Document:

Exhibit 10.1

 

LICENSE
AGREEMENT

 

THIS
AGREEMENT is made and effective as of January_, 2020 (“Effective Date”) by and between LIFEGUARD LICENSING
CORP. (“Licensor”), a corporation organized under the laws of the State of Delaware with offices at 595 Madison
Avenue, Suite 1101, New York, New York I 0022 and Canbiola, Inc., a corporation organized under the laws of the State of Florida
with offices at 960 South Broadway, Suite 120, Hicksville, New York 11801 (“Licensee”).

 

W
I T N E S S E T H:

 

A.
Licensor and its affiliates have established
a high-standing and reputation with the public for highest quality products.

 

B.
The preservation of the reputation and prestige
of Licensor, its affiliates, and their trademarks is of paramount importance and Licensor must have and retain the right to take
such actions as are necessary to ensure that all activities in connection with the design, development, manufacture, marketing,
promotion, distribution or sale of products uphold and conform to the reputation and prestige of such trademarks as designations
for highest quality products.

 

C.
Licensee has significant experience and expertise
in the manufacture, marketing, distribution and/or sale of certain “Products” (as defined below), and/or in the maintenance
and buildup of brand value, and Licensor is entering into this Agreement in order to obtain such experience and expertise for
the benefit of the “Brand” (as defined below); moreover, the parties acknowledge that Licensee’s failure to
perform certain of its material obligations under this Agreement may result in damage to the value of Licensor’s “Brand”
(as defined below) and its good will, in the minds of the trade and the public within the “Territory” (as defined
below).

 

D.
Licensee hereby desires to be granted the
right hereunder to use the mark “LIFEGUARD” (the “Licensed Mark”) throughout the territory set
forth on Schedule A attached hereto (the “Territory,” with countries within the Territory sometimes
referred to individually as a “Country” and/or collectively as “Countries”) in connection
with the manufacture, marketing, distribution and sale of the products set forth on Schedule A attached hereto (“Products”).

 

E.
The term “Brand” as used herein
means the “LIFEGUARD” brand.

 

NOW,
THEREFORE, in consideration of the promises and agreements set forth herein, the parties, each intending to be legally bound hereby,
do promise and agree as follows.

 

1.
License Grant.

 

1.1
Licensor hereby grants to Licensee a non-exclusive
(or an exclusive as otherwise expressly defined in Schedule A attached hereto and made a part hereof by incorporation),
non transferrable, and non-sublicensable, license to use the Licensed Mark in the Territory solely in connection with the
manufacture, marketing, distribution and sale of Products strictly in accordance with the terms of this Agreement. Products
bearing the Licensed Mark that are sold by Licensee hereunder are referred to as “Licensed Products.” It is
understood and agreed that this license shall pertain only to the Licensed Products and does not extend to any other product or
service.

 

    	 	1	 

    	 

    

 

1.2
Licensed Products shall be of a fabrication,
styling, and quality reasonably appropriate for the Brand. All Licensed Products shall be constructed of such quality, materials,
componentry, and design as are approved in advance by Licensor in accordance with the provisions hereof.

 

1.3
All Licensed Products shall bear the Licensed
Mark in the form and manner reasonably approved by Licensor and no Licensed Product shall be sold by Licensee under any mark or
other designation other than the Licensed Mark.

 

1.4
Licensor reserves all rights, express or
implicit, to the Licensed Mark, except those which are granted specifically to Licensee hereunder, including the right to register
and use any domain names that include or relate to the Licensed Mark or any component, variation, simulation, derivation or abbreviation
thereof, and Licensor may exercise such rights in whole or in part at any time.

 

1.5
The rights granted to Licensee do not include
the right to operate a boutique or in- store concession under the Licensed Mark or any variation, simulation, derivation, and/or
abbreviation thereof or otherwise sell Licensed Products at retail.

 

1.6
Licensee shall use its reasonable best efforts
to develop and promote Licensed Products, to exploit the rights granted to it throughout the Territory and vigorously promote
the sale of Licensed Products consistent with the high standards and prestige of the Licensed Mark. It is anticipated that Licensee
shall set its wholesale prices of Licensed Products at a level that would encourage the development of sales of Licensed Products
while maintaining the image and prestige of the Brand. However, Licensee shall set its wholesale prices for Licensed Products
in its sole and absolute discretion.

 

1.7
Licensed Products shall not be (i) exported
from the Territory, (ii) sold outside the approved distribution channels within the Territory, or (iii) sold to a retail customer
if Licensee has reason to believe that such retail customer may divert Licensed Products, including by reason of a previous history
of diversion of Licensed Products, other Products or any other products. To “divert” means, for retail customers,
to resell or otherwise transfer Licensed Products other than to consumers.

 

2.
Term of the Agreement. This Agreement and the provisions hereof, except as otherwise provided, commence on the date
hereof and shall continue through for the period set forth on Schedule A attached hereto (the “Term”).

 

3.
Royalty/Marketing.

 

3.1
In consideration for the license granted hereunder, Licensee agrees to pay to Licensor, during the Term of this Agreement (including
any Sell-Off period pursuant to Paragraph 10 below), a royalty
in the amount set forth in Schedule A attached hereto (the “Royalty”) based on Licensee’s Net
Sales (as defined below) of Licensed Products.

 

    	 	2	 

    	 

    

 

3.2
Licensee shall account for and pay the Royalty within thirty (30) days after the close of each calendar quarter during each Annual
Period (each such quarterly period, the “Royalty Period”).

 

3.3
With each Royalty Payment, Licensee shall provide Licensor with a written royalty statement in a form reasonably acceptable to
Licensor. Such royalty statement shall be certified as accurate by a duly authorized financial officer of Licensee, reciting on
a country-by-country basis, the stock number, item, units sold, description, quantity shipped, gross invoice, amount billed customers
less discounts, returns and reportable sales for each Licensed Product. Such statements shall be furnished to Licensor whether
or not any Licensed Products were sold during the Royalty Period.

 

3.4
Licensee agrees to pay to Licensor a Guaranteed Minimum Royalty in accordance with the terms of Schedule A attached hereto
(the “Guaranteed Minimum Royalty”). As recited in Schedule A, a portion of the Guaranteed Minimum Royalty
for the first year shall be payable as an Advance against royalties (the “Advance”). The actual royalty payments
shall reflect the amount of all Guaranteed Minimum Royalty payments including any Advances made.

 

3.5
“Net Sales” shall mean Licensee’s gross sales (the gross invoice amount billed customers) of Licensed
Products, less discounts, rebates and freight charges actually shown on the invoice and, further, less any bona fide returns (net
of all returns actually made or allowed as supported by credit memoranda actually issued to the customers). No other costs incurred
in the manufacturing, selling, advertising, and distribution of the Licensed Products shall be deducted nor shall any deduction
be allowed for any uncollectible accounts or allowances. The Licensed Products shall not be used as give-a-ways and/or premiums
without the prior written consent of Licensor.

 

3.6
A Royalty obligation shall accrue upon the sale of the Licensed Products regardless of the time of collection by Licensee. For
purposes of this Agreement, a Licensed Product shall be considered “sold” upon the date when such Licensed Product
is billed, invoiced, shipped, or paid for, whichever event occurs first.

 

3.7
If Licensee sells any Licensed Products to any party affiliated with Licensee, or in any way directly or indirectly related to
or under the common control with Licensee, at a price less than the regular price charged to other parties, the Royalty payable
Licensor shall be computed on the basis of the regular price charged to other parties.

 

3.8
The receipt or acceptance by Licensor of any royalty statement, or the receipt or acceptance of any royalty payment made, shall
not prevent Licensor from subsequently challenging the validity or accuracy of such statement or payment.

 

    	 	3	 

    	 

    

 

3.9
Upon expiration or termination of this Agreement, all Royalty obligations, including any unpaid portions of the Guaranteed Minimum Royalty, shall be accelerated and shall immediately become due and payable.

 

3.10
Licensee’s obligations for the payment ofa Royalty and the Minimum Royalty shall
survive expiration or termination of this Agreement and will continue for so long as Licensee continues to manufacture, sell or
otherwise market the Licensed Products.

 

3.11
All payments due hereunder shall be made in United States currency drawn on a United States bank, unless otherwise specified between
the parties.

 

3.12
Late payments shall incur interest from the date originally due at the lower of (i) the prime rate prevailing in New York City
at Citibank, N.A. during the period of delinquency plus three (3) percentage points or (ii) the maximum rate of interest that
can be legally charged to Licensee.

 

3.13
Licensee shall expend not less than $300,000 in the aggregate during the initial term hereof on marketing and public relations
expenses featuring Licensed Products which have been approved by Licensor in accordance with the terms of this Agreement.

 

4.
Audit.

 

4.1
Licensor shall have the right, upon reasonable notice, to inspect Licensee’s books and records and all other documents and
material in the possession of or under the control of Licensee with respect to the subject matter of this Agreement at the place
or places where such records are normally retained by Licensee. Licensor shall have free and full access thereto for such purposes
and shall be permitted to be able to make copies thereof and extracts therefrom.

 

4.2
In the event that such inspection reveals a discrepancy in the amount of Royalty owed Licensor from what was actually paid, Licensee
shall pay such discrepancy, plus interest, calculated at the rate of one percent (1%)
per month, or the maximum rate allowed by law iflower. In the event that such discrepancy is in excess of five percent (5%) Licensee
shall also reimburse Licensor for the reasonable cost actually incurred of such inspection (including reasonable attorney’s
fees) incurred in connection therewith.

 

4.3
All books and records relative to Licensee’s obligations hereunder shall be maintained and kept reasonably accessible and
available to Licensor for inspection for at least three

(3)
years after termination of this Agreement.

