Document:

EXB 10.6 - 06.30.2012

Exhibit 10.6

Amended and Restated MasterCard International Incorporated Change in Control Severance Plan
The Amended and Restated MasterCard International Incorporated Change in Control Severance Plan (the “Plan”) sets forth the guidelines for MasterCard International Incorporated (the “MasterCard”) and certain of its Affiliates and subsidiaries that have elected to participate in the Plan (the “Participating Employers” and collectively with MasterCard, “the Company”) with respect to change in control severance payments and benefits to certain of their employees who meet the eligibility requirements set forth in the Plan.  At all times, payments under the Plan shall be made solely from the general assets of the Company.
Effective Date
The Plan was effective as of August 1, 2009, and is amended and restated as of June 5, 2012.
Adoption
Affiliates and subsidiaries of MasterCard may adopt this Plan upon approval by the Severance Plan Committee.  The list of the Participating Employers as of the Effective Date is attached to this Plan as Exhibit A.
Eligibility
The following employees of the Company are eligible to participate in the Plan (“Eligible Employees”):
		
	•
	Employees who are not subject to an employment agreement (or other similar agreement) which addresses their eligibility for severance, and prior to a “Change in Control” (as such term is defined in the “Definitions” section), are nominated by the Chief Executive Officer (“CEO”) of MasterCard for participation in the plan and are selected in writing by the Human Resources and Compensation Committee as eligible to participate in the Plan, provided that the written selection by the Human Resources and Compensation Committee must be made at least six (6) months preceding a Change in Control.  Such selection shall be made in the Human Resources and Compensation Committee’s sole and absolute discretion.  

Qualification
		
	a.
	the Eligible Employee is terminated by the Company or by the Company’s successor without “Cause” (as such term is defined in the “Definitions” section), and such termination occurs within six (6) months preceding, or within two (2) years following, a Change in Control, or 

		
	b.
	the Eligible Employee terminates his or her employment with the Company or with the Company’s successor for “Good Reason” (as such term is defined in the “Definitions” section), and such termination occurs within six (6) months preceding, or within two (2) years following, a Change in Control.

		
	•
	The Eligible Employee’s employment may be terminated at the option of the Eligible Employee, effective ninety (90) days after the giving of written notice to the Company by 

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such Eligible Employee of the grounds for termination for Good Reason, which grounds, as specified by the Eligible Employee, have not been cured by the Company during such ninety (90) day period; provided, however, that such Eligible Employee gave notice to the Company of the event(s) constituting Good Reason within sixty (60) days after such event(s) (or within sixty (60) days after a Change in Control, if the events giving rise to the Eligible Employee’s termination for Good Reason occurred during the six (6) month period preceding a Change in Control).  
		
	•
	The Company may waive all or part of the ninety (90) day notice required to be given by the Eligible Employee hereunder by giving written notice to such Eligible Employee.  

Circumstances of Ineligibility
Notwithstanding the foregoing, an Eligible Employee shall not be entitled to receive a Change in Control Pay (as defined below) if any of the following Circumstances of Ineligibility apply to such Eligible Employee.
		
	a.
	the Eligible Employee’s employment is terminated due to death or, at the option of the Company, upon the “Disability” (as such term is defined in the “Definitions” section) of the Eligible Employee;

		
	b.
	the Eligible Employee elects to voluntarily terminate his or her employment with the Company or a successor for any reason other than for Good Reason;

		
	c.
	the Eligible Employee’s employment with the Company or a successor is terminated for Cause, at any time preceding or following a Change in Control;

		
	•
	The Eligible Employee’s employment may be terminated for “Cause” by the Company, upon the authority of MasterCard’s CEO, effective upon the giving of written notice by the Company to the Eligible Employee of such termination for “Cause”, or effective upon such other date as specified therein (“Notice of Termination for Cause”). The Company’s Notice of Termination For Cause shall state the date of termination and the basis for the Company’s determination that the Eligible Employee’s actions establish Cause hereunder.

		
	d.
	the failure by the Eligible Employee to give notice of termination for Good Reason (as described above); or

		
	e.
	the Eligible Employee becomes employed by a Company Entity.

 
In no event shall a Change in Control of the Company alone, without a related termination of employment, give rise to any Change- in-Control Pay and benefits under the Plan.   

Amount and Duration of Change in Control Severance Payments
If the Eligible Employee is entitled to receive a Change in Control Pay, and has not been rendered 

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ineligible for receipt of such Change in Control Pay due to a Circumstance of Ineligibility, the Eligible Employee shall be entitled to the following payments:
		
	a.
	Accrued Payments

The Eligible Employee shall be entitled to the following payments following the Date of Termination (as such term is defined in the “Definitions” section):
		
	•
	a lump sump payment (subject to any previously elected deferrals under the MasterCard Incorporated Deferral Plan), within thirty (30) days following the Date of Termination of all “Base Salary” (as such term is defined in the “Definitions” section) earned but not paid prior to the Date of Termination;

		
	•
	a lump sum payment within thirty (30) days following the Date of Termination equal to all accrued but unused vacation time up to the Date of Termination; 

		
	•
	a pro rata portion (based upon actually completed calendar months worked) of the annual incentive bonus payable for the year in which the Eligible Employee’s termination of employment occurs based on the actual performance of the Company for the applicable performance period as determined by the Human Resources and Compensation Committee and payable in accordance with the regular bonus pay practices of the Company, as contemplated in accordance with the requirements of Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”); and

		
	•
	to the extent not already paid, the annual incentive bonus for the year immediately preceding the year in which the Eligible Employee’s Date of Termination occurs, payable in the amount and at the time such bonus would have been paid had he or she remained employed.

		
	b.
	Change in Control Pay

The Eligible Employee shall be entitled to receive (i) Base Salary continuation, and (ii) payment (subject to any previously elected deferrals under the MasterCard Incorporated Deferral Plan), of an amount equivalent to the average annual incentive bonus received by such Eligible Employee with respect to the prior two (2) years of the Eligible Employee’s employment by the Company (the “Average Bonus Payment”), payable on a schedule in accordance with the regular payroll practices (but in no event less frequently than monthly) and annual incentive bonus pay practices of the Company (such Base Salary continuation and Average Bonus Payment being collectively referred to herein as “Change in Control Pay”) for, and with respect to a twenty-four (24) month period following the Eligible Employee’s Date of Termination ( the “Change in Control Pay Period”).  Notwithstanding the foregoing, each payment of Change in Control Pay to which the Eligible Employee becomes entitled pursuant to this Plan shall be reduced, dollar for dollar, by each severance payment, if any, to which such Eligible Employee becomes entitled under the Amended and Restated MasterCard International Incorporated Executive Severance Plan or the Amended and Restated MasterCard International Incorporated Severance Plan.
		
	c.
	Medical Benefits Continuation

The Eligible Employee shall be entitled to payment by the Company on the Eligible Employee’s behalf, for the monthly cost of the premiums for coverage under the Consolidated Omnibus Reconciliation Act of 1985, as amended (“COBRA”), for a period equivalent to the eighteen (18) month COBRA period (twenty-nine (29) month period, if the Eligible Employee is disabled under the Social Security Act within 

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the first sixty (60) days of the continuation period) or the Change in Control Pay Period, whichever is shorter (the “Medical Benefits”), provided, however, such coverage shall not be provided if during such period the Eligible Employee is or becomes ineligible under the provisions of COBRA for continuing coverage; and provided, further, that if the Eligible Employee is eligible for Retiree Health Coverage under the MasterCard Retiree Health Plan, the Company shall pay the full cost of such Retiree Health or COBRA coverage, as applicable, during the Change in Control Pay Period and thereafter, retiree contribution levels provided under the provisions of the Retiree Health Plan shall apply. 
		
	d.
	Outplacement Services

The Eligible Employee shall be entitled to reasonable outplacement services, to be provided by a firm selected by the Company, at a level generally made available to executives of the Company for the shorter of the Change in Control Pay Period or the period he or she remains unemployed.
		
	e.
	Additional Payments

The Eligible Employee shall be entitled to such other benefits, if any, to which such Eligible Employee is expressly eligible following the termination of the Eligible Employee’s employment by the Company without Cause, by the Eligible Employee with Good Reason, payable or made available under such terms and conditions as may be provided by the then existing plans, programs and/or arrangements of the Company (other than any severance payments payable under the terms of any benefit plan, including, but not limited to, the Amended and Restated MasterCard International Incorporated Severance Plan). 
		
	f.
	Separation Agreement and Release

The Company’s obligations to make payments and provide benefits under this “Amount and Duration of Change in Control Severance Payments” section, paragraphs (b)-(d), are conditioned upon the Eligible Employee’s execution (without revocation) of the Company’s separation agreement and release of all claims related to the Eligible Employee’s employment or the termination thereof in a form satisfactory to MasterCard (the “Separation Agreement and Release”), which Separation Agreement and Release shall include a 2-year non-competition restriction and a 2-year non-solicitation restriction, as more fully described in such Separation Agreement and Release, provided that if the Eligible Employee should fail to execute such Separation Agreement and Release within sixty (60) days following the Date of Termination, the Company shall not have any obligation to make the payments and provide the benefits contemplated under this “Amount and Duration of Change in Control Severance Payments” section, paragraphs (b)-(d).
Rehired Eligible Employees
If, following an Eligible Employee’s Date of Termination, an Eligible Employee is rehired by the Company or any Company Entity or is retained by the Company or any Company Entity as a consultant, his or her Change in Control Pay, Medical Benefits and outplacement services under this Plan will cease and be forfeited as of the date of reemployment or the effective date of the consultancy, and no further severance payments and/or benefits will be paid or provided by the Company to such Eligible Employee.
Income Taxes
The change in control severance payments and benefits provided hereunder are subject to all applicable foreign, federal, state, and local tax withholding and generally are taxable income to the Eligible Employee.

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Section 409A of the Code
Notwithstanding any other provision of the Plan, if any payment, compensation or other benefit provided to the Eligible Employee in connection with his or her employment termination is determined, in whole or in part, to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code and the Eligible Employee is a specified employee as defined in Section 409A(a)(2)(b)(i) of the Code, no part of such payments shall be paid before the day that is six (6) months plus one (1) day after the Date of Termination (such date, the “New Payment Date”).  The aggregate of any payments that otherwise would have been paid to the Eligible Employee during the period between the Date of Termination and the New Payment Date shall be paid to the Eligible Employee in a lump sum on such New Payment Date.  Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of the Plan.  If the Eligible Employee dies during the period between the Date of Termination and the New Payment Date, the amounts withheld on account of Section 409A of the Code shall be paid to the Eligible Employee’s beneficiary within thirty (30) days of the Eligible Employee’s death.
Notwithstanding the preceding paragraph, Change in Control Pay in an amount up to two (2) times the lesser of: (i) the Eligible Employee’s Base Salary for the year preceding the year in which the Date of Termination occurs; and (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which the Date of Termination occurs, shall be paid in accordance with the schedule set forth in the “Amount and Duration of Change in Control Severance Payments” section, paragraph (b), without regard to such six (6) month delay. 
The Plan is intended to comply with the requirements of Section 409A of the Code, and, specifically, with the separation pay exemption and short term deferral exemption of Section 409A of the Code, and shall in all respects be administered in accordance with Section 409A of the Code.  Notwithstanding anything in the Plan to the contrary, distributions may only be made under the Plan upon an event and in a manner permitted by Section 409A of the Code or an applicable exemption.  All payments to be made upon a termination of employment under the Plan may only be made upon a “separation from service” under Section 409A of the Code.  For purposes of Section 409A of the Code, the right to a series of installment payments under the Plan shall be treated as a right to a series of separate payments.  In no event may the Eligible Employee, directly or indirectly, designate the calendar year of a payment.   All reimbursements and in-kind benefits provided under the Plan and the Separation Agreement and Release shall be made or provided in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement shall be for expenses incurred during the Eligible Employee’s lifetime (or during a shorter period of time specified in the Plan or the Separation Agreement and Release, as applicable), (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.
Administration of Plan
The “Plan Administrator” (as such term is defined in the “Definitions” section) shall have the exclusive right, power, and authority, in its sole and absolute discretion, to administer, apply, and interpret the Plan and to decide all matters arising in connection with the operation or administration of the Plan.  Without limiting the generality of the foregoing, the Plan Administrator shall have the sole and absolute 

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discretionary authority to:
		
	•
	take all actions and make all decisions with respect to the eligibility for, and the amount of, Change in Control Pay and benefits payable under the Plan;

		
	•
	formulate, interpret and apply rules, regulations, and policies necessary to administer the Plan in accordance with its terms;

		
	•
	decide questions, including legal or factual questions, with regard to any matter related to the Plan;

		
	•
	to construe and interpret the terms and provisions of the Plan and all documents which relate to the Plan and to decide any and all matters arising thereunder including the right to remedy possible ambiguities, inconsistencies or omissions; and

		
	•
	except as specifically provided to the contrary in the “Claims and Appeal Procedures” section, process, and approve or deny, claims for change in control severance payments  and benefits under the Plan.

