Document:

Document

Exhibit 10.1

			
	

$550,000,000

Earthstone Energy Holdings, LLC
8.000% Senior Notes due 2027
PURCHASE AGREEMENT

Dated:  April 7, 2022

TABLE OF CONTENTS
Page
						
	SECTION 1. Representations and Warranties
	2

	SECTION 2. Sale and Delivery to Initial Purchasers; Closing; Agreements to Sell,                     Purchase and Resell
	17

	SECTION 3. Covenants of the Company and the Guarantors
	18

	SECTION 4. Payment of Expenses
	22

	SECTION 5. Conditions of Initial Purchasers’ Obligations
	22

	SECTION 6. Indemnification
	25

	SECTION 7. Contribution
	27

	SECTION 8. Representations, Warranties and Agreements to Survive Delivery
	28

	SECTION 9. Termination of Agreement
	28

	SECTION 10. Default by One or More of the Initial Purchasers
	29

	SECTION 11. Notices
	30

	SECTION 12. Parties
	30

	SECTION 13. GOVERNING LAW AND TIME
	30

	SECTION 14. Effect of Headings
	30

	SECTION 15. Definitions
	30

	SECTION 16. Permitted Free Writing Documents
	31

	SECTION 17. Absence of Fiduciary Relationship
	32

	SECTION 18. Research Analyst Independence and Other Activities of the Initial Purchasers
	32

	SECTION 19. Waiver of Jury Trial
	33

	SECTION 20. Consent to Jurisdiction
	33

	SECTION 21. Compliance with USA Patriot Act.
	33

	SECTION 22. Recognition of the U.S. Special Resolution Regimes.
	33

	SECTION 23. Entire Agreement; Counterparts.
	34

	SECTION 24. Amendments or Waivers.
	34

	SECTION 25. Authority of Representative.
	34

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EXHIBITS
Exhibit A –    Initial Purchasers
Exhibit B –    Guarantors
Exhibit C –    Pricing Term Sheet
Exhibit D –    Amendments; Issuer Free Writing Documents
Exhibit E –    Form of Opinion of Vinson & Elkins L.L.P.
Exhibit F –    Form of Opinion of Jones & Keller, P.C.
ii

$550,000,000
Earthstone Energy Holdings, LLC
8.000% Senior Notes due 2027
PURCHASE AGREEMENT
    April 7, 2022
RBC Capital Markets, LLC
As Representative of the several Initial Purchasers
c/o RBC Capital Markets, LLC
200 Vesey Street
New York, New York 10281-8098

