Document:

EX-4.1

 Exhibit 4.1 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, SA/NV, AS OPERATOR OF THE EUROCLEAR SYSTEM (“EUROCLEAR”) AND
CLEARSTREAM BANKING, SOCIÉTÉ ANONYME, LUXEMBOURG (“CLEARSTREAM, LUXEMBOURG” AND, TOGETHER WITH EUROCLEAR, “EUROCLEAR/CLEARSTREAM”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS MADE TO THE BANK OF NEW YORK
DEPOSITORY (NOMINEES) LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED, HAS AN INTEREST HEREIN. 
  
 

 
  

					
	Number R-1				$365,000,000
			
					ISIN XS1171913111
			4.30% Senior Note due 2045		
			
	 Rate of Interest
		 Maturity Date
		 Original Issue Date

	    4.30%		January 29, 2045		January 29, 2015  

 MONSANTO COMPANY, a corporation duly organized and
existing under the laws of Delaware (herein called the “Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to The Bank of New York Depository
(Nominees) Limited, or registered assigns, the principal sum of THREE HUNDRED & SIXTY FIVE MILLION DOLLARS on the Maturity Date shown above, and to
pay interest thereon from January 29, 2015 or from the most recent Interest Payment Date (which term, as well as all other capitalized terms used herein, shall have the meanings assigned in such Indenture unless otherwise indicated) to which
interest has been paid or duly provided for, semi-annually on January 29 and July 29 in each year, commencing July 29, 2015, at the rate of 4.30% per annum, until the principal hereof is paid or made available for payment. The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such payment, which shall be January 14 or July 14 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

Payment of the principal of (and premium, if any) and any such interest on this Note will be made at the office or agency of the Company
maintained for that purpose, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Company payment of interest may be
made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or by wire transfer to an account maintained by the Person entitled thereto as specified in the Security Register, provided that
such Person shall have given the Trustee written wire instructions at least five Business Days prior to the applicable Interest Payment Date. Interest shall be computed on the basis of a 360-day year consisting of twelve 30-day months. A
“Business Day” is defined as a day other than a Saturday, Sunday or legal holiday or other day on which banking institutions or trust companies in New York City, New York or Taipei, Taiwan, or any other city in which the paying agent is
being utilized, are authorized or required by law, regulation or executive order to close. All payment dates with respect to the Notes, whether at maturity, upon earlier redemption or any interest payment date, shall be determined in accordance with
the time zone applicable to New York City, New York. 
 This Note is one of a duly authorized issue of securities of the Company (herein
called the “Notes”), issued and to be issued in one or more series under an Indenture, dated as of July 1, 2014 (herein called the “Indenture,” which term shall have the meaning assigned to it in such instrument), between
the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities of the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the series designated
above, initially limited in aggregate principal amount to $365,000,000. 
 The terms of this Note include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (“TIA”). This Note is subject to all such terms, and by acceptance hereof, Holders agree to be bound by all of such terms, as the same may be
amended from time to time. Holders are referred to the Indenture and the TIA for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms of this Note and the terms of the
Indenture, the terms of the Indenture shall control. 

 The “Paying Agent” for the purpose of paying all principal (and premium, if any) and
interest then due on the Notes is initially The Bank of New York Mellon, London Branch, and the “Security Registrar” for the purpose of registering the Notes and transfers and exchanges of the Notes is initially The Bank of New York Mellon
(Luxembourg) S.A. 
 Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has
been executed by the Trustee referred to above by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

									
	DATED: January 29, 2015				 MONSANTO COMPANY

 

				
	 TRUSTEE’S CERTIFICATE OF AUTHENTICATION
  
				By		  

	  
 This is one of the Securities of the series designated
therein
     referred to in the within-mentioned Indenture.
						Vice President and Treasurer
	  
 The Bank of New York Mellon Trust Company, N.A., as
Trustee
				ATTEST:
			
					  

	BY		  
				Assistant Secretary
			Authorized Signatory				

 [REVERSE OF NOTE] 

MONSANTO COMPANY 

4.30% Senior Note due 2045 

 

 The Notes will be subject to redemption as follows: 

Optional Redemption: 
 (i) The Company shall
have the option to redeem the Notes on not less than 30 nor more than 60 days’ notice, in whole but not in part, on each January 29 on or after January 29, 2017 at a redemption price equal to 100% of the principal amount of the Notes
being redeemed, plus accrued and unpaid interest, if any, to but excluding the Redemption Date. 
 Tax Redemption: 

(i) If a Tax Event occurs, the Company may redeem the Notes, in whole, but not in part, at the Company’s option at any time within 90
days following the occurrence of such Tax Event, at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest, if any, to but excluding the Redemption Date. 

