Document:

Exhibit

Execution Version

Exhibit 10.1
EMPLOYMENT AGREEMENT
This Employment Agreement (this “Agreement”) is made by and between Clayton Williams Energy, Inc., a Delaware corporation (the “Company”), and Patrick Cooke (“Employee”) effective as of October 31, 2016 (the “Effective Date”).
WHEREAS, the Company desires to employ Employee and Employee desires to be employed by the Company and to commit himself to serve the Company on the terms herein provided;
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Employment. The Company shall employ Employee, and Employee accepts employment with the Company, upon the terms and conditions set forth in this Agreement for the period beginning on the Effective Date and ending on the third anniversary of such date (the “Initial Term”); provided, however, that (a) on such third anniversary date (and on the fourth and fifth anniversary dates of the Effective Date thereafter), the term of this Agreement will automatically (without any action by either party) be extended for one additional year (each, a “Renewal Period”), unless, at least 90 days prior to either the third, fourth, or fifth anniversary date of the Effective Date, as applicable, the Company or Employee has given written notice to the other party (a “Non-Renewal Notice”) that the Company or Employee does not wish to extend the term of the Agreement (a “Non-Renewal”), and (b) the Initial Term or any Renewal Period, as applicable, may be terminated prior to the expiration thereof in accordance with Section 4.  Either party may elect not to renew this Agreement; provided, that, if no Non-Renewal Notice is given, and if this Agreement is not terminated earlier in accordance with Section 4, the Agreement will expire by its terms on the sixth anniversary of the Effective Date, unless extended by mutual agreement of the parties hereto.  The term “Employment Term” means the period from the Effective Date until the expiration of the Initial Term and any applicable Renewal Period pursuant to this Section 1 or in accordance with Section 4 of this Agreement.

2.Position and Duties.

(a)During the Employment Term, Employee shall hold the title of Senior Vice President and Chief Operating Officer.  The Company and Employee agree that the Employee shall have duties and responsibilities consistent with the position set forth above in a company the size and of the nature of the Company, and such other duties and authority that are assigned to Employee from time to time by the Company’s Board of Directors (the “Board”), or such other officer of the Company as shall be designated by the Board.  Employee shall report to the Board, or to such other officer of the Company as shall be designated by the Board.  Employee’s principal place of employment shall be Midland, Texas.
(b)Employee agrees to devote his best efforts and his full business time and attention to the business and affairs of the Company.  Employee shall perform his duties and responsibilities to the best of his abilities in a diligent and professional manner, and agrees to comply with all of the policies of the Company, including such policies with respect to legal compliance, conflicts of interest, confidentiality and business ethics as are from time to time in effect.  During the Employment Term, Employee shall not engage

in any business activity which, in the reasonable judgment of the Board, conflicts or interferes with the duties and responsibilities of Employee hereunder, whether or not such activity is pursued for gain, profit or other pecuniary advantage, without the prior written approval of the Company or engage in or be employed by any other business; provided, however, that the foregoing provisions of this Section 2 shall not limit or prohibit Employee from engaging in community, charitable and social activities, personal investment activities and the endeavors set forth on Exhibit A attached hereto, in each case not interfering with the Employee’s performance and obligations hereunder.  For the avoidance of doubt, this Section 2 shall not limit or prohibit Employee from providing services to or for the benefit of the Williams Entities pursuant to the Second Amended and Restated Service Agreement dated as of March 1, 2005 by and among the Company and the Williams Entities (as defined therein), as amended from time to time.
(c)Employee acknowledges and agrees that Employee owes a duty of loyalty, fidelity and allegiance to act at all times in the best interests of the Company and to do no intentional act that would injure the business, interests, or reputation of the Company or any of its Affiliates.  In keeping with these duties, Employee shall make full disclosure to the Company of all significant business opportunities pertaining to the Company’s business and shall not appropriate for Employee’s own benefit business opportunities concerning the subject matter of the fiduciary relationship.  Except as set forth in Section 5(d)(ii), for purposes of this Agreement, the term “Affiliate” shall mean an individual or entity that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a specified individual or entity.
3.Compensation.
(a)Base Salary.  During the Employment Term, Employee’s base salary shall be $450,000 per annum, which salary may be increased (but not decreased) by the Board (or a designated committee thereof) in its discretion (the “Base Salary”), which Base Salary shall be payable in regular installments in accordance with the Company’s general payroll practices and subject to withholding and other payroll taxes.  
(b)Annual Bonus.  Employee shall be eligible to receive one or more bonuses each year during the Employment Term to be determined by the Board (or a designated committee thereof), in its sole discretion based on performance or other criteria to be adopted by the Board (or a designated committee thereof).  Any bonus amount earned with respect to a calendar year shall be paid in a cash lump sum no later than March 15 of the following calendar year.
(c)Employee Benefits.  Employee will be entitled during the Employment Term to receive such welfare benefits and other fringe benefits (including vacation, medical, dental, life insurance, 401(k) and other employee benefits and perquisites, such as club membership dues) as the Company may offer from time to time to similarly situated executive level employees, subject to applicable eligibility requirements.  The Company shall not, however, by reason of this Section 3(c), be obligated to institute, maintain, or refrain from changing, amending, or discontinuing any such benefit plan or program, so long as any such changes are similarly applicable to similarly situated employees of the Company.
(d)Business Expenses.  The Company shall reimburse Employee for all reasonable expenses incurred by him in the course of performing his duties under this Agreement to the extent consistent with the Company’s written policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company’s requirements with respect to reporting and documentation of such expenses.  Notwithstanding any provision in this Agreement to the contrary, the amount of expenses for which Employee is eligible to receive reimbursement during any calendar year shall not affect the amount of expenses for which Employee is eligible to receive reimbursement during any other calendar year within the Employment Term.  Reimbursement of expenses under this Section 3(d) shall be made no later than the 

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last day of the calendar year following the calendar year in which the expense was incurred.  Employee is not permitted to receive a payment or other benefit in lieu of reimbursement under this Section 3(d).
(e)Long Term Incentive Compensation.  Employee may, as determined by the Board (or a designated committee thereof) in its sole discretion, receive grants of, or payments under, equity or non-equity related awards pursuant to the Company’s Long Term Incentive Plan (the “LTIP”) or any successor plan thereto.
(f)Automobile Allowance.  During the Employment Term, Employee will be entitled to receive a car allowance in accordance with the Company’s automobile allowance policy in effect from time to time.  
4.Termination of Employment.  Unless otherwise agreed to in writing by the Company and Employee, Employee’s employment hereunder may be terminated under the following circumstances:
(a)Death.  Employee’s employment hereunder shall terminate upon his death.
(b)Disability.  Employee’s employment hereunder shall terminate upon a determination that he has incurred a Disability.  For purposes of this Agreement, “Disability” means, at any time the Company sponsors a long-term disability plan for the Company’s employees, “disability” as defined in such long-term disability plan for the purpose of determining a participant’s eligibility for benefits, provided, that if the long-term disability plan contains multiple definitions of disability, “Disability” shall refer to that definition of disability which, if Employee qualified for such disability benefits, would provide coverage for the longest period of time.  The determination of whether Employee has a Disability shall be made in good faith by the person or persons required to make disability determinations under the long-term disability plan.  If Employee is not covered under the Company’s long-term disability plan or if the Company does not sponsor a long-term disability plan at such time, then the term “Disability” hereunder shall mean a “permanent and total disability” as defined in section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), and, in this case, the existence of any such Disability shall be certified by a physician acceptable to both the Company and Employee.  In the event the parties are not able to agree on the choice of a physician, each party shall select a physician who, in turn, shall select a third physician to render such certification.
(c)Termination by the Company.  The Company may terminate Employee’s employment with or without Cause.  For purposes of this Agreement, the term “Cause” means Employee (i) has been convicted of a misdemeanor that involves intentionally dishonest behavior or that the Company determines in good faith will have a material adverse effect on the reputation of the Company or any felony, (ii) has engaged in conduct which is materially injurious (monetarily or otherwise) to the Company or any of its Affiliates (including misuse of the Company’s or an Affiliate’s funds or other property), (iii) has engaged in gross negligence or willful misconduct in the performance of his duties for the Company, (iv) has willfully refused without proper legal reason to perform his duties for the Company, (v) has intentionally breached any material provision of this Agreement or any other material agreement between the Company and Employee, or (vi) has intentionally breached any material corporate policy maintained and established by the Company that is of general applicability to executives of the Company; provided, however, as to clauses (iv), (v) and (vi) contained in this Section 4(c), if such acts or omissions could be cured by Employee (as reasonably determined by the Board), the Company must give Employee written notice of the acts or omissions constituting Cause within 30 days of the occurrence of such acts or omissions and, in such case, no termination shall be for Cause unless and until Employee fails to cure such acts or omissions within 30 days following receipt of such written notice.
(d)Termination by Employee.  Employee may, upon giving the Company no less than 30 days advance written notice, terminate Employee’s employment without Good Reason or for Good Reason.  