Ladies and Gentlemen:
Earthstone Energy Holdings, LLC, a Delaware limited liability company (the “Company”) confirms its agreement with RBC Capital Markets, LLC (“RBC”) and each of the other Initial Purchasers named on Exhibit A hereto (collectively, the “Initial Purchasers,” which term shall also include any person substituted for an Initial Purchaser pursuant to Section 10 hereof), for whom RBC is acting as representative (in such capacity, the “Representative”), with respect to the issue and sale by the Company and the purchase by the Initial Purchasers, acting severally and not jointly, of $550,000,000 in aggregate principal amount of the Company’s 8.000% Senior Notes due 2027 (the “Securities”).  The Securities will be issued pursuant to an Indenture to be dated as of April 12, 2022 (the “Indenture”) among the Company and the Guarantors referred to below, and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”).  The Company’s obligation to pay principal and interest on the Securities, will be irrevocably and unconditionally guaranteed on an unsecured senior basis, by the guarantors named on Exhibit B hereto (together, the “Guarantors”).  As used herein, the term “Securities” shall include the Guarantees, unless the context otherwise requires. Certain terms used in this purchase agreement (this “Agreement”) are defined in Section 15 hereof.
The Securities will be offered and sold to the Initial Purchasers without registration under the 1933 Act, in reliance on the exemption provided by Section 4(a)(2) of the 1933 Act.  The Company and the Guarantors, have prepared a preliminary offering memorandum, dated April 6, 2022 (the “Preliminary Offering Memorandum”), the pricing term sheet attached hereto as Exhibit C (the “Pricing Term Sheet”) setting forth the terms of the Securities omitted from the Preliminary Offering Memorandum and a final offering memorandum, dated April 7, 2022 (the “Offering Memorandum”), setting forth information regarding the Company, Earthstone Energy, Inc. (the “Parent”) and the Securities.  The Preliminary Offering Memorandum, as supplemented and amended as of the Applicable Time, together with the Pricing Term Sheet and any of the documents listed on Exhibit D hereto are collectively referred to as the “General Disclosure Package.”  The Company and the Guarantors hereby confirm that they have authorized the use of the General Disclosure Package and the Offering Memorandum in connection with the offering and resale of the Securities by the Initial Purchasers. 
Any reference to the Preliminary Offering Memorandum, the General Disclosure Package or the Offering Memorandum shall be deemed to refer to and include all information filed with the Commission pursuant to Section 13(a), 13(c) or 15(d) of the 1934 Act, on or prior to the date of the Preliminary Offering Memorandum, the General Disclosure Package or the Offering Memorandum, as the case may be, and incorporated by reference therein.  Any reference to the Preliminary Offering Memorandum, General Disclosure Package or the Offering Memorandum, as the case may be, as amended or supplemented, as of any specified date, shall be deemed to 
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include any documents filed with the Commission pursuant to Section 13(a), 13(c) or 15(d) of the 1934 Act after the date of the Preliminary Offering Memorandum, General Disclosure Package or the Offering Memorandum, as the case may be, and prior to such specified date, and incorporated by reference in the Preliminary Offering Memorandum, the General Disclosure Package and the Offering Memorandum.  All documents filed under the 1934 Act and so deemed to be incorporated by reference into the Preliminary Offering Memorandum, General Disclosure Package or the Offering Memorandum, as the case may be, or any amendment or supplement thereto are hereinafter called the “Exchange Act Reports.”
You have advised the Company that you will offer and resell (the “Exempt Resales”) the Securities purchased by you hereunder on the terms set forth in each of the General Disclosure Package and the Offering Memorandum, as amended or supplemented, solely to (i) persons whom you reasonably believe to be “qualified institutional buyers” as defined in Rule 144A under the 1933 Act (“QIBs”), and (ii) in compliance with Regulation S under the 1933 Act (“Regulation S”).  Those persons specified in clauses (i) and (ii) of this paragraph are referred to herein as “Eligible Purchasers.”
SECTION 1.  Representations and Warranties.
(a)Representations and Warranties by the Company and the Guarantors.  The Company and each Guarantor, jointly and severally, represents and warrants to each Initial Purchaser as of the date hereof, as of the Applicable Time, and as of the Closing Date referred to in Section 2(b) hereof, and agree with each Initial Purchaser, as follows: 
(1)Rule 144A Information.  Each of the Preliminary Offering Memorandum, the General Disclosure Package and the Offering Memorandum, each as of its respective date, contains all the information required by Rule 144A(d)(4) under the 1933 Act.
(2)No Stop Orders. The Preliminary Offering Memorandum, the General Disclosure Package and the Offering Memorandum have been prepared by the Company and the Guarantors for use by the Initial Purchasers in connection with the Exempt Resales.  No order or decree preventing the use of the Preliminary Offering Memorandum, the General Disclosure Package or the Offering Memorandum, or any order asserting that the transactions contemplated by this Agreement are subject to the registration requirements of the 1933 Act has been issued, and no proceeding for that purpose has commenced or is pending or, to the knowledge of the Company or any of the Guarantors is contemplated.
(3)No Material Misstatement or Omission. (i) The Preliminary Offering Memorandum, as of the date thereof, did not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, (ii) the General Disclosure Package, as of the Applicable Time, did not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, (iii) the Offering Memorandum, as of the date thereof, did not and, at the Closing Date, will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading and (iv) each Issuer Free Writing Document (as defined below) set forth on Exhibit D, when taken together with the General Disclosure Package, did not, and, at the Closing Date, will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  
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The representations and warranties in the preceding paragraph do not apply to statements in or omissions from the Preliminary Offering Memorandum, the Offering Memorandum, the General Disclosure Package, any Issuer Free Writing Document or any amendment or supplement to any of the foregoing made in reliance upon and in conformity with written information furnished to the Company or the Guarantors by such Initial Purchaser through the Representative expressly for use therein, it being understood and agreed that the only such information furnished by the Initial Purchasers as aforesaid consists of the information described as such in Section 6(b) hereof.
(4)Exchange Act Reports.  The Exchange Act Reports incorporated in the General Disclosure Package or the Offering Memorandum, at the respective times they were or hereafter are filed with the Commission, complied or will comply in all material respects with the requirements of the 1934 Act and the rules and regulations of the Commission thereunder and did not or will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(5)Independent Accountants. Moss Adams LLP (“Moss Adams”) is an independent registered public accounting firm with respect to the Company and the Parent within the 1933 Act Regulations and as required by the 1933 Act and the applicable rules and guidance from the Public Company Accounting Oversight Board (United States) during each applicable period. Moss Adams is an independent registered public accounting firm with respect to Chisholm Energy Operating, LLC (“Chisholm Energy”), Chisholm Energy Agent, Inc. (“Chisholm Agent,” collectively with Chisholm Energy, “Chisholm”) within the 1933 Act Regulations and as required by the 1933 Act and the applicable rules and guidance from the American Institute of Certified Public Accountants (“AICPA”) during each applicable period. Deloitte & Touche LLP (“Deloitte”) is an independent registered public accounting firm with respect to Bighorn Asset Company, LLC (“Bighorn”) within the 1933 Act Regulations and as required by the 1933 Act and the applicable rules and guidance from the AICPA during each applicable period. Grant Thornton LLP (“Grant Thornton”) is an independent registered public accounting firm with respect to Independence Resources Holdings, LLC (“Independence”) and Independence Resources Manager, LLC (collectively with Independence, “IRM”), within the 1933 Act Regulations and as required by the 1933 Act and the applicable rules and guidance from the AICPA during each applicable period. Plante & Moran, PLLC (“Plante & Moran”) is an independent certified public accounting firm with respect to Tracker Resource Development III, LLC, a Delaware limited liability company (“Tracker Resource”), TRD III Royalty Holdings (TX), LP (“RoyaltyCo” and collectively with Tracker Resource, “Tracker”), SEG-TRD LLC (“SEG-I”) and SEG-TRD II LLC (“SEG-II,” collectively with SEG-I, “Sequel”) within the applicable rules and guidance from the AICPA during each applicable period. 
(6)Financial Statements. The historical financial statements included or incorporated by reference in the General Disclosure Package and the Offering Memorandum present fairly the financial position of the Company, its consolidated subsidiaries, Parent, Chisholm, Bighorn, IRM, Tracker and Sequel as of the dates shown and the results of operations and cash flows of the Company, its consolidated subsidiaries, Parent, Chisolm, Bighorn, IRM, Tracker and Sequel for the periods shown, and such financial statements have been prepared in conformity with Accounting Principles Generally Accepted in the United States of America (“GAAP”), applied on a consistent basis; and the pro forma financial statements included or incorporated by reference in the General Disclosure Package and the Offering Memorandum have been prepared in accordance with the applicable accounting requirements of Regulation S-X under the 1933 Act, and the assumptions used in preparing the pro forma financial 
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statements included or incorporated by reference in the General Disclosure Package and the Offering Memorandum provide a reasonable basis for presenting the significant effects directly attributable to the transactions or events described therein, the related pro forma adjustments give appropriate effect to those assumptions, and the pro forma columns therein reflect in all material respects the proper application of those adjustments to the corresponding historical financial statement amounts. Moss Adams has certified the audited financial statements of the Parent as of and for the years ended December 31, 2021, December 31, 2020 and December 31, 2019, incorporated by reference in the General Disclosure Package and the Offering Memorandum. Moss Adams has certified the audited consolidated financial statements of the assets acquired from Chisholm as of and for the years ended December 31, 2021 and December 31, 2020, included in the General Disclosure Package and the Offering Memorandum. Deloitte has certified the audited consolidated financial statements of the assets to be acquired from Bighorn for the period from February 2, 2021 to December 31, 2021, included in the General Disclosure Package and the Offering Memorandum. Grant Thornton has certified the audited consolidated financial statements of the assets acquired from IRM as of and for the years ended December 31, 2020 and December 31, 2019, incorporated by reference in the General Disclosure Package and the Offering Memorandum. Plante & Moran has certified the audited consolidated financial statements of the assets acquired from Tracker as of and for the years ended December 31, 2020 and December 31, 2019, incorporated by reference in the General Disclosure Package and the Offering Memorandum. Plante & Moran has certified audited statements of revenues and direct operating expenses as of and for the years ended December 31, 2020 and 2019 of the assets acquired from Sequel, incorporated by reference in the General Disclosure Package and the Offering Memorandum. The other financial and statistical data included in the General Disclosure Package and the Offering Memorandum, together with the related schedules (if any) and notes thereto, present fairly, in all material respects, the information shown therein and such data has been compiled on a basis consistent with the financial statements presented therein and the books and records of the Company and the Parent.  The Company and the Parent do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations or any “variable interest entities” within the meaning of Financial Accounting Standards Board Accounting Standards Codification 810 – Consolidation, as amended by Accounting Standards Update 2015-02), not disclosed in the General Disclosure Package or the Offering Memorandum.  There are no financial statements that are required to be included in the General Disclosure Package or the Offering Memorandum that are not included as required. The financial statements required by Rule 3-05 of Regulation S-X and related notes relating to certain assets of Chisholm, Bighorn, IRM, Tracker and Sequel, acquired by, or to be acquired by, the Company, included in the General Disclosure Package and the Offering Memorandum were audited, as described therein, by Moss Adams with respect to Chisholm, Grant Thornton with respect to IRM, Deloitte with respect to Bighorn and by Plante & Moran with respect to Tracker and Sequel, and such financial statements comply as to form in all material respects with the applicable accounting requirements of Regulation S-X and have been prepared in all material respects in conformity with GAAP applied on a consistent basis throughout the periods involved except as otherwise stated therein.
(7)No Material Adverse Change in Business.  Except as disclosed in or contemplated by the General Disclosure Package, since the end of the period covered by the latest audited financial statements included or incorporated by reference in the General Disclosure Package (i) there has been no change, nor any development or event involving a prospective change, in the condition (financial or otherwise), results of operations, business, properties or prospects of the Company, any Guarantor and their respective subsidiaries, taken as a whole, that is material and adverse, (ii) there has been no dividend or distribution of any kind declared, paid or made by the Company, or any 
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Guarantor on any class of its capital stock, (iii) there has been no material adverse change in the capital stock, short-term indebtedness, long-term indebtedness, net current assets or net assets of the Company, any Guarantor or any of their respective subsidiaries, (iv) there has been no material transaction entered into and there is no material transaction that is probable of being entered into by the Company, any Guarantor or any of their respective subsidiaries other than transactions in the ordinary course of business, (v) there has been no obligation, direct or contingent, that is material to the Company, any Guarantor or any of their respective subsidiaries taken as a whole, incurred by the Company, any Guarantor or any of their respective subsidiaries, except obligations incurred in the ordinary course of business and (vi) neither the Company, any Guarantor, nor any of their respective subsidiaries has sustained any material loss or interference with its business from events of force majeure, including, but not limited to, fire, explosion, flood, earthquakes, accident or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any court or arbitrator or governmental or regulatory authority, except in each case as otherwise disclosed in each of the General Disclosure Package and the Offering Memorandum.
(8)Good Standing of the Company and the Parent.  Each of the Company and the Parent, (A) has been duly incorporated or formed, as applicable, and is existing and in good standing under the laws of the state of its jurisdiction of organization, with the power and authority (corporate, limited liability company and other, as applicable) to own and/or lease its properties and conduct its business as described in the General Disclosure Package and the Offering Memorandum and (B) is duly qualified to do business as a foreign limited liability company or corporation, as applicable, in good standing in all other jurisdictions in which its ownership or lease of property or the conduct of its business requires such qualification, except, in the case of clause (B), to the extent that the failure to be so qualified or be in good standing would not have a material adverse effect on the condition (financial or otherwise), results of operations, business, properties or prospects of the Company, the Guarantors and any of their respective subsidiaries, taken as a whole (a “Material Adverse Effect”). 
(9)Subsidiaries.  Each subsidiary of the Company or any Guarantor has been duly incorporated or formed, as applicable, and is existing and in good standing under the laws of the jurisdiction of its incorporation or organization, as applicable, with the limited liability company or corporate power and authority, as applicable, to own and/or lease its properties and conduct its business as described in the General Disclosure Package; and each subsidiary of the Company or any Guarantor is duly qualified to do business as a foreign limited liability company or corporation, as applicable, in good standing in all other jurisdictions in which its ownership or lease of property or the conduct of its business requires such qualification, except where the failure to so qualify or be in good standing in such other jurisdictions would not have, individually or in the aggregate, a Material Adverse Effect; all of the issued and outstanding shares of capital stock and limited liability company interests, as the case may be, of each subsidiary of the Company or any Guarantor have been duly authorized and validly issued and (i) in the case of any subsidiary of the Company or any Guarantor that is a corporation, the shares of capital stock of such subsidiary are fully paid and nonassessable and (ii) in the case of any subsidiary of the Company or any Guarantor that is a limited liability company, the limited liability company interests of such subsidiary are fully paid (to the extent required under such subsidiary’s limited liability company agreement) and non-assessable (except as such nonassessability may be affected by Sections 18-607 and 18-804 of the Delaware Limited Liability Company Act); and the limited liability company interests and shares of capital stock of each subsidiary owned by the Company or the Parent, directly or through subsidiaries, are owned free from liens, encumbrances and defects, except as set forth in 
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the General Disclosure Package with respect to those arising under the Parent’s revolving credit facility.
(10)Capitalization.  The authorized, issued and outstanding capital stock of the Parent as of the date of this Agreement is as set forth in the column entitled “Actual” and in the corresponding line items under the caption “Capitalization” in the Preliminary Offering Memorandum and the Offering Memorandum (except for subsequent issuances, if any, pursuant to employee or director stock option, stock purchase or other equity incentive plans described in the General Disclosure Package and the Offering Memorandum or upon the exercise of options issued under such plans).
(11)No Other Securities of Same Class. When the Securities and Guarantees are issued and delivered pursuant to this Agreement, such Securities and Guarantees will not be of the same class (within the meaning of Rule 144A under the 1933 Act) as securities of the Company or the Guarantors that are listed on a national securities exchange registered under Section 6 of the 1934 Act or that are quoted in a United States automated inter-dealer quotation system.
(12)No Finder’s Fee.  Except as disclosed in the General Disclosure Package, there are no contracts, agreements or understandings between the Company or any Guarantor, on the one hand, and any person, on the other hand, that would give rise to a valid claim against the Company, any Guarantor or any Initial Purchaser for a brokerage commission, finder’s fee or other like payment in connection with the sale of the Securities pursuant to this Agreement.
(13)No Registration.  No registration under the 1933 Act of the Securities or the Guarantees, and no qualification of the Indenture under the 1939 Act with respect thereto, is required for the sale of the Securities and the Guarantees to you as contemplated hereby or for the initial resale of the Securities by you to the Eligible Purchasers, assuming the accuracy of the Initial Purchasers’ representations in this Agreement.
(14)No General Solicitation.  No form of general solicitation or general advertising within the meaning of Regulation D under the 1933 Act (including, but not limited to, advertisements, articles, notices or other communications published in any newspaper, magazine or similar medium or broadcast over television or radio, or any seminar or meeting whose attendees have been invited by any general solicitation or general advertising) was used by the Company, the Parent or any of their affiliates or any of their representatives (other than you, as to whom the Company and the Guarantors make no representation) in connection with the offer and sale of the Securities.
(15)Regulation S Compliance.  No directed selling efforts within the meaning of Rule 902 under the 1933 Act were or will be used by the Company, the Parent and their subsidiaries or any of their representatives (other than you, as to whom the Company and the Guarantors make no representation) with respect to Securities sold in reliance on Regulation S, and the Company, the Parent, any of their respective affiliates and any person acting on its or their behalf (other than you, as to whom the Company and the Guarantors makes no representation) has complied with and will implement the “offering restrictions” required by Rule 902 under the 1933 Act.
(16)No Integration.  None of the Company, any Guarantor or any other person acting on behalf of the Company or any Guarantor has sold or issued any securities that would be integrated with the offering of the Securities contemplated by this Agreement 
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pursuant to the 1933 Act, the rules and regulations thereunder or the interpretations thereof by the Commission. 
(17)Authorization of Agreement.  This Agreement has been duly authorized, executed and delivered by the Company and each Guarantor.
(18)Full Power.  The Company and each Guarantor has full right, power and authority to execute, deliver and perform its obligations under the Transaction Documents to which it is a party.
(19)The Indenture.  The Indenture has been duly authorized by the Company and each Guarantor and, on the Closing Date, will have been duly executed and delivered by the Company and each Guarantor and will constitute a valid and binding agreement of the Company and each Guarantor, enforceable against the Company and each Guarantor in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting enforcement of creditors’ rights generally or by general principles of equity.
(20)The Securities.  The Securities have been duly authorized and, at the Closing Date, will have been duly executed by the Company and, when authenticated by the Trustee in the manner provided for in the Indenture and delivered against payment of the purchase price therefor as provided in this Agreement, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting enforcement of creditors’ rights generally or by general principles of equity, and will be in the form contemplated by, and entitled to the benefits of, the Indenture.
(21)The Guarantees.  The Guarantees have been duly authorized.  When the Securities are delivered against payment therefor as provided in this Agreement, the Guarantees will constitute valid and binding obligations of the Guarantors, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting enforcement of creditors’ rights generally or by general principles of equity, and will be in the form contemplated by, and entitled to the benefits of, the Indenture.
(22)Description of the Securities and Agreements.  The Securities, the Guarantees and the Indenture conform and will conform in all material respects to the respective statements relating thereto contained in the Preliminary Offering Memorandum, the General Disclosure Package and the Offering Memorandum.
(23)Absence of Defaults and Conflicts Resulting from Transaction.  The execution, delivery and performance of the Transaction Documents and the consummation of the transactions contemplated therein and in the Preliminary Offering Memorandum, the General Disclosure Package and the Offering Memorandum, including the issuance and sale of the Securities and the use of proceeds from the sale of the Securities as described in the Preliminary Offering Memorandum and the Offering Memorandum under the caption “Use of Proceeds,” and compliance by the Company and the Guarantors with their respective obligations under the Transaction Documents will not result in a breach or violation of any of the terms and provisions of, or constitute a default or a Debt Repayment Triggering Event (as defined below) under, or result in the imposition of any lien, charge or encumbrance upon any property or assets of the Company, any of the Guarantors or any of their respective subsidiaries pursuant to, (i) the charter, bylaws or similar Organizational Documents of the Company, each Guarantor or 
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any of their respective subsidiaries, (ii) any statute, rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company, the Guarantors or any of their respective subsidiaries or any of their properties, or (iii) any agreement or instrument to which the Company, any Guarantor or any of their respective subsidiaries is a party or by which the Company, any Guarantor or any of their respective subsidiaries is bound or to which any of the properties of the Company, any Guarantor or any of their respective subsidiaries is subject, except in the case of clauses (ii) and (iii) as would not reasonably be expected to have a Material Adverse Effect; a “Debt Repayment Triggering Event” means any event or condition that gives, or with the giving of notice or lapse of time would give, the holder of any note, debenture, or other evidence of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company or any of its subsidiaries. 
(24)Absence of Existing Defaults and Conflicts. Neither the Company, the Guarantors nor any of their respective subsidiaries is in violation of its respective charter, bylaws or similar Organizational Documents or in default (or with the giving of notice or lapse of time would be in default) under any existing obligation, agreement, covenant or condition contained in any indenture, loan agreement, mortgage, lease or other agreement or instrument to which any of them is a party or by which any of them is bound or to which any of the properties of any of them is subject, except such defaults that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(25)Transactions with Related Persons.  No relationship, direct or indirect, exists between or among the Company, the Guarantors or their respective subsidiaries on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company, the Guarantors or their respective subsidiaries on the other hand, which is required to be described in the General Disclosure Package and the Offering Memorandum which is not so described therein. 
(26)Loans to Directors and Officers.  There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees of indebtedness by the Company or any Guarantor to or for the benefit of any of the officers or directors of the Company or any Guarantor or any of their respective family members. The Company and the Guarantors have not, directly or indirectly, including through their subsidiaries, extended or maintained credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any director or executive officer of the Company or any Guarantor, other than any extensions of credit that ceased to be outstanding prior to the date of the Preliminary Offering Memorandum.
(27)Absence of Labor Dispute.  No labor dispute with the employees of the Company, the Guarantors or any of their respective subsidiaries exists or, to the knowledge of each of the Company and the Guarantors, is imminent that would reasonably be expected to have a Material Adverse Effect.
(28)Absence of Proceedings.  Except as disclosed in the General Disclosure Package there are no pending actions, suits or proceedings (including any inquiries or investigations by any court or governmental agency or body, domestic or foreign) against or affecting the Company, the Guarantors, any of their respective subsidiaries or any of their respective properties that, if determined adversely to the Company, the Guarantors or any of their respective subsidiaries, would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, or would materially and adversely affect 
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the ability of any of the Company or any Guarantor to perform its obligations under the Transaction Documents, or which are otherwise material in the context of the sale of the Securities; and no such actions, suits or proceedings (including any inquiries or investigations by any court or governmental agency or body, domestic or foreign) to the Company’s or any Guarantor’s knowledge, are threatened or contemplated.
(29)Accurate Disclosure; Exhibits.  The statements made in the General Disclosure Package and the Offering Memorandum under the captions “Certain U.S. Federal Income Tax Consequences,” “Certain Considerations for ERISA and Other U.S. Employee Benefit Plans” and “Description of Notes,” insofar as such statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate and fair summaries, in all material respects, of such legal matters, agreements, documents or proceedings and present the information required to be shown. There are no contracts or documents which are required to be described in the General Disclosure Package or the Offering Memorandum or to be filed as exhibits to a registration statement of the Company or the Parent pursuant to Item 601 of Regulation S-K which have not been so described or filed as required. None of the Company, the Guarantors or any of their respective subsidiaries has knowledge that any other party to any such contract, agreement or arrangement has any intention not to render full performance as contemplated by the terms thereof. 
(30)Solvency.  All indebtedness represented by the Securities is being incurred for proper purposes and in good faith.  On the Closing Date, after giving pro forma effect to the Offering and the use of proceeds therefrom described under the caption “Use of Proceeds” in the General Disclosure Package and the Offering Memorandum, the Company, each Guarantor and their respective subsidiaries (i) will be Solvent (as hereinafter defined), (ii) will have sufficient capital for carrying on its business and (iii) will be able to pay its debts as they mature.  As used in this paragraph, the term “Solvent” means, with respect to a particular date, that on such date (i) the present fair market value (or present fair saleable value) of the assets of the Company, each Guarantor and their respective subsidiaries is not less than the total amount required to pay the liabilities of the Company, each Guarantor and their respective subsidiaries on its total existing debts and liabilities (including contingent liabilities) as they become absolute and matured; (ii) the Company, each Guarantor and their respective subsidiaries is able to pay its debts and other liabilities, contingent obligations and commitments as they mature and become due in the normal course of business; (iii) assuming consummation of the issuance of the Securities as contemplated by this Agreement and the General Disclosure Package and the Offering Memorandum, none of the Company, any Guarantor or any of their respective subsidiaries is incurring debts or liabilities beyond its ability to pay as such debts and liabilities mature; (iv) none of the Company, any Guarantor or any of their respective subsidiaries is engaged in any business or transaction, and does not propose to engage in any business or transaction, for which its property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which the Company, any Guarantor or any of their respective subsidiaries is engaged; and (v) none of the Company, any Guarantor or any of their respective subsidiaries is otherwise insolvent under the standards set forth in applicable laws.
(31)Possession of Intellectual Property.  The Company, the Parent and their respective subsidiaries own, possess or can acquire on reasonable terms, adequate trademarks, trade names and other rights to inventions, know-how, patents, copyrights, confidential information and other intellectual property (collectively, “intellectual property rights”) necessary to conduct the business now operated by them, or presently employed by them, and have not received any notice of infringement of or conflict with asserted rights of others with respect to any intellectual property rights that, if determined 
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adversely to the Company, the Parent or any of their respective subsidiaries, would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(32)Absence of Further Requirements.  No consent, approval, authorization, or order of, or filing or registration with, any person (including any governmental agency or body or any court) is required to be obtained or made by the Company or the Guarantors for the execution, delivery or performance by the Company or the Guarantors of their obligations under the Transaction Documents to which they are a party or for the consummation of the transactions contemplated by such Transaction Documents, including the offering, issuance, sale or delivery of the Securities or the Guarantees, except (i) such as have been obtained or made, (ii) where the failure of the Company or the Guarantors to obtain or make any such consent, approval, authorization, order filing or registration would not reasonably be expected to have a Material Adverse Effect and (iii) such as may be required under state securities or “Blue Sky” Laws.
(33)Possession of Licenses and Permits.  The Company, each Guarantor and their respective subsidiaries possess all adequate certificates, authorizations, franchises, licenses and permits issued by appropriate federal, state, local or foreign regulatory bodies (collectively, “Licenses”) necessary or material to the conduct of the business in the General Disclosure Package to be conducted by them, except where the failure to have obtained the same would not reasonably be expected to have a Material Adverse Effect.  The Company, each Guarantor and their respective subsidiaries are in compliance with the terms and conditions of all such Licenses, except where the failure to so comply would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, and have not received any notice of proceedings relating to the revocation or modification of any Licenses that, if determined adversely to the Company, any Guarantor or any of their respective subsidiaries, would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(34)Title to Property.  Except as disclosed in the General Disclosure Package or the Offering Memorandum, the Company, the Guarantors and their respective subsidiaries have (i) good and defensible title to all of the interests in oil and natural gas properties underlying the Company’s and the Guarantors’ estimates of their net proved reserves contained in the General Disclosure Package and (ii) good and marketable title to all other real and personal property reflected in the General Disclosure Package as assets owned by them, in each case free and clear of all liens, encumbrances and defects except such as (x) are described in the General Disclosure Package, (y) are liens and encumbrances under operating agreements, unitization and pooling agreements, production sales contracts, farmout agreements and other oil and natural gas exploration, participation and production agreements, in each case that secure payment of amounts not yet due and payable for the performance of other unmatured obligations and are of a scope and nature customary in the oil and natural gas industry or arise in connection with drilling and production operations, or (z) do not materially affect the value of the properties of the Company, the Guarantors and their respective subsidiaries and do not interfere in any material respect with the use made or proposed to be made of such properties by the Company, the Guarantors or their respective subsidiaries; any other real property and buildings held under lease by the Company, the Guarantors and their respective subsidiaries are held by them under valid, subsisting and enforceable leases, with such exceptions as are not material and do not interfere in any material respect with the use made and proposed to be made of such property and buildings by the Company, the Guarantors or their respective subsidiaries; and the working interests derived from oil, natural gas and mineral leases or mineral interests that constitute a portion of the real property held or leased by the Company, the Guarantors and their respective subsidiaries, 
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reflect in all material respects the rights of the Company, the Guarantors and their respective subsidiaries to explore, develop or produce hydrocarbons from such real property in the manner contemplated by the General Disclosure Package, and the care taken by the Company, the Guarantors and their respective subsidiaries with respect to acquiring or otherwise procuring such leases or other property interests was generally consistent with standard industry practices in the areas in which the Company, the Guarantors and their respective subsidiaries operate for acquiring or procuring leases and interests therein to explore, develop or produce hydrocarbons.  With respect to interests in oil and natural gas properties obtained by or on behalf of the Company, the Guarantors and their respective subsidiaries that have not yet been drilled or included in a unit for drilling, the Company, the Guarantors and their respective subsidiaries have carried out such title investigations in accordance with the reasonable practice in the oil and natural gas industry in the areas in which the Company, the Guarantors and their respective subsidiaries operate.
(35)Rights-of-Way. The Company and the Guarantors and their respective subsidiaries have such consents, easements, rights-of-way or licenses from any person (collectively, “rights-of-way”) as are necessary to enable the Company and each Guarantor to conduct its business in the manner described in the General Disclosure Package, subject to qualifications as may be set forth in the General Disclosure Package, except where failure to have such rights-of-way would not have, individually or in the aggregate, a Material Adverse Effect.
(36)Status of Oil and Natural Gas Leases. As of the date hereof, (i) all royalties, rentals, deposits and other amounts owed under the oil and natural gas leases constituting the oil and natural gas properties of the Company, the Guarantors and their respective subsidiaries have been properly and timely paid (other than amounts held in suspense accounts pending routine payments or related to disputes about the proper identification of royalty owners and except where the failure to timely pay or pay such amounts would not reasonably be expected to have a Material Adverse Effect); and no material amount of proceeds from the sale or production attributable to the oil and natural gas properties of the Company, the Guarantors and their respective subsidiaries are currently being held in suspense by any purchaser thereof, except where such amounts due would not reasonably be expected to have a Material Adverse Effect, and (ii) there are no claims under take-or-pay contracts pursuant to which oil and natural gas purchasers have any make-up rights affecting the interests of the Company, the Guarantors or their respective subsidiaries in their respective oil and natural gas properties, except where such claims would not reasonably be expected to have a Material Adverse Effect.
(37)Reserve Engineers. Cawley, Gillespie & Associates, Inc. (“Cawley”), a reserve engineer that prepared reserve reports on estimated proved oil, natural gas and NGL reserves held by the Parent as of December 31, 2021 and Chisholm as of January 1, 2022 was, as of the date of preparation of such reserve report, and is, as of the date hereof, an independent petroleum engineer with respect to the Parent and Chisholm. Ryder Scott Company, L.P. (“Ryder”), a reserve engineer that prepared reserve reports on estimated proved oil, natural gas and NGL reserves held by Bighorn as of December 31, 2021 was, as of the date of preparation of such reserve report, and is, as of the date hereof, an independent petroleum engineer with respect to Bighorn.
(38)Reserve Report Information. The information contained in the General Disclosure Package regarding estimated proved reserves is based upon the reserve reports prepared by Cawley and Ryder. The information provided to Cawley by the Parent and the Company, including, without limitation, information as to: production, costs of 
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operation and development, current prices for production, agreements relating to current and future operations and sales of production was true and correct in all material respects on the date that such report was made. Such information was provided to Cawley in accordance with all customary industry practices.
(39)Reserve Report. The reserve report prepared by Cawley setting forth the estimated proved reserves attributed to the oil and natural gas properties of the Parent and the Company accurately reflects in all material respects the ownership interests of the Parent in the properties therein. Other than normal production of reserves, intervening market commodity price fluctuations, fluctuations in demand for such products, adverse weather conditions, unavailability or increased costs of rigs, equipment, supplies or personnel, the timing of third party operations and other facts, in each case in the ordinary course of business, and except as disclosed in the General Disclosure Package, the Parent and the Company are not aware of any facts or circumstances that would result in a material adverse change in the aggregate net reserves, or the present value of future net cash flows therefrom, as described in the General Disclosure Package and the reserve reports; and estimates of such reserves and present values as described in the General Disclosure Package and reflected in the reserve reports comply in all material respects with the applicable requirements of Regulation S-X and Subpart 1200 of Regulation S-K under the 1933 Act.
(40)Investment Company Act.  The Company, each Guarantor and each of their respective subsidiaries is not and, after giving effect to the issuance and sale of the Securities and the application of the proceeds thereof as described in the General Disclosure Package, will not be (i) an “investment company” as defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”), or (ii) a “business development company” (as defined in Section 2(a)(48) of the Investment Company Act). 
(41)Ratings.  No “nationally recognized statistical rating organization” as such term is defined in Section 3(a)(62) of the 1934 Act (i) has imposed (or has informed the Company that it is considering imposing) any condition (financial or otherwise) on the Company’s or Parent’s retaining any rating assigned to the Company, Parent or any securities of the Company or the Parent or (ii) has indicated to the Company or the Parent that it is considering any of the actions described in Section 5(j) hereof.
(42)Environmental Laws.  Except as disclosed in the General Disclosure Package, (a)(i) none of the Company, the Guarantors or any of their respective subsidiaries is in violation of, and does not have any liability under, any federal, state, local or non-U.S. statute, law, rule, regulation, ordinance, code, other requirement or rule of law (including common law), or decision or order of any domestic or foreign governmental agency, governmental body or court, relating to pollution, to the use, handling, transportation, treatment, storage, discharge, disposal or release of Hazardous Substances (as defined below), to the protection or restoration of the environment or natural resources, to health and safety including as such relates to exposure to Hazardous Substances, and to natural resource damages (collectively, “Environmental Laws”) that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (ii) to the knowledge of the Company and the Guarantors, none of the Company, the Guarantors or any of their respective subsidiaries own, occupy, operate or use any real property contaminated with Hazardous Substances, (iii) none of the Company, the Guarantors or any of their respective subsidiaries is conducting or funding any investigation, remediation, remedial action or monitoring of actual or suspected Hazardous Substances in the environment, (iv) to the knowledge of the Company and the Guarantors, none of the Company, the Guarantors or any of their respective subsidiaries is liable or allegedly liable for any release or threatened release of Hazardous Substances, 
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including at any off-site treatment, storage or disposal site, (v) none of the Company, the Guarantors or any of their respective subsidiaries is subject to any pending, or to the Company’s and the Guarantors’ knowledge threatened, claim by any governmental agency or governmental body or person arising under Environmental Laws or relating to Hazardous Substances, and (vi) the Company, the Guarantors and their respective subsidiaries have received and are in compliance with all, and have no liability under any, permits, licenses, authorizations, identification numbers or other approvals required under applicable Environmental Laws to conduct their business, except in each case covered by clauses (i)-(vi) such as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; (b) to the knowledge of the Company, the Guarantors and their respective subsidiaries there are no facts or circumstances that would reasonably be expected to result in a violation of, liability under, or claim pursuant to any Environmental Law that would reasonably be expected to have a Material Adverse Effect; and (c) in the ordinary course of its business, the Company, the Guarantors and their respective subsidiaries periodically evaluate the effect, including associated costs and liabilities, of Environmental Laws on the business, properties, results of operations and financial condition of the Company and the Parent, and, on the basis of such evaluation, the Company, the Guarantors and their respective subsidiaries have reasonably concluded that such Environmental Laws will not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  For purposes of this subsection “Hazardous Substances” means (A) petroleum and petroleum products, by-products or breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls and mold, and (B) any other chemical, material or substance defined or regulated as toxic or hazardous or as a pollutant, contaminant or waste under Environmental Laws.
(43)Tax Returns.  The Company, the Parent and each of their respective subsidiaries has filed all federal, state, local and foreign tax returns required to be filed or have requested extensions thereof (except in any case in which the failure to so file would not result in a Material Adverse Effect), through the date of this Agreement and have paid all taxes required to be paid thereon (except as currently being contested in good faith and for which reserves required by GAAP have been created in the financial statements of the Company or the Parent or in which the failure to pay would not result in a Material Adverse Effect), and no tax deficiency has been, or could reasonably be expected to be, asserted against the Company, the Parent or any of their respective subsidiaries that would result in a Material Adverse Effect. 
(44)Insurance.  The Company, the Parent and their respective subsidiaries are insured by insurers with appropriately rated claims paying abilities against such losses and risks and in such amounts as are prudent and customary for the businesses in which they are engaged; all policies of insurance and fidelity or surety bonds insuring the Company, the Parent or any of their respective subsidiaries or their respective businesses, assets, employees, officers and directors are in full force and effect; the Company, the Parent and their respective subsidiaries are in compliance with the terms of such policies and instruments in all material respects; and there are no material claims by the Company, the Parent or any of their respective subsidiaries under any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause; none of the Company, the Parent or any such subsidiary has been refused any insurance coverage sought or applied for; neither the Company, the Parent nor any such subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect, except as set forth in or contemplated in the General Disclosure Package. 
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(45)Internal Controls and Compliance with the Sarbanes-Oxley Act.  Except as set forth in the General Disclosure Package, the Parent, its subsidiaries and the Parent’s Board of Directors (the “Board”) are in compliance with all applicable provisions of Sarbanes-Oxley and all applicable Exchange Rules.  The Parent maintains a system of internal controls, including, but not limited to, disclosure controls and procedures, internal controls over accounting matters and financial reporting, and legal and regulatory compliance controls (collectively, “Internal Controls”) that comply with the applicable Securities Laws and are sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability for assets, (iii) access to assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accounting for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.  The Internal Controls are overseen by the Audit Committee (the “Audit Committee”) of the Board in accordance with Exchange Rules. Except as set forth in the General Disclosure Package and the Offering Memorandum, the Parent has not publicly disclosed or reported to the Audit Committee or the Board, and within the next 90 days the Parent does not reasonably expect to publicly disclose or report to the Audit Committee or the Board, a significant deficiency, material weakness, change in Internal Controls or fraud involving management or other employees who have a significant role in Internal Controls (each, an “Internal Control Event”), any violation of, or failure to comply with, the Securities Laws, or any matter which, if determined adversely, would reasonably be expected to have a Material Adverse Effect.
(46)Margin Requirements.  None of the transactions contemplated by this Agreement (including, without limitation, the use of the proceeds from the sale of the Securities), will violate or result in a violation of Section 7 of the 1934 Act, or any regulation promulgated thereunder, including, without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System.  
(47)Absence of Manipulation. The Company and the Guarantors have not taken, directly or indirectly, any action that is designed to or that has constituted or that would reasonably be expected to cause or result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Securities.
(48)Statistical and Market-Related Data.  Any third-party statistical and market-related data included or incorporated by reference in the General Disclosure Package are based on or derived from sources that the Company and the Parent believe to be reliable and accurate. 
(49)ERISA Compliance.  Except where the failure would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (a) the minimum funding standard under Section 302 of the Employee Retirement Income Security Act of 1974, as amended, and the regulations and published interpretations thereunder (“ERISA”), has been satisfied by each “pension plan” (as defined in Section 3(2) of ERISA) which has been established or maintained by the Company, the Guarantors or any of their respective subsidiaries and the trust forming part of each such plan which is intended to be qualified under Section 401 of the Internal Revenue Code of 1986, as amended, is so qualified; (b) each of the Company, the Guarantors and their respective subsidiaries has fulfilled its obligations, if any, under Section 515 of ERISA; (c) neither the Company, the Guarantors nor any of their respective subsidiaries maintain or are required to contribute to a “welfare plan” (as defined in Section 3(1) of ERISA) which provides retiree or other post-employment welfare benefits or insurance coverage 
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(other than “continuation coverage” (as defined in Section 602 of ERISA)); (d) each pension plan and welfare plan established or maintained by the Company, the Guarantors and/or any of their respective subsidiaries are in compliance with the currently applicable provisions of ERISA, and (e) neither the Company, the Guarantors nor any of their respective subsidiaries have incurred or would reasonably be expected to incur any withdrawal liability under Section 4201 of ERISA, any liability under Section 4062, 4063 or 4064 of ERISA, or any other liability under Title IV of ERISA.
(50)Anti-Corruption.  Neither the Company, the Guarantors nor any of their respective subsidiaries or affiliates, nor any director, officer or employee, nor, to the Company’s or any Guarantor’s knowledge, any agent or representative of the Company, the Guarantors or of any of their respective subsidiaries or affiliates, has taken or will take any action in furtherance of an offer, payment, promise to pay, or authorization or approval of the payment or giving of money, property, gifts or anything else of value, directly or indirectly, to any “government official” (including any officer or employee of a government or government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political office) to influence official action or secure an improper advantage; and the Company, the Guarantors and their respective subsidiaries and affiliates have conducted their businesses in compliance with applicable anti-corruption laws and have instituted and maintain and will continue to maintain policies and procedures reasonably designed to promote and achieve compliance with such laws and with the representation and warranty contained herein.
(51)Anti-Money Laundering.  The operations of the Company, the Guarantors and their respective subsidiaries are and have been conducted at all times in material compliance with all applicable financial recordkeeping and reporting requirements, including those of the Bank Secrecy Act, as amended by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “USA PATRIOT Act”), and the applicable anti-money laundering statutes of jurisdictions where the Company, the Guarantors and their respective subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company, the Guarantors or any of their respective subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company or the Guarantors, threatened.
(52)Economic Sanctions. 
(i)None of the Company, the Guarantors nor any of their respective subsidiaries, or any director, officer, or employee thereof, or, to the Company’s or any Guarantor’s knowledge, any agent, affiliate or representative of the Company, the Guarantors or any of their respective subsidiaries, is an individual or entity (“Person”) that is, or is owned or controlled by a Person that is:
(A)the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC), the United Nations Security Council (UN), the European Union (EU), Her Majesty’s Treasury (UK HMT), the Swiss Secretariat of Economic Affairs (SECO), the 
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Hong Kong Monetary Authority (HKMA), the Monetary Authority of Singapore (MAS), or other relevant sanctions authority with jurisdiction over the Company (collectively, “Sanctions”), nor
(B)located, organized or resident in a country or territory that is the subject of comprehensive Sanctions amounting to an embargo (the “Sanctioned Jurisdictions”) (currently, the Crimea Region of Ukraine, the so-called Donetsk People’s Republic region of Ukraine, the so-called Luhansk People’s Republic region of Ukraine, Cuba, Iran, North Korea, and Syria).
(ii)None of the Company, the Guarantors or any of their respective subsidiaries will, directly or indirectly, use the proceeds of the sale of its Securities under this Agreement, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:
(A)to fund or facilitate any activities or business of or with any Person that, at the time of such funding or facilitation, is the subject of Sanctions or in any country or territory that is, at the time of such funding or facilitation, a Sanctioned Jurisdiction, in each case except as authorized by applicable Sanctions; or
(B)in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor or otherwise).
(iii)For the past five years, the Company, the Guarantors and their respective subsidiaries have not knowingly engaged in, are not now knowingly engaged in, and will not engage in, any dealings or transactions in violation of applicable Sanctions with any Person that at the time of the dealing or transaction is or was the subject of Sanctions or in any country or territory that at the time of the dealing or transaction is or was a Sanctioned Jurisdiction.
(53)Cybersecurity.  The Company, the Guarantors and their respective subsidiaries’ information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications and databases (collectively, “IT Systems”) are adequate for, and operate and perform in all material respects as required in connection with, the operation of the business of the Company, the Guarantors and their respective subsidiaries as currently conducted. To the knowledge of the Company and the Guarantors, their IT Systems are free and clear of all bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants. The Company, the Guarantors and their respective subsidiaries have implemented and maintained commercially reasonable controls, policies, procedures and safeguards to maintain that are designed and protect their confidential information and the integrity, continuous operation, redundancy and security of all IT Systems and data (including all personal, personally identifiable, sensitive, confidential or regulated data (“Personal Data”)) used in connection with their businesses. To the knowledge of the Company and the Guarantors, there have been no breaches, violations, outages or unauthorized uses of or accesses to the IT Systems or Personal Data, except for those that have been remedied without material cost or liability 
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or the duty to notify any other person, and there are no incidents under internal review or investigations relating to the same. The Company, the Guarantors and their respective subsidiaries are presently in material compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and to the protection of such IT Systems and Personal Data from unauthorized use or access, misappropriation or modification.  The Company, the Guarantors and their respective subsidiaries are, and at all prior times were, in material compliance with all applicable data privacy and security laws, statutes, judgements, orders, rules and regulations of any court or arbitrator or any other governmental or regulatory authority and all applicable laws regarding the collection, use, transfer, export, storage, protection, disposal or disclosure by the Company and its subsidiaries of Personal Data collected from or provided by third parties (collectively, the “Privacy Laws”). The Company, the Guarantors and their respective subsidiaries have in place, comply with, and take appropriate steps reasonably designed to (i) ensure material compliance with its published privacy policies, all third-party obligations and industry standards regarding Personal Data; and (ii) reasonably protect the security and confidentiality of all Personal Data (collectively, the “Privacy Policies”).  None of such disclosures made or contained in the Privacy Policies have been inaccurate, misleading, deceptive or in violation of any Privacy Laws or Privacy Policies in any material respect. To the knowledge of the Company, the execution, delivery and performance of this Agreement or any other agreement referred to in this Agreement will not result in a breach of violation of any Privacy Laws or Privacy Policies. Neither the Company nor the Guarantors or any of their respective subsidiaries:  has received notice of any actual or potential liability under or relating to, or actual or potential violation of, any of the Privacy Laws and is unaware of any other facts that, individually or in the aggregate, would reasonably indicate non-compliance with any Privacy Laws or Privacy Policies that would have a Material Adverse Effect. To the Company’s knowledge, there is no action, suit or proceeding by or before any court or governmental agency, authority or body pending or threatened alleging non-compliance with Privacy Laws or Privacy Policies.
(b)Certificates.  Any certificate signed by any officer of the Company or any Guarantor (whether signed on behalf of such officer, the Company or such Guarantor) and delivered to the Representative or to counsel for the Initial Purchasers in connection with the offering of the Securities shall be deemed a representation and warranty by the Company or such Guarantor to each Initial Purchaser as to the matters covered thereby.
SECTION 2.  Sale and Delivery to Initial Purchasers; Closing; Agreements to Sell, Purchase and Resell
(a)The Securities.  On the basis of the representations and warranties herein contained and subject to the terms and conditions herein set forth, the Company and each of the Guarantors agrees to sell to each Initial Purchaser, severally and not jointly, and each Initial Purchaser, severally and not jointly, agrees to purchase from the Company and each of the Guarantors, the aggregate principal amount of the Securities set forth opposite such Initial Purchaser’s name in Exhibit A hereto plus any additional principal amount of the Securities which such Initial Purchaser may become obligated to purchase pursuant to the provisions of Section 10 hereof, in each case at a price equal to 98.25% of the principal amount thereof plus accrued interest, if any, from April 12, 2022 to the Closing Date.
(b)Payment.  Payment of the purchase price for, and delivery of, the Securities shall be made at the offices of Latham & Watkins LLP, 811 Main Street, Suite 3700, Houston, Texas 77002, or at such other place as shall be agreed upon by the Representative and the Company, at 
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9:00 A.M. (New York City time) on April 12, 2022 (unless postponed in accordance with the provisions of Section 10), or such other time not later than five business days after such date as shall be agreed upon by the Representative and the Company (such time and date of payment and delivery being herein called the “Closing Date”). 
(c)Delivery of the Securities.  The Company shall make one or more global certificates (collectively, the “Global Securities”) representing the Securities available for inspection by the Representative not later than 1:00 p.m., New York City time, on the business day prior to the Closing Date and, on or prior to the Closing Date, the Company shall deliver the Global Securities to DTC or to the Trustee, acting as custodian for DTC, as applicable.  Delivery of the Securities to the Initial Purchasers on the Closing Date shall be made through the facilities of DTC unless the Representative shall otherwise instruct.
(d)Representations of the Initial Purchasers.  Each of the Initial Purchasers, severally and not jointly hereby represents and warrants to the Company that it intends to offer the Securities for sale upon the terms and conditions set forth in this Agreement and in the General Disclosure Package.  Each of the Initial Purchasers, severally and not jointly, hereby represents and warrants to, and agrees with, the Company, on the basis of the representations, warranties and agreements of the Company and the Guarantors, that such Initial Purchaser: (i) is a QIB; (ii) in connection with the Exempt Resales, will sell the Securities only to the Eligible Purchasers; and (iii) will not engage in any directed selling efforts within the meaning of Rule 902 under the 1933 Act, in connection with the offering of the Securities. The Initial Purchasers have advised the Company that they will resell the Securities to Eligible Purchasers at a price initially equal to 100.000% of the principal amount thereof, plus accrued interest, if any, from April 12, 2022. Such price may be changed by the Initial Purchasers at any time without notice. Each of the Initial Purchasers understands that the Company and, for purposes of the opinions to be delivered to the Initial Purchasers pursuant to this Agreement, counsel to the Company and counsel to the Initial Purchasers, will rely upon the accuracy and truth of the foregoing representations, warranties and agreements, and the Initial Purchasers hereby consent to such reliance.
SECTION 3.  Covenants of the Company and the Guarantors.  The Company and each Guarantor, jointly and severally, covenants with each Initial Purchaser as follows:
(a)Securities Law Compliance.  The Company will (i) advise each Initial Purchaser promptly after obtaining knowledge (and, if requested by any Initial Purchaser, confirm such advice in writing) of (A) the issuance by any U.S. or non-U.S. federal or state securities commission of any stop order suspending the qualification or exemption from qualification of any of the Securities for offer or sale in any jurisdiction, or the initiation of any proceeding for such purpose by any U.S. or non-U.S. federal or state securities commission or other regulatory authority, or (B) the happening of any event that makes any statement of a material fact made in the General Disclosure Package, any Issuer Free Writing Document or the Offering Memorandum, untrue or that requires the making of any additions to or changes in the General Disclosure Package, any Issuer Free Writing Document or the Offering Memorandum, to make the statements therein, in the light of the circumstances under which they were made, not misleading, (ii) use its reasonable best efforts to prevent the issuance of any stop order or order suspending the qualification or exemption from qualification of any of the Securities under any securities or “Blue Sky” laws of U.S. state or non-U.S. jurisdictions and (iii) if, at any time, any U.S. or non-U.S. federal or state securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of any of the Securities under any such laws, use its reasonable best efforts to obtain the withdrawal or lifting of such order at the earliest possible time.
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(b)Amendments.  The Company will give the Representative notice of its intention to prepare any amendment, supplement or revision to the Preliminary Offering Memorandum, the Offering Memorandum or any Issuer Free Writing Document, and the Company will furnish the Representative with copies of any such documents within a reasonable amount of time prior to such proposed use, and will not use any such document to which the Representative or counsel for the Initial Purchasers shall reasonably object, except as required by law.  The Company has given the Representative notice of any filings made by Parent pursuant to the 1934 Act or the 1934 Act Regulations within 48 hours prior to the Applicable Time.  The Company will give the Representative notice of the Parent’s intention to make any such filing from and after the Applicable Time through the Closing Date (or, if later, through the completion of the distribution of the Securities by the Initial Purchasers to Eligible Purchasers) and will furnish the Representative with copies of any such documents a reasonable amount of time prior to such proposed filing, as the case may be, and will not file or use any such document to which the Representative or counsel for the Initial Purchasers shall reasonably object.  
(c)Delivery of Disclosure Documents to the Representative.  The Company will deliver to the Representative and counsel for the Initial Purchasers, within a reasonable time and without charge, such number of copies of the Preliminary Offering Memorandum, the Pricing Term Sheet and the Offering Memorandum and any amendment or supplement to any of the foregoing as they reasonably request.
(d)Continued Compliance with Securities Laws.  The Company will comply with the 1933 Act, the 1933 Act Regulations, the 1934 Act and the 1934 Act Regulations so as to permit the completion of the distribution of the Securities as contemplated by this Agreement, the General Disclosure Package and the Offering Memorandum.  If at any time prior to the completion of the distribution of the Securities by the Initial Purchasers to Eligible Purchasers, any event shall occur or condition shall exist as a result of which it is necessary (or if the Representative or counsel for the Initial Purchasers shall notify the Company that, in their judgment, it is necessary) to amend or supplement the General Disclosure Package or the Offering Memorandum (or, in each case, any documents incorporated by reference therein) so that the General Disclosure Package or the Offering Memorandum, as the case may be, will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made or then prevailing, not misleading or if it is necessary (or, if the Representative or counsel for the Initial Purchasers shall notify the Company that, in their judgment, it is necessary) to amend or supplement the General Disclosure Package or the Offering Memorandum (or, in each case, any documents incorporated by reference therein) in order to comply with the requirements of the 1933 Act, the 1933 Act Regulations, the 1934 Act or the 1934 Act Regulations, the Company will promptly notify the Representative of such event or condition and of its intention to prepare such amendment or supplement (or, if the Representative or counsel for the Initial Purchasers shall have notified the Company as aforesaid, the Company will promptly notify the Representative of its intention to prepare such amendment or supplement) and will promptly prepare, subject to Section 3(b) hereof, such amendment or supplement as may be necessary to correct such untrue statement or omission or to comply with such requirements, and the Company will furnish to the Initial Purchasers such number of copies of such amendment or supplement as the Initial Purchasers may reasonably request.  If at any time an event shall occur or condition shall exist as a result of which it is necessary (or if the Representative or counsel for the Initial Purchasers shall notify the Company that, in their judgment, it is necessary) to amend or supplement any Issuer Free Writing Document so that it will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in 
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the light of the circumstances under which they were made or then prevailing, not misleading, or if it is necessary (or, if the Representative or counsel for the Initial Purchasers shall notify the Company that, in their judgment, it is necessary) to amend or supplement such Issuer Free Writing Document in order to comply with the requirements of the 1933 Act or the 1933 Act Regulations, the Company will promptly notify the Representative of such event or condition and of its intention to prepare such amendment or supplement (or, if the Representative or counsel for the Initial Purchasers shall have notified the Company as aforesaid, the Company will promptly notify the Representative of its intention to prepare such amendment or supplement) and will promptly prepare and, subject to Section 3(b) hereof distribute, such amendment or supplement as may be necessary to eliminate or correct such conflict, untrue statement or omission or to comply with such requirements, and the Company will furnish to the Initial Purchasers such number of copies of such amendment or supplement as the Initial Purchasers may reasonably request.
(e)Use of Offering Materials.  The Company and each Guarantor consents to the use of the General Disclosure Package and the Offering Memorandum in accordance with the securities or “Blue Sky” laws of the jurisdictions in which the Securities are offered by the Initial Purchasers and by all dealers to whom Securities may be sold, in connection with the offering and sale of the Securities.
(f)“Blue Sky” and Other Qualifications.  The Company will use its best efforts, in cooperation with the Initial Purchasers, to qualify the Securities for offering and sale, or to obtain an exemption for the Securities to be offered and sold, under the applicable securities laws of such states and other jurisdictions (domestic or foreign) as the Representative may designate and to maintain such qualifications and exemptions in effect for so long as required for the distribution of the Securities; provided, however, that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign limited liability company or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject.  In each jurisdiction in which the Securities have been so qualified or exempt, the Company will file such statements and reports as may be required by the laws of such jurisdiction to continue such qualification or exemption, as the case may be, in effect for so long as required for the distribution of the Securities.
(g)Use of Proceeds.  The Company will use the net proceeds received by it from the sale of the Securities in the manner specified in the Preliminary Offering Memorandum and the Offering Memorandum under “Use of Proceeds”.
(h)Restriction on Sale of the Securities. From and including the date of this Agreement through and including the 45th day after the date of this Agreement, the Company and the Guarantors will not, without the prior written consent of RBC, directly or indirectly issue, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option or right to sell or otherwise transfer or dispose of any debt securities of or guaranteed by the Company or any Guarantor (other than the Securities issued under this Agreement) or any securities convertible into or exercisable or exchangeable for any debt securities of or guaranteed by the Company or any Guarantor.
(i)Rule 144A Information.  So long as any of the Securities are outstanding, the Company and the Guarantors will, furnish at their expense to the Initial Purchasers, and, upon request, to the holders of the Securities and prospective purchasers of the Securities the information required by Rule 144A(d)(4) under the 1933 Act (if any).
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(j)Pricing Term Sheet.  The Company will prepare the Pricing Term Sheet reflecting the final terms of the Securities, to be attached hereto as Exhibit C and otherwise in form and substance satisfactory to the Representative; provided that the Company will furnish the Representative with copies of any such Pricing Term Sheet and will not use any such document to which the Representative or counsel to the Initial Purchasers shall reasonably object.
(k)Preparation of the Offering Memorandum.  Immediately following the execution of this Agreement, the Company will, subject to Section 3(b) hereof, prepare the Offering Memorandum, which shall contain the public offering price and terms of the Securities, the plan of distribution thereof and such other information as the Representative and the Company may deem appropriate.
(l)DTC.  The Company will use its best efforts to permit the Securities to be eligible for clearance and settlement through DTC.
(m)No Stabilization.  The Company, the Guarantors and their respective affiliates will not take, directly or indirectly, any action designed to or that has constituted or that reasonably could be expected to cause or result in the stabilization or manipulation of the price of any security of the Company or the Guarantors in connection with the offering of the Securities.
(n)No Affiliate Resales.  The Company and the Guarantors will not, and will not permit any of their respective affiliates (as defined in Rule 144 under the 1933 Act) to, resell any of the Securities that have been acquired by any of them, except for Securities purchased by the Company, the Guarantors or any of their respective affiliates and resold in a transaction registered under the 1933 Act.
(o)No General Solicitation.  In connection with any offer or sale of the Securities, the Company and the Guarantors will not engage, and will cause their respective affiliates and any person acting on their behalf (other than, in any case, the Initial Purchasers and any of their affiliates, as to whom the Company and the Guarantors make no covenant) not to engage (i) in any form of general solicitation or general advertising (within the meaning of Regulation D of the 1933 Act) or any public offering within the meaning of Section 4(a)(2) of the 1933 Act in connection with any offer or sale of the Securities and/or (ii) in any directed selling effort with respect to the Securities within the meaning of Regulation S under the 1933 Act, and to comply with the offering restrictions requirement of Regulation S of the 1933 Act.    
(p)No Integration.  The Company will not, and will ensure that no affiliate of the Company will, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any “security” (as defined in the 1933 Act) that would be integrated with the sale of the Securities in a manner that would require the registration under the 1933 Act of the sale to the Initial Purchaser or to the Eligible Purchasers of the Securities.
(q)Transaction Documents.  The Company and the Guarantors will do and perform all things required or necessary to be done and performed under the Transaction Documents to which it is a party by them prior to the Closing Date, and to satisfy all conditions precedent to the Initial Purchasers’ obligations hereunder to purchase the Securities.
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SECTION 4.  Payment of Expenses.
(a)Expenses.  The Company and the Guarantors, jointly and severally, will pay all expenses incident to the performance of their respective obligations under this Agreement, including (i) the preparation and printing of the Preliminary Offering Memorandum, the General Disclosure Package and the Offering Memorandum and each amendment thereto (in each case including exhibits) and any costs associated with electronic delivery of any of the foregoing, (ii) the word processing and delivery to the Initial Purchasers of each of the Transaction Documents and such other documents as may be required in connection with the offering, purchase, sale, issuance or delivery of the Securities, (iii) the preparation, issuance and delivery of the certificates for the Securities and the issuance and delivery of the Securities to the Initial Purchasers, including any issue or other transfer taxes and any stamp or other taxes or duties payable in connection with the sale, issuance or delivery of the Securities to the Initial Purchasers, (iv) the fees and disbursements of the counsel, accountants and other advisors to the Company and the Guarantors, (v) the qualification or exemption of the Securities under securities laws in accordance with the provisions of Section 3(f) hereof, including the reasonable fees and disbursements of counsel for the Initial Purchasers in connection therewith and in connection with the preparation of the Blue Sky Survey and any supplements thereto, (vi) the preparation, printing and delivery to the Initial Purchasers of copies of the Preliminary Offering Memorandum, the General Disclosure Package, the Offering Memorandum and any Issuer Free Writing Documents and any amendments or supplements to any of the foregoing and any costs associated with electronic delivery of any of the foregoing, (vii) the preparation, printing and delivery to the Initial Purchasers of copies of the Blue Sky Survey and any Canadian “wrapper” and any supplements thereto and any costs associated with electronic delivery of any of the foregoing, (viii) the fees and expenses of the Trustee, including the fees and disbursements of counsel for the Trustee in connection with the Transaction Documents, (ix) all fees charged by any rating agencies for rating the Securities and all expenses and application fees incurred in connection with the approval of the Securities for clearance, settlement and book-entry transfer through DTC, and (x) all travel expenses (including one-half of any expenses related to chartered aircraft, if any, of the Initial Purchasers and the Parent’s or the Company’s officers and employees) of each Initial Purchaser and the Parent’s or the Company’s officers and employees and any other expenses of each Initial Purchaser and the Company in connection with attending or hosting meetings with prospective purchasers of the Securities, and expenses associated with any electronic road show. It is understood, however, that except as provided in this Section 4, and Sections 6 and 7 hereof, the Initial Purchasers will pay all of their own costs and expenses, including the fees of their counsel.
(b)Termination of Agreement.  If this Agreement is terminated by the Representative in accordance with the provisions of Section 5, Section 9(a)(i) or Section 9(a)(iii) hereof, the Company and the Guarantors, jointly and severally, will reimburse the Initial Purchasers for all of their out-of-pocket expenses, including the reasonable fees and disbursements of counsel for the Initial Purchasers. 
SECTION 5.  Conditions of Initial Purchasers’ Obligations.  The obligations of the several Initial Purchasers hereunder are subject to the accuracy, on the date hereof and at the Closing Date (except to the extent that any such representation and warranty relates to an earlier date (in which case on and as of such earlier date)), of the representations and warranties of the Company and the Guarantors contained in this Agreement, or in certificates signed by any officer of the Company or any Guarantor (whether signed on behalf of such officer, the Company or such Guarantor) delivered to the Representative or counsel for the Initial Purchasers, to the performance by the Company and the Guarantors of their respective covenants and other obligations hereunder, and to the following further conditions:
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(a)Opinions of Counsel for Company and the Guarantors.  At the Closing Date, the Representative shall have received the favorable opinion, dated as of the Closing Date, of (i) Vinson & Elkins L.L.P., counsel for the Company and the Guarantors (“Vinson & Elkins”), in form and substance satisfactory to the Representative, together with signed or reproduced copies of such opinion for each of the other Initial Purchasers, to the effect set forth in Exhibit E hereto and to such further effect as the Representative may reasonably request, and (ii) Jones & Keller, P.C., counsel for the Company and the Guarantors (“Jones & Keller”), in form and substance satisfactory to the Representative, together with signed or reproduced copies of such opinion for each of the other Initial Purchasers, to the effect set forth in Exhibit F hereto and to such further effect as the Representative may reasonably request.
(b)Opinion of Counsel for Initial Purchasers.  At the Closing Date, the Representative shall have received the favorable letter, dated as of the Closing Date, of Latham & Watkins LLP, counsel for the Initial Purchasers, together with signed or reproduced copies of such letter for each of the other Initial Purchasers, with respect to the Securities to be sold by the Company pursuant to this Agreement, this Agreement, the Indenture, the General Disclosure Package and the Offering Memorandum, and any amendments or supplements thereto and such other matters as the Representative may reasonably request.
(c)Officers’ Certificate.  At the Closing Date, there shall not have been, since the date hereof or since the respective dates as of which information is given in the General Disclosure Package and the Offering Memorandum (in each case exclusive of any amendments or supplements thereto subsequent to the date of this Agreement), any material adverse change or any development that could reasonably be expected to result in a Material Adverse Effect.  At the Closing Date, the Representative shall have received a certificate, signed on behalf of the Company and each Guarantor by an executive officer of the Company and each Guarantor and the Chief Financial Officer or Chief Accounting Officer of the Company and each Guarantor, dated as of the Closing Date, to the effect that (i) there shall have not occurred, since the date hereof, any event having a Material Adverse Effect, (ii) the representations and warranties of the Company and the Guarantors in this Agreement are true and correct at and as of the Closing Date with the same force and effect as though expressly made at and as of the Closing Date and (iii) the Company and the Guarantors have complied with all agreements and satisfied all conditions on their part to be performed or satisfied at or prior to the Closing Date under or pursuant to this Agreement.
(d)Comfort Letters.  At the time of the execution of this Agreement, the Representative shall have received from each of Moss Adams, Grant Thornton, Deloitte and Plante & Moran a letter, dated the date of this Agreement and in form and substance satisfactory to the Representative, together with signed or reproduced copies of such letter for each of the other Initial Purchasers, containing statements and information of the type ordinarily included in accountants’ “comfort letters” to initial purchasers with respect to the financial statements and certain financial information contained in the General Disclosure Package, any Issuer Free Writing Documents (other than any electronic road show) and the Offering Memorandum and any amendments or supplements to any of the foregoing. 
(e)Bring-down Comfort Letters.  At the Closing Date, the Representative shall have received from each of Moss Adams, Grant Thornton, Deloitte and Plante & Moran a letter, dated as of the Closing Date and in form and substance satisfactory to the Representative, to the effect that they reaffirm the statements made in the letter furnished 
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pursuant to subsection (d) of this Section, except that the specified date referred to shall be a date not more than three business days prior to the Closing Date.
(f)Cawley Reserve Engineer Letter.  At the time of the execution of this Agreement, the Representative shall have received from Cawley a letter, dated the date of this Agreement and in form and substance satisfactory to the Representative, together with signed or reproduced copies of such letter for each of the other Initial Purchasers, (i) confirming that as of January 4, 2022 and March 22, 2022, the dates of its reserve reports, it was an independent reserve engineer with respect to the Parent and its consolidated subsidiaries, and that, as of the date of such letter, no information had come to its attention that could reasonably have been expected to cause it to withdraw its reserve report and (ii) otherwise in form and substance acceptable to the Representative.
(g)Cawley Bring-down Reserve Engineer Letter.  At the Closing Date, the Representative shall have received from Cawley a letter, dated as of the Closing Date and in form and substance satisfactory to the Representative, to the effect that they reaffirm the statements made in the letter furnished pursuant to subsection (f) of this Section, except that the specified date referred to shall be a date not more than three business days prior to the Closing Date.
(h)Ryder Reserve Engineer Letter.  At the time of the execution of this Agreement, the Representative shall have received from Ryder a letter, dated the date of this Agreement and in form and substance satisfactory to the Representative, together with signed or reproduced copies of such letter for each of the other Initial Purchasers, (i) confirming that as of January 21, 2022 and as of March 18, 2022, the dates of its reserve reports, it was an independent reserve engineer with respect to Bighorn and its consolidated subsidiaries, and that, as of the date of such letter, no information had come to its attention that could reasonably have been expected to cause it to withdraw its reserve report and (ii) otherwise in form and substance acceptable to the Representative.
(i)Ryder Bring-down Reserve Engineer Letter.  At the Closing Date, the Representative shall have received from Ryder a letter, dated as of the Closing Date and in form and substance satisfactory to the Representative, to the effect that they reaffirm the statements made in the letter furnished pursuant to subsection (h) of this Section, except that the specified date referred to shall be a date not more than three business days prior to the Closing Date. 
(j)No Downgrade.  There shall not have occurred, on or after the date of this Agreement, any downgrading in the rating of any debt securities of or guaranteed by the Company or any Guarantor by any “nationally recognized statistical rating organization” (as defined by the Commission in Section 3(a)(62) of the 1934 Act) or any public announcement that any such organization has placed its rating on the Company or any such debt securities under surveillance or review or on a so-called “watch list” (other than an announcement with positive implications of a possible upgrading, and no implication of a possible downgrading, of such rating) or any announcement by any such organization that the Company or any such debt securities has been placed on negative outlook.
(k)DTC Eligibility.  The Securities shall be eligible for clearance and settlement through DTC.
(l)Transaction Documents.  Each of the Company, the Guarantors and the other parties thereto shall have executed and delivered each of the Transaction Documents to which it is a party, and the Initial Purchasers shall have received authentic 
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copies thereof, duly executed by the Company, the Guarantors and the other parties thereto.
(m)Additional Documents.  At the Closing Date, counsel for the Initial Purchasers shall have been furnished with such documents and opinions as they may require for the purpose of enabling them to pass upon the issuance and sale of the Securities as herein contemplated, or in order to evidence the accuracy of any of the representations or warranties, or the fulfillment of any of the conditions, contained in this Agreement, or as the Representative or counsel for the Initial Purchasers may otherwise reasonably request; and all proceedings taken by the Company or any Guarantor in connection with the issuance and sale of the Securities as herein contemplated and in connection with the other transactions contemplated by this Agreement shall be satisfactory in form and substance to the Representative.
(n)Termination of Agreement.  If any condition specified in this Section 5 shall not have been fulfilled when and as required to be fulfilled, this Agreement may be terminated by the Representative by notice to the Company and the Guarantors at any time on or prior to the Closing Date and such termination shall be without liability of any party to any other party except as provided in Section 4 hereof and except that Sections 1, 4(b), 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19 and 20 hereof shall survive any such termination of this Agreement and remain in full force and effect.
SECTION 6.  Indemnification.
(a)Indemnification by the Company and the Guarantors.  The Company and each Guarantor agree, jointly and severally, to indemnify and hold harmless each Initial Purchaser, its affiliates, and its and their officers, directors, employees, agents, partners and members and each person, if any, who controls any Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows:
(i)against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of or based upon any untrue statement or alleged untrue statement of a material fact in the Preliminary Offering Memorandum, any Issuer Free Writing Document, the General Disclosure Package or the Offering Memorandum (or any amendment or supplement to any of the foregoing), or in any materials, presentations or information provided to investors by, or with the approval of, the Company or any Guarantor in connection with the marketing of the offering of the Securities, including any road show or investor presentations made available to investors by the Company or the Parent (whether in person or electronically), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
(ii)against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of, or pursuant to a judgment or other disposition in, any litigation, or any investigation or proceeding by any governmental or self-regulatory agency or body, commenced or threatened, or of any claim whatsoever arising out of or based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 6(d) below) any such settlement is effected with the written consent of the Company and the Guarantors; and
(iii)against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel), reasonably incurred in investigating, preparing or 
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defending against any litigation, or any investigation or proceeding by any governmental or self-regulatory agency or body, commenced or threatened, or any claim whatsoever arising out of or based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above,
provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of or based upon any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information about any Initial Purchaser furnished to the Company or any Guarantor by such Initial Purchaser through the Representative expressly for use in the Preliminary Offering Memorandum, any Issuer Free Writing Document, the General Disclosure Package or the Offering Memorandum (or in any amendment or supplement to any of the foregoing), it being understood and agreed that the only such information furnished by the Initial Purchasers as aforesaid consists of the information described as such in Section 6(b) hereof.
(b)Indemnification by the Initial Purchasers.  Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless the Company and the Guarantors, their respective affiliates, officers, directors, employees, agents, partners and members and each person, if any, who controls the Company or the Guarantors within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section 6, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Preliminary Offering Memorandum, any Issuer Free Writing Document or the Offering Memorandum (or any amendment or supplement to any of the foregoing), in reliance upon and in conformity with written information relating to such Initial Purchaser furnished to the Company or any Guarantor by such Initial Purchaser through the Representative expressly for use therein.  The Company and the Guarantors hereby acknowledge and agree that the information furnished to the Company and any Guarantor by the Initial Purchasers through the Representative expressly for use in the Preliminary Offering Memorandum, any Issuer Free Writing Document or the Offering Memorandum (or any amendment or supplement to any of the foregoing), consists exclusively of the following information appearing under the caption “Plan of Distribution” in the Preliminary Offering Memorandum and the Offering Memorandum: the fourth paragraph, the third and fourth sentences of the sixth paragraph and the ninth, tenth and eleventh paragraphs, all under such caption.
(c)Actions Against Parties; Notification.  Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action (including any proceeding, governmental or regulatory investigation) commenced against it in respect of which indemnity may be sought hereunder; provided, however, that the failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability that it may have under this Section 6; provided further, that the failure to so notify such indemnifying party shall not relive such indemnifying party from any liability that it may have to such indemnified party otherwise than under this Section 6.  Counsel to the indemnified parties shall be selected as follows: counsel to the Initial Purchasers and the other indemnified parties referred to in Section 6(a) above shall be selected by RBC; and counsel to the Company, the Parent and the Guarantors, their respective affiliates, officers, directors, employees, agents, partners and members and each person, if any, who controls the Company or the Guarantors within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall be selected by the Company and the Guarantors.  An indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to the indemnified party.  In no event shall the indemnifying party be liable for the fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for the Initial 
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Purchasers and the other indemnified parties referred to in Section 6(a) above; and the fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for the Company and the Guarantors, their respective affiliates, officers, directors, employees, agents, partners and members and each person, if any, who controls the Company or the Guarantors within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, in each case in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances.  No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 or Section 7 hereof (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
(d)Settlement Without Consent if Failure to Reimburse.  If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by this Section 6, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 6(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.
SECTION 7.  Contribution.  If the indemnification provided for in Section 6 hereof is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors on the one hand and the Initial Purchasers on the other hand from the offering of the Securities pursuant to this Agreement or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Guarantors on the one hand and of the Initial Purchasers on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations.
The relative benefits received by the Company and the Guarantors on the one hand and the Initial Purchasers on the other hand in connection with the offering of the Securities pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Securities pursuant to this Agreement (before deducting expenses) received by the Company and the Guarantors and the total discounts and commissions received by the Initial Purchasers, in each case as determined pursuant to this Agreement, bear to the aggregate initial offering price of the Securities as set forth on the cover of the Offering Memorandum.
The relative fault of the Company and the Guarantors on the one hand and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company and the Guarantors on the one hand or by the Initial Purchasers on the other hand and the parties’ relative intent, 
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knowledge, access to information and opportunity to correct or prevent such statement or omission.
The Company and the Guarantors and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 7.  The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 7 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission.
Notwithstanding the provisions of this Section 7, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the net proceeds from the sale to Eligible Purchasers of the Securities initially purchased by it exceeds the amount of any damages which such Initial Purchaser has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission.
No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
For purposes of this Section 7, each affiliate, officer, director, employee, partner and member of each Initial Purchaser and each person, if any, who controls any Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser, and each of the respective affiliates, officers, directors, employees, agents, partners and members of the Company and each Guarantor, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company and the Guarantors.  The Initial Purchasers’ respective obligations to contribute pursuant to this Section 7 are several in proportion to the principal amount of the Securities set forth opposite their respective names in Exhibit A hereto and not joint.
SECTION 8.  Representations, Warranties and Agreements to Survive Delivery.  All representations, warranties and agreements contained in this Agreement or in certificates signed by any officer of the Company or any of their subsidiaries (whether signed on behalf of such officer, the Company or such subsidiary) and delivered to the Representative or counsel to the Initial Purchasers, shall remain operative and in full force and effect, regardless of any investigation made by or on behalf of any Initial Purchaser, its affiliates and any of their any officers, directors, employees, partners, members or agents of any Initial Purchaser or any person controlling any Initial Purchaser, or by or on behalf of the Company, any Guarantor, any of their affiliates, officers, directors, employees, agents, partners and members or any person controlling the Company or any Guarantor, and shall survive delivery of and payment for the Securities.
SECTION 9.  Termination of Agreement.
(a)Termination; General.  The Representative may terminate this Agreement, by notice to the Company and the Guarantors, at any time on or prior to the Closing Date (i) if there has been, at any time on or after the date of this Agreement or since the respective dates as of which information is given in the General Disclosure Package or the Offering Memorandum (in each case exclusive of any amendments or supplements thereto subsequent to the date of this Agreement), any material adverse change or any development that could reasonably be expected 
28

