Document:

WELLS FARGO & COMPANY 8-K

 

Exhibit 4.5

 

[Face of Note]

 

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or 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.

 

	
CUSIP NO. 95001HGK1

	
FACE AMOUNT:  $___________

	
REGISTERED NO. ___

	
 

 

WELLS FARGO FINANCE LLC

 

MEDIUM-TERM NOTE,
SERIES A 

Fully and Unconditionally Guaranteed by Wells Fargo & Company

 

Principal at Risk Securities Linked to the S&P 500® Index
due May 20, 2021

 

WELLS FARGO FINANCE LLC, a limited liability company duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company,” which term includes any successor corporation under and as defined in the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the Maturity Payment Amount (as defined below), 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, on the Stated Maturity Date.  The “Initial Stated Maturity Date” shall be May 20, 2021. If the Calculation Day (as defined below) is not postponed, the Initial Stated Maturity Date will be the “Stated Maturity Date.”  If the Calculation Day is postponed, the “Stated Maturity Date” shall be the later of (i) the Initial Stated Maturity Date and (ii) three Business Days (as defined below) after the Calculation Day as postponed.  This Security shall not bear any interest. 

 

Any payments on this Security at Maturity will be made against presentation of this Security at the office or agency of the Company maintained for that purpose in the City of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose. 

 

“Face Amount” shall mean, when used with respect to this Security, the amount set forth on the face of this Security as its “Face Amount.”

 

 

 

Determination of Maturity Payment Amount

 

The “Maturity Payment Amount” of this Security will equal:

 

		
●

	
if the Ending Level is greater than the Starting Level: the Face Amount plus the lesser of:

 

 

 

(ii)            the Maximum Return;

 

		
●

	
if the Ending Level is less than or equal to the Starting Level, but greater than or equal to the Threshold Level: the Face Amount; or

 

		
●

	
if the Ending Level is less than the Threshold Level: the Face Amount minus:

 

 

 

All calculations with respect to the Maturity Payment Amount will be rounded to the nearest one hundred-thousandth, with five one-millionths rounded upward (e.g., 0.000005 would be rounded to 0.00001); and the Maturity Payment Amount will be rounded to the nearest cent, with one-half cent rounded upward.

 

“Index” shall mean the S&P 500® Index.

 

The “Pricing Date” shall mean March 4, 2020.

 

The “Starting Level” is 3003.37, the Closing Level of the Index on March 3, 2020.

 

The “Closing Level” of the Index on any Trading Day means the official closing level of the Index reported by the Index Sponsor on such Trading Day, as obtained by the Calculation Agent on such Trading Day from the licensed third-party market data vendor contracted by the Calculation Agent at such time; in particular, taking into account the decimal precision and/or rounding convention employed by such licensed third-party market data vendor on such date, subject to the provisions set forth below under “Adjustments to the Index,” “Discontinuance of the Index” and “Market Disruption Events.”

 

The “Ending Level” will be the Closing Level of the Index on the Calculation Day.

 

The “Threshold Level” is 2703.033 which is equal to 90% of the Starting Level.

 

The “Participation Rate” is 200%.

 

The “Maximum Return” is 12.40% of the Face Amount of this Security.

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“Index Sponsor” shall mean S&P Dow Jones Indices LLC.

 

“Business Day” shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions are authorized or required by law or regulation to close in New York, New York.

 

A “Trading Day” means a day, as determined by the Calculation Agent, on which (i) the Relevant Stock Exchanges with respect to each security underlying the Index are scheduled to be open for trading for their respective regular trading sessions and (ii) each Related Futures or Options Exchange is scheduled to be open for trading for its regular trading session.

 

The “Related Futures or Options Exchange” for the Index means an exchange or quotation system where trading has a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to the Index.

 

The “Relevant Stock Exchange” for any security underlying the Index means the primary exchange or quotation system on which such security is traded, as determined by the Calculation Agent.

 

The “Calculation Day” shall be May 18, 2021.  If such day is not a Trading Day, the Calculation Day will be postponed to the next succeeding Trading Day.  The Calculation Day is also subject to postponement due to the occurrence of a Market Disruption Event (as defined below). If a Market Disruption Event occurs or is continuing with respect to the Index on the Calculation Day, such Calculation Day will be postponed to the first succeeding Trading Day on which a Market Disruption Event has not occurred and is not continuing; however, if such first succeeding Trading Day has not occurred as of the eighth Trading Day after the originally scheduled Calculation Day, that eighth Trading Day shall be deemed to be the Calculation Day.  If the Calculation Day has been postponed eight Trading Days after the originally scheduled Calculation Day and a Market Disruption Event occurs or is continuing on such eighth Trading Day, the Calculation Agent will determine the Closing Level of the Index on such eighth Trading Day in accordance with the formula for and method of calculating the Closing Level of the Index last in effect prior to commencement of the Market Disruption Event, using the closing price (or, with respect to any relevant security, if a Market Disruption Event has occurred with respect to such security, its good faith estimate of the value of such security at the Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange) on such date of each security included in the Index.  As used herein, “closing price” means, with respect to any security on any date, the Relevant Stock Exchange traded or quoted price of such security as of the Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange.

 

“Calculation Agent Agreement” shall mean the Calculation Agent Agreement dated as of May 18, 2018 between the Company and the Calculation Agent, as amended from time to time.

 

“Calculation Agent” shall mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among other things, the determination of the 

 

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Ending Level and the Maturity Payment Amount, which term shall, unless the context otherwise requires, include its successors under such Calculation Agent Agreement.  The initial Calculation Agent shall be Wells Fargo Securities, LLC.  Pursuant to the Calculation Agent Agreement, the Company may appoint a different Calculation Agent from time to time after the initial issuance of this Security without the consent of the Holder of this Security and without notifying the Holder of this Security.