All determinations made by the Plan Administrator as to any question involving their respective responsibilities, powers and duties under the Plan shall be final and binding on all parties, to the maximum extent permitted by law.  All determinations by MasterCard referred to in the Plan shall be made by MasterCard in its capacity as an employer and settlor of the Plan.
Modification or Termination of Plan
MasterCard reserves the right in its sole and absolute discretion, to amend, modify, or terminate the Plan, in whole or in part, including any or all of the provisions of the Plan, for any reason, at any time, by action of the Human Resources and Compensation Committee of MasterCard.  Notwithstanding the foregoing, for a two year period following a Change in Control, no amendment, modification or termination of the Plan which may have a detrimental effect on the rights or benefits payable to any Eligible Employee may be made without such Eligible Employee’s written consent. 
Claims and Appeal Procedures
The Plan Administrator shall make a determination in connection with the termination of employment of any Eligible Employee as to whether a benefit under the Plan is payable to such Eligible Employee, taking into consideration any determination made by the Company as to the circumstances regarding the termination, the Company’s decision as to whether or not to pay a benefit under the “Qualification” section, paragraph (c), or the potential applicability of any Circumstances of Ineligibility, and as to the amount of payment.  The Plan Administrator shall advise any Eligible Employee it determines is entitled to change in control severance payments and benefits under the Plan and the amount of such Change in Control Pay and benefits.  The Plan Administrator may delegate any or all of its responsibilities under this section.
Claim Procedures
Each Eligible Employee or his or her authorized representative (each, the “Claimant”) claiming change in control severance payments and benefits under the Plan who has not been advised of such change in control severance payments and benefits by the Plan Administrator or who is not satisfied with the 

6

amount of any change in control severance payments and benefits awarded under the Plan is eligible to file a written claim with the Plan Administrator.  
Within ninety (90) days after receiving the claim, the Plan Administrator will decide whether or not to approve the claim.  The ninety (90)-day period may be extended by the Plan Administrator for an additional ninety (90)-day period if special circumstances require an extension of time to consider the claim.  If the Plan Administrator extends the ninety (90)-day period, the Claimant will be notified in writing before the expiration of the initial 90‐day period as to the length of the extension and the special circumstances that necessitate the extension.
If the claim is denied, the Plan Administrator shall set forth in writing or electronically the reasons for the denial; the relevant provisions of the Plan on which the decision is made; a description of the Plan’s claim appeal procedures; and if additional material or information is necessary to perfect the claim, an explanation of why such material or information is necessary.  The notice will also include a statement regarding the procedures for the Claimant to file a request for review of the claim denial as set forth in the “Appeal Procedures” section and the Claimant’s right to bring a civil action under Section 502(a) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) following a claim denial on appeal.
Appeal Procedures
 If a claim has been denied by the Plan Administrator and the Claimant wishes further consideration and review of his or her claim, he or she must file an appeal of the denial of the claim to the Plan Administrator no later than sixty (60) days after the receipt of the written notification of the Plan Administrator’s denial.  In correlation with his or her appeal, the Claimant may request the opportunity to review relevant documents prior to submission of a written statement, submit documents, records and comments in writing, and receive, upon request and free of charge, reasonable access to and copies of all documents, records and other information relevant to the Claimant’s claim for severance and benefits under the Plan.  The review of the appeal by the Plan Administrator will take into account all comments, documents, records and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial review of the claim.  
The Plan Administrator will notify the Claimant in writing or electronically of its decision with respect to its review of the appeal within sixty (60) days of the receipt of the request for a review of the claim.  Due to special circumstances, the Plan Administrator may extend the time to reach a decision with respect to the appeal of the claim denial, in which case the Plan Administrator will notify the Claimant in writing before the expiration of the initial 60‐day period as to the length of the extension and the special circumstances that necessitate such extension and render a decision as soon as possible, but not later than one hundred twenty (120) days following the receipt of the Claimant’s request for appeal. 
If the appeal is denied, the Plan Administrator will set forth in writing or electronically the specific reasons for the denial and references to the relevant Plan provisions on which the determination of the denial is based.  The notice will also include a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim, and a statement of the Claimant’s right to bring an action under Section 502(a) of ERISA.
Exhaustion of Remedies under the Plan
A Claimant wishing to seek judicial review of an adverse benefit determination under the Plan, whether in 

7

whole or in part, must file any suit or legal action, including, without limitation, a civil action under Section 502(a) of ERISA, within one (1) year of the date the final decision on the adverse benefit determination on review is issued or should have been issued or lose any rights to bring such an action.  If any such judicial proceeding is undertaken, the evidence presented shall be strictly limited to the evidence timely presented to the Plan Administrator.  A Claimant may bring an action under ERISA only after he or she has exhausted the Plan’s claims and appeal procedures.
Miscellaneous Provisions
		
	•
	Neither the establishment of this Plan, nor any modification thereof, nor the payment of any change in control severance payments and benefits hereunder, shall be construed as giving to any Eligible Employee, or other person, any legal or equitable right against the Company or any current or former officer, director, or employee thereof, and in no event shall the terms and conditions of employment by the Company of any Eligible Employee be modified or in any way affected by this Plan.

		
	•
	The records of the Company with respect to employment history, compensation, absences, illnesses, and all other relevant matters shall be conclusive for all purposes of this Plan.

		
	•
	The respective terms and provisions of the Plan shall be construed, whenever possible, to be in conformity with the requirements of ERISA, or any subsequent laws or amendments thereto.  To the extent not to conflict with the preceding sentence, the construction and administration of the Plan shall be in accordance with the laws of the state of New York applicable to contracts made and to be performed within the state of New York (without reference to its conflicts of law provisions).

		
	•
	Nothing contained in this Plan shall be held or construed to create any liability upon the Company to retain any employee in its service or to change the employee-at-will status of any employee.  All employees shall remain subject to discharge or discipline to the same extent as if the Plan had not been put into effect.  An employee’s failure to qualify for or receive a change in control severance payments and benefits hereunder shall not establish any right to (i) continuation or reinstatement, or (ii) any benefits in lieu of change in control severance payments and benefits.

Definitions
	
		
	Terms
	Definitions

	Affiliates
	Any corporation which is included in a controlled group of corporations (within the meaning of Section 414(b) of the Code) which includes MasterCard and any trade or business (whether or not incorporated) which is under common control with MasterCard (within the meaning of Section 414(c) of the Code); provided that for purposes of this definition the ownership test percentage shall be 50% rather than 80%.

	Base Salary
	The Eligible Employee’s annual base salary in effect at the time of termination, except in the case of a termination of employment by the Eligible Employee for Good Reason based on a reduction of the Eligible Employee’s annual base salary, “Base Salary” shall mean the annual base salary in effect immediately prior to such reduction.

	Change in Control
	A change in control as set forth in the MasterCard Incorporated 2006 Long-Term Incentive Plan as it may be amended from time to time (“LTIP”).

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	Cause
	•    the willful failure by the Eligible Employee to perform his or her duties or responsibilities (other than due to Disability); 
•    the Eligible Employee’s engaging in serious misconduct that is injurious to the Company including, but not limited to, damage to its reputation or standing in its industry;
•    the Eligible Employee’s having been convicted of, or entered a plea of guilty or nolo contendere to, a crime that constitutes a felony, or a crime that constitutes a misdemeanor involving moral turpitude;
•    the material breach by the Eligible Employee of any written covenant or agreement with the Company not to disclose any information pertaining to the Company; or
•    the breach by the Eligible Employee of the Code of Conduct, the Supplemental Code of Conduct, any material provision of the Plan, or any material provision of the following the Company policies: non-discrimination, substance abuse, workplace violence, nepotism, travel and entertainment, corporation information security, antitrust/competition law, enterprise risk management, accounting, contracts, purchasing, communications, investor relations, immigration, privacy, insider trading, financial process and reporting procedures, financial approval authority, whistleblower, anti-corruption and other similar the Company policies, whether currently in effect or adopted after the Effective Date of the Plan.

	Company
	MasterCard and its Affiliates and subsidiaries.

	Company Entity
	Any entity (including any subsidiary, affiliate or joint venture) in which the Company has a direct or indirect ownership interest of not less than 20%.

	Disability
	Disability shall be defined as set forth under the MasterCard Long-Term Disability Benefits Plan, as it may be amended from time to time.  
Any dispute concerning whether the Eligible Employee is deemed to have suffered a Disability for purposes of the Plan shall be resolved in accordance with the dispute resolution procedures set forth in the MasterCard Long-Term Disability Benefits Plan.

	Good Reason
	The occurrence of any of the following without the prior written consent of the Eligible Employee:
•    the assignment to a position for which the Eligible Employee is not qualified or a materially lesser position than the position held by the Eligible Employee (although duties may differ without giving rise to a termination by the Eligible Employee for Good Reason);
•    a material reduction in the Eligible Employee’s annual Base Salary except that a 10 percent reduction, in the aggregate, over the period of the Eligible Employee’s employment shall not be treated as a material reduction; or
•    the relocation of the Eligible Employee’s principal place of employment to a location more than fifty (50) miles from the Eligible Employee’s principal place of employment (unless such relocation does not increase the Eligible Employee’s commute by more than twenty (20) miles), except for required travel on the Company’s business to an extent substantially consistent with the Eligible Employee’s business travel obligations as of the date of relocation.

	MasterCard
	MasterCard International Incorporated.

	Participating Employers
	The Affiliates and subsidiaries of MasterCard that have adopted the Plan upon approval by the Severance Plan Committee.

	Plan Administrator
	Group Head Global Rewards of Mastercard.

	Severance Plan Committee
	The Severance Plan Committee serves as an advisory committee to the Plan Committee and consists of at least one member of the law, finance and human resources departments of MasterCard.

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	Date of Termination
	The date on which the Eligible Employee incurs a termination of employment as described in the “Qualification” section or such other date on which an Eligible Employee incurs a “separation from service” determined using the default provisions set forth in Section 1.409A-1(h) of the Treasury Regulations. Pursuant to such default provisions, an Eligible Employee will be treated as no longer performing services for the Company when the level of services he or she performs for the Company decreases to a level equal to 20% or less of the average level of services performed by such Eligible Employee during the immediately preceding 36 months. 

