Document:

este-ex101_7.htm

Exhibit 10.1

 

Execution Version

SECOND AMENDMENT TO CREDIT AGREEMENT

 

This SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) entered into on December 1, 2017, is among EARTHSTONE ENERGY HOLDINGS, LLC, a Delaware limited liability company (“Borrower”), EARTHSTONE OPERATING, LLC, a Texas limited liability company (“EO”), EF NON-OP, LLC, a Texas limited liability company (“EF”), SABINE RIVER ENERGY, LLC, a Texas limited liability company (“Sabine”), EARTHSTONE LEGACY PROPERTIES, LLC, a Texas limited liability company (“ELP”),  LYNDEN USA OPERATING, LLC, a Texas limited liability company (“LUO”), BOLD ENERGY III LLC, a Texas limited liability company (“BE”) and BOLD OPERATING, LLC, a Texas limited liability company (“BO”), as guarantors (EO, EF, Sabine, ELP, LUO, BE and BO, each a “Guarantor” and collectively, the “Guarantors”); each Lender (defined below) who is a signatory hereto and BOKF, NA dba BANK OF TEXAS, a national banking association, as administrative agent (“Agent”) for the Lenders.  The party or parties are sometimes individually referred to herein as a “Party” or collectively referred to as “Parties.” 

 

R E C I T A L S

WHEREAS, Borrower, Agent and the lenders from time to time party thereto (each a “Lender” and collectively, the “Lenders”) are parties to that certain Credit Agreement dated as of May 9, 2017, as amended by that certain First Amendment to Credit Agreement dated as of October 11, 2017 (as may be further amended, modified or restated from time to time, the “Credit Agreement”), whereby the Lenders agreed to make available to Borrower a credit facility upon the terms and conditions set forth therein; and

 

WHEREAS, Borrower has requested that Agent and the Lenders amend certain provisions of the Credit Agreement as provided herein; and

 

WHEREAS, subject to the terms hereof, the Agent and the Lenders are willing to agree to the amendment of certain provisions of the Credit Agreement as set forth herein.

 

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are

hereby acknowledged , the Parties to this Amendment hereby agree as follows:

 

SECTION 1.Defined Terms. Except as may otherwise be provided herein, all capitalized terms which are defined in the Credit Agreement shall have the same meaning herein as therein, all of such terms and their definitions being incorporated herein by reference.  

 

SECTION 2.Amendments to Credit Agreement. Subject to the conditions precedent set forth in Section 3 hereof:

 

(a)Section 1.02 of the Credit Agreement is hereby amended by deleting the defined terms “Consolidated Cash Balance” and “Consolidated Cash Balance Limit”. 

 

(b)Section 1.02 of the Credit Agreement is hereby amended by inserting the following as a new definition:

 

“Proposed Acquisition” means any acquisition by one or more Loan Parties of certain Oil and Gas Properties for which a binding, exclusive and enforceable letter of intent, purchase and sale agreement or similar definitive agreement has been signed by a Loan Party.

 

 

 

(c)The first sentence of Section 2.07(b)(iv) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“If, after a reduction in the Borrowing Base pursuant to Section 9.13(b)(i) in connection with the

Transfer of any Oil and Gas Property permitted pursuant to Section 9.13, a Borrowing Base Deficiency exists, then Borrower shall, concurrently with the receipt thereof, prepay the Loans with the net proceeds received from such Transfer in an amount necessary to eliminate such Borrowing Base Deficiency.”

 

(d)Section 2.08(f) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(f)Redetermination Concurrent with Certain Transfers.  The Borrowing Base shall be automatically reduced when and as required by Section 9.13(b)(i).”

 

(e)Section 6.02 of the Credit Agreement is hereby amended by (i) deleting the existing clause (c), (ii) inserting “and” at the end of clause (b), (iii) renumbering existing clause (d) as clause (c), and (iv) replacing the reference to “Section 6.02(a), (b), (c) and (d)” with “Section 6.02(a), (b) and (c)”.

 

(f)The first sentence of Section 8.01(f) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Upon request of Agent (on its own behalf or at the instruction of the Majority Lenders), within 15 days after the last day of the fiscal quarter in which Agent makes such request, a report certified as true and complete in all material respects by a Responsible Officer, in form and substance satisfactory to Agent, setting forth as of the last Business Day of such fiscal quarter a true and complete list of all Hedging Agreements (including commodity price swap agreements, forward agreements or contracts of sale which provide for prepayment for deferred shipment or delivery of oil, gas or other commodities) of Borrower and each Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark to market value therefor, any new credit support agreements relating thereto not listed on Schedule 7.21, any margin required or supplied under any credit support document, and the counter party to each such agreement.”