(ii) “Tax Event” means that: (a) the Company has or will become obliged to pay additional amounts with respect to the Notes
as provided or referred to under “Tax Redemption — Additional Amounts” below as a result of any change in, or amendment to, the laws, treaties, or rulings of the United States or any political subdivision or any authority thereof or
therein having the power to tax, or any change in the application or official interpretation of such laws or regulations or rulings (including a holding by a court of competent jurisdiction in the United States), which change or amendment is enacted
or adopted on or after January 29, 2015; or (b) on or after January 29, 2015, any action is taken by a taxing authority of, or any decision has been rendered by a court of competent jurisdiction in, the United States or any political
subdivision of or in the United States or any authority thereof or therein having the power to tax, including any of those actions specified in the preceding clause, whether or not such action was taken or decision was rendered with respect to the
Company, or any change, amendment, application or interpretation is officially proposed, which, in any such case, will result in a material probability that the Company will become obliged to pay additional amounts with respect to the Notes;
provided that, prior to the publication of any notice of redemption pursuant to this paragraph, the Company has delivered to the Trustee a certificate signed by one of the Company’s officers stating that the Company is entitled to effect such
redemption and setting forth a statement of facts showing that the conditions precedent to the Company’s right so to redeem have occurred and a copy of an opinion of a reputable independent counsel of the Company’s choosing to that effect
based on that statement of facts. However no such notice of redemption shall be given less than 30 nor more than 90 days prior to the earliest date on which the Company would be obliged to pay such additional amounts if a payment in respect of the
Notes were then due. 

 (iii) Holders of Notes to be redeemed will receive notice (which notice shall be irrevocable)
by first-class mail (and/or, to the extent permitted by applicable procedures or regulations, electronically) at least 30 and not more than 60 days before the Redemption Date. 

Additional Amounts 

(i) All payments of principal, interest and premium (if any) in respect of the Notes by the Company or a paying agent on the Company’s
behalf shall be made without withholding or deduction for or on account of any present or future taxes, duties, assessments or other governmental charges (“Taxes”) imposed by or on behalf of the United States or any political subdivision
thereof or any authority therein or thereof having the power to tax, unless the withholding or deduction of such Taxes is required by law. In that event, the Company shall pay to a Holder that is a Non-U.S. Person (as defined below) such additional
amounts as may be necessary to ensure that the net amount received by such Holder, after withholding or deduction for or on account of such Taxes, will be equal to the amount such Holder would have received in the absence of such withholding or
deduction. However, no additional amounts shall be payable with respect to any Note if the beneficial owner is subject to taxation solely for reasons other than its ownership of Notes, nor shall additional amounts be payable for or on account of:
(a) any Tax that would not have been imposed, withheld or deducted but for any present or former connection (other than the mere fact of being a Holder or beneficial owner of such Note) between the Holder or the beneficial owner of such Note
and the United States or the applicable political subdivision or authority, including, without limitation, such Holder or beneficial owner being or having been a citizen or resident of the United States or the applicable political subdivision or
authority or treated as being or having been a resident thereof; (b) any Tax that would not have been imposed, withheld or deducted but for the Holder or beneficial owner of such Note being or having been with respect to the United States a
personal holding company, a controlled foreign corporation, a “10 percent shareholder” of the Company, a passive foreign investment company, a foreign private foundation or other foreign tax-exempt organization, or a corporation that
accumulates earnings to avoid U.S. federal income tax; (c) any Tax that is payable other than by withholding or deduction by the Company or a paying agent from payments in respect of such Note; (d) any gift, estate, inheritance, sales,
transfer, value added, personal property, excise or similar Tax; (e) any Tax that would not have been imposed, withheld or deducted but for a change in any law, treaty, regulation, or administrative or judicial interpretation that becomes
effective after the applicable payment becomes due or is duly provided for, whichever occurs later; (f) any Tax that would not have been imposed, withheld or deducted but for the presentation of such Note more than 30 days after the applicable
payment becomes due or is duly provided for, whichever occurs later, except to 

 

 
the extent that such Holder would have been entitled to such additional amounts on presenting such Note for payment on the last date of such period of 30 days; (g) any Tax that would not
have been imposed, withheld or deducted but for the failure of the Holder or beneficial owner of such Note to comply with applicable certification, information, documentation or other reporting requirements concerning the nationality, residence,
identity or connection with the United States of such Holder or beneficial owner; (h) any Tax that would not have been imposed, withheld or deducted but for the failure of the Holder or beneficial owner (or any financial institution or other
person through which the Holder or beneficial owner holds any Notes) having failed to comply with any certification, information, identification, documentation or other reporting requirements (including entering into and complying with an agreement
with the Internal Revenue Service to report information) with respect to itself or any beneficial owner or account holders thereof; or (i) any combination of items (a) - (h). 

(ii) For purposes of clauses (a) - (i) above, references to the Holder or beneficial owner of a Note include a fiduciary, settlor,
beneficiary or person holding power over such Holder or beneficial owner, if such Holder or beneficial owner is an estate or trust, or a partner, member or shareholder of such Holder or beneficial owner, if such Holder or beneficial owner is a
partnership, limited liability company or corporation. In addition, the Company will not pay additional amounts to the Holder of a Note if such Holder or the beneficial owner of such Note is a fiduciary, partnership, limited liability company or
other fiscally transparent entity, or if the Holder of such Note is not the sole beneficial owner of such Note, as the case may be, to the extent that a beneficiary or settlor with respect to the fiduciary, or a beneficiary, partner or member of the
partnership, limited liability company or other fiscally transparent entity, or a beneficial owner would not have been entitled to the payment of an additional amount had the beneficiary, settlor, beneficial owner, partner or member received
directly its beneficial or distributive share of the payment. For purposes of “— Additional Amounts,” the term “Non-U.S. Person” means any person that is, for U.S. federal income tax purposes, a foreign corporation,
nonresident alien individual, a nonresident fiduciary of a foreign estate or foreign trust or a foreign partnership one or more of the partners of which is such a foreign corporation, nonresident alien individual or nonresident fiduciary. 

