Document:

Exhibit 10.1

Conformed Copy

 

 

 

 

 

 

 

THIRD AMENDMENT

 

TO

 

CREDIT AGREEMENT

 

dated as of

 

NOVEMBER 17, 2017

 

among

 

MURPHY OIL CORPORATION,

MURPHY EXPLORATION & PRODUCTION COMPANY
– INTERNATIONAL,

 

and

 

MURPHY OIL COMPANY
LTD.,

as Borrowers

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent,

 

and

 

The Lenders Party Hereto

 

 

     

     

    

THIRD
Amendment to Credit Agreement

 

THIS THIRD
Amendment to Credit Agreement (this “Third Amendment”) dated as of November 17, 2017 is among MURPHY
OIL CORPORATION, a Delaware corporation (the “Company”), MURPHY EXPLORATION & PRODUCTION COMPANY
– INTERNATIONAL (“Expro-Intl.”), a Delaware corporation, MURPHY OIL COMPANY LTD., a Canadian
corporation (“MOCL” and, together with the Company and Expro-Intl., collectively, the “Borrowers”);
the undersigned Guarantors; JPMORGAN CHASE BANK, N.A., as administrative
agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) for the
lenders party to the Credit Agreement referred to below (collectively, the “Lenders”); and the undersigned Lenders
(including the New Lenders (as defined below)) and Issuing Banks.

 

R E C I T A L S

 

A.       The
Borrowers, the Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of August 10, 2016 (as
amended, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), pursuant to which
the Lenders have made certain extensions of credit available to the Borrowers.

 

B.       The
Borrowers have requested and the undersigned Lenders have agreed, subject to the terms and conditions set forth herein, to amend
certain provisions of the Credit Agreement as set forth herein.

 

C.       NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1.          Defined
Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement
(as amended hereby). Unless otherwise indicated, all references to Sections and Articles in this Third Amendment refer to Sections
and Articles of the Credit Agreement.

 

Section 2.          Amendments
to Credit Agreement.

 

2.1       Amendments
to Cover Page. The Cover Page of the Credit Agreement is hereby amended by replacing each of the references to “BNP PARIBAS,”
and “BNP PARIBAS SECURITIES CORP.,” with references to “EXPORT DEVELOPMENT CANADA”.

 

2.2       Amendment
to Preamble. The preamble of the Credit Agreement is hereby amended by replacing the reference to “BNP Paribas,”
with “Export Development Canada,”.

 

2.3       Amendments
to Section 1.01.

 

(a)       Each
of the following defined terms is hereby added to Section 1.01 where alphabetically appropriate, to read as follows:

 

     

     

    

“Canam
Cash Amount” means, on the last day of any fiscal quarter of the Company, an amount equal to the aggregate amount
of all cash, cash equivalents, marketable securities, treasury bonds and bills, certificates of deposit, investments in money market
funds and commercial paper and Permitted Investments, in each case, held or owned by (whether directly or indirectly), credited
to the account of, or otherwise reflected as an asset on the balance sheet of, the Excluded Canam Entities on such day (net of
any such amounts that have been reserved since July 1 of the then current fiscal year for the purpose of funding the principal
and interest payments due on or before the following June 30 in respect of the Effective Date Canam Intercompany Obligations required
to be made pursuant to the terms of the Effective Date Canam Intercompany Note).

 

“Commitment
Increase” has the meaning assigned to such term in Section 2.20(a).

 

“Commitment
Increase Date” has the meaning assigned to such term in Section 2.20(a).

 

“New
Lender” has the meaning assigned to such term in Section 2.20(a).

 

“Notice
of Commitment Increase” has the meaning assigned to such term in Section 2.20(b).