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For purposes of this Agreement, the term “Good Reason” shall mean, without the express written consent of Employee, the occurrence of one of the following: (i) any action or inaction that constitutes a material breach by the Company of this Agreement, (ii) a material reduction in Employee’s Base Salary, including any series of salary reductions (whether or not related) that are not agreed to by Employee in writing and that, individually or in the aggregate, result in a material reduction when compared to Employee’s Base Salary in effect on the Effective Date or as adjusted after the Effective Date in accordance with Section 3(a) hereof or with Employee’s prior written consent, (iii) a material diminution in Employee’s authority, duties or responsibilities or the assignment of duties to Employee that are not materially commensurate with Employee’s position with the Company, or (iv) a change in the geographic location of Employee’s principal place of employment to a location outside of Midland, Texas.  For the avoidance of doubt, any reduction in Employee’s Base Salary, regardless of amount, could be material if, in light of all other facts and circumstances, a reasonable person in the position of Employee would consider it important.  In the case of Employee’s allegation of Good Reason, (A) Employee shall provide notice to the Company of the event alleged to constitute Good Reason within 60 days of the occurrence of such event, and (B) the Company shall have the opportunity to remedy the alleged Good Reason event within 30 days from receipt of notice of such allegation.
5.Compensation Upon Termination.
(a)For Cause or Without Good Reason.  In the event Employee’s employment is terminated by the Company for Cause or by the Employee without Good Reason, Employee shall be entitled to receive (i) Employee’s full Base Salary through the Date of Termination at the rate then in effect, (ii) reimbursement of any expenses to the extent such amounts have accrued through the Date of Termination, (iii) pay for accrued but unused vacation existing as of the Date of Termination, and (iv) such employee benefits, if any, as to which Employee may be entitled pursuant to the terms governing such benefits (such amounts set forth in (i), (ii), (iii) and (iv) shall be collectively referred to herein as the “Accrued Rights”).
(b)Death or Disability.  In the event Employee’s employment terminates by reason of his death or Disability, Employee (or his estate) shall be entitled to receive the Accrued Rights and all outstanding equity and non-equity based awards (including any awards or interests under the LTIP) held by Employee immediately prior to the Date of Termination shall become fully vested as of such date; provided, that, notwithstanding the foregoing, any awards or interests held by Employee as of the Date of Termination under the LTIP shall continue to be governed by the terms and conditions of such plans relating to the forfeiture of awards that are fully vested.  In addition, Employee shall be entitled to receive the following, provided Employee (or his estate) delivers to the Company, within 45 days following the Date of Termination, a properly executed release in accordance with Section 8 of this Agreement:
(i)a lump sum payment equal to 18 months’ worth of Employee’s Base Salary in effect on the Date of Termination (determined without regard to any reduction in Base Salary imposed by the Company in violation of Section 3(a) hereof), payable as soon as practicable but no later than the earlier of (A) March 15 following the calendar year in which termination occurs or (B) 90 days following the Date of Termination; and
(ii)Employee (in the case of a termination due to Disability), his spouse and eligible dependents (to the extent covered immediately prior to such termination) shall continue to be eligible to participate in all of the Company’s group health plans on the same terms and conditions as active employees of the Company for a period of one (1) year following the Date of Termination.  If benefits are continued pursuant to this Section 5(b)(ii) during a period when, in the absence of the benefits provided in this Section 5(b)(ii), Employee or his dependents would not be entitled to continuation coverage under Section 4980B of the Code, Employee and his dependents shall receive reimbursement for all medical expenses no later than the end of the calendar year immediately following the calendar year in which the applicable expenses 

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were incurred.  The health care continuation coverage period under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), Code Section 4980B, or any replacement or successor provision of United States tax law, shall run concurrently with the period during which continued benefits are being provided pursuant to this Section 5(b)(ii).
(c)Without Cause, For Good Reason or Non-Renewal.  In the event Employee’s employment is terminated by the Company without Cause, by Employee for Good Reason or due to a Non-Renewal that results from a Non-Renewal Notice given by the Company, Employee shall be entitled to receive payment of the following:
(i)the Accrued Rights;
(ii)all equity and non-equity based awards that vest over time solely on account of the continued services of the Employee (including awards granted pursuant to the LTIP) will become vested (and, as applicable, exercisable) with respect to an additional 12 months from the Date of Termination; provided, that, notwithstanding the foregoing, any awards or interests held by Employee as of the Date of Termination under the LTIP shall continue to be governed by the terms and conditions of such plans relating to the forfeiture of awards that are fully vested;
(iii)provided Employee delivers to the Company, within 45 days following the Date of Termination, a properly executed release in accordance with Section 8 of this Agreement, a lump sum payment equal to the sum of: (A) two (2) times Employee’s annualized Base Salary in effect on the Date of Termination (determined without regard to any reduction in Base Salary imposed by the Company in violation of Section 3(a) hereof), (B) two (2) times the average of the bonus amount(s) actually paid to Employee (not including any amounts paid to Employee pursuant to the LTIP other than annual cash incentives paid pursuant to Section 3(b) and Section 3(e) hereof) for the three (3) calendar years ending prior to the Date of Termination (or, if such period is shorter, the number of full calendar years preceding the Date of Termination during which Employee was employed by the Company); (C) the car allowance Employee would have received pursuant to Section 3(f) of this Agreement had his employment continued for an additional two (2) years; and (D) the matching contributions that would have been made on behalf of Employee pursuant to the Company’s 401(k) plan if Employee had continued participation in such 401(k) plan for an additional two (2) years, payable as soon as practicable but no later than the earlier of (I) March 15 following the calendar year in which termination occurs or (II) 90 days following the Date of Termination; and
(iv)provided Employee delivers to the Company, within 45 days following the Date of Termination, a properly executed release in accordance with Section 8 of this Agreement, Employee, his spouse and eligible dependents (to the extent covered immediately prior to such termination) shall continue to be eligible to participate in all of the Company’s group health plans on the same terms and conditions as active employees of the Company for a period of 18 months following the Date of Termination.  Notwithstanding the foregoing, in the event the Company is unable to provide continued participation in the Company’s group health plans or to the extent such continued participation would subject the Company to negative tax consequences or would be provided during a period when, in the absence of the benefits provided in this Section 5(c)(iv), Employee or his dependents would not be entitled to continuation coverage under Section 4980B of the Code, the Company will reimburse Employee for amounts necessary to enable Employee to obtain similar benefits, and any such reimbursement will be made in accordance with the provisions of Treasury Regulation § 1.409A-3(i)(1)(iv).  The health care continuation coverage period under COBRA, Code Section 4980B, or any replacement or successor provision of United States tax law, shall run concurrently with the period during which continued benefits are being provided pursuant to this Section 5(c)(iv). 

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(d)Change in Control.
(i)Notwithstanding any provision contained herein, if Employee’s employment is terminated by the Company without Cause (other than by reason of death or Disability), if Employee resigns for Good Reason or in the event of a Non-Renewal that results from a Non-Renewal Notice given by the Company, in each case, within 24 months following a Change in Control (as defined below), Employee shall be entitled to receive: 
A.the Accrued Rights;
B.all equity and non-equity based awards (including awards granted pursuant to the LTIP) will become vested and, as applicable, settled within 45 days following the Date of Termination or exercisable, with respect to an additional 24 months; and, with respect to performance-based awards, will become vested and settleable with respect to the greater of (I) actual performance as of the Date of Termination, or (II) target performance under the award, to the extent the performance period with respect to such award will end within the 24 month period following the Date of Termination; provided, that, except as provided in the foregoing, any awards or interests held by Employee as of the Date of Termination under the LTIP shall continue to be governed by the terms and conditions of such plans relating to the forfeiture of awards that are fully vested;
C.provided Employee delivers to the Company, within 45 days following the Date of Termination, a properly executed release in accordance with Section 8 of this Agreement, a lump sum payment equal to the sum of (I) three (3) times Employee’s annualized Base Salary in effect on the Date of Termination (determined without regard to any reduction in Base Salary imposed by the Company in violation of Section 3(a) hereof), (II) three (3) times the average of the bonus amount(s) actually paid to Employee  (not including any amounts paid to Employee pursuant to the LTIP other than annual cash incentives paid pursuant to Section 3(b) and Section 3(e) hereof) for the three (3) calendar years ending prior to the Date of Termination (or, if such period is shorter, the number of full calendar years preceding the Date of Termination during which Employee was employed by the Company), (III) the car allowance Employee would have received pursuant to Section 3(f) of this Agreement had his employment continued for an additional three (3) years, and (IV) the matching contributions that would have been made on behalf of Employee pursuant to the Company’s 401(k) plan if Employee had continued participation in such 401(k) plan for an additional three (3) years, payable as soon as practicable but no later than the earlier of (a) March 15 following the calendar year in which termination occurs or (b) 90 days following the Date of Termination; and
D.provided Employee delivers to the Company, within 45 days following the Date of Termination, a properly executed release in accordance with Section 8 of this Agreement, Employee, his spouse and eligible dependents (to the extent covered immediately prior to such termination) shall continue to be eligible to participate in all of the Company’s group health plans on the same terms and conditions as active employees of the Company for a period of 18 months following the Date of Termination.  Notwithstanding the foregoing, in the event the Company is unable to provide continued participation in the Company’s group health plans or to the extent such continued participation would subject the Company to negative tax consequences or would be provided during a period when, in the absence of the benefits provided in this Section 5(d)(i)D, Employee or his dependents would not be entitled to continuation coverage under Section 4980B of the Code, the Company will reimburse Employee for amounts necessary to enable Employee to obtain similar benefits, and any such reimbursement will be made in accordance with the provisions of Treasury Regulation § 1.409A-3(i)(1)(iv).  The health care continuation coverage period under COBRA, Code Section 4980B, or any replacement or successor provision of United States tax law, shall run concurrently with the period during which continued benefits are being provided pursuant to this Section 5(d)(i)D. 