 

4.4
In the event that an investigation of Licensee’s books and records is made, certain confidential and proprietary business
information of Licensee may necessarily be made available to the person or persons conducting such investigation. It is agreed
that such confidential and proprietary business information shall be retained in confidence by Licensor and shall not be used
by Licensor or disclosed to any third party, except for Licensor’s attorney’s, accountants and business representatives
on a need to know basis, or without the prior express written permission of Licensee unless required by law. It is understood
and agreed, however, that such information may be
used in any proceeding based on Licensee’s failure to pay its Royalty obligation.

 

    	 	4	 

    	 

    

 

5.
Warranties and Representations.

 

5.1
Licensor warrants and represents that:

 

5.1.1
it has the right, power and authority to enter into this Agreement; and

 

5.1.2
this Agreement does not contravene any other agreement to which Licensor is a party.

 

5.2
Licensee warrants and represents that:

 

5.2.1
it has full right, power and authority to enter this Agreement and the execution, delivery and performance of this Agreement has
been duly authorized by all appropriate corporate action;

 

5.2.2
this Agreement does not contravene any other Agreement to which Licensee is a party;

 

5.2.3
the Licensed Products and the manufacture, distribution, packaging, promotion, advertising and labels associated with the Licensed
Products shall fully comply with all applicable laws and regulations;

 

5.2.4
the packaging, promotional and advertising materials associated with the Licensed Products will not infringe upon the copyrights,
patents, trademarks, trade dress, or other intellectual property rights of any person, film, or entity.

 

5.2.5
it will use its best efforts to promote, market, sell and distribute the Licensed Products;

 

5.2.6
it has sufficient capital to operate and satisfy all financial obligations hereunder;

 

5.2.7
it shall be solely responsible for the manufacture, production, sale and distribution of the Licensed Products and will bear all
related costs associated therewith; and

 

5.2.8
Licensee agrees that it will not engage in any act or omission which may diminish or impair the good will, name or reputation
of either Licensor or the Trademark including, but not limited to, utilizing any plant which manufactures Licensed Products in
violation of the laws of the country in which the plant is located. Licensee further agrees not to employ workers under age sixteen
(16) in any plant which manufactures Licensed Products.

 

    	 	5	 

    	 

    

 

5.3
It is the intention of the parties that Licensee shall introduce the Licensed Products in all countries in the Territory on or
before the Product Introduction Date recited in Schedule A and commence shipment of Licensed Products in all countries in the
Territory on or before the Initial Shipment Date recited in Schedule A. Wilful failure to meet either the Product Introduction
Date or the Initial Shipment Date shall constitute grounds for immediate termination of this Agreement by Licensor.

 

6.
Notices, Quality Control; Samples and Approvals.

 

6.1
The License granted hereunder is conditioned upon Licensee’s full and complete compliance with the marking provisions of
the Trademark, patent and copyright laws of the United States and other countries in the Territory. Licensee’s right to
sell Licensed Products in a country in the Territory is subject to any restrictions imposed by the government of the United States
on the sale of products to customers in such country.

 

6.2
The Licensed Products, as well as all promotional, packaging and advertising material relative thereto, shall include all appropriate
legal notices as required by Licensor.

 

6.3
The Licensed Products shall be of a high quality which is at least equal to comparable products manufactured and marketed by Licensee
and in conformity with a sample approved in writing by Licensor.

 

6.4
If the quality of any Licensed Product falls below the quality, as previously approved by Licensor, Licensee shall use its reasonable
best efforts to restore such quality. In the event that Licensee has not taken appropriate steps to restore such quality within
fifteen (15) days after notification by Licensor, and has not cured such quality within thirty (30) days after notification by
Licensor, then, in such event, Licensor shall have the right to terminate this Agreement.

 

6.5
Prior to the commencement of manufacture and sale of the Licensed Products hereunder, Licensee shall submit to Licensor, at no
cost to Licensor and for written approval as to quality, six (6) sets of samples of all Licensed Products that Licensee intends
to manufacture and sell and one (I) complete set of all promotional and advertising material associated therewith. Licensor’s
approvals pursuant to this Agreement may be based solely on Licensor’s subjective standards, including its aesthetic judgment
regarding design, advertising, marketing and exploitation and the Brand, and may be withheld in Licensor’s sole and absolute
discretion. Once such samples have been approved by Licensor, Licensee shall not materially depart therefrom without Licensor’s
prior express written consent, which shall not be unreasonably withheld or delayed.

 

6.6
Licensee acknowledges that, while Licensor may disapprove an item submitted for its approval hereunder, Licensor may not be able
to express with any specificity its objection to and/or the reason for its disapproval of any particular item submitted for its
approval hereunder.

 

6.7
At least once during each calendar year, Licensee shall submit to Licensor, for approval, an additional six (6) sets of samples
of all Licensed Products and one set of all promotional and advertising materials
that Licensee intends to use in connection with the Licensed Products.

 

    	 	6	 

    	 

    

 

6.8
Licensee agrees to permit Licensor or its representative to inspect the facilities where the Licensed Products are being manufactured
and packaged at any time so requested by Licensor.

 

6.9
All Licensed Products shall be manufactured, offered for sale, sold, labeled, packaged and distributed, and advertised, marketed,
promoted, publicized and otherwise exploited, in accordance with all applicable laws and regulations throughout the Territory
and the countries in which Licensed Products are produced, including all child and other labor laws and regulations, all customs
requirements and country of origin regulations, those laws and regulations relating to health and safety, such as flammability-related
laws and regulations, and those laws and regulations relating to the disclosure of information to the consumer, such as truth-in-advertising
and labeling laws and regulations. Licensee shall monitor the performance of its manufacturers to assure compliance with these
laws and regulations in accordance with the laws of the countries and the countries in which Licensed Products are produced. Licensee
promptly shall notify Licensor upon learning of a failure by any manufacturer to comply with any such laws or regulations and
shall take all corrective actions as may be reasonably necessary or appropriate to prevent the failure from recurring; and Licensee
immediately shall terminate any manufacturer that intentionally or repeatedly fails to comply with any such laws or regulations.
Licensee also shall test (or have the manufacturers test), as appropriate, all Licensed
Products, using independent certified laboratories, to determine physical properties and all other required data, and provide
Licensor, upon request, with copies of all test results.

 

6.10
Licensee shall not, without prior written consent of Licensor, manufacture any Licensed Products during the last two (2) calendar
quarters of the Term unless a valid purchase order for Licensed Product is received by Licensee which requires delivery of Licensed
Product prior to the end of the Term.

 

7.
Notice and Payment.

 

7.1
Any notice required to be given pursuant to this Agreement shall be in writing and delivered personally to the other designated
party or delivered by a recognized national overnight courier service, to the party concerned at the address set forth on Schedule
A attached hereto (or such other address as a party may specify by notice in writing to the other).

 

8.
The Licensed Mark

 

8.1
Licensee shall use and display the Licensed Mark only in the form and manner designated or approved by Licensor from time to time
hereunder. Licensor shall notify Licensee ifit elects to change the form of the Licensed Mark and Licensee shall effect the change
as promptly as reasonably practicable. However, if, after the change has been effected, Licensee has an inventory of Licensed
Products bearing the previous form of the Licensed Mark, Licensee may sell off such Licensed Products, in the ordinary course.

 

    	 	7	 

    	 

    

 

8.2
Both during and after the term of this Agreement, Licensee shall not use the Licensed Mark or any component, variation, simulation,
derivation or abbreviation thereof, in whole or in part, as a corporate name, trade name, domain name or otherwise except as expressly
provided in this Agreement. Licensee shall not join any name(s) with the Licensed Mark so as to form a new mark. Licensee shall
not use any name in connection with the Licensed Mark in any materials or other printed matter. In that regard, Licensee acknowledges
that Licensor has not authorized Licensee to use the Licensed Mark or any designation or identification relating to the Licensed
Mark, Licensor or any Licensed Product, other than as specifically provided in this Agreement. Licensee shall not sign the Licensed
Mark or any component, variation, simulation, derivation or abbreviation thereof to any contracts, leases, bills of sale or other
instruments or hold itself out as a partner or co-venturer or as a general or special agent of Licensor, nor shall Licensee establish
any bank accounts under the Licensed Mark or any component, variation, simulation, derivation or abbreviation thereof.

 

8.3
Licensee acknowledges that, as between Licensee and Licensor, Licensor is the owner of all right, title and interest in and to
the Licensed Mark throughout the Territory in any form or embodiment thereof and is also the owner of the goodwill attached or
that shall become attached to the Licensed Mark in connection with the business and goods in relation to which the same has been,
is or shall be used. Sales by Licensee shall be deemed to have been made by Licensor for purposes of trademark registration and,
in that regard, all uses of the Licensed Mark by Licensee shall inure to Licensor’s benefit. Neither Licensee nor any of
its affiliates (including Affiliated Distributors) or any of the respective managers, officers, directors, members, shareholders,
owners, employees and agents of Licensee or any of its affiliates shall do anything or suffer anything to be done, whether under
or in connection with the business to be conducted hereunder or this Agreement or otherwise, that may, directly or indirectly,
(a) adversely affect any rights of Licensor in and to the Licensed Mark or any registrations thereof, (b) reduce or dilute the
value of the Licensed Mark or (c) disparage, dilute, detract from or reflect adversely upon the Image and, in that regard, Licensee
shall adopt and implement rigorous quality control systems for Licensed Products. Hereinafter, any of the affiliates of Licensee
and any of the respective managers, officers, directors, members, shareholders, owners, employees and agents of Licensee or any
of its affiliates shall be referred to collectively as the “Licensee Group.” Neither Licensee nor any member
of the Licensee Group shall seek to register the Licensed Mark or any component, variation, simulation, derivation or abbreviation
thereof in any jurisdiction as a trademark or service mark for any products or services. The provisions of and the obligations
of Licensee and the members of the Licensee Group shall survive Termination.

