Document:

phx-ex101_37.htm

Exhibit 10.1

 

Execution Version

 

 

 

 

PURCHASE AND SALE AGREEMENT

BY AND BETWEEN

VENDERA RESOURCES III, LP,

and

VENDERA MANAGEMENT III LLC

(as Seller)

AND

PHX MINERALS INC.

(as Buyer)

Dated as of: November 10, 2021

 

 

 

TABLE OF CONTENTS

	
Article 1
	
PURCHASE AND SALE
	
 
	
5

	
 
	
1.1
	
Purchase and Sale
	
 
	
5

	
 
	
1.2
	
Effective Time
	
 
	
5

	
 
	
1.3
	
Excluded Assets
	
 
	
5

	
Article 2
	
 
	
PURCHASE PRICE; REVENUES AND EXPENSES
	
 
	
5

	
 
	
2.1
	
Purchase Price
	
 
	
5

	
 
	
2.2
	
Consideration
	
 
	
5

	
 
	
2.3
	
Allocation of Purchase Price
	
 
	
6

	
 
	
2.4
	
Adjustments to the Purchase Price at Closing
	
 
	
6

	
 
	
2.5
	
Adjustments to the Purchase Price Following Closing
	
 
	
7

	
 
	
2.6
	
Further Revenues and Expenses
	
 
	
8

	
 
	
2.7
	
Payment Method
	
 
	
8

	
 
	
2.8
	
Principles of Accounting
	
 
	
9

	
Article 3
	
 
	
SCOPE OF DUE DILIGENCE AND TITLE DEFECTS
	
 
	
9

	
 
	
3.1
	
Scope of Due Diligence Review and Access
	
 
	
9

	
 
	
3.2
	
Title Defects and Purchase Price Adjustment
	
 
	
9

	
Article 4
	
 
	
SELLER’S REPRESENTATIONS AND WARRANTIES
	
 
	
14

	
 
	
4.1
	
Organization
	
 
	
14

	
 
	
4.2
	
Qualification
	
 
	
14

	
 
	
4.3
	
Power; No Conflict
	
 
	
14

	
 
	
4.4
	
Authorization and Enforceability
	
 
	
14

	
 
	
4.5
	
Liability for Brokers’ Fees
	
 
	
14

	
 
	
4.6
	
Foreign Person
	
 
	
15

	
 
	
4.7
	
No Bankruptcy
	
 
	
15

	
 
	
4.8
	
Litigation
	
 
	
15

	
 
	
4.9
	
Taxes
	
 
	
15

	
 
	
4.10
	
Consents; Preferential Rights; Non-Competes
	
 
	
15

	
 
	
4.11
	
Contracts and Leases
	
 
	
15

	
 
	
4.12
	
Payment of Royalties; No Suspense Accounts; No Deferred Payments
	
 
	
16

	
 
	
4.13
	
Environmental Matters
	
 
	
16

	
 
	
4.14
	
No Cost-Bearing Interests
	
 
	
16

	
 
	
4.15
	
Condemnation
	
 
	
16

	
 
	
4.16
	
Investment Intent
	
 
	
16

	
Article 5
	
 
	
BUYER’S REPRESENTATIONS AND WARRANTIES
	
 
	
17

	
 
	
5.1
	
Organization
	
 
	
17

	
 
	
5.2
	
Qualification
	
 
	
17

	
 
	
5.3
	
Power
	
 
	
17

	
 
	
5.4
	
Authorization and Enforceability
	
 
	
17

	
 
	
5.5
	
Liability for Brokers’ Fees
	
 
	
17

1

 

 

	
 
	
5.6
	
Litigation
	
 
	
18

	
 
	
5.7
	
Knowledgeable Investor
	
 
	
18

	
 
	
5.8
	
No Bankruptcy
	
 
	
18

	
 
	
5.9
	
Capitalization
	
 
	
18

	
 
	
5.10
	
Valid Issuance
	
 
	
18

	
 
	
5.11
	
Investment Company
	
 
	
18

	
 
	
5.12
	
Buyer Reports; Financial Statements
	
 
	
18

	
 
	
5.13
	
Private Placement
	
 
	
19

	
 
	
5.14
	
No Integrated Offer
	
 
	
19

	
 
	
5.15
	
Listing Exchange
	
 
	
19

	
Article 6
	
 
	
COVENANTS
	
 
	
19

	
 
	
6.1
	
Pre-Closing Covenants
	
 
	
19

	
 
	
6.2
	
Reasonable Efforts
	
 
	
20

	
 
	
6.3
	
Amendment of Disclosure Schedules
	
 
	
20

	
 
	
6.4
	
Limitations on Representations and Warranties
	
 
	
20

	
 
	
6.5
	
Post-Closing Obligations
	
 
	
21

	
 
	
6.6
	
Exclusivity
	
 
	
22

	
 
	
6.7
	
Listing
	
 
	
22

	
 
	
6.8
	
Registration Rights
	
 
	
22

	
Article 7
	
 
	
TAX MATTERS
	
 
	
25

	
 
	
7.1
	
Transfer Taxes
	
 
	
25

	
 
	
7.2
	
Asset Taxes
	
 
	
25

	
 
	
7.3
	
Tax Allocation
	
 
	
26

	
 
	
7.4
	
Refunds of Taxes
	
 
	
26

	
 
	
7.5
	
Cooperation
	
 
	
26

	
Article 8
	
 
	
CONDITIONS PRECEDENT AND TERMINATION
	
 
	
26

	
 
	
8.1
	
Conditions to Obligations of Seller
	
 
	
26

	
 
	
8.2
	
Conditions to Obligations of Buyer
	
 
	
27

	
 
	
8.3
	
Frustration of Closing Conditions
	
 
	
28

	
 
	
8.4
	
Termination
	
 
	
28

	
 
	
8.5
	
Effect of Termination and Remedies
	
 
	
29

	
Article 9
	
 
	
CLOSING
	
 
	
29

	
 
	
9.1
	
Date and Place of Closing
	
 
	
29

	
 
	
9.2
	
Closing Obligations
	
 
	
30

	
Article 10
	
 
	
ASSUMPTION AND RETENTION OF OBLIGATIONS AND INDEMNIFICATION; DISCLAIMERS
	
 
	
30

	
 
	
10.1
	
Buyer’s Assumption of Liabilities and Obligations
	
 
	
30

	
 
	
10.2
	
Indemnification
	
 
	
31

	
 
	
10.3
	
Survival of Warranties, Representations and Covenants
	
 
	
32

	
 
	
10.4
	
Reservation as to Non-Parties
	
 
	
33

2

 

 

	
 
	
10.5
	
Acceptance of Title Condition
	
 
	
33

	
 
	
10.6
	
Express Negligence Rule
	
 
	
33

	
 
	
10.7
	
Waiver of Certain Damages
	
 
	
33

	
 
	
10.8
	
Redhibition Waiver
	
 
	
34

	
 
	
10.9
	
UTPCPL Waiver
	
 
	
34

	
 
	
10.10
	
Determination of Losses
	
 
	
34

	
 
	
10.11
	
Notice and Defense
	
 
	
34

	
Article 11
	
 
	
MISCELLANEOUS
	
 
	
35

	
 
	
 
	
 
	
 
	
 

	
 
	
11.1
	
Expenses
	
 
	
35

	
 
	
11.2
	
Notices
	
 
	
35

	
 
	
11.3
	
Governing Law; Jurisdiction; Venue: Jury Waiver; Binding Arbitration
	
 
	
36

	
 
	
11.4
	
Further Assurances
	
 
	
37

	
 
	
11.5
	
Amendments; Waivers
	
 
	
37

	
 
	
11.6
	
Assignment
	
 
	
37

	
 
	
11.7
	
Counterparts/Fax Signatures
	
 
	
37

	
 
	
11.8
	
Construction
	
 
	
38

	
 
	
11.9
	
Entire Agreement
	
 
	
38

	
 
	
11.10
	
Successors and Permitted Assigns
	
 
	
38

	
 
	
11.11
	
Parties in Interest
	
 
	
38

	
 
	
11.12
	
Severability
	
 
	
38

	
 
	
11.13
	
Joint Preparation
	
 
	
38

	
 
	
11.14
	
Publicity
	
 
	
39

	
 
	
11.15
	
Disclosure Schedules
	
 
	
39

	
 
	
11.16
	
Specific Performance
	
 
	
39

	
 
	
11.17
	
Confidentiality
	
 
	
39

	
 
	
11.18
	
No Recourse
	
 
	
40

 

				
	
ANNEX – DEFINED TERMS
	
 
	
 
	
A

 

 

3

 

 

 

List of Exhibits

 

Exhibit A-1Tracts and Allocated Values

Exhibit A-2Wells 

Exhibit BSelling Stockholders Questionnaire

Exhibit CForm of Conveyance 

Exhibit DForm of Certificate of Non-Foreign Status 

Exhibit EForm of Lock-Up Agreement 

Exhibit FLeases 

 

List of Disclosure Schedules

Section 4.8Litigation

Section 4.9Taxes

Section 4.11Contracts 

Section 4.13Environmental Matters

Section 4.14No Cost-Bearing Interests

Section 9.2(g)Persons Issued Shares Pursuant to Lock-Up Agreement

 

 

4

 

 

 

PURCHASE AND SALE AGREEMENT

This Purchase and Sale Agreement (the “Agreement”) is dated as of the 10th day of November, 2021 (the “Execution Date”), and is by and between Vendera Resources III, LP, a Delaware limited partnership, and Vendera Management III LLC, a Delaware limited liability company (collectively, “Seller”), and PHX Minerals Inc., an Oklahoma corporation (“Buyer”). Seller and Buyer are each individually referred to in this Agreement as a “Party” and collectively as the “Parties”.

RECITALS

WHEREAS, Seller owns certain rights, title and interests in and to certain mineral interests, royalty interests and/or overriding royalty interests in the oil, gas, and other minerals underlying certain lands located in Nacogdoches County, Texas and Bienville, Bossier, Caddo, De Soto, Red River, and Sabine Parishes in the state of Louisiana; and 

WHEREAS, Seller desires to sell such rights, title and interests to Buyer, and Buyer desires to purchase such rights, titles and interests from Seller on the terms and subject to the conditions set forth in this Agreement.

NOW THEREFORE, in consideration of the mutual promises, representations, warranties, covenants and agreements contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller hereby agree as follows:

Article 1
PURCHASE AND SALE

1.1Purchase and Sale.

 Subject to the terms and conditions of this Agreement, at the Closing, Buyer agrees to purchase from Seller, and Seller agrees to sell, assign, transfer, convey and deliver to Buyer, all of Seller’s right, title and interest in and to the Assets for the consideration specified in Article 2.

1.2Effective Time.

 If the Closing occurs, the purchase and sale of the Assets shall be effective as the Effective Time.

1.3Excluded Assets.

 Notwithstanding any other provision of this Agreement to the contrary, the Assets to be conveyed and assigned under this Agreement do not include the Excluded Assets, all of which are reserved by Seller.

Article 2
PURCHASE PRICE; REVENUES AND EXPENSES

2.1Purchase Price.

 Subject to the adjustments set forth below and the other terms and conditions of this Agreement, the total consideration for the purchase, sale and conveyance of the Assets to be paid by Buyer to Seller is Five Million Two Hundred Thousand Dollars ($5,200,000.00) (the “Purchase Price”), comprised of and to be paid partially in cash and partially in shares of Common Stock as further described in Section 2.2.

2.2Consideration.

(a)  Seller agrees to accept payment of the Purchase Price as follows: (a) an amount equal to Five Hundred Twenty Thousand Dollars ($520,000.00) shall be paid for in cash by Buyer at Closing (the “Cash Consideration”) and (b) the remainder to the Purchase Price (after accounting for the Cash Consideration and any Purchase Price adjustments pursuant to this Agreement thereto) in shares of Class A Common Stock, par value $0.016666, of Buyer (the “Common Stock”) with an equivalent aggregate Per Share Value equal to the Purchase Price (the “Shares”). As used herein, the “Per Share 

5

 

 

Value” means the VWAP of Common Stock for the five consecutive trading days ending November 5, 2021, which the Parties agree and stipulate equals $3.08 per Share; provided that, if as of Closing, the Shares required to be issued hereunder would result in Seller or its Affiliates beneficially owning more than 4.9% of the total issued and outstanding shares of Common Stock of Buyer, then (i) the Shares will be reduced by a number of Shares (the “Removed Shares”) required to result in Seller owning 4.9% or less of the total issued and outstanding share of Common Stock of Buyer and (ii) the Cash Consideration will be increased by an amount equal to (x) the number of Removed Shares, multiplied by (y) the Per Share Value (and such amounts shall be deemed to be included in the definition of Cash Consideration hereunder). 

2.3Allocation of Purchase Price.

 The unadjusted Purchase Price shall be allocated among each tract of Land identified on Exhibit A-1 (each, a “Tract”), with each such Tract having the “Allocated Value” set forth for such Tract on Exhibit A-1.

2.4Adjustments to the Purchase Price at Closing.

(a)No later than three (3) Business Days prior to the Closing Date, Seller will in good faith prepare (as a reasonable and prudent Person) and provide to Buyer a preliminary settlement statement (the “Preliminary Settlement Statement”) identifying all adjustments to the Purchase Price, without duplication, known by Seller to be made at Closing, in accordance with this Agreement and as of the time of the preparation of the Preliminary Settlement Statement (including reasonable estimates of any such amounts where actual amounts are not available). After the delivery of the Preliminary Settlement Statement to Buyer and prior to the Closing, Seller shall consult in good faith with Buyer regarding any reasonable changes to the Preliminary Settlement Statement proposed by Buyer prior to the Closing. Without limiting Section 2.5, the Preliminary Settlement Statement, as agreed upon in writing by Seller and Buyer, will be used to adjust the Purchase Price at Closing; provided, however, that if Seller and Buyer cannot agree in writing on the Preliminary Settlement Statement prior to Closing, then the Preliminary Settlement Statement proposed by Seller, taking into account any adjustments thereto agreed to by the Parties, will be used to adjust the Purchase Price at Closing. Seller and Buyer acknowledge that some items in the Preliminary Settlement Statement may be estimates or otherwise subject to change in the Final Settlement Statement. The adjusted Purchase Price, as reflected in the Preliminary Settlement Statement in accordance with this Section 2.4(a), is referred to as the “Closing Adjusted Purchase Price”. 

(b)The Purchase Price will be increased (without duplication) by the following:

(i)the amount of any proceeds (including any lease bonuses, royalties and other proceeds) received by Buyer (and not otherwise paid or remitted to Seller) to the extent attributable to (A) any of the Assets and (B) the time period before the Effective Time;

(ii)subject to Section 3.2, the Title Credit Amount of any Title Credit (if applicable);

(iii)the amount of all Asset Taxes allocable to Buyer pursuant to Article 7 but paid or otherwise economically borne by Seller; and

(iv)as otherwise agreed in writing by the Parties.

(c)The Purchase Price will be decreased (without duplication) by the following:

(i)the amount of any proceeds (including any lease bonuses, royalties and other proceeds) received by Seller (and not otherwise paid or remitted to Buyer) to the 

6

 

 

extent attributable to (A) any of the Assets and (B) the period beginning on and following the Effective Time;

(ii)subject to Section 3.2, the Title Defect Amount of any uncured Title Defect that is not waived in writing by Buyer (if applicable);

(iii)the Allocated Value of the Assets excluded from the transactions contemplated hereby pursuant to Section 3.2(f);

(iv)the amount of all Asset Taxes allocable to Seller pursuant to Article 7 but paid or otherwise economically borne by Buyer; and

(v)as otherwise agreed in writing by the Parties.

(d)The net adjustment to the Purchase Price pursuant to Section 2.4 (upward or downward) shall be adjusted proportionately in cash and in shares of Common Stock (as a partial adjustment to the Cash Consideration and a partial adjustment to the Shares) relative to the total percentage each form of consideration bears to the unadjusted Purchase Price, such percentages being ten percent (10%) cash and ninety percent (90%) shares of Common Stock.  Each adjustment will be applied first to the Shares, effected as follows: (i) first, the aggregate net adjustment amount will be multiplied by ninety percent (90%), and (ii) second, the Shares will be adjusted upward (if the net adjustment amount is positive) or downward (if the net adjustment amount is negative) by the number of shares of Common Stock equal to the absolute value of the amount determined in clause (i), divided by the Per Share Value, and if such amount includes a fractional share, rounded up to the next whole share.  The remainder of net adjustment amount (being ten percent (10%) of the net adjustment amount, and further adjusted to account any fractional Share adjustment described in the preceding sentence) shall be made in cash and will increase or decrease (as applicable) the Cash Consideration due and payable to Seller; in each case, subject always to the limitations in Section 2.2. 

2.5Adjustments to the Purchase Price Following Closing.

(a)Final Settlement Statement. Within ninety (90) days after the Closing Date (such 90th day, the “Final Settlement Date”), Seller will prepare a proposed final settlement statement (the “Final Settlement Statement”), which shall take into account all final adjustments made to the Purchase Price and shows the resulting final adjusted Purchase Price (“Final Price”). The Final Settlement Statement shall set forth the actual adjustments required under Section 2.4. As soon as practicable, and in any event within thirty (30) days, after receipt of the Final Settlement Statement (the “Review Period”), Buyer shall deliver to Seller a written report containing any proposed changes to the Final Settlement Statement and an explanation of any such changes and the reasons therefor (the “Dispute Notice”). If Buyer fails to timely deliver a Dispute Notice to Seller containing changes Buyer proposes to be made to the Final Settlement Statement, the Final Settlement Statement as delivered by Seller will be deemed to be correct and mutually agreed upon by the Parties, and will, without limiting Section 7.2(c), be final and binding on the Parties and not subject to further audit or arbitration. If the Final Price set forth in the Final Settlement Statement is mutually agreed upon by Seller and Buyer, the Final Settlement Statement and the Final Price shall, without limiting Section 7.2(c), be final and binding on the Parties hereto. Any disputed items included in a Dispute Notice regarding the Final Settlement Statement shall be resolved as provided in Section 2.5(c).

(b)Payment of Post-Closing Adjustments. Any adjustments to the Purchase Price as reflected in the Final Settlement Statement will be offset against each other so that only one payment is required between the Parties.  Any such adjustment made post-Closing shall be paid only in cash. If the Final Price is less than the Closing Adjusted Price, then Seller shall pay Buyer cash in the amount determined pursuant to this Section 2.5(b), and if the Final Price is more than the Closing Adjusted Price, 

7

 

 

then Buyer shall pay Seller cash in the amount determined pursuant to this Section 2.5(b). The adjustments contemplated in this Section 2.5(b) shall be made within five (5) Business Days following the date (the “Final Settlement Determination Date”) upon which all matters in the proposed Final Settlement Statement (including any Title Disputes) are either (A) agreed upon by the Seller and Buyer in writing, (B) deemed accepted by Buyer at the end of the Review Period pursuant to Section 2.5(a), or (C) finally determined by the Accounting Consultant in accordance with Section 2.5(c), as applicable. 

(c)Resolution of Disputed Items. After the completion and delivery of the proposed Final Settlement Statement, the Parties shall negotiate in good faith to attempt to reach an agreement in writing on the amount due with respect to any disputed items included in the Dispute Notice. If the Parties agree in writing on the amount due with respect to any disputed items in the proposed Final Settlement Statement, and any payment in cash is required, the Party owing such cash will pay the amount of such cash to the other Party in the time period provided in Section 2.5(b). If the Parties are unable to agree in writing on the adjustment amount with respect to any disputed items in the proposed Final Settlement Statement within thirty (30) days after Seller receive Buyer’s written Dispute Notice, then Buyer and Seller shall engage an independent national accounting firm mutually agreed upon by the Parties (the “Accounting Consultant”) to exclusively and finally resolve any such disputed matters set forth in the Dispute Notice in accordance with the terms of this Agreement. Each of Buyer and Seller shall within fifteen (15) Business Days after either Party’s written request for arbitration summarize its position with regard to such dispute in a written document and submit such summaries to the Accounting Consultant, together with a copy of the Dispute Notice, the Final Settlement Statement, this Agreement and any other documentation such Party may desire to submit. If there is more than one or more Dispute Notice or disputed matter, all such disputes shall be consolidated into the same arbitration process pursuant to this Section 2.5(c). The Parties shall cooperate diligently with any reasonable request of the Accounting Consultant in an effort to resolve the matters submitted to the Accounting Consultant as soon as reasonably possible after the Accounting Consultant is engaged. The Accounting Consultant, once appointed, shall have no ex parte communications with any of the Parties concerning the determination required under this Section 2.5(c). All communications between any Party or its Affiliates and the Accounting Consultant shall be conducted in writing, with copies sent simultaneously to the other Parties in the same manner, or at a meeting or conference call to which each of the Parties and their respective Representatives have been invited and of which such Parties have been provided at least five (5) days’ written notice. In no event shall the Accounting Consultant select an adjustment amount to the Purchase Price (i) for any upward adjustment that is greater than Seller’s proposed amount or less than Buyer’s proposed amount or (ii) for any downward adjustment that is greater than Buyer’s proposed amount or less than Seller’s proposed amount. Within thirty (30) days after receipt of such materials from the Parties and after receipt of any additional information required by the Accounting Consultant, the Accounting Consultant shall make its determination, which shall be in accordance with the terms of this Agreement and shall be final and binding upon the Parties, without right of appeal, absent Fraud or manifest error. The Accounting Consultant may not award damages, interest or penalties to either Buyer or Seller with respect to any matter. Seller and Buyer shall each bear their own respective legal fees and other costs of presenting its case. Seller shall bear fifty percent (50%) and Buyer shall bear fifty percent (50%) of the costs and expenses of the Accounting Consultant.

2.6Further Revenues and Expenses.

 From and after the Closing Date, if a Party or Parties receive revenues that belong to another Party under this Agreement, the Party or Parties receiving the revenues agrees to remit those revenues to the applicable Party promptly (but no later than thirty (30) days) following such first Party’s receipt thereof.

2.7Payment Method.

 Unless the Parties otherwise agree in writing and except for the Share consideration (and adjustments thereto) contemplated in this Agreement, all payments made or otherwise required under this Agreement to be paid in cash (a) to Seller, will be made in United States dollars by wire transfer in immediately available funds to such account(s) as are designated in writing by the Seller to Buyer 

8

 

 

and (b) to Buyer, will be made in United States dollars by wire transfer in immediately available funds to such account(s) as are designated in writing by Buyer to Seller.

2.8Principles of Accounting.

 The Preliminary Settlement Statement and Final Settlement Statement will be prepared in accordance with GAAP, consistently applied in the petroleum industry, and applicable Laws.

Article 3
SCOPE OF DUE DILIGENCE AND TITLE DEFECTS

3.1Scope of Due Diligence Review and Access.

 In order to allow Buyer to conduct title due diligence with respect to the Assets, from and after the Execution Date until 5:00 p.m. Central Time on November 24, 2021 (the “Title Claims Date”), Seller shall provide Buyer with reasonable access to the Records; provided, however, (a) such access does not unreasonably interfere with the normal operations and business of Seller or its Affiliates, (b) such access shall occur in such a manner as Seller reasonably determines to be appropriate to protect the confidentiality of the transactions contemplated by this Agreement, and (c) nothing herein shall require Seller to provide access, or to disclose any information, to Buyer if such access or disclosure (w) would waive any legal privilege (except with respect to any title opinions covering any Asset), (x) would be in violation of applicable Laws or regulations of any Governmental Authority, (y) would be in violation of any confidentiality obligations to a third party or (z) would constitute access to the Excluded Records. Further, Buyer shall have no right (i) to access any of the Assets or (ii) to perform or conduct any environmental sampling or other invasive environmental investigation on or about or with respect to any of the Assets. Buyer shall keep confidential all information made available to Buyer by or on behalf of Seller or its Representatives until the Closing.

3.2Title Defects and Purchase Price Adjustment.

(a)Title Defect Notice. Buyer shall give Seller written notice of alleged Title Defects (a “Defect Allegation”) promptly upon Buyer’s discovery thereof, and in any event, prior to the Title Claims Date. To be effective, such Defect Allegation shall be in writing, delivered to Seller before the Title Claims Date and shall include (i) a reasonably detailed description of the alleged Title Defect, including Buyer’s detailed findings and reasons for concluding that such alleged Title Defect exists, (ii) the Allocated Value of the Tract affected by the Title Defect, (iii) the amount by which Buyer reasonably believes that the Allocated Value of the affected Tract is reduced by the alleged Title Defect and the computations and information upon which Buyer’s belief is based, and (iv) all supporting information and documents in Buyer’s possession or reasonable control relating to such asserted Title Defect necessary for Seller to verify such Title Defect and the value thereof; provided, however, that an alleged failure to comply with subsections (i) through (iv) above shall not cause any such Defect Allegation to be invalid or any Title Defect to be waived so long as the Defect Allegation is timely delivered and it provides reasonably sufficient notice and supporting documents to Seller of the existence of and reasonable details regarding the nature of the alleged Title Defect. Except for any claim under the Special Warranty, Buyer shall be deemed for any and all purposes to have waived, and Seller shall have no liability for, any Title Defects and other defects of title of which Seller have not received a Defect Allegation from Buyer on or before the Title Claims Date meeting the requirements of this Section 3.2(a). Notwithstanding the foregoing, Buyer shall be entitled to modify or amend any Defect Allegation or other communication until the Title Claims Date, and Buyer shall not be deemed to have waived any Title Defects that are ultimately asserted in a Defect Allegation from Buyer on or before the Title Claims Date meeting the requirements of this Section 3.2(a). Upon Seller’s receipt on or prior to the Title Claims Date of any Defect Allegation, Seller shall review such Defect Allegation in good faith and determine whether Seller believe such Defect Allegation meets the requirements of this Section 3.2(a). If Seller determines that any Defect Allegation fails to meet the requirements of this Section 3.2(a), Seller shall provide written notice to Buyer of such determination 

9

 

 

(and reasonable detail of the basis for such determination) (a “Deficiency Notice”) as soon as reasonably practicable following Seller’s receipt of such Defect Allegation. Notwithstanding anything to the contrary, with respect to each Defect Allegation received by Seller on or prior to the Title Claim Date, Seller may not dispute any alleged Title Defect set forth in any such Defect Allegation on the basis that it did not meet the requirements of this Section 3.2(a) unless Seller provides prompt written notice to Buyer (no later than five (5) Business Days following the Title Claim Date) of the basis upon which Seller (acting in good faith) has determined that the Defect Allegation failed to meet the requirements of this Section 3.2(a).

(b)Title Credit Notice. Seller or Buyer, as the case may be, as a “Disclosing Credit Party”, may (but is not obligated to), give the other Party written notice of alleged Title Credits (a “Credit Notice”) promptly upon the Disclosing Credit Party’s discovery thereof, and in any event, prior to the Title Claims Date. To be effective, such Credit Notice provided by a Disclosing Credit Party shall be in writing, delivered to the other Party prior to the Title Claims Date, and shall include (i) a reasonably detailed description of the alleged Title Credit, including the Disclosing Credit Party’s detailed findings and reasons for concluding that such alleged Title Credit exists, (ii) the Allocated Value of the Tract affected by the Title Credit, (iii) the amount by which the Disclosing Credit Party reasonably believes that the Allocated Value of the affected Tract is increased by the alleged Title Credit and the computations and information upon which the Disclosing Credit Party’s belief is based, and (iv) all supporting information and documents in the Disclosing Credit Party’s possession or reasonable control relating to such asserted Title Credit necessary for the other Party to verify such Title Credit and the value thereof; provided, however, that an alleged failure to comply with subsections (i) through (iv) above shall not cause any such Credit Notice to be invalid or any Title Credit to be waived so long as the Credit Notice is timely delivered and it provides reasonably sufficient notice and supporting documents to Seller of the existence of and reasonable details regarding the nature of the alleged Title Credit. Seller shall be deemed for any and all purposes to have waived, and Buyer shall have no liability for, all Title Credits (A) of which Buyer has not received a Credit Notice from Seller, or (B) for which Buyer has failed to provide a Credit Notice to Seller, on or before the Title Claims Date meeting the requirements of this Section 3.2(b). Prior to the Title Claims Date, the Party receiving a Credit Notice shall notify the Disclosing Credit Party if any written alleged Title Credits received from the Disclosing Credit Party on or before the Title Claims Date do not comply with the provisions of this Section 3.2(b). Upon a Party’s receipt on or prior to the Title Claims Date of any Credit Notice, such Party shall review such Credit Notice in good faith and determine whether it believes such Credit Notice meets the requirements of this Section 3.2(b). If a Party determines that any Credit Notice fails to meet the requirements of this Section 3.2(b), such Party shall provide written notice to the Disclosing Credit Party of such determination (and reasonable detail of the basis for such determination) (a “Credit Deficiency Notice”) as soon as reasonably practicable following such Party’s receipt of the Credit Notice. Notwithstanding anything to the contrary, with respect to each Credit Notice received by Buyer on or prior to the Title Claim Date, Buyer may not dispute any alleged Title Credit set forth in any such Credit Notice on the basis that it did not meet the requirements of this Section 3.2(b) unless it provides prompt written notice to Seller (no later than five (5) Business Days following the Title Claim Date) of the basis upon which Buyer (acting in good faith) has determined that the Credit Notice failed to meet the requirements of this Section 3.2(b).

(c)Title Defect Amounts. The value of an uncured or unwaived Title Defect (a “Title Defect Amount”), and any adjustments to the Purchase Price for the same, shall be calculated as follows, without duplication:

(i)if Buyer and Seller agree in writing on the Title Defect Amount, that amount shall be the Title Defect Amount; 

10

 

 

(ii)if a Title Defect is an Encumbrance upon an Asset which is liquidated in amount, then the adjustment shall be the sum necessary to be paid to the obligee to remove the Title Defect from the affected Asset; 

(iii)if a Title Defect is in respect of a discrepancy between (A) Seller’s Actual NRA for a Tract and (B) the aggregate Net Royalty Acres set forth on Exhibit A-1 for such Tract (the “Stated NRA” for such Tract), then the Title Defect Amount shall be the product of (1) the Allocated Value for such Tract, multiplied by (2) a fraction, the numerator of which is the absolute value of difference between the Stated NRA and the Actual NRA, and the denominator of which is the Stated NRA;

(iv)if the Title Defect represents an obligation or Encumbrance upon or other defect in title to the affected Tract of a type not described in Section 3.2(c)(i) through Section 3.2(c)(iii), above, then the Title Defect Amount shall be determined by taking into account the Allocated Value of the affected Tract, the legal effect of the Title Defect, the potential economic effect of the Title Defect over the life of the affected Tract, the values placed upon the Title Defect by Buyer and Seller and such other reasonable factors as are necessary to make a proper evaluation; and

(v)in no case shall the value of all Title Defects asserted with regard to a single Tract exceed the Allocated Value of the affected Tract. The Title Defect Amount with respect to a Title Defect shall be determined without any duplication of any costs included in any other Title Defect Amount hereunder, or for which Buyer otherwise receives credit in the calculation of the Purchase Price.

(d)Certain Limitations on Adjustments.

(i)Buyer shall have no remedy for any individual Title Defect, and Seller shall have no remedy for any individual Title Credit, unless the Title Defect Amount for such individual Title Defect, or Title Credit Amount for such individual Title Credit, exceeds Fifteen Thousand Dollars ($15,000.00) (the “Title Threshold”), and no Title Defect or Title Credit shall be taken into consideration for the purpose of calculating any Purchase Price reduction or increase under this Section 3.2 unless the Title Defect Amount for such Title Defect, or Title Credit Amount for such Title Credit, exceeds the Title Threshold (which shall be treated as a threshold and not a deductible).

(ii)Buyer shall have no remedy for any Title Defects unless and until the sum of (x) the aggregate Title Defect Amounts for Title Defects with Title Defect Amounts exceeding the Title Threshold minus (y) the aggregate Title Credit Amounts for Title Credits with Title Credit Amounts exceeding the Title Threshold, exceeds One Hundred Fifty Thousand Dollars ($150,000.00) (“Title Deductible”). Seller shall not be entitled to an upward Purchase Price adjustment for any Title Credits unless and until the sum of (x) the aggregate Title Credit Amounts for Title Credits with Title Credit Amounts exceeding the Title Threshold, minus (y) the aggregate Title Defect Amounts for Title Defects with Title Defect Amounts exceeding the Title Threshold, exceeds the Title Deductible. If, and only if, the Purchase Price reduction or increase which would result from all Title Defect Amounts or Title Credit Amounts, as the case may be, that exceed the Title Threshold exceeds the Title Deductible, then the Purchase Price shall be reduced by the aggregate of all Title Defect Amounts or increased by the aggregate of all Title Credit Amounts, in each case, that exceed the Title Deductible (which shall not be a threshold and shall be a true deductible).

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(iii)The Title Threshold and Title Deductible shall not apply to Title Defects arising by, through or under Seller or any of its Affiliates or any breach of the Special Warranty.

(e)Title Credit Amounts. The value of a Title Credit (a “Title Credit Amount”) shall be calculated as follows:

(i)if Buyer and Seller agree in writing on the Title Credit Amount, that amount shall be the Title Credit Amount;

(ii)if a Title Credit results from the Actual NRA for the Tract that contains the affected Asset exceeding the Stated NRA for such Tract, then the Title Credit Amount shall be the product of (1) the Allocated Value for such Tract, multiplied by (2) a fraction, the numerator of which is the absolute value of difference between the Stated NRA and the Actual NRA, and the denominator of which is the Stated NRA;

(iii)if the Title Credit is of a type not described in Section 3.2(e)(i) through Section 3.2(e)(ii), then the Title Credit Amount will be determined by taking into account the Allocated Value of the affected Tract, the legal effect of the Title Credit, the potential economic effect of the Title Credit over the life of the affected Tract, the values placed upon the Title Credit by Buyer and Seller and such other reasonable factors as are necessary to make a proper evaluation.

(iv)The Title Credit Amount with respect to a Title Credit shall be determined without any duplication of any credit included in any other Title Credit Amount hereunder, or for which Seller otherwise receives credit in the calculation of the Purchase Price.

(f)Cure. Seller may, but shall not be obligated to, cure Title Defects prior to the Closing or after the Closing subject to the provisions of this Section 3.2(f) and Section 3.2(g). In the event Seller elects, in its sole discretion, to cure one or more Title Defects after Closing, Seller shall deliver a written notice to Buyer prior to Closing identifying the Title Defects that Seller have elected to cure (the “Cure Notice”). If Seller timely delivers a Cure Notice, the Tract or Tracts affected by the Title Defects described in the Cure Notice shall be retained by Seller at Closing, and subject to Section 3.2(d), the Purchase Price shall be reduced by the Allocated Value of the Tract or Tracts so retained by Seller. Seller shall be permitted, but shall not be obligated, to attempt to cure such Title Defects for a period of ninety (90) days after Closing (such period, the “Cure Period”), during which time, Buyer shall cooperate with Seller in connection with any such attempts by Seller to so cure. In the event that Seller cures any such Title Defect during the Cure Period, subject to Section 3.2(g), (i) Seller shall promptly notify Buyer that the Title Defect has been cured, (ii) Buyer shall pay to Seller an amount in cash equal to the amount by which the Purchase Price (including the portion of such adjustment accounted for in Shares pursuant to Section 2.4(d)) was reduced at Closing with respect to such excluded Assets (or portion thereof) (the “Delayed Closing Date”), in accordance with the terms of this Agreement, and (iii) Seller shall convey the Assets so excluded at Closing on the Delayed Closing Date pursuant to an instrument effective as of the Effective Time substantially in the same form as the Conveyance. 