Your Rights Under ERISA
The Department of Labor has issued regulations that require the Company to provide you with a statement of your rights under ERISA with respect to this Plan.  The following statement was designated by the Department of Labor to satisfy this requirement and is presented accordingly.
As a participant in the Plan, you are entitled to certain rights and protections under ERISA.  ERISA provides that all Plan participants are entitled to:
Receive Information About Your Plan and Benefits
		
	1.
	Examine, without charge, all Plan documents and copies of all documents filed by the Company with the Department of Labor.  This includes annual reports and Plan descriptions.  All such documents are available for review in your Human Resources Department.

		
	2.
	Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including copies of the latest annual report (Form 5500 Series) and an updated summary plan description. The Plan Administrator may charge you a reasonable fee for the copies.

		
	3.
	Receive a summary of the Plan’s annual financial report.  Once each year, the Plan Administrator will send you a Summary Annual Report of the Plan’s financial activities at no charge.

Prudent Action by Fiduciaries
In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan.  The people who operate your Plan, called fiduciaries of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants.
No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a pension or welfare benefit or exercising your rights under ERISA.
Enforcing Your Rights
If your claim for change in control severance payments and benefits is denied or ignored in whole or in part, you have a right to receive a written explanation of the reason for the denial, to obtain copies of documents related to the decision without charge, and to appeal any denial, all within certain time schedules.  You have the right to have your claim reviewed and reconsidered.  You also have the right to request a review of the denial of your claim as explained in the “Appeal Procedures” section. No one, including your employer or any other person, may discriminate against you in any way to prevent you from obtaining change in control severance payments and benefits under the Plan or exercising your rights under ERISA.
Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request 

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materials from the Plan and do not receive them within thirty (30) days, you may file suit in a federal court.  In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.  If you have a claim for change in control severance payments and benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court after you have exhausted the Plan’s claims and appeal procedures as described in the section “Claims and Appeal Procedures” hereof.  If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the Department of Labor, or you may file suit in a federal court.
The court will decide who should pay court costs and legal fees.  If you are successful, the court may order the person you sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.
Assistance with Your Questions
If you have any questions about the Plan, you should contact the Plan Administrator through your Human Resources Department.  They will be glad to help you.  If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest Area Office of the Employee Benefits Security Administration, Department of Labor, listed in your telephone directory, or you may contact:
The Division of Technical Assistance and Inquiries
Employee Benefits Security Administration, 
Department of Labor 
200 Constitution Avenue, N.W., Room 5N625
Washington, DC 20210
1-866-444-EBSA (1-866-444-3272)
www.dol.gov/ebsa (for general information) 
www.askebsa.dol.gov (for electronic inquiries)

You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration at 1-866-444-3272.

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Administrative Facts
	
		
	Topic
	Description

	Plan Name
	Amended and Restated MasterCard International Incorporated Change in Control Severance Plan

	Plan Sponsor
	MasterCard International Incorporated 
2000 Purchase Street  
Purchase, NY 10577 USA

	Source of Contributions to Plan
	Employer payments from corporate assets

	Employer Identification Number
	 

	Plan Number
	______

	Plan Administrator
	Group Head Global Rewards 
MasterCard International Incorporated 
2000 Purchase Street  
Purchase, NY 10577 USA

	Agent for Receiving Service of Legal Process
	General Counsel, Chief Franchise Officer & Corporate Secretary  
MasterCard International Incorporated 
2000 Purchase Street  
Purchase, NY 10577 USA

Contact Information
If you have questions about this Plan, please contact your department’s HR Business Partner.  If you do not know who your HR Business Partner is, call People Services and they will provide you with this information.
People Services
Phone:    
Fax:    
E-Mail:    

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EXHIBIT A 

PARTICIPATING EMPLOYERS

MasterCard Incorporated
MasterCard Technologies, LLC
MasterCard Advisors, LLC

13EXHIBIT 4.1

 

TRIANGLE PETROLEUM
CORPORATION

 

5.0% CONVERTIBLE
PROMISSORY NOTE

 

	$120,000,000	July 31, 2012

 

THIS 5.0% CONVERTIBLE
PROMISSORY NOTE (THIS “NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE
STATE SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT
IN EFFECT WITH RESPECT TO THIS NOTE UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION
THEREUNDER AND, IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT OR
THE ISSUER HAS RECEIVED DOCUMENTATION REASONABLY SATISFACTORY TO IT (WHICH MAY INCLUDE AN OPINION OF COUNSEL) THAT SUCH TRANSACTION
DOES NOT REQUIRE REGISTRATION UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS. THIS NOTE IS SUBJECT TO CERTAIN RESTRICTIONS
ON TRANSFER DESCRIBED HEREIN.

 

THE NOTE IS ISSUED
WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET SEQ. OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED
FROM TIME TO TIME. BEGINNING NO LATER THAN 10 DAYS AFTER THE ORIGINAL ISSUANCE DATE, A HOLDER MAY OBTAIN THE ISSUE PRICE, AMOUNT
OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY FOR SUCH LOAN BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION
TO THE CHIEF FINANCIAL OFFICER OF THE COMPANY.

 

TRIANGLE PETROLEUM
CORPORATION, a Nevada corporation (the “Company”), for value received, hereby promises to pay to the order of
NGP TRIANGLE HOLDINGS, LLC (the “Investor”), whose address is 125 East John Carpenter Fwy., Suite 600, Irving,
Texas 75062, at said address or such other addresses as may be designated in writing by Investor from time to time, or Investor’s
permitted assigns (the Investor to the extent it remains a holder of all or any portion of this Note and any permitted assigns
shall be referred to herein as “Holders”), the principal amount of ONE HUNDRED TWENTY MILLION and No/100 Dollars
($120,000,000) or such other amount as may be outstanding hereunder, together with all accrued and unpaid interest thereon (including
all accrued interest that is capitalized and added to the principal amount of this Note pursuant to Section 2) in accordance
with the terms and conditions of this Note. This Note is being issued by the Company pursuant to that certain Note Purchase Agreement
entered into contemporaneously herewith by and between the Company and the Investor (the “Purchase Agreement”).

 

This Note may be transferred
in whole or in part only in accordance with Section 16. This Note, any portion hereof that is retained by the Holder hereof
and any portions of this Note that are transferred in part to a new Holder shall be referred to herein as the “Notes”.
The Notes shall be evidenced by one or more certificates registered in the name of the Holder thereof, a copy of which shall be
maintained in the corporate offices of the Company. Certificates for the Notes shall be signed by an Officer for the Company, and
countersigned by a duly authorized representative of the Holder, by manual signature. The Notes shall rank equally and ratably
and shall be treated as a single class of notes. The Holders agree that, except as expressly provided otherwise herein, any payments
or prepayments to any Holder, whether principal, interest or otherwise, shall be made pro rata among the Holders based on the aggregate
unpaid principal amount of the Notes.

 

    	 

    	 

    

 

The following is a
statement of rights of the Holder of the Notes and the conditions to which the Notes are subject, to which the Holder thereof,
by the acceptance of the Notes, assents:

 

1.          Definitions.

 

“Additional
Reserved Shares” shall have the meaning specified in Section 3(c).

 

“Affiliate”
means, with respect to a specified Person, any other Person, whether now in existence or hereafter created, directly or indirectly
controlling, controlled by or under direct or indirect common control with such specified Person. For purposes of this definition,
“control” (including, with correlative meanings, “controlling,” “controlled by” and “under
common control with”) means the power to direct or cause the direction of the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract or otherwise; provided, however, that
“Affiliate” shall not be deemed to include any Portfolio Company.

 

“Base Rate”
shall have the meaning specified in Section 2(a).

 

“Board of Directors”
means either the board of directors of the Company or any duly authorized committee of such board of directors.

 

“Business Day”
means any day other than a Saturday, Sunday, any federal holiday or any day on which banking institutions in the State of Texas
are authorized or required by law or governmental action to close.

 

“Common Stock”
means the common stock, par value $0.00001 per share, of the Company or such other Equity Securities into which such common stock
is converted, reclassified or changed from time to time pursuant to Section 8.

 

“Common Stock
Cap Limitation” shall have the meaning specified in Section 3(b).

 

“Company”
shall have the meaning specified in the first introductory paragraph to this Note.

 

“Conversion
Effective Date” shall have the meaning specified in Section 3(a).

 

“Conversion
Price” shall have the meaning specified in Section 3(a).

 

    	2

    	 

    

 

 

“Conversion
Shares” shall have the meaning specified in Section 3(a).

 

“Converted Balance”
shall have the meaning specified in Section 3(a).

 

“Default Interest
Rate” means a rate of interest equal to 11% per annum, compounded quarterly.

 

“Demand Repayment
Amount” means, in respect of a payment required to be made by the Company to a Holder pursuant to Section 6 as
of a particular payment date in respect of a specific Note or Notes, an amount in cash equal to the sum of (i) the Outstanding
Balance as of the applicable payment date on such Note or Notes, and (ii) if such applicable payment date occurs prior to the fifth
anniversary of the Original Issuance Date, an additional amount equal to the present value of all interest that would have accrued
on such Note or Notes (and assuming any such interest was payable solely in cash) between such payment date and the fifth anniversary
of the Original Issuance Date using an annual discount rate of 2.5% (prorated for partial periods).

 

“Demand Repayment
Notice” shall have the meaning specified in Section 6(a).

 

“Early Redemption
Conditions” shall have the meaning specified in Section 4(a).

 

“Early Redemption
Date” shall have the meaning specified in Section 4(a).

 

“Early Redemption
Notice” shall have the meaning specified in Section 4(a).

 

“Early Redemption
Price” shall have the meaning specified in Section 4(a).

 

“Equity Securities”
means, with respect to a Person, any shares, interests, participation or other equivalents (however designated) of corporate stock
(including any options, warrants or other rights to acquire corporate stock but excluding any debt securities convertible or exchangeable
into corporate stock).

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Event of Default”
shall have the meaning specified in Section 11.

 

“Ex-Date”
means the first date on which the shares of Common Stock trade on the applicable exchange or in the applicable market, regular
way, without the right to receive the issuance, dividend or distribution in question, from the Company or, if applicable from the
seller of Common Stock on such exchange or market (in the form of due bills or otherwise) as determined by such exchange or market.

 

“Expiration
Date” shall have the meaning specified in Section 7(e).

 

“Fundamental
Change” shall be deemed to have occurred when any of the following has occurred:

 

    	3

    	 

    

 

(a)          the
consummation of any transaction (other than any transaction described in clause (b) below, whether or not the proviso therein applies)
the result of which is that any “person” or “group” becomes the “beneficial owner” (as these
terms are defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Equity
Securities of the Company that is at the time entitled to vote by the holder thereof in the election of the Board of Directors
(or comparable body); or

 

(b)          the
consummation of (i) any recapitalization, reclassification or change of the Common Stock (other than changes resulting from a subdivision
or combination) as a result of which the Common Stock is converted into, or exchanged for, stock, other securities, other property
or assets; (ii) any share exchange, consolidation or merger of the Company pursuant to which the Common Stock will be converted
into cash, securities or other property; or (iii) any sale, lease or other transfer in one transaction or a series of transactions
of all or substantially all of the consolidated assets of the Company and its Subsidiaries, taken as a whole, to any person or
group other than any of the Company’s Subsidiaries; provided, however, that none of the transactions described
in clauses (i), (ii) or (iii) shall constitute a Fundamental Change if the holders of more than 50% of the Common Stock immediately
prior to such transaction own, directly or indirectly, more than 50% of the common equity of the continuing or surviving or transferee
entity or any direct or indirect parent thereof immediately after the consummation of such transaction; or

 

(c)          the
adoption of a plan relating to the Company’s liquidation or dissolution; or

 

(d)          the
Common Stock ceases to be listed or quoted on any of The New York Stock Exchange, NYSE MKT, The NASDAQ Global Select Market, The
NASDAQ Global Market or any other National Securities Exchange or automated quotation system (or any of their respective successors).

