket expenses (including, without limitation, all reasonable out-of-pocket fees and disbursements of counsel) which may be paid or actually incurred by Buyer in enforcing, or obtaining advice of counsel in respect of, any rights with respect to, or collecting, any or all of the Guaranteed Obligations and/or enforcing any rights with respect to, or collecting against, Guarantor under this Guaranty after the occurrence and during the continuance of a Default or Event of Default.  This Guaranty shall remain in full force and effect until the Guaranteed Obligations are paid in full, notwithstanding that from time to time prior thereto Seller may be free from any Guaranteed Obligations.

(g)    No payment or payments made by Seller, Member or any other Person or received or collected by Buyer from Seller, Member or any other Person by virtue of any action or proceeding or any set-off or appropriation or application, at any time or from time to time, in reduction of or in payment of the Guarantied Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of Guarantor hereunder which shall, notwithstanding any such payment or payments, remain liable for the amount of the Guarantied Obligations until the Guarantied Obligations are paid in full; provided, however, that Guarantor’s liability under Section 2 of this Guaranty shall be reduced by the amount of any payments actually received by Buyer from Seller, Member or any other Person in payment of the Repurchase Obligations (but any amounts received shall not reduce the Guarantied Obligations due under Section 2(b) of this Guaranty unless and until the aggregate Repurchase Price has been repaid to an amount less than the amount due under Section 2(b)).
(h)    Guarantor agrees that whenever, at any time, or from time to time, Guarantor shall make any payment to Buyer on account of Guarantor’s liability hereunder, Guarantor will notify Buyer in writing that such payment is made under this Guaranty for such purpose.
3.    Nature of Liability.  Guarantor’s liability under this Guaranty is primary and not secondary.  
4.    Changes in Transaction Documents.  Without notice to, or consent by, Guarantor, and in Buyer’s sole and absolute discretion and without prejudice to Buyer or in any way limiting or reducing Guarantor’s liability under this Guaranty, Buyer may: (a) grant extensions of time, renewals or other indulgences or modifications to Seller or any other party under any of the Transaction Document

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(s), (b) change, amend or modify any Transaction Document(s), (c) authorize the sale, exchange, release or subordination of any Security, (d) accept or reject additional Security, (e) discharge or release any party or parties liable under the Transaction Documents, (f) foreclose or otherwise realize on any Security, or attempt to foreclose or otherwise realize on any Security in accordance with the terms of the Repurchase Agreement, whether such attempt is successful or unsuccessful, (g) accept or make compositions or other arrangements or file or refrain from filing a claim in any Insolvency Proceeding, (h) enter into other Transactions with Seller in such amount(s) and at such time(s) as Buyer may determine, (i) credit payments in such manner and order of priority to Repurchase Prices, or other obligations as Buyer may determine in its discretion in accordance with the terms of the Repurchase Agreement, and (j) otherwise deal with Seller and any other party related to the Transactions or any Security as Buyer may determine in its sole and absolute discretion.  Without limiting the generality of the foregoing, Guarantor’s liability under this Guaranty shall continue even if Buyer alters any obligations under the Transaction Documents in any respect or Buyer’s or Guarantor’s remedies or rights against Seller are in any way impaired or suspended without Guarantor’s consent.  If Buyer performs any of the actions described in this paragraph, then Guarantor’s liability shall continue in full force and effect even if Buyer’s actions impair, diminish or eliminate Guarantor’s subrogation, contribution, or reimbursement rights (if any) against Seller, or otherwise adversely affect Guarantor or expand Guarantor’s liability hereunder.
5.    Certain Financial Covenants. 
Guarantor covenants that:
(a)    At no time will NS Income II’s Liquidity fall below the greater of (i) $10,000,000 and (ii) ten percent (10%) of the Maximum Amount; provided, however, in the event that Guarantor has entered into or shall enter into or amend a repurchase agreement, warehouse facility, credit facility or other similar arrangement for the financing of commercial mortgage loans of a comparable or shorter term nature with any person, which by its terms requires Guarantor (or any of them) to maintain a minimum level of Liquidity in excess of the amount required above (a “More Favorable Agreement”), Guarantor shall promptly notify Buyer of the terms of such More Favorable Agreement and, at Buyer’s written request, the parties shall enter into an amendment of this Section 5 increasing the minimum required Liquidity amount to such higher amount required in such More Favorable Agreement and shall otherwise amend any applicable terms of the Repurchase Agreement, the other Transaction Documents and this Guaranty as necessary to reflect such increase in the required Liquidity amount, which amendment(s) shall be in form and substance reasonably acceptable to each of the parties.
(b)    At no time will NS Income II’s Total Equity be less than the greater of (i) $100,000,000 and (ii) the product of (A) the then-current Maximum Amount (as defined in the Letter Agreement) multiplied by (B) one and one-half (1.5).
(c)    At no time will NS Income II’s Adjusted Leverage Ratio be more than 2.5:1.0.
6.    Nature of Guaranty.  Guarantor’s liability under this Guaranty is a guaranty of payment of the Guarantied Obligations, and is not a guaranty of collection or collectability.  Guarantor’s liability under this Guaranty is not conditioned or contingent upon the genuineness, validity, regularity or enforceability of any of the Transaction Documents.  Guarantor’s liability under this Guaranty is a continuing, absolute, and unconditional obligation under any and all circumstances whatsoever (except as expressly stated, if at all, in this Guaranty), without regard to the validity, regularity or enforceability of any of the Guarantied Obligations.  Guarantor acknowledges that Guarantor is fully obligated under this Guaranty even if Seller had no liability at the time of execution of the Transaction Documents or 

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later ceases to be liable under any Transaction Document, whether pursuant to Insolvency Proceedings by or against Seller or otherwise (other than payment in full of the Guarantied Obligations).  Guarantor shall not be entitled to claim, and irrevocably covenants not to raise or assert, any defenses against any Guarantied Obligation that would or might be available to Seller, other than actual payment and performance of such Guarantied Obligations in full  in accordance with their terms.  Guarantor waives any right to compel Buyer to proceed first against Seller or any Security before proceeding against Guarantor.  Guarantor agrees that if any of the Guarantied Obligations are or become void or unenforceable against Seller (because of inadequate consideration, lack of capacity, Insolvency Proceedings, or for any other reason), then Guarantor’s liability under this Guaranty shall continue in full force with respect to all Guarantied Obligations as if they were and continued to be legally enforceable, all in accordance with their terms and, in the case of Insolvency Proceedings, before giving effect to the Insolvency Proceedings. Without limiting the generality of the foregoing, if the Guarantied Obligations are “nonrecourse” as to Seller or Seller’s liability for the Guarantied Obligations is otherwise limited in some way, Guarantor nevertheless intends to be fully liable, to the full extent of all of Guarantor’s assets, with respect to all the Guarantied Obligations, even though Seller’s liability for the Guarantied Obligations may be less limited in scope or less burdensome.  Guarantor waives any defense that might otherwise be available to Guarantor based on the proposition that a guarantor’s liability cannot exceed the liability of the principal.  Guarantor waives any defenses to this Guaranty arising or purportedly arising from the manner in which Buyer disburses the Purchase Price for any Purchased Loan to Seller or otherwise, or any waiver of the terms of any Transaction Document by Buyer or other failure of Buyer to require full compliance with the Transaction Documents.  Guarantor’s liability under this Guaranty shall continue until all sums due under the Transaction Documents have been paid in full and all other performance required under the Transaction Documents has been rendered in full, except as expressly provided otherwise in this Guaranty.  Guarantor’s liability under this Guaranty shall not be limited or affected in any way by any impairment or any diminution or loss of value of any Security whether caused by (a) hazardous substances, (b) Buyer’s failure to perfect a security interest in any Security, (c) any disability or other defense(s) of Seller, or (d) any breach by Seller of any representation or warranty contained in any Transaction Document.
7.    Waivers of Rights and Defenses.  Guarantor waives any right to require Buyer to (a) proceed against Seller, (b) proceed against or exhaust any Security, or (c) pursue any other right or remedy for Guarantor’s benefit.  Guarantor agrees that Buyer may proceed against Guarantor with respect to the Guarantied Obligations without taking any actions against Seller and without proceeding against or exhausting any Security.  Guarantor agrees that Buyer may unqualifiedly exercise in its sole discretion (or may waive or release, intentionally or unintentionally) any or all rights and remedies available to it against Seller without impairing Buyer’s rights and remedies in enforcing this Guaranty, under which Guarantor’s liabilities shall remain independent and unconditional.  Guarantor agrees and acknowledges that Buyer’s exercise (or waiver or release) of certain of such rights or remedies may affect or eliminate Guarantor’s right of subrogation or recovery against Seller (if any) and that Guarantor may incur a partially or totally nonreimbursable liability in performing under this Guaranty.  Guarantor has assumed the risk of any such loss of subrogation rights, even if caused by Buyer’s acts or omissions.  If Buyer’s enforcement of rights and remedies, or the manner thereof, limits or precludes Guarantor from exercising any right of subrogation that might otherwise exist, then the foregoing shall not in any way limit Buyer’s rights to enforce this Guaranty.  Without limiting the generality of any other waivers in this Guaranty, Guarantor expressly waives any statutory or other right (except as set forth herein) that Guarantor might otherwise have to: (i) limit Guarantor’s liability after a nonjudicial foreclosure sale to the difference between the Guarantied Obligations and the fair market value of the property or interests sold at such nonjudicial foreclosure sale or to any other extent, (ii) otherwise limit Buyer’s right to recover a deficiency judgment after any foreclosure sale, or (iii) require Buyer to exhaust its Security before Buyer may obtain a personal judgment for any deficiency.  Any proceeds of a foreclosure or 