(g)Title Adjustments; Dispute Resolution.

(i)Seller and Buyer shall attempt to agree in writing on all alleged Title Defects and alleged Title Credits, the appropriate adjustment amounts for such alleged Title Defects and alleged Title Credits and the sufficiency of any cure of any such alleged Title Defects (any disagreement regarding the foregoing, a “Title Dispute”) prior to Closing.

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(ii)If Seller and Buyer agree in writing prior to Closing on the existence of any Title Defect or Title Credit and the Title Defect Amount or Title Credit Amount in respect thereof, then subject to Section 3.2(d), the Purchase Price shall be reduced at Closing by the aggregate sum of all agreed Title Defect Amounts and the Purchase Price shall be increased at Closing by the aggregate sum of all agreed Title Credit Amounts.

(iii)If Seller and Buyer are unable to agree in writing prior to Closing on any Title Dispute, and if Seller does not elect to cure under Section 3.2(f), then (i) the the Tract or Tracts affected by the unresolved Title Defects shall nevertheless be conveyed to Buyer at the Closing, (ii) subject to Section 3.2(d), the Purchase Price shall be reduced by the Title Defect Amount for such Title Defect, as alleged by Buyer, and (iii) the Title Dispute shall be exclusively and finally resolved under Section 3.2(g)(iv). The final determination of any disputed Title Defect or Title Defect Amount by the Parties or by the Title Consultant in accordance with the procedures set forth in Section 3.2(g)(iv) shall be reflected in the Final Settlement Statement.

(iv)If the Parties are unable to agree in writing as to any matters that constitute Title Disputes within 30 days following the expiration of the Cure Period, then the Title Disputes shall be exclusively and finally resolved by arbitration to be conducted in Dallas, Texas, by an independent title attorney licensed in the State of Louisiana or Texas, as applicable, with at least 15 years’ experience in oil and gas title involving properties in Louisiana or Texas, as applicable (the “Title Consultant”), selected by: (i) mutual written agreement of Buyer and Seller; or (ii) absent such agreement, by the Dallas office of the American Arbitration Association (the “AAA”); provided, however, that such Title Consultant must (A) have not been employed by any Party (or its Affiliate) in the past ten (10) years, and (B) have no ethical conflict in serving as the Title Consultant. If there is more than one disputed title matter, all such disputes shall be consolidated into the same arbitration process pursuant to this Section 3.2(g). Seller and Buyer shall each present to the Title Consultant, with a simultaneous copy to the other Party, a single written statement of its position on the defect or benefit in question, together with a copy of this Agreement and any supporting material that such Party desires to furnish, not later than the tenth (10th) Business Day after appointment of the Title Consultant. The Title Consultant, once appointed, shall have no ex parte communications with any of the Parties concerning the determination required under this Section 3.2(g). All communications between any Party or its Affiliates and the Title Consultant shall be conducted in writing, with copies sent simultaneously to the other Parties in the same manner, or at a meeting or conference call to which each of the Parties and their respective Representatives have been invited and of which such Parties have been provided at least five (5) days’ notice. In no event shall the Title Consultant select an amount (x) for any upward adjustment to the Purchase Price that is greater than Seller’s proposed amount or less than Buyer’s proposed amount or (y) for any downward adjustment to the Purchase Price that is greater than Buyer’s proposed amount or less than Seller’s proposed amount. Within thirty (30) days after receipt of such materials and after receipt of any additional information required by the Title Consultant, the Title Consultant shall make its determination, which shall be in accordance with the terms of this Agreement and shall be final and binding upon the Parties, without right of appeal, absent Fraud or manifest error. The Title Consultant may not award damages, interest or penalties to either Buyer or Seller with respect to any matter. Seller and Buyer shall each bear their own respective legal fees and other costs of presenting its case. Seller shall bear fifty percent (50%) and Buyer shall bear fifty percent (50%) of the costs and expenses of the Title Consultant. If the Title Consultant determines that no Title Defect or Title Credit, as applicable, exists on an Asset, then after the Title Consultant delivers 

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written notice to Seller and Buyer of his or her award with respect to such Title Defect or Title Credit, as applicable, the matter shall be deemed resolved and no adjustment shall be made on account of such asserted Title Defect or Title Credit, as applicable. If the Title Consultant determines that a Title Defect or Title Credit, as applicable, exists on an Asset, then the Title Consultant will deliver written notice to Seller and Buyer of his or her award with respect to such Title Defect or Title Credit, as applicable, and such awards shall be reflected in the Final Settlement Statement.

Article 4
SELLER’S REPRESENTATIONS AND WARRANTIES

As of the Execution Date and the Closing Date, each Seller represents and warrants to Buyer that, except as set forth on the Disclosure Schedules:

4.1Organization.

 Seller is duly formed, validly existing and in good standing under the laws of the jurisdiction of its formation, with full limited partnership or limited liability company power and authority, respectively, to enter into this Agreement and perform its obligations under this Agreement.

4.2Qualification.

 Seller is duly qualified to do business and is in good standing in each jurisdiction in which the nature of its business as now conducted makes such qualification necessary.

4.3Power; No Conflict.

 Seller has all requisite power and authority to carry on its business as presently conducted, to enter into this Agreement, each Ancillary Agreement to which it is a party and to consummate the transactions contemplated by this Agreement and each Ancillary Agreement and perform its obligations under this Agreement and each Ancillary Agreement. The execution and the delivery of this Agreement does not, the consummation of the transactions contemplated by this Agreement by Seller does not, and the fulfillment of and compliance with the terms and conditions of this Agreement will not: (a) conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, (b) give rise to a right of termination, modification, revocation, cancellation or acceleration of any obligation or to the loss of a benefit under or (c) result in the creation of any claim upon any of the Assets or any Party under, in each case, any provision of (i) the organizational documents of Seller, (ii) any applicable Law or (iii) any contract or instrument (including any judgment, decree or order) to which Seller is directly a party or by which it is bound or that otherwise relates to any of the Assets, except any matters described in clauses (ii) and (iii) which would not reasonably be expected to have a Material Adverse Effect.

4.4Authorization and Enforceability.

 Seller’s execution, delivery and performance of or under this Agreement and the Ancillary Agreements to which it is a party have been duly and validly authorized and approved by all necessary limited liability company actions. This Agreement constitutes, and each Ancillary Agreement to which Seller is a party constitutes or will constitute at Closing, Seller’s legal, valid and binding obligation, enforceable in accordance with its terms, subject, however, to the effects of bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and other applicable Laws for the protection of creditors, as well as to general principles of equity, regardless whether such enforceability is considered in a Proceeding in equity or at Law.

4.5Liability for Brokers’ Fees.

 Neither Seller nor its Affiliates (or other related Persons) have incurred any liability, contingent or otherwise, for investment bankers’, brokers’ or finders’ fees relating to the transactions contemplated by this Agreement for which Buyer or its Affiliates shall have any responsibility whatsoever.

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4.6Foreign Person.

 Such Seller (or its regarded owner if such Seller is a disregarded entity for federal income Tax purposes) is not a “foreign person” within the meaning of Section 1445 of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations promulgated thereunder.

4.7No Bankruptcy.

 There are no bankruptcy Proceedings pending, being contemplated by or threatened against Seller.

4.8Litigation.

 Except as set forth in Section 4.8 of the Disclosure Schedules, (a) there are no Proceedings relating to the Assets, or that challenge or impair Seller’s ability to enter into this Agreement or the Ancillary Agreements, or to consummate the transactions contemplated hereby and thereby that are pending in any court or by or before any Governmental Authority in which Seller is a party; and (b) no Proceeding relating to this transaction or the Assets, or that challenges or impairs Seller’s ability to enter into this Agreement or the Ancillary Agreements or to consummate the transactions contemplated hereby and thereby, has been threatened against Seller (or any of its Affiliates). Seller is not in default under any order, writ, injunction or decree of any Governmental Authority applicable to them or any of the Assets, and there are no unsatisfied judgments or injunctions issued by a Governmental Authority outstanding against Seller related to the Assets.

4.9Taxes.

 Except as set forth on Section 4.9 of the Disclosure Schedules,

(a)all Tax Returns required to be filed by such Seller with respect to Asset Taxes due and payable during such Seller’s ownership of the Assets have been timely filed and all Asset Taxes reported on such Tax Returns have been duly paid; 

(b)there are no audits, investigations, litigation or other proceedings with respect to Asset Taxes pending, or threatened in writing, against such Seller;

(c)there are no Encumbrances on any of the Assets attributable to Taxes other than statutory liens for Taxes that are not yet due and payable or that are being contested in good faith by appropriate actions; and

(d)none of the Assets owned by such Seller is subject to any Tax partnership agreement or is otherwise treated, or required to be treated, as held in an arrangement requiring a partnership income Tax Return (other than partnership income Tax Returns required to be filed by such Seller) to be filed under Subchapter K of Chapter I of Subtitle A of the Code.

4.10Consents; Preferential Rights; Non-Competes.

 There are no consents that are required to be obtained in connection with the transfer and conveyance of the Assets to Buyer which expressly provide that the failure to obtain such consent would render the assignment void, or would trigger an obligation of Seller to pay liquidated damages or cause termination or loss of the affected Asset. There are no rights of first refusal, preferential purchase rights, options or other similar provisions to which the Assets are subject that are triggered in connection with the execution of this Agreement by Seller. No Asset is subject to any non-compete or area of mutual interest agreements.

4.11Contracts and Leases.

 (a) All Material Contracts are listed in Section 4.11 of the Disclosure Schedules, and full copies of each Material Contract in Seller’s or its Affiliates’ possession have been made available to Buyer prior to the Execution Date, (b) all Material Contracts and Leases are in full force and effect, and each Material Contract and Lease constitutes the legal, valid and binding obligation of Seller, on the one hand, and to Seller’s Knowledge, the counterparties thereto, on the other hand, and is enforceable in accordance with its terms, (c) no Seller is in default or otherwise in breach with respect to any of Seller’s obligations under any of such Material Contracts or Leases, (d) to Seller’s Knowledge, no other Person is 

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in default or, to Seller’s Knowledge, otherwise in breach with respect to such Person’s obligations under such Material Contracts or Leases, and (e) no event has occurred that with notice or lapse of time or both would constitute any default under any such Material Contract or Lease by Seller or, to Seller’s Knowledge, by any other Person who is a party to such Material Contract or Lease. No Seller has received or given any unresolved written notice of default or termination with respect to any Material Contract or Lease.

4.12Payment of Royalties; No Suspense Accounts; No Deferred Payments.

 To Seller’s Knowledge, there are no monies being held in suspense that are otherwise payable to Seller in respect of (a) any royalty payments, lease rentals, delay rentals, shut-in royalties or other payments under any of the Leases, or (b) the overriding royalty payments relating to the Overriding Royalty Interests. Seller owes no bonus, deferred purchase price or other acquisition costs, whether contingent or liquidated, on any of the Assets.

4.13Environmental Matters.

 Except as set forth on Section 4.13 of the Disclosure Schedules, (a) to Seller’s Knowledge, Seller is in compliance with all Environmental Laws to the extent pertaining to the ownership of the Assets, (b) there are no civil, criminal, or administrative actions or notices pending or, to Seller’s Knowledge, threatened in writing against Seller under any Environmental Law, in each case, of which Seller has received notice, that are related to the Assets or the operations on the Leases, (c) Seller has not entered into any agreements, consents, orders, decrees or judgments with any Governmental Authorities based on any prior violations of Environmental Laws, or any material Losses thereunder, that relate to the future use of the Assets and that require any future remediation, (d) Seller has not received notice from any Governmental Authority that any of the Assets are the subject of any remediation, removal, clean-up, response action, enforcement action or order regarding any actual or alleged presence or release of Hazardous Substances that has not been finally resolved, and (e) there are no pending or, to Seller’s Knowledge, threatened claims, demands, written notices of violation or liability or Proceedings under any Environmental Laws that individually or in the aggregate would reasonably be expected to be material to the value of any Asset.

4.14No Cost-Bearing Interests.

 Except as set forth in Section 4.14 of the Disclosure Schedules, the Assets do not include any interests which obligate Seller owning such Assets to bear a share of drilling, operating or any other costs of production or development.  

4.15Condemnation.

 There is no actual or, or to Seller’s Knowledge, threatened taking (whether permanent, temporary, whole or partial) of any part of the Assets by reason of condemnation or the threat of condemnation. 

4.16Investment Intent.

 Seller is (i) an experienced and knowledgeable investor, (ii) able to bear the economic risks of the acquisition and ownership of the Shares and (iii) capable of evaluating (and has evaluated) the merits and risks of investing in the Shares and its acquisition and ownership thereof. Seller is an “accredited investor,” as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act, and is acquiring the Shares for its own account for investment purposes and not with a view to a sale or distribution thereof in violation of the Securities Act, and the rules and regulations thereunder or any other securities Laws. Seller acknowledges and understands that (a) the acquisition of the Shares has not been registered under the Securities Act in reliance on an exemption therefrom, and (b) the Shares will, upon its acquisition by Seller, be characterized as “restricted securities” under state and federal securities Laws and may not be sold, transferred, offered for sale, pledged, hypothecated, or otherwise disposed of, except pursuant to an effective registration statement under the Securities Act or pursuant to an exemption from the registration requirements of the Securities Act, and in compliance with applicable state and federal securities Laws. To the extent certificates are issued representing the Shares, it is understood that such certificates will bear a legend in substantially the following form: “These securities have not been registered under the Securities Act. These securities may not be sold, offered for sale, pledged or 

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hypothecated in the absence of a registration statement in effect with respect to the securities under the Securities Act or in a private transaction pursuant to an exemption from registration thereunder and, in the case of a transaction exempt from registration, unless sold pursuant to Rule 144 under the Securities Act or the issuer has received documentation reasonably satisfactory to it that such transaction does not require registration under the Securities Act.”

Article 5
BUYER’S REPRESENTATIONS AND WARRANTIES

As of the Execution Date and the Closing Date, Buyer represents and warrants to Seller that:

5.1Organization.

 Buyer is duly formed, validly existing and in good standing under the laws of the jurisdiction of its formation, with full power and authority to enter into this Agreement and perform its obligations under this Agreement.

5.2Qualification.

 Buyer is duly qualified to do business and is in good standing in each jurisdiction in which the nature of its business as now conducted makes such qualification necessary, except where the failure to be so qualified or in good standing would not materially hinder or impede the consummation by Buyer of the transactions contemplated by this Agreement.

5.3Power.

 Buyer has all requisite power and authority to carry on its business as presently conducted, to enter into this Agreement, each Ancillary Agreement to which it is a party and to consummate the transactions contemplated by this Agreement and the Ancillary Agreements and perform its obligations under this Agreement and the Ancillary Agreements. The execution and delivery of this Agreement does not, and the fulfillment of and compliance with the terms and conditions of this Agreement (including the issuance of Shares to Seller) will not: (a) conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, (b) give rise to a right of termination, modification, revocation, cancellation or acceleration of any obligation or to the loss of a benefit under or (c) result in the creation of any claim upon any of the Assets or any Party under, in each case, any provision of  (i) Buyer’s governing documents, (ii) any applicable Law or (iii) any contract or instrument (including any judgment, decree, order, statute, rule or regulation applicable to Buyer) to which Buyer or any of its subsidiaries is a party or by which any properties or assets of Buyer or its subsidiaries is bound. No authorization, consent or approval by, or filing with, any Governmental Authority is required for, or in connection with, the authorization, execution, delivery and performance by the Buyer of this Agreement or the consummation of the transactions contemplated by this Agreement and by the Ancillary Agreements; except any matters described in clauses (ii) and (iii) which would not reasonably be expected to have a Material Adverse Effect.

5.4Authorization and Enforceability.

 Buyer’s execution, delivery and performance of or under this Agreement and the Ancillary Agreements to which it is a party have been duly and validly authorized and approved by all necessary corporate actions. This Agreement constitutes, and each Ancillary Agreement to which Buyer is a party constitutes or will constitute at Closing, Buyer’s legal, valid and binding obligation, enforceable in accordance with its terms, subject, however, to the effects of bankruptcy, insolvency, reorganization, moratorium and other applicable Laws for the protection of creditors, as well as to general principles of equity, regardless whether such enforceability is considered in a Proceeding in equity or at Law.

5.5Liability for Brokers’ Fees.

 Buyer has not incurred and will not incur any liability, contingent or otherwise, for investment bankers’, brokers’ or finders’ fees relating to the transactions contemplated by this Agreement for which Seller shall have any responsibility whatsoever.

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5.6Litigation.

 There are no Proceedings pending, or to Buyer’s Knowledge, threatened against Buyer that would challenge or impair the ability of Buyer to enter into this Agreement or the Ancillary Agreements or that would have a Material Adverse Effect upon the ability of Buyer to consummate the transactions contemplated hereby.

5.7Knowledgeable Investor.

 Buyer is an experienced and knowledgeable investor in the oil and gas business and is sophisticated in the evaluation, purchase, ownership, and operation of oil and gas properties and related facilities. Buyer is not acquiring the Assets in connection with a distribution or resale thereof in violation of federal or state securities Laws and the rules and regulations thereunder.

5.8No Bankruptcy.

 There are no bankruptcy Proceedings pending, being contemplated by or threatened against Buyer.

5.9Capitalization.

 Buyer has, and at the Closing, will have, sufficient authorized shares of Common Stock to enable it to issue the Shares to Seller at the Closing. As of the date of this Agreement, the authorized capital stock of Buyer is 54,000,500 shares of Common Stock. As of November 2, 2021, there were 32,970,819 shares of Common Stock outstanding. All of the issued and outstanding shares of Common Stock are duly authorized and validly issued in accordance with the governing documents of Buyer, are fully paid and non-assessable, and were not issued in violation of any preemptive or similar right. As of August 13, 2021, Buyer had 2,121,363 shares of Common Stock reserved for issuance pursuant to various employee and director benefit plans less treasury shares, which includes the maximum number of shares issuable pursuant to such awards. Except for shares reserved for issuance pursuant to that certain At-the-Market Equity Offering Sales Agreement dated August 25, 2021 (the “ATM Offering”), Buyer has (i) no shares of Common Stock reserved for issuance except for the shares of Common Stock referenced in the preceding sentence and (ii) no preferred stock outstanding. Except as disclosed in the Buyer Reports (as defined below), as of the date of this Agreement, there are no preemptive or other outstanding rights, options, warrants, conversion rights, stock appreciation rights, redemption rights, repurchase rights, agreements, arrangements, calls, commitments or rights of any kind that obligate Buyer to issue or sell any shares of capital stock or other equity securities of Buyer or any securities or obligations convertible or exchangeable into or exercisable for, or giving any person a right to subscribe for or acquire, any equity securities of Buyer, and no securities or obligations evidencing such rights are authorized, issued or outstanding. Except as disclosed in the Buyer Reports, as of the date of this Agreement, Buyer does not have outstanding any bonds, debentures, notes or other obligations the holders of which have the right to vote (or convertible into or exercisable for securities having the right to vote) with the stockholders of Buyer on any matter. Buyer has no material indebtedness other than as described in the Buyer Reports.

5.10Valid Issuance.

 The Shares when issued pursuant to the terms of this Agreement will be duly authorized, validly issued, fully paid and non-assessable, will have the rights, preferences and privileges specified in Buyer’s governing documents, will not be issued in violation of any preemptive or similar rights and will, in the hands of Seller and its Affiliates, be free of any Encumbrances, other than restrictions on transfer pursuant to applicable securities Laws.

5.11Investment Company.

 Buyer is not now, and immediately after the issuance and sale of the Shares will not be, required to register as an “investment company” or a company “controlled by” an entity required to register as an “investment company” within the meaning of the Investment Company Act of 1940.

5.12Buyer Reports; Financial Statements.

 

(a)Buyer has filed or furnished, as applicable, all forms, statements, certifications, reports, contracts and documents required to be filed or furnished by it with the Securities and Exchange 

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Commission (the “Commission”) pursuant to the Exchange Act or the Securities Act since September 30, 2020, including (i) Buyer’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020 (the “Annual Report”) (ii) Buyer’s Quarterly Report on Form 10-Q for the fiscal quarters ended December 31, 2020, March 31, 2021 and June 30, 2021 (the “Quarterly Reports”), and (iii) Current Reports on Form 8-K (the forms, statements, certifications, reports and documents filed with or furnished to the Commission since September 30, 2020, including any amendments thereto, the “Buyer Reports”). As of their respective dates (or, if amended prior to the date of this Agreement, as of the date of such amendment), to Buyer’s Knowledge, the Buyer Reports did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading.

(b)The consolidated balance sheets, and related statements of income, cash flow and stockholder’s equity, included in the Annual Report, were prepared in accordance with GAAP, and fairly present in all material respects the financial positions and results of operations of Buyer and its subsidiaries at the dates and for the periods indicated. The consolidated balance sheets, and related statements of income, cash flow and stockholder’s equity, included in the Quarterly Reports, were prepared in accordance with GAAP, and fairly present in all material respects the financial positions and results of operations of Buyer and its subsidiaries at the dates and for the periods indicated. Since the filing of the 2020 Annual Report, except as disclosed in the Buyer Reports, to Buyer’s Knowledge, there has been no change in the condition (financial or otherwise) of Buyer and its subsidiaries, taken as a whole, that could reasonably be expected to individually or in the aggregate have a Material Adverse Effect on Buyer.

5.13Private Placement.

 Assuming the accuracy of Seller’s representations and warranties in Article 4, the issuance of the Shares by Buyer to Seller in the manner contemplated by this Agreement will be exempt from the registration requirements of the Securities Act by reason of Section 4(a)(2) thereof.

5.14No Integrated Offer

. Other than the private placement of Shares in connection with this Agreement, the ATM Offering and as otherwise disclosed in the Buyer Reports, from March 24, 2021 through the Execution Date, neither the Buyer, nor, to Buyer’s Knowledge, any of its Affiliates or any Person acting on its or their behalf, has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security.

5.15Listing Exchange.

 The Common Stock of Buyer is registered under Section 12(b) of the Exchange Act and is listed on the NYSE, and Buyer has not received any written notification that the Commission is contemplating terminating such registration or listing. Buyer has not, in the twelve (12) months preceding the Execution Date, received written notice from the NYSE or any other stock market or exchange to the effect that Buyer is not in compliance with the listing or maintenance requirements of such market or exchange (or any other notice of delisting), Buyer has not taken (and, to Buyer’s Knowledge, no Person has taken) any action designed to, or which to Buyer’s Knowledge, is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act.

Article 6
COVENANTS

6.1Pre-Closing Covenants.

 From and after the Execution Date and until the earlier to occur of the Closing and the termination of this Agreement in accordance with its terms, and subject to the terms of the Contracts and the Leases, Seller shall administer its Assets in a good and workmanlike manner consistent with its past practices (including, for the avoidance of doubt, the granting of leases and lease renewals in the ordinary course of business) and applicable Law, and shall carry on its business with respect to its interest in the Assets in substantially the same manner as before the Execution Date. Notwithstanding the foregoing, from and after the Execution Date and until Closing, no Seller shall, without Buyer’s prior 

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written consent, (a) transfer, sell, mortgage, pledge, abandon or dispose of any of the Assets other than the granting of leases and lease renewals in the ordinary course of business; (b) purchase or otherwise acquire any interests that are similar in type to any of the Interests; (c) amend, modify or terminate any Material Contract or enter into any Contract that would have been a Material Contract if it had been in effect on the Execution Date; or (d) agree, whether in writing or otherwise, to do any of the foregoing; provided that nothing in this Section 6.1 shall be construed to prevent or limit Seller from complying with applicable Laws or the terms of any existing Material Contract or Lease.

6.2Reasonable Efforts.

 Each Party agrees that it will not voluntarily undertake any course of action inconsistent with the provisions or intent of this Agreement and will use its Reasonable Efforts to take, or cause to be taken, all action and to do, or cause to be done, all things reasonably necessary, proper, or advisable under applicable Laws to consummate the transactions contemplated by this Agreement, including (a) cooperating in determining whether any consents, approvals, orders, authorizations, waivers, declarations, filings, or registrations of or with any Governmental Authority or third party are required in connection with the consummation of the transactions contemplated by this Agreement; (b) obtaining any consents, approvals, and registrations; (c) causing to be lifted or rescinded any injunction or restraining order or other order adversely affecting the ability of the Parties to consummate the transactions contemplated by this Agreement; (d) defending, and cooperation in defending, all Proceedings challenging this Agreement or the consummation of the transactions contemplated by this Agreement; and (e) executing any additional instruments necessary to consummate the transactions contemplated by this Agreement.

6.3Amendment of Disclosure Schedules.

 From time to time up to the earlier of the Closing Date or termination of this Agreement in accordance with the terms hereof, with respect to the representations and warranties of a Party made in this Agreement, the Parties shall have the right, by written notice to other Party, to promptly supplement or amend the Disclosure Schedules to reflect any event or circumstance that first came into existence after the Execution Date and would have been required to be set forth or described on one or more existing or new Disclosure Schedules if such event or circumstance was in existence on the Execution Date of this Agreement (for the avoidance of doubt, no revision or supplement of the Disclosure Schedules may be effected on account of obtaining knowledge after the Execution Date of an event or circumstance that first came into existence before the Execution Date); provided that any such supplement, amendment or addition shall not be deemed to have (a) cured any inaccuracy in or breach of any representation, warranty or covenant for purposes of determining whether or not the conditions set forth in Sections 8.1 or 8.2 (as applicable) have been met or (b) except with respect to a Subject Schedule Supplement, cured any inaccuracy in or breach of any representation, warranty or covenant for purposes of determining Seller’s indemnification obligations pursuant to Section 10.2 (and, for the avoidance of doubt, such liabilities will count against the Deductible). If any matter disclosed pursuant to any schedule supplement by Seller in accordance with this Section 6.3 gives rise to the right of Buyer to terminate this Agreement (such, a “Subject Schedule Supplement”) and Buyer nevertheless elects to proceed with the Closing, then such matters giving rise to the right of Buyer to terminate that are disclosed pursuant to any such Subject Schedule Supplement shall thereafter be incorporated into the Disclosure Schedules as if made on and as of the Execution Date, and Buyer’s remedies under Section 10.2(a) related to such matters disclosed in any such Subject Schedule Supplement shall be deemed waived by Buyer and Buyer shall not be entitled to make a claim pursuant to Section 10.2(a) with respect to such matters. 

6.4Limitations on Representations and Warranties.

 ALL ORAL INFORMATION OR MATERIALS, DOCUMENTS AND OTHER INFORMATION MADE AVAILABLE TO BUYER BY SELLER OR ANY OF THEIR REPRESENTATIVES AT ANY TIME IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY HAVE BEEN MADE AVAILABLE AS AN ACCOMMODATION AND HAVE BEEN PROVIDED ON AN “AS IS” BASIS. EXCEPT FOR THE EXPRESS AND SPECIFIC REPRESENTATIONS AND WARRANTIES OF SELLER IN Article 4, THE SELLER OFFICER CERTIFICATES, THE ANCILLARY AGREEMENTS OF SELLER 

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DELIVERED AT THE CLOSING AND THE SPECIAL WARRANTY, AS APPLICABLE, BUYER ACKNOWLEDGES THAT SELLER HAS NOT MADE, AND SELLER HEREBY EXPRESSLY DISCLAIMS AND NEGATES ANY OTHER REPRESENTATION OR WARRANTY (EXPRESS, IMPLIED, AT COMMON LAW, BY STATUTE OR OTHERWISE), INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AND FURTHER INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATION AND WARRANTIES RELATING TO (A) PRODUCTION RATES, RECOMPLETION OPPORTUNITIES, GEOLOGY, ENGINEERING, DECLINE RATES OR THE QUALITY, QUANTITY OR VOLUME OF THE RESERVES OF OIL AND GAS OR OTHER MINERALS, IF ANY, ATTRIBUTABLE TO THE ASSETS, (B) THE ACCURACY, COMPLETENESS OR MATERIALITY OF ANY INFORMATION, DATA OR OTHER MATERIALS (WRITTEN OR ORAL) NOW, HERETOFORE OR HEREAFTER FURNISHED TO BUYER BY OR ON BEHALF OF SELLER, AND (C) THE ENVIRONMENTAL CONDITION OF THE ASSETS. SELLER AND BUYER AGREE THAT, TO THE EXTENT REQUIRED BY APPLICABLE LAW TO BE EFFECTIVE, THE DISCLAIMERS OF CERTAIN WARRANTIES CONTAINED IN THIS SECTION ARE “CONSPICUOUS” DISCLAIMERS FOR THE PURPOSES OF ANY APPLICABLE LAW, RULE OR ORDER.

6.5Post-Closing Obligations.

 If Closing occurs, Seller and Buyer have the following post-Closing obligations:

(a)Property Records. Within thirty (30) days after Closing, Seller shall deliver (at Seller’s cost and expense) the Records (which may be in the form of original records or electronic copies) to Buyer at the address of Buyer. With respect to any original Records delivered to Buyer, Seller shall be entitled to retain copies of such Records, and Buyer shall preserve and retain any such original Records for at least seven (7) years beyond the Closing Date.  During such seven (7) year period, Seller shall be entitled to obtain access to such Records, at reasonable business hours and upon prior notice to Buyer, so that Seller may make copies of such original Records, at Seller’s expense (and Seller shall maintain the strict confidentiality of any Records of which it retains any copies), including as may be reasonable or necessary in connection with any Proceeding or threatened Proceeding against Seller. 

(b)Recording and Filing. Buyer, within thirty (30) days after Closing, shall use Reasonable Efforts to: (i) record the Conveyance and all other instruments that must be recorded to effectuate the transfer of the Assets; and (ii) file for approval with the applicable federal, state or local agencies the Conveyance (to the extent required by applicable Law) and all other federal, state or local transfer documents required to effectuate transfer of the Assets. Buyer shall provide Seller a recorded copy of the Conveyance and other recorded instruments, and approved copies of the Conveyance and other federal, state or local transfer documents, promptly after they are available.

(c)Special Warranty. Subject to Section 10.3, the Conveyance delivered at Closing shall provide that Seller will warrant and defend Defensible Title to the Assets against whomsoever lawfully claims the same or any part thereof solely to the extent a claim is brought by, through or under Seller or any of its Affiliates but not otherwise (the “Special Warranty”). To the extent Seller may legally assign such rights and grant such subrogation, Buyer shall have all rights of legal subrogation to third party claims or Seller claims asserted or held by that third party or by Seller arising from or related to the Special Warranty. 

(d)SEC Reports. From and after the Execution Date and until the filing of Buyer’s Annual Report on Form 10-K for the year ended September 30, 2022 (the “Records Period”), Seller shall, and shall cause its Affiliate and their respective Representatives to, provide reasonable cooperation to Buyer, its Affiliates and their agents and Representatives in connection with Buyer’s or its Affiliates’ filings, if any, that are required by the Commission, under securities laws applicable to Buyer and its 

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Affiliates (collectively, the “Filings”). During the Records Period, Seller shall make available to Buyer and its Affiliates and their Representatives any and all books, records, information and documents to the extent such books, records, information and documents are attributable to the Assets and in any of Seller’s or its Affiliates’ possession or control and accessible, on reasonable notice, to Seller’s and its Affiliates’ respective personnel during regular business hours, in each case as reasonably required by Buyer, its Affiliates and their Representatives in order to prepare, if required, in connection with the Filings, financial statements meeting the requirements of Regulation S-X under the Securities Act along with any documentation attributable to the Assets required to complete any audit associated with such financial statements, which records and information shall include, for the avoidance of doubt, lease operating statements for the lesser of the 24-month period prior to the Execution Date or the actual time periods in which Seller has owned the Assets. During the Records Period, Seller shall, and shall its Affiliates to, provide reasonable cooperation to the independent auditors chosen by Buyer (“Buyer’s Auditor”) in connection with any audit by Buyer’s Auditor of any financial statements of Seller or its Affiliates insofar and only insofar as the Assets are concerned with respect to which Buyer or any of its Affiliates reasonably requires to comply with the requirements of the Securities Act or the Securities Exchange Act of 1934, as amended, with respect to any Filings. During the Records Period, Seller and its Affiliates shall retain all books, records, information and documents relating to the Assets, to the extent in Seller’s possession or control, for the three (3) fiscal years prior to the Closing Date. Buyer shall pay, or cause to be paid, all reasonable documented third party out-of-pocket costs and expenses incurred in connection with any audit performed by Buyer in connection with Buyer’s rights under, and Seller’s compliance with, this Section 6.5(d) (expressly excluding Seller’s and its Affiliates’ internal general and administrative expenses).

6.6Exclusivity.

 From and after the Execution Date and until the earlier to occur of the Closing and the termination of this Agreement in accordance with its terms: (a) Seller shall not, directly or indirectly through any of its Affiliates or any of its or their respective Representatives, (i) encourage, solicit, initiate, facilitate or continue inquiries regarding bids, offers, inquiries or proposals from any Person (other than Buyer and its designees, agents and all their respective Affiliates) with respect to the sale, transfer or disposition of all or any portion of the Assets (“Acquisition Proposals”), (ii) enter into discussions or negotiations with, or provide any information to, any Person concerning a possible Acquisition Proposal or (iii) enter into any agreements or other instruments (whether or not binding) regarding an Acquisition Proposal; (b) Seller shall immediately cease and cause to be terminated, and shall cause its Affiliates and all of its and their Representatives to immediately cease and cause to be terminated, all existing discussions or negotiations with any Persons with respect to, or that could lead to, an Acquisition Proposal; and (c) Seller shall promptly provide Buyer with notice of any unsolicited Acquisition Proposals received by Seller.

6.7Listing.

 Buyer shall use Reasonable Efforts to cause the Shares to be approved for listing on NYSE, subject to official notice of issuance, as promptly as practicable after the date hereof, and in any event on or prior to the Closing Date.

6.8Registration Rights.

(a) Buyer shall (i) within two (2) days after the Closing Date, provide (by email being sufficient) Seller with a Selling Stockholders Questionnaire, substantially in the form of Exhibit B, which such Questionnaire shall contain the selling stockholder information needed from Seller pursuant to the applicable requirements of the Securities Act in connection with Buyer’s preparation of the Registration Statement (as defined below) and (ii) within thirty (30) days of receiving such information requested pursuant to the foregoing clause (i) (which period shall be tolled due to any delays occurring from additional follow-up information, questions or clarifications reasonably requested by Buyer to Seller as are necessary for the purposes of completing the Registration Statement), or if Buyer does not provide such Selling Stockholders Questionnaire within two (2) days after the Closing Date in accordance with the foregoing clause (i), thirty (30) days after the Closing Date (the “Filing Deadline”), prepare and file a Shelf Registration Statement with the Commission to permit the public resale of all Shares issued to Seller hereunder (a “Registration Statement”). The Registration Statement filed with the Commission pursuant 

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to this Section 6.8 shall be on Form S-3 or, if Form S-3 is not then available to Buyer, on Form S-1 or such other form of registration statement as is then available to effect a registration for resale of the Shares and shall contain a prospectus in such form as to permit Seller to sell such Shares pursuant to Rule 415 under the Securities Act (or any successor or similar provision adopted by the Commission then in effect) at any time beginning on the date such Registration Statement is declared effective by the Commission (the “Effectiveness Date”). Buyer shall provide a draft of the Registration Statement to Seller for review at least three (3) Business Days in advance of filing the Registration Statement. Buyer shall use its Reasonable Efforts to cause a Registration Statement filed pursuant to this Section 6.8 to be declared effective as soon as reasonably practicable thereafter (the “Effectiveness Deadline”). Until the earlier of (i) the third anniversary of the Effectiveness Date and (ii) the date on which Seller cease to hold any Shares issued hereunder, Buyer shall use its reasonable best efforts to cause a Registration Statement filed pursuant to this Section 6.8 to remain effective, and to be supplemented and amended to the extent necessary to ensure that such Registration Statement is available or, if not available, that another registration statement is available for the resale of the Shares. When effective, a Registration Statement (including the documents incorporated therein by reference) will comply as to form in all material respects with all applicable requirements of the Securities Act and the Exchange Act and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any prospectus contained in such Registration Statement, in the light of the circumstances under which a statement is made). Seller shall not be identified as a statutory underwriter in any Registration Statement unless in response to a comment or request from the staff of the Commission or another regulatory agency; provided, however, that if the Commission requests that Seller be identified as a statutory underwriter in the Registration Statement, Seller will have an opportunity to withdraw from the Registration Statement. For purposes of this Section 6.8, the term “Shares” includes any equity security of Buyer issued or issuable with respect to the Shares issued hereunder by way of share split, dividend, distribution, recapitalization, merger, exchange, replacement or similar event or otherwise. 

