Document:

Exhibit

Exhibit 4.1

WESTERN GAS PARTNERS, LP, 
as Issuer 
 
$400,000,000 4.750% SENIOR NOTES DUE 2028

$350,000,000 5.500% SENIOR NOTES DUE 2048
 
 
TENTH
 
SUPPLEMENTAL

INDENTURE

 
Dated as of August 9, 2018 
 
 
WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Trustee

TABLE OF CONTENTS

	
					
	ARTICLE I
	 
	1

	 
	Section 1.01.
	Establishment
	1

	 
	 
	 
	 
	 

	ARTICLE II DEFINITIONS AND INCORPORATION BY REFERENCE
	2

	 
	Section 2.01.
	Definitions
	2

	 
	Section 2.02.
	Other Definitions
	5

	 
	 
	 
	 
	 

	ARTICLE III THE NOTES
	 
	6

	 
	Section 3.01.
	Form
	6

	 
	Section 3.02.
	Issuance of Additional Notes
	6

	 
	Section 3.03.
	Global Security Legend
	6

	 
	 
	 
	 

	ARTICLE IV REDEMPTION AND PREPAYMENT
	 
	7

	 
	Section 4.01.
	Optional Redemption
	7

	 
	 
	 
	 

	ARTICLE V COVENANTS
	 
	8

	 
	Section 5.01.
	Limitations on Liens
	8

	 
	Section 5.02.
	Restriction of Sale-Leaseback Transactions
	10

	 
	Section 5.03.
	Reports
	11

	 
	Section 5.04.
	Future Subsidiary Guarantors
	11

	 
	Section 5.05.
	Consolidation, Merger, Conveyance or Transfer of Subsidiary Guarantors
	11

	 
	 
	 
	 

	ARTICLE VI SUCCESSORS
	 
	12

	 
	Section 6.01.
	Consolidation and Mergers of the Partnership
	12

	 
	 
	 
	 

	ARTICLE VII LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	 
	13

	 
	Section 7.01.
	Covenant Defeasance
	13

	 
	 
	 
	 

	ARTICLE VIII FUTURE GUARANTEES
	 
	13

	 
	Section 8.01.
	Release of Guarantees
	13

	 
	 
	 
	 

	ARTICLE IX MISCELLANEOUS
	 
	13

	 
	Section 9.01.
	Integral Part
	13

	 
	Section 9.02.
	Adoption, Ratification and Confirmation
	13

	 
	Section 9.03.
	Counterparts
	14

	 
	Section 9.04.
	The Trustee
	14

	 
	Section 9.05.
	Governing Law
	14

	
		
	EXHIBIT A-1:
	Form of Global Security – 4.750% Senior Notes due 2028

	EXHIBIT A-2:
	Form of Global Security – 5.500% Senior Notes due 2048

	EXHIBIT B:
	Form of Notation of Guarantee

-i-

TENTH SUPPLEMENTAL INDENTURE dated as of August 9, 2018 (this “Supplemental Indenture”) between WESTERN GAS PARTNERS, LP, a Delaware limited partnership (the “Partnership”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the “Trustee”).
W I T N E S S E T H:
WHEREAS, the Partnership and certain subsidiaries of the Partnership have heretofore entered into an Indenture, dated as of May 18, 2011 (the “Base Indenture”), with Wells Fargo Bank, National Association, as trustee; 
WHEREAS, the Base Indenture, as supplemented by this Supplemental Indenture, is herein called the “Indenture”;
WHEREAS, under the Base Indenture, one or more new series of Debt Securities may at any time be established by the Board of Directors of the general partner of the Partnership in accordance with the provisions of the Base Indenture and the form and terms of any such series may be established by a supplemental indenture executed by the Partnership and the Trustee; 
WHEREAS, the Partnership proposes to create under the Indenture two new series of Debt Securities;
WHEREAS, additional Debt Securities of other series hereafter established, except as may be limited in the Base Indenture as at the time supplemented and modified, may be issued from time to time pursuant to the Base Indenture as at the time supplemented and modified; and
WHEREAS, all conditions necessary to authorize the execution and delivery of this Supplemental Indenture and to make it a valid and binding obligation of the Partnership have been done or performed.  
NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:
ARTICLE I
        
Section 1.01.    Establishment.   (a) There are hereby established two new series of Debt Securities to be issued under the Indenture, to be designated as (i) the Partnership’s 4.750% Senior Notes due 2028 (the “2028 Notes”) and (ii) the Partnership’s 5.500% Senior Notes due 2048 (the “2048 Notes” and, together with the 2028 Notes, the “Notes”).  

(b)      There are to be authenticated and delivered $400,000,000 aggregate principal amount of 2028 Notes and $350,000,000 aggregate principal amount of 2048 Notes on the date hereof, and from time to time thereafter there may be authenticated and delivered an unlimited principal amount of Additional Notes.  

(c)     The 2028 Notes and the 2048 Notes shall be issued initially in the form of Global Securities, in substantially the form set out in Exhibit A-1 and Exhibit A-2 hereto, respectively. The Depositary with respect to the Notes shall be The Depository Trust Company. 
(d)     Each Note shall be dated the date of authentication thereof and shall bear interest from the date of original issuance thereof or from the most recent date to which interest has been paid or duly provided for.  
(e)     If and to the extent that the provisions of the Base Indenture are duplicative of, or in contradiction with, the provisions of this Supplemental Indenture, the provisions of this Supplemental Indenture shall govern.
(f)        Unless the context indicates otherwise, the word “will” expresses a command.
ARTICLE II
DEFINITIONS AND INCORPORATION BY REFERENCE

Section 2.01.    Definitions.   All capitalized terms used herein and not otherwise defined below shall have the meanings ascribed thereto in the Base Indenture.  The following are additional definitions used in this Supplemental Indenture:

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the applicable Person to have been duly adopted by the Board of Directors of such Person and to be in full force and effect on the date of such certification, and delivered to the Trustee.
“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed, calculated as if the maturity date of the Notes of such series were the applicable Par Call Date (the “Remaining Life”) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of such Notes; provided, however, that if no maturity is within three months before or after the applicable Par Call Date, yields for the two published maturities most closely corresponding to such United States Treasury security shall be determined and the Treasury Rate will be interpolated or extrapolated from those yields on a straight line basis rounding to the nearest month.
“Comparable Treasury Price” means, with respect to any redemption date for Notes, (1) the average of four Reference Treasury Dealer Quotations for such redemption date after excluding the highest and lowest of all of the Reference Treasury Dealer Quotations or (2) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.
“Consolidated Net Tangible Assets” means at any date of determination, the total amount of consolidated assets of the Partnership and its Subsidiaries after deducting therefrom (1) all current liabilities (excluding (a) any current liabilities that by their terms are extendable or renewable at 

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the option of the obligor thereon to a time more than 12 months after the time as of which the amount thereof is being computed and (b) current maturities of long-term debt), and (2) the value (net of any applicable reserves) of all goodwill, trade names, trademarks, patents and other like intangible assets, all as set forth, or on a pro forma basis would be set forth, on the consolidated balance sheet of the Partnership and its Subsidiaries for the most recently completed fiscal quarter, prepared in accordance with generally accepted accounting principles in the United States.
“Debt” of any Person means, without duplication, (1) all indebtedness of such Person for borrowed money (whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof), (2) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (3) all obligations of such Person in respect of letters of credit or other similar instruments (or reimbursement obligations with respect thereto), other than standby letters of credit, performance bonds and other obligations issued by or for the account of such Person in the ordinary course of business, to the extent not drawn or, to the extent drawn, if such drawing is reimbursed not later than the third Business Day following demand for reimbursement, (4) all obligations of such Person to pay the deferred and unpaid purchase price of property or services, except trade payables and accrued expenses incurred in the ordinary course of business, (5) all capitalized lease obligations of such Person, (6) all Debt of others secured by a Lien on any asset of such Person, whether or not such Debt is assumed by such Person (provided that if the obligations so secured have not been assumed in full by such Person or are not otherwise such Person’s legal liability in full, then such obligations shall be deemed to be in an amount equal to the greater of (a) the lesser of (i) the full amount of such obligations and (ii) the fair market value of such assets, as determined in good faith by the Board of Directors of such Person, which determination shall be evidenced by a Board Resolution, and (b) the amount of obligations as have been assumed by such Person or which are otherwise such Person’s legal liability), and (7) all Debt of others (other than endorsements in the ordinary course of business) guaranteed by such Person to the extent of such guarantee.
“guarantee” means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary course of business, direct or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of any Debt. When used as a verb, “guarantee” has a correlative meaning.
“Guarantee” means any guarantee by a Subsidiary Guarantor of the Partnership’s obligations under the Indenture and on the Notes.
“obligations” means any principal, premium, if any, interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization, whether or not a claim for post-filing interest is allowed in such proceeding), penalties, fees, charges, expenses, indemnifications, reimbursement obligations, damages, guarantees, and other liabilities or amounts payable under the documentation governing any Debt or in respect thereto.
“Par Call Date” means May 15, 2028 for the 2028 Notes (three months prior to the maturity date thereof) or February 15, 2048 for the 2048 Notes (six months prior to the maturity date thereof).

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“Person” means any individual, corporation, partnership, joint venture, joint stock company, association, trust, unincorporated organization, limited liability company, government or any agency or political subdivision thereof or any other entity.
“Primary Treasury Dealer” means a U.S. government securities dealer in The City of New York.
“Principal Property” means, whether currently owned or leased or subsequently acquired, any pipeline, gathering system, terminal, storage facility, processing plant or other plant or facility located in the United States of America or any territory or political subdivision thereof owned or leased by the Partnership or any of its Subsidiaries and used in the transportation, distribution, terminalling, gathering, treating, processing, marketing or storage of natural gas and natural gas liquids and propane except (1) any property or asset consisting of inventories, furniture, office fixtures and equipment (including data processing equipment), vehicles and equipment used on, or useful with, vehicles (but excluding vehicles that generate transportation revenues) and (2) any such property or asset, plant or terminal which, in the good faith opinion of the Board of Directors of the General Partner as evidenced by resolutions of the Board of Directors of the General Partner, is not material in relation to the activities of the Partnership and its Subsidiaries, taken as a whole.
“Principal Subsidiary” means any of the Partnership’s Subsidiaries that owns or leases, directly or indirectly, a Principal Property. 
“Quotation Agent” means the Reference Treasury Dealer appointed by the Partnership.
“Reference Treasury Dealer” means each of (i) Wells Fargo Securities, LLC and RBC Capital Markets, LLC and their respective successors so long as it is a Primary Treasury Dealer at the relevant time and, if it is not then a Primary Treasury Dealer, then a Primary Treasury Dealer selected by it, and (ii) a Primary Treasury Dealer selected by each of PNC Capital Markets LLC and U.S. Bancorp Investments, Inc. or their respective successors; provided that if any of the foregoing shall not be a Primary Treasury Dealer at such time and shall fail to select a Primary Treasury Dealer, then the Partnership will substitute therefor another Primary Treasury Dealer.
“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding the redemption date.
“Revolving Credit Facility” means the Third Amended and Restated Revolving Credit Agreement, dated as of February 15, 2018, among the Partnership, Wells Fargo Bank, National Association, as the administrative agent and the lenders party thereto, as amended, restated, refinanced, replaced or refunded from time to time.
“Sale-Leaseback Transaction” means the sale or transfer by the Partnership or any Principal Subsidiary of any Principal Property to a Person (other than the Partnership or a Principal Subsidiary) 

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and the taking back by the Partnership or any Principal Subsidiary, as the case may be, of a lease of such Principal Property.
“Subsidiary” means, as to any Person, (1) any corporation, association or other business entity (other than a partnership or limited liability company) of which more than 50% of the outstanding capital stock having ordinary voting power is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or (2) any general or limited partnership or limited liability company, (a) the sole general partner or member of which is the Person or a Subsidiary of the Person or (b) if there is more than one general partner or member, either (i) the only managing general partners or managing members of such partnership or limited liability company are such Person or Subsidiaries of such Person or (ii) such Person owns or controls, directly or indirectly, a majority of the outstanding general partner interests, member interests or other voting equities of such partnership or limited liability company, respectively.
“Subsidiary Guarantors” means any Subsidiary of the Partnership that becomes a Subsidiary Guarantor in accordance with the provisions of the Indenture.
“Treasury Rate” means, with respect to any redemption date, the rate per year equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. The Partnership shall calculate the Treasury Rate on the third Business Day preceding any redemption date and notify the Trustee in writing of the Treasury Rate prior to the redemption. 
Section 2.02.    Other Definitions.
	