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similar sale may be applied first to any obligations of Seller that do not also constitute Guarantied Obligations within the meaning of this Guaranty.  Guarantor acknowledges and agrees that any nonrecourse or exculpation provided for in any Transaction Document, or any other provision of a Transaction Document limiting Buyer’s recourse to specific Security or limiting Buyer’s right to enforce a deficiency judgment against Seller or any other person, shall have absolutely no application to Guarantor’s liability under this Guaranty.  To the extent that Buyer collects or receives any sums or payments from Seller or any proceeds of a foreclosure or similar sale, Buyer shall have the right, but not the obligation, to apply such amounts first to that portion of Seller’s indebtedness and obligations to Buyer (if any) that is not covered by this Guaranty, regardless of the manner in which any such payments and/or amounts are characterized by the person making the payment.  
8.    Additional Waivers.  Guarantor waives diligence and all demands, protests, presentments and notices of every kind or nature, including notices of protest, dishonor, nonpayment, acceptance of this Guaranty and the creation, renewal, extension, modification or accrual of any of the Guarantied Obligations.  Guarantor further waives the right to plead any and all statutes of limitations as a defense to Guarantor’s liability under this Guaranty or the enforcement of this Guaranty.  No failure or delay on Buyer’s part in exercising any power, right or privilege under this Guaranty shall impair or waive any such power, right or privilege.
9.    Other Actions Taken or Omitted.  Notwithstanding any other action taken or omitted to be taken with respect to the Transaction Documents, the Guarantied Obligations, or the Security, whether or not such action or omission prejudices Guarantor or increases the likelihood that Guarantor will be required to pay the Guarantied Obligations pursuant to the terms hereof, it is the unambiguous and unequivocal intention of Guarantor that Guarantor shall be obligated to pay the Guarantied Obligations when due, notwithstanding any occurrence, circumstance, event, action, or omission whatsoever, whether contemplated or uncontemplated, and whether or not otherwise or particularly described herein, which obligation shall be deemed satisfied as to any Guaranteed Obligation only upon the full and final payment and satisfaction of such Guarantied Obligations.
10.    No Duty to Prove Loss.  To the extent that Guarantor at any time incurs any liability under this Guaranty following the occurrence of an Event of Default, Guarantor shall pay Buyer (to be applied on account of the Guarantied Obligations) the amount provided for in this Guaranty, without any requirement that Buyer demonstrate that the Security is inadequate for the Transactions; or that Buyer has currently suffered any loss; or that Buyer has otherwise exercised (to any degree) or exhausted any of Buyer’s rights or remedies with respect to Seller or any Security. 
11.    Full Knowledge.  Guarantor acknowledges, represents, and warrants that Guarantor has had a full and adequate opportunity to review the Transaction Documents, the transactions contemplated by the Transaction Documents, and all underlying facts relating to such transactions.  Guarantor represents and warrants that Guarantor fully understands: (a) the remedies Buyer may pursue against Seller and/or Guarantor in the event of a default under the Transaction Documents, (b) the value (if any) and character of any Security, and (c) Seller’s financial condition and ability to perform under the Transaction Documents.  Guarantor agrees to keep itself fully informed regarding all aspects of the foregoing and the performance of Seller’s obligations to Buyer, it being acknowledged that Buyer has no duty, whether now or in the future, to disclose to Guarantor any such information.  At any time provided for in the Transaction Documents, Guarantor agrees and acknowledges that an Insolvency Proceeding affecting Guarantor, or other actions or events relating to Guarantor (including Guarantor’s failure to comply with the financial covenants in Section 5 of this Guaranty), in each case, as set forth in the Transaction Documents, may be event(s) of default under the Transaction Documents.

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12.    Representations and Warranties.  Each Guarantor acknowledges, represents and warrants as of the date hereof and as of each Purchase Date as follows, and acknowledges that Buyer is relying upon the following acknowledgments, representations, and warranties by Guarantor in entering into the Transactions:
(a)    Due Execution; Enforceability.  The Guaranty has been duly executed and delivered by Guarantor, for good and valuable consideration.  The Guaranty constitutes the legal, valid and binding obligations of Guarantor, enforceable against Guarantor in accordance with its respective terms subject to bankruptcy, insolvency, and other limitations on creditors’ rights generally and to equitable principles.
(b)    No Conflict.  The execution, delivery, and performance of this Guaranty will not conflict with or result in a breach of any of the terms, conditions or provisions of (i) the organizational documents of Guarantor, (ii) any contractual obligation to which Guarantor is now a party or by which it is otherwise bound or to which the assets of Guarantor are subject or constitute a default thereunder, or result in the creation or imposition of any Lien upon any of the assets of Guarantor thereunder, other than pursuant to this Guaranty, (iii) any judgment or order, writ, injunction, decree or demand of any court applicable to Guarantor, or (iv) any applicable requirement of law, in each case under the foregoing clauses (ii), (iii) and (iv), to the extent that such conflict or breach would have a material adverse effect upon Guarantor’s ability to perform its obligations hereunder.  Guarantor has all necessary licenses, permits and other consents from Governmental Authorities necessary for the performance of its obligations under this Guaranty.
(c)    Litigation; Requirements of Law.  There is no action, suit, proceeding, investigation, or arbitration pending or, to the best knowledge of Guarantor, threatened against Seller, Guarantor or any of their respective assets, nor is there any action, suit, proceeding, investigation, or arbitration pending or, to the best knowledge of Guarantor, threatened against Guarantor which may result in any material adverse change in the business, operations, financial condition, properties, or assets of Seller or Guarantor, or which may have an adverse effect on the validity of the Guaranty or the Transaction Documents or the Purchased Loans or any action taken or to be taken in connection with the obligations of Guarantor under the Guaranty or of Seller under any of the Transaction Documents.  Guarantor is in compliance in all material respects with all requirements of law applicable to Guarantor.  Neither Seller nor Guarantor is in default in any material respect with respect to any judgment, order, writ, injunction, decree, rule or regulation of any arbitrator or Governmental Authority.
(d)    No Third Party Consent Required.  No consent of any person (including creditors or partners, members, stockholders, or other owners of Guarantor), except those consents provided as of this date hereof, is required in connection with Guarantor’s execution of this Guaranty or performance of Guarantor’s obligations under this Guaranty.  Guarantor’s execution of, and obligations under, this Guaranty are not contingent upon any consent, license, permit, approval, or authorization of, exemption by, notice or report to, or registration, filing, or declaration with, any governmental authority, bureau, or agency, whether local, state, federal, or foreign.
(e)    Authority and Execution.  Guarantor is duly formed and validly existing under the laws of the State of its formation and has full power, authority, and legal right to execute, deliver and perform its obligations under this Guaranty.  Guarantor has taken all necessary organizational and legal action to authorize this Guaranty.
(f)    No Representations by Buyer.  Guarantor delivers this Guaranty based solely upon Guarantor’s own independent investigation and based in no part upon any representation or statement by Buyer.

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13.    No Misstatements.  No information, exhibit, report or certificate furnished by Guarantor to Buyer in connection with the Transactions or any Transaction Document contains any material misstatement of fact nor omits any fact necessary to make such information, exhibit, report, or certificate not materially misleading.
14.    Reimbursement and Subrogation Rights.  Except to the extent that Buyer notifies Guarantor to the contrary in writing from time to time:
(a)    General Deferral of Reimbursement.  Except to the extent set forth in Section 14(b) below, Guarantor waives any right to be reimbursed by Seller for any payment(s) made by Guarantor on account of the Guarantied Obligations, unless and until all Guarantied Obligations have been paid in full and all periods within which such payments may be set aside or invalidated have expired.  Guarantor acknowledges that Guarantor has received adequate consideration for execution of this Guaranty by virtue of Buyer’s entering into the Transactions (which benefit Guarantor, as a direct or indirect owner or principal of Seller) and Guarantor does not require or expect, and is not entitled to, any other right of reimbursement against Seller as consideration for this Guaranty.
(b)    Deferral of Subrogation and Contribution.  Guarantor agrees that it shall not assert a right of subrogation against Seller or Buyer or against any Security unless and until: (a) such right of subrogation does not violate (or otherwise produce any result adverse to Buyer under) any applicable law, including any bankruptcy or insolvency law; (b) all amounts due under the Transaction Documents have been paid in full and all other performance required under the Transaction Documents has been rendered in full to Buyer; (c) all periods within which such payment may be set aside or invalidated have expired; and (d) Buyer has released, transferred or disposed of all of its right, title and interest in all Security (such deferral of Guarantor’s subrogation and contribution rights, the “Subrogation Deferral”).
(c)    Effect of Invalidation.  To the extent that a court of competent jurisdiction determines that Guarantor’s Subrogation Deferral is void or voidable for any reason, Guarantor agrees, notwithstanding any acts or omissions by Buyer that Guarantor’s rights of subrogation against Seller or Buyer and Guarantor’s right of subrogation against any Security shall at all times be junior and subordinate to Buyer’s rights against Seller and to Buyer’s right, title and interest in such Security.
(d)    Claims in Insolvency Proceeding.  Guarantor shall not file any claim in any Insolvency Proceeding by or against Seller or Member unless Guarantor simultaneously assigns and transfers such claim to Buyer, without consideration, pursuant to documentation fully satisfactory to Buyer.  Guarantor shall automatically be deemed to have assigned and transferred such claim to Buyer whether or not Guarantor executes documentation to such effect, and by executing this Guaranty hereby authorizes Buyer (and grants Buyer a power of attorney coupled with an interest, and hence irrevocable) to execute and file such assignment and transfer documentation on Guarantor’s behalf.  Buyer shall have the sole right to vote, receive distributions, and exercise all other rights with respect to any such claim; provided, however, that if and when the Guarantied Obligations have been paid in full Buyer shall release to Guarantor any further payments received on account of any such claim, and shall assign and transfer such claim back to Guarantor.
15.    Waiver Disclosure.  Guarantor acknowledges that pursuant to this Guaranty, Guarantor has waived a substantial number of defenses that Guarantor might otherwise under some circumstance(s) be able to assert against Guarantor’s liability to Buyer.  Guarantor acknowledges and confirms that Guarantor has substantial experience as a sophisticated participant in substantial commercial real estate transactions (including financings) and is fully familiar with the legal consequences of signing this or any other guaranty.  In addition, Guarantor is represented by competent 