 

(g)Section 9.13 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Section 9.13Sale of Properties. Borrower will not, and will not permit any Subsidiary to Transfer any Oil and Gas Property or any interest in any Oil and Gas Property, except for (a) cash sales of Hydrocarbons in the ordinary course of business and (b) sales of Oil and Gas Properties; provided that (i) if the value of any such sale, when aggregated with the value of all other such sales since the most recent redetermination of the Borrowing Base pursuant to Section 2.08(d), exceeds 5% of the value of the PDP Reserves in the Borrowing Base then in effect, the Borrowing Base shall automatically be reduced by the value assigned to such Oil and Gas Properties in the Borrowing Base (as such values appear in Agent’s records from such most recent redetermination of the Borrowing Base), (ii) the Borrower makes all applicable corresponding prepayments required by Section 2.07(b)(iv), (iii) no Default exists or would result therefrom and (iv) the cash or other Oil and Gas Properties received as consideration for any such sale is equal to or greater than the fair market value of the Oil and Gas Properties Transferred in connection with such sale. Borrower shall provide Agent with at least 10 Business Days prior written notice of any proposed Transfer described in Section 9.13(b).” 

 

 

 

 

 

(h)Section 9.19(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(a)Neither Borrower nor any Subsidiary will enter into any Hedging Agreements with any Person other than:

(i) Hedging Agreements with an Approved Counterparty that is, at the time such Hedging Agreement is entered into, a Lender or an Affiliate of a Lender (other than a Defaulting Lender or an Affiliate of a Defaulting Lender) or a Permitted Unsecured Counterparty.  At no time will Borrower or any Subsidiary hedge (i) for months 1 through 48, more than 85% of anticipated monthly production from its Proven Reserves (provided no more than 25% of anticipated monthly production from such Proven Reserves may be attributable to PDNP Reserves or PUD Reserves) and (ii) for months 49 through 60, more than 85% of anticipated monthly production from its PDP Reserves.  

(ii)Hedging Agreements pertaining to Oil and Gas Properties to be acquired pursuant to a Proposed Acquisition that would, once such Oil and Gas Properties were acquired and owned by Borrower or any Subsidiary, be permitted by Section 9.19(a)(i); provided that, Hedging Agreements entered into pursuant to this Section 9.19(a)(ii) must be liquidated, terminated or otherwise monetized on or prior to the 10th Business Day following the earlier to occur of: (1) the date that is ninety (90) days after the initial execution of the letter of intent, purchase and sale agreement or similar definitive agreement related to such Proposed Acquisition to the extent that such Proposed Acquisition has not been consummated by such date (or such later date as agreed to by the Agent in its sole discretion), and (2) the date on which Borrower or any Subsidiary knows with reasonable certainty that the Proposed Acquisition will not be consummated, provided, further, that (x) such Hedging Agreements entered into pursuant to this Section 9.19(a)(ii) shall not, in any case, have a tenor of greater than thirty-six (36) months (such tenor to be calculated as of the first day of the first calendar month commencing after any such Hedging Agreement trade or transaction is entered into) and (y) Borrower and its Subsidiaries shall at all times from the date such Hedging Agreements pursuant to this Section 9.19(a)(ii) are entered into until the earlier of the date the Proposed Acquisition is consummated and the date Borrower or such Subsidiary liquidates, terminates or otherwise monetizes such Hedging Agreements maintain cash, cash equivalents and unused Aggregate Commitments sufficient to  pay for its liquidation, termination or monetization liabilities with respect to such Hedging Agreements.”

(i)The last sentence of Exhibit B to the Credit Agreement is hereby amended by (i) deleting the existing clause (c), and (ii) renumbering existing clause (d) as clause (c).

 

SECTION 3.  Conditions of Effectiveness.  The obligations of Agent and the Lenders to amend the Credit Agreement as provided herein are subject to the fulfillment of the following conditions precedent: 

 

(a)Agent shall have received counterparts of this Amendment, which shall have been executed by the Lenders, Borrower and the Guarantors.  

 

(b)Borrower shall have made payment of all fees and expenses due and owing under the Credit Agreement including such fees and expenses specified in Section 7 hereof. 

 

 

 

 

(c)All representations and warranties set forth in each of the Loan Documents shall be true and correct.

 

(d)No Material Adverse Effect shall have occurred. 

 

(e)No Default or Event of Default shall have occurred. 