 

Adjustments to the Index

 

If at any time the method of calculating the Index or a Successor Equity Index, or the closing level thereof, is changed in a material respect, or if the Index or a Successor Equity Index is in any other way modified so that such index does not, in the opinion of the Calculation Agent, fairly represent the level of such index had those changes or modifications not been made, then the Calculation Agent will, at the close of business in New York, New York, on each date that the closing level of such index is to be calculated, make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive at a level of an index comparable to the Index or Successor Equity Index as if those changes or modifications had not been made, and the Calculation Agent will calculate the closing level of the Index or Successor Equity Index with reference to such index, as so adjusted. Accordingly, if the method of calculating the Index or Successor Equity Index is modified so that the level of such index is a fraction or a multiple of what it would have been if it had not been modified (e.g., due to a split or reverse split in such equity index), then the Calculation Agent will adjust the Index or Successor Equity Index in order to arrive at a level of such index as if it had not been modified (e.g., as if the split or reverse split had not occurred).

 

Discontinuance of the Index

 

If the Index Sponsor discontinues publication of the Index, and the Index Sponsor or another entity publishes a successor or substitute equity index that the Calculation Agent determines, in its sole discretion, to be comparable to the Index (a “Successor Equity Index”), then, upon the Calculation Agent’s notification of that determination to the Trustee and the Company, the Calculation Agent will substitute the Successor Equity Index as calculated by the Index Sponsor or any other entity and calculate the Ending Level as described above. Upon any selection by the Calculation Agent of a Successor Equity Index, the Company will cause notice to be given to the Holder of this Security.

 

In the event that the Index Sponsor discontinues publication of the Index prior to, and the discontinuance is continuing on, the Calculation Day and the Calculation Agent determines that no Successor Equity Index is available at such time, the Calculation Agent will calculate a substitute Closing Level for the Index in accordance with the formula for and method of calculating the Index last in effect prior to the discontinuance, but using only those securities that comprised the Index immediately prior to that discontinuance.  If a Successor Equity Index is selected or the Calculation Agent calculates a level as a substitute for the Index, the Successor Equity Index or level will be used as a substitute for the Index for all purposes, including the purpose of determining whether a Market Disruption Event exists.

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If on the Calculation Day the Index Sponsor fails to calculate and announce the level of the Index, the Calculation Agent will calculate a substitute Closing Level of the Index in accordance with the formula for and method of calculating the Index last in effect prior to the failure, but using only those securities that comprised the Index immediately prior to that failure; provided that, if a Market Disruption Event occurs or is continuing on such day, then the provisions set forth above under the definition of “Calculation Day” shall apply in lieu of the foregoing.

 

Market Disruption Events 

 

A “Market Disruption Event” means any of the following events as determined by the Calculation Agent in its sole discretion:

 

		
(A)

	
The occurrence or existence of a material suspension of or limitation imposed on trading by the Relevant Stock Exchanges or otherwise relating to securities which then comprise 20% or more of the level of the Index or any Successor Equity Index at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of movements in price exceeding limits permitted by those Relevant Stock Exchanges or otherwise.

 

		
(B)

	
The occurrence or existence of a material suspension of or limitation imposed on trading by any Related Futures or Options Exchange or otherwise in futures or options contracts relating to the Index or any Successor Equity Index on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of movements in price exceeding limits permitted by the Related Futures or Options Exchange or otherwise. 

 

		
(C)

	
The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market participants in general to effect transactions in, or obtain market values for, securities that then comprise 20% or more of the level of the Index or any Successor Equity Index on their Relevant Stock Exchanges at any time during the one-hour period that ends at the Close of Trading on that day.

 

		
(D)

	
The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market participants in general to effect transactions in, or obtain market values for, futures or options contracts relating to the Index or any Successor Equity Index on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that day.

 

		
(E)

	
The closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities that then comprise 20% or more of the level of the Index or any Successor Equity Index are traded or any Related Futures or Options Exchange prior to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant Stock Exchange or Related Futures or Options Exchange, as 

 

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applicable, at least one hour prior to the earlier of (1) the actual closing time for the regular trading session on such Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, and (2) the submission deadline for orders to be entered into the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, system for execution at such actual closing time on that day.

 

		
(F)

	
The Relevant Stock Exchange for any security underlying the Index or Successor Equity Index or any Related Futures or Options Exchange fails to open for trading during its regular trading session.

 

For purposes of determining whether a Market Disruption Event has occurred:

 

		
(1)

	
the relevant percentage contribution of a security to the level of the Index or any Successor Equity Index will be based on a comparison of (x) the portion of the level of such Index attributable to that security and (y) the overall level of the Index or Successor Equity Index, in each case immediately before the occurrence of the Market Disruption Event;

 

		
(2)

	
the “Close of Trading” on any Trading Day for the Index or any Successor Equity Index means the Scheduled Closing Time of the Relevant Stock Exchanges with respect to the securities underlying the Index or Successor Equity Index on such Trading Day; provided that, if the actual closing time of the regular trading session of any such Relevant Stock Exchange is earlier than its Scheduled Closing Time on such Trading Day, then (x) for purposes of clauses (A) and (C) of the definition of “Market Disruption Event” above, with respect to any security underlying the Index or Successor Equity Index for which such Relevant Stock Exchange is its Relevant Stock Exchange, the “Close of Trading” means such actual closing time and (y) for purposes of clauses (B) and (D) of the definition of “Market Disruption Event” above, with respect to any futures or options contract relating to the Index or Successor Equity Index, the “close of trading” means the latest actual closing time of the regular trading session of any of the Relevant Stock Exchanges, but in no event later than the Scheduled Closing Time of the Relevant Stock Exchanges;

 

		
(3)

	
the “Scheduled Closing Time” of any Relevant Stock Exchange or Related Futures or Options Exchange on any Trading Day for the Index or any Successor Equity Index means the scheduled weekday closing time of such Relevant Stock Exchange or Related Futures or Options Exchange on such Trading Day, without regard to after hours or any other trading outside the regular trading session hours; and

 

		
(4)

	
an “Exchange Business Day” means any Trading Day for the Index or any Successor Equity Index on which each Relevant Stock Exchange for the securities underlying the Index or any Successor Equity Index and each Related Futures or Options Exchange are open for trading during their respective regular 

 

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trading sessions, notwithstanding any such Relevant Stock Exchange or Related Futures or Options Exchange closing prior to its Scheduled Closing Time.