(b)Seller acknowledges and agrees that Buyer may suspend the use of a Registration Statement if it determines (i) that the use of such Registration Statement would require the inclusion of financial statements that are unavailable for issue for reasons beyond Buyer’s control, or (ii) that in order for such Registration Statement not to contain a material misstatement or omission, an amendment thereto would be needed to include information that would at that time not otherwise be required in a current, quarterly, or annual report under the Exchange Act; provided, that (x) Buyer shall not so delay filing or so suspend the use of the Registration Statement on more than two (2) occasions or for a period of more than sixty (60) consecutive days or more than a total of one hundred-twenty (120) calendar days, in each case in any three hundred sixty (360)-day period, (y) Buyer shall have a bona fide business purpose for not making such information public and (z) Buyer shall use Reasonable Efforts to make such Registration Statement available for the sale by Seller of such securities as soon as practicable thereafter.

(c)Buyer shall notify Seller within three (3) Business Days (email being sufficient): (i) when a Registration Statement or any post-effective amendment thereto has become effective; (ii) of the issuance by the Commission of any stop order suspending the effectiveness of any Registration Statement or the initiation of any Proceedings for such purpose; (iii) of the receipt by Buyer of any notification with respect to the suspension of the qualification of the Shares included therein for sale in any jurisdiction or the initiation or threatening of any Proceeding for such purpose; and (iv) of a suspension pursuant to Section 6.8(b) or the occurrence of any event that requires the making of any changes in any Registration Statement or prospectus so that, as of such date, the statements therein are not misleading and do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading (provided that any such notice pursuant to this Section 6.8(c) shall solely provide that the use of the Registration Statement or prospectus has been suspended without setting forth the reason for such suspension and shall not contain any material non-public information regarding Buyer). Buyer shall use its Reasonable Efforts to, as 

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applicable, (x) obtain the withdrawal of any order suspending the effectiveness of any Registration Statement as soon as reasonably practicable and (y) as soon as reasonably practicable prepare a post-effective amendment to such Registration Statement or a supplement to the related prospectus, or file any other required document so that, as thereafter delivered to purchasers of the Shares included therein, such prospectus will not include any untrue statement, or alleged untrue statement, of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

(d)Buyer agrees to indemnify and hold harmless, to the extent permitted by law, Seller, Seller’s directors, and officers, employees, and agents, and each Person who controls Seller (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and each Affiliate of Seller (within the meaning of Rule 405 under the Securities Act) from and against any and all losses, claims, damages, liabilities and expenses (including, without limitation, any reasonable attorneys’ fees and expenses incurred in connection with defending or investigating any such action or claim) caused by any untrue statement, or alleged untrue statement, of a material fact contained in any Registration Statement, prospectus included in any Registration Statement or preliminary prospectus or any amendment thereof or supplement thereto or any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as and to the extent, but only to the extent, the same are caused by or contained in any information regarding Seller furnished in writing to Buyer by or on behalf of Seller expressly for use therein.

(e)Seller agrees to indemnify and hold harmless Buyer, its directors and officers and agents and employees and each Person who controls Buyer (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) against any losses, claims, damages, liabilities and expenses (including, without limitation, reasonable attorneys’ fees) resulting from any untrue statement, or alleged untrue statement, of a material fact contained in the Registration Statement, or any form of prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission of a material fact required to be stated therein (in the case of any prospectus, or any form of prospectus or preliminary prospectus or supplement thereto, in light of the circumstances under which they were made) or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission, or alleged untrue statement or omission, is contained in any information or affidavit so furnished in writing by Seller expressly for use therein. In no event shall the liability of Seller be greater in amount than the aggregate value of the Shares under Section 2.2 hereof.

(f)Any person entitled to indemnification pursuant to this Section 6.8 shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to give prompt notice shall not impair any person’s right to indemnification hereunder to the extent such failure has not materially prejudiced the indemnifying party) and, (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties exists with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent shall not be unreasonably withheld, conditioned or delayed). An indemnifying party who is not entitled to, or elects not to assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of legal counsel to any indemnified party a conflict of interest exists between such indemnified party and any other of such indemnified parties with respect to such claim. No indemnifying party shall, without the consent of the indemnified party, consent to the entry of any judgment or enter into any settlement which cannot be settled in all respects by the payment of money (and such money is so paid by the indemnifying party pursuant to the terms of such settlement) or which settlement includes a statement or admission of fault and culpability 

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on the part of such indemnified party or which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation.

(g)Buyer shall pay all expenses incident to Buyer’s performance under or compliance with this Section 6.8 and all such expenses to effect the registration of the Shares on a Registration Statement, including, without limitation, all registration, filing, securities exchange listing and NYSE fees, all registration, filing, qualification and other fees and expenses of complying with securities or blue sky laws, fees of the Financial Industry Regulatory Authority, Inc., fees of transfer agents and registrars, all word processing, duplicating and printing expenses, any transfer taxes, and the fees and disbursements of counsel and independent public accountants for Buyer. Seller shall pay all selling commissions allocable to the sale of the Shares, transfer taxes and fees and disbursements of counsel to Seller in connection with the preparation and filing of the Registration Statement.

 

Article 7
TAX MATTERS

7.1Transfer Taxes.

 All required documentary, filing and recording fees and expenses incurred in connection with the filing and recording of the assignments, conveyances or other instruments required to convey title to the Assets to Buyer shall be borne by Buyer. If any Transfer Taxes are imposed on the transfer of the Assets to Buyer, Buyer shall bear and pay any such Transfer Taxes. Seller and Buyer shall reasonably cooperate in good faith to minimize, to the extent permissible under applicable Law, the amount of any such Transfer Taxes.

7.2Asset Taxes.

(a)The applicable Seller shall be allocated all Asset Taxes attributable to (i) any Tax period ending prior to the Effective Time and (ii) the portion of any Straddle Period ending immediately prior to the Effective Time. Buyer shall be allocated and bear all Asset Taxes attributable to (A) any Tax period beginning after the Effective Time and (B) the portion of any Straddle Period beginning at the Effective Time. Buyer shall be responsible for payment to the applicable Governmental Authorities of all Asset Taxes that become due and payable, and the filing of all Tax Returns for Asset Taxes that become due, on or after the Closing Date.

(b)For purposes of determining the allocations described in Section 7.2(a), (i) Asset Taxes that are based upon income, sales, revenue or similar items (other than Asset Taxes described in clause (ii) or (iii) below) shall be allocated to the period in which the transaction giving rise to such Asset Taxes occurred, (ii) Asset Taxes that are ad valorem, property or similar Asset Taxes imposed on a periodic basis pertaining to a Straddle Period shall be allocated between the portion of such Straddle Period ending immediately prior to the Effective Time and the portion of such Straddle Period beginning at the Effective Time based on the number of days in the applicable Straddle Period that occur before the date on which the Effective Time occurs, on the one hand, and the number of days in such Straddle Period that occur on or after the date on which the Effective Time occurs, on the other hand, and (iii) Asset Taxes that are attributable to the severance or production of Hydrocarbons (other than Asset Taxes described in clause (ii) above) shall be allocated to the period in which the severance or production giving rise to such Asset Taxes occurred. For purposes of (A) the preceding sentence, any exemption, deduction, credit or other item that is calculated on an annual basis shall be allocated pro rata per day between the portion of the Straddle Period ending immediately prior to the Effective Time and the portion of the Straddle Period beginning at the Effective Time; and (B) clause (ii) of the preceding sentence, the period for such Asset Taxes shall 

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begin on the date on which ownership of the applicable Assets gives rise to liability for the particular Asset Tax and shall end on the day before the next such date.

(c)As provided in Article 2, the Purchase Price shall be adjusted for Asset Taxes allocable to each Party under Section 7.2(a) and Section 7.2(b). To the extent the actual amount of an Asset Tax is not known at the Final Settlement Date, Buyer and Seller shall utilize the most recent information available in estimating the amount of such Asset Tax for purposes of adjusting the Purchase Price under this Section 7.2(c). To the extent the actual amount of an Asset Tax (or the amount thereof paid or economically borne by a Party) is ultimately determined to be different than the amount (if any) that was taken into account for purposes of adjusting the Purchase Price under this Section 7.2(c), Seller shall pay Buyer, or Buyer shall pay Seller, as the case may be, within a commercially reasonable amount of time following written notice of such determination, any amount necessary to cause each of Seller and Buyer to bear its appropriate share of such Asset Tax as determined under this Section 7.2.

7.3Tax Allocation.

 The Parties agree that the Cash Consideration, the fair market value of the Shares on the Closing Date, and any other amounts treated as consideration for U.S. federal income Tax purposes shall be allocated among the Assets for U.S. federal and applicable state income Tax purposes in accordance with all applicable Treasury Regulations promulgated under Section 1060 of the Code, and to the extent allowed by applicable Law, in a manner consistent with the Allocated Values. The initial draft of such allocation shall be prepared by Buyer and shall be provided to Seller no later than thirty (30) days after the Final Settlement Date. The Parties shall then cooperate to prepare a final allocation, which also shall be materially consistent with the Allocated Values to the extent allowed by applicable Law. In the event that Seller and Buyer are not able to resolve all of the items in the allocation, all such unresolved items shall be determined by the Accounting Consultant in accordance with the procedures of Section 2.5(c), mutatis mutandis. The final allocation shall be updated to reflect any adjustments to the Purchase Price (and, correspondingly, the Shares) and any other amounts treated as consideration for U.S. federal income Tax purposes. The final allocation shall be used by Seller and Buyer as the basis for reporting asset values and other items, including preparing Internal Revenue Service Form 8594 (Asset Acquisition Statement under Section 1060), if required. Each Party agrees not to take any position inconsistent with such final allocation unless (a) required by Law or as required by final adjustment or settlement with any Governmental Authority or agency, in which case written notice of such change shall be provided to the other Party, or (b) with the consent of the other Party.

7.4Refunds of Taxes.

 Seller shall be entitled to any and all refunds of Taxes allocated to Seller under Section 7.2, and Buyer shall be entitled to any and all refunds of Taxes allocated to Buyer under Section 7.2. If a Party receives a refund of Taxes to which the other Party is entitled under this Section 7.4, the first Party shall promptly pay such amount to the other Party, net of any reasonable costs or expenses incurred by the first Party in procuring such refund.

7.5Cooperation.

 Seller and Buyer each agree to furnish or cause to be furnished to the other, upon request, as promptly as practicable, such information and assistance relating to the Assets, including access to books and records, as is reasonably necessary for the filing of all Tax Returns by Buyer or Seller, the making of any election relating to Taxes, the preparation for any audit by any taxing authority and the prosecution or defense of any claim, suit or Proceeding relating to any Tax attributable to the Assets.

Article 8
CONDITIONS PRECEDENT AND TERMINATION

8.1Conditions to Obligations of Seller.

 The obligations of Seller to consummate the transactions provided for in this Agreement are subject, at the option of Seller, to the fulfillment on or prior to the Closing of each of the following conditions:

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(a)(i) The Buyer Fundamental Representations shall be true and correct as of the Execution Date and as of the Closing Date as though made on and as of such date (other than representations and warranties that refer to a specified date, which need only be true and correct on and as of such specified date) and (ii) the representations and warranties of Buyer contained in this Agreement that are not Buyer Fundamental Representations shall be true and correct as of the Execution Date and as of the Closing Date as though made on and as of such date (other than representations and warranties that refer to a specified date, which need only be true and correct on and as of such specified date), except where all such breaches of the representations and warranties described in clause (ii) taken collectively would not have a Buyer Material Adverse Effect;

(b)Buyer shall have performed or complied in all material respects with all obligations, covenants and agreements contained in this Agreement as to which performance or compliance by Buyer is required prior to the Closing;

(c)Buyer shall deliver to the Seller a certificate signed by an officer of Buyer in his or her capacity as an officer of Buyer (and not individually), dated as of the Closing Date, certifying that the conditions specified in Section 8.1(a) and Section 8.1(b) have been fulfilled (the “Buyer Officer Certificate”);

(d)No material suit, action, litigation or other Proceeding instituted by any third party shall be pending before any Governmental Authority seeking to restrain, prohibit, enjoin or declare illegal, or seeking substantial damages in connection with, the transactions contemplated by this Agreement, and no statute, rule, regulation, executive order, decree, temporary restraining order, preliminary or permanent injunction, judgment or other order shall have been enacted, entered, promulgated, enforced or issued by any Governmental Authority preventing the consummation of the transactions contemplated by this Agreement; 

(e)Buyer shall be ready, willing and able to deliver to Seller, and shall have delivered to Seller, the closing deliverables to be delivered by Buyer in accordance with Section 9.2; and

8.2Conditions to Obligations of Buyer.

 The obligations of Buyer to consummate the transactions provided for in this Agreement are subject, at the option of Buyer, to the fulfillment on or prior to the Closing of each of the following conditions:

(a)(i) The Seller Fundamental Representations shall be true and correct on and as of the Execution Date and the Closing Date as though made on and as of such dates (other than representations and warranties that refer to a specified date, which need only be true and correct on and as of such specified date) and (ii) the representations and warranties of Seller contained in this Agreement that are not Seller Fundamental Representations shall be true and correct on and as of the Execution Date and the Closing Date as though made on and as of such dates (other than representations and warranties that refer to a specified date, which need only be true and correct on and as of such specified date), except where all such breaches of the representations and warranties described in clause (ii) taken collectively would not have a Seller Material Adverse Effect.

(b)Seller shall have performed or complied in all material respects all with all obligations, covenants and agreements contained in this Agreement as to which performance or compliance by Seller is required prior to the Closing.

(c)Seller shall deliver to Buyer a certificate signed by an officer of Seller in his or her capacity as an officer of Seller (and not individually), dated as of the Closing Date, certifying that the 

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conditions specified in Section 8.2(a) and Section 8.2(b) have been fulfilled (a “Seller Officer Certificate” and, together with the Buyer Officer Certificate, the “Officer Certificates”).

(d)No material suit, action, litigation or other Proceeding instituted by any third party shall be pending before any Governmental Authority seeking to restrain, prohibit, enjoin or declare illegal, or seeking substantial damages in connection with, the transactions contemplated by this Agreement, and no statute, rule, regulation, executive order, decree, temporary restraining order, preliminary or permanent injunction, judgment or other order shall have been enacted, entered, promulgated, enforced or issued by any Governmental Authority preventing the consummation of the transactions contemplated by this Agreement;

(e)Seller shall be ready, willing and able to deliver to Buyer, and shall have delivered to Buyer, the closing deliverables to be delivered by Seller in accordance with Section 9.2; and

8.3Frustration of Closing Conditions.

 Neither Buyer nor Seller may rely, either as a basis for not consummating the transactions contemplated in this Agreement or terminating this Agreement in accordance with this Agreement and abandoning the transactions contemplated in this Agreement, on the failure of any condition set forth in Section 8.1(a) or Section 8.1(b), or Section 8.2(a) or Section 8.2(b), as the case may be, to be satisfied if such failure was caused by such Party’s breach of any provision of this Agreement or failure of such Party or its Affiliate to act in good faith. 

8.4Termination.

 This Agreement may be terminated prior to Closing:

(a)by the mutual written consent of the Parties;

(b)by Seller, at its option, if any of the conditions set forth in Section 8.1 have not been satisfied on or before the Scheduled Closing Date and, following written notice thereof from Seller to Buyer specifying the reason such condition is unsatisfied (including any breach by Buyer of this Agreement), such condition remains unsatisfied for a period of ten (10) Business Days after Buyer’s receipt of written notice thereof from Seller;

(c)by Buyer, at its option, if any of the conditions set forth in Section 8.2 have not been satisfied on or before the Scheduled Closing Date and, following written notice thereof from Buyer to Seller specifying the reason such condition is unsatisfied (including any breach by Seller of this Agreement), such condition remains unsatisfied for a period of ten (10) Business Days after Seller’s receipt of written notice thereof from Buyer; 

(d)by Seller or Buyer, if the sum of all Title Defect Amounts for Title Defects asserted by Buyer in good faith on or before the Title Claims Date that exceed the Title Threshold exceeds ten percent (10%) of the unadjusted Purchase Price; 

(e)by Seller or Buyer if Closing shall not have occurred on or before the Scheduled Closing Date; or 

provided, however, that no Party shall have the right to terminate this Agreement under clauses (b), (c) or (e) above if (i) such Party is, at such time, in material breach of any provision of this Agreement, or (ii) the other Party has filed in good faith (and then solely for so long as such Party continues to diligently pursue) an action before a Governmental Authority seeking specific performance of such first Party’s obligation under this Agreement to consummate the Closing as permitted by Section 11.16.

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8.5Effect of Termination and Remedies.

(a)Seller’s Remedies. Subject to Section 8.5(c), prior to Closing, Seller’s sole and exclusive remedy for any breach by Buyer of this Agreement is (i) to seek specific performance of Buyer’s obligations under this Agreement in accordance with Section 11.17 or (ii) to terminate this Agreement in accordance with Section 8.4. Upon such termination, Seller shall be free immediately to enjoy all rights of ownership of the Assets and to sell, transfer, encumber or otherwise dispose of the Assets to any Person without any restriction under this Agreement. Subject to Section 8.5(c), prior to Closing, the remedies set forth in this Section 8.5(a) shall be Seller’s sole and exclusive remedies for Buyer’s default or Seller’s termination of this Agreement, and Seller hereby expressly waive and release all other remedies.

(b)Buyer’s Remedies. Subject to Section 8.5(c), prior to Closing, Buyer’s sole and exclusive remedy for any breach by Seller of this Agreement is (i) to seek specific performance of Seller’s obligations under this Agreement in accordance with Section 11.17 or (ii) to terminate this Agreement in accordance with Section 8.4 and Buyer will be entitled to recover its actual damages against Seller. Subject to Section 8.5(c), prior to Closing, the remedies set forth in this Section 8.5(b) shall be Buyer’s sole and exclusive remedies for Seller’s default or Buyer’s termination of this Agreement, and Buyer hereby expressly waives and releases all other remedies.

(c)Exceptions. Notwithstanding anything in this Agreement to the contrary, termination of this Agreement shall not prejudice or impair Seller’s or Buyer’s rights and obligations under the provisions of this Section 8.5, and all of Article 11 (other than Section 11.4), which shall survive the termination of this Agreement.

(d)No Other Remedies. Subject to (and except as otherwise provided in) the foregoing provisions in this Section 8.5, following any termination of this Agreement prior to Closing, no Party shall have any liability or obligation under this Agreement and Seller shall be free immediately to enjoy all rights of ownership of the Assets and to sell, transfer, encumber or otherwise dispose of the Assets to any Person without any restriction under this Agreement; provided however, in no event shall Seller dispose any of the Assets if (i) there are any actions or claims pending or litigation threatened as a result of any alleged breaches of the Agreement by Seller or (ii) Buyer is seeking specific performance pursuant to the terms of the Agreement.

Article 9
CLOSING

9.1Date and Place of Closing.

 

(a)Date of Closing. Subject to the satisfaction or waiver of the applicable conditions to Closing, the consummation of the transactions contemplated by this Agreement (the “Closing”) shall be held virtually and electronically on December 1, 2021 (such date, the “Scheduled Closing Date”): provided, that, if all conditions to Closing in Article 8 (other than those conditions that are only capable of being satisfied at Closing, but subject to all such conditions being satisfied or waived at Closing) have not been yet waived in writing or satisfied on or before the Scheduled Closing Date, then, subject to Section 8.4 (and without limiting Section 8.4(e)), the Closing shall occur within five (5) Business Days following the date on which all such conditions have been waived in writing or satisfied (other than those conditions that are only capable of being satisfied at Closing, but subject to all such conditions being satisfied or waived at Closing), or on such earlier or later date or at such other place or in such other manner as the Parties agree in writing. The date on which the Closing actually occurs is hereinafter referred to as the “Closing Date.” All events of Closing shall each be deemed to have occurred simultaneously with the other, regardless of when actually occurring and each will be a condition precedent to the other. If the Closing occurs, all 

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conditions of Closing shall be deemed to have been satisfied or waived (but Seller’s and Buyer’s warranties, representations, covenants and indemnities are not waived and will survive the Closing to the extent provided in Section 10.3).

(b)Place of Closing. Closing will take place remotely by electronic exchange of documents and signatures, or at such other place as mutually agreed upon by the Parties.

9.2Closing Obligations.

 At Closing:

(a)Seller and Buyer shall deliver to one another the Officer Certificates, as applicable;

(b)Seller and Buyer shall execute, acknowledge and deliver, with respect to all of the Assets, including the Mineral Interests, Royalty Interests, Overriding Royalty Interests, a deed and assignment effective as of the Effective Time substantially in the form of Exhibit C (the “Conveyance”);

(c)Seller and Buyer shall execute and deliver an acknowledgement of the Preliminary Settlement Statement;

(d)Buyer shall cause the Cash Consideration, as reflected in the Preliminary Settlement Statement and determined pursuant to Section 2.4 (and further subject to Section 2.2), to be paid by wire transfer of immediately available funds to the account(s) designated by Seller in writing; 

(e)Buyer shall cause the delivery of the Shares, based on the Closing Adjusted Purchase Price reflected in the Preliminary Settlement Statement and determined pursuant to Section 2.4 (and further subject to Section 2.2) using the Per Share Value, in book entry form, free and clear of all Encumbrances and restrictions, other than restrictions imposed by applicable securities Laws and the legend set forth in Section 4.16;

(f)Seller shall deliver to Buyer an executed certificate of non-foreign status that meets the requirements set forth in Treasury Regulations§ l.1445-2(b)(2), substantially in the form attached hereto as Exhibit D (the “FIRPTA Certificate”);

(g)each of the Persons listed in Section 9.2(g) of the Disclosure Schedule shall execute and deliver a lock-up agreement substantially in the form of Exhibit E (the “Lock-Up Agreement”) which such agreement shall exhibit a lock-up period of one hundred twenty (120) days (the “Lock-Up Period”); 

(h)Buyer shall have delivered to Seller a fully executed “supplemental listing application” approving the listing of the Shares by the NYSE; and

(i)Seller and Buyer shall execute and deliver any other agreements, instruments or documents which are expressly required by the other terms of this Agreement to be executed and delivered at the Closing.

Article 10
ASSUMPTION AND RETENTION OF OBLIGATIONS AND INDEMNIFICATION; DISCLAIMERS

10.1Buyer’s Assumption of Liabilities and Obligations.

 From and after Closing, subject to Seller’s obligations in Section 10.2(a), (a) Buyer shall assume and pay, perform, fulfill and discharge (or cause to be paid, performed, fulfilled and discharged) all claims, costs, expenses, liabilities and obligations (collectively, “Obligations”) of Seller, known or unknown, arising from, based upon, relating to or 

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associated with the Assets, or to the ownership or management of the Assets, arising on or after the Effective Time, in each case, other than the Retained Obligations (the “Assumed Liabilities”); provided that the Assumed Liabilities shall not include, and Seller shall retain all (and Buyer shall have no obligation with respect to any) Obligations arising from or related to the Retained Obligations. For the avoidance of doubt, any calculation or determination of any Obligations under this Agreement shall not include any measure of damages or theories of liability expressly waived by the Parties pursuant to Section 10.7.

10.2Indemnification.

(a)Seller’s Indemnification of Buyer. From and after Closing, subject to the limitations set forth in this Article 10 and Section 11.11 below, Seller shall jointly and severally be responsible for, pay on a current basis, and DEFEND, INDEMNIFY AND SAVE AND HOLD HARMLESS Buyer and its Affiliates, and its and their respective equityholders, partners, members, directors, officers, managers, employees, attorneys, consultants, agents and representatives (collectively, the “Buyer Indemnitees”), from and against all Losses and Obligations, whether or not incurred in the investigation or defense of any of the same or in asserting, preserving or enforcing any of their respective rights hereunder, arising directly or indirectly from, based upon, in connection with, related to, or that are associated with:

(i)Any breach by Seller of any of its representations and warranties contained in this Agreement;

(ii)Any breach by Seller of any of its covenants or agreements under this Agreement; 

(iii)Seller Taxes; and

(iv)the Retained Obligations. 

(b)Buyer’s Indemnification of Seller. From and after the Closing, subject to the limitations set forth in this Article 10 and Section 11.11 below, Buyer shall be responsible for, pay on a current basis, and DEFEND, INDEMNIFY AND SAVE AND HOLD HARMLESS Seller and its Affiliates, their respective equityholders, partners, members, directors, officers, managers, employees, attorneys, consultants, agents and representatives (collectively, the “Seller Indemnitees”), from and against all Losses and Obligations, whether or not incurred in the investigation or defense of any of the same or in asserting, preserving or enforcing any of their respective rights hereunder, arising directly or indirectly from, based upon, in connection with, related to, or that are otherwise associated with:

(i)any breach by Buyer of any of its representations or warranties contained in this Agreement;

(ii)any breach by Buyer of any of its covenants or agreements under this Agreement; and

(iii)the Assumed Liabilities.

(c)Limitations on Indemnity.

(i)Subject to and without limiting Section 11.16 or Section 6.8, following the Closing, except with respect to Special Warranty and Fraud, indemnification under this Section 10.2 or Section 6.8 shall be the sole and exclusive remedy available to each Party 

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(and in lieu of all other remedies) against the other Party for any claims arising out of or based upon the matters set forth in this Agreement and the transactions contemplated hereby, and (except as provided in Section 11.16) no Party shall seek relief against the other Party other than through the indemnification provided in this Section 10.2 or Section 6.8.

(ii)Seller shall not have any liability under Section 10.2(a)(i) for any individual Losses arising from breaches of representations and warranties (other than the Seller Fundamental Representations) unless such individual Loss exceeds an amount equal to $10,000 (the “Individual Claim Threshold”), and then only to the extent that the aggregate amount of all such Losses which meet the Individual Claim Threshold, collectively, exceed $150,000.00 (the “Deductible”), in which event Seller shall be liable for the aggregate amount of all such Losses in excess of the Deductible (which shall be a true deductible and not a threshold).

(iii)No indemnification may be sought by any Party under this Agreement in respect of any Loss to the extent such Loss is reflected in the calculations of the Preliminary Settlement Statement or as finally determined in connection with the Final Settlement Statement. No indemnified Party shall be entitled to recover more than once for the same Loss.

(iv)Notwithstanding anything to the contrary contained elsewhere in this Agreement, except in cases where a Party has acted with Fraud, or except for breaches of the Seller Fundamental Representations or Buyer Fundamental Representations, as applicable, in no event shall Seller have any obligation to indemnify Buyer or Buyer Indemnitees against, or reimburse Buyer or any Buyer Indemnitees for, any Obligations or Losses arising under Section 10.2(a)(i) in excess of an amount equal to thirty percent (30%) of the unadjusted Purchase Price. In no event shall either Party’s aggregate liability under this Agreement for any and all indemnification obligations exceed an amount equal to the Purchase Price.

(v)Any claim for indemnity to which a Seller Indemnitee or Buyer Indemnitee is entitled must be asserted by and through Seller or Buyer, as applicable. The amount of any indemnification provided under Section 10.2(a) and Section 10.2(b) shall be reduced by any amounts actually recovered by the indemnified Party under insurance policies or otherwise from third parties, net of any collection costs (including Taxes), and excluding any insurance underwritten by the indemnified Parties.

10.3Survival of Warranties, Representations and Covenants.

 All representations, warranties, covenants, and performance obligations set forth in this Agreement shall survive the Closing until fully performed, subject to applicable statutes of limitations, except (a) the representations and warranties of the Seller in Article 4 (other than the Seller Fundamental Representations) shall survive Closing for a period of twelve (12) months; (b) the representations and warranties of Seller set forth in Section 4.1 through Section 4.7 (inclusive) and Section 4.9 (such representations, the “Seller Fundamental Representations”) shall survive the Closing without time limit, except that the representations in Section 4.9 shall survive for the applicable statute of limitations period plus sixty (60) days; (c) the representations and warranties of Buyer set forth in Article 5 (other than the Buyer Fundamental Representations) shall survive Closing for a period of twelve (12) months; (d) the representations and warranties of Buyer set forth in Section 5.1 through Section 5.5 (inclusive) and Section 5.8 (such representations, the “Buyer Fundamental Representations”) shall survive the Closing without time limit; (e) the Special Warranty shall survive Closing for a period of thirty-six (36) months; (f) any covenants of the Parties to be performed prior to or 

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at Closing shall expire upon and as of Closing; (g) the indemnities in Section 10.2(b)(iii) shall survive the Closing for a period of thirty-six (36) months; (h) the indemnities in Section 10.2(a)(iv) shall survive the Closing without time limit; and (i) the indemnity in Section 10.2(a)(iii) shall survive until sixty (60) days after the expiration of the applicable statute of limitations (each such period, as applicable, the “Survival Period”). All indemnities herein other than those in Section 10.2(b)(iii), Section 10.2(a)(iv) and Section 10.2(a)(iii) shall terminate as of the termination date of each respective representation, warranty, covenant or performance obligation that is subject to the indemnification thereto (as specified herein), in each case, except to the extent a claim notice with respect to any breach of the foregoing has been properly delivered before the expiration of the Survival Period applicable thereto alleging a right to indemnification or defense for Obligations or Losses arising out of, relating to, or otherwise attributable to the breach of such representation, warranty, covenant or performance obligation, then, solely to the extent directly related to the matters expressly set forth in such claim notice, such representation, warranty, covenant or performance obligation shall continue to survive until the claims asserted in such claim notice have been fully and finally resolved under the terms of this Agreement or by written agreement (including a settlement agreement) of the Parties.

10.4Reservation as to Non-Parties.

 Nothing in this Agreement is intended to limit or otherwise waive any recourse Buyer or Seller may have against any non-Party for any Obligations or Losses that may be incurred with respect to the Assets.

10.5Acceptance of Title Condition.

 EXCEPT AS OTHERWISE SET FORTH IN THIS AGREEMENT (INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER UNDER THIS AGREEMENT) AND EXCEPT AS TO THE SPECIAL WARRANTY OF DEFENSIBLE TITLE UNDER THIS AGREEMENT OR THE CONVEYANCE DELIVERED AT CLOSING, BUYER WILL ACCEPT THE ASSETS AT CLOSING IN THEIR PRESENT CONDITION, “AS IS AND WHERE IS AND WITH ALL FAULTS.” BUYER ACKNOWLEDGES AND AGREES THAT, EXCEPT AS OTHERWISE SET FORTH IN THIS AGREEMENT AND IN THE CONVEYANCE DELIVERED AT CLOSING, SELLER HAVE MADE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, WRITTEN, ORAL, OR OTHERWISE, AS TO THE ACCURACY OR COMPLETENESS OF THE BACKGROUND MATERIALS OR ANY OTHER INFORMATION RELATING TO THE ASSETS FURNISHED BY OR ON BEHALF OF SELLER OR TO BE FURNISHED TO BUYER OR ITS REPRESENTATIVES, INCLUDING SELLER’S INTERNAL APPRAISALS AND INTERPRETIVE DATA.

10.6Express Negligence Rule.

 THE DEFENSE, INDEMNIFICATION, HOLD HARMLESS, RELEASE AND ASSUMED LIABILITIES PROVISIONS PROVIDED FOR IN THIS AGREEMENT SHALL BE APPLICABLE AND ENFORCEABLE WHETHER OR NOT THE LIABILITIES, LOSSES, COSTS, EXPENSES, OBLIGATIONS AND DAMAGES IN QUESTION AROSE OR RESULTED SOLELY OR IN PART FROM THE ACTIVE, PASSIVE, CONCURRENT OR COMPARATIVE NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT OR VIOLATION OF LAW OF OR BY ANY INDEMNIFIED PARTY. BUYER AND SELLER ACKNOWLEDGE THAT THIS STATEMENT COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND IS CONSPICUOUS.

10.7Waiver of Certain Damages.

 NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, NO PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES SUFFERED BY SUCH PARTY RESULTING FROM OR ARISING OUT OF THIS AGREEMENT OR THE BREACH THEREOF OR UNDER ANY OTHER THEORY OF LIABILITY, WHETHER TORT, NEGLIGENCE, STRICT LIABILITY, BREACH OF CONTRACT, WARRANTY, INDEMNITY OR OTHERWISE, INCLUDING LOSS OF USE, INCREASED COST OF OPERATIONS, LOSS OF PROFIT OR REVENUE, DIMINUTION IN VALUE, LOST BUSINESS OPPORTUNITY OR 

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BUSINESS INTERRUPTIONS. IN FURTHERANCE OF THE FOREGOING, EACH PARTY RELEASES THE OTHER PARTY AND WAIVES ANY RIGHT OF RECOVERY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING ANY CALCULATIONS OF LOSSES USING ANY “MULTIPLES OF PROFITS”, “MULTIPLES OF CASH-FLOW” OR OTHER SIMILAR METHODOLOGY) SUFFERED BY SUCH PARTY REGARDLESS OF WHETHER ANY SUCH DAMAGES ARE CAUSED BY THE OTHER PARTY’S NEGLIGENCE (AND REGARDLESS OF WHETHER SUCH NEGLIGENCE IS SOLE, JOINT, CONCURRENT, ACTIVE, PASSIVE OR GROSS NEGLIGENCE), FAULT, OR LIABILITY WITHOUT FAULT: PROVIDED, HOWEVER, THE FOREGOING SHALL NOT BE CONSTRUED AS LIMITING AN OBLIGATION OF A PARTY TO INDEMNIFY, RELEASE, DEFEND AND HOLD HARMLESS THE OTHER PARTY AGAINST CLAIMS ASSERTED BY THIRD PARTIES, INCLUDING, THIRD PARTY CLAIMS FOR SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES.

10.8Redhibition Waiver.

	

	
BUYER: (A) WAIVES ALL RIGHTS IN REDHIBITION PURSUANT TO LOUISIANA CIVIL CODE ARTICLE 2475 AND ARTICLES 2520 THROUGH 2548; (B) ACKNOWLEDGES THAT THIS EXPRESS WAIVER SHALL BE CONSIDERED A MATERIAL AND INTEGRAL PART OF THIS SALE AND THE CONSIDERATION THEREOF; AND (C) ACKNOWLEDGES THAT THIS WAIVER HAS BEEN BROUGHT TO THE ATTENTION OF BUYER, HAS BEEN EXPLAINED IN DETAIL AND THAT BUYER HAS VOLUNTARILY AND KNOWINGLY CONSENTED TO THIS WAIVER OF WARRANTY OF FITNESS AND WARRANTY AGAINST REDHIBITORY VICES AND DEFECTS WITH RESPECT TO THE ASSETS.

