Document:

Exhibit 10.13

 

Execution Version

 

ASSET PURCHASE AGREEMENT

 

DATED JUNE 26, 2018,

 

BY AND AMONG

 

TRUCKEE GAMING, LLC,

 

NEVADA GOLD & CASINOS LV, LLC

 

AND

 

NEVADA GOLD & CASINOS, INC.

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Article 1 PURCHASED ASSETS; LIABILITIES	1
	 	 	 
	1.1	Purchase and Sale of Assets	1
	1.2	Retained Assets	3
	1.3	Assumed Liabilities	4
	1.4	Retained Liabilities	5
	1.5	Assignability and Consents	7
	 	 	 
	Article 2 PURCHASE PRICE AND DEPOSIT	7
	 	 	 
	2.1	Purchase Price	7
	2.2	Escrow	8
	2.3	Cash Count	8
	2.4	Purchase Price Adjustments	8
	2.5	Allocation of Purchase Price	10
	2.6	Prorations	10
	 	 	 
	Article 3 CLOSING	10
	 	 	 
	3.1	Closing; Closing Date	10
	3.2	Seller and Parent Closing Deliveries	11
	3.3	Buyer Closing Deliveries	12
	 	 	 
	Article 4 REPRESENTATIONS AND WARRANTIES OF SELLER AND PARENT	13
	 	 	 
	4.1	Organization, Standing and Corporate Power	13
	4.2	Capitalization; Ownership Interests	13
	4.3	Authority; Approvals	14
	4.4	Absence of Conflicts	14
	4.5	Financial Statements; No Undisclosed Liabilities	14
	4.6	Absence of Certain Changes	15
	4.7	Real Property	17
	4.8	Tangible Personal Property	18
	4.9	Inventory	18
	4.10	Proceedings; Orders	18
	4.11	Compliance with Laws; Permits	19
	4.12	Tax Matters	20
	4.13	Employment Matters	21
	4.14	Employee Benefits	22
	4.15	Intellectual Property	23
	4.16	Systems	25
	4.17	Immigration Matters	26
	4.18	Insurance	26
	4.19	Contracts	26
	4.20	Environmental Matters	28
	4.21	Suppliers	29

 

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	4.22	Sufficiency of Purchased Assets	30
	4.23	Brokers	30
	4.24	No other Representations and Warranties; As-Is, Where-Is	30
	 	 	 
	Article 5 REPRESENTATIONS AND WARRANTIES OF BUYER	30
	 	 	 
	5.1	Organization; Standing; Corporate Power	30
	5.2	Authority; Approvals	31
	5.3	Absence of Conflicts	31
	5.4	Proceedings	32
	5.6	Brokers	32
	5.7	Solvency	32
	5.8	No Financing Conditions	33
	 	 	 
	Article 6 COVENANTS AND AGREEMENTS	33
	 	 	 
	6.1	Conduct of Business	33
	6.2	No Solicitation	36
	6.3	Access to Business; Continued Due Diligence; Confidentiality	36
	6.4	Reasonable Efforts; Filings; Notification	38
	6.5	Certain Transactions	39
	6.6	Employees	39
	6.7	Repairs	41
	6.8	Delivery of Financial Statements and Reports; Filings	41
	 	 	 
	Article 7 OTHER COVENANTS AND AGREEMENTS	41
	 	 	 
	7.1	Public Announcement	41
	7.2	Confidentiality	42
	7.3	Payment of Retained Liabilities; Preservation of Corporate Existence	43
	7.4	Retention of and Access to Records	44
	7.5	Cooperation in Litigation	44
	7.6	Use of Name	45
	7.7	Further Assurances	45
	 	 	 
	Article 8 TAX MATTERS	45
	 	 	 
	8.1	Cooperation	45
	8.2	Real and Personal Property Taxes	46
	8.3	Conveyance Taxes	46
	8.4	Other Taxes	46
	 	 	 
	Article 9 CONDITIONS TO CLOSING	46
	 	 	 
	9.1	Conditions to Buyer’s and Seller’s Obligations	46
	9.2	Conditions to Buyer’s Obligations	47
	9.3	Conditions to Seller’s and Parent’s Obligation	48
	 	 	 
	Article 10 SURVIVAL AND INDEMNIFICATION	49
	 	 	 
	10.1	Survival	49
	10.2	Indemnification by Seller and Parent	49
	10.3	Indemnification by Buyer	51
	10.4	Time and Other Limitations	51

 

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	10.5	Indemnification Procedures for Third-Party Claims	52
	10.6	Indemnification Procedures for Non-Third-Party Claims	54
	10.7	Effect of Investigation.	54
	10.8	Satisfaction of Seller’s and Parent’s Indemnification Obligations	55
	10.9	Subrogation	55
	10.10	Exclusive Remedy	55
	10.11	Purchase Price Adjustment	55
	 	 	 
	Article 11 TERMINATION	55
	 	 	 
	11.1	Right to Terminate	55
	11.2	Effect of Termination	56
	 	 	 
	Article 12 MISCELLANEOUS PROVISIONS	57
	 	 	 
	12.1	Interpretation and Usage	57
	12.2	Amendment and Modification	58
	12.3	Waiver of Compliance; Consents	58
	12.4	No Third-Party Beneficiaries	58
	12.5	Expenses	58
	12.6	Notices	59
	12.7	Assignment	60
	12.8	Governing Law and Venue	60
	12.9	Counterparts	60
	12.10	Enforcement	61
	12.11	Entire Agreement	61
	12.12	Severability	61
	12.13	Waiver of Jury Trial	61
	12.14	Guaranty	62

 

	Exhibits	 
	 	 
	Exhibit A	Estimated Purchase Price
	Exhibit B	Escrow Agreement
	Exhibit C	Bill of Sale and Assignment and Assumption Agreement
	Exhibit D	Transition Services Agreement
	Exhibit E	Deed
	Exhibit F	Example Acquired Cash Calculation
	Exhibit G	Example EBITDA Calculation
	Exhibit H	Example Working Capital Calculation
	 	 
	Schedules	 
	 	 
	Schedule 1.0	Definitions and Cross-References

 

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	Seller Disclosure Schedules
	 	 
	Schedule 1.1(a)	Tangible Personal Property
	Schedule 1.1(c)	Assigned Contracts
	Schedule 1.1(d)	Intellectual Property
	Schedule 1.1(e)	Permits
	Schedule 1.1(k)	Claims
	Schedule 1.2(l)	Retained Assets
	Schedule 1.5	Non-Assignable Assets
	Schedule 3.2(f)	Required Consents
	Schedule 4.2	Capitalization
	Schedule 4.4	Conflicts
	Schedule 4.5(c)	Financial Statements
	Schedule 4.6	Certain Changes
	Schedule 4.7(a)	Leased Real Property
	Schedule 4.7(b)	Owned Real Property
	Schedule 4.7(c)	Capital Expenditures
	Schedule 4.8(b)	Tangible Personal Property
	Schedule 4.10(a)	Proceedings
	Schedule 4.11(a)	Compliance with Laws
	Schedule 4.12	Tax Matters
	Schedule 4.13(d)	Employees
	Schedule 4.13(e)	Independent Contractors
	Schedule 4.14(a)	Employee Benefit Plans
	Schedule 4.14(e)	Plan Exceptions
	Schedule 4.15(a)	Registered Intellectual Property
	Schedule 4.15(b)	IP Ownership
	Schedule 4.15(g)	Social Media
	Schedule 4.16(a)	Systems
	Schedule 4.16(b)	Systems Ownership
	Schedule 4.17	Immigration
	Schedule 4.18	Insurance
	Schedule 4.19(a)	Contracts
	Schedule 4.19(b)	Absence of Breach
	Schedule 4.20	Environmental Matters
	Schedule 4.20(b)	Environmental Permits
	Schedule 4.21	Suppliers
	Schedule 4.22	Sufficiency of Assets
	Schedule 6.1	Conduct of Business
	Schedule 6.4(a)(v)	Consents
	Schedule 9.1(b)	Gaming Approvals
	Schedule 1.0-A	Permitted Encumbrances

 

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ASSET PURCHASE AGREEMENT

 

This Asset Purchase Agreement
(this “Agreement”) is entered into as of June 26, 2018 (“Agreement Date”), by and among Truckee
Gaming, LLC, a Delaware limited liability company (“Buyer”), Nevada Gold & Casinos LV, LLC, a Nevada limited
liability company and wholly-owned subsidiary of Parent (“Seller”), and Nevada Gold & Casinos, Inc., a Nevada
corporation (“Parent”).

 

RECITALS

 

A.         Seller
owns and operates the casino, restaurant, gift shop, parking and all related facilities commonly known as Club Fortune Casino,
located at 725 South Racetrack Road, Henderson, NV 89015 (collectively, the “Business”).

 

B.          Seller
desires to sell, convey, assign and transfer to Buyer, and Buyer desires to purchase, acquire and accept from Seller, Seller’s
interest in and to the Purchased Assets (as defined below), and Buyer desires to assume certain Liabilities related to the Purchased
Assets, all on the terms and subject to the conditions set forth in this Agreement.

 

C.          Capitalized
terms not defined herein shall have the meanings provided in Schedule 1.0 hereto and incorporated herein by reference.

 

In consideration of the
foregoing recitals which are incorporated herein, and the representations, warranties, covenants and agreements contained herein,
and intending to be legally bound, the parties agree as follows:

 

Article 1

PURCHASED
ASSETS; LIABILITIES

 

1.1         Purchase
and Sale of Assets. Pursuant to the terms and subject to the conditions contained in this Agreement, at the Closing, Seller
will sell, convey, transfer, assign and deliver to Buyer or its designated Affiliate, and Buyer will purchase and receive from
Seller, free and clear of any Encumbrances other than Permitted Encumbrances, all of Seller’s right, title and interest in
and to all assets, properties and rights of Seller used in or related to the Business or required for the continued operation of
the Business by Buyer in substantially the same manner as conducted by Seller on the Agreement Date, in each case wherever located
and whether or not the asset, property or right appears on Seller’s books and records, including the following (collectively,
the “Purchased Assets”), used in or related to the Business, but in each instance specifically excluding the
Retained Assets:

 

(a)          all
tangible assets owned by Seller, including machinery, equipment (including gaming equipment and devices), gaming tables, tools,
spare parts, transportation equipment, operating supplies, furniture and office equipment, fixtures, furnishings, artwork, utensils
for kitchens, bars and restaurants, laundries, public rooms, hall and lobby equipment, heating, ventilating and air-conditioning
systems, plumbing, electrical and refrigerating systems, elevators, escalators, communication and security plants or systems with
appurtenant fixtures, uniforms, telephone systems, telecopiers, photocopiers and computer hardware, all gaming chips and tokens
with respect to the Business that are branded with the name, design, logo or other similar indicia of the Business, including the
chips and tokens not in circulation; including those items set forth on the attached Schedule 1.1(a) of the Seller Disclosure
Schedules (collectively, the “Tangible Personal Property”);

 

     

     

    

 

(b)          all
inventories of Seller, wherever located and whether in transit or in storage, including all finished goods, works in process, raw
and packaging materials, spare and replacement parts, dice, food, beverages (including all alcohol to the extent such alcohol is
permitted to be transferred to Buyer under applicable Law), cooking supplies, merchandise, gaming supplies, gaming device parts
inventory, engineering, maintenance and housekeeping supplies, cleaning supplies, china, glassware, linens, silverware and similar
amenities and all other materials and supplies to be used, sold, resold or distributed by Seller, together with all express or
implied warranties, rights of return, rebate rights, and all other rights relating to the foregoing (collectively, the “Inventory”);

 

(c)          all
Contracts and Leases to which Seller is a party relating to the Business, including the Contracts and Leases listed on Schedule
1.1(c) of the Seller Disclosure Schedules (collectively, the “Assigned Contracts”);

 

(d)          all
Intellectual Property (other than the Parent Marks) owned by Seller (including all Intellectual Property listed on Schedule
1.1(d) of the Seller Disclosure Schedules), all tangible and electronic embodiments of such Intellectual Property, the name
“Club Fortune Casino” and any variants thereof used in the Business, all rights to institute or maintain any Proceeding
or other action to protect such Intellectual Property or recover damages for any past or present infringement thereof, and all
income, royalties, damages and payments due on or after the Closing Date with respect to such Intellectual Property (collectively,
the “Assigned IP”);

 

(e)          all
Permits, including the Permits listed on Schedule 1.1(e) of the Seller Disclosure Schedules, to the extent permitted to
be transferred to Buyer under applicable Law;

 

(f)           the
Owned Real Property and Seller’s rights in the Leased Real Property, together with the buildings and improvements thereon,
fixtures related thereto, and any rights, grants of variances, licenses or easements appurtenant thereto, to the extent owned or
held by Seller (collectively, the “Facilities”);

 

(g)          all
information, books and records (not including income Tax books and records, communications that are protected by an attorney-client
privilege or the attorney work-product privilege, and the other books and records described in Sections 1.2(e), 1.2(f),
and 1.2(h)) to the extent related to the Purchased Assets, the Business or the Assumed Liabilities, including files, computer
discs and tapes, invoices, credit and sales records, personnel records of Business Employees (subject to applicable Law), customer
lists (including copies of customer Contracts), supplier lists (including supplier cost information), prospect lists (including
mailing and calling lists), manuals, drawings, business plans and other plans and specifications, accounting and financial books
and records, sales literature, current price lists and discounts, promotional signs and literature, marketing and sales programs,
current and former product specifications, equipment tracking databases and regulatory, manufacturing and quality control records
and procedures (collectively, the “Business Information”);

 

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(h)          all
cash, negotiable instruments and other cash equivalents of Seller located at the Facilities as of the Closing Date, including (i)
cash, negotiable instruments and other cash equivalents of Seller located in ATMs, cages, drop boxes, slot machines and other gaming
devices located at the Facilities, and (ii) cash on hand for the Facilities manager’s petty cash fund and cashiers’
banks, coins and slot hoppers, carousels and slot vault at the Facilities (collectively, and subject to the terms of this paragraph,
the “Acquired Cash”); notwithstanding anything to the contrary contained herein, Acquired Cash shall be calculated
net of issued but uncleared checks and drafts and outstanding and unredeemed gaming tokens and chips;

 

(i)           all
billed and unbilled trade accounts receivable of the Business;

 

(j)           all
other intangible rights and properties, including goodwill, telephone and facsimile numbers, e-mail addresses, the Players Club
and Players Club Database and all rights to institute or maintain any action to protect the same and recover damages for any misappropriation
or misuse thereof; and

 

(k)          all
claims of Seller against Third Parties or any other Person to the extent arising from or relating to the Purchased Assets, the
Business or the Assumed Liabilities (whether choate or inchoate, known or unknown, contingent or not contingent, including all
rights arising from or relating to deposits, prepaid expenses, claims for refunds and rights to set-off that constitute Purchased
Assets.

 

1.2         Retained
Assets. Buyer is not purchasing from Seller, and Seller is not selling to Buyer, and, where applicable, Seller shall retain
all of its right, title and interest in and to, each of the following assets, properties and rights of Seller (collectively, the
“Retained Assets”):

 

(a)          all
cash and cash equivalents of Seller not located at the Facilities;

 

(b)          all
Contracts other than the Assigned Contracts;

 

(c)          all
Plans, and the assets thereof;

 

(d)          all
(i) intercompany accounts receivable of Seller, and notes for those accounts receivable, of the Business where the obligee is Seller
and the obligor is Parent or an Affiliate of Seller, and (ii) all other accounts and notes receivable of Seller (other than billed
and unbilled trade accounts receivable of the Business), regardless of when due and payable, together with the full benefit of
all security and other rights relating thereto;

 

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(e)          copies
of all of the Assigned Contracts and all Business Information, other than the Customer Database, copies of such documents as are
reasonably needed by Seller to pursue or defend claims related to the Retained Assets or Retained Liabilities, and all employee-related
or employee benefit-related files or records, other than personnel files of Transferred Employees, and any other books and records
which Seller is prohibited from disclosing or transferring to Buyer under applicable Law and is required by applicable Law to retain;

 

(f)           Seller’s
organizational documents, taxpayer and other identification numbers, seals, minute books, membership interest records and all other
similar limited liability company books and records of Seller, including communications that are protected by an attorney-client
privilege or the attorney work-product privilege;

 

(g)          all
rights of Seller and its Affiliates under this Agreement and the Ancillary Documents and any claims in respect thereof;

 

(h)          all
(i) Tax Returns (including supporting schedules) other than those included in the Purchased Assets pursuant to Section 1.2(g)
and (ii) refunds, credits, claims or entitlements with respect to Taxes to the extent arising out of or relating to the Purchased
Assets or the Business for any pre-Closing Date portions of any Straddle Periods;

 

(i)           all
insurance policies of Seller, and all rights to applicable claims and proceeds thereunder;

 

(j)           the
Parent Marks;

 

(k)          all
rights, claims, causes of action, credits or rights of setoff against Third Parties (including all indemnities, warranties and
similar rights) in favor of the Seller or any of its Representatives to the extent relating to (i) any Retained Asset or (ii) any
Retained Liability; and

 

(l)           those
contracts set forth on Schedule 1.2(l) of the Seller Disclosure Schedules.

 

1.3         Assumed
Liabilities. Buyer will, as of the Closing, assume and agree to pay, perform and discharge only the following Liabilities of
Seller (collectively, and subject to the exclusions set forth below, the “Assumed Liabilities”):

 

(a)          all
Liabilities arising or to be performed under the Assigned Contracts and the Permits from and after the Closing (but not any Liability
arising out of or in connection with any breach of any such Assigned Contract or Permit occurring prior to the Closing);

 

(b)          all
Liabilities associated with the Players Club, other than any Liabilities resulting from Seller’s violation of the terms and
conditions of the Players Club prior to the Closing (as assumed, the “Players Club Liabilities”);

 

(c)          all
Liabilities with respect any Proceeding or Order that is commenced or issued after the Closing Date that arises from Buyer’s
ownership of the Purchased Assets or operation of the Business from and after the Closing;

 

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(d)          all
Liabilities for replacement of, or refund for, damaged, defective or returned goods relating to items purchased in a gift shop
or similar facility at the Business;

 

(e)          all
Liabilities with respect to the Transferred Employees arising after the Closing Date;

 

(f)           outstanding
and unredeemed vouchers and comps (to the extent included as a liability in the calculation of Working Capital), Liabilities with
respect gaming tokens and chips poker and slot participation and all Progressive Liabilities;

 

(g)          accrued
but unpaid (as of the Closing Date) vacation and/or personal time off (as applicable) associated with the Transferred Employees;

 

(h)          all
trade accounts payable of Seller with respect to the Business as reflected on the Reference Balance Sheet (subject to increases
or decreases thereof as may occur prior to the Closing in the Ordinary Course of Business and not in violation of Section 6.1),
in each case to the extent including in the calculation of Working Capital;

 

(i)           all
Liabilities for any Taxes of the Buyer or arising from Buyer’s use, ownership or operation of the Purchased Assets or the
conduct of the Business after the effective time of Closing, including any Taxes described in Section 8.2 attributable to
post-Closing Date portions of any Straddle Periods;

 

(j)           all
Liabilities relating to or arising out of the ownership of the Purchased Assets or the conduct of the Business in respect of periods
following the Closing; and

 

(k)          all
other Liabilities set forth as liabilities in the calculation of Working Capital used to determine the Purchase Price pursuant
to Sections 2.1 and 2.4 hereof.

 

1.4         Retained
Liabilities. Except for the Assumed Liabilities, Buyer is not assuming and expressly disclaims the assumption of any Liabilities
of Seller, whether or not such Liabilities arise from or relate to the Purchased Assets or the operation of the Business prior
to the Closing (collectively, the “Retained Liabilities”). Without limiting the generality of the foregoing,
and solely for purposes of clarity, the Retained Liabilities include:

 

(a)          all
Liabilities arising from or relating to products sold, or services provided, on or prior to the Closing Date that do not constitute
Assumed Liabilities;

 

(b)          all
Liabilities arising from or relating to accrued expenses, accounts payable, indebtedness or other payment obligations that do not
constitute Assumed Liabilities;

 

(c)          all
Liabilities arising from or relating to any Encumbrances (other than Permitted Encumbrances) related to Seller’s ownership
of the Purchased Assets or the Business and surviving the Closing;

 

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(d)          all
Liabilities arising out of or in connection with any breach of the Assigned Contracts occurring prior to the Closing, and all Liabilities
arising from or relating to Contracts to which Seller is party that are not Assigned Contracts;

 

(e)          all
Liabilities for any Taxes arising from Seller’s use, ownership or operation of the Purchased Assets or the conduct of the
Business by Seller on and prior to the effective time of Closing, including any income Taxes that may be owing by Seller as a result
of the sale of the Purchased Assets and including any Taxes described in Section 8.2 attributable to pre-Closing Date portions
of any Straddle Periods, but excluding any Taxes described in Section 8.2 attributable to post-Closing Date portions of
any Straddle Periods whether, in each case, payable before or after Closing;

 

(f)           all
Liabilities arising from or relating to any Proceeding or Order to which Seller is a party or is otherwise bound as of the Closing
to the extent arising or related to a period prior to the Closing Date;

 

(g)          all
Liabilities arising from or relating to Breaches of Law (including Environmental and Safety Requirements), including any Breach
of a Permit, occurring prior to the Closing;

 

(h)          all
Liabilities of Parent;

 

(i)           except
as provided in the proviso of Section 6.6(b)(i), all Liabilities of Seller arising from or relating to the employment, retention
or termination by Seller, or with respect to the Business, Parent, of any of their current or former officers, directors, employees
or independent contractors, including but not limited to all Liabilities for salaries, bonuses, withholding, expense reimbursements,
benefits or severance payments (unless otherwise allocated between the parties elsewhere in this Agreement), all Liabilities arising
from or relating to Seller’s or Parent’s compliance with applicable employment Laws, all Liabilities arising from or
relating to any employment agreements that Seller or Parent may have executed with its employees and all Liabilities to indemnify,
reimburse or advance any amounts to any officer, director, employee, consultant or other agent or representative of Seller or Parent
(whether in connection with the transactions contemplated by this Agreement or otherwise); and

 

(j)           all
Liabilities otherwise arising from or relating to Seller’s use, ownership or operation of the Purchased Assets or the conduct
of the Business prior to Closing that do not constitute Assumed Liabilities.

 

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1.5         Assignability
and Consents. Nothing in this Agreement nor the consummation of the transactions contemplated hereby shall be construed as
an attempt or agreement to assign any Purchased Asset, including any Contract, Permit, certificate, approval, authorization or
other right, that by its terms or by Law is non-assignable without the consent of a Third Party (including any Authority) or is
cancelable by a Third Party in the event of an assignment (a “Non-Assignable Asset”), unless and until consent
from such Third Party shall have been obtained. With respect to all Non-Assignable Assets, including those set forth on Schedule
1.5 of the Seller Disclosure Schedules, Seller and Parent shall use commercially reasonable efforts to cooperate with Buyer
at its request for up to six (6) months following the Closing Date in endeavoring to obtain such consents; provided, however,
that such efforts shall not require Seller, Parent or any of their Affiliates to incur any expenses or Liabilities, provide any
financial accommodation, or remain secondarily or contingently liable for any Assumed Liability to obtain any such consent and
any failure to obtain any consent by Seller for any reason in and of itself shall not constitute a breach of this Agreement. To
the extent permitted by applicable Law and the terms of the Non-Assignable Assets, in the event that consents to the assignment
thereof cannot be obtained, such Non-Assignable Assets shall be held, as of and from the Closing Date, by Seller (or the applicable
Affiliate of Seller) for the benefit of Buyer, and the covenants and obligations thereunder shall be performed by Buyer at Buyer’s
expense and in Seller’s name, and all benefits and obligations existing thereunder shall be for Buyer’s account (and
Seller shall promptly pay over to Buyer all money received by it under such Non-Assignable Assets in respect of periods after the
Closing Date); provided, that Seller may, after providing prior written notice to Buyer with reasonable detail, withhold
any performance under a Non-Assignable Asset that may otherwise be reasonably requested by Buyer until Buyer shall have provided
Seller with all funds and other resources necessary for such performance. As of and from the Closing Date, Seller authorizes Buyer,
to the extent permitted by applicable Law and the terms of the Non-Assignable Assets, at Buyer’s expense, to perform all
the obligations and receive all the benefits of Seller under the Non-Assignable Assets. Buyer agrees to indemnify and hold Seller
and its Representatives, successors and assigns harmless from and against any and all Liabilities and Losses based upon, arising
out of or relating to Buyer’s performance of, or failure to perform, obligations under the Non-Assignable Assets to the extent
such Liability would have been an Assumed Liability if the assignment of the Non-Assigned Assets to Buyer had occurred on the Closing
Date.

 

Article 2

PURCHASE
PRICE AND DEPOSIT

 

2.1         Purchase
Price.

 

(a)          The
aggregate consideration to be paid by Buyer to Seller for the conveyance, assignment and transfer of the Purchased Assets at the
Closing shall be an amount equal to Fourteen Million Six Hundred Thousand Dollars ($14,600,000), plus or minus (as applicable)
(i) the Acquired Cash Adjustment, and (ii) the Working Capital Adjustment (such amount, as adjusted, the “Purchase Price”).

 

(b)          Estimated
Purchase Price. Not later than ten (10) Business Days prior to the Closing, Seller shall deliver to Buyer a good faith estimate,
made consistent with the terms and conditions of this Agreement and based upon information available to it, of the Purchase Price
(the “Estimated Purchase Price”), in the form attached hereto as Exhibit A.

 

(c)          Cash
Payment by Buyer at Closing. At Closing, Buyer shall pay to Seller an aggregate amount in cash, by electronic transfer of immediately
available funds, to an account designated by Seller, equal to (i) the Estimated Purchase Price, minus (ii) the Escrow
Amount (collectively, the “Closing Cash Payment”).

 

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2.2         Escrow.
At the Closing, the Escrow Amount shall be deposited by Buyer into escrow with the Escrow Agent pursuant to an escrow agreement,
substantially in the form of Exhibit B hereto (the “Escrow Agreement”), and shall be held to satisfy
any claims made by Buyer or any of the Buyer Indemnitees against Seller or Parent pursuant to Article 10 for a period
of twelve (12) months. All costs and expenses related to holding in escrow the Escrow Amount, including the fees of the Escrow
Agent, shall be borne equally by Buyer and Seller.

 

2.3         Cash
Count. At the close of business on the Closing Date (or at such other day or time as mutually agreed by Buyer and Seller or
otherwise dictated by applicable Gaming Laws), Seller shall conduct a physical count of all cash contained in cages, ATMs, slot
booths, count rooms, gaming devices, drop boxes and any other location where cash is held by Seller at the Facilities (the “Cash
Count”). The Cash Count shall be conducted in accordance with the policies, procedures and methodologies mutually agreed
by the parties and otherwise in accordance with applicable Gaming Laws. Buyer shall be entitled to have Representatives present
during the Cash Count, which Representatives shall, to the extent permitted by Law, have full access to the Cash Count proceedings
and cooperate with Seller’s Representatives in good faith to resolve any disputes regarding the conduct of the Cash Count.
Such Cash Count will be used in the preparation of the Closing Payment Statement.

 

2.4         Purchase
Price Adjustments.

 

(a)          As
soon as reasonably practicable following the Closing Date, but in no event more than ninety (90) days after the Closing Date, Buyer
shall cause to be prepared and delivered to Seller a statement (the “Closing Payment Statement”) setting forth
in reasonable detail, as of the Closing Date, its calculation of (i) the Acquired Cash Adjustment, (ii) the Working Capital
Adjustment, and (iii) the Purchase Price. The Acquired Cash Adjustment calculation shall incorporate the results of the Cash
Count as provided in Section 2.4. The Acquired Cash Adjustment, the Working Capital Adjustment, and the Purchase Price
calculations shall be determined in accordance with the definitions and principles set forth in this Agreement and the other terms
and conditions of this Agreement, and in accordance with GAAP applied on a basis consistent with the application of such principles
in the preparation of the Reference Balance Sheet and the Purchase Price. The Closing Payment Statement shall be prepared in accordance
with, and in the format of, Exhibit A, and shall include calculation of (A) the Acquired Cash Adjustment, which shall
be prepared in accordance with, and in the format of, Exhibit F, and (B) the Working Capital Adjustment, which shall be
prepared in accordance with, and in the format of, Exhibit H. Subject to applicable Law, Seller will use commercially reasonable
efforts to cooperate with Buyer in connection with the preparation of the Closing Payment Statement and will provide Buyer with
reasonable access to any of Seller’s records not otherwise available to Buyer as a result of the transactions contemplated
by this Agreement, to the extent necessary for the preparation of the Closing Payment Statement (excluding income Tax books or
records and communications that are protected by the attorney-client privilege or the work-product privilege).

 

    	 	8	 

     

    

 

(b)          If
Seller shall have any disagreement with the Closing Payment Statement, it shall, on or prior to thirty (30) days after its receipt
of the Closing Payment Statement, notify Buyer of such disagreement in writing, setting forth in reasonable detail the particulars
of such disagreement. In connection therewith and subject to applicable Law, Buyer will make available to Seller all workpapers
and other books and records utilized by Buyer in the preparation of the Closing Payment Statement and those Representatives of
Seller involved in the preparation of the Closing Payment Statement, and will provide Seller reasonable access to such other Business
records not otherwise available to Seller as a result of the transactions contemplated by this Agreement (excluding income Tax
books or records and communications that are protected by the attorney-client privilege or the work-product privilege), to the
extent Seller deems necessary for Seller’s review of the Closing Payment Statement. If Seller does not provide such notice
of disagreement within such thirty (30) day period, Seller shall be deemed to have accepted the Closing Payment Statement delivered
by Buyer and such determination shall be final, binding and conclusive for all purposes of this Agreement. Any purported failure
by Seller to provide the aforementioned “reasonable detail” shall not be used as the basis for an assertion by Buyer
that Seller’s notice of disagreement was not timely delivered. If any such notice of disagreement is timely provided, Buyer
and Seller, in conjunction with their respective independent accounting firms, shall use commercially reasonable efforts for a
period of thirty (30) days from the date of Seller’s notice of disagreement (or such longer period as they may mutually agree)
to resolve any disagreements with respect to the Closing Payment Statement. If, at the end of such period, they are unable to resolve
such disagreements, then Ernst & Young LLP or such other independent accounting firm as the parties may mutually agree upon
(as determined, the “Auditor”) shall resolve any remaining disagreements. The Auditor shall determine as promptly
as practicable (but in any event shall be instructed to deliver its determination within sixty (60) days after its engagement),
only with respect to the disagreements submitted to the Auditor, whether the Closing Payment Statement was prepared in accordance
with the standards set forth in this Agreement and, only with respect to the disagreements submitted to the Auditor, whether and
to what extent (if any) the Closing Payment Statement requires adjustment, and shall be instructed not to otherwise investigate
matters independently. The Auditor shall promptly deliver to Buyer and Seller its determination in writing, which determination
shall be made subject to the definitions and principles set forth in this Agreement, and shall be (i) consistent with either
the position of Seller or Buyer or (ii) between the positions of Seller and Buyer. The fees and expenses of the Auditor shall
be borne equally by Buyer and Seller. The determination of the Auditor shall be final, binding and conclusive for purposes of this
Agreement and not subject to any further recourse by Buyer or Seller under any provision hereof, including Article 10,
and judgment may be entered thereon in a court of competent jurisdiction.

 

(c)          If
the Purchase Price, as finally determined in accordance with Section 2.4(b), exceeds the Estimated Purchase Price,
then Buyer shall, within seven (7) Business Days of the determination date, pay to Seller such difference by wire transfer of immediately
available funds to such account or accounts designated by Seller in writing (or in the absence of any such designation, by corporate
check mailed to Seller).

 

(d)          If
the Purchase Price, as finally determined in accordance with Section 2.4(b), is less than the Estimated Purchase Price,
then Seller or Parent shall, within seven (7) Business Days of the determination date, pay to Buyer such difference by wire transfer
of immediately available funds to such account or accounts designated by Buyer in writing (or in the absence of any such designation,
by corporate check mailed to Buyer).

 

    	 	9	 

     

    

 

2.5         Allocation
of Purchase Price. Within twenty (20) Business Days after the Purchase Price is finally determined in accordance with Section 2.4(b),
Buyer shall deliver to Seller a schedule (an “Allocation Schedule”) allocating the Purchase Price among the
Purchased Assets in accordance with Section 1060 of the Code. If within twenty (20) Business Days after receipt of the applicable
Allocation Schedule, Seller does not provide notice as set forth in the following sentence, such Allocation Schedule shall be final
and binding on the parties. If within twenty (20) Business Days after receipt of the applicable Allocation Schedule, Seller notifies
Buyer in writing that Seller objects to one or more items reflected on such Allocation Schedule, Buyer and Seller shall negotiate
in good faith to resolve such dispute. If Buyer and Seller fail to resolve any such dispute within twenty (20) Business Days after
Buyer’s receipt of Seller’s notice of an objection to the applicable Allocation Schedule, each of the parties may file
an Allocation Schedule of its own choosing for Tax reporting purposes. Any adjustment to the Purchase Price shall be allocated
and any Allocation Schedule that Seller did not dispute shall be adjusted as provided by Treasury Regulation § 1.1060-1(c).