 

SECTION 4.Borrowing Base Redetermination.  The Lenders have agreed that the amount of the Borrowing Base shall be increased to $185,000,000 and the Monthly Reduction Amount shall be reaffirmed at $0, until the Borrowing Base and Monthly Reduction Amount are further redetermined pursuant to the terms of Section 2.08 of the Credit Agreement.

 

SECTION 5.Representations and Warranties. Borrower and each Guarantor represents and warrants to Agent and the Lenders, with full knowledge that Agent and the Lenders are relying on the following representations and warranties in executing this Amendment, as follows:

 

(a)It has the power and authority to execute, deliver and perform this Amendment, and all organizational action on the part of itself, as applicable, requisite for the due execution, delivery and performance of this Amendment has been duly and effectively taken.

 

(b)This Amendment and each other document executed and delivered in connection herewith constitute its legal, valid and binding obligation, to the extent it is a party thereto, enforceable against it in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to enforceability.

 

(c)This Amendment does not and will not violate any provisions of (i) its Charter Documents; (ii) any contract, agreement, or instrument to which it is a party; or (iii) any requirement of any governmental authority to which it is subject. Its execution of this Amendment will not result in the creation or imposition of any lien upon its properties other than those permitted by the Credit Agreement and this Amendment.

 

(d)Its execution, delivery and performance of this Amendment does not require the consent or approval of any other Person, including, without limitation, any regulatory authority or governmental body of the United States of America or any state thereof or any political subdivision of the United States of America or any state thereof.

 

(e)As of the date of this Amendment, it is solvent and has taken no action such as may invoke applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to enforceability.

 

(f)No Default or Event of Default exists, and all of the representations and warranties made by it contained in the Credit Agreement are true and correct in all material respects on and as of this date other than those which have been disclosed to Lenders in writing (except to the extent such representations and warranties expressly refer to an earlier or other date, in which case they shall be true and correct as of such earlier or other date).

 

Except to the extent expressly set forth herein to the contrary, nothing in this Section 5 is intended to amend any of the representations or warranties contained in the Agreement.

 

 

 

 

SECTION 6.Reference to and Effect on the Credit Agreement.

 

(a)Upon and after the execution of this Amendment by each of the parties hereto, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified hereby.  This Amendment shall constitute a Loan Document.

 

(b)Except as specifically amended by this Amendment, the Credit Agreement shall remain in full force and effect and is hereby ratified and confirmed.

 

SECTION 7.Fees, Cost, and Expenses. Borrower agrees to pay all reasonable legal fees and expenses to be incurred in connection with the preparation, reproduction, execution and delivery of this Amendment and the other instruments and documents to be delivered in connection with the transactions associated herewith, including reasonable attorneys’ fees and out-of-pocket expenses of Agent, and agrees to save Agent harmless from and against any and all liabilities with respect to or resulting from any delay in paying or omission to pay such fees.

 

SECTION 8.Extent of Amendment. Except as otherwise expressly provided herein, neither the Credit Agreement nor the other Loan Documents are amended, modified or affected by this Amendment. Borrower and each Guarantor hereby ratifies and confirms that (i) except as expressly amended hereby, all of the terms, conditions, covenants, representations, warranties and all other provisions of the Credit Agreement, as applicable, remain in full force and effect, (ii) each of the other Loan Documents to which it is a party are and remain in full force and effect in accordance with their respective terms, and (iii) the Collateral granted by it is unimpaired by this Amendment.

 

Nothing contained in this Amendment nor any past indulgence by Agent and/or the Lenders, nor any other action or inaction on behalf of Agent and/or the Lenders (i) shall constitute or be deemed to constitute a waiver of any unknown or future Defaults or Events of Default which may now or in the future exist under the Credit Agreement or the other Loan Documents, or (ii) shall constitute or be deemed to constitute an election of remedies by Agent and/or the Lenders or a waiver of any of the rights or remedies of Agent and/or the Lenders provided in the Credit Agreement or the other Loan Documents or otherwise afforded at law or in equity. 

 

SECTION 9.Grant and Affirmation of Security Interest. Borrower and each Guarantor hereby confirms and agrees that (i) any and all liens, security interests and other security or Collateral granted by it and now or hereafter held by Lenders as security for payment and performance of the Obligations are hereby renewed and carried forth to secure payment and performance of all of the Obligations, and (ii) the Loan Documents, as such may be amended in accordance herewith, are and remain legal, valid and binding obligations, enforceable in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to enforceability.  