10.9UTPCPL Waiver.

	

	
TO THE EXTENT APPLICABLE TO THE ASSETS OR ANY PORTION THEREOF, BUYER HEREBY WAIVES THE PROVISIONS OF THE LOUISIANA UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW (LA. R.S. 51.1401, ET SEQ.). BUYER WARRANTS AND REPRESENTS THAT IT: (A) IS EXPERIENCED AND KNOWLEDGEABLE WITH RESPECT TO THE OIL AND GAS INDUSTRY GENERALLY AND WITH TRANSACTIONS OF THIS TYPE SPECIFICALLY; (B) POSSESSES AMPLE KNOWLEDGE, EXPERIENCE AND EXPERTISE TO EVALUATE INDEPENDENTLY THE MERITS AND RISKS OF THE CONTEMPLATED TRANSACTIONS; AND (C) IS NOT IN A SIGNIFICANTLY DISPARATE BARGAINING POSITION.

10.10Determination of Losses.

 With respect to any Party’s indemnification obligations under this Article 10, solely for purposes of determining the amount of Losses resulting from a breach or inaccuracy of a representation or warranty of the Seller in Article 4 or of the Buyer in Article 5 (including any bringdown of any such representation or warranty in any certificate delivered pursuant to this Agreement), such representations and warranties shall be read without giving effect to any materiality, Material Adverse Effect or similar qualification therein.

10.11Notice and Defense.

 From and after Closing, each Party shall promptly notify each other Party in writing (including the full particulars of such claim) of any potential Obligations or Losses of which it becomes aware and for which it is entitled to indemnification from such other Party under this Agreement; provided that the failure to so notify such other Party shall not affect the other Party’s indemnification obligations under this Agreement with respect to such claim except to the extent that such other Party is materially prejudiced by such failure. The indemnifying Party is obligated to defend at the indemnifying Party’s sole expense any litigation or other administrative or adversarial proceeding against the indemnified Party relating to any claim for which the indemnifying Party has agreed to indemnify and hold the indemnified Party harmless under this Agreement; provided, however, the indemnified Party shall have the right to participate with the indemnifying Party in the defense of any such claim at its own expense.

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Article 11
MISCELLANEOUS

11.1Expenses.

 Except as otherwise specifically provided in this Agreement, all fees, costs and expenses incurred by Buyer, on the one hand, or Seller, on the other, in negotiating this Agreement and the Ancillary Agreements or in consummating the transactions contemplated by this Agreement shall be paid by the Party incurring the same.

11.2Notices.

 All notices and communications required or permitted to be given under this Agreement, shall be sufficient in all respects if given in writing and delivered personally, sent by electronic mail (so long as such electronic mail is acknowledged by the recipient as having been received; provided that such recipient is affirmatively obligated to promptly acknowledge receipt), sent by bonded overnight courier or mailed by U.S. Express Mail, Federal Express or United Parcel Service Express Delivery or by certified or registered United States Mail with all postage fully prepaid, addressed to the appropriate person at the address for such Person shown below:

If to Seller:

 

Vendera Resources III, LP

Vendera Management III LLC

2626 Cole Avenue, Suite 750

Dallas, Texas 75204

Attn: A. Wood Brookshire, CEO

Email: abrookshire@venderaresources.com 

Telephone: (469) 248-3070

 

 

If to Buyer:

 

PHX Minerals Inc.

1601 NW Expressway

Valliance Bank Building, Suite 1100

Oklahoma City, Oklahoma 73118

Attn:  Chad Stephens 

Email:  chad@phxmin.com

Telephone: (405) 945-6105

 

with a copy (which will not constitute notice) to:

 

Jackson Walker LLP

1401 McKinney St., Suite 1900

Houston, Texas 77010

Attn: Kirk Tucker

Email: ktucker@jw.com

Telephone: (713) 752-4389

 

 

Any notice given in accordance with this Agreement shall be deemed to have been given when delivered to the addressee in person, by electronic mail (provided such electronic mail is acknowledged by the recipient as described above) or by courier during normal business hours, or upon actual receipt by the addressee after such notice has either been delivered to an overnight courier or deposited in the United 

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States Mail or with Federal Express or United Parcel Service, as the case may be. Any Party may change its contact information for notice by giving written notice to the other Party in the manner provided in this Section 11.2. If the date specified in this Agreement for giving any notice or taking any action is not a Business Day (or if the period during which any notice is required to be given or any action taken expires on a date which is not a Business Day), then the date for giving such notice or taking such action (and the expiration date of such period during which notice is required to be given or action taken) shall be the next day which is a Business Day.

 

11.3Governing Law; Jurisdiction; Venue: Jury Waiver; Binding Arbitration.

 

(a)This Agreement, the Ancillary Agreements and any other documents delivered pursuant hereto and the legal relations between the Parties shall be governed and construed in accordance with the laws of the State of Texas, without giving effect to principles of conflicts of laws that would result in the application of the laws of another jurisdiction; provided that any dispute pertaining to real property shall be governed by the laws of the State of Louisiana or Texas (as applicable based on where such real property is located).  

(b)Subject to and without limiting Section 2.5(c), the Parties agree that any and all disputes or claims by any Party arising from or related to this Agreement that cannot be amicably settled, will be determined solely and exclusively by arbitration in accordance with the Federal Arbitration Act and using the rules of the American Arbitration Association or any successor thereof when not in conflict with such act; provided, however, that nothing contained in this Section 11.3 shall limit any Party’s right to bring (i) post-arbitration actions seeking to enforce an arbitration award or (ii) actions seeking injunctive or other similar relief under Section 11.16 in the event of a breach or threatened breach of any of the provisions of this Agreement (or any other agreement contemplated hereby). Arbitration will take place at an appointed time and place in Dallas, Texas, at a mutually agreeable and neutral venue. The Parties to the dispute will attempt in good faith to agree on a single impartial arbitrator. If such Parties cannot agree on a single impartial arbitrator, each Party to the dispute will select one impartial arbitrator, and the two so designated will select a third (3rd) impartial arbitrator. If either Party to the dispute should fail to designate an arbitrator within fourteen (14) days after arbitration is requested, or if the two (2) arbitrators should fail to select a third arbitrator within thirty (30) days after arbitration is requested, then an arbitrator will be selected in accordance with the Commercial Arbitration Rules of the American Arbitration Association. Each arbitrator will have at least ten (10) years’ experience in the oil and gas industry in the State of Texas (or, to the extent that such dispute pertains to real property located in the State of Louisiana, the State of Louisiana). Discovery will be made pursuant to the Federal Rules of Civil Procedure. Final hearing on the matter will be held within nine (9) months after the date the Parties to the dispute agree on a single arbitrator or the selection of the third arbitrator, as applicable (such date, the “Arbitration Commencement Date”) and a final decision with a written opinion stating the reasons therefor will be rendered within fourteen (14) days after the conclusion of the testimony at the final hearing, which written opinion shall be final and binding; provided, however, that Seller will have the exclusive right, in its discretion, to require that (A) discovery be completed by a specific date, which date must be at least forty-five (45) days after the Arbitration Commencement Date, or (B) the final hearing be commenced by a date earlier than nine (9) months after the Arbitration Commencement Date, which date must be at least sixty (60) days after the Arbitration Commencement Date. The prevailing Party in the arbitration proceeding shall recover all reasonable and necessary attorneys’ fees and costs, including, but not limited to, all attorneys’ fees, expert witness fees, court reporter fees, support staff fees, arbitration venue fees, and arbitrator fees. A Party need not be awarded any damages to be considered the prevailing Party, and a Party need not succeed on all or any affirmative claims to be considered the prevailing Party. The Parties irrevocably waive their right to any form of appeal, review or recourse to any state court or other judicial authority, insofar as such waiver may be validly made. Judgment upon an award of the majority of the arbitrators will be binding. Judgment on the award may be entered and enforced by any court of competent jurisdiction. In no event, may the 

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arbitrators award damages that have been waived under this Agreement. The arbitration process will be kept confidential and such conduct, statements, promises, offers, views and opinions will not be discoverable or admissible in any legal proceeding for any purpose, except to the extent reasonably necessary to enforce the final decision of the arbitrators.

(c)For purposes of (i) ANY post-Arbitration actions seeking to enforce an arbitration award UNDER THIS AGREEMENT OR (ii) actions seeking injunctive or other similar relief under section 11.16, The venue for any such action brought under this Agreement shall be Dallas County, Texas. Each Party consents to personal jurisdiction in any action brought in the United States federal courts located within Dallas County, Texas (or, if jurisdiction is not available in the United States federal courts, to personal jurisdiction in any action brought in the state courts located in Dallas County, Texas) with respect to any dispute, claim or controversy arising out of or in relation to or in connection with this Agreement, and each of the Parties agrees that any action instituted by it against the other with respect to any such dispute, controversy or claim will be instituted exclusively in the United States District Court for the Northern District of Texas. The Parties hereby waive trial by jury in any action, proceeding or counterclaim brought by any Party against another in any matter whatsoever arising out of or in relation to or in connection with this Agreement. in addition, each party irrevocably waives any objection, including any objection to the laying of venue or based on the grounds of forum non conveniens, which it may now or hereafter have to the bringing of any such action in the respective jurisdictions referenced in this section.

11.4Further Assurances.

 From time to time after Closing, Seller and Buyer shall each execute, acknowledge and deliver to the other such further instruments and take such other action as may be reasonably requested in order to accomplish more effectively the purposes of the transactions contemplated by this Agreement.

11.5Amendments; Waivers.

 This Agreement may not be amended, nor any rights hereunder waived except by an instrument in writing signed by the Party to be charged with such amendment or waiver and delivered by such Party to the Party claiming the benefit of such amendment or waiver. No waiver of any breach or violation or, default under or inaccuracy in any representation, warranty or covenant set forth in this Agreement will be deemed to extend to any prior or subsequent breach, violation, default, inaccuracy or affect in any way any rights arising by virtue of any prior or subsequent occurrence. No delay or omission on the part of any Party in exercising any right, power or remedy under this Agreement will operate as a waiver thereof.

11.6Assignment.

 Except as otherwise provided in Section 11.10, no Party may assign this Agreement or any of its rights under this Agreement without the prior written consent of the other Parties (which consent may be granted or withheld in each such other Party’s respective sole discretion); provided, however, that Buyer shall have the right, upon prior written notice to Seller, to assign to one or more of its Affiliates, Buyer’s rights under this Agreement to acquire the Assets at Closing; provided further, that without the prior written consent of the other Parties, no assignment pursuant to this Section 11.6 shall relieve any Party from its obligations under this Agreement.

11.7Counterparts/Fax Signatures.

 This Agreement may be executed and delivered in one or more counterparts, each of which when executed and delivered shall be an original, and all of which when executed shall constitute one and the same instrument. The exchange of copies of this Agreement and of 

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signature pages by facsimile or by electronic image scan transmission in .pdf format shall constitute effective execution and delivery of this Agreement as to the Parties and may be used in lieu of the original Agreement for all purposes.

11.8Construction.

(a)Capitalized terms used but not otherwise defined in this Agreement have the meanings given to such terms in Annex I.

(b)The headings of the Articles and Sections of this Agreement are for guidance and convenience of reference only and shall not limit or otherwise affect any of the terms or provisions of this Agreement. The Disclosure Schedules are hereby incorporated in this Agreement by reference and constitute a part of this Agreement. The words “this Agreement,” “herein,” “hereby,” “hereunder” and “hereof,” and words of similar import, refer to this Agreement as a whole and not to any particular Article, Section, subsection or other subdivision unless expressly so limited. All references to “$” or “dollars” shall be deemed references to United States dollars. References made in this Agreement, including use of a pronoun, shall be deemed to include where applicable, masculine, feminine, singular or plural, individuals or entities. The word “or” when used in a list shall not indicate that the listed items are exclusive of each other. The words “include,” “includes,” and “including” are deemed to be followed by “without limitation” whether or not they are in fact followed by such words or words of similar import. References to any Law, Contract, agreement or other instrument shall mean such Law, Contract, agreement or other instrument as it may be amended from time to time.

11.9Entire Agreement.

 This Agreement and the Ancillary Agreements constitute the entire understanding among the Parties, their respective partners, members, trustees, shareholders, officers, directors and employees with respect to the subject matter hereof, superseding all negotiations, prior discussions and prior agreements and understandings relating to such subject matter, including any letter of intent entered into between the Parties.

11.10Successors and Permitted Assigns.

 This Agreement shall be binding upon, and shall inure to the benefit of, the Parties, and their respective successors and permitted assigns.

11.11Parties in Interest.

 Nothing in this Agreement shall entitle any Person, other than the Parties, or the Parties’ respective related indemnified parties hereunder, to any claim, cause of action, remedy or right of any kind; provided, that only a Party will have the right to enforce the provisions of this Agreement on its own behalf or on behalf of its related indemnified parties (but shall not be obligated to do so).

11.12Severability.

 In the event any term of this Agreement is found by any court to be void or otherwise unenforceable, the remainder of this Agreement shall remain valid and enforceable, and, to the fullest extent permitted by Law, such offending term or terms shall be replaced with an enforceable term or enforceable terms that as nearly as possible effect the Parties’ intent.

11.13Joint Preparation.

 The Parties acknowledge and agree that this Agreement was jointly prepared by the Parties, and that each Party was afforded the opportunity to consult with counsel in the preparation and negotiation of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring either Party by virtue of the authorship of any of the provisions of this Agreement.

38

 

 

11.14Publicity.

 Seller and Buyer shall consult with each other with regards to all publicity and other releases concerning this Agreement and the transactions contemplated hereby and, except as required by applicable Law or the applicable rules or regulations of any Governmental Authority or stock exchange, neither Party shall issue any such publicity or other release without the prior written consent of the other Party hereto (such consent not to be unreasonably withheld, conditioned or delayed). Without the prior written consent of the other Party, neither Buyer nor Seller shall disclose or issue any press release or public announcement that includes the name of the non-disclosing Party; provided, however, the foregoing shall not restrict disclosures in order to comply with applicable securities or other laws, to comply with demands or requests from regulatory authorities, or to comply with existing loan or other agreements binding upon such Party.

11.15Disclosure Schedules.

 The matters set forth on the disclosure schedules hereto (collectively, the “Disclosure Schedules”) are not necessarily matters that Seller are required to disclose or matters that would constitute a breach of any representation or warranty had such matters not been disclosed. No disclosure by Seller in the Exhibits or the Disclosure Schedules relating to any possible breach or violation of any contract or applicable Law shall be construed as an admission or indication that such breach or violation exists or has actually occurred.

11.16Specific Performance.

 Subject to and without limiting Section 8.5, from and after Closing, if either Seller or Buyer violates or fails or refuses to perform any covenant or agreement made by Seller or Buyer (as applicable) in this Agreement, the non­breaching Party (in the case of Buyer) or Parties (in the case of Seller), subject to the terms of this Agreement and in addition to any remedy at Law for damages or other relief permitted under this Agreement, may institute and prosecute an action in any court of competent jurisdiction to enforce specific performance of such covenant or agreement or seek any other equitable relief, without the necessity of proving actual damages or posting of a bond. Each of Seller and Buyer hereby acknowledges and agrees that the rights of the other to consummate the transactions contemplated by this Agreement are special, unique and of extraordinary character and that, if Seller or Buyer violates or fails or refuses to perform any covenant or agreement made by it in this Agreement, the non­breaching Party (in the case of Buyer) or Parties (in the case of Seller) may be without an adequate remedy at Law.

11.17Confidentiality.

 Subject to Section 11.14, for a period of eighteen (18) months after the Closing Date, Seller shall, and shall cause its Affiliates to, not use or make disclosures to third parties of any confidential or proprietary information relating to Assets except with the prior written consent of Buyer or as required by applicable Law, except to the extent that such information (a) is generally available to the public through no breach by Seller or its Affiliates of this Section 11.17, (b) is lawfully acquired by Seller or its Affiliates after the Closing from sources which are not actually known to Seller to be prohibited from disclosing such information due to confidentiality obligations owed to Buyer, (c) is required for purposes of compliance by Seller or its Affiliates with Tax or regulatory reporting requirements, (d) is needed in connection with the exercise, enforcement or performance of Seller’s rights and obligations hereunder, the Ancillary Agreements or the enforcement, performance or defense of the same, or (e) is disclosed (i) in the course of any trial or other legal Proceeding involving Seller or its Affiliates, (ii) as required by any applicable securities Law or legal process or other Law (including any subpoena, interrogatory, or other similar requirement for such information to be disclosed) or rules of any applicable national stock exchange, or (iii) as is necessary to allow Seller or its Affiliates to manage or operate the Excluded Assets or Seller’s or its Affiliates’ other assets or Retained Obligations; provided, however, that (x) nothing shall prohibit Seller or its Affiliates from using such information in the conduct of their respective businesses following the Closing so long as such use is consistent in all material respects with the manner in which Seller or its Affiliates used such information prior to the Closing and (y) Seller and its Affiliates may discuss the underlying investment with respect to the Assets and the acquisition or disposition of the Assets with its 

39

 

 

Representatives and current and potential partners or investors or in connection with legitimate fundraising activities or fund performance reporting with current or prospective investors, lenders or partners.

11.18No Recourse.

 Except as provided in this Section 11.18, nothing express or implied in this Agreement or any document, agreement or instrument delivered in relation to this Agreement is intended or shall be construed to confer upon or give any Person, other than the Parties, any right or remedies under or by reason of this Agreement. All claims, obligations, liabilities or causes of action (whether in contract or in tort, in Law or in equity or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with or relate in any manner to this Agreement, or the negotiation, execution or performance of this Agreement (including any representation or warranty made in, in connection with or as an inducement to, this Agreement) and the transactions contemplated hereby, may be made only against (and such representations and warranties are those solely of) the Parties (the “Contracting Parties”). No Person who is not a Contracting Party, including any past, present or future director, officer, employee, incorporator, member, partner, manager, equityholder, Affiliate, agent, attorney, representative or assignee of, and any financial advisor or lender to, any Contracting Party, or any past, present or future director, officer, employee, incorporator, member, partner, manager, equityholder, Affiliate, agent, attorney, representative or assignee of, and any financial advisor or lender to, any of the foregoing (collectively, the “Nonparty Affiliates”), shall have any liability (whether in contract or in tort, in law or in equity, or granted by statute) for any claims, causes of action, obligations or liabilities arising under, out of, in connection with or related in any manner to this Agreement or the transactions contemplated hereby or based on, in respect of or by reason of this Agreement or its negotiation, execution, performance or breach of this Agreement and the transactions contemplated hereby, and, to the maximum extent permitted by Law, each Contracting Party hereby waives and releases all such liabilities, claims, causes of action and obligations against any such Nonparty Affiliates. Without limiting the foregoing, to the maximum extent permitted by Law, each Contracting Party disclaims any reliance upon any Nonparty Affiliates with respect to the performance of this Agreement or any representation or warranty made in connection with, or as an inducement to, this Agreement. This Section 11.18 shall not be effective as to Seller to the extent Seller makes any distribution to its members, including of any portion of the Purchase Price, that would violate any provision of Subchapter VIII of the Delaware Limited Liability Company Act or similar Law.

 

[Signature Pages to Follow]

40

 

 

 

 

IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the Execution Date.

 

SELLER:

 

VENDERA RESOURCES III, LP

 

By Vendera Management III LLC

its General Partner 

 

By:/s/ A. Wood Brookshire

Name:A. Wood Brookshire

Title:Chief Executive Officer

 

 

VENDERA MANAGEMENT III LLC

 

By:/s/ A. Wood Brookshire

Name:A. Wood Brookshire

Title: Chief Executive Officer

 

 

 

[Seller’s Signature Page to Purchase and Sale Agreement]

 

 

 

 

 

BUYER:

 

PHX MINERALS INC.

 

 

By: /s/ Chad L. Stephens

Name:Chad L. Stephens

President and Chief Executive Officer

Title:President and Chief Executive Officer

 

[Buyer’s Signature Page to Purchase and Sale Agreement]

 

 

 

ANNEX I

DEFINED TERMS

“AAA” has the meaning set forth in Section 3.2(g)(iv).

“Accounting Consultant” has the meaning set forth in Section 2.5(c).

“Acquisition Proposals” has the meaning set forth in Section 6.6.

“Actual NRA” means the actual Net Royalty Acres determined by the Parties or the Title Consultant, as the case may be, to be owned by Seller in each Tract pursuant to Article 3.

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by or is under common control with, such first Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities, by contract or otherwise.

“Agreement” has the meaning set forth in the introductory paragraph of this Agreement.

“Allocated Value” has the meaning set forth in Section 2.3.

“Ancillary Agreements” means the Conveyance, the FIRPTA Certificate and the Lock-Up Agreement.

“Annual Report” has the meaning set forth in Section 5.12.

“Arbitration Commencement Date” has the meaning set forth in Section 11.3(b).

“Asset Taxes” means ad valorem, property, excise, severance, production and similar Taxes based upon the operation or ownership of the Assets or the production of Hydrocarbons or the receipt of proceeds therefrom, but excluding, for the avoidance of doubt, Income Taxes and Transfer Taxes.

“Assets” means, save, except for and excluding the Excluded Assets, all of Seller’s right, title and interest in and to the following assets and properties from and after the Effective Time:

(a)all fee mineral interests and lessor royalty interests in all oil, natural gas, coalbed methane and other liquid or gaseous Hydrocarbons, as well as their respective constituent products (including condensate, casinghead gas, distillate and natural gas liquids), and any other minerals, similar or dissimilar, customarily produced in conjunction therewith (all such substances are defined for purposes of this Agreement as a “Mineral” or the “Minerals”), in, on and under or produced and saved from the lands, tracts and properties described in Exhibit A-1 attached hereto (such lands, tracts, and properties described in Exhibit A-1, the “Lands”), and from all wells located on the Lands (collectively, the “Wells”), including without limitation, the Wells identified on Exhibit A-2 attached hereto, together with any royalty interests attributable thereto and any units, lands, tracts or other properties pooled with any of the Lands (collectively, the “Mineral Interests”);

Annex I(a)

 

 

(b)any overriding royalty interests held by Seller burdening oil, gas or other minerals produced, saved or sold from the Lands, including those described in Exhibit A-1 attached hereto (collectively, the “Overriding Royalty Interests”);

(c)the non-participating royalty interests burdening the Lands, including those described in Exhibit A-1 attached hereto (collectively, the “Royalty Interests”, together with the Mineral Interests and Overriding Royalty Interests, the “Interests”);

(d)any oil, gas and mineral leases that relate to the Interests, including all reversionary rights thereunder, including those described in Exhibit F, which Exhibit F shall be provided by Seller to Buyer, based on information reasonably available in Seller’s files, within five (5) calendar days from the Execution Date (collectively, the “Leases”);

(e)all division and transfer orders, and, except for the Leases, all written contracts, contractual rights, interests and other written agreements to which Seller is a party (including as assignee) and under which any of the Interests are bound (collectively, the “Contracts”);

(f)all Records, except for the Excluded Records;

(g)(i) all rights of ingress and egress, at all times for the purpose of exploring, drilling, operating for and producing from the Lands for Minerals and removing the same therefrom, and of laying pipelines, storing oil, building tanks, processing and treating plants and facilities, power stations, telephone lines, roads and other structures necessary to produce, save, care for, treat, store, compress, process, and transport said products, attributable to the conveyed interests, and (ii) all rights with respect to the use and occupation of the surface of the Lands and the subsurface depths under the Lands for the sole purpose of development and maintenance of the Interests; and (iii) the right of ingress and egress across any lands owned or controlled by Seller to the extent such ingress and egress across such lands is reasonable to obtain access for the development and maintenance of the Interests;

(h)all proceeds attributable to any of the Interests or the Leases and attributable to the time period after the Effective Time;

(i)to the extent transferable (provided that Seller will not be required to pay any fees or incur any liabilities in order to transfer such data), all proprietary and non-proprietary geologic, geophysical and seismic data that relate to the Interests (excluding any interpretive data);

(j)all permits to the extent primarily relating to or applicable to any of the Interests or Leases and (i) required for the ownership of the Interests or Leases and (ii) transferable pursuant to applicable Law;

(k)to the extent relating to the Assets and to the extent assignable, all rights and interests of either Seller (i) under any agreement or policy of indemnity or insurance (including any rights, claims or causes of action of either Seller against third parties under any indemnity or hold harmless agreements) and any indemnities received in connection with Seller’s prior acquisition of any of the Assets, but in each case only to the extent that such rights or interests arise from obligations or liabilities for which Buyer is responsible under this Agreement, or (ii) relating to claims and causes of action that may be asserted against a third party to the extent such rights and claims arise from obligations or liabilities assumed by Buyer hereunder; and

(l)except to the extent pertaining to any Retained Obligations, and only to the extent assignable, all rights, claims and causes of action to the extent, and only to the extent, that such rights, 

Annex I(b)

 

 

claims or causes of action are associated with any of the other Assets and relate to the period from and after the Effective Time.

“Assumed Liabilities” has the meaning set forth in Section 10.1.

“ATM Offering” has the meaning set forth in Section 5.9.

“Business Day” means any weekday other than a weekday on which commercial banks in the city of Oklahoma City, Oklahoma and Dallas, Texas are authorized or required by applicable Law to be closed.

“Buyer” has the meaning set forth in the introductory paragraph of this Agreement.

“Buyer Fundamental Representations” has the meaning set forth in Section 10.3.

“Buyer Indemnitees” has the meaning set forth in Section 10.2(a).

“Buyer Material Adverse Effect” means a Material Adverse Effect with respect to Buyer.

“Buyer Officer Certificate” has the meaning set forth in Section 8.1(c).

“Buyer Reports” has the meaning set forth in Section 5.12.

“Buyer’s Auditor” has the meaning set forth in Section 6.5(d).

“Closing” has the meaning set forth in Section 9.1.

 “Closing Adjusted Purchase Price” has the meaning given in Section 2.4(a).

“Closing Date” has the meaning set forth in Section 9.1.

“Code” has the meaning set forth in Section 4.6.

“Commission” has the meaning set forth in Section 5.12.

“Contracting Party” has the meaning set forth in Section 11.18.

“Contracts” has the meaning set forth in the definition of “Assets”.

“Conveyance” has the meaning set forth in Section 9.2(b).

“Credit Deficiency Notice” has the meaning set forth in Section 3.2(b).

“Credit Notice” has the meaning set forth in Section 3.2(b).

“Cure Notice” has the meaning set forth in Section 3.2(f).

“Cure Period” has the meaning set forth in Section 3.2(f).

“Deductible” has the meaning set forth in Section 10.2(c)(i).

“Defect Allegation” has the meaning set forth in Section 3.2(a).

Annex I(c)

 

 

“Defensible Title” means such title of Seller to the Assets that, as of the Effective Time and as of the Closing Date, is deducible of record or provable by documentation that would be successfully defended if challenged and that, subject to the Permitted Encumbrances, (a) as to each Tract, entitles Seller to not less than the Stated NRA for such Tract and (b) is free and clear of all Encumbrances.

“Deficiency Notice” has the meaning set forth in Section 3.2(a).

“Delayed Closing Date” has the meaning set forth in Section 3.2(f).

“Disclosing Credit Party” has the meaning set forth in Section 3.2(b).

“Disclosure Schedules” has the meaning set forth in Section 11.15.

“Dispute Notice” has the meaning set forth in Section 2.5(a).

“Effective Time” means, as to each Asset subject to this Agreement, November 1, 2021.

“Effectiveness Date” has the meaning set forth in Section 6.8(a).

“Effectiveness Deadline” has the meaning set forth in Section 6.8(a).

“Encumbrance” means any lien, judgment, mortgage, deed of trust, security instrument, pledge or option that is binding upon the Assets, or other preferential arrangement or other similar encumbrance.

“Environmental Laws” means the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq; the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; the Clean Air Act, 42 U.S.C. § 7401 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. § 5101 et seq.; the Toxic Substances Control Act, 15 U.S.C. §§ 2601 through 2629; the Oil Pollution Act, 33 U.S.C. § 2701 et seq.; the Emergency Planning and Community Right to Know Act, 42 U.S.C. § 11001 et seq.; and the Safe Drinking Water Act, 42 U.S.C. §§ 300f through 300j, and all other applicable Laws of any Governmental Authority having jurisdiction over the property in question addressing (i) pollution or pollution control; (ii) protection of natural resources, the environment or biological resources; or (iii) the disposal or release or threat of release of hazardous substances, in each case as enacted and in effect on or prior to the Closing Date.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

“Excluded Assets” means the following assets and properties:

(a)all proceeds attributable to any of the Assets to the extent attributable to the time period before the Effective Time, including any lease bonuses, royalties and other proceeds and benefits to the extent (i) attributable to the time period before the Effective Time and (ii) received no later than one year following the Closing Date;

(b)all claims of Seller or any of its Affiliates for refunds of, rights to receive funds from any Governmental Authority, or loss carry forwards or credits with respect to Seller Taxes;

(c)any refunds of costs or other expenses borne by Seller or its predecessors in title, insofar as such refunds relate to time periods prior to the Effective Time or to any Retained Obligations;

(d)the Excluded Records;

Annex I(d)

 

 

(e)all claims and causes of action of Seller relating to (i) any Retained Obligation or (ii) production that occurred prior to the Effective Time, and all audit rights arising under any Contracts with respect to the time periods prior to the Effective Time or any Retained Obligations; provided, however, if any third party makes a claim regarding time periods prior to the Effective Time that is or would be an Assumed Liability, then the claims and causes of action against such third party, to the extent relating to such Assumed Liability, that would otherwise be Excluded Assets pursuant to this clause (d), shall become Assets;

(f)all computer or communications software owned, licensed or used by Seller, other than the Records;

(g)any logo, service mark, copyright, trade name or trademark of or associated with Seller or any Affiliate of Seller or any business of Seller or of any Affiliate of Seller;

(h)motor vehicles and other rolling stock owned by Seller; and

(i)all oil, gas and Hydrocarbons produced, saved or sold from the Assets with respect to all periods prior to the Effective Time.

“Excluded Records” means  (a) any files, records, or data (other than title opinions or memoranda relating to the Assets), which Seller believe in good faith are protected by attorney-client privilege or confidentiality agreements, provided that Seller has used Reasonable Efforts to obtain waivers of such confidentiality agreements, (b) all of Seller’s corporate minute books, corporate financial records and Income Tax records that relate to Seller’s business generally, (c) all files, records or data relating to the marketing process for the Assets including any and all bids received in connection therewith, and (d) (i) Seller’s interpretation of any geologic, geophysical and seismic data, and (ii) any non-proprietary geologic, geophysical and seismic data that relate to the Interests, to the extent that (A) such non-proprietary geologic, geophysical and seismic data are not transferable without consideration or without a third party’s consent, and (B) such consent was not obtained from such third party or Buyer has not agreed in writing to pay such consideration prior to the time of Closing.

“Execution Date” has the meaning set forth in the introductory paragraph of this Agreement.

“Filing Deadline” has the meaning set forth in Section 6.8(a).

“Filings” has the meaning set forth in Section 6.5(d).

“Final Price” has the meaning set forth in Section 2.5(a).

“Final Settlement Date” has the meaning set forth in Section 2.5(a). 

“Final Settlement Determination Date” has the meaning set forth in Section 2.5(b).

“Final Settlement Statement” has the meaning set forth in Section 2.5(a).

“FIRPTA Certificate” has the meaning set forth in Section 9.2(f).

 “Fraud” means an intentional and knowing misrepresentation of fact with the intent to deceive solely with respect to the making of the representations and warranties in this Agreement or any instrument or other agreement entered into in connection herewith which constitutes common law fraud under Delaware law.

Annex I(e)

 

 

“GAAP” means United States generally accepted accounting principles as in effect from time to time, consistently applied.

“Governmental Authority” means any federal, state, local, municipal, tribal or other government; any governmental, regulatory or administrative agency, commission, body or other authority exercising or entitled to exercise any administrative, executive, judicial, legislative, regulatory or taxing authority or power, and any court or governmental tribunal, including any tribal authority having or asserting jurisdiction.

“Hazardous Substances” means any pollutants, contaminants, toxins or hazardous or extremely hazardous substances, materials, wastes, constituents, compounds or chemicals that are regulated by, or will, given extent levels, form the basis of remediation liability under, any Environmental Laws (including NORM and other substances) in effect as of the Execution Date and each Closing Date.

“Hydrocarbons” means any oil, gas, casinghead gas, condensate, distillate or other liquid or gaseous hydrocarbon of every kind or description.

“Income Taxes” means any U.S. federal, state or local or non-U.S. income Tax or Tax based on profits, net profits, margin revenues or similar Taxes (including franchise Taxes and any capital gains and net worth Taxes).

“Individual Claim Threshold” has the meaning set forth in Section 10.2(c)(i).

“Interests” has the meaning set forth in the definition of “Assets”.

“Knowledge” means the actual knowledge, without any obligation of inquiry, of (x) in the case of Seller, of A. Wood Brookshire or (y) in the case of Buyer, of Ralph D’Amico.

“Lands” has the meaning set forth in the definition of “Assets”.

“Law” means any applicable statute, law, rule, regulation, ordinance, order, code, ruling, writ, injunction, decree or other official act of or by any Governmental Authority, or rules or regulation of any national stock exchange on which a Party’s securities are listed.

“Leases” has the meaning set forth in the definition of “Assets”.

“Lock-Up Agreement” has the meaning set forth in Section 9.2(g).

“Lock-Up Period” has the meaning set forth in Section 9.2(g).

“Losses” means any and all losses, costs, expenses (including court costs, reasonable fees and expenses of attorneys, technical experts and expert witnesses and the cost of investigation), liabilities, damages, diminution of value of any Asset, demands, suits, claims, causes of action and sanctions of every kind and character (including civil fines); provided, however, for the avoidance of doubt, any calculation or determination of Losses shall not include any measure of damages or theories of liability expressly waived by the Parties pursuant to Section 10.7.

“Material Adverse Effect” means, with respect to a Party, any circumstance, change or effect that has had or would be reasonably likely to (i) have, individually or in the aggregate with any other circumstance, change or effect, a material and adverse effect on the ownership or financial condition of the Assets in excess of an amount equal to ten percent (10%) of the Purchase Price (with respect to a Seller 

Annex I(f)

 

 

Material Adverse Effect) or the assets and properties of Buyer (with respect to a Buyer Material Adverse Effect), taken as a whole or (ii) materially impair, prevent or delay such Party’s timely consummation of the transactions contemplated hereby, but shall exclude any circumstance, change or effect resulting or arising from: (a) any change in general conditions in the industries or markets in which such Party operates; (b) seasonal reductions in revenues or earnings of such Party in the ordinary course of its business; (c) any adverse change, event or effect on the global, national or regional energy industry as a whole, including any such change to energy prices or the value of oil and gas assets and properties or other commodities, goods or services, or the availability or costs of hedges; (d) national or international political conditions, including any engagement in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack; (e) changes in GAAP or the interpretation thereof; (f) the entry into or announcement of this Agreement, actions contemplated by this Agreement or the consummation of the transactions contemplated hereby; (g) changes or developments in financial or securities markets or the economy in general; (h) the outbreak or continuation of any disease or epidemic (including COVID-19); (i) natural declines in well performance or reclassification or recalculation of reserves in the ordinary course of business consistent with ordinary, prudent and customary practices in the oil and natural gas exploration and production industry; (j) acts or failures to act of any Governmental Authorities and changes in Law or the interpretation thereof from and after the Execution Date (except to the extent resulting from the action or inaction of such Party or its Affiliate); (k) effects of weather, meteorological events, natural disasters or other acts of God; or (l) any title defects, title losses or encumbrances on title; provided that the exclusions set forth in subsections (b), (c), (d), (g), (h) and (k) shall be effective only insofar as such exclusions do not disproportionately affect the assets and properties of the affected Party as compared to similarly situated oil and gas assets or similarly situated owners of oil and gas assets.