 

2.6         Prorations.
On the Closing Date, all utility charges and other similar periodic obligations and expenses (but not including those items prorated
under Article 8 and those items reflected in the calculation of the Working Capital Adjustment as finally determined
pursuant to Section 2.4), related to the Purchased Assets will be prorated as of the Closing Date, with Seller responsible
for such charges, obligations and expenses for the period up to the Closing Date, and Buyer to be responsible for the period on
and after the Closing Date. Whenever possible, such prorations will be based on actual, current payments by Seller, and to the
extent such actual amounts are not available, such prorations will be estimated as of the Closing Date based on actual amounts
for the most recent comparable billing period. When the actual amounts become known, such prorations will be recalculated by Buyer
and Seller, and Buyer or Seller, as the case may be, promptly (but not later than five (5) Business Days after notice of payment
due) will make any additional payment or refund so that the correct prorated amount is paid by each of Buyer and Seller. Buyer
shall bear the cost of a title policy issued to Buyer insuring the Facilities, and any survey or survey update ordered for such
title policy.

 

Article 3

CLOSING

 

3.1         Closing;
Closing Date. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take
place at 10:00 a.m. (Las Vegas, Nevada time) on the fifth (5th) Business Day following the satisfaction or waiver of the conditions
in Article 9 (other than those conditions that by their nature are to be satisfied or waived at the Closing, but subject
to their satisfaction or waiver at the Closing), or at such other time and date as may be mutually agreed by Buyer and Seller;
provided, however, that the parties agree to use commercially reasonable efforts to cause the Closing to occur on
the first Business Day of a calendar month. The Closing shall take place at the offices of the Escrow Agent or at such other location
and time as is mutually agreeable to Buyer and Seller. The date on which the Closing shall occur is referred to herein as the “Closing
Date.” The effective time of the Closing for tax and accounting purposes shall be 11:59 p.m. Pacific Time on the
Closing Date (or such other time as shall constitute the end of the “gaming day” of the Business as determined pursuant
to applicable Gaming Laws or by the Gaming Authorities).

 

    	 	10	 

     

    

 

3.2         Seller
and Parent Closing Deliveries. At the Closing, Seller and Parent will deliver or cause to be delivered to Buyer all of the
following:

 

(a)          a
bill of sale and assignment and assumption agreement duly executed by Buyer and Seller, in form and substance substantially as
set forth in Exhibit C (the “Conveyance Agreement”);

 

(b)          a
certificate, executed on behalf of Parent and Seller by a duly authorized officer of Parent and Seller, in form and substance reasonably
satisfactory to Buyer, dated the Closing Date, confirming that the conditions precedent in Sections 9.2(a) 9.2(b) and 9.2(c)
have been satisfied;

 

(c)          a
certificate executed on behalf of Seller by a duly authorized officer of Seller, in form and substance reasonably satisfactory
to Buyer, dated the Closing Date, together with copies of (i) the resolutions adopted by Seller and Parent authorizing the
execution, delivery and performance of this Agreement and the completion of the transactions contemplated hereby, (ii) a written
certification identifying the individuals duly authorized to execute this Agreement on Seller’s and Parent’s behalf
and any Ancillary Document, or any other instruments or documents related hereto or thereto to which Seller or Parent is or will
at the Closing be a party as the binding obligation of Seller and/or Parent, as applicable; (iii) the articles of organization
of Seller, (iv) the operating agreement of Seller, and (v) a certificate dated within ten (10) Business Days prior to
the Closing Date, issued by the Nevada Secretary of State, evidencing the good standing of Seller in the State of Nevada, which
certification will confirm that such copies are correct and complete and that such resolutions were duly adopted, have not been
amended or rescinded and are in full force and effect;

 

(d)          a
transition services agreement duly executed by Seller pursuant to which Seller will provide the services described in Exhibit
D to Buyer, in form and substance reasonably satisfactory to Seller and Buyer (the “Transition Services Agreement”);

 

(e)          a
grant, bargain and sale deed with respect to the Owned Real Property, in form and substance substantially as set forth in Exhibit
E (the “Deed), duly executed by Seller;

    	 	11	 

     

    

 

(f)           the
Consents identified in Schedule 3.2(f) of the Seller Disclosure Schedules, in form and substance reasonably satisfactory
to Buyer (the “Required Consents”) or, to the extent that any such Required Consent identified in Schedule
3.2(f) of the Seller Disclosure Schedules (other than the Required Consent identified as item 1 therein) shall not have been
obtained on or prior to the Closing, Seller shall retain and continue to hold the Contract to which such Required Consent related
and ensure that Buyer receives the full benefits of the provisions of such Contract for the duration of its term in accordance
with Section 1.5;

 

(g)          the
Escrow Agreement, duly executed by Seller;

 

(h)          a
certificate from Seller (or the taxpayer as to which Seller is disregarded as separate) stating that Seller (or such taxpayer)
is not a “foreign person” as defined in Section 1445 of the Code, and otherwise meeting the requirements of Section
1.1445-2(b) of the Treasury Regulations, along with a properly completed IRS Form W-9 of Seller (or such taxpayer);

 

(i)            evidence
reasonably satisfactory to Buyer that all recorded Encumbrances on the Purchased Assets have been released or removed, except for
any Permitted Encumbrances; and

 

(j)          such
other typical and customary certificates, documents and instruments as Buyer may reasonably request related to the transactions
contemplated hereby.

 

3.3         Buyer
Closing Deliveries. At the Closing, Buyer will deliver or cause to be delivered:

 

(a)          an
amount equal to the Closing Cash Payment, which amount will be directed to Seller by wire transfer of immediately available funds
to an account designated by Seller in writing at least two (2) Business Days prior to the Closing;

 

(b)          the
Escrow Amount to the Escrow Agent, via wire transfer of immediately available funds;

 

(c)          to
Seller and, if applicable, Parent, the Conveyance Agreement, Escrow Agreement, and Transition Services Agreement, duly executed
by Buyer;

 

(d)          to
Seller, a certificate, executed on behalf of Buyer by a duly authorized officer of Buyer, in form and substance reasonably satisfactory
to Seller, dated the Closing Date, confirming that the conditions precedent in Sections 9.3(a) and 9.3(b) have been
satisfied;

 

(e)          to
Seller, a certificate, executed on behalf of Buyer by a duly authorized officer of Buyer, in form and substance reasonably satisfactory
to Seller, dated the Closing Date, together with copies of (i) the resolutions adopted by Buyer authorizing the execution,
delivery and performance of this Agreement and the completion of the transactions contemplated hereby, and (ii) a written
certification identifying the individuals duly authorized to execute this Agreement on Buyer’s behalf and any Ancillary Document,
or any other instruments or documents related hereto or thereto to which Buyer is or will at the Closing be a party as the binding
obligation of Buyer, which certification will confirm that such copies are correct and complete and that such resolutions were
duly adopted, have not been amended or rescinded and are in full force and effect.; and

 

    	 	12	 

     

    

 

(f)           such
other typical and customary certificates, documents and instruments as Seller may reasonably request related to the transactions
contemplated hereby.

 

Article 4

REPRESENTATIONS
AND WARRANTIES OF SELLER AND PARENT

 

Seller and Parent jointly
and severally represent and warrant to Buyer, except as set forth in the Disclosure Schedules delivered by Seller and Parent to
Buyer on the Agreement Date (the “Seller Disclosure Schedules”) as follows:

 

4.1         Organization,
Standing and Corporate Power.

 

(a)          Seller
is a limited liability company, and Parent is a corporation, in each case duly organized, validly existing and in good standing
under the laws of the State of Nevada, and Seller is duly qualified, licensed or registered to do business in every other jurisdiction
in which the nature of its business or the ownership of its property requires it to be qualified, except where the failure to be
so qualified, licensed or registered would not reasonably be expected to result in a Material Adverse Effect. Seller and Parent
each has all requisite limited liability company or corporate power and authority to conduct its business and affairs as currently
being conducted and to own, lease and operate its properties and assets.

 

(b)          Seller
has no Subsidiaries and neither Seller nor Parent has Affiliates who are involved in the Business other than Parent or Seller,
and Seller does not directly or indirectly hold any capital stock or other equity securities, options, warrants, convertible debt,
or other derivative securities of any Person or otherwise have any direct or indirect ownership interest in any Person or business,
except the Business.

 

(c)          Seller
has provided Buyer with correct and complete copies of Seller’s Governing Documents, including all amendments thereto. Seller
is not in Breach of any of its Governing Documents.

 

4.2         Capitalization;
Ownership Interests. Parent is the sole record and beneficial owner of a 100% membership interest in Seller, which interest
has been validly issued and is nonassessable. Except as set forth on Schedule 4.2 of the Seller Disclosure Schedules,
(a) there are no other equity interests of Seller issued or outstanding, and (b) there are no options, warrants, convertible
debt, or other derivative securities, phantom equity rights or similar rights or interests issued by Seller or relating to any
equity interests or voting securities of Seller.

    	 	13	 

     

    

 

4.3         Authority;
Approvals. Seller and Parent each have all necessary limited liability company or corporate power and authority to execute
and deliver this Agreement and the Ancillary Documents to which Seller and/or Parent is or will be a party, and to complete the
transactions contemplated by this Agreement. Seller and Parent have taken all action required by Law, Seller’s Governing
Documents and otherwise to authorize Seller’s and Parent’s execution and delivery of this Agreement and the Ancillary
Documents to which Seller or Parent is or will be a party and the performance of Seller’s and Parent’s obligations
hereunder and thereunder. No other limited liability company or corporate proceeding or action on the part of Seller or Parent
is necessary to approve and authorize Seller’s or Parent’s execution and delivery of this Agreement or any of the Ancillary
Documents to which Seller or Parent is or will be a party or the performance of its obligations hereunder or thereunder. Seller
and Parent have each duly and validly executed and delivered this Agreement, and the Ancillary Documents to be executed and delivered
by Seller and/or Parent will at the Closing be duly executed and delivered by Seller and/or Parent, as applicable. Assuming the
due authorization, execution and delivery of this Agreement by Buyer, this Agreement constitutes, and at the Closing each Ancillary
Document to be executed and delivered by Seller and/or Parent, assuming the due authorization, execution and delivery by Buyer
of each such Ancillary Document to which Buyer is or will be a party, will constitute, the legal and valid binding obligation of
Seller and/or Parent, as applicable, enforceable against Seller and/or Buyer, as applicable, in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws relating to creditors’ rights generally
and to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

 

4.4         Absence
of Conflicts. Except as set forth on Schedule 4.4 of the Seller Disclosure Schedules, neither the execution, delivery
nor performance of this Agreement or any Ancillary Document to which Seller or Parent is or will be a party, nor the consummation
by Seller and Parent of the transactions contemplated hereby or thereby does or will: (a) conflict with or result in any breach
of any of the provisions of, (b) constitute a default under, (c) result in a violation of, (d) give any Third Party
the right to terminate or to accelerate any obligation under, (e) result in the creation of any Encumbrance upon any assets
of Seller, the Business or the Purchased Assets, or (f) require any authorization, consent, approval, exemption or other action
by or notice to or filing with any Authority or any other Person, except for such authorizations, consents, approvals, exemptions
or other actions by or notices to or filings with any Authority required under applicable Gaming Laws or Liquor Laws, in each case
under (i) the provisions of the articles of organization or operating agreement of Seller, (ii) any material indenture, license,
mortgage, loan agreement or other agreement, instrument or Contract to which Seller is bound or the Business, or any of the Purchased
Assets are affected, or (iii) subject to the authorizations, consents, approvals, exemptions or other actions by or notices to
or filings with any Authority required under applicable Gaming Laws or Liquor Laws, any Law to which Seller, the Business, or any
of the Purchased Assets is subject.

 

4.5         Financial
Statements; No Undisclosed Liabilities.

 

(a)          Seller
has made available to Buyer correct and complete copies of the unaudited balance sheets of Seller dated April 30, 2018, 2017
and 2016, and the related unaudited statements of income and cash flows for the fiscal years then ended (collectively, the “Financial
Statements”, the balance sheet of Seller as of April 30, 2018 is referred to herein as the “Reference Balance
Sheet” and April 30, 2018 is referred to herein as the “Reference Balance Sheet Date”).

 

    	 	14	 

     

    

 

(b)          The
Financial Statements are consistent with the books and records of Seller and fairly present in all material respects the financial
position of Seller as of the dates indicated and the results of operations of Seller for the periods indicated, in conformity with
GAAP applied on a consistent basis throughout the periods specified, except as expressly set forth therein and except that the
Financial Statements omit footnotes and the disclosures required therein.

 

(c)          As
relates to the Business or the Purchased Assets, as of the Agreement Date, Seller does not have any material Liabilities, except
for (i) Liabilities which are adequately reflected or reserved against in the Reference Balance Sheet, (ii) Liabilities
which have arisen after the Reference Balance Sheet Date in the Ordinary Course of Business, (iii) Liabilities relating to
or arising under Leases, Contracts, Permits and Permitted Encumbrances which do not result from or arise out of breaches thereof,
(iv) Liabilities for Taxes that do not violate the representations and warranties contained in Section 4.12, or
(v) those set forth in Section 4.5(c) of the Seller Disclosure Schedules.

 

4.6         Absence
of Certain Changes. Except as set forth in Schedule 4.6 of the Seller Disclosure Schedules, between the Reference Balance
Sheet Date and the Agreement Date, (i) there has not been any change, event or occurrence that has had a Material Adverse Effect,
and (ii) neither Seller nor, as it relates to the Business, Parent has:

 

(a)          sold,
leased, transferred, or assigned any material assets of Seller, tangible or intangible (including Intellectual Property), other
than Inventory sold in the Ordinary Course of Business;

 

(b)          entered
into any agreement, Contract, lease, license or permit (or series of related agreements, Contracts, leases, licenses and permits
with the same Person), either (i) involving payments to or by Seller of more than $25,000 (individually or in the aggregate),
other than slot participation agreements entered into in the Ordinary Course of Business, or (ii) outside the Ordinary Course
of Business;

 

(c)          entered
into any Contract with any Authority or accelerated, terminated, modified, or cancelled any Contract with any Authority to which
Seller is a party or by which it is bound;

 

(d)          entered
into any agreement, Contract, lease or license (or series of related agreements, Contracts, leases or licenses with the same Person)
with any Affiliate of Seller or Parent;

 

(e)          waived
any right of material value that would otherwise constitute a Purchased Asset;

 

(f)           except
in the Ordinary Course of Business, terminated or cancelled, or modified in any material respect, any Contract (or series of related
Contracts with the same Person) involving payments to or by Seller of more than $25,000 (individually or in the aggregate) to which
Seller is a party or by which it is bound;

 

    	 	15	 

     

    

 

(g)          imposed
(or allowed to be imposed) any Encumbrances (other than Permitted Encumbrances) upon any of assets of Seller, tangible or intangible
(including any Assigned IP);

 

(h)          made
any capital expenditure (or series of related capital expenditures) that involves more than $25,000 other than capital expenditures
set forth in Seller’s budget for the applicable period(s), copies of which have been provided to Buyer;

 

(i)           made
any capital investment in, any loan to (other than (i) advances of expenses to employees in the Ordinary Course of Business and
(ii) player markers issued in the Ordinary Course of Business and reflected in the Business’s records), or any acquisition
of the securities or assets of, any other Person;

 

(j)           issued
any note, bond, or other debt security or created, incurred, assumed, or guaranteed any indebtedness for borrowed money in an aggregate
amount exceeding $25,000;

 

(k)          delayed
or postponed the payment of any accounts payable or other Liabilities of Seller outside the Ordinary Course of Business;

 

(l)           declared,
set aside, or paid any dividend or made any distribution with respect to the membership interests or other equity interests of
Seller (whether in cash or in kind) or redeemed, purchased, or otherwise acquired any of the membership interests or other equity
interests of Seller which in each case would remain an obligation of or Encumbrance upon the Purchased Assets or the Business following
the Closing;

 

(m)         entered
into any employment Contract or collective bargaining agreement;

 

(n)          except
in the Ordinary Course of Business, as required by Law or as required by the terms of any Plan, adopted, amended, modified or terminated
any Plan;

 

(o)          made
any Tax election or adopted or changed in any Tax accounting method or policy, filed any amended Tax Return, consented to or entered
into any closing agreement or similar written agreement with any Taxing Authority or consented to or settled or compromised any
Tax claim or assessment that, as to any such action, would have the effect of increasing the Tax Liability or reducing any Tax
asset of Buyer with respect to the Business or the Purchased Assets in any post-Closing Tax period;

 

(p)          made
or granted any bonus or any wage, salary or compensation increase in excess of $10,000 per year to any employee or independent
contractor of Seller;

 

(q)          (i)
transferred or assigned, or allowed to lapse or go abandoned, any material rights under or with respect to any Assigned IP; or
(ii) granted any license or sublicense of any Assigned IP, other than in the case of clause (i) and (ii) in the Ordinary Course
of Business;

 

    	 	16	 

     

    

 

(r)           excluding
normal wear and tear, experienced any physical damage, destruction or loss (whether or not covered by insurance) to the Tangible
Personal Property or the Facilities in excess of $25,000 in the aggregate;

 

(s)          changed
in any material respect its accounting policies and practices as in effect on the Reference Balance Sheet Date, except as required
by GAAP or applicable Law or changed its fiscal year; or

 

(t)           agreed
or committed (whether or not in writing) to do any of the foregoing.

 

4.7         Real
Property.

 

(a)          Schedule 4.7(a)
of the Seller Disclosure Schedules contains a true and complete list, as of the Agreement Date, of all of the leases, licenses,
subleases and all other similar occupancy agreements, including all amendments or other modifications thereto (collectively, the
“Leases”), pursuant to which Seller leases, licenses, subleases or otherwise occupies real property (such real
property, collectively, the “Leased Real Property”). The Leased Real Property is the only real property leased,
subleased, licensed or otherwise occupied by Seller that is used in the Business, other than the Owned Real Property. With respect
to the Leases and the Leased Real Property: (i) Seller has a good and valid leasehold interest in all of the Leased Real Property,
free and clear of any Encumbrances (other than Permitted Encumbrances), (ii) the Leases are in full force and effect, (iii) neither
Seller nor, to the Knowledge of Seller, any other party to any Lease, is in material default under any Lease, and (iv) to
the Knowledge of Seller, no event has occurred which, with notice or lapse of time, would constitute a material breach or default
by Seller under any of the Leases. Seller has made or prior to Closing will make available to Buyer or its Representatives true,
correct and complete copies of the Leases and, to the extent in possession or control of Parent or Seller, all certificates of
occupancy and surveys relating to the Leased Real Property. To the Knowledge of Seller, neither the current use of the Leased Real
Property by Seller, nor the Leased Real Property itself contravenes or violates any building, zoning, administrative, occupational
safety and health or other applicable Law in any material respect.

 

(b)          Schedule
4.7(b) of the Seller Disclosure Schedules contains a true and complete list of all real property owned by Seller (the “Owned
Real Property”). Seller has good and valid title to all of the Owned Real Property, free and clear of any Encumbrances
(other than Permitted Encumbrances). To the Knowledge of Seller, none of the Owned Real Property, or the use thereof, contravenes
or violates any building, zoning, administrative, occupational safety and health or other applicable Law in any material respect.
Seller has made or prior to Closing will make available to Buyer or its Representatives copies of all leases, certificates of occupancy,
surveys, environmental reports and documents evidencing unrecorded easements, rights of way and similar restrictions and rights
(and all amendments thereto) with respect to the Owned Real Property, to the extent the same are in Parent’s or Seller’s
possession or control. Other than as set forth on Schedule 4.7(b) of the Seller Disclosure Schedules, Seller is not
party to any lease, license, sublease or similar occupancy agreement under which it leases, licenses, subleases or otherwise makes
any of the Owned Real Property available for occupancy by any Third Party.

    	 	17	 

     

    

 

(c)          After
giving effect to capital expenditures currently budgeted or being undertaken by Seller, each as specifically disclosed on Schedule 4.7(c)
of the Seller Disclosure Schedules, all material improvements, structures, facilities, fixtures and equipment located on the
Leased Real Property and the Owned Real Property and currently used in the Business are in all material respects good operating
condition, ordinary, wear and tear excepted.

 

4.8         Tangible
Personal Property.

 

(a)          Seller
has good and transferable right, title and interest in and to all of the Tangible Personal Property, and at the Closing Seller
will transfer all Tangible Personal Property to Buyer, free and clear of any Encumbrances other than Permitted Encumbrances. Other
than the Tangible Personal Property and Inventory, Seller does not own any tangible personal property that is used in or solely
related to the Business.

 

(b)          Except
as listed on Schedule 4.8(b) of the Seller Disclosure Schedules, after giving effect to capital expenditures currently budgeted
or being undertaken by Seller, as of the Agreement Date, all material Tangible Personal Property currently used in the Business
is (i) in all material respects good repair and in operating condition, ordinary wear and tear excepted and (ii) free from material
defects and in Seller’s possession and control at the location of the Business. The Tangible Personal Property comprises
all of the tangible assets used in, related to or required for the continued operation by Buyer of the Business in the same manner
as currently conducted by Seller. Except for the Retained Assets and Non-Assignable Assets, immediately following the consummation
of the Closing, there will be no tangible assets currently used by the Business which will not be owned by Buyer or leased or licensed
to Buyer under either the Transition Services Agreement or Assigned Contracts as a result of the transactions contemplated hereby.

 

4.9         Inventory.
Seller has good and transferable right, title and interest in and to all of the Inventory. At the Closing, Seller will transfer
the Inventory to Buyer free and clear of any Encumbrances other than Permitted Encumbrances.

 

4.10       Proceedings;
Orders.

 

(a)          Schedule
4.10(a) of the Seller Disclosure Schedules sets forth a list, as of the Agreement Date, of: (i) all material Proceedings pending
or, to the Knowledge of Seller, threatened in writing, against Parent or Seller relating to the Business or Seller, or any director,
officer, employee, consultant or other agent or other representative of Seller (but only in their capacity as such) and (ii) all
material Proceedings relating to the Business or Seller that have been decided by any Authority or otherwise settled, resolved,
abandoned or expired during the period from December 1, 2015 through the Agreement Date.

 

    	 	18	 

     

    

 

(b)          As
of the Agreement Date, none of Seller, any of the Purchased Assets or the Business is subject to any material Order other than
those of general applicability. To the Seller’s Knowledge, no manager, officer, employee or other agent of Seller, in their
capacity as such, is subject to any material Order relating to Seller or any of the Purchased Assets or the Business.

 

4.11       Compliance
with Laws; Permits.

 

(a)          Except
as set forth on Schedule 4.11(a) of the Seller Disclosure Schedules, (x)  the Business is being conducted in compliance
in all material respects with all applicable Laws and as of the Agreement Date no Authority or other Person has given written notice
or alleged in writing to Seller or Parent that Seller or Parent, in relation to the Business, is currently in Breach of any applicable
Law, except in respect of instances of non-compliance that are not material, individually or in the aggregate, and (y) during
the period from December 1, 2015 to the Agreement Date, Seller and Parent have, in relation to the Business, complied with all
applicable Laws and no Authority or other Person has given written notice or alleged in writing to Seller or Parent that Seller
or Parent has, in relation to the Business, Breached any applicable Law, except in respect of instances of non-compliance that
are not material, individually or in the aggregate.

 

(b)          Seller
holds all material Permits currently required to own and operate the Business and Purchased Assets in all material respects in
the manner it in which it is currently conducted in compliance in all material respects with applicable Laws. Each such Permit
is in full force and effect, and to the Knowledge of Seller, no event has occurred, and no circumstance exists that was caused
by Seller or Parent, and to the Knowledge of Seller, no other event has occurred or circumstance exists, that would reasonably
be expected to (with or without notice or lapse of time) constitute or result in a revocation, cancellation, termination or material
Breach of any such Permit or material modification thereof. No Authority or other Person has given written notice or alleged in
writing to Seller (or, to the Knowledge of Seller, otherwise alleged) that Seller is currently required to hold a material Permit
that it does not hold.

 

(c)          To
the Knowledge of Seller, each of Parent’s and Seller’s directors, managers, officers and employees hold all material
permits, registrations, findings of suitability, licenses, variances, exemptions, orders and approvals of all Authorities necessary
for their conduct of the Business as currently conducted by Seller, each of which is in full force and effect. There has occurred
no material default, revocation or suspension under any such permits, registrations, findings of suitability, licenses, variances,
exemptions, orders and approvals of any Authorities.

 

    	 	19	 

     

    

 

4.12       Tax
Matters. Other than as set forth on Schedule 4.12 of the Seller Disclosure Schedules:

 

(a)          Seller
has duly and timely filed (taking into account any extension of time within which to file) all Relevant Tax Returns that it was
required to file under applicable Law, and all such Tax Returns were true correct and complete and in substantial compliance with
applicable Law when filed. Seller has timely and properly paid all Relevant Taxes required to be paid by it under applicable Law,
whether or not disputed and whether or not shown to be due and payable on any Tax Return. Seller is not currently the beneficiary
of any extension of time within which to file any Relevant Tax Return. There are no Encumbrances on any of the Purchased Assets
that arose in connection with any failure (or alleged failure) to pay any Tax. For purposes of this Section 4.12, “Relevant”
shall mean, when modifying “Taxes” or “Tax Returns,” such Taxes or Tax Returns, as appropriate, that relate
to the Purchased Assets or the Business or that, or that may reasonably be expected to, result in an Encumbrance on the Purchased
Assets or the Business after the Closing.

 

(b)          Seller
has withheld or collected and paid over on a timely basis to the appropriate Authorities (or is properly holding for such timely
payment) all Relevant Taxes required by applicable Law to be withheld or collected by Seller in connection with amounts paid or
owing to any employee, independent contractor, creditor, customer, member of Seller or other Person and all Relevant Tax Returns
(including, but not limited to, Forms W-2 and 1099) required with respect thereto have been properly completed and timely filed.

 

(c)          No
Taxing Authority has given written notice or alleged in writing to Seller (or, to the Knowledge of Seller, has otherwise alleged)
that Seller has or may have Breached any applicable Law regarding the preparation or filing of any Tax Returns or the payment or
withholding of any Relevant Taxes (including any claim that Seller is required to pay Taxes in any jurisdiction where it does not
currently file a Tax Return or may be subject to Tax in such jurisdiction). Seller has not granted any waiver, extension or comparable
Consent for the payment of Relevant Taxes or filing of Relevant Tax Returns that remains outstanding, and no request for any such
waiver, extension or comparable Consent from Seller has been received by Seller or Parent that is pending.

 

(d)          Seller
has not received any written notice of any pending or, to the Knowledge of Seller, threatened request, audit, inquiry or other
Proceeding in relation to Relevant Taxes or Relevant Tax Returns, and, to the Knowledge of Seller, no such request, audit, inquiry
or other Proceeding is pending, ongoing, scheduled or threatened. Seller has not waived any statute of limitations in respect of
Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency.

 

(e)          There
are no Tax rulings, requests for rulings, technical advice memoranda, applications for change in accounting methods, closing agreements
or any similar rulings, memoranda or agreements that would reasonably be expected to affect Liabilities for Relevant Taxes for
any Taxable Period (or portion thereof) after the Closing Date. Seller has no Liability for the Taxes of any other Person under
Section 1.1502-6 of the Treasury Regulations (or any similar provision of state, local, or non-U.S. law), as a transferee
or successor, by Contract or otherwise, that, or that may reasonably be expected to, result in an Encumbrance on the Purchased
Assets or the Business.

 

    	 	20	 

     

    

 

4.13       Employment
Matters.

 

(a)          Seller
is not currently in material Breach of, and during the period from December 1, 2015 to the Agreement Date, Seller has not materially
Breached, any applicable Law concerning employment, employment practices and employee rights, or the calculation and payment of
wages (including all applicable Laws concerning terms and conditions of employment, employment classifications (as to both classification
as an employee as well as classification as an exempt or non-exempt employee), minimum wage, overtime, pay deductions, hours of
work, termination, equal employment opportunity, discrimination, disability rights or benefits, affirmative action, employee leave
issues, child labor, immigration, health and safety, plant closures and layoffs, workers’ compensation, unemployment, the
payment of employment related Taxes and labor relations and unfair labor practices) with respect to the Business Employees, and
during the period from December 1, 2015 to the Agreement Date, no Authority or other Person has given written notice or alleged
in writing to Seller that Seller has or may have Breached any such Law relating to the employment of the Business Employees.

 

(b)          During
the period from December 1, 2015 to the Agreement Date, there have been no actual or, to the Knowledge of Seller, threatened material
work stoppages, slowdowns, lockouts, labor strikes or other material labor disputes involving any Business Employee. To the Knowledge
of Seller, during the period from December 1, 2015 to the Agreement Date, there has been no attempt to form any labor union, labor
organization, trade union, works council or similar organization or association of employees in relation to the Business.

 

(c)          Seller,
with respect to the Business Employees, is not a party to, bound by or subject to (and no assets or properties of Seller related
to the Business are bound by or subject to) any labor agreement or collective bargaining agreement. No Business Employee is represented
by any labor union, labor organization, trade union or works council with respect to their employment by Seller.

 

(d)          Listed
on Schedule 4.13(d) of the Seller Disclosure Schedules is each Person who, as of the Agreement Date, primarily provides
service to Seller with respect to the Business (the “Business Employees”), together with their title, exempt/non-exempt
status under the Fair Labor Standards Act, current salary or hourly rate, hire date, and bonus rate.

 

(e)          Listed
on Schedule 4.13(e) of the Seller Disclosure Schedules is each individual Person performing services with respect to the
Business as an independent contractor or leased employee, which independent contractor or leased employee is properly classified.

 

    	 	21	 

     

    

 

4.14       Employee
Benefits.

 

(a)          Schedule
4.14(a) of the Seller Disclosure Schedules sets forth a list, as of the Agreement Date, of all “employee benefit plans”
as defined by Section 3(3) of ERISA, all material specified fringe plans as defined in Section 6039D of the Code and
all other material employment, bonus, pension, profit sharing, deferred compensation, incentive compensation, stock ownership,
stock purchase, stock appreciation, restricted stock, stock option, “phantom” stock, performance, retirement, thrift,
savings, stock bonus, paid time off, perquisite, fringe benefit, vacation, severance, change-in-control, disability, accident,
death benefit, hospitalization, health, medical, vision, insurance, welfare benefit or other plan, program, policy, practice, arrangement
or agreement which is sponsored by Seller or otherwise provided to or made available for the benefit of any of the Business Employees
(whether or not subject to the Employee Retirement Income Security Act of 1974) (the “Plans”). For each Plan,
Seller has made available to Buyer correct and complete copies of the following documents, to the extent applicable:

 

(i)          the
most recent determination letter (or opinion letter) received by Seller from the IRS;

 

(ii)         all
pending applications for rulings, determinations, opinions, no action letters and similar or related matters filed with any Authority;

 

(iii)        the
annual report/return (Form Series 5500) with financial statements and attachments for each of the three (3) most recent plan years
for which such reports/returns have been filed;

 

(iv)        current
plan documents, summary plan descriptions, trust agreements, insurance contracts, service agreements and all related Contracts
and other similar or related documents (including any employee summaries and material employee communications); and

 

(v)         all
closing letters, audit finding letters, revenue agent findings and other similar or related documents.

 

(b)          Each
Plan that is intended to be qualified under Section 401(a) of the Code has received an opinion or advisory letter that is
qualified from the IRS. No such determination has been revoked and no such revocation has been threatened in writing to Seller
(or to the Knowledge of Seller, otherwise threatened), and to the Knowledge of Seller, there are no facts or circumstances that
would constitute a reasonable basis for any such revocation. Nothing has occurred since the date of such favorable determination
which would adversely affect the status of such Plan. No Plan requires the approval of, nor is regulated by, any Authority outside
of the United States.

 

(c)          No
Plan and no pension plan maintained by or to which Seller, Parent or any ERISA Affiliate may have an obligation is subject to Title IV
of ERISA or Section 412 of the Code (pension plans). Neither Seller nor Parent nor any ERISA Affiliate has merged with or acquired
substantially all of the assets of (or is otherwise related to within the meaning of Section 302(d)(3) or 4001(b) of ERISA) any
Person that was or may become subject to a Liability under Title IV of ERISA.

 

(d)          Neither
Seller nor Parent nor any ERISA Affiliate has ever contributed to a “multiemployer plan” (as defined in Sections 3(37)
or 4001(a)(3) of ERISA).

 

    	 	22	 

     

    

 

(e)          With
respect to each Plan, except as set forth in Schedule 4.14(e) of the Seller Disclosure Schedules:

 

(i)          (1)
all contributions, premiums, fees or charges due and owing to or in respect of the Plan have been paid in accordance with the terms
of the Plan and applicable Law; (2) all such payments accrued to date as Liabilities which have not been paid have been and
will be properly recorded on Seller’s books; and (3) no Taxes, penalties or fees are owing in connection with the Plan;

 

(ii)         the
Plan has at all times, and no Authority or other Person has given written notice or alleged in writing to Seller (or, to Seller’s
Knowledge has otherwise alleged) that the Plan has not, been operated in material compliance with ERISA, the Code, all other applicable
Laws (including all reporting and disclosure requirements thereunder) and the terms of the Plan;

 

(iii)        To
the Knowledge of Seller, Seller has no Liabilities thereunder other than claims for benefits in accordance with the terms of the
Plan and other contributions, premiums, Taxes, fees and expenses arising in the Ordinary Course of Business in connection with
the Plan; and

 

(iv)        there
are no pending, and Seller received no written notice of any threatened (or, to Seller’s Knowledge, are any other threatened),
Proceedings other than ordinary and usual claims for benefits thereunder.

 

(f)          Seller
can amend or terminate such Plan without material Liability other than ordinary administrative costs of termination.

 

(g)          Seller
has not made or committed to make any material increase in contributions or benefits under any Plan that would become effective
either on or after the Agreement Date.

