Document:

Exhibit 4.2

 

EXECUTION VERSION

This SECOND SUPPLEMENTAL INDENTURE (the “Second Supplemental Indenture”), dated as of November 9, 2017, between STAR BULK CARRIERS CORP., a corporation duly organized and existing under the laws of the Republic of The Marshall Islands (the “Company”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (the “Trustee”).

RECITALS

WHEREAS, the Company and the Trustee have heretofore executed and delivered an indenture, dated as of November 6, 2014 (the “Base Indenture”), providing for the issuance by the Company from time to time of its Securities to be issued in one or more series;

WHEREAS, the Base Indenture is incorporated herein by this reference, and the Base Indenture, as supplemented by this Second Supplemental Indenture and any other supplemental indentures applicable to the Securities created pursuant to this Second Supplemental Indenture, is herein called the “Indenture”;

WHEREAS, Sections 2.01, 2.02 and 9.01 of the Base Indenture provide, among other things, that the Company and the Trustee may enter into indentures supplemental to the Base Indenture to provide for the issuance of, and to establish the form, terms and conditions applicable to any series of Securities;

WHEREAS, the Company intends by this Second Supplemental Indenture to create and provide for the issuance of a new series of Securities to be designated as the “8.30% Senior Notes due 2022” (the “Notes”);

WHEREAS, pursuant to Section 9.01(e) of the Base Indenture, the Trustee and the Company are authorized to execute and deliver this Second Supplemental Indenture to supplement the Base Indenture; and

WHEREAS, all things necessary to make the Notes, when executed by the Company and authenticated and delivered by the Trustee, issued upon the terms and subject to the conditions set forth and in the Indenture and delivered as provided in the Indenture against payment therefor, valid, binding and legal obligations of the Company according to their terms, and all actions required to be taken by the Company under the Base Indenture to make this Second Supplemental Indenture a valid, binding and legal agreement of the Company, have been done.

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the sufficiency and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01.          Definitions. i) All capitalized terms used herein and not otherwise defined below or otherwise in this Second Supplemental Indenture shall have the meanings ascribed thereto in the Base Indenture.

(a)          The following are definitions used in this Second Supplemental Indenture, and to the extent that a term is defined both herein and in the Base Indenture, the definition in this Second Supplemental Indenture shall apply with respect to the Notes. For purposes of the provisions and definitions set forth in the Indenture, any accounting term, phrase, calculation, determination or treatment used, required or referred to in the Indenture is to be construed in accordance with US GAAP. To the extent any line item referred to in the Indenture is not presented by the Company in its financial statements, the Company shall use the line item that is, in its good-faith judgment, is the most comparable line item that is presented by the Company.

“Applicable Premium” means, with respect to the applicable principal amount of Notes on any applicable redemption date or date of deposit, the greater of:

		(1)	
1.0% of the then outstanding principal amount of such Notes; and

1

		(2)	
the excess, if any, of:

		(a)	
the present value at such redemption date or date of deposit of (i) the redemption price of such Notes at May 15, 2019 (such redemption price being set forth under Section 3.01(b) of this Second Supplemental Indenture) plus (ii) all required interest payments due on the Notes through May 15, 2019 (excluding accrued but unpaid interest) had such Notes been redeemed on such date, computed using a discount rate equal to the Treasury Rate as of such redemption date or date of deposit plus 50 basis points; over

		(b)	
the then outstanding principal amount of such Notes.

“Bankruptcy Law” means Title 11, United States Bankruptcy Code of 1978, as amended, or any similar United States federal or state law, and law of any other jurisdiction (including, without limitation, the Marshall Islands and Greece) relating to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization or relief of debtors or any amendment to, succession to or change in any such law.

“Board of Directors” means the Company’s board of directors.

“Cash and Cash Equivalents” means the Company’s cash and cash equivalents, excluding any cash that is classified as current or non-current restricted cash as determined in accordance with US GAAP.

“Continuing Director” means a director who either was a member of the Company’s Board of Directors on the Issue Date or who becomes a member of the Company’s Board of Directors subsequent to that date and whose election, appointment or nomination for election by the Company’s shareholders is duly approved by a majority of the continuing directors on the Company’s Board of Directors at the time of such approval by such election or appointment.

“Credit Facility” means, with respect to the Company or any of its Subsidiaries, any debt or commercial paper facilities or debt securities with banks or other lenders providing for revolving loans, term loans, letters of credit or other borrowings or any agreement treated as a finance or capital lease if and to the extent any of the preceding items would appear as a liability upon a balance sheet of the specified Person prepared in accordance with US GAAP. For the avoidance of doubt, each Subject Vessel Financing Facility shall also constitute a Credit Facility.

“Cross Default” means the occurrence, with respect to any debt of the Company or any Subsidiary (other than debt owed to the Company or any Subsidiary) having an aggregate principal amount of $25.0 million or more in the aggregate for all such debt of all such Persons, of (i) an event of default that results in such debt being due and payable prior to its scheduled maturity or (ii) a failure to make a principal payment when due and such defaulted payment is not made, waived or extended within any applicable grace period.

“Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction not involving distress or necessity of either party, determined in good faith by a principal financial officer or principal accounting officer of the Company; provided that such determination shall be made by the Board of Directors of the Company (or committee thereof to which the Board of Directors has delegated its authority) in the case of any asset or property whose Fair Market Value is in excess of $25.0 million.

“herein” means in this Second Supplemental Indenture.

“Immaterial Subsidiary” means any Subsidiary the net book value of whose assets or revenues is not in excess of 10% of the net book value of the consolidated Total Assets or consolidated vessel revenue of the Company and its Subsidiaries as set out in the annual audited consolidated financial statements of the Company and its Subsidiaries for the immediately preceding fiscal year, provided that, at no time shall (a) the total assets of all Immaterial Subsidiaries exceed 10% of the consolidated Total Assets of the Company and its Subsidiaries or (b) the total vessel revenues calculated with respect to all Immaterial Subsidiaries (calculated on a stand-alone basis), in the aggregate, exceed 10% of the consolidated vessel revenue of the Company and its Subsidiaries, in each case as set out in the annual audited consolidated financial statements of the Company and its Subsidiaries for the immediately preceding fiscal year.

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“Immediate Family Member” means, with respect to an individual Person, such Person’s spouse, parents, children and siblings.

“Issue Date” means November 9, 2017.

“Limited Permitted Asset Sale” means any Asset Sale of any of the Company’s or its Subsidiaries’ assets (in the ordinary course of business or otherwise) during a single fiscal year, in a single transaction or series of transactions, (i) the Net Proceeds of which have not been applied pursuant to clauses (a) through (f) of Section 6.06 of this Second Supplemental Indenture and (ii) that results in Net Proceeds in excess of the amount provided for in clause (1) of the definition of Permitted Asset Sale, provided that the Net Proceeds of such Limited Permitted Asset Sale (taken together with the value of any non-cash consideration) represent consideration at least equal to the Fair Market Value of the assets subject to such Asset Sale. Any Net Proceeds that are not applied or invested as provided in (i) above and are in excess of the amount provided for in clause (1) of the definition of Permitted Asset Sale will constitute “Excess Proceeds.” For the avoidance of doubt, a Limited Permitted Asset Sale may occur only once. Following the first occurrence of a Limited Permitted Asset Sale, no further Limited Permitted Asset Sale shall be permitted.

“Net Borrowings” means the aggregate of the following, without duplication, as of the most recently completed fiscal quarter of the Company for which its published financial statements are available:

		(a)	
Total Borrowings; less

		(b)	
Cash and Cash Equivalents.

“Net Proceeds” means the aggregate cash proceeds received by the Company or any of its Subsidiaries in respect of any Asset Sale (including, without limitation, any cash received upon the sale or other disposition of any non-cash consideration received in any Asset Sale, but excluding any other consideration received in the form of the cancellation or assumption by the purchaser of indebtedness or other obligations in relation to such Asset Sale or received in any other non-cash form and not disposed of for cash), net of fees, commissions, expenses and other direct costs relating to such Asset Sale, including, without limitation, (a) fees and expenses related to such Asset Sale (including legal, accounting and investment banking fees, title and recording tax fees and sales and brokerage commissions, and any relocation expenses and severance or shutdown costs incurred as a result of such Asset Sale), (b) all federal, state, provincial, foreign and local taxes paid or payable as a result of the Asset Sale, (c) any escrow or reserve for adjustment in respect of the sale price of such assets or property established in accordance with US GAAP and any reserve in accordance with US GAAP against any liabilities associated with such Asset Sale and retained by the seller after such Asset Sale, including liabilities related to environmental matters and liabilities under any indemnification obligations associated with such Asset Sale, except to the extent that such proceeds are released from any such escrow or to the extent such reserve is reduced or eliminated, and (d) any indebtedness required by its terms to be repaid, repurchased, redeemed or otherwise retired upon the applicable Asset Sale.

“Permitted Asset Sale” means:

		(1)	
any Asset Sale of any of the Company’s or its Subsidiaries’ assets (in the ordinary course of business or otherwise) in any transaction or series of transactions, such that (A) the aggregate market value of all assets subject to such Asset Sales described in this clause (1) during any fiscal year may be up to (and including) 25% of the aggregate Fair Market Value of all of the Company’s and the Company’s Subsidiaries’ assets (on a consolidated basis) on the last day of the immediately preceding fiscal year and (B) the Company receives, or a Subsidiary receives, consideration at least equal to the Fair Market Value of the assets subject to such Asset Sale;

		(2)	
(a) the actual or constructive total loss of a Vessel or the agreed or compromised total loss of a Vessel, (b) the destruction of a Vessel, (c) damage to a Vessel to an extent as shall make repair thereof uneconomical or shall render such Vessel permanently unfit for normal use (other than obsolescence) or (d) the condemnation, confiscation, requisition for title, seizure, forfeiture or other taking of title to or use of a Vessel that shall not be revoked within 30 days, in each case as determined in good faith by the Board of Directors of the Company, provided that the aggregate market value of all assets included as a Permitted Asset Sale pursuant to this paragraph (2) during any fiscal year may not exceed 10% of the aggregate Fair Market Value of all of the Company’s and the Company’s Subsidiaries’ assets (on a consolidated basis) on the last day of the immediately preceding fiscal year; and

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		(3)	
(a) a transfer of assets or issuances of equity or other securities among the Company and any of its Wholly-Owned Subsidiaries; (b) any transaction consummated in compliance with Article IV or Section 9.02 of this Second Supplemental Indenture; (c) the sale or abandonment of property or equipment (other than Vessels) that has become worn out, obsolete, damaged, unusable, otherwise unsuitable or no longer economically practicable for use in connection with the business of the Company or the relevant Subsidiary, as the case may be; (d) any Restricted Payment made in compliance with Section 6.04 of this Second Supplemental Indenture; (e) investments made by the Company or any Subsidiary; (f) any casualty loss, taking under power of eminent domain or by condemnation or similar proceeding of any property or assets of the Company or any Subsidiary (other than Vessels); (g) the leasing, occupancy agreements or subleasing of property or licensing or sublicensing of intellectual property in the ordinary course of business or in accordance with industry practice; (h) the grant of liens on assets or property of the Company or any Subsidiary; (i) or any realization on liens on or any transfer in lieu of foreclosure of assets or property of the Company or any Subsidiary, in each case, that does not otherwise constitute an Event of Default (provided that, in the case of any realization of a lien on a Vessel or the transfer in lieu of foreclosure of a Vessel, any Net Proceeds from such realization or transfer shall be applied as provided in Section 6.06(a) of this Second Supplemental Indenture; (j) chartering of Vessels and licenses of intellectual property; (k) the transfer of property or assets in the form of a surrender or waiver of contract rights or the settlement, release or surrender of contract, tort or other claims of any kind; (l) the entering into or unwinding of obligations under any hedging agreement; (m) the sale or disposition of any assets or property received as a result of a foreclosure or other similar proceeding or in connection with a transfer in lieu of a foreclosure by the Company or any of its Subsidiaries; (n) a disposition of leasehold improvements or leased assets in connection with the termination of any lease; (o) the sale of interests in a joint venture pursuant to customary put-call or buy-sell arrangements; (p) any disposition of inventory or other assets in the ordinary course of business, (q) dispositions of receivables in connection with the compromise, settlement or collection thereof in the ordinary course of business; and (r) the disposition of cash, cash equivalents and marketable securities.

“Permitted Business” means (i) any business engaged in by the Company or any of its Subsidiaries on the Issue Date, (ii) any business or other activities that are reasonably similar, ancillary, complementary or related to, or a reasonable extension, development or expansion of, the businesses described in clause (i) of this definition and (iii) any business in the direct or indirect ownership, management, operation and chartering of Vessels and any business incidental thereto.

“Permitted Holder” means (i) Oaktree Capital Management, L.P., Oaktree Capital Group LLC, Oaktree Capital Group Holdings GP, LLC, Oaktree Value Opportunities Fund, L.P., Oaktree Opportunities Fund IX Delaware, L.P., Oaktree Opportunities Fund IX (Parallel 2), L.P. and Oaktree Dry Bulk Holdings LLC (collectively, “Oaktree”), and each their respective partners, Affiliates and all investment funds directly or indirectly managed by any of the foregoing (excluding, for the avoidance of doubt, their respective portfolio companies or other operating companies of investment funds managed by Oaktree, (ii) Millenia Holdings LLC, Petros Pappas, Milena-Maria Pappas, Alekos Pappas any Immediate Family Member of Petros Pappas, Milena-Maria Pappas or Alekos Pappas, and each their respective controlled Affiliates and all investment vehicles directly or indirectly managed by any of the foregoing, (iii) any Person or any of the Persons who were a group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision) whose ownership of assets or Voting Stock has triggered a Change of Control in respect of which an offer to repurchase has been made and all notes that were tendered therein have been accepted and paid, (iv) any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor provision) of which any of the foregoing beneficially own, without giving effect to the existence of such group or any other group, more than 50.0% of the total voting power of the aggregate Voting Stock of the Company held directly or indirectly by such group and (v) any members of a group described in clause (iv) for so long as such Person is a member of such group.

“Person” except as used in the definition of “Change of Control,” means any individual, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust, unincorporated organization, government or agency or political subdivision thereof or any other entity.

4

“Pro Forma” means with respect to any calculation of Net Borrowings, Minimum Tangible Net Worth or Total Assets (each, a “Calculation”) on any date of determination made with respect to the end of any fiscal quarter (each, a “Fiscal Quarter-End”), a calculation of such relevant measure made in good faith by a principal financial or principal accounting officer of the Company, provided that, without duplication:

		(1)	
if the Company or any Subsidiary:

		(a)	
has incurred any indebtedness since the Fiscal Quarter-End that remains outstanding on such date of determination, or if the transaction giving rise to the need to make such Calculation includes the incurrence of indebtedness, such Calculation shall give effect on a pro forma basis to such indebtedness as if such indebtedness had been incurred on such Fiscal Quarter-End and the discharge of any other indebtedness repaid, repurchased, redeemed, retired, defeased or otherwise discharged with the proceeds of such new indebtedness as if such discharge had occurred on such Fiscal Quarter-End; or

		(b)	
has made a repayment, repurchase, redemption, retirement, defeasance or other discharge (a “Discharge”) of any indebtedness since the Fiscal Quarter-End that is no longer outstanding on such date of determination or if the transaction giving rise to the need to make such Calculation includes a Discharge of indebtedness (in each case, other than indebtedness incurred under any revolving credit facility unless such indebtedness has been permanently repaid and the related commitment terminated and not replaced), such Calculation shall give effect on a pro forma basis to such Discharge of such indebtedness, including with the proceeds of new indebtedness, as if such Discharge had occurred on such Fiscal Quarter-End;

		(2)	
if, since the Fiscal Quarter-End, the Company or any Subsidiary will have made any equity offering or Asset Sale or disposed of or discontinued (as defined under US GAAP) any company, division, operating unit, segment, business, group of related assets or line of business (by merger or otherwise) or if the transaction giving rise to the need to make such Calculation includes such a transaction, such Calculation shall be made giving pro forma effect to such equity offering, Asset Sale, disposition or discontinuation (including any related incurrence, assumption or Discharge of indebtedness) as if such equity offering, Asset Sale, disposition or discontinuation (and any such related incurrence, assumption or Discharge of indebtedness) had occurred on such Fiscal Quarter-End; and

		(3)	
if, since the Fiscal Quarter-End, the Company or any Subsidiary (by merger or otherwise) will have made an acquisition of or investment in non-current assets or any company, division, operating unit, segment, business, group of related assets or line of business or any recapitalization, or if the transaction giving rise to the need to make such Calculation includes such a transaction, such Calculation shall be made giving pro forma effect to such acquisition (including any related incurrence, assumption or Discharge of indebtedness) as if such investment or acquisition (and any related incurrence, assumption or Discharge of indebtedness) occurred on such Fiscal Quarter-End; and

		(4)	
if, since the Fiscal Quarter-End, any transaction occurs in which either (i) any Person that is not a Subsidiary of the Company becomes a Subsidiary of the Company or (ii) any Subsidiary of the Company is no longer a Subsidiary of the Company, or if the transaction giving rise to the need to make such Calculation includes such a transaction, such Calculation shall be made, giving pro forma effect to such transaction (including any related incurrence, assumption or Discharge of indebtedness) as if such transaction (and any related incurrence, assumption or Discharge of indebtedness) had occurred on such Fiscal Quarter-End.

 

“Redemption Date”, when used with respect to any Note to be redeemed, in whole or in part, means the date fixed for such redemption by or pursuant to this Second Supplemental Indenture.

“Related Assets” means (a) any insurance policies and contracts from time to time in force with respect to a Vessel, (b) the Capital Stock of any Subsidiary of the Company owning one or more Vessels and related assets, (c) any requisition compensation payable in respect of any compulsory acquisition of a Vessel, (d) any earnings derived from the use or operation of a Vessel and/or any earnings account with respect to such earnings, (e) any charters, operating leases, contracts of affreightment, Vessel purchase options and related agreements entered and any security or guarantee in respect of the charterer’s or lessee’s obligations under such charter, lease, Vessel purchase option or agreement, (f) any cash collateral account established with respect to a Vessel pursuant to the financing arrangement with respect thereto, (g) any building, dry docking, conversion or repair contracts relating to a Vessel and any security or guarantee in respect of the builder’s obligations under such contract and (h) any security interest in, or agreement or assignment relating to, any of the foregoing or any mortgage in respect of a Vessel and any asset reasonably related, ancillary or complementary thereto.

5

“Securities Act” means the U.S. Securities Act of 1933, as amended.

“Significant Subsidiary” means (i) any direct or indirect Subsidiary of the Company that would be a "significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such regulation is in effect on the Issue Date, or (ii) any group of direct or indirect Subsidiaries of the Company that, taken together as a group, would be a "significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such regulation is in effect on the Issue Date.

“Subject Vessel Financing Facilities” means each vessel financing credit facility of the Company or its Subsidiaries existing as of the Issue Date, except (i) the Facility Agreement, dated June 23, 2017, by and between the Borrowers party thereto, the Guarantor party thereto and ABN AMRO BANK N.V., as arranger, agent, security trustee and as swap bank and (ii) the Secured Loan Agreement, dated June 6, 2016, by and between the Borrowers party thereto, the Guarantor party thereto and HSBC Bank plc, as Lender.

“Subsidiary ” means with respect to any Person, any other Person the majority of whose Voting Stock is owned by such Person or by one or more other Subsidiaries of such Person or by such Person and one or more other Subsidiaries of such Person. Where the term “Subsidiary” is used, unless the context otherwise requires, such term shall mean a Subsidiary of the Company.

“Tangible Net Worth” means the consolidated total shareholders’ equity (including retained earnings) of the Company and its consolidated Subsidiaries, minus goodwill and other intangible items (other than favorable charter agreements recorded in connection with purchase accounting under US GAAP and, for the avoidance of doubt, vessel acquisition or construction agreements), as of the most recently completed fiscal quarter for which published financial statements of the Company are available.

“Total Assets” means, in respect of the Company, all of the assets of the Company and its Subsidiaries, on a consolidated basis, of the types presented on its consolidated balance sheet, as of the most recently completed fiscal quarter of the Company for which its published financial statements are available.