 

Calculation Agent

 

The Calculation Agent will determine the Maturity Payment Amount and the Ending Level.  In addition, the Calculation Agent will (i) determine if adjustments are required to the Closing Level of the Index under the circumstances described in this Security, (ii) if publication of the Index is discontinued, select a Successor Equity Index or, if no Successor Equity Index is available, determine the Closing Level of the Index under the circumstances described in this Security, and (iii) determine whether a Market Disruption Event or non-Trading Day has occurred. 

 

The Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which shall be a broker-dealer, bank or other financial institution) with respect to this Security.

 

All determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the Calculation Agent and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security.

 

Tax Considerations

 

The Company agrees, and by acceptance of a beneficial ownership interest in this Security each Holder of this Security will be deemed to have agreed (in the absence of a statutory, regulatory, administrative or judicial ruling to the contrary), for United States federal income tax purposes to characterize and treat this Security as a prepaid derivative contract that is an “open transaction.”

 

Redemption and Repayment

 

This Security is not subject to redemption at the option of the Company or repayment at the option of the Holder hereof prior to May 20, 2021.  This Security is not entitled to any sinking fund.

 

Acceleration

 

If an Event of Default, as defined in the Indenture, with respect to this Security shall occur and be continuing, the Maturity Payment Amount (calculated as set forth in the next sentence) of this Security may be declared due and payable in the manner and with the effect provided in the Indenture.  The amount payable to the Holder hereof upon any acceleration permitted under the Indenture will be equal to the Maturity Payment Amount hereof calculated as provided herein as though the date of acceleration was the Calculation Day.  

 

 

 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

7

 

 

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

[The remainder of this page has been left intentionally blank]

 

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IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

DATED: 

 

	
 

	
WELLS FARGO FINANCE LLC

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
Its:

  

	
 

	
Attest:

	

	
 

	
 

	
 

	
 

	
Its: 

TRUSTEE’S CERTIFICATE OF 

AUTHENTICATION 

This is one of the Securities of the 

series designated therein described 

in the within-mentioned Indenture.

 

	
 

	
 

	
 

	
CITIBANK, N.A.,

	
 

	
as Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
Authorized Signature

	
 

	
 

	
 

	
 

	
OR

	
 

	
 

	
 

	
 

	
WELLS FARGO BANK, N.A.,

	
 

	
as Authenticating Agent for the Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
Authorized Signature

	
 

 

 

 

[Reverse of Note]

 

WELLS FARGO FINANCE LLC

 

MEDIUM-TERM NOTE, SERIES A

Fully and Unconditionally Guaranteed by Wells Fargo & Company

 

Principal at Risk Securities Linked to the S&P 500® Index
due May 20, 2021

 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an indenture dated as of April 25, 2018, as amended or supplemented from time to time (herein called the “Indenture”), among the Company, as issuer, Wells Fargo & Company, as guarantor (the “Guarantor”) and Citibank, N.A., as trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantor, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered.  This Security is one of the series of the Securities designated as Medium-Term Notes, Series A, of the Company.  The amount payable on the Securities of this series may be determined by reference to the performance of one or more equity-, commodity- or currency-based indices, exchange traded funds, securities, commodities, currencies, statistical measures of economic or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure or may bear interest at a fixed rate or a floating rate.  The Securities of this series may mature at different times, be redeemable at different times or not at all, be repayable at the option of the Holder at different times or not at all and be denominated in different currencies.

 

The Securities are issuable only in registered form without coupons and will be either (a) book-entry securities represented by one or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities issued to and registered in the names of, the beneficial owners or their nominees.

 

The Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of interest against a Holder of this Security.

 

Guarantee 

 

The Securities of this series are fully and unconditionally guaranteed by the Guarantor as and to the extent set forth in the Indenture.

 

Modification and Waivers 

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the Guarantor and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the

 

10

 

Company, the Guarantor and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be affected, acting together as a class.  The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the Indenture, acting together as a class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company or the Guarantor with those provisions of the Indenture.  Certain past defaults under the Indenture and their consequences may be waived under the Indenture by the Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series.  Solely for the purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in the requisite aggregate principal amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof as the “Face Amount” hereof.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

Defeasance

 

Section 403 and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon compliance by the Company or the Guarantor with certain conditions set forth therein, shall not apply to this Security.  The remaining provisions of Section 401 of the Indenture shall apply to this Security.

 

Authorized Denominations

 

This Security is issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which is an integral multiple of $1,000.

 

Registration of Transfer

 

Upon due presentment for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis, Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental charge imposed in connection therewith.

 

This Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines that this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z) an Event of Default with respect

 

11

 

to the Securities represented hereby has occurred and is continuing.  If this Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, having the same date of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating a like amount. 

 

This Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor.  Except as provided above, owners of beneficial interests in this Global Security will not be entitled to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under the Indenture.

 

Prior to due presentment of this Security for registration of transfer, the Company, the Guarantor, the Trustee and any agent of the Company, the Guarantor or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Guarantor, the Trustee nor any such agent shall be affected by notice to the contrary.

 

Obligation of the Company Absolute

 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the Maturity Payment Amount at the times, place and rate, and in the coin or currency, herein prescribed, except as otherwise provided in this Security.

 

No Personal Recourse

 

No recourse shall be had for the payment of the Maturity Payment Amount, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation or of the Guarantor or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released.

 

Defined Terms

 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless otherwise defined in this Security.

 

Governing Law

 

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

 

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ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
TEN COM

	
--

	
as tenants in common

	
 

	
 

	
 

	
TEN ENT

	
--

	
as tenants by the entireties

	
 

	
 

	
 

	
JT TEN

	
--

	
as joint tenants with right

	
 

	
 

	
of survivorship and not

	
 

	
 

	
as tenants in common

 

	
UNIF GIFT MIN ACT

	
--

	
 

	
Custodian

	
 

	
 

	
 

	
(Cust)

	
 

	
(Minor)

 

Under Uniform Gifts to Minors Act

 

	
 

	
 

	
(State)

	
 

 

Additional abbreviations may also be used though not in the above list.