 

4.15       Intellectual
Property.

 

(a)          Generally.
Schedule 4.15(a) of the Seller Disclosure Schedules sets forth a complete and correct list of (i) all Assigned IP for which
registration has issued or has been applied for and is pending (“Registered IP”) that is owned by Seller; and
(ii) all telephone and facsimile numbers and email addresses owned by, allocated or issued to Seller or used in connection with
the Business. To the Knowledge of Seller, all Registered IP is valid and enforceable. The Assigned IP and the Intellectual Property
licensed to Seller pursuant to Contracts disclosed on Schedule 4.19(a) of the Seller Disclosure Schedules collectively constitutes
all of the Intellectual Property used in or necessary to conduct the Business as it is currently conducted.

 

(b)          Ownership;
Infringement. Except as set forth on Schedule 4.15(b) of the Seller Disclosure Schedules, (i) Seller, solely and
exclusively, owns and possesses all right, title and interest in and to all Assigned IP, free and clear of all Encumbrances (other
than Permitted Encumbrances), (ii) all of Seller’s rights in and to the Assigned IP are freely assignable by Seller,
(iii) no written claim by any Third Party contesting the validity, enforceability, use or ownership of any Assigned IP is
currently outstanding or, to the Knowledge of Seller, is or has been threatened in writing, (iv) no written claim challenging the
validity or enforceability of any Assigned IP is pending, or, to the Knowledge of Seller, has been threatened in writing, (v) Seller
has not received any written notice of any infringement, violation, dilution or misappropriation by, or any conflict with, any
Third Party with respect to any Assigned IP, including any demand or request that Seller license rights from a Third Party, and
(vi) to the Knowledge of Seller, the conduct of the Business as currently conducted and the Assigned IP does not infringe, violate
or misappropriate the Intellectual Property of any Third Party.

 

    	 	23	 

     

    

 

(c)          Restrictions.
There are no settlements, injunctions, forbearances to sue, consents, coexistence agreements, judgments, or orders or similar obligations
to which Seller is a party or is otherwise bound, which restrict in any respect the rights of Seller to use any Assigned IP. Seller
has not licensed or sublicensed its rights in any Assigned IP to Third Parties other than in the Ordinary Course of Business and
no royalties, honoraria or other fees are payable by Seller for the use of, or right to use, any Assigned IP, except pursuant to
one or more of the Contracts disclosed on Schedule 4.19(a) of the Seller Disclosure Schedules or Contracts for “shrinkwrap,”
“clickwrap,” or other similar “off-the-shelf” software licensed to Seller.

 

(d)          Protective
Measures. Seller has taken reasonable measures to protect the Assigned IP, including the confidentiality of all Confidential
Information included in the Assigned IP. To the Knowledge of Seller, no Confidential Information has been disclosed by Seller or
authorized to be disclosed by Seller to any Third Party other than pursuant to a written non-disclosure agreement or legal, fiduciary
or contractual confidentiality obligations, and, to the Knowledge of Seller, no Third Party that is a party to any non-disclosure
agreement with Seller is in material breach or default thereof. To the Knowledge of Seller, no Confidential Information of Seller
has been improperly disclosed or misappropriated by another Person.

 

(e)          Personal
Information. At all times from December 1, 2015 to the Agreement Date, Seller has (i) complied with all applicable Laws regarding
the collection, use, storage, transfer, or disposal of Personal Information, (ii) had a privacy policy regarding the collection,
use, and disclosure of Personal Information in Seller’s possession, custody, or control, or otherwise held or processed on
its behalf, and (iii) is and has been in compliance with such privacy policy. True and complete copies of all such privacy policies
have been provided to Buyer. Seller has not received any complaint or notice of any investigation or inquiry relating to Seller’s
privacy practices related to the Business, or the loss of or unauthorized disclosure or transfer of Personal Information by Seller
related to the Business during the period from December 1, 2015 to the Agreement Date. The transfer of Personal Information in
connection with the consummation of the transactions contemplated by this Agreement will not violate any applicable Law; the privacy
policy of Seller as it currently exists or as it existed at any time during which any Personal Information was collected or obtained
by or on behalf of Seller; or other privacy and data security requirements imposed on Seller under any Contracts binding on Seller.
Upon the Closing, Buyer will continue to have the right to use such Personal Information on identical terms and conditions as Seller
enjoyed immediately prior to the Closing.

 

    	 	24	 

     

    

 

(f)          Security
Measures. Seller has established and implemented necessary and appropriate policies, programs, and procedures to protect the
confidentiality, integrity, and security of Personal Information and other confidential or proprietary information or data in its
possession, custody, or control against unauthorized access, use, modification, disclosure, or other misuse. To the Knowledge of
Seller, during the period from December 1, 2015 to the Agreement Date, Seller has not experienced any loss, damage, or unauthorized
access, disclosure, use, or breach of security of any Personal Information or other confidential or proprietary information or
data in the possession, custody, or control of Seller. To the Knowledge of Seller, there has occurred no breaches, hacking or usurpation
of any Personal Information held by the Business. Neither Seller nor the Business has during the two (2) years prior to the Agreement
Date conducted any text, facsimile or other solicitations in violation of the Telephone Consumer Protection Act or any related
Laws.

 

(g)          Social
Media. Schedule 4.15(g) of the Seller Disclosure Schedules contains a complete and correct list of all social media
accounts used by Seller in the conduct of the Business. Seller has complied with all terms of use, terms of service, and other
agreements and all associated policies and guidelines relating to its use of any social media platforms, sites, or services in
the conduct of the Business.

 

4.16         Systems.

 

(a)          Schedule
4.16(a) of the Seller Disclosure Schedules sets forth a list of all of the computer, telephone and point-of-sale (P.O.S.) systems,
including the software, hardware, networks and interfaces (collectively, “Systems”), used by Seller in the conduct
of the Business (i) are in sufficiently good working condition to perform in all material respects all information technology
operations of the Business as currently conducted, (ii) are in all material respects sufficient for the current needs of the
Business, including as to capacity, scalability, and ability to process current and reasonably anticipated peak data volumes in
a timely manner and (iii) include sufficient licensed capacity (whether in terms of authorized sites, units, users, seats,
or otherwise) for all software to conduct the Business as it is currently conducted. During the period from December 1, 2015 to
the Agreement Date, to the Knowledge of Seller, there has been no unauthorized access, use, intrusion, or breach of security, or
failure, breakdown, performance reduction or other adverse event affecting any Systems used in the Business, that has caused any:
(A) substantial disruption of or interruption in or to the use of such Systems or the conduct of the Business; (B) material loss
or destruction of or damage or harm to the Business or its personnel, property, or other assets; or (C) material liability
of any kind to the Business. Seller has taken commercially reasonable actions, consistent with applicable industry practices, to
protect the integrity and security of the Systems used in the Business and the data and other information stored or processed thereon.

 

(b)          Except
as set forth on the attached Schedule 4.16(b) of the Seller Disclosure Schedules, all Systems used in the Business are owned
and operated by and are under the control of Seller and are not wholly or partly dependent on any facilities that are not under
the ownership, operation or control of Seller.

 

    	 	25	 

     

    

 

(c)          Seller
(i) maintains commercially reasonable backup and data recovery, disaster recovery, and business continuity plans, procedures, and
facilities; (ii) acts in all material respects compliance therewith; and (iii) tests such plans and procedures on a regular basis,
and such plans and procedures have been proven effective upon such testing.

 

4.17       Immigration
Matters. Except as set forth on Schedule 4.17 of the Seller Disclosure Schedules:

 

(a)          Seller
has properly utilized Form I-9 to verify the identity and work authorization status of each of its employees in compliance with
the Immigration and Nationality Act, as amended, the Immigration Reform and Control Act of 1986, as amended, and related promulgating
regulations.

 

(b)          No
employee of Seller presented any temporary work authorization document at the time of hire that is presently or at any future date
will be subject to I-9 re-verification.

 

(c)          No
employee of Seller is employed under an H-1B, L-1A or L-1B visa, or any other employer-petitioned non-immigrant U.S. work authorization.

 

(d)          Seller
is not petitioning for employment-based lawful permanent residence status on behalf of any employee of Seller and Seller has not
filed any Application for Alien Employment Certification (ETA Form 750), Application for Permanent Employment Certification (ETA
Form 9089), or any Form I-140 (Immigrant Petition for Alien Workers) that remains pending

 

(e)          Parent
nor Seller has received any correspondence from any Person or Authority during the period from December 1, 2015 to the Agreement
Date questioning the validity of the social security number of any employee of Seller.

 

4.18       Insurance.
Schedule 4.18 of the Seller Disclosure Schedules sets forth a list of all insurance policies currently carried by Seller
(and any former occurrence based policies for which Seller continues to retain coverage for prior activities) and related to the
operation of the Business. With respect to each such policy, (i) it is in full force and effect; (ii) all premiums thereunder
covering all periods through and including the Agreement Date have been paid; and (iii) no written notice of cancellation
or termination has been received by Seller.

 

4.19       Contracts.

 

(a)          Schedule
4.19(a) of the Seller Disclosure Schedules lists, as of the Agreement Date, and Seller has made available to Buyer correct
and complete copies of, the following Contracts to which Seller is a party:

 

(i)          each
Contract or group of related Contracts with the same Person for the performance of services or the delivery of any goods, equipment
or materials by Seller (other than the Contracts or group of related Contracts with the same Person entered into by Seller in the
Ordinary Course of Business involving aggregate payments to or by Seller of less than $25,000 during any 12-month period);

 

    	 	26	 

     

    

 

(ii)         each
collective bargaining agreement;

 

(iii)        each
Contract which provides for the payment of any severance benefits, retention bonuses or sale bonuses to any Business Employee,
other than bonuses paid in the Ordinary Course of Business;

 

(iv)        agreements
between Seller, on the one hand, and Parent or any other of its Affiliates, on the other;

 

(v)         each
Contract or group of related Contracts with the same Person relating to the lease of tangible assets, personal property or equipment,
specifying in each case whether Seller is the lessee or lessor (other than Contracts or group of related Contracts with the same
Person in the Ordinary Course of Business involving aggregate payments to or by Seller of less than $25,000 during any 12-month
period);

 

(vi)        each
Contract relating to the license or use of Intellectual Property, specifying in each case whether the license is to or from Seller,
other than licenses, terms of service agreements and similar Contracts for “shrinkwrap,” “clickwrap,” or
other similar “off-the-shelf” software that is available on a retail basis;

 

(vii)       each
employment or consulting Contract (other than offer letters on Seller’s standard form) which on its terms provides for annual
compensation in excess of $100,000;

 

(viii)      each
Contract with an Authority;

 

(ix)         each
Contract involving capital expenditures in excess of $5,000 or the sale of any capital asset;

 

(x)          each
Contract relating to the borrowing of money or to mortgaging, pledging or otherwise placing an Encumbrance on any of the Purchased
Assets or the Business that will survive the Closing;

 

(xi)         each
Contract relating to the lending of money (other than advances of expenses to employees in the Ordinary Course of Business, and
player markers issued in the Ordinary Course of Business and reflected in the Business’s books and records) or to taking
any mortgage, pledge or otherwise placing an Encumbrance on any assets of any Person;

 

(xii)        each
Contract relating to a partnership, joint venture or joint development, marketing, sales or similar arrangement;

 

    	 	27	 

     

    

 

(xiii)       each
Contract containing exclusivity, noncompetition, nonsolicitation or other provisions that prohibit, restrict or limit to any extent
Seller’s right to (1) freely engage in any business anywhere in the world, or (2) solicit or engage the services of any Person;

 

(xiv)      each
Contract that grants to any Person the right to occupy any portion of the Facilities; and

 

(xv)       each
Assigned Contract which requires Consent to an assignment of the Contract or to a sale of all or substantially all of Seller’s
or the Business’s assets or operations.

 

(b)          Except
as set forth in Schedule 4.19(b) of the Seller Disclosure Schedules, (i) each of the Assigned Contracts is valid and
binding on Seller and, to the Knowledge of Seller, each other party thereto, and is in full force and effect; (ii) no Person
has given written notice or alleged in writing to Seller (or to the Knowledge of Seller, otherwise alleged) that Seller or any
other party to any of the Assigned Contracts is in Breach thereof; (iii) to the Knowledge of Seller no event has occurred,
and no circumstance exists that was caused by Seller or Parent, and to the Knowledge of Seller no other circumstance exists, that
has resulted or would reasonably be expected to result in a Breach of any of the Assigned Contracts by Seller or by any other party
thereto; and (iv) no party to any of the Assigned Contracts has in writing terminated or purported to terminate or requested
any material modification or waiver thereof. There are no Contracts other than the Assigned Contracts and the Leases which are
necessary for the operation or for the continued operation by Buyer of the Business as currently conducted in the Ordinary Course
of Business.

 

4.20       Environmental
Matters.

 

Except as set forth on
Schedule 4.20 of the Seller Disclosure Schedules:

 

(a)          Regulatory
Compliance. Since December 1, 2015, Seller has complied with and is in material compliance with all Environmental and Safety
Requirements.

 

(b)          Permits.
Since December 1, 2015, Seller has complied with and is in compliance with all Permits that are required to be held by Seller pursuant
to Environmental and Safety Requirements for the occupation of the Facilities and the operation of the Business (collectively,
the “Environmental Permits”) and, to the extent required prior to the Closing Date, timely and complete applications
have been or will be made for renewal, extension, or reissuance of all such Environmental Permits, and Seller has not received
information which would lead it to believe that any Environmental Permit may not be renewed, extended or reissued in due course
and as requested without the imposition of material cost or penalty following the Closing. Schedule 4.20(b) of the Seller Disclosure
Schedules contains a list of all such Environmental Permits.

 

    	 	28	 

     

    

 

(c)          Notices.
Seller has not received prior to the Agreement Date any written notice, claim, complaint, citation, or report regarding any actual
or alleged violation of Environmental and Safety Requirements which have not been cured, or any Environmental Lien, Environmental
Permit, Liabilities or potential Liabilities (whether accrued, absolute, contingent, unliquidated or otherwise), including any
investigatory, remedial or corrective obligations and any request for information with respect to any investigation or clean-up
of Hazardous Substances, arising under Environmental and Safety Requirements relating to Seller, the Business or the Purchased
Assets, nor is there any Proceeding pending or, to the Knowledge of Seller, threatened in writing against or affecting Seller,
the Business or the Purchased Assets at law or in equity before a court or administrative agency relating to a violation of any
Environmental and Safety Requirement.

 

(d)          Facilities.
To the Knowledge of Seller, none of the following exists or has existed at the Facilities: (i) underground storage tanks, (ii)
asbestos or asbestos-containing materials, (iii) materials or equipment containing polychlorinated biphenyls, or (iv) landfills,
surface impoundments, or disposal areas, except as disclosed in the Phase I environmental report set forth on Schedule 4.20
of the Seller Disclosure Schedules.

 

(e)          Release
of Substances. Solely as it relates to the Business and the Purchased Assets, Seller has not treated, stored, disposed of,
arranged for or permitted the disposal of, transported, handled, or released any Hazardous Substance, or owned or operated any
property or facility (and no such property or facility is contaminated by any Hazardous Substance) in a manner that has given rise
to or would reasonably be expected to give rise to any Liabilities, including any Liability for response costs, corrective action
costs, personal injury, property damage, natural resource damages or attorney fees, pursuant to any Environmental and Safety Requirement.

 

(f)          Liability
for Others. Seller has not, either expressly or by operation of Law, assumed or undertaken any Liability or corrective or remedial
obligation of any other Person relating to Environmental and Safety Requirements.

 

(g)          Environmental
Liens. To Seller’s Knowledge, no Environmental Lien has attached to any of the Facilities.

 

(h)          Environmental
Reports. Seller has provided to Buyer true and correct copies of all environmental reports, audits, assessments, and investigations,
and all other material environmental documents prepared since December 1, 2015 that are in Seller’s or Parent’s possession
or control, relating to the Purchased Assets or the Facilities or any other real property owned or used by Seller or Seller’s
predecessor in connection with the Business.

 

4.21       Suppliers.
Schedule 4.21 of the Seller Disclosure Schedules sets forth a list of the top fifteen (by volume in U.S. dollars) suppliers
during the twelve (12)-month period preceding the Reference Balance Sheet Date that sold goods or services to Seller in connection
with the Business, including the respective dollar volumes of purchase with each such supplier (each, a “Top Supplier”)
during such twelve-month (12)-month period. As of the Agreement Date, no Top Supplier has notified Seller or Parent in writing
of its intention to terminate or materially alter (in a manner adverse to Seller) any terms of its relationship with Seller.

 

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4.22       Sufficiency
of Purchased Assets. Except as set forth on Schedule 4.22 of the Seller Disclosure Schedules, other than the Purchased
Assets, there are no assets, properties and rights of Seller or Parent that are used in or are related to the operation of the
Business or that are reasonably required for the continued operation of the Business by Buyer immediately following the Closing
in substantially the same manner as conducted by Seller during the periods covered by the Financial Statements and from and after
such periods through the Closing, and the Purchased Assets are being transferred to Buyer free and clear of all Encumbrances, except
for Permitted Encumbrances.

 

4.23       Brokers.
Except for Rossoff & Company, LLC, whose fees and expenses will be paid by Seller and/or Parent, none of Parent, Seller, nor
any of their respective directors, officers, employees, consultants or other agents or representatives, has retained any broker,
finder or financial advisor, or incurred any Liability for any brokerage fee or commission, finder’s fee or financial advisory
fee, in connection with the transactions contemplated hereby. In no event will Buyer nor any the Purchased Assets be subject to
any Liability or Encumbrance relating to any brokerage fee or commission, finder’s fee or financial advisory fee incurred
by or on behalf of Seller or Parent in connection with the transactions contemplated hereby.

 

4.24       No
other Representations and Warranties; As-Is, Where-Is.

 

(a)          Except
for the representations and warranties contained in this Agreement and the Ancillary Documents, neither Seller, Parent nor any
other Person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of Seller
or Parent, including any representation or warranty as to the accuracy or completeness of any information regarding the Business
and the Purchased Assets furnished or made available to Buyer and its Representatives (including any information, documents or
material made available to Buyer) or any representation or warranty as to projections, estimates or budgets of future revenues,
results of operations, cash flows, financial condition, profitability or success of the Business.

 

(b)          EXCEPT
AS SET FORTH EXPRESSLY IN THIS AGREEMENT, OR ANY ANCILLARY DOCUMENT SELLER AND PARENT DISCLAIM ANY EXPRESS OR IMPLIED WARRANTY
RELATING TO ANY PURCHASED ASSET (TANGIBLE, INTANGIBLE OR MIXED), INCLUDING IMPLIED WARRANTIES OF FITNESS, NONINFRINGEMENT, MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE.

 

Article 5

REPRESENTATIONS
AND WARRANTIES OF BUYER

 

Buyer represents and warrants
to Seller and Parent as follows:

 

5.1         Organization;
Standing; Corporate Power. Buyer is a limited liability company duly organized, validly existing and in good standing under
the laws of the State of Delaware and has all requisite limited liability company power and authority to conduct its business and
affairs as currently being conducted and to own, lease and operate its properties and assets. Buyer is duly qualified or licensed
to do business as a foreign entity in good standing in each jurisdiction where the nature of its business or the ownership, leasing
or operation of its assets requires such licensing or qualification, except where the failure to be so qualified or licensed would
not reasonably be expected to have a material adverse effect on Buyer’s ability to consummate the transactions contemplated
by this Agreement and the Ancillary Documents to which it is or will be a party or to perform its obligations hereunder or thereunder.

 

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5.2         Authority;
Approvals. Buyer has all necessary limited liability company power and authority to execute and deliver this Agreement and
the Ancillary Documents to which Buyer is or will be a party, and to complete the transactions contemplated by this Agreement.
Buyer has taken all action required by Law, Buyer’s Governing Documents and otherwise to authorize Buyer’s execution
and delivery of this Agreement and the Ancillary Documents to which Buyer is or will be a party and the performance of Buyer’s
obligations hereunder and thereunder. No other limited liability company proceeding or action on the part of Buyer is necessary
to approve and authorize Buyer’s execution and delivery of this Agreement or any of the Ancillary Documents to which Buyer
is or will be a party or the performance of its obligations hereunder or thereunder. Buyer has duly and validly executed and delivered
this Agreement, and the Ancillary Documents to be executed and delivered by Buyer will at the Closing be duly executed and delivered
by Buyer. Assuming the due authorization, execution and delivery of this Agreement by Parent and Seller, this Agreement constitutes,
and at the Closing each Ancillary Document to be executed and delivered by Buyer, assuming the due authorization, execution and
delivery by Seller and/or Parent, as applicable, of each such Ancillary Document to which Seller or Parent is or will be a party,
will constitute, the legal and valid binding obligation of Buyer enforceable against Buyer in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws relating to creditors’ rights generally
and to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

 

5.3         Absence
of Conflicts. Neither the execution, delivery nor performance of this Agreement or any Ancillary Document to which Buyer is
or will be a party, nor the consummation by Buyer of the transactions contemplated hereby or thereby does or will: (a) conflict
with or result in any breach of any of the provisions of, (b) constitute a default under, (c) result in a violation of,
(d) give any Third Party the right to terminate or to accelerate any obligation under or (e) require any authorization,
consent, approval, exemption or other action by or notice to or filing with any Authority or any other Person, except for such
authorizations, consents, approvals, exemptions or other actions by or notices to or filings with any Authority required under
applicable Gaming Laws or Liquor Laws, in each case under (i) the provisions of the certificate of formation or limited liability
company agreement or other Governing Documents of Buyer, (ii) any indenture, license, mortgage, loan agreement or other agreement
to which Buyer is bound or by which its assets are affected, or (iii) subject to the authorizations, consents, approvals, exemptions
or other actions by or notices to or filings with any Authority required under applicable Gaming Laws or Liquor Laws, any Law to
which Buyer is subject, except, in the case of clauses (ii) and (iii) above, as would not reasonably be expected to have, individually
or in the aggregate, a material adverse effect on Buyer’s ability to consummate the transactions contemplated by this Agreement
and the Ancillary Document to which it is or will be a party or to perform its obligations hereunder or thereunder.

 

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5.4         Proceedings.
As of the Agreement Date, there is no Proceeding pending or, to the Knowledge of Buyer, threatened in writing, against Buyer or
any of its Affiliates that would, if adversely determined, reasonably be expected to have a material adverse effect on Buyer’s
ability to consummate the transactions contemplated by this Agreement and the Ancillary Documents to which it is or will be a party,
or to perform its obligations hereunder or thereunder.

 

5.5         Licensability
of Principals. Neither Buyer nor any of its Representatives that are mandatorily required to be included in the process of
determining the suitability of Buyer for any Governmental Approval in connection with the Transaction contemplated by this Agreement,
or, to Buyer’s Knowledge, any holders of Buyer’s membership interests or other equity interests who will be mandatorily
required to be licensed or found suitable in connection with the Transaction contemplated by this Agreement under applicable Gaming
Laws (the foregoing Persons collectively, the “Licensing Affiliates”) has ever abandoned or withdrawn (in each
case in response to a communication from a Gaming Authority regarding a likely or impending denial, suspension or revocation) or
has ever been denied, or had revoked, terminated or suspended, or had adversely and materially modified or limited, any approval,
consent, license, permit, registration, declaration, order, finding of suitability, franchise, waiver, exemption, variance, or
other authorization required under any Gaming Laws or Liquor Laws. Buyer and each of its Licensed Affiliates which is licensed
or holds any approval, consent, license, permit, registration, declaration, order, finding of suitability, franchise, waiver, exemption,
variance, or other authorization required under any Gaming Laws or Liquor Laws (collectively, the “Licensed Parties”)
are in good standing in each of the jurisdictions in which Buyer or such Licensed Affiliates owns or operates gaming facilities.
Following consultation with Buyer’s legal and regulatory advisors, to Buyer’s Knowledge, there are no facts, which
if known to any Gaming Authorities, would (a) be reasonably likely to result in the delayed issuance of required Governmental Approvals
beyond the Outside Date, or the denial, revocation, limitation or suspension, of a gaming license or liquor license necessary for
the consummation of this Agreement and the transactions contemplated hereby, (b) result in a negative outcome to any finding of
suitability proceedings currently pending, or under the suitability proceedings of any of the Licensed Parties necessary for the
consummation of this Agreement and the transactions contemplated hereby that would materially restrain, prevent or delay the consummation
of the Transaction contemplated by this Agreement, including the imposition of any negative condition being placed on any finding
of suitability that would materially restrain, prevent or delay the consummation of the Transaction contemplated by this Agreement,
or (c) would otherwise unreasonably delay approval of the transactions contemplated by this Agreement.

 

5.6         Brokers.
Neither Buyer nor any of its managers, officers, employees, consultants or other agents or representatives has employed any broker,
finder or financial advisor, or incurred any Liability for any brokerage fee or commission, finder’s fee or financial advisory
fee, in connection with the transactions contemplated hereby. In no event will Parent or Seller be subject to any Liability relating
to any brokerage fee or commission, finder’s fee or financial advisory fee incurred by or on behalf of Buyer in connection
with the transactions contemplated hereby.

 

5.7         Solvency.
Upon consummation of the transactions contemplated hereby, Buyer will not (a) be insolvent or left with unreasonably small
capital, (b) have incurred debts beyond its ability to pay such debts as they mature or (c) have Liabilities in excess
of the reasonable market value of its assets.

 

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5.8         No
Financing Conditions. The Closing is not subject to any financing conditions.

 

5.9         Acknowledgment
of Buyer. Buyer has such knowledge and experience in financial and business matters that it is capable of evaluating the merits
and risks of purchasing the Purchased Assets. Buyer confirms that Seller and Parent have made available to Buyer the opportunity
to ask questions of the management employees of Seller and Parent and to acquire such additional information about the Business
and the Purchased Assets as Buyer has requested and all such information has been received. Buyer acknowledges and agrees that
it has conducted its own independent investigation, review, and analysis of the Business and the Purchased Assets, and acknowledges
that it has been provided adequate access to the personnel, properties, assets, premises, books and records, and other documents
and data of Seller and Parent for such purpose. Buyer further acknowledges and agrees that: (a) in making its decision to enter
into this Agreement and the Ancillary Documents to which Buyer is or will be a party, and to consummate the transactions contemplated
hereby and thereby, Buyer has relied solely upon its own investigation and analysis and the express representations and warranties
of Seller and Parent set forth in Article 4, and (b) neither Seller nor Parent nor any other Person has made any representation
or warranty as to Seller, Parent, the Business, the Purchased Assets, the Assumed Liabilities, this Agreement, the Ancillary Documents
or the transactions contemplated hereby and thereby, except as expressly set forth in Article 4.

 

Article 6

COVENANTS
AND AGREEMENTS

 

6.1         Conduct
of Business.

 

(a)          Except
as expressly provided in or contemplated by this Agreement, as set forth in Schedule 6.1 of the Seller Disclosure Schedules,
or as required by Law, or to the extent that Buyer otherwise consents in writing (not to be unreasonably withheld, delayed or conditioned),
from the Agreement Date until the earlier of the Closing or the termination of this Agreement, Seller will, and Parent will cause
Seller to, operate the Business in the Ordinary Course of Business and in compliance with all applicable Laws and use all commercially
reasonable efforts to (x) preserve intact its business organization and the Business, (y) keep available the services
of its officers, employees and consultants, and (z) preserve its relationships with customers, suppliers, licensors, licensees,
distributors, Authorities, creditors and others with whom it has business dealings; provided, however, that no action
taken by Seller with respect to matters specifically addressed by Section 6.1(b) shall be deemed a breach of this Section
6.1(a) unless such action would constitute a breach of Section 6.1(b).

 

(b)          In
addition, and without limiting the generality of the foregoing, except as expressly provided in or contemplated by this Agreement,
as set forth in Schedule 6.1 of the Seller Disclosure Schedules, or as required by Law, or to the extent that Buyer otherwise
consents in writing (not to be unreasonably withheld, delayed or conditioned), from the Agreement Date until the earlier of the
Closing or the termination of this Agreement, Seller will not, and Parent will cause Seller to not, in connection with the Business:

 

    	 	33	 

     

    

 

(i)          sell,
lease, sublease, license, transfer, mortgage, pledge or otherwise dispose of, or create any Encumbrance upon, any material properties
or assets of Seller, other than (1) sales, leases, subleases, licenses, transfers, mortgages, pledges or other dispositions or
Encumbrances of properties or assets under and in accordance with the terms of existing Contracts or in the Ordinary Course of
Business; (2) dispositions of Inventory and dispositions of surplus or obsolete properties or assets in the Ordinary Course of
Business; and (3) Permitted Encumbrances;

 

(ii)         except
in the Ordinary Course of Business, terminate, cancel, materially amend, materially extend or waive, release or assign any material
right or claim under any Lease or Contract listed or required to be set forth in Schedule 4.7(a) of the Seller Disclosure
Schedules or Schedule 4.19(a) of the Seller Disclosure Schedules or enter into, terminate, cancel, materially amend,
materially extend or waive, release or assign any material right or claim under any Lease or Contract that, if entered into prior
to the Agreement Date, would have to be listed in Schedule 4.7(a) of the Seller Disclosure Schedules or Schedule 4.19(a)
of the Seller Disclosure Schedules;

 

(iii)        make
any material change in management personnel of the Business;

 

(iv)        except
as required by Law or GAAP, make any change in any method of accounting or tax practice that would have the effect of increasing
the Tax Liability or reducing any Tax asset of Buyer with respect to the Business or the Purchased Assets in any post-Closing Tax
period;

 

(v)         except
in the Ordinary Course of Business, (1) change the hold percentages of any slot machines, or (2) change the quantity or manner
of utilization of free play, point multipliers, vouchers, comps or other promotional items;

 

(vi)        issue
any vouchers or comps not otherwise constituting Players Club Liabilities;

 

(vii)       except
in the Ordinary Course of Business, add or remove any gaming tables;

 

(viii)      amend
Seller’s Governing Documents in any manner that adversely affects its ability to perform its obligations and to consummate
the transactions hereunder;

 

(ix)         except
as required by Law, amend any Plan;

 

    	 	34	 

     

    

 

(x)          grant
any raises, bonuses or additional benefits to any Business Employee except in the Ordinary Course of Business;

 

(xi)         transfer,
assign, terminate, cancel, abandon or modify in any material respect any Permits required to own and operate the Business in all
material respects in the manner in which it is currently conducted, or fail to use commercially reasonable efforts to maintain
any such Permits as currently in effect;

 

(xii)        except
as required by Law, decline or fail to use all commercially reasonable efforts to maintain all insurance policies as currently
in effect (or comparable replacement policies to the extent available for a similar cost) other than immaterial variations in such
insurance coverage, or to prevent the lapse of any such policies;

 

(xiii)       make
any representation or commitment to, or enter into any formal or informal understanding with, any employees or independent contractors
of Seller with respect to compensation, benefits, or terms of employment or engagement to be provided by Buyer or any of Buyer’s
Affiliates or than such terms as may be set forth in this Agreement;

 

(xiv)      transfer
to any Person or allow to lapse or go abandoned any Assigned IP that is used in the Business, enter into any license agreement
with any Person to grant or obtain any rights to any Assigned IP; or commence, discharge or settle any Proceeding relating to any
Assigned IP;

 

(xv)       take
any actions or fail to take any actions that would knowingly cause or result in, or that would reasonably be expected to cause
or result in, any Breach of Seller’s or Parent’s representations and warranties set forth in this Agreement at any
time on or prior to the Closing Date;

 

(xvi)      take
any action or enter into any transaction described in Section 4.6 that if taken before the Agreement Date would be required
to be disclosed in Schedule 4.6 of Seller Disclosure Schedules; or

 

(xvii)     commit
or agree to take, or authorize the taking, of any of the foregoing actions.

 

(c)          At
least thirty (30) days prior to the Closing Date, Seller shall prepare and deliver a notice to each of (a) a licensed alcoholic
beverage wholesaler who currently sells liquor to Seller in connection with the Business, and (b) a licensed alcoholic beverage
wholesaler who has sold liquor to Seller in connection with the Business within the immediately preceding twelve (12) months. Such
notice shall contain the information required by NRS 369.4867.

 

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(d)          Between
the date of this Agreement and the Closing, each of Seller and Parent, on the one hand, and Buyer, on the other hand, will promptly
advise the other in writing, with reasonable detail, if such party obtains or receives Knowledge that an event has occurred or
failed to occur (either before or after the Agreement Date) which, individually or in the aggregate with other events, would reasonably
be expected to result in the failure to satisfy a condition to the Closing or otherwise materially delay the Closing. Notwithstanding
the foregoing, no such notification under this sentence or the preceding sentence will affect the representations, warranties,
covenants or agreements of the parties (or remedies or Liabilities with respect thereto) or the conditions to the obligations of
the parties under this Agreement, unless expressly waived in writing at or prior to Closing.

 

(e)          Nothing
in this Agreement is intended to give Buyer, directly or indirectly, any right to control or direct the Business or operations
of Seller prior to Closing.

 

6.2         No
Solicitation.

 

(a)          Until
the earlier of: (i) the Closing; or (ii) the termination of this Agreement pursuant to Article 11 (the “Exclusivity
Period”), Seller and Parent will not, and will cause their directors, officers, employees, agents, representatives and
Affiliates not to, directly or indirectly, take any of the following actions with any Person other than Buyer: (1) solicit, initiate,
entertain, or knowingly encourage or facilitate, any proposals or offers from, or conduct discussions or engage in negotiations
with any Person relating to any actual or prospective sale, transfer, merger, reorganization or similar transaction involving the
Business, Purchased Assets or membership interests or other equity interests of Seller (other than sales or other dispositions
of properties or assets in the Ordinary Course of Business) that, if completed, would preclude, in whole or in part, the transactions
contemplated by this Agreement (an “Alternative Transaction”); (2) provide written, oral, audio, video
or other form of information with respect to Seller or the Business or Purchased Assets to any Person, other than Buyer (and its
directors, officers, employees, agents, representatives and Affiliates), relating to, or otherwise cooperate with, facilitate or
knowingly encourage any effort with regard to, or attempt by any such Person to pursue, an Alternative Transaction; or (3) enter
into any direct or indirect, written or oral agreement, or complete any transaction, with any Person providing for, relating to
or constituting an Alternative Transaction. During the Exclusivity Period, Seller and Parent will promptly provide Buyer with all
reasonable information regarding any Third Party who submits, attempts to solicit or commences discussions regarding an Alternative
Transaction.

