Document:

Exhibit 10.4

 

Second Amended and Restated Employment Agreement

 

This Second Amended and Restated Employment
Agreement (this “Agreement”), dated as of August 4, 2016, is entered into between China Biologic Products, Inc.,
a company established in the United States with its principal office located at 18th Floor, Jialong Int’l Tower, 19 Chaoyang
Park Road, Beijing 100125, PRC (“Company”), and Xiaoying (David) Gao (the “Executive”).

 

WHEREAS, the Company and the Executive entered
into an employment agreement dated as of May 11, 2012 (the “2012 Agreement”), pursuant to which the Company
engaged the Executive as, and the Executive agreed to serve as, Chief Executive Officer of the Company, upon the terms and conditions
contained therein;

 

WHEREAS, the Company and the Executive entered
into a renewal employment agreement dated as of May 11, 2014 (the “2014 Agreement”) with terms and conditions
substantially similar with those under the 2012 Agreement;

 

WHEREAS, the term of the 2014 Agreement expired
on May 11, 2016; and

 

WHEREAS, the Company and the Executive desire
to extend the term of the 2014 Agreement upon the terms and conditions contained herein, which shall have become effective retrospectively
as of May 11, 2016.

 

NOW THEREFORE, for good and valuable consideration,
the sufficiency of which is hereby acknowledged by the parties, the parties hereby agree as follows:

 

	1. 	EFFECTIVENESS OF AGREEMENT AND EFFECTIVE DATE

 

This Agreement shall have become effective
retrospectively as of May 11, 2016. For the purpose of this Agreement, the term “Effective Date” means May 11,
2016.

 

	2. 	EMPLOYMENT AND DUTIES

 

2.1 General. The Executive will perform
such duties and services for the Company as may be designated from time to time by the Board of Directors of the Company (the “Board”).
The Executive agrees to serve the Company faithfully and to the best of his ability under the direction of the Board and to carry
out the functions typically performed by a Chief Executive Officer. He further agrees to perform such duties in accordance with
the general fiduciary duties of officers and directors arising under the Delaware General Corporation Law. The Executive is expected
and required to devote substantially all of his time and attention during normal business hours to the affairs of the Company and/or
its subsidiaries.

 

2.2 Term of Employment. The Executive’s
employment under this Agreement will commence as of the date hereof and will terminate on the first year of the Effective Date;
provided, however, that the term of the Executive’s employment will be automatically extended without further action of either
party for additional one (1) year periods unless written notice of either party’s intention not to extend has been given
to the other party hereto at least thirty (30) days prior to the expiration of the then effective term (the initial term and any
extensions thereof, the “Term of Employment”). Notwithstanding the foregoing, the Executive’s employment
may be terminated during the Term of Employment as provided in Section 5 below.

 

2.3 Reimbursement of Expenses. Unless
otherwise agreed to by the Executive and the Company, the Company will reimburse the Executive for reasonable travel and other
business expenses incurred by him to fulfill his duties hereunder upon presentation by the Executive of an itemized account of
such expenditures, in accordance with Company practices consistently applied.

 

     

     

    

 

	3. 	COMPENSATION

 

3.1 Base Salary. From the Effective
Date, the Executive will be entitled to receive a base salary (“Base Salary”) at a rate of US$550,000 per annum,
payable in accordance with the Company’s payroll practices and applicable law. If the rate of Base Salary per annum paid
to Executive is increased during the Term of Employment, such increased rate will thereafter constitute the Base Salary for all
purposes of this Agreement. Base Salary will not be decreased during the Term of Employment without the mutual consent of Executive
and the Company.

 

3.2 Annual Review. The Executive’s
Base Salary will be reviewed by the Board, based upon the Executive’s performance not less than annually.

 

3.3 Bonus Compensation. In addition
to his Base Salary, the Executive would be eligible to receive additional bonus compensation as may be awarded to the Executive
from time to time by the Board in the sole and absolute discretion of the Board.

 

3.4 Additional Compensation.

 

3.4.2 The Company may, in its sole discretion,
award the Executive additional equity-based compensation. The Executive further will be eligible to participate in any employment
compensation plan established by the Company under the same terms as other Company executives and approved by the Board.

 

	4. 	EMPLOYEE BENEFITS

 

4.1 Leave. The Executive will be entitled
to accrue 15 working days paid annual leave each calendar year (which will not be carried over in the event that they are not used
by the Executive). All annual leave days will be taken at times mutually agreed by the Executive and the Company and will be subject
to the business needs of the Company. If, however, in any calendar year during the Term of Employment, the Executive is unable
to take any annual leave due to the business needs of the Company, the Company, in its discretion, shall either pay the Executive
the equivalent of 15 working days, or permit the Executive to carry such leave over into the following calendar year.