 

SECTION 10. Claims; Release. As additional consideration to the execution, delivery, and performance of this Amendment by the parties hereto and to induce Agent and the Lenders to enter into this Amendment, Borrower and each Guarantor hereby represents and warrants that it does not know of any defenses, counterclaims or rights of setoff to the payment of any Obligations of Borrower or any Guarantor to Agent and/or the Lenders.  In consideration of the amendments contained herein, Borrower and each Guarantor hereby waives and releases each of the Lenders and Agent from any and all claims and defenses, 

 

 

 

known or unknown, with respect to the Credit Agreement and the other Loan Documents and the transactions contemplated thereby.

 

SECTION 11.Execution and Counterparts. This Amendment may be executed in any number of counterparts and by different Parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile or other electronic transmission (such as Portable Document Format) and other Loan Documents shall be equally as effective as delivery of a manually executed counterpart of this Amendment and such other Loan Documents.

 

SECTION 12.Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of Texas.

 

SECTION 13.Headings. Section headings in this Amendment are included herein for convenience and reference only and shall not constitute a part of this Amendment for any other purpose.

 

SECTION 14.NO ORAL AGREEMENTS. The rights and obligations of each of the parties to the loan documents shall be determined solely from written agreements, documents, and instruments, and any prior oral agreements between such parties are superseded by and merged into such writings. This Amendment and the other written loan documents executed by Borrower, Guarantor, Agent and/or the Lenders (together with any fee letters as they relate to the payment of fees after the closing date) represent the final agreement between such parties, and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements by such parties. There are no unwritten oral agreements between such parties. 

 

[signature pages to follow]

 

 

 

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the date first written above.

 

 

BORROWER:

 

EARTHSTONE ENERGY HOLDINGS, LLC

a Delaware limited liability company

 

 

		
	
By:
	
/s/ Mark Lumpkin, Jr.

	
Name:
	
Mark Lumpkin, Jr.

	
Title:
	
EVP

 

 

 

GUARANTORS:

 

EARTHSTONE OPERATING, LLC, 

a Texas limited liability company 

EF NON-OP, LLC, 

a Texas limited liability company 

SABINE RIVER ENERGY, LLC, 

a Texas limited liability company

EARTHSTONE LEGACY PROPERTIES, LLC,

a Texas limited liability company

LYNDEN USA OPERATING, LLC, 

a Texas limited liability company

BOLD ENERGY III LLC, 

a Texas limited liability company

BOLD OPERATING, LLC, 

a Texas limited liability company

 

 

		
	
Each by:
	
/s/ Mark Lumpkin, Jr.

	
Name:
	
Mark Lumpkin, Jr.

	
Title:
	
EVP and CFO

 

 

 

 

 

 

 

Signature Page to Second Amendment to Credit Agreement (Earthstone Energy Holdings, LLC)

 

LENDER AND AGENT:

 

BOKF, NA dba BANK OF TEXAS, 

as Agent and Lender

 

 

		
	
By:
	
/s/ Martin W. Wilson

	
 
	
Martin W. Wilson

	
 
	
Senior Vice President

 

 

Signature Page to Second Amendment to Credit Agreement (Earthstone Energy Holdings, LLC)

 

LENDER:

 

Wells Fargo Bank N.A., 

as Lender

 

 

		
	
By: 
	
/s/ Ed Pak

	
Name:
	
Ed Pak

	
Title:
	
Director

Signature Page to Second Amendment to Credit Agreement (Earthstone Energy Holdings, LLC)

 

LENDER:

 

Royal Bank of Canada, 

as Lender

 

 

		
	
By:
	
/s/ Kristan Spivey

	
Name:
	
Kristan Spivey

	
Title:
	
Authorized Signatory

Signature Page to Second Amendment to Credit Agreement (Earthstone Energy Holdings, LLC)

 

LENDER:

 

SunTrust Bank, 

as Lender

 

 

		
	
By:
	
/s/ Arize Agumadu

	
Name:
	
Arize Agumadu

	
Title:
	
Vice President

Signature Page to Second Amendment to Credit Agreement (Earthstone Energy Holdings, LLC)

 

LENDER:

 

KEYBANK NATIONAL ASSOCIATION, 

as Lender

 

 

		
	
By:
	
/s/ George E. McKean

	
Name:
	
George E. McKean

	
Title:
	
Senior Vice President

Signature Page to Second Amendment to Credit Agreement (Earthstone Energy Holdings, LLC)

 

LENDER:

 

IBERIABANK, 

as Lender

 

 

		
	
By:
	
/s/ Stacy Goldstein

	
Name:
	
Stacy Goldstein

	
Title:
	