 

8.4
Licensee, at its expense, shall execute any documents, including registered user agreements and short form license agreements,
required to confirm Licensor’s ownership of all rights in and to the Licensed Mark and the respective rights of Licensor,
Licensor and Licensee under or in connection with this Agreement.

 

8.5
Licensee shall cooperate with Licensor in connection with the filing and prosecution of applications in Licensor’s name
to register the Licensed Mark for Products in the various countries within the Territory. All costs reasonably incurred by Licensor
in connection therewith, including the costs of prosecuting or defending opposition and cancellation proceedings and obtaining
clearance negotiated payments and the costs of the maintenance and renewal of any registrations that hereafter may issue, as well as attorneys’ fees, search costs and filing fees, shall be solely and exclusively
borne by Licensor.

 

    	 	8	 

    	 

    

 

8.6
Licensee shall not use the Licensed Mark, nor may any Licensed Products be advertised, marketed, promoted, publicized or otherwise
exploited or distributed, offered for sale or sold, (A) in any Country in which the Licensed Mark had not theretofore been registered
in the applicable trademark class for Products or an application to register the Licensed Mark in such class for Products has
not theretofore been filed, until (I) an appropriate trademark search has been conducted and an application to register the Licensed
Mark for Products has been filed in such Country or (2) Licensor determines that it would be preferable not to seek to register
the Licensed Mark for Products in such Country but that there is no material impediment to the use of the Licensed Mark therein,
and (3) Licensor notifies Licensee that it may do so, and (B) in a British Commonwealth Country, or any other Country where required,
prior to the execution of a registered user agreement or similar type agreement approved by Licensor and the filing thereof with
the appropriate governmental agency.

 

8.7
Licensee shall use the Licensed Mark in each country strictly in compliance with the legal requirements of, or in effect within,
each such country. Licensee shall place on all Licensed Products and all ancillary materials all legends, markings and notices
(i) required to give appropriate notice of any trademark or other rights in or to the Licensed Mark in accordance with the governing
trademark and other applicable laws, rules and regulations of, or in effect within, the various countries or (ii) otherwise reasonably
requested by Licensor.

 

8.8
Neither Licensee nor any member of the Licensee Group shall challenge Licensor’s ownership of or the validity of the Licensed
Mark, any application for registration or registration of the Licensed Mark or any rights of Licensor or Licensor in the Licensed
Mark. The provisions of and the obligations of Licensee and the members of the Licensee Group shall survive Termination.

 

8.9
If Licensee learns of any infringement, imitation or counterfeiting of the Licensed Mark or Licensed Products or of any use of
a trademark similar to the Licensed Mark or of any instances of the importation and sale in any country of otherwise legitimate
Products bearing the Licensed Mark (including Licensed Products) by any third party, it shall notify Licensor thereof. Upon receipt
of Licensee’s notice or when any such situation comes to their attention, Licensor and Licensor shall take such action as
they in their sole discretion deem advisable for the protection of their rights in and to the Licensed Mark and Licensed Products.
If requested by Licensor, Licensee shall reasonably cooperate with and follow the reasonable directions of Licensor in connection
therewith, including by conducting investigations to determine the extent of the infringement or counterfeiting activity, acting
as a plaintiff or co-plaintiff in lawsuits and causing its officers to execute pleadings and other related documents. Licensor
shall not be required to take any action if it deems it inadvisable to do so (and in its sole discretion may discontinue any action
it may commence) and Licensee may not take any action with respect to the Licensed Mark or the counterfeiting or diversion of
Licensed Products without Licensor’s prior approval. The costs, fees and expenses (including investigatory expenses and
legal expenses such as attorneys’ fees, court costs and filing fees) incurred in connection with any action relating to
Products taken hereunder shall be borne by Licensee.

 

    	 	9	 

    	 

    

 

9.
Intellectual Property Rights

 

9.
1 Any trademark, copyright, design right, moral right or similar such right and any other intellectual property right in or that
may be created in any Licensed Products (or any aspect thereof) or any packaging materials or marketing materials, including photographs,
designed or approved by Licensor (each an “IP Right”) shall be, as between Licensor and Licensee, the exclusive
property of Licensor. If any of such Licensed Products (or any aspect thereof) or packaging materials or marketing materials are
not designed and/or created by Licensor or its designee, they shall be deemed “works made for hire” for Licensor or
its designee within the meaning of the U.S. Copyright Law and/or other applicable comparable laws or, if they do not so qualify,
all ownership rights thereto, including any of Licensor’s IP Rights therein, shall be deemed assigned to Licensor or its
designee. Licensee shall cooperate with the owner thereof in the preparation, filing and prosecution of applications in the name
of Licensor or its designee to record any claims to Licensor’s IP Rights in any Licensed Product (or any aspect thereof),
packaging material or marketing material. Neither Licensee nor any member of the Licensee Group shall do anything or suffer anything
to be done that may affect adversely any of the rights of Licensor or its designee in Licensed Products (or any aspect thereof)
or in any packaging materials or marketing materials, including filing any application in its name to record any claims to any
of Licensor’s IP Rights in any Licensed Products (or any aspect thereof) or in any packaging materials or marketing materials,
and shall do all things required by Licensor to preserve and protect those rights, including placing the copyright notice specified
by the Universal Copyright Convention or otherwise on all Licensed Products, and on all packaging materials and marketing materials.

 

9.2
Licensee represents and warrants that the Licensed Products and the materials used in connection with Licensed Products, as well
as any product names adopted for use in connection with any particular Licensed Products, will not violate the intellectual property
rights of any third party and it shall be Licensee’s responsibility, at its expense, to obtain all necessary clearances
for the Licensed Products, the materials and the product names used in connection with Licensed Products.

 

10.
Termination. The following termination rights are in addition to the termination rights provided elsewhere in the Agreement:

 

10.1
Immediate Right of Termination. Licensor shall have the right to immediately terminate this Agreement by giving written
notice to Licensee in the event that Licensee does any of the following:

 

10.1.1
fails to meet the Product Introduction Date or
the Initial Shipment Date as specified in Schedule A;

 

10.1.2
after having commenced sale of the Licensed Products, fails to sell Licensed Products for two (2) consecutive Royalty Periods;
or

 

10.1.3
fails to obtain or maintain general liability insurance in the amount and of the type provided for herein; or

 

    	 	10	 

    	 

    

 

10.1.4
files a petition in bankruptcy or is adjudicated a bankrupt or insolvent, or makes an assignment for the benefit of creditors,
or an arrangement pursuant to any bankruptcy law, or if the Licensee discontinues its business or a receiver is appointed for
the Licensee or for the Licensee’s business and such receiver is not discharged within thirty (30) days; or

 

10.1.5
breaches any of the provisions of this Agreement relating to the unauthorized assertion of rights in the Property and/or the Trademark;
or

 

10.1.6
fails, after receipt of written notice from Licensor, to immediately discontinue the distribution or sale of the Licensed Products
or the use of any packaging or promotional material which does not contain the requisite legal legends; or

 

10.1.7
fails to make timely payment of Royalties when due if not cured within ten (10) days upon notification.

 

10.2
Immediate Right to Terminate a Portion. Licensor shall have the right to immediately
terminate the portion(s) of the Agreement relating to any Product(s) and/or for any country in the Territory if Licensee, for
any reason, fails to meet the Product Introduction Dates or the Initial Shipment Dates specified in Schedule A or, after
the commencement of manufacture and sale of a particular Licensed Product in a particular country, ceases to sell commercial quantities
of such Licensed Product in such country for two (2) consecutive Royalty Periods.

 

10.3
Right to Terminate on Notice. This Agreement may be terminated by either party upon at least thirty (30) days prior written
notice to the other party hereto in the event of a material breach of a material provision of this Agreement by the other party,
provided that, during the thirty

(30)
days period, the breaching party fails to cure such breach.

 

10.4
Additional Termination Right. Licensee shall have the additional rights of termination as set forth in Schedule A.

 

11.
Post Termination Rights.

 

11.1
Not less than thirty (30) days prior to the expiration of this Agreement or immediately upon termination thereof, Licensee
shall provide Licensor with a complete schedule of all inventory of Licensed Products then on-hand (the “Inventory”).

 

11.2
Upon expiration or termination of this Agreement, except for reason of a material breach of Licensee’s duty to comply with
the quality control or legal notice marking requirements, Licensee shall be entitled, for an additional period of three (3) months
(the “Sell-off Period”) and on a non-exclusive basis, to continue to sell such Inventory. Such sales shall
be made subject to all of the provisions of this Agreement and to an accounting for and the payment of a Royalty thereon. Such
accounting and payment shall be due and paid within thirty (30) days after the close of the Sell-off Period.

 

    	 	11	 

    	 

    

 

11.3
Upon the expiration or termination of this Agreement, all of the rights of Licensee under this Agreement shall forthwith terminate
and immediately revert to Licensor and Licensee shall immediately discontinue all use of the Property and the like, at no cost
whatsoever to Licensor.

 

11.4
Upon termination of this Agreement for any reason whatsoever, Licensee agrees to immediately return or provide certified proof
of destruction to Licensor all material relating to the Property including, but not limited to, all artwork, color separations,
prototypes and the like, as well as any market studies or other tests or studies conducted by Licensee with respect to the Property,
at no cost whatsoever to Licensor.

 

12.
Infringements. When Licensee becomes aware that a third party is or may be engaged in the unauthorized use of the Property
or Trademark, Licensee shall promptly give Licensor written notice thereof, which notice shall fully describe the potentially
infringing actions by such third party. Licensee shall not take any other action regarding such infringement or possible infringement
without Licensor’s written approval. Licensee shall cooperate with the Licensor at no out-of-pocket expense to Licensee
in connection with any action taken by the Licensor to terminate infringements. After each Party is reimbursed for any cost or
expenses actually incurred in pursuing an infringement, Licensee shall share with Licensor, on a pro-rata basis, in the proceeds
of any award from or settlement of an infringement action to the extent that such award or settlement reflects damages to Licensee’s
rights.