					
	Term
	 
	 
	 
	Defined in Section

	 
	 
	 
	 
	 

	“2028 Notes”
	 
	 
	1.01(a)

	“2048 Notes”
	 
	 
	1.01(a)

	“Additional Notes”
	 
	 
	3.02

	“Base Indenture”
	 
	 
	Recitals

	“Exchange Act”
	 
	 
	5.03(a)

	“Indenture”
	 
	 
	Recitals

	“Lien”
	 
	 
	5.01

	“Notes”
	 
	 
	1.01(a)

	“Partnership”
	 
	 
	Preamble

	"SEC"
	 
	 
	5.03(a)

	“Supplemental Indenture”
	 
	 
	Preamble

	“Trustee”
	 
	 
	Preamble

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ARTICLE III
THE NOTES

Section 3.01.    Form.   The Notes shall be issued initially in the form of Global Securities.  The Notes will be issued in denominations of $2,000 and integral multiples of $1,000 in excess thereof.  The Notes and Trustee’s certificate of authentication shall be substantially in the form of Exhibit A-1 hereto in the case of the 2028 Notes or Exhibit A-2 hereto in the case of the 2048 Notes, in each case the terms of which are incorporated in and made a part of this Supplemental Indenture, and the Partnership and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.  To further evidence any future Guarantee that may be issued pursuant to Section 5.04 of this Supplemental Indenture, a notation relating to such Guarantee, substantially in the form attached hereto as Exhibit B, shall be endorsed on each Note authenticated and delivered by the Trustee and executed by either manual or facsimile signature of an officer of such Subsidiary Guarantor, or in the case of a Subsidiary Guarantor that is a limited partnership, an officer of the general partner of such Subsidiary Guarantor.
Section 3.02.    Issuance of Additional Notes.   The Partnership may, from time to time, without notice to or the consent of the Holders of either series of the Notes or the Trustee, increase the principal amount of either or both series of Notes under the Indenture and issue such increased principal amount (or any portion thereof), in which case any additional Notes (“Additional Notes”) so issued will have the same form and terms (other than the date of issuance, the price to the public and, under certain circumstances, the date from which interest thereon will begin to accrue and the initial interest payment date), and will carry the same right to receive accrued and unpaid interest, as the applicable Notes of such series previously issued, and such Additional Notes will form a single series with such Notes for all purposes under the Indenture.  
Section 3.03.    Global Security Legend.   Each Global Security shall bear a legend in substantially the following form:
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE PARTNERSHIP OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR 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 INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL 

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SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.
ARTICLE IV 
REDEMPTION AND PREPAYMENT

Section 4.01.    Optional Redemption.  
(a)     The Partnership may redeem the Notes of each series in whole or in part at any time before the applicable Par Call Date, at a redemption price equal to the greater of (1) 100% of the principal amount of the Notes of such series to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on such Notes that would have been due if such Notes matured on the applicable Par Call Date (exclusive of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 30 basis points (with respect to the 2028 Notes) or 40 basis points (with respect to the 2048 Notes), plus, in either case, accrued interest, if any, on the principal amount being redeemed to such redemption date. On or after the applicable Par Call Date, the applicable series of Notes will be redeemable and repayable, at the Partnership’s option, at any time in whole, or from time to time in part, at a price equal to 100% of the principal amount of the Notes of such series to be redeemed plus accrued interest on the Notes of such series to be redeemed to the date of redemption.
(b)     If fewer than all of the Notes of either series are to be redeemed at any time, the Notes of such series will be selected for redemption by the Trustee on a pro rata basis, by lot or by such other method as the Trustee deems appropriate (or, in the case of Notes represented by a Note in global form, by such method as DTC may require); provided, that no partial redemption of any Note will occur if such redemption would reduce the principal amount of such Note to less than $2,000.  Notices of redemption with respect to the Notes of either series shall be sent at least 15 but not more than 60 days before the redemption date to each holder of Notes of such series to be redeemed at its registered address.
(c)     If any Note is to be redeemed in part only, the notice of redemption that relates to such Note shall state the portion of the principal amount thereof to be redeemed. A new Note in principal amount equal to the unredeemed portion thereof will be issued in the name of the holder thereof upon cancellation of the original Note. Notes called for redemption will become due on the date fixed for redemption. Unless the Partnership defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the Notes or portions of the Notes called for redemption.
(d)     The provisions of Article III of the Base Indenture in respect of the Notes shall apply to any optional redemption of the Notes except when such provisions conflict with the foregoing.

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ARTICLE V
COVENANTS

The following covenants, in addition to the covenants set forth in Article IV of the Base Indenture, shall apply to the Notes:
Section 5.01.    Limitation on Liens.   While any of the Notes remain outstanding, the Partnership will not, and will not permit any of its Principal Subsidiaries to, create, or permit to be created or to exist, any mortgage, lien, pledge, security interest, charge, adverse claim, or other encumbrance (“Lien”) upon any Principal Property of the Partnership or any of its Principal Subsidiaries, or upon any equity interests of any Principal Subsidiary, whether such Principal Property is, or equity interests are, owned on or acquired after the date of the Indenture, to secure any Debt, unless the Notes then outstanding are equally and ratably secured by such Lien for so long as any such Debt is so secured, other than:
(a)     purchase money mortgages, or other purchase money Liens of any kind upon property acquired by the Partnership or any Principal Subsidiary after the date of the Indenture, or Liens of any kind existing on any property or any equity interests at the time of the acquisition thereof (including Liens that exist on any property or any equity interests of a Person that is consolidated with or merged with or into the Partnership or any Principal Subsidiary or that transfers or leases all or substantially all of its properties or assets to the Partnership or any Principal Subsidiary), or conditional sales agreements or other title retention agreements and leases in the nature of title retention agreements with respect to any property hereafter acquired, so long as no such Lien shall extend to or cover any other property of the Partnership or such Principal Subsidiary;
(b)     Liens upon any property of the Partnership or any Principal Subsidiary or any equity interests of any Principal Subsidiary existing as of the date of the initial issuance of the Notes or upon the property or any equity interests of any entity, which Liens existed at the time such entity became a Subsidiary of the Partnership;
(c)     Liens for taxes or assessments or other governmental charges or levies relating to amounts that are not yet delinquent or are being contested in good faith;
(d)     pledges or deposits to secure: (i) any governmental charges or levies; (ii) obligations under workers’ compensation laws, unemployment insurance and other social security legislation; (iii) performance in connection with bids, tenders, contracts (other than contracts for the payment of money) or leases to which the Partnership or any Principal Subsidiary is a party; (iv) public or statutory obligations of the Partnership or any Principal Subsidiary; and (v) surety, stay, appeal, indemnity, customs, performance or return-of-money bonds or pledges or deposits in lieu thereof;
(e)     builders’, materialmen’s, mechanics’, carriers’, warehousemen’s, workers’, repairmen’s, operators’, landlords’ or other similar Liens, in the ordinary course of business;

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(f)      Liens created by or resulting from any litigation or proceeding that at the time is being contested in good faith by appropriate proceedings, including Liens relating to judgments thereunder as to which the Partnership or any Principal Subsidiary has not exhausted its appellate rights;
(g)     Liens on deposits required by any Person with whom the Partnership or any Principal Subsidiary enters into forward contracts, futures contracts, swap agreements or other commodities contracts in the ordinary course of business and in accordance with established risk management policies and Liens in connection with leases (other than capital leases) made, or existing on property acquired, in the ordinary course of business;
(h)     easements (including, without limitation, reciprocal easement agreements and utility agreements), zoning restrictions, rights-of-way, covenants, consents, reservations, encroachments, variations and other restrictions on the use of property or minor irregularities in title thereto, charges or encumbrances (whether or not recorded) affecting the use of real property and which are incidental to, and do not materially impair the use of such property in the operation of the business of the Partnership and its Subsidiaries, taken as a whole, or the value of such property for the purpose of such business; 
(i)      Liens in favor of the United States of America, any State, any foreign country or any department, agency or instrumentality or political subdivision of any such jurisdiction, to secure partial, progress, advance or other payments pursuant to any contract or statute or to secure any Debt incurred for the purpose of financing all or any part of the purchase price or the cost of constructing or improving the property subject to such Liens, including, without limitation, Liens to secure Debt of the pollution control or industrial revenue bond type;
(j)      Liens of any kind upon any property acquired, constructed, developed or improved by the Partnership or any Principal Subsidiary (whether alone or in association with others) after the date of the Indenture that are created prior to, at the time of, or within 12 months after such acquisition (or in the case of property constructed, developed or improved, after the completion of such construction, development or improvement and commencement of full commercial operation of such property, whichever is later) to secure or provide for the payment of any part of the purchase price or cost thereof; provided that in the case of such construction, development or improvement the Liens shall not apply to any property theretofore owned by the Partnership or any Principal Subsidiary other than theretofore unimproved real property;
(k)     Liens in favor of the Partnership, one or more Principal Subsidiaries, one or more wholly-owned Subsidiaries of the Partnership or any of the foregoing in combination;
(l)      the replacement, extension or renewal (or successive replacements, extensions or renewals), as a whole or in part, of any Lien, or of any agreement, referred to in the clauses above, or the replacement, extension or renewal of the Debt secured thereby (not exceeding the principal amount of Debt secured thereby, other than to provide for the payment of any underwriting or other fees related to any such replacement, extension or renewal, as well as any premiums owed on and accrued and unpaid interest payable in connection with any such replacement, extension or renewal); provided that such replacement, extension or renewal is 