Senior Vice President

 

Signature Page to Second Amendment to Credit Agreement (Earthstone Energy Holdings, LLC)Form of Global Note for 3.250% Notes due 2024

 Exhibit 4.1 

FORM OF 3.250% NOTES DUE 2024 

THIS SECURITY IS A SECURITY IN GLOBAL FORM AS REFERRED TO IN THE INDENTURE HEREINAFTER REFERENCED AND REGISTERED IN THE NAME OF A DEPOSITARY
OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. IN THE EVENT THAT THIS GLOBAL SECURITY IS EXCHANGED IN
WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, ALL SUCH INDIVIDUAL SECURITIES IN THE FORM OF DEFINITIVE CERTIFICATES SHALL CONTAIN THE LEGENDS BELOW WITH RESPECT TO JAPANESE TAXATION. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO THE ISSUER OF THIS SECURITY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 INTEREST PAYMENTS ON THIS SECURITY WILL
BE SUBJECT TO JAPANESE WITHHOLDING TAX, UNLESS THE HOLDER ESTABLISHES THAT THIS SECURITY IS HELD BY OR FOR THE ACCOUNT OF A HOLDER THAT IS (I) FOR JAPANESE TAX PURPOSES, NEITHER (X) AN INDIVIDUAL RESIDENT OF JAPAN OR A JAPANESE
CORPORATION, NOR (Y) AN INDIVIDUAL NON-RESIDENT OF JAPAN OR A NON-JAPANESE CORPORATION THAT IN EITHER CASE IS A SPECIALLY-RELATED PERSON OF THE ISSUER, (II) A
JAPANESE FINANCIAL INSTITUTION DESIGNATED IN ARTICLE 3-2-2, PARAGRAPH (28) OF THE CABINET ORDER (CABINET ORDER NO. 43 OF 1957, AS AMENDED) UNDER ARTICLE 6,
PARAGRAPH (9) OF THE ACT ON SPECIAL MEASURES CONCERNING TAXATION THAT COMPLIES WITH THE REQUIREMENT FOR TAX EXEMPTION UNDER THAT PARAGRAPH OR (III) AN INDIVIDUAL RESIDENT OF JAPAN OR A JAPANESE CORPORATION WHOSE RECEIPT OF INTEREST ON THE
SECURITIES WILL BE MADE THROUGH A PAYMENT HANDLING AGENT IN JAPAN AS DEFINED IN ARTICLE 2-2, PARAGRAPH (2) OF THE CABINET ORDER. 

INTEREST PAYMENTS ON THIS SECURITY TO AN INDIVIDUAL RESIDENT OF JAPAN, TO A JAPANESE CORPORATION (EXCEPT AS DESCRIBED IN THE PRECEDING
PARAGRAPH), OR TO AN INDIVIDUAL NON-RESIDENT OF JAPAN OR A NON-JAPANESE CORPORATION THAT IN EITHER CASE IS A SPECIALLY-RELATED PERSON OF THE ISSUER WILL BE SUBJECT TO
DEDUCTION IN RESPECT OF JAPANESE INCOME TAX AT A RATE OF 15.315% OF THE AMOUNT OF SUCH INTEREST. 

 ORIX CORPORATION 

3.250% Notes due 2024 
 Principal
Amount: $[            ] 
 No. [    ] 

CUSIP: 686330AK7 
 ISIN: US686330AK78 

Common Code: 170051955 
 ORIX Corporation, a
joint stock company organized under the laws of Japan (the “Issuer”, which term includes any successor under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns,
the principal amount set forth above on December 4, 2024 and to pay interest thereon from December 4, 2017 or from the most recent interest payment date to which interest has been paid or duly provided for, semi-annually in arrears on June 4 and
December 4 in each year commencing June 4, 2018 at the rate per annum provided in the title hereof, until the principal hereof is paid or made available for payment, all subject to and in accordance with the terms of the Indenture. 

With respect to each interest payment date, as described above, interest shall be paid to the holders of record as of the close of business on
the fifteenth day before the interest payment date (whether or not a business day). Interest on this Security will accrue from the date of original issuance or, if interest has already been paid, from the date it was most recently paid. Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day months. 

If any payment is due on this Security on a day that is not a business day, payment will be made on the day that is the next business day.
Payments postponed to the next business day in this situation will be treated under the Indenture as if they were made on the original due date. Postponement of this kind will not result in an Event of Default under the Securities or the Indenture,
and no interest will accrue on the postponed amount from the original due date to the next day that is a business day. 
 For the purposes
of the preceding paragraph, “business day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking or trust institutions in New York City or in Tokyo are authorized generally or obligated by law,
regulation or executive order to close. 
 The principal of, and interest and additional amounts on, this Security will be payable in U.S.
dollars. The Issuer will cause the Trustee, or the paying agent, if any, to pay such amounts, on the dates payment is to be made, directly to DTC. 

