Document:

EX-10.1

 Exhibit 10.1 

Selected Senior Management – U.S. (Single-Trigger) 

Construction Incentive Plan (NTP) 
  

 
 To:
[                    ] 
 (“you” or the
“Grantee”) 
 CONSTRUCTION INCENTIVE AWARD AGREEMENT 

Congratulations! Tellurian Services LLC (the “Employer”) hereby awards you the opportunity to participate in a cash incentive
award with respect to the development by Driftwood Holdings LLC and its subsidiaries and successors (collectively, the “Partnership”) of the Driftwood LNG Liquefaction Facility, a liquefied natural gas production and export terminal
on the west bank of the Calcasieu River, Louisiana, USA (the “Driftwood Project”), on the terms and subject to the conditions (including the vesting restrictions) set out in this Construction Incentive Award Agreement (this
“Agreement”). Tellurian Inc. (the “Company”) is a party to this Agreement solely for the purpose of providing the guarantee set out below under “Guarantee”. 

All capitalized words used in this Agreement that are not defined in the main body of this Agreement are defined in the Glossary at the end of
this Agreement. 
  

			
	Grant Date:	  	[                    ] (the “Grant Date”)
		
	Cash Award:	  	 The aggregate amount of the award shall be $[        ], which shall be payable to you by the
Employer in cash on the occurrence of certain milestones (as described below) on the terms, and subject to the conditions, set out in this Agreement (the “Cash Award”).

 
 The Cash Award shall be allocated among Phases 1 to 4 of the Driftwood Project under
the Driftwood EPC Contracts (each, a “Phase”), as follows:

  

									
	 Phase
	  	Allocation (% of total Cash
Award)	 	 	Allocation ($)	 
	 Phase 1
	  	 	40	% 	 	$	[            	] 
	 Phase 2
	  	 	20	% 	 	$	[            	] 
	 Phase 3
	  	 	20	% 	 	$	[            	] 
	 Phase 4
	  	 	20	% 	 	$	[            	] 

			
	Vesting:	  	Subject to the other provisions contained herein, the portion of the Cash Award allocated to any Phase of the Driftwood Project shall vest and become payable to you as follows:
		
		  	 •   25% of the Cash Award allocated to such Phase shall vest and become
payable on the first anniversary of the NTP Date applicable to such Phase;
  

•   25% of the Cash Award allocated to such Phase shall vest and become payable on the second
anniversary of the applicable NTP Date;
  

•   25% of the Cash Award allocated to such Phase shall vest and become payable on the third
anniversary of the applicable NTP Date; and
  

•   25% of the Cash Award allocated to such Phase shall vest and become payable on the fourth
anniversary of the applicable NTP Date (the “Vesting Schedule”).
  

There shall be no proportionate or partial vesting in the periods prior to the applicable vesting date(s) and all vesting shall occur only on the applicable
vesting date(s), subject to your continued employment or other service to the Employer, the Company, any of their Subsidiaries or the Partnership on the applicable vesting date.

		
	Expiration:	  	 This Cash Award shall expire on the ten (10) year anniversary of the Grant Date (the “Expiration Date”). To the
extent that by the Expiration Date the NTP Date for any Phase has not occurred, your entitlement to the Cash Award allocated to such Phase shall immediately lapse and be forfeited by you, without any right to compensation, and the Employer shall not
be liable to pay any amount to you in respect thereof.
  
 However, for the avoidance
of doubt, if the NTP Date for a Phase has occurred on or before the Expiration Date, the associated portion of the Cash Award for such Phase shall (subject to the provisions of this Agreement) vest in accordance with the Vesting
Schedule.

		
	Payment:	  	Each portion of the Cash Award shall be paid to you in cash on or as soon as administratively practicable following the date on which such portion vests, and in any event not later than thirty (30) days after the date of
vesting. All payments in settlement of any portion of the Cash Award shall be subject to applicable tax withholding, as set forth in greater detail below.
		
	Termination of Service (Generally):	  	Except as otherwise provided herein, in the event of your Termination of Service for any reason (whether notice of termination is given by you or the Company, the Employer, one of their Subsidiaries or the Partnership), you shall
not be entitled to receive and shall forfeit, without any right to compensation, any rights in respect of any portion of the Cash Award that is unvested as of the date of such Termination of Service.

			
	Termination of Service Due to Disability:	  	 If you experience a Termination of Service by reason of Disability prior to the occurrence of the NTP Date for a particular Phase, then
any portion of the Cash Award allocated to any Phase for which the applicable NTP Date occurs within one (1) year following the date of such Termination of Service shall vest and become payable to you immediately as of such NTP Date.

 
 If you experience a Termination of Service by reason of Disability on or following the
occurrence of the NTP Date for a particular Phase, any unvested portion of the Cash Award allocated to such Phase shall vest and become payable to you immediately on the date of the Termination of Service.

 
 Your entitlement to any portion of the Cash Award allocated to a Phase for which the
applicable NTP Date does not occur within a one (1) year period following the date of the Termination of Service by reason of Disability shall immediately lapse and be forfeited on the first
(1st) anniversary of such Termination of Service.

		
	Termination of Service Due to Death:	  	 If you die prior to the occurrence of the NTP Date for a particular Phase, then any portion of the Cash Award allocated to such Phase
shall remain outstanding and eligible to become vested in full subject to and upon the occurrence of the applicable NTP Date on or before the Expiration Date, without regard to the continued service condition.

 
 If you die on or after the occurrence of the NTP Date for a particular Phase, then any
unvested portion of the Cash Award allocated to such Phase shall vest and become payable to your estate immediately on the date of your death.

		
	Termination Without Cause:	  	Except as otherwise provided below under “Change of Control”, if you experience a Termination Without Cause prior to the occurrence of the NTP Date for a particular Phase, then any portion of the Cash Award
allocated to such Phase shall not immediately lapse and instead shall remain outstanding and vest in accordance with the Vesting Schedule, without regard to the continued service condition, subject to and conditioned upon: (A) the occurrence of
the applicable NTP Date on or before the Expiration Date; (B) your continued compliance with the Restrictive Covenants; and (C) your timely execution and delivery (without revocation) to the Employer of the Release within twenty-one (21) days (or such longer period as may be required by law) after delivery of the form of Release by the Employer.

			
		  	If you experience a Termination Without Cause on or after the occurrence of the NTP Date for a particular Phase, then any portion of the Cash Award allocated to such Phase that is unvested as of the date of such Termination
Without Cause shall not immediately lapse and instead shall remain outstanding and vest in accordance with the Vesting Schedule, without regard to the requirement of your continued employment or service on the scheduled vesting date(s), subject to
and conditioned upon: (A) your continued compliance with the Restrictive Covenants; and (B) your timely execution and delivery (without revocation) to the Employer of the Release within twenty-one
(21) days (or such longer period as may be required by law) after delivery of the form of Release by the Employer.
		
	Change of Control:	  	In the event of a Change of Control while any portion of the Cash Award is unvested, such unvested portion of the Cash Award shall immediately vest and become payable in full as of the date of the Change of Control so long as:
(i) there has not been a Termination of Service prior to the Change of Control; or (ii) there has been a Termination Without Cause within six (6) months prior to the date of the Change of Control (in such case, subject to and
conditioned upon: (A) your continued compliance with the Restrictive Covenants; and (B) your timely execution and delivery (without revocation) to the Employer of a Release within twenty-one
(21) days (or such longer period as may be required by law) after delivery of the form of Release by the Employer).
		
	Withholding of Taxes:	  	 Amounts payable in respect of the Cash Award shall be subject to withholding and deductions for federal, state and/or local taxes, and the
Employer shall have the right to withhold such amounts from any amounts otherwise payable to you in respect of the Cash Award or to otherwise require, prior to the grant, vesting or payment of the Cash Award, payment by you of any federal, state or
local taxes required by law to be withheld.
  
 To the extent permitted under Code
Section 409A, the Employer shall have the right, in its sole discretion, to accelerate the vesting and payment of any portion of the Cash Award in its sole discretion in order to pay any income and/or employment taxes required in respect of the
Cash Award prior to payment (provided that you shall have no discretion, and may not be given a direct or indirect election, with respect to whether the Employer exercises such discretion to accelerate).

		
	Code Section 409A:	  	It is intended that the Cash Award will comply with or be exempt from Code Section 409A, and this Agreement will be construed and interpreted in accordance with such intent.

			
		  	 A termination of employment (or other service, as the case may be) shall not be deemed to have occurred for purposes of any provision of
this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment (or other service, as the case may be) unless such termination is also a “separation from service” within the meaning of Code
Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”

 
 For purposes of Code Section 409A, a right to receive any installment payments
pursuant to the Cash Award shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under the Cash Award specifies a payment period with reference to a number of days (e.g., “payment shall be
made within thirty (30) days”), the actual date of payment within the specified period shall be within the sole discretion of the Employer.
  

Notwithstanding anything herein to the contrary, the following shall apply, if and to the extent required by Code Section 409A, in the event that
(A) you are deemed to be a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i) and (B) amounts or benefits under the Cash Award or any other program, plan or arrangement of the Employer or a controlled
group affiliate thereof are due or payable on account of “separation from service” within the meaning of Treasury Regulations Section 1.409A-1(h): No such payments that are “nonqualified
deferred compensation” subject to Code Section 409A shall be made prior to the date that is six (6) months after the date of separation from service or, if earlier, the date of death; following any applicable six (6) month delay,
all such delayed payments will be paid in a single lump sum (without interest) on the earliest permissible payment date.
  