 

93.
Indemnity.

 

93.1
Licensee agrees to indemnify and hold Licensor harmless from all third party claims, liabilities, causes of action, judgments,
damages, losses and expenses (including reasonable attorneys’ fees) arising out of or resulting from (i) any breach by Licensee
of any representation, warranty, term and/or covenant herein; (ii) any actual or alleged defects in Licensed Products including
the packaging or in its manufacture or distribution whether or not grounded in products liability or breach of warranty (as to
performance characteristics or otherwise); (iii) any use, manufacture, distribution or sale of Licensed Products; or (iv) any
actual or alleged infringement of any patents, copyrights, trademarks or other rights such as trade secrets and rights of publicity
and privacy resulting from the manufacture, distribution, sale and advertisement of Licensed Products.

 

93.2
Licensor agrees to indemnify and hold Licensee harmless from all third party claims, liabilities, causes of action, judgments,
damages, losses and expenses (including reasonable attorneys’ fees) arising out of any breach of Licensor’s representations
and warranties; provided however, that such indemnity shall only be applicable in the event of a final decision by a court of
competent jurisdiction from which no appeal of right exists. Further, this indemnity does not cover any modifications or changes
made to the Property or Trademark by Licensee.

 

93.3
Paragraphs 13.1 and 13.2 shall survive the expiration or termination of this Agreement.

 

    	 	12	 

    	 

    

 

1
04. Insurance. Licensee shall, at its
own expense, procure and maintain in full force and effect for so long as Licensed Products are sold, with an insurance carrier
with the highest rating established by Best’s Rating Guide, (i) a comprehensive general liability and product liability
insurance policy with respect to Licensed Products and this Agreement, with a limit ofliability of not less than US$2,000,000.00,
(ii) commercial automobile liability insurance with limits ofbodily injury and property damage of not less than US$ I,000,000.00
per occurrence, and (iii) workers’ compensation insurance with statutory limits and with an employer liability limit of
at least US$2,000,000. Each such insurance policy shall be written for the benefit of Licensee, Licensor and the other members
of the Lifeguard Group, shall be designated expressly as primary insurance and shall provide for at least thirty (30) days prior
written notice to Licensee and Licensor of the cancellation or substantial modification thereof. If the insurance policy is canceled,
it shall be replaced by a substantially equivalent policy prior to its cancellation. Licensee may obtain the insurance in conjunction
with a policy of liability insurance that covers products other than Licensed Products. Licensee and its insurers shall waive
all rights of subrogation against one another for property damage claims. Licensee shall deliver a certificate of insurance to
Licensor promptly upon its issuance and shall furnish to Licensor evidence of the maintenance of the policy upon request. Nothing
in this Section 14 is intended to limit or affect the indemnification provisions of Section 13.I.

 

115.
Force Majeure. It is understood and agreed that in the event of an act of the government, or war conditions, or fire, flood
or labor trouble in the factory of Licensee or in the factory of those manufacturing parts necessary for the manufacture of the
Licensed Products, which prevents the performance by Licensee of the provisions of this Agreement, then, in such event, such nonperformance
by Licensee shall not be considered as grounds for material breach of this Agreement and such nonperformance shall be excused
while the conditions herein prevail and for two (2) months thereafter; provided, however, that in no event shall such nonperformance
by Licensee be excused due to any such event for longer than ninety (90) consecutive days. In addition, Licensor shall have the
right to terminate this Agreement if any matter referred to in this Paragraph 15 continues for longer than thirty (30) consecutive
days or sixty (60) days in the aggregate.

 

16.
Governing Law. This Agreement shall be enforced, governed by, and the rights of the parties shall be construed in accordance
with, the laws of the State of New York applicable to contracts made and fully performed therein, without regard to the conflicts
of law provisions thereof.

 

17.
Jurisdiction and Disputes.

 

17.1
Except as specifically set forth in this Agreement,
all disputes, controversies and claims arising out of or relating to this Agreement except disputes, controversies and claims
relating to or affecting Licensor’s ownership of or the validity of the Licensed Mark or any registration thereof, or any
application for registration thereof (“Licensed Mark Disputes”)   be settled and determined by arbitration
in New York City before a Commercial Panel of three arbitrators in accordance with and pursuant to the then existing Commercial
Arbitration Rule the American Arbitration Association. The arbitrators, in their discretion, may award speci performance or injunctive
relief (but not punitive damages) (and reasonable attorneys’ fees and expenses) to any party in any arbitration and the
courts also may do so with regard to injunctive relief sought by Licensor and with regard to Licensed Mark Disputes (collectively,
“Court Actions”). However, in any arbitration proceeding, the arbitrators may not change, modify or alter any
express condition, term or provision hereof, and to that extent the scope of their authority is expressly limited. The arbitration
award shall be final and binding upon the parties and judgment may be entered thereon in any court having jurisdiction. The service
of any notice, process, motion or other document in connection with an arbitration or for the enforcement of any arbitration award
may be made in the same manner that Notices may be given under Section 7.1.

 

    	 	13	 

    	 

    

 

17.2
Court Actions shall be brought in New York City in any court having jurisdiction, except that Licensor also may bring an injunctive
proceeding in any jurisdiction where appropriate by reason of its subject matter. Licensor and Licensee irrevocably submit to
the jurisdiction of the state and Federal courts in New York City and the courts in such other jurisdictions in Court Actions
and waive any claim or defense of inconvenient forum or lack of personal jurisdiction in such forum under any applicable law or
decision or otherwise. Service of any notice, process, motion or other document in connection with a Court Action may be made
in the same manner that Notices may be given under Section 7.1. However, Licensor may serve process in any manner permitted by
the laws of the State ofNew York, or by the state or Federal courts located therein, or by the laws or courts of any applicable
Country or any subdivision thereof.

 

18.
Confidentiality. All of the contents of this Agreement and all information relating to the business, operations and personnel
of the Licensor that Licensee learns or has learned during or prior to the term of this Agreement, including all financial information
and business plans relating to the business of Licensor or any of its affiliates, and all creative concepts, including the marketing,
advertising and promotional concepts and plans that Licensor provides to Licensee or that Licensor approves for use in connection
with Licensed Products (“Confidential Information”), are its valuable property. Licensee acknowledges the need
to preserve the confidentiality and secrecy of the Confidential Information. Therefore, during the term of this Agreement and
thereafter, neither Licensee nor any member of the Licensee Group shall use or disclose any of the Confidential Information, except
for such use by or on behalf ofLicensee that is permitted under this Agreement. Licensee shall take all necessary steps to ensure
that any use by it and those acting on its behalf, including the members of the Licensee Group, and its suppliers, shall preserve
the confidentiality and secrecy thereof. In that regard, Licensee shall implement appropriate internal procedures to ensure that
those individuals working for the business do not share Confidential Information with other employees of Licensee (or any other
person). Licensee shall indemnify the Licensor against any damage that may be suffered by any of them as a result of any breach
by Licensee, any of the members of the Licensee Group, or any of Licensee’s suppliers of the provisions of this Section.
The provisions of and the obligations of Licensee and the members of the Licensee Group shall survive Termination.

 

19.
Waiver. No waiver by either party of any material default shall be deemed as a waiver of prior or subsequent default of
the same or other provisions of this Agreement.

 

    	 	14	 

    	 

    

 

20.
Severability. Whenever possible, each provision of the Agreement will be interpreted in such manner as to be effective
and valid under applicable law. However, if any term, clause or provision hereof is held invalid or unenforceable by a court of
competent jurisdiction, such invalidity shall not affect the validity or operation of any other term, clause or provision and
such invalid term, clause or provision shall be deemed to be severed from the Agreement.

 

21.
No Joint Venture. Nothing contained herein shall constitute this arrangement to be employment, a joint venture or a partnership.
Furthermore, the Parties hereto fully intend to act and perform as independent contractors, and the provisions hereof are not
intended to create any agency, partnership,joint venture, employment relationship and/or other fiduciary relationship of any kind
and/or nature whatsoever between the parties hereto other than that of independent parties contracting with each other solely
to carry out the provisions of this Agreement for the express purposes recited herein. Each party hereto shall be, and shall remain,
the employer of its own respective agents, servants, employee and/or consultants. Such personnel shall at no time be deemed to
be the agents, servants, employee and/or consultants of the other party hereto and shall not be entitled and/or be eligible to
participate in any manner whatsoever in any benefits and/or privileges (including, but not limited to, health insurance, dental
insurance, disability insurance, vacation pay, sick leave, retirement benefits, pension plans, social security, worker’s
compensation, health or disability benefits, unemployment insurance benefits, or other benefits etc., if any, on account ofthis
Agreement) of any kind and/or nature whatsoever provided and/or extended by the other Party to such other party’s own members,
officers, directors, agents, servants, employees and/or contractors in connection therewith. Each party hereto agrees to be solely
and entirely responsible for paying any and all applicable taxes required by law such as payroll, income, withholding and social
security taxes.

 

22.
Assignability. The performance of Licensee is of a personal nature and, therefore, neither this Agreement nor the license
or other rights granted to Licensee may be assigned, sublicensed or transferred by Licensee and any attempted assignment, sublicense
or transfer, whether voluntary or by operation of law, directly or indirectly, shall be void and of no force or effect. The direct
or indirect transfer or issuance of shares of Licensee or the direct or indirect transfer (including by entering into a stockholders
or other agreement or by granting a proxy) of the voting rights of shares or the issuance by Licensee of any other voting securities
or the entering into by Licensee of a management or other agreement with a party that is not controlled by or under the common
control of Licensee, shall constitute an impermissible transfer if, and only if, it limits or reduces in any material respect
the rights or ability of Licensee to control the Business. This Agreement shall inure to the benefit of and shall be binding upon
the parties, Licensor’s successors and assigns and Licensee’s permitted successors and assigns.