 

“Fundamental
Change Company Notice” shall have the meaning specified in Section 6(b).

 

“Fundamental
Change Holder Notice” shall have the meaning specified in Section 6(b).

 

“Fundamental
Change Repurchase Date” shall have the meaning specified in Section 6(b).

 

“GAAP”
means generally accepted accounting principles in the United States of America as of the date of the applicable calculation being
made pursuant to the terms of this Note.

 

“Hedging Arrangements”
means a hedge, call, swap, collar, floor, cap, option, forward sale or purchase or other contract or similar arrangement (including
any obligations to purchase or sell any commodity or security at a future date for a specific price).

 

    	4

    	 

    

 

“Holders”
shall have the meaning specified in the first introductory paragraph of this Note.

 

“HSR Act”
means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

 

“Indebtedness”
means, with respect to any Person, any indebtedness of that Person, whether or not contingent, in respect of borrowed money or
evidenced by bonds, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof) or
bankers acceptances if and to the extent any of the foregoing indebtedness (other than letters of credit) would appear as a liability
upon a balance sheet of such Person prepared in accordance with GAAP, as well as all indebtedness of others secured by a lien on
any assets of such Person (whether or not such indebtedness is assumed by such Person) and, to the extent not otherwise included,
the guarantee by such Person of any Indebtedness of any other Person; provided, however, that Indebtedness shall
not include (i) any intercompany Indebtedness or (ii) any trade payables.

 

“Investment
Agreement” means the Investment Agreement dated as of the date hereof by and among the Company, the Investor and NGP
Natural Resources X, L.P.

 

“Investor”
shall have the meaning specified in the first introductory paragraph of this Note.

 

“National Securities
Exchange” means a securities exchange registered as a “national securities exchange” under Section 6 of the
Exchange Act.

 

“Note”
shall have the meaning specified in the legend of this Note.

 

“Notes”
shall have the meaning specified in the third introductory paragraph of this Note.

 

“Notice of Conversion”
shall have the meaning specified in Section 3(a).

 

“NYSE MKT”
means NYSE MKT LLC.

 

“Officer”
means the Chairman of the Board of Directors, a Vice Chairman of the Board of Directors, the Chief Executive Officer, the Chief
Financial Officer, the President or any Vice President of the Company.

 

“Original Issuance
Date” shall have the meaning specified in Section 2(a).

 

“Outstanding
Balance” means, as of any date in respect of a Note, an amount equal to the unpaid principal amount of such Note, together
with any accrued and unpaid interest hereon, including all accrued interest that is capitalized and added to the principal amount
of such Note and including all accrued interest from the most recent Payment Date.

 

“Payment Date”
shall have the meaning specified in Section 2(a).

 

    	5

    	 

    

 

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

 

“Portfolio Company”
means any portfolio company in which the Investor or any of its investment fund Affiliates have made a debt or equity investment.

 

“Proposal”
shall have the meaning given such term in the Purchase Agreement.

 

“Purchase Agreement”
shall have the meaning specified in the first introductory paragraph of this Note.

 

“Redemption
Date” shall have the meaning specified in Section 5(a).

 

“Redemption
Notice” shall have the meaning specified in Section 5(a).

 

“Redemption
Price” shall have the meaning specified in Section 5(a).

 

“Reference Property”
shall have the meaning specified in Section 8.

 

“Reserved Shares”
shall have the meaning specified in Section 3(c).

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Spin-Off”
shall have the meaning specified in Section 7(c).

 

“Subsidiary”
means, as to any Person, any corporation or other entity of which: (i) such Person or a Subsidiary of such Person is a general
partner or manager; (ii) at least a majority of the outstanding equity interest having by the terms thereof ordinary voting
power to elect a majority of the board of directors or similar governing body of such corporation or other entity (irrespective
of whether or not at the time any equity interest of any other class or classes of such corporation or other entity shall have
or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled
by such Person or one or more of its Subsidiaries; or (iii) any corporation or other entity as to which such Person consolidates
for accounting purposes.

 

“Threshold Closing
Price” shall have the meaning specified in Section 4(a).

 

“Trading Day”
means with respect to the Common Stock a day on which the Common Stock is traded on the Trading Market and with respect to any
other security a day on which such security trades on the principle trading market for such security.

 

“Trading Market”
means NYSE MKT or such other National Securities Exchange on which the Common Stock is listed and serves as the principle trading
market by volume for the Common Stock.

 

    	6

    	 

    

 

“Transfer”
means any sale, assignment, transfer, conveyance, gift, pledge, distribution, hypothecation or other encumbrance or any other disposition,
whether voluntary, involuntary or by operation of law, whether effected directly or indirectly.

 

“VWAP”
means, as of a specified date and in respect of a specified security, the volume weighted average price for such security on the
Trading Market with respect to the Common Stock or the principle trading market for such other security for the five (5) Trading
Days immediately preceding, but excluding, such date.

 

2.          Interest.

 

(a)          The
unpaid principal amount of this Note (including amounts capitalized pursuant to this Section 2) shall bear interest at a
base rate of interest equal to 5.0% per annum (the “Base Rate”), compounded quarterly on each Payment Date (as
defined below), until converted or repaid in full. The Company shall make payment of all accrued interest by capitalizing and adding
such accrued interest to the principal amount of this Note on each Payment Date; provided, however that from and
after the Payment Date commencing September 30, 2017, the Company shall have the option to make payment of interest by capitalizing
and adding such accrued interest to the principal amount of this Note on each Payment Date or by payment of cash in the form of
immediately available United States dollars on the applicable Payment Date (or if such Payment Date is not a Business Day, on the
next succeeding Business Day and no interest on such payment will accrue in respect of the delay) to the Holder of this Note. The
Company shall not be required to issue new notes to reflect the addition of accrued interest that is capitalized. Interest shall
be paid quarterly in arrears on March 31, June 30, September 30 and December 31 (each, a “Payment Date”), beginning
on September 30, 2012. Interest on this Note will accrue from July 31, 2012 (the “Original Issuance Date”) or,
if later, the most recent Payment Date. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months.

 

(b)          Notwithstanding
the foregoing, except as otherwise provided in Section 3(c), in the event and for so long as the Company does not have sufficient
authorized, unissued and unreserved shares of Common Stock to issue all of the Conversion Shares that would otherwise be issuable
upon full conversion of the Notes based on the Outstanding Balance at such time (disregarding for such purpose, the Common Stock
Cap Limitation) if the Notes were converted in full at any time, the Base Rate shall be increased to 11% per annum; provided,
however, that if the Company has sufficient Reserved Shares but does not have sufficient Additional Reserved Shares as the
result of and immediately following an underwritten offering of Common Stock, then the Base Rate shall not be increased pursuant
to this Section 2(b) unless and until such failure continues past the 90th day following the completion of such
offering.

 

    	7

    	 

    

 

3.          Conversion.

 

(a)          Subject
to Section 3(b), the Holder may elect to convert, at any time or from time to time after the First Stockholders Meeting
(as defined in the Purchase Agreement), all or any part of the Outstanding Balance of this Note into shares of Common Stock by
(i) delivering written notice (“Notice of Conversion”) to the Company setting forth (A) the portion of the Outstanding
Balance that the Holder desires to convert into shares of Common Stock (the “Converted Balance”), (B) if all
or a portion of the Converted Balance is expected to convert into cash, wire transfer instructions for the payment of such cash,
(C) if the Holder delivers the Notice of Conversion following the delivery of the Early Redemption Notice and prior to the relevant
Early Redemption Date or following the delivery of the Redemption Notice and prior to the relevant Redemption Date, whether the
Holder requests such Early Redemption Date or such Redemption Date extended because the Holder is required to file a notification
under the HSR Act or obtain any other governmental approval in order to consummate the conversion contemplated by such Notice of
Conversion and (D) to the extent any Conversion Shares (as defined below) are to be issued in a name other than the Holder’s
name, the names and addresses of such Persons and the number of shares issuable in respect of each such Person and (ii) surrendering
to the Company for cancellation the certificate representing this Note. For the purposes of this Section 3(a), conversion
shall be deemed to occur on the date that the Company receives both the Notice of Conversion and the certificate representing this
Note from the Holder, unless such Holder specifies a later date in which case the conversion shall be deemed to occur on such later
date (such date on which the conversion is deemed to occur, the “Conversion Effective Date”). The Converted
Balance of this Note shall be deemed to have been converted at the close of business on the Conversion Effective Date and the Person
or Persons in whose name any Conversion Shares shall be issuable upon such conversion shall become the holders of record of such
shares as of the close of business on the Conversion Effective Date. The number of shares of Common Stock into which the Converted
Balance is convertible pursuant to this Section 3 (the “Conversion Shares”) shall be determined by dividing
(i) the Converted Balance by (ii) $8.00 (the “Conversion Price,” which shall be subject to adjustment as provided
herein). The Company shall, as soon as practicable, but in no event later than three (3) Business Days after the Conversion Effective
Date, issue and deliver to the Holder (or such other Person as is designated in the Notice of Conversion) a certificate or certificates,
or at the option of the Company, shall instruct the transfer agent to issue uncertificated shares, for the number of Conversion
Shares to which the Holder (or such other Person) is entitled upon conversion of the Converted Balance. Any issue of stock certificates
upon conversion of this Note shall be made without charge to the converting Holder for any taxes or duties in respect of the issue
thereof. The Company shall not, however, be required to pay any such tax or duty which may be payable in respect of any transfer
involving the issue and delivery of stock in any name other than that of the Holder of this Note, and the Company shall not be
required to issue or deliver any such stock unless and until the Holder shall have paid to the Company the amount of such tax or
duty or shall have established to the satisfaction of the Company that such tax has been paid. If as a result of the Common Stock
Cap Limitation (as defined below) less than all of the Converted Balance is converted into shares of Common Stock, concurrently
with the issuance of Conversion Shares in connection with the conversion, the Company shall deliver to the Holder, at the Company’s
option, either: (i) immediately available United States dollars in an amount equal to the product obtained by multiplying (A) the
number of Conversion Shares that would have otherwise been issued pursuant to this Section 3(a) but were not so issued as
a result of the Common Stock Cap Limitation by (B) the VWAP of the Common Stock as of the Conversion Effective Date, or (ii) a
senior promissory note reasonably satisfactory to the Holder meeting the requirements set forth in Annex A hereto with a
principal amount equal to the amount of United States dollars that the Company would have otherwise been required to deliver pursuant
to clause (i) of this sentence. If the Outstanding Balance is greater than the Converted Balance at the time of conversion, concurrently
with the issuance of Conversion Shares in connection with the conversion, the Company shall execute and deliver to the Holder a
new certificate representing a Note with a principal amount equal to the amount by which the Outstanding Balance as of the Conversion
Effective Date exceeds the Converted Balance.

 

    	8

    	 

    

 

(b)          Notwithstanding
anything herein to the contrary, the number of shares of Common Stock that may be issued pursuant to this Section 3 shall
not exceed 8,814,685 shares of Common Stock (as shall be appropriately adjusted for stock splits, stock dividends or other similar
transactions described in Section 7 and Section 8) (the “Common Stock Cap Limitation”), unless
and until the Company obtains stockholder approval permitting such issuances in accordance with the applicable rules of the Trading
Market. Upon the written request of the Holder, the Company shall within three (3) Trading Days confirm in writing to the Holder
the number of shares of Common Stock then outstanding.