Notwithstanding anything herein to the contrary, to the extent that the Cash Award is (i) subject to Code Section 409A and (ii) a Change of
Control would accelerate the timing of payment thereunder, the payment of such Cash Award shall not occur until the earliest of (I) the Change of Control if such Change of Control constitutes a “change in the ownership of the
corporation,” a “change in the effective control of the corporation” or a “change in the ownership of a substantial portion of the assets of the corporation,” within the meaning of Code Section 409A(2)(A)(v), (II) the
date such Cash Award would otherwise be settled pursuant to the terms of this Agreement and (III) your “separation of service” within the meaning of Code Section 409A.

		
	No Right to Employment or Consultancy Service:	  	Nothing in this Agreement shall confer upon you any right with respect to continuation as an employee, consultant or director with the Company, the Employer, any of their Subsidiaries or the Partnership, nor shall it interfere
with or restrict in any way the right of the

			
		  	Company, the Employer, any of their Subsidiaries or the Partnership, which is hereby expressly reserved, to remove, terminate or discharge you at any time for any reason whatsoever, with or without Cause and with or without
advance notice. This Agreement is not intended to and does not amend any existing employment or consultancy contract between you and the Company, the Employer, any of their Subsidiaries or the Partnership.
		
	No Shareholder Rights:	  	The grant of the Cash Award hereunder shall not make you, nor give you any of the rights of privileges of, a shareholder of the Company or any of its Affiliates (including the Employer).
		
	Unsecured Obligation:	  	Except as otherwise provided below under “Guarantee”, the obligations of the Company and the Employer with respect to the Cash Award is an unfunded and unsecured promise, and ultimately your right to receive the
payments contemplated by the Cash Award shall be no greater than the rights of any other unsecured general creditor of the Company or the Employer.
		
	Restrictions on Transfer:	  	You shall not sell, transfer, pledge, hypothecate, assign or otherwise dispose of the Cash Award or any rights or interest therein, including without limitation any rights under this Agreement or any amounts payable in settlement
of the Cash Award, prior to payment hereunder. Any attempted sale, transfer, pledge, hypothecation, assignment or other disposition of the Cash Award in violation of this provision shall be void and of no effect.
		
	Guarantee:	  	 The Company guarantees to the Grantee the due and punctual performance, observance and discharge by the Employer of all the Guaranteed
Obligations if and when they become performable or due under this Agreement.
  
 If the
Employer defaults in the payment when due of any amount that is a Guaranteed Obligation the Company shall, immediately on demand by the Grantee, pay that amount to the Grantee in the manner prescribed by this Agreement.

 
 The Company as principal obligor and as a separate and independent obligation and
liability from its obligations and liabilities, agrees to indemnify and keep indemnified the Grantee in full and on demand from and against all and any losses, costs, claims, liabilities, damages, demands and expenses suffered or incurred by the
Grantee arising out of, or in connection with, the Guaranteed Obligations not being recoverable for any reason, or the Company’s failure to perform or discharge any of the Guaranteed Obligations.

			
		  	 This guarantee shall at all times be a continuing security and shall cover the ultimate balance of all monies payable by the Company to
the Grantee in respect of the Guaranteed Obligations, irrespective of any intermediate payment or discharge in full or in part of the Guaranteed Obligations.
  

The Company irrevocably appoints the Employer as its agent to receive on its behalf service of any proceedings arising out of or in connection with this
Agreement. Such service shall be deemed completed on delivery to the agent (whether or not it is forwarded to or received by its principal). If for any reason the agent ceases to be able to act as agent or no longer has an address in the United
States, the Company shall immediately appoint a substitute and give notice to you of the new agent’s name and address. Nothing in this Agreement shall affect the right to serve process in any manner permitted by law.

		
	Severability:	  	If any provision of this Agreement (or part of any provision) is found by any court or other authority of competent jurisdiction to be invalid, illegal or unenforceable, that provision or part-provision shall, to the extent
required, be deemed not to form part of this agreement, and the validity and enforceability of the other provisions of this agreement shall not be affected.
		
	Counterparts:	  	This Agreement may be executed in one or more counterparts but shall not be effective until each party has executed at least one counterpart. Each such counterpart shall constitute an original of this Agreement but all the
counterparts shall together constitute the same instrument.
		
	Governing Law:	  	All matters arising out of or relating to this Agreement and the transactions contemplated hereby, including its validity, interpretation, construction, performance and enforcement, shall be governed by and construed in
accordance with the internal laws of the State of Delaware, without giving effect to principles of conflict of laws which would result in the application of the laws of any other jurisdiction. The Cash Award and any payments in settlement thereof
shall be subject to all applicable federal, state and local laws, rules and regulations, and to such approvals by any regulatory or governmental agency as may be required, if any.
		
	Data Protection:	  	By accepting the Cash Award (whether by electronic means or otherwise), you hereby consent to the holding and processing of personal data provided by you to the Company and the Employer for all purposes necessary for the
operation of this Agreement and the Cash Award. This includes, but is not limited to, administering and maintaining records regarding you; providing information to third party administrators of benefit plans and awards; and providing information to
future purchasers of the Company, the Employer or the business in

			
		  	which you work. You are hereby advised and directed to refer to any Employer data protection policy and/or notice from time to time in place for more details about how your personal data is used.
		
	Successors and Assigns:	  	The Employer may require any successors or assigns to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Employer would be required to perform it if no such succession or
assignment had taken place. All obligations of the Employer granted hereunder shall be binding on the Employer and its successors and assigns.
		
	Waiver:	  	No failure or delay by a party to exercise any right or remedy provided under this Agreement or by law shall constitute a waiver of that or any other right or remedy, nor shall it preclude or restrict the further exercise of that
or any other right or remedy. No single or partial exercise of any right or remedy provided under this Agreement shall preclude or restrict the further exercise of that or any other right or remedy.
		
	Entire Agreement:	  	 This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes any prior
agreements between you and the Company or the Employer with respect to the subject matter hereof.
  

No party has been induced to enter into this Agreement in reliance upon, nor have they been given, any warranty, representation, statement, assurance,
covenant, agreement, undertaking, indemnity or commitment of any nature whatsoever other than as are expressly set out in this Agreement and, to the extent that any of them have been, they unconditionally and irrevocably waive any claims, rights or
remedies which any of them might otherwise have had in relation thereto.

 By your signature, the signature of the Employer’s representative and the signature of the Company’s representative
below, you, the Employer and the Company hereby acknowledge that you have been issued the right to participate in the Cash Award with effect from the Grant Date on the terms and conditions of this Agreement. Further, you acknowledge your agreement
to be bound to the terms of this Agreement in connection with your acceptance of the Cash Award issued hereby through procedures, including electronic procedures, provided by or on behalf of the Employer. 

To accept the Cash Award, execute this form and return an executed copy to
[                    ] (the “Designated Recipient”) by
[                    ]. Failure to return the executed copy to the Designated Recipient by such date will render this award invalid. 

 EMPLOYER 
  

			
	Tellurian Services LLC
		
	By:	 	
                     
                                        

	Name:	 	[                                      
  ]
	Title:	 	[                                      
  ]
	
	COMPANY
	
	Tellurian Inc.
		
	By:	 	
                     
                                        

	Name:	 	[                                      
  ]
	Title:	 	[                                      
  ]
	
	GRANTEE
	
	Accepted by:
	
	  

[NAME]

		
	Date:	 	
                     
                                        

 GLOSSARY 

(a)     “Affiliate” shall mean any person that directly or indirectly controls, is controlled by or is
under common control with the Company. The term “control” (including, with correlative meaning, the terms “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 such person, whether through the ownership of voting or other securities, by contract or otherwise. 

(b)    “Board” shall mean the Board of Directors of the Company. 

(c)    “Cause” shall mean a Termination of Service resulting from (a) your indictment for,
conviction of, or pleading of guilty or nolo contendere to, any felony or any crime involving fraud, dishonesty or moral turpitude; (b) your gross negligence with regard to the Company or any Affiliate (including the Employer) in respect of
your duties for the Company or any Affiliate (including the Employer); (c) your willful misconduct having or, which in the good faith discretion of the Board could have, an adverse impact on the Company or any Affiliate (including the Employer)
economically or reputation-wise; (d) your material breach of this Agreement, or any employment, consulting or similar agreement between you and the Company or one of its Affiliates (including the Employer) or material breach of any code of
conduct or ethics or any other policy of the Company or any Affiliate (including the Employer), which breach (if curable in the good faith discretion of the Board) has remained uncured for a period of ten (10) days following delivery of written
notice to you specifying the manner in which the agreement or policy has been materially breached; or (e) your continued or repeated failure to perform your duties or responsibilities to the Company or any Affiliate (including the Employer) at
a level and in a manner satisfactory to the applicable party in its sole discretion (including by reason of your habitual absenteeism or due to your insubordination), which failure has not been cured to the satisfaction of the applicable party
following notice to you. Whether you have been terminated for Cause will be determined by the Company’s Chief Executive Officer (or his or her designee) in his or her sole discretion or, if you are or are reasonably expected to become subject
to the requirements of Section 16 of the Exchange Act, by the Board in its sole discretion. To the extent you are terminated as a member of the Board of the Company or the board of directors of any Subsidiary, “Cause” shall include a
termination of such directorship for “cause” as determined in accordance with the provisions of Section 141(k) of the Delaware General Corporation Law. In addition to the foregoing, if you are an employee or other service provider of
the Partnership at the time of your Termination of Service, then a termination by the Partnership for any act or omission by you that, if done (or not done) with respect to the Company or an Affiliate would be grounds for “Cause” hereunder
or in any applicable employment, consulting or similar agreement between you and the Partnership that is then in-effect, then such termination shall be deemed to be a Termination of Service for Cause for
purposes of this Agreement. 
 (d)    “Change of Control” shall mean the occurrence of any of the
following after the Grant Date: 
 (i)    any individual, entity, or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) acquires beneficial ownership (within the 