“Material Contracts” means any of the following Contracts to which Seller is a party:

	
(a)
	
Contracts restricting in any material respect the owner of the Assets from freely engaging in any business or competing anywhere;

	
(b)
	
each Contract that burdens any of the Assets and is an indenture, mortgage, loan, credit agreement, sale-leaseback, guaranty of any obligation, bond, letter of credit, or similar financial Contract (other than Permitted Encumbrances) that will not be terminated at or before the Closing;

	
(c)
	
any Contract that burdens any of the Assets, covering any futures, hedges, swap, collar, put, call, floor, cap, option or the like that is intended to reduce or eliminate the fluctuations in the prices of commodities, currency, exchange rates or interest rates that will not be terminated at or before the Closing;

	
(d)
	
any Contract the primary purpose of which is to indemnify another Person;

	
(e)
	
Contracts to sell, exchange or otherwise dispose of all or any part of the Assets;

	
(f)
	
Contracts involving obligations of, or payments to or from, the owner of the Assets that, in each case, can reasonably be expected to result in aggregate payments by Seller in excess of $50,000.00 in the current or any subsequent fiscal year; and

	
(g)
	
Contracts between Seller and any Affiliate of Seller that will be binding on the Assets after the Closing.

“Mineral Interests” has the meaning set forth in the definition of “Assets”.

Annex I(g)

 

 

“Minerals” has the meaning set forth in the definition of “Assets”.

“Net Mineral Acres” means with regard to an Interest, (i) the number of gross surface acres included in such Interest, multiplied by (ii) Seller’s percentage ownership interest in the oil and gas fee mineral interests beneath such gross surface acres; provided, however, that if Seller’s Net Mineral Acres vary for different formations or areas within a Tract, a separate calculation shall be performed with respect to each such formation or area for the purposes of calculating Net Mineral Acres under this Agreement.

 “Net Royalty Acres” means, with regard to the Interest, the number equal to (i) the number of Net Mineral Acres attributable to such Interest multiplied by (ii) the applicable Royalty Rate for such Interest multiplied by (iii) eight; provided, however, that if an Interest varies as to different target formations or areas within a Tract, a separate calculation shall be performed with respect to each such formation or area for the purposes of calculating Net Royalty Acres under this Agreement. For any unleased tracts, a 12.5% Royalty Rate shall be used as the applicable Royalty Rate.

“Nonparty Affiliates” has the meaning set forth in Section 11.18.

“Obligations” has the meaning set forth in Section 10.1.

“Officer Certificates” has the meaning set forth in Section 8.2(c).

“Overriding Royalty Interests” has the meaning set forth in the definition of “Assets”. 

“Parties” has the meaning set forth in the introductory paragraph of this Agreement. 

“Party” has the meaning set forth in the introductory paragraph of this Agreement.

“Permitted Encumbrances” means:

(a)the terms and provisions of any Contract or Lease of record to the extent that such terms and provisions do not, individually and in the aggregate, operate to reduce Seller’s Net Royalty Acres in any Tract below the Stated NRA for such Tract;

(b)lessors’ royalties, non-participating royalties and similar burdens of record that do not, individually or in the aggregate, operate to reduce Seller’s Net Royalty Acres in any Tract below the Stated NRA for such Tract;

(c)preferential rights to purchase and required third party consents to assignment of any Asset that are not applicable to the transactions contemplated by this Agreement;

(d)rights to consent by, required notices to, filings with or other actions by Governmental Authorities or any other Person in connection with the sale or conveyance of any of the Assets if the same are customarily obtained in the ordinary course of business subsequent to such sale or conveyance;

(e)any materialman’s, mechanics’, repairman’s, employees’, contractors’, operators’ liens or other similar liens or charges for liquidated amounts arising in the ordinary course of business for amounts not yet delinquent or, if delinquent, that are being contested in good faith, or which will be released prior to Closing;

(f)any liens for Taxes and assessments not yet delinquent or, if delinquent, that are being contested in good faith in the ordinary course of business and for which Seller have agreed to pay under the terms of this Agreement or which have been prorated under the terms of this Agreement;

Annex I(h)

 

 

(g)all rights reserved to or vested in any Governmental Authority to control or regulate the Assets in any manner;

(h)the lack of executive rights in any of the Lands;

(i)defects or irregularities of title as to which the relevant statute of limitation or prescription would bar any attack or claim against Seller’s title;

(j)defects in the chain of title arising from the failure to recite marital status, omissions of successors or heirship, or the lack of probate proceedings and defects arising out of lack of corporate or other entity authorization, absent reasonable evidence that the defect results in a third party’s actual and valid claim of title to the affected Interest;

(k)any defects based solely on (A) lack of information, including lack of information in Seller’s files, the lack of third party records or unavailability of information from applicable Governmental Authorities, absent reasonable evidence that the defect results in a third party’s actual and valid claim of title to the affected Interest or (B) the absence of certain documents in Seller’s files that are referenced by other documents that are located in Seller’s files;

(l)division orders and sales contracts terminable without penalty upon no more than 90 days’ notice to the purchaser; 

(m)defects or irregularities arising out of lack of corporate authorization or a variation in corporate name, absent affirmative evidence that such corporate action was not authorized and results in another Person’s superior claim of title to the relevant Assets; 

(n)any matter waived in writing by Buyer;

(o)defects arising out of a scrivener’s error that would not reasonably be expected to adversely affect title to the Assets;

(p)defects based on a gap in the chain of title of the Asset if such gap exists prior to January 1, 1990, unless such gap is shown to exist in the county or parish records by an abstract of title, title opinion or landman’s title chain or runsheet;

(q)defects resulting from lack of survey, unless a survey is expressly required by the underlying lease or applicable Law; and

(r)defects based on failure to record releases of liens, production payments or mortgages that have expired by their own terms or the enforcement of which are barred by applicable statutes of limitation; in each case, unless Buyer provided evidence that such defects or irregularities may result in another Person’s actual and superior claim of title.

“Per Share Value” has the meaning set forth in Section 2.2.

“Person” means any natural person, corporation, partnership, trust, limited liability company, court, agency, government, board, commission, estate or other entity or authority.

Annex I(i)

 

 

“Preliminary Settlement Statement” has the meaning set forth in Section 2.4(a). 

“Proceeding” means any proceeding, action, arbitration, litigation, subpoena, or suit (whether civil, criminal, administrative, investigative, or informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Authority or arbitrator.

“Purchase Price” has the meaning set forth in Section 2.1.

“Quarterly Reports” has the meaning set forth in Section 5.12.

“Reasonable Efforts” means a Party’s commercially reasonable efforts in accordance with reasonable commercial practice.

“Records” means copies of all files, records, and data in Seller’s possession or control to the extent relating to any of the Assets, including deed, mineral and Lease records, assignments, division order records, title records (including abstracts of title, title opinions and memoranda and title curative documents), Contracts, electronic data files (if any), maps, production records, decline curves and graphical production curves and financial, accounting and Asset Tax records, but excluding all Excluded Records.

“Records Period” has the meaning set forth in Section 6.5(d).

“Registration Statement” has the meaning set forth in Section 6.8(a).

“Removed Shares” has the meaning set forth in Section 2.2.

“Representatives” means with respect to any Person, its officers, directors, managers, employees, consultants, agents, financial advisors, attorneys, accountants and other representatives.

“Retained Obligations” means all Obligations arising from or related to the following: (a) the ownership of the Assets prior to the Effective Time, (b) the amount of all Taxes for which Seller are responsible pursuant to Article 7, (c) the Excluded Assets and (d) general and administrative expenses (as such term is understood in accordance with GAAP) of the Seller.

“Review Period” has the meaning set forth in Section 2.5(a).

“Royalty Interests” has the meaning set forth in the definition of “Assets”.

“Royalty Rate” means the applicable royalty interest (i) set forth in the applicable Lease, with respect to any Mineral Interest, minus the proportionate share, if any, of any non-participating royalty interests that burden such Mineral Interest or (ii) carved out of the lessee’s working interest derived from such Lease, with respect to any Overriding Royalty Interest.

“Scheduled Closing Date” has the meaning set forth in Section 9.1.

“Securities Act” means the Securities Act of 1933, as amended.

“Seller” has the meaning set forth in the introductory paragraph of this Agreement.

“Seller Fundamental Representations” has the meaning set forth in Section 10.3.

“Seller Indemnitees” has the meaning set forth in Section 10.2(b).

Annex I(j)

 

 

“Seller Material Adverse Effect” means a Material Adverse Effect with respect to Seller.

“Seller Officer Certificate” has the meaning set forth in Section 8.2(c).

“Seller Taxes” shall mean (a) Income Taxes imposed by applicable Law on Seller and (b) Asset Taxes allocable to Seller pursuant to Article 7 (taking into account, and without duplication of, such Asset Taxes effectively borne by Seller as a result of (i) the adjustments to the Purchase Price made pursuant to Section 2.4, and (ii) any payments made from one Party to the other in respect of Asset Taxes pursuant to Article 7).

“Seller” has the meaning set forth in the introductory paragraph of this Agreement.

“Shares” has the meaning set forth in Section 2.1. 

“Special Warranty” has the meaning set forth in Section 6.5(c).

“Stated NRA” has the meaning set forth in Section 3.2(c)(iii).

“Straddle Period” means any taxable period beginning before and ending after the Effective Time.

“Subject Schedule Supplement” has the meaning set forth in Section 6.3. 

“Survival Period” has the meaning set forth in Section 10.3.

“Tax Returns” means any return, declaration, report, claim for refund, or information return or statement relating to Taxes filed or required to be filed with any Governmental Authority, including any schedules or attachment thereto, and including any amendment thereof.

“Taxes” means (a) all taxes, assessments, fees and other charges in the nature of a tax imposed by any Governmental Authority, including any federal, state, local or foreign income tax, surtax, remittance tax, presumptive tax, net worth tax, special contribution tax, production tax, severance tax, value added tax, withholding tax, gross receipts tax, profits tax, ad valorem tax, personal property tax, real property tax, sales tax, goods and services tax, transfer tax, use tax, excise tax, franchise tax, occupation tax, payroll tax, employment tax, unemployment tax, disability tax, alternative or add-on minimum tax and estimated tax, and (b) any interest, fine, penalty or additions to tax imposed by a Governmental Authority in connection with any item described in clause (a).

“Title Claims Date” has the meaning set forth in Section 3.1.

“Title Consultant” has the meaning set forth in Section 3.2(g)(iv).

“Title Credit” means any right, circumstance or condition that operates to increase Seller’s Actual NRA in any Tract above the Stated NRA set forth on Exhibit A-1 for such Tract.

“Title Credit Amount” has the meaning set forth in Section 3.2(e).

“Title Deductible” has the meaning set forth in Section 3.2(d)(ii).

“Title Defect” means (i) any Encumbrance, defect or other matter that causes (or if not cured, could reasonably be expected to cause) Seller not to have Defensible Title to any of the Assets; or (ii) any default by Seller under a Lease or Contract or other agreement that (A) has an adverse effect on the operation, value or use of any Asset, (B) prevents Seller from receiving the proceeds of production attributable to Seller’s 

Annex I(k)

 

 

interest in any Asset, or (C) results in cancellation or impairment of Seller’s interest in any Asset.

“Title Defect Amount” has the meaning set forth in Section 3.2(c).

“Title Dispute” has the meaning set forth in Section 3.2(g)(i).

“Title Threshold” has the meaning set forth in Section 3.2(d)(i).

“Tract” has the meaning set forth in Section 2.3.

“Transfer Taxes” means, collectively, transfer, sales, use, excise, documentary, stamp, gross receipts, goods and services, registration or other similar Taxes relating to the transactions contemplated by this Agreement.

“VWAP” per share of Common Stock for any trading period means the per share volume-weighted average price as displayed on Bloomberg page “VWAP” (or its equivalent if such a page is not available) in respect of the period from 9:30 a.m. to 4:00 p.m. New York City time, during such trading period; or if such price is not available, “VWAP” shall mean the market value per share of Common Stock during such trading period as determined, using a volume-weighted average method, by a nationally recognized independent investment banking firm retained by Seller for this purpose.

“Wells” has the meaning set forth in the definition of “Assets”.

Annex I(l)Omnicom Group Inc. S-3ASR

 Exhibit
4.10

 

OMNICOM
FINANCE HOLDINGS PLC,

 

as
Issuer

 

OMNICOM
GROUP INC.,

 

as
Guarantor

 

INDENTURE

 

Dated
as of _____________

 

DEUTSCHE
BANK TRUST COMPANY AMERICAS

 

as
Trustee

 

Debt
Securities

 

     

     

    

 

	TABLE OF CONTENTS
	 	 	 	 
	 	 	 	Page
	 	 	 	 
	ARTICLE I 	DEFINITIONS AND INCORPORATION BY REFERENCE	1
	SECTION 1.1	Definitions	1
	SECTION 1.2	Other Definitions	6
	SECTION 1.3	Incorporation by Reference of Trust Indenture
    Act	6
	SECTION 1.4	Rules of Construction	6
	ARTICLE II 	THE SECURITIES	7
	SECTION 2.1	Issuable in Series	7
	SECTION 2.2	Establishment of Terms of Series of Securities	7
	SECTION 2.3	Execution and Authentication	10
	SECTION 2.4	Registrar and Paying Agent	11
	SECTION 2.5	Paying Agent to Hold Money in Trust	11
	SECTION 2.6	Securityholder Lists	11
	SECTION 2.7	Transfer and Exchange	12
	SECTION 2.8	Mutilated, Destroyed, Lost and Stolen Securities	12
	SECTION 2.9	Outstanding Securities	13
	SECTION 2.10	Treasury Securities	13
	SECTION 2.11	Temporary Securities	13
	SECTION 2.12	Cancellation	14
	SECTION 2.13	Defaulted Interest	14
	SECTION 2.14	Global Securities	14
	SECTION 2.15	CUSIP, ISIN and Common Code Numbers	16
	SECTION 2.16	Securities Denominated in Foreign Currencies	16
	SECTION 2.17	Designated Currency	17
	ARTICLE III	 REDEMPTION	18
	SECTION 3.1	Notice to Trustee	18
	SECTION 3.2	Selection of Securities to be Redeemed	18
	SECTION 3.3	Notice of Redemption	18
	SECTION 3.4	Effect of Notice of Redemption	19
	SECTION 3.5	Deposit of Redemption Price	19
	SECTION 3.6	Securities Redeemed in Part	19

 

    i 

     

    

 

	TABLE OF CONTENTS
	(continued)
	 	 	 	Page
	 	 	 	 
	ARTICLE IV 	COVENANTS	19
	SECTION 4.1	Payment of Principal and Interest	19
	SECTION 4.2	SEC Reports	20
	SECTION 4.3	Compliance Certificate	20
	SECTION 4.4	Stay, Extension and Usury Laws	20
	SECTION 4.5	Corporate Existence	21
	SECTION 4.6	Taxes	21
	ARTICLE V 	SUCCESSORS	21
	SECTION 5.1	 	When the Company and the Guarantor May Merge,
    Etc	21
	SECTION 5.2	 	Successor Corporation Substituted	22
	ARTICLE VI 	DEFAULTS AND REMEDIES	22
	SECTION 6.1	Events of Default	22
	SECTION 6.2	Acceleration of Maturity; Rescission and Annulment	24
	SECTION 6.3	Collection of Indebtedness and Suits for Enforcement
    by Trustee 	25
	SECTION 6.4	Trustee May File Proofs of Claim	26
	SECTION 6.5	Trustee May Enforce Claims Without Possession
    of Securities	27
	SECTION 6.6	Application of Money Collected	27
	SECTION 6.7	Limitation on Suits	27
	SECTION 6.8	Unconditional Right of Holders to Receive Principal
    and Interest	28
	SECTION 6.9	Restoration of Rights and Remedies	28
	SECTION 6.10	Rights and Remedies Cumulative	28
	SECTION 6.11	Delay or Omission Not Waiver	28
	SECTION 6.12	Control by Holders	28
	SECTION 6.13	Waiver of Past Defaults	29
	SECTION 6.14	Undertaking for Costs	29
	ARTICLE VII	 TRUSTEE	29
	SECTION 7.1	Duties of Trustee	29
	SECTION 7.2	Rights of Trustee	31
	SECTION 7.3	Individual Rights of Trustee	32

 

    ii 

     

    

 

	TABLE OF CONTENTS
	(continued)
	 	 	 	Page
	 	 	 	 
	SECTION 7.4	Trustee’s Disclaimer	32
	SECTION 7.5	Notice of Defaults	32
	SECTION 7.6	Reports by Trustee to Holders	32
	SECTION 7.7	Compensation and Indemnity	32
	SECTION 7.8	Replacement of Trustee	33
	SECTION 7.9	Successor Trustee by Merger, Etc	34
	SECTION 7.10	Eligibility; Disqualification	34
	SECTION 7.11	Preferential Collection of Claims	34
	ARTICLE VIII	 SATISFACTION AND DISCHARGE; DEFEASANCE	35
	SECTION 8.1	Satisfaction and Discharge of Indenture	35
	SECTION 8.2	Application of Trust Funds; Indemnification	36
	SECTION 8.3	Legal Defeasance of Securities of any Series	36
	SECTION 8.4	Covenant Defeasance	38
	SECTION 8.5	Repayment to the Company	39
	SECTION 8.6	Reinstatement	39
	ARTICLE IX 	AMENDMENTS AND WAIVERS	39
	SECTION 9.1	Without Consent of Holders	39
	SECTION 9.2	With Consent of Holders	40
	SECTION 9.3	Compliance with Trust Indenture Act	42
	SECTION 9.4	Revocation and Effect of Consents	42
	SECTION 9.5	Notation on or Exchange of Securities	42
	SECTION 9.6	Trustee Protected	42
	ARTICLE X 	MISCELLANEOUS	42
	SECTION 10.1	Trust Indenture Act Controls	42
	SECTION 10.2	Notices	43
	SECTION 10.3	Communication by Holders with Other Holders	44
	SECTION 10.4	Certificate and Opinion as to Conditions Precedent	44
	SECTION 10.5	Statements Required in Certificate or Opinion	44
	SECTION 10.6	Rules by Trustee and Agents	44
	SECTION 10.7	Legal Holidays	44

 

    iii 

     

    

 

	TABLE OF CONTENTS
	(continued)
	 
	 	 	 	Page
	 	 	 	 
	SECTION 10.8	No Recourse Against Others	44
	SECTION 10.9	Counterparts	45
	SECTION 10.10	Governing Laws	45
	SECTION 10.11	No Adverse Interpretation of Other Agreements	45
	SECTION 10.12	Successors	45
	SECTION 10.13	Severability	45
	SECTION 10.14	Table of Contents, Headings, Etc	45
	SECTION 10.15	USA Patriot Act	45
	SECTION 10.16	Force Majeure	46
	SECTION 10.17	Consent to Jurisdiction; Service of Process;
    and Waiver of Jury Trial	46
	ARTICLE XI 	SINKING FUNDS	47
	SECTION 11.1	Applicability of Article	47
	SECTION 11.2	Satisfaction of Sinking Fund Payments with Securities	47
	SECTION 11.3	Redemption of Securities for Sinking Fund	48
	ARTICLE XII 	GUARANTEE OF SECURITIES	48
	SECTION 12.1	Guarantee	48
	ARTICLE XIII 	ADDITIONAL AMOUNTS; CERTAIN TAX PROVISIONS	52
	SECTION 13.1	Redemption Upon Changes in Withholding Taxes	52
	SECTION 13.2	Payment of Additional Amounts	53

 

    iv 

     

    

 

CROSS-REFERENCE
TABLE*

 

	Trust
    Indenture Act Section	Indenture
    Section
	310	(a)(1)	7.10
	 	(a)(2)	7.10
	 	(a)(3)	Not
    Applicable
	 	(a)(4)	Not
    Applicable
	 	(a)(5)	7.10
	 	(b)	7.10
	311	(a)	7.11
	 	(b)	7.11
	312	(a)	2.6
	 	(b)	10.3
	 	(c)	10.3
	313	(a)	7.6
	 	(b)(1)	7.6
	 	(b)(2)	7.6
	 	(c)	7.6
	 	(d)	7.6
	314	(a)	4.2,
    10.5
	 	(b)	Not
    Applicable
	 	(c)(1)	10.4
	 	(c)(2)	10.4
	 	(c)(3)	Not
    Applicable
	 	(d)	Not
    Applicable
	 	(e)	10.5
	 	(f)	Not
    Applicable
	315	(a)	7.1
	 	(b)	7.5
	 	(c)	7.1
	 	(d)	7.1
	 	(e)	6.14
	316	(a)	2.10
	 	(a)(1)(A)	6.12
	 	(a)(1)(B)	6.13
	 	(b)	6.8
	317	(a)(1)	6.3
	 	(a)(2)	6.4
	 	(b)	2.5
	318	(a)	10.1

  

 

*       Note:
This Cross-Reference Table is not part of the Indenture.

 

    v 

     

    

 

INDENTURE
dated as of __________ among OMNICOM FINANCE HOLDINGS PLC, a public limited company organized under the laws of England and Wales
(the “Company”), OMNICOM GROUP INC., a New York corporation (the “Guarantor”), and Deutsche Bank Trust
Company Americas, a New York banking corporation, as Trustee (“Trustee”).

 

Each
of the Company and the Guarantor has duly authorized the execution and delivery of this Indenture to provide for the issuance
from time to time of the Company’s debentures, notes or other evidences of indebtedness to be issued in one or more series
(the “Securities”), to be fully and unconditionally guaranteed by the Guarantor, as herein provided, up to such principal
amount as may from time to time be authorized in or pursuant to one or more resolutions of the Company’s Board of Directors
or by supplemental indenture.

 

Each
party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Securities
issued under this Indenture.

 

ARTICLE
I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION
1.1         Definitions.

 

“Additional
Amounts” has the meaning set forth in Section 13.2.

 

“Affiliate”
of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified person. For the purposes of this definition, “control” (including, with correlative
meanings, the terms “controlled by” and “under common control with”), as used with respect to any person,
shall mean the possession, directly, or indirectly, of the power to direct or cause the direction of the management or policies
of such person, whether through the ownership of voting securities or by agreement or otherwise.

 

“Agent”
means any Registrar or Paying Agent.

 

“Agent
for Service” has the meaning set forth in Section 10.17.

 

“Board
of Directors” means the board of directors of the Company or any duly authorized committee of such board of directors.

 

“Board
Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have
been duly adopted by its Board of Directors or pursuant to authorization by its Board of Directors and to be in full force and
effect on the date of the certificate (and delivered to the Trustee, if appropriate).

 

“Business
Day” means, unless otherwise provided by Board Resolution, Officer’s Certificate of the Company or supplemental
indenture hereto for a particular Series, any day except a Saturday, Sunday or a legal holiday in The City of New York or in The
City of London on which banking institutions are authorized or required by law, regulation or executive order to close.

 

     

     

    

 

“Code”
means the U.S. Internal Revenue Code of 1986, as amended.

 

“Company”
means the party named as such above until a successor replaces it pursuant to this Indenture and thereafter means the successor.

 

“Company
Request” or “Company Order” means a written request or order signed in the name of the Company by
its Principal Financial Officer, a President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary,
an Assistant Secretary or any Director, and delivered to the Trustee.

 

“Corporate
Trust Office” means the designated corporate trust office of the Trustee at which at any particular time its corporate
trust business shall be administered, which office at the date of original execution of this Indenture is located at (i) for purposes
of surrender, transfer or exchange of any Security, Deutsche Bank Trust Company Americas, c/o DB Services Americas, Inc., 5022
Gate Parkway, Suite 200, Jacksonville, FL 32256, Attn: Transfer Department and (ii) for all other purposes, Deutsche Bank Trust
Company Americas, Trust and Agency Services, 60 Wall Street, 24th Floor, MS NYC 60-2405, New York, New York 10005, USA, Attention:
Corporate Team/Omnicom or at any other time at such other address as the Trustee may designate from time to time by notice to
the parties hereto or at the designated corporate trust office of any successor Trustee as to which such successor Trustee may
notify the parties hereto in writing.

 

“Currency”
means Dollars or Foreign Currency.

 

“Debt”
of any person as of any date means, without duplication, all indebtedness of such person in respect of borrowed money, including
all interest, fees and expenses owed in respect thereto (whether or not the recourse of the lender is to the whole of the assets
of such person or only to a portion thereof), or evidenced by bonds, notes, debentures or similar instruments.

 

“Default”
means any event which is, or with the passage of time or giving of notice or both would be, an Event of Default.

 

“Depository”
means, unless otherwise provided in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate of the
Company, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global
Securities, one or more of The Depository Trust Company, New York, New York, Euroclear Bank S.A./N.V., Clearstream Banking, S.A.,
Luxembourg, another clearing agency, or any successor registered as a clearing agency under the Exchange Act, or any other applicable
U.S. or foreign statute or regulation, which, in each case, shall be designated by the Company pursuant to Section 2.2.

 

“Designated
Currency” has the meaning set forth in Section 2.15.

 

“Discount
Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and
payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2.

 

“Dollars”
means the currency of The United States of America.

 

     2

     

    

 

“Dollar
Equivalent” means with respect to any monetary amount in a Currency other than Dollars, at any time for the determination
thereof, the amount of Dollars obtained by converting such Foreign Currency involved in such computation into Dollars at the spot
rate for the purchase of Dollars with the applicable Foreign Currency as published in The Wall Street Journal in the “Exchange
Rates” column under the heading “Currency Trading” on the date two Business Days prior to such determination.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time.

 

“Foreign
Currency” means a currency, currency unit or composite currency, including the euro, issued by the government of one
or more countries other than the United States or by any recognized confederation or association of such governments or a composite
currency the value of which is determined by reference to the values of the currencies of any group of countries.

 

“Foreign
Government Obligations” means, when used in relation to Securities denominated in a Foreign Currency, securities that
are (i) a direct obligation of the government that issued such currency for the payment of which full faith and credit of such
government is pledged or, with respect to Securities of any Series which are denominated in euro, a direct obligation of any member
nation of the European Union for the payment of which obligation the full faith and credit of the respective nation is pledged
so long as such nation has a credit rating at least equal to that of the highest rated member nation of the European Economic
Area or (ii) an obligation of a person controlled or supervised by and acting as an agency or instrumentality for such government,
the payment of which is unconditionally guaranteed as a full faith and credit obligation by such government, which, in either
case, are not callable or redeemable at the option of the issuer thereof and shall also include a depositary receipt issued by
a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with respect to any such Foreign Government Obligation
or a specific payment of principal of or interest on any such Foreign Government Obligation held by such custodian for the account
of the holder of such depositary receipt; provided, however, that (except as required by law) such custodian is not authorized
to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian
in respect of the Foreign Government Obligation or the specific payment of principal of or interest on the Foreign Government
Obligation evidenced by such depositary receipt.

 

“Global
Security” or “Global Securities” means a Security or Securities, as the case may be, in the form
established pursuant to Section 2.2 evidencing all or part of a Series of Securities, issued to the Depository for such Series
or its nominee, and registered in the name of such Depository or nominee.

 

“Guarantee”
means the full and unconditional guarantee by the Guarantor of the Company’s obligations under any Security of any applicable
Series under this Indenture.

 

“Guarantor”
means the party named as such above, any other person identified pursuant to Section 2.2.18 of this Indenture as providing a Guarantee
of any of the Company’s obligations under this Indenture, and their respective successors and assigns.

 

     3

     

    

 

“Holder”
or “Securityholder” means a person in whose name a Security is registered.

 

“Indenture”
means this Indenture as amended or supplemented from time to time and shall include the form and terms of particular Series of
Securities established as contemplated hereunder.

 

“interest”
when used with respect to any Discount Security which by its terms bears interest only after Maturity, means interest payable
after Maturity at the rate prescribed in such Discount Security.

 

“Maturity,”
when used with respect to any Security or installment of principal thereof, means the date on which the principal of such Security
or such installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration
of acceleration, call for redemption, notice of option to elect repayment or otherwise.

 

“Officer”
means the Chairman of the Board, the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, any Vice-President,
the Treasurer, the Secretary, any Assistant Treasurer, any Assistant Secretary or any Director of the Company or the Guarantor,
as applicable.

 

“Officer’s
Certificate” means a certificate signed by any Officer of the Company or the Guarantor, as applicable.

 

“Opinion
of Counsel” means a written opinion of legal counsel who is acceptable to the Trustee. The counsel may be an employee
of or counsel to the Company or the Guarantor.

 

“person”
means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision thereof.

 

“principal”
of a Security means the principal of the Security plus, when appropriate, the premium, if any, on, and any Additional Amounts
in respect of, the Security.

 

“Responsible
Officer” means any officer of the Trustee in its Corporate Trust Office having direct responsibility for the administration
of this Indenture, and also means, with respect to a particular corporate trust matter, any other officer to whom any corporate
trust matter is referred because of his or her knowledge of and familiarity with a particular subject.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“Securities”
means the debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under this Indenture.

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time.

 

“Series”
or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created
pursuant to Sections 2.1 and 2.2 hereof.

 

     4

     

    

 

“Significant
Subsidiary” means (i) any direct or indirect Subsidiary of the Guarantor that would be a “significant subsidiary”
as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such regulation is in effect
on the date hereof, or (ii) any group of direct or indirect Subsidiaries of the Guarantor that, taken together as a group, would
be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities
Act, as such regulation is in effect on the date hereof.

 

“Stated
Maturity” when used with respect to any Security or any installment of principal thereof or interest thereon, means
the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal
or interest is due and payable.

 

“Subsidiary”
of any person means any corporation, partnership, joint venture, limited liability company, trust or estate of which (or in which)
more than 50% of (a) the issued and outstanding voting stock of such person, (b) the interest in the capital or profits of such
limited liability company, partnership or joint venture or (c) the beneficial interest in such trust or estate is at the time
directly or indirectly owned or controlled by such person, by such person and one or more of its other Subsidiaries or by one
or more of such person’s other Subsidiaries.

 

“Taxes”
has the meaning set forth in Section 13.2.

 

“Taxing
Jurisdiction” has the meaning set forth in Section 13.1.

 

“TIA”
means the Trust Indenture Act of 1939 (15 U.S. Code ss. ss. 77aaa-77bbbb), as amended from time to time, and as in effect on the
date of this Indenture; provided, however, that in the event the TIA is amended after such date, “TIA” means, to the
extent required by any such amendment, the Trust Indenture Act as so amended.

 

“Trustee”
means the person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall
have become such pursuant to this Indenture, and thereafter “Trustee” shall mean or include each person who is then
a Trustee hereunder, and if at any time there is more than one such person, “Trustee” as used with respect to the
Securities of any Series shall mean the Trustee with respect to Securities of that Series.

 

“U.S.
Government Obligations” means securities which are (i) direct obligations of the United States of America for the payment
of which its full faith and credit is pledged or (ii) obligations of a person controlled or supervised by and acting as an agency
or instrumentality of the United States of America the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, and which in the case of (i) and (ii) are not callable or redeemable at the option
of the issuer thereof, and shall also include a depositary receipt issued by a bank or trust company as custodian with respect
to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation
held by such custodian for the account of the holder of a depositary receipt, provided that (except as required by law) such custodian
is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received
by the custodian in respect of the U.S. Government Obligation evidenced by such depositary receipt.

 

     5

     

    

 

SECTION
1.2         Other Definitions.

 

	Term	Defined
    in Section
	“Bankruptcy
    Code”	12.1.3
	“Bankruptcy
    Law”	6.1
	“Custodian”	6.1
	“Event
    of Default”	6.1
	“Guaranteed
    Obligations”	12.1.1
	“Legal
    Holiday”	10.7
	“mandatory
    sinking fund payment”	11.1
	“optional
    sinking fund payment”	11.1
	“Paying
    Agent”	2.4
	“Registrar”	2.4
	“successor
    person”	5.1
	“Taxes”	13.2
	“Taxing
    Jurisdiction”	13.1

 

SECTION
1.3         Incorporation by Reference of Trust Indenture
Act. Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part
of this Indenture. The following TIA terms used in this Indenture have the following meanings:

 

“Commission”
means the SEC.

 

“indenture
securities” means the Securities. “indenture security holder” means a Securityholder. “indenture to be
qualified” means this Indenture.

 

“indenture
trustee” or “institutional trustee” means the Trustee.

 

“obligor”
on the Securities means the Company, the Guarantor and any successor obligor upon the Securities.

 

All
other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC
rule under the TIA and not otherwise defined herein are used herein as so defined.

 

SECTION
1.4         Rules of Construction. Unless the context
otherwise requires:

 

(a)         
a term has the meaning assigned to it;

 

(b)         
an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles;

 

(c)         
references to “generally accepted accounting principles” shall mean generally accepted accounting principles in effect
as of the time when and for the period as to which such accounting principles are to be applied;

 

     6

     

    

 

(d)         
“or” is not exclusive;

 

(e)         
words in the singular include the plural, and in the plural include the singular;

 

(f)         
for purposes of the covenants and definitions set forth in this Indenture, amounts stated in Dollars shall be deemed to include
both Dollars and Dollar Equivalents; and

 

(g)         
provisions apply to successive events and transactions.

 

ARTICLE
II

THE SECURITIES

 

SECTION
2.1         Issuable in Series. The aggregate principal
amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in
one or more Series. All Securities of a Series shall be identical except as may be set forth in a Board Resolution, a supplemental
indenture or an Officer’s Certificate of the Company detailing the adoption of the terms thereof pursuant to the authority
granted under a Board Resolution. In the case of Securities of a Series to be issued from time to time, the Board Resolution,
Officer’s Certificate of the Company or supplemental indenture may provide for the method by which specified terms (such
as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined. Securities may differ
between Series in respect of any matters, provided that all Series of Securities shall be equally and ratably entitled to the
benefits of the Indenture.