10

counsel.  Guarantor has consulted with such counsel and understands the nature, scope, and effect of the waivers contained in this Guaranty (a “Waiver Disclosure”).  In the alternative, Guarantor has knowingly and intentionally waived obtaining a Waiver Disclosure.  Accordingly Guarantor does not require or expect Buyer to provide a Waiver Disclosure.  It is not necessary for Buyer or this Guaranty to provide or set forth any Waiver Disclosure, notwithstanding any principles of law to the contrary.  Nevertheless, Guarantor specifically acknowledges that Guarantor is fully aware of the nature, scope, and effect of all waivers contained in this Guaranty, all of which have been fully disclosed to Guarantor.  Guarantor acknowledges that as a result of the waivers contained in this Guaranty:
(a)    Actions by Buyer.  Buyer will be able to take a wide range of actions relating to Seller, the Transactions, and the Transaction Documents, all without Guarantor’s consent or notice to Guarantor.  Guarantor’s full and unconditional liability under this Guaranty will continue whether or not Guarantor has consented to such actions.
(b)    Interaction with Seller Liability.  Guarantor shall be fully liable for all Guarantied Obligations even if the Transaction Documents are otherwise invalid, unenforceable, or subject to defenses available to Seller.  Guarantor acknowledges that Guarantor’s full and unconditional liability under this Guaranty (with respect to the Guarantied Obligations as if they were fully enforceable against Seller) will continue notwithstanding any such limitations on or impairment of Seller’s liability.
(c)    Timing of Enforcement.  Buyer will be able to enforce this Guaranty against Guarantor even though Buyer might also have available other rights and remedies that Buyer could conceivably enforce against the Security or against other parties.  As a result, Buyer may require Guarantor to pay the Guarantied Obligations earlier than Guarantor would prefer to pay the Guarantied Obligations, including immediately upon the occurrence of an Event of Default by Seller.  Guarantor will not be able to assert against Buyer various defenses, theories, excuses, or procedural requirements that might otherwise force Buyer to delay or defer the enforcement of this Guaranty against Guarantor. Guarantor acknowledges that Guarantor intends to allow Buyer to enforce the Guaranty against Guarantor in such manner.  All of Guarantor’s assets will be available to satisfy Buyer’s claims against Guarantor under this Guaranty.
(d)    Continuation of Liability.  Guarantor’s liability for the Guarantied Obligations shall continue at all times until the Guarantied Obligations have actually been paid in full.
16.    Buyer’s Disgorgement of Payments.  Upon payment of all or any portion of the Guarantied Obligations, Guarantor’s obligations under this Guaranty shall continue and remain in full force and effect at all times until the Guarantied Obligations have actually been paid in full, if all or any part of such payment is, pursuant to any Insolvency Proceeding or otherwise, avoided or recovered directly or indirectly from Buyer as a preference, fraudulent transfer, or otherwise, irrespective of (a) any notice of revocation given by Guarantor prior to such avoidance or recovery, or (b) payment in full of the Transactions.  Subject to the foregoing, Guarantor’s liability under this Guaranty shall continue until all periods have expired within which Buyer could (on account of any Insolvency Proceedings, whether or not then pending, affecting Seller or any other person) be required to return, repay, or disgorge any amount paid at any time on account of the Guarantied Obligations.
17.    Financial Information; Notice of Default and Litigation.  To the extent not previously delivered by Seller, Guarantor shall deliver to Buyer the financial and reporting information described in and required by Section 11(i) of the Repurchase Agreement with respect to Guarantor on or before the dates set forth therein.  To the extent that Seller has not previously provided notice of same to Buyer, Guarantor shall promptly, and in any event (a) within three (3) Business Days after Guarantor’s knowledge thereof, notify Buyer of any default on the part of Guarantor under any Indebtedness which 

11

could give rise to an Event of Default, and (b) within three (3) Business Days after service of process or Guarantor’s knowledge thereof, notify Buyer of the commencement, or threat in writing of, any action, suit, proceeding, investigation or arbitration involving Guarantor or any of its Affiliates or assets or any judgment in any action, suit, proceeding, investigation or arbitration involving Guarantor or any of its Affiliates or assets, which in any of the foregoing cases (i) relates to any Purchased Loan, (ii) questions or challenges the validity or enforceability of any Transaction or Transaction Document, (iii) makes a claim or claims against Guarantor in an aggregate amount in excess of $5,000,000 or (iv) that, individually or in the aggregate, if adversely determined, could be reasonably likely to have a Material Adverse Effect.
18.    No Right to Set Off.  Except as otherwise expressly provided in this Section 18 or as provided in Section 22(d) of the Repurchase Agreement, Buyer, solely in its capacity as Buyer under the Transaction Documents, hereby waives any right of set-off it may have or to which it may be or become entitled under the Transaction Documents or, solely to the extent related to the Transaction Documents, requirements of law, against Guarantor. Notwithstanding the foregoing, upon the occurrence and during the continuance of any Event of Default, Buyer is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all amounts owing by Buyer or any Affiliate of Buyer under any Affiliated Hedging Transaction to or for the credit or the account of Guarantor or its Affiliates against any and all of the obligations of Guarantor now or hereafter existing under this Guaranty (or against any obligations of Guarantor or its Affiliates under any other Affiliated Hedging Transactions), irrespective of whether or not Buyer shall have made any demand under this Guaranty (or Buyer or its Affiliate shall have made any demand under any such other Affiliated Hedging Transaction) and although such obligations may be contingent and unmatured.  Buyer agrees promptly to notify Guarantor after any such set-off and application, provided that the failure to give such notice shall not affect the validity of such set-off and application or this Guaranty.  The rights of Buyer under this Section 18 are in addition to other rights and remedies (including, without limitation, other rights to set-off) which Buyer may have.
19.    Consent to Jurisdiction.  Guarantor agrees that any Proceeding to enforce this Guaranty may be brought in any state or federal court located in New York City, New York.  By executing this Guaranty, Guarantor irrevocably accepts and submits to the exclusive personal jurisdiction of each of the aforesaid courts, generally and unconditionally with respect to any such Proceeding.  Guarantor agrees not to assert any basis for transferring jurisdiction of any such proceeding to another court.  Guarantor further agrees that a final judgment against Guarantor in any Proceeding shall be conclusive evidence of Guarantor’s liability for the full amount of such judgment.
20.    Merger; No Conditions; Amendments.  This Guaranty and documents referred to herein contain the entire agreement among the parties with respect to the matters set forth in this Guaranty.  This Guaranty supersedes all prior agreements among the parties with respect to the matters set forth in this Guaranty.  No course of prior dealings among the parties, no usage of trade, and no parol or extrinsic evidence of any nature shall be used to supplement, modify, or vary any terms of this Guaranty.  This Guaranty is unconditional.  There are no unsatisfied conditions to the full effectiveness of this Guaranty.  No terms or provisions of this Guaranty may be changed, waived, revoked, or amended without Buyer’s written agreement.  If any provision of this Guaranty is determined to be unenforceable, then all other provisions of this Guaranty shall remain fully effective.
21.    Enforcement.  Guarantor acknowledges that this Guaranty is an “instrument for the payment of money only,” within the meaning of New York Civil Practice Law and Rules Section 3213.  In the event of any Proceeding between Seller or Guarantor and Buyer, including any Proceeding in which Buyer enforces or attempts to enforce this Guaranty or the Transactions against Seller or 