“Total Borrowings” means the aggregate of the following, without duplication of the Company and its Subsidiaries on a consolidated basis:

		(a)	
the outstanding principal amount of any moneys borrowed; plus

		(b)	
the outstanding principal amount of any acceptance under any acceptance credit; plus

		(c)	
the outstanding principal amount of any bond, note, debenture or other similar instrument; plus

		(d)	
the book values of indebtedness under a lease, charter, hire purchase agreement or other similar arrangement which obligation is required to be classified and accounted for as a capital lease obligation under US GAAP (the amount of such obligation at any date will be the capitalized amount thereof at such date, determined in accordance with US GAAP); plus

		(e)	
the outstanding principal amount of all moneys owing in connection with the sale or discounting of receivables (otherwise than on a non-recourse basis or which otherwise meet any requirements for de-recognition under US GAAP); plus

		(f)	
the outstanding principal amount of any indebtedness arising from any deferred payment agreements arranged primarily as a method of raising finance or financing the acquisition of an asset (except trade payables); plus

6

		(g)	
any fixed or minimum premium payable on the repayment or redemption of any instrument referred to in clause (c) above; plus

		(h)	
the outstanding principal amount of any indebtedness of any Person of a type referred to in the above clauses of this definition which is the subject of a guarantee given by the Company to the extent that such guaranteed indebtedness is determined and given a value in respect of the Company and its Subsidiaries on a consolidated basis in accordance with US GAAP;

in each case, (i) only to the extent any of the foregoing is reflected as a liability on the face of the consolidated balance sheet of the Company and its Subsidiaries and (ii) calculated as of the end of the most recently completed fiscal quarter of the Company for which its published financial statements are available. Notwithstanding the foregoing, “Total Borrowings” shall not include (i) any indebtedness or obligations arising from derivative transactions entered into not for speculative purposes and for purposes of managing or protecting against interest rate, commodity or currency fluctuations or (ii) any preferred stock.

“Treasury Rate” means, as of the applicable redemption date or date of deposit, the yield to maturity as of such redemption date of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two Business Days prior to such Redemption Date or date of deposit (or, if such Statistical Release is no longer published, any publicly available source of similar market data)) most nearly equal to the period from such Redemption Date to May 15, 2019 provided, however, that if the period from such Redemption Date or date of deposit to May 15, 2019 is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year will be used.

“US GAAP” means generally accepted accounting principles in the United States, set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect on the Issue Date.

“Vessels” means one or more shipping vessels primarily designed and utilized for the transport of cargo, including, without limitation, bulk carriers, freighters, general cargo carriers, containerships and tankers, but excluding passenger vessels, or which are otherwise engaged, used or useful in any business activities of the Company and its Subsidiaries, in each case together with all related spares, equipment and any additions or improvements.

“Voting Stock” of any specified Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the Board of Directors (or other similar governing body) of such Person.

“Wholly-Owned Subsidiary” means, with respect to a Person, a Subsidiary of such Person all of whose outstanding Capital Stock or other equity interests of which (other than directors’ qualifying shares) are owned by such Person or by one or more direct or indirect Wholly-Owned Subsidiaries of such Person. Where the term “Wholly-Owned Subsidiary” is used, unless the context otherwise requires, such term shall mean a Wholly-Owned Subsidiary of the Company.

7

Section 1.02.          Other Definitions.

	
Term

	 	
Defined in Section of this

Second Supplemental

 Indenture

	 
	
“Additional Amounts”

	 	 	
8.01

	
(a)

	
“Additional Interest”

	 	 	
7.03

	 
	
“Additional Notes”

	 	 	
2.04

	
(e)

	
“Asset Sale”

	 	 	
6.06

	 
	
“Beneficial Owner” and “Beneficial Ownership”

	 	 	
4.01

	
(a)

	
“Change of Control”

	 	 	
4.01

	
(a)

	
“Change of Control Purchase Date”

	 	 	
4.01

	
(a)

	
“Change of Control Purchase Price”

	 	 	
4.01

	
(a)

	
“Code”

	 	 	
8.01

	
(a)

	
“covenant defeasance”

	 	 	
9.06

	 
	
“DTC”

	 	 	
2.03

	 
	
“Event of Default”

	 	 	
7.01

	 
	
“Interest Payment Date”

	 	 	
2.04

	
(c)

	
“legal defeasance”

	 	 	
9.05

	 
	
“Limited Permitted Asset Sale Purchase Date”

	 	 	
6.06

	 
	
“Limited Permitted Asset Sale Purchase Price”

	 	 	
6.06

	 
	
“Maturity Date”

	 	 	
2.04

	
(b)

	
“New Parent”

	 	 	
4.01

	
(a)

	
“Person”

	 	 	
4.01

	
(a)

	
“Related Judgment”

	 	 	
10.04

	
(a)

	
“Related Proceeding”

	 	 	
10.04

	
(a)

	
“Record Date”

	 	 	
2.04

	
(c)

	
“Reporting Default”

	 	 	
7.03

	 
	
“Restricted Payments”

	 	 	
6.04

	 
	
“Specified Courts”

	 	 	
10.04

	
(a)

	
“Specified Tax Jurisdiction”

	 	 	
8.01

	
(a)

	
“Taxes”

	 	 	
8.01

	
(a)

ARTICLE II

APPLICATION OF SUPPLEMENTAL INDENTURE AND

CREATION, FORMS, TERMS AND CONDITIONS OF NOTES

Section 2.01.          Application of this Second Supplemental Indenture. Notwithstanding any other provision of this Second Supplemental Indenture, the provisions of this Second Supplemental Indenture, including the covenants set forth herein, are expressly and solely for the benefit of the Holders of the Notes established by this Second Supplemental Indenture. The Notes constitute a separate series of Securities as provided in Section 2.01 of the Base Indenture.

Section 2.02.          Creation of the Notes. In accordance with Section 2.02 of the Base Indenture, the Company hereby creates the Notes as a separate series of its Securities issued pursuant to the Base Indenture, as supplemented by this Second Supplemental Indenture.

Section 2.03.          Global Notes. The Notes shall be issued in the form of Global Securities, duly executed by the Company and authenticated by the Trustee, which shall be deposited with the Trustee as custodian for the Depository and registered in the name of “Cede & Co.,” as the nominee of the Depository. The Depository Trust Company (“DTC”) initially shall serve as Depository for the Notes. So long as the Depository, or its nominee, is the registered owner of a Global Security, the Depository or its nominee, as the case may be, shall be considered the sole owner or Holder of the Notes represented by such Global Security for all purposes under the Indenture and under such Notes. Ownership of beneficial interests in such Global Security shall be shown on, and transfers thereof will be effective only through, records maintained by the Depository or its nominee (with respect to beneficial interests of participants) or by participants or Persons that hold interests through participants (with respect to beneficial interests of beneficial owners).

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Section 2.04.          Terms and Conditions of the Notes. The Notes shall be governed by all the terms and conditions of the Base Indenture, as supplemented by this Second Supplemental Indenture. The following provisions shall be terms of the Notes:

		(a)	
Designation; Aggregate Principal Amount. The title of the Notes shall be as specified in the Recitals. The Notes shall be initially limited and issued in aggregate principal amount to $50,000,000.

		(b)	
Stated Maturity. The Notes shall mature, and the principal of the Notes shall be due and payable in Dollars to the Holders thereof, together with all accrued and unpaid interest thereon, on November 15, 2022 (the “Maturity Date”).

		(c)	
Payment of Principal and Interest; Additional Amounts. The Notes shall bear interest at 8.30% per annum, from and including November 9, 2017, or from the most recent Interest Payment Date (as defined hereafter) on which interest has been paid or duly provided for to, but excluding, the next succeeding Interest Payment Date, the Maturity Date or the Redemption Date, as the case may be. Interest shall also be paid on overdue principal, and, to the extent lawful, overdue installments of interest at the applicable interest rate for the Notes. Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months. Interest on the Notes shall be payable quarterly in arrears in Dollars on February 15, May 15, August 15 and November 15 of each year, commencing on February 15, 2018 (each such date, an “Interest Payment Date” for the purposes of the Notes issued under this Second Supplemental Indenture). Payments of interest shall be made to the Person in whose name a Note (or predecessor Note) is registered at the close of business on February 1, May 1, August 1 or November 1 (whether or not that date is a Business Day), as the case may be, immediately preceding such Interest Payment Date (each such date, a “Record Date” for the purposes of the Notes issued under this Second Supplemental Indenture). All payments in respect of the Notes shall include Additional Amounts as and to the extent set forth in Article VIII of this Second Supplemental Indenture. If any Interest Payment Date or the Maturity Date of the Notes falls on a day that is not a Business Day, the payment of interest and/or principal, as the case may be, to be paid on such date shall be made on the next succeeding Business Day as if it were made on the date such payment was due, and no interest shall accrue on the amounts so payable for the period from and after such Interest Payment Date or Maturity Date of the Notes, as the case may be, to such next succeeding Business Day.

		(d)	
Registration and Form; Denomination. The Notes shall be issuable as registered securities without coupons, as provided in Section 2.03 of this Article II. The form of the Notes shall be as set forth in Exhibit A attached hereto, which is incorporated herein by reference. The Notes shall be issued and may be transferred only in minimum denomination of $25.00 and integral multiples of $25.00 in excess thereof.

		(e)	
Further Issuance. Notwithstanding anything to the contrary contained herein or in the Base Indenture, the Company may, from time to time, without the consent of or notice to the Holders, create and issue further debt securities having the same interest rate, maturity and other terms (except for the issue date, the public offering price and the first Interest Payment Date) as, ranking equally and ratably with, the Notes (the “Additional Notes”). Such Additional Notes shall be consolidated with and shall form a single series with the previously outstanding Notes, including for purposes of voting and redemptions, and shall be fungible with the Notes for U.S. federal income tax purposes or will have a separate CUSIP number than the Notes. No Additional Notes may be issued if an Event of Default has occurred and is continuing with respect to the Notes.

		(f)	
Redemption. Except as set forth in Section 3.01(b) and Section 3.02 of this Second Supplemental Indenture, the Notes will not be redeemable by the Company at its option prior to May 15, 2019.

		(g)	
Sinking Fund. The Notes are not entitled to any sinking fund. Article XI of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Article XI with respect to any other Series of Securities issued under the Indenture.

		(h)	
Registrar and Paying Agent. Section 2.04 of the Base Indenture shall be applicable to the Notes. With respect to the Notes, the office or agency maintained by the Company for purposes of Section 2.04 of the Base Indenture shall be in the City of New York and shall initially be designated to be the Corporate Trust Office of the Trustee, as such office of the Company. U.S. Bank National Association, the Trustee, initially shall be the Paying Agent and Registrar for the Notes.

		(i)	
Currency. The Notes shall be issued in Dollars and all amounts payable in respect of principal or interest shall be paid in Dollars.

		(j)	
Other Terms and Conditions. The Notes shall have such other terms and conditions as provided in the form thereof attached as Exhibit A hereto.

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ARTICLE III

REDEMPTION

Sections 3.01 and 3.03 of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Sections 3.01 and 3.03 with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to Sections 3.01 and 3.03 in the Base Indenture shall instead be deemed to refer to Section 3.01(d) of this Second Supplemental Indenture. Except to the extent inconsistent with the foregoing, all provisions of Article III of the Base Indenture shall apply to any redemption pursuant to Article III of this Second Supplemental Indenture.

Section 3.01.          Optional Redemption.

(a)          Optional Redemption on or after May 15, 2019. The Company may redeem the Notes, at its option, in whole or in part, at any time on or after May 15, 2019 upon providing not less than 30 nor more than 60 days’ prior written notice to the Holders (provided that notice of a redemption in connection with a satisfaction and discharge pursuant to Article VIII of the Base Indenture, as modified by Section 9.04 of this Second Supplemental Indenture, may be given more than 60 days prior to the Redemption Date), at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the date fixed for redemption, subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date. If money sufficient to pay the redemption price of all of the Notes, or portions thereof, to be redeemed on the applicable Redemption Date is irrevocably deposited with the Trustee or Paying Agent, in immediately available funds, on or before the applicable Redemption Date are satisfied, then on and after such Redemption Date, interest will cease to accrue on such Notes, or such portion thereof, called for redemption.

(b)          Optional Redemption prior to May 15, 2019. The Company may redeem the Notes, at its option, in whole or in part, at any time prior to May 15, 2019, upon providing not less than 30 nor more than 60 days’ prior written notice to the Holders (provided that notice of a redemption in connection with a satisfaction and discharge pursuant to Article VIII of the Base Indenture, as modified by Section of 9.04 this Second Supplemental Indenture, may be given more than 60 days prior to the Redemption Date), at a redemption price equal 100% of the principal amount of the Notes to be redeemed plus the Applicable Premium as of, and accrued and unpaid interest thereon, to (but not including) the Redemption Date. If money sufficient to pay the redemption price of all of the Notes, or portions thereof, to be redeemed on the applicable Redemption Date is irrevocably deposited with the Trustee or Paying Agent, in immediately available funds, on or before the applicable Redemption Date, then on and after such Redemption Date, interest will cease to accrue on such Notes, or such portion thereof, called for redemption, and such Notes will be deemed to be no longer outstanding.

(c)          Selection for Redemption. In accordance with Section 3.02 of the Base Indenture, if fewer than all of the Notes are to be redeemed at any time, the Registrar will select the Notes, or portions thereof, to be redeemed, in compliance with the requirements of the Depository, or if the Depository prescribes no method of selection, on a pro rata basis, by lot or by any other method the Registrar deems fair and reasonable; provided, however, that Notes, and portions thereof, selected for redemption shall only be in amounts of $25.00 or whole multiples of $25.00.

(d)          Notice of Redemption. The Company shall provide to each Holder of Notes, at least 30 days but not more than 60 days before the applicable Redemption Date, a notice of redemption (provided that notice of a redemption (in the form of an Officers’ Certificate) in connection with a satisfaction and discharge pursuant to Article VIII of the Base Indenture, as modified by Section 9.04 of this Second Supplemental Indenture, may be given more than 60 days prior to the Redemption Date), which notice shall be provided by first-class mail to each Holder of Notes at such Holder’s address appearing in the register of Notes maintained by the Registrar (or otherwise delivered in accordance with the procedures of the Depository). The Company shall furnish the Trustee and Registrar with written notice of a redemption of Notes at least two Business Days (or such shorter period of time as the Trustee and Registrar shall agree to) prior to the publication or sending of any notice of redemption of any Notes pursuant to Article III of this Second Supplemental Indenture. A notice of redemption will identify the Notes to be redeemed and shall also state: the provision of the Indenture pursuant to which the Notes are being redeemed; the Redemption Date; the portion of the redemption price, including the portion thereof below constituting accrued and unpaid interest; the amount of Additional Amounts, if any, payable on the date fixed for redemption; the name and address of the Paying Agent; that Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price; that unless the Company defaults in making the redemption payment on the Notes called for redemption, interest on such Notes will cease to accrue on and after the Redemption Date; if any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed; if less than all of the Notes are to be redeemed, the aggregate principal amount of Notes to be outstanding after such redemption; and that the Notes called for redemption will become due on the date fixed for redemption.

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Section 3.02.          Optional Redemption for Changes in Withholding Taxes. The Company may redeem the Notes, at its option, at any time in whole but not in part, upon not less than 30 days nor more than 60 days’ prior written notice to the Holders (which notice shall be irrevocable), at a redemption price equal to 100% of the outstanding principal amount of Notes, plus accrued and unpaid interest to, but excluding, the applicable Redemption Date, and all Additional Amounts (if any) then due and which will become due on the applicable Redemption Date (subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date and Additional Amounts (if any) in respect thereof), in the event that the Company determines in good faith that the Company has become or would become obligated to pay, on the next date on which any amount would be payable with respect to the Notes, Additional Amounts and such obligation cannot be avoided by taking reasonable measures available to the Company (including making payment through a paying agent located in another jurisdiction), as a result of:

		(a)	
a change in or an amendment to the laws (including any regulations or rulings promulgated thereunder) of any Specified Tax Jurisdiction affecting taxation, which change or amendment is announced or becomes effective on or after the date of this Second Supplemental Indenture; or

		(b)	
any change in or amendment to any official position of a taxing authority in any Specified Tax Jurisdiction regarding the application, administration or interpretation of such laws, regulations or rulings (including a holding, judgment or order by a court of competent jurisdiction), which change or amendment is announced or becomes effective on or after the date of this Second Supplemental Indenture.

Notwithstanding the foregoing, no notice of redemption for changes in withholding taxes may be given earlier than 60 days prior to the earliest date on which the Company would be obligated to pay Additional Amounts if a payment in respect of the Notes were then due. At least two Business Days before the Company provides notice of redemption of the Notes as set forth in Section 3.03 of the Base Indenture and Section 3.01(d) of this Second Supplemental Indenture, the Company will deliver to the Trustee and Paying Agent (i) an Officers’ Certificate stating that the Company is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Company to so redeem have occurred and (ii) an opinion of independent legal counsel of recognized standing satisfactory to the Trustee and Paying Agent that the Company has or will become obligated to pay Additional Amounts as a result of the circumstances referred to in clause (a) or (b) of the preceding paragraph.

The Trustee and Paying Agent will accept and will be entitled to conclusively rely upon the Officers’ Certificate and Opinion of Counsel as sufficient evidence of the satisfaction of the conditions precedent described above, in which case they will be conclusive and binding on the Holders.

Section 3.03.          Open Market Repurchases. Notwithstanding any provision in the Indenture to the contrary, the Company and its Affiliates may purchase Notes from investors who are willing to sell from time to time, either in the open market at prevailing prices, in tender or exchange offers or in private transactions at negotiated prices. Notes that the Company or any of its Affiliates purchase may, at the Company’s discretion, be held, resold or canceled.

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ARTICLE IV

CHANGE OF CONTROL

Section 4.01.          Change of Control. (a) If a Change of Control occurs at any time, Holders of Notes will have the right, at their option, to require the Company to purchase for cash any or all of such Holder’s Notes, or any portion of the principal amount thereof, that is equal to $25.00 or integral multiples of $25.00 at a price (the “Change of Control Purchase Price”) equal to 101% of the principal amount of the Notes to be purchased, plus accrued and unpaid interest to (but not including) the Change of Control Purchase Date, subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date. The “Change of Control Purchase Date” will be a date specified by the Company that is not less than 20 or more than 35 calendar days following the date of the applicable Change of Control notice. A “Change of Control” will be deemed to have occurred at any time after the Issue Date if:

		(1)	
any “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this clause (1) such Person shall be deemed to have “beneficial ownership” of all shares that any such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total voting power of the Voting Stock of the Company;

		(2)	
the merger or consolidation of the Company with or into another Person or the merger of another Person with or into the Company, or the sale of all or substantially all the assets of the Company (determined on a consolidated basis) to another Person other than (i) a transaction in which the survivor or transferee is a Person that is controlled by a Permitted Holder or (ii) a transaction following which, in the case of a merger or consolidation transaction, holders of securities that represented 100% of the Voting Stock of the Company immediately prior to such transaction (or other securities into which such securities are converted as part of such merger or consolidation transaction) own directly or indirectly at least a majority of the voting power of the Voting Stock of the surviving Person in such merger or consolidation transaction immediately after such transaction and in substantially the same proportion as before the transaction;

		(3)	
Continuing Directors cease to constitute at least a majority of the Company’s Board of Directors; or

		(4)	
if after the Notes are initially listed on the Nasdaq Global Select Market or another national securities exchange, the Notes fail, or at any point cease, to be listed on the Nasdaq Global Select Market or such other national securities exchange. For the avoidance of doubt, it shall not be a Change of Control if after the Notes are initially listed on the Nasdaq Global Select Market or another national securities exchange, such Notes are subsequently listed on a different national securities exchange and the prior listing is terminated.

Notwithstanding the foregoing, for purposes of clauses (1) and (2) above, (A) any holding company whose only significant asset is equity interests of the Company or any direct or indirect parent of the Company shall not itself be considered a “Person” for purposes of this definition; (B) the transfer of assets between or among the Wholly-Owned Subsidiaries or the Company shall not itself constitute a Change of Control; (C) a “Person” shall not be deemed to have beneficial ownership of securities subject to a stock purchase agreement, merger agreement or similar agreement (or voting or option agreement related thereto) until the consummation of the transactions contemplated by such agreement; and (D) a transaction in which the Company becomes a Subsidiary of another Person that is not a natural person (a “New Parent”) shall not be a Change of Control if no Person is the “beneficial owner” of more than 50% of the total voting power of the Voting Stock of such New Parent.

12

ARTICLE V

OFFER TO PURCHASE

Section 5.01.          Offer to Purchase

(a)          On or before the 30th day after the occurrence of a Change of Control or a Limited Permitted Asset Sale, as the case may be, the Company will provide to all Holders and the Trustee and Paying Agent a written notice of the occurrence of the Change of Control or Limited Permitted Asset Sale and of the resulting purchase right. Such notice shall state, among other things: (i) the events causing a Change of Control or Limited Permitted Asset Sale, as the case may be; (ii) the date of the Change of Control or Limited Permitted Asset Sale, as the case may be; (iii) the last date on which a Holder may exercise such repurchase right; (iv) the Change of Control Purchase Price or Limited Permitted Asset Sale Purchase Price, as applicable; (v) the Change of Control Purchase Date or Limited Permitted Asset Sale Purchase Date, as applicable; (vi) the name and address of the Paying Agent; and (vii) the procedures that Holders must follow to require the Company to purchase their Notes.