to result in a material adverse change, in the condition (financial or otherwise), results of operations, business, properties, management or prospects of the Parent and its subsidiaries taken as a whole, whether or not arising in the ordinary course of business, or (ii) if there has occurred any material adverse change in the financial markets in the United States or the international financial markets, there has occurred any declaration of a national emergency or war by the United States, any outbreak of hostilities or escalation thereof or other calamity or crisis or any change or development involving a prospective change in national or international political, financial or economic conditions (including, without limitation, as a result of terrorist activities), in each case the effect of which is such as to make it, in the judgment of the Representative, impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities or to enforce contracts for the sale of the Securities, (iii) if trading in any securities of the Company or any of the Guarantors has been suspended or materially limited by the Commission or the NYSE, (iv) if trading generally on the NYSE, the Nasdaq Global Select Market, the Nasdaq Global Market, the Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the Chicago Board of Trade has been suspended or limited, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices have been required, by any of said exchanges or by order of the Commission or any other governmental authority, or if a material disruption has occurred in commercial banking or securities settlement or clearance services in the United States or in Europe, or (v) if a banking moratorium has been declared by either Federal or New York authorities.
(b)Liabilities.  If this Agreement is terminated pursuant to this Section 9, such termination shall be without liability of any party to any other party except as provided in Section 4 hereof, and except that Sections 1, 4(b), 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19 and 20 hereof shall survive such termination and remain in full force and effect.
SECTION 10.  Default by One or More of the Initial Purchasers.   If one or more of the Initial Purchasers shall fail at the Closing Date to purchase the aggregate principal amount of the Securities which it or they are obligated to purchase under this Agreement (the “Defaulted Securities”), the Representative shall have the right, within 24 hours thereafter, to make arrangements for one or more of the non-defaulting Initial Purchasers, or any other purchaser, to purchase all, but not less than all, of the Defaulted Securities in such amounts as may be agreed upon and upon the terms herein set forth; if, however, the Representative shall not have completed such arrangements within such 24-hour period, then:
(i)if the aggregate principal amount of the Defaulted Securities does not exceed 10% of the aggregate principal amount of the Securities, each of the non-defaulting Initial Purchasers shall be obligated, severally and not jointly, to purchase the full amount of such Defaulted Securities in the proportions that their respective purchase obligations hereunder bear to the purchase obligations of all non-defaulting Initial Purchasers; or
(ii)if the number of the Defaulted Securities exceeds 10% of the aggregate principal amount of the Securities, this Agreement shall terminate without liability on the part of any non-defaulting Initial Purchaser.
No action taken pursuant to this Section 10 shall relieve any defaulting Initial Purchaser from liability in respect of its default.
In the event of any such default which does not result in a termination of this Agreement, the Representative or the Company shall have the right to postpone the Closing Date for a period not exceeding seven days in order to effect any required changes in the General Disclosure Package or the Offering Memorandum or in any other documents or arrangements.  As used 
29