 The Issuer will pay the holder hereof additional amounts with respect to withholding taxes as are
provided for, and subject to the conditions stated, on the reverse of this Security. 
 This Security is the direct, unsecured and
unsubordinated general obligation of the Issuer and has the same rank in liquidation as all of the other unsecured and unsubordinated debt of the Issuer. This Security is not redeemable prior to maturity, except as set forth on the reverse of this
Security and will not be subject to any sinking fund. 
 Reference is hereby made to the further provisions of this Security set forth on
the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the
certificate of authentication hereon has been manually executed by or on behalf of the Trustee under the Indenture, this Security shall not be entitled to any benefits under the Indenture or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, ORIX CORPORATION has caused this Security to be duly executed. 

Date: [            ] 

 

					
	ORIX CORPORATION
		
	By:	 	  

		 	Name:	 	[            ]
		 	Title:	 	[            ]

  
 [Global Security No.
[    ]] 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

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

Date: [            ] 

 

					
	 The Bank of New York Mellon, as Trustee

		
	By:	 	  

		 	Name:	 	[            ]
		 	Title:	 	[            ]

  
 [Certificate of
Authentication – Global Security No. [    ]] 

 REVERSE OF SECURITY 

This Security is one of the duly authorized issues of unsecured debentures, notes or other evidences of indebtedness of the Issuer
(hereinafter called the “Securities”), of the series hereinafter specified, all issued or to be issued under and pursuant to the indenture dated as of July 18, 2017, as may be supplemented or amended from time to time in accordance
with its terms (hereinafter called the “Indenture”), duly executed and delivered by the Issuer and The Bank of New York Mellon, as Trustee (the “Trustee”, which term includes any successor Trustee under the Indenture), to which
Indenture and any other indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee and any agent of the Trustee, any paying
agent, the Issuer and the Holders of the Securities and of the terms upon which the Securities are issued and are to be authenticated and delivered. This Security is one of the series designated on the face hereof. By the terms of the Indenture,
additional Securities of this series and of other separate series, which may vary as to date, amount, seniority, stated maturity (if any), interest rate or method of calculating the interest rate and in other respects as therein provided, may be
issued in an unlimited amount. 
 Payments of principal and interest on the Securities will be made by the Issuer without withholding or
deduction for or on account of any present or future taxes, duties, assessments or other governmental charges imposed or levied by or on behalf of Japan or any political subdivision or any authority thereof or therein having power to tax, unless
otherwise required by law. If any such withholding or deduction is required by Japanese law, the Issuer will pay to a Holder such additional amounts as may be necessary in order that the amount received by the Holder after deduction or withholding
for or on account of any such present or future tax, duty, assessment or other governmental charge will not be less than the amount that, in the absence of such deduction or withholding, would have been received by the Holder. However, no additional
amounts will be payable with respect to any Security under any of the following circumstances: 
  

	 	•	 	the Holder or beneficial owner of the Security is an individual non-resident of Japan or non-Japanese corporation and is liable for such
Japanese taxes in respect of such Security by reason of its (a) having some connection with Japan other than the mere holding of the Security or (b) being a person having a special relationship with the Issuer for Japanese tax purposes as
described in Article 6, paragraph (4) of the Act on Special Measures Concerning Taxation; 

	 	•	 	the Holder or beneficial owner of the Security is for Japanese tax purposes treated as an individual resident of Japan or a Japanese corporation (except for (a) a Japanese bank, Japanese insurance company, Japanese
securities company or other Japanese financial institution falling under certain categories prescribed by Cabinet Order No. 43 of 1957, as amended (the “Cabinet Order”) or a Japanese financial institution designated in Article 3-2-2, Paragraph (28) of the Cabinet Order that complies with the requirement under Article 6, paragraph (9) of the Act on Special Measures Concerning Taxation,
among others, (i) to provide certain information prescribed by the Act on Special Measures Concerning Taxation and the relevant cabinet order and regulations thereunder to enable the participants in an international clearing organization to
establish that such Holder or beneficial owner is exempt from the requirement for Japanese tax to be withheld or deducted or the interest recipient information designated in Article 6, paragraph (8) of the Act on Special Measures Concerning
Taxation, or (ii) to submit a written application for tax exemption (Hikazei Tekiyo Shinkokusho) and (b) an individual resident of Japan or a Japanese corporation that duly notifies (whether directly, through a participant in an
international clearing organization or otherwise) the relevant paying agent of its status as not being subject to Japanese taxes to be withheld or deducted by the Issuer by reason of receipt by it of interest on the relevant Security through a
payment handling agent in Japan appointed by the Issuer); 