9

limited to all or a part of the same property that secured the Lien replaced, extended or renewed (plus improvements thereon or additions or accessions thereto); or 
(m)    any Lien not excepted by the foregoing clauses; provided that immediately after the creation or assumption of such Lien the aggregate principal amount of Debt of the Partnership or any Principal Subsidiary secured by all Liens created or assumed under the provisions of this clause, together with all net sale proceeds from any Sale-Leaseback Transactions, subject to certain exceptions set forth in the Base Indenture or herein, shall not exceed an amount equal to 15% of the Consolidated Net Tangible Assets for the fiscal quarter that was most recently completed prior to the creation or assumption of such Lien.
Notwithstanding the foregoing, for purposes of making the calculation set forth in clause (m) of the preceding paragraph, with respect to any such secured Debt of a non-wholly-owned Principal Subsidiary of the Partnership with no recourse to the Partnership or any wholly-owned Principal Subsidiary thereof, only that portion of the aggregate principal amount of such secured Debt reflecting the Partnership’s pro rata ownership interest in such non-wholly-owned Principal Subsidiary shall be included in calculating compliance herewith.
Section 5.02.    Limitation of Sale-Leaseback Transactions.  While the Notes remain outstanding, the Partnership will not, and will not permit any of its Principal Subsidiaries to engage in a Sale-Leaseback Transaction, unless:
(a)     the Sale-Leaseback Transaction occurs within one year from the date of acquisition of the relevant Principal Property or the date of the completion of construction or commencement of full operations on such Principal Property, whichever is later, and the Partnership has elected to designate, as a credit against (but not exceeding) the purchase price or cost of construction of such Principal Property, an amount equal to all or a portion of the net sale proceeds from such Sale-Leaseback Transaction (with any such amount not being so designated to be applied as set forth in clause (b) below);
(b)     the Partnership or such Principal Subsidiary would be entitled to incur Debt secured by a Lien on the Principal Property subject to the Sale-Leaseback Transaction in a principal amount equal to or exceeding the net sale proceeds from such Sale-Leaseback Transaction without equally and ratably securing the Notes; or
(c)     the Partnership or such Principal Subsidiary, within a 270-day period after such Sale-Leaseback Transaction, applies or causes to be applied an amount not less than the net sale proceeds from such Sale-Leaseback Transaction to (1) the prepayment, repayment, redemption or retirement of any unsubordinated Debt of the Partnership or any of its Subsidiaries (A) for borrowed money or (B) evidenced by bonds, debentures, notes or other similar instruments, or (2) invest in another Principal Property.
Section 5.03.    Reports.   So long as any Notes are outstanding, the Partnership shall:  
(a)     during such time as it is subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), file with the Trustee, within 

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15 days after it files the same with the U.S. Securities and Exchange Commission (the “SEC”), copies of the annual reports and the information, documents and other reports which it is required to file with the SEC pursuant to the Exchange Act; and
(b)     during such time as it is not subject to the reporting requirements of the Exchange Act, file with the Trustee, within 15 days after it would have been required to file the same with the SEC, financial statements, including any notes thereto (and with respect to annual reports, an auditors’ report by a firm of established national reputation) and a Management’s Discussion and Analysis of Financial Condition and Results of Operations, both comparable to what it would have been required to file with the SEC had it been subject to the reporting requirements of the Exchange Act.
With respect to the Notes, the provisions of this Section 5.03 shall replace and preempt the provisions of Section 4.05(a) of the Base Indenture in their entirety.
Section 5.04.    Future Subsidiary Guarantors.   As of the date of this Supplemental Indenture, the Notes shall not be guaranteed by any of the Partnership’s existing Subsidiaries. If, after the date of this Supplemental Indenture, any of the Partnership’s Subsidiaries guarantees, becomes a borrower or guarantor under, or grants any Lien to secure any obligations pursuant to, the Revolving Credit Facility, then the Partnership will cause such Subsidiary to become a Subsidiary Guarantor by executing a supplement to the Indenture and delivering such supplement to the Trustee promptly (but in any event, within ten Business Days of the date on which it guaranteed or incurred such obligations or granted such Lien, as the case may be).
Section 5.05.    Consolidation, Merger, Conveyance or Transfer of Subsidiary Guarantors.  No Subsidiary Guarantor shall consolidate with or merge with or into any other Person, or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its properties or assets and the properties or assets of its Subsidiaries (taken as a whole with the properties or assets of such Subsidiary Guarantor) to another Person in one or more related transactions unless:
(a)        either: (i) in the case of a merger or consolidation, such Subsidiary Guarantor is the survivor; or (ii) the Person formed by or surviving any such consolidation or merger (if other than such Subsidiary Guarantor) or to which such sale, assignment, transfer, lease, conveyance or other disposition has been made, is a Person formed, organized or existing under the laws of the United States, any state thereof or the District of Columbia;
(b)        the Person formed by or surviving any such consolidation or merger (if other than such Subsidiary Guarantor), or the Person to which such sale, assignment, transfer, lease, conveyance or other disposition has been made, expressly assumes all of such Subsidiary Guarantor’s obligations under its Guarantee and the Indenture pursuant to a supplemental indenture;
(c)        the Subsidiary Guarantor or the successor Person delivers an Officers’ Certificate and Opinion of Counsel to the Trustee, each stating that such consolidation, merger, sale, assignment, transfer, lease, conveyance or other disposition and any supplemental indenture required in connection therewith comply with the Indenture and that all conditions precedent set forth in the Indenture have been complied with; and

11

(d)        immediately after giving effect to the transaction, no Event of Default or default under the Indenture will have occurred and be continuing.
Upon the assumption of any Subsidiary Guarantor’s obligations under the Indenture by a successor, such Subsidiary Guarantor shall be discharged from all obligations under the Indenture. 
ARTICLE VI
SUCCESSORS

With respect to the Notes, the provisions of this Article VI shall replace and preempt the provisions of Section 10.01 of the Base Indenture in their entirety.
Section 6.01.    Consolidation and Mergers of the Partnership.   The Partnership may not consolidate with or merge with or into any other Person, or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its properties or assets and the properties or assets of its Subsidiaries (taken as a whole with the properties or assets of the Partnership) to another Person in one or more related transactions unless:
(a)     either (i) in the case of a merger or consolidation, the Partnership is the survivor; or (ii) the Person formed by or surviving any such consolidation or merger (if other than the Partnership) or to which such sale, assignment, transfer, lease, conveyance or other disposition has been made, is a Person formed, organized or existing under the laws of the United States, any state thereof or the District of Columbia;
(b)     the Person formed by or surviving any such consolidation or merger (if other than the Partnership) or the Person to which such sale, assignment, transfer, lease, conveyance or other disposition has been made, expressly assumes all of the Partnership’s obligations under the Indenture, including the Partnership’s obligation to pay all principal of, premium, if any, and interest on, the Notes pursuant to the Indenture;
(c)     the Partnership or the successor Person delivers an Officers’ Certificate and Opinion of Counsel to the Trustee, each stating that such consolidation, merger, sale, assignment, transfer, lease, conveyance or other disposition and any supplemental indenture required in connection therewith comply with the Indenture and that all conditions precedent set forth in the Indenture have been complied with;
(d)     if the Partnership is not the survivor, each Subsidiary Guarantor delivers an Officers’ Certificate to the Trustee stating that its Guarantee will continue to apply to the Notes; and
(e)     immediately after giving effect to the transaction, no Event of Default or default under the Indenture will have occurred and be continuing.
ARTICLE VII
LEGAL DEFEASANCE AND COVENANT DEFEASANCE

12

Section 7.01.    Covenant Defeasance.  If the Partnership effects a covenant defeasance of the Notes pursuant to Sections 11.02(b) and 11.03 of the Base Indenture, the Partnership shall cease to have any obligation to comply with the covenants set forth in Sections 5.01, 5.02, 5.04 and 5.05 hereof.
ARTICLE VIII 
FUTURE GUARANTEES

In accordance with Article XIV of the Base Indenture and Section 5.04 of this Supplemental Indenture, under certain circumstances the Notes may be fully, unconditionally and absolutely guaranteed on a senior, unsecured basis by future Subsidiary Guarantors.  With respect to the Notes, the provisions of this Article VIII shall replace and preempt the provisions of Sections 14.04(a) and 14.04(c) of the Base Indenture in their entirety.
Section 8.01.    Release of Guarantees.   The Guarantee of a Subsidiary Guarantor shall be released: (i) in connection with any sale or other disposition of all or substantially all of the properties or assets of, or all of the Partnership’s direct or indirect limited partnership, limited liability company or other equity interests in, such Subsidiary Guarantor (including by way of merger or consolidation) to a Person that is not (either before or after giving effect to such transaction) an Affiliate of the Partnership; (ii) upon the merger of such Subsidiary Guarantor into the Partnership or any other Subsidiary Guarantor or the liquidation or dissolution of such Subsidiary Guarantor; (iii) upon legal defeasance or covenant defeasance with respect to the Notes, as set forth in Sections 11.02(b) and 11.03 of the Base Indenture; or (iv) upon delivery of written notice to the Trustee of the release of all guarantees or other obligations of such Subsidiary Guarantor under the Revolving Credit Facility.  If, at any time following any release of a Subsidiary Guarantor from its initial Guarantee of the Notes pursuant to clause (iv) in the preceding sentence, the Subsidiary Guarantor again incurs obligations under the Revolving Credit Facility, then the Partnership shall cause such Subsidiary Guarantor to again guarantee the Notes in accordance with the Indenture.
ARTICLE IX 
MISCELLANEOUS

Section 9.01.    Integral Part.   This Supplemental Indenture constitutes an integral part of the Indenture.
Section 9.02.    Adoption, Ratification and Confirmation.   The Base Indenture, as supplemented and amended by this Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed.
Section 9.03.    Counterparts.   This Supplemental Indenture may be executed in any number of counterparts, each of which when so executed shall be deemed an original; and all such counterparts shall together constitute but one and the same instrument.  Delivery of an executed counterpart of this Supplemental Indenture by facsimile or electronic transmission shall be equally as effective as delivery of an original executed counterpart of this Supplemental Indenture.  Any party delivering an executed counterpart of this Supplemental Indenture by facsimile or electronic 

13

transmission also shall deliver an original executed counterpart of this Supplemental Indenture, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability and binding effect of this Supplemental Indenture.
Section 9.04.    The Trustee.   The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which are made solely by the Partnership.
Section 9.05.    Governing Law.   THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
[Signatures on following pages]

14

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

	 
	 
	 
	 

	 
	By:
	Western Gas Holdings, LLC, its general partner

	 
	 
	 
	 

	 
	By:
	/s/ Jaime R. Casas

	 
	 
	Name:
	Jaime R. Casas

	 
	 
	Title:
	Senior Vice President,
Chief Financial Officer and Treasurer

[Signature Page to Tenth Supplemental Indenture]

	
				
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,

	 
	AS TRUSTEE

	 
	 
	 
	 

	 
	By:
	/s/ Patrick Giordano

	 
	 
	Name:
	Patrick Giordano

	 
	 
	Title:
	Vice President

[Signature Page to Tenth Supplemental Indenture]

EXHIBIT A-1

(Form of Face of Note)
	
					
	CUSIP 958254 AK0
	 
	 
	No. __

	ISIN US958254AK08
	 
	 
	$__________

WESTERN GAS PARTNERS, LP
4.750% Senior Notes due 2028
Western Gas Partners, LP, promises to pay to __________, or its registered assigns, the principal sum of _______________ Dollars [or such greater or lesser amount as may be endorsed on the Schedule attached hereto]1 on August 15, 2028.

Interest Payment Dates:  February 15 and August 15
Record Dates:  February 1 and August 1

                                                     
1 To be included only if the Note is issued in global form.

	
				
	 
	WESTERN GAS PARTNERS, LP

	 
	 
	 
	 

	 
	By:
	Western Gas Holdings, LLC, its general partner

	 
	 
	 
	 

	 
	By:
	 

	 
	 
	Name:
	Jaime R. Casas

	 
	 
	Title:
	Senior Vice President,
Chief Financial Officer and Treasurer

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

This is one of the Debt Securities of the series designated therein referred to in the within-mentioned Indenture.	
				