 

(b)          Seller
and Parent will use commercially reasonable efforts to cause all Persons other than Buyer who have been furnished with confidential
information regarding Seller or the Business and assets in connection with the solicitation of, or discussions regarding, an Alternative
Transaction within the twelve (12) months prior to the Agreement Date promptly to return or destroy such information to the extent
that the applicable confidentiality agreements allow Seller to require such return or destruction.

 

6.3         Access
to Business; Continued Due Diligence; Confidentiality.

 

(a)          Subject
to applicable Law, including Gaming Laws, and in such a manner and method so as not to unreasonably interfere with the operations
of the Business or the Purchased Assets, Seller will, upon reasonable prior notice, during the period from the Agreement Date and
continuing until the earlier of the Closing or the termination of this Agreement:

 

    	 	36	 

     

    

 

(i)          afford
to Buyer and its Representatives reasonable access (including for the purpose of coordinating integration activities and transition
planning), during normal business hours to Seller’s employees, the Facilities and to all books, Contracts (subject to applicable
confidentiality restrictions), commitments and records (including Business Information, but excluding income Tax Returns and work
papers relating thereto), and provide copies thereof, at Buyer’s expense, as requested;

 

(ii)         permit
Buyer and its Representatives to make such reasonable inspections and tests of the Facilities as it may reasonably request during
normal business hours; provided that Buyer agrees: (A) to promptly restore the Facilities after making any such inspection
or test to its condition prior to the making of such inspection or test, (ii) not to perform, prior to the Closing, any drilling
or other invasive testing at the Facilities without obtaining the prior written consent of Seller, which consent may be withheld
for any reason, (iii) to coordinate such inspections and tests with Seller and permit Seller’s Representatives to be present
during such inspections and tests, and (iv) to promptly share with Seller the results and/or reports of any such inspections
or tests; provided, however, such inspections and reports shall be provided without representation or warranty of
any kind; and

 

(iii)        cause
Seller’s officers to furnish Buyer and its Representatives with such financial and operating data and other information with
respect to the Business or the Purchased Assets as Buyer may from time to time reasonably request;

 

provided,
however, that (A) nothing in this Agreement, including this Section 6.3 or Sections 1.1(j) or 6.6,
shall require, and neither Seller nor Parent shall have any obligation to (until the Closing), provide Buyer with any information
in the Players Club Database other than the number of players by zip code locations, the amount of daily, weekly and monthly play
and any other related demographic information agreed upon by Buyer and Seller, and (B) Seller may limit such access described in
clauses (i), (ii) and (iii) above to the extent such access (I) could, in the opinion of Seller’s counsel, violate or give
rise to Liability under applicable Laws, including any Gaming Laws, (II) would require Seller or Parent to waive any attorney-client
privilege, or (III) conflicts with any confidentiality obligations to which either Seller or Parent is bound.

 

(b)          All
requests by Buyer and its Representatives for information and access hereunder will be coordinated through Parent or Parent’s
designee. All information acquired by Buyer or any of its Representatives under this Agreement will be subject to the terms and
conditions of the Confidentiality Agreement. No investigation or information provided under this Section 6.3 will affect
any representation or warranty in this Agreement of any party hereto, as qualified by the Seller Disclosure Schedules with respect
to the representations and warranties in Article 4, or any condition to the obligations of the parties hereto.

 

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(c)          Concurrently
with the Closing, Seller shall provide Buyer with all information contained in the Player’s Club Database in electronic form
and in a format that is readable by Buyer, and shall have taken all necessary actions, and received all necessary approvals and
permissions, sufficiently in advance of the Closing to be able to transfer such information to Buyer without violation of the terms
of any privacy policy, participation terms or other obligations of Seller that might apply to the transfer to Buyer of any information
contained in the Player’s Club Database, and Buyer shall cooperate with Seller and shall provide Buyer such information and
assistance as is reasonably necessary to effect this Section 6.3(c).

 

(d)          Nothing
contained in this Agreement to the contrary shall limit or deny Buyer’s right and ability to continue its due diligence investigations,
studies and reviews of the Purchased Assets and the Business from and after the Agreement Date pursuant to the terms and subject
to the conditions of this Agreement.

  

6.4         Reasonable
Efforts; Filings; Notification.

 

(a)          Subject
to the terms and conditions herein, each party shall cooperate with each other and use their commercially reasonable efforts to
(i) as promptly as practicable, take, or cause to be taken, all appropriate action, and do or cause to be done, all things necessary,
proper or advisable under applicable Law or otherwise to consummate and make effective the transactions contemplated by this Agreement,
(ii) obtain from any Authorities any approvals, consents, licenses, permits, registrations, declarations, concessions, orders,
filings, notices, findings of suitability, franchises, entitlements, waivers, exemptions, variances, certificates of occupancy
and other authorizations required (A) to be obtained or made by Seller, Buyer or any of their respective Affiliates, or the respective
Representatives of any of the foregoing, in connection with the authorization, execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby, (B) under any applicable Law (including Gaming Laws) (the approvals described
in the foregoing clauses (ii)(A) and (ii)(B) shall be collectively referred to herein as the “Governmental Approvals”),
and (C) to avoid any Proceedings by any Authority that could adversely impact the authorization, execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby, (iii) make all necessary filings, and thereafter make any
other required submissions with respect to this Agreement and the transactions contemplated hereby, as required under any applicable
Law (including Gaming Laws, which shall include a jointly-prepared detailed change-over memorandum and submit it to the Gaming
Authorities with sufficient time to allow their review and approval prior to the Closing Date, and Liquor Laws (it being agreed
that Seller shall promptly, and in no event longer than three (3) Business Days respond to Buyer with respect to the change-over
memorandum)), (iv) comply with the terms and conditions of all Governmental Approvals, (v) obtain from any third party any approvals,
consents, and other authorizations (other than the Governmental Approvals) as are necessary for consummation of the transactions
contemplated hereby, and (vi) subject to Section 6.3, furnishing to each other such information and assistance as may reasonably
be requested in connection with the foregoing; provided, however, (x) under no condition shall Buyer or its Affiliates
be required to transfer any assets, businesses or interests in connection with the foregoing and (y) Seller and/or Parent shall
be obligated to use commercially reasonable efforts to obtain the consents contemplated by subclause (v) of this Section 6.4(a)
above but shall only be obligated to pay consideration to obtain the consents set forth on Schedule 6.4(a)(v) of Seller Disclosure
Schedules. Buyer and its Representatives and Affiliates shall file as soon as is reasonably practicable and in any event within
thirty (30) calendar days following the Agreement Date, all required initial applications and documents in connection with obtaining
the Gaming Approvals required for the transfer, ownership, operation and management of the Business and the Purchased Assets, and
the assumption of the Assumed Liabilities by Buyer, and the applicable parties hereto and their respective Representatives shall,
as promptly as practicable thereafter, file all required initial applications and documents for the purpose of obtaining all other
Governmental Approvals. Buyer and its Representatives shall act diligently and promptly to pursue such Governmental Approvals in
connection with the making of all filings and submissions required hereby. Buyer shall promptly provide to Seller evidence of the
filing of its application for a gaming license in connection with the transactions contemplated hereby as reasonably requested
by Seller. Buyer shall use commercially reasonable efforts to schedule and attend any hearings or meetings with Authorities to
obtain the Governmental Approvals as promptly as possible. To the extent practicable, and subject to applicable Laws, each party
will consult with the other with regard to the exchange of information relating to Buyer or Seller and Parent, as applicable, and
any of their respective Representatives which appear in any filing made with, or written materials submitted to, any third party
or any Authority in connection with the transactions contemplated by this Agreement. Without limiting the foregoing, Buyer and
Seller shall notify the other promptly of the receipt of material comments or requests from Authorities relating to any Governmental
Approvals, and shall supply the other party with copies of all material correspondence between the notifying party or its or their
Representatives and Authorities with respect to such Governmental Approvals (with any competitively sensitive information being
provided on an external counsel basis only) where the Buyer reasonably believes that there is a reasonable likelihood that the
Governmental Approval will not be obtained or that receipt of the Governmental Approval will be materially delayed. Notwithstanding
anything in this Section 6.4(a) to the contrary, in no event will Seller or Parent be entitled to review (i) confidential
information regarding any individual who is an employee, officer, director, member or manager of Buyer or Buyer’s Affiliates,
or (ii) Buyer’s confidential business records or strategies or marketing strategies for the Business.

 

(b)          Without
limiting Section 6.4(a), each of Buyer and Seller shall use its commercially reasonable efforts to avoid the entry
of, or to have vacated or terminated, any decree, order, or judgment that would restrain, prevent or delay the Closing, on or before
the Outside Date.

 

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(c)          Buyer
shall, subject to any applicable Gaming Laws, be permitted to have a representative of Buyer present to observe any cash counts,
counts of gaming chips and tokens and any other inventories required by applicable Gaming Laws to be taken by Seller as a part
of the Closing, and any such counts and inventories shall be memorialized in a listing prepared and signed jointly by representatives
of Buyer and Seller no later than the Closing.

 

(d)          Buyer
and Seller shall promptly advise each other upon receiving any communication from any Authority whose Governmental Approval is
required for consummation of the transactions governed by this Agreement which causes such party to reasonably believe that there
is a reasonable likelihood that such Governmental Approval from such Authority will not be obtained or that the receipt of any
such Governmental Approval will be materially delayed. Buyer and Seller shall use their commercially reasonable efforts to take,
or cause to be taken, all actions reasonably necessary to defend any Proceedings challenging this Agreement or the consummation
of the transactions governed by this Agreement, and to prevent the entry by any Authority of any decree, injunction or other order
challenging this Agreement or the consummation of the transactions governed by this Agreement, and shall appeal as promptly as
possible any such decree, injunction or other order or seek to have any such decree, injunction or other order vacated or reversed.
From and after the Agreement Date through the Closing, each party shall promptly notify the other party(ies) in writing of any
pending or, to the Knowledge of Buyer or Seller, as appropriate, threatened Proceeding by any Authority or any other Person (i)
challenging or seeking damages in connection with the transactions contemplated by this Agreement, or (ii) seeking to restrain
or prohibit the consummation of the Closing.

 

6.5         Certain
Transactions. Prior to the Closing, subject to the terms and conditions of this Agreement, none of Buyer, Seller or Parent
shall take, or agree to commit to take, (a) any action that would or is reasonably likely to materially delay the receipt of, or
materially impact the ability of a party to obtain, any Governmental Approval necessary for the consummation of the transactions
contemplated by this Agreement, or (b) any action that would or is reasonably likely to cause any Authority to commence or re-open
a Proceeding that could reasonably be expected to challenge or prevent the transactions contemplated by this Agreement or delay
the Closing beyond the Outside Date.

 

6.6         Employees.

 

(a)          Prior
to the Closing Date, Buyer shall make offers of employment, effective as of the Closing Date, to those Business Employees who continue
to be employed by Seller immediately prior to such date and are deemed, in the reasonable judgment of Buyer, necessary to the continued
operation of the Business post-Closing; provided, however, that no less than fifteen (15) days prior to the Closing
the Buyer shall notify the Seller in writing of which Business Employees to whom the Buyer does not intend to make an offer of
employment. Such offers shall be in a form mutually agreed upon with Seller. The Business Employees who accept Buyer’s offers
of employment shall commence employment with Buyer effective as of the Closing Date and are herein collectively referred to as
the “Transferred Employees.”

 

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(b)          Except
as otherwise provided in this Section 6.6, Seller or its Affiliates shall pay, discharge, and be responsible for (i) all
salary or wages, bonuses (including ratable portions of bonuses that would otherwise be paid in full at year-end), commissions,
and other compensation arising out of or relating to the employment of its employees prior to and through the Closing Date; provided,
that if the Seller accrues bonuses for such Business Employees, Buyer shall assume such accrued bonuses as an Assumed Liabilities,
but such amounts shall constitute a current liability for purposes of Working Capital, (ii) any employee benefits arising
under the Plans prior to and through the Closing Date, and (iii) all severance or other Liabilities for any terminated Business
Employees who are not Transferred Employees, whether pursuant to an agreement between Seller and such employees or otherwise. After
the Closing Date, Buyer shall pay, discharge and be responsible for all salary, wages, and benefits arising out of or relating
to the employment of any Transferred Employees by Buyer after the Closing Date.

 

(c)          With
respect to any employee or employee benefit plan, program or arrangement maintained by Buyer or its Affiliates (including any severance
plan), for all eligibility, vesting and benefit accrual purposes (other than benefit accrual under a defined benefit plan), a Transferred
Employee’s service with Seller and its Affiliates prior to Closing shall be treated as service with Buyer; provided,
however, that such service need not be recognized to the extent that such recognition would result in any duplication of
benefits.

 

(d)          In
the event that Seller or its Affiliates terminates a sufficient number of employees (other than transfer of the Transferred Employees
to Buyer hereunder) to effect a “plant closing” or “mass layoff” within the ninety (90) days prior to or
following the Closing Date, Seller and its Affiliates shall comply with the WARN Act and its regulations. Buyer shall make a sufficient
number of employment offers to ensure that the termination by Seller of the Business Employees as of the Closing Date will not
trigger obligations, if any, under the WARN Act, and Buyer shall take no action within ninety (90) days following the Closing Date
with respect to the Transferred Employees that would subject Seller or its Affiliates to the provisions of the WARN Act with respect
to the Transferred Employees.

 

(e)          All
Transferred Employees shall cease to participate in and accrue benefits under all Plans as of the Closing Date and shall commence
participation in certain benefit plans established or maintained by Buyer or its Affiliates.

 

(f)          Seller
shall provide continuation coverage required by Section 4980B of the Code and Sections 601 to 608 of ERISA (“COBRA”)
to all Business Employees and former employees of the Business and their covered beneficiaries who are entitled to COBRA with respect
to “qualifying events” (as defined in Section 4980B of the Code and Title I, Subtitle B, Part 6 of ERISA) which are
incurred on or prior to the Closing Date. Buyer shall comply with the provisions of COBRA with respect to any Transferred Employee
who becomes covered under any Group Health Plan maintained by Buyer after the Closing Date.

 

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(g)          Nothing
in this Section 6.6 shall create any third-party beneficiary right in any Person other than the parties to this Agreement,
including any current or former employee or Transferred Employee, any participant in any Plan or any dependent or beneficiary thereof,
or any right to continued employment with Seller, Buyer or any of its Affiliates. Nothing in this Section 6.6 shall
constitute an amendment to any Plan or any other plan or arrangement covering employees or Transferred Employees. Seller, Buyer
and their respective Affiliates shall each cooperate with each other and shall provide each other such documentation, information
and assistance as is reasonably necessary to effect the provisions of this Section 6.6.

 

6.7         Repairs.
Prior to the Closing:

 

(a)          Seller
shall repair the damaged roof above the kitchen area of the restaurant located at the Owned Real Property to the reasonable satisfaction
of Buyer or the Purchase Price shall be reduced by $100,000; and

 

(b)          Seller
shall install, to the reasonable satisfaction of Buyer, a fire suppression system that complies with the Laws of the City of Henderson
to facilities maintenance shop adjacent to the northwest single trailer loading dock or the Purchase Price shall be reduced by
$25,000.

 

6.8         Delivery
of Financial Statements and Reports; Filings.

 

(a)          After
the Agreement Date until the earlier of the Closing or the termination of this Agreement, promptly as practicable and in any event
no later than thirty (30) days after the end of each month, Seller will deliver to Buyer true and complete copies of the unaudited
balance sheets, the related unaudited statements of income and statement of cash flows, of the Business, as of the end of each
month and the portion of the fiscal year then ended, which financial statements shall be prepared on a basis consistent with the
Financial Statements.

 

(b)          After
the Agreement Date until the earlier of the Closing or the termination of this Agreement, Seller shall deliver to Buyer true and
correct copies of all reports, filings and/or notices delivered to the Gaming Authorities on or before five (5) Business Days after
the date of such delivery.

 

Article 7

OTHER
COVENANTS AND AGREEMENTS

 

7.1         Public
Announcement. The parties agree that the initial press release(s) to be issued with respect to the execution of this Agreement
shall be in a form mutually agreed to by Buyer and Seller. Thereafter, none of Buyer, Seller or Parent, nor any of their respective
Representatives, will issue any press release or other public statement or announcement with respect to this Agreement or the transactions
contemplated hereby without the prior consent of the other party(ies), except as may be required by applicable Law or the rules
of any stock exchange on which their securities (or securities of any of their Affiliates) are listed (in which case the party
required (or whose Representative is required) to make the release, statement or announcement shall, to the extent practicable
under the circumstances, allow the other party(ies) reasonable time to comment on such release or announcement in advance of its
issuance (the first party being under no obligation to accept any such comments)). Notwithstanding the foregoing, the parties acknowledge
and agree that each of the parties and their respective Representatives shall have the right to provide notice to and make any
filings with any Authorities, which are be required under applicable Laws. The foregoing restriction will not apply from and after
the Closing.

 

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7.2         Confidentiality.

 

(a)          For
purposes of this Agreement, the term “Confidential Information” means (i) all information, books and records
of Buyer, including customer, supplier and prospect information, Intellectual Property, sales, marketing, employment, financial
and accounting information, and quality control and regulatory information of Buyer, provided by Buyer or any of its Representatives
to Seller, Parent or any of their Representatives in connection with or as a result of the negotiation, preparation or performance
of this Agreement or the transactions contemplated hereby (collectively, the “Buyer Information”); (ii) all
Assigned IP and all tangible and electronic embodiments of the Assigned IP; and (iii) all Business Information and other books
and records of Seller that constitute Purchased Assets, excluding in each case any such information that (A) at any time is or
becomes available to the general public without Seller’s or Parent’s Breach of this Agreement or any obligation or
duty of confidentiality owed to Buyer, (B) in the case of Buyer Information, was provided to Seller or Parent or any of their Representatives
on a non-confidential basis prior to its disclosure by Buyer to Seller or Parent or any of their respective Representatives, provided
that such information is not known by Seller, Parent or any of their respective Representatives to be subject to a confidentiality
agreement with or other obligation or duty of confidentiality to Buyer or another Person, (C) in the case of Buyer Information,
information that subsequently becomes available to Seller, Parent or any of their respective Representatives on a non-confidential
basis from a source other than Buyer or any of its Representatives, provided that such source is not known by Seller, Parent or
any of their respective Representatives to be subject to a confidentiality agreement with or other obligation or duty of confidentiality
to Buyer or another Person, (D) in the case of Buyer Information, is independently developed by Seller, Parent or any of their
respective Representatives without reference to, or use of, any Confidential Information, or (E) is (1) a Retained Asset, (2) a
Retained Liability or (3) used in connection with the Transition Services Agreement.

 

(b)          Except
as required by applicable Law, including the rules or regulations of a national securities exchange or other exchange on which
Parent’s securities are listed for trading and in its filings with the Securities and Exchange Commission as is required
under applicable federal securities laws, Seller and Parent will, and will cause their respective Representatives to, keep confidential
and protect, and to not disclose, allow access to or use in any way (other than (i) as may be necessary to establish or enforce
the rights, or to perform (or cause to be performed) the obligations, of Seller or Parent, or to defend against any claim by any
Buyer Indemnitee, under this Agreement or any Ancillary Document, (ii) any such information disclosed pursuant to Section 7.4
for the purpose for which such information was requested, (iii) any disclosure on a confidential basis to Seller’s or Parent’s
respective Representatives, and (iv) in connection with Tax or other regulatory filings, Proceedings, and financial reporting requirements),
(A) any Buyer Information during the Exclusivity Period, and (B) from and after the Closing until the six (6) year anniversary
of the Closing Date, any Confidential Information. Seller and Parent acknowledge and agree that the Buyer Information is and will
continue to be and, from and after the Closing, all other Confidential Information related to the Business or the Purchased Assets
will be, the exclusive property of Buyer and its Affiliates.

 

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(c)          The
covenants and undertakings contained in this Section 7.2 relate to matters which may be of a special, unique and extraordinary
character and a violation of any of the terms of this Section 7.2 may cause irreparable injury to Buyer and its Affiliates,
the amount of which may be impossible to estimate or determine and for which adequate compensation may not be available. Therefore,
Buyer and its Affiliates will be entitled to an injunction, restraining order or other equitable relief from a court of competent
jurisdiction restraining any violation or threatened violation of any such terms by Seller, Parent or any of their Representatives.

 

(d)          In
the event that Seller, Parent or any of their Representatives, receives a request to disclose all or any part of the Buyer Information
during the Exclusivity Period, or from and after the Closing, all or any part of the Confidential Information, in connection with
a Proceeding or is otherwise required by applicable Law, including the rules or regulations of a national securities exchange or
other exchange on which Parent’s securities are listed for trading and in its filings with the Securities and Exchange Commission
as is required under applicable federal securities laws, Seller or Parent (as applicable) will, to the extent permitted by Law,
(i) notify Buyer as promptly as practicable under the circumstances of the existence, terms and circumstances surrounding
such request or requirement, and (ii) if disclosure of such information is required, disclose the minimum required and exercise
commercially reasonable efforts to preserve the confidentiality of such information, including, if requested by Buyer, by cooperating
with Buyer, at Buyer’s sole cost and expense, to obtain an appropriate protective order or other assurance that confidential
treatment will be accorded such information by any third party to which disclosure is made. If Seller and Parent comply with the
preceding sentence, Seller and Parent (or such of their respective Representatives who are required to make such disclosure) may
make such disclosure without liability under this Agreement notwithstanding the absence of a protective order or waiver of compliance
hereunder.

 

(e)          From
the Agreement Date and unless and until this Agreement is terminated pursuant to Article 11, unless Buyer otherwise
consents in writing (such consent not to be unreasonably withheld, delayed or conditioned), Seller and Parent will not release
any Person from the confidentiality provisions of any agreement to which Seller or Parent is or becomes a party or under which
it is a beneficiary to the extent related to or otherwise affecting the Business or the Purchased Assets and as part of the Purchased
Assets or Assumed Contracts hereunder will at Closing assign each such agreement to Buyer.

 

7.3         Payment
of Retained Liabilities; Preservation of Corporate Existence. Seller will pay or make adequate provision for the payment in
full of all of the Retained Liabilities, and Parent will cause Seller to comply with the provisions of this Section 7.3.

 

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7.4         Retention
of and Access to Records.

 

(a)          From
and after the Closing Date and for a period five (5) years thereafter, Seller will retain and provide Buyer and its Representatives
with reasonable access to and copies of such portion of the books and records that constitute Retained Assets as contain information
or data reasonably related to the Purchased Assets or the operation of the Business (excluding income Tax books or records and
communications that are protected by attorney-client privilege or the work-product privilege), during normal business hours and
upon reasonable written notice, for any reasonable business purposes specified by Buyer in such notice and prior to destroying
any such books and records prior to the end of such five (5)-year period, Seller will notify Buyer in writing at least thirty (30)
days in advance and then, if requested by Buyer and at Buyer’s expense, provide copies of such books and records prior to
destroying them. From and after such five (5)-year period, Seller shall have no obligation to keep or preserve or to notify Buyer
of the destruction of any such books or records.

 

(b)          From
and after the Closing Date and for a period five (5) years thereafter, Buyer will retain and provide Seller, Parent and their respective
Representatives with reasonable access to and copies of all books and records that constitute Purchased Assets and will make employees
available on a mutually convenient basis, during normal business hours and upon reasonable written notice for any reasonable purpose
of Seller or Parent specified by Seller or Parent, as applicable, in such notice, such as for use in financial reporting, accounting
matters, preparing and filing any Tax Returns, responding to Tax requests, audits, inquiries or other Proceedings, to investigate,
defend or prosecute any claim or Proceeding, or to comply with the provisions and terms of this Agreement or any Ancillary Document
or respond to claims arising hereunder or thereunder. For five (5) years following the Closing Date, prior to destroying any such
books and records, Buyer will notify Seller and Parent in writing at least thirty (30) days prior to such destruction and shall,
if requested by Seller or Parent and at Seller’s or Parent’s expense, provide copies of such books or records prior
to such destruction. From and after such five (5)-year period, Buyer shall have no obligation to keep or preserve or to notify
Seller or Parent of the destruction of any such books or records.

 

7.5         Cooperation
in Litigation. Buyer shall, and shall cause its Affiliates to, reasonably cooperate with Seller and Parent in the prosecution
or defense of any claim or Proceeding arising from or related to the conduct of the Business prior to the Closing and involving
one or more third parties. Seller and Parent shall pay the reasonable out-of-pocket expenses incurred by Buyer and its Affiliates
in providing such cooperation (including reasonable legal fees and disbursements), but shall not be responsible for reimbursing
Buyer or its Affiliates or its and their officers, directors and employees for their time spent in such cooperation.

 

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7.6         Use
of Name. Buyer agrees that (except as expressly set forth in this Section 7.7), after the Closing neither Buyer nor
its Affiliates shall have any rights in and to the mark “Nevada Gold” or “Nevada Gold & Casinos” or
any trademarks, trade names, service marks, trade dress, logos, corporate names, domain names and other source identifiers, emblems,
signs or insignia related thereto or containing or comprising the foregoing, including any mark or term confusingly similar thereto
or derivative thereof (collectively, the “Parent Marks”), and will not at any time after the Closing market,
promote, advertise or offer for sale any products, goods or services utilizing any of the Parent Marks or otherwise hold itself
out as having any affiliation with either Parent or Seller or any of their respective Affiliates. Buyer agrees that if any of the
Purchased Assets, including any promotional materials or printed forms, bear any of the Parent Marks, Buyer shall, prior to distributing,
selling or otherwise making use of such Purchased Assets, either (a) remove, delete or render illegible the Parent Mark(s) as they
may appear on such Purchased Assets or (b) clearly state that Buyer is not affiliated with “Nevada Gold”, Parent, Seller
or any of their respective Affiliates. Notwithstanding the foregoing, for a period of ninety (90) days after the Closing Date,
Buyer may distribute and display marketing, promotional and advertising materials including business cards, stationery, packaging
materials, displays, signs, promotional materials and other similar materials that include one or more of the Parent Marks (collectively,
“Supplies”), provided such Supplies (i) were included within the Inventory as of the Closing, (ii) are
used solely in connection with the promotion, marketing, advertising and sale of the Business’s products of the type sold,
and in a manner consistent with that used, prior to the Closing, and (iii) clearly indicate that Buyer and its Affiliates are not
affiliated with Parent, Seller or any of their respective Affiliates and (y) the inclusion of the Parent Mark(s) in the Supplies
shall not be construed as an endorsement of any of the Business’s products by Parent, Seller or any of their respective Affiliates.
Buyer shall indemnify and hold harmless the Seller Indemnitees against all Losses asserted against or imposed upon them as a consequence
of the use of the Parent Marks by Buyer and its Affiliates following the Closing.

 

7.7         Further
Assurances. Seller, Parent and Buyer agree that, from time to time, from and after the Closing Date, each of them will execute
and deliver such further documents and instruments of conveyance and transfer or assumption and take such further actions as may
be necessary to carry out the purposes and intents of this Agreement and give effect to the transactions contemplated by this Agreement
and the Ancillary Documents; provided, however, in no event shall such additional documents, instruments or actions
taken or otherwise requested hereunder enlarge the obligations or liabilities of any party as set forth in this Agreement. In addition,
Seller will provide Buyer with reasonable physical and electronic access to its premises and computers and will otherwise provide
Buyer with such assistance as Buyer may reasonably request, in order to collect, package and otherwise prepare for delivery to
Buyer all Purchased Assets that are in tangible or electronic form.

 

Article 8

TAX
MATTERS

 

8.1         Cooperation.
Without duplication of their obligations under Section 7.4, Buyer and Seller agree to furnish or cause to be furnished
to each other, upon request, as promptly as practicable, such information relating to the Business or any of the Purchased Assets
(including access to books and records) as is reasonably necessary for the filing of all Tax Returns, the making of any election
related to Taxes, the preparation for or defense of any audit by any Taxing Authority and the prosecution or defense of any claim,
suit or Proceeding relating to any Tax Return relating to the Business or any of the Purchased Assets. Without duplication (but
in expansion) of their obligations under Section 7.4, Buyer and Seller will retain all books and records with respect
to Taxes pertaining to the Business and the Purchased Assets until the expiration of all relevant statutes of limitation (and,
to the extent notified by Buyer and Seller, any extensions thereof).

 

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8.2         Real
and Personal Property Taxes. Real and personal property Taxes and assessments, both general and special, imposed on or relating
to the Purchased Assets for any Taxable Period that begins prior to the end of the gaming day on the Closing Date and ends on or
after the end of the gaming day on the Closing Date (a “Straddle Period”) will be prorated between Seller and
Buyer on a per diem basis, with the Taxes allocated to the portion of the Straddle Period ending before the end of the gaming day
on the Closing Date to be borne by Seller and the Taxes allocated to the portion of the Straddle Period that begins on the end
of the gaming day on the Closing Date to be borne by Buyer. Proration of Taxes that are undetermined as of the Closing Date (i) will
be based on the most recently available Tax rate and valuation, giving effect to applicable exemptions, recently-voted millage,
change in valuation and similar items, whether or not officially certified to the appropriate Taxing Authority as of the Closing
Date and (ii) will use a 365-day year. When the actual amounts become known, such prorations will be recalculated by Buyer
and Seller, and Buyer or Seller, as the case may be, will promptly (but not later than five (5) Business Days after notice of payment
due) make any additional payment or refund so that the correct prorated amount is paid by Buyer and Seller. On or before the Closing,
Seller will pay all delinquent property Taxes or delinquent special assessments not contested by Seller in good faith, which contested
Taxes or assessments will remain Seller’s obligation.

 

8.3         Conveyance
Taxes. Notwithstanding anything to the contrary in this Agreement, Seller shall pay, and be responsible for any sales Tax,
use Tax, conveyance fee Tax, transfer Tax, documentary stamp Tax, value added Tax or similar Taxes and related fees (collectively,
“Conveyance Taxes”) imposed on the sale or transfer of the Purchased Assets, including the Owned Real Property,
pursuant to this Agreement or the entering into of this Agreement. The Seller will prepare and timely file (with the reasonable
cooperation of the Buyer) all Tax Returns with respect to such Conveyance Tax, subject to the Buyer’s right to review for
no less than fifteen (15) Business Days prior to the due date thereof.

 

8.4         Other
Taxes. Seller will prepare and timely file all Tax Returns required to be filed on or after the Closing Date with respect to
Taxes that relate to the Business or the Purchased Assets that are due on or prior to the effective time of Closing, subject to
Buyer’s right to review for no less than five (5) Business Days prior to the due date and filing thereof. Any such Tax Returns
shall be consistent with prior Tax Returns and applicable Law.

 

Article 9

CONDITIONS
TO CLOSING

 

9.1         Conditions
to Buyer’s and Seller’s Obligations. The respective obligation of each of Buyer, Parent and Seller to complete
the Closing is subject to the satisfaction or waiver (to the extent permitted by Law) of the following conditions:

 

(a)          No
Governmental Orders. No Authority of competent jurisdiction shall have initiated any action seeking, or shall have enacted,
issued, promulgated, enforced or entered any order, executive order, stay, decree, resolution, judgment or injunction or statute,
rule or regulation (in each case, whether temporary, preliminary or permanent) to prevent or prohibit the consummation of any of
the transactions contemplated by this Agreement or to make it illegal for either party hereto to perform its obligations hereunder.

 

    	 	46	 

     

    

 

(b)          No
Proceedings. No Proceeding shall have been instituted, and be pending against Buyer, Parent or Seller or their respective Affiliates
by any unaffiliated Third Party (other than an Authority), which (i) challenges or otherwise seeks to prevent, or would reasonably
be expected to materially delay, any of the transactions contemplated by this Agreement, (ii) would reasonably be expected to result
in a material Liability for Buyer, Seller or any of their respective Affiliates, (iii) would reasonably be expected to adversely
effect in any material respect the ability of Buyer, Parent or Seller or any of their respective Affiliates, as applicable, to
perform their obligations under this Agreement, to consummate any of the transactions contemplated hereby or to operate any of
their respective businesses in the State of Nevada, or (iv) would reasonably be expected to subject Buyer, Parent or Seller or
any of their respective Affiliates or their respective officers or directors to material Liability in relation to any of the transactions
contemplated by this Agreement; provided, however, in the event a Proceeding contemplated by this Section 9.1(b)
has been instituted and/or is pending and Buyer does not want to waive the condition contemplated by this Section 9.1(b)
but Seller informs Buyer in writing of its desire to waive the condition contemplated by this Section 9.1(b), to the extent
such waiver is permitted by Law, Seller may waive such obligation provided that Seller and Parent sign an undertaking, in form
and substance satisfactory to Buyer, to jointly and severally indemnify, defend, save and hold harmless Buyer Indemnitees from
and against any and all Losses, incurred or sustained by, or imposed upon any Buyer Indemnities resulting from, arising out of,
or otherwise incurred in connection with such Proceeding, including all fees and expenses, which shall be advanced to Buyer and
paid by Seller and/or Parent when and as such fees and expenses are incurred (such Proceeding being referred to herein as a “Seller
Waived Proceeding”).

 

(c)          Gaming
Approvals. All Gaming Approvals set forth on Schedule 9.1(c) of the Seller Disclosure Schedules shall have been obtained
and shall be in full force and effect.