 
meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either (A) the then outstanding shares of Common Stock of the Company (the
“Outstanding Company Common Stock”) or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change of Control: (1) any acquisition directly from the Company or any Subsidiary or Affiliate, (2) any
acquisition by the Company or any Subsidiary or Affiliate, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, (4) any acquisition pursuant to
a transaction which complies with clauses (A) and (B) of Section d(iii) of this Glossary, below, or (5) any acquisition of additional securities by any Person who, as of the Grant Date, held 15% or more of either (x) the Outstanding
Company Common Stock or (y) the Outstanding Company Voting Securities; 
 (ii)    individuals who,
as of the Grant Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Grant Date whose
election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent
Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a person other than the Board; 

(iii)    consummation by the Company of a reorganization, merger, or consolidation, or sale or other
disposition of all or substantially all of the assets of the Company, or the acquisition of assets of another entity (a “Business Combination”), in each case, unless, following such Business Combination, (A) all or
substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% of the then outstanding shares of Common Stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity
resulting from such Business Combination (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries)
in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, and (B) at least a majority of the
members of the board of directors (or equivalent governing authority) of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board,
providing for such Business Combination. For the avoidance of doubt and notwithstanding anything in the foregoing to the contrary, a sale or other disposition of the Partnership or the Company’s interest in the Partnership shall not constitute
a sale or other disposition of all or substantially all of the assets of the Company or any other Change of Control for purposes of this Agreement; or 

 (iv)    approval by the stockholders of the Company of a
complete liquidation or dissolution of the Company. 
 (e)    “Code” shall mean The U.S. Internal
Revenue Code of 1986, as amended from time to time, and any successor thereto, the Treasury Regulations thereunder and other relevant interpretive guidance issued by the Internal Revenue Service or the Treasury Department. Reference to any specific
section of the Code shall be deemed to include such regulations and guidance, as well as any successor provision of the Code. 

(f)    “Common Stock” shall mean the Common Stock of the Company, $0.01 par value per share. 

(g)    “Disability” shall mean you have experienced a “permanent and total disability” within
the meaning of Code Section 22(e)(3). The determination of whether you have experienced a Disability shall be determined under procedures established by the Compensation Committee of the Board. Notwithstanding the foregoing, for a Cash Award
that constitutes “non-qualified deferred compensation” pursuant to Code Section 409A, the foregoing definition shall apply for purposes of vesting of such Cash Award, provided that for purposes
of payment of such Cash Award, such Cash Award shall not be paid until the earliest of: (A) your “disability” within the meaning of Code Section 409A(a)(2)(C)(i) or (ii), (B) your “separation from service” within the
meaning of Code Section 409A and (C) the date your Cash Award would otherwise be paid pursuant to the terms of this Agreement. 

(h)    “Driftwood” means Driftwood LNG LLC. 

(i)    “Driftwood EPC Contracts” means the Engineering, Procurement and Construction contracts, dated as
of November 10, 2017, between Driftwood and Bechtel Oil, Gas and Chemicals, Inc., each, as amended, restated, modified, extended or supplemented, or any successor contract or arrangement with respect to the engineering, procurement and
construction of the Driftwood Project (in whole or in part). 
 (j)    “Exchange Act” shall mean U.S.
Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

(k)    “Guaranteed Obligations” shall mean all present and future obligations and liabilities of the
Employer under this Agreement, including all money and liabilities of any nature from time to time due, owing or incurred by the Employer under this Agreement. 

(l)    “Notice to Proceed” shall mean a notice to proceed or any similar action or authorization issued
and delivered by Driftwood under a Driftwood EPC Contract to commence the performance of work on the applicable Phase of the Driftwood Project. 

(m)    “NTP Date” shall mean the date on which Notice to Proceed is issued for the applicable Phase. 

 (n)    “Release” means a general release of all claims of
any kind that you have or may have (including but not limited to contractual and statutory rights for unfair dismissal and unlawful discrimination arising out of your employment and/or its termination) against the Company and its Affiliates
(including the Employer) and their respective affiliates, officers, directors, employees, shareholders, agents and representatives, in a form satisfactory to the Employer. 

(o)    “Restrictive Covenants” means all confidentiality obligations and post-termination provisions and
restrictive covenants to which you are subject under your contract of employment or otherwise. 
 (p)    
“Subsidiary” shall mean a corporation, partnership, joint venture, limited liability company, limited liability partnership, or other entity in which the Company owns directly or indirectly, fifty percent (50%) or more of the voting
power or profit interests, or as to which the Company or one of its Affiliates serves as general or managing partner or in a similar capacity. 

(q)    “Termination of Service” means the termination of your employment or consultancy service with the
Company, the Employer or any of their Subsidiaries (or the Partnership, if applicable) for any reason (and whether such termination results from notice from you, the Company, the Employer, one of their Subsidiaries or the Partnership); provided,
however, that notwithstanding the foregoing, a Termination of Service will not be deemed to occur for purposes of this Agreement if you become an employee or other service provider of the Partnership immediately following a Termination of Service
with the Company, the Employer or any of their Subsidiaries (or if you become an employee or other service provider of the Company, the Employer or any of their Subsidiaries immediately following a Termination of Service with the Partnership), or if
your employment or other service with the Company, the Employer or any of their Subsidiaries is transferred, assigned or seconded to the Partnership (or if your employment or other service with the Partnership is transferred, assigned or seconded to
the Company, the Employer or any of their Subsidiaries), it being understood that in such cases, continuous employment or other service with the Company, the Employer, any of their Subsidiaries and/or the Partnership shall be treated as continuous
service with the Company for purposes of the Cash Award, and Termination of Service shall be deemed to occur upon the cessation of all employment or other service to the Company, the Employer, any of their Subsidiaries and the Partnership. 

(r)    “Termination Without Cause” shall mean a Termination of Service by the Company, the Employer or
any of their Subsidiaries (or the Partnership, if applicable) other than (i) for Cause or (ii) as a result of your death or Disability; provided, however, that a Termination of Service by you due to (A) a material diminution in your
base compensation, (B) a material diminution in your authorities, duties and responsibilities, or (C) a material change in the geographic location at which you must perform services, in each case, subject to delivery of written notice by
you to the applicable employer of the existence of one or more of the above conditions not later than sixty (60) days following the first occurrence thereof, and to the extent the employer fails to cure such condition or conditions within the
thirty (30) day period following its receipt of such written notice, will be treated as a Termination Without Cause. If you incur a Termination of Service by the Company, the Employer or any of their Subsidiaries (or the Partnership, if
applicable) after rejecting an offer of employment or other service with any 

 
entity for which such employment or other service would be credited as continued service with the Company or a Subsidiary for purposes of the vesting of the Cash Award, there will be no deemed
Termination Without Cause, provided, however, that such employment or other service is on terms and conditions that would not result in (x) a material diminution in your base compensation, (y) a material diminution in your authorities,
duties and responsibilities, or (z) a material change in the geographic location at which you must perform services.Exhibit 4.3

 

WILDHORSE RESOURCE DEVELOPMENT CORPORATION

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT is dated as of April 20, 2018 (the “Agreement”), by and among WILDHORSE RESOURCE DEVELOPMENT CORPORATION, a Delaware corporation (the “Company”), the subsidiaries of the Company named in Schedule I hereto (each individually, a “Guarantor” and collectively, the “Guarantors”), and the Initial Purchaser listed in the Purchase Agreement (defined below) (the “Initial Purchaser”).

 

The Company, the Guarantors and the Initial Purchaser are parties to the Purchase Agreement dated April 18, 2018 (the “Purchase Agreement”), which provides for the sale by the Company to the Initial Purchaser of $200,000,000 aggregate principal amount of the Company’s 6.875% Senior Notes due 2025 (including the unconditional guarantees thereof on an unsecured senior basis as to principal, premium, if any, and interest by the Guarantors, the “New Securities”).

 

The New Securities constitute “Additional Notes” (as such term is defined in the Indenture (defined below)) under the Indenture and will be issued pursuant to and in compliance with Sections 2.02, 2.13 and 4.09 thereof. The Company has previously issued $500,000,000 aggregate principal amount of 6.875% Senior Notes due 2025 (together with the related guarantees, the “Initial Securities”) under the Indenture. On November 20, 2017, substantially all of the then outstanding Initial Securities, which were unregistered, were exchanged for an equivalent principal amount of 6.875% Senior Notes due 2025, which were registered under the Securities Act (as defined below) (the “Registered Initial Securities”) pursuant to an exchange offer. Except as otherwise disclosed in the General Disclosure Package or the Offering Memorandum (as such terms are defined in the Purchase Agreement), the New Securities will have terms identical to the Initial Securities and will be treated as a single series of debt securities for all purposes under the Indenture.