(iii) Any additional amounts paid on the Notes will be in U.S. dollars. Any reference in the terms of the Notes to any amounts in respect of
the Notes shall be deemed also to refer to any additional amounts which may be payable under this provision. 
 Offer to Repurchase Upon Change of Control
Triggering Event: 

 (i) Upon the occurrence of a Change of Control Triggering Event, unless the Company has
exercised its right to redeem the Notes as described under “Optional Redemption” above, each Holder will have the right to require the Company to purchase all or a portion of such Holder’s Notes, at a purchase price equal to 101% of
the principal amount thereof plus accrued and unpaid interest, if any, to but excluding the date of purchase, subject to the rights of Holders to receive interest due on the scheduled Interest Payment Dates. 

(ii) Within 30 days following the date upon which the Change of Control Triggering Event occurs or, at the Company’s option, prior
thereto but after the public announcement of the pending Change of Control, the Company will send, by first class mail, a notice to each Holder setting forth the Company’s offer to purchase the Notes, specifying the purchase date, which will be
no earlier than 30 days nor later than 60 days from the date the notice is mailed, unless otherwise required by law. If mailed prior to the date of the Change of Control, the notice will state that the offer is subject to completion of the Change of
Control. Holders electing to sell their Notes will be required to surrender their Notes in accordance with the offer, to the Paying Agent at the address to be specified in the notice, or transfer their Notes to the Paying Agent by book-entry
transfer, prior to the close of business on the third Business Day prior to the payment date. 
 (iii) The Company will not be required to
make a Change of Control offer if a third party makes such an offer in the manner and at the times set forth above and otherwise in compliance with the requirements set forth above, and such third party purchases all Notes of such series properly
tendered and not withdrawn under its offer. 
 (iv) “Change of Control” means any of the following: 

(a) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or
a series of related transactions, of all or substantially all of the assets of the Company and its subsidiaries to any “person” (as that term is used in Section 13(d)(3) of the U.S. Securities Exchange Act of 1934, as amended (the
“Exchange Act”)); 
 (b) any transaction (including any merger or consolidation) the result of which is that any
“person” becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the outstanding voting power of the Company’s outstanding shares; 

(c) the Company consolidates with, or merges with or into, any entity, or any entity consolidates with or merges with or into the Company,
unless following the transaction the Company’s shareholders prior to the transaction own a majority of the voting power of the outstanding shares of the surviving entity;

 

 (d) the first day on which the majority of the members of the Company’s board of
directors cease to be continuing directors, which are (i) persons who are directors at the date of issuance of the Notes or (ii) persons nominated or elected with the approval of a majority of continuing directors; or 

(e) the adoption of a plan for the Company’s liquidation or dissolution. 

(v) “Change of Control Triggering Event” means that the Notes cease to be rated Investment Grade by at least two of the three
Rating Agencies on any date during the period starting 60 days prior to the Company’s first public announcement of any Change of Control and ending 60 days following consummation of the Change of Control (subject to extension so long as any of
the Rating Agencies has publicly announced that it is considering a possible ratings change, other than an announcement with positive implications), and the applicable Rating Agencies confirm that any reduction in ratings is attributable to the
Change of Control. However, no Change of Control Triggering Event will be deemed to have occurred unless and until the Change of Control has been consummated. 

(vi) “Fitch” means Fitch Ratings Inc. and its successors. 

(vii) “Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating category
of Moody’s); a rating of BBB- or better by S&P (or its equivalent under any successor rating category of S&P); and a rating of BBB- or better by Fitch (or its equivalent under any successor rating category of Fitch). 

(viii) “Moody’s” means Moody’s Investors Service, Inc. and its successors. 

(ix) “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and its
successors. 
 (x) “Rating Agency” means each of Moody’s, S&P and Fitch; provided, that if any of Moody’s, S&P
and Fitch ceases to provide rating services to issuers or investors for reasons outside of the Company’s control, the Company may appoint another “nationally recognized statistical rating organization” within the meaning of
Section 3(a)(62) under the Exchange Act as a replacement for such Rating Agency. 
 The Securities of this series do not have the
benefit of any sinking fund obligations. 
 In the event of redemption of this Note in part only, a new Note or Security of this series
and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 
 The
Indenture contains provisions for defeasance at any time of the entire indebtedness of this Note and/or certain restrictive covenants and Events of Default with respect to this Note, in each case upon compliance with certain conditions set forth in
the Indenture. 

 If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and any premium and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security
Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Note are payable, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like
tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

If at any time the Depositary for this Note notifies the Company that it is unwilling or unable to continue as Depositary for this Note or
if at any time the Depositary shall no longer be eligible under the Indenture with respect to this Note, and if a successor Depositary eligible under the Indenture for this Note is not appointed by the Company within 90 days after the Company
receives such notice or becomes aware of such ineligibility, the Company’s election that the Notes of this issue be represented by a Book-Entry Security shall no longer be effective with respect to this Note, and the Company shall execute, and
the Trustee upon receipt of a Company Order for the authentication and delivery of definitive Securities shall authenticate and deliver, Securities in definitive form in an aggregate principal amount equal to the principal amount of this Note in
exchange for this Note. The Company may at any time and in its sole discretion determine that the Securities of this series shall no longer be represented by Book-Entry Securities. In such event the Company shall execute, and the Trustee, upon
receipt of a Company Order, shall authenticate and deliver, Securities of this series in definitive form and in an aggregate principal amount equal to the principal amount of the Book-Entry Security or Securities representing this series in exchange
for such Book-Entry Security or Securities. 
 No Holder of any Securities shall have any right to institute any proceeding, judicial or
otherwise, with respect to the Indenture or for the appointment of a receiver or trustee, or for any other remedy under the Indenture, unless: (1) the Trustee shall have received written notice from such Holder of a continuing Event of Default
in respect of such Securities; (2) the Trustee shall have received a written request from the Holders of not less than 25% in principal amount of the Outstanding Securities of the series in respect of which the Event of Default has occurred to
institute proceedings in respect of such Event of 