  

	 	•	 	the tax, duty, assessment or other governmental charge is imposed or withheld because the Holder or beneficial owner failed, upon the Issuer’s reasonable request, to make a declaration or satisfy any information
requirements that the statutes, treaties, regulations or administrative practices of Japan require as a precondition to exemption from all or part of such tax or governmental charge; 

 

	 	•	 	the Security is presented for payment (where presentation is required) more than 30 days after the day on which such payment on the Security became due or after the full payment was provided for, whichever occurs later,
except to the extent the Holder thereof would have been entitled to additional amounts on presenting the same for payment on the last day of such period of 30 days; 

 

	 	•	 	the withholding or deduction is imposed on a Holder or beneficial owner who could have avoided such withholding or deduction by presenting its Security (where presentation is required) to another paying agent maintained
by the Issuer; 

  

	 	•	 	the Holder is a fiduciary or partnership or is not the sole beneficial owner of the payment of the principal of, or any interest on, any Security, and Japanese law requires the payment to be included for tax purposes in
the income of a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner, in each case, who would not have been entitled to such additional amounts had it been the Holder of such Security;
or 

  

	 	•	 	any combination of the above. 

 No additional amounts will be payable for or on account of any deduction or withholding imposed
pursuant to Sections 1471-1474 of the U.S. Internal Revenue Code and the U.S. Treasury regulations thereunder, or FATCA, any intergovernmental agreement entered into with respect to FATCA or any law, regulation or other official guidance enacted or
published in any jurisdiction implementing, or relating to, FATCA, any intergovernmental agreement entered into with respect to FATCA or any agreement with the U.S. Internal Revenue Service regarding FATCA. 

The Issuer will (i) make any required withholding or deduction and (ii) remit the full amount deducted or withheld to the Japanese
taxing authority in accordance with applicable law. The Issuer will use all reasonable efforts to obtain certified copies of tax receipts evidencing the payment of any tax, duty, assessment or other governmental charge so remitted to the Japanese
taxing authority imposing such tax, duty, assessment or other governmental charge and will provide such certified copies to each Holder. The Issuer will attach to each certified copy a certificate stating (x) that the amount of withholding tax,
duty, assessment or other governmental charge evidenced by the certified copy was paid in connection with payments in respect of the principal amount of Securities then outstanding and (y) the amount of such withholding tax, duty, assessment or
other governmental charge paid per $1,000 principal amount of the Securities. Copies of such documentation will be available for inspection during ordinary business hours at the office of the Trustee by the Holders of the Securities upon request and
will be made available at the office of the paying agent. 
 The obligation to pay additional amounts with respect to any taxes, duties,
assessments and other governmental charges shall not apply to (A) any estate, inheritance, gift, sales, transfer, personal property or any similar tax, duty, assessment, fee or other governmental charge or (B) any tax, duty, assessment,
fee or other governmental charge which is payable otherwise than by deduction or withholding from payments of principal or interest on the Securities; provided that the Issuer shall pay all stamp, court or documentary taxes or any excise or property
taxes, charges or similar levies and duties, if any, which may be imposed by Japan, the United States or any political subdivision or any taxing authority thereof or therein, with respect to the Indenture or as a consequence of the initial issuance,
execution, delivery or registration of the Securities. 
 References to principal or interest in respect of the Securities shall be deemed
to include any additional amounts due which may be payable as set forth here and in the Indenture. 
 The Issuer has the option to redeem
any series of Securities prior to maturity if, as a result of change in, or amendment to, the laws or regulations of Japan or any political subdivision or any authority thereof or therein having power to tax, or any change in application or official
interpretation of such laws or regulations, which change or amendment becomes effective, or which change in application or interpretation is announced, on or after the issue date of the relevant series of Securities, the Issuer would be required to
pay additional amounts as described above, in which case the Issuer may redeem the Securities of such series in whole, but not in part, at a redemption price equal to 100% of the principal amount of the Securities plus accrued interest to the
redemption date. Furthermore, the Issuer must give the Holders between 30 and 60 days’ notice before redeeming the Securities, and no such notice of redemption may be given earlier than 90 days prior to the earliest date on which the Issuer
would be required to make such payment of additional amounts if a payment in respect of the Securities were actually due on such date. Prior to giving any such notice of redemption, the Issuer shall deliver to the Trustee (i) an Officer’s
Certificate stating that the conditions precedent to the Issuer’s right to redeem the Securities have been fulfilled and (ii) an Opinion of Counsel, who shall be independent legal counsel to the Issuer reasonably satisfactory to the
Trustee, confirming that the Issuer has or will be required to pay additional amounts as a result of such change or amendment. The Trustee shall be entitled to accept such Officer’s Certificate and Opinion of Counsel as sufficient evidence of
the satisfaction of the conditions precedent described above, in which event it shall be conclusive and binding on the Holders of the Securities. 