 

As an inducement to the Initial Purchaser to enter into the Purchase Agreement, the Company has agreed to provide to the Initial Purchaser and its direct and indirect transferees the registration rights set forth in this Agreement. The execution and delivery of this Agreement is a condition to the Initial Purchaser’s obligations under the Purchase Agreement.

 

In consideration of the foregoing, the parties hereto agree as follows:

 

1.                                      Definitions. As used in this Agreement, the following terms shall have the following meanings:

 

“Additional Guarantor” shall mean any subsidiary of the Company that executes a Subsidiary Guarantee under the Indenture after the date of this Agreement.

 

“Agreement” shall have the meaning set forth in the preamble.

 

“Blackout Period” shall have the meaning set forth in Section 2(c) hereof.

 

 

“Business Day” shall mean any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed.

 

“Closing Date” shall mean the Closing Date as defined in the Purchase Agreement.

 

“Company” shall have the meaning set forth in the preamble.

 

“Consummate” shall mean the occurrence of (i) the filing and effectiveness under the Securities Act of the Exchange Offer Registration Statement relating to the Exchange Securities to be issued in the Exchange Offer, (ii) the maintenance of such Exchange Offer Registration Statement continuously effective and the keeping of the Exchange Offer open for a period not less than the minimum period required pursuant to Section 2(a) hereof, and (iii) the delivery by the Company to the Trustee under the Indenture of Exchange Securities in the same aggregate principal amount as the aggregate principal amount of Registrable Securities that were properly tendered by Holders thereof pursuant to the Exchange Offer.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

 

“Exchange Offer” shall mean the exchange offer by the Company and the Guarantors of Exchange Securities for Registrable Securities pursuant to Section 2(a) hereof.

 

“Exchange Offer Registration” shall mean a registration under the Securities Act effected pursuant to Section 2(a) hereof.

 

“Exchange Offer Registration Statement” shall mean an exchange offer registration statement on Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to such registration statement, in each case including the Prospectus contained therein, all exhibits thereto and any document incorporated by reference therein.

 

“Exchange Offer Registration Statement Suspension Period” shall have the meaning set forth in Section 2(a) hereof.

 

“Exchange Securities” shall mean senior notes issued by the Company and guaranteed by the Guarantors under the Indenture containing terms substantially identical to the New Securities (except that the Exchange Securities will not be subject to restrictions on transfer or to any increase in annual interest rate for failure to comply with this Agreement), and to be offered to Holders of New Securities in exchange for New Securities pursuant to the Exchange Offer.

 

“Free Writing Prospectus” means each free writing prospectus (as defined in Rule 405 under the Securities Act) prepared by or on behalf of the Company or used or referred to by the Company in connection with the sale of the New Securities or Exchange Securities.

 

“Guarantors” shall have the meaning set forth in the preamble and shall also include any Guarantor’s successors and any Additional Guarantors.

 

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“Holders” shall mean the Initial Purchaser, for so long as it owns any Registrable Securities, and each of its successors, assigns and direct and indirect transferees who become owners of Registrable Securities under the Indenture; provided that for purposes of Sections 4 and 5 of this Agreement, the term “Holders” shall include Participating Broker-Dealers.

 

“Indemnified Person” shall have the meaning set forth in Section 5(c) hereof.

 

“Indemnifying Person” shall have the meaning set forth in Section 5(c) hereof.

 

“Indenture” shall mean the Indenture relating to the Securities dated as of February 1, 2017, among the Company, the Guarantors and U.S. Bank National Association, as trustee, as supplemented by that certain First Supplemental Indenture, dated as of June 30, 2017, and Second Supplemental Indenture, dated January 8, 2018, and as the same may be amended or supplemented from time to time in accordance with the terms thereof.

 

“Initial Purchaser” shall have the meaning set forth in the preamble.

 

“Initial Securities” shall have the meaning set forth in the preamble.

 

“Inspector” shall have the meaning set forth in Section 3(m) hereof.

 

“Issuer Information” shall have the meaning set forth in Section 5(a) hereof.

 

“Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of outstanding Registrable Securities; provided that whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, Registrable Securities owned directly or indirectly by the Company or any of its affiliates shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage or amount; and provided, further, that if the Company shall issue any additional Securities under the Indenture prior to the consummation of the Exchange Offer, or, if applicable, the effectiveness of any Shelf Registration Statement, such additional Securities and Registrable Securities to which this Agreement relates shall be treated together as one class for purposes of determining whether the consent or approval of Holders of a specified percentage of Registrable Securities has been obtained.

 

“New Securities” shall have the meaning set forth in the preamble.

 

“Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

 

“Person” shall mean an individual, partnership, limited liability company, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof.

 

“Prospectus” shall mean the prospectus included in, or, pursuant to the rules and regulations of the Securities Act, deemed a part of, a Registration Statement, including any preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus supplement, including a prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other

 

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amendments and supplements to such prospectus, and in each case including any document incorporated by reference therein.

 

“Purchase Agreement” shall have the meaning set forth in the preamble.

 

“Registered Initial Securities” shall have the meaning set forth in the preamble.

 

“Registrable Securities” shall mean the New Securities; provided that a New Security shall cease to be a Registrable Security on the earliest of (i) when a Registration Statement with respect to such New Security has been declared effective under the Securities Act and such New Security has been exchanged or disposed of pursuant to such Registration Statement or (ii) when such New Security ceases to be outstanding.

 

“Registration Expenses” shall mean any and all expenses incident to performance of or compliance by the Company and the Guarantors with this Agreement, including, without limitation, (i) all SEC, stock exchange or Financial Industry Regulatory Authority registration and filing fees (and, if applicable, the fees and expenses of any “qualified independent underwriter” and its counsel that may be required by the rules and regulations of the Financial Industry Regulatory Authority), (ii) all fees and expenses incurred in connection with compliance with state securities or blue sky laws (including reasonable fees and disbursements of counsel for any Underwriters or Holders in connection with blue sky qualification of any Exchange Securities or Registrable Securities), (iii) all expenses of any Persons in preparing or assisting in preparing, word processing, printing and distributing any Registration Statement, any Prospectus and any amendments or supplements thereto, any underwriting agreements, securities sales agreements or other similar agreements and any other documents relating to the performance of and compliance with this Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating to the qualification of the Indenture under applicable securities laws, (vi) the fees and disbursements of the Trustee and its counsel, (vii) the fees and disbursements of counsel for the Company and the Guarantors and, in the case of a Shelf Registration Statement, the reasonable fees and disbursements of one counsel for the Holders (which counsel shall be selected by the Majority Holders and which counsel may also be counsel for the Initial Purchaser) and (viii) the fees and disbursements of the independent public accountants of the Company, including the expenses of any special audits or “comfort” letters required by or incident to the performance of and compliance with this Agreement, but excluding fees and expenses of counsel to the Underwriters (other than fees and expenses set forth in clause (ii) above) or the Holders and underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Securities by a Holder.

 

“Registration Statement” shall mean any registration statement filed under the Securities Act of the Company and the Guarantors that covers any of the Exchange Securities or Registrable Securities pursuant to the provisions of this Agreement and all amendments and supplements to any such registration statement, including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“SEC” shall mean the Securities and Exchange Commission.

 

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“Securities” shall mean the Company’s 6.875% Senior Notes due 2025 issued under the Indenture.

 

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

 

“Shelf Additional Interest Date” shall have the meaning set forth in Section 2(e) hereof.

 

“Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

 

“Shelf Filing Deadline” shall have the meaning set forth in Section 2(b) hereof.

 

“Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

 

“Shelf Registration Statement” shall mean a “shelf” registration statement of the Company and the Guarantors that covers all or a portion of the Registrable Securities (but no other securities unless approved by a majority of the Holders whose Registrable Securities are to be covered by such Shelf Registration Statement) on an appropriate form under Rule 415 under the Securities Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“Subsidiary Guarantees” shall mean the guarantees of the New Securities and the Exchange Securities by the Guarantors under the Indenture.

 

“Target Registration Date” shall have the meaning set forth in Section 2(e) hereof.

 

“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to time.

 

“Trustee” shall mean the trustee with respect to the Securities under the Indenture.

 

“Underwriters” shall have the meaning set forth in Section 3 hereof.

 

“Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an Underwriter for reoffering to the public.

 

2.                                      Registration Under the Securities Act. (a) To the extent not prohibited by any applicable law or applicable interpretations of the staff of the SEC, the Company shall use its commercially reasonable efforts to (i) cause to be filed an Exchange Offer Registration Statement covering an offer to the Holders to exchange all the Registrable Securities for Exchange Securities, (ii) Consummate the Exchange Offer no later than 365 calendar days after the Closing Date (or, if such 365th day is not a Business Day, the next succeeding Business Day) and (iii) have such Registration Statement remain effective until the earlier of (A) 180 days after the Exchange Offer Registration Statement is declared effective and (B) the date on which a Participating Broker-Dealer is no longer required to deliver a prospectus in connection with market-making or other trading activities; provided, that the Company may for a period (“Exchange Offer Registration Statement Suspension Period”) of up to 45 days in any three

 

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months period, not to exceed 90 days in any calendar year, determine that the Exchange Offer Registration Statement is not usable under the circumstances relating to corporate developments, public filings with the SEC and similar events, and suspend the use of the prospectus that is part of the Exchange Offer Registration Statement. The Company and the Guarantors shall commence the Exchange Offer promptly after the Exchange Offer Registration Statement is declared effective by the SEC.