 

(c)          The
Company has reserved, solely for the purpose of providing for conversion of the Notes, 15,000,000 shares (as shall be appropriately
adjusted for stock splits, stock dividends or other similar transactions) of Common Stock (the “Reserved Shares”)
out of its authorized but unissued shares of Common Stock, and such shares of Common Stock shall be used for no purpose other than
providing for conversion of the Notes. The Company shall at all times reserve and keep available out of its authorized but unissued
shares of Common Stock, solely for the purpose of providing for conversion of the Notes, such additional number of shares of Common
Stock (the “Additional Reserved Shares”) as is sufficient to permit full conversion of the Notes (without taking
into account the Common Stock Cap Limitation). If at any time while the Notes remain outstanding, the Company is not in compliance
with its obligations set forth in the immediately preceding sentence, it shall, in accordance with applicable law and its organizational
documents, use commercially reasonable efforts to convene a meeting of its stockholders to consider and vote upon an increase in
the number of shares of authorized Common Stock sufficient to cause the Company to be in compliance with its obligations set forth
in the immediately preceding sentence; provided, however, that the Company shall not be required to convene more
than an aggregate of three meetings of its stockholders to consider and vote upon any particular increase in the number of shares
of authorized Common Stock. The Holder agrees that it and its Affiliates will grant, and that it will use its reasonable best efforts
to cause any other Person that would otherwise be an Affiliate but for the fact that such Person is a Portfolio Company to grant,
their respective written consent or vote any shares of Common Stock owned by them, as applicable, in favor of any such increase
in the number of shares of authorized Common Stock. If the Holder fails to comply with the foregoing covenant in this Note, then
the Company shall be deemed to be in compliance with the second sentence of this Section 3(c) even if the stockholders do
not approve such increase and shall not be required to pay the additional interest under Section 2(b).

 

(d)          Any
shares of Common Stock issued upon conversion of the Convertible Note will be listed for trading on the Trading Market.

 

    	9

    	 

    

 

 

4.          Early
Redemption.

 

(a)          At
any time following the fifth anniversary of the Original Issuance Date, the Company shall have the option to redeem all of the
outstanding Notes in full (but not in part) at a price (the “Early Redemption Price”) equal to the Outstanding
Balance as of the Early Redemption Date (as defined below) by delivering prior written notice to each of the Holders of the Notes
of such redemption (the “Early Redemption Notice”) if but only if as of the date of delivery of the Early Redemption
Notice to each of the Holders each of the Early Redemption Conditions (as defined below) is satisfied. The Early Redemption Notice
shall (i) state that the election to redeem the Notes is an irrevocable obligation of the Company, (ii) specify the date of such
redemption, which shall be a Business Day not less than 30 days nor more than 60 days following delivery of the Early Redemption
Notice to the Holders (the “Early Redemption Date”), (iii) provide the calculation used by the Company to determine
that the Early Redemption Conditions have been satisfied, and (iv) specify whether the Early Redemption Price shall be paid in
cash or Common Stock. Following delivery of an Early Redemption Notice and provided the Holders have not elected to convert their
respective Notes into shares of Common Stock pursuant to Section 3, the Company shall be obligated to redeem all of the
outstanding Notes in accordance with the terms of this Section 4 on the Early Redemption Date. For purposes of this Section
4, the “Early Redemption Conditions” shall be deemed to have been satisfied on any day if, as of such day: (i)
the average trading volume on the Trading Market during the 20 consecutive Trading Days immediately preceding such day exceeds
the quotient obtained by dividing (A) the number of shares of Common Stock that would be issuable upon full conversion of all of
the outstanding Notes at the Conversion Price on such day (without regard to the Common Stock Cap Limitation) by (B) ten, and (ii)
the closing price of the Common Stock on the Trading Market on each of the 20 consecutive Trading Days immediately preceding such
day was greater than $11.00, (the “Threshold Closing Price,” which shall be subject to adjustment as provided
in Section 7(i)).

 

(b)          The
Company shall have the option to pay the Early Redemption Price in either: (i) cash in the form of immediately available United
States dollars or (ii) if permitted by the rules of Trading Market and by applicable law, such number of shares of Common Stock
as is obtained by dividing the Early Redemption Price by the Conversion Price in effect on the Early Redemption Date. If the Early
Redemption Price is to be paid in cash, on or prior to the Early Redemption Date, the Company will set aside, segregate and hold
in trust an amount of money in immediately available funds sufficient to redeem on the Early Redemption Date all of the outstanding
Notes at the Early Redemption Price.

 

(c)          As
a condition to payment of the Early Redemption Price to a Holder, such Holder shall deliver (i) the certificates representing the
Notes held by such Holder for cancellation and (ii) written instructions specifying (A) if the Early Redemption Price is to be
paid in cash, wire transfer instructions for the payment of such cash and (B) if the Early Redemption Price is to be paid in Common
Stock, to the extent any such shares are to be issued in a name other than the Holder’s name, the names and addresses of
such Persons and the number of shares issuable in respect of each such Person. If the Early Redemption Price is payable in Common
Stock, the Person or Persons in whose name any such Common Stock shall be issuable upon such redemption shall become the holders
of record of such shares as of the close of business on the Early Redemption Date. The issue of stock shall be made without charge
to the Holders for any taxes or duties in respect of the issue thereof. The Company shall not, however, be required to pay any
such tax or duty which may be payable in respect of any transfer involving the issue and delivery of stock in any name other than
that of the Holder of this Note, and the Company shall not be required to issue or deliver any such stock unless and until the
Holder shall have paid to the Company the amount of such tax or duty or shall have established to the satisfaction of the Company
that such tax has been paid.

 

    	10

    	 

    

 

(d)          Notwithstanding
anything herein to the contrary, if following the delivery of the Early Redemption Notice and prior to the Early Redemption Date,
a Holder delivers a Notice of Conversion pursuant to Section 3(a) in which it requests an extension in connection with the
Holder’s requirement to file a notification under the HSR Act or obtain any other governmental approval in order to consummate
the conversion contemplated by such Notice of Conversion, then the Early Redemption Date shall be automatically extended until
the earlier of (i) the 180th day following the date of the Notice of Conversion and (ii) the completion of the conversion in the
Notice of Conversion and such Conversion Shares are issued and held of record by such Holder (or its designee). In the event the
Early Redemption Date is extended pursuant to the immediately preceding sentence, the Company and the Holders agree that they will
use their reasonable best efforts to cause any applicable waiting period to expire and any other required governmental approval
to be obtained as soon as reasonably practicable.

 

(e)          Notwithstanding
the foregoing, the Company shall not be entitled to redeem the Notes pursuant to this Section 4 or deliver an Early Redemption
Notice (i) during the continuance of an Event of Default pursuant to clauses (i), (ii), (iii), (iv), (viii) or (x) of Section
11(a) or (ii) at any time that the Company has not reserved sufficient shares of Common Stock for issuance upon full conversion
of the Notes unless, in the case of this clause (ii) of this sentence the Company pays to the Holders in immediately available
United States dollars an amount equal to the product obtained by multiplying (A) the number of Conversion Shares that would have
otherwise been issued if the Holder had exercised its conversion right immediately prior to the Early Redemption Date but could
not be so issued as a result of such failure to have sufficient authorized shares of Common Stock by (B) the VWAP of the Common
Stock as of the Early Redemption Date.

 

5.          Optional
Redemption.

 

(a)          At
any time following the eighth anniversary of the Original Issuance Date, the Company shall have the option to redeem all of the
outstanding Notes in full (but not in part) at a price (the “Redemption Price”) equal to the Outstanding Balance
as of the Redemption Date (as defined below) by delivering prior written notice to the Holders of the Notes of such redemption
(the “Redemption Notice”). The Redemption Notice shall (i) state that the election to redeem the Notes is an
irrevocable obligation of the Company and (ii) specify the date of such redemption, which shall be a Business Day not less than
30 days nor more than 60 days following delivery of the Redemption Notice to the Holders (the “Redemption Date”).
Following delivery of the Redemption Notice and provided the Holders have not elected to convert their respective Notes into shares
of Common Stock pursuant to Section 3, the Company shall be obligated to redeem all of the outstanding Notes by delivering
cash in the form of immediately available United States dollars in an amount equal to the Redemption Price to the Holders on the
Redemption Date.

 

    	11

    	 

    

 

(b)          On
or prior to the Redemption Date, the Company will set aside, segregate and hold in trust an amount of money in immediately available
funds sufficient to redeem on the Redemption Date all of the outstanding Notes at the Redemption Price.

 

(c)          As
a condition to payment of the Redemption Price to a Holder, such Holder shall deliver (i) the certificates representing the Notes
held by such Holder for cancellation and (ii) written instructions specifying wire transfer instructions for the payment of the
Redemption Price.

 

(d)          Notwithstanding
anything herein to the contrary, if following the delivery of the Redemption Notice and prior to the Redemption Date, a Holder
delivers a Notice of Conversion pursuant to Section 3(a) in which it requests an extension in connection with the Holder’s
requirement to file a notification under the HSR Act or obtain any other governmental approval in order to consummate the conversion
contemplated by such Notice of Conversion, then the Redemption Date shall be automatically extended until the earlier of (i) the
180th day following the date of the Notice of Conversion and (ii) the completion of the conversion in the Notice of Conversion
and such Conversion Shares are issued and held of record by such Holder (or its designee). In the event the Redemption Date is
extended pursuant to the immediately preceding sentence, the Company and the Holders agree that they will use their reasonable
best efforts to cause any applicable waiting period to expire and any other required governmental approval to be obtained as soon
as reasonably practicable.

 

(e)          Notwithstanding
the foregoing, the Company shall not be entitled to redeem the Notes pursuant to this Section 5 or deliver a Redemption
Notice (i) during the continuance of an Event of Default pursuant to clauses (i), (ii), (iii), (iv), (viii) or (x) of Section
11(a) or (ii) at any time that the Company has not reserved sufficient shares of Common Stock for issuance upon full conversion
of the Notes unless, in the case of this clause (ii) of this sentence the Company pays to the Holders in immediately available
United States dollars an amount equal to the product obtained by multiplying (A) the number of Conversion Shares that would have
otherwise been issued if the Holder had exercised its conversion right immediately prior to the Redemption Date but could not be
so issued as a result of such failure to have sufficient authorized shares of Common Stock by (B) the VWAP of the Common Stock
as of the Redemption Date.

 

6.          Demand
Repayment.

 

(a)          At
any time following the tenth anniversary of the Original Issuance Date, each Holder shall have the right to require the Company
to repurchase all (but not less than all) of the Notes held by such Holder by delivering written notice (a “Demand Repayment
Notice”) together with the certificate representing such Note to the Company. The Company shall, as soon as practicable,
but in no event later than twenty Business Days after receipt of a Demand Repayment Notice, deliver to the applicable Holder cash
in the form of immediately available United States dollars in an amount equal to the Demand Repayment Amount in respect of all
Notes covered by such Demand Repayment Notice.