 

4.2 Other Programs. The Executive will,
during his employment under this Agreement, be included to the extent eligible thereunder in all employee benefit plans, programs
or arrangements (including, without limitation, any plans, programs or arrangements providing for retirement benefits, incentive
compensation, profit sharing, bonuses, disability benefits, health and life insurance, or vacation and paid holiday) which may
be established by the Company for, or made available to, its executives generally.

 

	5.	TERMINATION OF EMPLOYMENT

 

5.1 Termination Events.

 

5.1.1 By the Company. The Company may
terminate the Executive’s employment

 

immediately with Cause, without Cause upon ninety (90) days notice
to the Executive, or upon the Executive’s death or Permanent Disability (as hereinafter defined).

 

5.1.2 By the Executive. The Executive
may terminate his employment at any time for any reason upon ninety (90) days written notice to the Company.

 

5.2 Termination by Company With Cause.
If the Executive’s employment is terminated by the Company with Cause, the Company shall pay to the Executive all compensation
to which the Executive is entitled through the date of termination, and thereafter, all of the Company’s obligations under
this Agreement shall cease.

 

    -2-

     

    

 

5.3 Termination by Company Without Cause.
Except in situations where the Executive’s employment is terminated under Section 5.2 or Section 5.4, by death or by Permanent
Disability, in the event that the Company terminates Executive’s employment at any time without Cause, the Executive shall
be entitled to receive an amount equal to twelve (12) months of the Executive’s then current Base Salary paid in twelve (12)
equal monthly installments, subject to Sections 5.7 and 5.8.

 

5.4 Change of Control. In the event
of a Change of Control, the Company shall (i) assign this Agreement and all rights and obligations under it to any business entity
that succeeds to all or substantially all of the Company’s business through that merger or combination or sale of assets,
or (ii) on at least thirty (30) days’ prior written notice to the Executive, terminate this Agreement upon the effective
date of such Change of Control. In the event that the Company terminates Executive’s employment pursuant to this Section
5.4, the Executive shall be entitled to receive, upon termination an amount equal to eighteen (18) months of the Executive’s
then current Base Salary paid in eighteen (18) equal monthly installments, subject to Sections 5.7 and 5.8.

 

For the purpose of this Agreement, “Change
of Control” means the occurrence of any of the following events:

 

(a) The consummation of the sale or disposition
by the Company of all or substantially all of the Company's assets;

 

(b) The consummation of a merger or consolidation
of the Company with any other entity, unless the voting securities of the Company immediately prior to the merger or consolidation
remain outstanding or are converted into voting securities of the surviving entity or parent so that they continue to represent
at least fifty percent (50%) of the total voting power represented by the voting securities of the surviving entity (or parent)
outstanding immediately after such merger or consolidation; or

 

(c) A change in the composition of the Board,
which results in fewer than a majority of the directors being “Incumbent Directors.” For purpose of this provision,
“Incumbent Directors” shall mean directors who either (i) are directors as of the Effective Date, or (ii) are
elected, or nominated for election, to the Board with the affirmative votes of at least a majority of those directors whose election
or nomination was not in connection with any transactions described above or in connection with an actual or threatened proxy contest
relating to election.

 

5.5 Voluntary Resignation. If the Executive
terminates his employment voluntarily, then the Executive shall not be entitled to receive payment of any severance benefits. The
Company further shall have the option, in its sole discretion, to make the Executive’s termination effective at any time
prior to the end of notice period required under Section 5.1.2 as long as the Company provides Executive with all compensation
to which he would be entitled for continuing employment through the last day of the notice period. Thereafter, all obligations
of the Company under this Agreement shall cease.

 

5.6 Cause. Termination for “Cause”
means termination of the Executive’s employment by the Company because of:

 

(i) any act or omission that constitutes a
breach by the Executive of any of his obligations under this Agreement or any Company policy or procedure and failure to cure such
breach after notice of, and a reasonable opportunity to cure, such breach;

 

(ii) the continued willful failure or refusal
of the Executive to substantially perform the duties reasonably required of him as an employee of the Company;

 

(iii) an alleged act (with credible substantiated
evidence) of moral turpitude, dishonesty, fraud or violation of law (whether or not connected to the Company or its Affiliates
(as defined in Section 8.1)) by, or criminal conviction of, the Executive which in the determination of the Board (in its
sole discretion) would render his continued employment by the Company damaging or detrimental to the Company or its Affiliates
in any way; or

 

(iv) any misappropriation of Company property
by the Executive.