 

The Company and the Guarantors shall commence the Exchange Offer by mailing the related Prospectus, appropriate letters of transmittal and other accompanying documents to each Holder stating, in addition to such other disclosures as are required by applicable law,

 

(i)                                     that the Exchange Offer is being made pursuant to this Agreement and that all Registrable Securities validly tendered and not properly withdrawn will be accepted for exchange;

 

(ii)                                  the dates of acceptance for exchange (which shall be a period of at least 20 Business Days from the date such notice is mailed) (the “Exchange Dates”);

 

(iii)                               that any Registrable Security not tendered will remain outstanding and continue to accrue interest but will not retain any rights under this Agreement, except as otherwise specified herein;

 

(iv)                              that any Holder electing to have a Registrable Security exchanged pursuant to the Exchange Offer will be required to (A) surrender such Registrable Security, together with the appropriate letters of transmittal, to the institution and at the address and in the manner specified in the notice, or (B) effect such exchange otherwise in compliance with the applicable procedures of the depositary for such Registrable Security, in each case, prior to the close of business on the last Exchange Date; and

 

(v)                                 that any Holder will be entitled to withdraw its election, not later than the close of business on the last Exchange Date, by (A) sending to the institution and at the address specified in the notice, a telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the principal amount of Registrable Securities delivered for exchange and a statement that such Holder is withdrawing its election to have such New Securities exchanged or (B) effecting such withdrawal in compliance with the applicable procedures of the depositary for the Registrable Securities.

 

As a condition to participating in the Exchange Offer, a Holder will be required to represent to the Company and the Guarantors that (i) any Exchange Securities to be received by it will be acquired in the ordinary course of its business, (ii) such Holder has no arrangement or understanding with any Person to participate in the distribution (within the meaning of the Securities Act) of the Exchange Securities in violation of the provisions of the Securities Act, (iii) such Holder is not an “affiliate” (within the meaning of Rule 405 under the Securities Act) of the Company or any Guarantor and (iv) if such Holder is a broker-dealer that will receive Exchange Securities for its own account in exchange for Registrable Securities that were acquired as a result of market-making or other trading activities, then such Holder will deliver a

 

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Prospectus (or, to the extent permitted by law, make available a Prospectus to purchasers) in connection with any resale of such Exchange Securities.

 

As soon as practicable after the last Exchange Date, the Company and the Guarantors shall:

 

(i)                                     accept for exchange Registrable Securities or portions thereof validly tendered and not properly withdrawn pursuant to the Exchange Offer; and

 

(ii)                                  deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities or portions thereof so accepted for exchange by the Company and issue, and cause the Trustee to promptly authenticate and deliver to each Holder, Exchange Securities equal in principal amount to the principal amount of the Registrable Securities tendered by such Holder.

 

The Company and the Guarantors shall use their commercially reasonable efforts to Consummate the Exchange Offer as provided above and shall comply with the applicable requirements of the Securities Act, the Exchange Act and other applicable laws and regulations in connection with the Exchange Offer. The Exchange Offer shall not be subject to any conditions, other than that the Exchange Offer does not violate any applicable law or applicable interpretations of the staff of the SEC.

 

(b)                                 In the event that (i) the Company and the Guarantors determine that the Exchange Offer Registration provided for in Section 2(a) above is not available or may not be completed as soon as practicable after the last Exchange Date because it would violate any applicable law or applicable interpretations of the staff of the SEC, (ii) the Exchange Offer is not for any other reason Consummated within 365 calendar days following the Closing Date (unless an Exchange Offer Registration Statement has been filed within 270 calendar days of the Closing Date and has not yet been declared effective by the SEC, other than as result of the fault of the Company or the Guarantors, and as a result of SEC review of data or information included or incorporated by reference in such Exchange Offer Registration Statement that would also be included or incorporated in a Shelf Registration Statement, the Company and the Guarantors reasonably believe that a Shelf Registration Statement would not become effective prior to consummation of the Exchange Offer), or (iii) with respect to any Holder that is not an affiliate of the Company or Guarantors (A) such Holder is prohibited by applicable law or SEC policy from participating in the Exchange Offer, (B) such Holder may not resell the Exchange Securities acquired by it in the Exchange Offer to the public without delivering a prospectus and that the Prospectus contained in the Exchange Offer Registration Statement is not appropriate or available for such resales by such Holder, or (C) such Holder is a Participating Broker-Dealer and holds Registrable Securities acquired directly from the Company or one of its affiliates, then, upon such Holder’s written request within six months of the first to occur of the Exchange Date or the Target Registration Date, the Company and the Guarantors shall (1) if permitted by law and SEC policy, cause the Registrable Securities of such Holder to be reissued in a form that does not bear any restrictive legends relating to the Securities Act and to have the same CUSIP number as the Registered Initial Securities (unless it is not possible to obtain the same CUSIP number following the commercially reasonable efforts of the Company to do so) so that such Registrable Securities may be sold to the public in accordance with Rule 144 under the Securities Act by a person that is not an affiliate of the Company or any of the Guarantors where no conditions of Rule 144 are

 

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then applicable (other than the holding period requirement in paragraph (d)(1)(ii) of Rule 144 so long as such holding period requirement is satisfied at such time of such reissue) and (2) in the event the Company cannot or does not comply with the provisions of the foregoing clause within 20 Business Days of the later of (I) the date of receipt by the Company of such notice of such Holder and (II) the first to occur of the Exchange Date and the Target Registration Date (such later date being a “Shelf Filing Deadline”), then the Company and the Guarantors shall use their commercially reasonable efforts to cause to be filed as soon as practicable after such determination date, a Shelf Registration Statement providing for the sale of all the Registrable Securities by the Holders thereof and to have such Shelf Registration Statement become effective.

 

In the event that the Company and the Guarantors are required to file a Shelf Registration Statement pursuant to clause (iii) of the preceding sentence, the Company and the Guarantors shall use their commercially reasonable efforts to file and become effective both an Exchange Offer Registration Statement pursuant to Section 2(a) with respect to all Registrable Securities and a Shelf Registration Statement (which may be a combined Registration Statement with the Exchange Offer Registration Statement) with respect to offers and sales of Registrable Securities held by the Initial Purchaser or such Holder after Consummation of the Exchange Offer.

 

The Company and the Guarantors agree to use their commercially reasonable efforts (i) to cause the registration statement to become effective by the 90th day after the Shelf Filing Deadline and (ii) to keep the Shelf Registration Statement continuously effective until the first anniversary of the Closing Date or such shorter period that will terminate when all the Registrable Securities covered by the Shelf Registration Statement have been sold pursuant to the Shelf Registration Statement (the “Shelf Effectiveness Period”). The Company and the Guarantors further agree to supplement or amend the Shelf Registration Statement and the related Prospectus if required by the rules, regulations or instructions applicable to the registration form used by the Company for such Shelf Registration Statement or by the Securities Act or by any other rules and regulations thereunder or if reasonably requested by a Holder of Registrable Securities with respect to information relating to such Holder, and to use their commercially reasonable efforts to cause any such amendment to become effective and such Shelf Registration Statement and Prospectus to become usable as soon as thereafter practicable. The Company and the Guarantors agree to furnish to the Holders of Registrable Securities copies of any such supplement or amendment promptly after its being used or filed with the SEC.

 

(c)                                  Each of the Company and the Guarantors shall be deemed not to have used commercially reasonable efforts to keep the Shelf Registration Statement effective during the requisite period if any of the Company or the Guarantors voluntarily takes any action that would result in Holders of Registrable Securities covered thereby not being able to offer and sell such Registrable Securities during that period, unless (X) such action is required by applicable law or SEC policy; or (Y) such action is taken by any of the Company or Guarantors in good faith and for valid business reasons (not including avoidance of the Company or the Guarantors obligations hereunder) including, but not limited to, the acquisition or divestiture of assets (the period during which the Shelf Registration Statement is not available under clauses (X) or (Y) above, the “Blackout Period”). The Blackout Period shall not exceed 45 days in any three-month period or 90 days in any twelve-month period.

 

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(d)                                 The Company and the Guarantors shall pay all Registration Expenses in connection with any registration pursuant to Section 2(a) or Section 2(b) hereof. Each Holder shall pay all underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

 

(e)                                  An Exchange Offer Registration Statement pursuant to Section 2(a) hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof will not be deemed to have become effective unless it has been declared effective by the SEC.

 

In the event that the Exchange Offer is not Consummated on or prior to the 365th calendar day after the Closing Date (or, if such 365th day is not a Business Day, the next succeeding Business Day) (the “Target Registration Date”), the interest rate on the New Securities will be increased by (i) 0.25% per annum for the first 90-day period payable commencing from one day after the Target Registration Date, and (ii) an additional 0.25% per annum following such 90-day period, in each case until the Exchange Offer is Consummated, such that the maximum rate of additional interest would be 0.50% per annum, at which time such additional interest will cease to accrue and the interest rate on the New Securities will revert to the original rate.