 

(b)       Each
of the following defined terms is hereby amended and restated in its entirety to read as follows:

 

“Applicable
Rate” means, for any day, with respect to any ABR Revolving Loan or Eurodollar Revolving Loan, or with respect to the
facility fees payable hereunder, as the case may be, the applicable rate per annum set forth in the following grid under the caption
“ABR Spread”, “Eurodollar Spread” or “Facility Fee Rate”, as the case may be, determined by
reference to the Consolidated Leverage Ratio as of the last day of the fiscal quarter or fiscal year of the Company, as applicable,
as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 5.01(d):

 

	Level	Consolidated Leverage Ratio	Facility Fee Rate	Eurodollar Spread	
        ABR

        Spread
	All-In Drawn
	I	< 1.0 to 1.0	0.300 %	2.00 %	1.00 %	2.30 %
	II	≥ 1.0 to 1.0 but < 2.00 to1.00	0.350 %	2.75 %	1.75 %	3.10 %

 

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	III	> 2.00 to 1.00 but < 3.00 to 1.00	0.400 %	3.25 %	2.25 %	3.65 %
	IV	> 3.00 to 1.00	0.500 %	3.75 %	2.75 %	4.25 %

 

Any increase
or decrease in the Applicable Rate resulting from a change in the Consolidated Leverage Ratio shall become effective as of the
first Business Day immediately following the date a Compliance Certificate is delivered to the Administrative Agent pursuant to
Section 5.01(d); provided, however, that if the financial statements and the related Compliance Certificate
are not delivered to the Administrative Agent when due in accordance with Section 5.01(a), Section 5.01(b) or Section
5.01(d), respectively, then Level IV of the above grids, as applicable to such Lender, shall apply in respect of Loans and
the facility fees payable hereunder until the date on which such financial statements and the related Compliance Certificate are
delivered to the Administrative Agent.

 

Notwithstanding
anything to the contrary contained above in this definition or elsewhere in this Agreement, if it is subsequently determined during
the term of this Agreement that the Consolidated Leverage Ratio set forth in any Compliance Certificate delivered for any period
is inaccurate for any reason and the result thereof is that the applicable Lenders received interest or fees for any period based
on an Applicable Rate that is less than that which would have been applicable had the Consolidated Leverage Ratio been accurately
determined, then, for all purposes of this Agreement, the “Applicable Rate” for any day occurring within the affected
period covered by such Compliance Certificate shall retroactively be deemed to be the relevant percentage as based upon the accurately
determined Consolidated Leverage Ratio for such affected period, and any shortfall in the interest or fees theretofore paid by
the Borrowers for the relevant period pursuant to Section 2.12(a), Section 2.12(b), Section 2.12(c), Section
2.11(a) and Section 2.11(b) as a result of the miscalculation of the Consolidated Leverage Ratio shall be deemed to
be due and payable under the relevant provisions of Section 2.12(a), Section 2.12(b), Section 2.12(c), Section
2.11(a) and Section 2.11(b), as applicable, at the time the interest or fees for such affected period were required
to be paid pursuant to said Sections on the same basis as if the Consolidated Leverage Ratio had been accurately set forth in such
Compliance Certificate (and shall remain due and payable until paid in full, together with all amounts owing under Section 2.12(c),
in accordance with the terms of this Agreement) and shall be due and payable on the date of such subsequent determination.

 

“Collateral
Trigger Event” occurs if the Consolidated Leverage Ratio for the period of twelve consecutive months ending on the last
day

 

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of any fiscal
quarter of the Company ending on or after March 31, 2017, exceeds 3.50 to 1.00.

 

“Domestic
Liquidity” means, as of any date of determination, the sum of (a) the unused total Commitments on such date plus
(b) the aggregate amount of Unrestricted Cash of the Company and the Guarantors that are (i) Domestic Subsidiaries or (ii) Canadian
Subsidiaries on such date plus (c) cash or Permitted Investments of Canam that would not appear as “restricted”
on its balance sheet on such date, in an aggregate amount not to exceed $100,000,000 (it being understood that cash or Permitted
Investments subject to a control agreement in favor of any Person other than the Administrative Agent or any Lender shall be deemed
“restricted”, and cash or Permitted Investments restricted in favor of the Administrative Agent or any Lender shall
be deemed not “restricted”) minus (d) the aggregate principal amount of all Indebtedness of the Company and
the Subsidiaries that by its terms matures within 365 days from such date.