herein, the term “Initial Purchaser” includes any person substituted for an Initial Purchaser under this Section 10.
SECTION 11.  Notices.  All notices and other communications hereunder shall be in writing, shall be effective only upon receipt and shall be mailed, delivered by hand or overnight courier, or transmitted by fax (with the receipt of any such fax to be confirmed by telephone).  Notices to the Initial Purchasers shall be directed to the Representative at RBC Capital Markets, LLC, c/o RBC Capital Markets, LLC, Three World Financial Center, 200 Vesey Street, New York, New York 10281; Attention: High Yield Capital Markets, with a copy to Latham & Watkins LLP, 811 Main Street, Suite 3700, Houston, TX 77002; Attention: Michael Chambers and David Miller; and notices to the Company or any Guarantor shall be directed to it at 1400 Woodloch Forest Drive, Suite 300, The Woodlands, Texas 77380, Attention: Robert J. Anderson.
SECTION 12.  Parties.  This Agreement shall each inure to the benefit of and be binding upon the Initial Purchasers, the Company, the Guarantors and their respective successors.  Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm or corporation, other than the Initial Purchasers, the Company, the Guarantors and their respective successors and the controlling persons and other indemnified parties referred to in Sections 6 and 7 and their successors, heirs and legal representatives, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein contained.  This Agreement and all conditions and provisions hereof are intended to be for the sole and exclusive benefit of the Initial Purchasers, the Company, the Guarantors and their respective successors, and said controlling persons and other indemnified parties and their successors, heirs and legal representatives, and for the benefit of no other person or entity.  No purchaser of the Securities from any Initial Purchaser shall be deemed to be a successor by reason merely of such purchase.
SECTION 13.  GOVERNING LAW AND TIME.  THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.  EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.
SECTION 14.  Effect of Headings.  The Section and Exhibit headings herein are for convenience only and shall not affect the construction hereof.
SECTION 15.  Definitions.  As used in this Agreement, the following terms have the respective meanings set forth below:
“Applicable Time” means 3:00 p.m. (New York City time) on April 7, 2022. 
“Commission” means the U.S. Securities and Exchange Commission.
 “DTC” means The Depository Trust Company.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations and published interpretations thereunder.
“NYSE” means the New York Stock Exchange.
“Organizational Documents” means (a) in the case of a corporation, its charter and bylaws; (b) in the case of a limited or general partnership, its partnership certificate, certificate of formation or similar organizational document and its partnership agreement; (c) in the case of a 
30

limited liability company, its articles of organization, certificate of formation or similar organizational documents and its operating agreement, limited liability company agreement, membership agreement or other similar agreement; (d) in the case of a trust, its certificate of trust, certificate of formation or similar organizational document and its trust agreement or other similar agreement; and (e) in the case of any other entity, the organizational and governing documents of such entity.
“Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder or implementing the provisions thereof.
“Transaction Documents” means this Agreement, the Indenture, the Securities and the Guarantees, collectively.
 “1933 Act” means the Securities Act of 1933, as amended.
“1933 Act Regulations” means the rules and regulations of the Commission under the 1933 Act.
“1934 Act” means the Securities Exchange Act of 1934, as amended.
“1934 Act Regulations” means the rules and regulations of the Commission under the 1934 Act.
“1939 Act” means the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission thereunder.
All references in this Agreement to the Preliminary Offering Memorandum and the Offering Memorandum, any Issuer Free Writing Document or any amendment or supplement to any of the foregoing shall be deemed to include all versions thereof delivered (physically or electronically) to the Representative or the Initial Purchasers.
All references in this Agreement to financial statements and schedules and other information which is “contained,” “included” or “stated” in the Preliminary Offering Memorandum or the Offering Memorandum (and all other references of like import) shall be deemed to mean and include all such financial statements and schedules and other information which is incorporated by reference in the Preliminary Offering Memorandum or the Offering Memorandum, as the case may be; and all references in this Agreement to amendments or supplements to the Preliminary Offering Memorandum or the Offering Memorandum shall be deemed to mean and include the filing of any document under the 1934 Act which is incorporated by reference in the Preliminary Offering Memorandum or the Offering Memorandum.
SECTION 16.  Permitted Free Writing Documents.  The Company and each Guarantor represents, warrants and agrees that it has not made and, unless it obtains the prior written consent of the Representative, it will not make, and each Initial Purchaser, severally and not jointly, represents, warrants and agrees that it has not made and, unless it obtains the prior written consent of the Company, the Guarantors and the Representative, it will not make, any offer relating to the Securities that (if the offering of the Securities was made pursuant to a registered offering under the 1933 Act) would constitute an “Issuer Free Writing Prospectus” (as defined in Rule 433) (any such document, a “Issuer Free Writing Document”) or that would constitute a “free writing prospectus” (as defined in Rule 405) which would be required to be filed with the Commission in connection with an offering registered under the 1933 Act, in the case of any Initial Purchasers; provided that the prior written consent of the Company, the Guarantors and the Representative shall be deemed to have been given in respect of the Issuer 
31

Free Writing Documents, if any, listed on Exhibit D hereto and to any electronic road show in the form previously provided by the Company or the Parent to and approved by the Representative.  
SECTION 17.  Absence of Fiduciary Relationship.  Each of the Company and the Guarantors acknowledge and agree that:
(a)each of the Initial Purchasers is acting solely as an initial purchaser in connection with the sale of the Securities and no fiduciary, advisory or agency relationship between the Company and any Guarantor, on the one hand, and any of the Initial Purchasers, on the other hand, has been created in respect of any of the transactions contemplated by this Agreement, irrespective of whether or not any of the Initial Purchasers has advised or is advising the Company or any Guarantor on other matters (it being understood that in any event that no Initial Purchaser shall be deemed to have provided legal, accounting or tax advice to the Company, any Guarantor or any of their respective subsidiaries);
(b)the offering price of the Securities and the price to be paid by the Initial Purchasers for the Securities set forth in this Agreement were established by the Company and the Guarantors following discussions and arms-length negotiations with the Representative;
(c)they are capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions contemplated by this Agreement;
(d)they are aware that the Initial Purchasers and their respective affiliates are engaged in a broad range of transactions which may involve interests that differ from those of the Company and the Guarantors and that none of the Initial Purchasers has any obligation to disclose such interests and transactions to the Company or the Guarantors by virtue of any fiduciary, advisory or agency relationship or otherwise; 
(e)the Company and the Guarantors have consulted their own legal and financial advisors to the extent they deemed appropriate; and
(f)they waive, to the fullest extent permitted by law, any claims they may have against any of the Initial Purchasers for breach of fiduciary duty or alleged breach of fiduciary duty and agrees that none of the Initial Purchasers shall have any liability (whether direct or indirect, in contract, tort or otherwise) to them in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on their behalf or in right of them or the Company, the Guarantors or any stockholders, employees or creditors of the Company or any Guarantor.
SECTION 18.  Research Analyst Independence and Other Activities of the Initial Purchasers.  The Company and the Guarantors acknowledge that the Initial Purchasers’ research analysts and research departments are required to be separate from, and not influenced by, their respective investment banking divisions and are subject to certain regulations and internal policies, and that such Initial Purchasers’ research analysts may hold views and make statements or investment recommendations and/or publish research reports with respect to the Company or the Guarantors and/or the offering that differ from the views of their respective investment banking divisions.  The Company and the Guarantors hereby waive and release, to the fullest extent permitted by applicable law, any claims that the Company or the Guarantors may have against the Initial Purchasers arising from the fact that the views expressed by their research analysts and research departments may be different from or inconsistent with the views or advice communicated to the Company or the Guarantors by such Initial Purchasers’ investment banking divisions.  The Company and the Guarantors also acknowledge that each of the Initial Purchasers is a full service securities firm and as such from time to time, subject to applicable securities laws, may effect transactions for its own account or the account of its customers, may make 
32

recommendations and provide other advice, and may hold long or short positions in debt or equity securities of, or derivative products related to, the companies that may be the subject of the transactions contemplated by this Agreement and the Company and the Guarantors hereby waive and release, to the fullest extent permitted by applicable law, any claims that the Company or the Guarantors may have against the Initial Purchasers with respect to any such other activities.
SECTION 19.  Waiver of Jury Trial.  The Company, the Guarantors and each of the Initial Purchasers 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 Agreement or the transactions contemplated hereby.
SECTION 20.  Consent to Jurisdiction.  The Company, the Guarantors and each of the Initial Purchasers hereby submit to the non-exclusive jurisdiction of any U.S. federal or state court located in the Borough of Manhattan, the City and County of New York in any action, suit or proceeding arising out of or relating to or based upon this Agreement or any of the transactions contemplated hereby, and the Company, the Guarantors and each of the Initial Purchasers irrevocably and unconditionally waive any objection to the laying of venue of any action, suit or proceeding in any such court arising out of or relating to this Agreement or the transactions contemplated hereby and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such action, suit or proceeding has been brought in an inconvenient forum.
SECTION 21.  Compliance with USA Patriot Act.  In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Initial Purchasers are required to obtain, verify and record information that identifies their respective clients, including the Company, which information may include the name and address of their respective clients, as well as other information that will allow the Initial Purchasers to properly identify their respective clients.
SECTION 22.  Recognition of the U.S. Special Resolution Regimes. In the event that any Initial Purchaser that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Initial Purchaser of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.
    In the event that any Initial Purchaser that is a Covered Entity or a BHC Act Affiliate of such Initial Purchaser becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Initial Purchaser are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.
    For purposes of this Section 22, a “BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k). “Covered Entity” means any of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b). “Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable. “U.S. Special Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the 
33

Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.
SECTION 23.  Entire Agreement; Counterparts. This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof.  This Agreement may be signed in counterparts (which may include counterparts delivered by any standard form of telecommunication), each of which shall be an original and all of which together shall constitute one and the same instrument.
SECTION 24.  Amendments or Waivers.  No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto.
SECTION 25.  Authority of Representative.  Any action by the Initial Purchasers hereunder may be taken by RBC Capital Markets, LLC on behalf of the Initial Purchasers, and any such action taken by RBC Capital Markets, LLC shall be binding upon the Initial Purchasers.

[Signature Pages Follow]
34

If the foregoing is in accordance with your understanding of our agreement, please sign and return to the Company and the Guarantors a counterpart hereof, whereupon this instrument, along with all counterparts, will become a binding agreement among the Initial Purchasers, the Company and the Guarantors in accordance with its terms.
Very truly yours,
									
	COMPANY:
			
	EARTHSTONE ENERGY HOLDINGS, LLC
			
	By	/s/ Robert J. Anderson
		Name:	Robert J. Anderson
		Title:	President and CEO

									
	GUARANTORS:
			
	EARTHSTONE ENERGY, INC.
			
	By	/s/ Robert J. Anderson
	Name:		Robert J. Anderson
	Title:		President and CEO

									
	EARTHSTONE OPERATING, LLC
			
	By	/s/ Robert J. Anderson
		Name:	Robert J. Anderson
		Title:	President and CEO

									
	SABINE RIVER ENERGY, LLC
			
	By	/s/ Robert J. Anderson
		Name:	Robert J. Anderson
		Title:	President and CEO

Signature Page to Purchase Agreement

									
	EARTHSTONE PERMIAN LLC
			
	By	/s/ Robert J. Anderson
		Name:	Robert J. Anderson
		Title:	President and CEO

									
	INDEPENDENCE RESOURCES TECHNOLOGIES, LLC
			
	By	/s/ Robert J. Anderson
	Name:		Robert J. Anderson
	Title:		President and CEO

Signature Page to Purchase Agreement

CONFIRMED AND ACCEPTED, as of the date first above written:
									
	RBC CAPITAL MARKETS, LLC
			
	By	/s/ Stephen Pedone
		Authorized Signatory	
			

For itself and as Representative of the Initial Purchasers named in Exhibit A hereto.
Signature Page to Purchase Agreement

EXHIBIT A
						
	    Name of Initial Purchaser
	Principal Amount of
Securities

	RBC Capital Markets, LLC	$151,250,000
	Wells Fargo Securities, LLC	$110,000,000
	BofA Securities, Inc.	$72,875,000
	Truist Securities, Inc.	$66,000,000
	Citizens Capital Markets, Inc.	$27,500,000
	Fifth Third Securities, Inc.	$27,500,000
	KeyBanc Capital Markets Inc.	$27,500,000
	PNC Capital Markets LLC	$27,500,000
	U.S. Bancorp Investments, Inc.	$27,500,000
	FHN Financial Securities Corp.	$6,875,000
	Comerica Securities, Inc.	$5,500,000
	    Total    
	$550,000,000

A-1

EXHIBIT B
Guarantors
Earthstone Energy, Inc.
Earthstone Operating, LLC
Sabine River Energy, LLC
Earthstone Permian LLC
Independence Resources Technologies, LLC
B-1

EXHIBIT C
PRICING TERM SHEET

Pricing Term Sheet 

Earthstone Energy Holdings, LLC April 7, 2022

$550,000,000 8.000% Senior Notes due 2027

This pricing term sheet is qualified in its entirety by reference to the Preliminary Offering Memorandum, dated April 6, 2022 (the “Preliminary Offering Memorandum”). The information in this pricing term sheet supplements the Preliminary Offering Memorandum and updates and supersedes the information in the Preliminary Offering Memorandum to the extent it is inconsistent with the information in the Preliminary Offering Memorandum.

Capitalized terms used and not defined herein have the meanings assigned in the Preliminary Offering Memorandum.

Issuer:    Earthstone Energy Holdings, LLC

Securities Description:    8.000% Senior Notes due 2027 (the “notes”)

Ratings (Moody’s/S&P/Fitch)*:    B3 / B+ / B+

Distribution:    144A/Regulation S for life

Size:    $550,000,000

Gross Proceeds:    $550,000,000

Use of Proceeds:        We intend to use the net proceeds from this offering to repay borrowings under our revolving credit facility.

Maturity:    April 15, 2027

Coupon:    8.000%

Issue Price:        100% of face amount, plus accrued interest, if any, from the settlement date

C-1

Yield to Maturity:    8.000%

Spread to Benchmark Treasury:    530.7 basis points

Benchmark Treasury:    0.50% due April 30, 2027

Benchmark Treasury Yield:    2.693%

Interest Payment Dates:    April 15 and October 15, commencing October 15, 2022

Equity Clawback:    Up to 35% at 108.000% prior to April 15, 2024

Optional Redemption:    Make-whole call @ T+50 bps prior to April 15, 2024 then:

						
	On or after April 15 of:	Price:
	2024	106.000%
	2025	102.000%
	2026 and thereafter	100.000%

Change of Control:    Putable at 101% of principal plus accrued and unpaid interest

Trade Date:    April 7, 2022

Settlement:    T+3; April 12, 2022 It is expected that delivery of the notes will be made against payment therefor on or about April 12, 2022, which is the third business day following the date hereof (such settlement cycle being referred to as “T+3”). Under Rule 15c6-1 under the Exchange Act, trades in the secondary market generally are required to settle in two business days unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade the notes on the date of pricing will be required, by virtue of the fact that the notes initially will settle in T+3, to specify an alternative settlement cycle at the time of any such trade to prevent a failed settlement.
Purchasers of the notes who wish to trade the notes on the date of pricing should consult their own advisors.

C-2

CUSIP / ISIN Numbers:    144A: 27034R AA1 / US27034RAA14
Regulation S: U2678K AA7 / USU2678KAA70

Denominations/Multiple:    $2,000/$1,000

Joint Active Bookrunners:        RBC Capital Markets, LLC Wells Fargo Securities, LLC BofA Securities, Inc.

Joint Bookrunners    Truist Securities, Inc.
Citizens Capital Markets, Inc. Fifth Third Securities, Inc.
KeyBanc Capital Markets Inc. PNC Capital Markets LLC
U.S. Bancorp Investments, Inc.

Co- Managers    FHN Financial Securities Corp.
Comerica Securities, Inc.

This material is confidential and is for your information only and is not intended to be used by anyone other than you. This information does not purport to be a complete description of these notes or the offering. Please refer to the Preliminary Offering Memorandum for a complete description.

This communication is being distributed in the United States solely to persons reasonably believed to be Qualified Institutional Buyers, as defined in Rule 144A under the Securities Act of 1933, as amended, and outside the United States solely to Non-U.S. persons as defined under Regulation S.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction.

*A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. Any disclaimer or notice that may appear below is not applicable to this communication and should be disregarded. Such disclaimer or notice was automatically generated as a result of this communication being sent by Bloomberg or another email system.
C-3

EXHIBIT D
ISSUER FREE WRITING DOCUMENTS
(1)    None.

D-1

EXHIBIT E
FORM OF OPINION OF VINSON & ELKINS L.L.P.

E-1

EXHIBIT F
FORM OF OPINION OF JONES & KELLER, P.C.

F-1EX-10.29

 Exhibit 10.29 

 
  

 
 SHAREHOLDERS AGREEMENT 

BETWEEN 
 EXCELLA GESTÃO DE
SAÚDE POPULACIONAL LTDA., 
 SEMANTIX PARTICIPAÇÕES S.A, 

AND, ADDITIONALLY, AS A CONSENTING INTERVENING PARTY, 

TRADIMUS S.A. 
  

 
 DATED
MAY 26, 2021 
  
  

 
  

 

 SHAREHOLDERS AGREEMENT 

By the present instrument and in the best form of law, the parties below, namely: 

(i)    EXCELLA GESTÃO DE SAÚDE POPULACIONAL LTDA., a limited liability company registered with the CNPJ under No. 34.383.532/0001-77, headquartered in the city of São Paulo, state of São Paulo, at Avenida Brigadeiro Faria Lima, No. 3144, 3rd floor, sala 329, Jardim Paulistano, CEP 01451-000, herein duly represented in the terms of its articles of incorporation (“Excella”); 

(ii)    SEMANTIX PARTICIPAÇÕES S.A., a corporation registered with the CNPJ under
No. 29.920.755/0001-96, headquartered in the city of São Paulo, state of São Paulo, at Avenida Eusébio Matoso, No. 1375, 10th floor, Pinheiros, CEP
05423-180 (“Semantix” and, collectively with Excella, “Shareholders”); 
 and,
additionally, as a consenting intervening party, 
 (iii)    TRADIMUS S.A., a corporation registered with the CNPJ under No. 10.325.433/0001-70, headquartered in the city of São Paulo, state of São Paulo, at Avenida Eusébio Matoso, No. 1375, 10th floor, Butantã, CEP
05423-180, herein duly represented in accordance with its Bylaws (“Company”); 
 (Excella,
Semantix, and the Company are hereinafter collectively referred to as the “Parties” and individually as “Party”). 

PREAMBLE 
 WHEREAS, on
March 27, 2020, Excella and Semantix Tecnologia em Sistema de Informação S.A., a corporation registered with the CNPJ under No. 09.162.524/0001-53 (“Semantix
Tecnologia”) entered into a Memorandum of Understanding, which formalized initial terms on the execution of a partnership based on the synergy of their operations, in order to enable, with the maximum potential success, efficiency and
benefits in services related to data management in healthcare through digital platforms and other means agreed between the Parties (“MOU”); 

WHEREAS, Semantix Tecnologia is a company that operates, among others, in the development and commercialization of products developing technologies and
solutions for Big Data Analytics, Search, Artificial Intelligence, Internet of Things, including integrations with cloud and on-premises computing providers, and data enterprise platforms for customers
in any industry sector; 

 WHEREAS, Excella is a company that operates, among others, in the segment of analysis and processing
of data on assisted performance, costs, follow-up, related to users of healthcare plans and insurance, as well as the provision of information technology services related to the management of healthcare plans
and insurance, including data processing and the provision of tools for advanced analytical solutions in several models, among which the provision of consulting services; 

WHEREAS, on the present date, Excella subscribed, seven hundred and eight thousand and five hundred (708,500) common, nominative shares, without par
value, at an issue price of approximately fourteen reais and sixteen cents (R$14.16) per share, for the total amount of ten million, thirty-six thousand, eight hundred and sixty-nine reais and twenty-seven
cents (R$10,036,869.27), of which (i) the amount corresponding to fifty percent (50%) will be paid the day after the present date, that is, May 27, 2021; and (ii) the remaining amount corresponding to fifty percent (50%) must be paid
up within twelve (12) months from the present date, pursuant to the terms of the share subscription form signed by Excella, so that Excella is the holder of fifty percent (50%) of the Company’s total and voting share capital; and 

WHEREAS, the Shareholders have agreed to establish certain principles and rules that will govern the transfer of shares, their relationship as
Shareholders of the Company, as well as the conduct of the business and activities of the Company and its Subsidiaries, pursuant to article 118 of the Lei das Sociedades por Ações (the Companies Law). 