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(ii)For purposes of this Agreement, the term “Change in Control” shall mean: 
A.Any “person” or “group” of related persons (as such terms are used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) or any “group” working cooperatively to advance or achieve common economic goals, including, without limitation, a group that forms a “group” or committee for purposes of negotiating a restructuring transaction, other than Ares, Clayton Williams, Jr., The Williams Children’s Partnership, Ltd. or any Related Party thereof, is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that such person or group shall be deemed to have “beneficial ownership” of all shares that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than (i) 35% of the total voting power of the outstanding capital stock (excluding any debt securities convertible into equity) normally entitled to vote in the election of directors (“Voting Stock”) of the Company (or its successor by merger, consolidation or purchase of all or substantially all of its assets) (for purposes of this clause, such person or group shall be deemed to beneficially own any Voting Stock held by a parent entity, if such person or group “beneficially owns” (as defined above), directly or indirectly, more than 35% of the voting power of the Voting Stock of such parent entity), (ii) 35% of the aggregate economic interests in the Company (or its successor by merger, consolidation or purchase of all or substantially all of its assets) or (iii) 35% of the total common stock of the Company (or its successor by merger, consolidation or purchase of all or substantially all of its assets);
B.The first day on which a majority of the members of the Board are not, as of any date of determination, either (i) a member of the Board on March 8, 2016, or (ii) individuals who were nominated for election or elected to the Board with the approval of the majority of the directors described in clause (i) (or approved for nomination or election by the majority of directors described in clause (i) or (ii) hereof) who were members of the Board at the time of such nomination or election;
C.A disposition by Company or a Restricted Subsidiary pursuant to which Company or any Restricted Subsidiary sells, leases, licenses, transfers, assigns or otherwise Disposes, in one or a series of related transactions, more than 50% of the properties or assets of Company and its Restricted Subsidiaries as determined by reference to the Company’s and its Restricted Subsidiaries’ financial statements on the last day of the most recently ended fiscal quarter, determined on a consolidated basis in accordance with GAAP; or
D.The adoption of a plan relating to the liquidation or dissolution of the Company.
Capitalized terms used in the definition of Change in Control and not otherwise defined in this Agreement shall have the meanings given to such terms in that certain Credit Agreement, dated as of March 8, 2016, among the Company, certain subsidiaries of the Company, the Lenders party thereto, Goldman Sachs Lending Partners LLC, and Wilmington Trust, National Association, as amended from time to time.
(e)Treatment of Parachute Payments.  Notwithstanding anything to the contrary in this Agreement, if Employee is a “disqualified individual” (as defined in Section 280G(c) of the Code), and the payments and benefits provided for in this Agreement, together with any other payments and benefits which Employee has the right to receive from the Company or any of its Affiliates, would result in a “parachute payment” (as defined in Section 280G(b)(2) of the Code), then the payments and benefits provided for in this Agreement shall be either (A) reduced (but not below zero) so that the present value of such total amounts and benefits received by Employee from the Company and its Affiliates will be one dollar ($1.00) less than three times Employee’s “base amount” (as defined in Section 280G(b)(3) of the Code) and so that no portion of such amounts and benefits received by Employee shall be subject to the excise tax imposed by Section 4999 of the Code 

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or (B) paid in full, whichever of (A) or (B) produces the better net after-tax position to Employee (taking into account any applicable excise tax under Section 4999 of the Code and any other applicable taxes).  The reduction of payments and benefits hereunder, if applicable, shall be made by reducing, first, payments or benefits to be paid in cash hereunder in the order in which such payment or benefit would be paid or provided (beginning with such payment or benefit that would be made last in time and continuing, to the extent necessary, through to such payment or benefit that would be made first in time) and, then, reducing any benefit to be provided in-kind hereunder in a similar order.  The determination as to whether any such reduction in the amount of the payments and benefits provided hereunder is necessary shall be made by the Company in good faith.  If a reduced payment or benefit is made or provided and through error or otherwise that payment or benefit, when aggregated with other payments and benefits from the Company (or its Affiliates) used in determining if a “parachute payment” exists, exceeds one dollar ($1.00) less than three times Employee’s base amount, then Employee shall immediately repay such excess to the Company upon notification that an overpayment has been made.  Nothing in this Section 5(e) shall require the Company to be responsible for, or have any liability or obligation with respect to, Employee’s excise tax liabilities under Section 4999 of the Code, if any.
(f)No Other Amounts.  Except as otherwise required by law (e.g., pursuant to COBRA) or as specifically provided herein, all of Employee’s rights to Base Salary, severance, fringe benefits and bonuses hereunder (if any) shall cease upon the termination of the Employment Term.  Upon termination of the Employment Term, the sole contractual remedy of Employee and his successors, assigns, heirs, representatives and estate shall be to receive the amounts described in Sections 5(a), 5(b), 5(c), and 5(d), as applicable.
(g)Notice of Termination.  Any termination of Employee’s employment occurring in accordance with the terms of this Section 5 (other than by reason of Employee’s death or by reason of a Non-Renewal) shall be communicated to the other party by written notice that (i) indicates the specific termination provisions of this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for the termination, and (iii) specifies the Date of Termination (a “Notice of Termination”), and that is delivered to the other party in accordance with Section 9(f) of this Agreement.  The failure of a party to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of the basis for termination shall not waive any right of such party hereunder or later preclude such party from asserting such fact or circumstance in enforcing its rights hereunder.
(h)Date of Termination.  For purposes of this Agreement, “Date of Termination” means the date of receipt of the Notice of Termination or any later date specified therein, as the case may be; provided, however, that if Employee’s employment is terminated by reason of his death, the Date of Termination shall be the date of death of Employee and in the event of a Non-Renewal, the Date of Termination shall be the last day of the Initial Term or applicable Renewal Period.
(i)Deemed Resignations.  Unless otherwise agreed to in writing by the Company and Employee prior to termination of Employee’s employment, any termination of Employee’s employment shall constitute an automatic resignation of Employee as an officer of the Company and each Affiliate of the Company, and an automatic resignation of the Employee from the Board.  Employee agrees to promptly execute and deliver to the Company all consents and agreements necessary to effectuate the termination of Employee’s status as an officer and/or Employee’s resignation from the Board.
6.Protection of Information.
(a)Disclosure to and Property of the Company.  All information, trade secrets, designs, ideas, concepts, improvements, product developments, discoveries and inventions, whether patentable or 

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not, that are conceived, made, developed or acquired by Employee, individually or in conjunction with others, during the term of his employment (whether during business hours or otherwise and whether on the Company’s premises or otherwise) that relate to the Company’s or any of its Affiliates’ business, products or services and all writings or materials of any type embodying any such matters (collectively, “Confidential Information”) shall be disclosed to the Company, and are and shall be the sole and exclusive property of the Company or its Affiliates.  Confidential Information does not, however, include any information that is available to the public other than as a result of any unauthorized act of Employee.
(b)No Unauthorized Use or Disclosure.  Employee agrees that Employee will preserve and protect the confidentiality of all Confidential Information and work product of the Company and its Affiliates, and will not, at any time during or after the termination of Employee’s employment with the Company, make any unauthorized disclosure of, and shall not remove from the Company premises, and will use reasonable efforts to prevent the removal from the Company premises of, Confidential Information or work product of the Company or its Affiliates, or make any use thereof, in each case, except in the carrying out of Employee’s responsibilities hereunder.  Notwithstanding the foregoing, Employee shall have no obligation hereunder to keep confidential any Confidential Information if and to the extent (i) such information becomes generally known to the public or within the relevant trade or industry other than due to Employee’s violation of this Section 6(b), or (ii) disclosure thereof is specifically required by law; provided, however, that in the event disclosure is required by applicable law and Employee is making such disclosure, Employee shall provide the Company with prompt notice of such requirement, and shall use commercially reasonable efforts to give such notice prior to making any disclosure so that the Company may seek an appropriate protective order, or (iii) Employee is making a good faith report of possible violations of applicable law to any governmental agency or entity or is making disclosures that are otherwise compelled by law or provided under the whistleblower provisions of applicable law.
(c)Remedies.  Employee acknowledges that money damages would not be a sufficient remedy for any breach of this Section 6 by Employee, and the Company or its Affiliates shall be entitled to enforce the provisions of this Section 6 by terminating payments then owing to Employee under this Agreement and/or by specific performance and injunctive relief as remedies for such breach or any threatened breach.  Such remedies shall not be deemed the exclusive remedies for a breach of this Section 6, but shall be in addition to all remedies available at law or in equity to the Company, including the recovery of damages from Employee and remedies available to the Company pursuant to other agreements with Employee.
(d)No Prohibition.  Nothing in this Section 6 shall be construed as prohibiting Employee, following the expiration of the 12 month period immediately following Employee’s termination of employment with the Company, from being employed by any Competing Business (as defined below) or engaging in any Prohibited Activity (as defined below); provided, that during such employment or engagement Employee complies with his obligations under this Section 6.
(e)Permitted Disclosures.  Nothing herein will prevent Employee from: (i) making a good faith report of possible violations of applicable law to any governmental agency or entity; or (ii) making disclosures that are protected under the whistleblower provisions of applicable law.  Further, an individual (including Employee) shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (A) is made (i) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  An individual who files a lawsuit for retaliation by an employer of reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (x) files any document containing the trade secret under seal; and (y) does not disclose the trade secret, except pursuant to court order.