(b)          Simultaneously with providing such notice, the Company will publish a notice containing this information in a newspaper of general circulation in The City of New York or publish the information on the Company’s website or through such other public medium as the Company may use at that time to achieve a broad dissemination of such notice (including, without limitation, a report on Form 6-K or current report on Form 8-K).

(c)          To exercise the Change of Control repurchase right or Limited Permitted Asset Sale repurchase right, a Holder must deliver, on or before the third Business Day (or as otherwise provided in the notice provided for in Section 5.01(a) of this Second Supplemental Indenture), immediately preceding the Change of Control Purchase Date or Limited Permitted Asset Sale Purchase Date, as applicable, the Notes to be purchased, duly endorsed for transfer, together with a written purchase notice and the form titled “Form of Purchase Notice” on the reverse side of the Notes duly completed, to the Paying Agent. Such notice must:

		(i)	
if certificated, state the certificate numbers of the Notes to be delivered for purchase;

		(ii)	
if not certificated, comply with requisite procedures of the Depository;

		(iii)	
state the portion of the principal amount of Notes to be purchased, which must be $25.00 or an integral multiple thereof; and

		(iv)	
state that the Notes are to be purchased by the Company pursuant to the applicable provisions of the Notes and the Indenture.

(d)          Holders may withdraw any purchase notice (in whole or in part) by a written notice of withdrawal delivered to the Paying Agent prior to the close of business on the Business Day immediately preceding the Change of Control Purchase Date or Limited Permitted Asset Sale Purchase Date, as applicable. The notice of withdrawal shall:

		(i)	
state the principal amount of the withdrawn Notes;

		(ii)	
if certificated Notes have been issued, state the certificate numbers of the withdrawn Notes;

		(iii)	
if not certificated, comply with requisite procedures of the Depository; and

		(iv)	
state the principal amount, if any, which remains subject to the purchase notice.

13

(e)          On each Change of Control Purchase Date or Limited Permitted Asset Sale Purchase Date, as applicable, the Company will, to the extent lawful, (i) accept for payment all Notes or portions of Notes properly tendered pursuant to the applicable Change of Control offer or Limited Permitted Asset Sale offer made by the Company, (ii) deposit with the Paying Agent by 11:00 a.m. Eastern Time on the Change of Control Purchase Date or Limited Permitted Asset Sale Purchase Date, as applicable, an amount equal to the Change of Control Purchase Price or the Limited Permitted Asset Sale Purchase Price, as applicable, in each case, in respect of all Notes or portions of Notes properly tendered pursuant to the applicable Change of Control offer or Limited Permitted Limited Asset Sale offer made by the Company and (iii) deliver or cause to be delivered to the Trustee the Notes properly accepted, together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being repurchased. If the Paying Agent holds money or securities sufficient to pay the Change of Control Purchase Price or the Limited Permitted Asset Sale Purchase Price, as applicable, of the Notes on the Change of Control Purchase Date or the Limited Permitted Asset Sale Purchase Date, as applicable, then:

		(i)	
the Notes will cease to be outstanding and interest will cease to accrue (whether or not book-entry transfer of the Notes is made or whether or not the Notes are delivered to the Paying Agent); and

		(ii)	
all other rights of the Holder will terminate (other than the right to receive the Change of Control Purchase Price or the Limited Permitted Asset Sale Purchase Price, as applicable).

(f)          In connection with any offer to purchase Notes pursuant to a Change of Control purchase notice or Limited Permitted Asset Sale purchase notice, as applicable, the Company will, to the extent applicable, comply with the requirements of Rule 14e-1 under the Exchange Act and any other applicable securities laws and regulations to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control or Limited Permitted Asset Sale. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control or Limited Permitted Asset Sale provisions of this Second Supplemental Indenture, the Company will comply with any applicable securities laws and regulations and will not be deemed to have breached its obligations under this Second Supplemental Indenture by virtue of such compliance.

(g)          No Notes may be purchased at the option of Holders thereof upon a Change of Control or Limited Permitted Asset Sale if the principal amount of the Notes has been accelerated, and such acceleration has not been rescinded, on or prior to such date.

ARTICLE VI

COVENANTS

The covenants set forth in this Article VI shall be applicable to the Company in addition to the covenants in Article IV of the Base Indenture, which shall in all respects be applicable in respect of the Notes (except as otherwise provided herein).

Section 6.01.          Limitation on Borrowings. The Company shall not permit Net Borrowings (calculated on a Pro Forma basis) to equal or exceed 70% of Total Assets (calculated on a Pro Forma basis). For so long as any Subject Vessel Financing Facility remains outstanding, the covenant contained in the preceding sentence shall be deemed not to have been breached unless at least one financial covenant under all of the then-outstanding Subject Vessel Financing Facilities has also been breached at such time, without giving effect to any amendments or waivers to such Subject Vessel Financing Facilities after the Issue Date (the “Financial Covenant Breach Condition”).

Section 6.02.          Limitation on Minimum Tangible Net Worth. The Company shall ensure that Tangible Net Worth, (calculated on a Pro Forma basis) exceeds five hundred million dollars (US$500,000,000). For so long as any Subject Vessel Financing Facility remains outstanding, the covenant contained in the preceding sentence shall be deemed not to have been breached at any time unless the Financial Covenant Breach Condition has been fulfilled.

Section 6.03.          Notice of Cross Default. Following any Cross Default, the Company shall promptly notify the Trustee of the occurrence of such Cross Default.

14

Section 6.04.          Restricted Payments. If (i) an Event of Default or an event or circumstance which, with the giving of any notice or the lapse of time, would constitute an Event of Default (a “Default”) has occurred and is continuing, (ii) an Event of Default or a Default would result therefrom, (iii) the Company is not in compliance with Section 6.01 or Section 6.02 of this Second Supplemental Indenture, or (iv) any payment of dividends or any form of distribution or return of capital by the Company or a Subsidiary would result in the Company not being in compliance with Section 6.01 or Section 6.02 of this Second Supplemental Indenture, then neither the Company nor any Subsidiary shall declare or pay any dividends or return any capital to its equity holders or authorize or make any other distribution, payment or delivery of property or cash to its equity holders (other than the Company or a Wholly-Owned Subsidiary of the Company), or redeem, retire, purchase or otherwise acquire, directly or indirectly, for value, any interest of any class or series of its equity interests (or acquire any rights, options or warrants relating thereto but not including convertible debt) now or hereafter outstanding and held by Persons other than the Company (other than the Company or a Wholly-Owned Subsidiary of the Company), or repay any loans that are subordinated in right of payment to the Notes to its equity holders (other than the Company or a Wholly-Owned Subsidiary of the Company) or set aside any funds for any of the foregoing purposes (“Restricted Payments”).

Section 6.05.          Line of Business. The Company shall not, and shall not permit any of its Subsidiaries (other than an Immaterial Subsidiary) to, engage in any business other than Permitted Businesses, except to such extent as would not be material to the Company and its Subsidiaries, taken as a whole, it being understood that the Company and its Subsidiaries shall be deemed to be in compliance with Section 6.05 of this Second Supplemental Indenture if the Company or any of its Subsidiaries acquire another Person that is primarily engaged in Permitted Businesses or acquire business operations that primarily consist of Permitted Businesses and continue to operate such acquired Person’s operations or such acquired business operations, as the case may be.

Section 6.06.          Limitation on Asset Sales. The Company shall not, and shall not permit any Subsidiary to, in the ordinary course of business or otherwise, sell, lease, convey, transfer or otherwise dispose of any of the Company’s, or such Subsidiary’s, assets (including Capital Stock and warrants, options or other rights to acquire Capital Stock) (an “Asset Sale”), other than pursuant to a Permitted Asset Sale or a Limited Permitted Asset Sale, unless (A) the Company or a Subsidiary receives, consideration at the time of such Asset Sale at least equal to the Fair Market Value (including as to the value of all non-cash consideration), of the assets subject to such Asset Sale, and (B) within 365 days after the receipt of any Net Proceeds from an Asset Sale, the Company or a Subsidiary shall apply all such Net Proceeds to:

		(a)	
repay or prepay indebtedness under any Credit Facility or other Vessel financing secured by a lien on assets of the Company or any Subsidiary (including, without limitation, any bareboat charter or similar arrangement);

		(b)	
acquire all or substantially all of the assets of, or any Capital Stock of, a person primarily engaged in a Permitted Business; provided, that in the case of the acquisition of Capital Stock of any Person, such Person is or becomes a Subsidiary of the Company and will be subject to all restrictions described in the Indenture as applying to Subsidiaries of the Company existing on the Issue Date;

		(c)	
make a capital expenditure (including, without limitation, making any payments with respect to dry docking of Vessels or under newbuilding contracts, bareboat charters, charters-in or other Vessel acquisition agreements);

		(d)	
acquire other assets that are not classified as current assets under US GAAP and that are used or useful in a Permitted Business (including, without limitation, Vessels and Related Assets);

		(e)	
repay unsecured senior indebtedness of the Company or any Subsidiary (including any redemption, repurchase, retirement or other acquisition of the Notes); and

		(f)	
any combination of the transactions permitted by the foregoing clauses (a) through (e),

provided, that any sale, assignment, conveyance, transfer or lease of all or substantially all of the Company’s properties and assets to any Person or Persons (whether in a single transaction or a series of related transactions) will be governed by Articles IV and V and Section 9.02 of this Second Supplemental Indenture, to the extent applicable, and not by the provisions of this Section 6.06.

15

A (1) binding contract to apply Net Proceeds in accordance with clauses (b) through (d) above shall toll the 365-day period in respect of such Net Proceeds or (2) determination by the Company to apply all or a portion of such Net Proceeds toward the exercise of an outstanding purchase option contract shall toll the 365-day period in respect of such Net Proceeds or portion thereof, in each case, for a period not to exceed 365 days or, in the case of a binding contract to acquire one or more Vessels, until the end of the construction or delivery period specified in such binding contract, as the same may be extended, from the expiration of the aforementioned 365-day period, provided, that such binding contract and such determination by the Company, in each case, shall be treated as a permitted application of Net Proceeds from the date of such binding contract or determination until and only until the earlier of (x) the date on which such acquisition or expenditure is consummated and (y) (i) in the case of a construction contract or any exercised purchase option contract, the date of expiration or termination of such construction contract or exercised purchase option contract and (ii) in all other cases, the 365th day following the expiration of the aforementioned 365-day period.

Pending the final application of any Net Proceeds, the Company or any of its Subsidiaries may apply Net Proceeds to the repayment or reduction of outstanding indebtedness or otherwise invest the Net Proceeds in any manner that is not prohibited by the Indenture.

If a Limited Permitted Asset Sale occurs at any time, the Company must, within 30 days after receipt of Net Proceeds of such Limited Permitted Asset Sale, make pursuant to Article V of this Second Supplemental Indenture an offer to purchase Notes having a principal amount equal to the Excess Proceeds of such Limited Permitted Asset Sale. The price that the Company will be required to pay (the “Limited Permitted Asset Sale Purchase Price”) is equal to 101% of the principal amount of the Notes to be purchased, plus accrued and unpaid interest to, but excluding, the Limited Permitted Asset Sale Purchase Date, subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date. If the offer to purchase is for less than all of the outstanding Notes and Notes in an aggregate principal amount in excess of the purchase amount are tendered and not withdrawn pursuant to the offer, the Company will purchase Notes having an aggregate principal amount equal to the purchase amount on a pro rata basis, with adjustments so that only notes in integral multiples of $25.00 principal amount will be purchased. The “Limited Permitted Asset Sale Purchase Date” will be a date specified by the Company that is not less than 20 calendar days or more than 35 calendar days following the date of the Limited Permitted Asset Sale notice as described in Article V of this Second Supplemental Indenture. Any Notes purchased by the Company pursuant to such offer to purchase will be paid for in cash.

The determination as to whether Fair Market Value has been received in an Asset Sale and whether an Asset Sale constitutes a Permitted Asset Sale or Limited Permitted Asset Sale shall be made as of the time the agreement for such Asset Sale is entered into.

Section 6.07.          Reports.

Section 4.02 of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Section 4.02 with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to Section 4.02 in the Base Indenture shall instead be deemed to refer to Section 6.07 of this Second Supplemental Indenture.

So long as any Notes are outstanding, the Company will (i) file with or furnish to the SEC within the time periods prescribed by its rules and regulations and applicable to the Company and (ii) furnish to the Trustee within 15 days after the date on which the Company would be required to file the same with or furnish the same to the SEC pursuant to its rules and regulations (giving effect to any grace period provided by Rule 12b-25 under the Exchange Act), all financial information required to be contained in Form 20-F and, with respect to the annual consolidated financial statements only, a report thereon by the independent auditors of the Company. The Company shall not be required to file or furnish any report or other information with the SEC if the SEC does not permit such filing or furnishing, although such reports will be required to be furnished to the Trustee. Documents filed by the Company with the SEC via the EDGAR system will be deemed to have been furnished to the Trustee and the Holders of the Notes as of the time such documents are filed via EDGAR, provided, however, that the Trustee shall have no obligation whatsoever to determine whether or not such information, documents or reports have been filed pursuant to EDGAR.

The Company shall provide written notice to the Trustee in the form of an Officers’ Certificate, within five business days after the fulfillment of the Financial Covenant Breach Condition described in Section 6.01 of this Second Supplemental Indenture.

16

Section 6.08.          Compliance Certificate.

Section 4.03 of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Section 4.03 with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to Section 4.03 in the Base Indenture shall instead be deemed to refer to Section 6.08 of this Second Supplemental Indenture.

(a)          The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year, an Officers’ Certificate signed by two of the Company’s officers, one of which shall be the principal executive, principal financial or principal accounting officer of the Company, stating that, in the course of the performance by the signing Officers of their duties as Officers, they would normally have knowledge of any default by the Company in the performance of any of its obligations in the Indenture, and a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under the Indenture, and further stating, as to such Officer signing such certificate, that to the best of his or her knowledge the Company is not in Default in the performance or observance of any of the terms, provisions and conditions of the Indenture (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Company is taking or proposes to take with respect thereto).

(b)          The Company shall deliver to the Trustee, within 30 days after the occurrence thereof, written notice in the form of an Officers’ Certificate of any Event of Default described in Section 7.01 of this Second Supplemental Indenture and any event of which it becomes aware that with the giving of notice or the lapse of time would become such an Event of Default, its status and what action the Company is taking or proposes to take with respect thereto.

ARTICLE VII

EVENTS OF DEFAULT

Section 7.01.          Modifications of Certain Events of Default.

Section 6.01 of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Section 6.01 with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, (i) any references to Section 6.01 in the Base Indenture shall instead be deemed to refer to Section 7.01 of this Second Supplemental Indenture and (ii) any references to Sections 6.01(f) and 6.01(g) in Section 7.07 of the Base Indenture shall instead be deemed to refer to Sections 7.01(h) and 7.01(i), respectively, of this Second Supplemental Indenture. The Events of Default set forth in Section 6.01 of the Base Indenture shall be superseded in their entirety with respect to the Notes by the following Events of Default (each an “Event of Default”):

		(a)	
default in the payment of the principal of or any premium on any Notes, or any Additional Amounts payable with respect thereto, when such principal or premium becomes or such Additional Amounts become due and payable at Maturity; or

17

		(b)	
default in the payment of any interest on any Notes, or any Additional Amounts payable with respect thereto, when such interest becomes or such Additional Amounts become due and payable, and continuance of such default for a period of 30 days; or

		(c)	
failure by the Company to perform or comply with the provisions of Article V of the Base Indenture (as amended by Section 9.02 of this Second Supplemental Indenture) relating to mergers and similar events; or

		(d)	
failure by the Company to provide notice of a Change of Control or a Limited Permitted Asset Sale or to repurchase Notes tendered for repurchase following the occurrence of a Change of Control or a Limited Permitted Asset Sale in conformity with the covenants set forth in Article V of this Second Supplemental Indenture; or

		(e)	
default in the performance, or breach, of any covenant of the Company in the Indenture, and continuance of such default or breach for a period of 60 days after written notice thereof has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the outstanding Notes; or

		(f)	
any debt (excluding debt owed to the Company or any Subsidiary) for borrowed money of the Company or any Subsidiary having an aggregate principal amount of $25.0 million or more in the aggregate for all such debt of all such Persons (i) is subject to an event of default that results in such debt being due and payable prior to its scheduled maturity or (ii) is subject to a failure to make a principal payment when due and such defaulted payment is not made, waived or extended within the applicable grace period; or

		(g)	
the entry against the Company of one or more final, non-appealable judgments or decrees for the payment of money in an aggregate amount in excess of $25.0 million (net of amounts covered by insurance), by a court or courts of competent jurisdiction, which final, non-appealable judgment or decree remains undischarged, unstayed or unwaived for a period of 90 consecutive days following entry of such final non-appealable judgment or decree; or

		(h)	
a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

		(i)	
is for relief against any of the Company or any Significant Subsidiary in an involuntary case;

		(ii)	
appoints (in connection with an insolvency proceeding under a Bankruptcy Law) a custodian, receiver, liquidator, assignee, trustee or other similar official of any of the Company or any Significant Subsidiary for all or substantially all of the property of the Company or such Significant Subsidiary, as applicable; or

		(iii)	
orders the liquidation of any of the Company or any Significant Subsidiary;

and the order or decree remains unstayed and in effect for 60 consecutive days; or

		(i)	
the Company or any Significant Subsidiary, pursuant to or within the meaning of Bankruptcy Law:

		(i)	
commences a voluntary case,

		(ii)	
consents to the entry of an order for relief against it in an involuntary case,

		(iii)	
consents (in connection with an insolvency proceeding under a Bankruptcy Law) to the appointment of a custodian, receiver, liquidator, assignee, trustee or other similar official of it or for all or substantially all of its property ,

18

		(iv)	
makes a general assignment for the benefit of its creditors, or

		(v)	
generally is not paying its debts as they become due.

Section 7.02.          Acceleration of Maturity; Rescission and Annulment. Section 6.02(a) of the Base Indenture shall be applicable to the Notes, except that the reference therein to “clauses (g) or (h) of Section 6.01” shall be replaced by a reference to “clauses (h) or (i) of Section 7.01 of this Second Supplemental Indenture.”

Section 7.03.

Section 6.02(b) of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Section 6.02(b) with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to Section 6.02(b) in the Base Indenture shall instead be deemed to refer to Section 7.03(b) of this Second Supplemental Indenture.

(b) Notwithstanding the foregoing, at the election of the Company, the sole remedy with respect to an Event of Default relating to a failure by the Company to comply with the requirements of Section 6.07 of this Second Supplemental Indenture ( a “Reporting Default”), shall, after the occurrence of such Reporting Default consist exclusively of the right to receive additional interest (the “Additional Interest”) on the Notes at an annual rate equal to (i) 0.25% per annum of the outstanding principal amount of the Notes for each day during the 90 calendar day period beginning on, and including, the date on which such Reporting Default first occurs and on which such Reporting Default is continuing and (ii) 0.50% per annum of the outstanding principal amount of the Notes for each day during the 90 calendar day period beginning on, and including, the 91st day following, and including the date on which such Reporting Default first occurs and on which such Reporting Default is continuing. If the Company so elects, the Additional Interest shall accrue on all outstanding Notes from and including the date on which such Reporting Default first occurs (but excluding the date) until such violation is cured or waived and shall be payable in arrears on regular Interest Payment Dates. On the 181st day after such Reporting Default (if such violation is not cured or waived prior to such 181st calendar day), then the Trustee or the Holders of not less than 25% in principal amount of the outstanding Notes may declare the principal of all the Notes to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders), and upon any such declaration such principal or such lesser amount shall become immediately due and payable.

If the Company elects to pay the Additional Interest as the sole remedy during the first 180 days following the occurrence of a Reporting Default, the Company shall notify in writing the Holders, the Paying Agent and the Trustee of such election at any time on or before the close of business on the second Business Day prior to the date on which such Reporting Default would otherwise occur. Unless and until a Responsible Officer of the Trustee receives at the Corporate Trust Office such written notice, the Trustee may assume without inquiry that Additional Interest is not payable.

Section 7.04.          Limitation on Suits.

Section 6.07(c) of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Section 6.07(c) with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to Section 6.07(c) in the Base Indenture shall instead be deemed to refer to Section 7.04(c) of this Second Supplemental Indenture.

(c) such Holder or Holders have offered to the Trustee indemnity satisfactory to it, in its sole discretion, against the costs, expenses and liabilities to be incurred in compliance with such request;

Section 7.05          Waiver of Past Defaults.

Section 6.13 of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Section with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to Section 6.13 in the Base Indenture shall instead be deemed to refer to Section 7.05 of this Second Supplemental Indenture.