HEREBY the Parties execute this Shareholders Agreement (“Agreement”), which shall be governed by the following terms and conditions:

 ARTICLE I 

DEFINITIONS AND INTERPRETATIONS 

1.1.    Definitions. For the purposes of this Agreement (including the Preamble above and its Annexes), unless otherwise expressed
herein, capitalized words and expressions shall have the following meanings: 
 “Act of Corruption” means to give, offer, receive, or agree
to receive (in isolation or together) payment, gratuity, or other advantage, in business with the public or private sector, that: (i) violates (or had the intention to violate) the Leis Anticorrupção (Anti-Corruption Laws);
(ii) influences (or had the intention to influence) any person to act or has improperly rewarded any person for acting contrary to the expectation of good faith, impartiality or trust; or (iii) influences (or had the intention to influence) a
Governmental Authority to grant or retain an advantage in the conduct of the Company’s and/or Subsidiaries’ business; 

 “Additional Funds” has the meaning set forth in Section 8.5; 

“Affiliate” means, in respect of a Person, (i) any other Person who, directly or indirectly, controls, is controlled by or is under
common control with, such Person, and (ii) in the event that the relevant Person is a natural person, his or her spouse, ascendant(s), descendant(s) or relatives in direct line to the third (3rd) degree, as well as any Affiliate of such natural
person; 
 “Agreement” has the meaning set forth in the description of the Parties to this Agreement set forth above; 

“Anti-Corruption Laws” have the meaning set forth in Section 9.9; 

“Business Day” means a day, other than Saturday or Sunday, on which commercial banks are not required or authorized by Law to close in the
city of São Paulo, state of São Paulo; 
 “Bylaws” means the Company’s Bylaws in effect at the time; 

“CAM-CCBC” has the meaning set forth in Section 13.10; 

“CEO” means the Chief Executive Officer of the Company; 

“Civil Code” means Law No. 10.406 dated January 10, 2002, as amended; 

“CNPJ” means the Cadastro Nacional de Pessoa Juridica (National Register of Legal Entities) of the Ministry of Economy; 

“Code of Civil Procedure” means Law No. 13.105 dated March 16, 2015, as amended; 

“Collaborative Sale Share Price” has the meaning set forth in Section 4.6; 

“Collaborative Sale Term” has the meaning set forth in Section 4.7; 

“Collaborative Sale” has the meaning set forth in Section 4.5; 

“Collaborative Sale Shares” has the meaning set forth in Section 4.6.1; 

“Collaborative Sale Shareholder” has the meaning set forth in Section 4.6; 

“Companies Law” means Law No. 6.404 dated December 15, 1976, as amended; 

“Company” has the meaning set forth in the description of the Parties to this Agreement set forth above; 

 “Competitor” means any Persons who practice the Exclusive Activities of the Company; 

“Confidential Information” has the meaning set forth in Section 13.7; 

“Constricted Shares” has the meaning set forth in Section 5.4; 

“Constricted Share Acquisition Price” has the meaning set forth in Section 5.4.1; 

“Consulting Agreement” has the meaning set forth in Section 9.5; 

“Control” has the meaning provided for in articles 116 and 243, of the Lei das Sociedades por Ações (the Companies Law).
Terms related to Control, such as “Controlled”, “Parent Company”, “Controlling”, “under common Control”, among others, will have similar meanings to Control; 

“Controversial Matter” has the meaning set forth in Section 4.4; 

“CPF/ME” means the National Registry of Natural Persons of the Ministry of Economy; 

“Deadlock” has the meaning set forth in Section 4.4.2; 

“Default” means, with respect to the Company’s officers, (i) the violation or noncompliance with Laws or determinations of the
Board of Directors or general meeting of the Company or its Subsidiaries; (ii) wrongful act, negligence or serious fault to the detriment of the Company, its Subsidiaries or Shareholders; (iii) conviction in the first instance or a plea of
guilty or nolo contendere before a court in relation to any offense considered as a felony or punishable by imprisonment, or tortious act, fraud, misconduct, theft or unethical business conduct (iv) breach of any contract with or
obligation to the Company, its Subsidiaries or its Shareholders, including, without limitation, this Agreement; (v) any action or omission harmful to the Company, its Subsidiaries or its Shareholders, including, without limitation, with regard
to monetary or reputational/image aspects; or (vi) violation of any policies of the Company or its Subsidiaries not cured within thirty (30) days after due notice of violation, if possible; 

“Defaulting Shareholder” has the meaning set forth in Section 5.4; 

“Delaying Shareholder” has the meaning set forth in Section 8.3; 

“E&S Action Plan” has the meaning set forth in Section 9.13; 

“E&S Officer” has the meaning set forth in Section 9.13; 

“E&S Policy” has the meaning set forth in Section 9.13; 

 “Encumbrances” means, as the case may be, any mortgage, lien, demand in rem and/or
repossession, security interest, encumbrance, charge, fiduciary alienation with or without reservation of title, seizure, attachment, garnishment, right of use, easement, trespass, voting agreement, participation right, option right of preference
for acquisition or subscription, in rem rights, constrictions of any nature, limitations to the full and free use, enjoyment or fruition of any asset or right (or any of the attributes inherent or related to such asset or right), whether as a result
of law, regulation, order, judicial or administrative decision or contractual provision; 
 “Event of Disrepute” has the meaning set forth
in Section 9.11; 
 “Excella” has the meaning set forth in the description of the Parties to this Agreement set forth above; 

“Exclusive Activities of the Company” means the activities listed in Annex A; 

“Financial Advisor” has the meaning set forth in Section 4.5; 

“Financial Stress” means the Company’s cash being less than three hundred thousand reais (R$300,000.00) for two (2) subsequent
months during the 2021 year. For subsequent years, the Shareholders must agree on the minimum value, and in the absence of an agreement, the value established for the immediately preceding year will be considered; 

“First Offer Notice” has the meaning set forth in Section 6.2; 

“First Offer Period” has the meaning set forth in Section 6.2.1; 

“First Period” has the meaning set forth in Section 8.1; 

“Government Authority” means any and all governments, agencies, departments, secretariats, courts, or other organs of the Brazilian
government or foreign governments, whether federal, state, or municipal, linked directly or indirectly to the judicial, legislative, or executive branches, the chamber or Arbitral Tribunal, regulatory agencies, the public ministry, or other
governmental authorities; 
 “Initial Budget” has the meaning set forth in Section 8.1; 

“Initial Business Plan” has the meaning set forth in Section 8.1; 

“Initial Corporate Event” has the meaning set forth in Section 4.4; 

“Initial Period” has the meaning set forth in Section 4.4; 

“Initial Subscription” has the meaning set forth in Section 8.1; 

 “Issue Price of Supplementary Shares” has the meaning set forth in Section 8.2.2; 

“Joint Selling Right” has the meaning set forth in Section 7.1; 

“Judicial Constraint” means a judicial decision, final or otherwise, that is enforceable in the form of execution for a sum certain against a
solvent debtor and/or a judicial order resulting in any form of restriction of a coercive nature on the Shares held by the Shareholders. The attachment, seizure, and/or sequestration of assets that fall upon the Shares owned by Shareholders will
also be considered a Judicial Constraint; 
 “Know-How” has the meaning set forth in
Section 9.5; 
 “Law” means any and all laws, rules, regulations, judgments, administrative, judicial or arbitral decisions,
instructions, ordinances or orders of any Governmental Authority and environmental agencies to which a particular Person is subject; 
 “License
Value” has the meaning set forth in Section 9.4.1; 
 “Lock-Up Period” has the
meaning set forth in Section 5.1.2; 
 “Mediator” has the meaning set forth in Section 4.4.1; 

“Mediator Negotiating Period” has the meaning set forth in Section 4.4.1; 

“New License Value” has the meaning set forth in Section 9.4.4; 

“Non-Compete Obligation” has the meaning set forth in Section 9.2; 

“Non-Compete Period” has the meaning set forth in Section 9.2; 

“Notice of Commencement of Collaborative Sale” has the meaning set forth in Section 4.5; 

“Notice of Offer in Collaborative Sale” has the meaning set forth in Section 4.6.1; 

“Notice of Tag Along Sale” has the meaning set forth in Section 7.2; 

“Observers” has the meaning set forth in Section 3.2; 

“Offered Shares” has the meaning set forth in Section 6.1; 

“Offering Shares” has the meaning set forth in Section 7.1; 

“Offering Shareholder” has the meaning set forth in Section 6.1; 

 “Person” means any natural person, legal person, partnership, corporation, share
corporation, limited partnership, limited liability company, limited liability partnership, unincorporated company, partnership, syndicate, consortium, trust, foundation, association, organization, private investment fund or any other type of fund,
any Government Authority or any other person or entity; 
 “Proposal” has the meaning set forth in Section 6.2.1; 

“Public Agent” means the person who exercises, even if transitory or without remuneration, by election, appointment, designation, hiring or
any other form of investiture or bond, mandate, post, employment or function in Government Authorities, whether national or foreign, as well as in legal entities controlled, directly or indirectly, by the public power of a foreign country or in
public international organizations; 
 “Related Parties” means, (i) with respect to any natural Person, any first, second or third
degree family member or relative, including those with rights under the Law as if they were family members of such degree, including spouses, former spouses or common law spouses or equivalent; (ii) with respect to any Person, directly or
indirectly, (a) any company that Controls such Person, is Controlled by such Person or is under common Control with such Person; and (b) any officer, Director, officer, partner, Shareholder, quota holder, manager, trustee or Affiliate of
such Person or of Persons referred to in items (ii) (a) and (ii) (b) on the date the concept is applied; 
 “Right of First
Offer” has the meaning set forth in Section 6.1; 
 “Right of First Offer in Collaborative Sale” has the meaning set forth in
Section 4.6; 
 “Rules” has the meaning set forth in Section 13.10; 

“Securities” means, with respect to any Person, the common shares, preferred shares and any other securities issued by such Person,
regardless of the nomenclature adopted or the existence or otherwise of voting rights, convertible into or exchangeable for shares of such Person, including warrants, preemptive rights, options to acquire, subscribe for or receive equity interests
issued by such Person. Unless the context otherwise requires, references to Securities, without indication of the respective company, refer to those issued by the Company; 

“Semantix” has the meaning set forth in the description of the Parties to this Agreement set forth above; 

“Share” or “Shares” means each, part or all, as the case may be, of the shares of the Company issued and outstanding; 

“Shareholder” has the meaning set forth in the description of the Parties to this Agreement set forth above; 

 “Shareholder in Compliance” has the meaning set forth in Section 8.3; 

“Silent Shareholder” has the meaning set forth in Section 4.6; 

“Software” has the meaning set forth in Section 9.4; 

“Software License Agreement” has the meaning set forth in Section 9.4; 

“Subscription Period” has the meaning set forth in Section 8.3(i); 

“Subsidiaries” have the meaning set forth in Section 2.4; 

“Supplementary Contributions” has the meaning set forth in Section 8.2; 

“Transfer” (which includes “Transfer” and “Transferred”) means, directly or indirectly, free of charge or
for a consideration, the transfer, sale, assignment (including, but not limited to, the assignment of the right to subscribe for shares), exchange, donation, giving in payment or in guarantee, pledge or security, fiduciary alienation in guarantee,
institution of right of use of shares or other form of voluntary disposal, conditioned or not, including transfer, sale, assignment, exchange, donation, pledge, security interest or other right of retention, or, further, in relation to any
succession (including, without limitation, mortis causa succession) legal determination, merger, incorporation, spin consolidation, capital increase or reduction, or other operations with related effects, as well as the practice of any other
form of encumbrance or voluntary disposition that has or produces a similar effect to those described above or that results in the transfer of ownership and/or of property or political rights related to such Shares or Securities; 

“Valuation Amount” has the meaning set forth in Section 4.5.3.1; 

“Valuation Report” has the meaning set forth in Section 4.5.3; 

 

	1.2.	 For the purposes of this Agreement, unless the context otherwise requires: 

(i)    any reference to Laws or legal provisions shall include all complementary legislation enacted and enacted from time to time
pursuant to such legal provision, as amended or consolidated from time to time; 
 (ii)    the Preamble and the Annexes form an integral
part of this Agreement and shall have the same force and effect as if they had been expressly provided for in the body of this Agreement, it being understood that any reference to this Agreement shall include all items of the Preamble and all
Annexes; 

 (iii)    references to this Agreement or any other document shall be construed as
references to this Agreement or such other document as amended, modified, restated, supplemented or replaced from time to time; 

(iv)    the expression “this Section”, unless followed by reference to a specific provision, shall be deemed to refer to the
entire Section (not just the Section, sub-Section, paragraph or other provision) in which the expression appears, unless otherwise expressly provided; 

(v)    the headings of Sections, sub-Sections, Annexes, parts and paragraphs are for convenience
only and do not affect the interpretation of this Agreement; 
 (vi)    the words “include” and “including” are to
be construed as being by way of illustration or emphasis only and are not to be construed as, nor to be applied as, a restriction on the generality of any preceding word; 

(vii)    the definitions in this Agreement apply equally to the singular and plural forms of defined terms and, whenever the context
requires, any pronoun will include the corresponding masculine and feminine forms; 
 (viii)    any reference in this Agreement to a
“day” or to a number of “days” (without express reference to “Business Days”) shall be construed as a reference to calendar days, not Business Days; and 

(ix)    all time limits provided for herein shall be counted as provided for in article 132 of the Civil Code, i.e., excluding the day on
which the time limit begins and including the day on which it ends. If an action is to be taken on a specific calendar day and such calendar day is not a Business Day, such action may be postponed until the next Business Day without the Company
and/or the Shareholder having to take such action being subject to any penalty. 
 ARTICLE II 

SHARES BOUND BY THE AGREEMENT AND SUBSIDIARIES 

2.1.    Bound Shares. Subject to this Agreement are all Shares and Securities convertible or exchangeable into shares of the
Company’s share capital owned by the Shareholders on the present date and that may be owned by the Shareholders in the future, including, but not limited to, by subscription, acquisition, bonus, split, grouping, conversion of credits,
conversion or exchange of Securities or securities held against the Company, capitalization of profits or other reserves, or resulting from merger, spin-off, incorporation or any other form of corporate
restructuring of the Company, as well as any and all rights arising from ownership of shares issued by the Company held by the Shareholders, including the preemptive right to subscribe for shares in a capital increase. 

 2.2.    Shares and Participation. Each Shareholder declares and warrants that
(i) they are the holder and lawful owner of their respective Shares, as indicated in the table below; (ii) the Shares owned by him/her have been fully subscribed; (iii) the Shares jointly represent the totality of the shares issued by
the Company; (iv) the Shares owned by him/her are on this date and will remain during the term of this Agreement, free and clear of any and all liens, except as provided herein; (v) it is duly authorized and has the capacity and power to enter
into this Agreement and to perform its obligations under this Agreement; (vi) this Agreement constitutes a valid and binding obligation, enforceable in its entirety; and (vii) the execution, delivery and performance of this Agreement do
not violate, conflict with or contravene any Law or agreement to which the respective Shareholder or the Company is subject. 
  

									
	 Shareholder
	  	Number of common shares	 	  	Participation	 
	 Excella
	  	 	708,500	 	  	 	50	% 
	 Semantix
	  	 	708,500	 	  	 	50	% 
	 TOTAL
	  	 	1,417,000	 	  	 	100	% 

 2.3.    Conflict between the Articles of Association and the Agreement. The Company shall be
governed (i) by this Agreement, (ii) by its Bylaws, and (iii) by applicable Law. In case of conflict between the Company’s Bylaws and this Agreement, the provisions of this Agreement shall prevail. The Shareholders will have the
Company call, as soon as possible, a General Meeting to amend the Bylaws and adapt them to the terms of this Agreement. 

2.4.    Subsidiaries. The Shareholders and the Company undertake and agree to ensure their Subsidiaries and any other companies or
undertakings controlled, directly or indirectly, by the Company (the “Subsidiaries”) to comply with any and all provisions of this Agreement applicable to them during the full term of the Agreement. The Shareholders shall take all
actions and measures necessary to ensure that the Company’s representatives attending general meetings, Shareholders’ meetings, Board of Directors’ meetings, Board of executive officers’ meetings, as well as the management of the
Subsidiaries, as applicable, observe the provisions of this Agreement and comply with the resolutions taken by the Shareholders. The Shareholders and the Company also undertake and agree to ensure the provisions of this Agreement to be reflected in
the Subsidiaries’ constitutional and corporate documents. In case of conflict between the provisions of this Agreement and those provided for in the documents of incorporation, Bylaws or articles of association of the Subsidiaries, the terms of
this Agreement shall prevail and the Shareholders and the Company shall resolve as soon as possible on an amendment to the documents of incorporation, Bylaws or articles of association of the Subsidiaries so as to eliminate said conflict. 

 ARTICLE III 

COMPANY MANAGEMENT 

3.1.    Management. The Company will be managed by a Board of Directors and by a Board of executive officers with the duties set
forth in the Law and in this Agreement. 
 3.2.    Board of Directors. As long as the Shareholders hold each fifty percent (50%)
of the Company’s total and voting share capital, the Company’s Board of Directors shall be composed of four (4) members and two (2) observers, all with a term of office of two (2) years, reelection being permitted, provided
that (i) Excella shall be entitled to appoint two (2) members (ii) Semantix shall be entitled to appoint two (2) members; and (iii) Excella and Semantix, jointly, shall have the right, but not the obligation, to appoint up to two
(2) observers (“Observers”). The Shareholders will determine by mutual agreement which of the elected Directors will be the Chairman of the Board. If at any time one of the Shareholders becomes the holder of more than fifty
percent (50%) of the Company’s total and voting share capital, then such Shareholder will be entitled to appoint three (3) members to the Board of Directors, and the other Shareholder will be entitled to appoint only one (1) member to
the Board of Directors, as long as such Shareholder holds an interest equal to or greater than forty-five percent (45%) of the Company’s total and voting share capital. For clarification purposes, if any of the Shareholders becomes a holder of
less than forty-five percent (45%) of the Company’s total and voting share capital, such Shareholder will lose the right to appoint members to the Company’s Board of Directors, pursuant to this Agreement. 

3.2.1.    The Observers may debate and present ideas, but they will not have voting rights on the Company’s Board of
Directors’ deliberations. Observers may also be asked to recuse themselves from the Board of Directors meeting, at the request of any Director, provided that this is justified. The Parties agree that all notices of meetings of the Board of
Directors as well as documents and information relating to such notices sent to members of the Board of Directors shall also be sent to Observers, if any and subject to the same confidentiality duties as those of Directors. 

3.2.2.    The Shareholders undertake to exercise their voting rights at the Company’s general meetings for the purpose
of electing the Directors nominated in accordance with the provisions of this Section 3.2. 
 3.2.3.     Each
Shareholder may determine the removal of the Board member that they have appointed and appoint a replacement within ten (10) days after the dismissal, subject to the provisions of this Agreement. In this regard, Shareholders undertake to
exercise their voting rights at the Company’s Shareholders’ meetings 

 
for the purpose of removing Directors and electing their replacement in accordance with the provisions of this Section. No Shareholder may exercise his or her voting right to remove or replace
any of the Directors nominated by another Shareholder, except in the event of proven actions or omissions by such Directors that qualify as just cause for their removal, such as acts detrimental to the Company, the Shareholders and/or incompatible
with the legal duties and responsibilities applicable to the Directors of share companies, as determined by all other members of the Board of Directors. 

3.2.4.    The right to appoint members to the Board of Directors granted to Shareholders under Section 3.2 may in no
event be exercised cumulatively with any other right provided by law that permits the election of a Director by Shareholders (acting individually or jointly) including, without limitation, the multiple voting and separate voting procedures provided
for in article 141 of the Companies Law. 
 3.2.5.    The Company’s Board of Directors may have an internal
regulation on its functioning rules, as long as the collegiate body structure is maintained. The Chairman of the Board of Directors will have formal and operational responsibility for the operation of the Board in the form of a collegiate body and
will not have the casting vote, and will prevail in his or her capacity as a Director like the other Directors. 

3.2.6.    The Board of Directors will meet, ordinarily, once a month and, extraordinarily, whenever necessary, upon written
notice by any of its members, by means of registered letter or electronic mail (with acknowledgement of receipt), at least five (5) Business Days in advance and with the presentation of the agenda of the matters to be dealt with and the
pertinent documents. The meetings of the Company’s Board of Directors may not approve matters that have not been included in the agenda presented in the call for the respective meeting, unless otherwise agreed by all of the Company’s
Directors. All reasonable costs incurred in connection with Board meetings, including travel, accommodation and other costs incurred by Directors, shall be borne by the Company, provided that they have been expressly approved in advance by the
Company, which may not deny them without good cause. 
 3.2.7.    The call provided for in Section 3.2.6 may be
waived when all members of the Board of Directors are present at the meeting. No member of the Board of Directors shall refuse without reasonable cause to attend meetings of the Board of Directors to which they have been validly given notice, and a
member who participates in the meeting via videoconference, teleconference, or any other means of communication that allows for conversation in real time shall be considered present. In this scenario, the votes of the Director who is not physically
present will be formalized in writing and sent by e-mail to the Chairman of the meeting immediately after its conclusion, it being understood that a copy of said voting instructions will be kept on file at the
Company’s headquarters. 

 3.2.8.    The meetings of the Board of Directors will be validly
convened (i) on first call with the presence of all its duly elected members; and (ii) on second call, with any number of attendees, provided that at least one Excella Director and one Semantix Director must be present. 

3.2.9.    At meetings of the Board of Directors (i) a Director may be represented by another Director, provided that
the Director present has written authorization from the absent Director, given by letter or other electronic means prior to the meeting, duly accompanied by voting instructions; and (ii) the votes cast by the Director who participates remotely,
and which are made by any recognized and verifiable electronic means under the terms of Section 3.2.7 above, will be valid. 

3.2.10.    The meeting of the Board of Directors shall be convened and chaired by the Chairman of the Board of Directors or
any other Director appointed by him. In the absence or refusal of the Chairman, the meeting of the Board of Directors will be called to order by any of the members of the Board of Directors and will be conducted by a Director chosen by a majority
vote of the Directors present. The secretary will always be chosen by the Chairman of the meeting from among the Directors present. The Chairman of the Board of Directors meeting shall refrain from recording any resolution made in disagreement with
the provisions of this Agreement, pursuant to article 118 of the Companies Law. 
 3.2.11.    In the event of an
impediment or vacancy in the position of member of the Board of Directors, the Board of Directors shall call within ten (10) days a general meeting of the Company to fill the respective position, and the appointment of the new Director will be
made, as provided in Section 3.2, by the Shareholder who had initially appointed such Director. 
 3.2.12.    The
members of the Board of Directors shall not be entitled to any remuneration for serving as a member of the Board of Directors of the Company, unless otherwise decided by a majority vote of the Shareholders. 

3.2.13.    The Board of Directors may create committees to advise it as it deems necessary or appropriate. Each committee
will be regulated accordingly and will have powers to be established in its rules of procedure. No act taken by any committee shall be binding on the Company or any Shareholder, unless such act is approved by the Board of Directors or the General
Assembly in accordance with applicable law and this Agreement. Each committee shall keep regular minutes of its meetings and disclose them to the Board of Directors upon request, and shall meet at times and places established by decision of the
committee or the Board of Directors. 

 3.2.14.    For purposes of this Section 3.2, the Parties
acknowledge and agree that, as of the date hereof, Semantix appoints Mr. LEONARDO DOS SANTOS POÇA D’ÁGUA, Brazilian, single, business manager, bearer of identity card No. RG
29.599.333-9 (SSP/SP), registered with CPF/ME under No. 298.372.378-05, resident and domiciled in the city of Barueri, state of São Paulo, at Alameda Tocai,
No. 58, Tamboré, CEP 06458-280, as one of the members of the Company’s Board of Directors, pursuant to Section 3.2.1 above, for a unified term of office of two (2) years from the
present date. After such term, the chairmanship of the Company’s Board of Directors will alternate between members appointed by Excella and then by Semantix, successively, always for a term of two (2) years. 

3.2.15.    The Parties acknowledge and agree that until the Company is considered a joint operation by the auditors
of both Shareholders such that each Shareholder may consolidate 50% of the Company’s results, in the event that the members of the Board of Directors appointed by the Shareholders cannot reach a consensus with respect to the approval of a
certain matter at a meeting of the Board of Directors, the member of the Board of Directors of the Company appointed by Semantix shall have the casting or tie-breaking vote on such matter. 

3.3.    Board of Executive Officers. The Company’s Board of Executive Officers will have a unified mandate of two
(2) years, reelection being allowed, and will be composed of at least two (2) and at most four (4) members, all residing in the country, elected and removable at any time by the Board of Directors, being one the Chief Executive
Officer (CEO), the Chief Financial Officer (CFO) and the other officers having a specific designation. 

3.3.1.    Subject to the provisions of Section 3.3.2 below, for as long as each Shareholder holds an interest of fifty
percent (50%) of the Company’s total and voting share capital, all Directors shall be elected by a majority of the members of the Board of Directors, except, however, that (i) the members of the Board of Directors appointed by Semantix
will have the right to appoint the CEO and up to one additional Director, without specific designation; (ii) the members of the Board of Directors appointed by Excella will have the right to appoint up to two Directors, without specific
designation. Should any Shareholder now hold an interest equal to or greater than forty-five percent (45%) and less than fifty percent (50%) of the Company’s total and voting share capital, the member of the Company’s Board of Directors
nominated by such Shareholder will have the right to nominate an executive officer without specific designation. Notwithstanding the provisions above, the Parties must approve the nomination made by the other Party for the Executive Board within
fifteen (15) days after such nomination and prior to the investiture of such officer in the respective position, it being understood that the non-approval will only be accepted upon justifiable grounds.