 

9.2         Conditions
to Buyer’s Obligations. The obligation of Buyer to complete the Closing is subject to the satisfaction or waiver (in
the sole discretion of Buyer) of each of the following conditions:

 

(a)          each
of the representations and warranties of Seller and/or Parent contained in this Agreement that are qualified by materiality will
be true and correct in all respects and each of the representations and warranties of Seller and/or Parent that are not so qualified
will be true and correct in all material respects, in each case, as if such representations or warranties were made on and as of
the Agreement Date and as of the Closing Date (except to the extent such representations and warranties speak as of a specific
date or as of the Agreement Date, in which case such representations and warranties will be so true and correct or so true and
correct in all material respects, as the case may be, as of such specific date or as of the Agreement Date, respectively);

 

    	 	47	 

     

    

 

(b)          Seller
and Parent will have performed, satisfied and complied in all material respects with all covenants and agreements required to be
performed by them at or prior to the Closing by this Agreement;

 

(c)          since
the Agreement Date, there has been no change, event or condition of any character (whether or not covered by insurance) that, individually
or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect;

 

(d)          receipt
of the Title Commitment and evidence reasonably satisfactory to Buyer that the issuer thereof is unconditionally prepared to issue
a policy of title insurance as set forth in the Title Commitment;

 

(e)          Buyer
will have received all of the certificates, Required Consents (or, to the extent that any Required Consent identified in Schedule
3.2(f) of the Seller Disclosure Schedules (other than the Consent identified as item 1 therein) shall not have been obtained
on or prior to the Closing, Seller shall retain and continue to hold the Contract to which such Required Consent related and ensure
that Buyer receives the full benefits of the provisions of such Contract for the duration of its term in accordance with Section
1.5), approvals and other documents specified in Section 3.2; and

 

(f)          EBITDA
for the twelve 12 calendar month period ending April 30, 2018 shall have been at least $1,716,000 as reflected in Seller’s
internal unaudited financial statements.

 

9.3         Conditions
to Seller’s and Parent’s Obligation. The obligation of Seller and Parent to complete the transactions contemplated
by this Agreement is subject to the satisfaction or waiver (in the sole discretion of Seller and Parent) of each of the following
conditions:

 

(a)          each
of the representations and warranties of Buyer contained in this Agreement that are qualified by materiality will be true and correct
in all respects and each of the representations and warranties of Buyer that are not so qualified will be true and correct in all
material respects, in each case, as if such representations or warranties were made on and as of the Agreement Date and as of the
Closing Date (except to the extent such representations and warranties speak as of a specific date or as of the Agreement Date,
in which case such representations and warranties will be so true and correct or so true and correct in all material respects,
as the case may be, as of such specific date or as of the Agreement Date, respectively);

 

(b)          Buyer
will have performed, satisfied and complied in all material respects with all covenants and agreements required to be performed
by it at or prior to the Closing by this Agreement; and

 

(c)          Seller
and Parent will have received from Buyer all of the certificates and other documents specified in Section 3.3.

 

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Article 10

SURVIVAL
AND INDEMNIFICATION

 

10.1       Survival.
All representations, warranties, covenants, and other agreements contained in this Agreement shall survive the Closing as follows:

 

(a)          all
covenants and other agreements will survive the Closing indefinitely (unless such covenant expires earlier by its terms);

 

(b)          all
Standard Representations shall survive the Closing for period ending on the date eighteen (18) months following the Closing (the
“General Survival Period”);

 

(c)          the
representations and warranties set forth in Section 4.20 (Environmental Matters) shall survive the Closing for a period
ending on the date three (3) years following the Closing; and

 

(d)          all
Fundamental Representations and the representations and warranties set forth in Section 4.12 (Tax Matters) shall survive
the Closing for a period ending on the date six (6) years following the Closing;

 

provided that in the case of clauses
(a) through (d) above, if a written Notice of Claim giving rise to a right or potential right of indemnity for breach of any representation,
warranty, covenant or agreement shall have been properly given in accordance with Section 12.6 to the party against
whom such indemnity may be sought with reasonable specificity prior to the applicable survival date relating to such representation,
warranty, covenant or agreement, then such representation, warranty, covenant or agreement will survive solely with respect to
the specific claim described in such Notice of Claim (and not in any other respect until such claim is resolved).

 

10.2       Indemnification
by Seller and Parent.

 

(a)          Seller
and Parent shall, jointly and severally, indemnify, defend, save and hold harmless from and against, and pay on behalf of and reimburse
as and when incurred by Buyer and each of its Affiliates and the and the respective Affiliates, Subsidiaries, employees, agents,
representatives, successors and assigns directors, officers and employees of the foregoing Persons (collectively, the “Buyer
Indemnitees”) from and against any and all Losses incurred or sustained by, or imposed upon, any Buyer Indemnitees resulting
from, arising out of, in connection with, or otherwise relating to:

 

(i)          any
inaccuracy in or breach of any representation or warranty by Parent or Seller contained in this Agreement (or in any other Ancillary
Documents) as if made on and as of the Closing Date;

 

(ii)         any
breach of any covenant or other agreement by Seller or Parent contained in this Agreement or in any other Ancillary Documents;

 

(iii)        any
Retained Liabilities;

 

(iv)        a
Seller Waived Proceeding;

 

    	 	49	 

     

    

 

(v)         except
for Assumed Liabilities, any and all Liabilities related to the Purchased Assets or the operation of the Business arising on or
prior to the Closing Date and related to Seller’s operation of the Business; and

 

(b)          Notwithstanding
any other provision to the contrary, for purposes of this Section 10.2, the representations and warranties contained
in this Agreement, any Seller Disclosure Schedule, any Exhibit, or any other Ancillary Document shall be deemed to have been made
without any qualifications as to materiality and, accordingly, all references herein and therein to “material,” “in
all material respects”, “Material Adverse Effect” and similar qualifications as to materiality shall be deemed
to be deleted therefrom (except for Section 4.6(i), the definition of “Permitted Encumbrances” and where any
such provision requires disclosure of lists of items of a material nature or above a specified threshold).

 

(c)          Seller
and Parent shall not be liable for any Loss or Losses pursuant to Section 10.2(a)(i) (“Buyer Warranty Losses”)
unless and until the aggregate amount of all Buyer Warranty Losses incurred by Buyer Indemnitees exceeds $100,000, whereupon all
amounts shall be recoverable, including the first $100,000 of such Losses, subject to the aggregate liability limitations set forth
below. Seller and Parent’s aggregate liability for Buyer Warranty Losses shall be limited to:

 

(i)          ten
percent (10%) of the Purchase Price, as established pursuant to Sections 2.1 and 2.4 and without reference to
Section 10.10 (the “Adjusted Purchase Price”), for any inaccuracies in or breaches of any representations
or warranties of Parent or Seller that are not Fundamental Representations or set forth in Section 4.12 (Tax Matters)
or Section 4.20 (Environmental Matters), and are not any claims for any inaccuracy in or breach of any representations
or warranties of Seller or Parent based on fraud or intentional misrepresentation on the part of Seller or Parent; and

 

(ii)         one
hundred percent (100%) of the Adjusted Purchase Price for any inaccuracies in or breaches of any representations or warranties
of Parent or Seller that are Fundamental Representations or set forth in Section 4.12 (Tax Matters) or Section 4.20
(Environmental Matters), or for any claims for any inaccuracies in or breaches of any representations or warranties of Parent or
Seller based on fraud or intentional misrepresentation on the part of Seller or Parent.

 

(d)          Seller
and Parent shall have no Liability pursuant to Section 10.2(a) for any Losses to the extent a reserve with respect to such
Losses is included in or taken into account in the calculation or determination of Working Capital.

 

(e)          Notwithstanding
any other provision of this Agreement, Seller’s and Parent’s obligations under Section 10.2(a)(i) in respect
of any inaccuracy in or breach of any representations or warranties of Parent or Seller set forth in Section 4.20 (Environmental
Matters) related to a Remedial Action shall not exceed an amount that would be considered commercially reasonable under accepted
industry standards (or as otherwise required by the relevant Authority).

 

    	 	50	 

     

    

 

10.3       Indemnification
by Buyer.

 

(a)          If
the Closing shall occur, subject to the other terms and conditions of this Article 10, Buyer shall indemnify, defend, save
and hold harmless from and against, and pay on behalf of and reimburse as and when incurred by Buyer and each of its Affiliates
and the and the respective Affiliates, Subsidiaries, employees, agents, representatives, successors and assigns directors, officers
and employees of the foregoing Persons (collectively, the “Seller Indemnitees”) from and against any and all
Losses incurred or sustained by, or imposed upon, any Seller Indemnitees resulting from, arising out of, in connection with, or
otherwise relating to:

 

(i)          any
inaccuracy in or breach of any representation or warranty by Buyer contained in this Agreement (or in any other Ancillary Documents)
as if made on and as of the Closing Date;

 

(ii)         any
breach of any covenant or other agreement by Buyer contained in this Agreement or in any Ancillary Document;

 

(iii)        except
for the Retained Liabilities, any and all Liabilities related to Buyer’s operation of the Business on and after the Closing
Date; and

 

(iv)        any
Assumed Liability.

 

10.4       Time
and Other Limitations.

 

(a)          Seller
and Parent shall have liability under Section 10.2(a)(i) with respect to any inaccuracy in or breach of any representation
or warranty of Parent or Seller only if Buyer Indemnitee notifies Seller and Parent of such claim (specifying the factual basis
of the claim in reasonable detail) on or before the expiration date of the applicable survival period set forth in Section 10.1
that relates to the alleged breached representation or warranty in question.

 

(b)          Buyer
shall have liability under Section 10.3(a)(i) with respect to a breach of any representation or warranty of Buyer only
if the Seller Indemnitee notifies Buyer of a claim (specifying the factual basis of the claim in reasonable detail) on or before
the expiration date of the applicable survival period set forth in Section 10.1 that relates to the alleged breached
representation or warranty in question.

 

(c)          The
amount of any Loss subject to indemnification pursuant to this Agreement shall, before giving effect to the other limitations on
indemnification set forth in this Article 10, be calculated net of any insurance proceeds or other amounts under indemnification,
contribution or similar agreements actually received by the Indemnitee on account of such Loss. The existence of a claim by an
Indemnitor for monies from an insurer or other party shall not, however, delay any payment pursuant to the indemnification provisions
contained herein and otherwise determined to be due and owing by an Indemnitor. Rather, the Indemnitor shall make timely payment
of the full amount of Losses determined to be due and owing by it, and if the Indemnitee later actually recovers insurance or other
proceeds in respect of such Losses, then it shall promptly reimburse the Indemnitor to the extent necessary to avoid double recovery
of the same Losses.

 

    	 	51	 

     

    

 

10.5       Indemnification
Procedures for Third-Party Claims.

 

(a)          In
the event that an Indemnitee receives notice of the assertion of any claim or the commencement of any Proceeding by a Third Party
in respect of which indemnity may be sought under the provisions of this Article 10 (a “Third-Party Claim”),
the Indemnitee shall promptly, and in any event within five (5) Business Days following such Indemnitee’s receipt of such
notice, notify the Indemnitor in writing (“Notice of Claim”) of such Third-Party Claim. Failure or delay in
notifying the Indemnitor will not relieve the Indemnitor of any liability it may have to the Indemnitee, except and only to the
extent that such failure or delay causes actual harm to the Indemnitor with respect to such Third-Party Claim.

 

(b)          Subject
to the further provisions of this Section 10.5, the Indemnitor shall be entitled to assume and control the defense,
investigation, management and settlement of any such Third-Party Claim and any litigation resulting therefrom with counsel of its
choice (which counsel shall be reasonably satisfactory to the Indemnitee) and at its sole cost and expense (a “Third-Party
Defense”) if it gives notice of its intention to do so to the Indemnitor within ten (10) days from the date on which
the Indemnitor received the Notice of Claim. Any Indemnitee shall have the right to employ separate counsel in any such Third-Party
Defense and to participate therein (but not control), but the fees and expenses of such counsel shall not be at the expense of
the Indemnitor unless (A) the Indemnitor shall have failed, within the time after having been notified by the Indemnitee of the
existence of the Third-Party Claim as provided in the first sentence of this Section 10.5(b), to assume the defense
of such Third-Party Claim, or (B) in the reasonable opinion of counsel (provided in writing to the Indemnitor) under applicable
standards of professional conduct, a conflict on any significant issue exists between the Indemnitee and the Indemnitor in respect
of the Third-Party Claim that would make such separate representation advisable.

 

(c)          Unless
the Indemnitee otherwise agrees, the Indemnitor will not be entitled to assume or maintain the Third-Party Defense if:

 

(i)          the
Third-Party Claim relates to any criminal Proceeding, indictment, allegation or investigation;

 

(ii)         the
Third-Party Claim relates to or arises in connection with any Proceeding to modify or revoke any Permit or approval of any Gaming
Authority related to the Business or the Purchased Assets;

 

(iii)        the
Indemnitor has failed or is failing to vigorously prosecute or defend such Third-Party Claim; or

 

(iv)        the
Indemnitor fails to provide reasonable assurance to the Indemnitee of its financial capacity to prosecute the Third-Party Defense
and provide indemnification in accordance with the provisions of this Agreement.

 

    	 	52	 

     

    

 

(d)          At
the election of the Indemnitee, the Indemnitee and the Indemnitor shall have joint control over the Third-Party Defense if the
Third-Party Claim seeks, in addition to or in lieu of monetary damages, any injunctive or other equitable relief (except where
non-monetary relief is merely incidental to a primary claim or claims for monetary damages).

 

(e)          The
Indemnitor will not consent to the entry of any judgment or enter into any settlement, except with the written consent of the Indemnitee
(not to be unreasonably withheld, conditioned or delayed); provided, that the consent of the Indemnitee shall not be required
if all of the following conditions are met: (i) the terms of the judgment or proposed settlement include as an unconditional
term thereof the giving to the Indemnitees by the Third Party of a release of the Indemnitees from all liability in respect of
such Third-Party Claim, (ii) there is no finding or admission (A) of any violation of Law by the Indemnitees (or any Affiliate
thereof), or (B) that has or would be reasonably expected to have a material adverse effect on any other pending Proceeding
or claims of a similar nature against the Indemnitees (or any Affiliate thereof) relating to the same occurrence or series of events
that gave rise to such Third-Party Claim(s), and (iii) the sole form of relief is monetary damages which are paid in full
by the Indemnitor. The Indemnitor shall conduct the defense of the Third-Party Claim actively and diligently, and the Indemnitee
will provide reasonable cooperation in the defense of the Third-Party Claim. So long as the Indemnitor is reasonably conducting
the Third-Party Defense in good faith, the Indemnitee will not consent to the entry of any judgment or enter into any settlement
with respect to the Third-Party Claim without the prior written consent of the Indemnitor (not to be unreasonably withheld or delayed).
Notwithstanding the foregoing, the Indemnitee shall have the right to pay or settle any such Third-Party Claim; provided,
that in such event it shall waive any right to indemnity therefor by the Indemnitor for such claim unless the Indemnitor shall
have consented to such payment or settlement (such consent not to be unreasonably withheld or delayed).

 

(f)          In
the event that (i) an Indemnitee gives Notice of Claim to the Indemnitor and the Indemnitor fails or elects not to assume
a Third-Party Defense which the Indemnitor had the right to assume under this Section 10.5, or (ii) the Indemnitor
is not entitled to assume or maintain the Third-Party Defense pursuant to Section 10.5(c), the Indemnitee shall have
the right, with counsel of its choice, to defend, conduct and control the Third-Party Defense by giving written notice of its intention
to do so to the Indemnitor and the Indemnitor shall promptly reimburse the Indemnitee therefor in accordance with (and to the extent
provided for in) Section 10.2 or 10.3, as appropriate. In each such case, the Indemnitee shall conduct the Third-Party
Defense actively and diligently, and the Indemnitor will provide reasonable cooperation in the Third-Party Defense. In each such
case, the Indemnitee will keep the Indemnitor reasonably informed of the progress of the Third-Party Defense, and the Indemnitee
shall have the right to consent to the entry of any judgment or enter into any settlement with respect to the Third-Party Claim
on such terms as it may deem appropriate; provided, however, that the Indemnitor will have no indemnification obligations
with respect to any settlement made or entry of any judgment consented to by the Indemnitee without the prior written consent of
the Indemnitor (not to be unreasonably withheld or delayed). If the Indemnitor does not elect to assume a Third-Party Defense which
it has the right to assume hereunder, the Indemnitee shall have no obligation to do so.

 

    	 	53	 

     

    

 

(g)          Each
party to this Agreement shall use its commercially reasonable efforts to cooperate and to cause its employees to cooperate with
and assist the Indemnitee or the Indemnitor, as the case may be, in connection with any Third-Party Defense, including attending
conferences, discovery proceedings, hearings, trials and appeals and furnishing records, information and testimony, as may reasonably
be requested.

 

10.6       Indemnification
Procedures for Non-Third-Party Claims. In the event of a claim by an Indemnitee on account of a Loss that does not involve
a Third-Party Claim being asserted against the Indemnitee (a “Direct Claim”), the Indemnitee shall send a Notice
of Claim of a Direct Claim to the Indemnitor reasonably promptly, but in any event not later than five (5) Business Days after
the Indemnitee becomes aware of such Direct Claim. The failure to give such prompt written notice shall not, however, relieve the
Indemnitor of its indemnification obligations, except and only to the extent that the Indemnitor forfeits rights or defenses by
reason of such failure. Such Notice of Claim by the Indemnitee shall describe the Direct Claim in reasonable detail, shall include
copies of all written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has
been or may be sustained by the Indemnitee. The Indemnitor shall have thirty (30) days after its receipt of such Notice of Claim
to respond in writing to such Direct Claim. The Indemnitee shall allow the Indemnitor and its Representatives to investigate the
matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any amount is payable in respect
of the Direct Claim and the Indemnitee shall assist the Indemnitor’s investigation by giving such information and assistance
(including access to the Indemnitee’s premises and Representatives and the right to examine and copy any accounts, documents
or records) as the Indemnitor or any of its Representatives may reasonably request. If the Indemnitor does not so respond within
such thirty (30)-day period, the Indemnitor shall be deemed to have rejected such claim, in which case the Indemnitee shall be
free to pursue such remedies as may be available to the Indemnitee on the terms and subject to the provisions of this Agreement.

 

10.7       Effect
of Investigation. An Indemnitee’s right to indemnification, payment, reimbursement or other remedies based upon any representation,
warranty, covenant or agreement of the Indemnitor will not be affected by any investigation (including any environmental investigation
or assessment) conducted, any knowledge acquired at any time (whether obtained prior to or after the Closing Date), or any waiver
by the Indemnitee of any condition, with respect to the accuracy or inaccuracy of any representation or warranty of, or compliance
with, such representation, warranty, covenant or agreement. Such representations, warranties, covenants, and agreements shall not
be affected or deemed waived by reason of the fact that the Indemnitee knew or should have known that any representation or warranty
might be inaccurate or that the Indemnitor failed to comply with any agreement or covenant. The representations and warranties
and indemnification rights associated therewith are meant to allocate risk among the parties, and, therefore, any investigation
by such party shall be for its own protection only and shall not affect or impair any right or remedy hereunder.

 

    	 	54	 

     

    

 

10.8       Satisfaction
of Seller’s and Parent’s Indemnification Obligations. Any amounts owed by Seller and Parent to the Buyer or any
of the other Buyer Indemnitees from and after the Closing pursuant to Section 10.2, shall be made (i) first from the Escrow
Account, to the extent the Escrow Account has not been exhausted or released, and Seller, Parent and Buyer shall cause the Escrow
Agent to pay to the applicable Buyer Indemnitee(s) an amount equal to an aggregate amount equal to the lesser of (x) the amount
of Losses to which such Buyer Indemnitee(s) is entitled to be indemnified and (y) the then remaining balance of the Escrow Account,
and (ii) second, if the amount of Losses to which such Buyer Indemnitee(s) is entitled to be indemnified exceeds the amount satisfied
in accordance with clause (i) above, directly by Seller and/or Parent.

 

10.9       Subrogation.
In the event that an Indemnitor is obligated to indemnify an Indemnitee pursuant to this Article 10, the Indemnitor will,
upon payment of such indemnity, be subrogated to all rights of the Indemnitee with respect to claims to which such indemnification
relates.

 

10.10     Exclusive
Remedy. Other than (a) for claims based on fraud, intentional misrepresentation or willful misconduct for which rescission
of this Agreement is sought as the remedy, or (b) any rights of any Person to seek or obtain equitable remedies (including
specific performance, injunctive and similar relief) pursuant to Section 7.2 or 12.10, any claim or cause of action
(whether such claim sounds in tort, contract or otherwise and including statutory rights and remedies) based upon, relating to
or arising out of this Agreement or the transactions contemplated hereby, including any breach of any representation, warranty,
covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement, or otherwise
in respect of the status, operations, condition or ownership of the Business, the Purchased Assets or Assumed Liabilities on or
prior to the Closing Date (including claims under Environmental and Safety Requirements and other Laws giving rights to compensation,
contribution or indemnification against Seller Indemnitees and any claims alleging fraudulent misrepresentation) must be brought
by the parties hereto in accordance with the provisions and applicable limitations of this Article 10, which shall
constitute the sole and exclusive remedy of the parties hereto, their Affiliates, successors and assigns, all other Buyer Indemnitees
and Seller Indemnitees, and all Persons who may claim any rights through Buyer, Seller and/or Parent, for any such claim or cause
of action.

 

10.11     Purchase
Price Adjustment. Any indemnification amounts paid pursuant to this Article 10, to the extent permitted by applicable
Law, shall be treated for all Tax purposes as an adjustment to the Purchase Price.

 

Article 11

TERMINATION

 

11.1       Right
to Terminate. Notwithstanding anything to the contrary set forth in this Agreement, this Agreement may be terminated and the
transactions contemplated herein abandoned at any time prior to the Closing:

 

(a)          by
mutual consent of Buyer, on the one hand, and Seller and Parent, on the other hand;

 

    	 	55	 

     

    

 

(b)          by
Buyer, on the one hand, or Seller or Parent, on the other hand, if the Closing has not occurred by March 31, 2019 (the “Outside
Date”);

 

(c)          by
Buyer, on the one hand, or Seller and Parent, on the other hand, if an Authority issues a final nonappealable Order restraining,
enjoining or otherwise prohibiting the consummation of the transactions contemplated by this Agreement; provided, however,
that the right to terminate this Agreement pursuant to this clause shall not be available to any party(ies) whose failure to fulfill
any obligation under this Agreement has been the cause of, or materially contributed to, such Order;

 

(d)          by
Buyer if Seller or Parent has breached or failed to perform any of their representations, warranties, covenants or agreements contained
herein which (i) would result in a failure of a condition set forth in Section 9.2(a) or 9.2(b) to be satisfied,
and (ii) is not cured in all material respect within thirty (30) days after Buyer has notified Seller and Parent of its intention
to terminate this Agreement pursuant to this clause; provided, that Buyer shall not have the right to terminate this Agreement
pursuant this clause if Buyer is then in material breach of any representation, warranty, covenant or agreement of Buyer set forth
in this Agreement;

 

(e)          by
Seller or Parent if Buyer has breached or failed to perform any of its representations, warranties, covenants or agreements contained
herein, which (i) would result in a failure of a condition set forth in Section 9.3(a) or 9.3(b) to be satisfied,
and (ii) is not cured within thirty (30) days after Seller or Parent has notified Buyer of its intention to terminate this Agreement
pursuant to this clause; provided, that Seller and Parent shall not have the right to terminate this Agreement pursuant
this clause if either Seller or Parent is then in material breach of any representation, warranty, covenant or agreement of Seller
or Parent, as applicable, set forth in this Agreement; or

 

(f)          by
Buyer if there has been an event, change, occurrence or circumstance since the Agreement Date that has had or could reasonably
be expected to have a Material Adverse Effect.

 

11.2       Effect
of Termination. Upon termination of this Agreement pursuant to Section 11.1, this Agreement shall immediately become
null void and there shall be no further Liability on the part of Buyer or Seller or Parent, or their respective Representatives,
other than the obligations contained in the second sentence of Section 6.3(b), the obligations contained in Section 7.2
to the extent related to Buyer Information, this Section 11.2, and Article 12, which will survive any termination
of this Agreement; provided, however, that nothing contained in this Section 11.2 shall relieve or limit the
Liability of any party for any breach of any covenant or agreement contained herein or for any fraudulent or willful breach of
any representation or warranty contained herein.

 

    	 	56	 

     

    

 

Article 12

MISCELLANEOUS
PROVISIONS

 

12.1       Interpretation
and Usage.

 

(a)          Unless
there is a clear contrary intention: (i) a reference made to an article, section, appendix, addendum, exhibit or schedule
means a reference to an article, section, appendix, annex, addendum, exhibit or schedule of or to this Agreement; (ii) the
singular includes the plural and vice versa; (iii) reference to any agreement, document or instrument means that agreement,
document or instrument, including all appendices, annexes, addenda, exhibits, schedules thereto, as amended or modified and in
effect from time to time in accordance with the terms thereof; (iv) reference to any Law means that Law as amended, modified,
codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated
thereunder, and reference to any section or other provision of any Law means that section or provision from time to time in effect
and constituting the substantive amendment, modification, codification, replacement or reenactment of that section or provision;
(v) “hereunder,” “hereof,” “hereto,” and words of similar import will be deemed references
to this Agreement as a whole and not to any particular article, section or other provision of this Agreement; (vi) “including”
(and with correlative meaning “include”) means including without limiting the generality of any description preceding
such term; (vii) “or” is used in the inclusive sense of “and/or”; (viii) “it” or
“its” in reference to a Person will be deemed to include individual natural Persons; (ix)  references to a “party”
or “parties” means Buyer, Seller or Parent, or all of them as the context requires; and (x) the terms “writing,”
“written” and words of similar import will be deemed to include communications and documents in e-mail, fax or any
other similar electronic or documentary form (except that notices given under this Agreement must comply with the requirements
of Section 12.6).

 

(b)          The
Seller Disclosure Schedules are divided into sections which correspond to the sections of this Agreement. The disclosure of an
item in any schedule of the Seller Disclosure Schedules shall be deemed to qualify both (i) the representations and warranties,
if any, contained in the section or subsection of this Agreement to which it corresponds in number to such schedule and (ii) any
other representation and warranty of Seller or Parent in this Agreement to the extent that it is readily apparent on its face from
a reading of such disclosure item that it would also qualify or apply to such other representation and warranty. Neither the specification
(directly or indirectly by reference to a defined term in this Agreement) of any dollar amount in the representations and warranties
set forth in Article 4, nor the inclusion of any items in any schedule of the Seller Disclosure Schedules shall be deemed
to constitute an admission by the parties, or otherwise imply or create any presumption, that any such amount or such items so
included are material for the purposes of this Agreement, or constitute an admission by the parties that such item meets any or
all of the criteria set forth in this Agreement for inclusion in such schedule of the Seller Disclosure Schedules or any other
schedule of the Seller Disclosure Schedules. The Seller Disclosure Schedules and the disclosures and information contained therein
shall not be deemed to broaden in any way the scope or effect of any of the representations or warranties of Seller or Parent under
this Agreement. The information provided in the Seller Disclosure Schedules is being provided solely for the purpose of making
disclosures to Buyer under this Agreement. In disclosing this information, neither Seller nor Parent waive, and expressly reserve
any and all rights under, any attorney-client privilege associated with such information or any protection afforded by the work-product
doctrine with respect to any of the matters disclosed or discussed herein. Nothing disclosed in any schedule of the Seller Disclosure
Schedules constitutes an admission of Liability of either Seller or Parent or is an admission against the interest of either Seller
or Parent, in each case with respect to any Third Party.

 

    	 	57	 

     

    

 

(c)          All
accounting terms used in this Agreement will be interpreted and all accounting determinations will be made in accordance with GAAP.

 

(d)          The
table of contents and the headings of the sections and subsections of this Agreement are inserted for convenience of the parties
only and will not constitute a part hereof.

 

(e)          The
parties have participated jointly in the negotiation and drafting of this Agreement. In the event of an ambiguity or question of
intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties, and no presumption or burden
of proof will arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

 

12.2       Amendment
and Modification. Subject to applicable Law, this Agreement may be amended or modified from time to time with respect to any
of the terms contained herein, except that all amendments and modifications must be set forth in a writing duly executed by Buyer,
Seller and Parent.

 

12.3       Waiver
of Compliance; Consents. Any failure of a party to comply with any obligation, covenant, agreement or condition herein may
be expressly waived in writing by the party entitled to compliance, but any waiver or failure to insist upon strict compliance
with the obligation, covenant, agreement or condition will not operate as a waiver of, or estoppel with respect to, any subsequent
or other failure. No single or partial exercise of a right or remedy will preclude any other or further exercise thereof or of
any other right or remedy hereunder. Whenever this Agreement requires or permits the Consent by or on behalf of a party, the Consent
must be given in writing in the same manner as for waivers of compliance.

 

12.4       No
Third-Party Beneficiaries. Except as provided in Article 10, nothing in this Agreement will entitle any Person (other
than a party hereto and its respective successors and assigns permitted hereby) to any claim, cause of action, remedy or right
of any kind.

 

12.5       Expenses.
Except as otherwise expressly provided in this Agreement, each of the parties hereto will bear its own costs, fees and expenses
in connection with the negotiation, preparation, execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby, including fees, commissions and expenses payable to brokers, finders, investment bankers,
consultants, exchange or transfer agents, attorneys, accountants and other professionals, whether or not the transactions contemplated
herein are consummated.

 

    	 	58	 

     

    

 

12.6       Notices.
All notices, requests, demands and other communications required or permitted hereunder must be made in writing and will be deemed
to have been duly given and effective: (a) on the date of delivery, if delivered personally; (b) on the earlier of the
fourth (4th) day after mailing or the date of the return receipt acknowledgment, if mailed, postage prepaid, by certified or registered
mail, return receipt requested; (c) on the date of transmission, if sent by facsimile or electronic mail with confirmation
of successful delivery if sent during normal business hours of the recipient, and on the next Business Day if sent after normal
business hours of the recipient; or (d) on the date of delivery if sent by a recognized overnight courier, in each case, to
the party to whom it is given, at such party’s address, facsimile number or email address specified below.

 

	If to Seller or Parent, to:	Nevada Gold & Casinos, Inc.
	 	133 E. Warm Springs Road, Suite 102
	 	Las Vegas, Nevada 89119
	 	Attn: Michael Shaunnessy and Ernest East
	 	Fax: 702-685-1265
	 	Email: mshaunnessy@nevadagold.com;
	 	erniee7@gmail.com
	 	 
	with a copy to:	Hughes Hubbard & Reed LLP
	 	One Battery Park Plaza
	 	New York, New York 10004
	 	Attn:  James Modlin
	 	Fax:  212-299-6817
	 	Email:  james.modlin@hugheshubbard.com

 

or to such other person or address as Seller
or Parent may furnish to the other parties in writing in accordance with this Section 12.6. Seller hereby designates
Parent as its agent for receipt of notices hereunder unless and until notice of a successor designee is given in accordance herewith.

 

	If to Buyer, to:	
        Truckee Gaming, LLC

        Attention: Thomas M. Benninger and Ferenc Szony

        PO Box 160

        Verdi, NV 89439

        Email: tmb@glcllc.com

        ferenc@truckeegaming.com

	 	 
	with a copy to:	
        David A. Garcia, Esq.

        Holland & Hart LLP

        5441 Kietzke Lane, Suite 200

        Reno, NV 89511

        Email: dgarcia@hollandhart.com

 

or to such other person or address as Buyer
may furnish to the other parties in writing in accordance with this Section 12.6.

 

    	 	59	 

     

    

 

12.7       Assignment.
This Agreement and all of the provisions hereof will be binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns, but neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned
(whether voluntarily, involuntarily, by operation of law or otherwise) by any of the parties hereto without the prior written consent
of the other parties, except that Buyer may assign this Agreement, in whole or in any part and from time to time, to any Subsidiary
or other Affiliate of Buyer that agrees (without limitation or release of Buyer’s Liabilities hereunder) to be bound by and
responsible for Buyer’s Liabilities hereunder, provided Buyer remains bound by all of the terms and subject to all of the
conditions of this Agreement. Any assignment or purported assignment in violation of this Section 12.7 will be void
and of no force or effect.

 

12.8       Governing
Law and Venue.

 

(a)          This
Agreement and, except as otherwise expressly stated therein, the Ancillary Documents, and the legal relations among the parties
hereto will be governed by and construed in accordance with the internal substantive laws of the State of Delaware (without regard
to the laws of conflict that might otherwise apply) as to all matters, including matters of validity, construction, effect, performance
and remedies.

 

(b)          All
actions, suits and proceedings arising out of or relating to this Agreement, the interpretation and enforcement of the provisions
of this Agreement and of the Ancillary Documents, and the transactions contemplated hereby or thereby, shall be heard and determined
exclusively in the courts of the State of Nevada and the Federal courts of the United States of America located in the State of
Nevada, and appropriate appellate courts therefrom, and each of the parties hereto hereby irrevocably submits to the exclusive
jurisdiction of such courts in any such action suit or proceeding Each party hereby waives, and agrees not to assert, as a defense
in any such action, suit or proceeding that it is not subject to such jurisdiction or that such action, suit or proceeding may
not be brought or is not maintainable in said courts or that this Agreement or any Ancillary Document may not be enforced in or
by said courts or that its properties or assets are exempt or immune from execution, that such action, suit or proceeding is brought
in an inconvenient forum, or that the venue of such action, suit or proceeding is improper. Service of process in any such action,
suit or proceeding may be served on any party anywhere in the world, whether within or without the State of Nevada, as provided
in Section 12.6.