 

 
Default in its own name as trustee under the Indenture; (3) such Holder or Holders have offered to the Trustee indemnity satisfactory to the Trustee against the costs, expenses and
liabilities to be incurred in compliance with such request; (4) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and (5) no direction inconsistent with
such written request has been given to the Trustee during such 60 day period by the Holders of a majority in principal amount of the Outstanding Securities of such series. 

The Securities of this series are issuable only in registered form without coupons in denominations of $100,000 and integral multiples of
$1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a
different authorized denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

No recourse shall be had for the payment of the principal of (or premium, if any) or the interest on this Note, or for any claim based
hereon, or otherwise in respect hereof, or based on or in respect of the Indenture, against any incorporator, stockholder, officer, director or employee, as such, past, present or future, of the Company or any successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and
released. 
 Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or
the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes (subject to Section 308 of the Indenture), whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent
shall be affected by notice to the contrary. 
 This Note shall be governed by and construed in accordance with the laws of the State of
New York. 
 The Company may cause ISIN numbers to be printed on this Note as a convenience to Holders. No representation is made as to
the accuracy of such numbers, and reliance may be placed only on the other identification numbers printed hereon.ex_101.htm

Exhibit 10.1

 

SIXTH AMENDMENT TO CREDIT AGREEMENT

 

THIS SIXTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into effective as of January 23, 2015 (the “Effective Date”), among YUMA EXPLORATION AND PRODUCTION COMPANY, INC., a Delaware corporation (the “Borrower”), the undersigned lenders party to the Credit Agreement (the “Lenders”) and SOCIÉTÉ GÉNÉRALE, in its capacity as Administrative Agent and Issuing Bank (the “Administrative Agent”).

 

RECITALS

 

A.           Borrower, the Lenders and Administrative Agent are parties to a Credit Agreement dated as of August 10, 2011, as amended by that certain First Amendment and Limited Waiver to Credit Agreement and Assignment, dated as of September 30, 2012, as further amended by that certain Second Amendment to Credit Agreement and Assignment, dated as of February 13, 2013, as further amended by that certain Third Amendment to Credit Agreement and Assignment, dated as of May 20, 2013, as further amended by that certain Fourth Amendment to Credit Agreement, dated as of April 22, 2014, and as further amended by that certain Fifth Amendment to Credit Agreement, dated as of October 14, 2014 (as amended, restated, modified or supplemented from time to time until the date hereof, the “Credit Agreement”).

 

B.           Borrower has requested certain amendments to the Credit Agreement as set forth herein and, subject to the conditions precedent set forth herein, the parties hereto have agreed to so amend the Credit Agreement.

 

NOW, THEREFORE, in consideration of these premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Same Terms. All terms used herein which are defined in the Credit Agreement shall have the same meanings when used herein, unless the context hereof otherwise requires or provides. In addition, (i) all references in the Loan Documents to the “Agreement” shall mean the Credit Agreement, as amended by this Amendment, and (ii) all references in the Loan Documents to the “Loan Documents” shall mean the Loan Documents, as amended by this Amendment, as the same shall hereafter be amended from time to time.

 

2. Amendments to Credit Agreement. Subject to the conditions precedent set forth in Section 4 hereof, the Credit Agreement is amended as follows:

 

A. Section 1.02.  Section 1.02 of the Credit Agreement is hereby amended as follows:

 

(a) The definition of “Additional Series Preferred Stock” is hereby inserted into Section 1.02 in its alphabetically appropriate place:

 

“Additional Series Preferred Stock” means any preferred stock issued by Yuma Energy not constituting Disqualified Capital Stock if, and only if, all or a substantial portion of the proceeds of such Additional Series Preferred Stock have been contributed to the Borrower or its Subsidiaries (as evidenced by a certificate of a Responsible Officer of the Borrower confirming receipt of such proceeds in form and substance reasonably satisfactory to the Administrative Agent).

 

(b) The definition of “Applicable Margin” is hereby amended by inserting the following language immediately following the pricing table set forth therein:

 

“Each change in the Applicable Margin shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change, provided, however, that if at any time the Borrower fails to deliver a Reserve Report pursuant to Section 8.12(a), then the “Applicable Margin” means the rate per annum set forth on the grid when the Borrowing Base Utilization Percentage is at its highest level until such time as such Reserve Report has been delivered.”