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The Holders of a majority in aggregate principal amount of the then outstanding Securities by notice to the Trustee may, on behalf of the Holders of all of the Securities, rescind an acceleration or waive any existing Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of principal, interest or premium. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

ARTICLE VIII

ADDITIONAL AMOUNTS

Section 8.01.          Additional Amounts. (a) All payments made by or on behalf of the Company under or with respect to the Notes will be made free and clear of and without withholding or deduction for, or on account of, any present or future tax, duty, levy, impost, assessment or other governmental charge (including penalties, interest and other liabilities related thereto) (hereinafter “Taxes”) unless the withholding or deduction of such Taxes is then required by law. If any deduction or withholding for, or on account of, any Taxes imposed or levied by or on behalf of the government of the Republic of Marshall Islands or any political subdivision or any authority or agency therein or thereof having power to tax, or any other jurisdiction in which the Company (including any successor entity) is organized or is otherwise resident for tax purposes, or any jurisdiction from or through which payment is made (including, without limitation, the jurisdiction of each paying agent) (each a “Specified Tax Jurisdiction”), will at any time be required to be made from any payments made under or with respect to the Notes, the Company will pay such additional amounts (the “Additional Amounts”) as may be necessary so that the net amount received in respect of such payments by a Holder (including Additional Amounts) after such withholding or deduction will not be less than the amount such Holder would have received if such Taxes had not been withheld or deducted; provided, however, that the foregoing obligation to pay Additional Amounts does not apply to:

		(i)	
any Taxes that would not have been so imposed but for the Holder or beneficial owner of the Notes having any present or former connection with the Specified Tax Jurisdiction, including any such connection arising as a result of such Holder or beneficial owner (i) being organized under the laws of, or otherwise being or having been a domiciliary, citizen, resident or national thereof, (ii) being or having been engaged in a trade or business therein, (iii) having or having had its principal office located therein, (iv) maintaining a permanent establishment therein, (v) being or having been physically present therein, or (vi) otherwise having or having had some connection with the Specified Tax Jurisdiction (other than, in each case, any present or former connection arising as a result of the mere acquisition, ownership, holding, enforcement or receipt of payment in respect of the Notes);

		(ii)	
any estate, inheritance, gift, sales, excise, transfer, personal property tax or similar tax, assessment or governmental charge;

		(iii)	
any Taxes payable other than by deduction or withholding from payments under, or with respect to, the Notes;

		(iv)	
any Taxes imposed as a result of the failure of the Holder or beneficial owner of the Notes to complete, execute and deliver to the Company (but only if such Holder or beneficial owner can do so without undue hardship) any form or document to the extent applicable to such Holder or beneficial owner that may be required by law or by reason of administration of such law and which is reasonably requested in writing to be delivered to the Company in order to enable the Company to make payments on the Notes without deduction or withholding for Taxes, or with deduction or withholding of a lesser amount, which form or document will be delivered within 30 days of a written request therefor by the Company;

20

		(v)	
any Taxes that would not have been so imposed but for the Holder having presented a Note for payment (in cases in which presentation is required) more than 30 days after the date on which such payment or such Note became due and payable or the date on which payment thereof is duly provided for, whichever is later (except to the extent that the Holder would have been entitled to Additional Amounts had the Note been presented on the last day of such 30-day period);

		(vi)	
any Taxes imposed on or with respect to any payment by the Company to the Holder if such Holder is (i) a fiduciary, a partnership, a limited liability company or other fiscally transparent entity or (ii) a Person other than the sole beneficial owner of such payment, to the extent that a beneficiary or settlor with respect to such fiduciary, a partner or a member of such partnership, limited liability company or other fiscally transparent entity or the beneficial owner of such payment would not have been entitled to Additional Amounts had such beneficiary, settlor, partner, member or beneficial owner been the direct Holder of such Note;

		(vii)	
any Taxes imposed under FATCA (as defined below); or

		(viii)	
any combination of items (i) through (viii) above.

For purposes of this Section 8.01, FATCA shall mean Sections 1471 through 1474 of the Internal Revenue Code of 1986, as amended (the “Code”), as of the Issue Date (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), or any U.S. Treasury Regulations promulgated thereunder or official administrative interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code.

(b)          If the Company becomes aware that it will be obligated to pay Additional Amounts with respect to any payment under or with respect to the Notes, the Company will deliver to the Trustee and Paying Agent at least 30 days prior to the date of that payment (unless the obligation to pay Additional Amounts arises after the 30th day prior to that payment date, in which case the Company will notify the Trustee and Paying Agent in writing promptly thereafter but in no event later than five calendar days prior to the date of payment) an Officers’ Certificate stating the fact that Additional Amounts will be payable and the amount so payable. The Officers’ Certificate shall also set forth any other information necessary to enable the Paying Agent to pay Additional Amounts to Holders on the relevant payment date. The Trustee and Paying Agent will be entitled to rely solely on such Officers’ Certificate as conclusive proof that such payments are necessary. The Company will provide the Trustee and Paying Agent with documentation reasonably satisfactory to the Trustee and Paying Agent evidencing the payment of Additional Amounts.

(c)          The Company will make all withholdings and deductions required by law and will remit the full amount deducted or withheld to the relevant governmental authority on a timely basis in accordance with applicable law. As soon as practicable, the Company will provide the Trustee and Paying Agent with an official receipt or, if official receipts are not obtainable, other documentation reasonably satisfactory to the Trustee and Paying Agent evidencing the payment of the Taxes so withheld or deducted. Upon written request, copies of those receipts or other documentation, as the case may be, will be made available by the Trustee and Paying Agent to the Holders of the Notes.

(d)          Whenever in the Indenture there is referenced, in any context, the payment of amounts based upon the principal amount of the Notes or of principal, interest or any other amount payable under, or with respect to, the Notes, such reference will be deemed to include payment of Additional Amounts as described under this heading to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof.

(e)          The Company will indemnify a Holder, within 10 Business Days after written demand therefor, for the full amount of any Taxes paid by such Holder to a governmental authority of a Specified Tax Jurisdiction, on or with respect to any payment by on or account of any obligation of the Company to withhold or deduct an amount on account of Taxes for which the Company would have been obligated to pay Additional Amounts hereunder and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant governmental authority. A certificate as to the amount of such payment or liability delivered to the Company by a Holder will be conclusive absent manifest error.

21

(f)          The Company will pay any present or future stamp, court, issue, registration or documentary taxes or any other excise or property taxes, charges or similar levies that arise in any Specified Tax Jurisdiction from the execution, delivery, enforcement or registration of the Notes, the Indenture or any other document or instrument in relation thereof, or the receipt of any payments with respect to the Notes, and the Company will indemnify the Holders for any such taxes paid by such Holders.

Section 8.02.          Obligations to Survive. The obligations described in Section 8.01 of this Second Supplemental Indenture will survive any termination, defeasance or discharge of the Indenture and will apply mutatis mutandis to any jurisdiction in which any successor person to the Company is organized or any political subdivision or authority or agency thereof or therein.

ARTICLE IX

FURTHER MODIFICATIONS TO BASE INDENTURE

Section 9.01.          Outstanding Securities.

The third paragraph of Section 2.09 of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such paragraph with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to third paragraph of Section 2.09 in the Base Indenture shall instead be deemed to refer to Section 9.01 of this Second Supplemental Indenture.

If, on or after the Maturity of the Securities or any redemption date or date for purchase of the Notes pursuant to an Offer to Purchase, the Trustee (or Paying Agent, other than the Company or an Affiliate of the Company) holds money sufficient to pay all amounts then due, those Notes payable or to be redeemed or purchased on that date cease to be outstanding and interest on them ceases to accrue.

Section 9.02.          Successors.

Sections 5.01 and 5.02 of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Sections 5.01 and 5.02 with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to Sections 5.01 and 5.02 in the Base Indenture shall instead be deemed to refer to Section 9.02 of this Second Supplemental Indenture.

(a)          The Company will not

(i)          consolidate with or merge with or into any Person or permit any Person to merge with or into the Company, or

(ii)          sell, assign, convey, transfer, or otherwise dispose of all or substantially all of its properties and assets, in one transaction or a series of related transactions, to any Person or

(iii)          lease all or substantially all of its assets, whether in one transaction or a series of transactions, to one or more other Persons, unless

(A)          the successor Person, if any, is a corporation, partnership, trust or other entity organized and validly existing under the laws of the Republic of the Marshall Islands, the United States of America, any State of the United States of America or the District of Columbia, the Commonwealth of the Bahamas, the Republic of Liberia, the Republic of Panama, the Commonwealth of Bermuda, the British Virgin Islands, the Cayman Islands, the Isle of Man, Cyprus, Norway, Greece, Hong Kong, the United Kingdom, Malta, any Member State of the European Union and any other jurisdiction generally acceptable, as determined in good faith by the Board of Directors of the Company, to institutional lenders in the shipping industries;

22

(B)          immediately after giving effect to the transaction, no Default or Event of Default has occurred and is continuing;

(C)          such Person or Persons shall expressly assume by supplemental indenture executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of, and any interest on, all Notes and the performance or observance of every covenant of the Indenture on the part of the Company to be performed or observed; and

(D)          the Company delivers to the Trustee, prior to the consummation of the transaction, an Officers’ Certificate and an Opinion of Counsel, each stating that the consolidation, merger or transfer and the supplemental indenture (if any) comply with the Indenture.

(b)          Upon the consummation of any transaction effected in accordance with these provisions, the successor Person will succeed to, and be substituted for, and may exercise every right and power of, the Company under the Indenture and the Notes with the same effect as if such successor Person had been named as the Company in the Indenture. Upon such substitution, except in the case of (i) a lease or (ii) the sale, conveyance, transfer or disposition of less than all its assets, the Company will be released from its obligations under the Indenture and the Notes.

(c)          Section 9.02 of this Second Supplemental Indenture shall not apply to any transfer of assets among the Company and its Wholly-Owned Subsidiaries.

Section 9.03.          Principal and Interest Inclusive. With respect to the Notes, all provisions of the Indenture relating to principal and interest, shall be understood to include, to the extent applicable, the Change of Control Purchase Price, the Limited Permitted Asset Sale Purchase Price, any redemption price, any Additional Amounts, any Additional Interest, and any other amounts then payable upon the Notes.

Section 9.04.          Satisfaction and Discharge.

The provisions for satisfaction and discharge contained in Section 8.01 and 8.02 of the Base Indenture shall apply to the Notes, except that clause (a)(ii)(4) in Section 8.01 of the Base Indenture shall not apply to the Notes.

Section 9.05.          Legal Defeasance.

Section 8.03 of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Section 8.03 with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to Section 8.03 in the Base Indenture shall instead be deemed to refer to Section 9.05 of this Second Supplemental Indenture.

After the deposit referred to in clause (a) below, the Company will be deemed to have paid and will be discharged from all of its obligations in respect of the Notes and the Indenture, other than its obligations in Sections 2.04, 2.07, 2.08, 2.14, 7.07, 7.08 and 8.05 of the Base Indenture and Sections 9.05 and 9.07 of this Second Supplemental Indenture (“legal defeasance”), provided the following conditions have been satisfied:

		(a)	
The Company has irrevocably deposited in trust with the Trustee, as trust funds solely for the benefit of the Holders, money or U.S. Government Obligations or a combination thereof sufficient, in the opinion of a nationally recognized firm of independent public accountants or a nationally-recognized valuation firm reasonably acceptable to the Trustee expressed in a written certificate thereof delivered to the Trustee, without consideration of any reinvestment, to pay principal of and interest on the Notes to maturity or redemption, as the case may be, provided that any redemption before maturity has been irrevocably provided for under arrangements satisfactory to the Trustee.

23

		(b)	
No default has occurred and is continuing on the date of the deposit.

		(c)	
The deposit will not result in a breach or violation of, or constitute a Default under, the Indenture or any other agreement or instrument to which the Company is a party or by which it is bound (except for agreements relating to indebtedness being retired simultaneously or in connection with such legal defeasance or covenant defeasance).

		(d)	
The Company has delivered to the Trustee an Opinion of Counsel stating that: (i) it has received from the Internal Revenue Service a letter ruling, or there has been published by the Internal Revenue Service a Revenue Ruling, or (ii) since the date of this Second Supplemental Indenture, there has been a change in the applicable U.S. federal income tax law, in either case to the effect that, and based thereon such opinion shall confirm that, the Holders of the Notes will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such legal defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such legal defeasance had not occurred.

		(e)	
The Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, in each case stating that all conditions precedent provided for herein relating to the defeasance have been complied with.

None of the Company’s obligations under the Indenture will be discharged prior to the deposit referred to in clause (a) above. Thereafter, the Trustee upon request will acknowledge in writing the discharge of the Company’s obligations under the Notes and the Indenture except for the surviving obligations specified above.

Section 9.06.          Covenant Defeasance.

Section 8.04 of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Section 8.04 with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to Section 8.04 in the Base Indenture shall instead be deemed to refer to Section 9.06 of this Second Supplemental Indenture.

Following the deposit referred to in clause (a) of Section 9.05 of this Second Supplemental Indenture, the Company’s obligations set forth in Section 4.02, 4.02, 2.02, 2.05, 2.05 and 5.01 of the Base Indenture and Sections 6.01 through 6.08 of this Second Supplemental Indenture and clauses (c), (d), (e), (f) and (g) of Section 7.01 of this Second Supplemental Indenture will no longer constitute Events of Default (“covenant defeasance”), provided the following conditions have been satisfied:

		(a)	
 The Company has complied with clauses (a), (b), (c) and (e) of Section 9.05 of this Second Supplemental Indenture; and

		(b)	
The Company has delivered to the Trustee an Opinion of Counsel to the effect that the Holders of the Notes will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such covenant defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such covenant defeasance had not occurred

		(c)	
Except as specifically stated above, none of the Company’s obligations under the Indenture will be discharged.

Section 9.07.          Reinstatement. If and for so long as the Trustee is unable to apply any money or U.S. Government Obligations held in trust pursuant to Sections 8.01 and 8.02 of the Base Indenture (as modified by Section 9.04 of the Second Supplemental Indenture), or Section 9.05 or 9.06 of this Second Supplemental Indenture by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under the Indenture and the Notes will be reinstated as though no such deposit in trust had been made. If the Company makes any payment of principal of or interest on any Notes because of the reinstatement of its obligations, it will be subrogated to the rights of the Holders of such Notes to receive such payment from the money or U.S. Government Obligations held in trust.

24

Section 9.08.          Modification Without Consent. Clauses (a) through (h) of Section 9.01 of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such clauses (a) through (h) of Section 9.01 of with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to clauses (a) through (h) of Section 9.01 of in the Base Indenture shall instead be deemed to refer to Section 9.08 of this Second Supplemental Indenture. With respect to the Notes, the following clauses (a) through (l) shall replace clauses (a) through (h) of Section 9.01 of the Base Indenture:

		(a)	
to cure any ambiguity, omission, defect or inconsistency;

		(b)	
conform the text of the Indenture or the Notes to any provision of the “Description of Notes” in the preliminary prospectus supplement dated November 2, 2017 to the extent that such provision in the “Description of Notes” was intended to be a verbatim recitation of such text in the Indenture or the Notes, as evidenced by an Officers’ Certificate to that effect;

		(c)	
provide for the issuance of Additional Notes in accordance with the limitations set forth in the Indenture;

		(d)	
add guarantors or obligors with respect to the Indenture or the Notes;

		(e)	
make any amendment to the provisions of the Indenture relating to the transfer and legending of Notes; provided, however, that (i) compliance with the Indenture would not result in Notes being transferred in violation of the Securities Act, or any applicable securities law and (ii) such amendment does not materially and adversely affect the rights of Holders of Notes to transfer Notes;

		(f)	
provide for the assumption by a successor Person of the Company’s obligations under the Notes and the Indenture in accordance with the provisions of the Indenture;

		(g)	
secure the Notes;

		(h)	
add to the covenants or rights for the benefit of the Holders of the Notes or surrender any right or power conferred upon the Company or any of its Subsidiaries;

		(i)	
comply with the rules of any Depository;

		(j)	
provide for uncertificated Notes in addition to or in place of certificated Notes;

		(k)	
comply with the requirements of the TIA and any rules promulgated under the TIA; or

		(l)	
make any change that does not adversely affect the rights of any Holder of Notes in any material respect.

25

Section 9.09.          Modification With Consent. Clauses (a) through (l) of Section 9.03 of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such clauses (a) through (l) of Section 9.03 with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to clauses (a) through (l) of Section 9.03 in the Base Indenture shall instead be deemed to refer to 9.09 of this Second Supplemental Indenture. With respect to the Notes, the following clauses (a) through (j) shall replace clauses (a) through (l) of Section 9.03 of the Base Indenture:

		(a)	
change the stated maturity of the principal of or any interest on the Notes (other than modifications to Article IV and Section 6.06 of this Second Supplemental Indenture);

		(b)	
reduce the principal amount of or interest on the Notes;

		(c)	
reduce the interest rate applicable to the Notes;

		(d)	
change the currency of payment of principal of or interest on the Notes or change any Note’s place of payment;

		(e)	
impair the right of any Holder to receive payment of principal of and interest on such Holder’s Notes on or after the due dates therefor or to institute suit for the enforcement of any payment on, or with respect to, the Notes;

		(f)	
subordinate the Notes in right of payment;

		(g)	
reduce the Company’s obligation to pay Additional Amounts on any Note;

		(h)	
waive a Default or Event of Default in the payment of the principal of or interest, if any, on any Note (except a rescission of acceleration of the Notes by the Holders of at least a majority in principal amount of the outstanding Notes and a waiver of the payment Default that resulted from such acceleration);

		(i)	
waive a redemption payment with respect to any Note or change any of the provisions with respect to the redemption of the Notes (other than modifications to Article IV or Section 6.06 of this Second Supplemental Indenture); or

		(j)	
modify provisions with respect to modification, amendment or waiver (including waiver of Events of Default), except to increase the percentage required for modification, amendment or waiver or to provide for consent of each affected Holder of the Notes.

Section 9.10.          Duties of Trustee.

Section 7.01(e) of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Section 7.01(e) with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to Section 7.01(e) in the Base Indenture shall instead be deemed to refer to Section 9.10(e) of this Second Supplemental Indenture.

(e) The Trustee may refuse to perform any duty or exercise any right or power unless it receives an indemnity satisfactory to it, in its sole discretion, against any loss, liability or expense.

Section 9.11.          Rights.

Section 7.02(f) of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Section 7.02(f) with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to Section 7.02(f) in the Base Indenture shall instead be deemed to refer to Section 9.11(f) of this Second Supplemental Indenture.

(f) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by or pursuant to this Indenture at the request, order or direction of any of the Holders of Securities or to risk or expend its own funds or otherwise incur liability in the performance of any of its duties or in the exercise of any of its rights or powers, unless such Holders shall have offered to the Trustee reasonable security or indemnity satisfactory to it, in its sole discretion, against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

26

ARTICLE X

MISCELLANEOUS

Section 10.01.          Ratification of Base Indenture. This Second Supplemental Indenture is executed and shall be constructed as an indenture supplement to the Base Indenture, and as supplemented and modified hereby, the Indenture is in all respects ratified and confirmed, and the Base Indenture and this Second Supplemental Indenture shall be read, taken and constructed as one and the same instrument.

Section 10.02.          TIA Controls. If any provision of the Indenture limits, qualifies or conflicts with another provision that is required or deemed to be included in the Indenture by the TIA, the required or deemed provision shall control.

Section 10.03.          Notices. All notices and other communications shall be given as provided in the Base Indenture.

Section 10.04.          Governing Law. Section 10.11 of the Base Indenture shall not apply to the Notes and shall be void and of no force and effect with respect to the Notes; provided that the foregoing shall not affect the validity or effect of such Section 10.11 with respect to any other Series of Securities issued under the Indenture; and, insofar as relating to the Notes, any references to Section 10.11 in the Base Indenture shall instead be deemed to refer to Section 10.04 of this Second Supplemental Indenture.

(a)          THE INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE OR INSTRUMENTS ENTERED INTO AND, IN EACH CASE, PERFORMED IN THE STATE OF NEW YORK.

(b)          Any legal suit, action or proceeding arising out of or based upon the Indenture (each a “Related Proceeding”) may be instituted in the federal courts of the United States of America located in the City and County of New York, Borough of Manhattan, or the courts of the State of New York in each case located in the City and County of New York, Borough of Manhattan (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such court (a “Related Judgment”), as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail to such party’s address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum. The Company irrevocably appoint Star Bulk (USA) LLC, a Delaware limited liability company, as its agent to receive service of process or other legal summons for purposes of any such suit, action or proceeding that may be instituted in any state or federal court in the City and County of New York.

(c)          With respect to any Related Proceeding, each party irrevocably waives, to the fullest extent permitted by applicable law, all immunity (whether on the basis of sovereignty or otherwise) from jurisdiction, service of process, attachment (both before and after judgment) and execution to which it might otherwise be entitled in the Specified Courts, and with respect to any Related Judgment, each party waives any such immunity in the Specified Courts or any other court of competent jurisdiction, and will not raise or claim or cause to be pleaded any such immunity at or in respect of any such Related Proceeding or Related Judgment, including, without limitation, any immunity pursuant to the United States Foreign Sovereign Immunities Act of 1976, as amended.