12

Guarantor, or in the event of any Guarantor Litigation, Guarantor shall reimburse Buyer for all Costs of such Proceeding.
22.    Fundamental Changes.  Guarantor shall not wind up, liquidate, or dissolve its affairs or enter into any transaction of merger or consolidation, or sell, lease, or otherwise dispose of (or agree to do any of the foregoing) all or substantially all of its property or assets, without Buyer’s prior written consent, except that so long as no Event of Default exists or would result therefrom, Guarantor may merge into or consolidate with another Person so long as (a) such merger or consolidation would not result in a Change of Control, (b) the continuing or surviving Person is the Guarantor, and (c) immediately following such merger or consolidation, the majority of the members of the board of directors (or the applicable equivalent) of the continuing or surviving Person are the same as the majority of the members of the board of directors (or applicable equivalent) of the Guarantor immediately prior to such merger or consolidation.
23.    Further Assurances.  Guarantor shall execute and deliver such further documents, and perform such further acts, as Buyer may reasonably request to achieve the intent of the parties as expressed in this Guaranty, provided in each case that any such documentation is consistent with this Guaranty and with the Transaction Documents.
24.    Certain Entities.  If Seller or Guarantor is a partnership, limited liability company, or other unincorporated association, then: (a) Guarantor’s liability shall not be impaired by changes in the name or composition of Seller or Guarantor; and (b) the withdrawal or removal of any partner(s) or member(s) of Seller or Guarantor shall not diminish Guarantor’s liability or (if Guarantor is a partnership) the liability of any withdrawing general partners of Guarantor.
25.    Counterparts.  This Guaranty may be executed in counterparts each of which so executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument.  Delivery by telecopier or other electronic transmission (including a .pdf e-mail transmission) of an executed counterpart of a signature page to this Guaranty shall be effective as delivery of an original executed counterpart of this Guaranty.
26.    WAIVER OF TRIAL BY JURY.  GUARANTOR WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING FROM OR RELATING TO THIS GUARANTY OR THE TRANSACTION DOCUMENTS OR ANY OBLIGATION(S) OF GUARANTOR HEREUNDER OR UNDER THE TRANSACTION DOCUMENTS.
27.    Miscellaneous.
(a)    Assignability.  Buyer may assign the rights under this Guaranty (in whole or in part) together with any one or more of the Transaction Documents in accordance with Section 18 of the Repurchase Agreement without in any way affecting Guarantor’s liability.  Upon request in connection with any such assignment Guarantor shall deliver such documentation as Buyer shall reasonably request.  This Guaranty shall benefit Buyer and its successors and assigns and shall bind Guarantor and its heirs, executors, administrators, successors and assigns.  Guarantor may not assign this Guaranty in whole or in part without the prior written consent of Buyer.
(b)    Notices.  All notices, requests, and demands to be made under this Guaranty shall be given in writing and shall be effective for all purposes if hand delivered or sent by (a) hand delivery, with proof of attempted delivery, (b) certified or registered United States mail, postage prepaid, (c) expedited prepaid delivery service, either commercial or United States Postal Service, with proof of attempted delivery, or (d) by email provided that such email notice must also be delivered by 

13

one of the means set forth in (a), (b) or (c) above, to the address set forth in Annex I attached to this Guaranty or at such other address and person as shall be designated from time to time by any party hereto, as the case may be, in a written notice to the other parties hereto in the manner provided for in this Section 27(b).  A notice shall be deemed to have been given: (a) in the case of hand delivery, at the time of delivery, (b) in the case of registered or certified mail, when delivered on a Business Day, (c) in the case of expedited prepaid delivery upon delivery on a Business Day, or (d) in the case of email, upon delivery such email; provided that (i) such email notice was also delivered by one of the means set forth in (a), (b) or (c) above (which may arrive after such email), and (ii) the transmitting party did not receive an electronic notice of a transmission failure.  A party receiving a notice which does not comply with the technical requirements for notice under this Section may elect to waive any deficiencies and treat the notice as having been properly given.
(c)    Interpretation.  This Guaranty shall be enforced and interpreted according to the laws of the State, including Section 5-1401 of the General Obligations Law, but otherwise disregarding its rules on conflicts of laws.  The word “include” and its variants shall be interpreted in each case as if followed by the words “without limitation.”
28.    Business Purposes.  Guarantor acknowledges that this Guaranty is executed and delivered for business and commercial purposes, and not for personal, family, household, consumer, or agricultural purposes.  Guarantor acknowledges that Guarantor is not entitled to, and does not require the benefits of, any rights, protections, or disclosures that would or may be required if this Guaranty were given for personal, family, household, consumer, or agricultural purposes.  Guarantor acknowledges that none of Guarantor’s obligation(s) under this Guaranty constitute(s) a “debt” within the meaning of the United States Fair Debt Collection Practices Act, 15 U.S.C. § 1692a(5), and accordingly compliance with the requirements of such Act is not required if Buyer (directly or acting through its counsel) makes any demand or commences any action to enforce this Guaranty.
29.    No Third-Party Beneficiaries.  This Guaranty is executed and delivered for the benefit of Buyer and its successors and assigns, and is not intended to benefit any third party.
30.    CERTAIN ACKNOWLEDGMENTS BY GUARANTOR.  GUARANTOR ACKNOWLEDGES THAT BEFORE EXECUTING THIS GUARANTY: (A) GUARANTOR HAS HAD THE OPPORTUNITY TO REVIEW IT WITH AN ATTORNEY OF GUARANTOR’S CHOICE; (B) BUYER HAS RECOMMENDED TO GUARANTOR THAT GUARANTOR OBTAIN SEPARATE COUNSEL, INDEPENDENT OF SELLER’S COUNSEL, REGARDING THIS GUARANTY; AND (C) GUARANTOR HAS CAREFULLY READ THIS GUARANTY AND UNDERSTOOD THE MEANING AND EFFECT OF ITS TERMS, INCLUDING ALL WAIVERS AND ACKNOWLEDGMENTS CONTAINED IN THIS GUARANTY AND THE FULL EFFECT OF SUCH WAIVERS AND THE SCOPE OF GUARANTOR’S OBLIGATIONS UNDER THIS GUARANTY.
31.    Joint and Several.  The obligations of each Guarantor hereunder are joint and several.

[NO FURTHER TEXT ON THIS PAGE]

14

IN WITNESS WHEREOF, Guarantor has duly executed this Guaranty as of the day first written above.
	
		
	 
	GUARANTOR:

	 
	

NORTHSTAR REAL ESTATE INCOME II, INC.,  
a Maryland corporation 

By: /s/ Ronald J. Lieberman
Name:  Ronald J. Lieberman
Title:   Executive Vice President, General Counsel & Secretary

	 
	NORTHSTAR REAL ESTATE INCOME OPERATING PARTNERSHIP II, LP,  
a Delaware limited partnership

  By:  NorthStar Real Estate Income II, Inc., a Maryland 
         corporation, its general partner 

By: /s/ Ronald J. Lieberman
Name:  Ronald J. Lieberman
Title:   Executive Vice President, General Counsel & Secretary

15Exhibit 10.1

 

MASTER GEOPHYSICAL DATA-USE LICENSE

(Multiple Transaction)

 

This Master Geophysical Data-Use License (the
“License”) is dated effective this 12TH day of June, 2014, between Seismic Exchange, Inc., a Louisiana corporation
(“Licensor”) and Virtus Oil and Gas Corp., a Nevada corporation (“Licensee”).

 

In consideration of the mutual promises contained
in this License and other good and valuable consideration, Licensor agrees to grant to Licensee and Licensee agrees to accept a
non-exclusive license to use certain Data from time to time upon the terms and conditions set forth in this License. Upon each
occasion Licensor licenses specific Data to Licensee, the Parties will execute a supplemental agreement (“Supplement”)
to this License. The Supplement will be in substantially the form attached to this License as Exhibit A and will identify the specific
Data licensed, the consideration to be paid by Licensee, and other particulars concerning the license transaction to which the
Parties mutually agree.

 

 

	1.	 	 Definitions: Capitalized terms used in this License have
the following meanings:

 

	 	1.1		“Acquirer(s)” means Third Parties that acquire, either directly
or indirectly, Ownership or Control, whether accomplished by statutory merger, consolidation or stock purchase, or an asset sale
representing one hundred percent (100%) of the oil and gas assets of Licensee.

 

	 	1.2		“Confidentiality Agreement(s)” means a written agreement between
Licensee and a Third Party to maintain the Data and Derivatives in strict confidence as provided herein and not to Show or transfer
the Data, Derivatives, or any analyses or interpretations thereof to any Third Party.

 

	 	1.3		“Consultant(s)” means Third Parties which are bona fide, recognized
consultants in the geophysical industry engaged by Licensee to interpret, reprocess, or make other technical studies of the Data
for the sole use and benefit of Licensee. Licensee’s Consultants may not be Prospective Partners, Partners, Prospective
Acquirers or Acquirers, marketers of geophysical data, or any individual or organization that owns a working interest position
in/under any of the area (land acreage or marine blocks) covered by the Data. Additionally, any individual or organization that
is qualified to be an operating rights holder or operator (under federal regulations) shall be excluded from the definition of
Consultant(s).

 

	 	1.4		“Control(s)” means the ability to direct, manage and/or dictate
the actions of and/or determine the management of the entity in question whether by the election of members of the Board of Directors
or other governing body of such entity, or by having a majority number of members of such governing body or by other means.

 

	 	1.5		“Data” means geophysical and geological information, regardless
of the form or medium on which it is displayed or stored. Data also includes interpretations created by Licensor for license to
Third Parties. Specific Data subject to this License is more particularly described in each Supplement.

 

	 	1.6		“Data Owner” means the entity that holds actual title and ownership
interest in and to the Data and is identified specifically on the Supplement(s).

 

	 	1.7		“Derivative(s)” means all processed and reprocessed Data regardless
of the form or medium on which it is displayed or stored whether produced by Licensee or Third Parties.
	 	 	 	 
	 	1.8	 	“License” means this agreement as supplemented by each Supplement.
	 	 	 	 
	 	1.9	 	“Licensee” is defined in the first paragraph of this License.
	 	 	 	 
	 	1.10	 	“Licensor” is defined in the first paragraph of this License.

 

	 	1.11		“Licensee Interpretation(s)” means products created by Licensee
or its Consultants that are based upon space and time location of the Data and/or Derivatives but do not directly incorporate
actual Data or Derivative values or magnitudes.

 

	 	1.12		“Ownership” or “Owns” means, in the case of a corporation
or other entity that issues voting securities, greater than 50% of the outstanding common stock or other voting securities and,
in the case of a partnership trust or other entity, greater than 50% of the interest in the profits thereof.
	 	 	 	 