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,

	 
	As Trustee

	 
	 
	 
	 

	 
	By:
	 

	 
	 
	Name:
	Patrick Giordano

	 
	 
	Title:
	Vice President

Dated: _________

[Signature Page to Global Note]

(Form of Back of Note) 
 
4.750% Senior Notes due 2028

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE PARTNERSHIP OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR 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 INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN. ]2 
Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.
1.    Interest.  Western Gas Partners, LP, a Delaware limited partnership (the “Partnership”), promises to pay interest on the principal amount of this Note at 4.750% per annum from August 9, 2018 until maturity.  The Partnership shall pay interest semi-annually on February 15 and August 15 of each such year, or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”). Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance. The first Interest Payment Date shall be February 15, 2019.  
2.    Method of Payment.  The Partnership shall pay interest on the Notes (except defaulted interest) to the Persons who are registered Holders of Notes at the close of business on the February 1 or August 1 next preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.17 of the Base Indenture with respect to defaulted interest, and the Partnership shall pay principal (and premium, if any) of the Notes upon surrender thereof to the Trustee or a paying agent on or after the maturity date thereof.  The Notes shall be payable as to principal, premium, if any, and interest at the office or agency of the Trustee maintained for such purpose within or without The City and State of New York, or, at the option of the Partnership, payment of interest may be made
                                                     
2 To be included only if the Note is issued in global form.

A-1-2

 by check mailed to the Holders at their addresses set forth in the register of Holders, and provided that payment by wire transfer of immediately available funds shall be required with respect to principal of and interest and premium, if any, on, each Global Security and all other Notes the Holders of which shall have provided wire transfer instructions to an account in the United States to the Partnership or the paying agent on or prior to the applicable record date.  Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.
3.    Paying Agent and Registrar.  Initially, Wells Fargo Bank, National Association, the Trustee under the Indenture, shall act as paying agent and Registrar.  The Partnership may change any paying agent or Registrar without notice to any Holder.  The Partnership or any of its Subsidiaries may act in any such capacity.
4.    Indenture.  The Partnership issued the 4.750% Senior Notes due 2028 (the “Notes”) under an Indenture, dated as of May 18, 2011, by and among the Partnership, the former guarantors party thereto and the Trustee (the “Base Indenture”), as supplemented by the Tenth Supplemental Indenture, dated as of August 9, 2018, between the Partnership and the Trustee (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”).  The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb).  The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms.  To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.  The Notes are obligations of the Partnership initially in aggregate principal amount of $400,000,000.  The Partnership may issue an unlimited aggregate principal amount of Additional Notes under the Indenture.  Any such Additional Notes that are actually issued shall be treated as issued and outstanding Notes (and as the same series (with identical terms other than with respect to the issue date, the date of first payment of interest, if applicable, and the payment of interest accruing prior to the issue date) as the initial Notes) for all purposes of the Indenture, including waivers, amendments, redemptions and offers to purchase.
5.    Optional Redemption.  The Partnership may redeem the Notes, in whole or in part, at any time before May 15, 2028 (the “Par Call Date”), at a redemption price equal to the greater of (1) 100% of the principal amount of the Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on such Notes that would have been due if the Notes matured on the Par Call Date (exclusive of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 30 basis points, plus, in either case, accrued interest, if any, on the principal amount being redeemed to such redemption date. On or after the Par Call Date, the Notes will be redeemable and repayable, at the Partnership’s option, at any time in whole, or from time to time in part, at a price equal to 100% of the principal amount of the Notes to be redeemed plus accrued interest on the Notes to be redeemed to the date of redemption. 

A-1-3

For purposes of determining any redemption price, the following definitions shall apply:
“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed, calculated as if the maturity date of the Notes were the Par Call Date (the “Remaining Life”) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of such Notes; provided, however, that if no maturity is within three months before or after the Par Call Date, yields for the two published maturities most closely corresponding to such United States Treasury security shall be determined and the Treasury Rate will be interpolated or extrapolated from those yields on a straight line basis rounding to the nearest month.
“Comparable Treasury Price” means, with respect to any redemption date for Notes, (1) the average of four Reference Treasury Dealer Quotations for such redemption date after excluding the highest and lowest of all of the Reference Treasury Dealer Quotations or (2) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.
“Primary Treasury Dealer” means a U.S. government securities dealer in The City of New York.
“Quotation Agent” means the Reference Treasury Dealer appointed by the Partnership.
“Reference Treasury Dealer” means each of (i) Wells Fargo Securities, LLC and RBC Capital Markets, LLC and their respective successors so long as it is a Primary Treasury Dealer at the relevant time and, if it is not then a Primary Treasury Dealer, then a Primary Treasury Dealer selected by it, and (ii) a Primary Treasury Dealer selected by each of PNC Capital Markets LLC and U.S. Bancorp Investments, Inc. or their respective successors; provided that if any of the foregoing shall not be a Primary Treasury Dealer at such time and shall fail to select a Primary Treasury Dealer, then the Partnership will substitute therefor another Primary Treasury Dealer.
“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding the redemption date.
“Treasury Rate” means, with respect to any redemption date, the rate per year equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. The Partnership shall calculate the Treasury Rate on the third Business Day preceding any redemption date and notify the Trustee in writing of the Treasury Rate prior to the redemption.

A-1-4

6.    Notice of Redemption.  Notice of redemption shall be sent at least 15 days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address.  Unless the Partnership defaults in payment of the redemption price, on and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption.
7.    Denominations, Transfer, Exchange.  The Notes are in registered form without coupons in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.  The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Partnership may require a Holder to pay any taxes or other governmental charges required by law or permitted by the Indenture.  The Partnership need not exchange or register the transfer of any Note or portion of a Note selected for redemption or repurchase, except for the unredeemed or unrepurchased portion of any Note being redeemed or repurchased in part.  Also, the Partnership need not exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or repurchased or during the period between a record date and the corresponding Interest Payment Date.
8.    Persons Deemed Owners.  The registered Holder of a Note shall be treated as its owner for all purposes.
9.    Amendment, Supplement and Waiver.  Subject to certain exceptions set forth in the Base Indenture or herein, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes, and any existing default or compliance with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes.  Without the consent of any Holder of a Note, the Indenture or the Notes may be amended or supplemented for any of the purposes set forth in Section 9.01 of the Base Indenture (as amended by the Supplemental Indenture), including to cure any ambiguity, defect or inconsistency, to provide for the assumption of the Partnership’s obligations to Holders of the Notes in case of a merger or consolidation of the Partnership or sale of all or substantially all of the Partnership’s assets, to add or release Subsidiary Guarantors (or their successors) pursuant to the terms of the Indenture, to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights under the Indenture of any Holder of the Notes, to comply with the requirements of the U.S. Securities and Exchange Commission to permit the qualification of the Indenture under the Trust Indenture Act, to evidence or provide for the acceptance of appointment under the Indenture of a successor Trustee, to add any additional Events of Default, to secure the Notes or the Guarantees or to establish the form or terms of any other series of Debt Securities.
10.    Defaults and Remedies.  Events of Default with respect to the Notes include: (i) default for 30 days in the payment when due of interest on the Notes; (ii) default in payment when due of principal of or premium, if any, on the Notes at maturity, upon redemption or otherwise, (iii) failure by the Partnership or any Subsidiary Guarantor for 60 days after notice to comply with any of the other agreements in the Indenture; (iv) except as permitted by the Indenture, any Guarantee 

A-1-5

shall cease for any reason to be in full force and effect (except as otherwise provided in the Indenture) or is declared null and void in a judicial proceeding or any Subsidiary Guarantor, or any Person acting on behalf of any Subsidiary Guarantor, shall deny or disaffirm its obligations under the Indenture or its Guarantee and (v) certain events of bankruptcy or insolvency with respect to the Partnership or any of the Subsidiary Guarantors.  If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Notes may declare all the Notes to be due and payable.  Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency of either the Partnership or a Subsidiary Guarantor, all outstanding Notes shall become due and payable without further action or notice.  Holders may not enforce the Indenture or the Notes except as provided in the Indenture.  Subject to certain limitations set forth in the Base Indenture or herein, Holders of a majority in aggregate principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power.  If and so long as the board of directors, an executive committee of the board of directors or trust committee of responsible officers of the Trustee in good faith so determines, the Trustee may withhold from Holders of the Notes notice of any continuing Default (except a Default relating to the payment of principal, premium, if any, or interest) if it determines that withholding notice is in their interests.  The Holders of a majority in aggregate principal amount of the Notes then outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes waive any past Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of interest on, the principal of, or premium, if any, on the Notes or except as otherwise specified in Section 6.06 of the Base Indenture.  The Partnership and the Subsidiary Guarantors are required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Partnership is required upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default.
11.    Trustee Dealings with the Partnership.  The Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Partnership or its Affiliates, and may otherwise deal with the Partnership or its Affiliates, as if it were not the Trustee.
12.    No Recourse Against Others.  The partners (other than the General Partner), directors, officers, employees, incorporators and members of each of the Partnership and any Subsidiary Guarantors, as such, shall have no liability for any obligations of the Subsidiary Guarantors or the Partnership under the Debt Securities, this Indenture or any Guarantee or for any claim based on, in respect of, or by reason of, such obligations or their creation.  By accepting a Debt Security, each Holder shall waive and release all such liability.  The waiver and release shall be part of the consideration for the issue of the Debt Securities.
13.    Authentication.  This Note shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.
14.    Abbreviations.  Customary abbreviations may be used in the name of a Holder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

A-1-6

15.    CUSIP and ISIN Numbers.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Partnership has caused CUSIP and corresponding ISIN numbers to be printed on the Notes, and the Trustee may use CUSIP and corresponding ISIN numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 

The Partnership shall furnish to any Holder upon written request and without charge a copy of the Indenture.  Requests may be made to:
Western Gas Partners, LP
1201 Lake Robbins Drive
The Woodlands, Texas 77380-1046
Telephone: (832) 636-6000

A-1-7

Assignment Form
To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to 
	
					
	 

	(Insert assignee’s soc. sec. or tax I.D. no.)

	 

	 

	 

	 

	(Print or type assignee’s name, address and zip code)

	 
	 
	 
	 
	 

	and irrevocably appoint
	 

	agent to transfer this Note on the books of the Partnership.  The agent may substitute another to act for him.

	 

	 
	 
	 
	 
	 

	Date:
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	Your Signature:
	 

	 
	 
	 
	(Sign exactly as your name appears on the face of this Note)

	 
	 
	 
	 
	 

	Signature Guarantee:
	 

	 
	 
	(Signature must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signature Program (“MSP”) or such other signature guarantee program as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended.)

A-1-8

SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE3 

The original principal amount of this Global Note is $400,000,000.  The following increases or decreases in this Global Note have been made:
	
					
	Date of 
Exchange
	Amount of 
decrease in 
Principal Amount 
of 
this Global Note
	Amount of 
increase in 
Principal Amount 
of 
this Global Note
	Principal 
Amount of 
this Global Note 
following such 
decrease 
(or increase)
	Signature of 
authorized 
signatory of 
Trustee or Note 
Custodian

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	

	 
	 
	 
	 

                                                                                                                                             
3 To be included only if the Note is issued in global form.

A-1-9

EXHIBIT A-2

(Form of Face of Note)
	
					
	CUSIP 958254 AL8
	 
	 
	No. __

	ISIN US958254AL80
	 
	 
	$__________

WESTERN GAS PARTNERS, LP
5.500% Senior Notes due 2048
Western Gas Partners, LP, promises to pay to __________, or its registered assigns, the principal sum of _______________ Dollars [or such greater or lesser amount as may be endorsed on the Schedule attached hereto]4 on August 15, 2048.