 

    -3-

     

    

 

5.7 Release of Claims. The receipt of
any severance payments pursuant to Sections 5.3 or 5.4 of this Agreement is subject to the Executive signing and not revoking a
separation agreement and release of claims in a form reasonably acceptable to the Company (the “Release”), which
must become effective and irrevocable no later than the 60th day following the date of Executive’s termination
of employment (the “Release Deadline”), and if not, the Executive will forfeit any right to severance payments
or benefits under this Agreement. In addition, no severance payments or benefits will be paid or provided until the Release actually
becomes effective. To the extent that any severance payments or benefits constitute Deferred Payments (as defined below), severance
payments shall commence on the 61st day following Executive’s termination of employment, subject to Section 5.8.

 

5.8 Section 409A. The Company intends
that all severance payments made under this Agreement comply with, or be exempt from, the requirements of Section 409A of the Internal
Revenue Code of 1986, as amended, and any guidance promulgated thereunder (“Section 409A”) so that none of the
payments or benefits will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms herein
will be interpreted to so comply or be exempt. Specifically, the severance benefits are intended to be exempt from the requirements
of Section 409A under the separation pay plan exception set forth under Section 409A. If, at the time of the Executive’s
separation from service, the Executive is a “specified employee” within the meaning of Section 409A and the severance
benefits payable under this Agreement, when considered together with any other severance payments or separation benefits, are considered
deferred compensation under Section 409A (together, the “Deferred Payments”), payment of such Deferred Payments
will be delayed to the extent necessary to avoid the imposition of the additional tax imposed under Section 409A, which generally
means that Executive will begin to receive payments on the date 6 months and 1 day following the Executive’s separation from
service. The Company and the Executive agree to work together in good faith to consider amendments to this Agreement and to take
such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition
prior to actual payment to you under Section 409A. In no event will the Company reimburse the Executive for any taxes that may
be imposed on Executive as a result of Section 409A.

 

	6. 	DEATH OR DISABILITY

 

In the event of termination of employment by
reason of non-work-related death or Permanent Disability, the Executive (or his estate, as applicable) will be entitled to the
Base Salary and benefits determined under Sections 3 and 4 through the date of termination. In the event of termination
of employment by reason of work related death or Permanent Disability, the Executive (or his estate, as applicable) will be entitled
to the greater of (i) Base Salary and benefits determined under Sections 3 and 4 through the date of termination, or (ii) the minimum
compensation permitted by applicable law. Other benefits will be determined in accordance with the benefit plans maintained by
the Company, and the Company will have no further obligation hereunder. For purposes of this Agreement, “Permanent Disability”
means a physical or mental disability or infirmity of the Executive that prevents the normal performance of substantially all his
duties as an employee of the Company, which disability or infirmity exists for any continuous period of 180 days.

 

	7. 	CONFIDENTIALITY

 

7.1 Confidentiality. The Executive covenants
and agrees with the Company that he will not at any time during the Term of Employment and thereafter, except in performance of
his obligations to the Company hereunder or with the prior written consent of the Company, directly or indirectly, disclose any
secret or confidential information that he may learn or has learned by reason of his association with the Company or any of its
subsidiaries and Affiliates. The term “confidential information” includes information not previously made generally
available to the public or to the trade by the Company’s management, with respect to the Company’s or any of its subsidiaries’
or Affiliates’ products, facilities, applications and methods, trade secrets and other intellectual property, systems, procedures,
manuals, confidential reports, product price lists, customer lists, technical information, financial information (including the
revenues, costs or profits associated with any of the Company’s products), business plans, prospects or opportunities, but
will exclude any information which is or becomes generally available to the public or is generally known in the industry or industries
in which the Company operates other than as a result of disclosure by the Executive in violation of his agreements under Section
7.1. The Executive will be released of his obligations under this Section 7.1 to the extent the Executive is required
to disclose under any applicable laws, regulations or directives of any government agency, tribunal or authority having jurisdiction
in the matter or under subpoena or other process of law provided that the Executive provides the Company with prompt written notice
of such requirement. For the purposes of this Agreement, “Affiliate” means, with respect to any person or entity,
any other person or entity that is directly or indirectly through one or more intermediaries, controlled by, controlling or under
common control with such person or entity.

 

    -4-

     

    

 

7.2 Acknowledgment of Company Assets.
The Executive acknowledges that the Company, at the Company’s expense, has acquired, created and maintains, and will continue
to acquire, create and maintain, significant goodwill with its current and prospective customers, vendors and employees, and that
such goodwill is valuable property of the Company. The Executive further acknowledges that to the extent such goodwill will be
generated through the Executive’s efforts, such efforts will be funded by the Company and the Executive will be fairly compensated
for such efforts. The Executive acknowledges that all goodwill developed by the Executive relative to the Company’s customers,
vendors and employees will be the sole and exclusive property of the Company and will not be personal to the Executive.