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7.Non-Competition and Non-Solicitation.
(a)Definitions.  As used in this Agreement, the following terms shall have the following meanings:
(i)“Competing Business” means any business, individual, partnership, firm, corporation or other entity engaged in the exploration for and development and production of oil and natural gas.
(ii)“Prohibited Activity” means any service or activity on behalf of a Competing Business that involves the planning, management, supervision, or providing of services that are similar in nature or purpose to those services Employee provided to the Company within the last 12 months of Employee’s employment with the Company or any other activities that would involve the use or disclosure of Confidential Information.  
(iii)“Restricted Area” means those geographic regions identified as areas of current exploration and areas of development activity in the Company’s most recent Form 10-K and Form 10-Q, as applicable, filed with the U.S. Securities and Exchange Commission.  The parties stipulate that the forgoing is a reasonable area restriction because the area identified is the market area with respect to which Employee will help the Company provide its products and services, help analyze, and/or receive access to Confidential Information.  
(b)Protective Covenants and Restrictions.  Employee agrees that the following protective covenants are reasonable and necessary for the protection of the Company’s legitimate business interests, do not create any undue hardship on Employee, and are not contrary to the public interest:
(i)Non-compete.  Employee expressly covenants and agrees that, during the Employment Term and for 12 months following termination of Employee’s employment with the Company for any reason, he will not engage, directly or indirectly, in and he will not and will cause his Affiliates not to, directly or indirectly, own, manage, operate, join, control or participate in or be connected with, or loan money to or sell or lease equipment to, any Competing Business in the Restricted Area, other than pursuant to any oil and gas properties (I) owned by Employee as of the Effective Date hereof or (II) acquired by Employee after the Effective Date pursuant to inheritance, bequest or  the laws of descent or distribution.  In the event of Employee’s termination of employment by the Company for Cause or by the Employee without Good Reason, this Section 7(b)(i) shall cease to apply as of Employee’s Date of Termination, unless the Company continues to pay Employee his Base Salary in effect as of the Date of Termination for 12 months following termination of Employee’s employment.
(ii)Non-solicitation.  Employee further expressly covenants and agrees that during the Employment Term and for 24 months following termination of Employee’s employment with the Company for any reason, he will not and he will cause his Affiliates not to (A) cause, solicit, induce or encourage any individual who, on the Date of Termination, is an employee of the Company or its Affiliates to leave such employment or hire, employ or otherwise engage any such individual (other than employees of the Company or its Affiliates who respond to general advertisements for employment in newspapers or other periodicals of general circulation), or (B) cause, induce or encourage any actual or material prospective client, customer, supplier, landlord, lessor, or licensor of the Company or its Affiliates to terminate or modify any such actual or prospective relationship that exists on the Date of Termination.
(c)Permitted Ownership.  Notwithstanding any of the foregoing or anything else to the contrary in this Agreement, (i) Employee may own, for investment purposes only, up to 5% of the outstanding stock or other equity securities of any publicly held corporation or other entity whose stock or equity securities are either listed on a national securities exchange or on the NASDAQ National Market System, if Employee 

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is not otherwise affiliated with such corporation or entity and (ii) Employee is permitted to engage in the endeavors set forth on Exhibit A attached hereto.
(d)Reasonableness.  Employee and the Company agree and acknowledge that the limitations as to time, geographical area and scope of activity to be restrained as set forth in this Section 7 are the result of arm’s-length bargaining, are fair and reasonable, and do not impose any greater restraint than is necessary to protect the legitimate business interests of the Company in light of (i) the nature and wide geographic scope of the Company’s operations; (ii) Employee’s level of control over and contact with the Company’s business in the Restricted Area; (iii) the fact that the Company’s business is conducted throughout the Restricted Area; and (iv) the amount of compensation that Employee is receiving in connection with the performance of his duties hereunder.  
(e)Relief and Enforcement.  Employee hereby represents to the Company that he has read and understands, and agrees to be bound by, the terms of this Section 7.  It is the desire and intent of the parties hereto that the provisions of this Section 7 be enforced to the fullest extent permitted under applicable law, whether now or hereafter in effect.  However, to the extent that any part of this Section 7 may be found invalid, illegal or unenforceable for any reason, it is intended that such part shall be enforceable to the extent that a court of competent jurisdiction shall determine that such part, if more limited in scope, would have been enforceable, and such part shall be deemed to have been so written and the remaining parts shall as written be effective and enforceable in all events.  Employee and the Company further agree and acknowledge that, in the event of a breach or threatened breach of any of the provisions of this Section 7, the Company shall be entitled to immediate injunctive relief, as any such breach would cause the Company irreparable injury for which it would have no adequate remedy at law.  Nothing herein shall be construed so as to prohibit the Company from pursuing any other remedies available to it hereunder, at law or in equity, for any such breach or threatened breach.
(f)Consulting and Litigation Assistance.  Employee agrees that, during the period following Employee’s Date of Termination during which Employee remains subject to the non-compete provisions of Section 7(b)(i) above, upon request from the Company, Employee will assist the Company in a consulting capacity and/or cooperate with the Company and its Affiliates in the defense of any claims or actions that may be made by or against the Company or any of its Affiliates that affect Employee’s prior areas of responsibility, except if Employee’s reasonable interests are materially adverse to the Company or its Affiliates in such claim or action.  Notwithstanding anything to the contrary in the foregoing sentence, in the event the Company requests Employee’s assistance and/or cooperation pursuant to this Section 7(f), Employee shall not be required to devote more than five (5) hours per month to assisting the Company pursuant to this Section 7(f); provided, that if, at the request of the Company, the Employee agrees to devote in excess of five (5) hours per month to assisting the Company pursuant to this Section 7(f), then the Company will compensate Employee for each additional hour of assistance in excess of five (5) hours at an hourly rate of $250 per hour.
8.Release of Claims.  Notwithstanding any other provision in this Agreement to the contrary, in consideration for receiving the severance benefits described in Sections 5(b), 5(c)(iii), 5(c)(iv), 5(d)(i)C and/or 5(d)(i)D, as applicable, Employee hereby agrees to execute (and not revoke) a general release of claims against the Company and its Affiliates (excluding claims for indemnification, claims for coverage under officer and director policies, and claims as a stockholder of the Company).  If Employee fails to properly execute and deliver such release (or revokes the release), Employee agrees that Employee shall not be entitled to receive the severance benefits described in Sections 5(b), 5(c)(iii), 5(c)(iv), 5(d)(i)C and/or 5(d)(i)D, as applicable.  For purposes of this Agreement, a release shall be considered to have been executed by Employee if it is signed by Employee’s legal representative, in the case of Employee’s Disability, or on behalf of Employee’s estate in the case of Employee’s death.  