 

In the event that the Company is obligated to file a Shelf Registration Statement pursuant to Section 2(b), and the Shelf Registration Statement required to be filed thereby does not become effective prior to the 90th day after the obligation to file such Shelf Registration arises pursuant to Section 2(b) (or if such 90th day is not a Business Day, the next succeeding Business Day) (such later date, the “Shelf Additional Interest Date”), the interest rate on the New Securities will be increased by (i) 0.25% per annum for the first 90-day period payable commencing from one day after the Shelf Additional Interest Date, and (ii) an additional 0.25% per annum following such 90-day period, in each case until the Shelf Registration Statement becomes effective, such that the maximum rate of additional interest would be 0.50% per annum, at which time such additional interest will cease to accrue and the interest rate on the New Securities will revert to the original rate.

 

If the Shelf Registration Statement, if required hereby, has become effective and thereafter either ceases to be effective or the Prospectus contained therein ceases to be usable, in each case whether or not permitted by this Agreement, at any time during the Shelf Effectiveness Period, and such failure to remain effective or usable exists for more than 30 days (whether or not consecutive) in any 12-month period, excluding any Blackout Period, then the interest rate on the New Securities will be increased by (i) 0.25% per annum for the first 90-day period commencing on the 31st day in such 12-month period and (ii) an additional 0.25% per annum following such 90-day period and ending on such date that the Shelf Registration Statement has again become effective or the Prospectus again becomes usable, such that the maximum rate of additional interest would be 0.50% per annum of additional interest.

 

In no event will additional interest accrue under more than one of the foregoing three paragraphs at any one time.

 

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(f)                                   Any additional interest paid in accordance with this Section 2 shall be liquidated damages and shall be the sole and exclusive remedy available to Holders due to a failure by the Company to comply with their obligations under Section 2(a) and Section 2(b).

 

3.                                      Registration Procedures. In connection with their obligations pursuant to Section 2(a) and Section 2(b) hereof, the Company and the Guarantors shall as expeditiously as possible:

 

(a)                                 prepare and file with the SEC a Registration Statement on the appropriate form under the Securities Act, which form (x) shall be selected by the Company and the Guarantors, (y) shall, in the case of a Shelf Registration, be available for the sale of the Registrable Securities by the Holders thereof and (z) shall comply as to form in all material respects with the requirements of the applicable form and include all financial statements required by the SEC to be filed therewith; and use their commercially reasonable efforts to cause such Registration Statement to become effective and remain effective for the applicable period in accordance with Section 2 hereof, subject to the provisions applicable to Exchange Offer Registration Statement Suspension Periods and Blackout Periods and the other provisions of this Section 3;

 

(b)                                 prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary to keep such Registration Statement effective for the applicable period in accordance with Section 2 hereof and cause each Prospectus to be supplemented by any required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424 under the Securities Act; and keep each Prospectus current during the period described in Section 4(3) of and Rule 174 under the Securities Act that is applicable to transactions by brokers or dealers with respect to the Registrable Securities or Exchange Securities;

 

(c)                                  in the case of a Shelf Registration, furnish to each Holder of Registrable Securities, to counsel for the Initial Purchaser, to counsel for such Holders and to each Underwriter of an Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each Prospectus, including each preliminary prospectus, and any amendment or supplement thereto, in order to facilitate the sale or other disposition of the Registrable Securities thereunder; and the Company consents to the use of such Prospectus and any amendment or supplement thereto in accordance with applicable law by each of the Holders of Registrable Securities and any such Underwriters in connection with the offering and sale of the Registrable Securities covered by and in the manner described in such Prospectus, preliminary prospectus or any amendment or supplement thereto in accordance with applicable law;

 

(d)                                 use their commercially reasonable efforts to register or qualify the Registrable Securities under all applicable state securities or blue sky laws of such jurisdictions as any Holder of Registrable Securities covered by a Registration Statement shall reasonably request in writing by the time the applicable Registration Statement is declared effective by the SEC; cooperate with the Holders in connection with any filings required to be made with the Financial Industry Regulatory Authority; and do any and all other acts and things that may be reasonably necessary or advisable to enable each Holder to complete the disposition in each such jurisdiction of the Registrable Securities owned by such Holder; provided that neither the Company nor any Guarantor shall be required to (i) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be

 

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required to so qualify, (ii) file any general consent to service of process in any such jurisdiction or (iii) subject itself to taxation in any such jurisdiction if it is not so subject;

 

(e)                                  in the case of a Shelf Registration, notify each Holder of Registrable Securities, counsel for such Holders and counsel for the Initial Purchaser promptly and, if requested by any such Holder or counsel, confirm such advice in writing (i) when a Registration Statement has become effective and when any post-effective amendment thereto has been filed and becomes effective, (ii) of any request by the SEC or any state securities authority for amendments and supplements to a Registration Statement and Prospectus or for additional information after the Registration Statement has become effective, (iii) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, including the receipt by the Company of any notice of objection of the SEC to the use of a Shelf Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act, (iv) if, between the applicable effective date of a Shelf Registration Statement and the closing of any sale of Registrable Securities covered thereby, the representations and warranties of the Company or any Guarantor contained in the Purchase Agreement cease to be true and correct in all material respects or if the Company or any Guarantor receives any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose and (v) of the happening of any event during the period a Shelf Registration Statement is effective that makes any statement made in such Registration Statement or the related Prospectus untrue in any material respect or that requires the making of any changes in such Registration Statement or Prospectus in order to make the statements therein not misleading;

 

(f)                                   use their commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement or, in the case of a Shelf Registration, the resolution of any objection of the SEC pursuant to Rule 401(g)(2), including by filing an amendment to such Shelf Registration Statement on the proper form, at the earliest possible moment;

 

(g)                                  in the case of a Shelf Registration, furnish to each Holder of Registrable Securities, without charge, at least one conformed copy of each Registration Statement and any post-effective amendment thereto (without any documents incorporated therein by reference or exhibits thereto, unless requested); provided, however, that any such document available on the SEC’s EDGAR database shall satisfy any such obligation;

 

(h)                                 in the case of a Shelf Registration, cooperate with the selling Holders of Registrable Securities to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any restrictive legends and enable such Registrable Securities to be issued in such denominations and registered in such names (consistent with the provisions of the Indenture) as the selling Holders may reasonably request at least one Business Day prior to the closing of any sale of Registrable Securities;

 

(i)                                     in the case of a Shelf Registration, upon the occurrence of any event contemplated by Section 3(e)(v) hereof, use their commercially reasonable efforts to prepare and file with the SEC a supplement or post-effective amendment to such Shelf Registration Statement or the

 

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related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered (or, to the extent permitted by law, made available) to purchasers of the Registrable Securities, such Prospectus will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and the Company and the Guarantors shall notify the Holders of Registrable Securities to suspend use of the Prospectus as promptly as practicable after the occurrence of such an event, and such Holders hereby agree to suspend use of the Prospectus until the Company and the Guarantors have amended or supplemented the Prospectus to correct such misstatement or omission, subject to the provisions applicable to Exchange Offer Registration Statement Suspension Periods and Blackout Periods and the other provisions of this Section 3;

 

(j)                                    a reasonable time prior to the filing of any Registration Statement, any Prospectus, any amendment to a Registration Statement or amendment or supplement to a Prospectus or of any document that is to be incorporated by reference into a Registration Statement or a Prospectus after initial filing of a Registration Statement, provide copies of such document to the Initial Purchaser and its counsel (and, in the case of a Shelf Registration Statement, to the Holders of Registrable Securities and their counsel) and make such of the representatives of the Company and the Guarantors as shall be reasonably requested by the Initial Purchaser and its counsel (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities and their counsel) available for discussion of such document; and the Company and the Guarantors shall not, at any time after initial filing of a Registration Statement, use or file any Prospectus, any amendment of or supplement to a Registration Statement or a Prospectus, or any document that is to be incorporated by reference into a Registration Statement or a Prospectus, of which the Initial Purchaser and its counsel (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities and their counsel) shall not have previously been advised and furnished a copy or to which the Initial Purchaser or its counsel (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities or their counsel) shall reasonably object; provided, that this clause shall not apply to any filing by the Company of any Annual Report on Form 10-K, Quarterly Report on Form 10-Q or Current Report on Form 8-K with respect to matters unrelated to the New Securities and the offering or exchange therefor;

 

(k)                                 obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the case may be, not later than the effective date of a Registration Statement, which shall be the same CUSIP number as the Registered Initial Securities, unless it is not possible to obtain the same CUSIP number following the commercially reasonable efforts of the Company to do so;

 

(l)                                     cause the Indenture to remain qualified under the Trust Indenture Act in connection with the registration of the Exchange Securities or Registrable Securities, as the case may be; cooperate with the Trustee and the Holders to effect such changes to the Indenture as may be required for the Indenture to remain so qualified in accordance with the terms of the Trust Indenture Act; and execute, and use their commercially reasonable efforts to cause the Trustee to execute, all documents as may be required to effect such changes and all other forms and documents required to be filed with the SEC to enable the Indenture to remain so qualified in a timely manner;

 

12

 