Interest Payment Dates:  February 15 and August 15
Record Dates:  February 1 and August 1

                                                     
4 To be included only if the Note is issued in global form.

	
				
	 
	WESTERN GAS PARTNERS, LP

	 
	 
	 
	 

	 
	By:
	Western Gas Holdings, LLC, its general partner

	 
	 
	 
	 

	 
	By:
	 

	 
	 
	Name:
	Jaime R. Casas

	 
	 
	Title:
	Senior Vice President,
Chief Financial Officer and Treasurer

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

This is one of the Debt Securities of the series designated therein referred to in the within-mentioned Indenture.	
				
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,

	 
	As Trustee

	 
	 
	 
	 

	 
	By:
	 

	 
	 
	Name:
	Patrick Giordano

	 
	 
	Title:
	Vice President

Dated: _________

[Signature Page to Global Note]

(Form of Back of Note) 
 
5.500% Senior Notes due 2048

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE PARTNERSHIP OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR 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 INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.]5 
Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.
1.    Interest.  Western Gas Partners, LP, a Delaware limited partnership (the “Partnership”), promises to pay interest on the principal amount of this Note at 5.500% per annum from August 9, 2018 until maturity.  The Partnership shall pay interest semi-annually on February 15 and August 15 of each such year, or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”). Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance. The first Interest Payment Date shall be February 15, 2019.  
2.    Method of Payment.  The Partnership shall pay interest on the Notes (except defaulted interest) to the Persons who are registered Holders of Notes at the close of business on the February 1 or August 1 next preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.17 of the Base Indenture with respect to defaulted interest, and the Partnership shall pay principal (and premium, if any) of the Notes upon surrender thereof to the Trustee or a paying agent on or after the maturity date thereof.  The Notes shall be payable as to principal, premium, if any, and interest at the office or agency of the Trustee maintained for such purpose within or without The City and State of New York, or, at the option of the Partnership, payment of interest may be made
                                                     
5 To be included only if the Note is issued in global form.

A-2-2

 by check mailed to the Holders at their addresses set forth in the register of Holders, and provided that payment by wire transfer of immediately available funds shall be required with respect to principal of and interest and premium, if any, on, each Global Security and all other Notes the Holders of which shall have provided wire transfer instructions to an account in the United States to the Partnership or the paying agent on or prior to the applicable record date.  Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.
3.    Paying Agent and Registrar.  Initially, Wells Fargo Bank, National Association, the Trustee under the Indenture, shall act as paying agent and Registrar.  The Partnership may change any paying agent or Registrar without notice to any Holder.  The Partnership or any of its Subsidiaries may act in any such capacity.
4.    Indenture.  The Partnership issued the 5.500% Senior Notes due 2048 (the “Notes”) under an Indenture, dated as of May 18, 2011, by and among the Partnership, the former guarantors party thereto and the Trustee (the “Base Indenture”), as supplemented by the Tenth Supplemental Indenture, dated as of August 9, 2018, between the Partnership and the Trustee (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”).  The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb).  The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms.  To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.  The Notes are obligations of the Partnership initially in aggregate principal amount of $350,000,000.  The Partnership may issue an unlimited aggregate principal amount of Additional Notes under the Indenture.  Any such Additional Notes that are actually issued shall be treated as issued and outstanding Notes (and as the same series (with identical terms other than with respect to the issue date, the date of first payment of interest, if applicable, and the payment of interest accruing prior to the issue date) as the initial Notes) for all purposes of the Indenture, including waivers, amendments, redemptions and offers to purchase.
5.    Optional Redemption.  The Partnership may redeem the Notes, in whole or in part, at any time before February 15, 2048 (the “Par Call Date”), at a redemption price equal to the greater of (1) 100% of the principal amount of the Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on such Notes that would have been due if the Notes matured on the Par Call Date (exclusive of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 40 basis points, plus, in either case, accrued interest, if any, on the principal amount being redeemed to such redemption date. On or after the Par Call Date, the Notes will be redeemable and repayable, at the Partnership’s option, at any time in whole, or from time to time in part, at a price equal to 100% of the principal amount of the Notes to be redeemed plus accrued interest on the Notes to be redeemed to the date of redemption. 

A-2-3

For purposes of determining any redemption price, the following definitions shall apply:
“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed, calculated as if the maturity date of the Notes were the Par Call Date (the “Remaining Life”) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of such Notes; provided, however, that if no maturity is within three months before or after the Par Call Date, yields for the two published maturities most closely corresponding to such United States Treasury security shall be determined and the Treasury Rate will be interpolated or extrapolated from those yields on a straight line basis rounding to the nearest month.
“Comparable Treasury Price” means, with respect to any redemption date for Notes, (1) the average of four Reference Treasury Dealer Quotations for such redemption date after excluding the highest and lowest of all of the Reference Treasury Dealer Quotations or (2) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.
“Primary Treasury Dealer” means a U.S. government securities dealer in The City of New York.
“Quotation Agent” means the Reference Treasury Dealer appointed by the Partnership.
“Reference Treasury Dealer” means each of (i) Wells Fargo Securities, LLC and RBC Capital Markets, LLC and their respective successors so long as it is a Primary Treasury Dealer at the relevant time and, if it is not then a Primary Treasury Dealer, then a Primary Treasury Dealer selected by it, and (ii) a Primary Treasury Dealer selected by each of PNC Capital Markets LLC and U.S. Bancorp Investments, Inc. or their respective successors; provided that if any of the foregoing shall not be a Primary Treasury Dealer at such time and shall fail to select a Primary Treasury Dealer, then the Partnership will substitute therefor another Primary Treasury Dealer.
“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding the redemption date.
“Treasury Rate” means, with respect to any redemption date, the rate per year equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. The Partnership shall calculate the Treasury Rate on the third Business Day preceding any redemption date and notify the Trustee in writing of the Treasury Rate prior to the redemption.

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6.    Notice of Redemption.  Notice of redemption shall be sent at least 15 days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address.  Unless the Partnership defaults in payment of the redemption price, on and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption.
7.    Denominations, Transfer, Exchange.  The Notes are in registered form without coupons in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.  The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Partnership may require a Holder to pay any taxes or other governmental charges required by law or permitted by the Indenture.  The Partnership need not exchange or register the transfer of any Note or portion of a Note selected for redemption or repurchase, except for the unredeemed or unrepurchased portion of any Note being redeemed or repurchased in part.  Also, the Partnership need not exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or repurchased or during the period between a record date and the corresponding Interest Payment Date.
8.    Persons Deemed Owners.  The registered Holder of a Note shall be treated as its owner for all purposes.
9.    Amendment, Supplement and Waiver.  Subject to certain exceptions set forth in the Base Indenture or herein, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes, and any existing default or compliance with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes.  Without the consent of any Holder of a Note, the Indenture or the Notes may be amended or supplemented for any of the purposes set forth in Section 9.01 of the Base Indenture (as amended by the Supplemental Indenture), including to cure any ambiguity, defect or inconsistency, to provide for the assumption of the Partnership’s obligations to Holders of the Notes in case of a merger or consolidation of the Partnership or sale of all or substantially all of the Partnership’s assets, to add or release Subsidiary Guarantors (or their successors) pursuant to the terms of the Indenture, to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights under the Indenture of any Holder of the Notes, to comply with the requirements of the U.S. Securities and Exchange Commission to permit the qualification of the Indenture under the Trust Indenture Act, to evidence or provide for the acceptance of appointment under the Indenture of a successor Trustee, to add any additional Events of Default, to secure the Notes or the Guarantees or to establish the form or terms of any other series of Debt Securities.
10.    Defaults and Remedies.  Events of Default with respect to the Notes include: (i) default for 30 days in the payment when due of interest on the Notes; (ii) default in payment when due of principal of or premium, if any, on the Notes at maturity, upon redemption or otherwise, (iii) failure by the Partnership or any Subsidiary Guarantor for 60 days after notice to comply with any of the other agreements in the Indenture; (iv) except as permitted by the Indenture, any Guarantee 

A-2-5

shall cease for any reason to be in full force and effect (except as otherwise provided in the Indenture) or is declared null and void in a judicial proceeding or any Subsidiary Guarantor, or any Person acting on behalf of any Subsidiary Guarantor, shall deny or disaffirm its obligations under the Indenture or its Guarantee and (v) certain events of bankruptcy or insolvency with respect to the Partnership or any of the Subsidiary Guarantors.  If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Notes may declare all the Notes to be due and payable.  Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency of either the Partnership or a Subsidiary Guarantor, all outstanding Notes shall become due and payable without further action or notice.  Holders may not enforce the Indenture or the Notes except as provided in the Indenture.  Subject to certain limitations set forth in the Base Indenture or herein, Holders of a majority in aggregate principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power.  If and so long as the board of directors, an executive committee of the board of directors or trust committee of responsible officers of the Trustee in good faith so determines, the Trustee may withhold from Holders of the Notes notice of any continuing Default (except a Default relating to the payment of principal, premium, if any, or interest) if it determines that withholding notice is in their interests.  The Holders of a majority in aggregate principal amount of the Notes then outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes waive any past Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of interest on, the principal of, or premium, if any, on the Notes or except as otherwise specified in Section 6.06 of the Base Indenture.  The Partnership and the Subsidiary Guarantors are required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Partnership is required upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default.
11.    Trustee Dealings with the Partnership.  The Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Partnership or its Affiliates, and may otherwise deal with the Partnership or its Affiliates, as if it were not the Trustee.
12.    No Recourse Against Others.  The partners (other than the General Partner), directors, officers, employees, incorporators and members of each of the Partnership and any Subsidiary Guarantors, as such, shall have no liability for any obligations of the Subsidiary Guarantors or the Partnership under the Debt Securities, this Indenture or any Guarantee or for any claim based on, in respect of, or by reason of, such obligations or their creation.  By accepting a Debt Security, each Holder shall waive and release all such liability.  The waiver and release shall be part of the consideration for the issue of the Debt Securities.
13.    Authentication.  This Note shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.
14.    Abbreviations.  Customary abbreviations may be used in the name of a Holder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

A-2-6

15.    CUSIP and ISIN Numbers.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Partnership has caused CUSIP and corresponding ISIN numbers to be printed on the Notes, and the Trustee may use CUSIP and corresponding ISIN numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 

The Partnership shall furnish to any Holder upon written request and without charge a copy of the Indenture.  Requests may be made to:
Western Gas Partners, LP
1201 Lake Robbins Drive
The Woodlands, Texas 77380-1046
Telephone: (832) 636-6000

A-2-7

Assignment Form
To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to 
	
					
	 

	(Insert assignee’s soc. sec. or tax I.D. no.)

	 

	 

	 

	 

	(Print or type assignee’s name, address and zip code)

	 
	 
	 
	 
	 

	and irrevocably appoint
	 

	agent to transfer this Note on the books of the Partnership.  The agent may substitute another to act for him.

	 

	 
	 
	 
	 
	 

	Date:
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	Your Signature:
	 

	 
	 
	 
	(Sign exactly as your name appears on the face of this Note)

	 
	 
	 
	 
	 

	Signature Guarantee:
	 

	 
	 
	(Signature must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signature Program (“MSP”) or such other signature guarantee program as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended.)