 3.3.2.    For purposes of Section 3.3.1 above, unless otherwise
agreed by the Shareholders, the members of the Company’s Board of Directors nominated by Excella and Semantix may only appoint members to the Company’s Board of Directors after Excella and Semantix, respectively, have hired a prominent
recruitment firm chosen by the Shareholders jointly to organize and coordinate a formal search process for the applicable Director, it being understood that members of the Company’s management and market professionals, with recognized
competence in the Company’s industry and a good reputation, may participate in this process. 
 3.3.3.    At any
time, (i) Excella may request the removal of the Directors appointed by the Semantix Directors pursuant to this Agreement, and/or (ii) Semantix may request the removal of the Directors appointed by the Excella Directors pursuant to this
Agreement. In both cases, a request for dismissal can only be made in the following cases: (a) in case of an unsatisfactory performance verified based on objective criteria and relevant and intermediate results determined in a certain period of
time, as may be agreed among the Shareholders, and observing the procedure set forth in Section 3.3.4 below, or (b) in case of an Event of Default. 

3.3.4.    In the event Excella or Semantix believe, at any time, that the event set forth in item (a) of
Section 3.3.3 above has occurred, Excella or Semantix, as the case may be, shall have the right to give written notice to the Board of Directors of such occurrence, justifying its understanding and demonstrating what aspects have resulted in
its request for removal, and to request the immediate removal of the applicable Director. A replacement will be appointed by the Shareholder who had made the original appointment, subject to the terms of this Agreement. 

3.3.5.    The Shareholders undertake to ensure the Directors nominated by them to vote at Board meetings in such a way as
to elect the members of the Board of Directors pursuant to Section 3.3. 
 3.3.6.    The remuneration of the
executive officers will be determined by the Board of Directors and will observe market standards for companies of the same size and in the same industry in which the Company operates. 

3.3.7.    The Executive Board will not act as a collegiate body, and each Director will be responsible for exercising the
functions required of him within his area of activity. With the exception of matters within the competence of the general meeting or Board of Directors meeting, the Company’s daily management issues and decisions will be taken individually by
the officers within their area of competence, always observing the strategic guidelines established by the Company’s Board of Directors. 

 3.3.8.    The Company will be represented, actively and passively, by
two (2) Directors jointly, being one (1) Director appointed by the Excela Directors and one (1) Director appointed by the Semantix Directors. The Company may also be represented by (i) one (1) Director together with one
(1) duly appointed attorney or (ii) two (2) duly appointed attorneys, provided that the instruments of attorney shall be granted by two (2) Directors together, one (1) Director appointed by the Excella Directors and one
(1) Director appointed by the Semantix Directors. The power of attorney granted by the Company will expressly consign the powers granted and the term of validity, which will be limited to one (1) year, with the exception of those granted
with the ad judicia provision, which may be valid for an indefinite term. 
 3.4.    Fiscal Council. The Shareholders
agree and establish that the Company will have a non-permanent fiscal council, composed of at least three (3) and at most five (5) members and an equal number of alternates. It will be established
whenever so resolved by the Company’s general assembly, under the terms of the Companies Law. 
 ARTICLE IV 

EXERCISE OF VOTING RIGHTS 

4.1.    Deliberations in General Assemblies. Each common share issued by the Company will correspond to one vote in the resolutions
of the Company’s general meetings. Except as provided in Section 4.1.2 or as otherwise provided by law, decisions at general meetings shall be taken by a simple majority vote, except that, for as long as Excella and Semantix each hold a
fifty percent (50%) interest in the Company’s total and voting share capital, decisions shall be taken by consensus between Excella and Semantix, except in the event of Financial Stress and provided that the procedure set forth in
Section 8.5 below is observed. 
 4.1.1.    The Shareholders, hereby and by this instrument, agree that the
contracting or practice of any of the acts below, by the Company or any of its Subsidiaries, will be subject to deliberation and approval in general meeting of the Company: 

(i)    change in the Company’s Bylaws including, but not limited to, those that involve the following: (a) change
of the corporate purpose; (b) alteration, creation or elimination of types, classes and rights of the Shares; (c) alteration of the powers of the general meeting or the Board of Directors; (d) alteration of the dividend distribution
policy; and (e) alteration of the term of duration of the Company; 
 (ii)    repurchase, amortization, redemption,
reverse split or split of shares or Securities issued by the Company or its Subsidiaries; 

 (iii)    any event of corporate reorganization involving the Company,
including, but not limited to, merger, consolidation, spin-off, transformation or merger of shares; 

(iv)    issuance and/or disposal of any securities convertible or exchangeable into Company Shares; 

(v)    increase in the Company’s share capital, including any Complementary Capital Contributions, as long as they are
not contemplated in the Company’s authorized capital; 
 (vi)    petition for bankruptcy or judicial or
extrajudicial reorganization of the Company or its Subsidiaries; 
 (vii)    liquidation and dissolution of the Company
or its Subsidiaries and appointment of the liquidator; 
 (viii)    distribution of dividends in a manner other than the
dividend policy set forth in this Agreement or a change in the dividend policy of the Company or its Subsidiaries; 

(ix)    participation in a group of companies under the terms of article 265 of the Companies Law; and 

(x)    conducting a Public Offering of the Company. 

4.1.2.    The Shareholders hereby agree that in the event that any Shareholder becomes the holder of an interest equal to
or greater than forty-five percent (45%) and less than fifty percent (50%) of the Company’s total and voting share capital, the approval of the matters indicated in items (i), (iii), (iv), (v),(vi),(vii) and (x) at the Company’s
general meeting will be subject to the approval of such minority Shareholder. 
 4.2.    Deliberations at Board Meetings. Except
as provided in Sections 4.2.1 and 4.2.2 below or as otherwise provided by Law, decisions of the Board of Directors shall be taken by simple majority of the Directors, it being reiterated that Observers have no voting rights. 

4.2.1.    The contracting or the practice of any of the acts indicated below by the Company or its Subsidiaries shall be
subject to approval by the Company’s Board of Directors, pursuant to this Agreement, except when contemplated in the Company’s Budget and/or Business Plan duly approved by the Directors appointed by Excella and Semantix, pursuant to this
Agreement, subject to the provisions of Section 4.2.2: 
 (i)    acquisition of Company Shares to be held in
treasury, cancellation or later disposal, as well as the cancellation and later disposal of such Shares; 

 (ii)    increase in the Company’s share capital, including any
Complementary Capital Contributions, provided that it is (a) planned for in the Company’s current Budget and Business Plan, and (b) contemplated in the Company’s authorized capital; 

(iii)    acquisition, sale, assignment, disposal, or any other form of Transfer of assets of any nature (except for equity
interests), as well as the incurring of any expenses by the Company or by its Subsidiaries, the value of which exceeds, separately or cumulatively, in the period of twelve (12) months, one million reais (R$ 1,000,000.00), except if planned for
in the Company’s Budget and Business Plan; 
 (iv)    acquisition, sale, assignment, disposal or any other form of
Transfer of ownership interest held by the Company and/or the Subsidiaries; 
 (v)    approval and/or alteration of the
Annual Budget and/or Business Plan of the Company and/or its Subsidiaries; 
 (vi)    determination of the remuneration
of the Company’s Directors, in accordance with the overall remuneration set by the General Assembly; 

(vii)    election and removal of the Company’s Directors, subject to the terms of this Agreement; 

(viii)    assumption, by the Company and/or the Subsidiaries, of any indebtedness (including loans and financing) involving
an amount equal to or higher than two hundred thousand reais (R$200,000.00), individually or in a set of transactions carried out in the period of twelve (12) months; 

(ix)    granting of any guarantees or liens of any nature by the Company and/or the Subsidiaries; 

(x)    (a) the filing, by the Company and/or its Subsidiaries, of a lawsuit or arbitration procedure, except the collection
of debts arising from the Company’s normal course of business, whose (x) value of the action is above one hundred thousand reais (R$100,000.00), or (y) involving the Company’s intellectual property rights; or (b) settlement,
by the Company and/or its Subsidiaries, in any litigation, judicial or administrative, that involves contingency of an amount equal or superior to one hundred thousand reais (R$100,000.00); 

(xi)    contracting, dismissal and replacement of the auditor of the Company and its Subsidiaries; 

(xii)    Contracting legal advice outside the normal course of the Company’s and/or its Subsidiaries’ business,
provided it is not provided for in the Budget and/or Annual Business Plan; 

 (xiii)    approving and changing the accounting practices of the Company
and its Subsidiaries, except as required by Law; 
 (xiv)    assignment or any other form of transfer, to any third
party, of any trademark, patent, copyright, know-how, software, or any other industrial property right, intellectual or intangible asset belonging to the Company or to the Subsidiaries; 

(xv)    deliberation on any contracting, termination, amendment or modification of agreements entered into by the Company
and/or its Subsidiaries that have as their object industrial and intellectual property rights or intangible assets belonging to the Company; 

(xvi)    disposal or acquisition of fixed or intangible assets, by the Company; 

(xvii)    deliberation on any individual grants, allocations and all other terms and conditions (such as type of plan,
exercise price, vesting period of any share option plan (or similar), which may be implemented by the Company and/or its Subsidiaries; 

(xviii)    creation, extinction and/or any change in the scope and members of advisory committees supporting the Board of
Directors, as well as their functions; 
 (xix)    constitution of any Lien on any movable or immovable property of the
permanent assets of the Company and/or the Subsidiaries; 
 (xx)    approval of any transaction or agreement to be
entered into between the Company and/or its Subsidiaries and (a) any of their respective Shareholders or Affiliates of such Shareholders; or (b) any Party related to the Shareholders, the Company and/or its Subsidiaries, provided that any
transaction with Related Parties shall be carried out on a commutative basis and under market conditions; 

(xxi)    execution, by the Company and/or its Subsidiaries of agreements containing
non-compete or non-solicitation provisions; and 

(xxii)    execution, by the Company and/or its Subsidiaries, of any agreement of any nature that involves payment
obligations by the Company and/or its Subsidiaries in an amount equal to or higher than five hundred thousand reais (R$ 500,000.00). 

4.2.2.    The Shareholders hereby agree that, in the event that any Shareholder becomes a holder of an interest equal to or
greater than forty-five percent (45%) and less than fifty percent (50%) of the Company’s voting share capital, the approval 

 
of the matters indicated in items (ii), (iv), (v), (vii), (viii), (ix), (x), (xiv), (xvii), (xx) and (xxii) of Section 4.2.1 at a meeting of the Company’s Board of Directors shall
be subject to the approval of the member of the Board of Directors appointed by such Minority Shareholder. 
 4.3.    Constating
Documents. The Company’s Bylaws shall reflect, to the extent applicable, the provisions of this Section 4. If for any reason (which includes, without limitation, the Company’s registration as a publicly-held company for the
purposes of article 4 of the Companies Law) the qualified quorum at general meetings of Shareholders is no longer permitted under the Law, the Shareholders agree to amend the Company’s Bylaws to provide that each of the acts mentioned in
Section 4.1.1 above will be the exclusive responsibility of the Company’s Board of Directors. 
 4.4.    Deadlock. As
of the twenty-fourth (24th) month after the date hereof (“Initial Period”) and provided that Excella and Semantix each own fifty percent (50%) of the Company’s total and voting share capital, in the event the Shareholders or
members of the Board of Directors appointed by the Shareholders fail to reach a consensus with respect to the approval of a certain matter at a general meeting or at a meeting of the Board of Directors (“Controversial Matter”), as
applicable (“Initial Corporate Event”), such Initial Corporate Event shall be suspended and the Parties shall adopt the procedure set forth in Sections 4.4.1 below and following. For clarification purposes, the Parties acknowledge
and agree that prior to the twenty-fourth (24th) month from the date hereof, there will be no Deadlock even if Excella and Semantix fail to reach a consensus regarding corporate resolutions. 

4.4.1.    Within five (5) Business Days from the Initial Corporate Event, the Chief Executive Officer or Chairman of
the Board of Directors (or a person of equivalent rank) of each of the economic groups of Semantix and Excella (a “Mediator”), shall, in good faith and acting in the best interests of the Company, commence negotiations with a view
to reaching a satisfactory resolution of the Disputed Matter, such negotiations to last for a maximum period of fifteen (15) days (“Mediator Negotiation Period”). If the Mediators are unable to reach a settlement of the
Controversial Matter within the Mediators’ Negotiation Period, such Controversial Matter will be deemed not approved and may only be presented for further deliberation(s) after six (6) months. 

4.4.2.    Should the Shareholders or the members of the Company’s Board of Directors fail to reach a consensus with
respect to any matters at three (3) consecutive Corporate Events or at five (5) Corporate Events held within a period of eighteen (18) months, it will be deemed a deadlock (“Deadlock”). 

4.5.    Collaborative Selling. Within sixty (60) days from the occurrence of the Deadlock, Excella and Semantix shall have the
right, but not the obligation, to notify 

 
the Company and the other Shareholders, in writing requesting the initiation of a Collaborative Sale process of all Shares issued by the Company and held by them (“Collaborative
Sale”) and appointing a leading Financial Advisor among Itaú, Bradesco, UBS-BB, Santander, Credit Suisse, Goldman Sachs, JP Morgan, Citi, or another Financial Advisor chosen by mutual agreement
between the Parties (“Financial Advisor”) to (i) (i) carrying out an economic and financial valuation of the Company and defining the value attributed to the Company; (ii) conducting the Collaborative Sale process; and
(iii) interacting with interested Third Parties (“Notice of Commencement of Collaborative Sale”). For the purpose of clarification, if none of the Shareholders sends the Notice of Commencement of the Collaborative Sale within
the period of sixty (60) days provided in this Section 4.5, the Parties may not initiate the process of Collaborative Sale based on the verified Deadlock, being certain that such process may only be initiated again if a new Deadlock is
verified, under the terms of Section 4.4 above. 
 4.5.1.    The Notice of Commencement of Collaborative Sale that
is sent first (i.e., on an earlier date) will prevail over the other in the event that Notices of Commencement of Collaborative Sale are sent by Excella and Semantix on separate dates for purposes of appointing the Financial Advisor responsible for
the Collaborative Sale process. In case of Notices of Commencement of Collaborative Sale sent less than ten (10) days apart, the Company shall request quotes for the Financial Advisors appointed by Excella and Semantix and shall engage the one
submitting the lowest bid. If Excella and Semantix send Notices of Commencement of Collaborative Sale, the Collaborative Sale process shall include all Shares issued by the Company. 

4.5.2.    The Company shall, within thirty (30) days from the end of the term set forth in Section 4.5 above, and
provided that it has received at least one Notice of Commencement of Collaborative Sale, hire, at its own expense, the Financial Advisor, who shall be responsible for coordinating the Collaborative Sale process, subject to the provisions of
Section 4.5.1. The Financial Advisor shall be engaged by the Company at the direction of the Shareholder who initiates the Collaborative Sale process mentioned above, subject to the provisions of Section 4.5.1 above. 

4.5.3.    Within up to sixty (60) days as of its engagement by the Company, the Financial Advisor shall conclude its
respective valuation of the Company and deliver the report to the Company (“Valuation Report”). The Valuation Amount must be calculated in accordance with business valuation methodologies usually accepted for this purpose in the
financial and capital markets, and the use of a single methodology is forbidden, such as: (i) valuation by discounted cash flow; (ii) valuation by multiples of M&A (mergers and acquisitions) of similar transactions in the Company’s
business segment in Brazil; and/or (iii) valuation by multiples of companies listed on the stock exchange in the Company’s business segment in Brazil or abroad. 

 4.5.3.1.    If the Company’s economic-financial value ascertained
by the Financial Advisor hired by the Company is a range of values, according to each of the methodologies (i.e., a range or band of values or prices), the Valuation Amount will be calculated as follows: (i) initially, it will be the arithmetic
average of the maximum and minimum values calculated by such Financial Advisor in its respective report, within each assessment methodology; and (ii) the Valuation Amount will correspond to the arithmetic average of the values calculated in
each of the methodologies, observing the provisions of the previous item (i) (“Valuation Amount”). 
 4.6.    Right
of First Offer in Collaborative Sales. As soon as the Financial Advisor engaged by the Company pursuant to Section 4.5 above issues the Valuation Report with the Valuation Amount, the Shareholder that has not initiated the Collaborative
Sale process, if any (“Silent Shareholder”), shall have the right of first offer to acquire all (and not less than all) of the Shares issued by the Company held by the Shareholder that has initiated the Collaborative Sale process
(“Collaborative Sale Shareholder” and “Right of First Offer in Collaborative Sale”), subject to the procedure set forth in this provision. For the purposes of this Section, a “Collaborative Sale
Shareholder” shall be deemed to a Shareholder who sends a Notice of Commencement of Collaborative Sale in the event that the other Shareholder does not send a Notice of Commencement of Collaborative Sale. If both Shareholders send Notices
of Commencement of Collaborative Sale pursuant to this Agreement, neither Shareholder shall have the Right of First Offer in Collaborative Sale provided for in this Section 4.6. 

4.6.1.    The Silent Shareholder may, within fifteen (15) days from the issue of the Valuation Report by the Financial
Advisor, submit its proposal to acquire all, and not less than all, of the Shares issued by the Company held by the Collaborative Sale Shareholder (“Collaborative Sale Shares” and “Notice of Offer in Collaborative
Sale”). The Notice of Offer in Collaborative Sale shall contain all terms and conditions applicable to the business intended by the Silent Shareholder, including the price to be paid for the Collaborative Sale Shares and the form of payment
(“Collaborative Sale Share Price”). In addition, in such case, the Collaborative Sale Shareholder shall make representations and warranties only with respect to title to the Collaborative Sale Shares and indemnify the Silent
Shareholder only against the dispossession of the Collaborative Sale Shares. 
 4.6.2.    If the Silent Shareholder sends
the Notice of Offer in Collaborative Sale, the Transfer of the Shares in Collaborative Sale by the Collaborative Sale Shareholder to the Silent Shareholder shall occur within thirty (30) Business Days from the receipt by the Collaborative Sale
Shareholder of the Notice of Offer in Collaborative Sale, by (i) signing the terms of transfer of the Collaborative Sale Shares; and (ii) payment of the Collaborative Sale Share Price to the current account held by the Collaborative Sale
Shareholder to be informed in writing. 

 4.6.3.    The failure of the Silent Shareholder to send the Notice of
Offer in Collaborative Sale within the period provided for in Section 4.6.1 shall constitute an irrevocable and irreversible waiver of the Right of First Offer in Collaborative Sale stipulated in this Section. 

4.6.4.    If, for any reason, the Shareholders involved in the exercise of the Right of First Offer in Collaborative Sale
pursuant to Section 4.5.3 and the following, failing to effect the Transfer of the Collaborative Sale Shares and the payment of the Collaborative Sale Share Price within the time limits provided for herein, the defaulting Shareholder shall have
its respective political and economic rights, including the receipt of dividends in respect of its Company Shares suspended until the date on which the Transfer of Collaborative Sale Shares is duly implemented. 

4.7.    Collaborative Sale Process. If the Right of First Offer in Collaborative Sale is not exercised and/or the offer is not
accepted by the Shareholders pursuant to Section 4.6 above, the Shareholders and the Company shall have a maximum period of twelve (12) months from the end of the exercise periods of the Right of First Offer in Collaborative Sale
(“Collaborative Sale Term”), in order, with the assistance of the Financial Advisor, to complete the Collaborative Sale. If the Collaborative Sale process has been initiated by only one Shareholder, then if the Third Party
identified by the Financial Advisor so requests, the Silent Shareholder must sell all of its shares on the same terms and conditions as the initiating Shareholder. 

4.7.1.    The Shareholders shall collaborate and cooperate with each other to carry out the Collaborative Sale process. The
Shareholders shall grant the Financial Advisor retained by the Company access to all materials, books and records, working documents and personnel of the Company and its Subsidiaries that may be necessary to conduct the Collaborative Sale. 

4.7.2.    Shareholder(s) who have sent Notices of Commencement of Collaborative Sale may, in their sole discretion, accept
(or not) any of the proposals received during the Collaborative Sale Term. 
 4.7.3.    Regardless of whether only one
Shareholder or both have submitted a Notice of Commencement of Collaborative Sale, after the Transfer of the Company Shares held by them under the Collaborative Sale or the Right of First Offer in Collaborative Sale, the Shareholders acknowledge and
agree that, upon the request of the other, (i) to cooperate so that the transition period occurs in the best manner for the Company; and (ii) not to practice any act that aims at damaging the Company and/or its Affiliates or their image
and reputation or that causes an undesirable or unfavorable exposure of the Company and/or its Affiliates (non-disparagement) for a period of 2 (two) years as from the date of ceasing to be a Shareholder of the Company. 

 4.7.4.    If the Shareholder(s) in a Collaborative Sale do not receive,
during the period provided for in Section 4.7 above, any proposal to acquire the Collaborative Sale Shares in an amount equal to or greater than the Valuation Value determined by the Financial Advisor, the Parties may by mutual agreement extend
the period for additional periods of one (1) year or, if they do not agree to such extension, the Collaborative Sale process shall restart, upon the Company’s contracting of a new Financial Advisor. 

4.7.5.    During the Collaborative Sale process, the Shareholders undertake to take all necessary and required measures to
keep the Company functioning fully and in operation in order to avoid any adverse impact on the conduct of the Company’s daily business and/or loss of business or value of the Company. 

ARTICLE V 
 RESTRICTIONS
ON SHARE TRANSFERS 
 5.1.    Restriction on Transfers. Any negotiations or Transfers of Shares among Shareholders or from
Shareholders to Third Parties shall fully comply with the rules, conditions and commitments set forth in this provision and in the following Sections of this Agreement. 

5.1.1.    Any Transfer of Shares in violation of this Agreement shall be deemed null and void, and therefore it shall be
prohibited (i) for the Company to register them in the register of transfer of registered shares and in the register of registered shares; and (ii) for the transferor and transferee Shareholder to exercise the corresponding voting right or
any other right guaranteed by the Shares. 
 5.1.2.    For a period of two (2) years from the date hereof and so
long as the Shareholders each hold a fifty percent (50%) interest in the total and voting share capital of the Company, the Shareholders undertake not to Transfer, directly or indirectly, any Shares held by them or rights arising out of such Shares
(“Lock-Up Period”), unless previously approved in writing by the other Shareholder. 

5.1.3.    Any Transfer by Shareholders of Shares issued by the Company must observe the terms and conditions of this
Agreement, except that Shareholders may not, under any circumstances, Transfer Shares issued by the Company to (i) Politically exposed persons; or (ii) Persons who are not of good standing. 

 5.2.    Permitted Transfers. The Shareholders agree that the restrictions on
Transfers by Shareholders set forth in this Agreement shall not apply in the event of a Transfer between (i) the Shareholders; and (ii) any of the Shareholders and their respective Affiliates, provided that such Affiliate shall adhere to
this Agreement and assume the rights and obligations set forth herein. 
 5.3.    Proof of Tax Payment. Shareholders who transfer
their Shares are required to submit to the Company, within ten (10) days from the deadline for payment of the applicable taxes, the federal revenue collection document evidencing payment of the income tax on the capital gain arising from the
sale, or a declaration of non-existence of the tax due (pursuant to Instrução Normativa RFB (RFB Normative Instruction) No. 892 dated December 18, 2008, and/or a normative act
replacing it). 
 5.4.    Lien on Shares. If the Shares held by any of the Shareholders (“Defaulting
Shareholder”) are subject to a Judicial Constraint (“Constricted Shares”), the terms and conditions set forth in article 861 of the Code of Civil Procedure will become applicable. The Shareholder shall send a notice to the
Company and to the other Shareholder about the Judicial Constraint within two (2) Business Days from its notice about the Judicial Constraint, including copies of any document related to the Judicial Constraint and without prejudice the notice
to the Company by the competent Governmental Authority. After such notice, the Holder of the Constricted Shares must also take one of the following actions (in descending order of preference):(i) replace the Constricted Shares with other assets or a
bank letter of guarantee; (ii) obtain a court order directing that notice be sent to the other Shareholder, pursuant to article 861, item II, of the Code of Civil Procedure, whereby the Constricted Shares are offered to the other Shareholder;or
(iii) use its best efforts to obtain the consent of the creditor to sell the Constricted Shares to the other Shareholder for the Purchase Price of the Constricted Shares. 

5.4.1.    If the disposal of the Constricted Shares is ordered by the competent Governmental Authority, the other
Shareholder shall have the right to acquire the Constricted Shares in accordance with the provisions of Section 5.4 above within thirty (30) days from the date on which the Shareholder holding the Constricted Shares obtains such action or
within two (2) days before the date set by the competent Governmental Authority for the auction for disposal of the Constricted Shares, whichever is shorter. If the other Shareholder decides to acquire the Constricted Shares, the price to be
paid will be fixed based on the book value of the Constricted Shares, calculated in accordance with the Company’s special balance sheet to be drawn up on the date of the event (“Constricted Share Acquisition Price”). 

5.4.2.    Notwithstanding the foregoing, a Shareholder who does not have his/her Constricted Shares may at any time seek to
have his/her Constricted Shares released by paying of the corresponding debt, with the consequent subrogation of all rights and obligations held by the original creditor of the debt (including any guarantees). 

 5.4.3.    It is the responsibility of the Holder of Constricted Shares
to assist the other Shareholder in the exercise of the rights set forth herein, and any action or omission that prevents or delays the exercise of such right shall be deemed a violation of this obligation. 

5.4.4.    Pursuant to article 861, paragraph 1, of the Code of Civil Procedure, if a Shareholder who does not own the
Constricted Shares is not interested in acquiring the Constricted Shares, the Company may acquire the Constricted Shares without reducing its share capital and using reserves (other than legal reserves) to maintain them in treasury, in this case
also complying with article 30, “b”, of the Companies Law. For the avoidance of doubt, the price applicable to the acquisition of the Constricted Shares by the Company will be the Constricted Shares Purchase Price. 