 

12.9       Counterparts.
This Agreement and each of the Ancillary Documents may be executed in one or more counterparts, each of which will be deemed an
original, but all of which together will constitute one and the same instrument. This Agreement and each of the Ancillary Documents
will become effective when one or more counterparts of this Agreement or such Ancillary Document, as applicable, have been signed
by each of the parties and delivered to the other parties. This Agreement and the Ancillary Documents may be executed and delivered
by facsimile or pdf transmission and a facsimile or pdf transmission will constitute an original for all purposes, except as may
be otherwise required by law. At the request of any party, the parties will confirm a facsimile or pdf transmission by signing
a duplicate original document.

 

    	 	60	 

     

    

 

12.10     Enforcement.
The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement or the Ancillary
Documents are not performed in accordance with their specific terms or otherwise are breached. Therefore, each party (a) hereby
waives, in any action for specific performance, the defense of adequacy of a remedy at law and any requirement for the posting
of any bond or other security in connection with any such remedy; and (b) agrees that the other parties will be entitled to
specific performance of the terms of this Agreement and the Ancillary Documents in any Proceeding initiated to enforce the terms
hereof, including the issuance of an Order or Orders to prevent or restrain any actual or threatened breach of this Agreement or
the Ancillary Documents, in each case without any requirement to post any bond or provide other security. The remedy of specific
performance will be in addition to any other remedy or remedies to which the other parties may be entitled at law or in equity.

 

12.11     Entire
Agreement. This Agreement, including the appendices, addenda, annexes, exhibits and schedules hereto, including the Seller
Disclosure Schedules, the Confidentiality Agreement, and the Ancillary Documents embody the entire agreement and understanding
of the parties in respect of the subject matter contained herein and supersede all prior agreements, letters of intent and the
understandings between the parties with respect to the subject matter of this Agreement, other than the Confidentiality Agreement.
The Confidentiality Agreement will terminate at the Closing and cease to be of any further force or effect in accordance with its
terms, but will survive any termination of this Agreement pursuant to Section 11. No discussions regarding, or exchange
of drafts or comments in connection with this Agreement or the transactions contemplated herein will constitute an agreement among
the parties hereto or modify the terms of this Agreement. Any agreement among the parties will exist only when the parties have
fully executed and delivered this Agreement or any amendments hereto adopted as provided herein.

 

12.12     Severability.
If any term or other provision of this Agreement or any of the Ancillary Documents is held to be invalid, illegal or incapable
of being enforced by any rule of Law or public policy, all other terms and provisions of this Agreement will nevertheless remain
in full force and effect so long as the economics or legal substance of the transactions contemplated hereby are not affected in
any manner materially adverse to any party. Upon determination that any term or other provision hereof is invalid, illegal or incapable
of being enforced, the parties hereto will negotiate in good faith to modify this Agreement or such Ancillary Document, as applicable,
so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable Law in
an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the greatest extent possible.

 

12.13     Waiver of Jury Trial.
THE PARTIES WAIVE ANY RIGHT THEY MAY HAVE TO A JURY TRIAL OF ANY CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE ANCILLARY DOCUMENTS, OR THE MAKING, PERFORMANCE OR INTERPRETATION THEREOF, INCLUDING FRAUDULENT INDUCEMENT THEREOF.

 

    	 	61	 

     

    

 

12.14     Guaranty.
Parent acknowledges that through its ownership of Seller, it will benefit from the sale by Seller of the Purchased Assets and that
Buyer would not enter into this Agreement but for the guaranty granted by Parent pursuant to this Section 12.14. Therefore,
in consideration of Buyer entering into this Agreement and undertaking its obligations hereunder, including agreeing to pay to
Seller the Purchase Price on the terms and subject to the conditions set forth herein, which consideration is hereby acknowledged,
Parent hereby absolutely, unconditionally and irrevocably guarantees to Buyer the full and timely performance by Seller of each
of its obligations, covenants and undertakings under this Agreement and each Ancillary Document to which Seller is a party, including
all of Seller’s obligations under Article 10 in accordance with the provisions of such Article and subject to
any applicable limitations on Seller’s obligations set forth in such Article. Parent further agrees to pay to Buyer all damages,
reasonable costs and expenses it may incur and be entitled to reimbursement or indemnification for hereunder as a result of the
non-performance of Parent of its obligations under this Section 12.14.

 

[Remainder of page intentionally left blank.
Signature page follows.]

 

    	 	62	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Asset Purchase Agreement to be duly executed as of the Agreement Date.

 

	BUYER:	 	SELLER:
	 	 	 
	TRUCKEE GAMING, LLC	 	NEVADA GOLD & CASINOS LV, LLC
	 	 	 	 	 
	By:	      	 	By:	      
	 	 	 	 	 
	Name:	 	 	Name:	 
	 	 	 	 	 
	Title:	 	 	Title:	 
	 	 	 	 	 
	 	 	 	PARENT:
	 	 	 	 
	 	 	 	NEVADA GOLD & CASINOS, INC.
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	 
	 	 	 	Name:	 
	 	 	 	 	 
	 	 	 	Title:	 

 

[Signature page to Asset Purchase Agreement]

 

     

     

    

 

EXHIBIT A

 

(Estimated Purchase Price)

 

Fourteen Million Six Hundred Thousand
Dollars ($14,600,000), plus or minus (as applicable) (i) the Acquired Cash Adjustment, and (ii) the Working Capital Adjustment
(such amount, as adjusted the “Purchase Price”)

 

	Base Price	 	$	14,600,000.00	 
	 	 	 	 	 
	Plus (Minus)	 	 	 	 
	Acquired Cash Adjustment:	 	$	__________	 
	Working Capital Adjustment:	 	$	__________	 
	 	 	 	 	 
	Estimated Purchase Price:	 	$	__________	 

 

[Exhibit A to Asset Purchase Agreement]

 

     

     

    

 

EXHIBIT B

 

(Escrow Agreement)

 

Attached.

 

[Exhibit B to Asset Purchase Agreement]

 

     

     

    

 

EXHIBIT C

 

(Bill of Sale and Assignment and Assumption
Agreement)

 

Attached.

 

[Exhibit C to Asset Purchase Agreement]

 

     

     

    

 

EXHIBIT D

 

(Transition Services Agreement)

 

Attached.

 

[Exhibit D to Asset Purchase Agreement]

 

     

     

    

 

EXHIBIT E

 

(Deed)

 

Attached.

 

[Exhibit E to Asset Purchase Agreement]

 

     

     

    

 

EXHIBIT F

 

(Example Acquired Cash Calculation)

 

	 	 	 	 	2018	 
	 	 	CLUB FORTUNE	 	March	 
	10101	 	Cash - Slot/Cage Inventory	 	 	955,119	 
	10111	 	Cash - Table Inventory Clearing	 	 	56,101	 
	10121	 	Cash - Hopper Inventory Token	 	 	-	 
	10131	 	Cash - Token Contra	 	 	-	 
	10141	 	Cash - Chip Contra	 	 	(198,100	)
	10199	 	Petty Cash	 	 	-	 
	10151	 	Cash - TITO Ticket Contra	 	 	-	 
	10161	 	Cash - Hotel Front Desk	 	 	-	 
	10162	 	Cash - Hotel F&B	 	 	-	 
	10102	 	Cash - VGM Cash In Machines	 	 	-	 
	10110	 	F&B Cash Inventory	 	 	-	 
	10103	 	Cash Inventory Over/Short	 	 	-	 
	10155	 	Cash - ATM	 	 	164,500	 
	10156	 	Cash - ATM II	 	 	40,000	 
	10104	 	Cash - Vault/Safe Inventory	 	 	-	 
	10112	 	Cash - Chips in Cage Inventory	 	 	125,489	 
	10157	 	Cash - PSJ	 	 	-	 
	10142	 	Chip Float	 	 	16,510	 
	10105	 	Cash - Poker Podium	 	 	-	 
	10158	 	Slot Drop	 	 	509,871	 
	10231	 	Petty Cash	 	 	-	 
	10232	 	WF-Operating	 	 	-	 
	10237	 	Reserve	 	 	-	 
	10238	 	WF-Payroll	 	 	-	 
	10243	 	Bank Account - Forty-three	 	 	-	 
	10244	 	Bank Account - Forty-four	 	 	-	 
	10245	 	Bank Account - Forty-five	 	 	-	 
	10246	 	Bank Account - Forty-six	 	 	-	 
	10247	 	MOOB-Reserve	 	 	-	 
	10248	 	Bank Account - MOOB Payroll	 	 	-	 
	10249	 	CFC Werstern Money CLRG	 	 	-	 
	10250	 	CFC Cash Advance CLRG	 	 	-	 
	10233	 	Progressive	 	 	-	 
	10234	 	PSJ	 	 	-	 
	 	 	Restricted Cash	 	 	-	 
	10301	 	Marketable Securities	 	 	-	 
	10350	 	Escrow Account	 	 	-	 
	 	 	Total Cash	 	 	1,684,446	 
	 	 	 	 	 	 	 
	26010	 	Unredeemed Chip Liability	 	 	(16,510	)
	 	 	Total Transaction Cash	 	 	1,667,936	 
	 	 	Minimum Cash Balance	 	 	1,600,000	 
	 	 	Acquired Cash Adjustment	 	 	67,936	 

 

[Exhibit F to Asset Purchase Agreement]

 

     

     

    

 

EXHIBIT G

 

(Example EBITDA Calculation)

 

	 	 	 	 	 	 	Consolidated	 
	(US$)	 	LTM March 2018	 
	 	 	 	 	 	 	 	 
	 	 	Calculation of EBITDA	 	 	 	 
	A	 	 	 	Net Income	 	$	372,960	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Plus:	 	 	 	 
	B	 	96110	 	Interest Expense - Third Party	 	$	-	 
	C	 	89001	 	Depreciation	 	 	1,274,578	 
	D	 	89002	 	Amortization of Intangible Assets (1)	 	 	153,810	 
	E	 	97200	 	State Income Tax	 	 	-	 
	F	 	97300	 	Local Income Tax	 	 	-	 
	(A+B+C+D+E+F) = G	 	 	 	Subtotal	 	$	1,801,347	 
	 	 	 	 	 	 	 	 	 
	H	 	95700	 	(Gain)/Loss on Sale of Assets	 	$	8,133	 
	I	 	95500	 	Write Down/Impairment of Asset	 	 	 	 
	(H+I) = J	 	 	 	Total Extraordinary Expenses	 	$	8,133	 
	 	 	 	 	 	 	 	 	 
	(G+J) = K	 	 	 	EBITDA	 	$	1,809,481	 

 

[Exhibit G to Asset Purchase Agreement]

 

     

     

    

 

EXHIBIT H

 

(Example Working Capital Calculation)

 

	(US$)	 	March
    31, 2018	 	 	Adjustments	 	 	Total	 	 	Notes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts Receivable:	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	10401	 	AR - ATM	 	$	110,245	 	 	$	(110,245	)	 	$	-	 	 	To be excluded if retained / cleared by Seller
	10411	 	AR - Employees	 	 	(156	)	 	 	156	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	10431	 	AR - Trade	 	 	2,000	 	 	 	(2,000	)	 	 	-	 	 	To be excluded if retained / cleared by Seller
	10441	 	AR - NSF, CMS Collections	 	 	464	 	 	 	(464	)	 	 	-	 	 	To be excluded if retained / cleared by Seller
	10451	 	AR - Credit Cards	 	 	7,230	 	 	 	(7,230	)	 	 	-	 	 	To be excluded if retained / cleared by Seller
	Total Accounts Receivable	 	$	119,783	 	 	$	(119,783	)	 	$	-	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inventory:	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	10701	 	Inventory - Gift Shop	 	$	33,500	 	 	 	 	 	 	$	33,500	 	 	 
	10711	 	Inventory - Uniforms	 	 	-	 	 	 		 	 	 	-	 	 	 
	10721	 	Inventory - Food	 	 	34,000	 	 	 	 	 	 	 	34,000	 	 	 
	10731	 	Inventory - Liquor	 	 	22,000	 	 	 	 	 	 	 	22,000	 	 	 
	Total Inventory	 	$	89,500	 	 	$	-	 	 	$	89,500	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Prepaid Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 
	10801	 	Prepaid Expense	 	$	90,987	 	 	 	 	 	 	$	90,987	 	 	 
	10805	 	Prepaid Taxes and Insurance	 	 	256,896	 	 	$	(256,896	)	 	 	-	 	 	To be excluded if retained / cleared by Seller
	10802	 	Prepaid Deposit	 	 	-	 	 	 		 	 	 	-	 	 	 
	10803	 	Prepaid Dues, Memberships, Sub	 	 	-	 	 	 		 	 	 	-	 	 	 
	10804	 	Prepaid Licenses & Fees	 	 	79,663	 	 	 	(72,559	)	 	 	7,104	 	 	All county, state, and gaming licensing fees removed
	Total Prepaid
    Expenses	 	$	427,546	 	 	$	(329,455	)	 	$	98,091	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Current
    Assets	 	$	636,828	 	 	$	(449,238	)	 	$	187,591	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Minus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts Payable:	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	20001	 	Accounts Payable - Trade	 	$	(108,983	)	 	$	108,983	 	 	$	-	 	 	To be excluded if retained / cleared by Seller
	20005	 	Accrued Registered Invoices	 	 	-	 	 	 		 	 	 	-	 	 	 
	20010	 	A/P - Manual Accrual	 	 	(9,318	)	 	 	9,318	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	20012	 	A/P - CC Accrual	 	 	(21,307	)	 	 	21,307	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	Total Accounts Payable	 	$	(139,608	)	 	$	139,608	 	 	$	-	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accrued Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	22001	 	Accrued Payroll	 	$	(145,044	)	 	$	145,044	 	 	$	-	 	 	To be excluded if retained by Seller
	22002	 	Accrued Bonus	 	 	-	 	 	 		 	 	 	-	 	 	 
	22003	 	Accrued Vacation	 	 	(30,901	)	 	 	 	 	 	 	(30,901	)	 	 
	22005	 	Accrued FICA Withheld	 	 	(13,305	)	 	 	13,305	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	22006	 	Accrued FICA Employer Share	 	 	-	 	 	 	-	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	22007	 	Accrued Fed Unemployment Tax	 	 	(693	)	 	 	693	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	22009	 	Accrued Unemployment Tax	 	 	(3,802	)	 	 	3,802	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	22010	 	Accrued - 401k Withholding	 	 	-	 	 	 	-	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	22016	 	Accrued - Health & Life Ins.	 	 	-	 	 	 	-	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	23001	 	Accrued State Sales Tax	 	 	(8,917	)	 	 	8,917	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	23002	 	Accrued Use Tax	 	 	(3,529	)	 	 	3,529	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	23003	 	W-2G Withholding	 	 	-	 	 	 	-	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	23007	 	Accrued Tax- Excise\MBT	 	 	(16,124	)	 	 	16,124	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	23501	 	Accrued Gaming Tax	 	 	(72,899	)	 	 	72,899	 	 	 	-	 	 	To be excluded if retained / cleared by Seller
	Total Accrued Liabilities	 	$	(295,214	)	 	$	264,313	 	 	$	(30,901	)	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Player Club & Progressive
    Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	25010	 	Accrued Progressive/PSJ Liability	 	$	(59,171	)	 	 	 	 	 	$	(59,171	)	 	 
	25510	 	Accrued Slot Club Points	 	 	(224,876	)	 	 	 	 	 	 	(224,876	)	 	 
	23100	 	Jackpot Liability	 	 	(5,198	)	 	 	 	 	 	 	(5,198	)	 	 
	Total Player Club & Progressive
    Liabilities	 	$	(284,047	)	 	$	-	 	 	$	(284,047	)	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	26010	 	Unredeemed Chip Liability	 	 	(16,510	)	 	 	16,510	 	 	 	-	 	 	To be excluded if included in Acquired Cash
	Total Other
    Liabilities	 	$	(16,510	)	 	$	16,510	 	 	$	-	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Current
    Liabilities	 	$	(735,379	)	 	$	420,431	 	 	$	(314,948	)	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Working Capital
    Adjustment	 	$	(98,551	)	 	$	(28,807	)	 	$	(127,358	)	 	 

 

[Exhibit H to Asset Purchase Agreement]Exhibit

Exhibit 4.4

NewLink Genetics Corporation, 
Issuer 
 
AND 
 
[TRUSTEE], 
Trustee
_______________
INDENTURE 
 
Dated as of [•], 20__
_______________
Debt Securities

TABLE OF CONTENTS
    
PAGE

	
			
	ARTICLE 1    DEFINITIONS
	1
	

	Section 1.01    Definitions of Terms
	1
	

	ARTICLE 2    ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES
	5
	

	Section 2.01    Designation and Terms of Securities
	5
	

	Section 2.02    Form of Securities and Trustee’s Certificate
	8
	

	Section 2.03    Denominations: Provisions for Payment
	8
	

	Section 2.04    Execution and Authentications
	9
	

	Section 2.05    Registration of Transfer and Exchange
	10
	

	Section 2.06    Temporary Securities
	11
	

	Section 2.07    Mutilated, Destroyed, Lost or Stolen Securities
	12
	

	Section 2.08    Cancellation
	13
	

	Section 2.09    Benefits of Indenture
	13
	

	Section 2.10    Authenticating Agent
	13
	

	Section 2.11    Global Securities
	14
	

	Section 2.12    CUSIP Numbers
	15
	

	ARTICLE 3    REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS
	15
	

	Section 3.01    Redemption
	15
	

	Section 3.02    Notice of Redemption
	15
	

	Section 3.03    Payment Upon Redemption
	16
	

	Section 3.04    Sinking Fund
	17
	

	Section 3.05    Satisfaction of Sinking Fund Payments with Securities
	17
	

	Section 3.06    Redemption of Securities for Sinking Fund
	17
	

	ARTICLE 4    COVENANTS
	18
	

	Section 4.01    Payment of Principal, Premium and Interest
	18
	

	Section 4.02    Maintenance of Office or Agency
	18
	

	Section 4.03    Paying Agents
	19
	

	Section 4.04    Appointment to Fill Vacancy in Office of Trustee
	20
	

	ARTICLE 5    SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	20
	

	Section 5.01    Company to Furnish Trustee Names and Addresses of Securityholders
	20
	

	Section 5.02    Preservation Of Information; Communications With Securityholders
	20
	

	Section 5.03    Reports by the Company
	20
	

	Section 5.04    Reports by the Trustee
	21
	

	ARTICLE 6    REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
	21
	

	Section 6.01    Events of Default
	21
	

	Section 6.02    Collection of Indebtedness and Suits for Enforcement by Trustee
	23
	

	Section 6.03    Application of Moneys Collected
	25
	

	Section 6.04    Limitation on Suits
	25
	

	Section 6.05    Rights and Remedies Cumulative; Delay or Omission Not Waiver
	26
	

i.    

TABLE OF CONTENTS
(CONTINUED)
PAGE

	
			
	Section 6.06    Control by Securityholders
	26
	

	Section 6.07    Undertaking to Pay Costs
	27
	

	ARTICLE 7    CONCERNING THE TRUSTEE
	27
	

	Section 7.01    Certain Duties and Responsibilities of Trustee
	27
	

	Section 7.02    Certain Rights of Trustee
	28
	

	Section 7.03    Trustee Not Responsible for Recitals or Issuance or Securities
	30
	

	Section 7.04    May Hold Securities
	30
	

	Section 7.05    Moneys Held in Trust
	30
	

	Section 7.06    Compensation and Reimbursement
	31
	

	Section 7.07    Reliance on Officer’s Certificate
	31
	

	Section 7.08    Disqualification; Conflicting Interests
	32
	

	Section 7.09    Corporate Trustee Required; Eligibility
	32
	

	Section 7.10    Resignation and Removal; Appointment of Successor
	32
	

	Section 7.11    Acceptance of Appointment By Successor
	33
	

	Section 7.12    Merger, Conversion, Consolidation or Succession to Business
	35
	

	Section 7.13    Preferential Collection of Claims Against the Company
	35
	

	Section 7.14    Notice of Default
	35
	

	ARTICLE 8    CONCERNING THE SECURITYHOLDERS
	35
	

	Section 8.01    Evidence of Action by Securityholders
	35
	

	Section 8.02    Proof of Execution by Securityholders
	36
	

	Section 8.03    Who May be Deemed Owners
	36
	

	Section 8.04    Certain Securities Owned by Company Disregarded
	37
	

	Section 8.05    Actions Binding on Future Securityholders
	37
	

	ARTICLE 9    SUPPLEMENTAL INDENTURES
	37
	

	Section 9.01    Supplemental Indentures Without the Consent of Securityholders
	37
	

	Section 9.02    Supplemental Indentures With Consent of Securityholders
	39
	

	Section 9.03    Effect of Supplemental Indentures
	39
	

	Section 9.04    Securities Affected by Supplemental Indentures
	39
	

	Section 9.05    Execution of Supplemental Indentures
	40
	

	ARTICLE 10    SUCCESSOR ENTITY
	40
	

	Section 10.01    Company May Consolidate, Etc.
	40
	

	Section 10.02    Successor Entity Substituted
	41
	

	ARTICLE 11    SATISFACTION AND DISCHARGE
	41
	

	Section 11.01    Satisfaction and Discharge of Indenture
	41
	

	Section 11.02    Discharge of Obligations
	42
	

	Section 11.03    Deposited Moneys to be Held in Trust
	42
	

	Section 11.04    Payment of Moneys Held by Paying Agents
	42
	

	Section 11.05    Repayment to Company
	42
	

	ARTICLE 12    IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
	43
	

	Section 12.01    No Recourse
	43
	

	ARTICLE 13    MISCELLANEOUS PROVISIONS
	43
	

	Section 13.01    Effect on Successors and Assigns
	43
	

ii.    

TABLE OF CONTENTS
(CONTINUED)
PAGE

	
			
	Section 13.02    Actions by Successor
	43
	

	Section 13.03    Surrender of Company Powers
	44
	

	Section 13.04    Notices
	44
	

	Section 13.05    Governing Law; Jury Trial Waiver
	44
	

	Section 13.06    Treatment of Securities as Debt
	44
	

	Section 13.07    Certificates and Opinions as to Conditions Precedent
	44
	

	Section 13.08    Payments on Business Days
	45
	

	Section 13.09    Conflict with Trust Indenture Act
	45
	

	Section 13.10    Counterparts
	45
	

	Section 13.11    Separability
	45
	

	Section 13.12    Compliance Certificates
	45
	

	Section 13.13    Patriot Act
	45
	

	Section 13.14    Force Majeure
	45
	

	Section 13.12    Table of Contents; Headings
	45
	

        
        
        

iii.    

INDENTURE
INDENTURE, dated as of [•], 20__, among NewLink Genetics Corporation, a Delaware corporation (the “Company”), and [TRUSTEE], as trustee (the “Trustee”): 
WHEREAS, for its lawful corporate purposes, the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of debt securities (hereinafter referred to as the “Securities”), in an unlimited aggregate principal amount to be issued from time to time in one or more series as in this Indenture provided, as registered Securities without coupons, to be authenticated by the certificate of the Trustee; 
WHEREAS, to provide the terms and conditions upon which the Securities are to be authenticated, issued and delivered, the Company has duly authorized the execution of this Indenture; and 
WHEREAS, all things necessary to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done.
NOW, THEREFORE, in consideration of the premises and the purchase of the Securities by the holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable benefit of the holders of Securities: 
ARTICLE 1
 
DEFINITIONS 

Section 1.01    Definitions of Terms    .
The terms defined in this Section (except as in this Indenture or any indenture supplemental hereto otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section and shall include the plural as well as the singular.  All other terms used in this Indenture that are defined in the Trust Indenture Act of 1939, as amended, or that are by reference in such Act defined in the Securities Act of 1933, as amended (except as herein or any indenture supplemental hereto otherwise expressly provided or unless the context otherwise requires), shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the date of the execution of this instrument.
“Authenticating Agent” means the Trustee or an authenticating agent with respect to all or any of the series of Securities appointed by the Trustee pursuant to Section 2.10.
“Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.
“Board of Directors” means the Board of Directors (or the functional equivalent thereof) of the Company or any duly authorized committee of such Board.

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“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors (or duly authorized committee thereof) and to be in full force and effect on the date of such certification.
“Business Day” means, with respect to any series of Securities, any day other than a day on which federal or state banking institutions in the Borough of Manhattan, the City of New York, or in the city of the Corporate Trust Office of the Trustee, are authorized or obligated by law, executive order or regulation to close.
 “Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any time after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time.
“Company” means NewLink Genetics Corporation, a corporation duly organized and existing under the laws of the State of Delaware, and, subject to the provisions of Article Ten, shall also include its successors and assigns.
“Corporate Trust Office” means the office of the Trustee at which, at any particular time, its corporate trust business shall be principally administered, which office at the date hereof is located at                                                                                                                                   .  
“Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.
“Defaulted Interest” has the meaning set forth in Section 2.03.
“Depositary” means, with respect to Securities of any series for which the Company shall determine that such Securities will be issued as a Global Security, The Depository Trust Company, another clearing agency, or any successor registered as a clearing agency under the Exchange Act, or other applicable statute or regulation, which, in each case, shall be designated by the Company pursuant to either Section 2.01 or 2.11.
“Event of Default” means, with respect to Securities of a particular series, any event specified in Section 6.01, continued for the period of time, if any, therein designated.
“Exchange Act” means the United States Securities and Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission thereunder.
The term “given”, “mailed”, “notify” or “sent” with respect to any notice to be given to a Securityholder pursuant to this Indenture, shall mean notice (x) given to the Depositary (or its designee) pursuant to the standing instructions from the Depositary or its designee, including by electronic mail in accordance with accepted practices or procedures at the Depositary (in the case of a Global Security) or (y) mailed to such Holder by first class mail, postage prepaid, at its address as it appears on the Security Register (in the case of a definitive Security).  Notice so “given” shall be deemed to include any notice to be “mailed” or “delivered,” as applicable, under this Indenture.

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“Global Security” means a Security issued to evidence all or a part of any series of Securities which is executed by the Company and authenticated and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction, all in accordance with the Indenture, which shall be registered in the name of the Depositary or its nominee.
“Governmental Obligations” means securities that are (a) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (b) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America that, in either case, are not callable or redeemable at the option of the issuer thereof at any time prior to the stated maturity of the Securities, and shall also include a depositary receipt issued by a bank or trust company as custodian with respect to any such Governmental Obligation or a specific payment of principal of or interest on any such Governmental Obligation held by such custodian for the account of the holder of such depositary receipt; provided, however, that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Governmental Obligation or the specific payment of principal of or interest on the Governmental Obligation evidenced by such depositary receipt.
“herein”, “hereof” and “hereunder”, and other words of similar import, refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.
“Indenture” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into in accordance with the terms hereof and shall include the terms of particular series of Securities established as contemplated by Section 2.01.
“Interest Payment Date”, when used with respect to any installment of interest on a Security of a particular series, means the date specified in such Security or in a Board Resolution or in an indenture supplemental hereto with respect to such series as the fixed date on which an installment of interest with respect to Securities of that series is due and payable.
“Officer” means, with respect to the Company, the chairman of the Board of Directors, a chief executive officer, a president, a chief financial officer, a chief operating officer, any executive vice president, any senior vice president, any vice president, the treasurer or any assistant treasurer, the controller or any assistant controller or the secretary or any assistant secretary.
 “Officer’s Certificate” means a certificate signed by any Officer.  Each such certificate shall include the statements provided for in Section 13.07, if and to the extent required by the provisions thereof.
“Opinion of Counsel” means an opinion in writing subject to customary exceptions of legal counsel, who may be an employee of or counsel for the Company, that is delivered to the Trustee in accordance with the terms hereof.  Each such opinion shall include the statements provided for in Section 13.07, if and to the extent required by the provisions thereof.

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“Outstanding”, when used with reference to Securities of any series, means, subject to the provisions of Section 8.04, as of any particular time, all Securities of that series theretofore authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore canceled by the Trustee or any paying agent, or delivered to the Trustee or any paying agent for cancellation or that have previously been canceled; (b) Securities or portions thereof for the payment or redemption of which moneys or Governmental Obligations in the necessary amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Company) or shall have been set aside and segregated in trust by the Company (if the Company shall act as its own paying agent); provided, however, that if such Securities or portions of such Securities are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as provided in Article Three, or provision satisfactory to the Trustee shall have been made for giving such notice; and (c) Securities in lieu of or in substitution for which other Securities shall have been authenticated and delivered pursuant to the terms of Section 2.07.
“Person” means any individual, corporation, partnership, joint venture, joint-stock company, limited liability company, association, trust, unincorporated organization, any other entity or organization, including a  government or political subdivision or an agency or instrumentality thereof.
“Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 2.07 in lieu of a lost, destroyed or stolen Security shall be deemed to evidence the same debt as the lost, destroyed or stolen Security.
“Responsible Officer” when used with respect to the Trustee means any officer within the Corporate Trust Office of the Trustee (or any successor group of the Trustee) or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his or her knowledge of and familiarity with the particular subject and in each case who shall have direct responsibility for the administration of this Indenture.
 “Securities” has the meaning stated in the first recital of this Indenture and more particularly means any Securities authenticated and delivered under this Indenture.
“Securities Act” means the Securities Act of 1933, as amended.
“Securityholder”, “holder of Securities”, “registered holder”, or other similar term, means the Person or Persons in whose name or names a particular Security is registered on the Security Register kept for that purpose in accordance with the terms of this Indenture.
 “Security Register” and “Security Registrar” shall have the meanings as set forth in Section 2.05.
“Subsidiary” means, with respect to any Person, any corporation, association, partnership or other business entity of which more than 50% of the total voting power of shares of capital stock or other interests (including partnership interests) entitled (without regard to the occurrence

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 of any contingency) to vote in the election of directors, managers, general partners or trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Person; (ii) such Person and one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of such Person.

“Trustee” means _________________________, and, subject to the provisions of Article Seven, shall also include its successors and assigns, and, if at any time there is more than one Person acting in such capacity hereunder, “Trustee” shall mean each such Person.  The term “Trustee” as used with respect to a particular series of the Securities shall mean the trustee with respect to that series.
“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.
“U.S.A. Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56, as amended and signed into law October 26, 2001. 
ARTICLE 2
 
ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES 

Section 2.01    Designation and Terms of Securities    .
(a)    The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited.  The Securities may be issued in one or more series up to the aggregate principal amount of Securities of that series from time to time authorized by or pursuant to a Board Resolution or pursuant to one or more indentures supplemental hereto.  Prior to the initial issuance of Securities of any series, there shall be established in or pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental hereto: 
(1)    the title of the Securities of the series (which shall distinguish the Securities of that series from all other Securities); 
(2)    any limit upon the aggregate principal amount of the Securities of that series that may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of that series); 
(3)    the maturity date or dates on which the principal of the Securities of the series is payable; 
(4)    the form of the Securities of the series including the form of the certificate of authentication for such series; 
(5)    the applicability of any guarantees;

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(6)    whether or not the Securities will be secured or unsecured, and the terms of any secured debt;
(7)    whether the Securities rank as senior debt, senior subordinated debt, subordinated debt or any combination thereof, and the terms of any subordination;
(8)    if the price (expressed as a percentage of the aggregate principal amount thereof) at which such Securities will be issued is a price other than the principal amount thereof, the portion of the principal amount thereof payable upon declaration of acceleration of the maturity thereof, or if applicable, the portion of the principal amount of such Securities that is convertible into another security or the method by which any such portion shall be determined; 
(9)    the interest rate or rates, which may be fixed or variable, or the method for determining the rate and the date interest will begin to accrue, the dates interest will be payable and the regular record dates for interest payment dates or the method for determining such dates; 
(10)    the Company’s right, if any, to defer the payment of interest and the maximum length of any such deferral period; 
(11)    if applicable, the date or dates after which, or the period or periods during which, and the price or prices at which, the Company may at its option, redeem the series of Securities pursuant to any optional or provisional redemption provisions and the terms of those redemption provisions; 
(12)    the date or dates, if any, on which, and the price or prices at which the Company is obligated, pursuant to any mandatory sinking fund or analogous fund provisions or otherwise, to redeem, or at the Securityholder’s option to purchase, the series of Securities and the currency or currency unit in which the Securities are payable; 
(13)    the denominations in which the Securities of the series shall be issuable, if other than denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof; 
(14)    any and all terms, if applicable, relating to any auction or remarketing of the Securities of that series and any security for the obligations of the Company with respect to such Securities and any other terms which may be advisable in connection with the marketing of Securities of that series; 
(15)    whether the Securities of the series shall be issued in whole or in part in the form of a Global Security or Securities; the terms and conditions, if any, upon which such Global Security or Securities may be exchanged in whole or in part for other individual Securities; and the Depositary for such Global Security or Securities; 
(16)    if applicable, the provisions relating to conversion or exchange of any Securities of the series and the terms and conditions upon which such Securities will be so convertible or exchangeable, including the conversion or exchange price, as applicable, or how it will be calculated and may be adjusted, any mandatory or optional (at the Company’s option or 

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the holders’ option) conversion or exchange features, the applicable conversion or exchange period and the manner of settlement for any conversion or exchange, which may, without limitation, include the payment of cash as well as the delivery of securities; 
(17)    if other than the full principal amount thereof, the portion of the principal amount of Securities of the series which shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.01; 
(18)    additions to or changes in the covenants applicable to the series of Securities being issued, including, among others, the consolidation, merger or sale covenant;
(19)    additions to or changes in the Events of Default with respect to the Securities and any change in the right of the Trustee or the Securityholders to declare the principal, premium, if any, and interest, if any, with respect to such Securities to be due and payable; 
(20)    additions to or changes in or deletions of the provisions relating to covenant defeasance and legal defeasance; 
(21)    additions to or changes in the provisions relating to satisfaction and discharge of this Indenture;  
(22)    additions to or changes in the provisions relating to the modification of this Indenture both with and without the consent of Securityholders of Securities issued under this Indenture;
(23)    the currency of payment of Securities if other than U.S. dollars and the manner of determining the equivalent amount in U.S. dollars;
(24)    whether interest will be payable in cash or additional Securities at the Company’s or the Securityholders’ option and the terms and conditions upon which the election may be made;
(25)    the terms and conditions, if any, upon which the Company shall pay amounts in addition to the stated interest, premium, if any and principal amounts of the Securities of the series to any Securityholder that is not a “United States person” for federal tax purposes; 
(26)    any restrictions on transfer, sale or assignment of the Securities of the series; and
(27)    any other specific terms, preferences, rights or limitations of, or restrictions on, the Securities, any other additions or changes in the provisions of this Indenture, and any terms that may be required by us or advisable under applicable laws or regulations.
All Securities of any one series shall be substantially identical except as may otherwise be provided in or pursuant to any such Board Resolution or in any indentures supplemental hereto.