 

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

 

Please Insert Social Security or

Other Identifying Number of Assignee

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

(Please print or type name and address including postal zip code of Assignee)

 

13

 

the within Security of WELLS FARGO FINANCE LLC and does hereby irrevocably constitute and appoint __________________ attorney to transfer the said Security on the books of the Company, with full power of substitution in the premises.

 

	
Dated:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

NOTICE:  The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change whatever.

 

14TRICCAR, Inc. 8-K

 

EXHIBIT 10.1

 

REORGANIZATION
AND STOCK PURCHASE AGREEMENT

 

This REORGANIZATION AND STOCK PURCHASE
AGREEMENT dated as of December 12, 2019 (this "Agreement") is by and among Frontier Oilfield Services, Inc. (“Frontier”),
TRICCAR Holdings, Inc. (“TRICCAR”) and shareholders of Frontier (“Frontier Shareholders”).

 

RECITALS

 

WHEREAS, designees
of TRICCAR desire to acquire directly or indirectly a controlling interest in the equity of Frontier through the acquisition of
80,000,000 shares of Frontier common stock (the “Frontier Shares”); and

 

NOW, THEREFORE, the
Board of Directors of Frontier and the Board of Directors of TRICCAR deem it advisable and in the best interests of their corporations
and the respective equity holders that TRICCAR acquire the Frontier Shares, in accordance with the terms and conditions of this
Reorganization and Stock Purchase Agreement.

 

		1.	Pre-Closing Actions of Frontier. Immediately upon execution of this Agreement and prior
to any Closing as set forth herein, Frontier shall undertake the following actions:

 

		(a)	Frontier shall have completed a reincorporation from Texas to the State of Nevada (the “Reincorporation”).
Pursuant to the Reincorporation, Frontier shall merge with and into a Nevada Corporation to be formed and named TRICCAR, Inc.,
which shall have authorized capital consisting of 400,000,000 shares of common stock consisting of 372,500,000 shares Class A shares
with 1:1 voting rights and 27,500,000 Class B shares with 20:1 voting rights, and 50,000,000 shares of preferred stock.

 

		(b)	The Board of Directors of Frontier (as reincorporated in Nevada) shall unanimously approve and
deliver to Cutler Law Group (the "Escrow Agent") in escrow (the "Escrow"), pursuant to the terms of the Escrow
Agreement attached hereto as Exhibit A, notarized board and shareholder resolutions (as required) with respect to (a) approving
all of the transactions set forth herein; (b) directing the size of the Board of Directors to be seven members; and (c) electing
William M. Townsend, Katrina Yao, Frank Federer, Steve Hayden and a designee of Newt Dorsett to the board of directors of Frontier
(the “Resolutions”) and two to remain open until such time as required.

 

		(c)	Frontier shall deliver to Escrow 80,000,000 shares of Frontier Common Stock (the "Escrowed
Frontier Shares").

 

		(d)	Frontier shall deliver to Escrow notarized resignations as officers and directors of all prior
officers and directors.

 

		(e)	Frontier shall use its reasonable best efforts to prepare and complete the documents necessary
to be filed with local, state and federal authorities to consummate the transactions contemplated hereby.

 

		2.	Pre-Closing Actions of TRICCAR. Immediately upon execution of this Agreement and prior to
the Closing as set forth herein, TRICCAR shall undertake the following actions:

 

		(a)	TRICCAR shall deliver to Escrow the common stock shares, preferred stock shares, or other securities
that represent 100% of the equity of TRICCAR such that at Closing, TRICCAR shall become a wholly-owned subsidiary of Frontier (the
“TRICCAR Escrowed Shares”).

 

    36

     

    

 

		3.	Conditions to Closing.

 

The parties'
obligation to close the proposed Acquisition will be subject to specified conditions precedent including, but not limited to, the
following:

 

		(a)	the representations and warranties of Frontier as set forth in Section 7 herein shall remain true and correct as of the Closing
Date and no material adverse change to the financial condition of Frontier shall have occurred;

 

		(b)	the representations and warranties of TRICCAR as set forth in Section 8 herein shall remain true and correct as of the Closing
Date and no material adverse change in the business or financial condition of TRICCAR shall have occurred;

 

		(c)	all the documents necessary to be filed with local, state and federal authorities are prepared, and to the extent applicable,
filed.

 

		(d)	Frontier shall have provided the Frontier Board Resolutions and any other documents or approval required to complete the transactions
contemplated hereby and in the Frontier Board Resolutions;

 

		(e)	Frontier shall retain its good standing as a publicly traded company under the Securities Exchange Act of 1934, trading on
OTC Pink Market maintained by OTC Markets Group under the symbol "FOSI";

 

		4.	At the Closing.

 

		(a)	At the Closing, Cutler Law Group shall release from escrow to TRICCAR the Frontier Board and Shareholder
Resolutions and the Resignations from Frontier.

 

		(b)	At the Closing, Cutler Law Group shall release the Escrowed Frontier Shares to Frontier Exchange.

 

		(c)	At the Closing, Cutler Law Group shall release the Escrowed TRICCAR Shares to Frontier.

 

		5.	Timing of Closing. The closing of the transactions contemplated by this Agreement ((the
" Closing") shall occur upon the satisfaction of the conditions set forth in this Agreement and upon instructions from
the parties hereto to the Escrow Agent. The closing date shall occur on or before December 31, 2019 in the event such conditions
are met, which would be extended to not later than February 28, 2020 upon agreement of the parties. Unless otherwise advised in
writing by the parties, in the event the Closing does not occur on or before February 28, 2020, (i) the Escrow Agent shall return
the Escrowed Frontier Shares, the Resignations and the Frontier Board Resolutions to Frontier and/or the Frontier Shareholder;
and (ii) the Escrow Agent shall return the TRICCAR Escrowed Shares to TRICCAR.