 

7.3 Exclusive Property. The Executive
confirms that all confidential information is and will remain the exclusive property of the Company. All business records, papers
and documents kept or made by Executive relating to the business of the Company will be and remain the property of the Company,
except for such papers customarily deemed to be the personal copies of the Executive. Upon termination of the Executive’s
employment with the Company for any reason, the Executive will promptly deliver to the Company all of the following that are in
the Executive’s possession or under his control: (i) all computers, telecommunication devices and other tangible property
of the Company and its Affiliates, and (ii) all documents and other materials, in whatever form, which include confidential information
or which otherwise relate in whole or in part to the present or prospective business of the Company or its Affiliates, including
but not limited to, drawings, graphs, charts, specifications, notes, reports, memoranda, and computer disks and tapes, and all
copies thereof.

 

7.4 Communication to Third Parties.
The Executive agrees that Company will have the right to communicate the terms of this Section 7 to any third parties, including
but not limited to, any prospective employer of the Executive. The Company waives any right to assert any claim for damages against
Company or any officer, employee or agent of Company arising from such disclosure of the terms of this Section 7.

 

7.5 Independent Obligations. The provisions
of this Section 7 will be independent of any other provision of this Agreement. The existence of any claim or cause of action
by the Executive against the Company, whether predicated on this Agreement or otherwise, will not constitute a defense of the enforcement
of this Section 7 by the Company.

 

7.6 Non-Exclusivity. The Company’s
rights and the Executive’s obligations set forth in this Section 7 are in addition to, and not in lieu of, all rights
and obligations provided by applicable statutory or common law.

 

	8. 	INDEMNIFICATION

 

8.1 Indemnification of the Executive.
The Company agrees to indemnify Executive (and his heirs, executors, and administrators), and to advance expenses related to this
indemnification, to the fullest extent permitted under applicable law and regulations, against any and all expenses and liabilities
that Executive reasonably incurs in connection with or arising out of any action, suit, or proceeding in which he may be involved
by reason of his service as an Executive of the Company or any of its subsidiaries or Affiliates (whether or not he continues to
be an Executive at the time of incurring any such expenses or liabilities). Covered expenses and liabilities include, but are not
limited to, judgments, court costs, and attorneys’ fees and the costs of reasonable settlements, subject to Board approval,
if the action is brought against Executive in his capacity as an Executive of the Company or any of its subsidiaries or Affiliates.
Indemnification for expenses will not extend to matters related to Executive’s termination for Cause. Notwithstanding anything
in this Section 8.1 to the contrary, the Company will not be required to provide indemnification prohibited by applicable
law or regulation. The obligations of this Section 8.1 will survive the term of this Agreement by a period of six (6) years.

 

    -5-

     

    

 

8.2 Indemnification of the Company.

 

The Executive will indemnify and keep the Company
fully indemnified at all times from and against all claims, suits, proceedings, fines, punishment, loss, damage, costs and liabilities
whatsoever incurred or sustained by the Company in connection with or arising out of or as a consequence of any breach by the Executive
of the confidentiality obligations set forth above.

 

	9.	FOREIGN CORRUPT PRACTICES ACT 

 

The Company and the Executive each represent
and warrant that it is aware of and familiar with the provisions of the Foreign Corrupt Practices Act of 1977, as amended by the
Omnibus Trade and Competitiveness Act of 1988 (“FCPA”), and the rules and regulations thereunder, and its purpose.
Each party agrees that it will take no action and make no payment in violation of, or which might cause the Company or the Executive
to be in violation of, the FCPA, including, but not limited to, the making of unlawful payments to foreign or domestic government
officials or employees or to any foreign or domestic political parties or campaigns from corporate funds.

 

	10. 	MISCELLANEOUS 

 

10.1 Severability. The parties intend
this Agreement to be enforced as written. However, (i) if any portion or provision of this Agreement is to any extent be declared
illegal or unenforceable by a duly authorized court having jurisdiction, then the remainder of this Agreement, or the application
of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, will not
be affected thereby, and each portion and provision of this Agreement will be valid and enforceable to the fullest extent permitted
by law and (ii) if any provision, or part thereof, is held to be unenforceable because of the duration of such provision, the geographic
area covered thereby, or other aspect of the scope of such provision, the court making such determination will have the power to
reduce the duration, geographic area of such provision, or other aspect of the scope of such provision, and/or to delete specific
words and phrases (“blue-penciling”), and in its reduced or blue-penciled form, such provision will then be
enforceable and will be enforced.

 

10.2 Assignment. The rights and obligations
of this Agreement will bind and inure to the benefit of any successor of the Company by reorganization, merger or consolidation,
or any assignee of all or substantially all of the Company’s business and properties. Neither this Agreement nor any rights
hereunder will be assignable or otherwise subject to hypothecation by the Executive.

 

10.3 Entire Agreement. This Agreement
represents the entire agreement of the Company and the Executive and will supersede any and all previous contracts, arrangements
or understandings.