 

“Issuing
Bank” means (a) each of (i) JPMorgan Chase Bank, N.A., (ii) Bank of America, N.A., (iii) DNB Bank ASA, New York Branch,
(iv) Wells Fargo Bank, National Association, (v) The Bank of Tokyo Mitsubishi UFJ, Ltd. and (vi) The Bank of Nova Scotia and (b)
any other Lender acceptable to the Administrative Agent and the Company that has agreed in its sole discretion to become an Issuing
Bank hereunder pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent, in each case,
in its capacity as an issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.05(i).
Any Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Bank,
in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by
such Affiliate. Each reference herein to the “Issuing Bank’ shall be deemed to be a reference to the relevant Issuing
Bank.

 

“Lead
Arrangers” means JPMorgan Chase Bank, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated (or any other registered
broker-dealer wholly-owned by Bank of America Corporation to which all or substantially all of Bank of America Corporation’s
or any of its subsidiaries’ investment banking, commercial lending services or related businesses may be transferred following
the Effective Date), DNB Markets, Inc., Wells Fargo Securities, LLC, Export Development Canada, The Bank of Tokyo-Mitsubishi UFJ,
Ltd., and The Bank of Nova Scotia, in their respective capacities as co-lead arrangers and joint bookrunners hereunder.

 

“Letter
of Credit Commitment” means, with respect to each Issuing Bank, the commitment of such Issuing Bank to issue Letters
of

 

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Credit hereunder.
The initial amount of the Letter of Credit Commitment (a) for each of (i) JPMorgan Chase Bank, N.A., (ii) Bank of America, N.A.,
(iii) DNB Bank ASA, New York Branch, (iv) Wells Fargo Bank, National Association, (v) The Bank of Tokyo-Mitsubishi UFJ, Ltd. and
(vi) The Bank of Nova Scotia, is $28,571,430, and (b) for any other Lender that is an Issuing Bank, is the amount agreed to in
writing by such Issuing Bank as its Letter of Credit Commitment hereunder; or if an Issuing Bank has entered into an Assignment
and Assumption, the amount set forth for such Issuing Bank as its Letter of Credit Commitment in the Register maintained by the
Administrative Agent; provided that the total Letter of Credit Commitments shall not exceed $250,000,000.

 

“Maturity
Date” means August 17, 2021; provided that if such date is not a Business Day, then the “Maturity Date”
shall be the Business Day immediately preceding such date.

 

(c)       Each
of the following defined terms is hereby deleted in its entirety: “Canam Excess Cash Amount” and “Canam
Quarterly Working Capital Amount”.

 

(d)       The
definition of “Alternate Base Rate” is hereby amended by adding the following sentence at the end thereof: “If
the Alternate Base Rate is being used as an alternate rate of interest pursuant to Section 2.13 hereof, then the Alternate Base
Rate shall be the greater of clause (a) and (b) above and shall be determined without reference to clause (c) above.”

 

2.4       Amendment
to Section 2.08(d). Section 2.08(d) is hereby amended and restated in its entirety to read as follows:

 

(d)       If,
on any date when the total Commitments exceeds $1,000,000,000, the Company or any Subsidiary shall receive Net Cash Proceeds from
any Asset Sale or Recovery Event, then the total Commitments shall be reduced automatically (without any further action) by an
amount equal to 100% of such Net Cash Proceeds; provided that (i) no such reduction shall be required under this Section
2.08(d) with respect to any Asset Sale of Oil and Gas Properties or the Equity Interests in Subsidiaries owning Oil and Gas
Properties, the Net Cash Proceeds of which from all such Asset Sales since the Effective Date does not exceed $250,000,000 in the
aggregate; and (ii) if, after giving effect to any such reduction, the total Commitments would be less than $1,000,000,000, then
the total Commitments shall instead be reduced pursuant to this Section 2.08(d) by an amount necessary (up to the amount
of such Net Cash Proceeds) so that after giving effect to such reduction, the total Commitments equal $1,000,000,000. Each reduction
of the Commitments shall be made ratably among the Lenders in accordance with their respective Commitments.

 

2.5       Amendment
to Section 2.13. Section 2.13 is hereby amended and restated in its entirety to read as follows:

 

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2.13       Alternate
Rate of Interest.