 

    	12

    	 

    

 

(b)          If
a Fundamental Change occurs at any time prior to conversion, redemption or repayment of all of the outstanding Notes, each Holder
shall have the right to require the Company to repurchase all (but not less than all) of the Notes held by such Holder on the Fundamental
Change Repurchase Date (as defined below). On or before the tenth Business Day after the occurrence of a Fundamental Change, the
Company shall provide to all Holders a written notice (the “Fundamental Change Company Notice”) of the occurrence
of the Fundamental Change. Each Fundamental Change Company Notice shall specify: (i) the events causing the Fundamental Change,
(ii) the date of the Fundamental Change, (iii) the Conversion Price and any adjustments to the Conversion Price that shall result
from the Fundamental Change and (iv) the Demand Repayment Amount per $1,000 principal amount of the Notes. If a Holder elects to
require the Company to repurchase the Notes held by such Holder pursuant to this Section 6(b) in respect of a Fundamental
Change, such Holder shall deliver written notice of such election to the Company (a “Fundamental Change Holder Notice”)
within 20 Business Days following receipt by such Holder of the Fundamental Change Company Notice, which Fundamental Change Holder
Notice shall specify the date on which the Notes held by such Holder shall be repurchased pursuant to this Section 6(b)
(the “Fundamental Change Repurchase Date”), which shall be a Business Day not less than ten nor more than 20
Business Days following delivery of the Fundamental Change Holder Notice. Such Holder shall have the right to withdraw such Fundamental
Change Holder Notice at any time prior to the Fundamental Change Repurchase Date by delivering written notice of withdrawal to
the Company. On the Fundamental Change Repurchase Date with respect to a Holder, the Company shall deliver to such Holder cash
in the form of immediately available United States dollars in an amount equal to the Demand Repayment Amount in respect of all
Notes covered by such Fundamental Change Holder Notice. The Company shall comply, to the extent applicable, with the requirements
of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations
are applicable in connection with the offer to purchase following a Fundamental Change. To the extent that the provisions of any
securities laws or regulations conflict with these provisions, the Company shall comply with applicable securities laws and regulations
and shall not be deemed to have breached its obligations hereunder by virtue of such compliance.

 

7.          Adjustments.
 Subject and pursuant to the provisions of this Section 7, the Conversion Price shall be subject to adjustment
from time to time as set forth hereinafter.

 

(a)          If
the Company shall issue shares of Common Stock as a dividend or distribution on shares of Common Stock, or if the Company effects
a share split or share combination with respect to its Common Stock, the Conversion Price shall be adjusted based on the following
formula:

 

	CP1	=	CP0	×	OS0 
	OS1 

 

    	13

    	 

    

 

where,

 

	CP1    =	the Conversion Price in effect immediately after the close of business on the record date for such dividend or distribution or the effective date of such share split or share combination, as the case may be;
	 	 
	CP0    =	the Conversion Price in effect immediately prior to the close of business on the record date for such dividend or distribution or the effective date of such share split or share combination, as the case may be;
	 	 
	OS0     =	the number of shares of Common Stock outstanding immediately prior to the close of business on the record date for such dividend or distribution or the effective date of such share split or share combination, as the case may be; and
	 	 
	OS1     =	the number of shares of Common Stock that would be outstanding immediately after, and solely as a result of, such dividend, distribution, share split or share combination, as the case may be.

 

Any adjustment made under
this clause (a) shall become effective immediately after the open of business on such record date for such dividend or distribution,
or immediately after the open of business on the effective date for such share split or share combination, as applicable. If any
dividend or distribution of the type described in this clause (a) is declared but not so paid or made, the Conversion Price shall
be immediately readjusted, effective as of the date the Board of Directors determines not to pay such dividend or distribution,
to the Conversion Price that would then be in effect if such dividend or distribution had not been declared.

 

(b)          If
the Company shall distribute to all or substantially all holders of its Common Stock any rights, options or warrants entitling
them to purchase, for a period of 60 calendar days or less from the declaration date for such distribution, shares of the Common
Stock at a price per share less than the VWAP of the Common Stock as of the declaration date for such distribution, the Conversion
Price shall be decreased based on the following formula:

  

	CP1	=	CP0	×	
         

        OS0 +
        X

	OS0 + Y

 

where

 

	CP1 =	the Conversion Price in effect immediately after the close of business on the record date for such distribution;

 

    	14

    	 

    

 

	CP0 =	the Conversion Price in effect immediately prior to the close of business on the record date for such distribution;
	 	 
	OS0 =	the number of shares of the Common Stock outstanding immediately prior to the close of business on the record date for such distribution;
	 	 
	X    =	the number of shares of the Common Stock equal to the aggregate price payable to exercise such rights, options or warrants, divided by the VWAP of the Common Stock as of the declaration date for such distribution; and
	 	 
	Y      =	the total number of shares of the Common Stock issuable pursuant to such rights, options or warrants.

 

Any decrease made under
this clause (b) shall be made successively whenever any such rights, options or warrants are distributed and shall become effective
immediately after the close of business on the record date for such distribution. To the extent that shares of the Common Stock
are not delivered after the expiration of such rights, options or warrants, the Conversion Price shall be increased to the Conversion
Price that would then be in effect had the increase with respect to the distribution of such rights, options or warrants been made
on the basis of delivery of only the number of shares of the Common Stock actually delivered. If such rights, options or warrants
are not so distributed, the Conversion Price shall be increased to the Conversion Price that would then be in effect if such record
date for such distribution had not occurred.

 

For purposes of this clause
(b), in determining whether any rights, options or warrants entitle the holders to subscribe for or purchase shares of the Common
Stock at a price per share less than such VWAP of the Common Stock as of the declaration date for such distribution, and in determining
the aggregate offering price of such shares of the Common Stock, there shall be taken into account any consideration received by
the Company for such rights, options or warrants and any amount payable upon exercise or conversion thereof, the value of such
consideration, if other than cash, as reasonably determined by the Board of Directors in good faith.

 

(c)          If
the Company distributes shares of its Equity Securities, evidences of its Indebtedness or other of its securities, assets or property
to all or substantially all holders of Common Stock, excluding:

 

(i)          dividends
or distributions as to which adjustment is required to be effected pursuant to clause (a) or (b) above;

 

(ii)         rights
issued to all holders of the Common Stock pursuant to a rights plan, where such rights are not presently exercisable, trade with
the Common Stock and the plan provides that the Holders will receive such rights along with any Common Stock received upon conversion
of the Notes;

 

    	15

    	 

    

 

(iii)        dividends
or distributions paid exclusively in cash, as to which an adjustment is required to be effected in clause (d) below; and

 

(iv)        Spin-Offs
described below in this clause (c),

 

then the Conversion
Price shall be decreased based on the following formula:

  

	CP1	=	CP0	×	
        SP0 –
        FMV

	SP0

 

where, 

  

	CP1     =	the Conversion Price in effect immediately after the close of business on the record date for such distribution;
	 	 
	CP0    =	the Conversion Price in effect immediately prior to the close of business on the record date for such distribution;
	 	 
	SP0    =	the VWAP of the Common Stock as of the Ex-Date for such distribution; and
	 	 
	FMV  =	the fair market value (as reasonably determined by the Board of Directors in good faith) of the shares of Equity Securities, evidences of Indebtedness, securities, assets or property distributed with respect to each outstanding share of the Common Stock immediately prior to the close of business on the record date for such distribution.

 

Any decrease made under
the portion of this clause (c) above shall become effective immediately after the close of business on the record date for such
distribution. If such distribution is not so paid or made, the Conversion Price shall be increased to be the Conversion Price that
would then be in effect if such distribution had not been declared.

 

Notwithstanding the foregoing,
if “FMV” (as defined above) is equal to or greater than 25% of “SP0” (as defined above), in
lieu of the foregoing decrease, each Holder may elect to receive at the same time and upon the same terms as holders of shares
of Common Stock without having to convert its Notes, the amount and kind of the Equity Securities, evidences of the Company’s
Indebtedness, or other securities assets or property of the Company that such Holder would have received as if such Holder owned
a number of shares of Common Stock into which the Note was convertible (without giving effect to the Common Stock Cap Limitation)
at the Conversion Price in effect on the record date for the distribution.

 

    	16

    	 

    

 

With respect to an adjustment
pursuant to this clause (c) where there has been a payment of a dividend or other distribution on the Common Stock in shares of
Equity Securities of any class or series, or similar equity interests, of or relating to a Subsidiary or other business unit of
the Company that will be, upon distribution, listed on a U.S. national or regional securities exchange (a “Spin-Off”),
the Conversion Price shall be decreased based on the following formula:

 

	CP1	=	CP0	×	
         

        MP0

	FMV + MP0

 

 where,

  

	CP1 =	Conversion Price in effect immediately after the close of business on the record date for the Spin-Off;
	 	 
	CP0 =	the Conversion Price in effect immediately prior to the close of business on the record date for the Spin-Off;
	 	 
	FMV =	the VWAP of the Equity Security or similar equity interest distributed to holders of the Common Stock applicable to one share of the Common Stock as of the sixth Trading Day following the Ex-Date for such Spin-Off; and
	 	 
	MP0 =	the VWAP of the Common Stock as of the sixth Trading Day following the Ex-Date for such Spin-Off.

   

Any adjustment to the
Conversion Price under the preceding paragraph of this clause (c) shall be made immediately after the close of business on the
fifth Trading Day following the Ex-Date for such Spin-Off, but shall be given effect as of the close of business on the Ex-Date
for the Spin-Off. Because the Company will make the adjustment to the Conversion Price with retroactive effect, the Company shall
delay the settlement of the conversion of any portion of the Notes during such valuation period. In such event, the Company shall
pay or deliver, as the case may be, any cash and shares of the Common Stock due upon conversion (based on the adjusted Conversion
Price as described above) on the eighth Trading Day immediately following the Ex-Date for such Spin-Off.

 

Notwithstanding the foregoing,
if the fair market value (as reasonably determined by the Board of Directors in good faith) of the Equity Security or similar equity
interest distributed to holders of the Common Stock is equal to or greater than 25% of the VWAP of the Common Stock as of the Ex-Date
for the Spin-Off, in lieu of the foregoing decrease, each Holder may elect to receive at the same time and upon the same terms
as holders of shares of Common Stock without having to convert its Notes, the amount and kind of Equity Securities or similar equity
interest that such Holder would have received as if such Holder owned a number of shares of Common Stock into which the Note was
convertible (without giving effect to the Common Stock Cap Limitation) at the Conversion Price in effect on the Ex-Date for the
distribution.

 

    	17

    	 

    

 

(d)          If
the Company pays any cash dividends or distributions exclusively in cash to all or substantially all holders of its Common Stock
(other than dividends or distributions made in connection with the Company’s liquidation, dissolution or winding-up), the
Conversion Price shall be decreased based on the following formula:

  

	CP1	=	CP0	×	
         

        SP0 –
        C

	SP0

 

where, 

 

	CP1      =	the Conversion Price in effect immediately after the close of business on the record date for such dividend or distribution;
	 	 
	CP0      =	the Conversion Price in effect immediately prior to the close of business on the record date for such dividend or distribution;
	 	 
	SP0      =	the VWAP of the Common Stock as of the Ex-Date for such dividend or distribution; and
	 	 
	C          =	the amount in cash per share the Company distributes to holders of the Common Stock.

 

Any decrease made under
this clause (d) shall become effective immediately after the close of business on the record date for such dividend or distribution.
If such dividend or distribution is not so paid, the Conversion Price shall be increased, effective as of the date the Board of
Directors determines not to make or pay such dividend or distribution, to be the Conversion Price that would then be in effect
if such dividend or distribution had not been declared.

 

Notwithstanding the foregoing,
if “C” (as defined above) is equal to or greater than 25% of “SP0” (as defined above), in lieu
of the foregoing decrease, each Holder may elect to receive at the same time and upon the same terms as holders of shares of the
Common Stock without having to convert its Notes, the amount of cash that such Holder would have received as if such Holder owned
a number of shares of Common Stock into which the Note was convertible (without giving effect to the Common Stock Cap Limitation)
at the Conversion Price in effect on the Ex-Date for such cash dividend or distribution.