27

Section 10.05.          Successors. All covenants and agreements in this Second Supplemental Indenture and the Notes by the Company shall bind its successors and assigns, whether so expressed or not.

Section 10.06.          Counterparts. This Second Supplemental Indenture may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. The exchange of copies of this Second Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Second Supplemental Indenture as to parties hereto and may be issued in lieu of this original Second Supplemental Indenture and signature pages for all purposes.

Section 10.07.          Headings. The Article and Section headings of this Second Supplemental Indenture are for convenience only and shall not affect the construction hereof.

Section 10.08.          Cross-References. To the extent this Second Supplemental Indenture supersedes or replaces a section of the Base Indenture, references to such section elsewhere in the Base Indenture shall be understood to refer to the section of this Second Supplemental Indenture superseding or replacing such section.

Section 10.09.          Trustee Not Responsible for Recitals. The recitals contained herein and in the Notes, except the Trustee’s certificate of authentication shall be taken as the statements of the Company and neither the Trustee nor any authenticating agent appointed by the Trustee assumes any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Second Supplemental Indenture or of the Notes, except that the Trustee represents that it is duly authorized to execute and deliver this Second Supplemental Indenture, authenticate the Notes and perform its obligations hereunder and that the statements made by it in a Statement of Eligibility on Form T-1 supplied to the Company are true and accurate, subject to the qualifications set forth therein. Neither the Trustee nor any authenticating agent appointed by the Trustee shall be accountable for the use or application by the Company of the Notes or the proceeds thereof.

The Trustee shall not be responsible in any manner whatsoever for or with respect to (i) the proper authorization hereof by the Company by action or otherwise, (ii) the due execution hereof by the Company, or (iii) the consequences of any amendment herein provided for.

Section 10.10.          In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations under this Indenture arising out of or caused by, directly or indirectly, forces beyond its reasonable control, including without limitation strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software or hardware) services.

28

IN WITNESS WHEREOF, the parties have caused this Second Supplemental Indenture to be duly executed as of the date first written above.

	
COMPANY:

	 
	
STAR BULK CARRIERS CORP.

	 
	 	 	 	 
	
By:

	
/s/ Hamish Norton

	 
	 	
Name:

	
 Hamish Norton

	 
	 	
Title:

	
 President

	 

[Signature Page to Second Supplemental Indenture]

29

	
TRUSTEE:

	 
	
U.S. BANK NATIONAL ASSOCIATION, as Trustee

	 
	 	 	 	 
	
By: U.S. Bank National Association

	 
	 	 	 	 
	
By:

	
/s/ Richard Prokosch

	 
	 	
Name:

	
Richard Prokosch

	 
	 	
Title:

	
Vice President

	 

[Signature Page to Second Supplemental Indenture]

30

EXHIBIT A

FORM OF NOTE

[INSERT IN GLOBAL NOTE] [THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY (AS DEFINED IN THE INDENTURE) OR A NOMINEE THEREOF. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY, OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY, OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE 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 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.]

CUSIP NO. [     ]

ISIN NO. [     ]

STAR BULK CARRIERS CORP.

8.30% SENIOR NOTE DUE 2022

$[     ] No.: [     ]

STAR BULK CARRIERS CORP., a Marshall Islands corporation (hereinafter called the “Company”, which term includes any successor corporation under the Indenture referred to below), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of $[ ] ([ ] DOLLARS) [as set forth on Schedule I annexed hereto] on November 15, 2022, and to pay interest thereon from and including [ ] or from the most recent Interest Payment Date on which interest has been paid or duly provided for, quarterly on February 15, May 15, August 15 and November 15 in each year, commencing [ ], at the rate of 8.30% per annum, until the principal hereof is paid or made available for payment. Interest on this Note shall be computed on the basis of a 360-day year of twelve 30-day months. If any Interest Payment Date or the Maturity Date falls on a day that is not a Business Day, the required payment of interest or principal, as the case may be, shall be made on the next succeeding Business Day as if it were made on the date such payment was due and no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date or the Maturity Date, as the case may be, to such next Business Day. The interest so payable and punctually paid or duly provided for on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Note (or one or more predecessor Notes) is registered at the close of business on the Regular Record Date for such interest, which shall be the February 1, May 1, August 1 or November 1 (whether or not a Business Day), as the case may be, [ ] preceding such Interest Payment Date. Any such interest which is payable but not punctually paid or duly provided for on any Interest Payment Date shall forthwith cease to be payable to the registered Holder hereof on the relevant Record Date by virtue or having been such Holder, and may be paid to the Person in whose name this Note (or one or more predecessor Notes) is registered at the close of business on a subsequent special record date (which shall be at least 10 days before the payment date) for the payment of such defaulted interest to be fixed by the Company, notice whereof shall be given to the Holders of Notes not less than 10 days prior to such special record date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture.

Payment of the principal of and interest on this Note (including, without limitation, any purchase price relating to a Change of Control offer to purchase or a Limited Permitted Asset sale offer to purchase) will be made at the office or agency of the Company maintained for that purpose in The Borough of Manhattan, The City of New York, 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; provided, however, that, at the option of the Company, interest may be paid by check mailed to the address of the Person entitled thereto as such address shall appear in the Security register; provided, further, that payment to DTC or any successor depository may be made by wire transfer to the account designated by DTC or such successor depository in writing.

This Note is one of a duly authorized issue of securities of the Company designated as its 8.30% Senior Notes due 2022 (herein called the “Notes”), issued and to be issued in one or more series under an Indenture, dated as of November 6, 2014 (the “Base Indenture”), between the Company and U.S. Bank National Association, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), as supplemented by the Second Supplemental Indenture, dated November 9, 2017, between the Company and the Trustee (the “Second Supplemental Indenture” and any other supplemental indentures applicable to the Securities created pursuant to the Second Supplemental Indenture, together with the Base Indenture, 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 Trustee and the Holders of the Notes, and of the terms upon which the Notes are, and are to be, authenticated and delivered.

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

The Notes may not be redeemed prior to the Stated Maturity, except as described in Section 3.01 and 3.02 of the Second Supplemental Indenture. The Notes are not subject to any sinking fund.

Upon the occurrence of a Change of Control or a Limited Permitted Asset Sale, each Holder of Notes will have the right to require the Company to purchase all or a portion of such Holder’s Notes at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to but excluding the date of purchase, to the extent provided for in the Indenture.

The Indenture contains provisions permitting, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Notes of each series issued under the Indenture at any time by the Company and the Trustee with the written consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding of each series affected thereby. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Notes of any series at the time outstanding, on behalf of the Holders of all Notes of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Notes 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 Note.

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note, at the times, place and rate, and in the coin or currency, herein and in the Indenture prescribed.

As provided in the Indenture and subject to certain limitations set forth therein and in this Note, the transfer of this Note may be registered on the Security register upon surrender of this Note for registration of transfer at the office or agency of the Company maintained for that purpose in any place where the principal of and interest on this Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Registrar duly executed by, the Holder hereof or by his attorney duly authorized in writing, and thereupon one or more new Notes of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

The Notes are issuable only in registered form in the denominations of $25.00 or any integral multiple thereof. As provided in the Indenture and subject to certain limitations set forth in the Indenture, and in this Note, the Notes are exchangeable for a like aggregate principal amount of Notes of this series in different authorized denominations, as requested by the Holders surrendering the same.

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith, other than in certain cases provided in the Indenture.

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and none of the Company, the Trustee or any such agent shall be affected by notice to the contrary.

The Indenture contains provisions whereby (i) the Company may be discharged from its obligations with respect to the Notes (subject to certain exceptions) or (ii) the Company may be released from its obligations under specified covenants and agreements in the Indenture, in each case if the Company irrevocably deposits with the Trustee money or U.S. Government Obligations, or a combination thereof, in an amount sufficient, without consideration of any reinvestment, to pay and discharge the entire indebtedness on all Notes of this series, and satisfies certain other conditions, all as more fully provided in the Indenture.

This Note shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made or instruments entered into and, in each case, performed in said State.

2

All terms used in this Note without definition that are defined in the Indenture shall have the meanings assigned to them in the Indenture. To the extent any provision of this Note conflicts with or is inconsistent with the provisions of the Indenture, the provisions of the Indenture shall control and be governing.

 

 

  

[Remainder of Page Intentionally Left Blank]

 

 

 

 

 

3

[Signature Page to 8.30% Senior Note due 2022]

IN WITNESS WHEREOF, the Company has caused this Note to be to be duly executed as of the date set forth below.

	
COMPANY:

	 
	
STAR BULK CARRIERS CORP.

	 
	 	 	 	 
	
By:

	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 
	 	 	 	 
	
By:

	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

Trustee’s Certificate of Authentication

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

Dated: [     ]

	
U.S. BANK NATIONAL ASSOCIATION,

	 
	
as Trustee

	 
	 	 	 	 
	
By:

	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

[Certificate of Authentication to 8.30% Senior Note due 2022]

ASSIGNMENT FORM

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

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

	 
	 
	 
	 
	 
	 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing attorney to transfer said Security on the books of the Company, with full power of substitution in the premises.

	
Dated:

	
 

	 	 
	
Signature:

	
 

	 	 
	
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.

Signature Guarantee:

SIGNATURE GUARANTEE

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

FORM OF PURCHASE NOTICE

If you want to elect to have this Note purchased by the Company pursuant to Sections 4.01 or 6.06 of the Second Supplemental Indenture, check the box:

	
Section 4.01

	
 Section 6.06

	 	 
	 ☐	 ☐

If you want to elect to have only part of this Note purchased by the Company pursuant to Sections 4.01 or 6.06 of the Second Supplemental Indenture, state the amount in principal amount: $

	
Dated:

	
Your Signature:

	 
	 	 	 
	 	 	
(Sign exactly as your name appears on the other side of this Note.)

Signature Guarantee:

(Signature must be guaranteed)

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

Schedule I

SCHEDULE OF TRANSFERS AND EXCHANGES

The initial principal amount of this Global Security is $[ ] ([ ] DOLLARS). The following increases or decreases in principal amount of this Global Security have been made:

	
Date of Exchange

	
Amount of Decrease 

in Principal Amount 

of this Global 

 Security

	
Amount of 

Increase in 

Principal Amount 

of this Global 

 Security

	
Principal 

Amount of this 

Global 

Security 

following such 

Decrease or 

 Increase

	
Signature of 

Authorized 

Signatory of 

trustee or 

 Custodian

	
Start hereExhibit 10.1

 

NIOCORP
DEVELOPMENTS LTD.

 

LONG
TERM Incentive PLAN

 

Approved
by the Board of Directors on September 29, 2017 and by Shareholders on November 9, 2017

 

     

     

    

 

PART
I – GENERAL PROVISIONS

 

		1.	PREAMBLE
                                         AND DEFINITIONS

 

		1.1	Title.

 

The
Plan described in this document shall be called the “NioCorp Developments Ltd. Long Term Incentive Plan”.

 

		1.2	Purpose
                                         of the Plan.

 

		1.2.1	The
                                         purposes of the Plan are:

 

		(a)	to
                                         promote a further alignment of interests between officers, employees and other eligible
                                         service providers and the shareholders of the Corporation;

 

		(b)	to
                                         potentially associate a portion of the compensation payable to officers, employees and
                                         other eligible service providers with the returns achieved by shareholders of the Corporation;
                                         and

 

		(c)	to
                                         help attract and retain officers, employees and other eligible service providers with
                                         the knowledge, experience and expertise required by the Corporation.

 

		1.2.2	The
                                         Plan shall serve as the successor to the Corporation’s 2016 Incentive Stock Option
                                         Plan approved by shareholders on February 23, 2016 (the “Prior Plan”),
                                         and no further awards shall be made under the Prior Plan on and after the effective date
                                         of the Plan. All outstanding awards under the Prior Plan immediately prior to the effective
                                         date of the Plan shall be included in the maximum number of Shares and other limitations
                                         set forth in Section 4 herein. However, each such award shall continue to be governed
                                         solely by the terms and conditions of the instrument evidencing such grant and the Prior
                                         Plan, and no provision of this Plan shall affect or otherwise modify the rights or obligations
                                         of holders of such awards.

 

		1.3	Definitions.

 

		1.3.1	“Affiliate(s)”
                                         shall mean a Parent or Subsidiary of the Corporation.

 

		1.3.2	“Applicable
                                         Law” means any applicable provision of law, domestic or foreign, including,
                                         without limitation, applicable securities legislation, together with all regulations,
                                         rules, policy statements, rulings, notices, orders or other instruments promulgated thereunder,
                                         and Stock Exchange Rules.

 

    2

     

    

 

		1.3.3	“Beneficiary”
                                         means, subject to Applicable Law, an individual who has been designated by a Participant,
                                         in such form and manner as the Board may determine, to receive benefits payable under
                                         the Plan upon the death of the Participant, or, where no such designation is validly
                                         in effect at the time of death, the Participant’s legal representative.

 

		1.3.4	“Blackout
                                         Period” means a period of time when, pursuant to any policies of the Corporation,
                                         any securities of the Corporation may not be traded by certain persons as designated
                                         by the Corporation, including any holder of a Grant.

 

		1.3.5	“Board”
                                         means the Board of Directors of the Corporation.

 

		1.3.6	“Cause”
                                         means, except as otherwise provided in an applicable Grant Agreement:

 

		(a)	subject
                                         to (b) below, “just cause” or “cause” for Termination by the
                                         Corporation or an Affiliate as determined under Applicable Law;

 

		(b)	where
                                         a Participant has a written employment agreement with the Corporation or an Affiliate,
                                         “Cause” as defined in such employment agreement, if applicable; or

 

		(c)	where
                                         a Participant provides services as an independent contractor pursuant to a contract for
                                         services with the Corporation or an Affiliate, any material breach of such contract.

 

		1.3.7	“Change
                                         in Control” means, except as otherwise provided in an applicable Grant Agreement:

 

		(a)	a
                                         successful “take-over bid” (as defined in the Securities Act (British
                                         Columbia), as amended, or any successor legislation thereto) pursuant to which the “offeror”
                                         acquires beneficial ownership of securities of the Corporation which, directly or following
                                         conversion or exercise thereof, would entitle the holder thereof, together with persons
                                         acting jointly or in concert with the holder thereof, to cast more than fifty percent
                                         (50%) of the votes attaching to all securities of the Corporation which may be cast to
                                         elect directors of the Corporation, other than the acquisition of beneficial ownership
                                         of additional securities of the Corporation by any person who, together with persons
                                         acting jointly or in concert with such person, was entitled prior to such “take-over
                                         bid”, directly or following conversion or exercise securities of the Corporation,
                                         to cast more than fifty percent (50%) of the votes attaching to all securities of the
                                         Corporation which may be cast to elect directors of the Corporation;

 

		(b)	the
                                         issuance to, or acquisition by, any person, or group of persons acting jointly or in
                                         concert, directly or indirectly, including through an arrangement or other form of reorganization,
                                         of beneficial ownership of securities of the Corporation which, directly or following
                                         conversion or exercise thereof, would entitle the holder thereof to cast more than fifty
                                         percent (50%) of the votes attaching to all securities of the Corporation which may be
                                         cast to elect directors of the Corporation, other than the issuance of securities of
                                         the Corporation to, or acquisition of securities of the Corporation by, any person who,
                                         together with persons acting jointly or in concert with such person, was entitled prior
                                         to such issuance or acquisition, directly or following conversion or exercise securities
                                         of the Corporation, to cast more than fifty percent (50%) of the votes attaching to all
                                         securities of the Corporation which may be cast to elect directors of the Corporation;

 

    3

     

    

 

		(c)	individuals
                                         who, as of a Grant Date, constitute the Board (the “Incumbent Board”)
                                         cease for any reason (other than death or disability) to constitute at least a majority
                                         of the Board; provided, however, that any individual becoming a Director subsequent to
                                         the Grant Date, whose election, or nomination for election by the Corporation’s
                                         shareholders, was approved by a vote of at least two-thirds of the Directors then comprising
                                         the Incumbent Board (either by a specific vote or by approval of the proxy statement
                                         of the Corporation in which such person is named as a nominee for Director, without objection
                                         to such nomination) will be considered as though such individual was a member of the
                                         Incumbent Board, but excluding for this purpose any such individual whose initial assumption
                                         of office occurs as a result of an actual or threatened election contest with respect
                                         to the election or removal of Directors or other actual or threatened solicitation of
                                         proxies or consents by or on behalf of a person other than the Directors then comprising
                                         the Board;

 

		(d)	an
                                         arrangement, amalgamation, merger or other form of reorganization of the Corporation
                                         where the holders of the outstanding voting securities or interests of the Corporation
                                         immediately prior to the completion of the arrangement, amalgamation, merger or reorganization
                                         will hold fifty percent (50%) or less of the votes attaching to all outstanding voting
                                         securities or interests of the continuing entity upon completion of the arrangement,
                                         amalgamation, merger or reorganization;

 

		(e)	the
                                         sale of all or substantially all of the assets of the Corporation; or

 

		(f)	the
                                         liquidation, winding-up or dissolution of the Corporation.

 

		1.3.8	“Code”
                                         or “Internal Revenue Code” means the United States Internal Revenue
                                         Code of 1986, as amended, and any applicable United States Treasury Regulations and other
                                         binding regulatory guidance thereunder.

 

		1.3.9	“Corporation”
                                         means NioCorp Developments Ltd., and includes any successor corporation or entity thereto.

 

		1.3.10	“Director”
                                         means a director of the Corporation from time to time.

 

    4

     

    

 

		1.3.11	“Disability”
                                         means, except as otherwise provided in an applicable Grant Agreement:

 

		(a)	subject
                                         to (b) below, a Participant’s physical or mental incapacity that prevents him/her
                                         from substantially fulfilling his or her duties and responsibilities on behalf of the
                                         Corporation or, if applicable, an Affiliate, as determined by the Board and, in the case
                                         of a Participant who is an employee of the Corporation or an Affiliate, in respect of
                                         which the Participant commences receiving, or is eligible to receive, disability benefits
                                         under the Corporation’s or Affiliate’s long-term disability plan; or

 

		(b)	where
                                         a Participant has a written employment agreement with the Corporation or an Affiliate,
                                         “Disability” as defined in such employment agreement, if applicable.

 

		1.3.12	“Disability
                                         Date” means, in relation to a Participant, that date determined by the Board
                                         to be the date on which the Participant experienced a Disability.

 

		1.3.13	“Eligible
                                         Person” means a Director or an individual Employed by the Corporation or any
                                         Affiliate, including a Service Provider, who, by the nature of his or her position or
                                         job is, in the opinion of the Board, in a position to contribute to the success of the
                                         Corporation provided, however, that only persons who meet the definition of “employees”
                                         under Code Section 3401(c) shall be eligible to receive Incentive Stock Options.

 

		1.3.14	“Employed”
                                         means, with respect to a Participant, that:

 

		(a)	the
                                         Participant is rendering services to the Corporation or an Affiliate (excluding services
                                         as a Director) including as a Service Provider (referred to in Section 1.3.40 as “active
                                         Employment”); or

 

		(b)	the
                                         Participant is not actively rendering services to the Corporation or an Affiliate due
                                         to an approved leave of absence, maternity or parental leave or leave on account of Disability.

 

For
greater certainty, a Participant shall not be considered to be Employed on a Vesting Date if, prior to such Vesting Date, such
Participant received a payment in lieu of notice of termination of employment, whether under a contract of employment, as damages
or otherwise.

 

and
“Employment’ has the corresponding meaning.

 

		1.3.15	“Exercise
                                         Price” means, with respect to an Option, the price payable by a Participant
                                         to purchase one Share on exercise of such Option, which (except as otherwise provided
                                         in Section 9.2) shall not be less than one hundred percent (100%) of the Market Price
                                         on the Grant Date of the Option covering such Share, subject to adjustment pursuant to
                                         Section 5.

 

    5

     

    

 

		1.3.16	“Form
                                         S-8” means a Form S-8 Registration Statement under the United States Securities
                                         Act of 1933.

 

		1.3.17	“Good
                                         Reason” means, except as otherwise provided in an applicable Grant Agreement,
                                         the occurrence of any one or more of the following without a Participant’s written
                                         consent:

 

		(a)	a
                                         material change in the Participant’s position or duties, responsibilities, titles
                                         or offices in effect immediately prior to a Change in Control, which includes any removal
                                         of the Participant from or any failure to re-elect or re-appoint the Participant to any
                                         such position or office;

 

		(b)	a
                                         reduction in the Participant’s overall annual compensation for services provided
                                         to the Corporation or an Affiliate in the cumulative amount of 5% or more within a 12-month
                                         period;

 

		(c)	any
                                         change to the terms or conditions of the employment of the Participant that would constitute
                                         “constructive dismissal” as that term is defined at common law which the
                                         Corporation or an Affiliate, as the case may be, fails to remedy within thirty (30) days
                                         of receiving written notice from the Participant of any such change; or

 

		(d)	the
                                         Corporation or an Affiliate relocating the Participant to any place other than the location
                                         at which the Participant reported for work on a regular basis immediately prior to a
                                         Change in Control or a place within 15 kilometres of that location.