 

 

 

1

 

 

(c) The definition of “Change of Control” is hereby amended and restated in its entirety to provide:

 

“Change of Control” means the occurrence of any of the following: (a) the Borrower ceases to be a wholly-owned direct or indirect Subsidiary of the Parent Guarantor, (b) the Parent Guarantor ceases to be a wholly-owned direct or indirect Subsidiary of Yuma Energy, (c) the Yuma Energy Holders cease to beneficially own and control, directly or indirectly, at least 40% of the issued and outstanding shares of Yuma Common Stock, or (d) any Person or two or more Persons acting as a group (as defined in Section 13(d)(3) of the Securities Exchange Act of 1934) shall have acquired, directly or indirectly, beneficial ownership (within the meaning of Rule 13d-3 of the SEC under the Securities Exchange Act of 1934) of 40% or more of the outstanding Yuma Common Stock on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right).

 

(d) The definition of “Funded Debt” is hereby amended by inserting the following language immediately before the period at the end thereof: “all determined on a consolidated basis with respect to Borrower and its Subsidiaries in accordance with GAAP”.

 

(e) The definition of Interest Expense is hereby amended and restated in its entirety to provide:

 

“Interest Expense” means, for any period, the sum (determined without duplication) of the gross interest expense of the Borrower and its Subsidiaries for such period calculated in accordance with GAAP, and including in any event:  (a) amortization of debt discount to the extent included in interest expense under GAAP, (b) capitalized interest, (c) the portion of any payments or accruals under Capital Leases allocable to interest expense to the extent included in interest expense under GAAP, and (d) dividends and interest, if any, paid by the Borrower whether or not in cash in connection with any preferred stock or other preferred equity interest of the Borrower, the Parent Guarantor or Yuma Energy (including the Series A Preferred Stock and any Additional Series Preferred Stock), minus the portion of any payments or accruals under Synthetic Leases allocable to interest expense.

 

(f) The definition of “Qualified IPO” is hereby deleted from the Credit Agreement.

 

(g) The definition of “Transaction Costs” is hereby amended and restated in its entirety to provide:

 

“Transaction Costs” means costs and expenses incurred in connection with the pursuit of the merger and reorganization of a wholly-owned Subsidiary of Yuma Energy with and into Yuma Energy.

 

(h) The definition of “Yuma Common Stock” is hereby inserted into the Credit Agreement in its alphabetically appropriate place:

 

“Yuma Common Stock” means the common stock, no par value per share, of Yuma Energy.

 

(i) The definition of “Yuma Energy” is hereby inserted into the Credit Agreement in its alphabetically appropriate place:

 

“Yuma Energy” means Yuma Energy, Inc. (formerly known as Pyramid Oil Company), a California corporation.

 

(j) The definition of “Yuma Energy Holders” is hereby inserted into the Credit Agreement in its alphabetically appropriate place:

 

“Yuma Energy Holders” means the officers and members of the board of directors of Yuma Energy as of January 23, 2015

 

 

 

2

 

 

B. Section 8.01.  Section 8.01 of the Credit Agreement is hereby amended as follows:

 

(a) Clauses (a) and (b) of Section 8.01 are amended and restated to provide as follows:

 

(a)           Annual Financial Statements.  As soon as available, but in any event not later than 120 days after the end of each fiscal year of Yuma Energy, (i) its audited consolidated balance sheet and the related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, in each case setting forth in comparative form the figures for the previous fiscal year and all reported on by independent public accountants of recognized national standing or other independent auditor reasonably acceptable to the Administrative Agent (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of Yuma Energy on a consolidated basis in accordance with GAAP consistently applied, and (ii) an unaudited consolidating balance sheet and related statement of operations, in each case with the Borrower and its Consolidated Subsidiaries as a discrete segment, in accordance with GAAP consistently applied.

 

(b)           Quarterly Financial Statements.  As soon as available, but in any event not later than 60 days after the end of each of the first three fiscal quarters of each fiscal year of Yuma Energy, its consolidated balance sheets and the related statements of operations, stockholders’ equity and cash flows, together with consolidating balance sheets (with the Borrower and its Consolidated Subsidiaries as a discrete segment) and the related statements of operations, as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in the case of the consolidated financial statement only in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of Yuma Energy and the Borrower and its Consolidated Subsidiaries on a consolidated and consolidating basis, as applicable, in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes.

 

(b) Clause (h) of Section 8.01 of the Credit Agreement is amended by inserting “Yuma Energy, Parent Guarantor,” immediately before each instance of “the Borrower” therein.

 

(c) Clause (i) of Section 8.01 of the Credit Agreement is amended and restated in its entirety to provide as follows:

 

“(i)           SEC and Other Filings; Reports to Shareholders. Promptly upon its becoming available, each Form 10-K, Form 10-Q, registration statement or prospectus filed by Yuma Energy or any of its Subsidiaries with any securities exchange or the SEC and each material report, notice or proxy statement sent by Yuma Energy or any of its Subsidiaries to its shareholders generally, as the case may be.”

 

C. Section 8.12.  Clause (c) of Section 8.12 of the Credit Agreement is hereby amended by (i) deleting the word “and” at the end of clause (iii) and inserting a comma in place thereof, and (ii) inserting immediately prior to the period at the end of clause (d) the following:

 

“and (v) the Borrower is in compliance with the requirement of Section 8.14(a) that the total value of the Mortgaged Properties comprises at least 85% of the total value of the proved developed Oil and Gas Properties and at least 50% of the total value of the proved undeveloped Oil and Gas Properties, in each case, evaluated in the most recently completed Reserve Report (or, if the Borrower is not in compliance with such requirement, setting forth in reasonable detail which Oil and Gas Properties the Borrower proposes to mortgage in order to comply with such requirement)”.