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9.General Provisions.
(a)Amendments and Waiver.  The terms and provisions of this Agreement may not be modified or amended, nor may any of the provisions hereof be waived, temporarily or permanently, except pursuant to a written instrument executed by the party to be bound by such modification or amendment.  The failure of any party to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms.
(b)Withholding.  The Company shall be entitled to withhold from any compensation, benefits, or amounts payable under this Agreement all federal, state, local or other taxes as may be required pursuant to any law or governmental regulation or ruling.
(c)Severability.  It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.  Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
(d)Entire Agreement.  This Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with respect to employment of Employee by the Company.  Without limiting the scope of the preceding sentence, all understandings and agreements preceding the date of execution of this Agreement and relating to the subject matter hereof are hereby null and void and of no further force and effect.
(e)Successors and Assigns.  Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective successors, permitted assigns, heirs and personal representatives and estates, as the case may be.  Anything contained herein to the contrary notwithstanding, unless otherwise expressly provided in this Agreement, neither this Agreement nor any right or obligation hereunder of any party may be assigned or delegated without the prior written consent of the other party hereto; provided, however, that the Company may assign this Agreement to any of its Affiliates.  Except as expressly provided herein, this Agreement shall not confer any rights or remedies upon any person or legal entity other than the parties hereto and their respective successors and permitted assigns.
(f)Notices.  For purposes of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given (i) when received, if delivered personally or by courier, (ii) on the date receipt is acknowledged, if delivered by certified mail, postage prepaid, return receipt requested, or (iii) one day after transmission, if sent by facsimile transmission with confirmation of transmission, as follows:
If to Employee, at:    6 Desta Drive, Suite 6500
Midland, Texas  79705

If to the Company, at    c/o Mel G. Riggs
6 Desta Drive, Suite 6500

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Midland, Texas  79705

or to such other address as either party may furnish to the other in writing in accordance herewith, except that notices or changes of address shall be effective only upon receipt.
(g)Construction.  Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates.  The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party.   The word “including” means “including, without limitation.”
(h)Governing Law; Venue; Jury-Trial Waiver.  The parties (i) agree that the provisions of this Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without giving effect to any choice of law or conflicting provision or rule, except where federal law may preempt the application of state law; (ii) submit and consent to the exclusive jurisdiction, including removal jurisdiction, of the state and federal courts located in Midland County, Texas for any action or proceeding relating to this Agreement or Employee’s employment; (iii) waive any objection to such venue; (iv) agree that any judgment in any such action or proceeding may be enforced in other jurisdictions; and (v) IRREVOCABLY WAIVE THE RIGHT TO TRIAL BY JURY AND AGREE NOT TO ASK FOR A JURY IN ANY SUCH PROCEEDING. 
(i)Mutual Contribution.  No provision of this Agreement shall be construed against any party on the grounds that such party drafted the provision or caused it to be drafted. 
(j)Compensation Recoupment.  Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”), the compensation payable pursuant to this Agreement shall not be deemed fully earned or vested, even if paid or distributed to Employee, if such compensation or any portion thereof is deemed incentive compensation and subject to recovery, or “clawback,” by the Company pursuant to the provisions of the Act and any rules or regulations promulgated thereunder or by any stock exchange on which the Company’s common stock is listed (the “Rules”).  In addition, Employee hereby acknowledges that this Agreement may be amended to the minimum extent necessary and/or shall be subject to any recoupment policies adopted by the Company, including any policies to comply with the requirements and/or limitations under the Act and the Rules or any other federal or stock exchange requirements, including by expressly permitting (or, if applicable, requiring) the Company to revoke, recover, and/or clawback any compensation payable pursuant to this Agreement that is deemed incentive compensation.
10.Section 409A of the Code.  This Agreement is intended to either avoid the application of, or comply with, Section 409A of the Code.  To that end this Agreement shall at all times be interpreted in a manner that is consistent with Section 409A of the Code.  Notwithstanding any other provision in this Agreement to the contrary, the Company shall have the right, in its sole discretion, to adopt such amendments to this Agreement or take such other actions (including amendments and actions with retroactive effect) as it determines is necessary or appropriate for this Agreement to comply with Section 409A of the Code.  Further:
(a)Any reimbursement of any costs and expenses by the Company to Employee under this Agreement shall be made by the Company in no event later than the close of Employee’s taxable year following the taxable year in which the cost or expense is incurred by Employee.  The expenses incurred by Employee in any calendar year that are eligible for reimbursement under this Agreement shall not affect the expenses incurred by Employee in any other calendar year that are eligible for reimbursement hereunder and Employee’s right to receive any reimbursement hereunder shall not be subject to liquidation or exchange for any other benefit.

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(b)A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Section 409A of the Code and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  Any payment following a separation from service that would be subject to Section 409A(a)(2)(A)(i) of the Code as a distribution following a separation from service of a “specified employee” (as defined under Section 409A(a)(2)(B)(i) of the Code) shall be made on the first to occur of (i) ten (10) days after the expiration of the six month period following such separation from service, (ii) death or (iii) such earlier date that complies with Section 409A of the Code.  Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section 10(b) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to Employee in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.
(c)Each payment that Employee may receive under this Agreement shall be treated as a “separate payment” for purposes of Section 409A of the Code.     
[Remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the Effective Date.
    
CLAYTON WILLIAMS ENERGY, INC.

	
				
	 
	 
	By:
	/s/ Mel G. Riggs

	 
	 
	 
	Name:  Mel G. Riggs

	 
	 
	 
	Title:  President

	 
	 
	 
	 

EMPLOYEE:

	
				
	 
	 
	 
	/s/ Patrick G. Cooke

	 
	 
	 
	Patrick G. Cooke

	 
	 
	 
	 

	 
	 
	 
	 

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EXHIBIT A
PERMITTED ENDEAVORS

1.    Vineyard operations on existing land.
2.    Bed and Breakfast operation on existing land.
3.    Cattle/Hunting operation.
4.    Board member for Engineering Missions (charity).

Exhibit A
HOU:3720997.2EX-4.4

 Exhibit 4.4 
  

 
 SECOND SUPPLEMENTAL INDENTURE 

Dated as of October 25, 2016 
 to
the Indenture 
 Dated as of November 1, 1996 

between 
 ENERSIS AMÉRICAS
S.A. 
 (formerly named Enersis S.A.) 

and 
 THE BANK OF NEW YORK MELLON

 (as successor trustee to The Chase Manhattan Bank) 

as Trustee 
  

 

 THIS SECOND SUPPLEMENTAL INDENTURE, dated as of October 25, 2016 (this “Second
Supplemental Indenture”) between ENERSIS AMÉRICAS S.A., a Chilean sociedad anónima abierta formerly named Enersis S.A. (hereinafter called the “Company”), and THE BANK OF NEW YORK MELLON, a New York banking
corporation (as successor trustee to The Chase Manhattan Bank), as trustee (the “Trustee”). 
 W I T
N E S S E T H: 
 WHEREAS, there has previously been executed and delivered to the Trustee
an Indenture dated as of November 1, 1996 between the Company, acting directly and through its Cayman Islands branch, and the Trustee as successor trustee to the original trustee, The Chase Manhattan Bank, as amended and supplemented by the First
Supplemental Indenture dated as of July 24, 2009 (as amended and supplemented, the “Indenture”), providing for the issuance of Securities in one or more series from time to time; and 

WHEREAS, the Company has caused its Cayman Islands branch to be terminated; and 

WHEREAS, pursuant to Section 301 of the Indenture, the Company may establish, as authorized by its Board of Directors, the form, terms and
provisions of a series of Securities to be issued under the Indenture in one or more supplemental indentures to the Indenture; and 

WHEREAS, the Company intends to issue US$600,000,000 aggregate principal amount of a new series of Securities under the Indenture designated
as 4.000% Notes due 2026 (such 4.000% Notes due 2026 are herein referred to as the “Notes”) and desires to establish the form, terms and provisions of such series herein, including certain redemption and repurchase rights and certain
covenants of the Company; and 
 WHEREAS, all acts and proceedings required by law, by the Indenture, by the Company and by the Trustee to
constitute this Second Supplemental Indenture as a valid and binding agreement for the uses and purposes set forth herein, in accordance with its terms, have been done and taken, and the execution and delivery of this Second Supplemental Indenture
has been in all respects duly authorized by the Company and the Trustee; 
 NOW, THEREFORE, in consideration of the foregoing, the Company
and the Trustee hereby agree as follows: 
 ARTICLE 1 

DEFINITIONS 
 Section 1.01
Defined Terms; References. Unless otherwise specifically defined herein, each term used herein that is defined in the Indenture has the meaning assigned to 

  
 2 

 
such term in the Indenture. Each reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and each reference to
“this Indenture” and each other similar reference contained in the Indenture shall, after this Second Supplemental Indenture becomes effective, refer to the Indenture as amended hereby. 

ARTICLE 2 
 THE NOTES 

Section 2.01 The Notes. The Indenture is hereby supplemented to incorporate the form, terms and provisions of the series of Notes
designated as the 4.000% Notes due 2026 of the Company to be issued under the Indenture, which form, terms and provisions are set forth in the form of the Notes attached hereto as Exhibit A and in this Supplemental Indenture. The Company
may issue additional notes of the series of Notes designated as the 4.000% Notes due 2026; provided that if the additional notes are not fungible with the 4.000% Notes due 2026 for U.S. federal income tax purposes, the additional notes will have a
separate CUSIP number. The Notes shall be issued in minimum denominations of US$1,000 and integral multiples of US$1,000 in excess thereof. 

ARTICLE 3 
 REDEMPTION OF
SECURITIES 
 Section 3.01 Optional Redemption. The Indenture is hereby supplemented to incorporate the following rights of
redemption solely with respect to the Notes (and not with respect to any other series of Securities): 
 (a) Optional redemption. The
Company may redeem the Notes, in whole or in part, at any time and from time to time beginning on the date that is 90 days prior to the Stated Maturity of the Notes, at its option at a Redemption Price equal to 100% of the principal amount of the
Notes to be redeemed, plus accrued and unpaid interest, if any, on the principal amount of the Notes being redeemed to the Redemption Date. 