	 	1.13	 	“Parties” means Licensor and Licensee. “Party”
means either Licensor or Licensee.

 

	 	1.14		“Partner(s)” means Third Parties contractually related to Licensee
in Third Party Business Transactions (whether or not such relationships constitute a partnership at law).

 

	 	1.15		“Processor(s)” means Third Parties which are bona fide recognized
contractors that are engaged by Licensee to provide reformatting or reprocessing services for geophysical and geological data
for the sole use and benefit of Licensee; provided that such contractors are not, directly or indirectly, related to or in the
business of exploring for or producing hydrocarbons.

 

	 	1.16		“Prospective Acquirer(s)” means any Third Party who is conducting
bona fide negotiations in an endeavor to become an Acquirer.

 

	 	1.17		“Prospective Partner(s)” means any Third Party who is conducting
bona fide negotiations in an endeavor to become a Partner.

  

	 	1.18		“Related Entity or Related Entities” means any entity which, as
of the date of this License, is (i) wholly owned by Licensee (Licensee’s subsidiary), or (ii) wholly owns Licensee (Licensee’s
parent), or (iii) is a result of an internal reorganization provided such reorganization shall not include entities formed after
the date hereof to accomplish a statutory merger, asset sale or purchase, stock sale or purchase or any other transaction with
an entity that is not defined as a Related Entity as of the date of this License.

 

	Licensor __________	Page 1 of 6	Licensee
    __________

 

SEI®
Corpus Christi • Dallas • Denver • Houston • New Orleans • Tulsa

 

    	 

    	 

    

 

	 	1.19		“Show(n)”
means to display or otherwise allow passive viewing, under the direct supervision and control of Licensee, of the Data or
Derivatives for short periods of time to a Third Party in secure environments whereby such Third Parties are not able to (i) operate
any computer workstation on which the Data or Derivatives are displayed; (ii) make copies, summaries, transcriptions, reproductions
or interpretations of any type; (iii) remove copies, summaries or transcriptions of the Data or Derivatives from Licensee’s
premises; or (iv) otherwise impair the intellectual property value of such Data or Derivatives.

 

	 	1.20	 	“Storage Contractor(s)” means Third Parties which are bona fide recognized contractors that are engaged by
Licensee to provide central storage facilities and retrieval services and/or electronic databases for geophysical and geological
data for the sole use and benefit of Licensee; provided that such contractors are not, directly or indirectly, related to or in
the business of exploring for or producing hydrocarbons and are not competitors of Licensor.

 

	 	1.21	 	“Supplement(s)” is defined
in the second paragraph of this License.
	 	 	 	 
	 	1.22 	 	“Third Party” or “Third
Parties” means any corporation, individual, partnership, trust, or other entity not a party to this License (including
Prospective Acquirers and Prospective Partners) other than a Related Entity.
	 	 	 	 
	 	1.23 	 	“Third Party Business Transaction(s)”
means farmouts, operating agreements, acreage trades, areas of mutual interest, joint development agreements, joint bidding agreements
and similar business transactions entered with Third Parties for the joint exploration and/or development of a particular geographical
area(s).

 

	2.	 	 Data Ownership/Confidential Treatment:

 

	 	2.1 	 	Ownership/Confidentiality. Licensor owns or otherwise has the right to license to others
    the right to house the Data. Licensor represents, and Licensee acknowledges, that the Data and Derivatives, regardless of
    the form or the medium on which they are stored, constitute a valuable and highly confidential trade secret that are not generally
    available and are the sole property and proprietary information of Licensor (and/or Data Owner on behalf of which Licensor
    acts). Title to the Data shall remain in Licensor (and/or Data Owner on behalf of which Licensor acts) and Licensee shall
    acquire, under the terms hereof, only the non-exclusive right to utilize such Data on the terms provided herein. Licensee
    shall in no event disclose or transfer the Data or any derivation thereof to any individual or entity whatsoever, except as
    may specifically be provided in this License. Licensor shall have the right at any time to license any part of the Data to
    persons or entities other than the Licensee at such prices and on such terms as are determined by Licensor. Except as expressly
    permitted by this License, Licensee agrees (a) to keep strictly confidential, and shall ensure that its employees and agents
    keep strictly confidential, the Data and Derivatives and (b) not to Show, allow the use of, or deliver the Data or Derivatives
    to any other person.
	 	 	 	 
	 	2.2	 	 Original Data-Retention/Licensing, Right to
Destroy. It is the intent of Licensor to retain the original Data (such as field tapes and other related information obtained
during acquisition); however, Licensee acknowledges that original media may erode, become damaged, and/or contain Data not relevant
to the licensed area and n such situations, Licensor may be unable to provide Licensee the portion of the original Data thereby
affected. Licensor shall have the sole right to delete or discard the original Data at Licensor’s sole discretion. Licensee
may obtain a license to use such original Data subject to such additional terms and conditions as Licensor deems necessary, which
terms may include the payment of an additional license fee.
	 	 	 	 
	 	2.3	 	 Notice of Restricted Use. Licensee may
make copies of any Data and Derivatives for the sole purpose of using such copies pursuant to the rights granted herein; provided
that all such copies shall have the following Notice printed thereon or attached to it or its container:
	 	 	 	 
	 	 	 	 NOTICE

 

“This Data is proprietary to and a trade secret of Seismic Exchange, Inc. (“Licensor”)
or Data Owner. The use of this Data and Derivatives is restricted to those individuals and entities holding a valid use license
from Licensor or Data Owner and is subject to the confidentiality terms of that license.

This notice shall not be removed, obliterated, concealed
or otherwise obscured by Licensee or those to whom the Data or Derivatives is disclosed or transferred, as may be permitted in
this License.

	 	 	 	 

	3.	 	 Disclosure of Data & Derivatives: Licensee shall
have the non-exclusive right to use the Data and Derivatives for its internal purposes only. Licensee shall not show, transfer
or otherwise dispose of or allow access to, or use of any or all, of the Data or Derivatives except as specifically provided for
in this Article 3. Copies of any Confidentiality Agreements between Licensee and Third Parties as required by the terns of this
License shall be provided to Licensor upon written request.

 

	 	3.1		Related Entities. Related Entities shall
have the same right of usage of the Data and Derivatives as has Licensee, provided that such Related Entity shall be bound by the
terms of this License to the same extent as is Licensee. In the event that any such Related Entity should cease to exist or no
longer meet the definition of a Related Entity, all rights of usage by such entity in the Data and Derivatives shall immediately
cease and any copies of the Data and Derivatives, or physical manifestations thereof, then in the possession of such entity shall
immediately be returned to Licensee.
	 	 	 	 
	 	3.2	 	Government Agencies

 

	 	 	3.2.1 	Notwithstanding the foregoing, the Data and derivatives
may be disclosed to the extent such disclosure is specifically required by law, governmental or court decree, order rule or regulation,
or by any similar legal process. In the event Licensee is required by law, governmental or court decree, order, rule or regulation,
or by any similar legal process to disclose any Data or derivatives, Licensee shall give Licensor prompt notice of such process
so that Licensor may seek an appropriate protective order (or other appropriate remedy) with respect to maintaining the confidentiality
of the affected Data and Derivatives before disclosure thereof by Licensee. If, in the absence of a protective order, Licensee
is nevertheless compelled to disclose Data or derivatives, Licensee may disclose only that portion of the Data or Derivatives that
Licensee is advised by written opinion of counsel is legally required to be disclosed in compliance with the relevant process.
In the event of such disclosure, Licensee shall give Licensor written notice of the Data or Derivatives that Licensee is advised
by written opinion of counsel is legally required to be disclosed in compliance with the relevant process. In the event of such
disclosure, Licensee shall give Licensor written notice of the Data or Derivatives to be disclosed as far in advance of its disclosure
as practicable, and upon Licensor’s request, Licensee shall use reasonable efforts to obtain assurances that the disclosed
Data or Derivatives will be accorded confidential treatment.

 

	Licensor __________	Page
    2  of 6	Licensee
    __________

 

SEI®
Corpus Christi • Dallas • Denver • Houston • New Orleans • Tulsa

 

    	 

    	 

    

 

	 	 	3.2.2	Pursuant to regulations issued by the Bureau of Ocean Energy Management
    (“BPEM”) or the Bureau of Safety and Environmental Enforcement (“BSEE”), agencies of the United
    States government, or precedessors or successors as applicable, licensor hereby notifies Licensee, and Licensee hereby
    acknowledges that by licensing to Licensee of geological and/or giophysical Data or Derivatives, Licensee assumes the
    obligations under 30 CFR Parts 250-252 and/or 550-551, as applicable, and as amended or superseded from time to time. The
    provisions of this paragraph do not limit or supersede the provisions of Section 3.2.1 above.

 

	 	3.3	 	Outside Service Providers

 

	 	 	3.1.1	Consultants    The Data and Derivatives may be made
    available to Licensee’s Consultant for the sole use and benefit of Licensee provided the Consultant signs a Confidentiality
    Agreement in advance of the restricted use of the Data or Derivatives. The Data and Derivatives shall remain on the premises
    of Licensee and all analyses or interpretations hereof by Consultant shall be done on such premises and shall not be removed
    therefrom without the prior written consent of Licensor. Upon completion of the work for which Consultant has been engaged,
    the Consultant shall not retain any copies of the Data, Derivative, or any analyses or interpretations of the Data or Derivatives. 
	 	 	 	 