 

(a)           If
prior to the commencement of any Interest Period for a Eurodollar Borrowing:

 

(i)       the
Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means
do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or

 

(ii)       the
Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest
Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its
Loan) included in such Borrowing for such Interest Period;

 

then the
Administrative Agent shall give notice thereof to the Company and the Lenders by telephone or telecopy as promptly as practicable
thereafter and, until the Administrative Agent notifies the Company and the Lenders that the circumstances giving rise to such
notice no longer exist, (A) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of
any Borrowing as, a Eurodollar Borrowing shall be ineffective, and (B) if any Borrowing Request requests a Eurodollar Borrowing,
such Borrowing shall be made as an ABR Borrowing.

 

(b)           If
at any time the Administrative Agent determines (which determination shall be conclusive absent manifest error) that (i) the
circumstances set forth in clause (a)(i) have arisen and such circumstances are unlikely to be temporary or (ii) the circumstances
set forth in clause (a)(i) have not arisen but the supervisor for the administrator of the LIBO Screen Rate or a Governmental
Authority having jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which
the LIBO Screen Rate shall no longer be used for determining interest rates for loans, then the Administrative Agent and the Company
shall endeavor to establish an alternate rate of interest to the LIBO Rate that gives due consideration to the then prevailing
market convention for determining a rate of interest for syndicated loans in the United States at such time, and shall enter into
an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may
be applicable. Notwithstanding anything to the contrary in Section 10.02, such amendment shall become effective without
any further action or consent of any other party to this Agreement so long as the Administrative Agent shall not have received,
within five Business Days of the date notice of such alternate rate of interest is provided to the Lenders, a written notice from
the Required Lenders stating that such Required Lenders object to such amendment.

 

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Until an
alternate rate of interest shall be determined in accordance with this clause (b) (but, in the case of the circumstances described
in clause (ii) of the first sentence of this Section 2.13(b), only to the extent the LIBO Screen Rate for such Interest
Period is not available or published at such time on a current basis), (x) any Interest Election Request that requests the
conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (y) if
any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing; provided that,
if such alternate rate of interest shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.

 

2.6     Amendment
to Article II. Article II is hereby amended by adding a new Section 2.20 thereto to read as follows:

 

Section 2.20Commitment Increase.

 

(a)       Subject
to the terms and conditions set forth herein, the Company shall have the right from time to time to cause an increase in the total
Commitments of the Lenders (a “Commitment Increase”) by adding to this Agreement one or more additional financial
institutions that are not already Lenders hereunder (each, a “New Lender”) or by allowing one or more existing
Lenders to increase their respective Commitments; provided that (i) both before and immediately after giving effect to such
Commitment Increase, no Default or Event of Default shall have occurred and be continuing as of the effective date of such Commitment
Increase (such date, the “Commitment Increase Date”), (ii) no such Commitment Increase shall be in an amount
less than $10,000,000, (iii) the aggregate amount of all such Commitment Increases shall not exceed $250,000,000, and after giving
effect to all such Commitment Increases, the total Commitments shall not exceed $1,350,000,000, (iv) no Lender’s Commitment
shall be increased without such Lender’s prior written consent (which consent may be given or withheld in such Lender’s
sole and absolute discretion) and (v) each New Lender and any increase in the Commitment of an existing Lender pursuant to any
Commitment Increase shall be subject to the prior written consent of the Administrative Agent and each Issuing Bank (each such
consent not to be unreasonably withheld or delayed).

 

(b)       The
Company shall provide the Administrative Agent with written notice (a “Notice of Commitment Increase”) of its
intention to increase the total Commitments pursuant to this Section 2.20. Each such Notice of Commitment Increase shall
specify (i) the proposed Commitment Increase Date, which date shall be no earlier than five (5) Business Days after receipt by
the Administrative Agent of such Notice of Commitment Increase, (ii) the amount of the requested Commitment Increase, (iii) as
applicable, the identity of each New Lender and/or

 

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existing
Lender that has agreed in writing to increase its Commitment hereunder, and (iv) the amount of the respective Commitments of the
then existing Lenders and the New Lenders from and after the Commitment Increase Date.