Notwithstanding the foregoing, payments of interest on the Notes that are due and payable on or prior to a Redemption Date for the Notes will
be payable to the Holders of such Notes registered as such at the close of business on the Regular Record Dates, according to the terms and provisions of Section 307 of the Indenture. 

Unless the Company defaults in the payment of the Redemption Price, on and after the Redemption Date for the Notes, interest will cease to
accrue on the Notes called for redemption. 
 (b) Make-whole redemption. The Company may redeem the Notes, in whole or in part,
at any time and from time to time, at the Company’s option, according to the terms and provisions of Section 1104 of the Indenture, at a Redemption Price calculated by the Company equal to the greater of (1) 100% of the then outstanding
principal amount of the 

  
 3 

 
Notes to be redeemed, and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed discounted to the Redemption Date on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus 40 basis points, in each case, plus accrued and unpaid interest, if any, on the principal amount of the Notes being redeemed to the
Redemption Date. 
 Solely for purposes of this Section 3.01(b), the following definitions will apply: 

“Comparable Treasury Issue” means the United States Treasury security selected by the Independent Investment Banker as having a
maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to
the remaining term of such Notes. 
 “Comparable Treasury Price” means, with respect to the Redemption Date, (1) the average of
four Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such Reference Treasury Dealer Quotations. 
 “Independent Investment Banker” means one of the
Reference Treasury Dealers. 
 “Reference Treasury Dealer” means Citigroup Global Markets Inc., J.P. Morgan Securities LLC or
Morgan Stanley & Co. LLC or any of their respective affiliates and any successors thereto which are primary United States government securities dealers and not less than three other leading primary United States government securities dealers in
New York City reasonably designated by the Company; provided that if any of the foregoing cease to be a primary United States government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute
therefor another Primary Treasury Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the
Independent Investment Banker by such Reference Treasury Dealer at or about 3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. 

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity
or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

  
 4 

 ARTICLE 4 

EVENTS OF DEFAULT 
 Section 4.01
Section 501(4) of the Indenture is hereby amended and restated in its entirety, solely for the purpose of the Notes (and not with respect to any other series of Securities), to read as follows: 

“(4) the Company or any Significant Subsidiary shall default in the payment of principal of, or interest on, any individual note,
bond, coupon or other instrument or agreement evidencing or pursuant to which there is outstanding Indebtedness of the Company or any of its Significant Subsidiaries, whether such Indebtedness now exists or shall hereafter be created, having a
principal amount exceeding US$150,000,000 (or its equivalent in any other currency), other than the Securities of that series, by the Company or any of its Significant Subsidiaries, when the Indebtedness shall become due and payable (whether at
maturity, upon redemption or acceleration or otherwise), if such default shall continue for more than the period of grace, if any, originally applicable thereto and the time for payment of such amount has not been expressly extended; or” 

ARTICLE 5 
 MISCELLANEOUS
AMENDMENTS 
 Section 5.01 The Indenture is hereby amended as set forth below, solely for the purpose of the Notes (and not with respect to
any other series of Securities): 
  

	 	(a)	Section 101 of the Indenture is hereby amended to (i) delete the defined term “Chilean Subsidiary” and (ii) replace each reference to “Chilean Subsidiary” in the definition of Significant Subsidiary
with the term “Subsidiary”. 

  

	 	(b)	Each reference to the phrase “the Cayman Islands or” in Sections 113(a), 308(a), 308(b), 401(d) and 1204(8) of the Indenture is hereby deleted; 

 

	 	(c)	The reference to the phrase “any political subdivision of governmental authority of either or in either” in Section 401(d) of the Indenture is hereby amended to read “any political subdivision or
governmental authority thereof or therein”; 

  

	 	(d)	The address of C T Corporation System of “1633 Broadway, New York, New York 10019” in Section 113(b) of the Indenture is hereby replaced with “111 Eighth Avenue, New York, New York 10011”;

  

	 	(e)	The reference to the phrase “The Company shall not consolidate with or merge into any other corporation or convey or transfer its properties and assets substantially as an entirety to any Person, unless” in
Section 801 of the Indenture is hereby amended to read “The Company shall not consolidate with or merge into or convey or transfer its properties and assets substantially as an entirety to any Person, unless”; 

  
 5 

	 	(f)	The reference to the phrase “the corporation formed by such consolidation or into which the Company is merged or the Person which acquires assets of the Company substantially as an entirety” in Section 801(1)
of the Indenture is hereby replaced by the term “the successor”; and 

  

	 	(g)	The first clause of the first sentence of Section 6.02 of the Indenture is replaced in its entirety to read as follows: 

“Within 30 days after the Trustee receives a written notice of any default hereunder with respect to the Notes, the Trustee shall transmit
by mail to all Holders of the Notes, as their names and addresses appear in the Security Register, notice of such default hereunder notified to the Trustee, unless such default shall have been cured or waived;” 

 

	 	(h)	Sections 1204(1), 1204(2) and 1204(3) of the Indenture are replaced in their entirety to read as follows: 

“(1) The Company shall irrevocably have deposited or caused to be deposited with the Trustee (or another Trustee satisfying the
requirements of Section 609 who shall agree to comply with the provisions of this Article Twelve applicable to it) in trust for the purpose of making the following payments specifically pledged as security for, or dedicated solely to, the benefit of
the Holders, (A) cash, and/or (B) U.S. Government Obligations that through the payment of interest and principal in respect thereof in accordance with their terms will provide cash sufficient, in the opinion of an internationally recognized firm of
independent public accountants, to pay and discharge the principal of, and each installment of interest (including Additional Amounts) on, the Notes on the Stated Maturity of such principal or installment of interest in accordance with the terms of
the Notes.” 
 “(2) In the case of an election under Section 1202, the Company shall have delivered to the Trustee an Opinion of
Counsel stating that (x) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (y) since the date of this Indenture there has been a change in the applicable United States Federal income tax law, in
either case to the effect that, and based thereon, such opinion shall confirm that, the beneficial owners of the Outstanding Securities with respect to such series of Securities will not recognize gain or loss for United States Federal income tax
purposes as a result of such deposit, defeasance and discharge and will be subject to United States Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such deposit, defeasance and
discharge had not occurred.” 

  
 6 

 “(3) In the case of an election under Section 1203, the Company shall have delivered to the
Trustee an Opinion of Counsel to the effect that the beneficial owners of the Outstanding Securities of the applicable series will not recognize gain or loss for United States Federal income tax purposes as a result of such deposit and covenant
defeasance and will be subject to United States Federal income tax on the same amounts, in the same manner and at the same time as would have been the case if such deposit and covenant defeasance had not occurred.” 

 

	 	(i)	Section 606 of the Indenture is replaced in its entirety to read as follows: 

 “Money held
by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall hold funds related to the Notes uninvested without liability for interest, unless otherwise agreed in writing.”

 ARTICLE 6 
 MISCELLANEOUS
PROVISIONS 
 Section 6.01 For all purposes of this Second Supplemental Indenture, except as otherwise herein expressly provided or unless
the context otherwise requires the terms and expressions used herein shall have the same meanings as corresponding terms and expressions used in the Indenture. 

Section 6.02 The Trustee accepts the amendment of the Indenture effected by this Second Supplemental Indenture and agrees to execute the trust
created by the Indenture, as hereby amended. 
 Section 6.03 The recitals herein contained are made by the Company and not by the Trustee,
and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this Second Supplemental Indenture and all of the provisions contained in the Indenture in respect
of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of this Second Supplemental Indenture as fully and with like effect as set forth in full herein. 

Section 6.04 This Second Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and as
supplemented and modified hereby, the Indenture is in all respects ratified and confirmed, and the Indenture and this Second Supplemental Indenture shall be read, taken and construed as one and the same instrument and every Securityholder with
respect to the Notes, whether heretofore or hereafter authenticated and delivered, shall be bound hereby. Notwithstanding anything herein to the contrary, to the extent there is any conflict between any provision of this Second Supplemental
Indenture and any provision of the Indenture, the terms of this Second Supplemental Indenture shall prevail. 

  
 7 

 Section 6.05 In case any one or more of the provisions contained in this Second Supplemental
Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 6.06 This Second Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York
without giving effect to the conflict of laws provisions thereof. This Second Supplemental Indenture is subject to, and conforms with, the provisions of the Trust Indenture Act of 1939, as amended, that are required to be part of this Second
Supplemental Indenture and shall, to the extent applicable, be governed by such provisions. 
 Section 6.07 EACH OF THE COMPANY AND THE
TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SECOND SUPPLEMENTAL INDENTURE, THE NOTES OR THE TRANSACTION
CONTEMPLATED HEREBY. 
 Section 6.08 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. 
 Section 6.09 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. The Trustee shall not be required to risk or expend its own funds in performing any of its obligations if it shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk is not reasonably assured to it. 
 Section 6.10 The Trustee shall act at the instruction or other
directions of any person upon which the Trustee is authorized to rely pursuant to the terms of the Indenture, and shall not be liable for such actions, except to the extent caused by Trustee as result of the gross negligence or willful misconduct of
the Trustee. 
 Section 6.11 The Trustee agrees to accept and act upon notice, instructions or directions pursuant to the Indenture sent by
unsecured e-mail, facsimile transmission or other similar unsecured electronic methods. 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 

  
 8 

 
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 of interception and misuse by third parties. The Trustee shall not be responsible for any loss or damage resulting
from any action or nonaction based on its good faith reliance upon any opinion or advice of counsel provided under Section 603(d) of the Indenture for any errors in judgment made in good faith. 