	 	 	 	In the event Licensee deems it necessary for Data and Derivatives, or portions thereof, to
    be     removed from Licensee’s premises for utilization by a Consultant, Licensee hereby agrees to do so only under
    the     following conditions: Licensee shall submit a request in writing to Licensor for removal of the Data and
    Derivatives     which shall include a) the name and address of such Consultant, b) a copy of Licensee’s agreement with
    such Consultant whereby Consultant agrees to the conditions set forth herein for such Licensee’s representation and
    warranty that Consultant is contracted to provide consulting services exclusively for Licensee, d) Licensee’s
    representation and warranty that Licensee shall be responsible for compliance herewith by such Consultant, e)
    Licensee’s agreement that upon the occurrence of any breach hereof by License or its Consultant, including, but not
    limited to, the unauthorized disclosure of the Date and Derivatives to third party or use of the Data and Derivatives by
    Consultant for purposes other than for the benefit of Licensee, then in such event Licensees shall pay Licensor damages, and
    not as a penalty, a fee equal to Licensor’s then current license fee for each linear or square mile of the the Data
    and     Derivatives involved in such breach or unauthorized disclosure or use. Licensor shall not unreasonably withhold its
    consent     to Licensee’s request for such removal of the Data Derivatives from Licensee’s premises for use by a
    Consultant     in accordance herewith, provided, however, Licensor may condition such consent on additional assurances, as
    Licensor deems     necessary, to protect the confidentiality of the Data and Derivatives.
	 	 	 	 
	 	 	3.3.2	Processors       The Data may be made available
    to Licensee’s Processors for the purpose of creating Derivatives provided the Processor signs a Confidentiality Agreement
    in Advance of the restricted use of the Data and immediately returns the Data and Derivatives to Licensee upon the completion
    of the work for which the Processor has been engaged. All Derivatives shall be marked as provided in Section 2.3 above to
    identify it as containing Data proprietary to Licensor. Upon completion of the work for which Processor has been engaged,
    the Processor shall not retain any copies of the Data, derivatives, or any analyses or interpretations of the Data or Derivatives.
	 	 	 	 
	 	 	3.3.3	Storage Contractors       The Data and Derivatives
    may be delivered to the custody of Licensee’s Storage Contractor provided the Storage Contractor (i) signs a Confidentiality
    Agreement prior to the delivery of any Data; (ii) makes such Data and Derivatives available only to Licensee or Licensee’s
    Related Entities as authorized by Licensee as provided herein; and (iii) immediately returns all copies of the Data and Derivatives
    to Licensee upon completion of the service engagement with Licensee.
	 	 	 	 
	 	 	3.3.4	Compliance       Licensee shall be responsible for
    compliance herewith or Consultant(s), Processor(s), and Storage Contractor(s).

 

	 	3.4	 	Prospective Acquirers/Prospective
    Partners/Partners       Licensee     may Show the Data or Derivatives to Prospective
    Acquirers, Prospective Partners, or Partners provided the respective Third     Party signs a Confidentiality Agreement, to
    be     provided to Licensor upon request, in advance of the disclosure of the Data     or Derivatives, the Data or
    Derivatives Shown     are limited to such portions of the Data or Derivatives directly pertaining to the     prospect(s)
    under negotiation, and that     such disclosures shall occur on Licensee’s premises.
	 	 	 	 
	 	3.5		Partners     Licensee shall not give copies of the Data or
    Derivatives to any Acquirer of Licensee or any Partner or Prospective Partner of Licensee without the express prior written
    consent of Licensor; such consent may be premised upon the payment of a fee to Licensor.
	 	 	 	 
	 	3.6		Internet Disclosures       Licensee shall not Show
    Data or Derivatives to Third Parties via the Internet, E-Commerce sites, virtual data rooms, asset divestiture web sites,
    or any other similar means of virtual access outside of Licensee’s premises without the express written consent of Licensor;
    such consent may be premised upon the payment of a fee to Licensor.

 

	4.	 	Taxes:  In the event any sales, gross receipts, value added,
    use or similar tax is levied or assessed against Licensor as a consequence of the licensing of Data to  Licensee hereunder,
    such taxes shall be for the sole account of Licensee, who shall promptly reimburse Licensor in full for any taxes so paid
    by Licensor upon receipt by Licensee of Licensor’s invoice.
	 	 	 
	5.		Transfer of License:  Licensee shall not sell, sublicense, assign, or transfer
    this License to a Third Party, in whole or in part, or transfer its rights or obligations hereunder.

 

	 	5.1		Acquisition/Mergers       This
    License and all Supplement(s) shall automatically terminate at such time a Third Party becomes an Acquirer of Licensee
    unless Licensor receives payment from either Licensee or the Acquirer in the amount of no greater than fifth percent
    (50%) of the highest current licensee fee as of the date of the acquisition or merger linear mile or per square mile,     as
    applicable, and the Acquirer signs Licensor’s then standard license agreement. Should this License terminate, the
    provisions of Section 8 regarding the return of Data and Derivatives shall apply. 

	Licensor __________	Page
    3       of 6	Licensee
    __________

 

SEI®
Corpus Christi • Dallas • Denver • Houston • New Orleans • Tulsa

    	 

    	 

    

 

	 	5.2		The provisions of this Section 5 shall not apply to situations where the voting
    securities of Licensee (or any of its parents) are publicly traded and the ownership of such securities changes over time
    in the normal course of business unless, however, Ownership or Control of Licensee (or any of its parents) becomes,
    after the date hereof, concentrated in one unrelated Third Party or more than one such Third Parties acting together.

	6.		WARRANTIES AND DISCLAIMERS:

	 	6.1		LICENSOR WARRANTS ONLY THAT IT OWNS OR CONTROLS THE OWNERSHIP RIGHTS IN THE DATA
    AND HAS FULL AUTHORITY AND POWER TO GRANT TO LICENSEE THE USE RIGHTS COVERED BY THIS LICENSE. LICENSOR ASSUMES ALL
    LIABILITIES WHICH MAY ARISE OUT OF ITS ACTIVITIES IN ACQUIRING AND PROCESSING THE DATA, AND AGREES TO INDEMNIFY, DEFEND AND
    HOLD LICENSEE HARMLESS FROM ANY CLAIMS, ACTIONS, OR DAMAGES, INCLUDING ATTORNEY’S FEES AND EXPENSES, ARISING OUT OF
    SUCH ACTIVITIES, PROVIDED LICENSEE NOTIFIES LICENSOR PROMPTLY IN WRITING OF ANY SUCH CLAIMS AGAINST IT AND GIVES LICENSOR
    AUTHORITY, INFORMATION AND ASSISTANCE (AT LICENSOR’S EXPENSE) FOR THE DEFENSE OR ASSISTANCE IN THE DEFENSE OF SUCH PROCEEDINGS.
	 	 	 	 
	 	6.2	 	DATA DELIVERED TO LICENSEE HEREUNDER ARE, TO THE BEST OF THE KNOWLEDGE, INFORMATION AND
    BELIEF OF LICENSOR, PREPARED IN ACCORDANCE WITH ACCEPTED PRACTICES OF THE GEOPHYSICAL AND LICENSOR MAKES NO REPRESENTATION
    OR     WARRANTY, EXPRESS OR IMPLIED, IN RESPECT TO THE QUALITY, ACCURACY OR USEFULNESS OF SUCH DATA OR OTHERWISE AND ANY
    SUCH IMPLIED WARRANTIES OR REPRESENTATIONS ARE HEREBY EXPRESSLY NEGATED. SUCH DATA ARE DELIVERED HEREUNDER WITH THE
    EXPLICIT     UNDERSTANDING AND AGREEMENT OF LICENSEE THAT ANY ACTION TAKEN OR EXPENDITURES MADE BY LICENSEE AND ITS RELATED
    ENTITIES AND MEMBERS OF ITS EXPLORATION GROUPS BASED ON ITS OR THEIR EXAMINATION, EVALUATION, INTERPRETATION OR USE OF THE
    DATA SHALL BE AT ITS OWN RISK AND RESPONSIBILITY AND NEITHER LICENSEE NOR SUCH OTHER PARTIES SHALL HAVE ANY CLAIM AGAINST
    LICENSOR AND HEREBY RELEASES LICENSOR FROM ANY LIABILITY AS A CONSEQUENCE THEREOF.
	 	 	 	 
	 	6.3	 	LICENSOR MAKES NO REPRESENTATION THAT OIL AND GAS OR OTHER MINERAL LEASES WILL BE GRANTED OR
    OTHER EXPLORATION ACTIVITY WILL BE AUTHORIZED FOR AREAS COVERED BY THE DATA BY ANY INDIVIDUAL, CORPORATION, GOVERNMENT ENTITY
    OR OTHER THIRD PARTY AND ANY IMPLIED WARRANTY OR REPRESENTATION TO THAT EFFECT IS HEREBY EXPRESSLY NEGATED.
	 	 	 	 
	 	6.4	 	NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREINABOVE, LICENSOR SHALL IN NO EVENT
    BE LIABLE TO LICENSEE OR ANY OTHER PARTIES FOR PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM OR
    ARISING OUT OF THIS LICENSE OR THE USE BY LICENSEE OR SUCH OTHER PARTIES OF THE DATA, INCLUDING, WITHOUT LIMITATION, LOSS OF
    PROFIT OR BUSINESS INTERRUPTION, HOWEVER, SAME MAY BE CAUSED.

	7.	 	Term & Termination:

 

	 	7.1	 	Subject to the further provisions hereof, the term of this License shall end
    seven (7) years from the date first written above. The term on each Supplement shall end twenty (20) years after the
    effective     date of such Supplement. Notwithstanding the foregoing, the Parties shall continue to be bound by all terms
    and     conditions of this License for the unexpired term of any active Supplement(s).
	 	 	 	 