 

(c)       On
any Commitment Increase Date, the Lenders shall purchase and assume (without recourse or warranty) from the other Lenders (i) Loans,
to the extent that there are any Loans then outstanding, and (ii) undivided participation interests in any outstanding LC Exposure,
in each case, to the extent necessary to ensure that after giving effect to the Commitment Increase, each Lender has outstanding
Loans and participation interests in outstanding LC Exposure equal to its Applicable Percentage of the total Commitments. Each
Lender shall make any payment required to be made by it pursuant to the preceding sentence via wire transfer to the Administrative
Agent on the Commitment Increase Date. Each existing Lender shall be automatically deemed to have assigned any outstanding Loans
on the Commitment Increase Date and the existing Lenders, each New Lender and the Borrowers each agree to take any further steps
reasonably requested by the Administrative Agent, in each case to the extent deemed necessary by the Administrative Agent to effectuate
the provisions of the preceding sentences, including, without limitation, the execution and delivery of one or more joinder or
similar agreements. If, on such Commitment Increase Date, any Loans that are Eurodollar Loans have been funded, then the Borrower
shall be obligated to pay any breakage fees or costs that are payable pursuant to Section 2.15 in connection with the reallocation
of such outstanding Loans to effectuate the provisions of this paragraph.

 

(d)       Each
Commitment Increase shall become effective on the respective Commitment Increase Date and upon such effectiveness: (i) to the extent
applicable, the Administrative Agent shall record in the Register each New Lender’s information as provided in the applicable
Notice of Commitment Increase and pursuant to an Administrative Questionnaire that shall be executed and delivered by each New
Lender to the Administrative Agent on or before such Commitment Increase Date, (ii) Schedule 2.01 shall be amended and restated
to set forth all Lenders (including any New Lenders) that will be Lenders hereunder after giving effect to such Commitment Increase
(which amended and restated Schedule 2.01 shall be set forth in Annex I to the applicable Notice of Commitment Increase)
and the Administrative Agent shall distribute to each Lender (including each New Lender) a copy of such amended and restated Schedule
2.01, and (iii) each New Lender identified on the Notice of Commitment Increase for such Commitment Increase shall be a “Lender”
for all purposes under this Agreement.

 

(e)       As
a condition precedent to any Commitment Increase, the Company shall deliver to the Administrative Agent (i) a certificate of a

 

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Responsible
Officer of the Company dated as of the Commitment Increase Date certifying and attaching the resolutions adopted by the Borrowers
approving or consenting to such Commitment Increase and certifying that, before and after giving effect to such Commitment Increase,
(A) the representations and warranties contained in this Agreement made by the Borrowers are true and correct on and as of the
Commitment Increase Date (unless such representations and warranties are stated to relate to a specific earlier date, in which
case such representations and warranties shall be true and correct as of such earlier date) and (B) no Default or Event of Default
exists or will exist as of the Commitment Increase Date, and (ii) any legal opinions, certificates and/or other documents reasonably
requested by the Administrative Agent in connection with the Commitment Increase.

 

2.7      Amendment
to Section 5.10(a). Section 5.10(a) is hereby amended and restated in its entirety to read as follows:

 

(a)       On
or before March 1st and September 1st of each year, commencing March 1, 2017, the Company shall furnish to the Administrative Agent
and the Lenders a Reserve Report, in form and substance consistent with the requirements set forth in the definition thereof, evaluating
the Proved Reserves of the Company and its Subsidiaries as of the immediately preceding January 1st and July 1st. The Reserve Report
as of January 1 of each year shall, in each case, (i) if a Collateral Trigger Event has occurred on or prior to September 30th
of the immediately preceding year, be either prepared by one or more Approved Petroleum Engineers, or by or under the supervision
of the chief engineer of the Company and audited by one or more Approved Petroleum Engineers (any such January 1 Reserve Report
audited by one or more Approved Petroleum Engineers, an “Audited Annual Reserve Report”) or (ii) if a Collateral
Trigger Event has not occurred on or prior to September 30th of the immediately preceding year, be prepared by or under the supervision
of the chief engineer of the Company who shall certify such Reserve Report to be true and accurate and to have been prepared in
accordance with the procedures used in the immediately preceding January 1 Reserve Report. The July 1 Reserve Report of each year
shall, in each case, be prepared by or under the supervision of the chief engineer of the Company who shall certify such Reserve
Report to be true and accurate and to have been prepared in accordance with the procedures used in the immediately preceding January
1 Reserve Report. If the Company elects to furnish an Audited Annual Reserve Report, then the scope of the audit of such Audited
Annual Reserve Report (any such Annual Audited Reserve Report, the “Subject Reserve Report”), as applicable,
must cover at least 70% of the value of the Proved Reserves evaluated in the Subject Reserve Report and in the event that that
the Company has elected to furnish an Audited Annual Reserve Report for (i) the immediately preceding year (the “Last
Year”) and/or (ii) the year