Section 6.12 Except for such additional information, documents and reports with respect to the Company’s compliance with the conditions
and covenants under the Indenture as required by Section 704(b) of the Indenture, delivery of any reports, information or documents to the Trustee pursuant to Section 704 of the Indenture is for informational purposes only and the
Trustee’s receipt of such shall not constitute actual or constructive knowledge or notice of any information contained therein or determinable from information contained therein. 

Section 6.13 The Trustee shall not be liable for any tax withholding obligations it may have and the Company shall comply upon request with
all information required for such withholding obligations. 
 Section 6.14 Notwithstanding anything else in the Indenture, the Company shall
pay or cause to be paid in immediately available funds to the Trustee at an account designated by the Trustee in writing one Business Day prior to any date of payment, including, but not limited to, the Interest Payment Date, with respect to each
Note issued hereunder.
 Section 6.15 This Second Supplemental Indenture may be executed in any number of counterparts, each of which will
be deemed to be an original, but all such counterparts together will constitute one and the same instrument. 

  
 9 

 IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be duly executed as of
October 25, 2016. 
  

							
	ENERSIS AMÉRICAS S.A.
		
	By:	 	 /s/ Luca D’Agnese

		 	Name:	 	Luca D’Agnese
		 	Title:	 	Chief Executive Officer
		
	By:	 	 /s/ Javier Galán A.

		 	Name:	 	Javier Galán A.
		 	Title:	 	Chief Financial Officer
	
	 THE BANK OF NEW YORK MELLON,

    as Trustee,

		
	By:	 	 /s/ James W. Briggs

		 	Name:	 	James W. Briggs
		 	Title:	 	Vice President

  
 10 

 EXHIBIT A 

Form of Note 

 FACE OF NOTE 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”
OR THE “DEPOSITARY”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 THIS SECURITY IS A GLOBAL SECURITY AS REFERRED TO IN THE INDENTURE
HEREINAFTER REFERENCED. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR INDIVIDUAL SECURITIES, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE (A) BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR (B) BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR (C) BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 

  
 1 

 ENERSIS AMÉRICAS S.A. 

4.000% Notes due 2026 
  

			
	Registered	 	US$[        ]
	No. R-1	 	CUSIP 29274F AF1
		 	ISIN US29274FAF18

 Enersis Américas S.A., a Chilean stock corporation (“sociedad anónima abierta”)
(herein called the “Company”, which term includes any successor under the Indenture hereinafter referred to), for value received, hereby promises to pay to 

Cede & Co. 
 or registered assigns, the
principal sum as set forth on the Schedule of Increases or Decreases annexed hereto at the office or agency of the Company in the Borough of Manhattan, The City of New York (the “Place of Payment”) on October 25, 2026 by wire transfer
of immediately available funds in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest on said principal sum semiannually on
April 25 and October 25 of each year, commencing on April 25, 2017, at said office or agency, in like coin or currency, at the rate per annum specified in the title hereof, from the April 25 or October 25, as the case may be, next
preceding the date of this Note to which interest on the Notes has been paid or duly provided for (unless the date hereof is the date to which interest on the Notes has been paid or duly provided for, in which case from the date of this Note), or,
if no interest has been paid on these Notes or duly provided for, from October 25, 2016 (the “Original Issue Date”), until payment of said principal sum has been made or duly provided for. Notwithstanding the foregoing, if the
date hereof is after the April 10 or October 10 and before the next succeeding April 25 or October 25, this Note shall bear interest from such April 25 or October 25, as the case may be; provided, however, that if
the Company shall default in the payment of interest due on such April 25 or October 25, then this Note shall bear interest from the next preceding April 25 or October 25 to which interest on the Notes has been paid or duly provided
for, or, if no interest has been paid on the Notes or duly provided for, from the Original Issue Date. The interest so payable, and punctually paid or duly provided for, on any April 25 or October 25 will, except as provided in the
Indenture referred to on the reverse hereof, be paid by wire transfer of immediately available funds to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the next preceding
April 10 or October 10, as the case may be (herein called the “Regular Record Date”), whether or not a Business Day, or may, at the option of the Company, unless this Note is a Global Security, be paid by check mailed to the
registered address of such Person. Any such interest which is payable but is not so punctually paid or duly provided for, shall forthwith cease to be payable to the registered Holder on such Regular Record Date and may be paid either to the
Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Notes not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed and upon

  
 2 

 
such notice as may be required by such exchange, if such manner of payment shall be deemed practical by the Trustee, all as more fully provided in said Indenture. Notwithstanding the
foregoing, in the case of interest payable at the Stated Maturity, such interest shall be paid to the same Person to whom the principal hereof is payable. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. 

All payments of or in respect of principal and interest in respect of this Note shall be made free and clear of, and without withholding or
deduction for or on account of, any present or future taxes, penalties, duties, fines, assessments or other governmental charges (or interest on any of the foregoing) of whatsoever nature (collectively, “Taxes”) imposed, levied, collected,
withheld or assessed by, within or on behalf of the Republic of Chile or any political subdivision or governmental authority thereof or therein having power to tax, unless such withholding or deduction is required by law. In such event, the
Company shall pay to each Holder such additional amounts (“Additional Amounts”) as may be necessary to ensure that the net amount received by Holders of the Notes after such withholding or deduction shall equal the respective amounts of
principal and interest that would have been received in respect of this Note in the absence of such withholding or deduction. However, the obligation to pay Additional Amounts shall not apply to: (i) any Taxes that would not have been
imposed but for (a) the presentation of this Note, where presentation is required for payment, more than 30 days after the later of (x) the date on which such payment first became due and (y) if the full amount payable has not been
received in the Place of Payment by the Trustee on or prior to such due date, the date on which, the full amount having been so received, notice to that effect shall have been given to the Holders by the Trustee, except to the extent that the Holder
would have been entitled to such Additional Amounts on presenting this Note for payment on the last day of such period of 30 days; (b) the existence of any present or former, direct or indirect, connection between the Holder (or between a
fiduciary, settler, beneficiary, member or shareholder of the Holder, if the Holder is an estate, a trust, a partnership, a limited liability company or a corporation) and the Republic of Chile (or any political subdivision or governmental authority
thereof or therein), other than the mere holding of this Note or the receipt of principal, interest, or other amounts in respect hereof; or (c) any combination of (a) and (b) above. All references to principal, interest and other amounts
payable hereunder shall be deemed to include references to any Additional Amounts which may be payable as set forth in the Indenture or in this Note. 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been manually executed
by or on behalf of the Trustee under the Indenture, this Note shall not be entitled to any benefits under the Indenture, or be valid or obligatory for any purpose. 

The terms and conditions of this Note, to the extent they are inconsistent with any terms and conditions of the Indenture, shall supersede
such terms and conditions of the Indenture which shall have no force and effect with respect to this Note; except that the provisions of Section 107 of the Indenture shall not be so superseded. 

  
 3 

 IN WITNESS WHEREOF, ENERSIS AMÉRICAS S.A. has caused this Note to be duly executed. 

 

							
	Dated: October 25, 2016	 		 	ENERSIS AMÉRICAS S.A.
				
		 		 	By:	 	  

		 		 		 	Name:
		 		 		 	Title:
				
		 		 	By:	 	  

		 		 		 	Name:
		 		 		 	Title:

  
 4 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

 

			
	 THE BANK OF NEW YORK MELLON,
 as
Trustee

		
	By:	 	  

		 	Authorized Officer
		
	Dated:	 	  

  
 5 

 REVERSE OF NOTE 

This Note is one of the duly authorized issue of notes, debentures, bonds or other evidences of indebtedness (hereinafter called the
“Securities”) of the Company, of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture dated as of November 1, 1996, as amended and supplemented by the First Supplemental Indenture dated as of
July 24, 2009 and the Second Supplemental Indenture dated as of October 25, 2016 (as amended and supplemented, herein called the “Indenture”), duly executed and delivered by the Company and THE BANK OF NEW YORK MELLON (as successor
trustee to THE CHASE MANHATTAN BANK), as Trustee (herein called the “Trustee”), to which Indenture and any other indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights,
obligations, duties and immunities thereunder of the Trustee and any agent of the Trustee, any Paying Agent, the Company and the Holders of the Securities and the terms upon which the Securities are issued and are to be authenticated and delivered.