 

		6.	Post Closing Obligation. Subsequent to closing TRICCAR shall deliver a total of $250,000
in cash to designees of Frontier. Such cash shall be payable in immediately available funds due 10 business days after completion
of TRICCAR’s proposed Series B investment round.

 

		7.	Representations of Frontier. Frontier represents and warrants as follows:

 

		(a)	Ownership of Shares. As of the Closing Date, shareholders of TRICCAR will become the owner
of the Escrowed Frontier Shares. The Escrowed Frontier Shares will be free from claims, liens or other encumbrances, except as
provided under applicable federal and state securities laws;

 

    37

     

    

 

		(b)	Fully paid and Nonassessable. The Escrowed Frontier Shares constitute duly and validly issued
securities of Frontier, and are fully paid and nonassessable, and Frontier further represents that it has the power and the authority
to execute this Agreement and to perform the obligations contemplated hereby;

 

		(c)	Organization of Frontier; Authorization. Frontier is a corporation duly organized, validly
existing and in good standing under the laws of Texas (which shall pursuant hereto be reincorporated in Nevada) with full corporate
power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution, delivery and
performance of this Agreement have been duly authorized by all necessary corporate action of Frontier and this Agreement constitutes
a valid and binding obligation of Frontier enforceable against it in accordance with its terms. Frontier has no subsidiaries.

 

		(d)	Capitalization. Upon completion of the reincorporation to Nevada, the authorized capital
stock of Frontier consists of 450,000,000 shares of common stock, par value $0.0001 per share, and 50,000,000 shares of Preferred
Stock, par value $0.001 per share. As of the Closing Date, Frontier will have a total of no more than 20,000,000 shares of common
stock issued and outstanding. No other securities are issued or outstanding. As of the Closing Date, all of the issued and outstanding
shares of common stock of Frontier are validly issued, fully paid and non-assessable. There is not and as of the Closing Date,
there will not be outstanding any warrants, options or other agreements on the part of Frontier obligating Frontier to issue any
additional shares of common or preferred stock or any of its securities of any kind. Frontier will not issue any shares of capital
stock from the date of this Agreement through the Closing Date. The Common Stock of Frontier is presently trading on OTCQB Market
maintained by OTC Markets Group under the symbol "FOSI". The Common Stock of Frontier is not subject to any restriction
on deposit, transfer or any other services pursuant to a “chill” by the Depository Trust Company.

 

		(e)	Ownership of Frontier Shares. The delivery by Escrow at Closing of certificates or other
evidence of ownership provided herein for the Escrowed Frontier Shares will result in the immediate acquisition of record and beneficial
ownership of the Escrowed Frontier Shares, free and clear of all encumbrances.

 

		(e)	No Conflict as to Frontier. Neither the execution and delivery of this Agreement nor the
consummation of the exchange of the Frontier Shares will (a) violate any provision of the certificate of incorporation or by-laws
(or other governing instrument) of Frontier or (b) violate, or be in conflict with, or constitute a default (or an event which,
with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance
required by, or excuse performance by any Person of any of its obligations under, or cause the acceleration of the maturity of
any debt or obligation pursuant to, or result in the creation or imposition of any encumbrance upon any property or assets of Frontier
under, any material agreement or commitment to which Frontier is a party or by which its property or assets is bound, or to which
any of the property or assets of Frontier is subject, or (c) violate any statute or law or any judgment, decree, order, regulation
or rule of Governmental Body applicable to Frontier except, in the case of violations, conflicts, defaults, terminations, accelerations
or encumbrances described in clause (b) of this Section for such matters which are not likely to have a material adverse effect
on the business or financial condition of Frontier. The term "Governmental Body" shall mean any government, municipality
or political subdivision thereof, whether federal, state, local or foreign, or any governmental or quasi-governmental agency, authority,
board, bureau, commission, department, instrumentality or public body, or any court, arbitrator, administrative tribunal or public
utility.

 

		(g)	Consents and Approvals of Governmental Authorities. No consent, approval or authorization
of, or declaration, filing or registration with, any Governmental Body or quasi-governmental body is required to be made or obtained
by Frontier in connection with the execution, delivery and performance of this Agreement by Frontier or the consummation of the
sale of the Escrowed Frontier Securities.

 

    38

     

    

 

		(h)	Other Consents. No consent of any Person is required to be obtained by Frontier to the execution,
delivery and performance of this Agreement or the consummation of the sale of the Escrowed Frontier Securities, including, but
not limited to, consents from parties to leases or other agreements or commitments.

 

		(i)	Litigation. There is no action, suit, inquiry, proceeding or investigation by or before
any Governmental body pending or threatened in writing against or involving Frontier, any of its officers or directors, or which
questions or challenges the validity of this Agreement. There are no pending or threatened disputes with any prior officer or director
of Frontier. Frontier is not subject to any judgment, order or decree that is likely to have a material adverse effect on the business
or financial condition of Frontier.

 

		(j)	Absence of Certain Changes. From June 30, 2019, to the date hereof, Frontier has not:

 

		1.	suffered damage or destruction of any of its properties or assets (whether or not covered by insurance)
which is materially adverse to the financial condition of Frontier, or made any disposition of any of its material properties or
assets other than in the ordinary course of business;

 

		2.	made any change or amendment in its certificate of incorporation or by-laws, or other governing
instruments, except as contemplated hereby or required to effect the transactions set forth herein;

 

		3.	organized any new subsidiary or acquired any securities of any Person or any equity or ownership
interest in any business;

 

		4.	borrowed any funds or incurred, or assumed or become subject to, whether directly or by way of
guarantee or otherwise, any obligation or liability with respect to any such indebtedness for borrowed money;

 

		5.	paid, discharged or satisfied any material claim, liability or obligation (absolute, accrued, contingent
or otherwise);

 

		6.	prepaid any material obligation having a maturity of more than 90 days from the date such obligation
was issued or incurred;

 

		7.	cancelled any material debts or waived any material claims or rights;

 

		8.	written off or been required to write off any notes or accounts receivable;

 

		9.	with the exception of the liability of Frontier’s transfer agent (which does not exceed $3,000),
incurred any liability (in excess of $3,000.00) or other obligation.