 

(e)          If
the Company or any of its Subsidiaries makes a payment in respect of a tender offer or exchange offer for the Common Stock, to
the extent that the cash and value of any other consideration included in the payment per share of the Common Stock exceeds the
VWAP of the Common Stock as of the last date (the “Expiration Date”) on which tenders or exchanges may be made
pursuant to such tender or exchange offer, the Conversion Price shall be decreased based on the following formula:

 

    	18

    	 

    

 

	CP1	=	CP0	×	
         

        SP1 ×
        OS0

	AC + ( SP1 × OS1 )

  

where,

 

	CP1      =	the Conversion Price in effect immediately after the close of business on the Trading Day immediately following the Expiration Date;
	 	 
	CP0      =	the Conversion Price in effect immediately prior to the close of business on the Trading Day immediately following the Expiration Date;
	 	 
	AC       =	the aggregate value of all cash and any other consideration (as reasonably determined by the Board of Directors in good faith) paid or payable for shares purchased in such tender or exchange offer;
	 	 
	SP1      =	the VWAP of the Common Stock as of the sixth Trading Day immediately following the Expiration Date;
	 	 
	OS1      =	the number of shares of the Common Stock outstanding immediately after the close of business on the Expiration Date (adjusted to give effect to the purchase or exchange of all shares accepted for purchase in such tender offer or exchange offer); and
	 	 
	OS0      =	the number of shares of the Common Stock outstanding immediately prior to the close of business on the Expiration Date (prior to giving effect to such tender offer or exchange offer).

 

Any adjustment to the
Conversion Price under this clause (e) shall be made immediately after the close of business on the fifth Trading Day immediately
following the Expiration Date, but shall be given effect as of the open of business on the Trading Day immediately following the
Expiration Date. Because the Company shall make the adjustment to the Conversion Price with retroactive effect, the Company shall
delay the settlement of the conversion of any portion of the Note if the conversion would otherwise occur during the such period.
In such event, the Company shall pay or deliver, as the case may be, any cash and shares of the Common Stock due upon conversion
(based on the adjusted Conversion Price as described above) on the eighth Trading Day immediately following the Expiration Date.

 

    	19

    	 

    

 

(f)          To
the extent that any stockholders’ rights plan adopted by the Company is in effect upon conversion of the Notes, the Holders
will receive, in addition to any Common Stock due upon conversion, the rights under the applicable rights agreement. However, if,
prior to any conversion, the rights have separated from the shares of the Common Stock in accordance with the provisions of the
applicable stockholders’ rights plan, the Conversion Price will be adjusted at the time of separation as if the Company distributed
to all holders of the Common Stock, shares of Equity Securities, evidences of Indebtedness, securities, assets or property as described
in clause (c) above, subject to readjustment in the event of the expiration, termination or redemption of such rights.

 

(g)          Except
as stated in this Section 7, the Company shall not adjust the Conversion Price for the issuances of shares of Common Stock
or any securities convertible into or exchangeable for shares of Common Stock or rights to purchase shares of Common Stock or such
convertible or exchangeable securities.

 

(h)          The
Company shall be permitted to decrease the Conversion Price by any amount for a period of at least 20 Business Days if the Board
of Directors determines that such decrease would be in the best interest of the Company. The Company also may (but is not required
to) decrease the Conversion Price to avoid or diminish income tax to holders of Common Stock or rights to purchase shares of Common
Stock in connection with a dividend or distribution of shares (or rights to acquire shares) or similar event.

 

(i)          Whenever
the Conversion Price is adjusted as herein provided, a similar proportional adjustment shall be made to the Threshold Closing Price.

 

(j)          Whenever
the Conversion Price is adjusted as provided in this Section 7, the Company shall promptly deliver written notice to the
Holders stating the facts requiring the adjustment and the manner of computation. If in connection with any dividend or distribution
described in this Section 7 the Holder is entitled to make an election to receive, in lieu of the adjustment to the Conversion
Price, the cash, indebtedness, Equity Securities or other property or assets to be distributed to the holders of Common Stock,
the Company shall give the Holders written notice of such proposed dividend or distribution at least 5 Business Days prior to the
record date for such dividend or distribution.

 

(k)          For
purposes of this Section 7, the number of shares of Common Stock at any time outstanding shall not include any shares of
Common Stock held in the treasury of the Company. The Company will not pay any dividend or make any distribution on shares of Common
Stock held in the treasury of the Company.

 

(l)          Whenever
any provision of the Notes requires the Company to calculate the VWAP over, or based on, a span of multiple calendar days, the
Company shall make appropriate adjustments to account for any adjustment to the Conversion Price that becomes effective, or any
event requiring an adjustment to the Conversion Price where the record date of the event occurs, at any time during the period
when the VWAP is being calculated.

 

8.          Effect
of Business Combinations, Asset Sales and Corporate Events.

 

In
the case of:

 

(a)          any
recapitalization, reclassification or change of the Common Stock (other than changes resulting from a subdivision or combination);

 

    	20

    	 

    

 

(b)          any
consolidation, merger or combination involving the Company;

 

(c)          any
sale, lease or other transfer to a third party of the consolidated assets of the Company and its Subsidiaries substantially as
an entirety; or

 

(d)          any
statutory share exchange,

 

in each case, as a result
of which the Common Stock would be converted into, or exchanged for, stock, other securities, other property or assets (including
cash or any combination thereof), then, at and after the effective time of the transaction, the right to convert the Notes will
become convertible into, in lieu of Common Stock, the kind and amount of shares of stock, other securities or other property or
assets (including cash or any combination thereof) that a holder of a number of shares of Common Stock based on the Conversion
Price immediately prior to such transaction would have owned or been entitled to receive (without giving effect to the Common Stock
Cap Limitation) (the “Reference Property”) upon such transaction. Thereafter, references in this Note to Common
Stock shall be deemed to apply mutatis mutandis to equivalent units of Reference Property, as nearly as is practical as
determined in good faith by the Company (provided that, for avoidance of doubt, no Conversion Price adjustments pursuant to Section
7 or otherwise shall be required thereafter with respect to any portion of the Reference Property that does not consist of
shares of stock). However, at and after the effective time of the transaction the volume-weighted average price will be calculated
based on the value (determined in a reasonable manner selected in good faith by the Company) of a unit of Reference Property that
a holder of one share of Common Stock would have received in such transaction. If the transaction causes the Common Stock to be
converted into, or exchanged for, the right to receive more than a single type of consideration (determined based in part upon
any form of stockholder election), the Reference Property into which the Notes will become convertible will be deemed to be the
kind and amount of consideration actually received by holders of a majority of the Common Stock that voted for such an election
(if electing between two types of consideration) or holders of a plurality of the Common Stock that voted for such an election
(if electing between more than two types of consideration), as the case may be. If the holders of Common Stock receive only cash
in such transaction, then for all conversions that occur after the effective date of such transaction (i) the consideration due
upon conversion of Notes shall be solely cash in an amount equal to the number of shares of Common Stock issuable upon conversion
of the Note based on the Conversion Price in effect on the Conversion Date (without giving effect to the Common Stock Cap Limitation),
multiplied by the price paid per share of Common Stock in such transaction and (ii) the Company shall satisfy its conversion
obligation by paying cash to converting Holders on the third Business Day immediately following the Conversion Date. The Company
shall not become a party to any such transaction unless the terms of such transaction are consistent with the foregoing.

 

9.          No
Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of
this Note. With respect to any fraction of a share that would otherwise be issuable upon the conversion or redemption of this
Note, an amount equal to such fraction multiplied by the VWAP of such share as of the date of such conversion or redemption shall
be paid in cash to the Holder.

 

    	21

    	 

    

 

10.         Stockholder
Voting.   So long as not less than 50% of the aggregate principal
amount of the Notes issued to the Investor on the Original Issuance Date are then issued and outstanding and held by the Investor
or any permitted Affiliate transferee of the Investor, the Company shall obtain the prior written consent of the Investor before
submitting any resolution or matter to a vote of the holders of Common Stock for approval, whether at an annual meeting, at a
special meeting of the stockholders called for such purpose or an action of the stockholders by written consent. Notwithstanding
the foregoing or anything else in this Agreement to the contrary, such prior written consent of Investor shall not be required
if such resolution or matter: (i) as submitted to the holders of Common Stock, requires by its terms for the approval thereof
(in addition to any approval requirements otherwise mandated by applicable law, the Company's governing documents or the National
Securities Exchange on which the Common Stock is then listed for trading) the affirmative vote (or consent, as the case may be)
of the voting power of such holders of Common Stock as would be required to authorize and approve such resolution or matter if
all then-outstanding Notes held by the Investor had been converted into Conversion Shares immediately prior to the record date
for such meeting of stockholders (or action by written consent, as the case may be) and the Investor had voted all of such Conversion
Shares against such resolution or matter; or (ii) it relates to (A) the election or removal of directors of the Company, (B) the
ratification of the appointment of an independent registered public accounting firm for the Company, (C) the Proposal, (D) any
increase in the number of shares of authorized Common Stock as contemplated by Section 3(c) or (E) advisory votes required
to be submitted to the stockholders of the Company by federal law. For avoidance of doubt, this Section 10 shall not be
applicable to stockholder-initiated proposals required to be submitted to the stockholders of the Company by federal law or pursuant
to the bylaws of the Company (as in effect as of the date hereof or as amended in accordance with Section 4.02 of the Investment
Agreement).

 

11.         Events
of Default; Collection Fees; Waiver.

 

(a)          The
occurrence of any of the following events or circumstances shall constitute an “Event of Default” for purposes
of this Note: (i) the admission in writing by the Company of its insolvency; (ii) the commission of any voluntary act of bankruptcy
by the Company; (iii) the execution by the Company of a general assignment for the benefit of creditors; (iv) the filing by or
against the Company of any petition in bankruptcy or any petition for relief under the provisions of the federal bankruptcy act
or any other state or federal law for the relief of debtors and the continuation of such petition without dismissal for a period
of sixty (60) days or more; (v) the failure to pay any principal on this Note when due and payable; (vi) default in any payment
of accrued interest under the terms of this Note when due and payable on any Note when due and payable and such default continues
for a period of 30 days; (vii) the failure of Company to comply with any other covenants in, or to perform any of its obligations
under, this Note or any other “Transaction Document” referred to in the Purchase Agreement or any document, instrument
or agreement executed in connection herewith and such default continues for a period of 30 days; (viii) the appointment of a receiver
or trustee to take possession of the property or assets of the Company; (ix) any dissolution of the Company; (x) the adoption by
the Company of any plan of liquidation; or (x) the failure by the Company, within 60 days, to pay, bond or otherwise discharge
any judgments or orders for the payment of money the total uninsured amount of which for the Company or any of its Subsidiaries
exceeds $20 million, which are not stayed while on appeal. The Company shall promptly notify each Holder of the occurrence of any
Event of Default. If any Event of Default other than pursuant to clauses (i), (ii), (iii), (iv), (viii), (ix) or (x) shall have
occurred and be continuing, and in any such event, the Holders of a majority of the outstanding principal amount of the Notes outstanding,
may declare that the Outstanding Balance payable under the Notes shall become and be forthwith due and payable in full. If any
Event of Default (other than an Event of Default pursuant to clauses (i), (ii), (iii), (iv), (viii), (ix) or (x)) shall have occurred
and be continuing, and in any such event, the Outstanding Balance payable under this Note shall immediately and automatically become
and be forthwith due and payable in full.