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If any of the terms of the series are established by action taken pursuant to a Board Resolution of the Company, a copy of an appropriate record of such action shall be certified by the secretary or an assistant secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officer’s Certificate of the Company setting forth the terms of the series.
Securities of any particular series may be issued at various times, with different dates on which the principal or any installment of principal is payable, with different rates of interest, if any, or different methods by which rates of interest may be determined, with different dates on which such interest may be payable and with different redemption dates.
Section 2.02    Form of Securities and Trustee’s Certificate    .
The Securities of any series and the Trustee’s certificate of authentication to be borne by such Securities shall be substantially of the tenor and purport as set forth in one or more indentures supplemental hereto or as provided in a Board Resolution, and set forth in an Officer’s Certificate, and they may have such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange on which Securities of that series may be listed, or to conform to usage.
Section 2.03    Denominations: Provisions for Payment    .
The Securities shall be issuable as registered Securities and in the denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, subject to Section 2.01(a)(13).  The Securities of a particular series shall bear interest payable on the dates and at the rate specified with respect to that series.  Subject to Section 2.01(a)(23), the principal of and the interest on the Securities of any series, as well as any premium thereon in case of redemption or repurchase thereof prior to maturity, and any cash amount due upon conversion or exchange thereof, shall be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the office or agency of the Company maintained for that purpose.  Each Security shall be dated the date of its authentication.  Interest on the Securities shall be computed on the basis of a 360-day year composed of twelve 30-day months.
The interest installment on any Security that is payable, and is punctually paid or duly provided for, on any Interest Payment Date for Securities of that series shall be paid to the Person in whose name said Security (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest installment.  In the event that any Security of a particular series or portion thereof is called for redemption and the redemption date is subsequent to a regular record date with respect to any Interest Payment Date and prior to such Interest Payment Date, interest on such Security will be paid upon presentation and surrender of such Security as provided in Section 3.03.
Any interest on any Security that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date for Securities of the same series (herein called “Defaulted Interest”) shall forthwith cease to be payable to the registered holder on the relevant regular

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record date by virtue of having been such holder; and such Defaulted Interest shall be paid by the Company, at its election, as provided in clause (1) or clause (2) below: 
(1)    The Company may make payment of any Defaulted Interest on Securities to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered in the Security Register at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner: the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided.  Thereupon the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall not be more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be sent, to each Securityholder not less than 10 days prior to such special record date.  Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been sent as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered in the Security Register on such special record date.
(2)    The Company may make payment of any Defaulted Interest on any Securities in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.
Unless otherwise set forth in a Board Resolution or one or more indentures supplemental hereto establishing the terms of any series of Securities pursuant to Section 2.01 hereof, the term “regular record date” as used in this Section with respect to a series of Securities and any Interest Payment Date for such series shall mean either the fifteenth day of the month immediately preceding the month in which an Interest Payment Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the first day of a month, or the first day of the month in which an Interest Payment Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the fifteenth day of a month, whether or not such date is a Business Day.
Subject to the foregoing provisions of this Section, each Security of a series delivered under this Indenture upon transfer of or in exchange for or in lieu of any other Security of such series shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Security.

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Section 2.04    Execution and Authentications    .
The Securities shall be signed on behalf of the Company by one of its Officers.  Signatures may be in the form of a manual or facsimile signature.
The Company may use the facsimile signature of any Person who shall have been an Officer (at the time of execution), notwithstanding the fact that at the time the Securities shall be authenticated and delivered or disposed of such Person shall have ceased to be such an officer of the Company.  The Securities may contain such notations, legends or endorsements required by law, stock exchange rule or usage.  Each Security shall be dated the date of its authentication by the Trustee.
A Security shall not be valid until authenticated manually by an authorized signatory of the Trustee, or by an Authenticating Agent.  Such signature shall be conclusive evidence that the Security so authenticated has been duly authenticated and delivered hereunder and that the holder is entitled to the benefits of this Indenture.  At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication, together with a written order of the Company for the authentication and delivery of such Securities, signed by an Officer, and the Trustee in accordance with such written order shall authenticate and deliver such Securities.
Upon the Company’s delivery of any such authentication order to the Trustee at any time after the initial issuance of Securities under this Indenture, the Trustee shall be provided with, and (subject to Sections 315(a) through 315(d) of the Trust Indenture Act) shall be fully protected in relying upon, (1) an Opinion of Counsel or reliance letter and (2) an Officer’s Certificate stating that all conditions precedent to the execution, authentication and delivery of such Securities are in conformity with the provisions of this Indenture. 
The Trustee shall not be required to authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner that is not reasonably acceptable to the Trustee.
Section 2.05    Registration of Transfer and Exchange    .
(a)    Securities of any series may be exchanged upon presentation thereof at the office or agency of the Company designated for such purpose, for other Securities of such series of authorized denominations, and for a like aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, all as provided in this Section.  In respect of any Securities so surrendered for exchange, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in exchange therefor the Security or Securities of the same series that the Securityholder making the exchange shall be entitled to receive, bearing numbers not contemporaneously outstanding.
(b)    The Company shall keep, or cause to be kept, at its office or agency designated for such purpose a register or registers (herein referred to as the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall register the Securities and the transfers of Securities as in this Article provided and which at all

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reasonable times shall be open for inspection by the Trustee.  The registrar for the purpose of registering Securities and transfer of Securities as herein provided shall be appointed as authorized by Board Resolution or Supplemental Indenture (the “Security Registrar”).
Upon surrender for transfer of any Security at the office or agency of the Company designated for such purpose, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in the name of the transferee or transferees a new Security or Securities of the same series as the Security presented for a like aggregate principal amount.
The Company initially appoints the Trustee as initial Security Registrar for each series of Securities
All Securities presented or surrendered for exchange or registration of transfer, as provided in this Section, shall be accompanied (if so required by the Company or the Security Registrar) by a written instrument or instruments of transfer, in form satisfactory to the Company or the Security Registrar, duly executed by the registered holder or by such holder’s duly authorized attorney in writing.
(c)    Except as provided pursuant to Section 2.01 pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental to this Indenture, no service charge shall be made for any exchange or registration of transfer of Securities, or issue of new Securities in case of partial redemption of any series or repurchase, conversion or exchange of less than the entire principal amount of a Security, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, other than exchanges pursuant to Section 2.06, Section 3.03(b) and Section 9.04 not involving any transfer.
(d)    The Company and the Security Registrar shall not be required (i) to issue, exchange or register the transfer of any Securities during a period beginning at the opening of business 15 days before the day of the sending of a notice of redemption of less than all the Outstanding Securities of the same series and ending at the close of business on the day of such sending, nor (ii) to register the transfer of or exchange any Securities of any series or portions thereof called for redemption or surrendered for repurchase, but not validly withdrawn, other than the unredeemed portion of any such Securities being redeemed in part or not surrendered for repurchase, as the case may be.  The provisions of this Section 2.05 are, with respect to any Global Security, subject to Section 2.11 hereof.
The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among Depositary participants or beneficial owners of interests in any Global Security) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

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Section 2.06    Temporary Securities    .
Pending the preparation of definitive Securities of any series, the Company may execute, and the Trustee shall authenticate and deliver, temporary Securities (printed, lithographed or typewritten) of any authorized denomination.  Such temporary Securities shall be substantially in the form of the definitive Securities in lieu of which they are issued, but with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be determined by the Company.  Every temporary Security of any series shall be executed by the Company and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like effect, as the definitive Securities of such series.  Without unnecessary delay the Company will execute and will furnish definitive Securities of such series and thereupon any or all temporary Securities of such series may be surrendered in exchange therefor (without charge to the Securityholders), at the office or agency of the Company designated for the purpose, and the Trustee shall authenticate and such office or agency shall deliver in exchange for such temporary Securities an equal aggregate principal amount of definitive Securities of such series, unless the Company advises the Trustee to the effect that definitive Securities need not be executed and furnished until further notice from the Company.  Until so exchanged, the temporary Securities of such series shall be entitled to the same benefits under this Indenture as definitive Securities of such series authenticated and delivered hereunder.
Section 2.07    Mutilated, Destroyed, Lost or Stolen Securities    .
In case any temporary or definitive Security shall become mutilated or be destroyed, lost or stolen, the Company (subject to the next succeeding sentence) shall execute, and upon the Company’s request the Trustee (subject as aforesaid) shall authenticate and deliver, a new Security of the same series, bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Security, or in lieu of and in substitution for the Security so destroyed, lost or stolen.  In every case the applicant for a substituted Security shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their satisfaction of the destruction, loss or theft of the applicant’s Security and of the ownership thereof.  The Trustee may authenticate any such substituted Security and deliver the same upon the written request or authorization of any officer of the Company.  Upon the issuance of any substituted Security, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.
In case any Security that has matured or is about to mature shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Security, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Security) if the applicant for such payment shall furnish to the Company and the Trustee such security or indemnity as they may require to save them harmless, and, in case of destruction, loss or theft, evidence to the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Security and of the ownership thereof.

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Every replacement Security issued pursuant to the provisions of this Section shall constitute an additional contractual obligation of the Company whether or not the mutilated, destroyed, lost or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of the same series duly issued hereunder.  All Securities shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) any and all other rights or remedies, notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.
Section 2.08    Cancellation    .
All Securities surrendered for the purpose of payment, redemption, repurchase, exchange, registration of transfer or conversion shall, if surrendered to the Company or any paying agent (or any other applicable agent), be delivered to the Trustee for cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no Securities shall be issued in lieu thereof except as expressly required or permitted by any of the provisions of this Indenture.  On request of the Company at the time of such surrender, the Trustee shall deliver to the Company canceled Securities held by the Trustee.  In the absence of such request the Trustee may dispose of canceled Securities in accordance with its standard procedures and deliver a certificate of disposition to the Company.  If the Company shall otherwise acquire any of the Securities, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are delivered to the Trustee for cancellation.
Section 2.09    Benefits of Indenture    .
Nothing in this Indenture or in the Securities, express or implied, shall give or be construed to give to any Person, other than the parties hereto and the holders of the Securities any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision herein contained; all such covenants, conditions and provisions being for the sole benefit of the parties hereto and of the holders of the Securities.
Section 2.10    Authenticating Agent    .
So long as any of the Securities of any series remain Outstanding there may be an Authenticating Agent for any or all such series of Securities which the Trustee shall have the right to appoint.  Said Authenticating Agent shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon exchange, transfer or partial redemption, repurchase or conversion thereof, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder.  All references in this Indenture to the authentication of Securities by the Trustee shall be deemed to include authentication by an Authenticating Agent for such series.  Each Authenticating Agent shall be acceptable to the Company and shall be a corporation that has a combined capital and surplus, as most recently reported or determined by it, sufficient under the laws of any jurisdiction under which it is organized or in which it is doing business to 

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conduct a trust business, and that is otherwise authorized under such laws to conduct such business and is subject to supervision or examination by federal or state authorities.  If at any time any Authenticating Agent shall cease to be eligible in accordance with these provisions, it shall resign immediately.
Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee and to the Company.  The Trustee may at any time (and upon request by the Company shall) terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company.  Upon resignation, termination or cessation of eligibility of any Authenticating Agent, the Trustee may appoint an eligible successor Authenticating Agent acceptable to the Company.  Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder as if originally named as an Authenticating Agent pursuant hereto.
Section 2.11    Global Securities    .
(a)    If the Company shall establish pursuant to Section 2.01 that the Securities of a particular series are to be issued as a Global Security, then the Company shall execute and the Trustee shall, in accordance with Section 2.04, authenticate and deliver, a Global Security that (i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all of the Outstanding Securities of such series, (ii) shall be registered in the name of the Depositary or its nominee, (iii) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction (or if the Depositary names the Trustee as its custodian, retained by the Trustee), and (iv) shall bear a legend substantially to the following effect: “Except as otherwise provided in Section 2.11 of the Indenture, this Security may be transferred, in whole but not in part, only to another nominee of the Depositary or to a successor Depositary or to a nominee of such successor Depositary.” 
(b)    Notwithstanding the provisions of Section 2.05, the Global Security of a series may be transferred, in whole but not in part and in the manner provided in Section 2.05, only to another nominee of the Depositary for such series, or to a successor Depositary for such series selected or approved by the Company or to a nominee of such successor Depositary.
(c)    If at any time the Depositary for a series of the Securities notifies the Company that it is unwilling or unable to continue as Depositary for such series or if at any time the Depositary for such series shall no longer be registered or in good standing under the Exchange Act, or other applicable statute or regulation, and a successor Depositary for such series is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such condition, as the case may be, or if an Event of Default has occurred and is continuing and the Company has received a request from the Depositary or from the Trustee, this Section 2.11 shall no longer be applicable to the Securities of such series and the Company will execute, and subject to Section 2.04, the Trustee will authenticate and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security.  In addition, the Company may at any time determine that the Securities of any series shall no longer be represented by a Global Security and that the 

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provisions of this Section 2.11 shall no longer apply to the Securities of such series.  In such event the Company will execute and, subject to Section 2.04, the Trustee, upon receipt of an Officer’s Certificate evidencing such determination by the Company, will authenticate and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security.  Upon the exchange of the Global Security for such Securities in definitive registered form without coupons, in authorized denominations, the Global Security shall be canceled by the Trustee.  Such Securities in definitive registered form issued in exchange for the Global Security pursuant to this Section 2.11(c) shall be registered in such names and in such authorized denominations as the Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee.  The Trustee shall deliver such Securities to the Depositary for delivery to the Persons in whose names such Securities are so registered.
Section 2.12    CUSIP Numbers    .
The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers.  The Company will promptly notify the Trustee of any change in the “CUSIP” numbers.

ARTICLE 3
REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS 

Section 3.01    Redemption    .
The Company may redeem the Securities of any series issued hereunder on and after the dates and in accordance with the terms established for such series pursuant to Section 2.01 hereof.
Section 3.02    Notice of Redemption    .
(a)    In case the Company shall desire to exercise such right to redeem all or, as the case may be, a portion of the Securities of any series in accordance with any right the Company reserved for itself to do so pursuant to Section 2.01 hereof, the Company shall, or shall cause the Trustee to, give notice of such redemption to holders of the Securities of such series to be redeemed by mailing, first class postage prepaid (or with regard to any Global Security held in book entry form, by electronic mail in accordance with the applicable procedures of the Depositary), a notice of such redemption not less than 30 days and not more than 90 days before the date fixed for redemption of that series to such Securityholders, unless a shorter period is specified in the Securities to be redeemed.  Any notice that is mailed in the manner herein 

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provided shall be conclusively presumed to have been duly given, whether or not the registered holder receives the notice.  In any case, failure duly to give such notice to the holder of any Security of any series designated for redemption in whole or in part, or any defect in the notice, shall not affect the validity of the proceedings for the redemption of any other Securities of such series or any other series.  In the case of any redemption of Securities prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officer’s Certificate evidencing compliance with any such restriction.
Each such notice of redemption shall identify the Securities to be redeemed (including CUSIP numbers, if any), specify the date fixed for redemption and the redemption price at which Securities of that series are to be redeemed, and shall state that payment of the redemption price of such Securities to be redeemed will be made at the office or agency of the Company, upon presentation and surrender of such Securities, that interest accrued to the date fixed for redemption will be paid as specified in said notice, that from and after said date interest will cease to accrue and that the redemption is from a sinking fund, if such is the case.  If less than all the Securities of a series are to be redeemed, the notice to the holders of Securities of that series to be redeemed in part shall specify the particular Securities to be so redeemed.
In case any Security is to be redeemed in part only, the notice that relates to such Security shall state the portion of the principal amount thereof to be redeemed, and shall state that on and after the redemption date, upon surrender of such Security, a new Security or Securities of such series in principal amount equal to the unredeemed portion thereof will be issued.
(b)    If less than all the Securities of a series are to be redeemed, the Company shall give the Trustee at least 45 days’ notice (unless a shorter notice shall be satisfactory to the Trustee) in advance of the date fixed for redemption as to the aggregate principal amount of Securities of the series to be redeemed, and thereupon the Securities to be redeemed shall be selected, by lot, on a pro rata basis, or in such other manner as the Company shall deem appropriate and fair in its discretion and that may provide for the selection of a portion or portions (equal to one thousand U.S. dollars ($1,000) or any integral multiple thereof) of the principal amount of such Securities of a denomination larger than $1,000, the Securities to be redeemed and shall thereafter promptly notify the Company in writing of the numbers of the Securities to be redeemed, in whole or in part.  The Company may, if and whenever it shall so elect, by delivery of instructions signed on its behalf by an Officer, instruct the Trustee or any paying agent to call all or any part of the Securities of a particular series for redemption and to give notice of redemption in the manner set forth in this Section, such notice to be in the name of the Company or its own name as the Trustee or such paying agent may deem advisable.  In any case in which notice of redemption is to be given by the Trustee or any such paying agent, the Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such paying agent, as the case may be, such Security Register, transfer books or other records, or suitable copies or extracts therefrom, sufficient to enable the Trustee or such paying agent to give any notice by mail that may be required under the provisions of this Section.

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Section 3.03    Payment Upon Redemption    .
(a)    If the giving of notice of redemption shall have been completed as above provided, the Securities or portions of Securities of the series to be redeemed specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to, but excluding, the date fixed for redemption and interest on such Securities or portions of Securities shall cease to accrue on and after the date fixed for redemption, unless the Company shall default in the payment of such redemption price and accrued interest with respect to any such Security or portion thereof.  On presentation and surrender of such Securities on or after the date fixed for redemption at the place of payment specified in the notice, said Securities shall be paid and redeemed at the applicable redemption price for such series, together with interest accrued thereon to, but excluding, the date fixed for redemption (but if the date fixed for redemption is an Interest Payment Date, the interest installment payable on such date shall be payable to the registered holder at the close of business on the applicable record date pursuant to Section 2.03).
(b)    Upon presentation of any Security of such series that is to be redeemed in part only, the Company shall execute and the Trustee shall authenticate and the office or agency where the Security is presented shall deliver to the Securityholder thereof, at the expense of the Company, a new Security of the same series of authorized denominations in principal amount equal to the unredeemed portion of the Security so presented.
Section 3.04    Sinking Fund    .
The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any sinking fund for the retirement of Securities of a series, except as otherwise specified as contemplated by Section 2.01 for Securities of such series. 
The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an “optional sinking fund payment”.  If provided for by the terms of Securities of any series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 3.05.  Each sinking fund payment shall be applied to the redemption of Securities of any series as provided for by the terms of Securities of such series.
Section 3.05    Satisfaction of Sinking Fund Payments with Securities    .
The Company (i) may deliver Outstanding Securities of a series and (ii) may apply as a credit Securities of a series that have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to be made pursuant to the terms of such Securities as provided for by the terms of such series, provided that such Securities have not been previously so credited.  Such Securities shall be received and credited for such 

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purpose by the Trustee at the redemption price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.
Section 3.06    Redemption of Securities for Sinking Fund    .
Not less than 45 days prior to each sinking fund payment date for any series of Securities (unless a shorter period shall be satisfactory to the Trustee), the Company will deliver to the Trustee an Officer’s Certificate specifying the amount of the next ensuing sinking fund payment for that series pursuant to the terms of the series, the portion thereof, if any, that is to be satisfied by delivering and crediting Securities of that series pursuant to Section 3.05 and the basis for such credit and will, together with such Officer’s Certificate, deliver to the Trustee any Securities to be so delivered.  Not less than 30 days before each such sinking fund payment date the Securities to be redeemed upon such sinking fund payment date shall be selected in the manner specified in Section 3.02 and the Company shall cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.02.  Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Section 3.03.
ARTICLE 4
 
COVENANTS 

Section 4.01    Payment of Principal, Premium and Interest    .
The Company will duly and punctually pay or cause to be paid the principal of (and premium, if any) and interest on the Securities of that series at the time and place and in the manner provided herein and established with respect to such Securities. Payments of principal on the Securities may be made at the time provided herein and established with respect to such Securities by U.S. dollar check drawn on and mailed to the address of the Securityholder entitled thereto as such address shall appear in the Security Register, or U.S. dollar wire transfer to, a U.S. dollar account if such Securityholder shall have furnished wire instructions to the Trustee no later than 15 days prior to the relevant payment date. Payments of interest on the Securities may be made at the time provided herein and established with respect to such Securities by U.S. dollar check mailed to the address of the Securityholder entitled thereto as such address shall appear in the Security Register, or U.S. dollar wire transfer to, a U.S. dollar account if such Securityholder shall have furnished wire instructions in writing to the Security Registrar and the Trustee no later than 15 days prior to the relevant payment date.  
Section 4.02    Maintenance of Office or Agency    .
So long as any series of the Securities remain Outstanding, the Company agrees to maintain an office or agency with respect to each such series and at such other location or locations as may be designated as provided in this Section 4.02, where (i) Securities of that series may be presented for payment, (ii) Securities of that series may be presented as herein above authorized for registration of transfer and exchange, and (iii) notices and demands to or upon the Company in respect of the Securities of that series and this Indenture may be given or served, such designation to continue with respect to such office or agency until the Company shall, by 

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written notice signed by any officer authorized to sign an Officer’s Certificate and delivered to the Trustee, designate some other office or agency for such purposes or any of them.  If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, notices and demands.  The Company initially appoints the Corporate Trust Office of the Trustee as its paying agent with respect to the Securities.
Section 4.03    Paying Agents    .
(a)    If the Company shall appoint one or more paying agents for all or any series of the Securities, other than the Trustee, the Company will cause each such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section: 
(1)    that it will hold all sums held by it as such agent for the payment of the principal of (and premium, if any) or interest on the Securities of that series (whether such sums have been paid to it by the Company or by any other obligor of such Securities) in trust for the benefit of the Persons entitled thereto; 
(2)    that it will give the Trustee notice of any failure by the Company (or by any other obligor of such Securities) to make any payment of the principal of (and premium, if any) or interest on the Securities of that series when the same shall be due and payable; 
(3)    that it will, at any time during the continuance of any failure referred to in the preceding paragraph (a)(2) above, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such paying agent; and 
(4)    that it will perform all other duties of paying agent as set forth in this Indenture.
(b)    If the Company shall act as its own paying agent with respect to any series of the Securities, it will on or before each due date of the principal of (and premium, if any) or interest on Securities of that series, set aside, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay such principal (and premium, if any) or interest so becoming due on Securities of that series until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of such action, or any failure (by it or any other obligor on such Securities) to take such action.  Whenever the Company shall have one or more paying agents for any series of Securities, it will, prior to each due date of the principal of (and premium, if any) or interest on any Securities of that series, deposit with the paying agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee of this action or failure so to act.

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(c)    Notwithstanding anything in this Section to the contrary, (i) the agreement to hold sums in trust as provided in this Section is subject to the provisions of Section 11.05, and (ii) the Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or direct any paying agent to pay, to the Trustee all sums held in trust by the Company or such paying agent, such sums to be held by the Trustee upon the same terms and conditions as those upon which such sums were held by the Company or such paying agent; and, upon such payment by the Company or any paying agent to the Trustee, the Company or such paying agent shall be released from all further liability with respect to such money.
Section 4.04    Appointment to Fill Vacancy in Office of Trustee    .
The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all times be a Trustee hereunder.
ARTICLE 5
 
SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE 

Section 5.01    Company to Furnish Trustee Names and Addresses of Securityholders    .
The Company will furnish or cause to be furnished to the Trustee (a) within 15 days after each regular record date (as defined in Section 2.03) a list, in such form as the Trustee may reasonably require, of the names and addresses of the holders of each series of Securities as of such regular record date, provided that the Company shall not be obligated to furnish or cause to furnish such list at any time that the list shall not differ in any respect from the most recent list furnished to the Trustee by the Company and (b) at such other times as the Trustee may request in writing within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished; provided, however, that, in either case, no such list need be furnished for any series for which the Trustee shall be the Security Registrar.
Section 5.02    Preservation Of Information; Communications With Securityholders    .
(a)    The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders of Securities contained in the most recent list furnished to it as provided in Section 5.01 and as to the names and addresses of holders of Securities received by the Trustee in its capacity as Security Registrar (if acting in such capacity).
(b)    The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt of a new list so furnished.
(c)    Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act with other Securityholders with respect to their rights under this Indenture or 

20

under the Securities, and, in connection with any such communications, the Trustee shall satisfy its obligations under Section 312(b) of the Trust Indenture Act in accordance with the provisions of Section 312(b) of the Trust Indenture Act.
Section 5.03    Reports by the Company    .
(a)    The Company will at all times comply with Section 314(a) of the Trust Indenture Act.  The Company covenants and agrees to provide (which delivery may be via electronic mail) to the Trustee within 30 days, after the Company files the same with the Commission, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) that the Company is required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; provided, however, the Company shall not be required to deliver to the Trustee any correspondence filed with the Commission or any materials for which the Company has sought and received confidential treatment by the Commission; and provided further, that so long as such filings by the Company are available on the Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR), or any successor system, such filings shall be deemed to have been filed with the Trustee for purposes hereof without any further action required by the Company. For the avoidance of doubt, a failure by the Company to file annual reports, information and other reports with the Commission within the time period prescribed thereof by the Commission shall not be deemed a breach of this Section 5.03. 
(b)    Delivery of reports, information and documents to the Trustee under Section 5.03 is for informational purposes only and the information and the Trustee’s receipt of the foregoing shall not constitute constructive notice of any information contained therein, or determinable from information contained therein including the Company’s compliance with any of their covenants thereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate).  The Trustee is under no duty to examine any such reports, information or documents delivered to the Trustee or filed with the Commission via EDGAR to ensure compliance with the provision of this Indenture or to ascertain the correctness or otherwise of the information or the statements contained therein.  The Trustee shall have no responsibility or duty whatsoever to ascertain or determine whether the above referenced filings with the Commission on EDGAR (or any successor system) has occurred.
Section 5.04    Reports by the Trustee    .
(a)    If required by Section 313(a) of the Trust Indenture Act, the Trustee, within sixty (60) days after each May 1, shall send to the Securityholders a brief report dated as of such May 1, which complies with Section 313(a) of the Trust Indenture Act.
(b)    The Trustee shall comply with Section 313(b) and 313(c) of the Trust Indenture Act.
(c)    A copy of each such report shall, at the time of such transmission to Securityholders, be filed by the Trustee with the Company, with each securities exchange upon 

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which any Securities are listed (if so listed) and also with the Commission.  The Company agrees to notify the Trustee when any Securities become listed on any securities exchange.
ARTICLE 6

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT 

Section 6.01    Events of Default    .
(a)    Whenever used herein with respect to Securities of a particular series, “Event of Default” means any one or more of the following events that has occurred and is continuing: 
(1)    the Company defaults in the payment of any installment of interest upon any of the Securities of that series, as and when the same shall become due and payable, and such default continues for a period of 90 days; provided, however, that a valid extension of an interest payment period by the Company in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of interest for this purpose;
(2)    the Company defaults in the payment of the principal of (or premium, if any, on) any of the Securities of that series as and when the same shall become due and payable whether at maturity, upon redemption, by declaration or otherwise, or in any payment required by any sinking or analogous fund established with respect to that series; provided, however, that a valid extension of the maturity of such Securities in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of principal or premium, if any; 
(3)    the Company fails to observe or perform any other of its covenants or agreements with respect to that series contained in this Indenture or otherwise established with respect to that series of Securities pursuant to Section 2.01 hereof (other than a covenant or agreement that has been expressly included in this Indenture solely for the benefit of one or more series of Securities other than such series) for a period of 90 days after the date on which written notice of such failure, requiring the same to be remedied and stating that such notice is a “Notice of Default” hereunder, shall have been given to the Company by the Trustee, by registered or certified mail, or to the Company and the Trustee by the holders of at least 25% in principal amount of the Securities of that series at the time Outstanding; 
(4)    the Company pursuant to or within the meaning of any Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property or (iv) makes a general assignment for the benefit of its creditors; or 
(5)    a court of competent jurisdiction enters an order under any Bankruptcy Law that (i) is for relief against the Company in an involuntary case, (ii) appoints a Custodian of the Company for all or substantially all of its property or (iii) orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 90 days.

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(b)    In each and every such case (other than an Event of Default specified in clause (4) or clause (5) above), unless the principal of all the Securities of that series shall have already become due and payable, either the Trustee or the holders of not less than 25% in aggregate principal amount of the Securities of that series then Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by such Securityholders), may declare the principal of (and premium, if any, on) and accrued and unpaid interest on all the Securities of that series to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable.  If an Event of Default specified in clause (4) or clause (5) above occurs, the principal of and accrued and unpaid interest on all the Securities of that series shall automatically be immediately due and payable without any declaration or other act on the part of the Trustee or the holders of the Securities.
(c)    At any time after the principal of (and premium, if any, on) and accrued and unpaid interest on the Securities of that series shall have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the holders of a majority in aggregate principal amount of the Securities of that series then Outstanding hereunder, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: (i) the Company has paid or deposited with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of that series and the principal of (and premium, if any, on) any and all Securities of that series that shall have become due otherwise than by acceleration (with interest upon such principal and premium, if any, and, to the extent that such payment is enforceable under applicable law, upon overdue installments of interest, at the rate per annum expressed in the Securities of that series to the date of such payment or deposit) and the amount payable to the Trustee under Section 7.06, and (ii) any and all Events of Default under the Indenture with respect to such series, other than the nonpayment of principal on (and premium, if any, on) and accrued and unpaid interest on Securities of that series that shall not have become due by their terms, shall have been remedied or waived as provided in Section 6.06.
No such rescission and annulment shall extend to or shall affect any subsequent default or impair any right consequent thereon.
(d)    In case the Trustee shall have proceeded to enforce any right with respect to Securities of that series under this Indenture and such proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case, subject to any determination in such proceedings, the Company and the Trustee shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the Company and the Trustee shall continue as though no such proceedings had been taken.
Section 6.02    Collection of Indebtedness and Suits for Enforcement by Trustee    .
(a)    The Company covenants that (i) in case it shall default in the payment of any installment of interest on any of the Securities of a series, or in any payment required by any sinking or analogous fund established with respect to that series as and when the same shall have become due and payable, and such default shall have continued for a period of 90 days, or (ii) in case it shall default in the payment of the principal of (or premium, if any, on) any of the 

23

Securities of a series when the same shall have become due and payable, whether upon maturity of the Securities of a series or upon redemption or upon declaration or otherwise then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Securities of that series, the whole amount that then shall have been become due and payable on all such Securities for principal (and premium, if any) or interest, or both, as the case may be, with interest upon the overdue principal (and premium, if any) and (to the extent that payment of such interest is enforceable under applicable law) upon overdue installments of interest at the rate per annum expressed in the Securities of that series; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, and the amount payable to the Trustee under Section 7.06.
(b)    If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or other obligor upon the Securities of that series and collect the moneys adjudged or decreed to be payable in the manner provided by law or equity out of the property of the Company or other obligor upon the Securities of that series, wherever situated.
(c)    In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, readjustment, arrangement, composition or judicial proceedings affecting the Company, or its creditors or property, the Trustee shall have power to intervene in such proceedings and take any action therein that may be permitted by the court and shall (except as may be otherwise provided by law) be entitled to file such proofs of claim and other papers and documents as may be necessary or advisable in order to have the claims of the Trustee and of the holders of Securities of such series allowed for the entire amount due and payable by the Company under the Indenture at the date of institution of such proceedings and for any additional amount that may become due and payable by the Company after such date, and to collect and receive any moneys or other property payable or deliverable on any such claim, and to distribute the same after the deduction of the amount payable to the Trustee under Section 7.06; and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of the holders of Securities of such series to make such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to such Securityholders, to pay to the Trustee any amount due it under Section 7.06.
(d)    All rights of action and of asserting claims under this Indenture, or under any of the terms established with respect to Securities of that series, may be enforced by the Trustee without the possession of any of such Securities, or the production thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for payment to the Trustee of any amounts due under Section 7.06, be for the ratable benefit of the holders of the Securities of such series.
In case of an Event of Default hereunder, the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, 

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either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in the Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.
Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the Securities of that series or the rights of any Securityholder thereof or to authorize the Trustee to vote in respect of the claim of any Securityholder in any such proceeding.
Section 6.03    Application of Moneys Collected    .
Any moneys collected by the Trustee pursuant to this Article with respect to a particular series of Securities shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such moneys on account of principal (or premium, if any) or interest, upon presentation of the Securities of that series, and notation thereon of the payment, if only partially paid, and upon surrender thereof if fully paid: 
FIRST: To the payment of costs and expenses of collection and of all amounts payable to the Trustee under Section 7.06;
SECOND: To the payment of the amounts then due and unpaid upon Securities of such series for principal (and premium, if any) and interest, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal (and premium, if any) and interest, respectively; and 
THIRD: To the payment of the remainder, if any, to the Company or any other Person lawfully entitled thereto.
Section 6.04    Limitation on Suits    .
No holder of any Security of any series shall have any right by virtue or by availing of any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless (i) such Securityholder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof with respect to the Securities of such series specifying such Event of Default, as hereinbefore provided; (ii) the holders of not less than 25% in aggregate principal amount of the Securities of such series then Outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder; (iii) such Securityholder or Securityholders shall have offered to the Trustee indemnity satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such request; (iv) the Trustee for 90 days after its receipt of such notice, request and offer of indemnity, shall have failed to institute any such action, suit or proceeding and (v) during such 90 day period, the holders of a majority in principal amount of the Securities of that series do not give the Trustee a direction inconsistent with the request.