 

D. Section 8.14.  Clause (a) of Section 8.14 of the Credit Agreement is hereby amended and restated in its entirety to provide as follows:

 

“(a)           In connection with each redetermination of the Borrowing Base, the Borrower shall review the Reserve Report and the list of current Mortgaged Properties (as described in Section 8.12(c)(vi)) to ascertain whether the Mortgaged Properties represent at least 85% of the total value of the proved developed Oil and Gas Properties and at least 50% of the total value of the proved undeveloped Oil and Gas Properties, in each case, evaluated in the most recently completed Reserve Report after giving effect to exploration and production activities, acquisitions, dispositions and production.  In the event that the Mortgaged Properties do not represent at least 85% or 50%, as applicable, of such total value, then the Borrower shall, and shall cause its Subsidiaries to, grant, within thirty (30) days of delivery of the certificate required under Section 8.12(c), to the Administrative Agent as security for the Indebtedness a first-priority Lien interest (provided that Excepted Liens of the type described in clauses (a) to (d) and (f) of the definition thereof may exist, but subject to the provisos at the end of such definition) on additional Oil and Gas Properties not already subject to a Lien of the Security Instruments such that after giving effect thereto, the Mortgaged Properties will represent at least 85% of the total value of the proved developed Oil and Gas Properties and at least 50% of the total value of the proved undeveloped Oil and Gas Properties, in each case, evaluated in the most recently completed Reserve Report.  All such Liens will be created and perfected by and in accordance with the provisions of Mortgages, deeds of trust, Security Agreements and financing statements or other Security Instruments, all in form and substance satisfactory to the Administrative Agent and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes.  In order to comply with the foregoing, if any Subsidiary places a Lien on its Oil and Gas Properties and such Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with Section 8.14(b).”

 

 

 

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E. Section 8.17.  Section 8.17 of the Credit Agreement is hereby amended by deleting the reference to “Parent Guarantor” therein and inserted in place thereof the word “Borrower”.

 

F. Section 9.01.  Clause (c) of Section 9.01 of the Credit Agreement is hereby amended by deleting the final sentence thereof and inserting in place thereof: “This ratio shall be determined on a consolidated basis with respect to Borrower and its Subsidiaries in accordance with GAAP.”

 

G. Section 9.04.  Section 9.04 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“Section 9.04.                                Dividends, Distributions and Redemptions.  The Borrower will not, and will not permit any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, return any capital to its stockholders, members or partners or make any distribution of its Property to its Equity Interest holders, provided that so long as no Default has occurred and is continuing or will result therefrom, no Borrowing Base Deficiency then exists or results therefrom and the Borrowing Base Utilization Percentage is 90% or less after giving effect thereto, then (i) the Borrower may declare and pay cash distributions to its direct and indirect Equity Interest holders to permit such holders to pay federal and state taxes due with respect to the income of the Borrower and Parent Guarantor, (ii) the Borrower may declare and pay dividends with respect to its Equity Interests payable solely in additional shares of its Equity Interests (other than Disqualified Capital Stock), (iii) Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests, (iv) the Borrower may make Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans for management or employees of the Borrower and its Subsidiaries, (v) once a month, the Borrower may make Restricted Payments, directly or indirectly, to Yuma Energy to permit Yuma Energy to pay dividends in respect of (x) its Series A Preferred Stock pursuant to and accordance with the Certificate of Determination or other agreement governing the Series A Preferred Stock that do not exceed amounts required under such Certificate of Determination and (y) any Additional Series Preferred Stock pursuant to and accordance with any applicable certificate of determination or other agreement governing such Additional Series Preferred Stock that do not exceed amounts required under such certificate of determination, and (vi) the Borrower may make Restricted Payments to Yuma Energy or Parent Guarantor in an amount not to exceed (x) $9,000,000 in the fiscal year ending December 31, 2014 or (y) $8,000,000 in any other fiscal year (the “Total Costs Cap”) for the purposes of (A) paying General and Administrative Costs and (B) Transaction Costs; provided, however, that in the event the Transaction Costs cause the Total Costs to exceed the Total Costs Cap, such Total Costs Cap shall be increased by the lesser of (1) the amount by which the Transaction Costs cause the Total Costs to exceed $9,000,000 in the fiscal year ending December 31, 2014 or $8,000,000 in any other fiscal year and (2) $1,000,000.”

 

3. Redetermination of the Borrowing Base.  Effective as of the Effective Date, until the next redetermination of the Borrowing Base in accordance with the provisions of Section 2.07 of the Credit Agreement (which shall occur on February 1, 2015, the Borrower having irrevocably notified (and the Borrower does hereby irrevocably so notify) the Administrative Agent that it has elected such date to be the date of an Interim Redetermination in accordance with Section 2.07(b) of the Credit Agreement) or such earlier date in accordance with the provisions of Section 2.07, the Borrowing Base shall remain at $40,000,000.  Both the Borrower, on the one hand, and the Administrative Agent and the Lenders, on the other hand, agree that the redetermination of the Borrowing Base pursuant to this Section 3 shall constitute the October 15, 2014 Scheduled Redetermination of the Borrowing Base and not an Interim Redetermination of the Borrowing Base pursuant to Section 2.07(b) of the Credit Agreement.