A-2-8

SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE6 

The original principal amount of this Global Note is $350,000,000.  The following increases or decreases in this Global Note have been made:
	
					
	Date of 
Exchange
	Amount of 
decrease in 
Principal Amount 
of 
this Global Note
	Amount of 
increase in 
Principal Amount 
of 
this Global Note
	Principal 
Amount of 
this Global Note 
following such 
decrease 
(or increase)
	Signature of 
authorized 
signatory of 
Trustee or Note 
Custodian

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	

	 
	 
	 
	 

                                                                                                                                             
6 To be included only if the Note is issued in global form.

A-2-9

EXHIBIT B

NOTATION OF GUARANTEE
Each of the Subsidiary Guarantors (which term includes any successor Person under the Indenture), has fully, unconditionally and absolutely guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture, the due and punctual payment of the principal of, and premium, if any, and interest on the [2028][2048] Notes and all other amounts due and payable under the Indenture and the [2028][2048] Notes by the Partnership.
The obligations of each of the Subsidiary Guarantors to the Holders of Debt Securities and to the Trustee pursuant to its Guarantee and the Indenture are expressly set forth in Article XIV of the Base Indenture, as supplemented by Article VIII of the Supplemental Indenture and reference is hereby made to the Indenture for the precise terms of the Guarantee.
	
		
	 
	[Subsidiary Guarantors]

	 
	 

	 
	By:                                                                                  

	 
	Name:    
Title:

B-1Exhibit 10.1(a)

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT (the “Agreement”)
dated as of August 7, 2018 (the “Effective Date”), by and between Precipio, Inc., a Delaware corporation with
its principal place of business at 4 Science Park, 3rd floor, New Haven, CT 06511 (hereinafter referred to as the “Company”),
and Ilan Danieli residing in 416 Lydecker Street, Englewood, NJ 07631

(hereinafter referred to as “Executive”).

 

		1.	Employment

 

Executive hereby continues employment with
the Company on the Effective Date in accordance with the terms and conditions of this Agreement. Executive is and will be an employee
at will, which means that either Executive or the Company may terminate the employment relationship at any time, with or without
“Cause”, as defined below, or notice, subject to the provisions of Sections 4 and 5 of this Agreement.

 

		2.	Duties

 

2.1         Executive
shall, during the term of his employment with the Company, perform the duties of Chief Executive Officer and shall perform such
other duties as shall be specified and designated from time to time by the Company’s Board of Directors (“Board”).
Executive shall report to the Company’s Board, and shall devote his full business time and effort to the performance of his
duties hereunder.

 

2.2         Executive’s
employment hereunder shall be subject to the rules and regulations of the Company involving the general conduct of business of
the Company in force from time to time and applicable to senior executives of the Company.

 

2.3         The
parties hereto understand and acknowledge that the Company’s headquarters are located in New Haven, CT. Notwithstanding the
foregoing, the Company agrees that the Executive may be required to travel to other locations in the ordinary course of business.

 

		3.	Compensation

 

3.1         Salary.
The Company shall pay Executive an annualized salary of $200,000 (the “Annual Salary”), in accordance with the
customary payroll practices of the Company applicable to senior executives. Executive’s performance and Annual Salary shall
be reviewed annually in accordance with the Company’s policy and his Annual Salary may be adjusted by the Compensation Committee
of the Board of Directors (the “Compensation Committee”) or a majority of the independent members of the Board.

 

3.2         Bonus.
Executive shall be eligible to receive an annual bonus in accordance with the recommendations made by the Compensation Committee
of the Board or a majority of the independent members of the Board. Bonuses payable to Executive pursuant to this Section 3.2 shall
be paid to Executive at the same time such bonuses are paid to the most senior executive officers of the Company, but in no event
later than March 15th of the calendar year immediately following the calendar year in which it was earned. Except as
set forth in Sections 5.3 and 5.4 hereof, Executive shall be eligible to receive any such bonus only if Executive is actively employed
by the Company on the last day of the year for which the bonus is calculated, and Executive has not given notice of resignation
without “Good Reason,” as defined in this Agreement, or been given notice of termination by the Company for “Cause,”
as defined in this Agreement, on or prior to that date.

 

3.3         Equity
Grant. Executive shall be eligible to receive stock options or other equity incentive awards in the Company subject to approval
of the Compensation Committee. The equity plan may change from time to time in the discretion of the Compensation Committee.

 

3.4         Benefits.
Executive shall be eligible to participate in the Company’s employee benefits plans, subject to the terms and conditions
of the applicable plan documents, and subject to the Company’s right to amend, terminate, increase costs and/or take other
similar action with respect to any or all of its benefit plans, as with all other plans and programs of the Company.

 

3.5         Expenses.
The Company shall pay or reimburse Executive for all reasonable out-of-pocket expenses actually incurred by Executive in the performance
of Executive’s services under this Agreement, in accordance with the Company’s expense reimbursement policies in effect
from time to time (including timely submission of proof of such expenses (including, in the case of reimbursements, proof of payment)
in such form as the Company may require). If an expense reimbursement is not exempt from Section 409A of the Internal Revenue Code
of 1986, as amended (“Section 409A”), the following rules apply: (i) in no event shall any reimbursement be
paid after the last day of the taxable year following the taxable year in which the expense was incurred; (ii) the amount of reimbursable
expenses incurred in one tax year shall not affect the expenses eligible for reimbursement in any other tax year; and (iii) the
right to reimbursement for expenses is not subject to liquidation or exchange for any other benefit.

 

3.6         Vacation.
Executive shall be entitled to vacation days as allowed pursuant to the terms of the Company’s Freedom Leave vacation policy.

 

3.7         Delivery
of Compensation. In the event of Executive’s death, any accrued but unpaid payments by the Company hereunder shall be
made to the executors or administrators of Executive’s estate against the delivery of such tax waivers, proper letters testamentary
and other documents as the Company may reasonably request.

 

		4.	Termination upon Death or Disability

 

This Agreement and the Executive’s employment
shall terminate upon Executive’s death. If Executive becomes disabled, the Company may terminate this Agreement and Executive’s
employment by written notice to Executive. For purposes hereof, “disability” shall be defined to mean Executive’s
inability, due to physical or mental incapacity, to substantially perform his duties and responsibilities under this Agreement
for a period of 60 consecutive days from the date of such disability as determined by an approved medical doctor selected by the
mutual agreement of the parties hereto. In the event that the parties hereto cannot agree on an approved medical doctor, each party
shall select a medical doctor and the two doctors shall select a third medical doctor who shall serve as the approved medical doctor
hereunder. Upon death or termination of employment by virtue of disability, Executive (or Executive’s estate or beneficiaries
in the case of the death of Executive) shall have no right to receive any compensation or benefit hereunder on and after the effective
date of the termination of employment other than (i) Annual Salary earned and accrued under this Agreement prior to the effective
date of termination, which shall be paid or provided to the Executive on or before the time required by law but in no event more
than 30 days after the effective date of termination; (ii) earned, accrued and vested benefits and paid time off under this Agreement
prior to the effective date of termination, subject to the terms of the plans applicable thereto (and any applicable laws and regulations);
and (iii) reimbursement under this Agreement for expenses incurred prior to the effective date of termination, subject to the terms
of this Agreement and the policies applicable thereto (collectively, the “Accrued Benefit”). This Agreement
shall otherwise terminate upon the effective date of the termination of employment and Executive shall have no further rights hereunder.

 

     

     

    

 

		5.	Other Terminations of Employment and Change of Control

 

5.1         Termination
for Cause. The Company may terminate this Agreement and Executive’s employment hereunder for Cause. For purposes of this
Agreement, “Cause” shall mean: (i) conduct by Executive constituting a material act of misconduct in connection
with the performance of his duties, including, without limitation, misappropriation of funds or property of the Company or any
of its subsidiaries or affiliates other than the occasional, customary and de minimis use of Company property for personal purposes;
(ii) the commission by Executive of any felony involving deceit, dishonesty or fraud, or any conduct by Executive that would reasonably
be expected to result in material economic injury or reputational harm to the Company or any of its subsidiaries and affiliates
if he were retained in his position; (iii) Executive’s failure to perform Executive’s duties hereunder to the Company’s
satisfaction; (iv) a breach by Executive of any of the provisions contained in Section 7 of this Agreement; (v) a material violation
by Executive of the Company’s material written employment policies, where such violations results in material harm to the
Company; or (vi) failure to cooperate with a bona fide internal investigation or an investigation by regulatory or law enforcement
authorities, after being instructed by the Board of Directors to cooperate, or the willful destruction or failure to preserve documents
or other materials known to be relevant to such investigation or the inducement of others to fail to cooperate or to produce documents
or other materials in connection with such investigation; provided that, with respect to subsections (iii) and (v) above,
and only in the event such conduct is capable of being cured, Cause will only be deemed to occur after written notice to Executive
describing in reasonably specific detail the events/actions giving rise to the Cause determination, and the failure by Executive
to cure such events/actions giving rise to the Cause determination within thirty (30) days following such written notice. Notwithstanding
any other provision of this Agreement, if the Company terminates Executive’s employment in accordance with the terms of this
Section 5.1 for Cause, Executive shall have no right to receive any compensation or benefit hereunder on and after the effective
date of the termination of employment other than the Accrued Benefit. This Agreement shall otherwise terminate upon the effective
date of the termination of employment and Executive shall have no further rights hereunder.

 

5.2         Termination
by Executive Without Good Reason. Executive may terminate this Agreement and his employment without Good Reason. If Executive
terminates this Agreement and his employment under this Section 5.2 without Good Reason, Executive shall have no right to receive
any compensation or benefit hereunder on and after the effective date of the termination of employment other than the Accrued Benefit.
This Agreement shall otherwise terminate upon the effective date of the termination of employment and Executive shall have no further
rights hereunder. Executive shall provide 60 days’ prior written notice to the Company if he terminates his employment under
this Section 5.2; provided that, in such event, the Company may unilaterally accelerate the effective date of termination and such
acceleration shall not result in a termination by the Company for purposes of this Agreement.

 

5.3         Termination
by the Company Without Cause or by the Executive for Good Reason. The Company may terminate this Agreement and Executive’s
employment at any time without Cause, and the Executive may terminate this Agreement and his employment for Good Reason. If this
Agreement and Executive’s employment with the Company is terminated by the Company pursuant to this Section 5.3 for reasons
other than Cause or by the Executive pursuant to this Section 5.3 for Good Reason, and such termination does not result from the
Executive’s death or disability under Section 4, Executive shall have no right to receive any compensation or benefit hereunder
on and after the effective date of the termination of employment other than the Accrued Benefit, and the following payments and
benefits (the “Severance”):

 

(a)         an
additional 9 months of an Annual Salary of $200,000 in the form of salary continuation over the 9-month period following the effective
date of the termination of employment;

 

(b)         a
monthly cash payment equal to the monthly employer contribution the Company would have made to provide Executive group health,
dental and all other insurance coverages to Executive and his family, pursuant to COBRA, if eligible and elected, for a period
of 9 months, or until the expiration of the Executive’s COBRA continuation period, if earlier; provided that after expiration
of the relevant COBRA payment period above, the Company will allow Executive to continue such coverage at his own expense for the
remainder of any COBRA continuation period pursuant to applicable law and Executive shall notify the Company immediately upon acceptance
of employment with another employer; and

 

(c)         accelerated
vesting of all unvested stock options or equity awards;

 

The amounts due under Sections 5.3(a) and (b)
shall not be paid or given unless Executive executes a customary agreement releasing all claims against the Company (in the form
acceptable to the Company) (the “Release Agreement”) and the Release Agreement becomes enforceable and irrevocable
within 60 days following the date on which the termination of Executive’s employment becomes effective. The salary continuation
due under Section 5.3(a) shall commence to be paid to Executive on the first payroll date following the date the Release Agreement
becomes enforceable and irrevocable, provided, however, that if the 60-day period in which the Release Agreement is required to
become effective and enforceable begins in one calendar year and ends in the following calendar year, the salary continuation shall
be paid in the second calendar year; provided further that the initial payment shall include a catch-up payment to cover amounts
retroactive to the day immediately following the effective date of termination.