 

    	22

    	 

    

 

(b)          If
an Event of Default occurs and if this Note is placed in the hands of an attorney for collection (whether or not suit is filed),
or if this Note is collected by suit or legal proceedings or through bankruptcy proceedings, the Company agrees to pay in addition
to all sums then due hereunder, including outstanding principal and accrued unpaid interest, reasonable fees of one attorney for
the Holder and its Affiliates. The Company hereby waives demand and presentment for payment, notice of nonpayment, protest, notice
of protests, notice of dishonor, notice of intention to accelerate and notice of acceleration, bringing of suit and diligence in
taking any action to collect amounts called for hereunder and in the handling of securities at any time existing in connection
herewith. In addition, the Company is and shall be directly and primarily liable for the payment of all sums owing and to be owing
hereon, regardless of and without any notice, diligence, act or omission as or with respect to the collection of any amount called
for hereunder.

 

12.         Default
Interest.

 

(a)          Any
payment on the Notes which becomes payable, including payments under Section 2, Section 3, Section 4, Section
5 and Section 6, but is not paid when the same becomes due and payable, shall bear interest from the required payment
date at the Default Interest Rate.

 

(b)          While
any Event of Default exists, or after the occurrence of maturity, howsoever maturity shall occur, whether by acceleration, redemption,
a demand repayment or otherwise, the Company shall pay interest on the principal amount and any other amounts then past due from
time to time outstanding under each Note at the Default Interest Rate.

 

(c)          Accrued
and unpaid interest calculated at the Default Interest Rate (including interest on past due interest) shall be due and payable
upon demand.

 

    	23

    	 

    

 

13.         Maximum
Rate of Interest.  Notwithstanding any provisions to the contrary in this Note, or in any of the documents
relating hereto, in no event shall this Note or such documents require the payment or permit the charging or collection of interest
in excess of the maximum amount or highest lawful rate permitted by the applicable usury laws. It is the intention of the Company
and the Holders to comply in all respects with applicable usury laws, and in no event shall the Company pay, for the use, forbearance
or detention of money, interest at a rate or in an amount in excess of the highest lawful rate permitted by applicable law. If
any such excess interest is contracted for, charged or received under this Note or under the terms of any of the documents relating
hereto, or in the event the maturity of the indebtedness evidenced by this Note is accelerated in whole or in part, or in the
event that all or part of the principal or accrued unpaid interest of this Note shall be prepaid, so that under any of such circumstances
the amount of interest contracted for, charged or received under this Note or under any of the documents relating hereto, on the
amount of principal actually outstanding from time to time under this Note, shall exceed the maximum amount of interest permitted
by the applicable usury laws, then in any such event (a) the provisions of this Section 13 shall govern and control, (b) neither
the Company nor any other person or entity now or hereafter liable for the payment hereof, shall be obligated to pay the amount
of such interest to the extent that it is in excess of the maximum amount of interest permitted by the applicable usury laws,
(c) any such excess which may have been collected shall be either applied as a credit against the then unpaid principal amount
hereof or refunded to the Company, at the holder’s option, and (d) the effective rate of interest shall be automatically
reduced to the maximum lawful rate of interest allowed under the applicable usury laws as now or hereafter construed by the courts
having jurisdiction thereof. It is further agreed that without limitation of the foregoing, all calculations of the rate of interest
contracted for, charged or received under this Note or under such other documents which are made for the purpose of determining
whether such rate exceeds the maximum lawful rate of interest, shall be made, to the extent permitted by the applicable usury
laws, by amortizing, prorating, allocating and spreading during the period of the full stated term of the indebtedness evidenced
hereby, all interest at any time contracted for, charged or received from the Company or otherwise by the holder or holders hereof
in connection with such indebtedness.

 

14.         Payments
Generally.  All payments to be made by the Company
shall be made without condition or deduction for any counterclaim, defense, recoupment, set off or withholding of any type or
nature unless otherwise required by law. Except as otherwise expressly provided herein, all payments by the Company hereunder
to each Holder shall be made to such Holder, by the method and at the address as such Holder shall have from time to time specified
to the Company in writing for such purpose, without the presentation or surrender of such Note or making any notation thereon.
Unless otherwise specified, all amounts payable hereunder shall be received by each Holder no later than the close of business
on the date specified herein, or if such date is not a Business Day, the next succeeding Business Day and no interest on such
payment will accrue in respect of the delay.

 

15.         Amendments
and Waivers.

 

(a)          Any
term or provision of this Note may be waived or amended (including any Event of Default) in any respect with the written consent
of the Company and holders of a majority of the principal amount of the outstanding Notes; provided, that any such amendment
or waiver must apply to all Notes and further provided, however, that the waiver or amendment of any terms and provisions
regarding the payment or the conversion or redemption of the Notes require the approval of all Holders. When the occurrence of
any Event of Default is waived, it is deemed cured, but no such waiver shall extend to the occurrence of any subsequent or other
Event of Default without the consent of a majority of the principal amount of all Notes outstanding or the Holders of all Notes
outstanding, as applicable.

 

    	24

    	 

    

 

(b)          No
waiver by the Holders of any of its rights or remedies hereunder or otherwise, shall be considered a waiver of any other subsequent
right or remedy of the Holder. No delay or omission in the exercise or enforcement by the Holders of any rights or remedies shall
ever be construed as a waiver of any right to remedy of the Holder; and no exercise or enforcement of any such rights or remedies
shall ever be held to exhaust any right or remedy of the Holder.

 

(c)          For
the purpose of determining whether the Holders of the requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given, Notes directly or indirectly owned by the Company or any
of its Subsidiaries shall not be deemed to be outstanding.

 

16.         Transfers.

 

(a)          Without
the prior written consent of the Company (which consent may be withheld in the Company’s sole discretion prior to the fifth
anniversary of the Original Issuance Date, but shall not be unreasonably withheld following the fifth anniversary of the Original
Issuance Date), the Holder will not Transfer any Note; provided, however, that the Holder may Transfer the all or
any portion of the Notes to an Affiliate of the Purchaser. Any such transferee shall agree to be bound by this Agreement. Notwithstanding
the foregoing, nothing in this Section 16 shall impose any limitation or restriction on the ability of the Holder to issue,
sell or transfer any interests in the Holder or any permitted Affiliate transferee of the any Note to any other Person, so long
as NGP Natural Resources X, L.P. continues to control the Holder or such Affiliate.

 

(b)          Subject
to the restrictions in clause (a) of this Section 16 and to the limitations set forth below, all or any portion of any Note
shall be freely transferable. If a Holder desires to transfer all or a portion of a Note, such Holder shall deliver the certificate
representing such Note to be transferred to the Company along with written instructions as to the name and address of the transferee
and as to what portion of such Note is being transferred. Upon receipt of such certificate and such instructions, the Company shall
cancel the certificate representing the Note being transferred and shall promptly execute and deliver a new certificate representing
the Note to the transferee in accordance with such instructions and, if such transfer only involves a partial transfer of the Note
being transferred, the Company shall also promptly execute and deliver to the transferring Holder a new certificate representing
the retained principal amount of the Note. The transferee and, to the extent only a portion of a Note is being transferred, the
transferring Holder shall countersign the new certificates issued by the Company and shall return one copy to the Company to be
retained in the corporate records of the Company. The transferring Holder shall be deemed to remain the owner of the Note being
transferred until the transferee delivers such countersigned copy of the certificate to the Company pursuant to the immediately
preceding sentence. Each Note (or portion thereof) transferred in accordance with the foregoing shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried on such transferred Note (or portion thereof).

 

    	25

    	 

    

 

(c)          The
Notes have not been registered under the Securities Act. The Notes may not be sold, offered for sale, pledged or hypothecated in
the absence of a registration statement in effect with respect to the Notes under the Securities Act or pursuant to an exemption
from registration thereunder and, in the case of a transaction exempt from registrations, unless sold pursuant to Rule 144 under
the Securities Act or the Company has received documentation reasonably satisfactory to it (which may include an opinion of counsel)
that such transaction does not require registration under the Securities Act.

 

17.         Replacement
of Notes. Upon receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss,
theft, destruction or mutilation of, any Note and

 

(a)          in
the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is,
or is nominee for, Investor or another Holder of a Note with a minimum net worth of at least $5,000,000, such Person’s own
unsecured agreement of indemnity shall be deemed to be satisfactory), or

 

(b)          in
the case of mutilation, upon surrender and cancellation thereof,

 

within five Business
Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated the date of such
lost, stolen, destroyed or mutilated Note.

 

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

 

19.         Severability.
In case any provision in this Note shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby and such provision shall be ineffective only to
the extent of such invalidity, illegality or unenforceability.

 

    	26

    	 

    

 

20.         Interpretation.
 Unless otherwise specified in this Note, all accounting terms used herein shall be interpreted, all determinations with
respect to accounting matters under this Note shall be made, and all financial statements and certificates and reports as to financial
matters required to be furnished to the Purchaser under this Note shall be prepared, in accordance with GAAP applied on a consistent
basis during the periods involved and in compliance as to form in all material respects with applicable accounting requirements
and with the published rules and regulations of the Commission with respect thereto. Section and Annex references in this Note
are references to the corresponding Section and Annex to this Note, unless otherwise specified. All references to instruments,
documents, contracts and agreements are references to such instruments, documents, contracts and agreements as the same may be
amended, supplemented and otherwise modified from time to time, unless otherwise specified. The word “including” shall
mean “including but not limited to” and shall not be construed to limit any general statement that it follows to the
specific or similar items or matters immediately following it. Any reference in this Note to $ shall mean U.S. dollars. If the
last day of such period is a non-Business Day, the period in question shall end on the next succeeding Business Day. Any words
imparting the singular number only shall include the plural and vice versa. The words such as “herein,” “hereinafter,”
“hereof” and “hereunder” refer to this Note as a whole and not merely to a subdivision in which such words
appear unless the context otherwise requires. The division of this Note into Sections and other subdivisions and the insertion
of headings are for convenience of reference only and shall not affect or be utilized in construing or interpreting this Note.

 

[Signature page follows]

 

    	27

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed as of the date first written above.

 

	 	TRIANGLE PETROLEUM CORPORATION
	 	 
	 	By:	/s/ Jonathan Samuels
	 	Name:	 Jonathan Samuels
	 	Title:	President and Chief Executive Officer

 

Accepted and agreed to
by the Investor as of the date first written above.

 

NGP TRIANGLE HOLDINGS,
LLC

 

By:NGP Natural Resources
X, L.P., its managing member

 

By:G.F.W. Energy
X, L.P., its general partner

 

By:GFW X, L.L.C.,
its general partner

 

	By:	/s/ Kenneth A. Hersh	 
	Name:	Kenneth A. Hersh
	Title:	Authorized Member

 

Signature Page to
Note

 

    	 

    	 

    

 

ANNEX A

 

	Maturity:	3 years from date of issuance
	 	 
	Interest rate:	12% per annum, compounding quarterly. The interest rate will increase by 300
bps every six months unless and until the Common Stock Cap Limitation ceases to apply, subject to a maximum aggregate interest
rate of __.
	 	 
	Guarantors:	All U.S. Subsidiaries that are not prohibited by their organizational documents, contract or other agreement from guaranteeing these notes; provided, however, that the Company shall use its reasonable best efforts to obtain consents or waivers under such organizational documents, contract or other agreement in order to permit such guarantee..
	 	 
	Covenants &	 
	Other Terms:	Such covenants and other terms as are customary for the senior notes of a publicly-traded company engaged in the onshore U.S. oil and gas exploration and production business having the same credit rating as the Company as of the time of such issuance.

 

The parties agree to negotiate
in good faith to reach agreement on the definitive terms of these notes.

 

Annex A, Page 1 of 1

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