 

		1.3.18	“Grant”
                                         means a grant or right granted under the Plan consisting of one or more Options, RSUs
                                         or PSUs.

 

		1.3.19	“Grant
                                         Agreement” means an agreement between the Corporation and a Participant or
                                         other instrument or document evidencing a Grant and setting out the terms under which
                                         such Grant is made, together with such schedules, amendments, deletions or changes thereto
                                         as are permitted under the Plan. A Grant Agreement may be in an electronic medium and
                                         may be limited to a notation on the books and records of the Corporation. Unless otherwise
                                         determined by the Board, a Grant Agreement does not need to be signed by a representative
                                         of the Corporation or a Participant, provided the Participant’s agreement is expressly
                                         acknowledged.

 

		1.3.20	“Grant
                                         Date” means the effective date of a Grant (which date will not be earlier than
                                         the date on which the Board takes action with respect thereto).

 

		1.3.21	“Grant
                                         Value” is as defined in Section 12.

 

    6

     

    

 

		1.3.22	“Incentive
                                         Stock Option” means an Option that is intended to qualify as an “incentive
                                         stock option” under Code Section 422 or any successor provision.

 

		1.3.23	“Insider”
                                         means an insider of the Corporation as defined in the rules of the Toronto Stock Exchange
                                         Company Manual for the purpose of security based compensation arrangements.

 

		1.3.24	“Market
                                         Price” means, with respect to any particular date:

 

		(a)	if
                                         the Shares are listed on only one Stock Exchange, the closing price per Share on such
                                         Stock Exchange on the Trading Day immediately preceding such date;

 

		(b)	if
                                         the Shares are listed on more than one Stock Exchange, the “Market Price”
                                         as determined in accordance with paragraph (a) above for the primary Stock Exchange on
                                         which the greatest volume of trading of the Shares occurred during the immediately preceding
                                         twenty (20) Trading Days; and

 

		(c)	if
                                         the Shares are not listed for trading on a Stock Exchange, a price which is determined
                                         by the Board in good faith to be the fair market value of the Shares.

 

		1.3.25	“Option”
                                         means an option to purchase a Share granted by the Board to an Eligible Person in accordance
                                         with Section 3 and Section 9.1.

 

		1.3.26	“Parent”
                                         means any parent corporation of the Corporation within the meaning of Code Section 424(e),
                                         or any successor provision.

 

		1.3.27	“Participant”
                                         means an Eligible Person to whom a Grant is made and which Grant or a portion thereof
                                         remains outstanding.

 

		1.3.28	“Performance
                                         Conditions” means such financial, personal, operational, transaction-based
                                         or other performance criteria as may be determined by the Board in respect of a Grant
                                         to any Participant or Participants and set out in a Grant Agreement. Performance Conditions
                                         may apply to an individual Participant or to the Corporation, an Affiliate, the Corporation
                                         and its Affiliates as a whole, a business unit of the Corporation or group comprised
                                         of the Corporation and some Affiliates or a group of Affiliates, either individually,
                                         alternatively or in any combination, and measured either in total, incrementally or cumulatively
                                         over a specified performance period, on an absolute basis or relative to a pre-established
                                         target or milestone, to previous years’ results or to a designated comparator group
                                         or index, or otherwise, provided that the performance period for measurement or achievement
                                         of any such performance criteria (or incremental element thereof) shall in all events
                                         exceed one year. When establishing Performance Conditions, the Board may exclude any
                                         or all “extraordinary items” as determined under applicable accounting standards.
                                         The Board may provide that Performance Conditions will be adjusted to reflect events
                                         occurring during the performance period that affect the applicable Performance Condition.

 

    7

     

    

 

		1.3.29	“Performance
                                         Period” means, with respect to PSUs, the period specified by the Board for
                                         achievement of any applicable Performance Conditions as a condition to Vesting.

 

		1.3.30	“Plan”
                                         means this NioCorp Developments Ltd. Long Term Incentive Plan, including any schedules
                                         or appendices hereto, as may be amended from time to time.

 

		1.3.31	“Performance
                                         Share Unit” or “PSU” means a right granted to an Eligible
                                         Person in accordance with Section 3 and Section 13.1 to receive a Share or the Market
                                         Price, as determined by the Board, that generally becomes Vested, if at all, subject
                                         to the attainment of certain Performance Conditions and satisfaction of such other conditions
                                         to Vesting, if any, as may be determined by the Board.

 

		1.3.32	“Restricted
                                         Share Unit” or “RSU” means a right granted to an Eligible
                                         Person in accordance with Section 3 and Section 13.1 to receive a Share or the Market
                                         Price, as determined by the Board, that generally becomes Vested, if at all, following
                                         a period of continuous Employment or service of the Participant.

 

		1.3.33	“Restrictive
                                         Covenant” means any obligation of a Participant to the Corporation or an Affiliate
                                         to (A) maintain the confidentiality of information relating to the Corporation or the
                                         Affiliate and/or its business, (B) not engage in employment or business activities that
                                         compete with the business of the Corporation or the Affiliate, (C) not solicit employees
                                         or other service providers, customers and/or suppliers of the Corporation or the Affiliate,
                                         whether during or after employment with the Corporation or Affiliate, and whether such
                                         obligation is set out in a Grant Agreement issued under the Plan or other agreement between
                                         the Participant and the Corporation or Affiliate, including, without limitation, an employment
                                         agreement, or otherwise.

 

		1.3.34	“Service
                                         Provider” means a person, other than an employee, officer or director of the
                                         Corporation or an Affiliate, that:

 

		(a)	satisfies
                                         the Form S-8 definition of “employee”;

 

		(b)	is
                                         engaged to provide, on a bona fide basis, for an initial, renewable or extended
                                         period of twelve (12) months or more, services to the Corporation or an Affiliate, other
                                         than services provided in relation to a distribution of securities;

 

		(c)	provides
                                         the services under a written contract between the Corporation or an Affiliate and the
                                         person or company; and

 

    8

     

    

 

		(d)	in
                                         the reasonable opinion of the Corporation, spends or will spend a significant amount
                                         of time and attention on the affairs and business of the Corporation or an Affiliate.

 

		1.3.35	“Share”
                                         means a common share of the Corporation or, in the event of an adjustment contemplated
                                         by Section 5.1, such other security to which a Participant may be entitled upon the exercise
                                         or settlement of a Grant as a result of such adjustment.

 

		1.3.36	“Share
                                         Unit” means either an RSU or a PSU, as the context requires.

 

		1.3.37	“Stock
                                         Exchange” means the Toronto Stock Exchange and such other stock exchange on
                                         which the Shares are listed, or if the Shares are not listed on any stock exchange, then
                                         on the over-the-counter market.

 

		1.3.38	“Stock
                                         Exchange Rules” means the applicable rules of any Stock Exchange upon which
                                         Shares of the Corporation are listed.

 

		1.3.39	“Subsidiary”
                                         means, any subsidiary corporation of the Corporation within the meaning of Code Section
                                         424(f), or any successor provision.

 

		1.3.40	“Termination”
                                         means, except as otherwise provided in an applicable Grant Agreement, (i) in the case
                                         of a Director, the cessation of such Director acting as same, which shall occur on the
                                         date such Director ceases to be a Director, (ii) in the case of all Participants Employed
                                         by the Corporation or an Affiliate, the termination of a Participant’s active Employment
                                         with the Corporation or an Affiliate (other than in connection with the Participant’s
                                         transfer to Employment with the Corporation or another Affiliate), which shall occur
                                         on the earlier of the date on which the Participant ceases to render services to the
                                         Corporation or Affiliate, as applicable, and the date on which the Corporation or an
                                         Affiliate, as applicable, delivers notice of the termination of the Participant’s
                                         employment or contract for services, whether such termination is lawful or otherwise,
                                         without giving effect to any period of notice or compensation in lieu of notice (except
                                         as expressly required by applicable employment standards legislation), but, for greater
                                         certainty, a Participant’s absence from active work during a period of vacation,
                                         temporary illness, authorized leave of absence, maternity or parental leave or leave
                                         on account of Disability shall not be considered to be a “Termination”, and
                                         (iii) in the case of a Participant who does not return to active Employment with the
                                         Corporation or an Affiliate immediately following a period of absence due to vacation,
                                         temporary illness, authorized leave of absence, maternity or parental leave or leave
                                         on account of Disability, such cessation shall be deemed to occur on the last day of
                                         such period of absence, and “Terminated” and “Terminates”
                                         shall be construed accordingly.

 

		1.3.41	“Time
                                         Vesting” means any conditions relating to the passage of time or continued
                                         service with the Corporation or an Affiliate for a period of time in respect of a Grant,
                                         as may be determined by the Board.

 

    9

     

    

 

		1.3.42	“Trading
                                         Day” means a day on which the Stock Exchange is open for trading and on which
                                         the Shares actually traded.

 

		1.3.43	“US
                                         Taxpayer” means an individual who is subject to tax under the Code in respect
                                         of any amounts payable or Shares deliverable under this Plan.

 

		1.3.44	“Vested”
                                         means, with respect to any Option or Share Unit, that the applicable conditions with
                                         respect to Time Vesting, achievement of Performance Conditions and/or any other conditions
                                         established by the Board have been satisfied or, to the extent permitted under the Plan,
                                         waived, whether or not the Participant’s rights with respect to such Grant may
                                         be conditioned upon prior or subsequent compliance with any Restrictive Covenants (and
                                         any applicable derivative term shall be construed accordingly).

 

		1.3.45	“Vesting
                                         Date” means the date on which the applicable Time Vesting, Performance Conditions
                                         and/or any other conditions for an Option or Share Unit becoming Vested are met, deemed
                                         to have been met or waived as contemplated in Section 1.3.44.

 

		2.	CONSTRUCTION
                                         AND INTERPRETATION

 

		2.1	Gender,
                                         Singular, Plural. 

 

In
the Plan, references to the masculine include the feminine, and references to the singular shall include the plural and vice versa,
as the context shall require.

 

		2.2	Severability.
                                         

 

If
any provision or part of the Plan is determined to be void or unenforceable in whole or in part, such determination shall not
affect the validity or enforcement of any other provision or part thereof.

 

		2.3	Headings,
                                         Sections and Parts. 

 

Headings
wherever used herein are for reference purposes only and do not limit or extend the meaning of the provisions herein contained.
A reference to a section or schedule shall, except where expressly stated otherwise, mean a section or schedule of the Plan, as
applicable. The Plan is divided into three Parts. Part I contains provisions of general application to all Grants; Part II applies
specifically to Options; and Part III applies specifically to Share Units.

 

    10

     

    

 

		3.	ADMINISTRATION

 

		3.1	Administration
                                         by the Board.

 

The
Plan shall be administered by the Board in accordance with its terms and subject to Applicable Law. Subject to and consistent
with the terms of the Plan, in addition to any authority of the Board specified under any other terms of the Plan, the Board shall
have full and complete discretionary authority to:

 

		(a)	interpret
                                         the Plan and Grant Agreements;

 

		(b)	prescribe,
                                         amend and rescind such rules and regulations and make all determinations necessary or
                                         desirable for the administration and interpretation of the Plan and instruments of grant
                                         evidencing Grants;

 

		(c)	determine
                                         those Eligible Persons who may receive Grants as Participants, grant one or more Grants
                                         to such Participants and approve or authorize the applicable form and terms of the related
                                         Grant Agreements;

 

		(d)	determine
                                         the terms and conditions of Grants granted to any Participant, including, without limitation,
                                         as applicable (i) Grant Value and the number of Shares subject to a Grant, (ii) the Exercise
                                         Price for Shares subject to a Grant, (iii) the conditions to the Vesting of a Grant or
                                         any portion thereof, including, as applicable, the period for achievement of any applicable
                                         Performance Conditions as a condition to Vesting and conditions pertaining to compliance
                                         with Restrictive Covenants, and the conditions, if any, upon which Vesting of any Grant
                                         or any portion thereof will be waived or accelerated without any further action by the
                                         Board, (iv) the circumstances upon which a Grant or any portion thereof shall be
                                         forfeited or cancelled or expire, including in connection with the breach by a Participant
                                         of any Restrictive Covenant, (v) the consequences of a Termination with respect
                                         to a Grant, (vi) the manner of exercise or settlement of the Vested portion of a
                                         Grant, and (vii) whether, and the terms upon which, any Shares delivered upon exercise
                                         or settlement of a Grant must be held by a Participant for any specified period of time;

 

		(e)	determine
                                         whether, and the extent to which, any Performance Conditions or other conditions applicable
                                         to the Vesting of a Grant have been satisfied or, to the extent permitted by Code Section
                                         409A (to the extent applicable), shall be waived or modified;

 

		(f)	make
                                         such rules, regulations and determinations as it deems appropriate under the Plan in
                                         respect of any leave of absence or disability of any Participant. Without limiting the
                                         generality of the foregoing, the Board shall be entitled to determine:

 

(i)       whether
or not any such leave of absence shall constitute a Termination within the meaning of the Plan;

 

(ii)       the
impact, if any, of any such leave of absence on Grants issued under the Plan made to any Participant who takes such leave of absence
(including, without limitation, whether or not such leave of absence shall cause any Grants to expire and the impact upon the
time or times such Grants shall be exercisable); and

 

    11

     

    

 

provided
that, with respect to Options that are intended to be Incentive Stock Options, the treatment of any such leave of absence shall
comply with Code Section 422 and the regulations issued thereunder;

 

		(g)	amend
                                         the terms of any Grant Agreement or other documents evidencing Grants; and

 

		(h)	determine
                                         whether, and the extent to which, adjustments shall be made pursuant to Section 5 and
                                         the terms of such adjustments.

 

    12

     

    

 

		3.2	All
                                         determinations, interpretations, rules, regulations, or other acts of the Board respecting
                                         the Plan or any Grant shall be made in its sole discretion and shall be conclusively
                                         binding upon all persons.

 

		3.3	The
                                         Board may prescribe terms for Grant Agreements in respect of Eligible Persons who are
                                         subject to the laws of a jurisdiction other than Canada in connection with their participation
                                         in the Plan that are different than the terms of the Grant Agreements for Eligible Persons
                                         who are subject to the laws of Canada in connection with their participation in the Plan,
                                         and/or deviate from the terms of the Plan set out herein, for purposes of compliance
                                         with Applicable Law in such other jurisdiction or where, in the Board’s opinion,
                                         such terms or deviations are necessary or desirable to obtain more advantageous treatment
                                         for the Corporation, an Affiliate or the Eligible Person in respect of the Plan under
                                         the Applicable Law of the other jurisdiction.

 

Notwithstanding
the foregoing, the terms of any Grant Agreement authorized pursuant to this Section 3.3 shall be consistent with the Plan having
regard to the Applicable Law of the jurisdiction in which such Grant Agreement is applicable and in no event shall contravene
the Applicable Law of Canada.

 

		3.4	The
                                         Board may, in its discretion, subject to Applicable Law, delegate its powers, rights
                                         and duties under the Plan, in whole or in part, to a committee of the Board, or to a
                                         person or persons, as it may determine, from time to time, on terms and conditions as
                                         it may determine, except that the Board shall not, and shall not be permitted to delegate
                                         any such powers, rights or duties with respect to the grant, amendment, administration
                                         or settlement of any Grant to the extent delegation is not consistent with Applicable
                                         Law and any such purported delegation or action shall not be given effect, and provided
                                         that the composition of the committee of the Board, person or persons, as the case may
                                         be, shall comply with Applicable Law. In addition, provided it complies with the foregoing,
                                         the Board may appoint or engage a trustee, custodian or administrator to administer or
                                         implement the Plan or any aspect of it.

 

		3.5	In
                                         addition, the Board is authorized to take any action it determines in its sole discretion
                                         to be appropriate subject only to the express limitations contained in this Plan, and
                                         no authorization in any Plan section or other provision of this plan is intended or may
                                         be deemed to constitute a limitation on the authority of the Board.

 

		4.	SHARE
                                         RESERVE

 

		4.1	Subject
                                         to Section 4.4 and any adjustment pursuant to Section 5.1, the aggregate number of Shares
                                         reserved for issuance to Participants under the Plan, together with all other security
                                         based compensation arrangements of the Corporation, shall not exceed the number which
                                         represents ten percent (10%) of the issued and outstanding Shares from time to time;
                                         provided that in no event shall Shares reserved for issuance upon the settlement of Share
                                         Units exceed five percent (5%) of the issued and outstanding Shares from time to time.

 

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		4.2	The
                                         aggregate number of Shares reserved for issuance to any one Participant under the Plan,
                                         together with all other security based compensation arrangements of the Corporation,
                                         must not exceed five percent (5%) of the aggregate issued and outstanding Shares (on
                                         a non-diluted basis).

 

		4.3	The
                                         maximum number of Shares of the Corporation

 

		(a)	issued
                                         to Insiders within any one-year period, and

 

		(b)	issuable
                                         to Insiders, at any time,

 

under
the Plan, or when combined with all of the Corporation’s other security based compensation arrangements, shall not exceed
ten percent (10%) of the number of the aggregate issued and outstanding Shares.

 

		4.4	At
                                         any given time, the number of Options and Share Units granted to non-employee Directors
                                         under the Plan, in combination with all other equity awards granted to non-employee Directors
                                         under any other security based compensation arrangement, shall be limited to an annual
                                         equity award value (based on grant date fair value as determined by the Board) of C$150,000
                                         per non-employee Director, provided that the total value (based on grant date fair value
                                         as determined by the Board) of Options issuable to any one non-employee Director in any
                                         one year period shall not exceed C$100,000.

 

		4.5	For
                                         purposes of computing the total number of Shares available for grant under the Plan or
                                         any other security based compensation arrangement of the Corporation, Shares subject
                                         to any Grant (or any portion thereof) that are issued upon exercise or settlement, forfeited,
                                         surrendered, cancelled, unearned or otherwise terminated shall again be available for
                                         grant under the Plan.

 

		5.	Alteration
                                         of Capital And Change In Control

 

		5.1	Notwithstanding
                                         any other provision of the Plan, and subject to Applicable Law, in the event of any change
                                         in or impact to the Shares by reason of any dividend (other than dividends in the ordinary
                                         course), split, recapitalization, reclassification, amalgamation, arrangement, merger,
                                         consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete
                                         liquidation or other distribution of assets, issuance of rights or warrants to purchase
                                         securities, combination or exchange of Shares or distribution of rights to holders of
                                         Shares or any other relevant changes to or impact to the authorized or issued capital
                                         of the Corporation, if the Board shall determine that an equitable adjustment should
                                         be made, such adjustment shall, subject to Applicable Law, be made by the Board to (i)
                                         the number of Shares subject to the Plan; (ii) the securities into which the Shares are
                                         changed or are convertible or exchangeable; (iii) any Options then outstanding; (iv)
                                         the Exercise Price in respect of such Options; (v) the number of Share Units outstanding
                                         under the Plan; and/or (vi) other award terms, and any such adjustment shall be conclusive
                                         and binding for all purposes of the Plan; provided, however, that any such
                                         adjustment to the number specified in Section 9.7(f) of this Plan will be made only if
                                         and to the extent that such adjustment would not cause any Option intended to qualify
                                         as an Incentive Stock Option to fail to so qualify. Moreover, in the event of any such
                                         transaction or event or in the event of a Change in Control, the Board may provide in
                                         substitution for any or all outstanding Grants under this Plan such alternative consideration
                                         (including cash), if any, as it, in good faith, may determine to be equitable in the
                                         circumstances and shall require in connection therewith the surrender of all awards so
                                         replaced in a manner that complies with Code Section 409A (if applicable). In addition,
                                         for each Option with an Exercise Price greater than the consideration offered in connection
                                         with any such transaction or event or Change in Control, the Board may in its discretion
                                         elect to cancel such Option without any payment to the person holding such Option.

 

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		5.2	Nothing
                                         in the Plan shall require the Corporation to issue fractional Shares in satisfaction
                                         of its obligations under the Plan. Any fractional interest in a Share that would, except
                                         for the provisions of this Section 5.2, be deliverable upon the exercise of any Grant
                                         shall be cancelled and not deliverable by the Corporation.