 

10.4 Governing Law. This Agreement will
be construed and interpreted in accordance with and governed by the law of the State of Delaware, USA, without regard to the choice-of-law
provisions thereof that might direct the application of the law of another jurisdiction.

 

10.5 Dispute Resolution. Any legal action
or proceeding with respect to this Agreement shall be brought in the courts of Delaware, or the United States District Court for
the District of Delaware. By execution and delivery of this Agreement, each of the parties hereto accepts for itself and in respect
of its property, generally and unconditionally, the exclusive jurisdiction of the aforesaid courts.

 

[SIGNATURE PAGE FOLLOWS]

 

    -6-

     

    

 

IN WITNESS WHEREOF, the Executive and the authorized
representative of China Biologic Products, Inc., execute and enter into this Agreement as of the date first written above.

 

	 	EXECUTIVE
	 	 	 
	 	/s/ David Gao
	 	Mr. Xiaoying (David) Gao 
	 	Passport No. 
	 	 	 
	 	CHINA BIOLOGIC PRODUCTS, INC.
	 	 	 
	 	By:	/s/ Ming Yang
	 	Name: Ming Yang
	 	Title: EVP and CFO
	 	Date: August 4, 2016

 

    -7-arex-ex44_324.htm

Exhibit 4.4

AGREEMENT OF RESIGNATION, APPOINTMENT AND ACCEPTANCE (the “Agreement”), dated as of April 28, 2016 by and among Approach Resources Inc. duly organized and existing under the laws of the State of Delaware and having its principal office at One Ridgmar Centre, 6500 West Freeway, Suite 800, Fort Worth, Texas 76116 (the “Company”), Wells Fargo Bank, National Association, a national banking association duly organized and existing under the laws of the United States of America and having a corporate trust office at 750 North St. Paul Place, Suite 1750, Dallas, Texas 75201 (“Resigning Trustee”) and Wilmington Trust, National Association, a national banking association duly organized and existing under the laws of the United States of America and having a corporate trust office at 15950 North Dallas Parkway, Suite 550, Dallas, Texas 75248 (“Successor Trustee”).

RECITALS:

WHEREAS, there are currently $230,320,000 aggregate principal amount of the Company’s 7.00% Senior Notes due 2021 (the “Securities”) outstanding under an Indenture, dated as of June 11, 2013, and the First Supplemental Indenture dated as of June 11, 2013, by and between the Company and Resigning Trustee (the “Indenture”);

WHEREAS, the Company appointed Resigning Trustee as the trustee (the "Trustee"), security registrar (the "Registrar") paying agent (the "Paying Agent") and custodian of the Global Note (the “Custodian”)  under the Indenture;

WHEREAS, Section 710 of the Indenture provides that the Trustee may at any time resign with respect to the Securities by giving written notice of such resignation to the Company, effective upon the acceptance by a successor Trustee of its appointment as a successor Trustee;

WHEREAS, Section 710 of the Indenture provides that, if the Trustee shall resign, the Company, by a Board Resolution, shall appoint a successor Trustee;

WHEREAS, Section 711 of the Indenture provides that any successor Trustee appointed in accordance with the Indenture shall execute, acknowledge and deliver to the Company and to the Resigning Trustee an instrument accepting such appointment under the Indenture, and thereupon the resignation of the Resigning Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all rights, powers, duties and obligations of the Resigning Trustee;

 

 

WHEREAS, the Resigning Trustee has given written notice to the Company that it is resigning as Trustee, Registrar, Paying Agent and Custodian under the Indenture;

WHEREAS, the Company desires to appoint Successor Trustee as successor Trustee, Registrar, Paying Agent and Custodian to succeed Resigning Trustee in such capacities under the Indenture; and

WHEREAS, Successor Trustee is willing to accept such appointment as successor Trustee, Registrar, Paying Agent and Custodian under the Indenture;

NOW, THEREFORE, the Company, Resigning Trustee and Successor Trustee, for and in consideration of the premises and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby consent and agree as follows:

1

THE RESIGNING TRUSTEE

1.1Pursuant to Section 710 of the Indenture, Resigning Trustee has by letter notified the Company that Resigning Trustee is resigning as Trustee, Registrar, Paying Agent and Custodian under the Indenture.

1.2Resigning Trustee hereby represents and warrants to Successor Trustee that:

	
 
	
(a)
	
The Indenture, and each amendment and supplemental indenture thereto, if any, was validly and lawfully executed and delivered by the Resigning Trustee and is in full force and effect.

	
 
	
(b)
	
No other amendments or supplemental indentures have been executed except for the First Supplemental Indenture, dated as of June 11, 2013.

	
 
	
(b)
	
No covenant or condition contained in the Indenture has been waived by Resigning Trustee or, to the best knowledge of Responsible Officers, by the Holders of the percentage in aggregate principal amount of the Securities required by the Indenture to effect any such waiver.