(m)                             in the case of a Shelf Registration, make available for inspection by a representative of the Holders of the Registrable Securities (an “Inspector”), any Underwriter participating in any disposition pursuant to such Shelf Registration Statement, and attorneys and accountants designated by the Holders, at reasonable times and in a reasonable manner, all pertinent financial and other records, documents and properties of the Company and the Guarantors, and cause the respective officers, directors and employees of the Company and the Guarantors to supply all information reasonably requested by any such Inspector, Underwriter, attorney or accountant in connection with a Shelf Registration Statement; provided that if any such information is identified by the Company as being confidential or proprietary, each Person receiving such information shall take such actions as are reasonably necessary to protect the confidentiality of such information to the extent such action is otherwise not inconsistent with, an impairment of or in derogation of the rights and interests of any Inspector, Holder or Underwriter;

 

(n)                                 in the case of a Shelf Registration, use their commercially reasonable efforts to cause all Registrable Securities to be listed on any securities exchange or any automated quotation system on which similar securities issued or guaranteed by any Company or any Guarantor are then listed if requested by the Majority Holders, to the extent such Registrable Securities satisfy applicable listing requirements;

 

(o)                                 request that each Holder of New Securities to be sold pursuant to the Registration Statement to furnish the Company such information regarding the Holder and the distribution of the New Securities as the Company may from time to time reasonably require for inclusion in the Registration Statement, and the Company may exclude from such registration the New Securities of any Holder that unreasonably fails to furnish such information within a reasonable time after receiving such request;

 

(p)                                 in connection with an Underwritten Offering, if requested by any selling Holders or the Underwriters, if any, promptly incorporate in any Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such selling Holders and Underwriters, if any, may reasonably request to have included therein, including, without limitation, information relating to the “Plan of Distribution” of the Registrable Securities, information with respect to the principal amount of Registrable Securities being sold to such Underwriters, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; and make all required filings of such prospectus supplement or post-effective amendment as soon as practicable after the Company is notified of the matters to be incorporated in such prospectus supplement or post-effective amendment, subject to the provisions applicable to Exchange Offer Registration Statement Suspension Periods and Blackout Periods and the other provisions of this Section 3;

 

(q)                                 otherwise use commercially reasonable efforts to comply in all material respects with all applicable rules and regulations of the SEC, and make generally available to its security holders, as soon as reasonably practicable, a consolidated earnings statement meeting the requirements of Rule 158 under the Securities Act (which need not be audited) for the 12-month period (i) commencing at the end of any fiscal quarter in which Registrable Securities are sold to underwriters in a firm commitment or best efforts Underwritten Offering or (ii) if not sold to

 

13

 

Underwriters in such an offering, beginning with the first month of the Company’s first fiscal quarter commencing after the effective date of the Registration Statement; and

 

(r)                                    in the case of a Shelf Registration, enter into such customary agreements and take all such other actions in connection therewith (including those requested by the Holders of a majority in principal amount of the Registrable Securities being sold) in order to expedite or facilitate the disposition of such Registrable Securities including, but not limited to, an Underwritten Offering and in such connection, (i) to the extent possible, make such representations and warranties to the Holders and any Underwriters of such Registrable Securities with respect to the business of the Company and its subsidiaries, the Registration Statement, Prospectus and documents incorporated by reference or deemed incorporated by reference, if any, in each case, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings and confirm the same if and when requested, (ii) obtain opinions of counsel to the Company (which counsel and opinions, in form, scope and substance, shall be reasonably satisfactory to the Holders and such Underwriters and their respective counsel) addressed to each selling Holder (to the extent such Holder has advised the Company that such Holder may have a “due diligence” defense under Section 11 of the Securities Act) and Underwriter of Registrable Securities, covering the matters customarily covered in opinions requested in underwritten offerings, (iii) obtain “comfort” letters from the independent certified public accountants of the Company (and, if necessary, any other certified public accountant of any subsidiary of the Company or any Guarantor, or of any business acquired by the Company or any Guarantor for which financial statements and financial data are or are required to be included in the Registration Statement) addressed to each selling Holder (to the extent permitted by applicable professional standards) and Underwriter of Registrable Securities, such letters to be in customary form and covering matters of the type customarily covered in “comfort” letters in connection with underwritten offerings and (iv) deliver such documents and certificates as may be reasonably requested by the Holders of a majority in principal amount of the Registrable Securities being sold or the Underwriters, and which are customarily delivered in underwritten offerings, to evidence the continued validity of the representations and warranties of the Company made pursuant to clause (i) above and to evidence compliance with any customary conditions contained in an underwriting agreement.

 

In the case of a Shelf Registration Statement, the Company may require each Holder of Registrable Securities to furnish to the Company such information regarding such Holder and the proposed disposition by such Holder of such Registrable Securities as the Company may from time to time reasonably request in writing.

 

Each Holder of Registrable Securities agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(e)(v) hereof or any Exchange Offer Registration Statement Suspension Period or any Blackout Period, such Holder will forthwith discontinue disposition of Registrable Securities pursuant to a Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 3(i) hereof or until it is advised in writing by the Company that use of the Prospectus may be resumed and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus and, if so directed by the Company, such Holder will deliver to the Company (at the Company’s expense) all copies in its possession,

 

14

 

other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Registrable Securities that is current at the time of receipt of such notice.

 

If the Company shall give any such notice to suspend the disposition of Registrable Securities pursuant to a Registration Statement, the Company shall extend the period during which the Registration Statement shall be maintained effective pursuant to this Agreement by the number of days during the period from and including the date of the giving of such notice to and including the date when the Holders shall have received copies of the supplemented or amended Prospectus necessary to resume such dispositions. The Company may give any such notice so long as there are no more than 90 days during any 365-day period in which such suspensions are in effect.

 

The Holders of Registrable Securities covered by a Shelf Registration Statement who desire to do so may sell such Registrable Securities in an Underwritten Offering. In any such Underwritten Offering, the investment bank or investment banks and manager or managers (the “Underwriters”) that will administer the offering will be selected by the Majority Holders of the Registrable Securities included in such offering; provided that such selections shall be subject to the approval of the Company, which approval shall not unreasonably be withheld.

 

4.                                      Participation of Broker-Dealers in Exchange Offer. (a) The staff of the SEC has taken the position that any broker-dealer that receives Exchange Securities for its own account in the Exchange Offer in exchange for New Securities that were acquired by such broker-dealer as a result of market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed to be an “underwriter” within the meaning of the Securities Act and must deliver a prospectus meeting the requirements of the Securities Act in connection with any resale of such Exchange Securities.

 

The Company understands that it is the staff of the SEC’s position that if the Prospectus contained in the Exchange Offer Registration Statement includes a plan of distribution containing a statement to the above effect and the means by which Participating Broker-Dealers may resell the Exchange Securities, without naming the Participating Broker-Dealers (or, to the extent permitted by law, made available to purchasers) or specifying the amount of Exchange Securities owned by them, such Prospectus may be delivered by Participating Broker-Dealers to satisfy their prospectus delivery obligation under the Securities Act in connection with resales of Exchange Securities for their own accounts, so long as the Prospectus otherwise meets the requirements of the Securities Act.

 

(b)                                 In light of the above, and notwithstanding the other provisions of this Agreement, the Company agrees to use its commercially reasonable efforts to amend or supplement the Prospectus contained in the Exchange Offer Registration Statement, as would otherwise be contemplated by Section 3(i), for a period of up to 180 days after the last Exchange Date (as such period may be extended pursuant to the penultimate paragraph of Section 3 of this Agreement), if requested by the Initial Purchaser or by one or more Participating Broker-Dealers, in order to expedite or facilitate the disposition of any Exchange Securities by Participating Broker-Dealers consistent with the positions of the staff of the SEC recited in Section 4(a) above. The Company further agrees that Participating Broker-Dealers shall be authorized to deliver such Prospectus

 

15

 

(or, to the extent permitted by law, make available) during such period in connection with the resales contemplated by this Section 4.

 

(c)                                  The Initial Purchaser shall have no liability to the Company, any Guarantor or any Holder with respect to any request that they may make pursuant to Section 4(b) above.

 

5.                                      Indemnification and Contribution. (a) The Company and each Guarantor, jointly and severally, agrees to indemnify and hold harmless the Initial Purchaser and each Holder, their respective affiliates, directors and officers and each Person, if any, who controls an Initial Purchaser or any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are based upon, (1) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or any Prospectus or any omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading, or (2) any untrue statement or alleged untrue statement of a material fact contained in any Prospectus, any Free Writing Prospectus used in violation of this Agreement or any “issuer information” (“Issuer Information”) filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or any omission or alleged omission to state therein a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading, in each case, except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to the Initial Purchaser or any Holder furnished to the Company in writing by the Initial Purchaser or any selling Holder expressly for use therein.

 

(b)                                 Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company, the Guarantors, the Initial Purchaser and the other selling Holders, their respective affiliates, the directors of the Company, each officer of the Company who signed the Registration Statement and each Person, if any, who controls the Company, the Guarantors, the Initial Purchaser and any other selling Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to such Holder furnished to the Company in writing by or on behalf of such Holder expressly for use in any Registration Statement and any Prospectus.