 

		(k)	Contracts and Commitments. Frontier is not a party to any:

 

		1.	Contract or agreement (except for this Agreement) involving any liability, obligation or covenant
on the part of Frontier except with respect to its transfer agent.

 

		2.	Lease of personal property;

 

		3.	Employee bonus, stock option or stock purchase, performance unit, profit-sharing, pension, savings,
retirement, health, deferred or incentive compensation, insurance or other material employee benefit plan (as defined in Section
2(3) of ERISA) or program for any of the employees, former employees or retired employees of Frontier;

 

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		4.	Commitment, contract or agreement that is currently expected by the management of Frontier to result
in any material loss upon completion or performance thereof;

 

		5.	Contract, agreement or commitment with any officer, employee, agent, consultant, advisor, salesman,
sales representative, value added reseller, distributor or dealer; or

 

		6.	Employment agreement or other similar agreement.

 

		(l)	Compliance with Law. The operations of Frontier have been conducted in accordance with all
applicable laws and regulations of all Governmental Bodies having jurisdiction over them, except for violations thereof which are
not likely to have a material adverse effect on the business or financial condition of Frontier. Frontier has not received any
notification of any asserted present or past failure by it to comply with any such applicable laws or regulations. Frontier has
all material licenses, permits, orders or approvals from the Governmental Bodies required for the conduct of its business, issued
or in process, and is not in material violation of any such licenses, permits, orders and approvals. All such licenses, permits,
orders and approvals are in full force and effect, and no suspension or cancellation of any thereof has been threatened.

 

		(m)	Tax Matters.

 

		1.	Frontier (1) has filed or shall file prior to Closing all nonconsolidated and noncombined Tax Returns
and all consolidated or combined Tax Returns of Frontier (for the purposes of this Section, such tax Returns shall be considered
nonconsolidated and noncombined Tax Returns) required to be filed through the date hereof and has paid any Tax due through December
31, 2018 with respect to the time periods covered by such nonconsolidated and noncombined Tax Returns and shall timely pay any
such Taxes required to be paid by it after the date hereof with respect to such Tax Returns and (2) shall prepare and timely file
all such nonconsolidated and noncombined Tax Returns required to be filed after the date hereof and through the Closing Date and
pay all Taxes required to be paid by it with respect to the periods covered by such Tax Returns; (B) all such Tax Returns filed
pursuant to clause (A) after the date hereof shall, in each case, be prepared and filed in a manner consistent in all material
respects (including elections and accounting methods and conventions) with such Tax Return most recently filed in the relevant
jurisdiction prior to the date hereof, except as otherwise required by law or regulation. Any such Tax Return filed or required
to be filed after the date hereof shall not reflect any new elections or the adoption of any new accounting methods or conventions
or other similar items, except to the extent such particular reflection or adoption is required to comply with any law or regulation.
"Affiliate" of any person means any other person directly or indirectly through one or more intermediary persons, controlling,
controlled by or under common control with such person. "Tax" (including, with correlative meaning, the terms "Taxes"
and "Taxable") shall mean: (i)(A) any net income, gross income, gross receipts, sales, use, ad valorem, transfer,
transfer gains, franchise, profits, license, withholding, payroll, employment, excise, severance, stamp, rent, recording, occupation,
premium, real or personal property, intangibles, environmental or windfall profits tax, alternative or add-on minimum tax, customs
duty or other tax, fee, duty, levy, impost, assessment or charge of any kind whatsoever (including but not limited to taxes assessed
to real property and water and sewer rents relating thereto), together with; (B) any interest and any penalty, addition to
tax or additional amount imposed by any Governmental Body (domestic or foreign) (a "Tax Authority") responsible for the
imposition of any such tax and interest on such penalties, additions to tax, fines or additional amounts, in each case, with respect
to any party hereto, its business or assets (or the transfer thereof); (ii) any liability for the payment of any amount of
the type described in the immediately preceding clause (i) as a result of a party hereto being a member of an affiliated or
combined group with any other person at any time on or prior to the date of Closing; and (iii) any liability of a party hereto
for the payment of any amounts of the type described in the immediately preceding clause (i) as a result of a contractual
obligation to indemnify any other person. "Tax Return" shall mean any return or report (including elections, declarations,
disclosures, schedules, estimates and information returns) required to be supplied to any Tax Authority.

 

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		2.	Frontier represents that prior to Closing, all consolidated or combined Tax Returns (except those
described in subparagraph (1) above) required to be filed by any person through December 31, 2018 that are required or permitted
to include the income, or reflect the activities, operations and transactions, of Frontier for any taxable period shall have been
timely filed, and the income, activities, operations and transactions of Frontier shall have been properly included and reflected
thereon. Frontier shall prepare and file, or cause to be prepared and filed, all such consolidated or combined Tax Returns that
are required or permitted to include the income, or reflect the activities, operations and transactions, of Frontier, with respect
to any taxable year or the portion thereof ending on or prior to the Closing Date, including, without limitation, Frontier’s
consolidated federal income tax return for such taxable years. All Tax Returns filed pursuant to this subparagraph (2) after the
date hereof shall, in each case, to the extent that such Tax Returns specifically relate to Frontier and do not generally relate
to matters affecting other members of Frontier’s consolidated group, be prepared and filed in a manner consistent in all
material respects (including elections and accounting methods and conventions) with the Tax Return most recently filed in the relevant
jurisdictions prior to the date hereof, except as otherwise required by law or regulation. Frontier has paid or will pay all Taxes
that may now or hereafter be due with respect to the taxable periods covered by such consolidated or combined Tax Returns.

 

		3.	There is no (nor has there been any request for an) agreement, waiver or consent providing for
an extension of time with respect to the assessment of any Taxes attributable to Frontier, or its assets or operations and no power
of attorney granted by Frontier with respect to any Tax matter is currently in force.