	
 
	
(c)
	
To the best knowledge of Responsible Officers, there is no action, suit or proceeding pending or threatened against Resigning Trustee before any 

2

 

 

	
 
		
court or any governmental authority arising out of any act or omission of Resigning Trustee as Trustee under the Indenture. 

	
 
	
(d)
	
As of the Second Effective Date of this Agreement, Resigning Trustee will hold no moneys or property under the Indenture.

	
 
	
(e)
	
Pursuant to Section 401 of the Indenture, Resigning Trustee has duly authenticated and delivered $250,000,000 aggregate principal amount of Securities, $230,320,000 of which are outstanding as of the Effective Date hereof and interest has been paid through the most recent date on which interest is required to be paid in accordance with the terms of such Securities.

	
 
	
(f)
	
The registers in which it has registered and transferred registered Securities accurately reflect the amount of Securities issued and outstanding and the amounts payable thereon.

	
 
	
(g)
	
Each person who so authenticated the Securities was duly elected, qualified and acting as an officer or authorized signatory of Resigning Trustee and empowered to authenticate the Securities at the respective times of such authentication and the signature of such person or persons appearing on such Securities is each such person’s genuine signature.

	
 
	
(h)
	
This Agreement has been duly authorized, executed and delivered on behalf of Resigning Trustee and constitutes its legal, valid and binding obligation, enforceable in accordance with its terms, except as the enforceability of this Agreement may be limited by bankruptcy, insolvency or other similar laws of general application affecting the enforcement of creditor’s rights or by general principles of equity limiting the availability of equitable remedies.

 

	
 
	
(i)
	
No Responsible Officer has received notice from the Company or any Holder that a default or Event of Default has occurred and is continuing, 

3

 

 

	
 
		
and no Responsible Officer has actual knowledge that a default or Event of Default has occurred and is continuing under the Indenture. 

1.3Effective as of the First Effective Date, Resigning Trustee hereby assigns, transfers, delivers and confirms to Successor Trustee all right, title and interest of Resigning Trustee in and to the trust under the Indenture and all the rights, powers, trusts and duties of the Trustee under the Indenture.    Resigning Trustee shall execute and deliver such further instruments and shall do such other things as Successor Trustee may reasonably require so as to more fully and certainly vest and confirm in Successor Trustee all the rights, powers, trusts and duties hereby assigned, transferred, delivered and confirmed to Successor Trustee as Trustee, Registrar, Paying Agent and Custodian.

1.4Resigning Trustee shall deliver to Successor Trustee, as of or promptly after the First Effective Date hereof, all of the originals, if available, or copies of all documents, materials, information and reports as more fully described and listed on Exhibit A hereto (the “Information”).  The Resigning Trustee further agrees that it will, upon reasonable request of Successor Trustee promptly (a) provide to Successor Trustee any additional information (other than with respect to internal or privileged information) in the possession of the Resigning Trustee relating to the Company, applicable Guarantors, the Notes or any Indenture and (b) reasonably cooperate with Successor Trustee to resolve any issues that arise with respect to the Information.

Successor Trustee shall be entitled to conclusively rely on such Information for all purposes, without further inquiry, verification or independent investigation of any kind, including without limitation for purposes of carrying out its obligations as Trustee and in every other capacity. In addition, Successor Trustee shall have no liability for any failure, inability or delay on its part in performing or observing any duties, obligations or responsibilities in its capacity as a successor hereunder due to or resulting from (a) any delay, failure or inability on the part of the Resigning Trustee in delivering any of the Information and other supplementary materials, or any other deliverable required to be delivered by the Resigning Trustee to Successor Trustee hereunder or (b) any error, inaccuracy or defect contained in such Information.

4

 

 

2

THE COMPANY

2.1The Company hereby accepts the resignation of Resigning Trustee as Trustee, Registrar, Paying Agent and Custodian under the Indenture.

2.2(a) Effective as of the First Effective Date, the Company hereby appoints Successor Trustee as Trustee under the Indenture to succeed to, and hereby vests Successor Trustee with, all the rights, powers, trusts and duties of Resigning Trustee under the Indenture with like effect as if originally named as Trustee under the Indenture. (b) Effective as of the Second Effective Date, the Company hereby appoints Successor Trustee as Registrar, Paying Agent and Custodian.

2.3Promptly after the First Effective Date of this Agreement, the Company shall cause a notice, substantially in the form of Exhibit B annexed hereto, to be sent to each Holder of the Securities in accordance with the provisions of Section 206 of the Indenture. 

2.4The Company hereby represents and warrants to Resigning Trustee and Successor Trustee in respect of the Indenture that:

	
 
	
(a)
	
The Company is a corporation duly and validly organized and existing under the laws of the State of Delaware.