 

		5.3	In
                                         the event of a Change in Control prior to the Vesting of a Grant, and subject to the
                                         terms of a Participant’s written employment agreement or contract for services
                                         with the Corporation or an Affiliate, notwithstanding the conditions as to vesting of
                                         Options and Share Units contained in any individual Grant Agreement, if at any time within
                                         one year from the date of a Change in Control: (i) a Participant’s relationship
                                         with the Corporation is terminated by the Corporation other than for Cause or (ii) a
                                         Participant resigns for Good Reason, all outstanding Options and Share Units, as applicable,
                                         held by such Participant shall become Vested as of the date of such Participant’s
                                         termination or resignation for Good Reason and the Corporation shall issue Shares to
                                         such Participants with respect to such Vested Options and Vested Share Units, as applicable,
                                         in accordance with the provisions herein; provided that in the event that any Share Units
                                         are subject to Performance Conditions, then the vesting of such Share Units shall accelerate
                                         only to the extent that such Performance Conditions have been satisfied and further provided
                                         that if a Performance Condition is, in the Board’s discretion, capable of being
                                         partially performed, then vesting shall be accelerated on a pro rata basis to reflect
                                         the degree to which the Performance Condition has been satisfied, as determined by the
                                         Board.

 

		6.	clawback

 

		6.1	Clawback.
                                         

 

It
is a condition of each Grant that if:

 

(i)       The
Participant fails to comply with any applicable Restrictive Covenant;

 

(ii)      the
Participant is terminated for Cause, or the Board reasonably determines after employment termination that the Participant’s
employment could have been terminated for Cause;

 

(iii)     the
Board reasonably determines that the Participant engaged in conduct that causes material financial or reputational harm to the
Corporation or its Affiliates, or engaged in gross negligence, willful misconduct or fraud in respect of the performance of the
Participant’s duties for the Corporation or an Affiliate of the Corporation; or

 

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(iv)     the
Corporation’s financial statements (the “Original Statements”) are required to be restated (other than
solely as a result of a change in accounting policy by the Corporation or under International Financial Reporting Standards applicable
to the Corporation) and such restated financial statements (the “Restated Statements”) disclose, in the opinion
of the Board acting reasonably, materially worse financial results than those contained in the Original Statements,

 

then
the Board may, in its sole discretion, to the full extent permitted by governing law and to the extent it determines that such
action is in the best interest of the Corporation, and in addition to any other rights that the Corporation or an Affiliate may
have at law or under any agreement, take any or all of the following actions, as applicable:

 

		(a)	reduce
                                         the number or value of, or cancel and terminate, any one or more unvested Grants of Options
                                         or Share Units on or prior to the applicable maturity or Vesting Dates, or cancel or
                                         terminate any outstanding Grants which have Vested in the twelve (12) months prior to
                                         (x) the date on which the Participant fails to comply with a Restrictive Covenant, (y)
                                         the date on which the Participant’s employment is terminated for Cause or the Board
                                         makes a determination under paragraph (ii) or (iii) above, or (z) the date on which the
                                         Board determines that the Corporation’s Original Statements are required to be
                                         restated, in the event paragraph (iv) above applies (each such date provided for in clause
                                         (x), (y) and (z) of this paragraph (a) being a “Relevant Equity Recoupment Date”);
                                         and/or

 

		(b)	require
                                         payment to the Corporation of the value of any Shares of the Corporation acquired by
                                         the Participant pursuant to a Grant in the twelve (12) months prior to a Relevant Equity
                                         Recoupment Date (less any amount paid by the Participant to acquire such Shares and less
                                         the amount of tax withheld pursuant to the Income Tax Act (Canada) or other relevant
                                         taxing authority in respect of such Shares).

 

		6.2	Other
                                         Recoupment. 

 

Notwithstanding
anything in this Plan to the contrary, any Grant Agreement may also provide for the cancellation or forfeiture of a Grant or the
forfeiture and repayment to the Corporation of any gain related to a Grant, or other provisions intended to have a similar effect,
upon such terms and conditions as may be required by the Board or under Section 10D of the Securities Exchange Act of 1934, as
amended, and any applicable rules or regulations promulgated by the United States Securities and Exchange Commission or any Stock
Exchange.

 

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		7.	MISCELLANEOUS

 

		7.1	Compliance
                                         with Laws and Policies. 

 

The
Corporation’s obligation to make any payments or deliver (or cause to be delivered) any Shares hereunder is subject to compliance
with Applicable Law. Each Participant shall acknowledge and agree (and shall be conclusively deemed to have so acknowledged and
agreed by participating in the Plan) that the Participant will, at all times, act in strict compliance with Applicable Law and
all other laws and any policies of the Corporation applicable to the Participant in connection with the Plan including, without
limitation, furnishing to the Corporation all information and undertakings as may be required to permit compliance with Applicable
Law.

 

		7.2	Withholdings.

 

So
as to ensure that the Corporation or an Affiliate, as applicable, will be able to comply with the applicable obligations under
any federal, provincial, state or local law relating to the withholding of tax or other required deductions, the Corporation or
the Affiliate shall withhold or cause to be withheld from any amount payable to a Participant, either under this Plan, or otherwise,
such amount as may be necessary to permit the Corporation or the Affiliate, as applicable, to so comply. Subject to Applicable
Law, the Corporation and any Affiliate may also satisfy any liability for any such withholding obligations, on such terms and
conditions as the Board may determine in its sole discretion, by (a) requiring such Participant to sell any Shares and retaining
any amount payable which would otherwise be provided or paid to such Participant in connection with any such sale, or (b) requiring,
as a condition to the delivery of Shares hereunder, that such Participant make such arrangements as the Board may require so that
the Corporation and its Affiliates can satisfy such withholding obligations, including requiring such Participant to remit an
amount to the Corporation or an Affiliate in advance, or reimburse the Corporation or any Affiliate for, any such withholding
obligations.

 

		7.3	No
                                         Right to Continued Employment. 

 

Nothing
in the Plan or in any Grant Agreement entered into pursuant hereto shall confer upon any Participant the right to continue in
the employ or service of the Corporation or any Affiliate, to be entitled to any remuneration or benefits not set forth in the
Plan or a Grant Agreement or to interfere with or limit in any way the right of the Corporation or any Affiliate to terminate
Participant’s employment or service arrangement with the Corporation or any Affiliate.

 

		7.4	No
                                         Additional Rights. 

 

Neither
the designation of an individual as a Participant nor the Grant of any Options or Share Units to any Participant entitles any
person to the Grant, or any additional Grant, as the case may be, of any Options or Share Units. For greater certainty, the Board’s
decision to approve a Grant in any period shall not require the Board to approve a Grant to any Participant in any other period;
nor shall the Board’s decision with respect to the size or terms and conditions of a Grant in any period require it to approve
a Grant of the same or similar size or with the same or similar terms and conditions to any Participant in any other period. The
Board shall not be precluded from approving a Grant to any Participant solely because such Participant may have previously received
a Grant under this Plan or any other similar compensation arrangement of the Corporation or an Affiliate. No Eligible Person has
any claim or right to receive a Grant except as may be provided in a written employment or services agreement between an Eligible
Person and the Corporation or an Affiliate.

 

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		7.5	Amendment,
                                         Termination.

 

Subject
to Applicable Law, the Plan and any Grant made pursuant to the Plan may be amended, modified or terminated by the Board without
approval of shareholders, provided that no amendment to the Plan or Grants made pursuant to the Plan may be made without the consent
of a Participant if it adversely alters or impairs the rights of the Participant in respect of any Grant previously granted to
such Participant under the Plan, except that Participant consent shall not be required where the amendment is required for purposes
of compliance with Applicable Law. For greater certainty, the Plan may not be amended without shareholder approval to do any of
the following:

 

		(a)	increase
                                         the maximum number of Shares issuable pursuant to the Plan and as set out in Section
                                         4.1 (it being understood that this Section 7.5(a) will not be construed to prohibit the
                                         adjustments provided for in Section 5 of this Plan);

 

		(b)	reduce
                                         the Exercise Price of an outstanding Option, including a cancellation of a Grant of an
                                         Option and re-grant within three (3) months of an Option in conjunction therewith constituting
                                         a reduction of the Exercise Price of the Option or substitution of an Option with cash
                                         or other awards the terms of which are more favorable to the Participant (it being understood
                                         that this Section 7.5(b) will not be construed to prohibit the adjustments provided for
                                         in Section 5 of this Plan);

 

		(c)	extend
                                         the maximum term of any Grant made under the Plan;

 

		(d)	amend
                                         the assignment provisions contained in Section 7.11 or Section 11;

 

		(e)	expand
                                         the categories of individuals contained in the definition of “Eligible Person”
                                         who are eligible to participate in the Plan;

 

		(f)	amend
                                         the number of Options or Share Units which may be granted to non-employee Directors as
                                         set out in Section 4.4;

 

		(g)	increase
                                         the number of Shares that may be issued or issuable to Insiders above the restriction
                                         or deleting the restriction on the number of Shares that may be issued or issuable to
                                         Insiders contained in Section 4.3;

 

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		(h)	include
                                         other types of equity compensation involving the issuance of Shares under the Plan;

 

		(i)	cause
                                         Incentive Stock Options to fail to meet the requirements of Code Section 422; or

 

		(j)	amend
                                         this Section 7.5 to amend or delete any of (a) through (i) above or grant additional
                                         powers to the Board to amend the Plan or entitlements without shareholder approval.

 

For
greater certainty and without limiting the foregoing, shareholder approval shall not be required for the following amendments
and the Board may make the following changes without shareholder approval, subject to any regulatory approvals including, where
required, the approval of any Stock Exchange:

 

		(k)	amendments
                                         of a “housekeeping” nature;

 

		(l)	a
                                         change to the Vesting provisions of any Grants;

 

		(m)	a
                                         change to the termination provisions of any Grant that does not entail an extension beyond
                                         the original term of the Grant; or

 

		(n)	amendments
                                         to the provisions relating to a Change in Control.

 

		7.6	Currency.
                                          Except where the context otherwise requires, all references
                                         in the Plan to currency refer to lawful Canadian currency. Any amounts required to be
                                         determined under this Plan that are denominated in a currency other than Canadian dollars
                                         shall be converted to Canadian dollars at the applicable Bank of Canada daily rate of
                                         exchange on the date as of which the amount is required to be determined.

 

		7.7	Administration
                                         Costs. 

 

The
Corporation will be responsible for all costs relating to the administration of the Plan.

 

		7.8	Designation
                                         of Beneficiary.

 

Subject
to the requirements of Applicable Law, a Participant may designate a Beneficiary, in writing, to receive any benefits that are
provided under the Plan upon the death of such Participant. The Participant may, subject to Applicable Law, change such designation
from time to time. Such designation or change shall be in such form as may be prescribed by the Board from time to time. A Beneficiary
designation under this Section 7.8 and any subsequent changes thereto shall be filed with the chief legal officer of the Corporation.

 

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		7.9	Governing
                                         Law.

 

The
Plan and any Grants pursuant to the Plan shall be governed by and construed in accordance with the laws of the Province of British
Columbia and the federal laws of Canada applicable therein, and with respect to Participants who are US Taxpayers, with the Code
and applicable federal laws of the US. The Board may provide that any dispute to any Grant shall be presented and determined in
such forum as the Board may specify, including through binding arbitration. Any reference in the Plan, in any Grant Agreement
issued pursuant to the Plan or in any other agreement or document relating to the Plan to a provision of law or rule or regulation
shall be deemed to include any successor law, rule or regulation of similar effect or applicability. To the extent applicable,
with respect to Participants who are US Taxpayers, this Plan shall be interpreted in accordance with the requirements of Code
Sections 409A and the regulations, notices, and other guidance of general applicability issued thereunder. To the extent that
any provision of this Plan would prevent any Option that was intended to qualify as an Incentive Stock Option from qualifying
as such, that provision will be null and void with respect to such Option, but will remain in effect for other Options and there
will be no further effect on any provision of this Plan.

 

		7.10	Assignment.

 

The
Plan shall inure to the benefit of and be binding upon the Corporation, its successors and assigns.

 

		7.11	Transferability.

 

		7.11.1	Unless
                                         otherwise provided in the Plan or in the applicable Grant Agreement in accordance with
                                         Section 7.11.2, no Grant, and no rights or interests therein, shall or may be assigned,
                                         transferred, sold, exchanged, encumbered, pledged or otherwise hypothecated or disposed
                                         of by a Participant other than by testamentary disposition by the Participant or the
                                         laws of intestate succession. No such interest shall be subject to execution, attachment
                                         or similar legal process including without limitation seizure for the payment of the
                                         Participant’s debts, judgments, alimony or separate maintenance. In no event will
                                         any Grant under the Plan be transferred for value.

 

		7.11.2	Notwithstanding
                                         the foregoing, with respect to Participants who are not US Taxpayers, the Board may provide
                                         in the applicable Grant Agreement that a Grant is transferable or assignable (a) in the
                                         case of a transfer without the payment of any consideration, to the Participant’s
                                         spouse, former spouse, children, stepchildren, grandchildren, parent, stepparent, grandparent,
                                         sibling, persons having one of the foregoing types of relationship with a Participant
                                         due to adoption and any entity in which these persons (or the Participant) own more than
                                         fifty percent (50%) of the voting interests and (b) to an entity in which more than fifty
                                         percent (50%) voting interests are owned by these persons (or the Participant) in exchange
                                         for an interest in that entity. Following any such transfer or assignment, the Grant
                                         shall remain subject to substantially the same terms applicable to the Grant while held
                                         by the Participant to whom it was granted, as modified as the Board shall determine appropriate,
                                         and, as a condition to such transfer, the transferee shall execute an agreement agreeing
                                         to be bound by such terms. Any purported assignment or transfer that does not qualify
                                         under this Section 7.11.2 shall be void and unenforceable against the Corporation.

 

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		7.12	Substitute
                                         Awards

 

Grants
may be made under this Plan in substitution for or in conversion of, or in connection with an assumption of, stock options, restricted
share units or performance share units held by awardees of an entity engaging in a corporate acquisition or merger transaction
with the Corporation or any Subsidiary. Any conversion, substitution or assumption will be effective as of the close of the merger
or acquisition, and, to the extent applicable, will be conducted in a manner that complies with Code Section 409A. The Grants
so made may reflect the original terms of the awards being assumed or substituted or converted for and need not comply with other
specific terms of this Plan, and may account for Shares substituted for the securities covered by the original awards and the
number of shares subject to the original awards, as well as any exercise or purchase prices applicable to the original awards,
adjusted to account for differences in stock prices in connection with the transaction.

 

		8.	EFFECTIVE
                                         DATE AND TERM

 

		8.1	The
                                         Plan was approved by the Board on September 29, 2017, but will be effective as
                                         of _______________, 2017 (the “Effective
                                         Date”), the date it was approved by the Corporation’s
                                         shareholders. This Plan will remain in effect, unless sooner terminated as provided herein,
                                         until the tenth anniversary of the Effective Date, at which time it will terminate. After
                                         this Plan is terminated, no Grants may be granted hereunder but Grants previously granted
                                         will remain outstanding in accordance with their applicable terms and conditions and
                                         this Plan’s terms and conditions.

 

PART
II – OPTIONS

 

		9.	Options

 

		9.1	The
                                         Corporation may, from time to time, make one or more Grants of Options to Eligible Persons
                                         on such terms and conditions, consistent with the Plan, as the Board shall determine.
                                         In granting such Options, subject to the provisions of the Plan, the Corporation shall
                                         specify,

 

		(a)	the
                                         maximum number of Shares which the Participant may purchase under the Options;

 

		(b)	the
                                         Exercise Price at which the Participant may purchase his or her Shares under the Options;
                                         and

 

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		(c)	the
                                         term of the Options, to a maximum of ten (10) years from the Grant Date of the Options,
                                         the Vesting period or periods within this period during which the Options or a portion
                                         thereof may be exercised by a Participant and any other Vesting conditions (including
                                         Performance Conditions).

 

		9.2	The
                                         Exercise Price for each Share subject to an Option shall be fixed by the Board but under
                                         no circumstances (except with respect to Grants under Section 7.12 of this Plan) shall
                                         any Exercise Price be less than one hundred percent (100%) of the Market Price on the
                                         Grant Date of such Option.

 

		9.3	Subject
                                         to the provisions of the Plan and, upon prior approval of the Board, once an Option has
                                         Vested and become exercisable a Participant may elect, in lieu of exercising such Option,
                                         to surrender such Option in exchange for the issuance of Shares equal to the number determined
                                         by dividing (a) the difference between the Market Price (calculated as at the date of
                                         settlement) and the Exercise Price of such Option by (b) the Market Price (calculated
                                         as at the date of settlement). An Option may be surrendered and disposed of pursuant
                                         to this Section 9.3 from time to time by delivery to the Board at the head office of
                                         the Corporation or such other place as may be specified by the Board, of (a) a written
                                         notice specifying that net settlement will be effectuated for such Option and the number
                                         of Options to be exercised and (b) the payment of an amount for any tax withholding or
                                         remittance obligations of the Participant or the Corporation arising under applicable
                                         law (or by entering into some other arrangement acceptable to the Board). The Corporation
                                         will not be required, upon the net settlement of any Options pursuant to this Section
                                         9.3, to issue fractions of Shares or to distribute certificates which evidence fractional
                                         Shares. In the event the number of Shares to be issued upon the net settlement of an
                                         Option is a fraction, the Participant will receive the next lowest whole number of Shares
                                         and will not receive any other form of compensation (cash or otherwise) for the fractional
                                         interest.

 

		9.4	Unless
                                         otherwise designated by the Board in the applicable Grant Agreement and subject to Section
                                         9.6, any Options included in a Grant shall expire on the tenth anniversary of the Grant
                                         Date (unless exercised or terminated earlier in accordance with the terms of the Plan
                                         or the Grant Agreement). 

 

		9.5	Subject
                                         to the provisions of the Plan and the terms governing the granting of the Option, and
                                         subject to payment or other satisfaction of all related withholding obligations in accordance
                                         with Section 7.2, Vested Options or a portion thereof may be exercised from time to time
                                         by delivery to the Corporation at its registered office of a notice in writing signed
                                         by the Participant or the Participant’s legal personal representative, as the case
                                         may be, and addressed to the Corporation. This notice shall state the intention of the
                                         Participant or the Participant’s legal personal representative to exercise the
                                         said Options and the number of Shares in respect of which the Options are then being
                                         exercised and must be accompanied by payment in full of the Exercise Price under the
                                         Options which are the subject of the exercise.

 

		9.6	If
                                         the normal expiry date of any Option, other than an Incentive Stock Option, falls within
                                         any Blackout Period or within ten (10) business days (being a day other than a Saturday,
                                         Sunday or other than a day when banks in Vancouver, British Columbia are not generally
                                         open for business) following the end of any Blackout Period, then the expiry date of
                                         such Option shall, without any further action, be extended to the date that is ten (10)
                                         business days following the end of such Blackout Period. The foregoing extension applies
                                         to all Options whatever the Grant Date (other than Incentive Stock Options and other
                                         than an extension beyond the original term of the Options in the case of Options held
                                         by a US Taxpayer) and shall not be considered an extension of the term of the Options
                                         as referred to in Section 7.5.

 

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		9.7	Notwithstanding
                                         anything in this Plan to the contrary, for Options that are intended to qualify as Incentive
                                         Stock Options and granted to a US Taxpayer, the following additional provisions will
                                         apply:

 

		(a)	Except
                                         as permitted by Code Section 424(a), or any successor provision, the Exercise Price per
                                         Share shall not be less than one hundred percent (100%) of the per Share Market Price
                                         on the Grant Date of the Incentive Stock Option; provided, however, that if a Participant
                                         owns shares possessing more than ten percent (10%) of the total combined voting power
                                         of all classes of shares of the Corporation or of its Parent or any Subsidiary, the Exercise
                                         Price per Share of an Incentive Stock Option granted to such Participant shall not be
                                         less than one hundred ten percent (110%) of the Market Price on the Grant Date of the
                                         Incentive Stock Option.

 

		(b)	Except
                                         as permitted by Code Section 424(a), in no event shall any Incentive Stock Option be
                                         exercisable during a term of more than ten (10) years after the Grant Date of the Incentive
                                         Stock Option; provided, however, that if a Participant owns shares possessing more than
                                         ten percent (10%) of the total combined voting power of all classes of shares of the
                                         Corporation or of its Parent or any Subsidiary, the Incentive Stock Option granted to
                                         such Participant shall be exercisable during a term of not more than five (5) years after
                                         the Grant Date.

 

		(c)	The
                                         Corporation or its Affiliate shall withhold and deduct from any future payments to the
                                         Participant all legally required amounts necessary to satisfy any and all withholding
                                         and employment-related taxes attributable to the Participant’s exercise of an Incentive
                                         Stock Option or a “disqualifying disposition” of Shares acquired through
                                         the exercise of an Incentive Stock Option as defined in Code Section 421(b).