 

SECTION
2.2         Establishment of Terms of Series of Securities.
At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally,
in the case of Subsection 2.2.1 and either as to such Securities within the Series or as to the Series generally in the case of
Subsections 2.2.2 through 2.2.23) by a Board Resolution, a supplemental indenture or an Officer’s Certificate of the Company
pursuant to authority granted under a Board Resolution:

 

2.2.1         
the title of the Series (which shall distinguish the Securities of that particular Series from the Securities of any other Series);

 

2.2.2         
the price or prices (expressed as a percentage of the principal amount thereof) at which the Securities of the Series will be
issued;

 

2.2.3         
any limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.5);

 

2.2.4         
the date or dates on which the principal of the Securities of the Series is payable;

 

     7

     

    

 

2.2.5         
the rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates
(including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities
of the Series shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or dates
on which such interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest
payment date;

 

2.2.6         
the place or places where the principal of and interest, if any, on the Securities of the Series shall be payable, or the method
of such payment, if by wire transfer, mail or other means;

 

2.2.7         
if applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the Securities
of the Series may be redeemed, in whole or in part, at the option of the Company;

 

2.2.8         
the obligation, if any, of the Company to redeem, purchase or repay the Securities of the Series pursuant to any sinking fund
or analogous provisions or at the option of a Holder thereof upon the happening of any event and the period or periods within
which, the price or prices at which and the terms and conditions upon which Securities of the Series shall be redeemed, purchased
or repaid, in whole or in part, pursuant to such obligation;

 

2.2.9         
the dates, if any, on which and the price or prices at which the Securities of the Series will be repurchased by the Company at
the option of the Holders thereof and other detailed terms and conditions of such repurchase obligations;

 

2.2.10       
if other than minimum denominations of $200,000 and multiples of $1,000 in excess thereof, the minimum denominations in which
the Securities of the Series shall be issuable;

 

2.2.11       
whether the Securities will be issuable as Global Securities, the terms and conditions, if any, upon which such Global Security
may be exchanged in whole or in part for other individual Securities of such Series in definitive registered form, the Depository
for such Global Security and the form of any legend or legends to be borne by any such Global Security in addition to or in lieu
of the legend referred to in Section 2.14.3;

 

2.2.12       
if other than the principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be
payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2;

 

2.2.13       
the manner in which the amounts of payment of principal of or interest, if any, on the Securities of the Series will be determined,
if such amounts may be determined by reference to an index based on a currency or currencies or by reference to a commodity, commodity
index, stock exchange index or financial index;

 

2.2.14       
any addition to or change in the Events of Default which applies to any Securities of the Series and any change in the right of
the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section
6.2;

 

     8

     

    

 

2.2.15       
any addition to or change in the covenants set forth in Articles IV, V or XII which applies to Securities of the Series;

 

2.2.16       
any other terms of the Securities of the Series (which terms shall not be inconsistent with the provisions of this Indenture,
except as permitted by Section 9.1, but which may modify or delete any provision of this Indenture insofar as it applies to such
Series);

 

2.2.17       
any depositories, interest rate calculation agents, or other agents with respect to Securities of such Series if other than those
appointed herein;

 

2.2.18       
the form and terms of the Guarantee, including any corresponding changes to the provisions of this Indenture as then in effect;

 

2.2.19       
the provisions relating to any security provided for the Securities of the Series;

 

2.2.20       
the subordination, if any, of the Securities of the Series pursuant to this Indenture and any changes or additions to the provisions
of this Indenture then in effect;

 

2.2.21       
if and as applicable, the terms and conditions of any right to exchange for or convert Securities of the Series into shares of
common stock of the Guarantor;

 

2.2.22       
any listing on a securities exchange; and

 

2.2.23       
the Currency or Currencies in which payment of the principal of, premium, if any, and interest on, Securities of the Series shall
be payable.

 

All
Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms
of this Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture or Officer’s Certificate
of the Company referred to above, and the authorized principal amount of any Series may not be increased to provide for issuances
of additional Securities of such Series, unless otherwise provided in such Board Resolution, supplemental indenture or Officer’s
Certificate of the Company.

 

The
Securities of each Series shall be in substantially the form set forth in Exhibit A to this Indenture, or in such other form as
shall be established by or pursuant to a Board Resolution or in one or more indentures supplemental hereto, in each case with
such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and
may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required
to comply with the rules of any securities exchange or as may, consistent herewith, be determined by the officers executing such
Securities, as evidenced by their execution of the Securities. If the form of Securities of any Series is established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an
Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Company Order contemplated
by Section 2.3 for the authentication and delivery of such Securities.

 

     9

     

    

 

The
definitive Securities shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner,
all as determined by the Officers executing such Securities, as evidenced by their execution of such Securities.

 

SECTION
2.3         Execution and Authentication. Two Officers
shall sign the Securities for the Company by manual, facsimile or electronic signature.

 

If
an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security
shall nevertheless be valid.

 

A
Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

 

The
signature shall be conclusive evidence that the Security has been authenticated under this Indenture.

 

The
Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided
in the Board Resolution, supplemental indenture hereto or Officer’s Certificate of the Company, upon receipt by the Trustee
of a Company Order. Such Company Order may authorize authentication and delivery pursuant to electronic instructions in writing
from the Company or its duly authorized agent or agents. Each Security shall be dated the date of its authentication.

 

The
aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal
amount for such Series set forth in the Board Resolution, supplemental indenture hereto or Officer’s Certificate of the
Company delivered pursuant to Section 2.2, except as provided in Section 2.8.

 

Prior
to the issuance of Securities of any Series, the Trustee shall have received and (subject to Section 7.1) shall be fully protected
in relying on: (a) the Board Resolution, supplemental indenture hereto or Officer’s Certificate of the Company establishing
the form of the Securities of that Series or of Securities within that Series and the terms of the Securities of that Series or
of Securities within that Series, (b) an Officer’s Certificate of the Company complying with Section 10.4, and (c) an Opinion
of Counsel complying with Section 10.4.

 

The
Trustee shall have the right to decline to authenticate and deliver any Securities of such Series: (a) if the Trustee, being advised
by counsel, determines that such action may not lawfully be taken; or (b) if the Trustee in good faith by its board of directors
or trustees, executive committee or a trust committee of directors and/or vice-presidents shall determine that such action would
expose the Trustee to personal liability to Holders of any then outstanding Series of Securities.

 

The
Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An authenticating agent may
authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent has the same rights as an Agent to deal with the Company, the Guarantor
or an Affiliate of either of them.

 

     10

     

    

 

SECTION
2.4         Registrar and Paying Agent. The Company
shall maintain, with respect to each Series of Securities, at the place or places specified with respect to such Series pursuant
to Section 2.2, an office or agency where Securities of such Series may be presented or surrendered for payment (“Paying
Agent”) and where Securities of such Series may be surrendered for registration of transfer or exchange (“Registrar”).
The Registrar shall keep a register with respect to each Series of Securities and to their transfer and exchange. The Company
will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Registrar
or Paying Agent. If at any time the Company shall fail to maintain any such required Registrar or Paying Agent or shall fail to
furnish the Trustee with the name and address thereof, such presentations, surrenders, notices and demands may be made or served
at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.

 

The
Company may also from time to time designate one or more co-registrars or additional paying agents and may from time to time rescind
such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations
to maintain a Registrar and Paying Agent in each place so specified pursuant to Section 2.2 for Securities of any Series for such
purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in
the name or address of any such co-registrar or additional paying agent. The term “Registrar” includes any co-registrar
and the term “Paying Agent” includes any additional paying agent.

 

The
Company hereby appoints the Trustee as the initial Registrar, Paying Agent and custodian of Global Securities for the Depository
for each Series unless another Registrar, Paying Agent or custodian of Global Securities for the Depository, as the case may be,
is appointed prior to the time Securities of that Series are first issued.

 

SECTION
2.5         Paying Agent to Hold Money in Trust.
The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust,
for the benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment
of principal of or interest on the Series of Securities, and will notify the Trustee of any default by the Company in making any
such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee.

 

The
Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the
Paying Agent (if other than the Company, the Guarantor or a Subsidiary of either of them) shall have no further liability for
the money. If the Company, the Guarantor or a Subsidiary of either of them acts as Paying Agent, it shall segregate and hold in
a separate trust fund for the benefit of Securityholders of any Series of Securities all money held by it as Paying Agent.

 

SECTION
2.6         Securityholder Lists. The Trustee shall
preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of
Securityholders of each Series of Securities and shall otherwise comply with TIA ss. 312(a). If the Trustee is not the Registrar,
the Company shall furnish to the Trustee at least ten days before each interest payment date and at such other times as the Trustee
may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses
of Securityholders of each Series of Securities.

 

     11

     

    

 

SECTION
2.7         Transfer and Exchange. Where Securities
of a Series are presented to the Registrar or a co- registrar with a request to register a transfer or to exchange them for an
equal principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its
requirements for such transactions are met. To permit registrations of transfers and exchanges, the Trustee shall authenticate
Securities at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange (except
as otherwise expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or
similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable
upon exchanges pursuant to Sections 2.11, 3.6 or 9.5).

 

None
of the Company, the Guarantor or the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities
of any Series for the period beginning at the opening of business fifteen days immediately preceding the mailing or electronic
delivery of a notice of redemption of Securities of that Series selected for redemption and ending at the close of business on
the day of such mailing or electronic delivery, or (b) to register the transfer of or exchange Securities of any Series selected,
called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being
called for redemption in part.

 

SECTION
2.8         Mutilated, Destroyed, Lost and Stolen Securities.
If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver
in exchange therefor a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously
outstanding.

 

If
there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of
any Security and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them
harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a protected purchaser,
the Company shall execute and upon its request the Trustee shall authenticate and make available for delivery, in lieu of any
such destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing
a number not contemporaneously outstanding.

 

In
case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company or the
Guarantor in its discretion may, instead of issuing a new Security, pay such Security.

 

Upon
the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of
the Trustee) connected therewith.

 

     12

     

    

 

Every
new Security of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute
an original additional contractual obligation of the Company and the Guarantor, as applicable, whether or not the destroyed, lost
or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Securities of that Series duly issued hereunder.

 

The
provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

SECTION
2.9         Outstanding Securities. The Securities
outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to
it for cancellation, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions
hereof and those described in this Section as not outstanding.

 

If
a Security is replaced pursuant to Section 2.8, it ceases to be outstanding until the Trustee receives proof satisfactory to it
that the replaced Security is held by a protected purchaser. Additionally, if a Security is paid pursuant to Section 2.8, it ceases
to be outstanding.

 

If
the Paying Agent (other than the Company, the Guarantor, a Subsidiary of either of them or an Affiliate of any thereof) holds
on the Maturity of Securities of a Series money sufficient to pay such Securities payable on that date, then on and after that
date such Securities of the Series cease to be outstanding and interest on them ceases to accrue unless otherwise provided by
a Board Resolution, a supplemental indenture or an Officer’s Certificate of the Company with respect to any Series.

 

A
Security does not cease to be outstanding because the Company, the Guarantor or an Affiliate of either of them holds the Security.

 

In
determining whether the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding
for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination
upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2.

 

SECTION
2.10       Treasury Securities. In determining whether the Holders of the
required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction, notice, consent
or waiver, Securities of a Series owned by the Company, the Guarantor or an Affiliate of either of them shall be disregarded,
except that for the purposes of determining whether the Trustee shall be protected in relying on any such request, demand, authorization,
direction, notice, consent or waiver only Securities of a Series that a responsible officer in the Corporate Trust Office of the
Trustee knows are so owned shall be so disregarded.

 

SECTION
2.11       Temporary Securities. Until definitive Securities are ready
for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order. Temporary
Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate
for temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee upon request shall authenticate
definitive Securities of the same Series and date of maturity in exchange for temporary Securities. Until so exchanged, temporary
Securities shall have the same rights under this Indenture as the definitive Securities.

 

     13

     

    

 

SECTION
2.12       Cancellation. The Company at any time may deliver Securities
to the Trustee for cancellation.

 

The
Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange
or payment. The Trustee shall cancel all Securities surrendered for registration of transfer, exchange, payment, replacement or
cancellation and shall dispose of such canceled Securities in accordance with its customary procedures (subject to the record
retention requirement of the Exchange Act) and upon written instruction from the Company deliver a certificate of such destruction
to the Company, unless the Company otherwise directs. The Company may not issue new Securities to replace Securities that it has
paid or delivered to the Trustee for cancellation.

 

SECTION
2.13       Defaulted Interest. If the Company defaults in a payment of
interest on a Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law, any interest payable
on the defaulted interest, to the persons who are Securityholders of the Series on a subsequent special record date. The Company
shall fix the record date and payment date. At least 30 days before the record date, the Company shall mail or electronically
deliver to the Trustee and to each Securityholder of the Series a notice that states the record date, the payment date and the
amount of interest to be paid. The Company may pay defaulted interest in any other lawful manner.

 

SECTION
2.14       Global Securities.

 

2.14.1       
General; Terms of Securities. A Board Resolution, a supplemental indenture hereto or an Officer’s Certificate of
the Company shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more
Global Securities and the Depository for such Global Security or Securities. If the Company shall establish that the Securities
of a particular Series are to be issued as a Global Security, then the Company shall execute one or more Global Securities that
(i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all of the outstanding
Securities of such Series, (ii) shall be registered in the name of the Depository or its nominee and (iii) shall be delivered
to the Trustee as custodian for the Depository or otherwise delivered pursuant to the Depository’s instruction, and the
Trustee, in accordance with Section 2.3, shall authenticate such Global Security or Global Securities.

 

2.14.2       
Transfer and Exchange. Notwithstanding any provisions to the contrary contained in Section 2.7 of the Indenture and in
addition thereto, any Global Security shall be exchangeable pursuant to Section 2.7 of the Indenture for Securities registered
in the names of Holders other than the Depository for such Security or its nominee only if (i) such Depository notifies the Company
that it is unwilling or unable to continue as Depository for such Global Security or if at any time such Depository ceases to
be a clearing agency registered under the Exchange Act or any other applicable U.S. or foreign statute or regulation, and, in
either case, the Company fails to appoint a successor Depository within 90 days of such event, (ii) the Company executes and delivers
to the Trustee an Officer’s Certificate to the effect that such Global Security shall be so exchangeable or (iii) an Event
of Default with respect to the Securities represented by such Global Security shall have happened and be continuing. Any Global
Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names
as the Depository shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Security
with like tenor and terms.

 

     14

     

    

 

Except
as provided in this Section 2.14.2, a Global Security may not be transferred except as a whole by the Depository with respect
to such Global Security to a nominee of such Depository, by a nominee of such Depository to such Depository or another nominee
of such Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.

 

The
Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed
under this Indenture or under applicable law with respect to any transfer of any interest in any Security other than to require
delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly
required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express
requirements hereof.

 

Neither
the Trustee nor any Agent shall have any responsibility or liability for any actions taken or not taken by the Depository.

 

2.14.3       
Legend. Any Global Security issued hereunder shall bear a legend in substantially the following form: “THIS GLOBAL
SECURITY IS HELD BY THE DEPOSITORY (AS DEFINED IN THE

 

INDENTURE
GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO
ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE ANY SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT
TO THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.7 OF THE INDENTURE,
(III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO THE INDENTURE AND (IV) THIS GLOBAL SECURITY
MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS
A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR TO ANOTHER NOMINEE
OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.
UNLESS THIS GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF ANY ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS MADE TO SUCH ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF HAS AN INTEREST HEREIN.”

 

     15

     

    

 

2.14.4       
Acts of Holders. The Depository, as a Holder, may appoint agents and otherwise authorize participants to give or take any
request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take
under the Indenture.

 

2.14.5       
Payments. Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section
2.2, payment of the principal of and interest, if any, on any Global Security shall be made to the Holder thereof.

 

2.14.6       
Consents, Declaration and Directions. Except as provided in Section 2.14.4, the Company, the Guarantor, the Trustee and
any Agent shall treat a person as the Holder of such principal amount of outstanding Securities of such Series represented by
a Global Security as shall be specified in a written statement of the Depository with respect to such Global Security, for purposes
of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture.
Notwithstanding the foregoing, prior to the due presentation for registration of transfer of any Security, the Company, the Guarantor,
the Trustee and the Agents may deem and treat the person in whose name a Security is registered as the owner of such Security
for the purpose of receiving payment of principal of, premium, if any, and interest on such Security and for all other purposes
whatsoever (except for purposes of obtaining any consents, declarations, waivers or directions) including the transfer or exchange
of such Security, whether or not such Security is overdue, and none of the Company, the Guarantor, the Trustee or the Agents shall
be affected by notice to the contrary.

 

SECTION
2.15       CUSIP, ISIN and Common Code Numbers. The Company in issuing
the Securities may use CUSIP, ISIN and/or Common Code numbers (if then generally in use), and, if so, the Trustee shall use CUSIP,
ISIN and/or Common Code numbers in notices of redemption as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any
notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities,
and any such redemption shall not be affected by any defect in or omission of such numbers. The Company shall promptly notify
the Trustee in writing of any change in the CUSIP, ISIN and/or Common Code numbers.

 

SECTION
2.16       Securities Denominated in Foreign Currencies. Except as otherwise
specified pursuant to Section 2.2 for Securities of any Series, payment of the principal of, premium, if any, and interest on,
Securities of such Series denominated in any Foreign Currency will be made in such Foreign Currency.

 

     16

     

    

 

In
the event any Foreign Currency or Currencies in which any payment with respect to any Series of Securities may be made ceases
to be a freely convertible Currency on United States Currency markets, for any date thereafter on which payment of principal of,
premium, if any, or interest on the Securities of a Series is due, the Company shall select the Currency of payment for use on
such date, all as provided in the Securities of such Series, in a Board Resolution, a supplemental indenture or an Officer’s
Certificate. In such event, the Company shall notify the Trustee of the Currency which it has selected to constitute the funds
necessary to meet the Company’s obligations on such payment date and of the amount of such Currency to be paid. Such amount
shall be determined as provided in the Securities of such Series, in a Board Resolution, a supplemental indenture or an Officer’s
Certificate of the Company. The payment with respect to such payment date shall be deposited with the Trustee or the Paying Agent
by the Company or the Guarantor solely in the Currency so selected.

 

SECTION
2.17       Designated Currency. The Company may provide pursuant to Section
2.2 for Securities of any Series that:

 

(a)         
the obligation, if any, of the Company to pay the principal of, premium, if any, and interest on the Securities of any Series
in a Foreign Currency or Dollars (the “Designated Currency”) as may be specified pursuant to Section 2.2.23 is of
the essence and agrees that, to the fullest extent possible under applicable law, judgments in respect of Securities of such Series
shall be given in the Designated Currency;

 

(b)         
the obligation of the Company to make payments in the Designated Currency of the principal of, premium, if any, and interest on
such Securities shall be discharged, notwithstanding any payment in any other Currency (whether pursuant to a judgment or otherwise),
only to the extent of the amount in the Designated Currency that the Securityholder receiving such payment, in accordance with
normal banking procedures, may purchase with the amount paid in such other Currency after any premium and cost of exchange on
the business day in the country of issue of the Designated Currency or in the international banking community immediately following
the day on which such Securityholder receives such payment;

 

(c)         
if the amount in the Designated Currency that may be so purchased for any reason falls short of the amount originally due, the
Company shall pay such additional amounts as may be necessary to compensate for such shortfall; and

 

(d)         
any obligation of the Company not discharged by such payment shall be due as a separate and independent obligation and, until
discharged as provided herein, shall continue in full force and effect.

 

     17

     

    

 

ARTICLE
III

REDEMPTION

 

SECTION
3.1         Notice to Trustee. The Company may, with
respect to any Series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and
pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided
for in such Securities. If a Series of Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated
Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, the Company shall notify the
Trustee of the redemption date and the principal amount of Series of Securities to be redeemed. The Company shall give the notice
at least 45 days before the redemption date (or such shorter notice as may be acceptable to the Trustee).

 

SECTION
3.2         Selection of Securities to be Redeemed.
Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental indenture or an Officer’s Certificate
of the Company, if less than all the Securities of a Series are to be redeemed, the Trustee shall select the Securities of the
Series to be redeemed in any manner in accordance with the procedures of the Depository. The Trustee shall make the selection
from Securities of the Series outstanding not previously called for redemption. The Trustee may select for redemption portions
of the principal of Securities of the Series that have denominations larger than $200,000. Securities of the Series and portions
of them it selects shall be in amounts of $200,000 or multiples of $1,000 in excess thereof or, with respect to Securities of
any Series issuable in other denominations or other Currencies pursuant to Section 2.2.10 and Section 2.2.23, respectively, the
minimum principal denomination for each Series and integral multiples thereof and the applicable Currency for such Series. Provisions
of this Indenture that apply to Securities of a Series called for redemption also apply to portions of Securities of that Series
called for redemption.

 

SECTION
3.3         Notice of Redemption. Unless otherwise
indicated for a particular Series by Board Resolution, a supplemental indenture hereto or an Officer’s Certificate of the
Company, at least 15 days but not more than 60 days before a redemption date, the Company shall mail a notice of redemption by
first-class mail (or deliver such notice electronically in accordance with the procedures of the Depository) to each Holder whose
Securities are to be redeemed.

 

The
notice shall identify the Securities of the Series to be redeemed and shall state:

 

(a)         
the redemption date;

 

(b)         
the redemption price;

 

(c)         
if any Security is being redeemed in part, the portion of the principal amount of such Security to be redeemed and that, after
the redemption date upon surrender of such Security, a new Security or Securities in principal amount equal to the unredeemed
portion shall be issued upon cancellation of the original Security;

 

(d)         
the name and address of the Paying Agent;

 

     18

     

    

 

(e)         
that Securities of the Series called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

(f)         
that interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date;

 

(g)         
the CUSIP, ISIN or Common Code numbers, if any, printed on the Securities being redeemed;

 

and

 

(h)         
any other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed.

 

At
the Company’s request and upon its provision of such notice information, the Trustee shall give the notice of redemption
in the Company’s name and at its expense.

 

SECTION
3.4         Effect of Notice of Redemption. Once
notice of redemption is mailed or delivered electronically as provided in Section 3.3, Securities of a Series called for redemption
become due and payable on the redemption date and at the redemption price. A notice of redemption may not be conditional. Upon
surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to the redemption date.
On and after the redemption date, interest will cease to accrue on the Securities or any portion of the Securities called for
redemption (unless the Company defaults in the payment of the redemption price and accrued interest).

 

SECTION
3.5         Deposit of Redemption Price. On or before
10:00 a.m. New York City time (or such other time as may be specified pursuant to Section 2.2 with respect to any Security denominated
in a Foreign Currency) on the redemption date, the Company or the Guarantor shall deposit with the Paying Agent money sufficient
to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date.

 

SECTION
3.6         Securities Redeemed in Part. Upon surrender
of a certificated Security that is redeemed in part, the Trustee shall authenticate for the Holder a new certificated Security
of the same Series and the same maturity equal in principal amount to the unredeemed portion of the certificated Security surrendered.

 

ARTICLE
IV

COVENANTS

 

SECTION
4.1         Payment of Principal and Interest. The
Company covenants and agrees for the benefit of the Holders of each Series of Securities that the Company will duly and punctually
pay the principal of and interest, if any, on the Securities of that Series in accordance with the terms of such Securities and
this Indenture. Any amounts to be given to the Trustee or Paying Agent, shall be deposited with the Trustee or Paying Agent by
10:00 a.m., New York City time (or such other time as may be specified pursuant to Section 2.2 with respect to any Security denominated
in a Foreign Currency), by the Company or the Guarantor. Such payments shall be considered made on the date due if on such date
the Trustee or the Paying Agent holds, in accordance with this Indenture, money sufficient to make all payments with respect to
such Securities then due and the Trustee or the Paying Agent, as the case may be, is not prohibited from paying such money to
the Holders on that date pursuant to the terms of this Indenture.

 

     19

     

    

 

SECTION
4.2         SEC Reports. The Guarantor shall deliver
to the Trustee within 15 days after it files them with the SEC copies of the annual reports and of the information, documents,
and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which
the Guarantor is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company and the Guarantor
also shall comply with the other provisions of TIA ss. 314(a). For the avoidance of doubt, the Guarantor will be deemed to have
furnished such reports referred to above to the Trustee and the Holders, as applicable, if the Guarantor has filed such reports
with the SEC via its Electronic Data Gathering, Analysis and Retrieval (EDGAR) System filing system (or any successor system thereto)
and such reports are publicly available. The Guarantor will notify the Trustee of the filing by email or otherwise.

 

Delivery
of such reports, information and documents to the Trustee is for informational purposes only, and the Trustee’s receipt
of such shall not constitute constructive notice of any information contained therein or determinable from information contained
therein, including the Company’s or the Guarantor’s compliance with any of their covenants hereunder (as to which
the Trustee is entitled to conclusively rely exclusively on an Officer’s Certificate).

 

SECTION
4.3         Compliance Certificate. The Company and
the Guarantor shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company, an Officer’s
Certificate signed by one of the principal executive, financial or accounting officers of the Company and the Guarantor, stating
that a review of the activities of the Company, the Guarantor and their respective Subsidiaries during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to determining whether the Company and the Guarantor have
kept, observed, performed and fulfilled their obligations under this Indenture, and further stating, as to each such Officer signing
such certificate, that to the best of his or her knowledge the Company and the Guarantor have kept, observed, performed and fulfilled
each and every covenant contained in this Indenture and are not in default in the performance or observance of any of the terms,
provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events
of Default of which he or she may have knowledge).

 

The
Company will, so long as any of the Securities are outstanding, deliver in writing to a Responsible Officer of the Trustee, within
10 Business Days after becoming aware of any Default or Event of Default that is continuing, an Officer’s Certificate specifying
such Default or Event of Default and what action the Company has taken, is taking or proposes to take with respect thereto.

 

SECTION
4.4         Stay, Extension and Usury Laws. The Company
and the Guarantor covenant (to the extent that they may lawfully do so) that they will not at any time insist upon, plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or
at any time hereafter in force, which may affect the covenants or the performance of this Indenture, the Guarantee or the Securities;
and the Company and the Guarantor (to the extent they may lawfully do so) hereby expressly waive all benefit or advantage of any
such law and covenant that they will not, by resort to any such law, hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such power as though no such law has been enacted.

 

     20

     

    

 

SECTION
4.5         Corporate Existence. Subject to Article
V, the Company and the Guarantor will do or cause to be done all things necessary to preserve and keep in full force and effect
their corporate existence and the corporate, partnership or other existence of each Significant Subsidiary in accordance with
the respective organizational documents of each Significant Subsidiary and the rights (charter and statutory), licenses and franchises
of the Company, the Guarantor and the Significant Subsidiaries; provided, however, that the Company and the Guarantor shall not
be required to preserve any such right, license or franchise, or the corporate, partnership or other existence of any Significant
Subsidiary, if the Company’s Board of Directors shall determine that the preservation thereof is no longer desirable in
the conduct of the business of the Company, the Guarantor and their respective Subsidiaries taken as a whole and that the loss
thereof is not adverse in any material respect to the Holders.

 

SECTION
4.6         Taxes. The Company and the Guarantor
shall, and the Guarantor shall cause, its Significant Subsidiaries to, pay prior to delinquency all material taxes, assessments
and governmental levies, except as contested in good faith and by appropriate proceedings.

 

ARTICLE
V

SUCCESSORS

 

SECTION
5.1         When the Company and the Guarantor May Merge,
Etc. The Company and the Guarantor shall not consolidate with or merge into, or convey, transfer or lease all or substantially
all of their respective properties and assets to, any person (a “successor person”), except in the case of the Company
with, into or to the Guarantor or any other Subsidiary of the Guarantor (provided that the successor person (if any) expressly
assumes by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the Company’s
obligations on the Securities and under this Indenture), unless:

 

(a)         
either (i) the Company or the Guarantor, as applicable, is the successor person or (ii) the successor person is a corporation,
partnership, trust or other entity organized and validly existing under the laws of (1) in the case of the Company, the United
Kingdom, any member country of the European Union or any U.S. domestic jurisdiction or (2) in the case of the Guarantor, any U.S.
domestic jurisdiction;

 

(b)         
the successor person expressly assumes by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, (i) in the case of the Company, the Company’s obligations on the Securities and under this Indenture or
(ii) in the case of the Guarantor, the Guarantor’s obligations with respect to its Guarantee of the Securities and under
this Indenture; and

 

     21

     

    

 

(c)         
immediately after giving effect to the transaction, no Default or Event of Default, shall have occurred and be continuing.

 

The
Company or the Guarantor, as applicable, shall deliver to the Trustee prior to the consummation of the proposed transaction an
Officer’s Certificate to the foregoing effect and an Opinion of Counsel stating that the proposed transaction and such supplemental
indenture comply with this Indenture.

 

For
purposes of the foregoing, the conveyance, transfer or lease of the properties and assets of one or more Subsidiaries of the Company
or the Guarantor, as applicable (other than to the Guarantor or any other Subsidiary of the Guarantor), which, if such assets
were owned by the Company or the Guarantor, as applicable, would constitute all or substantially all of the properties and assets
of the Company or the Guarantor, as applicable, shall be deemed to be the transfer of all or substantially all of the properties
and assets of the Company or the Guarantor, as applicable, but a bona fide pledge or hypothecation will be deemed not to be prohibited
by this Indenture.

 

SECTION
5.2         Successor Corporation Substituted. Upon
any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of
the Company or the Guarantor, as applicable, in accordance with Section 5.1, the successor corporation formed by such consolidation
or into or with which the Company or the Guarantor, as applicable, is merged or to which such sale, lease, conveyance or other
disposition is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company or the Guarantor,
as applicable, under this Indenture with the same effect as if such successor person has been named as the Company or the Guarantor,
as applicable, herein; provided, however, that the predecessor Company or the Guarantor, as applicable, in the case of a sale,
lease, conveyance or other disposition shall not be released from the obligation to pay the principal of and interest, if any,
on the Securities. The Company or the Guarantor, as applicable, the Trustee and the successor person shall enter into a supplemental
indenture to evidence the succession and substitution of such successor person and such discharge and release of the Company or
the Guarantor, as applicable.

 

ARTICLE
VI

DEFAULTS AND REMEDIES

 

SECTION
6.1         Events of Default.

 

“Event
of Default,” wherever used herein with respect to Securities of any Series, means any one of the following events, unless
in the establishing Board Resolution, supplemental indenture or Officer’s Certificate of the Company, it is provided that
such Series shall not have the benefit of said Event of Default:

 

(a)         
default in the payment of any interest on any Security of that Series when it becomes due and payable, and continuance of such
default for a period of 30 days (unless the entire amount of such payment is deposited by the Company or the Guarantor with the
Trustee or with a Paying Agent prior to the expiration of such period of 30 days); or

 

     22

     

    

 

(b)         
default in the payment of the principal, other than a scheduled installment payment, or premium, if any, of any Security of that
Series when such payment becomes due and payable, at its Maturity, upon redemption, by acceleration or otherwise; or

 

(c)         
default in the deposit of any sinking fund payment, when as due in respect of any Security of that Series; or

 

(d)         
default in the performance or breach of any covenant or warranty of the Company or the Guarantor in this Indenture (other than
a covenant or warranty that has been included in this Indenture solely for the benefit of a Series of Securities other than that
Series), which default continues uncured for a period of 60 days after there has been given, by registered or certified mail,
to the Company and the Guarantor by the Trustee or to the Company, the Guarantor and the Trustee by the Holders of at least 25%
in aggregate principal amount of the outstanding Securities of that Series a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or

 

(e)         
(A) the Company’s or the Guarantor’s failure to make any payment by the end of any applicable grace period after maturity
of their respective indebtedness, which term as used in this clause (e) means obligations (other than nonrecourse obligations)
of the Company or the Guarantor for borrowed money or evidenced by bonds, debentures, notes or similar instruments in an amount
(taken together with amounts in (B)) in excess of $100 million and continuance of such failure, or (B) the acceleration of their
respective indebtedness in an amount (taken together with the amounts in (A)) in excess of $100 million because of a default with
respect to such indebtedness without such indebtedness having been discharged or such acceleration having been cured, waived,
rescinded or annulled in case of (A) or (B) above, for a period of 30 days after written notice to the Company and the Guarantor
by the Trustee or to the Company, the Guarantor and the Trustee by the Holders of at least 25% in aggregate principal amount of
the outstanding Securities of that Series; however, if any such failure or acceleration referred to in (A) or (B) above shall
cease or be cured or be waived, rescinded or annulled in accordance with the terms of the applicable indebtedness, then the Event
of Default by reason thereof shall be deemed not to have occurred;

 

(f)         
the Company, the Guarantor or any of the Significant Subsidiaries pursuant to or within the meaning of any Bankruptcy Law:

 

(i)          
commences a voluntary case,

 

(ii)         
consents to the entry of an order for relief against it in an involuntary case,

 

(iii)        
consents to the appointment of a Custodian of it or for all or substantially all of its property, or

 

     23

     

    

 

(iv)        
makes a general assignment for the benefit of its creditors;

 

(g)         
a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(i)          
is for relief against the Company, the Guarantor or any of the Significant Subsidiaries in an involuntary case,

 

(ii)         
appoints a Custodian of the Company, the Guarantor or any of the Significant Subsidiaries or for all or substantially all of its
respective property, or

 

(iii)        
orders the liquidation of the Company, the Guarantor or any of the Significant Subsidiaries, and the order or decree remains unstayed
and in effect for 60 days;

 

(h)         
the Guarantee by the Guarantor ceases to be in full force and effect or is declared null and void or the Guarantor denies that
it has any further liability under its Guarantee to the Holders of Securities of that Series, or has given notice to such effect
(other than by reason of the release of such Guarantee in accordance with this Indenture), and such condition shall have continued
for a period of 30 days after written notice has been given to the Company and the Guarantor by the Trustee or to the Company,
the Guarantor and the Trustee by the Holders of at least 25% in aggregate principal amount of the outstanding Securities of that
Series; or

 

(i)          
any other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental
indenture hereto or an Officer’s Certificate of the Company, in accordance with Section 2.2.14.

 

The
term “Bankruptcy Law” means Title 11, U.S. Code, UK Insolvency Act 1986 or any similar foreign, federal or State law
for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, administrator, administrative
receiver, liquidator or similar official under any Bankruptcy Law.

 

SECTION
6.2         Acceleration of Maturity; Rescission and
Annulment. If an Event of Default with respect to Securities of any Series at the time outstanding occurs and is continuing
(other than an Event of Default as to the Company or the Guarantor referred to in Section 6.1(f) or (g)) then in every such case
the Trustee or the Holders of not less than 25% in aggregate principal amount of the outstanding Securities of that Series may
declare the principal amount (or, if any Securities of that Series are Discount Securities, such portion of the principal amount
as may be specified in the terms of such Securities) of and accrued and unpaid interest, if any, on all of the Securities of that
Series to be due and payable immediately, by a notice in writing to the Company and the Guarantor (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any,
shall become immediately due and payable. If an Event of Default specified in Section 6.1(f) or (g) shall occur as to the Company
or the Guarantor, the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Securities
shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or
any Holder.

 

     24

     

    

 

At
any time after such a declaration of acceleration with respect to any Series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in
principal amount of the outstanding Securities of that Series, by written notice to the Company, the Guarantor and the Trustee,
may rescind and annul such declaration and its consequences if:

 

(a)         
the Company or the Guarantor has paid or deposited with the Trustee a sum sufficient to pay

 

(i)          
all overdue interest, if any, on all Securities that Series,

 

(ii)         
the principal of any Securities of that Series that has become due otherwise than by such declaration of and interest thereon
at the rate or rates therefor in such Securities,

 

(iii)        
to the extent that payment of such interest is legally enforceable, interest upon any overdue principal and overdue interest at
the rate or rates prescribed therefor in such Securities of that Series, and that if:

 

(iv)        
all sums paid or advanced by the Trustee and the reasonable compensation, expenses, and advances of the Trustee, its agents and
counsel; and

 

(b)         
all Events of Default with respect to Securities of that Series, other than the non-payment of the principal and interest of Securities
of that Series which has become due solely by such declaration of acceleration, have been cured or waived as provided in Section
6.13.

 

No
such rescission shall affect any subsequent Default or impair any right consequent thereon.