	
 
	
(b)
	
No other amendments or supplemental indentures have been executed except for the First Supplemental Indenture, dated as of June 11, 2013.

	
 
	
(b)
	
The Indenture, and each amendment or supplemental indenture thereto, if any, was validly and lawfully executed and delivered by the Company and is in full force and effect and the Securities were validly issued by the Company.

	
 
	
(c)
	
The Company has performed or fulfilled prior to the date hereof, each covenant, agreement, condition, obligation and responsibility under the Indenture.

5

 

 

	
 
	
(d)
	
No event has occurred and is continuing which is, or after notice or lapse of time is reasonably foreseeable to become, an Event of Default under the Indenture. 

	
 
	
(e)
	
No covenant or condition contained in the Indenture has been waived by the Company or, to the best of the Company’s knowledge, by Holders of the percentage in aggregate principal amount of the Securities required to effect any such waiver.

	
 
	
(f)
	
There is no action, suit or proceeding pending or, to the best of the Company’s knowledge, threatened against the Company before any court or any governmental authority arising out of any act or omission of the Company under the Indenture.

	
 
	
(g)
	
The Company has, by a resolution which was duly adopted by the Board of Directors of the Company, and which is in full force and effect on the date hereof, authorized certain officers of the Company to:  (a) accept Resigning Trustee’s resignation as Trustee, Registrar and Paying Agent under the Indenture; (b) appoint Successor Trustee as Trustee, Registrar and Paying Agent under the Indenture; and (c) execute and deliver such agreements, including, without limitation, this Agreement and other instruments as may be necessary or desirable to effectuate the succession of Successor Trustee as Trustee, Registrar and Paying Agent under the Indenture. Furthermore, this Agreement has been duly authorized, executed and delivered on behalf of the Company and constitutes its legal, valid and binding obligation, enforceable in accordance with its terms, except as the enforceability of this Agreement may be limited by bankruptcy, insolvency or other similar laws of general application affecting the enforcement of creditor’s rights or by general principles of equity limiting the availability of equitable remedies.

	
 
	
 (h)
	
All conditions precedent relating to the appointment of Wilmington Trust, National Association as successor Trustee under the Indenture have been complied with by the Company.

6

 

 

The Company shall execute and deliver such further instruments and shall do such other things as Successor Trustee may reasonably require so as to more fully and certainly vest and confirm in Successor Trustee all the rights, powers, trusts, privileges, immunities, duties and obligations hereby assigned, transferred, delivered and confirmed to Successor Trustee as Trustee, Registrar, Paying Agent and Custodian under the Indenture.

3

THE SUCCESSOR TRUSTEE

3.1Successor Trustee hereby represents and warrants to Resigning Trustee and to the Company that:

	
 
	
(a)
	
Successor Trustee is not disqualified under the provisions of Section 709 and is eligible under the provisions of Section 709 of the Indenture to act as Trustee under the Indenture.

	
 
	
(b)
	
This Agreement has been duly authorized, executed and delivered on behalf of Successor Trustee and constitutes its legal, valid and binding obligation, enforceable in accordance with its terms, except as the enforceability of this Agreement may be limited by bankruptcy, insolvency or other similar laws of general application affecting the enforcement of creditor’s rights or by general principles of equity limiting the availability of equitable remedies.

3.2Effective as of the First Effective Date, Successor Trustee hereby accepts its appointment as successor Trustee under the Indenture and accepts the rights, powers, trusts and duties of Resigning Trustee as Trustee under the Indenture, upon the terms and conditions set forth therein, with like effect as if originally named as Trustee under the Indenture.  Effective as of the Second Effective Date, Successor Trustee hereby accepts its appointment as successor Registrar, Paying Agent and Custodian under the Indenture and accepts the rights, powers and duties as Registrar, Paying Agent and Custodian under the Indenture, upon the terms and conditions set forth therein, with like effect as if originally named as Registrar, Paying Agent and Custodian under the Indenture.

7

 

 

3.3References in the Indenture to “Office of the Trustee”, “Corporate Trust Office” or other similar terms shall be deemed to refer to the designated corporate trust office of Successor Trustee, which is presently located at 15950 North Dallas Parkway, Suite 550, Dallas, Texas 75248. 

4

MISCELLANEOUS

4.1Except as otherwise expressly provided herein or unless the context otherwise requires, all terms used herein which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

4.2This Agreement and the resignation, appointment and acceptance effected hereby shall be effective as of the opening of business on April 28, 2016 (the “First Effective Date”); provided, however, that the appointment of the Successor Trustee as Paying Agent, Registrar and Custodian shall be effective as of May 9, 2016(the “Second Effective Date”).