 

		(d)	Notwithstanding
                                         any other provision of the Plan, the aggregate fair market value (determined as of the
                                         Grant Date of the Incentive Stock Option) of the Shares with respect to which Incentive
                                         Stock Options are exercisable for the first time by a Participant during any calendar
                                         year under the Plan and any other “incentive stock option” plans of the Corporation
                                         or any Affiliate, shall not exceed US$100,000 (or such other amount as may be prescribed
                                         by the Code from time to time); provided, however, that if the exercisability or Vesting
                                         of an Incentive Stock Option is accelerated as permitted under the provisions of the
                                         Plan and such acceleration would result in a violation of the limit imposed by this Section
                                         9.7(d), such acceleration shall be of full force and effect but the number of Shares
                                         that exceed such limit shall be treated as having been granted pursuant to an Option
                                         that is not an Incentive Stock Option; and provided, further, that the limits imposed
                                         by this Section 9.7(d) shall be applied to all outstanding Incentive Stock Options
                                         under the Plan and any other “incentive stock option” plans of the Corporation
                                         or any Affiliate in chronological order according to the dates of grant.

 

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		(e)	The
                                         Grant Agreement in respect of any Incentive Stock Option shall contain such other limitations
                                         and restrictions upon the exercise of the Incentive Stock Option as the Board shall deem
                                         necessary to ensure that such Incentive Stock Option will be considered an “incentive
                                         stock option” as defined in Code Section 422 or to conform to any change therein.

 

		(f)	Notwithstanding
                                         anything to the contrary contained in this Plan, and subject to adjustment as provided
                                         in Section 5 of this Plan, the aggregate number of Shares actually issued or transferred
                                         by the Corporation upon the exercise of Incentive Stock Options will not exceed 20,451,895
                                         Shares.

 

		9.8	Options
                                         granted under this Plan may not provide for any dividends or dividend equivalents thereon.

 

		10.	Termination
                                         of Employment and Death of a Participant – Options

 

		10.1	Outstanding
                                         Options held by a Participant (or the executors or administrators of such Participant’s
                                         estate, any person or persons who acquire the right to exercise Options directly from
                                         the Participant by bequest or inheritance or any other permitted transferee of the Participant
                                         under Section 11) as of the Participant’s date of Termination shall be subject
                                         to the provisions of this Section 10, as applicable; except that, in all events,
                                         the period for exercise of Options shall end no later than the last day of the maximum
                                         term thereof established under Sections 9.1(c), 9.6, 9.7(b) or 10.5, as the case may
                                         be.

 

		10.2	Except
                                         as otherwise provided in the applicable Grant Agreement, and subject to Section 10.1
                                         and Section 10.6, in the case of a Participant’s Termination due to death, or in
                                         the case of the Participant’s Disability (i) those of the Participant’s outstanding
                                         Options that have not become Vested prior to such date of death or Disability Date shall
                                         be forfeited and cancelled as of such date and (ii) those of the Participant’s
                                         outstanding Options that have become Vested prior to the Participant’s date of
                                         death or Disability Date shall continue to be exercisable during the twelve (12) month
                                         period following the such date of death or Disability Date, as the case may be.

 

		10.3	Except
                                         as otherwise provided in the applicable Grant Agreement, and subject to Section 10.1
                                         and Section 10.6, in the case of a Participant’s Termination due to the termination of
                                         the Participant’s employment or termination of the Participant’s contract
                                         for services by the Corporation or an Affiliate without Cause, (i) those of the Participant’s
                                         outstanding Options that have not become Vested prior to the Participant’s Termination
                                         shall be forfeited and cancelled as of such date and (ii) those of the Participant’s
                                         outstanding Options that have become Vested prior to the Participant’s Termination
                                         shall continue to be exercisable during the one hundred and twenty (120) day period following
                                         the Participant’s Date of Termination.

 

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		10.4	Except
                                         as otherwise provided in the applicable Grant Agreement, and subject to Section 10.6,
                                         in the case of a Participant’s Termination due to the Participant’s resignation
                                         (including the voluntary withdrawal of services by a Participant who is not an employee
                                         under Applicable Law), (i) those of the Participant’s outstanding Options that
                                         have not become Vested prior to the date on which the Participant provides notice to
                                         the Corporation of his or her resignation shall be forfeited and cancelled as of such
                                         date, and (ii) those of the Participant’s outstanding Options that have become
                                         Vested prior to the date on which the Participant provides notice to the Corporation
                                         of his or her resignation shall continue to be exercisable during the ninety (90) day
                                         period following the Participant’s date of Termination.

 

		10.5	Notwithstanding
                                         the foregoing, with respect to any Option that is intended to be an Incentive Stock Option,
                                         such Option shall not be exercisable for a period that is longer than (i) three (3) months
                                         from the date of the Participant’s Termination for any reason other than death
                                         or disability (as defined in Code Section 22(e)), or (ii) twelve (12) months from the
                                         Participant’s Termination due to disability (as defined in Code Section 22(e))
                                         or death.

 

		10.6	In
                                         addition to the Board’s rights under Section 3.1, the Board may, subject to Section
                                         10.5, at the time of a Participant’s Termination or Disability Date, extend the
                                         period for exercise of some or all of the Participant’s Options, but not beyond
                                         the original expiry date, and/or allow for the continued Vesting of some or all of the
                                         Participant’s Options during the period for exercise or a portion of it. Options
                                         that are not exercised prior to the expiration of the exercise period, including any
                                         extended exercise period authorized pursuant to this Section 10.6, following a Participant’s
                                         date of Termination or Disability Date, as the case may be, shall automatically expire
                                         on the last day of such period.

 

		10.7	Notwithstanding
                                         any other provision hereof or in any Grant Agreement, in the case of a Participant’s
                                         termination of employment or termination of the Participant’s contract for services
                                         for Cause, any and all then outstanding Options granted to the Participant, whether or
                                         not then exercisable, shall be immediately forfeited and cancelled, without any consideration
                                         therefore, as of the commencement of the day that notice of such termination is given.

 

		10.8	For
                                         greater certainty, a Participant shall have no right to receive Shares or a cash payment,
                                         as compensation, damages or otherwise, with respect to any Options that do not become
                                         Vested or that are not exercised before the date on which the Options expire.

 

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		11.	Transferability
                                         of OPtions – us taxpayer

 

		11.1	Notwithstanding
                                         Section 7.11, with respect to Participants who are US Taxpayers, no Incentive Stock Option
                                         shall be transferable by the Participant, in whole or in part, other than by will or
                                         by the laws of descent and distribution. If the Participant shall attempt any transfer
                                         of any Incentive Stock Option, such transfer shall be void and the Incentive Stock Option
                                         shall terminate.

 

		11.2	Further,
                                         with respect to Participants who are US Taxpayers, Options that are not Incentive Stock
                                         Options shall be transferable, in whole or in part, by the Participant by will or by
                                         the laws of descent and distribution. In addition, the Board may, in its sole discretion,
                                         permit the Participant to transfer any or all such Options to any “family member”
                                         in accordance with Form S-8; provided, however, that the Participant cannot receive any
                                         consideration for the transfer and such transferred Stock Option shall continue to be
                                         subject to the same terms and conditions as were applicable to such Option immediately
                                         prior to its transfer. 

 

PART
III – SHARE UNITS

 

		12.	DEFINITIONS

 

		12.1	“Grant
                                         Value” means the dollar amount allocated to an
                                         Eligible Person in respect of a Grant of Share Units as contemplated by Section 3.

 

		12.2	“Share
                                         Unit Account” has the meaning set out in Section
                                         14.1.

 

		12.3	“Valuation
                                         Date” means the date as of which the Market Price
                                         is determined for purposes of calculating the number of Share Units included in a Grant,
                                         which unless otherwise determined by the Board shall be the Grant Date.

 

		12.4	“Vesting
                                         Period” means, with respect to a Grant of Share
                                         Units, the period specified by the Board, commencing on the Grant Date and ending on
                                         the last Vesting Date for such Share Units.

 

		13.	Eligibility
                                         and Grant Determination.

 

		13.1	The
                                         Board may from time to time make one or more Grants of Share Units to Eligible Persons
                                         on such terms and conditions, consistent with the Plan, as the Board shall determine,
                                         provided that, in determining the Eligible Persons to whom Grants are to be made and
                                         the Grant Value for each Grant, the Board shall take into account the terms of any written
                                         employment agreement or contract for services between an Eligible Person and the Corporation
                                         or any Affiliate and may take into account such other factors as it shall determine in
                                         its sole and absolute discretion.

 

		13.2	The
                                         Board shall determine the Grant Value and the Valuation Date (if not the Grant Date)
                                         for each Grant under this Part III. Unless otherwise determined by the Board, the number
                                         of Share Units to be covered by each such Grant shall be determined by dividing the Grant
                                         Value for such Grant by the Market Price of a Share as at the Valuation Date for such
                                         Grant, rounded up to the next whole number.

 

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		13.3	Each
                                         Grant Agreement issued in respect of Share Units shall set forth, at a minimum, the type
                                         of Share Units and Grant Date of the Grant evidenced thereby, the number of RSUs or PSUs
                                         subject to such Grant (which number, in the case of PSUs, may be subject to adjustment
                                         to reflect changes in compensation, job duties or other factors), the applicable Vesting
                                         conditions, the applicable Vesting Period(s) and the treatment of the Grant upon Termination
                                         and may specify such other terms and conditions consistent with the terms of the Plan
                                         as the Board shall determine or as shall be required under any other provision of the
                                         Plan. The Board may include in a Grant Agreement under this Part III terms or conditions
                                         pertaining to confidentiality of information relating to the Corporation’s operations
                                         or businesses which must be complied with by a Participant including as a condition of
                                         the grant or Vesting of Share Units. Nothing in this Plan prevents a Participant from
                                         providing, without prior notice to the Corporation, information to governmental authorities
                                         regarding possible legal violations or otherwise testifying or participating in any investigation
                                         or proceeding by any governmental authorities regarding possible legal violations.

 

		14.	ACCOUNTS
                                         AND DIVIDEND EQUIVALENTS

 

		14.1	Share
                                         Unit Account.

 

An
account, called a “Share Unit Account”, shall be maintained by the Corporation, or an Affiliate, as specified
by the Board, for each Participant who has received a Grant of Share Units and will be credited with such Grants of Share Units
as are received by a Participant from time to time pursuant to Section 13 and any dividend equivalent Share Units pursuant to
Section 14.2. Share Units that fail to Vest to a Participant and are forfeited pursuant to Section 15, or that are paid out
to the Participant or his or her Beneficiary, shall be cancelled and shall cease to be recorded in the Participant’s Share
Unit Account as of the date on which such Share Units are forfeited or cancelled under the Plan or are paid out, as the case may
be. For greater certainty, where a Participant is granted both RSUs and PSUs, such RSUs and PSUs shall be recorded separately
in the Participant’s Share Unit Account.

 

		14.2	Dividend
                                         Equivalent Share Units.

 

Except
as otherwise provided in the Grant Agreement relating to a Grant of RSUs or PSUs, if and when cash dividends (other than extraordinary
or special dividends) are paid with respect to Shares to shareholders of record as of a record date occurring during the period
from the Grant Date under the Grant Agreement to the date of settlement of the RSUs or PSUs granted thereunder, a number of dividend
equivalent RSUs or PSUs, as the case may be, shall be credited to the Share Unit Account of the Participant who is a party to
such Grant Agreement. The number of such additional RSUs or PSUs will be calculated by dividing the aggregate dividends or distributions
that would have been paid to such Participant if the RSUs or PSUs in the Participant’s Share Unit Account had been Shares
by the Market Price on the date on which the dividends or distributions were paid on the Shares. The additional RSUs or PSUs granted
to a Participant will be subject to the same terms and conditions, including Vesting and settlement terms, as the corresponding
RSUs or PSUs, as the case may be.

 

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		15.	VESTING
                                         AND SETTLEMENT OF SHARE UNITS

 

		15.1	Continued
                                         Employment.

 

Subject
to this Section 15 and the applicable Grant Agreement, Share Units subject to a Grant and dividend equivalent Share Units credited
to the Participant’s Share Unit Account in respect of such Share Units shall Vest in such proportion(s) and on such Vesting
Date(s) as may be specified in the Grant Agreement governing such Grant provided that the Participant is Employed or acting as
a Director on the relevant Vesting Date.

 

		15.2	Settlement.

 

A
Participant’s RSUs and PSUs, adjusted in accordance with the applicable multiplier, if any, as set out in the Grant Agreement,
and rounded down to the nearest whole number of RSUs or PSUs, as the case may be, shall be settled, by a distribution as provided
below to the Participant or his or her Beneficiary, upon, or as soon as reasonably practicable following the Vesting thereof in
accordance with Section 15.1 or 15.6, as the case may be, subject to the terms of the applicable Grant Agreement. In all events
RSUs and PSUs will be settled on or before the earlier of the ninetieth (90th) day following the Vesting Date and the
date that is two and one half (21⁄2) months after the end of the year in which Vesting occurred, except as otherwise provided
in an applicable Grant Agreement in compliance with Code Section 409A. Settlement shall be made by the issuance of one Share for
each RSU or PSU then being settled, as specified in the applicable Grant Agreement, and subject to payment or other satisfaction
of all related withholding obligations in accordance with Section 7.2.

 

		15.3	Postponed
                                         Settlement.

 

Except
as otherwise determined by the Board in compliance with Code Section 409A, if a Participant’s Share Units would, in the
absence of this Section 15.3 be settled within a Blackout Period applicable to such Participant, such settlement shall be postponed
until the Trading Day following the date on which such Blackout Period ends (or as soon as practicable thereafter).

 

		15.4	Failure
                                         to Vest. 

 

For
greater certainty, except as otherwise provided in the applicable Grant Agreement, a Participant shall have no right to receive
Shares or a cash payment, as compensation, damages or otherwise, with respect to any RSUs or PSUs that do not become Vested.

 

		15.5	Resignation.
                                         

 

Except
as otherwise provided in the applicable Grant Agreement and Section 15.7, in the event a Participant’s employment is Terminated
as a result of the Participant`s resignation, no Share Units that have not Vested prior to the date on which the Participant submits
his or her resignation, including dividend equivalent Share Units in respect of such Share Units, shall Vest and all such Share
Units shall be forfeited immediately.

 

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		15.6	Termination
                                         of Employment without Cause; Death or Disability.

 

Except
as otherwise provided in the applicable Grant Agreement, in the case of a Participant`s Termination without Cause or due to death
or Disability of a Participant, all Share Units granted to the Participant that have Vested as at the date of Termination shall
be paid to the Participant or Participant’s estate, as applicable, in accordance with the settlement provisions herein.
Any Share Units that have not Vested as at the date of Termination will be immediately cancelled and forfeited to the Company,
provided that if any unvested Share Units are subject to Performance Conditions, then if a Performance Condition is, in the Board’s
discretion, capable of being partially performed, such unvested Share Units shall become Vested Share Units as at the date of
Termination on a pro rata basis to reflect the degree to which the vesting condition has been satisfied, as determined by the
Board (and in all cases except as otherwise provided in the applicable Grant Agreement).

 

		15.7	Extension
                                         of Vesting.

 

The
Board may, at the time of Termination or a Disability Date, extend the period for Vesting of Share Units, but not beyond the original
end of the applicable Vesting Period, or accelerate the Vesting of Share Units. With respect to U.S. Taxpayers, any such modification
shall be made in compliance with Code Section 409A.

 

		15.8	Termination
                                         of Employment for Cause. 

 

In
the event a Participant’s employment is Terminated for Cause by the Corporation, no Share Units that have not Vested prior
to the date of the Participant’s Termination for Cause, including dividend equivalent Share Units in respect of such Share
Units, shall Vest and all such Share Units shall be forfeited immediately.

 

		16.	SHAREHOLDER
                                         RIGHTS

 

		16.1	No
                                         Rights to Shares. 

 

Share
Units are not Shares and a Grant of Share Units will not entitle a Participant to any shareholder rights, including, without limitation,
voting rights, dividend entitlement (except as provided in Section 14.2) or rights on liquidation until the allotment and issuance
to the Participant of a certificate or certificates in the name of the Participant or a statement of account representing the
Shares to which such Share Units relate.

 

    29

     

    

 

Exhibit
“A”

 

to

 

NioCorp
Developments Ltd. Long Term Incentive Plan

 

Special
Provisions Applicable to US Taxpayers

 

This
Exhibit sets forth special provisions of the NioCorp Developments Ltd. Long Term Incentive Plan (the “Plan”) that
apply to Participants who are US Taxpayers. This Exhibit shall apply to such Participants notwithstanding any other provisions
of the Plan. Terms defined elsewhere in the Plan and used herein shall have the meanings set forth in the Plan, as may be amended
from time to time.

 

Definitions

 

“Eligible
Person” means, solely with respect to Options, a Director or an individual with respect to which the Corporation would
be an eligible issuer of “service recipient stock” for purposes of Section 409A of the Code who (i) meets the Form
S-8 definition of “employee” and (ii) by the nature of his or her position or job is, in the opinion of the Board,
in a position to contribute to the success of the Corporation; provided, however, that only persons who meet the definition of
“employees” under Code Section 3401(c) shall be eligible to receive Incentive Stock Options.

 

“Good
Reason” means, except as otherwise provided in applicable Grant Agreement, the occurrence of any one or more of the
following without a Participant’s written consent:

 

(i)       a
material diminution in the Participant’s duties, responsibilities, or authority in effect immediately prior to a Change
in Control;

 

(ii)      a
material diminution in the aggregate value of base salary and bonus opportunity provided to the Participant for services provided
to the Corporation or an Affiliate;

 

(iii)     the
Corporation or an Affiliate relocating the Participant’s primary office to any place other than the location at which the
Participant reported for work on a regular basis immediately prior to a Change in Control or a place within 50 miles of that location;
or

 

(iv)     Any
other action or inaction by the Corporation constituting a material breach of an effective employment arrangement or agreement
with the Participant.

 

A
Participant must notify the Corporation of the Participant’s intention to invoke Termination for Good Reason within 90 days
after the occurrence of such event and provide the Corporation 30 days’ opportunity for cure, and the Participant must actually
terminate the Participant’s employment with the Corporation prior to the 365th day following such occurrence or such event
shall not constitute Good Reason.

 

    30

     

    

 

“Market
Price” means, solely with respect to the term “Exercise Price”, (a) if the Shares are listed on only one
Stock Exchange, the closing price per Share on such Stock Exchange on the Trading Day immediately preceding the Grant Date, or,
if there are no sales on such date, on the next preceding Trading Day on which a sale occurred; (b) if the Shares are listed on
more than one Stock Exchange, the fair market value as determined in accordance with paragraph (a) above for the primary Stock
Exchange on which the Shares are listed, as determined by the Board; and (c) if the Shares are not listed for trading on a Stock
Exchange, a price which is determined by the Board in good faith to be the fair market value of the Shares in compliance with
the Code Section 409A. The Board is authorized to adopt another fair market value pricing method provided such method is stated
in the applicable Grant Agreement and is in compliance with the fair market value pricing rules set forth in Code Section 409A.

 

Section
409A

 

Notwithstanding
anything in the Plan to the contrary, unless the applicable Grant Agreement provides otherwise, settlement of Share Units will
in all events occur within the “short-term deferral” period determined under Treasury Regulation Section 1.409A-1(b)(4).

 

To
the extent applicable, it is intended that this Plan and any Grants made hereunder comply with or be exempt from the provisions
of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Participants.
This Plan and any grants made hereunder will be administered in a manner consistent with this intent. Any reference in this Plan
to Section 409A of the Code will also include any regulations or any other formal guidance promulgated with respect to such section
by the U.S. Department of the Treasury or the Internal Revenue Service.

 

Neither
a Participant nor any of a Participant’s creditors or beneficiaries will have the right to subject any deferred compensation
(within the meaning of Section 409A of the Code) payable under this Plan and Grants hereunder to any anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, attachment or garnishment. Except as permitted under Section 409A of the Code,
any deferred compensation (within the meaning of Section 409A of the Code) payable to a Participant or for a Participant’s
benefit under this Plan and Grants hereunder may not be reduced by, or offset against, any amount owed by a Participant to the
Corporation or any of its Affiliates.

 

If,
at the time of a Participant’s separation from service (within the meaning of Section 409A of the Code), (a) the Participant
will be a specified employee (within the meaning of Section 409A of the Code and using the identification methodology selected
by the Corporation from time to time) and (b) the Corporation makes a good faith determination that an amount payable hereunder
constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be delayed
pursuant to the six-month delay rule set forth in Section 409A of the Code in order to avoid taxes or penalties under Section
409A of the Code, then the Corporation will not pay such amount on the otherwise scheduled payment date but will instead pay it,
without interest, on the fifth business day of the seventh month after such separation from service (or, if earlier, upon the
Participant’s death).

 

    31

     

    

 

Notwithstanding
any provision of this Plan and Grants hereunder to the contrary, in light of the uncertainty with respect to the proper application
of Section 409A of the Code, the Corporation reserves the right to make amendments to this Plan and Grants hereunder as the Corporation
deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A of the Code. In any case, a Participant
will be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on a Participant or
for a Participant’s account in connection with this Plan and Grants hereunder (including any taxes and penalties under Section
409A of the Code), and neither the Corporation nor any of its affiliates will have any obligation to indemnify or otherwise hold
a Participant harmless from any or all of such taxes or penalties.

 

    32

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