 

    	 	15	 

    	 

    

 

23.
Integration. This Agreement constitutes the entire understanding of the parties, and revokes and supersedes all prior agreements
between the parties, including any option agreements which may have been entered into between the parties, and is intended as
a final expression of their Agreement. It shall not be waived, modified, amended and/or chagned except in writing signed by the
parties hereto and specifically referring to this Agreement. This Agreement shall take precedence over any other documents which
may be in conflict with said Agreement. This Agreement contains all the terms, provisions, covenants and/or promises of any kind
and/or nature whatsoever entered into by and between the parties hereto concerning this Agreement and shall merge and supersede
any and all prior and/or other terms, agreements, provisions, covenants, and/or conditions, if any, not expressly set forth in
this Agreement. Any and all prior understandings, agreements, representations and/or warranties, oral and/or written, if any,
between any of the Parties hereto concerning this Agreement are merged in, and superseded by, this Agreement and completely expresses
the full agreement between the parties hereto and has been entered into only after full investigation, no party relying upon any
statements, agreements, representations and/or warranties, oral and/or written, made by anyone that is not expressly set forth
in this Agreement. No additional terms are implied by usage of trade, by course ofdealing,
or by course of performance. In the event of any conflict or inconsistency between the terms and conditions of the main
body of this Agreement and those of Schedule A attached hereto, then, in such event, the terms and conditions of such Schedule
A attached to this Agreement shall supersede and control over this Agreement. This Agreement may be executed in multiple counterparts,
each of which shall be deemed a binding and enforceable original, and all of which together shall be deemed one and the same Agreement.
A signed copy of this Agreement delivered by e-mail or other means of electronic transmission shall be deemed to have the same
legal effect as delivery of an original signed copy of this Agreement and shall be admissible for any and all purposes in any
court of law and/or other tribunal.

 

24.
Third Party Beneficiary. Unless this Agreenent expressly states to the contrary, this Agreement may not otherwise be construed
to create any third-party beneficiary rights in any other individual, partnership, corporation, or entity.

 

IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have each caused to be affixed hereto its or his/her
hand and seal as of the Effective Date first indicated above.

 

	 	LIFEGUARD LICENSING CORP.
	 	 	 
	 	By:	              
	 	Name:	 
	 	Title:	 

 

	 	CANBIOLA, INC.
	 	 	 
	 	By:	/s/ Marco Alfonsi
	 	Name:	Marco Alfonsi
	 	Title:	Chief Ececutive Officer

 

    	 	16	 

    	 

    

 

SCHEDULE
“A”

 

	1.	Products.

 

The
following Products form part of this Agreement:

 

Lip
care products: balms, moisturizers, cold-sore treatments; and

 

Topical
pain relief products: salves, sprays, and gels including sunburn relief, rashes, abrasions; and

 

Energy
shots, gununy bears and candy, cookies and pastry; and

 

Non-Alcoholic
Beverages: fruit-based drinks, protein type drinks, carbonated type drinks; and

 

Alcoholic
beverages: beer, hard alcohol, and wine; and

 

EACH
AND ALL PRODUCTS MAY OR MAY NOT CONTAIN CBD, may be for

animals
(pets) or human use or consumption, and will have appropriate label, analysis, and meet all governmental requirements for each
category of products.

 

Licensee
acknowledges and agrees that it will refrain from the manufacture, production, promotion and/or sale of all manner of (i) alcoholic
beverages, (ii) energy shots and (iii) pain relief products for animals (pets), until advised further by Licensor.

 

	2.	Exclusivity

 

Notwithstanding
anything express and/or implied to the contrary which may be set forth in the Agreement, an exclusive as to the above mentioned
Products in the Territory noted below.

 

	3.	Territory

 

The
following countries shall constitute the Territory:

 

The
United States of America, its territories and possessions, Canada and Mexico

 

	4.	Term

 

This
Agreement shall commence on the date hereof and continue through December 31, 2025. The first annual period shall commence as
of the date hereof and end on December 31, 2021. Licensor shall have the right to terminate this Agreement upon notice if Licensee
fails to achieve the “Minimum Net Sales” amount for the applicable annual period. Licensee shall have the right to
renew this Agreement for (i) an additional five (5) year period provided that Licensee shall have achieved $3,000,000.00 in Net
Sales during the final annual period of the initial term and Licensee provides Licensor written notice of Licensee’s intent
to renew by no later than September 30, 2025; (ii) for an additional five (5) year period provided that Licensee shall have achieved
$10,000,000.00 in Net Sales during the tenth annual period and Licensee provides Licensor written notice of Licensee’s intent
to renew by no later than September 30, 2030; and (iii) for an additional five (5) year period provided that Licensee shall have
achieved $15,000,000 in Net Sales during the fifteenth annual period and Licensee provides Licensor written notice of Licensee’s
intent to renew by no later than September 30, 2035.

 

    	 	 	 

    	 

    

 

	5.	Royalty
    Rate

 

Licensee
shall pay the following royalty rate: six (6%) percent

 

	6.	Guaranteed
    Minimum Royalty, Guaranteed Minimum Sales and Advance

 

Guaranteed
Minimum Royalty (“GMR”) and Minimum Net Sales (“MNS”) are as follows:

 

	Period	 	GMR	 	 	MNS	 
	First (Date hereof through 12/31/21)	 	$	60,000	 	 	$	1,000,000	 
	Second (l /1/22 to 12/31/22)	 	$	66,000	 	 	$	1,100,000	 
	Third (1/1/23 to 12/31/23)	 	$	72,600	 	 	$	1,210,000	 
	Fourth (1/1/24 to 12/31/24)	 	$	79,860	 	 	$	1,331,000	 
	Fifth (1/1/25 top 12/31/25)	 	$	87,846	 	 	$	1,464,100	 
	If Renewed:	 	 	 	 	 	 	 	 
	Sixth	 	$	96,630	 	 	$	1,610,510	 
	Seventh	 	$	106,293	 	 	$	1,771,561	 
	Eighth	 	$	116,923	 	 	$	1,948,717	 
	Ninth	 	$	128,615	 	 	$	2,143,588	 
	Tenth	 	$	141,476	 	 	$	2,357,947	 
	If Renewed:	 	 	 	 	 	 	 	 
	Eleventh	 	$	155,624	 	 	$	2,593,742	 
	Twelfth	 	$	171,187	 	 	$	2,853,116	 
	Thirteenth	 	$	188,305	 	 	$	3,138,428	 
	Fourteenth	 	$	207,136	 	 	$	3,452,271	 
	Fifteenth	 	$	227,849	 	 	$	3,797,498	 

 

	7.	Product
    Introduction/Initial Shipment

 

NIA

 

	8.	Notice
    Address

 

	If to Licensor:	Lifeguard Licensing Corp.
	 	595 Madison Avenue, Suite 1101
	 	New York, New York 10022
	 	Attn: Chief Executive Officer
	 	 
	With a copy to:	McNiffLaw Group 
	 	113 Howland Avenue
	 	Jamestown, RI 02835
	 	 
	If to Licensee:	Canbiola, Inc.,
	 	960 South Broadway, Suite 120 
	 	Hicksville, New York 11801rig_EX4_1

		

			Exhibit 4.1

		

		
			DESCRIPTION OF TRANSOCEAN LTD.’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934
		

		
			As of February 12, 2020,  Transocean Ltd. had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: registered shares, par value CHF 0.10 per share (“shares”). The following description of Transocean Ltd.’s shares is a summary and is subject to the complete text of our Articles of Association, filed as Exhibit 3.1 to our Current Report on Form 8-K (Commission File No. 001-38373) filed on May 13, 2019. We encourage you to read the Articles of Association carefully.  In this description, references to “Transocean,” “we,” ”our,” and “us” mean Transocean Ltd.
		

		
			Description of Share Capital
		

		
			Issued Share Capital. As of February 12, 2020, the registered share capital of Transocean, as registered with the commercial register, was CHF 61,658,167.70, divided into 616,581,677 registered Transocean shares, par value 0.10 Swiss francs per share. The total issued share capital of Transocean, including Transocean shares issued out of Transocean’s conditional share capital not yet registered with the commercial register, was 61,797,052.50 Swiss francs, divided into 617,970,525 registered Transocean shares, par value 0.10 Swiss francs per share. The issued Transocean shares are fully paid, non-assessable, and rank pari passu with each other and all other Transocean shares.
		

		
			General Authorized Share Capital.  Pursuant to Article 5 of our Articles of Association, our board of directors is authorized to issue new Transocean shares at any time until May 18, 2020 and thereby increase the stated share capital by a maximum amount of 2,170,388.90 Swiss francs by issuing a maximum of 21,703,889 Transocean shares.
		

		
			Our board of directors determines the time of the issuance, the issuance price, the manner in which the new Transocean shares have to be paid in, the date from which the new Transocean shares carry the right to dividends and, subject to the provisions of our Articles of Association, the conditions for the exercise of the preemptive rights with respect to the issuance and the allotment of preemptive rights that are not exercised. The board of directors may allow preemptive rights that are not exercised to expire, or it may place such rights or Transocean shares, the preemptive rights in respect of which have not been exercised, at market conditions or use them otherwise in our interest.  For further information on preemptive rights with respect to our authorized share capital, see “—Preemptive Rights and Advance Subscription Rights” below.
		

		
			An increase of the share capital (i) by means of an offering underwritten by a financial institution, a syndicate of financial institutions or another third party or third parties, followed by an offer to the then-existing shareholders of Transocean, and (ii)  in partial amounts shall be permissible.
		

		
			The new Transocean shares shall be subject to the limitations for registration in the share register pursuant to Articles 7 and 9 of Transocean’s Articles of Association.
		