	 	7.2	 	Automatic Termination       This License and Supplement(s)
    shall automatically terminate should the following occur:

	 	 	7.2.1	In accordance with Section 5.1; or
	 	 	 	 
	 	 	7.2.2	Should Licensee voluntarily file a petition in bankruptcy or assign, voluntarily or
    involuntarily, its assets for the benefit of its creditors or should proceedings be commenced against or by Licensee under
    any bankruptcy, insolvency or similar statute; or
	 	 	 	 
	 	 	7.2.3	Should Licensee commit a material breach of any provision of this License and/or
    Supplement(s)     relating to use, display, Showing, sale, trade, lending, or other disposition of the Data and Derivatives,
    except as specifically authorized herein.

	 	7.3	 	Termination Upon
    Notice         This License and all Supplement(s) shall terminate
    should the following occur: 

	 	 	7.3.1	Should Licensee fail to comply with or breach of any other provisions not
    included in Section 7.2 above and subsequently fail to remedy such breach within thirty (30) days following written notice
    from Licensor; or
	 	 	 	 
	 	 	7.3.2	Should Licensee fail to make any payment for use of the Data as set forth in this License or
    applicable Supplement and subsequently fail to remedy such breach within thirty (30) days following the date of any initial
    notice from Licensor.

 

	 	7.4	 	Waiver       Notwithstanding the foregoing,
    such terminations may be waived if agreed to in writing by both Parties.

 

	8.	 	Effects of Termination:

 

	 	8.1	 	Return of Data        Upon termination
    of this License or any Supplement, regardless of the cause, Licensee shall within thirty (30) days return and/or destroy all
    respective Data and Derivatives and shall within the same thirty (30) day period provide written certification that all copies
    of the Data and Derivatives, and any physical manifestations thereof, subject to this License and/or the affected Supplement,
    have been returned to Licensor or destroyed, including removal of such Data from Licensee’s storage and archival systems,
    workstations, prospect files, and that Licensee has retained no copies of such Data and Derivatives. For a period of twelve
    (12) months from the termination of any License or Supplement, Licensor shall have the right to audit Licensee’s premises,
    systems and storage sites to verify that all of the affected Data and Derivatives have been returned or destroyed. The Parties
    hereby agree that Licensee Interpretations shall not be affected, returned, or destroyed and shall remain the property of
    Licensee.

 

	Licensor __________	Page
    5                 of 6	Licensee
    __________

 

SEI®
Corpus Christi • Dallas • Denver • Houston • New Orleans • Tulsa

 

    	 

    	 

    

 

	 	 	 	 
	 	8.2	 	Collection Expenses       If Licensor is required to
    engage the services of a collection agency or attorney to enforce its rights under this License, including an action for
    damages, declaratory judgment or injunction, Licensor shall be entitled to recover, in addition to any other costs and
    relief     that may be granted by the court in any such action, reasonable attorney fees and other costs of collection, as
    well as court costs and other fees and expenses incurred by reason of such engagement. That recovery shall include court
    costs and attorney’s fees incurred by Licensor during any appeal.
	 	 	 	 
	 	8.3	 	Cumulative Rights          The
    rights     and remedies granted in this License to Licensor in the event of default are cumulative and the exercise of any
    of     those rights and remedies shall be without prejudice to the enforcement of any other right or remedy, including without
    limitation injunctive relief and specific enforcement, available by law or in equity or authorized by this License.

 

	9.	 	Confidentiality of License Agreement:
              Licensee     agrees that this License and any Supplement and the
    terms hereof any thereof are confidential and may not be disclosed to any individual or entity without Licensor’s
    prior     written consent, except this License and its terms may be disclosed (i) to Licensee’s employees as required
    in the performance of their duties; (ii) to outside auditors, Consultants and counsel to the extent necessary to perform
    their respective duties to the Licensee; (iii) as required by law or regulatory or judicial order, provided that Licensee
    provides Licensor with prompt written notice in order that Licensor may seek a protective order or other appropriate remedy
    and Licensee shall only furnish that portion of the License or Supplement that is legally required and will use its best
    efforts to obtain reliable assurance that confidential treatment will be accorded such documents; (iv) to Related Entities
    pursuant to Section 3.1 above; and Licensee may disclose the existence of the License to acknowledge that Licensee holds a
    valid license to the Data in the geographic area covered by this License hereunder.
	 	 	 
	10.	 	Notices:

	 	10.1	 	All notices permitted or required to be given under the terms of this License
                                                shall be in writing and shall be deemed effective upon receipt if sent by registered or certified and return receipt
                                                requested prepaid post, or by telex, telecopier, facsimile, e-mail or other electronic means (all with receipt confirmation)
                                                or by commercial courier/messenger service and addressed to the respective Parties hereto at their respective addresses shown
                                                below or at such other address as shall be designated in accordance with this Notice Provision.  

	 	Licensor	 	Licensee
	 	Seismic Exchange, Inc.	 	Virtus Oil and Gas Corp.
	 	11050 Capital Park Drive	 	1517 San Jacinto Street
	 	Houston, TX 77041	 	Houston, TX 77002
	 	Phone: (832) 590-5100	 	Phone: (281) 806-5000
	 	Facsimile: (832) 590-5294	 	Facsimile: (281) 605-5842
	 	Attn: Julie Kay Hardie	 	Attn: Rupert Ireland

	 	10.2	 	Either Party may change its address for notices purposes at any time
  upon giving written notice specifying such new address and the effective date of such address change to the other
Party, as provided above.  

	11.	 	Waiver:     The rights of each Party hereto,
    whether granted by this License or by law or equity, may be exercised, from time to time, singularly or in combination, and
    the waiver of one or more of such rights shall not be deemed to be a waiver of such right in the future or of any one or
    more     of such rights shall not be deemed to be a waiver of such right in the future or of any one or more of the other
    rights      which     the exercising Party may have. Any right and any breach of a term, provision or condition of this
    License by one     Party shall not be deemed to have been waived by the other Party hereto, unless such waiver is expressed
    in     writing and signed     by an authorized representative of such Party, and the failure of either Party to insist upon
    the     strict     performance of any     term, provision or condition of this License shall not be construed as a waiver or
    relinquishment in     the future of the same     or any other term, provision or condition.
	 	 	 
	12.	 	Governing Law/Disputes:        All questions
    arising out of or concerning this License and each Supplement or its validity, interpretation, performance or breach shall
    be governed and decided by application of the appropriate laws (except for any rule of such laws which would make the law of
    any other jurisdiction applicable hereto) of the State of Louisiana. Any dispute between the Parties that cannot be resolved
    by mutual agreement shall be resolved and decided by the federal or state courts of the State of Louisiana and the Parties
    hereto do hereby irrevocably submit themselves to the jurisdiction of such courts for such purposes.
	 	 	 
	13.	 	Headings:          The headings in
    this Agreement and any index are for convenience reference only and shall not be used as aids to its interpretation.
	 	 	 
	14.	 	Entire Agreement: There are no understandings or agreements relative to this License
    and each Supplement concluded by the Parties pursuant hereto that are not fully expressed herein. This License and each Supplement
    are the entire agreement of the Parties concerning the subject matter hereof, and no modification, amendment or addition to
    this License or a Supplement may be effected unless in writing which specifically references this License and/or the applicable
    Supplement and is signed by an authorized representative of each party.
	 	 	 
	 	 	IN WITNESS WHEREOF, the Parties have caused this License to be executed and effective
    as of he date first above written.

 

	Licensor:	 	Licensee:
	Seismic Exchange, Inc.	 	Virtus Oil and Gas Corp.
	 	 	 
	 	 	 
	By: /s/ Shirley Ross for Julie Hardie	 	By: _________________
	Title: License Administrator	 	Title: ________________
	Date: June 12, 2014	 	Date: ___________________
	 	 	 

 

	Licensor __________	Page
    5            of 6	Licensee
    __________

 

SEI®
Corpus Christi • Dallas • Denver • Houston • New Orleans • Tulsa

    	 

    	 

    

 

Exhibit
“A”

Supplemental Agreement

SEI Reference Number:

 

This Supplemental Agreement
(“Supplement”) is dated this _____ day of _______,____ between Seismic Exchange, Inc. (“Licensor”),
and Virtus Oil and Gas Corp. (“Licensee”) subject to the following:

 

	1.		The License.       This
                                         Supplement is concluded pursuant to and made part of this Master Geophysical Data-Use
                                         License between the parties hereof dated the 12th day of June, 2014 (the “License”),
                                         the terms of which are incorporated herein by reference, except as expressly negated
                                         or modified below.
	 	 	 