 

4. Conditions Precedent. The obligations and agreements of the Lenders as set forth in this Amendment are subject to the satisfaction (in the opinion of Administrative Agent), unless waived in writing by the Administrative Agent and Lenders comprising at least the Required Lenders, of each of the following conditions (and upon such satisfaction, this Amendment shall be deemed to be effective as of the Effective Date):

 

A. The Administrative Agent shall have received multiple original counterparts, as requested by the Administrative Agent, of this Amendment duly and validly executed and delivered by duly authorized officers of the Borrower, the Guarantor, the Administrative Agent and Lenders comprising at least the Required Lenders.

 

B. The Administrative Agent shall have received a certificate of the Secretary, an Assistant Secretary or other duly authorized officer satisfactory to the Administrative Agent of Pyramid Oil LLC, a California limited liability company (“Pyramid”) setting forth (i) resolutions of its board of directors or board of managers (or equivalent body) or its managing member authorizing the execution, delivery and performance of the Loan Documents to which it is a party, and that such resolutions have not been modified, rescinded or amended and are in full force and effect, (ii) the officers of Pyramid (y) who are authorized to sign the Loan Documents to which Pyramid is a party and (z) who will, until replaced by another officer or officers duly authorized for that purpose, act as its representative for the purposes of signing documents and giving notices and other communications in connection with this Agreement and the transactions contemplated hereby, (iii) specimen signatures of such authorized officers, and (iv) the articles or certificate of incorporation and bylaws or certificate of formation and partnership agreement or certificate of formation and limited liability company agreement (as the case may be) of Pyramid, certified as being true and complete.

 

C. The Administrative Agent shall have received certificates of the appropriate State agencies with respect to the existence, qualification and good standing of Pyramid.

 

 

 

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D. The Administrative Agent shall have received from Borrower, the Parent Guarantor and Pyramid, as applicable, duly executed counterparts (in such number as may be requested by the Administrative Agent) of the Security Instruments, including the Guaranty Agreement from Pyramid and the other Security Instruments described on Annex I hereto.  In connection with the execution and delivery of the Security Instruments, the Administrative Agent shall:

 

(i)           be satisfied that the Security Instruments create first priority, perfected Liens (subject only to Excepted Liens identified in clauses (a), (b), (c) and (f) of the definition thereof, but subject to the provisos at the end of such definition) on at least 85% of the total value of the Borrower’s proved developed Oil and Gas Properties and at least 50% of the total value of the Borrower’s proved undeveloped Oil and Gas Properties evaluated in the most recently delivered Reserve Report; and

 

(ii)           have received certificates (if any), together with undated, blank stock powers (if applicable) for each such certificate, representing all of the certificated issued and outstanding Equity Interest of each Person the Equity Interest of which are required to be pledged pursuant to the Loan Documents.

 

E. The Administrative Agent shall have received an opinion of (A) Jones and Keller, special counsel to Borrower, Pyramid and Parent Guarantor, in form and substance satisfactory to the Administrative Agent and (B) local counsel in California and North Dakota, in form and substance satisfactory to the Administrative Agent.

 

F. The Administrative Agent shall have received a certificate of insurance coverage of the Borrower and Pyramid evidencing that the Borrower and Pyramid are carrying insurance in accordance with Section 7.12.

 

G. The Administrative Agent shall have received title opinions and other title information and data as the Administrative Agent may reasonably request satisfactory to the Administrative Agent setting forth the status of title to that portion of the Oil and Gas Properties to be mortgaged in connection with this Amendment as the Administrative Agent shall reasonably determine, including, without limitation, evidence reasonably satisfactory to the Administrative Agent that Yuma Energy has conveyed, directly or indirectly, its right, title and interest in and to its Oil and Gas Properties located in California to Pyramid.

 

H. The Administrative Agent shall be satisfied with the environmental condition of the Oil and Gas Properties of the Borrower and its Subsidiaries to be mortgaged in connection with this Amendment.

 

I. The Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower certifying that the Borrower has received all consents and approvals required by Section 7.03 of the Credit Agreement with respect to the transactions and Loan Documents contemplated by this Amendment.

 

J. The Administrative Agent shall have received (a) payment of all out-of-pocket fees and expenses (including reasonable attorneys’ fees and expenses) incurred by the Administrative Agent in connection with the preparation, negotiation and execution of this Amendment and the other documents in connection herewith, and (b) all fees due and payable under the Credit Agreement and under any separate fee agreement entered into by the parties pursuant to the Credit Agreement.

 

K. The Borrower shall have confirmed and acknowledged to the Administrative Agent and the Lenders, and by its execution and delivery of this Amendment, the Borrower does hereby confirm and acknowledge to the Administrative Agent and the Lenders, that (i) all representations and warranties contained herein or in the other Loan Documents or otherwise made in writing in connection herewith or therewith shall be true and correct with the same force and effect as though such representations and warranties have been made on and as of the Effective Date and (ii) no Default or Event of Default exists under the Credit Agreement or any of the other Loan Documents.