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Notwithstanding anything contained herein to the contrary or any other provisions of this Indenture, the right of any holder of any Security to receive payment of the principal of (and premium, if any) and interest on such Security, as therein provided, on or after the respective due dates expressed in such Security (or in the case of redemption, on the redemption date), or to institute suit for the enforcement of any such payment on or after such respective dates or redemption date, shall not be impaired or affected without the consent of such holder and by accepting a Security hereunder it is expressly understood, intended and covenanted by the taker and holder of every Security of such series with every other such taker and holder and the Trustee, that no one or more holders of Securities of such series shall have any right in any manner whatsoever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such Securities, or to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all holders of Securities of such series.  For the protection and enforcement of the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.
Section 6.05    Rights and Remedies Cumulative; Delay or Omission Not Waiver    .
(a)    Except as otherwise provided in Section 2.07, all powers and remedies given by this Article to the Trustee or to the Securityholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee or the holders of the Securities, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture or otherwise established with respect to such Securities.
(b)    No delay or omission of the Trustee or of any holder of any of the Securities to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or an acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given by this Article or by law to the Trustee or the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Securityholders.
Section 6.06    Control by Securityholders    .
The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding, determined in accordance with Section 8.04, shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee with respect to such series; provided, however, that such direction shall not be in conflict with any rule of law or with this Indenture or subject the Trustee in its sole discretion to personal liability.  Subject to the provisions of Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer or officers of the Trustee, determine that the proceeding so directed, subject to the Trustee’s duties under the Trust Indenture Act, would involve the Trustee in personal liability or might be unduly prejudicial to the Securityholders not involved in the proceeding.  The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding affected thereby, determined in accordance with Section 8.04, may on behalf of the holders of all of the Securities of such series waive any past default in the performance of any of the covenants contained herein or established pursuant to Section 2.01 with respect to such series and its consequences, except a default in the payment of the principal of, or premium, if any, or interest on, any of the Securities of that series as and when the same shall become due by the terms of such 

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Securities otherwise than by acceleration (unless such default has been cured and a sum sufficient to pay all matured installments of interest and principal and any premium has been deposited with the Trustee (in accordance with Section 6.01(c)).  Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of this Indenture and the Company, the Trustee and the holders of the Securities of such series shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.
Section 6.07    Undertaking to Pay Costs    .
All parties to this Indenture agree, and each holder of any Securities by such holder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder, or group of Securityholders, holding more than 10% in aggregate principal amount of the Outstanding Securities of any series, or to any suit instituted by any Securityholder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Security of such series, on or after the respective due dates expressed in such Security or established pursuant to this Indenture.
ARTICLE 7
 
CONCERNING THE TRUSTEE 

Section 7.01    Certain Duties and Responsibilities of Trustee    .
(a)    The Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing of all Events of Default with respect to the Securities of that series that may have occurred, shall undertake to perform with respect to the Securities of such series such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants shall be read into this Indenture against the Trustee.  In case an Event of Default with respect to the Securities of a series has occurred (that has not been cured or waived), the Trustee shall exercise with respect to Securities of that series such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his or her own affairs.

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(b)    No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that: 
(i)    prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing or waiving of all such Events of Default with respect to that series that may have occurred: 
(A)    the duties and obligations of the Trustee shall with respect to the Securities of such series be determined solely by the express provisions of this Indenture, and the Trustee shall not be liable with respect to the Securities of such series except for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 
(B)    in the absence of bad faith on the part of the Trustee, the Trustee may with respect to the Securities of such series conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions that by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture; 
(ii)    the Trustee shall not be liable to any Securityholder or to any other Person for any error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; 
(iii)    the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the holders of not less than a majority in principal amount of the Securities of any series at the time Outstanding relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture with respect to the Securities of that series; 
(iv)    none of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers if there is reasonable ground for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Indenture or adequate indemnity against such risk is not reasonably assured to it;
(v)    The Trustee shall not be required to give any bond or surety in respect of the performance of its powers or duties hereunder;
(vi)    The permissive right of the Trustee to do things enumerated in this Indenture shall not be construed as a duty of the Trustee; and

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(vii)    No Trustee shall have any duty or responsibility for any act or omission of any other Trustee appointed with respect to a series of Securities hereunder.
Section 7.02    Certain Rights of Trustee    .
Except as otherwise provided in Section 7.01: 
(a)    The Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 
(b)    Any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by a Board Resolution or an instrument signed in the name of the Company by any authorized Officer of the Company (unless other evidence in respect thereof is specifically prescribed herein); 
(c)    The Trustee may consult with counsel and the opinion or written advice of such counsel or, if requested, any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted hereunder in good faith and in reliance thereon; 
(d)    The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Securityholders pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee security or indemnity reasonably acceptable to the Trustee against the costs, expenses and liabilities that may be incurred therein or thereby; nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of an Event of Default with respect to a series of the Securities (that has not been cured or waived), to exercise with respect to Securities of that series such of the rights and powers vested in it by this Indenture, and to use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his or her own affairs; 
(e)    The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture; 
(f)    The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security, or other papers or documents or inquire as to the performance by the Company of one of its covenants under this Indenture, unless requested in writing so to do by the holders of not less than a majority in principal amount of the Outstanding Securities of the particular series affected thereby (determined as provided in Section 8.04); provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require security or indemnity reasonably acceptable to the Trustee against such costs, expenses or liabilities as a condition to so proceeding.  

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The reasonable expense of every such examination shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand; 
(g)        The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder;
(h)    In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances; 
(i)    In no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action; and
(j)    The Trustee agrees to accept and act upon instructions or directions pursuant to this Indenture sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods; provided, however, that such instructions or directions shall be signed by an authorized representative of the party providing such instructions or directions.  If the party elects to give the Trustee e-mail or facsimile instructions (or instructions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions, the Trustee’s understanding of such instructions shall be deemed controlling.  The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction.  The party providing electronic instructions agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, and the risk or interception and misuse by third parties.  The Trustee may request that the Company deliver an Officer’s Certificate setting forth the names of individuals and/or titles of officers authorized at such time to furnish the Trustee with Officer’s Certificates, Company Orders and any other matters or directions pursuant to this Indenture.
(k)    The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder and under the Securities, and each agent, custodian or other person employed to act under this Indenture.
(l)    The Trustee shall not be deemed to have knowledge of any Default or Event of Default (other than an Event of Default constituting the failure to pay the interest on, or the principal of, the Securities if the Trustee also serves the paying agent for such Securities) 

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until the Trustee shall have received written notification in the manner set forth in this Indenture or a Responsible Officer of the Trustee shall have obtained actual knowledge.  
Section 7.03    Trustee Not Responsible for Recitals or Issuance or Securities    .
(a)    The recitals contained herein and in the Securities shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same.  The Trustee shall not be responsible for any statement in any registration statement, prospectus, or any other document in connection with the sale of Securities. The Trustee shall not be responsible for any rating on the Securities or any action or omission of any rating agency.
(b)    The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities.  
(c)    The Trustee shall not be accountable for the use or application by the Company of any of the Securities or of the proceeds of such Securities, or for the use or application of any moneys paid over by the Trustee in accordance with any provision of this Indenture or established pursuant to Section 2.01, or for the use or application of any moneys received by any paying agent other than the Trustee.
Section 7.04    May Hold Securities    .
The Trustee or any paying agent or Security Registrar, in its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were not Trustee, paying agent or Security Registrar.
Section 7.05    Moneys Held in Trust    .
Subject to the provisions of Section 11.05, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by law.  The Trustee shall be under no liability for interest on any moneys received by it hereunder except such as it may agree with the Company to pay thereon.
Section 7.06    Compensation and Reimbursement    .
(a)      The Company shall pay to the Trustee for each of its capacities hereunder from time to time compensation for its services as the Company and the Trustee shall from time to time agree upon in writing.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred by it.  Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel.  
(b)    The Company shall indemnify each of the Trustee in each of its capacities hereunder against any loss, liability or expense (including the cost of defending itself and including the reasonable compensation and expenses of the Trustee’s agents and counsel) incurred by it except as set forth in Section 7.06(c) in the exercise or performance of its powers, rights or duties under this Indenture as Trustee or Agent.  The Trustee shall notify the Company 

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promptly of any claim for which it may seek indemnity.  The Company shall defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have one separate counsel and the Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld.  This indemnification shall apply to officers, directors, employees, shareholders and agents of the Trustee.
(c)    The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee through negligence or bad faith.
(d)    To ensure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities on all funds or property held or collected by the Trustee, except that held in trust to pay principal of or interest on particular Securities.  When the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 6.01(4) or (5), the expenses (including the reasonable fees and expenses of its counsel) and the compensation for services in connection therewith are to constitute expenses of administration under any bankruptcy law.  The provisions of this Section 7.06 shall survive the termination of this Indenture and the resignation or removal of the Trustee.
Section 7.07    Reliance on Officer’s Certificate    .
Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it reasonably necessary or desirable that a matter be proved or established prior to taking or suffering or omitting to take any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an Officer’s Certificate delivered to the Trustee and such certificate, in the absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted to be taken by it under the provisions of this Indenture upon the faith thereof.
Section 7.08    Disqualification; Conflicting Interests    .
If the Trustee has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the Company shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.
Section 7.09    Corporate Trustee Required; Eligibility    .
There shall at all times be a Trustee with respect to the Securities issued hereunder which shall at all times be a corporation organized and doing business under the laws of the United States of America or any state or territory thereof or of the District of Columbia, or a corporation or other Person permitted to act as trustee by the Commission, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least fifty million U.S. dollars ($50,000,000), and subject to supervision or examination by federal, state, territorial, or District of Columbia authority.

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If such corporation or other Person publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation or other Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  The Company may not, nor may any Person directly or indirectly controlling, controlled by, or under common control with the Company, serve as Trustee.  In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and with the effect specified in Section 7.10.
Section 7.10    Resignation and Removal; Appointment of Successor    .
(a)    The Trustee or any successor hereafter appointed may at any time resign with respect to the Securities of one or more series by giving written notice thereof to the Company and the Securityholders of such series.  Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee with respect to Securities of such series by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee.  If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the sending of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee with respect to Securities of such series, or any Securityholder of that series who has been a bona fide holder of a Security or Securities for at least six months may on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor trustee.  Such court may thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.
(b)    In case at any time any one of the following shall occur: 
(i)    the Trustee shall fail to comply with the provisions of Section 7.08 after written request therefor by the Company or by any Securityholder who has been a bona fide holder of a Security or Securities for at least six months; or 
(ii)    the Trustee shall cease to be eligible in accordance with the provisions of Section 7.09 and shall fail to resign after written request therefor by the Company or by any such Securityholder; or 
(iii)    the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of its property shall be appointed or consented to, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation; 
then, in any such case, the Company may remove the Trustee with respect to all Securities and appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or any Securityholder who has been a bona fide holder of a Security or 

33

Securities for at least six months may, on behalf of that holder and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee.  Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.
(c)    The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding may at any time remove the Trustee with respect to such series by so notifying the Trustee and the Company and may appoint a successor Trustee for such series with the consent of the Company.
(d)    Any resignation or removal of the Trustee and appointment of a successor trustee with respect to the Securities of a series pursuant to any of the provisions of this Section shall become effective upon acceptance of appointment by the successor trustee as provided in Section 7.11.
(e)    Any successor trustee appointed pursuant to this Section may be appointed with respect to the Securities of one or more series or all of such series, and at any time there shall be only one Trustee with respect to the Securities of any particular series.
Section 7.11    Acceptance of Appointment By Successor    .
(a)    In case of the appointment hereunder of a successor trustee with respect to all Securities, every such successor trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor trustee, such retiring Trustee shall, upon payment of any amounts due to it pursuant to the provisions of Section 7.06, execute and deliver an instrument transferring to such successor trustee all the rights, powers, and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor trustee all property and money held by such retiring Trustee hereunder.
(b)    In case of the appointment hereunder of a successor trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor trustee shall accept such appointment and which (i) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor trustee relates, (ii) shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (iii) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust, that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee and that no Trustee shall be responsible for any act or failure to act on the part of any other Trustee hereunder; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein, such retiring Trustee shall with respect to the Securities of that or those series to which the appointment of such 

34

successor trustee relates have no further responsibility for the exercise of rights and powers or for the performance of the duties and obligations vested in the Trustee under this Indenture, and each such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor trustee relates; but, on request of the Company or any successor trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor trustee, to the extent contemplated by such supplemental indenture, the property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor trustee relates.
(c)    Upon request of any such successor trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may be.
(d)    No successor trustee shall accept its appointment unless at the time of such acceptance such successor trustee shall be qualified and eligible under this Article.
(e)    Upon acceptance of appointment by a successor trustee as provided in this Section, the Company shall send notice of the succession of such trustee hereunder to the Securityholders.  If the Company fails to transmit such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be transmitted at the expense of the Company.
Section 7.12    Merger, Conversion, Consolidation or Succession to Business    .
Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee, including the administration of the trust created by this Indenture, shall be the successor of the Trustee hereunder, provided that such corporation shall be qualified under the provisions of Section 7.08 and eligible under the provisions of Section 7.09, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.  In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities.
Section 7.13    Preferential Collection of Claims Against the Company    .
The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship described in Section 311(b) of the Trust Indenture Act.  A Trustee who has 

35

resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent included therein.
Section 7.14    Notice of Default. 
If any Event of Default occurs and is continuing and if such Event of Default is known to a Responsible Officer of the Trustee, the Trustee shall send to each Securityholder in the manner and to the extent provided in Section 313(c) of the Trust Indenture Act notice of the Event of Default within the earlier of 90 days after it occurs and 30 days after it is known to a Responsible Officer of the Trustee or written notice of it is received by the Trustee, unless such Event of Default has been cured; provided, however, that, except in the case of a default in the payment of the principal of (or premium, if any) or interest on any Security, the Trustee shall be protected in withholding such notice if and so long as the Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interest of the Securityholders.
ARTICLE 8
CONCERNING THE SECURITYHOLDERS 

Section 8.01    Evidence of Action by Securityholders    .
Whenever in this Indenture it is provided that the holders of a majority or specified percentage in aggregate principal amount of the Securities of a particular series may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any such action the holders of such majority or specified percentage of that series have joined therein may be evidenced by any instrument or any number of instruments of similar tenor executed by such holders of Securities of that series in person or by agent or proxy appointed in writing.
If the Company shall solicit from the Securityholders of any series any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option, as evidenced by an Officer’s Certificate, fix in advance a record date for such series for the determination of Securityholders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but the Company shall have no obligation to do so.  If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action may be given before or after the record date, but only the Securityholders of record at the close of business on the record date shall be deemed to be Securityholders for the purposes of determining whether Securityholders of the requisite proportion of Outstanding Securities of that series have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other action, and for that purpose the Outstanding Securities of that series shall be computed as of the record date; provided, however, that no such authorization, agreement or consent by such Securityholders on the record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date.

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Section 8.02    Proof of Execution by Securityholders    .
Subject to the provisions of Section 7.01, proof of the execution of any instrument by a Securityholder (such proof will not require notarization) or his or her agent or proxy and proof of the holding by any Person of any of the Securities shall be sufficient if made in the following manner:
(a)    The fact and date of the execution by any such Person of any instrument may be proved in any reasonable manner acceptable to the Trustee. 
(b)    The ownership of Securities shall be proved by the Security Register of such Securities or by a certificate of the Security Registrar thereof.
The Trustee may require such additional proof of any matter referred to in this Section as it shall deem necessary.
Section 8.03    Who May be Deemed Owners    .
Prior to the due presentment for registration of transfer of any Security, the Company, the Trustee, any paying agent and any Security Registrar may deem and treat the Person in whose name such Security shall be registered upon the books of the Security Registrar as the absolute owner of such Security (whether or not such Security shall be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the Security Registrar) for the purpose of receiving payment of or on account of the principal of, premium, if any, and (subject to Section 2.03) interest on such Security and for all other purposes; and neither the Company nor the Trustee nor any paying agent nor any Security Registrar shall be affected by any notice to the contrary.
Section 8.04    Certain Securities Owned by Company Disregarded    .
In determining whether the holders of the requisite aggregate principal amount of Securities of a particular series have concurred in any direction, consent or waiver under this Indenture, the Securities of that series that are owned by the Company or any other obligor on the Securities of that series or by any Person directly or indirectly controlling or controlled by or under common control with the Company or any other obligor on the Securities of that series shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the Trustee shall be protected in relying on any such direction, consent or waiver, only Securities of such series that the Trustee actually knows are so owned shall be so disregarded.  The Securities so owned that have been pledged in good faith may be regarded as Outstanding for the purposes of this Section, if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not a Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any such other obligor.  In case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.

37

Section 8.05    Actions Binding on Future Securityholders    .
At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such action, any holder of a Security of that series that is shown by the evidence to be included in the Securities the holders of which have consented to such action may, by filing written notice with the Trustee, and upon proof of holding as provided in Section 8.02, revoke such action so far as concerns such Security.  Except as aforesaid any such action taken by the holder of any Security shall be conclusive and binding upon such holder and upon all future holders and owners of such Security, and of any Security issued in exchange therefor, on registration of transfer thereof or in place thereof, irrespective of whether or not any notation in regard thereto is made upon such Security.  Any action taken by the holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such action shall be conclusively binding upon the Company, the Trustee and the holders of all the Securities of that series.
ARTICLE 9 
 
SUPPLEMENTAL INDENTURES 

Section 9.01    Supplemental Indentures Without the Consent of Securityholders    .
In addition to any supplemental indenture otherwise authorized by this Indenture, the Company and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect), without the consent of the Securityholders, for one or more of the following purposes: 
(a)    to cure any ambiguity, defect, or inconsistency herein or in the Securities of any series; 
(b)    to comply with Article Ten; 
(c)    to provide for uncertificated Securities in addition to or in place of certificated Securities; 
(d)    to add to the covenants, restrictions, conditions or provisions relating to the Company for the benefit of the holders of all or any series of Securities (and if such covenants, restrictions, conditions or provisions are to be for the benefit of less than all series of Securities, stating that such covenants, restrictions, conditions or provisions are expressly being included solely for the benefit of such series), to make the occurrence, or the occurrence and the continuance, of a default in any such additional covenants, restrictions, conditions or provisions an Event of Default, or to surrender any right or power herein conferred upon the Company; 
(e)    to add to, delete from, or revise the conditions, limitations, and restrictions on the authorized amount, terms, or purposes of issue, authentication, and delivery of Securities, as herein set forth; 

38

(f)    to make any change that does not adversely affect the rights of any Securityholder in any material respect; 
(g)    to provide for the issuance of and establish the form and terms and conditions of the Securities of any series as provided in Section 2.01, to establish the form of any certifications required to be furnished pursuant to the terms of this Indenture or any series of Securities, or to add to the rights of the holders of any series of Securities; 
(h)    to evidence and provide for the acceptance of appointment hereunder by a successor trustee; or 
(i)    to comply with any requirements of the Commission or any successor in connection with the qualification of this Indenture under the Trust Indenture Act.
The Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.
Any supplemental indenture authorized by the provisions of this Section may be executed by the Company and the Trustee without the consent of the holders of any of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02.
Section 9.02    Supplemental Indentures With Consent of Securityholders    .
With the consent (evidenced as provided in Section 8.01) of the holders of not less than a majority in aggregate principal amount of the Securities of each series affected by such supplemental indenture or indentures at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner not covered by Section 9.01 the rights of the holders of the Securities of such series under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the holders of each Security then Outstanding and affected thereby, (a) extend the fixed maturity of any Securities of any series, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any premium payable upon the redemption thereof or (b) reduce the aforesaid percentage of Securities, the holders of which are required to consent to any such supplemental indenture.
It shall not be necessary for the consent of the Securityholders of any series affected thereby under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.

39

Section 9.03    Effect of Supplemental Indentures    .
Upon the execution of any supplemental indenture pursuant to the provisions of this Article or of Section 10.01, this Indenture shall, with respect to such series, be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders of Securities of the series affected thereby shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.
Section 9.04    Securities Affected by Supplemental Indentures    .
Securities of any series affected by a supplemental indenture, authenticated and delivered after the execution of such supplemental indenture pursuant to the provisions of this Article or of Section 10.01, may bear a notation in form approved by the Company, provided such form meets the requirements of any securities exchange upon which such series may be listed, as to any matter provided for in such supplemental indenture.  If the Company shall so determine, new Securities of that series so modified as to conform, in the opinion of the Board of Directors, to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered in exchange for the Securities of that series then Outstanding.
Section 9.05    Execution of Supplemental Indentures    .
Upon the request of the Company, accompanied by its Board Resolutions authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Securityholders required to consent thereto as aforesaid, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such supplemental indenture. The Trustee, subject to the provisions of Section 7.01, shall receive an Officer’s Certificate or an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article is authorized or permitted by the terms of this Article and that all conditions precedent to the execution of the supplemental indenture have been complied with; provided, however, that such Officer’s Certificate or Opinion of Counsel need not be provided in connection with the execution of a supplemental indenture that establishes the terms of a series of Securities pursuant to Section 2.01 hereof. 
Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Company shall (or shall direct the Trustee to) send a notice, setting forth in general terms the substance of such supplemental indenture, to the Securityholders of all series affected thereby .as their names and addresses appear upon the Security Register. Any failure of the Company to send, or cause the sending of, such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

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ARTICLE 10
SUCCESSOR ENTITY 

Section 10.01    Company May Consolidate, Etc.    
Nothing contained in this Indenture shall prevent any consolidation or merger of the Company with or into any other Person (whether or not affiliated with the Company) or successive consolidations or mergers in which the Company or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its successor or successors as an entirety, or substantially as an entirety, to any other Person (whether or not affiliated with the Company or its successor or successors); provided, however, the Company hereby covenants and agrees that, upon any such consolidation or merger (in each case, if the Company is not the survivor of such transaction) or any such sale, conveyance, transfer or other disposition (other than a sale, conveyance, transfer or other disposition to a Subsidiary of the Company), the due and punctual payment of the principal of (premium, if any) and interest on all of the Securities of all series in accordance with the terms of each series, according to their tenor, and the due and punctual performance and observance of all the covenants and conditions of this Indenture with respect to each series or established with respect to such series pursuant to Section 2.01 to be kept or performed by the Company shall be expressly assumed, by supplemental indenture (which shall conform to the provisions of the Trust Indenture Act, as then in effect) reasonably satisfactory in form to the Trustee executed and delivered to the Trustee by the entity formed by such consolidation, or into which the Company shall have been merged, or by the entity which shall have acquired such property.
Section 10.02    Successor Entity Substituted    .
(a)    In case of any such consolidation, merger, sale, conveyance, transfer or other disposition and upon the assumption by the successor entity by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the obligations set forth under Section 10.01 on all of the Securities of all series Outstanding, such successor entity shall succeed to and be substituted for the Company with the same effect as if it had been named as the Company herein, and thereupon the predecessor corporation shall be relieved of all obligations and covenants under this Indenture and the Securities.
(b)    In case of any such consolidation, merger, sale, conveyance, transfer or other disposition, such changes in phraseology and form (but not in substance) may be made in the Securities thereafter to be issued as may be appropriate.
(c)    Nothing contained in this Article shall require any action by the Company in the case of a consolidation or merger of any Person into the Company where the Company is the survivor of such transaction, or the acquisition by the Company, by purchase or otherwise, of all or any part of the property of any other Person (whether or not affiliated with the Company).

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ARTICLE 11

SATISFACTION AND DISCHARGE 

Section 11.01    Satisfaction and Discharge of Indenture    .
If at any time: (a) the Company shall have delivered to the Trustee for cancellation all Securities of a series theretofore authenticated and not delivered to the Trustee for cancellation (other than any Securities that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.07 and Securities for whose payment money or Governmental Obligations have theretofore been deposited in trust or segregated and held in trust by the Company and thereupon repaid to the Company or discharged from such trust, as provided in Section 11.05); or (b) all such Securities of a particular series not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit or cause to be deposited with the Trustee as trust funds the entire amount in moneys or Governmental Obligations or a combination thereof, sufficient in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay at maturity or upon redemption all Securities of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other sums payable hereunder with respect to such series by the Company then this Indenture shall thereupon cease to be of further effect with respect to such series except for the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03, 7.10, 11.5 and 13.04, that shall survive until the date of maturity or redemption date, as the case may be, and Sections 7.06 and 11.05, that shall survive to such date and thereafter, and the Trustee, on demand of the Company and at the cost and expense of the Company shall execute proper instruments acknowledging satisfaction of and discharging this Indenture with respect to such series.
Section 11.02    Discharge of Obligations    .
If at any time all such Securities of a particular series not heretofore delivered to the Trustee for cancellation or that have not become due and payable as described in Section 11.01 shall have been paid by the Company by depositing irrevocably with the Trustee as trust funds moneys or an amount of Governmental Obligations sufficient to pay at maturity or upon redemption all such Securities of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other sums payable hereunder by the Company with respect to such series, then after the date such moneys or Governmental Obligations, as the case may be, are deposited with the Trustee the obligations of the Company under this Indenture with respect to such series shall cease to be of further effect except for the provisions of Sections 2.03, 2.05, 2.07, 4,01, 4.02, 4,03, 7.06, 7.10, 11.05 and 13.04 hereof that shall survive until such Securities shall mature and be paid.

42

Thereafter, Sections 7.06 and 11.05 shall survive.
Section 11.03    Deposited Moneys to be Held in Trust    .
All moneys or Governmental Obligations deposited with the Trustee pursuant to Sections 11.01 or 11.02 shall be held in trust and shall be available for payment as due, either directly or through any paying agent (including the Company acting as its own paying agent), to the holders of the particular series of Securities for the payment or redemption of which such moneys or Governmental Obligations have been deposited with the Trustee.
Section 11.04    Payment of Moneys Held by Paying Agents    .
In connection with the satisfaction and discharge of this Indenture all moneys or Governmental Obligations then held by any paying agent under the provisions of this Indenture shall, upon demand of the Company, be paid to the Trustee and thereupon such paying agent shall be released from all further liability with respect to such moneys or Governmental Obligations.
Section 11.05    Repayment to Company    .
Any moneys or Governmental Obligations deposited with any paying agent or the Trustee, or then held by the Company, in trust for payment of principal of or premium, if any, or interest on the Securities of a particular series that are not applied but remain unclaimed by the holders of such Securities for at least two years after the date upon which the principal of (and premium, if any) or interest on such Securities shall have respectively become due and payable, or such other shorter period set forth in applicable escheat or abandoned or unclaimed property law, shall be repaid to the Company on May 31 of each year or upon the Company’s request or (if then held by the Company) shall be discharged from such trust; and thereupon the paying agent and the Trustee shall be released from all further liability with respect to such moneys or Governmental Obligations, and the holder of any of the Securities entitled to receive such payment shall thereafter, as a general creditor, look only to the Company for the payment thereof.
ARTICLE 12

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS 

Section 12.01    No Recourse    .
No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Security, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future as such, of the Company or of any predecessor or successor corporation, either directly or through the Company or any such predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that this Indenture and the obligations issued hereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, stockholders, officers or directors as such, of the Company or of any predecessor or successor corporation, or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom; and that any and all such personal liability of every name and 

43

nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, stockholder, officer or director as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of such Securities.
ARTICLE 13
 
MISCELLANEOUS PROVISIONS 

Section 13.01    Effect on Successors and Assigns    .
All the covenants, stipulations, promises and agreements in this Indenture made by or on behalf of the Company shall bind its successors and assigns, whether so expressed or not.
Section 13.02    Actions by Successor    .
Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the corresponding board, committee or officer of any corporation that shall at the time be the lawful successor of the Company.
Section 13.03    Surrender of Company Powers    .
The Company by instrument in writing executed by authority of its Board of Directors and delivered to the Trustee may surrender any of the powers reserved to the Company, and thereupon such power so surrendered shall terminate both as to the Company and as to any successor corporation.
Section 13.04    Notices    .
Except as otherwise expressly provided herein, any notice, request or demand that by any provision of this Indenture is required or permitted to be given, made or served by the Trustee, the Security Registrar, any paying or other agent under this Indenture or by the holders of Securities or by any other Person pursuant to this Indenture to or on the Company may be given or served by being deposited in first class mail, postage prepaid, addressed (until another address is filed in writing by the Company with the Trustee), as follows:                                                                                                                .  Any notice, election, request or demand by the Company or any Securityholder or by any other Person pursuant to this Indenture to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made in writing at the Corporate Trust Office of the Trustee.

44

Section 13.05    Governing Law; Jury Trial Waiver    .
This Indenture and each Security shall be governed by, and construed in accordance with, the internal laws of the State of New York, except to the extent that the Trust Indenture Act is applicable.
EACH PARTY HERETO, AND EACH HOLDER OF A SECURITY BY ACCEPTANCE THEREOF, HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS INDENTURE.
Section 13.06    Treatment of Securities as Debt    .
It is intended that the Securities will be treated as indebtedness and not as equity for federal income tax purposes.  The provisions of this Indenture shall be interpreted to further this intention.
Section 13.07    Certificates and Opinions as to Conditions Precedent    .
(a)    Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent provided for in this Indenture (other than the certificate to be delivered pursuant to Section 13.12) relating to the proposed action have been complied with and, if requested, an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished.
(b)    Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant in this Indenture (other than the certificate to be delivered pursuant to Section 13.12 of this Indenture or Section 314(a)(1) of the Trust Indenture Act) shall include (i) a statement that the Person making such certificate or opinion has read such covenant or condition; (ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; (iii) a statement that, in the opinion of such Person, he has made such examination or investigation as is reasonably necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and (iv) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.
Section 13.08    Payments on Business Days    .
Except as provided pursuant to Section 2.01 pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental to this Indenture, in any case where the date of maturity of interest or principal of any Security or the date of redemption of any Security shall not be a Business Day, then payment of interest or 

45

principal (and premium, if any) may be made on the next succeeding Business Day with the same force and effect as if made on the nominal date of maturity or redemption, and no interest shall accrue for the period after such nominal date.
Section 13.09    Conflict with Trust Indenture Act    .
If and to the extent that any provision of this Indenture limits, qualifies or conflicts with the duties imposed by Section 318(c) of the Trust Indenture Act, such imposed duties shall control.
Section 13.10    Counterparts    .
This Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.  The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.
Section 13.11    Separability    .
In case any one or more of the provisions contained in this Indenture or in the Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such Securities, but this Indenture and such Securities shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.
Section 13.12    Compliance Certificates    .
The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year during which any Securities of any series were outstanding, an officer’s certificate stating whether or not the signers know of any Event of Default that occurred during such fiscal year.  Such certificate shall contain a certification from the principal executive officer, principal financial officer or principal accounting officer of the Company that a review has been conducted of the activities of the Company and the Company’s performance under this Indenture and that the Company has complied with all conditions and covenants under this Indenture.  For purposes of this Section 13.12, such compliance shall be determined without regard to any period of grace or requirement of notice provided under this Indenture.  If the officer of the Company signing such certificate has knowledge of such an Event of Default, the certificate shall describe any such Event of Default and its status.
Section 13.13    U.S.A Patriot Act. 
The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee.  

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The parties to this Indenture agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act.
Section 13.14    Force Majeure. 
In no event shall the Trustee, the Security Registrar, any paying agent or any other agent under this Indenture be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions or utilities, communications or computer (software and hardware) services; it being understood that the Trustee, the Security Registrar, any paying agent or any other agent under this Indenture shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.
Section 13.15    Table of Contents; Headings.
The table of contents and headings of the articles and sections of this Indenture have been inserted for convenience of reference only, are not intended to be considered a part hereof, and will not modify or restrict any of the terms or provisions hereof.

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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as of the day and year first above written.
NEWLINK GENETICS CORPORATION
By:     
Name:     
Title:     
[TRUSTEE], as Trustee 
By:     
Name:     
Title:     

48

CROSS-REFERENCE TABLE (1)

	
		
	Section of Trust Indenture Act of 1939, as Amended
	Section of Indenture

	310(a)
	7.09

	310(b)
	7.08

	 
	7.10

	310(c)
	Inapplicable

	311(a)
	7.13

	311(b)
	7.13

	311(c)
	Inapplicable

	312(a)
	5.01

	 
	5.02(a)

	312(b)
	5.02(c)

	312(c)
	5.02(c)

	313(a)
	5.04(a)

	313(b)
	5.04(b)

	313(c)
	5.04(a)

	 
	5.04(b)

	313(d)
	5.04(c)

	314(a)
	5.03

	 
	13.12

	314(b)
	Inapplicable

	314(c)
	13.07(a)

	314(d)
	Inapplicable

	314(e)
	13.07(b)

	314(f)
	Inapplicable

	315(a)
	7.01(a)

	 
	7.01(b)

	315(b)
	7.14

	315(c)
	7.01

	315(d)
	7.01(b)

	315(e)
	6.07

	316(a)
	6.06

	 
	8.04

	316(b)
	6.04

	316(c)
	8.01

	317(a)
	6.02

	317(b)
	4.03

	318(a)
	13.09

_________________
		
	(1)
	This Cross-Reference Table does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions. 

49

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00285-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00285-of-00352.parquet"}]]