		
			Conditional Share Capital. Article 6 of Transocean’s Articles of Association has not yet been updated to reflect the issuance of 1,388,848 shares to satisfy obligations under Transocean’s share‐based compensation plans.  Accordingly, the remaining authority to issue shares out of conditional share capital is limited to a maximum of 142,365,398 shares; these shares may be issued through:
		

			
	
			
				 ·
			

			
	
			
			the exercise of conversion, exchange, option, warrant or similar rights for the subscription of Transocean shares granted in connection with bonds, options, warrants or other securities newly or already issued in national or international capital markets or new or already existing contractual obligations by or of us or any of our subsidiaries or any of our respective predecessors; or

		
			 
		

			
	
			
				 ·
			

			
	
			
			in connection with the issuance of Transocean shares, options or other share-based awards to directors, members of our executive management, employees, contractors, consultants or other persons providing services to us or our subsidiaries.

		
			

		 

		

			1

		

		

			 

		

		

		
			For information on preemptive rights with respect to our conditional share capital, see “—Preemptive Rights and Advance Subscription Rights” below.
		

		
			Other Classes or Series of Transocean Shares / Non-voting stock (Genussscheine / Partizipationsscheine).  The board of directors may not create Transocean shares with increased voting powers without the affirmative resolution adopted by shareholders holding at least two-thirds of the voting rights and an absolute majority of the par value of the Transocean shares, each as represented (in person or by proxy) at a general meeting of the shareholders. Our board of directors may create preferred stock with the vote of a majority of the votes cast at a general meeting of our shareholders (not counting broker non-votes, abstentions and blank or invalid ballots).
		

		
			Transocean has not issued any non-voting stock to date (Partizipationsscheine, Genussscheine).
		

		
			Preemptive Rights and Advance Subscription Rights
		

		
			Under the Swiss Code of Obligations (the “Swiss Code”), the prior approval of a general meeting of shareholders is generally required to authorize, for later issuance, the issuance of Transocean shares, or rights to subscribe for, or convert into, Transocean shares (which rights may be connected to debt instruments or other obligations).  In addition, the existing shareholders will have preemptive rights in relation to such Transocean shares or rights in proportion to the respective par values of their holdings.  The shareholders may, with the affirmative vote of shareholders holding two-thirds of the voting rights and a majority of the par value of the Transocean shares present or represented at the general meeting and entitled to vote, withdraw or limit the preemptive rights for valid reasons (such as a merger, an acquisition or any of the reasons authorizing the board of directors to withdraw or limit the preemptive rights of shareholders in the context of an authorized capital increase as described below).
		

		
			If the general meeting of shareholders has approved the creation of authorized or conditional capital, it thereby delegates the decision whether to withdraw or limit the preemptive and advance subscription rights for valid reasons to the board of TOCdirectors. Our Articles of Association provide for this delegation with respect to our authorized and conditional share capital in the circumstances described below under “—General Authorized Share Capital” and “—Conditional Share Capital.”
		

		
			General Authorized Share Capital. At any time until May 18, 2020 and pursuant to Article 5 of Transocean’s Articles of Association, the board of directors is authorized to withdraw or limit the preemptive rights with respect to the issuance of Transocean shares from authorized capital if:
		

			
	
			
				 ·
			

			
	
			
			the issue price of the new Transocean shares is determined by reference to the market price;

		
			 
		

			
	
			
				 ·
			

			
	
			
			the Transocean shares are issued in connection with the acquisition of an enterprise or participations or any part of an enterprise or participations, the financing or refinancing of any such transactions or the financing of our new investment plans;

		
			 
		

			
	
			
				 ·
			

			
	
			
			the Transocean shares are issued in connection with the intended broadening of the shareholder constituency of Transocean in certain financial or investor markets, for the purposes of the participation of strategic partners, or in connection with the listing of the Transocean shares on domestic or foreign stock exchanges;

		
			 
		

			
	
			
				 ·
			

			
	
			
			in connection with a placement or sale of Transocean shares, the grant of an over-allotment option of up to 20% of the total number of Transocean shares in a placement or sale of Transocean shares to the initial purchasers or underwriters; or

		
			 
		

			
	
			
				 ·
			

			
	
			
			for the participation of directors, members of our executive management team, employees, contractors, consultants and other persons performing services for our benefit or the benefit of any of our subsidiaries.

		
			Conditional Share Capital. In connection with the issuance of bonds, notes, warrants or other financial instruments or contractual obligations convertible into or exercisable or exchangeable for Transocean shares, the preemptive rights of shareholders are, pursuant to Article 6 of Transocean’s Articles of Association, excluded and the board of directors 

		 

		

			2

		

		

			 

		

is authorized to withdraw or limit the advance subscription rights of shareholders in connection with the issuance of bonds, notes, warrants or other securities or contractual obligations convertible into or exercisable or exchangeable for Transocean shares if the issuance is for purposes of financing or refinancing the acquisition of an enterprise or business, parts of an enterprise, participations or investments, or if the issuance occurs in national or international capital markets or through a private placement.
		

		
			If the advance subscription rights are withdrawn or limited:
		

			
	
			
				 ·
			

			
	
			
			the respective financial instruments or contractual obligations will be issued or entered into at market conditions;

		
			 
		

			
	
			
				 ·
			

			
	
			
			the conversion, exchange or exercise price, if any, for instruments or obligations will be set with reference to the market conditions prevailing at the date on which the instruments or obligations are issued or entered into; and

		
			 
		

			
	
			
				 ·
			

			
	
			
			the instruments or obligations may be converted, exercised or exchanged during a maximum period of 30 years.

		
			The preemptive rights and the advance subscription rights of shareholders are excluded with respect to Transocean shares, bonds, notes, warrants or other securities or contractual obligations issued from our conditional share capital to directors, members of executive management, employees, contractors, consultants or other persons providing services to us or any of our subsidiaries.
		

		
			Dividends and Other Distributions
		

		
			Under the Swiss Code, dividends may be paid out only if we have sufficient distributable profits from the previous fiscal year, or if we have freely distributable reserves (including contribution reserves, which are also referred to as additional paid-in capital), each as will be presented on our audited annual standalone statutory balance sheet.  The affirmative vote of shareholders holding a majority of the votes cast at a general meeting of shareholders (not counting abstentions and blank or invalid ballots) must approve the distribution of dividends.  The board of directors may propose to shareholders that a dividend or other distribution be paid but cannot itself authorize the distribution.
		

		
			Payments out of our share capital (in other words, the aggregate par value of our registered share capital) in the form of dividends are not allowed; however, payments out of registered share capital may be made by way of a par value reduction.  Such a par value reduction requires the approval of shareholders holding a majority of the votes cast at the general meeting of shareholders (not counting abstentions and blank or invalid ballots).  A special audit report must confirm that claims of our creditors remain fully covered despite the reduction in the share capital recorded in the commercial register.  Upon approval by the general meeting of shareholders of the capital reduction, the board of directors must give public notice of the par value reduction resolution in the Swiss Official Gazette of Commerce three times and notify creditors that they may request, within two months of the third publication, satisfaction of or security for their claims.
		

		
			Under the Swiss Code, if our general reserves amount to less than 20% of our share capital recorded in the commercial register (i.e., 20% of the aggregate par value of our registered capital), then at least 5% of our annual profit must be retained as general reserves.  The Swiss Code and our Articles of Association permit us to accrue additional general reserves.  In addition, we may be required to create a special reserve on our audited annual standalone statutory balance sheet in the amount of the purchase price of Transocean shares repurchased by us or our subsidiaries, which amount may not be used for dividends or subsequent repurchases.
		

		
			Swiss companies generally must maintain a separate company, stand-alone “statutory” balance sheet for the purpose of, among other things, determining the amounts available for the return of capital to shareholders, including by way of a distribution of dividends.  Our auditor must confirm that a proposal made by the board of directors to shareholders regarding the appropriation of our available earnings or the distribution of freely distributable reserves conforms to the requirements of the Swiss Code and our Articles of Association.  Dividends are usually due and payable shortly after the shareholders have passed a resolution approving the payment, but shareholders may also resolve at the annual 

		 

		

			3

		

		

			 

		

general meeting of shareholders to pay dividends in quarterly or other installments.  Our Articles of Association provide that dividends that have not been claimed within five years after the payment date become our property and are allocated to the general reserves.  Dividends paid out of distributable profits or distributable general reserves are subject to Swiss withholding tax, all or part of which can potentially be reclaimed under the relevant tax rules in Switzerland or double taxation treaties concluded between Switzerland and foreign countries.  Distributions to shareholders in the form of a par value reduction and distributions out of qualifying additional paid-in capital are not subject to the Swiss federal withholding tax.
		

		
			Dividends, if declared by us, are expected to be declared, subject to applicable limitations under Swiss law, in U.S. dollars, or in Swiss francs, and shareholders may be given the right to elect to be paid any such dividends in U.S. dollars or Swiss francs.  Distribution through a reduction in the par value of the Transocean shares must be declared in Swiss francs; however, shareholders may be provided with the option to elect to be paid in U.S. dollars or Swiss francs.
		

		
			Repurchases of Transocean Shares
		

		
			The Swiss Code limits our ability to hold or repurchase our own shares.  We and our subsidiaries may only repurchase Transocean shares if and to the extent that sufficient freely distributable reserves are available, as described above under “—Dividends and Other Distributions.” The aggregate par value of all of our shares held by us and our subsidiaries may not exceed 10% of the registered share capital.  However, we may repurchase our own shares beyond the statutory limit of 10% if the shareholders have passed a resolution at a general meeting of shareholders authorizing the board of directors to repurchase Transocean shares in an amount in excess of 10% and the repurchased Transocean shares are dedicated for cancellation.  Any Transocean shares repurchased pursuant to such an authorization will then be cancelled at a general meeting of shareholders upon the approval of shareholders holding a majority of the votes cast at the general meeting.  Repurchased Transocean shares held by us or our subsidiaries do not carry any rights to vote at a general meeting of shareholders but are, unless otherwise resolved by our shareholders at a general meeting, entitled to the economic benefits generally associated with the Transocean shares.
		