 

SECTION
6.3        Collection of Indebtedness and Suits for
Enforcement by Trustee. The Company covenants

 

(a)         
default is made in the payment of any interest on any Security when such interest becomes due and payable and such default for
a period of 30 days, or

 

(b)         
default is made in the payment of principal of any Security at the Maturity thereof, or

 

(c)         
default is made in the deposit of any sinking fund payment when and as due by the terms of a Security,

 

then,
the Company will, upon demand of the Trustee, pay to them, for the benefit of the Holders of such Securities, the whole amount
then due and payable on such Securities for principal and interest and, to the extent that payment of such interest shall be legally
enforceable, interest on any overdue principal or any overdue interest, at the rate or rates prescribed therefor in such Securities,
and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

     25

     

    

 

If
the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust,
may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment
or final decree and may enforce the same against the Company or the Guarantor upon such Securities and collect the moneys adjudged
or deemed to be payable in the manner provided by law out of the property of the Company or the Guarantor upon such Securities,
wherever situated.

 

If
an Event of Default with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed
to protect and enforce its rights and the rights of the Holders of Securities of such Series by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant
or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

SECTION
6.4         Trustee May File Proofs of Claim. In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition
or other judicial proceeding relative to the Company or the Guarantor upon the Securities or the property of the Company or the
Guarantor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable
as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the
Company or the Guarantor for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in
such proceeding or otherwise,

 

(a)         
to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Securities and to
file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any
claim for the reasonable compensation, expenses, indemnity, disbursements and advances of the Trustee, its agents and counsel)
and of the Holders allowed in such judicial proceeding, and

 

(b)         
to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same, and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding
is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7.

 

Nothing
herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof
or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

     26

     

    

 

SECTION
6.5        Trustee May Enforce Claims Without Possession
of Securities. All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the
Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any
such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been
recovered.

 

SECTION
6.6        Application of Money Collected. Any money
collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money on account of principal or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

 

First:
To the payment of all amounts due the Trustee under Section 7.7; and

 

Second:
To the payment of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the
benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities for principal and interest, respectively; and

 

Third:
To the Company or as a court of competent jurisdiction may direct in a final non-appealable judgment.

 

SECTION
6.7        Limitation on Suits. No Holder of any
Security of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless

 

(a)         
such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities
of that Series;

 

(b)         
the Holders of not less than 25% in principal amount of the outstanding Securities of that Series shall have made written request
to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

 

(c)         
such Holder or Holders have offered to the Trustee indemnity or security satisfactory to it against the costs, expenses and liabilities
to be incurred in compliance with such request;

 

(d)         
the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding;
and

 

(e)         
no direction inconsistent with such written request has been given to the Trustee during such 60- day period by the Holders of
a majority in principal amount of the outstanding Securities of that Series; it being understood and intended that no one or more
of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to
affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference
over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the
equal and ratable benefit of all such Holders.

 

     27

     

    

 

SECTION
6.8           Unconditional Right of Holders to Receive
Principal and Interest. Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right,
which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Security on the Stated
Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date) and to institute
suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

 

SECTION
6.9           Restoration of Rights and Remedies. If
the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and
in every such case, subject to any determination in such proceeding, the Company, the Guarantor, the Trustee and the Holders shall
be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee
and the Holders shall continue as though no such proceeding had been instituted.

 

SECTION
6.10         Rights and Remedies Cumulative. Except as otherwise provided
with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder,
or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

SECTION
6.11         Delay or Omission Not Waiver. No delay or omission of the Trustee
or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this
Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient,
by the Trustee or by the Holders, as the case may be.

 

SECTION
6.12         Control by Holders. The Holders of a majority in principal amount
of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities
of such Series, provided that

 

(a)         
such direction shall not be in conflict with any rule of law or with this Indenture,

 

(b)         
the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction, and

 

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(c)         
subject to the provisions of Section 7.1, the Trustee shall have the right to decline to follow any such direction if the Trustee
in good faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would involve the Trustee
in personal liability.

 

SECTION
6.13      Waiver of Past Defaults. Subject to Section 6.2, the Holders
of not less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all
the Securities of such Series waive any past Default hereunder with respect to such Series and its consequences, except a Default
in the payment of the principal of or interest on any Security of such Series (provided, however, that the Holders of a majority
in principal amount of the outstanding Securities of any Series may rescind an acceleration and its consequences, including any
related payment default that resulted from such acceleration). Upon any such waiver, such Default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver
shall extend to any subsequent or other Default or impair any right consequent thereon.

 

SECTION
6.14      Undertaking for Costs. All parties to this Indenture agree,
and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the
costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company or the Guarantor, to
any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than
10% in principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement
of the payment of the principal of or interest on any Security on or after the Stated Maturity or Stated Maturities expressed
in such Security (or, in the case of redemption, on the redemption date).

 

ARTICLE
VII

TRUSTEE

 

SECTION
7.1         Duties of Trustee. (a) If an Event of
Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use
the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct
of his own affairs.

 

(a)         
Except during the continuance of an Event of Default:

 

(i)          
The Trustee need perform only those duties that are specifically set forth in this Indenture and no others and no implied duties
shall be read into this Indenture against the Trustee.

 

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(ii)         
In the absence of gross negligence or willful misconduct on its part, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon Officer’s Certificates or Opinions of Counsel furnished
to the Trustee and conforming to the requirements of this Indenture; however, in the case of any such Officer’s Certificates
or Opinions of Counsel which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall
examine such Officer’s Certificates and Opinions of Counsel to determine whether or not they conform to the requirements
of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein).

 

(b)         
The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful
misconduct, except that:

 

(i)          
This paragraph does not limit the effect of paragraph (b) of this Section.

 

(ii)         
The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that
the Trustee was negligent in ascertaining the pertinent facts.

 

(iii)         
The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities
of any Series in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding
Securities of such Series relating to the time, method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such
Series.

 

(c)         
Every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section.

 

(d)         
The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against
any loss, liability or expense.

 

(e)         
The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company
and the Guarantor. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by
law.

 

(f)         
No provision of this Indenture shall require the Trustee to risk its own funds or otherwise incur any financial liability in the
performance of any of its duties, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing
that repayment of such funds or adequate indemnity against such risk is not reasonably assured to it.

 

     30

     

    

 

(g)         
The Paying Agent, the Registrar and any authenticating agent shall be entitled to the protections, immunities and subject to the
standard of care as are set forth in paragraphs (b), (c), (f) and (g) of this Section with respect to the Trustee.

 

SECTION
7.2         Rights of Trustee.

 

(a)         
The Trustee may rely on and shall be protected in acting or refraining from acting upon any document believed by it to be genuine
and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document.

 

(b)         
Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel. The Trustee
shall not be liable for any action it takes or omits to take in good faith in reliance on such Officer’s Certificate or
Opinion of Counsel.

 

(c)         
The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due
care. No Depository shall be deemed an agent of the Trustee and the Trustee shall not be responsible for any act or omission by
any Depository.

 

(d)         
The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within
its rights or powers.

 

(e)         
The Trustee may consult with counsel of its choosing and the advice of such counsel or any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon.

 

(f)         
The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request
or direction of any of the Holders of Securities unless such Holders shall have offered to the Trustee security or indemnity satisfactory
to the Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

 

(g)         
The Trustee shall not be charged with knowledge of any default or Event of Default with respect to the Securities, unless either
(1) a Responsible Officer shall have actual knowledge of such default or Event of Default or (2) written notice of such default
or Event of Default shall have been received by the Trustee at the Corporate Trust Office and such notice references this Indenture
and the applicable Series of Securities.

 

(h)         
The permissive rights of the Trustee enumerated herein shall not be construed as duties.

 

(i)          
In no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any
kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood
of such loss or damage and regardless of the form of action.

 

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(j)          
The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to
be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each Agent,
custodian and any other person employed to act hereunder. 

 

(k)         
The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit.

 

SECTION
7.3          Individual Rights of Trustee. The Trustee
in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company,
the Guarantor or an Affiliate of either of them with the same rights it would have if it were not Trustee. Any Agent may do the
same with like rights. The Trustee is also subject to Sections 7.10 and 7.11.

 

SECTION
7.4          Trustee’s Disclaimer. The Trustee
makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the
Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement in the Securities other
than its authentication.

 

SECTION
7.5          Notice of Defaults. If a Default or Event
of Default occurs and is continuing with respect to the Securities of any Series and if it is actually known to a Responsible
Officer of the Trustee, the Trustee shall mail (or deliver electronically in accordance with the procedures of the Depository)
to each Securityholder of the Securities of that Series notice of a Default or Event of Default within 90 days after it occurs
or, if later, after a Responsible Officer of the Trustee has knowledge of such Default or Event of Default. Except in the case
of a Default or Event of Default in payment of principal of or interest on any Security of any Series, the Trustee may withhold
the notice if and so long as its corporate trust committee or a committee of its Responsible Officers in good faith determines
that withholding the notice is in the interests of Securityholders of that Series.

 

SECTION
7.6          Reports by Trustee to Holders. Within
60 days after May 15 in each year commencing May 15, 20[ ], the Trustee shall transmit by mail to all Securityholders, as their
names and addresses appear on the register kept by the Registrar, a brief report dated as of such May 15, in accordance with,
and to the extent required under, TIA ss. 313.

 

A
copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each stock exchange
on which the Securities of that Series are listed. The Company shall promptly notify the Trustee when Securities of any Series
are listed on any stock exchange.

 

SECTION
7.7          Compensation and Indemnity. The Company
and the Guarantor shall, jointly and severally, pay to the Trustee compensation as agreed to in writing between the Company, the
Guarantor and the Trustee from time to time. The Trustee’s compensation shall not be limited by any law on compensation
of a trustee of an express trust.

 

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The
Company and the Guarantor shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred by it. Such
expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel.

 

The
Company and the Guarantor shall, jointly and severally, indemnify the Trustee, in each of its capacities hereunder, (including
the cost of defending itself) against any claims, loss, liability or expense incurred by it except as set forth in the next paragraph
in the performance of its duties under this Indenture as Trustee or Agent. The Trustee shall notify the Company and the Guarantor
promptly of any claim for which it may seek indemnity. The Company and the Guarantor shall defend the claim and the Trustee shall
cooperate in the defense. The Trustee may have separate counsel and the Company and the Guarantor shall pay the reasonable fees
and expenses of such counsel. The Company and the Guarantor need not pay for any settlement made without their consent, which
consent shall not be unreasonably withheld. This indemnification shall apply to officers, directors, employees, shareholders and
agents of the Trustee.

 

The
Company and the Guarantor need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee or
by any officer, director, employee or agent of the Trustee through its own negligence or willful misconduct.

 

To
secure the Company’s and the Guarantor’s payment obligations in this Section, the Trustee shall have a lien prior
to the Securities of any Series on all money or property held or collected by the Trustee, except that held in trust to pay principal
and interest on particular Securities of that Series.

 

When
the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(f) or (g) occurs, the expenses
and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

The
provisions of this Section shall survive the termination of this Indenture and the resignation or removal of the Trustee.

 

SECTION
7.8         Replacement of Trustee. A resignation
or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s
acceptance of appointment as provided in this Section.

 

The
Trustee may resign with respect to the Securities of one or more Series by so notifying Company and the Guarantor. The Holders
of a majority in principal amount of the Securities of any Series may remove the Trustee with respect to that Series by so notifying
the Trustee, the Company and the Guarantor. The Company may remove the Trustee with respect to Securities of one or more Series
if:

 

(a)         
the Trustee fails to comply with Section 7.10;

 

(b)         
the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy
Law;

 

(c)         
a Custodian or public officer takes charge of the Trustee or its property; or

 

     33

     

    

 

(d)         
the Trustee becomes incapable of acting.

 

If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint
a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of
the then outstanding Securities of the applicable Series may appoint a successor Trustee to replace the successor Trustee appointed
by the Company.

 

If
a successor Trustee with respect to the Securities of any one or more Series does not take office within 60 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least 10% in principal amount of the Securities
of the applicable Series may, at the expense of the Company, petition any court of competent jurisdiction for the appointment
of a successor Trustee.

 

If
the Trustee with respect to the Securities of any one or more Series fails to comply with Section 7.10, any Securityholder of
the applicable Series may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

 

A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company and the Guarantor.
Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee at the
expense of the Company and the Guarantor subject to the lien provided for in Section 7.7, and the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee
with respect to each Series of Securities for which it is acting as Trustee under this Indenture. A successor Trustee shall mail
(or deliver electronically in accordance with the procedures of the Depository) a notice of its succession to each Securityholder
of each such Series. Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the Company’s and the Guarantor’s
obligations under Section 7.7 hereof shall continue for the benefit of the retiring Trustee with respect to expenses and liabilities
incurred by it prior to such replacement.

 

SECTION
7.9         Successor Trustee by Merger, Etc. If
the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business
to, another corporation, the successor corporation without any further act shall be the successor Trustee.

 

SECTION
7.10       Eligibility; Disqualification. This Indenture shall always have
a Trustee who satisfies the requirements of TIA ss.ss. 310(a) (1), (2) and (5). The Trustee shall always have a combined capital
and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply
with TIA ss. 310(b).

 

SECTION
7.11       Preferential Collection of Claims. The Trustee is subject to
TIA ss. 311(a), excluding any creditor relationship listed in TIA ss. 311(b). A Trustee who has resigned or been removed shall
be subject to TIA ss. 311(a) to the extent indicated.

 

     34

     

    

 

ARTICLE
VIII

SATISFACTION AND DISCHARGE; DEFEASANCE

 

SECTION
8.1         Satisfaction and Discharge of Indenture.
This Indenture shall upon Company Order cease to be of further effect (except as hereinafter provided in this Section 8.1), and
the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when

 

(a)         
either

 

(i)         
all Securities theretofore authenticated and delivered (other than Securities that have been destroyed, lost or stolen and that
have been replaced or paid) have been delivered to the Trustee for cancellation; or

 

(ii)        
all such Securities not theretofore delivered to the Trustee for cancellation

 

(1)         
have become due and payable, or

 

(2)         
will become due and payable at their Stated Maturity within one year, or

 

(3)         
are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the expense, of the Company, or

 

(4)         
are deemed paid and discharged pursuant to Section 8.3, as applicable;

 

and
the Company or the Guarantor, in the case of (1), (2) or (3) above, has deposited or caused to be deposited with the Trustee as
trust funds in trust an amount sufficient for the purpose of paying and discharging the entire indebtedness on such Securities
not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of such deposit (in the case
of Securities which have become due and payable on or prior to the date of such deposit) or to the Stated Maturity or redemption
date, as the case may be;

 

(b)         
the Company and Guarantor have paid or caused to be paid all other sums payable hereunder by the Company and the Guarantor; and

 

(c)         
the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

 

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Company and the Guarantor to the Trustee under Section
7.7, and, if money shall have been deposited with the Trustee pursuant to clause

 

     35

     

    

 

(d)         
of this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1, 8.2 and 8.5 shall survive.

 

SECTION
8.2         Application of Trust Funds; Indemnification.

 

(a)         
Subject to the provisions of Section 8.5, all money deposited with the Trustee pursuant to Section 8.1, all money, U.S. Government
Obligations and Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all money received
by the Trustee in respect of U.S. Government Obligations and Foreign Government Obligations deposited with the Trustee pursuant
to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent (including the Company or the Guarantor acting as its own
Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and interest for whose payment such
money has been deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated
by Sections 8.3 or 8.4.

 

(b)         
The Company and the Guarantor shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed
against U.S. Government Obligations or Foreign Government Obligations deposited pursuant to Sections 8.3 or 8.4 or the interest
and principal received in respect of such obligations other than any payable by or on behalf of Holders.

 

(c)         
The Trustee shall deliver or pay to the Company or the Guarantor, as applicable, from time to time upon Company Request any U.S.
Government Obligations, Foreign Government Obligations or money held by it as provided in Sections 8.3 or 8.4 which, in the opinion
of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered
to the Trustee, are then in excess of the amount thereof which then would have been required to be deposited for the purpose for
which such U.S. Government Obligations, Foreign Government Obligations or money were deposited or received. This provision shall
not authorize the sale by the Trustee of any U.S. Government Obligations or Foreign Government Obligations held under this Indenture.

 

SECTION
8.3         Legal Defeasance of Securities of any Series.
Unless this Section 8.3 is otherwise specified, pursuant to Section 2.2.16, to be inapplicable to Securities of any Series, the
Company and the Guarantor shall be deemed to have paid and discharged the entire indebtedness on all the outstanding Securities
of such Series on the 91st day after the date of the deposit referred to in subparagraph (d) hereof, and the provisions of this
Indenture, as it relates to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at the
expense of the Company, shall, at Company Request, execute proper instruments acknowledging the same), except as to:

 

(a)         
the rights of Holders of Securities of such Series to receive, from the trust funds described in subparagraph (d) hereof, (i)
payment of the principal of and each installment of principal of and interest on the outstanding Securities of such Series on
the Stated Maturity of such principal or installment of principal or interest and (ii) the benefit of any mandatory sinking fund
payments applicable to the Securities of such Series on the day on which such payments are due and payable in accordance with
the terms of this Indenture and the Securities of such Series;

 

     36

     

    

 

(b)         
the provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and

 

(c)         
the rights, powers, trust and immunities of the Trustee hereunder;

 

provided
that, the following conditions shall have been satisfied:

 

(a)         
the Company or the Guarantor shall have deposited or caused to be deposited irrevocably with the Trustee as trust funds in trust
for making the purpose of the following payments, specifically pledged as security for and dedicated solely to the benefit of
the Holders of such Securities (i) in the case of Securities denominated in Dollars, cash in Dollars (or such other money or currencies
as shall then be legal tender in the United States) and/or U.S. Government Obligations or (ii) in the case of Securities denominated
in a Currency other than Dollars, cash in such Currency and/or Foreign Government Obligations denominated in such Currency, which
through the payment of interest, premium, if any, and principal in respect thereof, in accordance with their terms, will provide
(and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due
date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal
(including mandatory sinking fund or analogous payments) of, premium, if any, and interest, if any, on all the Securities of such
Series on the dates such installments of interest or principal are due;

 

(b)         
such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement
or instrument to which the Company or the Guarantor are a party or by which they are bound;

 

(c)         
no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date
of such deposit;

 

(d)         
the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel to the effect that (i)
the Company has received from, or there has been published by, the U.S. Internal Revenue Service a ruling, or (ii) since the date
of execution of this Indenture, there has been a change in the applicable United States federal income tax law, in either case
to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series
will not recognize income, gain or loss for United States federal income tax purposes as a result of such deposit, defeasance
and discharge and will be subject to United States federal income tax on the same amount and in the same manner and at the same
times as would have been the case if such deposit, defeasance and discharge had not occurred;

 

(e)         
the Company shall have delivered to the Trustee an Officer’s Certificate stating that the deposit was not made by the Company
or the Guarantor, as applicable, with the intent of preferring the Holders of the Securities of such Series over any other creditors
of the Company or the Guarantor with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company
or the Guarantor;

 

     37

     

    

 

(f)         
such deposit shall not result in the trust arising from such deposit constituting an investment company (as defined in the U.S.
Investment Company Act of 1940, as amended), or such trust shall be qualified under such Act or exempt from regulation thereunder;
and

 

(g)         
the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for relating to the defeasance by this Section have been complied with.

 

SECTION
8.4         Covenant Defeasance.

 

Unless
this Section 8.4 is otherwise specified pursuant to Section 2.2.16 to be inapplicable to Securities of any Series, on and after
the 91st day after the date of the deposit referred to in subparagraph (a) hereof, the Company and the Guarantor may omit to comply
with any term, provision or condition set forth under Sections 4.2, 4.3, 4.4, 4.5, 4.6 and 5.1 as well as any additional covenants
contained in a supplemental indenture hereto for a particular Series of Securities or a Board Resolution or an Officer’s
Certificate of the Company delivered pursuant to Section 2.2.16 (and the failure to comply with any such covenants shall not constitute
a Default or Event of Default under Section 6.1), with respect to the Securities of such Series, provided that the following conditions
shall have been satisfied:

 

(a)         
With reference to this Section 8.4, the Company or the Guarantor has deposited or caused to be irrevocably deposited (except as
provided in Section 8.2(c)) with the Trustee as trust funds in trust, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Securities (i) in the case of Securities denominated in Dollars, cash in Dollars (or such
other money or currencies as shall then be legal tender in the United States) and/or U.S. Government Obligations or (ii) in the
case of Securities denominated in a Currency other than Dollars, cash in such Currency and/or Foreign Government Obligations denominated
in such Currency, which through the payment of interest, principal and premium, if any, in respect thereof, in accordance with
their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later
than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized
firm of independent certified public accountants expressed in a written certification thereof delivered to the Trustee, to pay
principal and interest, if any, on and any mandatory sinking fund in respect of the Securities of such Series on the dates such
installments of interest or principal are due;

 

(b)         
Such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement
or instrument to which the Company or the Guarantor is a party or by which they are bound;

 

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(c)         
No Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date
of such deposit or during the period ending on the 91st day after such date;

 

(d)         
the Company shall have delivered to the Trustee an Opinion of Counsel confirming that Holders of the Securities of such Series
will not recognize income, gain or loss for United States federal income tax purposes as a result of such deposit and defeasance
and will be subject to United States federal income tax on the same amounts, in the same manner and at the same times as would
have been the case if such deposit and defeasance had not occurred;

 

(e)         
the Company shall have delivered to the Trustee an Officer’s Certificate stating the deposit was not made by the Company
or the Guarantor, as applicable, with the intent of preferring the Holders of the Securities of such Series over any other creditors
of the Company or the Guarantor or with the intent of defeating, hindering, delaying or defrauding any other creditors of the
Company or the Guarantor; and

 

(f)         
The Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to the defeasance contemplated by this Section 8.4 have been complied with.

 

SECTION
8.5         Repayment to the Company. The Trustee
and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal and interest that
remains unclaimed for two years. After that, Securityholders entitled to the money must look to the Company for payment as general
creditors unless an applicable abandoned property law designates another person.

 

SECTION
8.6         Reinstatement. If the Trustee or any
Paying Agent is unable to apply any money in accordance with Section 8.2 by reason of any legal proceeding or by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then
the Company’s and the Guarantor’s obligations under this Indenture and the Securities shall be revived and reinstated
as though no deposit had occurred pursuant to Section 8.1, 8.3 or 8.4 until such time as the Trustee or such Paying Agent is permitted
to apply all such money in accordance with Section 8.2.

 

ARTICLE
IX

AMENDMENTS AND WAIVERS

 

SECTION
9.1         Without Consent of Holders. The Company,
the Guarantor and the Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent
of any Securityholder:

 

(a)         
to cure any ambiguity, defect or inconsistency;

 

(b)         
to comply with Article V;

 

     39

     

    

 

(c)         
to provide for uncertificated Securities in addition to or in place of certificated Securities;

 

(d)         
to make any change that does not materially adversely affect in any material respect the legal rights of any Securityholder;

 

(e)         
to provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by this
Indenture;

 

(f)         
in the case of subordinated Securities, to make any change in the provisions of this Indenture or any supplemental indenture relating
to subordination that would limit or terminate the benefits available to any holder of senior Debt under such provisions (but
only if each such holder of senior Debt consents to such change);

 

(g)         
to add to, change or eliminate any of the provisions of this Indenture with respect to Securities of a Series; although no such
addition, change or elimination may apply to Securities of any Series created prior to the execution of such amendment and entitled
to the benefit of such provision, nor may any such amendment modify the rights of a Holder of any Security with respect to such
provision, unless the amendment becomes effective only when there is no outstanding Security of any Series created prior to such
amendment and entitled to the benefit of such provision;

 

(h)         
to secure the Securities of any Series or any Guarantee thereof;

 

(i)          
to add additional Guarantor(s) of any Series of Securities;

 

(j)          
to add to the Company’s or Guarantor’s covenants or obligations under this Indenture for the protection of the Holders
or surrender any right, power or option conferred by this Indenture on the Company or the Guarantor;

 

(k)         
to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one
or more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee; or

 

(l)          
to comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA.

 

SECTION
9.2         With Consent of Holders. (a) The Company,
the Guarantor and the Trustee may enter into a supplemental indenture with the written consent of the Holders of at least a majority
in principal amount of the outstanding Securities of each Series affected by such supplemental indenture (including consents obtained
in connection with a tender offer or exchange offer for the Securities of such Series), for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying
in any manner the rights of the Securityholders of each such Series. Except as provided in Section 6.13, the Holders of at least
a majority in principal amount of the outstanding Securities of each Series affected by such waiver by notice to the Trustee (including
consents obtained in connection with a tender offer or exchange offer for the Securities of such Series) may waive compliance
by the Company or the Guarantor with any provision of this Indenture or the Securities with respect to such Series.

 

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It
shall not be necessary for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any
proposed supplemental indenture or waiver, but it shall be sufficient if such consent approves the substance thereof. After a
supplemental indenture or waiver under this section becomes effective, the Company or the Guarantor shall mail (or deliver electronically
in accordance with the procedures of the Depository) to the Holders of Securities affected thereby, a notice briefly describing
the supplemental indenture or waiver. Any failure by the Company or the Guarantor to mail (or deliver electronically in accordance
with the procedures of the Depository) or publish such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such supplemental indenture or waiver.

 

(a)          
Without the consent of each Securityholder affected, an amendment or waiver may not be made to, as to any non-consenting Securityholder:

 

(i)          
reduce the percentage of principal amount of outstanding Securities whose Holders must consent to an amendment, supplement or
waiver;

 

(ii)         
reduce the rate of or change the time for payment of interest (including default interest) on any Security;

 

(iii)        
reduce the principal amount of or the premium, if any, on any Security or change the Stated Maturity of any Security or reduce
the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation;

 

(iv)        
in the case of any subordinated Securities, or coupons appertaining thereto, make any change in the provisions of this Indenture
relating to subordination that adversely affects the rights of any Holder under such provisions;

 

(v)         
reduce the principal amount of Discount Securities payable upon acceleration of the maturity thereof;

 

(vi)        
waive a Default or Event of Default in the payment of the principal of, premium, if any, or interest, if any, on any Security
(except a rescission of acceleration of the Securities of any Series by the Holders of at least a majority in principal amount
of the outstanding Securities of such Series and a waiver of the payment default that resulted from such acceleration);

 

(vii)       
make the principal of or interest, if any, on any Security payable in any Currency other than that stated in the Security;

 

(viii)      
make any change in Sections 6.8, 6.13 or 9.2;

 

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(ix)        
release the Guarantor from its obligations in respect of its Guarantee of any Series or modify the Guarantee of any Series other
than in accordance with the provisions of this Indenture; or

 

(x)         
waive a redemption payment with respect to any Security or change any of the provisions with respect to the redemption of any
Securities.

 

SECTION
9.3         Compliance with Trust Indenture Act.
Every amendment to this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto
that complies with the TIA as then in effect.

 

SECTION
9.4         Revocation and Effect of Consents. Until
an amendment or waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and
every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security,
even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent
as to his Security or portion of a Security if the Trustee receives the notice of revocation before the date the amendment or
waiver becomes effective.

 

Any
amendment or waiver once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless
it is of the type described in any of clauses (i) through (x) of Section 9.2(b). In that case, the amendment or waiver shall bind
each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences
the same debt as the consenting Holder’s Security.

 

SECTION
9.5         Notation on or Exchange of Securities.
The Trustee may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated.
The Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon request new Securities
of that Series that reflect the amendment or waiver.

 

SECTION
9.6         Trustee Protected. In executing, or accepting
the additional trusts created by any supplemental indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall receive, and (subject to Section 7.1) shall be fully protected in relying upon, in
addition to the documents required by Section 10.4, an Opinion of Counsel stating that the execution of such supplemental indenture
is authorized or permitted by this Indenture. The Trustee shall sign all supplemental indentures, except that the Trustee need
not sign any supplemental indenture that adversely affects its rights, duties, liabilities or immunities.

 

ARTICLE
X

MISCELLANEOUS

 

SECTION
10.1      Trust Indenture Act Controls. If any provision of this Indenture
limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture by the TIA,
such required or deemed provision shall control.

 

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SECTION
10.2      Notices. Any notice or communication by the Company, the Guarantor
or the Trustee to the others is duly given if in writing and delivered in person or mailed by first-class mail:

 

if
to the Company:

Omnicom Finance Holdings plc

Bankside 3, 90-100 Southwark Street

London, SE1 0SW

United Kingdom

Attention: Secretary

 

if
to the Guarantor:

Omnicom Group Inc.

437 Madison Avenue

New York, New York 10022

Attention: General Counsel

 

if
to the Trustee:

Deutsche Bank Trust Company Americas

Trust and Agency Services

60 Wall Street, 24th Floor

MS: NYC60-2405

New York, NY 10005

Attention: Corporates – Omnicom Finance Holdings plc

Fax: 732-578-4635

 

The
Company and the Guarantor or the Trustee by notice to the others may designate additional or different addresses for subsequent
notices or communications.

 

Any
notice or communication to a Securityholder shall be mailed by first-class mail to their address shown on the register kept by
the Registrar or delivered electronically in accordance with the procedures of the Depository.

 

Failure
to mail (or deliver electronically in accordance with the procedures of the Depository) a notice or communication to a Securityholder
of any Series or any defect in it shall not affect its sufficiency with respect to other Securityholders of that or any other
Series.

 

If
a notice or communication is mailed or published (or delivered electronically in accordance with the procedures of the Depository)
in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder receives it.

 

If
the Company or the Guarantor mails (or delivers electronically in accordance with the procedures of the Depository) a notice or
communication to Securityholders, it shall mail or deliver electronically a copy to the Trustee and each Agent at the same time.

 

     43

     

    

 

SECTION
10.3       Communication by Holders with Other Holders. Securityholders
of any Series may communicate pursuant to TIA ss. 312(b) with other Securityholders of that Series or any other Series with respect
to their rights under this Indenture or the Securities of that Series or all Series. The Company, the Guarantor, the Trustee,
the Registrar and anyone else shall have the protection of TIA ss. 312(c).

 

SECTION
10.4       Certificate and Opinion as to Conditions Precedent. Upon any
request or application by the Company or the Guarantor to the Trustee to take any action under this Indenture, the Company or
the Guarantor shall furnish to the Trustee:

 

(a)         
an Officer’s Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in
this Indenture relating to the proposed action have been complied with; and

 

(b)         
an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

 

SECTION
10.5      Statements Required in Certificate or Opinion. Each certificate
or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA ss. 314(a)(4)) shall comply with the provisions of TIA ss. 314(e) and shall include:

 

(a)         
a statement that the person making such certificate or opinion has read such covenant or condition;

 

(b)         
a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;

 

(c)         
a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(d)         
a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

 

SECTION
10.6       Rules by Trustee and Agents. The Trustee may make reasonable
rules for action by or a meeting of Securityholders of one or more Series. Any Agent may make reasonable rules and set reasonable
requirements for its functions.

 

SECTION
10.7       Legal Holidays. Unless otherwise provided by Board Resolution,
Officer’s Certificate of the Company or supplemental indenture for a particular Series, a “Legal Holiday” is
any day that is not a Business Day. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place
on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.

 

SECTION
10.8       No Recourse Against Others. A director, officer, employee or
stockholder, as such, of the Company or the Guarantor shall not have any liability for any obligations of the Company or the Guarantor
under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation.
Each Securityholder by accepting a Security waives and releases all such liability.

 

     44

     

    

 

The
waiver and release are part of the consideration for the issue of the Securities.

 

SECTION
10.9       Counterparts. This Indenture may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement. The exchange of copies of this Indenture and of signature
pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto
and may be used in lieu of the original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile
or PDF shall be deemed to be their original signatures for all purposes.

 

SECTION
10.10     Governing Laws. THIS INDENTURE, THE SECURITIES AND THE GUARANTEE SHALL BE GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE CONFLICT
OF LAWS PROVISIONS THEREOF.

 

SECTION
10.11     No Adverse Interpretation of Other Agreements. This Indenture may not be used to interpret
another indenture, loan or debt agreement of the Company, the Guarantor or a Subsidiary of either of them. Any such indenture,
loan or debt agreement may not be used to interpret this Indenture.

 

SECTION
10.12     Successors. All agreements of the Company and the Guarantor in this Indenture and the
Securities shall bind their successor. All agreements of the Trustee in this Indenture shall bind its successor.

 

SECTION
10.13     Severability. In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired thereby.

 

SECTION
10.14     Table of Contents, Headings, Etc. The Table of Contents, Cross-Reference Table, and
headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered
a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

 

SECTION
10.15     USA Patriot Act. In order to comply with the laws, rules, regulations and executive
orders in effect from time to time applicable to banking institutions, including, without limitation, those relating to the funding
of terrorist activities and money laundering, including Section 326 of the USA PATRIOT Act of the United States (“Applicable
Law”), the Trustee is required to obtain, verify, record and update certain information relating to individuals and entities
which maintain a business relationship with the Trustee. Accordingly, each of the parties agrees to provide to the Trustee, upon
its request from time to time such identifying information and documentation as may be available for such party in order to enable
the Trustee to comply with Applicable Law.

 

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SECTION
10.16     Force Majeure. The Trustee and the Agents shall not incur any liability for not performing
any act or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the control of the Trustee
or any Agent (including but not limited to any act or provision of any present or future law or regulation or governmental authority,
any act of God or war, civil unrest, local or national disturbance or disaster, any act of terrorism, or the unavailability of
the Federal Reserve Bank wire or facsimile or other wire or communication facility); provided that nothing in this Section 10.16
shall alter the Trustee’s standard of care under the TIA; and provided further that the Trustee shall use reasonable efforts
which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

SECTION
10.17     Consent to Jurisdiction; Service of Process; and Waiver of Jury Trial. Each of the
Company and the Guarantor agrees that any legal suit, action or proceeding brought by any party to enforce any rights under or
with respect to this Indenture, any Security or any other document or the transactions contemplated hereby or thereby may be instituted
in any state or federal court in The Borough of Manhattan, The City of New York, State of New York, United States of America,
irrevocably waives to the fullest extent permitted by law any objection which it may now or hereafter have to the laying of venue
of any such suit, action or proceeding, irrevocably waives to the fullest extent permitted by law any claim that and agrees not
to claim or plead in any court that any such action, suit or proceeding brought in such court has been brought in an inconvenient
forum and irrevocably submits to the non-exclusive jurisdiction of any such court in any such suit, action or proceeding or for
recognition and enforcement of any judgment in respect thereof.

 

To
the extent that the Company or the Guarantor or any of their respective Subsidiaries has or hereafter may acquire any immunity
from jurisdiction of any court (including any court in the United States, the State of New York or other jurisdiction in which
the Company, the Guarantor or any successor thereof may be organized or any political subdivisions thereof) or from any legal
process (whether through service of notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise)
with respect to itself or its property or assets, this Indenture, the Securities, the transactions contemplated hereby or thereby
or any other documents or actions to enforce judgments in respect of any thereof, then each of the Company and the Guarantor hereby
irrevocably waives, and will cause its Subsidiaries to waive, such immunity, and any defense based on such immunity, in respect
of its obligations under the above-referenced documents and the transactions contemplated thereby, to the extent permitted by
law.

 

The
Company hereby appoints Omnicom Group Inc., 437 Madison Avenue, New York, New York 10022, Attention: General Counsel (the “Agent
for Service”), and the Guarantor hereby accepts such appointment, as its agent to receive service of process or other legal
summons for purposes of any such suit, action or proceeding that may be instituted in any state or federal court in the Borough
of Manhattan, The City of New York, State of New York, United States of America. The Company agrees that service of process upon
the Agent for Service shall be deemed in every respect effective service of process upon the Company in any such suit, action
or proceeding. The Company further agrees to take any and all action, including the execution and filing of any and all such documents
and instruments, as may be necessary to continue such designation and appointment of the Agent for Service in full force and effect
so long as any of the Securities shall be outstanding.