 

		4.	There is no action, suit, proceeding, investigation, audit, claim, demand, deficiency or additional
assessment in progress, pending or threatened against or with respect to any Tax attributable to Frontier or its assets or operations.

 

		5.	All amounts required to be withheld as of the Closing Date for Taxes or otherwise have been withheld
and paid when due to the appropriate agency or authority.

 

		(n)	Borrowing and Guarantees. Frontier is currently completing reorganization and elimination
of debt which appears on its current financial statements. Except for not more than $5,000 in current accounts payable, at the
Closing, that will be paid by Frontier at closing, Frontier (a) will not have any indebtedness for borrowed money, (b) are not
lending or committed to lend any money (except for advances to employees in the ordinary course of business), and (c) are not guarantors
or sureties with respect to the obligations of any Person.

 

		(o)	Environmental Matters.

 

		1.	At all times prior to the date hereof, Frontier has complied in all material respects with applicable
environmental laws, orders, regulations, rules and ordinances, the violation of which would have a material adverse effect on the
business or financial condition of Frontier, or which would require a payment by Frontier in excess of $2,000 in the aggregate,
and which have been duly adopted, imposed or promulgated by any legislative, executive, administrative or judicial body or officer
of any Governmental Body.

 

		2.	The environmental licenses, permits and authorizations that are material to the operations of Frontier
and its Subsidiary, taken as a whole, are in full force and effect.

 

		(p)	Disclosure. Neither this Agreement, the Schedules hereto nor any of the Transaction Documents contain any untrue statement
of a material fact with respect to Frontier, or omit to state a material fact necessary in order to make the statements contained
herein or therein with respect to Frontier, not misleading. Frontier has no knowledge of any events, transactions or other facts
which, either individually or in the aggregate, may give rise to circumstances or conditions which would have a material adverse
effect on the general affairs or the condition of business of Frontier. “Transaction Documents” shall mean, collectively,
this Agreement, and each of the other agreements and instruments to be executed and delivered by all or some of the parties hereto
in connection with the consummation of the transactions contemplated hereby.

 

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		(q)	Financial Statements. Frontier represents that the periodic filings of Frontier with the
United States Securities and Exchange Commission are current, complete and accurate in all material respects. The financial statements
of Frontier through the date of this Agreement attached hereto as Exhibit A, were prepared in accordance with generally accepted
accounting principles, consistently applied, and represent fairly the financial condition, assets and revenues of Frontier as of
the date thereof.

 

		8.	Representations of TRICCAR. TRICCAR for their respective rights and interests represent
and warrant as follows:

 

		(a)	Authorization. The execution, delivery and performance of this Agreement have been duly
authorized by TRICCAR and this Agreement constitutes a valid and binding obligation; enforceable against in accordance with its
terms.

 

		(b)	No Conflict as to TRICCAR and any Subsidiaries. Neither the execution and delivery of this
Agreement nor the consummation of the transactions contemplated herein will (a) violate any provision of the organizational documents
of TRICCAR or (b) violate, or be in conflict with, or constitute a default (or an event which, with notice or lapse of time or
both, would constitute a default) under, or result in the termination of, any material agreement or commitment to which TRICCAR
is a party, or (c) violate any statute or law or any judgment, decree, order, regulation or rule of any court or other Governmental
Body applicable to TRICCAR except, in the case of violations, conflicts, defaults, terminations, accelerations or Encumbrances
described in clause (b) of this Section for such matters which are not likely to have a material adverse effect on the business
or financial condition of TRICCAR.

 

		(c)	Consents and Approvals of Governmental Authorities. No consent, approval or authorization
of, or declaration, filing or registration with, any Governmental Body is required to be made or obtained by TRICCAR in connection
with the execution, delivery and performance of this Agreement by TRICCAR or the consummation of the transactions contemplated
herein.

 

		(d)	Other Consents. No consent of any Person is required to be obtained by TRICCAR to the execution,
delivery and performance of this Agreement or the consummation of the transactions contemplated herein, including, but not limited
to, consents from parties to leases or other agreements or commitments, except for any consent which the failure to obtain would
not be likely to have a material adverse effect on the business and financial condition of TRICCAR.

 

		(e)	Financial Statements. The financial statements of TRICCAR attached hereto as Exhibit B,
were prepared in accordance with generally accepted accounting principles, consistently applied, and represent fairly the financial
condition, assets and revenues of TRICCAR as of the date thereof.

 

		9.	Survival of Representations.

 

		(a)	Survival of Frontier Representations, Warranties and Covenants. Notwithstanding any right
of TRICCAR fully to investigate the affairs of Frontier, and notwithstanding any knowledge of facts determined or determinable
by TRICCAR pursuant to such investigation or right of investigation, TRICCAR has the right to rely fully upon the representations,
warranties, covenants and agreements of Frontier contained in this Agreement, or listed or disclosed on any Schedule hereto or
in any instrument delivered in connection with or pursuant to any of the foregoing. All such representations, warranties, covenants
and agreements shall survive the execution and delivery of this Agreement and the Closing hereunder.

 

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		(b)	Survival of TRICCAR Representations, Warranties and Covenants. Notwithstanding any right
of Frontier fully to investigate the affairs of TRICCAR, and notwithstanding any knowledge of facts determined or determinable
by Frontier pursuant to such investigation or right of investigation, Frontier has the right to rely fully upon the representations,
warranties, covenants and agreements of TRICCAR contained in this Agreement, or listed or disclosed on any Schedule hereto or in
any instrument delivered in connection with or pursuant to any of the foregoing. All such representations, warranties, covenants
and agreements shall survive the execution and delivery of this Agreement and the Closing hereunder.

 

		10.	Due Diligence. Frontier agrees to cooperate with the TRICCAR’s due diligence
investigation of its business and to provide TRICCAR and its representatives with prompt and reasonable access to key employees
and to books, records, contracts and other information pertaining to the business of Frontier (the "Due Diligence Information").