4.3This Agreement does not constitute a waiver or assignment by any of the parties hereto of any obligation or liability which Resigning Trustee may have incurred in connection with its serving as Trustee, Paying Agent, Registrar and Custodian under the Indenture prior to the First Effective Date or Second Effective Date, as applicable, and does not constitute an assumption by Successor Trustee of any liability of Resigning Trustee arising out of any action or inaction of Resigning Trustee, including the performance (or non-performance) of its duties or exercise (or non-exercise) of its rights under the Indenture.  Nothing herein shall be construed to transfer or impose upon Successor Trustee any of the obligations, duties, responsibilities or trusts arising or existing prior to the First Effective Date or Second Effective Date, as applicable, or any liabilities of the Resigning Trustee or obligations of the Resigning Trustee to be performed prior to the First Effective Date or Second Effective Date, as applicable (whether in its capacity as predecessor in any of such capacities or otherwise arising from any actions or omissions of the Wells Fargo Bank, N.A.).

4.4Resigning Trustee hereby acknowledges payment or provision for payment in full by the Company of compensation for all services rendered by Resigning Trustee in its capacity as Trustee, Registrar, Paying Agent and Custodian under applicable provision of the Indenture 

8

 

 

and reimbursement in full by the Company of the expenses, disbursements and advances incurred or made by Resigning Trustee in its capacity as Trustee, Registrar, Paying Agent and Custodian in accordance with the provisions of the Indenture.  This Agreement does not constitute a waiver or assignment by the Resigning Trustee of any compensation, reimbursement, expenses or indemnity to which it is or may be entitled pursuant to the Indenture.  The Company acknowledges its obligation set forth in the applicable provision of the Indenture to indemnify Resigning Trustee for, and to hold Resigning Trustee harmless against, any loss, liability or expense incurred without gross negligence or bad faith on the part of Resigning Trustee and arising out of or in connection with the acceptance or administration of the trust evidenced by the Indenture. 

4.5This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles thereof.

4.6This Agreement may be executed in any number of counterparts each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.  The exchange of copies of this Agreement and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Agreement as to the parties hereto and may be used in lieu of the original Agreement for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

4.7The Company acknowledges that, in accordance with Section 326 of the USA Patriot Act, Successor Trustee, in order to help fight the funding of terrorism and prevent money laundering, is required to obtain, verify and record information that identifies each person or legal entity that establishes a relationship or opens an account with Successor Trustee.  The Company agrees that it will provide Successor Trustee with such information as it may request in order for Successor Trustee to satisfy the requirements of the USA Patriot Act.

4.8This Agreement sets forth the entire agreement of the parties with respect to its subject matter, and supersedes and replaces any and all prior contemporaneous warranties, representations or agreements, whether oral or written, with respect to the subject matter of this Agreement other than those contained in this Agreement.

9

 

 

4.9The Company, Resigning Trustee and Successor Trustee hereby acknowledge receipt of an executed counterpart of this Agreement and the effectiveness thereof. 

4.11Unless otherwise provided herein, all notices, requests and other communications to any party hereunder shall be in writing (including facsimile and electronic transmission in PDF format) and shall be given to such party, addressed to it, as set forth below:

 

If to the Company: 

 

Approach Resources Inc.

6500 West Freeway, Suite 800

Fort Worth, TX 76116

Attention:J. Curtis Henderson

Facsimile: 817-989-9001

Email: chenderson@approachresources.com

 

 

If to Resigning Trustee:

 

Wells Fargo Bank, National Association 

750 N St. Paul Place, Suite 1750

Dallas, Texas 75201

Attention: John C. Stohlmann

Facsimile:  214-756-7401      

Email: john.stohlmann@wellsfargo.com  

 

 

If to Successor Trustee:

Wilmington Trust, National Association
15950 N. Dallas Parkway, Suite 550

Dallas, TX 75244
Attn: Approach Resources Inc. Administrator

Email: sgoffinet@wilmingtontrust.net

 

 

[Signature pages to follow]

10

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, all as of the day and year first above written.

		
	
 
	
APPROACH RESOURCES INC.

	
 
	
 

	
 
	
By:/s/ Josh Dazey

	
 
	
Name:  Josh Dazey
Title:  Vice President and General Counsel

	
 
	
 

	
 
	
Wells Fargo Bank, National Association,

	
 
	
as Resigning Trustee

	
 
	
 

	
 
	
By:/s/ John C. Stohlmann

	
 
	
Name: John C. Stohlmann
Title: Vice President

	
 
	
 

	
 
	
Wilmington Trust, National Association, 

	
 
	
as Successor Trustee

	
 
	
 

	
 
	
 

	
 
	
By:/s/ Shawn Goffinet

	
 
	
Name: Shawn Goffinet
Title: Assistant Vice President

	
 
	
 

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}]]