 

(c)                                  If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any Person in respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified Person”) shall promptly notify the Person against whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have under this Section 5 except to the extent that it has been materially prejudiced (through the forfeiture of substantive

 

16

 

rights or defenses) by such failure; and provided, further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise than under this Section 5. If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others entitled to indemnification pursuant to this Section 5 that the Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding, as incurred. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be reimbursed as they are incurred. Any such separate firm (x) for the Initial Purchaser, its affiliates, directors and officers and any control Persons of the Initial Purchaser shall be designated in writing by the Initial Purchaser, (y) for any Holder, its affiliates, directors and officers and any control Persons of such Holder shall be designated in writing by the Majority Holders and (z) in all other cases shall be designated in writing by the Company. The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding effected without its written consent if (1) such settlement is entered into more than 30 days after receipt by the Indemnifying Person of such request and (2) the Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such request prior to the date of such settlement. No Indemnifying Person shall, without the written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (A) includes an unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.

 

(d)                                 If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying

 

17

 

such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors from the offering of the New Securities and the Exchange Securities, on the one hand, and by the Holders from receiving New Securities or Exchange Securities registered under the Securities Act, on the other hand, or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) but also the relative fault of the Company and the Guarantors on the one hand and the Holders on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative fault of the Company and the Guarantors on the one hand and the Holders on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and the Guarantors or by the Holders and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

(e)                                  The Company, the Guarantors and the Holders agree that it would not be just and equitable if contribution pursuant to this Section 5 were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in paragraph (d) above. The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in connection with any such action or claim. Notwithstanding the provisions of this Section 5, in no event shall a Holder be required to contribute any amount in excess of the amount by which the total price at which the New Securities or Exchange Securities sold by such Holder exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute pursuant to this Section 5 are several and not joint.

 

(f)                                   The remedies provided for in this Section 5 are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

 

(g)                                  The indemnity and contribution provisions contained in this Section 5 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of the Initial Purchaser or any Holder, their respective affiliates or any Person controlling any Initial Purchaser or any Holder, or by or on behalf of the Company, their respective affiliates or the officers or directors of or any Person controlling the Company, (iii) acceptance of any of the Exchange Securities and (iv) any sale of Registrable Securities pursuant to a Shelf Registration Statement.

 

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6.                                      General.

 

(a)                                 Rule 144A. Each of the Company and the Guarantors hereby agrees with each Holder, for so long as any Registrable Securities remain outstanding, if the Company is no longer required to file reports under the Exchange Act, to make available upon request to any Holder or beneficial owner of Registrable Securities in connection with any sale thereof and any prospective purchaser of such Registrable Securities from such Holder or beneficial owner, the information required by Rule 144A(d)(4) under the Securities Act in order to permit resales of such Registrable Securities pursuant to Rule 144A under the Securities Act.

 

(b)                                 Adjustments Affecting the New Securities. The Company will not take any action, or permit any change to occur, with respect to the New Securities that would materially and adversely affect the ability of the Holders to Consummate any Exchange Offer.

 

(c)                                  No Inconsistent Agreements. The Company and the Guarantors have not as of the date hereof entered into, nor shall it on or after the date of this Agreement enter into, any agreement with respect to its securities that is inconsistent with the rights granted to the Holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof.

 

(d)                                 Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless the Company has obtained the written consent of Holders of at least a majority in aggregate principal amount of the outstanding Registrable Securities affected by such amendment, modification, supplement, waiver or consent; provided that no amendment, modification, supplement, waiver or consent to any departure from the provisions of this Section 6(d) or Section 5 hereof shall be effective as against any Holder of Registrable Securities unless consented to in writing by such Holder. Notwithstanding the foregoing, a waiver or consent to departure from the provisions hereof that relates exclusively to the rights of Holders whose securities are being tendered pursuant to the Exchange Offer and that does not affect directly or indirectly the rights of other Holders whose securities are not being tendered pursuant to such Exchange Offer may be given by the Holders of a majority of the outstanding principal amount of Registrable Securities being tendered or registered; provided, however, that, with respect to any matter that directly or indirectly affects the rights of any Initial Purchaser hereunder, the Company shall obtain the written consent of the Initial Purchaser with respect to which such amendment, qualification, supplement, waiver, consent or departure is to be effective. Any amendments, modifications, supplements, waivers or consents pursuant to this Section 6(d) shall be by a writing executed by each of the parties hereto.

 

(e)                                  Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, registered first-class mail, facsimile, or any courier guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such Holder to the Company by means of a notice given in accordance with the provisions of this Section 6(e), which address initially is, with respect to the Initial Purchaser, the address set forth in the Purchase Agreement; (ii) if to the Company, initially at the Company’s address set forth in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(e); and (iii) to such other persons at their respective addresses as provided in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(e). All such notices

 

19

 

and communications shall be deemed to have been duly given at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged, if delivered by facsimile; and on the next Business Day if timely delivered to an air courier guaranteeing overnight delivery. Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee, at the address specified in the Indenture.

 

(f)                                   Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors, assigns and transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders; provided that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms of the Purchase Agreement or the Indenture. If any transferee of any Holder shall acquire Registrable Securities in any manner, whether by operation of law or otherwise, such Registrable Securities shall be held subject to all the terms of this Agreement, and by taking and holding such Registrable Securities such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement and such Person shall be entitled to receive the benefits hereof. The Initial Purchaser (in its capacity as the Initial Purchaser) shall have no liability or obligation to the Company or the Guarantors with respect to any failure by a Holder to comply with, or any breach by any Holder of, any of the obligations of such Holder under this Agreement.

 

(g)                                  Third Party Beneficiaries. Each Holder shall be a third party beneficiary to the agreements made hereunder between the Company, on the one hand, and the Initial Purchaser, on the other hand, and shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or advisable to protect its rights or the rights of other Holders hereunder.

 

(h)                                 Counterparts. This Agreement 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.

 

(i)                                     Headings. The headings in this Agreement are for convenience of reference only, are not a part of this Agreement and shall not limit or otherwise affect the meaning hereof.

 

(j)                                    Governing Law. This Agreement and any claim, controversy or dispute arising under or related to this Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

(k)                                 Miscellaneous. This Agreement contains the entire agreement between the parties relating to the subject matter hereof and supersedes all oral statements and prior writings with respect thereto. If any term, provision, covenant or restriction contained in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable or against public policy, the remainder of the terms, provisions, covenants and restrictions contained herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated. The Company and the Initial Purchaser shall endeavor in good faith negotiations to replace the

 

20

 

invalid, void or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, void or unenforceable provisions.

 

[Remainder of This Page is Intentionally Left Blank]

 

21

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
WILDHORSE RESOURCE   DEVELOPMENT CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jay C. Graham
    
	
 
    	
Name:
    	
Jay C. Graham
    
	
 
    	
Title:
    	
Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
GUARANTORS
    
	
 
    	
 
    
	
 
    	
WILDHORSE RESOURCES II,   LLC,
    
	
 
    	
By: WildHorse Resource   Development Corporation, its sole member
    
	
 
    	
ESQUISTO RESOURCES II,   LLC,
    
	
 
    	
By: WildHorse Resource   Development Corporation, its sole member
    
	
 
    	
WHE ACQCO., LLC,
    
	
 
    	
By: WildHorse Resource   Development Corporation, its sole member
    
	
 
    	
WHR EAGLE FORD LLC,
    
	
 
    	
By: WildHorse Resource   Development Corporation, its sole member
    
	
 
    	
BURLESON SAND LLC,
    
	
 
    	
By: WildHorse Resource   Development Corporation, its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jay C. Graham
    
	
 
    	
Name:
    	
Jay C. Graham
    
	
 
    	
Title:
    	
Chief Executive Officer
    

 

Signature Page to Registration Rights Agreement

 

 

	
 
    	
WILDHORSE RESOURCES   MANAGEMENT COMPANY, LLC,
    
	
 
    	
By:   WildHorse Resources II, LLC, its sole member,
    
	
 
    	
By: WildHorse Resource   Development Corporation, its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jay C. Graham
    
	
 
    	
Name:
    	
Jay C. Graham
    
	
 
    	
Title:
    	
Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
PETROMAX E&P   BURLESON, LLC,
    
	
 
    	
By:   Esquisto Resources II, LLC, its sole member,
    
	
 
    	
By: WildHorse Resource   Development Corporation, its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jay C. Graham
    
	
 
    	
Name:
    	
Jay C. Graham
    
	
 
    	
Title:
    	
Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
BURLESON WATER   RESOURCES, LLC,
    
	
 
    	
By:   Esquisto Resources II, LLC, its sole member,
    
	
 
    	
By: WildHorse Resource   Development Corporation, its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jay C. Graham
    
	
 
    	
Name:
    	
Jay C. Graham
    
	
 
    	
Title:
    	
Chief Executive Officer
    

 

Signature Page to Registration Rights Agreement

 

 

Confirmed and accepted as of the date first above written:

 

	
WELLS FARGO   SECURITIES, LLC
    	
 
    
	
As the   Initial Purchaser
    	
 
    
	
By: WELLS   FARGO SECURITIES, LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jeff Gore
    	
 
    
	
Name:
    	
Jeff Gore
    	
 
    
	
Title:
    	
Managing Director
    	
 
    

 

Signature Page to Registration Rights Agreement

 

 

SCHEDULE I

 

GUARANTORS

 

Burleson Sand LLC

Burleson Water Resources, LLC

Esquisto Resources II, LLC

Petromax E&P Burleson, LLC

WHE AcqCo., LLC

WHR Eagle Ford LLC

WildHorse Resources Management Company, LLC

WildHorse Resources II, LLC

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00282-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00282-of-00352.parquet"}]]