		
			General Meetings of Shareholders
		

		
			The general meeting of shareholders is our supreme corporate body.  Ordinary and extraordinary shareholders meetings may be held.  Among other things, the following powers will be vested exclusively in the shareholders meeting:
		

			
	
			
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			adoption and amendment of our Articles of Association;

		
			 
		

			
	
			
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			the annual election of the chairman of the board of directors, the members of the board of directors, the members of the compensation committee of the board of directors, the auditor and the independent proxy;

		
			 
		

			
	
			
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			approval of the annual management report, the stand-alone statutory financial statements and the consolidated financial statements;

		
			 
		

			
	
			
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			appropriation of the annual profit shown on our annual stand-alone statutory balance sheet, in particular the distribution of any dividends;

		
			 
		

			
	
			
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			discharge of the members of the board of directors and the executive management team from liability for business conduct during the previous fiscal year(s) to the extent such conduct is known to the shareholders;

		
			 
		

			
	
			
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			ratification of the maximum aggregate amounts of compensation of the board of directors and the executive management team;

		
			 
		

			
	
			
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			subject to certain exceptions, the approval of a business combination with an interested shareholder (as such terms are defined in our Articles of Association); and

		
			

		 

		

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			any other resolutions that are submitted to a general meeting of shareholders pursuant to law, our Articles of Association or by voluntary submission by the board of directors (unless a matter is within the exclusive competence of the board of directors pursuant to the Swiss Code).

		
			Notice and Proxy Statements
		

		
			Under the Swiss Code and our Articles of Association, we must hold an annual, ordinary general meeting of shareholders within six months after the end of our fiscal year for the purpose, among other things, of approving the annual financial statements and the annual management report, the annual election of our chairman of the board of directors, the members of the board of directors, the members of the compensation committee of our board of directors, our auditor and our independent proxy, and the ratification of the maximum aggregate amount of compensation of the board of directors and the executive management team.  The invitation to general meetings must be published in the Swiss Official Gazette of Commerce at least 20 calendar days prior to the date of the relevant general meeting of shareholders.  The notice of a meeting must state the items on the agenda and the proposals of the board of directors and of the shareholders who requested that a shareholders meeting be held or that an item be included on the agenda and, in case of elections, the names of the nominated candidates.  No resolutions may be passed at a shareholders meeting concerning agenda items for which proper notice was not given.  This does not apply, however, to proposals made during a shareholders meeting to convene an extraordinary shareholders meeting or to initiate a special investigation.  No previous notification will be required for proposals concerning items included on the agenda or for debates as to which no vote is taken.
		

		
			Annual general meetings of shareholders may be convened by the board of directors or, under certain circumstances, by the auditor.  A general meeting of shareholders can be held anywhere.
		

		
			We expect to set the record date for each general meeting of shareholders on a date not more than 20 calendar days prior to the date of each general meeting and announce the date of the general meeting of shareholders prior to the record date.
		

		
			Extraordinary General Meetings of Shareholders
		

		
			An extraordinary general meeting may be called upon the resolution of the board of directors or, under certain circumstances, by the auditor.  In addition, the board of directors is required to convene an extraordinary general meeting of shareholders if so resolved by the general meeting of shareholders, or if so requested by shareholders holding an aggregate of at least 10% of the share capital recorded in the commercial register or according to the views expressed in legal writing, which is a persuasive authority in Switzerland, holding Transocean shares with an aggregate par value of CHF 1 million, specifying the items for the agenda and their proposals, or if it appears from the annual stand-alone statutory balance sheet that half of our share capital recorded in the commercial register and legal reserves are not covered by our assets.  In the latter case, the board of directors must immediately convene an extraordinary general meeting of shareholders and propose financial restructuring measures.
		

		
			Agenda Requests
		

		
			Under our Articles of Association, any shareholder may request that an item be included on the agenda of a general meeting of shareholders.  Such shareholder may also nominate one or more directors for election.  A request for inclusion of an item on the agenda or a nominee must be in writing and received by us at least 30 calendar days prior to the anniversary date of the proxy statement in connection with our last general meeting of shareholders; provided, however, that if the date of the general meeting of shareholders is more than 30 calendar days before or after the anniversary date of the last annual general meeting of shareholders, such request must instead be made by the tenth calendar day following the date on which we have made public disclosure of the date of the general meeting of shareholders.  The request must specify the relevant agenda items and motions, together with evidence of the required Transocean shares recorded in the share register, as well as any other information as would be required to be included in a proxy statement pursuant to the rules of the Securities and Exchange Commission.
		

		
			

		 

		

			5

		

		

			 

		

		

		
			Under the Swiss Code, a general meeting of shareholders for which a notice of meeting has been duly published may not be adjourned without publishing a new notice of meeting.
		

		
			Our annual report, our compensation report pursuant to Swiss law and the auditor’s reports must be made available for inspection by the shareholders at our registered office in Steinhausen, Canton of Zug, Switzerland, no later than 20 calendar days prior to the annual general meeting of shareholders.  Each shareholder is entitled to request immediate delivery of a copy of these documents free of charge.  Shareholders of record will be notified of this in writing.
		

		
			Voting
		

		
			Each of our shares carries one vote at a general meeting of shareholders.  Voting rights may be exercised by shareholders registered in our share register or by a duly appointed proxy of a registered shareholder (including the independent proxy), which proxy need not be a shareholder.  Our Articles of Association do not limit the number of Transocean shares that may be voted by a single shareholder.  Shareholders wishing to exercise their voting rights who hold their Transocean shares through a bank, broker or other nominee should follow the instructions provided by such bank, broker or other nominee or, absent instructions, contact such bank, broker or other nominee for instructions.  Shareholders holding their Transocean shares through a bank, broker or other nominee will not automatically be registered in our share register.  If any such shareholder wishes to be registered in our share register, such shareholder should contact the bank, broker or other nominee through which it holds our shares.
		

		
			Treasury shares, whether owned by us or one of our majority-owned subsidiaries, will not be entitled to vote at general meetings of shareholders.
		

		
			Our Articles of Association do not provide for cumulative voting for the election of directors.
		

		
			Pursuant to our Articles of Association, the shareholders generally pass resolutions by the affirmative vote of a relative majority of the votes cast at the general meeting of shareholders (broker nonvotes, abstentions and blank and invalid ballots will be disregarded), unless otherwise provided by law or our Articles of Association. However, our Articles of Association provide that directors may be elected at a general meeting of shareholders by a plurality of the votes cast by the shareholders present in person or by proxy at the meeting. Our Corporate Governance Guidelines have a majority vote policy that provides that the board may nominate only those candidates for director who have submitted an irrevocable letter of resignation which would be effective upon and only in the event that (1) such nominee fails to receive a sufficient number of votes from shareholders in an uncontested election and (2) the board accepts the resignation following such failure. If a nominee who has submitted such a letter of resignation does not receive more votes cast “for” than “against” the nominee’s election, the corporate governance committee must promptly review the letter of resignation and recommend to the board whether to accept the tendered resignation or reject it. The board must then act on the corporate governance committee’s recommendation within 90 days following the shareholder vote. The board must promptly disclose its decision regarding whether or not to accept the nominee’s resignation letter.
		

		
			The acting chair may direct that resolutions and elections be held by use of an electronic voting system. Electronic resolutions and elections are considered equal to resolutions and elections taken by way of a written ballot.
		

		
			The Swiss Code and/or our Articles of Association require the affirmative vote of at least two-thirds of the voting rights and a majority of the par value of the Transocean shares, each as represented at a general meeting to approve, among other things, the following matters:
		

			
	
			
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			the amendment to or the modification of the purpose clause in our Articles of Association;

		
			 
		

			
	
			
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			the creation or cancellation of Transocean shares with privileged voting rights;

		
			 
		

			
	
			
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			the restriction on the transferability of Transocean shares or cancellation thereof;

		
			 
		

			
	
			
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			the restriction on the exercise of the right to vote or the cancellation thereof;

		
			

		 

		

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			an authorized or conditional increase in the share capital;

		
			 
		

			
	
			
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			an increase in the share capital through (1) the conversion of capital surplus, (2) a contribution in kind, or for purposes of an acquisition of assets, or (3) a grant of special privileges;

		
			 
		

			
	
			
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			the limitation on or withdrawal of preemptive rights;

		
			 
		

			
	
			
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			a change in our registered office;

		
			 
		

			
	
			
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			the conversion of registered Transocean shares into bearer shares and vice versa; and

		
			 
		

			
	
			
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			our dissolution.

		
			The same supermajority voting requirements apply to resolutions in relation to transactions among corporations based on Switzerland’s Federal Act on Mergers, Demergers, Transformations and the Transfer of Assets (the “Merger Act”), including a merger, demerger or conversion of a corporation (other than a cash-out or certain squeeze-out mergers, in which minority shareholders of the company being acquired may be compensated in a form other than through shares of the acquiring company, for instance, through cash or securities of a parent company of the acquiring company or of another company—in such a merger, an affirmative vote of 90% of the outstanding Transocean shares is required).  Swiss law may also impose this supermajority voting requirement in connection with the sale of “all or substantially all of our assets” by us.  See “—Compulsory Acquisitions; Appraisal Rights” below.
		

		
			Our Articles of Association require the affirmative vote of at least two-thirds of the Transocean shares entitled to vote at a general meeting to approve the following matters:
		

		
			the removal of a serving member of the board of directors;
		

		
			 
		

		
			any changes to Article 14, paragraph 1 specifying advance notice of proposal requirements;
		

		
			 
		

		
			any changes to Article 18 specifying vote requirements for resolutions and elections;
		

		
			 
		

		
			any changes to Article 20, paragraph 2 specifying supermajority vote requirements;
		

		
			 
		

		
			any changes to Article 21 specifying quorum requirements;
		

		
			 
		

		
			any changes to Article 22 specifying the number of members of the board of directors;
		

		
			 
		

		
			any changes to Article 23 specifying the term of the board of directors; and
		

		
			 
		

		
			any changes to Article 24 specifying the organization of the board of directors and the indemnification provisions for directors and officers.
		