5.4.5.    A Shareholder who has not had their Shares constricted, does not acquire the Constricted Shares pursuant to this
provision, and the Company does not acquire the Constricted Shares pursuant to Section 5.4.4 above, the Recorded Shares shall be liquidated at the Constricted Share Acquisition Price by depositing the amount in cash with the court. 

ARTICLE VI 
 RIGHT OF
FIRST OFFER 
 6.1.    Right of First Offer. After the Lock-Up Period, prior to any
Transfer of all or part of the Shares held by a Shareholder to a Third Party (“Offering Shareholder”), each of the remaining Shareholders shall have the right of first offer to acquire all (and not less than all) of the Shares that
the respective Offering Shareholder wishes to Transfer (“Offered Shares” and “Right of First Offer”), subject to the procedure set forth in this provision. 

6.2.    Procedure in Right of First Offer. If any Offering Shareholder wishes to Assign part or all of its Shares to a Third Party
(“First Offer Shares”), it shall first offer them to the other Shareholder by notice (“First Offer Notice”) requesting that they submit a proposal to acquire the First Offer Shares. The First Offer Notice shall
contain all the terms and conditions applicable to the business intended by the Offering Shareholder, including: (i) the number, type and class of the First Offer Shares and the percentage that the First Offer Shares represent in relation to
the Company’s total and voting share capital; and (ii) other terms and conditions applicable to the business intended by the respective Offering Shareholder. 

 6.2.1.    The other Shareholder will have thirty (30) days from
receipt of the First Offer Notice (“First Offer Period”) to exercise the Right of First Offer by submitting a firm and irrevocable proposal for the acquisition of all the First Offer Shares pursuant to the First Offer Notice, the
acquisition of part of the First Offer Shares (“Proposal”) not being permitted. The Proposal must, respect what is stated in the First Offer Notice, as well as contain: (i) all terms and conditions applicable to the proposed
deal, except that the selling Shareholder will provide representations and warranties only in relation to the ownership of the First Offer Shares and indemnify the acquiring Shareholder only for disposal of the First Offer Shares; and (ii) the
price and other conditions, including payment, it being understood that payment must be made in cash, in Brazilian currency, without any withholding or discount. 

6.2.2.    The absence of such Proposal will imply the waiver of the Right of First Offer set forth in this provision. 

6.2.3.    If the Proposal is accepted, the acquisition of the First Offer Shares shall be concluded by the Shareholders
within thirty (30) days from the end of the thirty (30) day period set forth in Section 6.2.1 above, upon payment of the price of such First Offer Shares and transfer of the Offered Shares into the competent corporate books (i.e., the
Registered Share Transfer Book and the Share Registry Book), as provided for in the Proposal. If, for any reason, (i) the Shareholder that has submitted a Proposal fails to comply with its obligation to acquire all of the Shares pursuant to the
accepted Proposal or (ii) the Offering Shareholder accepts the Proposal and fails to transfer the First Offer Shares pursuant to the accepted Proposal; the Defaulting Shareholder shall have its respective political and economic rights,
including the receipt of dividends in respect of its Company Shares suspended until the date on which the Disposal of the First Offer Shares pursuant to the Proposal is duly implemented. 

6.2.4.    Subject to the Right of Tag Along Sale provided for in Section 7.1 below, once the Right of First Offer has
been expressly or tacitly waived, the Offering Shareholder may Dispose of the First Offer Shares to any Third Party within one (1) year from the end of the First Offer Period, provided that the other terms and conditions of this Agreement are
observed. If any Shareholder submits a Proposal but it is not accepted by the Offering Shareholder, the Offering Shareholder may Dispose of First Offer Shares to one or more Third Parties during the period of one hundred and eighty (180) days
from the end of the First Offer Period, provided that the price is higher than the price stated in the Proposal, and that all other terms and conditions 

 
of this Agreement are observed. The Offeree Shareholder shall have the right to demand from the Offering Shareholder proof of compliance with the obligations contained in this provision, and may
even access the documents signed with the Acquiring Third Party, and the Offeree Shareholder shall preserve the duty of confidentiality in relation to the documents to which it may have access. 

6.2.5.    If the Disposal of the First Offer Shares to the acquiring Third Party is not completed within the terms and
deadlines provided for in Section 6.2.4 above, or the Offering Shareholder intends to accept an offer on terms and conditions different from those stated in the First Offer Notice, the Offering Shareholder shall be obliged to repeat the Right
of First Offer procedure. 
 6.2.6.    The Transfer made in noncompliance with the provisions of this Article 6 shall be
ineffective in relation to the Offeree Shareholders and the Company, and the Company’s management shall have the legal duty to refuse to record it in the corresponding corporate books, without prejudice to the right of the Offeree Shareholders
to request the reversal of the Disposal in question, with reversion of the First Offer Shares to the Offering Shareholder. In this scenario, the First Offer Shares will have their political and economic rights, including the right to dividend
distribution, automatically suspended until they have reverted to the Offering Shareholder. 
 ARTICLE VII 

TAG ALONG SALE 

7.1.    Tag Along Sale. After the Lock-Up Period and, provided that the Right of First
Offer procedure provided for in Section 6.1, if any of the Shareholders expresses their intention to Transfer, directly or indirectly, part or all of their Shares of the Company (“Offering Shares”), in any form or on any basis,
the other Shareholders shall be entitled to Transfer their Shares in the same proportion of the Offering Shares in relation to the Offering Shareholder’s ownership interest in the Company (for example, if the Offering Shareholder is to Transfer
half of its Shares, each of the offeree Shareholders may Transfer half of their respective Shares), pursuant to the offer to acquire the Shares and together with the Offering Shares, subject to the procedure below (“Tag Along Sale
Right”). 
 7.2.    Procedure in Tag Along Sale Rights. If any of the Shareholders wish to exercise the Tag Along Sale
Right pursuant to this Article 7, the Shareholder shall, within the First Offer Period, send a written notice to the Offering Shareholder, with copy to the other Shareholders, indicating that it wishes to exercise the Tag Along Sale Right
(“Notice of Tag Along Sale”). Failure to send such notification on time for the First Offer shall be deemed a waiver of the exercise of Tag Along Sale Right. 

 7.2.1.    In the event of waiver or
non-exercise, by the Shareholders, of the Tag Along Sale Right or the Right of First Offer, the Offering Shareholder may sell all the Offered Shares, provided that such sale is carried out as provided for in
this Agreement, including in relation to the deadlines provided for in Section 6.2.4 above. 
 7.2.2.    Once the
Tag Along Sale Right is exercised, the Transfer of the Offered Shares, as well as of the Shares owned by the Shareholder who has exercised the Tag Along Sale Right, shall be carried out within the same period provided for in Section 6.2.4
above. 
 7.2.3.    If the Disposal of the Offering Shares to the acquiring Third Party is not completed within the terms
and deadlines provided for in Section 6.2.4 above, or the Offering Shareholder intends to accept an offer on terms and conditions different from those stated in the First Offer Notice, the Offering Shareholder shall be obliged to repeat the
Right of First Offer procedure and the provisions of Sections 6.2.5 and 6.2.6 above shall apply. 
 7.2.4.    The
Shareholder who elects to exercise the Tag Along Sale Right will bear only his or her costs arising from such exercise. In addition, in such event, the only representations and warranties that such Shareholder shall be obligated to make to the
purchaser of the Shares shall relate to the lawful ownership thereof, to the fact that the Shares are free and clear of any liens, and to the fact that the Shareholder is empowered to make such representations and warranties and to sign and execute
the relevant agreement, and any indemnification by such Shareholder shall be restricted solely to the untruthfulness of such representations and warranties. 

ARTICLE VIII 
 CAPITAL
INCREASES AND BUDGET 
 8.1.    Initial capital increase. At the present date, Excella carried out a capital increase of the
Company in the amount of ten million, thirty-six thousand, eight hundred and sixty-nine reais and twenty-seven cents (R$10,036,869.27), of which (i) the amount corresponding to fifty percent (50%) of such
amount was duly paid up on the present date, and (ii) the remaining amount corresponding to fifty percent (50%) of such amount will be paid up within up to12 (twelve) months as of the date hereof, subject to the terms and conditions of the
subscription bulletin duly signed by Excella (“Initial Subscription”), by means of the subscription of new Shares, so that each Shareholder becomes a holder of the shares mentioned in Section 2.2 above. Additionally, at the
present date, the Shareholders approved the Company’s first Business Plan for the initial period of twenty-four (24) months from the date hereof, as well as the Company’s budget for the year 2021 and 2022, as set forth in Exhibit
8.1 

 
hereto (“Initial Budget”, “Initial Business Plan” and “First Period”, respectively). The Parties acknowledge and agree that the Initial
Subscription corresponds to the amount foreseen in the Initial Budget and the Initial Business Plan for the Company’s activities during the First Period. 

8.2.    Supplementary Contributions. After the Initial Capital Increase, during the Lock-Up
Period, the Shareholders undertake to make additional capital contributions, in the proportion of fifty percent (50%) for each Shareholder, provided that (i) they are necessary to comply with the Budget and Business Plan approved by the
Company’s Board of Directors, as provided in Section 4.2.1 (ii) above; and/or (ii) they are approved by bydssdkfj by common agreement among the Shareholders (“Supplementary Contributions”). 

8.2.1.    The Supplementary Contributions will be formalized by means of the subscription of common shares, registered and
with no par value, to be issued by the Company in one or more capital increase events of the Company during the fiscal year of the Budget and Business Plan (“Supplementary Shares”) within thirty (30) days of the confirmation of
the need for Supplementary Contributions by the Executive Board to all Shareholders. 
 8.2.2.    The Shareholders hereby
agree that the issue price of the Supplementary Shares shall, for the purposes of article 170, paragraph 1, item I of the Companies Law, always be based on a Valuation Report prepared by an independent audit firm to be retained by the Company
(“Issue Price of Supplementary Shares”). 
 8.3.    Subscription and payment of Supplementary Contributions.
During the Lock-Up Period, if a Shareholder refuses to (i) subscribe for Additional Shares as required to comply with the Budget and Business Plan approved pursuant to this Agreement or (ii) pay in
the Supplementary Shares subscribed by it in the Supplementary Contributions, the Shareholder that has defaulted in their obligations to pay the Issue Price of Supplementary Shares (“Delaying Shareholder”) shall have its respective
political and economic rights, including the receipt of dividends with respect to its Company Shares suspended until (i) paying the Issue Price of Supplementary Shares; (ii) the assumption of the Supplementary Shares not paid in occurs; or
(iii) the cancellation of Supplementary Shares occurs. In addition, a Shareholder who is not in default (“Shareholder in Compliance”) will have the right, but not the obligation, to 

	(i)	 subscribe for and pay up the Supplementary Shares that should have been subscribed for and paid up by the
Delaying Shareholder in the capital increase and acquire from the Delaying Shareholder for the total price of one real (R$1.00) Shares issued by the Company held by the Delaying Shareholder equivalent to 1.5 (one point five) times the number of
Supplementary Shares that should have been subscribed for and paid up by the Delaying Shareholder in said capital increase. The Shareholder in Compliance that wishes to exercise the right to subscribe and/or pay in the Supplementary Shares not paid
in by the Delaying Shareholder must do so within sixty (60) days from the end of the subscription and/or payment term, as the case may be (“Subscription Period”). After this period, if there remain Supplementary Shares that
have not been paid in, they will be subject to cancellation, as provided in Section 8.3.3 below; or 

  

	(ii)	 by canceling the Supplementary Shares as provided for in Section 8.3.3 below and, within thirty
(30) days from such cancellation, acquiring from the Delaying Shareholder as many of the Company’s Shares as are necessary for the Shareholder in Compliance to become the holder of an interest of more than fifty percent (50%) of the
Company’s total and voting share capital, for the total price of one real (R$1.00). 

8.3.1.    The Transfer of the Supplementary Shares from the Delaying Shareholder to the Shareholder in Compliance shall
take place within five (5) Business Days from the exercise by the Shareholder in Compliance of any of the measures set forth in Section 8.3 above, by signing the terms for transfer of such Supplementary Shares in the Company’s share
transfer register book and annotation of the applicable Shares in the name of the Shareholder in Compliance; and (ii) payment, by the Shareholder in Compliance, of the applicable amounts, as provided for in Section 8.3 above. 

8.3.2.    In case of delay in the payment of any part of the Issue Price of the Supplementary Shares, the amount due and
not paid on time shall be increased by default interest of one percent (1%) per month calculated pro rata die from the due date until the date of its effective payment, plus a fine of fifteen percent (15%), calculated on a non-cumulative basis, on the amount due and not paid. 
 8.3.3.    After the
Subscription Period has elapsed, and as long as the Delaying Shareholder’s default has not been cured, the Company’s Directors or the Shareholder in Compliance, pursuant to the Companies Law and the Company’s Bylaws, may call a
general meeting of Shareholders to resolve on the cancellation of Supplementary Shares in a number equal to the portion of the Issue Price of Supplementary Shares not paid in by the Delaying Shareholder, with the corresponding

 
reduction of the Company’s share capital. In such scenario, upon cancellation of the Supplementary Shares, the Shareholder in Compliance may take the actions set forth in
Section 8.3(ii) above. 
 8.3.4.    If the Shareholder in Compliance adopts any of the measures provided in
Section 8.3(i) or (ii) above, the Delaying Shareholder will become the holder of a minority interest in the Company and will lose all rights provided for in this Agreement (including the right to appoint members to the Company’s Board
of Directors), entitled only to the rights provided for in the Companies Law and in the Company’s Bylaws. For clarification purposes, in addition to the foregoing, upon exercise by a Shareholder in Compliance of any of the remedies set forth in
Section 8.3(i) or (ii) above, all decisions at general meetings and meetings of the Board of Directors shall continue to be taken by simple majority vote. 

8.3.5.    The Shareholders hereby expressly agree, irrevocably and irreversibly, with the mechanism set forth in this
Section 8.3. 
 8.3.6.    Notwithstanding the provisions of this Section 8.3, the officers of the Company may,
adopt (i) any of the measures provided for in article 107 of the Companies Law to obtain from the Defaulting Shareholder the full payment of the portion of the Issue Price of Supplementary Shares in default; and/or (ii) demand specific
performance of the defaulted obligation, by means of a jurisdictional or arbitral provision to supply or replace the measure practiced, refused or omitted, under the terms of the arbitration provision in this Agreement and of the provisions of
articles 815 and following, of the Code of Civil Procedure. 
 8.4.    Preemptive Right. For purposes of the Company’s
capital increases or issuance of Securities by the Company after the Lock-Up Period, the Company will send each Shareholder a written notice (“Notice of Issuance”) at least thirty
(30) days prior to the date scheduled for such issuance. The Notice of Issuance shall contain (i) the intended date of issuance of the Securities, (ii) the issue price per Security, (iii) the proposed number of Securities to be
issued, and (iv) any other relevant terms and conditions of such issuance, including the results of the valuation report of the audit firm engaged by the Company, pursuant to Section 8.4. in this case, each Shareholder shall have
preemptive rights to subscribe for the Securities to be issued in proportion to the number of Shares held by such Shareholder in relation to the total number of Shares held by all Shareholders. Except as otherwise provided in this provision, the
procedures and term for the issue, allocation and payment in full of such Securities shall be those established in the applicable legislation. 

 8.4.1.    After the Lock-Up
Period, if any Shareholder does not exercise or partially exercises their preemptive right to subscribe the Securities pursuant to Section 8.4 above, the other Shareholder, provided that they expressly manifested their interest in this regard,
shall have the right to subscribe the remaining portion in order to obtain the total amount of funds required, proportionally to the respective interest in the Company’s capital, excluding for determination of this proportion the shares held by
the Shareholder who did not exercise their preemptive right or did not expressly manifest their interest in subscribing the remaining portion. 

8.5.    Financial Stress. If, at any time, the Company is in a situation of Financial Stress and it is necessary to capitalize
and/or finance the Company and/or its Subsidiaries with funds additional to those generated by the development of its activities (“Additional Funds”), the Board of Directors shall make its best efforts to obtain such resources with
financial institutions, it is certain that the Shareholders hereby acknowledge and agree that they shall jointly provide guarantees to obtain such funding, either in the form of personal or real guarantees, including, if necessary, the establishment
of guarantees on the shares issued by the Company that they own. 
 8.5.1.    If the Additional Funds cannot be obtained
by means of contracting loans with Third Parties within two (2) months after the identification of a situation of Financial Stress, due to any legal or contractual restrictions or impediments, or if contracting loans with Third Parties is not,
at the Company’s management’s discretion, economically reasonable for the interests of the Company and Subsidiaries, including if the estimated terms and costs for contracting and disbursing such loans with Third Parties do not meet timely
and satisfactorily the needs for Additional Funds, the Company’s management may (i) make capital calls to the Shareholders or (ii) request that the Shareholders make loans to the Company. 

8.5.2.    If any of the Shareholders does not approve the Company’s share capital increase as a result of Financial
Stress pursuant to Section 8.5.1 above, the other Shareholder shall have the right, but not the obligation, to provide loans to the Company in the amount necessary to remedy the Financial Stress with a payment term of up to six (6) months.
If such loan is not repaid by the Company on the due date, the creditor Shareholder will have the right, but not the obligation, to capitalize such loan by subscribing for new Shares issued by the Company. In this scenario, the Shareholders
undertake to take all necessary measures to effect the financial contribution by the Shareholder, including holding a general meeting to approve the issuance of the Shares and/or Securities. 

 The issue price per Share and/or Security to be issued by the Company in favor of the
Shareholder shall be calculated based on the issue price of the last issue of the Company’s shares. 
 ARTICLE IX 

OBLIGATIONS 

9.1.    Access to Information. During the term of this Agreement, Shareholders will be guaranteed the right to request, in a
justifiable and reasonable manner, and without compromising the Company’s business and activities, documents and information from the Company. 

9.2.    Non-compete. The Shareholders undertake, while they are Shareholders of the Company
and for an additional period of two (2) years from the date they cease to be Shareholders of the Company (“Non-Compete Period”), to abstain, individually or jointly with other Person(s),
directly or indirectly, by themselves or by their respective Affiliates, from competing with the activities of the Company and its Subsidiaries and, in particular, from performing any of the Exclusive Activities of the Company (“Non-Compete Obligation”). For clarification purposes, during the Non-Compete Period, the Company shall be the exclusive vehicle for the development of the Exclusive
Activities of the Company by the Shareholders, unless the Shareholders expressly agree otherwise in writing. 

9.2.1.    The Non-Compete Obligation set forth in this Section 9.2 includes,
without limitation, the prohibition to perform any of the following acts: (i) make any loan to and/or participate, directly or indirectly, with a Competitor; and/or 

(ii)    (ii) holding of any management position, including, but not limited to, Director, officer, Director,
representative, fiscal council member, or member of any committee of a Competitor; and/or (iii) acquiring, holding, or in any way becoming the owner of any equity interest or otherwise in a Competitor. 

9.3.    Non-soliciting and Non-contracting. The
Shareholders undertake, for the Non-Compete Period and provided that the other Shareholder remains a partner of the Company, to refrain from directly or through an intermediary Person, (i) persuading or
trying to attract any Person employed and/or contracted by the Company and/or its Subsidiaries to leave their employment or terminate their contractual relationship with the Company and/or its Subsidiaries, for any reason or purpose; and
(ii) contract, directly or indirectly, as employee or service provider or supplier of goods (a) any Person that is employed or contracted by the Company and/or its Subsidiaries on this date or during the
Non-Compete Period; (b) any Person that provides services or supplies goods, to the Company and/or its Subsidiaries, except if expressly authorized by the Remaining Shareholder. 

 9.4.    Open Galaxy Software. The Shareholders acknowledge and agree that the
Company will use the latest and most complete version of the Open Galaxy platform, exclusively owned by Semantix (“Software”), by means of a license granted by Semantix to the Company, on the date hereof, upon execution of a
Software licensing agreement (“Software License Agreement”) between the Parties. 
 9.4.1.    If, for
any reason (i) Excella acquires the interest held by Semantix in the Company; and/or (ii) Semantix’ interest is acquired by Third Parties (a) in the Collaborative Sale process, provided for in Section 4.5 above;
(b) after the exercise of the Right of First Offer, provided for in Section 6.1 above; or (c) upon exercise of the Tag Along Sale Right, provided for in Section 7.1; and/or (iii) a Company Qualifying Offer occurs; and/or
(iv) the percentages of the Company’s share capital held by each Shareholder become different from fifty percent (50%), the Software License Agreement shall remain in force for an additional term of two (2) years, unless Excella
expressly waives this right. In this case, Semantix shall calculate the arithmetic average of the Software license values contracted by Semantix with customers who have usage equivalent to that of the Company, excluding, for these purposes, the
Company’s own usage (“License Value”). 
 9.4.2.    Within thirty (30) days of the occurrence
of any of the acts listed in Section 9.4.1 above, Semantix shall notify Excella indicating the License Value. Within thirty (30) days of Excella’s receipt of the License Value, Excella shall notify Semantix in writing whether it
accepts or disagrees with the License Value. 
 9.4.3.    If Excella agrees to the License Value, the License Value
becomes final and binding and can no longer be questioned or disputed. 
 9.4.4.    If Excella notifies Semantix in
writing that it disagrees with the License Value within the period provided in Section 9.4.2 above, the Company shall engage one of the Independent Auditors to perform a recalculation of the License Value (“New License Value”).
Semantix and the Company undertake to submit to the auditors any and all information and documents necessary for the determination of the New License Value, and the Independent Auditors undertake not to pass on such information and documents to
Excella. The Independent Auditor selected shall, within thirty (30) days after engagement, submit to Semantix and Excella a written report presenting the New License Value, and such report shall not disclose Semantix’s Confidential
Information. 

 9.4.4.1.    For purposes of this Section, “Independent
Auditor” means a prominent independent auditing firm to be selected from among the Shareholders or, if they cannot agree, the following Independent Auditors, in the following order, subject to the end of this Section: (i) PwC;
(ii)    Deloitte; (iii) KPMG; or (iv) E&Y (or any successor firm). Any company listed in this Section that provides services to any of the Shareholders, or has done so in the last two (2) years, may not act as
Independent Auditor. 
 9.4.5.    The New License Value presented by the applicable Independent Auditor shall be final,
binding, and may not be rejected by the Parties. The Parties agree that the reasonable fees and expenses of the Independent Auditor contracted shall be borne by Semantix and Excella (as applicable) equally, and the percentage of the disputed value
(difference between the License Value and the New License Value) shall be discounted or increased. For purposes of clarity, if, for example, Semantix indicates a License Value of ten (10) and the Independent Audit determines that the New
License Value equals eight (8) (twenty percent (20%) difference), Semantix will bear seventy percent (70%) (fifty percent (50%) plus twenty percent (20%)) of the Independent Audit expenses and fees and Excella, in turn, will be responsible for
thirty percent (30%) of the Independent Audit expenses and fees. 
 9.4.6.    Subject to the terms and conditions of the
Software License Agreement, the Parties agree and represent that the Software and any enhancements to the Software made exclusively by Semantix are owned solely and exclusively by Semantix, and that (i) such enhancements may result in an
increase in the License Value provided for in the Software License Agreement, if agreed upon by the parties, and (ii) the licensing obligation under this Agreement in no way transfers any intellectual property rights related to the Software to
the Company and/or Excella. 
 9.5.    Know-How. Excella possesses commercial, financial,
economic and/or technical-scientific knowledge, techniques, methodologies, management systems, and processes relating to the diagnosis and implementation of value-based healthcare and population health management consulting services that are not
publicly known and are not registered by Excella as proprietary (“Know-How”). The Shareholders acknowledge and agree that the Company will utilize this
Know-How owned exclusively by Excella upon the execution, between the Parties of a consulting agreement (“Consulting Agreement”). 

9.5.1.    If for any reason (i) Semantix acquires the interest held in the Company by Excella; and/or
(ii) Excella’s interest in the Company is acquired by a Third Party (a) in the Collaborative Sale process, provided for in Section 4.5 above; (b) upon 

 
exercise of the Right of First Offer, provided for in Section 6.1 above; or (c) upon exercise of the Tag Along Sale Right, provided for in Section 7.1; and/or 

(iii)    if a Company Qualifying Offering occurs; and/or (iv) the percentages of the Company’s share capital held
by each Shareholder become different from fifty percent (50%), the Consulting Agreement shall remain in effect for an additional term of two (2) years, unless Semantix expressly waives this right. 

9.5.2.    The Parties declare and agree that, pursuant to the Consulting Agreement, Excella will be paid a fee related to
the volume of business done by the Company as a result of the consulting services provided. 
 9.6.    Dividend Distribution
Policy. Five percent (5%) of the Company’s realized net profit calculated each year will be applied to the creation of a legal reserve, up to the limit of twenty percent (20%) of the share capital, as provided for in the Companies Law. Of
the remainder, (i) twenty-five percent (25%) will be allocated to the payment of mandatory dividends to the Shareholders; and (ii) the remainder will be allocated to statutory reserves, unless otherwise resolved by consensus of the
Shareholders in a Shareholders’ Meeting, and the constitution of other reserves, capitalization, new investments, or any other purpose that is in the Company’s interest, may be distributed as dividends. 

9.6.1.    Subject to the provisions of Section 9.6 above, the Company may also draw up semi-annual balance sheets, and
on the basis of these it may declare interim dividends, and also the crediting of interest on own capital, always in proportion to the Shareholders’ interest in the Company’s share capital. 

9.7.    Political Parties. The Shareholders declare and warrant that they have never been involved and undertake not to be
involved, directly or indirectly, as well as not to involve the Company, its Subsidiaries and its invested companies, in political campaigns, whether in the form of party affiliation, sponsorship, incentive, donation, financing or any other type of
financial disbursement to political parties or political entities, including not making bribes, illegal payments or facilitation payments. 