 The Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may
mature at different times, may bear interest (if any) at different rates, may be subject to different redemption provisions (if any), may be subject to different sinking, purchase or analogous funds (if any), may be subject to different covenants
and Events of Default and may otherwise vary as provided or permitted in the Indenture. This Note is one of the series of Securities of the Company issued pursuant to the Indenture and designated as 4.000% Notes Due 2026 (herein called the
“Notes”), limited in aggregate principal amount to $600,000,000. Pursuant to the terms of Section 301 of the Indenture, additional Notes of this series may be issued from time to time; provided that if the additional Notes are
not fungible with the Notes for U.S. federal income tax purposes, the additional Notes will have a separate CUSIP number. 
 The Company may
redeem the Notes, in whole or in part, at any time and from time to time, beginning on the date that is 90 days prior to the scheduled maturity of the Notes, at the Company’s option, according to the terms and provisions of Section 1104 of the
Indenture, at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, on the principal amount of the Notes being redeemed to the Redemption Date. 

Notwithstanding the foregoing, payments of interest on the Notes that are due and payable on or prior to a Redemption Date for the Notes will
be payable to the Holders of such Notes registered as such at the close of business on the Regular Record Dates according to the terms and provisions of Section 307 of the Indenture. 

Unless the Company defaults in the payment of the Redemption Price, on and after the Redemption Date for the Notes, interest will cease to
accrue on the Notes called for redemption. 
 The Company may redeem the Notes, in whole or in part, at any time and from time to time, at
the Company’s option, according to the terms and provisions of Section 1104 of the Indenture, at a Redemption Price calculated by the Company equal to the greater of (1) 100% of the then outstanding principal amount of the Notes to be redeemed,
and (2) the sum of the 

  
 R-1 

 
present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed discounted to the Redemption Date on a semiannual basis (assuming a 360-day year
consisting of twelve 30-day months) at the applicable Treasury Rate plus 40 basis points, in each case plus accrued and unpaid interest, if any, on the principal amount of the Notes being redeemed to the Redemption Date. 

“Comparable Treasury Issue” means the United States Treasury security selected by the Independent Investment Banker as having a
maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to
the remaining term of such Notes. 
 “Comparable Treasury Price” means, with respect to the Redemption Date, (1) the average of
four Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such Reference Treasury Dealer Quotations. 
 “Independent Investment Banker” means one of the
Reference Treasury Dealers. 
 “Reference Treasury Dealer” means Citigroup Global Markets Inc., J.P. Morgan Securities LLC or
Morgan Stanley & Co. LLC or any of their respective affiliates and any successors thereto which are primary United States government securities dealers and not less than three other leading primary United States government securities dealers in
New York City reasonably designated by us; provided that if any of the foregoing cease to be a primary United States government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute therefor another
Primary Treasury Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any
Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent
Investment Banker by such Reference Treasury Dealer at or about 3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. 

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity
or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

 The Company may redeem the Notes as a whole, but not in part, according to the terms and provisions of Section 1104 of the Indenture,
upon giving not less than 30 nor more than 60 days’ notice to the Holders of the Notes at a Redemption Price equal to 100% of the principal amount of Notes being redeemed, plus accrued and unpaid interest, if any, to the Redemption Date, only
if (i) the Company certifies to the Trustee immediately prior to the giving of such notice that either it has or will become obligated to pay Additional Amounts with respect 

  
 R-2 

 
to the Notes in excess of Additional Amounts that would be payable if payments of interest on the Notes subject to a 4.0% withholding tax (“Excess Additional Amount”) as a result of any
change in or amendment to the laws or regulations of the Republic of Chile or any political subdivision or governmental authority thereof or therein having power to tax, or any change in the application or official interpretation of such laws or
regulations, which change or amendment occurs after the date of issuance of the Notes, and (ii) such obligation cannot be avoided by the Company taking reasonable measures available to it; provided, however, that no such notice of
redemption shall be given earlier than 60 days prior to the earliest date on which the Company would be obligated to pay such Excess Additional Amounts if a payment in respect of the Notes were then due. Prior to the giving of any notice of
redemption of the Notes pursuant to the Indenture, the Company shall deliver to the Trustee an Officers’ Certificate, stating that the Company is entitled to effect such redemption in accordance with the terms set forth in the Indenture and
setting forth in reasonable detail a statement of the facts relating thereto (together with a written Opinion of Counsel to the effect that the Company has become obligated to pay such Excess Additional Amounts as a result of a change or amendment
described herein and that the Company cannot avoid payment of such Excess Additional Amounts, by taking reasonable measures available to it and that all governmental approvals necessary for the Company to effect such redemption have been obtained
and are in full force and effect or specifying any such necessary approvals that as of the date of such opinion have not been obtained). 

If an Event of Default with respect to the Notes shall occur and be continuing, the principal of all of the Notes may be declared due and
payable in the manner, with the effect and subject to the conditions provided in the Indenture. 
 The Indenture permits, with certain
exceptions as therein provided, the Company and the Trustee to enter into supplemental indentures to the Indenture for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or
modifying in any manner the rights of the Holders of the Securities of each series under the Indenture with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities at the time Outstanding of each series
to be affected thereby on behalf of the Holders of all Securities of such series. The Indenture also permits the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of each series, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults and their consequences with respect to such series under the Indenture. Any such consent or waiver
by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Notes issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Note or such other Notes. In addition, subject to certain exceptions set forth in the Indenture, without the consent of any Holder, the Company and the Trustee may amend the Indenture or the Notes to
make changes that do not adversely affect the rights of any Holder. 
 No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the place, rate and respective times and in the coin or currency herein and in the
Indenture prescribed. 

  
 R-3 

 The Indenture contains provisions for defeasance at any time of (a) the entire indebtedness of
this Note and (b) certain restrictive covenants, upon compliance by the Company with certain conditions set forth therein. 
 The Notes are
issuable in fully registered form without coupons in denominations of $1,000 and any integral multiple of $1,000. Notes may be exchanged for a like aggregate principal amount of Notes of other authorized denominations at the office or agency of the
Company in the Borough of Manhattan, The City of New York, designated for such purpose and in the manner and subject to the limitations provided in the Indenture. 

The Trustee will be the Paying Agent and the Security Registrar with respect to the Notes. The Company reserves the right at any time to vary
or terminate the appointment of any Paying Agent or Security Registrar, to appoint additional or other Paying Agents and other Security Registrars, which may include the Company, and to approve any change in the office through which any Paying Agent
or Security Registrar acts; provided that there will at all times be a Paying Agent in The City of New York, that there will be no more than one Security Registrar for the Notes. 

Upon due presentment for registration of transfer of this Note at the office or agency of the Company in the Borough of Manhattan, The City of
New York, designated for such purpose, a new Note or Notes of authorized denominations for a like aggregate principal amount will be issued to the transferee in exchange therefor, subject to the limitations provided herein or in the Indenture. 

No charge shall be made for any such transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other
governmental charge imposed in connection therewith. 
 The Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note is overdue, and none of the Company, the Trustee or any such agent shall be affected by notice to the contrary. 

Unless otherwise defined herein, all terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in the
Indenture. 
 This Note shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to
the conflict of laws provisions thereof. 

  
 R-4 

 ABBREVIATIONS 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations: 
  

																					
	TEN COM -	 	as tenants in common	 		 		 		 		 		 		  	
	TEN ENT -	 	as tenants by the entireties	 		 		 		 		 		 		  	
	JT TEN -	 	as joint tenants with right of survivorship and not as tenants in common	 		 		 		 		 		 		  	
	UNIF GIFT	 		 		 		 		 		 		 		 		 		  	
	MIN ACT -	 		 		 		 	Custodian    	 		 		 		  	
		 		 	  
	 		 	  
	  	
		 		 	        (Cust)	 		 		 		 		 	(Minor)        	  	
		 		 	under Uniform Gifts to Minors	 		 		 		 		 		  	
		 		 	Act	 	  
	  	
		 		 		 	(State)	 		 		 		 		 		  	
			
	Additional abbreviations may also be used though not in the above list.	 		  	
						
		 		 	  
	 		 		  	

  
 R-5 

 ASSIGNMENT FORM 

FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto 

 
  
  

 
 PLEASE INSERT SOCIAL SECURITY OR 

OTHER IDENTIFYING NUMBER OF ASSIGNEE 

			
	 	  	
	  	
	  	
	  	
	  	
	  	 
	
	  

	  

 (Please print or typewrite name and address 

including postal zip code of assignee) 
  

 
 the within Note and all rights thereunder, and hereby
irrevocably constitutes and appoints 
  
  

Attorney to transfer said Note on the books of the Company, with full power of substitution in the premises. 

 

							
	Dated:	 	  
	 		 	
				
		 		 		 	  

		 		 		 	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change whatever.

  
 R-6 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 

The initial principal amount of this Global Security is US$[        ]. The following increases or
decreases in this Global Security have been made: 
  

									
	 Date of Exchange
	  	Amount of
decrease in
Principal
Amount of this
Global Security	  	Amount of
increase in
Principal
Amount of this
Global Security	  	Principal amount
of this Global
Security
following such
decrease or
increase	  	Signature of
authorized
signatory of
Trustee or
Securities
Custodian
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  
 R-7

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