 

     46

     

    

 

THE
PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE SECURITIES, THE TRANSACTIONS
CONTEMPLATED HEREBY AND THEREBY OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.

 

ARTICLE
XI

SINKING FUNDS

 

SECTION
11.1          Applicability of Article. The provisions of this Article shall
be applicable to any sinking fund for the retirement of the Securities of a Series, except as otherwise permitted or required
by any form of Security of such Series issued pursuant to this Indenture.

 

The
minimum amount of any sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as
a “mandatory sinking fund payment” and any other amount provided for by the terms of Securities of such Series is
herein referred to as an “optional sinking fund payment.” If provided for by the terms of Securities of any Series,
the cash amount of any sinking fund payment may be subject to reduction as provided in Section 11.2. Each sinking fund payment
shall be applied to the redemption of Securities of any Series as provided for by the terms of the Securities of such Series.

 

SECTION
11.2       Satisfaction of Sinking Fund Payments with Securities. The Company
may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant
to the terms of such Securities (1) deliver outstanding Securities of such Series to which such sinking fund payment is applicable
(other than any of such Securities previously called for mandatory sinking fund redemption) and (2) apply as credit Securities
of such Series to which such sinking fund payment is applicable and which have been redeemed either at the election of the Company
pursuant to the terms of such Series of Securities (except pursuant to any mandatory sinking fund) or through the application
of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities, provided that
such Securities have not been previously so credited. Such Securities shall be received by the Trustee, together with an Officer’s
Certificate of the Company with respect thereto, not later than 15 days prior to the date on which the Trustee begins the process
of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the price specified in such Securities
for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.
If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.2, the principal amount
of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee
need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and
such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, provided,
however, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company Order pay over and deliver to
the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of
Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be
released to the Company.

 

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SECTION
11.3      Redemption of Securities for Sinking Fund. Not less than 45
days (unless otherwise indicated in the Board Resolution, supplemental indenture hereto or Officer’s Certificate of the
Company in respect of a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities,
the Company will deliver to the Trustee an Officer’s Certificate specifying the amount of the next ensuing mandatory sinking
fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment
of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant
to Section 11.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and
the Company shall thereupon be obligated to pay the amount therein specified.

 

Not
less than 30 days (unless otherwise indicated in the Board Resolution, Officer’s Certificate of the Company or supplemental
indenture in respect of a particular Series of Securities) before each such sinking fund payment date the Trustee shall select
the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.2 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.3. Such notice
having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.4,
3.5 and 3.6.

 

ARTICLE
XII

GUARANTEE OF SECURITIES

 

SECTION
12.1       Guarantee.

 

12.1.1      
The Guarantor hereby, jointly and severally with any other person who may also guarantee the Guaranteed Obligations (as defined
below), unconditionally and irrevocably guarantees, on a senior unsecured basis as if it was respectively principal debtor and
not merely surety, to each Holder and to the Trustee and its successors and assigns on behalf of each Holder, the full and punctual
payment when due, whether at maturity, by acceleration, redemption or otherwise, of the principal of and interest on, if any,
the Securities, if lawful, and all other monetary obligations of the Company under this Indenture and the Securities (collectively,
the “Guaranteed Obligations”). The Guarantor, in its capacity as guarantor, further agrees that the Guaranteed Obligations
may be extended or renewed, in whole or in part, without notice or further assent from the Guarantor, and the Guarantor shall
remain bound under its Guarantee and this Indenture, notwithstanding any such extension or renewal. Failing payment when due of
any amount so guaranteed for whatever reason, the Guarantor will be obligated to pay the same in full, or cause to be duly and
punctually paid in full, without any demand or notice whatsoever.

 

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12.1.2      
In its capacity as guarantor, the Guarantor hereby waives presentation to, demand of payment from and protest to the Company of
any of the Guaranteed Obligations and also waives notice of protest for nonpayment. In its capacity as guarantor, the Guarantor
also hereby waives notice of any default by the Company under the Securities or this Indenture. The Guarantor agrees that its
obligations under its Guarantee shall be continuing, absolute, full and unconditional under any and all circumstances, to the
fullest extent permitted by applicable law, and shall not be discharged except by payment in full of the Securities, irrespective
of:

 

(a)         
the value, genuineness, regularity, validity, enforceability, avoidance, subordination, discharge or disaffirmance of any of the
Guaranteed Obligations, the Securities or this Indenture, or the absence of any action to enforce the same;

 

(b)         
any extension or waiver, at any time or from time to time, without notice to the Guarantor, of the time for compliance by the
Company with any of its obligations under the Securities or this Indenture;

 

(c)         
any substitution, release or exchange of any other guarantee of or security for any obligations of the Company under the Securities
or this Indenture;

 

(d)         
any rescission, amendment or modification to any of the terms or provisions of the Securities or this Indenture;

 

(e)         
any law, regulation or order of any jurisdiction affecting any term of any of the Securities or this Indenture or the rights of
any Holder or the Trustee with respect thereto;

 

(f)         
any failure to obtain any authorization or approval from, or other action by, to notify, or to file anything with, any governmental
authority or regulatory body required in connection with the performance of the Guarantee by the Guarantor;

 

(g)         
the failure by any Holder or the Trustee to assert any claim or demand or to exercise any right or remedy against the Company
or any other guarantor of the Guaranteed Obligations or any other person;

 

(h)         
the failure by any Holder or the Trustee to exercise any right or remedy against any collateral securing any of the Guaranteed
Obligations; or

 

(i)          
any other circumstance whatsoever that might otherwise constitute a defense to or a legal or equitable discharge of the Guarantor’s
obligations, in its capacity as guarantor, under its Guarantee or of the Guarantor’s obligations, in its capacity as guarantor,
under the Securities and this Indenture.

 

12.1.3      
The Guarantor’s obligations under its Guarantee, this Indenture and the Securities, in each case in its capacity as guarantor,
shall not be limited by any valuation, estimation or disallowance made in connection with any proceedings filed by or against
the Guarantor or the Company under Bankruptcy Law, including the United States Bankruptcy Code of 1978, as amended (the “Bankruptcy
Code”), whether pursuant to Section 502 of the Bankruptcy Code or any other section thereof. The Guarantor further agrees
that, in its capacity as guarantor, none of the Holders shall be under any obligation to marshal any assets in favor of or against
or in payment of any or all of the Guaranteed Obligations or the Securities. To the extent that the Guarantor makes a payment
or payments on any or all of the Guaranteed Obligations and such payment or payments (or any part thereof) is or are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to the Guarantor, its estate, trustee
or receiver or any other party, including, without limitation, the Guarantor, under any bankruptcy law, state or federal law,
common law or equitable cause, then to the extent of such payment or repayment, the Guaranteed Obligations (or, if applicable,
such part thereof as had been paid, reduced or satisfied by such amount), shall be reinstated and revived and continued in full
force and effect as of the date such initial payment, reduction or satisfaction occurred. The Guarantor waives, in its capacity
as guarantor, all set-offs, counterclaims, reductions and diminutions of any obligation, and any defense of any kind or nature
(other than, payment of the Guaranteed Obligations), that the Guarantor may have or assert against the Company or any other person,
and all presentments, demands for performance, notices of nonperformance, protests, notices of protest, notices of dishonor and
notices of acceptance of its Guarantee.

 

     49

     

    

 

12.1.4       
The Guarantor, in its capacity as guarantor, hereby unconditionally and irrevocably waives (i) any defense arising by reason of
any claim or defense based upon an election of remedies by any Holder that in any manner impairs, reduces, releases or otherwise
adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of the Guarantor or other
rights of the Guarantor to proceed against the Company, any other guarantor or any other person or collateral, if any, and (ii)
any defense based on any right of set-off or counterclaim against or in respect of the Guaranteed Obligations of the Guarantor
under this Indenture or the Securities.

 

12.1.5       
The Guarantor, in its capacity as guarantor, hereby waives any right to which it may be entitled to have its obligations under
the respective Guarantee and this Indenture divided among it and other guarantors of the Guaranteed Obligations, if any, such
that the Guarantor’s obligations would be less than the full amount claimed. The Guarantor, in its capacity as guarantor,
hereby waives any right to which it may be entitled to have the assets of the Company or any other person who became an “obligor”
under the Securities or this Indenture first be used and depleted as payment of the obligations of the Company or such other person,
respectively, under the Securities and this Indenture prior to any amounts being claimed from or paid by the Guarantor under its
Guarantee. The Guarantor, in its capacity as guarantor, hereby waives any right to which it may be entitled to require that suit
be instituted against the Company or any other guarantor of the Guaranteed Obligations or “obligor” under the Securities
or this Indenture prior to an action being initiated against the Guarantor. The Guarantor further agrees that its Guarantee constitutes
a guarantee of payment when due (and not a guarantee of collection) and waives any right, in its capacity as guarantor, to require
that any resort be had by any Holder or the Trustee to any security held for payment of the Guaranteed Obligations.

 

12.1.6       
The failure to endorse the Guarantee on any Security shall not affect or impair the validity thereof.

 

12.1.7       
The Guarantor’s obligations under its Guarantee shall not be affected if any Holder is precluded for any reason (including,
without limitation, the application of the automatic stay under Section 362 of the Bankruptcy Code) from enforcing or exercising
any right or remedy with respect to the Securities, and the Guarantor shall pay to each affected Holder, upon demand, the amount
that would otherwise have been due and payable had the exercise of such rights and remedies been permitted. In the event of any
such application of the automatic stay under Section 362 of the Bankruptcy Code, the Securities shall forthwith become due and
payable by the Guarantor for purposes of the Guarantee.

 

     50

     

    

 

12.1.8       
The Guarantor hereby agrees that, unless and until all obligations with respect to the Securities and this Indenture have been
paid in full, in its capacity as guarantor, it shall have no right (whether direct or indirect) of subrogation (whether contractual,
under Section 509 of the Bankruptcy Code or otherwise) to the claims of any Holder or the Trustee against the Company or any other
person who became an “obligor” under the Securities or this Indenture in respect of any obligation with respect to
the Securities or this Indenture, notwithstanding any payment or payments made by the Guarantor hereunder or any set-off or application
of funds of the Guarantor by the Holder; and the Guarantor hereby waives all contractual, statutory and common law rights of reimbursement,
contribution or indemnity it may have against the Company or any other such person as the case may be, and any and all other rights
of payment or recovery from the Company or any other such person, as the case may be, that it may now have or hereafter acquire
until all Securities and all obligations under this Indenture have been paid in full (in which event such rights of payment or
recovery shall be deemed to be in the form of a loan or loans made from the Guarantor to the Company or any other such person,
as the case may be). The Guarantor further agrees that, in its capacity as guarantor, as between the Guarantor, on the one hand,
and the Holders and the Trustee, on the other hand, (1) the maturity of the Securities guaranteed hereby may be accelerated as
provided in Article VI of this Indenture for the purposes of the Guarantor’s Guarantee hereunder, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the Securities guaranteed pursuant to this Article
XII, and (2) in the event of any declaration of acceleration of such Securities as provided in Article VI of this Indenture, such
Securities (whether or not due and payable) will forthwith become due and payable by the Guarantor for the purpose of its Guarantee
hereunder.

 

12.1.9       
Except as otherwise specifically provided in this Article XII with respect to the release of the Guarantor from its Guarantee
hereunder, such Guarantee shall remain in full force and effect and be binding in accordance with and to the extent of its terms
upon the Guarantor and the successors thereof, and shall inure to the benefit of (and be enforceable by) the Trustee and the Holders
from time to time, or their respective successors or assignees, until this Indenture shall have been terminated and the principal
of and interest, if any, on the Securities, and the obligations of the Guarantor in respect of the Guaranteed Obligations, have
been satisfied by payment in full.

 

12.1.10     
Payments made by the Guarantor pursuant to its Guarantee hereunder will be made to each Holder in the same manner, and to the
same location, as payments to such Holder are required to be made pursuant to the provisions of the Securities and this Indenture.

 

12.1.11     
The Guarantor shall pay all reasonable costs and expenses (including reasonable attorneys’ fees and expenses) paid or incurred
by the Trustee or any Holder in connection with the enforcement of the Guarantee or any other rights of the Trustee or such Holder
under this Indenture and the Securities with respect to such Guarantee and the prosecution or defense of any action by or against
any of the Holders in connection with the Guarantee or this Indenture with respect to such Guarantee, whether involving the Guarantor
or any other person, including a trustee in bankruptcy; provided, however, that the Guarantor shall have no such obligation in
connection with any action brought by any Holder against the Guarantor to the extent that the Guarantor is the prevailing party
in the judgment rendered in any such action; and provided further that the Guarantor shall not be responsible for the fees and
expenses of more than one firm of attorneys (in addition to any required local counsel).

 

     51

     

    

 

12.1.12     
The Guarantor hereby agrees that its Guarantee set forth in this Article XII shall remain in full force and effect notwithstanding
the absence on any Security of a notation relating to such Guarantee.

 

ARTICLE
XIII

ADDITIONAL AMOUNTS; CERTAIN TAX PROVISIONS

 

SECTION
13.1       Redemption Upon Changes in Withholding Taxes.

 

Unless
otherwise provided pursuant to Section 2.2, the Securities of any Series may be redeemed, as a whole but not in part, at the option
of the Company, upon not less than 30 nor more than 60 days’ notice (which notice shall be irrevocable), at a redemption
price equal to 100% of the principal amount thereof, together with accrued interest, if any, to the redemption date and Additional
Amounts (as defined in Section 13.2), if any, if as a result of any amendment to, or change in, the laws, regulations, rulings
or treaties of the United Kingdom, the United States or other jurisdiction in which the Company or the Guarantor or, in each case,
any successor thereof (including a successor person formed by a consolidation with the Company or the Guarantor, into which the
Company or the Guarantor is merged, or that acquires or leases all or substantially all of the property and assets of the Company
or the Guarantor) may be incorporated, organized, or otherwise resident for tax purposes, or engaged in business for tax purposes,
as applicable, or any political subdivision thereof or therein having the power to tax, or any jurisdiction from or through which
payment is made by or on behalf of the Company or the Guarantor (a “Taxing Jurisdiction”), or any change in the application
or official interpretation of such laws, regulations, rulings or treaties, including any action taken by, or change in the published
administrative practice of, a taxing authority or a holding by a court of competent jurisdiction (regardless of whether such action,
change or holding is with respect to the Company or the Guarantor), which amendment or change is announced or becomes effective
on or after the date the Securities of such Series are issued, the Company or the Guarantor has become, or there is a substantial
probability that it will become, obligated to pay Additional Amounts on the next date on which any amount would be payable with
respect to the Securities of such Series (but, in the case of the Guarantor, only if the payment giving rise to such requirement
cannot be made by the Company), and such obligation cannot be avoided by the use of commercially reasonable measures available
to the Company or the Guarantor, as the case may be, including, for the avoidance of doubt, the appointment of a new paying agent
but not including substitution of the obligor on the Securities; provided, however, that no such notice of redemption may be given
earlier than 60 days prior to the earliest date on which the Company or the Guarantor, as the case may be, would be obligated,
or there is a substantial probability the Company or the Guarantor would otherwise be obligated, to pay such Additional Amount.
Prior to the publication or, where relevant, mailing (and/or to the extent permitted by applicable procedures or regulations,
electronic delivery) of any notice of redemption described in this paragraph, the Company shall deliver to the Trustee (i) an
Officer’s Certificate of the Company or the Guarantor, as the case may be, stating that the obligation to pay Additional
Amounts cannot be avoided by the Company or the Guarantor, as the case may be, taking commercially reasonable measures available
to it, as described above, and (ii) a written opinion of independent tax counsel to the Company or the Guarantor, as the case
may be, of recognized standing to the effect that the Company or the Guarantor, as the case may be, has or there is a substantial
probability that it will become obligated to pay Additional Amounts as a result of a change, amendment, official interpretation
or application described above.

 

     52

     

    

 

SECTION
13.2       Payment of Additional Amounts.

 

All
payments made by the Company or the Guarantor under or with respect to the Securities and the Guarantee will be made free and
clear of and without withholding or deduction for or on account of any present or future taxes, duties, levies, imposts, assessments
or governmental charges of whatever nature imposed or levied by or on behalf of any Taxing Jurisdiction (“Taxes”),
unless the Company or the Guarantor, as the case may be, is required to withhold or deduct Taxes by law or by the interpretation
or administration thereof. In the event that the Company or the Guarantor is required to so withhold or deduct any amount for
or on account of any Taxes from any payment made under or with respect to the Securities or the Guarantee, as the case may be,
the Company or the Guarantor, as the case may be, will pay such additional amounts (“Additional Amounts”) as may be
necessary so that the net amount received by each holder of Securities (including Additional Amounts) after such withholding or
deduction will equal the amount that such Holder would have received if such Taxes had not been required to be withheld or deducted;
provided that no Additional Amounts will be payable with respect to a payment to a holder of Securities or a holder of beneficial
interests in Global Securities where such holder is subject to taxation on such payment by a relevant Taxing Jurisdiction for
or on account of:

 

(a)         
any Taxes that are imposed or withheld solely because such holder (or the beneficial owner for whose benefit such holder holds
such Securities) or a fiduciary, settlor, beneficiary, member, shareholder or other equity owner of, or possessor of a power over,
such holder (or beneficial owner) if such holder (or beneficial owner) is an estate, trust, partnership, limited liability company,
corporation or other entity:

 

(i)          
is or was present or engaged in, or is or was treated as present or engaged in, a trade or business in the Taxing Jurisdiction
or has or had a permanent establishment in the Taxing Jurisdiction (in each case, other than the mere fact of ownership of such
Securities, without another presence or business in such Taxing Jurisdiction);

 

(ii)         
has or had any present or former connection (other than the mere fact of ownership of such Securities) with the Taxing Jurisdiction
imposing such Taxes, including being or having been a national citizen or resident thereof, being treated as being or having been
a resident thereof or being or having been physically present therein;

 

(iii)        
(in relation to payments by the Guarantor only) is or was a personal holding company, a passive foreign investment company, a
controlled foreign corporation, a foreign private foundation or other foreign tax exempt organization or corporation that has
accumulated earnings to avoid United States federal income tax; or

 

     53

     

    

 

(iv)       
(in relation to payments by the Guarantor only) actually or constructively owns or owned 10% or more of the total combined voting
power of all classes of stock of the Guarantor within the meaning of Section 871(h)(3) of the Code;

 

(b)         
Taxes imposed on any holder that is not the sole beneficial owner of the Securities, or a portion thereof, or that is a fiduciary
or partnership, but only to the extent that a beneficiary or settlor with respect to the fiduciary, a beneficial owner or member
of the partnership would not have been entitled to the payment of an Additional Amount had the beneficiary, settlor, beneficial
owner, or member received directly its beneficial or distributive share of the payment;

 

(c)         
any estate, inheritance, gift, sales, transfer, excise, personal property or similar Taxes imposed with respect to the Securities,
except as otherwise provided herein;

 

(d)         
any Taxes imposed solely as a result of the presentation of such Securities (where presentation is required) for payment on a
date more than 30 days after the date on which such payment became due and payable or the date on which payment thereof is duly
provided for, whichever is later, except to the extent that the beneficiary or holder thereof would have been entitled to the
payment of Additional Amounts had the Securities been presented for payment on any date during such 30-day period;

 

(e)         
any Taxes imposed or withheld solely as a result of the failure of such holder or any other person to comply with applicable certification,
information, documentation or other reporting requirements concerning the nationality, residence, or identity of such holder or
connection with any Taxing Jurisdiction by such holder, if such compliance is required by statute, regulation, ruling or administrative
practice of the relevant Taxing Jurisdiction or by any applicable tax treaty to which the relevant Taxing Jurisdiction is a party
as a precondition to relief or exemption from such Taxes;

 

(f)          
any Taxes that are payable by any method other than withholding or deduction by the Company or the Guarantor or any paying agent
from payments in respect of such Securities;

 

(g)         
any Taxes required to be withheld by any paying agent from any payment in respect of any Securities if such payment can be made
without such withholding by at least one other paying agent;

 

(h)         
any withholding or deduction required pursuant to sections 1471 through 1474 of the Code, any regulations or agreements thereunder,
official interpretations thereof, any intergovernmental agreement, or any law, rule, guidance or administrative practice implementing
an intergovernmental agreement entered into in connection with such sections of the Code; or

 

     54

     

    

 

(i)          
any combination of Section 13.2(a), (b), (c), (d), (e), (f), (g) or (h).

 

The
Company or the Guarantor, as the case may be, will also (i) make such withholding or deduction of Taxes and (ii) remit the full
amount of Taxes so deducted or withheld to the relevant Taxing Jurisdiction in accordance with all applicable laws. The Company
or the Guarantor, as applicable, will use its commercially reasonable efforts to obtain certified copies of tax receipts evidencing
the payment of any Taxes so deducted or withheld from each taxing authority imposing such Taxes. The Company or the Guarantor,
as the case may be, will, upon request, make available to the holders of the Securities, within 90 days after the date the payment
of any Taxes so deducted or withheld is due pursuant to applicable law, certified copies of tax receipts evidencing such payment
by the Company or the Guarantor or if, notwithstanding the Company’s or the Guarantor’s efforts to obtain such receipts,
the same are not obtainable, other evidence of such payments by the Company or the Guarantor.

 

At
least 30 days prior to each date on which any payment under or with respect to the Securities or the Guarantee is due and payable,
if the Company or the Guarantor will be obligated to pay Additional Amounts with respect to such payment, the Company or the Guarantor
will deliver to the Trustee an Officer’s Certificate stating the fact that such Additional Amounts will be payable and the
amounts so payable and will set forth such other information as is necessary to enable such Trustee to pay such Additional Amounts
to holders of Securities on the payment date.

 

In
addition, the Company will pay any stamp, issue, registration, documentary or other similar taxes and duties, including interest,
penalties and Additional Amounts with respect thereto, payable in the United Kingdom or the United States or any political subdivision
or taxing authority of or in the foregoing in respect of the creation, issue, offering, enforcement, redemption or retirement
of the Securities.

 

The
provisions of this Article XIII shall survive any termination or the discharge of this Indenture and shall apply mutatis mutandis
to any jurisdiction in which the Company or the Guarantor or any successor person to the Company or the Guarantor, as the case
may be, is organized or is engaged in business for tax purposes or any political subdivisions or taxing authority or agency thereof
or therein; provided, however, the date on which the Company or the Guarantor changes its jurisdiction or such Person becomes
a successor to the Company or the Guarantor, as the case may be, shall be substituted for the date on which the Series of Securities
was issued.

 

Whenever
in this Indenture, the Securities or the Guarantee there is mentioned, in any context, the payment of principal and premium, if
any, redemption price, interest or any other amount payable under or with respect to any Security, such mention shall be deemed
to include mention of the payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would
be payable in respect thereof.

 

     55

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of the day and year first above written.

 

	Dated:	OMNICOM FINANCE HOLDINGS PLC, 

as
    Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	OMNICOM GROUP INC., 

as Guarantor
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,
    

as Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     56

     

    

 

EXHIBIT
A

 

Debt
Security

Form of Face of Security

[Title of Series]

 

[If
the Security is a Global Security, insert the following legend: THIS GLOBAL SECURITY IS HELD BY THE DEPOSITORY (AS DEFINED IN
THE INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE
TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE ANY SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT
TO THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.7 OF THE INDENTURE,
(III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO THE INDENTURE AND (IV) THIS GLOBAL SECURITY
MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS
A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR TO ANOTHER NOMINEE
OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.
UNLESS THIS GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF ANY ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS MADE TO SUCH ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF HAS AN INTEREST HEREIN.]

 

[Insert
any legend required by applicable securities laws and regulations or the Internal Revenue Code and the regulations thereunder.]

 

No.      

 

[CUSIP]
[Common Code] [ISIN]        

 

[$]       

 

    A-1

     

    

 

OMNICOM
FINANCE HOLDINGS PLC, a public limited company organized under the laws of England and Wales (the “Company,” which
term includes any successor person under the Indenture hereinafter referred to), for value received, hereby promises to pay to
           , or registered assigns, the principal sum of          [Dollars] [if other than Dollars, substitute other Currency
or Currency units] on                   ,           [if the Security is to bear interest prior to Maturity, insert - and to pay interest
thereon from            or from the most recent interest payment date to which interest has been paid] or duly provided for,
[semi-annually on payments, insert frequency of payments and payment dates], commencing and in each year] [If other than semi-annual,
at [If the Security is to bear interest at a fixed rate, insert - the rate of           % per annum, set forth below] [If the
Security is to bear interest at a variable or floating rate and if determined with reference to an index, refer to description
of index below] until the principal hereof is paid or made available for payment [If applicable, insert - and (to the extent that
the payment of such interest shall be legally enforceable) at the rate of         % per annum on any overdue principal and premium
and on any overdue installment of interest]. The interest so payable, and punctually paid or duly provided for, on any interest
payment date will, as provided in such Indenture, be paid to the person in whose name this Security (or one or more predecessor
securities) is registered at the close of business on the [regular] record date for such interest, which shall be the        
or           (whether or not a Business Day), as the case may be, next preceding such interest payment date. Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such [regular] record date and
may either be paid to the person in whose name this Security (or one or more predecessor securities) is registered at the close
of business on a [special] record date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall
be given to Holders of Securities of this Series not less than 10 days prior to such [special] record date, or be paid at any
time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this
Series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture).

 

[If
the Securities are floating or adjustable rate securities with respect to which the principal of or any premium or interest may
be determined with reference to an index, insert the text of the floating or adjustable rate provision.]

 

[If
the Security is not to bear interest prior to Maturity, insert - The principal of this Security shall not bear interest except
in the case of a default in payment of principal upon acceleration, upon redemption or at Stated Maturity and in such case the
overdue principal of this Security shall bear interest at the rate of       % per annum (to the extent that the payment of
such interest shall be legally enforceable), which shall accrue from the date of such default in payment to the date payment of
such principal has been made or duly provided for. Interest on any overdue principal shall be payable on demand. Any such interest
on any overdue principal that is not so paid on demand shall bear interest at the rate of          % per annum (to the extent
that the payment of such interest shall be legally enforceable), which shall accrue from the date of such demand for payment to
the date payment of such interest has been made or duly provided for, and such interest shall also be payable on demand.]

 

Payment
of the principal of (and premium, if any) and [if applicable, insert - any such] interest on this Security will be made at the
office or agency of the Company maintained for that purpose in        , in accordance with the terms of the Indenture referred
to on the reverse hereof in immediately available funds; provided, however, that at the option of the Company payment of interest
may be made by check mailed to the address of the person entitled thereto as such address shall appear in the Security register).

 

    A-2

     

    

 

This
Security is fully and unconditionally guaranteed by Omnicom Group Inc., a corporation duly organized and existing under the laws
of the State of New York (the “Guarantor”), as provided in the Indenture.

 

Reference
is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

 

This
Security shall be deemed to be a contract made under the laws of the State of New York, and for all purposes shall be construed
in accordance with and governed by the laws of said state [other than with respect to any subordinated Debt, in which case the
subordination provisions specified in the Board Resolution, Officer’s Certificate of the Company or supplemental indenture
establishing the terms of this subordinated Security only shall be governed by the laws of England and Wales].

 

Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature,
this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

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

 

	Dated:	OMNICOM
        FINANCE HOLDINGS PLC
	 	 	 
	 	By:	               
	 	By:	               

 

    A-3

     

    

 

Form
of Trustee’s Certificate of Authentication.

 

The
Trustee’s certificate of authentication shall be in substantially the following form:

 

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

 

		Deutsche
        Bank Trust Company Americas, as Trustee
	 	 	 
	 	By:	           
	 		Authorized
        Signatory

 

    A-4

     

    

 

Form
of Reverse of Security.

 

OMNICOM
FINANCE HOLDINGS PLC

 

[Title
of Series]

 

This
Security is one of a duly authorized issue of securities of the Company, designated as its _________ due _________ (herein called
the “Securities”), issued and to be issued in one or more Series under an Indenture, dated as of _________, [as amended
by, [insert description of any applicable supplemental indentures]], herein [collectively] called the “Indenture”),
between the Company, the Guarantor and _________, as Trustee (herein called the “Trustee,” which term includes
any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantor,
the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof [, limited in aggregate principal amount to $_________].
Capitalized terms used in this Security and not defined herein have the meaning ascribed thereto in the Indenture.

 

_________,
the Trustee under the Indenture has been appointed by the Company as paying agent, registrar, [conversion agent] and [custodian]
with regard to the Securities.

 

In
case an Event of Default shall have occurred and be continuing, the principal of and accrued interest on all Securities may be
declared, and upon said declaration, shall become due and payable, in the manner, with the effect and subject to the conditions
provided for in the Indenture.

 

[If
applicable, insert - The Securities of this Series are subject to redemption upon not less than 15 days’ nor more than 60
days’ notice by mail (or electronic delivery in accordance with the procedures of the Depository), [if applicable, insert
- (1) on _________ in any year commencing with the year _________ and ending with the year _________ through operation of the
sinking fund for this Series at a redemption price equal to 100% of the principal amount, and (2)] at any time [on or after _________,
____] as a whole or in part, at the election of the Company, at the following redemption prices (expressed as percentages of the
principal amount): If redeemed [on or before _________, ____% and if redeemed] during the 12-month period beginning of the years
indicated,

 

	Redemption
    Year	Price	Redemption
    Year	Price
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

and
thereafter at a redemption price equal to of the principal amount, together in the case of any such redemption [if applicable,
insert - (whether through operation of the sinking fund or otherwise)] with accrued interest to the redemption date, but interest
installments whose stated Maturity is on or prior to such redemption date will be payable to the Holders of such Securities, or
one or more predecessor securities, of record at the close of business on the relevant record dates referred to on the face hereof,
all as provided in the Indenture.]

 

    A-5

     

    

 

[If
applicable, insert - The Securities of this Series are subject to redemption upon not less than 15 days’ nor more than 60
days’ notice by mail (or electronic delivery in accordance with the procedures of the Depository), (1) on _________ in any
year commencing with the year _______ and ending with the year _______ through operation of the sinking fund for this Series at
the redemption prices for redemption through operation of the sinking fund (expressed as percentages of the principal amount)
set forth in the table below, and (2) at any time [on or after_______], as a whole or in part, at the election of the Company,
at the redemption prices for redemption otherwise than through operation of the sinking fund (expressed as percentages of the
principal amount) set forth in the table below: If redeemed during the 12-month period beginning _______ of the years indicated,

 

	Redemption
Price For

 Redemption Through

 Operation of the 

Sinking Fund
	Redemption
Price For 

Redemption Otherwise

 Than Through 

Operation Year
	Sinking
Fund

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

and
thereafter at a redemption price equal to _______% of the principal amount, together in the case of any such redemption (whether
through operation of the sinking fund or otherwise) with accrued interest to the redemption date, but interest installments whose
Stated Maturity in on or prior to such redemption date will be payable to the Holders of such Securities, or one or more predecessor
securities, of record at the close of business on the relevant record dates referred to on the face hereof, all as provided in
the Indenture.]

 

[The
sinking fund for this Series provides for the redemption on _______ in each year beginning with the year _______ and ending with
the year _______ of [not less than $_______ “mandatory sinking fund”) and not more than] $_______ aggregate principal
amount of Securities of this Series. Securities of this Series acquired or redeemed by the Company otherwise than through [mandatory]
sinking fund payments may be credited against subsequent [mandatory] sinking fund payments otherwise required to be made [in the
inverse order in which they become due).]]

 

[If
the Security is subject to redemption, insert - In the event of redemption of this Security in part only, a new Security or Securities
of this Series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.]

 

    A-6

     

    

 

The
Indenture contains provisions that permit the Company to elect either (1) to defease and be discharged from the entire indebtedness
of this Security or (2) to be released from its obligations under certain restrictive covenants and Events of Default with respect
to this Security, in each case upon payment in full of the Securities and compliance with certain conditions set forth in the
Indenture.

 

[If
the Security is convertible into or exchangeable for common stock of the Guarantor, insert appropriate provisions and specify
the conversion features and the form of conversion notice pursuant to the Form of Conversion Notice set forth herein.]

 

[If
the Security is not an Original Issue Discount Security, insert - If an Event of Default with respect to Securities of this Series
shall occur and be continuing, the principal of the Securities of this Series may be declared due and payable in the manner and
with the effect provided in the Indenture.]

 

[If
the Security is an Original Issue-Discount Security, insert - If an Event of Default with respect to Securities of this Series
shall occur and be continuing, an amount of principal of the Securities of this Series may be declared due and payable in the
manner and with the effect provided in the Indenture. Such amount shall be equal to - Insert formula for determining the amount.

 

Upon
payment (i) of the amount of principal so declared due and payable and (ii) of interest on any overdue principal and overdue interest
(in each case to the extent that the payment of such interest shall be legally enforceable), all of the Company’s obligations
in respect of the payment of the principal of and interest, if any, on the Securities of this Series shall terminate.]

 

[If
Security is subordinate Debt, insert - The Company and each Holder of the Securities of this Series, by accepting such Securities,
agree that the payment of the principal, premium, if any, and interest on such Securities is subordinated, to the extent and in
the manner provided in the applicable [supplemental indenture][Officer’s Certificate of the Company] creating this Series,
to the prior payment in full of all present and future Senior Debt, as defined in the applicable [supplemental indenture][Officer’s
Certificate of the Company] and that the subordination provisions in the applicable [supplemental indenture][Officer’s Certificate
of the Company] relating to this Series of Securities are for the benefit of the holders of Senior Debt. Each Holder of a Security
by his or her acceptance thereof authorizes and directs the Trustee in his or her behalf to take such action as may be necessary
or appropriate to effectuate the subordination provided for in the Indenture and appoints the Trustee his or her attorney-in-fact
for any and all such purposes.]

 

The
Indenture permits the amendment thereof and the modification of the rights and obligations of the Company and the Guarantor and
the rights of the Holders of the Securities of each Series to be affected under the Indenture at any time by the Company, the
Guarantor and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time outstanding
of each Series to be affected, with certain exceptions as therein provided with respect to certain modifications or amendments
which may not be made without the consent of each Holder of such Security affected thereby. The Indenture also permits certain
amendments and modifications thereto from time to time by the Company, the Guarantor and the Trustee without the consent of the
Holders of any Series of the Securities to be affected thereby for certain specified purposes, including curing ambiguities, defects
or inconsistencies and making any such change that does not adversely affect the legal rights of any Holder of such Series of
the Securities, as provided therein.

 

    A-7

     

    

 

The
Indenture contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each Series
at the time outstanding, on behalf of the Holders of all Securities of such Series, to waive compliance by the Company or the
Guarantor with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences with respect
to such Series. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange hereof
or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

No
reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of and any premium and Interest on this Security at the
times, place and [rate(s)], and in the coin or Currency, herein prescribed.

 

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

 

The
Securities of this Series are issuable only in registered form without coupons in denominations of $_______ and integral multiples
of $_______ in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of
this Series are exchangeable for a like aggregate principal amount of Securities of this Series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

 

No
service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection therewith.

 

Prior
to due presentment of this Security for registration of transfer, the Company, the Guarantor, the Trustee and any agent of the
Company, the Guarantor or the Trustee may treat the person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security is overdue, and none of the Company, the Guarantor, the Trustee or any such agent shall
be affected by notice to the contrary.

 

    A-8

     

    

 

No
recourse shall be had for the payment of the principal of (and premium, if any) or interest on this Security, or for any claim
based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto,
against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company, the Guarantor or
of any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment
or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof,
expressly waived and released.

 

All
terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

    A-9

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