	2.	 	The Data.       The
                                         Data subject hereto is summarized as follows and described on Exhibit A, attached hereto,
                                         which sets forth a complete listing of the 2D seismic lines and mileage licensed:
	 	 	 
	 	 	Date Type:_________________________________

Location: __________________________________

Marketing Rep: _____________________________

Sub-Broker: ________________________________

SEI Office: _________________________________

 

 

	3.	 	Compensation: The “Grand Total” above sets forth the compensation for the
                                                                                   non-exclusive right to use such Data and related charges for reproduction. Licensor shall invoice Licensee for the Grant
                                                                                   Total, which shall be due within thirty (30) days of invoice date. Payment of any portion of the Grand Total shall not be
                                                                                   conditioned upon the subsequent receipt of any supporting information.
                                                                                   
	 	 	 
	4.	 	Data Version(s) and Media Ordered:

	Data delivered to the following addresses:
	Company and Attention

Deliverables:

 

	5.	 	Counterparts: This License Agreement may be executed i) in counterparts, each of
                                                                                   which                                                                                    is deemed an original and together
                                                                                   they constitute one and the same instrument; and/or ii) by facsimile, electronic, digital or comparable signature, which
                                                                                   shall be deemed by the Licensor and Licensee to be effective as an original manual signature. An executed License Agreement
                                                                                   may also be transmitted by facsimile or electronic means

	LICENSOR:	 	LICENSEE:
	Seismic Exchange, Inc.	 	Virtus Oil and Gas Corp.
	11050 Capital Park Drive	 	1517 San Jacinto Street
	Houston, TX 77041	 	Houston, TX 77002
		 	
		 	
	Attention:		Attention: Rupert Ireland
	 	 	 
	By: _________________________	 	By: _____________________
	Acting on Behalf of the Data Owner(s) as detailed above	 	 
	Date: ________________________	 	Date:___________________________
	 	 	 

 

2D DATA: Please sign and return to Seismic Exchange, Inc., Attn: 2D Licenses,
11050 Capital Park Drive, Houston, Texas 77041, or Licenses@seismicexchange.com.

 

3D DATA: Please sign and return to Seismic Exchange, Inc., Attn: 3D Licenses,
11050 Capital Park Drive, Houston, Texas 77041, or Licenses@seismicexchange.com.

 

	Licensor __________	Page
    6            of 6	Licensee
    __________

 

SEI®
Corpus Christi • Dallas • Denver • Houston • New Orleans • Tulsa

    	 

    	 

    

 

Supplemental Agreement

SEI Reference
Number: 14-1948

 

This Supplemental
Agreement (“Supplement”) is dated this 12th  day of June,2014  between Seismic Exchange, Inc.
(“Licensor”), and Virtus Oil and Gas Corp. (“Licensee”) subject to the following:

 

	1.		The License.       This
                                         Supplement is concluded pursuant to and made part of this Master Geophysical Data-Use
                                         License between the parties hereof dated the 12th day of June, 2014 (the “License”),
                                         the terms of which are incorporated herein by reference, except as expressly negated
                                         or modified below.

	2.	 	The Data.       The
                                         Data subject hereto is summarized as follows and described on Exhibit A, attached hereto.

 

	3.	 	Compensation.     The “Grand Total” above sets
                                                                                                        forth the compensation for the non-exclusive right to use such Data and related charges for reproduction. Licensor shall
                                                                                                        invoice Licensee for Grand Total plus applicable sales tax, if any, upon receipt to this executed Supplement, and such shall
                                                                                                        be immediately due. Licensee shall make payment by wire or ACH transfer; however, Licensee shall be responsible for any
                                                                                                        fee(s) charged by the initiating bank for such wire or ACH transfer and shall ensure that the full invoiced amount is
                                                                                                        remitted to Licensor. This license is contingent upon Licensee’s pre-payment of the Grand Total prior to the delivery
                                                                                                        f                                                                                                         any Data to
                                                                                                        Licensee. Payment of the Grand Total shall not be conditioned upon the subsequent receipt of any supporting
                                                                                                        information.
	 	 	 
	4.		Tape Contingent: These Data have been ordered
                                         contingent upon field tape and support data (“Field Data”) availability.
                                         Upon receipt of the Field Data, Licensee shall have fifteen (15) business days to notify
                                         Licensor in writing, with supporting documentation satisfactory to Licensor that Licensee
                                         believes less than 95% of Field Data was provided. If Licensee fails, for any reason,
                                         to provide written notice to SEI within such fifteen (15) day period, Licensee shall
                                         have deemed the Field Data acceptable and the contingency shall be deemed satisfied.
	 	 	 
	 	 	If, however, timely notice and satisfactory supporting documentation are provided to
                                                       Licensor                                                        that such contingency was not satisfied, Licensee may a)
                                                       elect to return all affected Data and any copies thereof within thirty (30) days of Licensee’s notice,pursuant to
                                                       Article 8.1 of the License, and receive a credit equal to 100% of the License Fee for the affected line, therefore
                                                       offsetting                                                        any License Fee related to the affected line or select
                                                       replacement Data within thirty (3) days of such election; or b)
                                                       retain                                                        such Data and receive a credit equal to 25% of the License Fee
                                                       for the affected line. Any such credit may be applied to the license fee for any SEI 100%-owned or controlled 2D data
                                                       license;                                                        provided, however, that such credit shall be forfeited if not
                                                       utilized within six (6) months following the issuance of the credit.
	 	 	 
	5.	 	2D Product Set(s) Ordered. Detailed on Exhibit
                                         “A”, attached hereto, but summarized below:

 

 

	6.	 	Counterparts: This Supplement  may be executed i) in counterparts, each of
                                                                                   which                                                                                    is deemed an original and together
                                                                                   they constitute one and the same instrument; and/or ii) by facsimile, electronic, digital or comparable signature, which
                                                                                   shall be deemed by the Licensor and Licensee to be effective as an original manual signature. An executed License Agreement
                                                                                   may also be transmitted by facsimile or electronic means

	Licensor:	 	Licensee:
	Seismic Exchange, Inc.	 	Virtus Oil and Gas Corp.
	11050 Capital Park Drive	 	1517 San Jacinto Street
	Houston, TX 77041	 	Houston, TX 77002
		 	
		 	
	Attention: Annika Otness/Denver		Attention: Rupert Ireland
	 	 	 
	By: _________________________	 	By: _____________________
	Acting on Behalf of the Data Owner(s) as detailed above	 	 
	Date:    June 12, 2014	 	Date:___________________________

 

Please sign and return to Seismic Exchange, Inc., Attn: 2D Licenses,
11050 Capital Park Drive, Houston, Texas 77041, or Licenses@seismicexchange.com.

 

 

SEI Reference Number:
14-1948     Page 1 of 3

SEI®
Corpus Christi • Dallas • Denver • Houston • New Orleans • Tulsa

 

    	 

    	 

    

 

 

2D Basic Processed Product Set (2DB) - comprised of
one PSTM Stack, one Post Stack Migration, and one Unmigrated Stack (if available) from the latest processed version/vintage of
the data available at the time of the license and includes both SEGY and .tiff formats.

 

2D Underlying Data Product (2DU) - comprised of
one version of underlying field data to be selected by Licensor with Field Shot Records SEGY (without Geometry), if
available, as the first choice and shall include all associated support data. In the event such 2D Underlying Data Product is
unavailable, Licensor, in its sole discretion, will substitute the best 2D Underlying Data Product available, if any.

 

 

SEI Reference Number:
14-1948     Page 2  of 3

SEI®
Corpus Christi • Dallas • Denver • Houston • New Orleans • Tulsa

    	 

    	 

    

 

Virtus Oil and Gas Corp.

1517 San Jacinto Street

Houston, TX 77002

 

 

 

 

June 12, 2014

 

 

 

Seismic Exchange, Inc.

11050 Capital Park Drive

Houston, Texas 77041

Facsimile: 832-590-5294

Attn: Julie Kay Hardie

 

 

 

	RE:		Seismic Exchange, Inc.

Supplemental Agreement No. 14-1948

Dated: June 12, 2014

 

 

 

Virtus Oil and Gas Corp. ("Licensee")
deems it necessary for Data and Derivatives, or portions thereof, under the Master Geophysical Data Use License (“License”)
effective June 12, 2014 to be removed from Licensee’s premises for utilization by a Consultant. Licensee, pursuant to Paragraph
3.3.1 of the License, submits this request in writing to Seismic Exchange, Inc. ("Licensor") for removal of the Data
and Derivatives by Robert D. Benson – Colorado School Of Mines ("Consultant"), whose address is Department of Geophysics,
1500 Illinois Street, Golden, Colorado 80401. Enclosed please find a copy of Licensee’s agreement with Consultant whereby
Consultant agrees to the conditions set forth in the License, including, but not limited to, confidentiality of the Data and Derivatives,
for such Consultant’s access to said Data and Derivatives for interpretation purposes on behalf of Licensee.

 

Although Consultant has contracted to provide
consulting services for other clients, Licensee represents and warrants that Consultant shall only use the Data and Derivatives
exclusively for work it is performing for Licensee. Licensee represents and warrants that Licensee shall be responsible for full
compliance with the License by said Consultant. Licensee understands and agrees that upon the occurrence of any breach hereof by
Licensee or Consultant, including, but not limited to, the unauthorized disclosure of the Data and Derivatives to a third party
or use of the Data and Derivatives by Consultant for purposes other than for the benefit of Licensee, then in such event Licensee
shall pay Licensor damages and a fee, but not as a penalty, equal to Licensor’s then current license fee for each linear
or square mile of the Data and Derivatives involved in such breach or unauthorized disclosure or use. Licensee understands and
acknowledges that Licensor may condition its consent on additional assurances, as Licensor deems necessary, to protect the confidentiality
of the Data and Derivatives.

 

Please sign in the space provided and return a copy of same to the
undersigned.

 

	 	Very truly yours,
	 	 
	 	 
	 	 
	 	____________________________
	 	For Virtus Oil and Gas Corp.

 

 

 Enclosure

 

 

 

AGREED THIS 12TH DAY OF JUNE,
2014.

 

 

 

_________________________________

Seismic Exchange, Inc.

 

 

 

 

 

SEI Reference Number:
14-1948     Page 3  of 3

SEI®
Corpus Christi • Dallas • Denver • Houston • New Orleans • Tulsa

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