 

For purposes of this Agreement, “Good
Reason” shall mean that Executive has complied with the “Good Reason Process” (hereinafter defined) following
the occurrence of any of the following events: (i) a material diminution in Executive’s responsibilities, authority or duties;
(ii) a material diminution in the Annual Salary except for across-the-board salary reductions based on the Company’s financial
performance similarly affecting all or substantially all senior management employees of the Company; (iii) a change of more than
40 miles in Executive’s Office Location, without Executive’s prior written consent; or (iv) the material breach by
the Company of this Agreement or any other written agreement between Executive and the Company. “Good Reason Process”
shall mean that (A) Executive reasonably determines in good faith that a “Good Reason” condition has occurred; (B)
Executive notifies the Company in writing of the first occurrence of the Good Reason condition within 30 days of the first occurrence
of such condition; (C) Executive cooperates in good faith with the Company’s efforts, for a period not less than 30 days
following such notice (the “Cure Period”), to remedy the condition; (D) notwithstanding such efforts, the Good
Reason condition continues to exist; and (E) Executive terminates his employment within 30 days after the end of the Cure Period.
If the Company cures the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred.

 

		5.4	Termination Due to a Change of Control.

 

(a)         In
accordance with the Plan and the Company’s forms of equity award agreements for senior executives, in the event of a Sale
Event (as defined in the Company’s 2017 Stock Option and Incentive Plan), Executive shall receive acceleration of all time-based
vesting provisions on all equity awards with time-based vesting held by Executive, with such vesting to occur immediately prior
to the closing of the Sale Event.

 

(b)         If
a Sale Event occurs and the Company, its subsidiaries or a successor entity, as the case may be, terminates this Agreement and
the employment of Executive without Cause or Executive terminates this Agreement and his employment for Good Reason, in either
case within 12 months following such Sale Event, then in lieu of the payments and benefits provided for in Section 5.3, Executive
shall be entitled to receive the Accrued Benefit and the following payments and benefits (the “Change in Control Severance):

 

    	Page 2 of 6

     

    

 

(i)          an
additional 12 months of Annual Salary at (i) the rate in effect at termination or, (ii) $200,000, payable in a lump sum;

 

(ii)         an
additional 12 months of bonus payout earned out at 100% of plan;

 

(iii)        a
monthly cash payment equal to the monthly employer contribution the Company would have made to provide Executive group health,
dental and all other insurance coverages to Executive and his family, pursuant to COBRA, if eligible and elected, for a period
of 12 months, or until the expiration of the Executive’s COBRA continuation period, if earlier; provided that after expiration
of the relevant COBRA payment period above, the Company will allow Executive to continue such coverage at his own expense for the
remainder ocf any COBRA continuation period pursuant to applicable law and Executive shall notify the Company immediately upon
acceptance of employment with another employer;

 

(iiii)      accelerated
vesting of all unvested stock options or equity awards.

 

(c)         The
Change in Control Severance shall not be paid or given unless Executive executes the Release Agreement and the Release Agreement
becomes enforceable and irrevocable within 60 days following the date on which the termination of Executive’s employment
becomes effective. The payments under Section 5.4(b)(i) and (ii) shall be paid to Executive in a lump sum on the first payroll
date following the date the Release Agreement becomes enforceable and irrevocable, provided, however, that if the 60 day period
in which the Release Agreement is required to become effective and enforceable begins in one calendar year and ends in the following
calendar year, the Change in Control Severance shall be paid in the second calendar year. The Company shall pay the amounts due
under Section 5.4(b)(iii) each month at the time the Company normally pays the insurer of the Company’s group health insurer
on behalf of its remaining employees.

 

		5.5	Additional Limitation.

 

(a)         Anything
in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution by
the Company to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of
this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”) and the applicable regulations thereunder (the “Severance Payments”), would
be subject to the excise tax imposed by Section 4999 of the Code, the following provisions shall apply:

 

(i)          If
the Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance Payments reduced by the sum of
(A) the Excise Tax and (B) the total of the Federal, state, and local income and employment taxes on the amount of the Severance
Payments which are in excess of the Threshold Amount, then the Severance Payments shall be reduced (but not below zero) to the
extent necessary so that the sum of all Severance Payments shall not exceed the Threshold Amount. In such event, the Severance
Payments shall be reduced in the following order: (A) cash payments not subject to Section 409A of the Code; (B) cash payments
subject to Section 409A of the Code; (C) equity-based payments and acceleration; and (D) non-cash forms of benefits. To the extent
any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological
order.

 

(ii)         Except
in the circumstances set forth in (i), Executive shall be entitled to receive his full Severance Payments.

 

(b)         For
the purposes of this Section 5.5, “Threshold Amount” shall mean three times Executive’s “base amount”
within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise
Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by Executive
with respect to such excise tax.

 

(c)         The
determination as to which of the alternative provisions of Section 5.5(a) shall apply to Executive shall be made by a nationally
recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting
calculations both to the Company and Executive within 15 business days of the Date of Termination, if applicable, or at such earlier
time as is reasonably requested by the Company or Executive. For purposes of determining which of the alternative provisions of
Section 5.5(a) shall apply, Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income
taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes
at the highest marginal rates of individual taxation in the state and locality of Executive’s residence on the Date of Termination,
net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. Any
determination by the Accounting Firm shall be binding upon the Company and Executive.

 

5.6         Resignation
from Positions. Executive shall resign as a member of the Board and from Executive’s position with the Company, and shall
resign from any and all other positions at the Company or any of its subsidiaries or other affiliates, effective as of the effective
date of termination, no matter the reason for the termination. Such resignation shall not affect the characterization of Executive’s
separation from the Company for any purpose under this Agreement.

 

		6.	Covenants of Executive.

 

6.1         Non-Competition;
Non-Solicitation. As a material inducement to the Company to enter into this Agreement, Executive hereby expressly agrees to
be bound by the following covenants, terms and conditions. Executive hereby agrees that he will have access to trade secrets, proprietary
and confidential information relating to the Company and its affiliates and their respective clients, including but not limited
to, marketing data, financial information, client and prospect lists (including without limitation, computer- and web-based compilations
(including but not limited to salesforce.com or other CRM system data) maintained by the Company or its affiliates or Executive),
and details of programs and methods, potential and actual acquisitions, divestitures and joint ventures, pricing policies, strategies,
terms of service, business and product plans, cost information and software, in each case of the Company, its affiliates and/or
their respective clients. Accordingly, Executive voluntarily enters into the following covenants to provide the Company with reasonable
protection of those interests:

 

(a)         Executive
agrees that during the term of his employment with the Company and for a period of one year thereafter, Executive shall not, alone
or as an employee, officer, director, agent, shareholder (other than an owner of 2% or less of the outstanding shares of any publicly-traded
company), consultant, partner, member, owner or in any other capacity, directly or indirectly:

 

(i)          engage
in any Competitive Activity (as defined below) within or with respect to any location in the United States or abroad in which Executive
performed or directed his services (including but not limited to sales and customer support calls, whether conducted in person,
by telephone or online) at any time during the 9-month period immediately preceding the termination of Executive’s employment
for any reason (the “Territories”), or assist any other person or organization in engaging in, or preparing
to engage in, any Competitive Activity in such Territories;

 

    	Page 3 of 6

     

    

 

(ii)         solicit
or provide services to any Clients, as defined below, of the Company and/or any of its affiliates, on his own behalf or on behalf
of any third party, in furtherance of any Competitive Activity. For purposes of this Section 6, “Client” shall
mean any then-current customer of the Company, former customer of the Company (who was a customer of the Company within the 12-month
period immediately preceding the termination of Executive’s employment hereunder);

 

(iii)        encourage,
participate in or solicit any employee or consultant of the Company and/or any affiliate to engage in Competitive Activity or to
accept employment with any third party, whether or not engaged in Competitive Activity. This subsection (iii) shall be limited
to employees and consultants who: (A) are current employees or consultants; or (B) left the employment of the Company or whose
provision of services to the Company terminated within the 12-month period prior to Executive’s termination of employment
with the Company for any reason; and

 

(iv)        for
purposes of this Agreement, “Competitive Activity” shall mean any offering, sale, licensing or provision by
any entity of any software, application service or system, in direct competition with the Company’s offerings and including
electronic or digital document repositories for facilitating transactional due diligence, mergers, acquisitions, divestitures,
financings, investments, investor relations, research and development, clinical trials or other business processes for which the
Company’s products or services are or have been used during the 12-month period preceding termination of Executive’s
employment for any reason.

 

(b)         Executive
agrees that the foregoing restrictions are reasonable and justified in light of: (i) the nature of the Company’s business
and customers; (ii) the confidential and proprietary information to which Executive has had and will have exposure and access during
the course of his employment with the Company; and (iii) the need for the adequate protection of the business and the goodwill
of the Company. In the event any restriction in this Section 6 is deemed to be invalid or unenforceable by any court of competent
jurisdiction, Executive agrees to the reduction of said restriction to such period or scope that such court deems reasonable and
enforceable.

 

(c)         Executive
acknowledges and agrees that any breach of this Section 6 shall cause the Company immediate, substantial and irreparable harm and
therefore, in the event of any such breach, Executive agrees that, without prejudice to any other remedies which may be available
to the Company, and the Company shall have the right to seek specific performance and injunctive relief, without the need to post
a bond or other security.

 

(d)         Without
in any way limiting the provisions of this Section 6, Executive further acknowledges and agrees that the provisions of this Section
6 shall remain applicable in accordance with their terms after the date of termination of Executive’s employment, regardless
of whether Executive’s termination or cessation of employment is voluntary or involuntary.

 

6.2         Confidential
and Proprietary Information. During and after the term of Executive’s employment with the Company, Executive covenants
and agrees that he will not disclose to anyone without the Company’s prior written consent, any confidential materials, documents,
records or other non-public information of any type whatsoever concerning or relating to the business and affairs of the Company
which Executive may have acquired in the course of his employment hereunder, including but not limited to: (a) trade secrets of
the Company; (b) lists of and/or information concerning current, former, and/or prospective customers or clients of the Company;
and (c) information relating to methods of doing business (including information concerning operations, technology and systems)
in use or contemplated use by the Company and not generally known among the Company’s competitors (the “Confidential
Information”), except that Executive may use and disclose such Confidential Information (i) in the course of Executive’s
employment with, and for the benefit of, the Company, (ii) to enforce any rights or defend any claims hereunder or under any other
agreement to which Executive is a party with the Company, provided that such disclosure is relevant to the enforcement of such
rights or defense of such claims and is only disclosed in the formal proceedings related thereto, (iii) when required to do so
by a court of law, by any governmental agency having supervisory authority over the business of the Company or by any administrative
or legislative body (including a committee thereof) with jurisdiction to order him to divulge, disclose or make accessible such
Confidential Information; provided that Executive shall give prompt written notice to the Company of such requirement, disclose
no more information than is so required, and reasonably cooperate with any attempts by the Company to obtain a protective order
or similar treatment, (iv) as to such Confidential Information that is or becomes generally known to the public or trade without
Executive’s violation of this Section 6.2, or (v) to Executive’s spouse, attorney and/or his personal tax and financial
advisors as reasonably necessary or appropriate to advance Executive’s tax, financial and other personal planning (each an
“Exempt Person”), provided, however, that any disclosure or use of Confidential Information by
an Exempt Person shall be deemed to be a breach of this Section 6.2 by Executive.