9.8.    Prohibited Payments. The Shareholders undertake not to perform and to ensure the Company and its Subsidiaries do not
perform, directly or indirectly, by any of its representatives, managers, Directors and Affiliates, in accordance with the law, any offers, promises, authorizations of payment in cash and/or delivery of any valuable goods (gifts and entertainment)
or other advantage or economic benefit, during the term of this Agreement, to any natural or legal person, public or private, national or foreign, with the aim of influencing any decision in order to benefit its business. 

 9.9.    Violation of Anti-Corruption Laws. Each Party undertakes (i) not to
engage in and undertakes to ensure the management of the Company and its Subsidiaries not to engage, directly or indirectly, by any of its representatives, managers, Directors and Affiliates, in accordance with the law, in any activity or practice
that constitutes a violation of the terms of the Anti-Corruption Laws; (ii) not to solicit any action, omission or services from a person that violates any of the Anti-Corruption Laws; and (iii) not to receive or attempt to receive or
assist any person to retain benefits or profits resulting from a crime or an Act of Corruption. For purposes of this Agreement, “Anti-Corruption Laws” shall mean any anti-bribery, anti-corruption or anti-money laundering laws, rules
and regulations applicable in Brazil, including, without limitation, Decree Law No. 2.848/1940, Law No. 8.429/1992, Law No. 8.666/1993, Law No. 9.613/1998, Law No. 12.846/2013, Law No. 12.850/2013, as amended from time
to time as well as the “U.S.Foreign Corrupt Practices Act of 1977”, as amended, and the “OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions of
December 17, 1997” and any other law or anti-corruption regulation or any other applicable law with similar purpose and scope that inhibits or prohibits corruption or the practice of any offer, payment, promise to pay or
authorization of payment of any amount or other form of property, gift, promise to give, or authorization of the giving of anything of value to any government official or any political party or political party member or candidate for public office.

 9.10.    Personal Reputation. The Company and its Subsidiaries undertake not to use any agent, representative, service
provider or sales consultant unless such agent, representative, service provider or sales consultant has been audited in a reasonable manner to ensure that they are reputable in business and that they conduct their business ethically and in
compliance with Anti-Corruption Laws. 
 9.11.    Disreputable Shareholder. For the benefit of the Company and the perpetuity of
its activities and business, as well as its reputation, in the occurrence of an event of disrepute with respect to a Shareholder, a meeting of the Board of Directors may be convened to deliberate the event. At this meeting of the Board of Directors,
the Directors shall decide on the recommendation to the Company to fully purchase the equity interest of this Shareholder, such process being conducted the Parties agree that, in relation to the event described in this provision, the Shareholder in
question will be invited to provide clarification at the meeting of the Board of Directors that will decide on the matter. For purposes of the present provision, “Event of Disrepute” means (i) the proven involvement of any
Shareholder and/or Related Parties with Acts of Corruption; (ii) the criminal or administrative indictment against any Shareholder and/or Related Parties to investigate an eventual Act of Corruption; and/or 

 

	(iii)	 money laundering. 

 9.12.    Integrity Program Implementation. The Shareholders undertake to approve
the development of a Company Integrity Program containing adequate and effective guidelines, policies, procedures and controls to ensure that neither the Company, the Subsidiaries nor any other person acting on their behalf (including any employee
or agent or former employee or agent of the Company or any of its Affiliates): (i) use or commit to use any funds for contributions, gifts, entertainment or other expenses related to political activities; (ii) corruptly promises, authorizes,
ratifies or offers to make any prohibited contribution to a Governmental Authority or to a recipient prohibited by the Anti-Corruption Laws, or takes any act to make any grant or payment or transfer of any property of value, directly or
indirectly,to any Governmental Authority or to an intermediary for payment to any Governmental Authority, Public Agent or to an intermediary for payment to any such person prohibited by the Anti-Corruption Laws, or to any political party, for the
purpose of obtaining or maintaining business or securing any undue advantage for the Company and/or the Affiliates; or (iii) delivers, undertakes to deliver or offers, corruptly, any donation or consideration to an agent to induce or reward the
practice or omission or for having practiced or failed to practice any act related to its main business or affairs or to demonstrate or fail to demonstrate to be favorable or unfavorable regarding its main business or (iv) practices or
undertakes to practice any act that would result in a violation to any Anti-Corruption Laws. The Company shall appoint a person among its employees, with knowledge and experience in the area, to be responsible for the development and implementation
of the referred Integrity Program. This employee will be the Shareholders’ focal point of contact and must report on the progress of the implementation of the Integrity Program in the Company to the Shareholders and respond timely to requests
for reports and questionnaires related to the topic. 
 9.12.1.    Each Party shall promptly notify the other Party and
the Company in writing of any suspected or actual violation of the provisions of the Anti-Corruption Laws and, further, involvement in bribery or corrupt practices, as well as failure to comply with any obligation under this Section. 

 9.13.    Socio-Environmental Policy. The Company and the Subsidiaries undertake
(i) to implement a social and environmental monitoring system, preparing and complying with a policy of good social and environmental practices, based on the performance standards on social and environmental sustainability suggested by the
International Finance Corporation (IFC) (“E&S Policy”); (ii) to appoint a person among its employees to be responsible for the development and implementation of the E&S Policy (“E&S Officer”); and
(iii) to implement an action plan in order to mitigate any environmental and social risks identified in the operations of the Company and its Affiliates (“E&S Action Plan”), as well as to report the progress of the
implementation of the E&S Action Plan to the Shareholders. 
 ARTICLE X 

VALIDITY 
 10. 

10.1.    Termination. This Agreement shall become effective as of this date and shall remain in force for a period of twenty
(20) years as of the date it is signed, and may be automatically renewed for periods of twenty (20) years if no Shareholder notifies the other Shareholders of their intention not to renew it at least thirty (30) days prior to its
expiration. 
 10.1.1.    Termination of this Agreement for any reason shall not affect the rights and obligations of
Shareholders prior to the date of termination of the Agreement or arising out of acts or events prior to termination of the Agreement. 

ARTICLE XI 
 SPECIFIC
PERFORMANCE, EXTRAJUDICIAL EXECUTION TITLE AND INDEMNIFICATION 
 11.1.    Specific Performance. In the event of default on
the obligations assumed herein, the aggrieved Shareholder shall have the right, regardless of any compensation for losses to which they may be entitled, to the specific enforcement of the defaulted obligations, by means of a jurisdictional or
arbitral provision of the provision or substitution of the practiced measure, refused or omitted, under the terms of the arbitration provision provided for in this Agreement and of the provisions in articles 815 and following of the Brazilian Code
of Civil Procedure. Such remedy shall not be deemed a waiver of the arbitration provision in this Agreement, but only an additional remedy for the Shareholders, when possible under the terms of the applicable legislation. 

11.2.    Extrajudicially Enforceable Instrument. This Agreement constitutes an extrajudicially enforceable instrument, under the
terms of article 784, item III, of the Code of Civil Procedure. 

 11.3.    Indemnity. Without prejudice to the provisions of Section 11.1
above, each of the Shareholders undertakes to indemnify, pay or reimburse the other Shareholder, its officers, Directors, agents, employees, representatives, attorneys and successors, for any and all actions, liabilities, judgments, demands,
damages, penalties, losses, costs, expenses (including reasonable attorneys’ fees and expenses) and taxes, of any nature whatsoever incurred by any of them as a result of a default by the Defaulting Shareholder under this Agreement (including
to the extent that the commission of such acts results in the violation or noncompliance with Law), except to the extent that the indemnifiable liability results from the proven fault or willful misconduct of the indemnifiable person. 

ARTICLE XII 
 ARCHIVING
AND SUCCESSION 
 12.1.    Filing. This Agreement shall be filed at the registered office of the Company on this date and the
registered share register book shall contain the following statement: “As ações detidas por [Nome do Acionista]estão sujeitas ao Acordo de Acionistas celebradoem 26 de maio de 2021, cuja cópiaestáarquivada
na sede daCompanhia”. (The shares held by [Name of Shareholder] are subject to the Shareholders’ Agreement executed on May 26, 2021, a copy of which is on file at the Company’s headquarters.) This Agreement
shall also be filed at the headquarters of the Subsidiaries. 
 ARTICLE XIII 

GENERAL PROVISIONS 

13.1.    Notifications. All notices, agreements, waivers and other notices shall be in writing and shall be delivered by registered
mail, courier, hand delivery or e-mail (in which case confirmation of receipt must be provided), as the case may be, to the addresses described below (or such other address as may be indicated by a Shareholder
or the Company to the other parties to this Agreement): 
  

	a.	 If for Excella, send to: 

Address: Avenida Brigadeiro Faria Lima, No. 3.144, 3rd floor, sala 

329, Jardim Paulistano, CEP 01451-000, São Paulo - SP 

Attention: Fabio Andre Nanci Izidro Gonçalves / Mr. Rogerio Melzi 

E-mail: fabio.goncalves@hospitalcare.com.br / rogerio.melzi@hospitalcare.com 

 With copy to (for the purposes of this Agreement, the sending of the copy will not be deemed and
will not have effect of notice, communication or notification to Excella): 
 Machado, Meyer, Sendacz e Opice Advogados 

Address: Avenida Brigadeiro Faria Lima, No. 3144, 11th 

floor, Jardim Paulistano, CEP 01451-000, São Paulo - SP 

Attention: Mauro Cesar Leschziner // Diana Pacifico Henne 
 E-mails: mau@machadomeyer.com.br // dhenne@machadomeyer.com.br 
  

	b.	 If for Semantix or for the Company, send to: Address: 

Avenida Eusébio Matoso, No. 1375, 10th floor 

Pinheiros, CEP 05423-180, São Paulo - SP 

Attention: Leonardo dos Santos Poça D’Água 
 E-mails:    lsantos@semantix.com.br 
 With copy to (for the purposes of this Agreement, the
sending of the copy will not be deemed and will not have effect of notice, communication or notification to Semantix): 
 Bronstein Zilberberg Advogados

 Address: Av. Presidente Juscelino Kubitschek, 360, 16th 

floor Vila Nova Conceição, CEP 04543-000, São Paulo - SP 

Attention: Sergio Bronstein 

E-mail: sergio.bronstein@bzcp.com.br 

13.1.1.    For the purposes of paragraph 10, article 118 of the thee Companies Law, hereby this Agreement, Excella
appoints Messrs. João Marcos Bezerra, Brazilian, married, business manager, bearer of identity card No. RG 34.969.571- 4 (SSP/SP), registered with CPF/ME under
No. 338.811.668-74, resident and domiciled in the city of São Paulo, state of São Paulo, with the business address at Rua Bernardino de Campos, No. 230, 1st, 5th, 6th and 7th floors,
Centro, CEP 13010-151, in the city of Campinas, state of São Paulo; and Fabio Andre Nanci Izidro Gonçalves, Brazilian, married, physician, bearer of identity card No. RG 103.747.22-6 (IFP), registered with CPF/ME under No. 041.125.297-67, resident and domiciled in the city of São Paulo, state of São Paulo, with the business
address at Avenida Brigadeiro Faria Lima, No. 3144, 3rd floor, sala 329, Jardim Paulistano, CEP 01451-000, and Semantix appoints Mr. Leonardo Dos Santos Poça D’Água,
Brazilian, single, business manager, bearer of identity card No. RG 29.599.333-9 (SSP/SP), registered with CPF/ME under No. 298.372.378-05, resident and domiciled
in the city of Barueri, state of São Paulo, at Alameda Tocai, No. 58, Tamboré, CEP 06458-280, as representatives to communicate with the Company and to provide or receive information when
requested. 

 13.2.    Expenses. Each Shareholder must bear its respective expenses, direct or
indirect, arising from the negotiation and preparation of this Agreement, as well as from the fulfillment of the operations considered herein. 

13.3.    Irrevocability and Irreversibility. This Agreement is entered into by the Shareholders and by the Company on an
irrevocable and irreversible basis. 
 13.4.    Amendments and Waivers. This Agreement may only be amended, superseded,
cancelled, renewed or extended, and there may only be a waiver of the terms of this Agreement, by means of an instrument in writing signed by all Shareholders or, in case of a waiver, by the Shareholder who is waiving the relevant right. No delay or
failure by any Shareholder to exercise any right under this Agreement shall operate as a waiver of such right or novation, nor shall it preclude the later or subsequent exercise thereof. 

13.5.    Assignment. This Agreement may not be assigned by any of the Shareholders without the prior written consent of the other
Shareholders, provided that Excella may, at any time and in its sole discretion, assign the Agreement to one of its respective Affiliates. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors
and assigns as may be authorized. 
 13.6.    Entire Agreement. This Agreement constitutes the entire agreement of the
Shareholders, superseding all prior agreements and understandings between the parties, oral or written, with respect to such subject matter. 

13.7.    Confidentiality. The Shareholders shall not make any disclosure or announcement with respect to this Agreement
(“Confidential Information”) without the prior written consent of the other Shareholders, except to the extent necessary to comply with an applicable law, court order or decision issued by a competent Governmental Authority and
provided that such court order or decision issued by a competent Governmental Authority does not also expressly prevent communication to the other Shareholders, and such disclosure shall reveal only that part of the Confidential Information that it
has been legally or judicially obliged to reveal, and it shall also take all care to ensure the confidentiality of such portion of the Confidential Information disclosed. 

13.7.1.    The confidentiality obligation stipulated in Section 13.7 will not apply: (i) with respect to
information that is public knowledge at the present date, (ii) with respect to Confidential Information that, although confidential at the present date, 

 
becomes public knowledge, without the disclosure having been made in violation of the provisions of this Agreement or (iii) when there is a legal obligation of disclosure, by virtue of law
or decision in which case the Confidential Information shall be provided exclusively to those persons who, by virtue of such legal obligation or court order, must receive it. 

13.7.2.    The Party to whom any Confidential Information is to be disclosed shall notify the other Parties as soon as
reasonably practicable so that the other Parties may take such action deemed necessary to suspend such obligation or restrict the extent of the information to be disclosed (in any event upon the consent of the Party to whom the Confidential
Information is to be disclosed). 
 13.8.    Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of Brazil. 
 13.9.    Dispute Resolution. In the event of any difficulty in the interpretation or execution of this
Agreement or any dispute relating to the performance of this Agreement, the Parties shall use their best efforts to resolve the matter amicably. To that end, the Parties shall negotiate in good faith a settlement that is satisfactory to the claimant
Party or Parties and to the respondent(s). If the Parties are unable to reach an agreement within fifteen (15) days after receipt of the notice regarding the existence of the dispute and the need for conciliation of interests, the dispute will
be resolved by arbitration in the manner set forth in the 
 following item. 

13.10.    Arbitration. Notwithstanding the provisions of Section 13.10, it is agreed that any and all controversies or
disputes arising out of or in any way related to this Agreement shall be settled, exclusively and finally, by arbitration, which shall be conducted and administered in the Portuguese language and according to the Arbitration Rules
(“Rules”) of the Centro de Arbitragem e Mediação da Câmara de Comércio Brasil-Canadá (Arbitration and Mediation Center of the Brazil-Canada Chamber of
Commerce) (“CAM-CCBC”), in a procedure to be administered by the CAM-CCBC, in accordance, subsidiarily, with the provisions of Law No. 9.307,
dated September 23, 1996, as amended, and the Code of Civil Procedure. 
 13.10.1.    The seat of the arbitration
shall be the city of São Paulo, state of São Paulo, Brazil, where the arbitration award shall be rendered, unless the Parties expressly agree otherwise and without prejudice to the Parties, by mutual agreement, designating a different
location for the holding of hearings. 
 13.10.2.    The dispute shall be settled by means of a confidential arbitration
procedure conducted by an Arbitral Tribunal composed of three (3) arbitrators, of 

 
which one (1) arbitrator is appointed by the claimant Party or Parties and one (1) arbitrator is appointed by the respondent Party or Parties, in the terms of the Rules, convened in the
manner indicated in Section 13.10.3 below. The third arbitrator, who will act as Chairman of the Arbitral Tribunal, shall be appointed by mutual agreement between the two (2) arbitrators appointed by the Parties, within ten (10) days
of the appointment of the last arbitrator, according to the terms and conditions of the Rules. If any of the three (3) arbitrators is not appointed within the period provided for in the Rules, it will be up to the Chairman of the CAM-CCBC to make the appointment. Any dispute regarding the appointment of the arbitrators, as well as the appointment of the third arbitrator, will be settled in accordance with the Rules. 

13.10.3.    If more than one Party is involved in the dispute, such Parties shall actively or passively meet in defense of
their common interests, so that the arbitration is always conducted by three (3) arbitrators, elected and replaced according to the Rules (one arbitrator appointed by the claimant Party or Parties, another appointed by the respondent Party or
Parties and the third appointed by mutual agreement by the two (2) arbitrators appointed by the Parties or by the Chairman of the CAM-CCBC). In the event of arbitral proceedings involving three
(3) or more Parties where the Parties cannot be consolidated as claimants and respondents, all Parties involved shall jointly appoint two arbitrators within ten (10) days as of the receipt by the Parties of the last CAM-CCBC notification to that effect. The third arbitrator, shall act as Chairman of the Arbitral Tribunal, and shall be chosen by the arbitrators appointed by the Parties within ten (10) days of the
appointment of the last arbitrator or, if this is not possible for any reason, by the Chairman of the CAM-CCBC. Should the Parties for any reason not jointly appoint the two (2) arbitrators, all members
of the Arbitral Tribunal shall be appointed by the Chairman of the CAM-CCBC, who shall designate one of them to act as Chairman of the panel. 

13.10.4.    Any document or information disclosed by the Parties in the course of the arbitration proceedings shall be
considered confidential, and the Parties and the arbitrator(s) to be appointed shall be bound not to disclose such information to any third parties, except in the event of a request from judicial or administrative authorities against whom the
obligation of confidentiality cannot be invoked. 
 13.10.5.    The arbitration award shall be binding on the Parties and
shall not be subject to any judicial or administrative appeal. The arbitration award will be reasoned and made in writing. 

13.10.6.    At the request of any Party, the Arbitral Tribunal may, until the signing of the Terms of Reference,
consolidate two (2) or more arbitrations into a single 

 
arbitration in the following cases (i) if the Parties have agreed to consolidation; (ii) if all claims are made under the same arbitration agreement; or (iii) if the claims,
although made under more than one arbitration agreement, relate to the same legal claim. In deciding whether to consolidate, the Arbitral Tribunal shall take into account any circumstances that it considers relevant, including the appointment or
confirmation of the appointment of one or more arbitrators in more than one of the arbitrations (in which case the Arbitral Tribunal shall also take into account whether the same or different persons have been appointed or confirmed). Consolidation
of arbitrations will occur in the arbitration that was initiated first, unless the Parties agree otherwise in writing. 

13.10.7.    Without prejudice to the validity of the arbitration provision herein, the Parties elect, to the exclusion of
any other, o foro central da Comarca de São Paulo (the Central Court of the Judicial District of São Paulo), state of São Paulo, if and when necessary, for the exclusive purpose of: (i) enforcement of obligations
that immediately entail judicial execution; (ii) obtaining coercive measures or precautionary procedures as a guarantee to the effectiveness of the arbitration proceedings, pursuant to articles 22-A and 22-B of Law 9.307 dated September 23, 1996; (iii) obtaining injunctive relief and specific performance, it being understood that, once the injunction or specific performance is achieved, the Arbitral Tribunal
to be constituted or already constituted, as the case may be, will have full and exclusive jurisdiction to decide on any and all issues, whether procedural or on the merits, which gave rise to the injunction or specific performance, suspending the
respective judicial proceeding until the Arbitral Tribunal decides, partially or finally, on the matter. The filing of any action pursuant to this Section 13.10.7 does not waive this arbitration provision or the full jurisdiction of the
Arbitral Tribunal. 
 13.10.8.    The Company binds itself to the terms of the arbitration provision provided in this
Agreement for all purposes. 
 13.10.9.    Each Party shall bear its own costs and expenses incurred during the
arbitration, and the Parties shall share equally the costs and expenses which cannot be attributed to one of them. The arbitration award shall award the ultimate responsibility for the cost of the proceedings to the losing Party, or both Parties in
proportion to their unsuccessful claims, including reasonable and verifiable attorneys’ fees incurred. 

13.10.10.    Arbitration will be on a legal basis, excluding judgments by equity, and applying the rules and principles of
the legal system of the Federative Republic of Brazil. 
 13.11.    Annexes. All Exhibits contained herein are an integral part
of this Agreement. In case of conflict between the provisions of the Exhibits and this Agreement, the terms and conditions of this Agreement shall prevail. 

 13.12.    Headings. The headings used for Sections and items in this Agreement
are for convenience and reference only and shall in no way affect or alter the meaning or interpretation of the provisions of this Agreement. 

13.13.    Severability of Provisions. Any term or provision of this Agreement that is declared invalid or unenforceable shall be
ineffective only to the extent of such invalidity or unenforceability, without rendering the remaining terms and provisions of such Section and/or this Agreement invalid or unenforceable. 

13.14.    Electronic Signature. The Parties affirm and declare that, in the form of item X, of the head of Article 3 and in Article
18 of Law No. 13.874, dated September 20, 2019, in Article 2-A, of Law No. 12.682, dated July 9, 2012, in Articles 104 and 107, of the Civil Code, and in Article 10, paragraph 2, of Medida
Provisória (Provisional Measure) No. 2.200-2, dated August 24, 2001, this Agreement shall be deemed signed, demandable and enforceable between the Parties and before third parties,
regardless of the initialing of each page, provided that (a) it is executed in physical, electronic and/or hybrid form, at the discretion of the Parties; (b) the signature is, exclusively or in combination, (i) affixed on the physical
support, (ii) certified by an ICP-Brazil accredited entity, (iii) executed by means of an e-CPF (digital certificate of an individual) and/or (iv) affixed
by another means of evidencing authorship and integrity of documents in electronic form, including those using certificates not issued by ICP-Brazil; and (c) (1) if executed under the physical or hybrid
form, its presentation under (i) the physical form (with the signatures in one or more of the formats herein indicated) or (ii) its digitalized form, with sending, in PDF format, or other tool, by a Party to the other, from the e-mail indicated in this Agreement, or to third parties, under any form; and (2) if executed under the electronic form, its presentation by a Party to the other, or to third parties, under any form and
mechanism. 
 IN WITNESS WHEREOF, the parties hereto sign this Agreement, jointly with two (2) witnesses listed below. 

São Paulo, May 26, 2021. 

[End of page intentionally left blank] 

 [Signature page 1/4 of the Shareholders Agreement executed on May 26, 2021, between Excella
Gestão de Saúde Populacional Ltda., Semantix Participações S.A. and, additionally, as a consenting intervening party, Tradimus S.A.] 

Shareholders: 
 EXCELLA GESTÃO
DE SAÚDE POPULACIONAL LTDA. 
  

			
	 /s/ João Marcos Bezerra
	 	 /s/ Fábio André Nanci Izidro Gonçalves

	Name: João Marcos Bezerra	 	Name: Fábio André Nanci Izidro Gonçalves
	Position: Director	 	Position: Director

 [Signature page 2/4 of the Shareholders Agreement executed on May 26, 2021, between Excella
Gestão de Saúde Populacional Ltda., Semantix Participações S.A. and, additionally, as a consenting intervening party, Tradimus S.A.] 

Shareholders: 
 SEMANTIX
PARTICIPAÇÕES S.A. 
  

			
	 /s/ Leandro dos Santos Poça D’Água
	 	 /s/ Leonardo dos Santos Poça D’Água

	Name: Leandro dos Santos Poça D’Água	 	Name: Leonardo dos Santos Poça D’Água
	Position: Director	 	Position: Director

 [Signature page 3/4 of the Shareholders Agreement executed on May 26, 2021, between
Excella Gestão de Saúde Populacional Ltda., Semantix Participações S.A. and, additionally, as a consenting intervening party, Tradimus S.A.] 

Consenting Intervener: 
 TRADIMUS S.A.

  

			
	 /s/ Adriano Alcalde
	 	 /s/ Leonardo dos Santos Poça D’Água

	Name: Adriano Alcalde	 	Name: Leonardo dos Santos Poça D’Água
	Position: Director	 	Position: Director

 [Signature page 4/4 of the Shareholders Agreement executed on May 26, 2021, between
Excella Gestão de Saúde Populacional Ltda., Semantix Participações S.A. and, additionally, as a consenting intervening party, Tradimus S.A.] 

Witnesses: 
  

					
	 /s/ Tatiana Dutra Bacchin
	 	          	 	 /s/ Vanessa de Fatima Brites

	Name: Tatiana Dutra Bacchin	 		 	Name: Vanessa de Fatima Brites
	RG: 50.258.984-X	 		 	RG: 33.383.150-0
	CPF: 479.249.818-02	 		 	CPF: 321.003.238-65

 ANNEX A 

EXCLUSIVE ACTIVITIES 
 The Exclusive
Activities of the Company comprise activities that meet, in combination, the following requirements: 
 A)    involve activities of
development and commercialization of technological products with commercial models, including those already developed by the Company prior to the execution of this Agreement; 

B)    have as a target market: hospitals, healthcare plans, pharmaceutical industry, medical devices industry, health insurers and other
participants of the healthcare market; and 
 C)    have as main objectives: to improve accountability for healthcare quality based on
clinical outcomes and healthcare costs, focus on compensation models directed at population health management (i.e. value-based), and to create intelligent automation to assess and reach beneficiaries of portfolios, engage patients in self-care, and
maximize the chances that each beneficiary receives appropriate care (preventive, chronic, and acute). 
 Attached are examples of activities that are
considered to be Exclusive Activities of the Company. 

 EXHIBIT LIST 

 

			
	EXHIBIT	 	Joint Venture: Value Based Data Analytics
		
	EXHIBIT 8.1	 	Business Plan

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