 

5. Certain Representations.  Borrower represents and warrants that, as of the Effective Date:  (a) Borrower has full power and authority to execute this Amendment and the other documents executed in connection herewith and this Amendment and such other documents constitute the legal, valid and binding obligation of Borrower enforceable in accordance with their terms, except as enforceability may be limited by general principles of equity and applicable bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting the enforcement of creditors’ rights generally; and (b) no authorization, approval, consent or other action by, notice to, or filing with, any governmental authority or other person is required for the execution, delivery and performance by Borrower thereof.  In addition, Borrower represents that after giving effect to this Amendment all representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct in all material respects on and as of the Effective Date as if made on and as of such date except to the extent that any such representation or warranty expressly relates solely to an earlier date, in which case such representation or warranty is true and correct in all material respects as of such earlier date.

 

 

 

5

 

 

6. No Further Amendments.  Except as amended hereby, the Credit Agreement shall remain unchanged and all provisions shall remain fully effective between the parties.

 

7. Acknowledgments and Agreements.  Borrower acknowledges that on the date hereof all outstanding Indebtedness is payable in accordance with its terms, and Borrower waives any defense, offset, counterclaim or recoupment with respect thereto.  Borrower, Administrative Agent and each Lender do hereby adopt, ratify and confirm the Credit Agreement, as amended hereby, and acknowledge and agree that the Credit Agreement, as amended hereby, is and remains in full force and effect.  Borrower acknowledges and agrees that its liabilities and obligations under the Credit Agreement, as amended hereby, and under the Loan Documents, are not impaired in any respect by this Amendment.  Any breach of any representations, warranties and covenants under this Amendment shall be an Event of Default under the Credit Agreement.

 

8. Limitation on Agreements.  The modifications set forth herein are limited precisely as written and shall not be deemed (a) to be a consent under or a waiver of or an amendment to any other term or condition in the Credit Agreement or any of the Loan Documents (other than the waiver of the Specified Default), or (b) to prejudice any right or rights which Administrative Agent now has or may have in the future under or in connection with the Credit Agreement and the Loan Documents, each as amended hereby, or any of the other documents referred to herein or therein. This Amendment shall constitute a Loan Document for all purposes.

 

9. Confirmation of Security.  Borrower hereby confirms and agrees that all of the Security Instruments, as may be amended in accordance herewith, which presently secure the Indebtedness shall continue to secure, in the same manner and to the same extent provided therein, the payment and performance of the Indebtedness as described in the Credit Agreement as modified by this Amendment.

 

10. Counterparts.  This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed an original, but all of which constitute one instrument.  In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties hereto.

 

11. Incorporation of Certain Provisions by Reference.  The provisions of Section 12.09 of the Credit Agreement captioned “Governing Law; Jurisdiction; Consent to Service of Process” are incorporated herein by reference for all purposes.

 

12. Entirety, Etc.  This Amendment, the Expenses and Indemnity Letter and all of the other Loan Documents embody the entire agreement between the parties.  THIS AMENDMENT, THE EXPENSES AND INDEMNITY LETTER AND ALL OF THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

[The rest of this page is intentionally left blank; the signature pages follow.]

 

 

 

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment to be effective as of the date and year first above written.

 

BORROWER:

 

 

	 	

YUMA EXPLORATION AND PRODUCTION

COMPANY, INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Kirk F. Sprunger	 
	 	 	Kirk F. Sprunger	 
	 	 	Chief Financial Officer, Corporate Secretary and Treasurer	 
	 	 	 	 

 

 

 

7

 

 

 

ADMINISTRATIVE AGENT, ISSUING BANK

AND LENDER:

 

	 	SOCIÉTÉ GÉNÉRALE	 
	 	 	 	 
	
 

	
By: 

	/s/ Max Sonnonstine	 
	 	 	Max Sonnonstine	 
	 	 	Director, Portfolio Manager	 
	 	 	 	 

 

LENDER:

 

	 	

ONEWEST BANK, FSB

	 
	 	 	 	 
	
 

	
By: 

	/s/ Whitney Randolph	 
	 	 	Whitney Randolph	 
	 	 	Senior Vice President	 
	 	 	 	 

 

LENDER:

 

	 	

LEGACYTEXAS BANK (successor to ViewPoint Bank, N.A.)

	 
	 	 	 	 
	
 

	
By: 

	/s/ David Carter	 
	 	 	David Carter	 
	 	 	Vice President	 
	 	 	 	 

 

 

 

8

 

 

THE GUARANTOR HEREBY CONSENTS TO THE EXECUTION, DELIVERY AND PERFORMANCE OF THE TERMS OF THIS AMENDMENT BY THE BORROWER:

 

	 	

THE YUMA COMPANIES, INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Kirk Sprunger	 
	 	 	Kirk Sprunger	 
	 	 	Chief Financial Officer, Corporate Secretary and  Treasurer	 
	 	 	 	 

 

	 	

PYRAMID OIL LLC

	 
	 	 	 	 
	
 

	
By: 

	/s/ Kirk Sprunger	 
	 	 	Kirk Sprunger	 
	 	 	Chief Financial Officer, Secretary and  Treasurer	 
	 	 	 	 

 

 

 

9

 

Annex I

 

to Sixth Amendment to Credit Agreement

 

Security Instruments

 

Security Agreement from Pyramid

 

California Mortgage from Pyramid

 

Hazardous Materials Indemnity and Environmental Undertaking (California) from Pyramid

 

North Dakota Mortgage from Borrower

 

Pledge Agreement from Parent Guarantor (pledging Borrower’s Equity Interests)

 

Pledge Agreement from Borrower (pledging Pyramid’s Equity Interests)

 

Louisiana Mortgage from Borrower

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