		
			Our Articles of Association require the affirmative vote of holders of the number of our shares at least equal to the sum of (A) two-thirds of the number of all Transocean shares outstanding and entitled to vote at a general meeting, plus (B) a number of Transocean shares outstanding and entitled to vote at the general meeting that is equal to one-third of the number of Transocean shares held by an interested shareholder, for us to engage in any business combination with an interested shareholder (as those terms are defined in our Articles of Association) and for the amendment of the provisions in our Articles of Association relating to this shareholder approval requirement.
		

		
			Quorum for General Meetings
		

		
			

		 

		

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			The presence of shareholders, in person or by proxy, holding at least a majority of the Transocean shares entitled to vote at the time when the general meeting proceeds to business is generally the required presence for a quorum for the transaction of business at a general meeting of shareholders.  However, the presence of shareholders, in person or by proxy, holding at least two-thirds of the share capital recorded in the commercial register at the time when the general meeting proceeds to business is the required presence for a quorum to adopt a resolution to amend, vary, suspend the operation of or cause any of the following provisions of our Articles of Association to cease to apply:
		

		
			Article 18—which relates to proceedings and procedures at general meetings;
		

		
			 
		

		
			Article 19(g)—which relates to business combinations with interested shareholders;
		

		
			 
		

		
			Article 20—which sets forth the level of shareholder approval required for certain matters;
		

		
			 
		

		
			Article 21—which sets forth the quorum at a general meeting required for certain matters, including the removal of a serving member of the board of directors; and
		

		
			 
		

		
			Articles 22, 23 and 24—which relate to the size and the organization of the board of directors, the term of directors and the indemnification provisions for directors and officers.
		

		
			Additionally, shareholders present, in person or by proxy, holding at least two-thirds of the share capital recorded in the commercial register at the time when the general meeting proceeds to business constitute the required presence for a quorum at a general meeting to adopt a resolution to remove a serving director.TOC
		

		
			Under the Swiss Code, the board of directors has no authority to waive quorum requirements stipulated in the Articles of Association.
		

		
			Inspection of Books and Records
		

		
			Under the Swiss Code, a shareholder has a right to inspect the share register with regard to his, her or its own Transocean shares and otherwise to the extent necessary to exercise his, her or its shareholder rights.  No other person has a right to inspect the share register.  The books and correspondence of a Swiss company may be inspected with the express authorization of the general meeting of shareholders or by resolution of the board of directors and subject to the safeguarding of the company’s business secrets.  At a general meeting of shareholders, any shareholder is entitled to request information from the board of directors concerning the affairs of the company.  Shareholders may also ask the auditor questions regarding its audit of the company.  The board of directors and the auditor must answer shareholders’ questions to the extent necessary for the exercise of shareholders’ rights and subject to prevailing business secrets or other of our material interests.
		

		
			Special Investigation
		

		
			If the shareholders’ inspection and information rights as outlined above prove to be insufficient, any shareholder may propose to the general meeting of shareholders that a special commissioner investigate specific facts in a special investigation.  If the general meeting of shareholders approves the proposal, we or any shareholder may, within 30 calendar days after the general meeting of shareholders, request the court at our registered office to appoint a special commissioner.  If the general meeting of shareholders rejects the request, one or more shareholders representing at least 10% of the share capital or holders of Transocean shares in an aggregate par value of at least 2 million Swiss francs may request, within three months after the general meeting, the court to appoint a special commissioner.  The court will issue such an order if the petitioners can demonstrate that the board of directors, any member of our board of directors or one of our officers infringed the law or our Articles of Association and thereby damaged the company or the shareholders.  The costs of the investigation would generally be allocated to us and only in exceptional cases to the petitioners.
		

		
			Compulsory Acquisitions; Appraisal Rights
		

		
			

		 

		

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			Swiss companies that undertake business combinations and other transactions that are binding on all shareholders are governed by the Merger Act.  A statutory merger or demerger requires that at least two-thirds of the Transocean shares and a majority of the par value of the Transocean shares, each as represented at the general meeting of shareholders, vote in favor of the transaction.  Under the Merger Act, a “demerger” may take two forms:
		

		
			a legal entity may divide all of its assets and transfer such assets to other legal entities, with the shareholders of the transferring entity receiving equity securities in the acquiring entities and the transferring entity dissolving upon deregistration in the commercial register; or
		

		
			 
		

		
			a legal entity may transfer all or a portion of its assets to other legal entities, with the shareholders of the transferring entity receiving equity securities in the acquiring entities.
		

		
			If a transaction under the Merger Act receives all of the necessary consents, all shareholders would be compelled to participate in the transaction.  See “—Voting” above.
		

		
			Swiss companies may be acquired by an acquirer through the direct acquisition of the share capital of the Swiss company.  With respect to corporations limited by shares, such as Transocean, the Merger Act provides for the possibility of a so-called “cash-out” or “squeeze-out” merger if the acquirer controls 90% of the outstanding shares.  In these limited circumstances, minority shareholders of the company being acquired may be compensated in a form other than through shares of the acquiring company (for instance, through cash or securities of a parent company of the acquiring company or of another company).  For business combinations effected in the form of a statutory merger or demerger and subject to Swiss law, the Merger Act provides that if the equity rights have not been adequately preserved or compensation payments in the transaction are unreasonable, a shareholder may request the competent court to determine a reasonable amount of compensation.
		

		
			In addition, under Swiss law, the sale of “all or substantially all of our assets” by us may require a resolution of the general meeting of shareholders passed by holders of at least two-thirds of the voting rights and a majority of the par value of the Transocean shares, each as represented at the general meeting of shareholders.  Whether or not a shareholder resolution is required depends on the particular transaction, including whether the following test is satisfied:
		

		
			the company sells a core part of its business, without which it is economically impracticable or unreasonable to continue to operate the remaining business;
		

		
			 
		

		
			the company’s assets, after the divestment, are not invested in accordance with the company’s statutory business purpose; and
		

		
			 
		

		
			the proceeds of the divestment are not earmarked for reinvestment in accordance with the company’s business purpose but, instead, are intended for distribution to shareholders or for financial investments unrelated to the company’s business.
		

		
			If all of the foregoing apply, a shareholder resolution would likely be required.
		

		
			Legal Name; Formation; Fiscal Year; Registered Office
		

		
			Transocean was initially formed on August 18, 2008.  It is incorporated and domiciled in Steinhausen, Canton of Zug, Switzerland, and operates under the Swiss Code as a stock corporation (Aktiengesellschaft).  Transocean is recorded in the Commercial Register of the Canton of Zug with the registration number CHE‐114.461.224.  Transocean’s fiscal year is the calendar year.
		

		
			The address of Transocean’s registered office is Transocean, Turmstrasse 30, 6312 Steinhausen, Switzerland, and the telephone number at that address is +41 (0)41 749 0500.
		

		
			Corporate Purpose
		

		
			

		 

		

			9

		

		

			 

		

		

		
			Transocean is the parent holding company of the Transocean group.  Pursuant to its Articles of Association, its business purpose is to acquire, hold, manage, exploit and sell, whether directly or indirectly, participations in businesses in Switzerland and abroad, in particular in businesses that are involved in offshore contract drilling services for oil and gas wells, oil and gas drilling management services, drilling engineering services and drilling project management services and oil and gas exploration and production activities, and to provide financing for this purpose.  Transocean may acquire, hold, manage, mortgage and sell real estate and intellectual property rights in Switzerland and abroad.
		

		
			Duration and Liquidation
		

		
			Our Articles of Association do not limit our duration.  Under Swiss law, we may be dissolved at any time by a resolution adopted at a general meeting of shareholders, which must be passed by the affirmative vote of holders of at least two thirds of voting rights and an absolute majority of the par value of the Transocean shares, each as represented (in person or by proxy) at the general meeting.  Dissolution and liquidation by court order is possible if (1) we become bankrupt or (2) shareholders holding at least 10% of our share capital so request for valid reasons.  Under Swiss law, any surplus arising out of liquidation (after the settlement of all claims of all creditors) is distributed in proportion to the paid-up par value of Transocean shares held, but this surplus is subject to Swiss withholding tax of 35%.  Our shares carry no privilege with respect to such liquidation surplus.
		

		
			Uncertificated Shares
		

		
			Our shares have been issued in uncertificated form in accordance with article 973c of the Swiss Code as uncertificated securities, which have been registered with Computershare, and constitute intermediated securities within the meaning of the Swiss Federal Act on Intermediated Securities.  In accordance with article 973c of the Code, Transocean maintains a register of uncertificated securities (Wertrechtebuch).
		

		
			Stock Exchange Listing
		

		
			The Transocean shares are listed and trade on the NYSE under the symbol “RIG.”
		

		
			No Sinking Fund
		

		
			The Transocean shares have no sinking fund provisions.
		

		
			No Liability for Further Calls or Assessments
		

		
			The Transocean shares that have been issued to date are duly and validly issued, fully paid and nonassessable.
		

		
			No Redemption and Conversion
		

		
			The Transocean shares are not convertible into shares of any other class or series or subject to redemption either by us or the holder of the shares.
		

		
			Transfer and Registration of Transocean Shares
		

		
			We have not imposed any restrictions applicable to the transfer of our shares, other than the requirement that an acquirer of shares expressly declares to have acquired the shares in its own name and for its own account.  Our share register is maintained by Computershare, which acts as transfer agent and registrar.  The share register reflects only record owners of our shares.  Swiss law does not recognize fractional share interests.
		

		
			 
		

		
			 
		

		 

		

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