 

6.3          Rights
and Remedies upon Breach. Executive acknowledges and agrees that his breach of any provision of this Section 6 (the “Restrictive
Covenants”) would result in irreparable injury and damage for which money damages do not provide an adequate remedy.
Therefore, if Executive breaches or threatens to commit a breach of any Restrictive Covenant, the Company shall have the following
rights and remedies (in accordance with applicable law and upon compliance with any necessary prerequisites imposed by law upon
the availability of such remedies), each of which rights an remedies shall be independent of the other and severally enforceable,
and all of which right and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the
Company under law or in equity (including, without limitation, the recovery of damages):

 

(a)        to
have the Restrictive Covenants specifically enforced (without posting bond and without the need to prove damages) by any court
having jurisdiction, including, without limitation, the right to seek an entry against Executive of restraining orders and injunctions
(preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether or not then continuing,
of such covenants;

 

(b)        to
require Executive to forfeit his right to receive the balance of any compensation due him which is not yet earned and accrued under
this Agreement (whether it be in the form of Annual Salary, expenses or paid time off); and

 

In addition, without limiting the Company’s
remedies for any breach by Executive of the Restrictive Covenants, except as required by law, if (i) the Company files a civil
action against Executive based on his alleged breach of the Restrictive Covenants, and (ii) the Company obtains preliminary injunctive
relief enjoining the Executive from breaching any of the Restrictive Covenants, or a court of competent jurisdiction issues a final
judgment (not subject to appeal, which shall include any order or judgment that finally disposes of the action) that the Executive
has breached any of the Restrictive Covenants, then the Executive shall promptly repay to the Company any payments of Severance
or Change in Control Severance under Sections 5.3 or 5.4(b) and the Company will have no obligation to pay any amount of Severance
or Change in Control Severance that remain payable by the Company under Sections 5.3 or 5.4(b). If, however, a court of competent
jurisdiction either denies the Company’s motion, request or application for preliminary injunctive relief or issues a final
judgment (not subject to appeal, which shall include any order or judgment that finally disposes of the action) that the Executive
has not breached any of the Restrictive Covenants, then Executive shall not be obligated to repay, and the Company shall not be
entitled to recoup, any of the Severance or Change in Control Severance payments made to the Executive pursuant to Sections 5.3
or 5.4(b).

 

6.4         Definition
of the Company. For this Section 6, the “Company” shall include all of the Company’s parents, subsidiaries,
and affiliates and their respective successors and assigns, and “affiliate” shall mean any entity that, directly
of indirectly, through one or more intermediaries, controls or is controlled by or is under common control with the Company. As
used in this Section 6.4, “control” shall mean the possession, directly or indirectly, of the powers to direct
or cause the direction of the management and policies of such entity, whether though the ownership of voting securities, by contract
or otherwise.

 

    	Page 4 of 6

     

    

 

6.5         Protected
Disclosures.  Executive understands that nothing contained in this Agreement limits Executive’s ability to communicate
with any federal, state or local governmental agency or commission, including to provide documents or other information, without
notice to the Company.  Executive also understands that nothing in this Agreement limits Executive’s ability to share
compensation information concerning Executive or others, except that this does not permit Executive to disclose compensation information
concerning others that Executive obtains because Executive’s job responsibilities require or allow access to such information.

 

6.6         Defend
Trade Secrets Act of 2016.  Executive understands that pursuant to the federal Defend Trade Secrets Act of 2016, Executive
shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret
that (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney;
and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other
document filed in a lawsuit or other proceeding, if such filing is made under seal.

 

7.          Section 409A
of the Code.

 

(a)         The
Severance and Change in Control Severance payable to Executive under Sections 5.3 and 5.4 of this Agreement are intended to be
exempt from the coverage of Section 409A of the Code because the payments are either made to Executive within the time periods
set forth in Treas. Reg. §1.409A-1(b)(4) and/or treated as separation pay due to involuntary separation from service pursuant
to the exemption set forth in Treas. Reg. §1.409A-1(b)(9)(iii). Each installment payment under this Agreement is intended
to be a separate payment for purposes of Treas. Reg. §1.409A-2(b)(2)(iii). To the extent that any payment or benefit due to
Executive under this Agreement provides for the payment of non-qualified deferred compensation benefits in connection with a termination
of the Executive’s employment (regardless of the reason for such termination), however, such termination of the Executive’s
employment triggering payment of benefits under the terms of this Agreement must also constitute a “separation from service”
under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h) before the Company shall make payment of such benefits.
To the extent that termination of the Executive’s employment does not constitute a separation of service under Section 409A(a)(2)(A)(i)
of the Code and Treas. Reg. §1.409A-1(h) (as the result of further services that are reasonably anticipated to be provided
by him to the Company or any of its affiliates or successors at the time his employment terminates), any benefits payable under
this Agreement that constitute non-qualified deferred compensation under Section 409A of the Code shall be delayed until after
the date of a subsequent event constituting a separation of service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg.
§1.409A-1(h). For purposes of clarification, this Section 7(a) shall not cause any forfeiture of benefits on the Executive’s
part, but shall only act as a delay in payment of such benefits until such time as a separation from service occurs.

 

(b)         Anything
in this Agreement to the contrary notwithstanding, if at the time of Executive’s separation from service within the meaning
of Section 409A of the Code, Executive is also a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of
the Code, then to the extent any payment or benefit that Executive becomes entitled to under this Agreement on account of Executive’s
separation from service would be considered deferred compensation subject to Section 409A of the Code, such payment shall
not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after
Executive’s separation from service, or (B) Executive’s death.  If any such delayed cash payment is otherwise
payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have
been paid during the six-month period but for the application of this provision, and the balance of the installments shall be payable
in accordance with their original schedule.

 

(c)         All
in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred
by Executive during the time periods set forth in this Agreement.  All reimbursements shall be paid as soon as administratively
practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year
in which the expense was incurred.  The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable
year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year. 
Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

(d)        The
parties intend that this Agreement will be administered in accordance with Section 409A of the Code. To the extent that any provision
of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner
so that all payments hereunder comply with Section 409A of the Code. The parties agree that this Agreement may be amended, as reasonably
requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations
in order to preserve the payments and benefits provided hereunder without additional cost to either party.

 

(e)        The
Company makes no representation or warranty and shall have no liability to Executive or any other person if any provisions of this
Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption
from, or the conditions of, such Section.

 

		8.	Other Provisions

 

8.1         Severability.
Executive acknowledges and agrees that (i) he has had an opportunity to seek advice of counsel in connection with this Agreement;
and (ii) the Restrictive Covenants are reasonable in geographical and temporal scope and in all other respects. If it is determined
by a court of competent jurisdiction that any provision of this Agreement, including, without limitation, any Restrictive Covenant,
or any part thereof, is invalid or unenforceable, the remainder of the Agreement shall not thereby be affected and shall be given
full effect, without regard to the invalid provisions. The parties hereto will substitute for the invalid or unenforceable provision
a new, mutually acceptable, valid and enforceable provision of like economic effect.

 

8.2         Blue
Penciling. If any court determines that any covenant in this Agreement, including, without limitation, any Restrictive Covenant
or any part thereof, is unenforceable because of the duration or geographical scope of such provision, the duration or scope of
such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form, such
provision shall then be enforceable and shall be enforced.

 

8.3         Indemnification.
Executive shall be entitled to indemnification in accordance with the Company’s policy and applicable state law.

 

8.4         Notices.
Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered in person, by facsimile
or electronic mail or by certified or registered mail, postage prepaid. Any such notice given by certified or registered mail shall
be deemed given five days after the date of deposit in the United States mails as follows:

 

(i)          If
to the Company:

 

Precipio, Inc.

4 Science Park, 3rd Floor

New Haven, CT 06511

 

    	Page 5 of 6

     

    

 

(ii)         If
to Executive, to:

 

Ilan Danieli

416 Lydecker Street

Englewood, NJ 07631

 

Any such person may by notice given in accordance
with this Section to the other party designate another address or person for receipt by such person of notices hereunder.

 

8.5         Entire
Agreement. This Agreement constitutes the entire agreement and understanding between the parties hereto with respect to the
subject matter hereof and terminates and supersedes any and all prior agreements, understandings and representations, whether written
or oral, by or between the parties hereto or their affiliates which may have related to the subject matter hereof in any way.

 

8.6         Waivers
and Amendments. This Agreement may be amended, superseded or canceled, and the terms hereof may be waived, only by a written
instrument singed by the parties or, in the case of a waiver, by the party waiving compliance. No delay by either party in exercising
any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any
such right, power or privilege nor any single or partial exercise as any such right, power or privilege, preclude any other or
further exercise thereof or the exercise of any other such right, power or privilege.

 

8.7         GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CONNECTICUT WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAW.

 

8.8         Venue.
The parties agree irrevocably to submit to the exclusive jurisdiction of the federal courts or, if no federal jurisdiction exists,
the state courts, located in New Haven, Connecticut, for the purposes of any suit, action or other proceeding brought by any party
arising out of any breach of any of the provisions of this Agreement and hereby waive, and agree not to assert by way of motion,
as a defense or otherwise, in any such suit, action, or proceeding, any claim that it is not personally subject to the jurisdiction
of the above-named courts, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit,
action or proceeding is improper, or that the provisions of this Agreement may not be enforced in or by such courts.

 

8.9         Assignment.
This Agreement, and Executive’s rights and obligations hereunder, may not be assigned by Executive without the prior written
consent of the Company; any purported assignment by Executive in violation hereof shall be null and void. In the event of any sale,
transfer or other disposition of all or substantially all of the Company’s assets or business, whether by merger, consolidation
or otherwise, the Company shall assign this Agreement and its rights and obligations hereunder.

 

8.10       Withholding.
The Company shall be entitled to withhold from any payments or deemed payments any amount of withholding required by applicable
law.

 

8.11       Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, permitted
assigns, heirs, executors and legal representatives.

 

8.12       Survival.
Anything in this Agreement to the contrary notwithstanding, to the extent applicable, Sections 1, 6 and 8 shall survive the termination
of this Agreement for any reason.

 

8.13       Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

8.14       Counterparts.
This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall
be an original but all such counterparts together shall constitute one and the same instrument. Each counterpart may consist of
two copies hereof each signed by one of the parties hereto.

 

8.15       Third-Party
Agreements and Rights. Executive represents to the Company that Executive’s execution of this Agreement, Executive’s
employment with the Company and the performance of Executive’s proposed duties for the Company will not violate any obligations
Executive may have to any previous employer or any other party. In Executive’s work for the Company, Executive will not disclose
or make use of any information in violation of any agreements with or rights of any previous employer or other party, and Executive
will not bring to the premises of the Company any copies or other tangible embodiments of non-public information belonging to or
obtained from any previous employment or other party.

 

IN WITNESS WHEREOF, the parties hereto have
signed their names as of the day and year first above written.

 

	PRECIPIO, INC. 	ILAN DANIELI 
	 	 
	S/Carl Iberger	S/Ilan Danieli
	Title: CFO	 
	Date:  August 7, 2018	Date:  August 7, 2018

 

    	Page 6 of 6

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