 

		11.	Confidentiality; Non-competition. TRICCAR will use the Due Diligence Information solely
for the purpose of TRICCAR’s due diligence investigation of the business of Frontier, and unless and until the parties consummate
transactions contemplated hereby, TRICCAR, its affiliates, directors, officers, employees, advisors, and agents (TRICCAR’s
"Representatives") will keep the Due Diligence Information strictly confidential. TRICCAR will disclose the Due Diligence
Information only to those Representatives of TRICCAR who need to know such information for the purpose of consummating the transactions
contemplated hereby. TRICCAR agrees to be responsible for any breach of this paragraph 11 by any of the TRICCAR’s Representatives.
In the event the transactions contemplated hereby are not consummated, TRICCAR will return to Frontier any materials containing
Due Diligence Information, or will certify in writing that all such materials or copies of such materials have been destroyed.
TRICCAR also will not use any Due Diligence Information to compete with Frontier in the event that the acquisition is not consummated.
The provisions of this paragraph 11 will survive the termination of this agreement.

 

		12.	Employees of the Business. Until the consummation of the transactions contemplated hereby,
neither TRICCAR nor Frontier will solicit or recruit the employees of each other's businesses.

 

		13.	Exclusive Dealing. It is understood Frontier is currently disposing of assets and shall
continue to do so per requirements of Frontier to facilitate the transactions contemplated hereby. Until January 30, 2020, Frontier
will not enter into any agreement, discussion, or negotiation with, or provide information to, or solicit, encourage, entertain
or consider any inquiries or proposals from, any other corporation, fire or other person with respect to (a) the possible disposition
of a material portion of the business of Frontier not already discussed with TRICCAR, or (b) any business combination involving
Frontier, whether by way of merger, consolidation, share exchange or other transaction.

 

		14.	Notices.

 

Any notice
which any of the parties hereto may desire to serve upon any of the other parties hereto shall be in writing and shall be conclusively
deemed to have been received by the party at its address, if mailed, postage prepaid, United States mail, registered, return receipt
requested, to the following addresses:

 

	If to Frontier	Frontier Oilfield Services, Inc.
	 	220 Travis Street, Suite 501
	 	Shreveport, LA 71101
	 	Attn:  Donald Ray Lawhorne
	 	 
	If to TRICCAR:	TRICCAR Holdings, Inc.
	 	848 N. Rainbow Blvd., Suite 3254
	 	Las Vegas, NV 89107
	 	Attn:  William M. Townsend

 

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	 	Copy to
	 	 
	 	Cutler Law Group, P.C.
	 	6575 West Loop South, Suite 500
	 	Bellaire, TX 77401
	 	Attn:  M. Richard Cutler

 

		15.	Successors.

 

This Agreement
shall be binding upon and inure to the benefit of the heirs, personal representatives and successors and assigns of the parties.

 

		16.	Choice of Law.

 

This Agreement
shall be construed and enforced in accordance with the laws of the State of Nevada, and the parties submit to the exclusive jurisdiction
of the courts of Nevada in respect of all disputes arising hereunder.

 

		17.	Counterparts.

 

This Agreement
may be signed in one or more counterparts, all of which taken together shall constitute an entire agreement.

 

		18.	Public Announcement.

 

The parties
shall make no public announcement concerning this agreement, their discussions or any other letters, memos or agreements between
the parties relating to this agreement except upon mutual written consent. Either of the parties, but only after reasonable consultation
with the other, may make disclosure if required under applicable law.

 

		19.	Entire Agreement.

 

This Agreement
sets forth the entire agreement and understanding of the Parties hereto with respect to the transactions contemplated hereby, and
supersedes all prior agreements, arrangements and understandings related to the subject matter hereof. No understanding, promise,
inducement, statement of intention, representation, warranty, covenant or condition, written or oral, express or implied, whether
by statute or otherwise, has been made by any Party hereto which is not embodied in this Agreement or the written statements, certificates,
or other documents delivered pursuant hereto or in connection with the transactions contemplated hereby, and no party hereto shall
be bound by or liable for any alleged understanding, promise, inducement, statement, representation, warranty, covenant or condition
not so set forth.

 

		20.	Costs and Expenses.

 

Except as otherwise
specifically set forth herein, each party will bear its own attorneys, brokers, investment bankers, agents, and finders employed
by, such party. The parties will indemnify each other against any claims, costs, losses, expenses or liabilities arising from any
claim for commissions, finder's fees or other compensation in connection with the transactions contemplated herein which may be
asserted by any person based on any agreement or arrangement for payment by the other party.

 

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		21.	Attorney’s Fees.

 

Should any
action be commenced between the parties to this Agreement concerning the matters set forth in this Agreement or the right and duties
of either in relation thereto, the prevailing party in such Action shall be entitled, in addition to such other relief as may be
granted, to a reasonable sum as and for its Attorney’s Fees and Costs.

 

		22.	Finders.

 

Frontier represents
and warrants that there are no finders or other parties which have represented Frontier in connection with this transaction which
have not been previously provided with appropriate compensation. In the event any such finders make a claim for any fee, share
issuance of other compensation in connection with the transactions contemplated hereby, they shall be the sole responsibility of
Frontier. TRICCAR represents and warrants that there are no finders or other parties which have represented TRICCAR in connection
with this transaction. In the event any such finders make a claim for any fee, share issuance of other compensation in connection
with the transactions contemplated hereby, they shall be the sole responsibility of TRICCAR.

 

[Remainder of this page intentionally left blank]

 

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

 

	For and on behalf of:	Frontier Oilfield Services, Inc. 
	 	a Texas corporation	 
	 	 	 	 
	 	By:	/s/ Donald Ray Lawhorne	 
	 	 	Donald Ray Lawhorne	 
	 	 	Chief Executive Officer	 
	 	 	 	 
	For and on behalf of:	TRICCAR Holdings, Inc.	 
	 	 	 	 
	 	By:	/s/ William M. Townsend	 
	 	 	William M. Townsend	 
	 	 	President and Chief Executive Officer

 

    46

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