 So long as any of the Securities remain outstanding, the Issuer may not create or permit to
subsist any pledge, lien or other charge upon the whole or any part of its undertaking, assets or revenues present or future to secure, for the benefit of the holders thereof, any External Indebtedness, as defined below, without according or
procuring to be accorded to the debt obligations of the Issuer under the Securities and the Indenture the same security as is granted to such External Indebtedness or such other security or guarantee as shall be approved by Holders representing more
than 50% of the outstanding principal amount of the Securities. “External Indebtedness” means any of the indebtedness of the Issuer or any of its consolidated subsidiaries, with a stated maturity of more than one year from the creation
thereof, which is represented by bonds, debentures, notes or any other similar debt securities which are quoted, listed or ordinarily dealt in, or are intended to be quoted, listed or ordinarily dealt in, on a stock exchange or on any over-the-counter or any other similar securities market outside Japan and which are by their terms repayable or confer a right to receive repayment in any currency other than
yen or are denominated in yen, if a majority of the aggregate nominal amount thereof is initially distributed outside Japan by or with the Issuer’s authorization (or guarantees, indemnities or other like obligations (in each case granted or
undertaken for the benefit of the holders of such securities to secure the payment of such indebtedness) in respect of such indebtedness). 

The Issuer reserves the right, from time to time, without the consent of the Holders of the Securities of a particular series, to issue
additional Securities on terms and conditions identical to those of the Securities of such series (other than the issue date, the date upon which interest first accrues, and, in some cases, the first interest payment date), which additional
Securities may increase the aggregate principal amount of, and may be consolidated and form a single series with, the outstanding Securities of such series; provided that any additional Securities that are so consolidated must be fungible with the
outstanding Securities for U.S. federal income tax purposes. The Issuer may also issue other securities under the Indenture as part of a separate series that have different terms from the Securities. 

The Issuer may change the paying agent or registrar without prior notice to the Holders of the Securities, and the Issuer or any of its
subsidiaries may act as paying agent or registrar. 
 A Holder of Securities issued in definitive form may transfer or exchange Securities
in accordance with the Indenture. As described in the legend on the face of this global security, interest payments on such Securities issued in definitive form will be subject to Japanese income taxation unless the Holder establishes the matters
set forth therein. Such legend concerning Japanese taxation shall also be included on the face of any Securities issued in definitive form. The registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents, and to pay any taxes and fees required by law or permitted by the Indenture. The Issuer will treat the registered Holder of a Security as the owner of that Security for all purposes, except as described above. 

 If an Event of Default with respect to Securities of this series shall occur and be continuing,
the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Issuer and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Issuer and the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount of
the Securities at the time Outstanding of all series to be affected (voting as a class). The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver
by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security. 
 No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable, upon
surrender of this Security for registration of transfer at the office or agency of the Issuer in any place where the principal of and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Issuer and the security registrar duly executed by, the Holder hereof or his attorney duly authorized in writing and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or transferees. 
 The Securities of this series are issuable
only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for
a like aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 

 No service charge shall be made for any such registration of transfer or exchange, but the Issuer
may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 
 Prior
to due presentment of this Security for registration of transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not
this Security be overdue, and neither the Issuer, the Trustee nor any such agent shall be affected by notice to the contrary. 
 This
Security shall be governed by and construed in accordance with the laws of the State of New York, except with respect to its authorization and execution by the Issuer and other matters required to be governed by the laws of Japan. 

All capitalized terms used but not defined in this Security which are defined in the Indenture shall have the meanings assigned to them in the
Indenture. 
 TRUSTEE 
 The Bank
of New York Mellon 
 101 Barclay Street 

New York, NY 10286 
 United States
of America 
 Attn: Global Corporate Trust — ORIX Corporation 

Fax: +1 212 815 5915

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00277-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00277-of-00352.parquet"}]]