 

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immediately
preceding the Last Year (the “Year Before Last Year”), then the scope of the audit of the Subject Reserve Report
must, in addition to complying with the minimum 70% requirement set forth above, cover (A) if an Audited Annual Reserve Report
has been delivered for the Last Year but not for the Year Before Last Year, at least 50% of the value of the Proved Reserves that
were included in, but not audited in connection with, the Audited Annual Reserve Report for such Last Year and (B) if an Audited
Annual Reserve Report has been delivered for both the Last Year and the Year Before Last Year, all Proved Reserves that were included
in, but not audited in connection with, either the Audited Annual Reserve Report for such Year Before Last Year or the Audited
Annual Reserve Report for such Last Year.

 

2.8      Amendment
to Section 5.18. Section 5.18 is hereby amended and restated in its entirety to read as follows:

 

Section
5.18Canam Distribution Covenant. The Company shall cause Canam to directly or indirectly transfer to one or more
Loan Parties, by way of dividend, prepayment of the Effective Date Canam Intercompany Obligations or other distribution, within
30 days after (a) the last day of each of the fiscal quarters of the Company ending June 30 and December 31, an amount not less
than the positive difference of (i) the Canam Cash Amount as of the last day of such fiscal quarter minus (ii) $150,000,000
and (b) the last day of each of the fiscal quarters of the Company ending March 31 and September 30, an amount not less than the
positive difference of (i) the Canam Cash Amount as of the last day of such fiscal quarter minus (ii) $200,000,000. Concurrently
with the consummation of each such transfer, the Company shall deliver a certificate of a Financial Officer of the Company certifying
the calculation of the Canam Cash Amount (and attaching thereto reasonably detailed back-up documentation with respect thereto)
for such applicable fiscal quarter.

 

2.9     Amendment
to Section 6.01. Section 6.01 is hereby by amended by (i) deleting the word “and” at the end of clause (g), (ii)
adding the word “and” at the end of clause (h) and (iii) adding the following new clause (i) to read in its entirety
as follows:

 

(i)       
Indebtedness solely in the form of letters of credit and/or letters of guaranty, including letters of credit and/or letters of
guaranty issued for the benefit of counterparties under Hedging Agreements permitted pursuant to Section 6.05, in an aggregate
principal amount not to exceed $100,000,000 at any time outstanding;

 

2.10   Amendment
to Section 6.02. Section 6.02 is hereby by amended by (i) deleting the word “and” at the end of clause (c), (ii)
replacing the period at the end of clause (d) with a semicolon; (iii) adding the word “and” at the end of clause (d)
and (iv) adding the following as new clause (e) to read in its entirety as follows:

 

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(e)       Guarantees
by Subsidiaries of any Indebtedness permitted pursuant to Section 6.01(i).

 

2.11     Amendment
to Section 6.14(a). Section 6.14(a) is hereby amended and restated in its entirety to read as follows:

 

(a)       Consolidated
Leverage Ratio. The Company will not, as of the last day of any fiscal quarter of the Company, permit the Consolidated Leverage
Ratio for the period of four consecutive fiscal quarters ending on such day, to exceed 4.00 to 1.00.

 

2.12     Amendment
to Section 7.02. Section 7.02 is hereby amended by replacing the phrase “Excluded Swap Obligation” with the phrase
“Excluded Guaranteed Hedging Obligation”.

 

2.13     Amendment
to Section 10.02(b). Section 10.02(b) is hereby amended by replacing the phrase “Subject to Section 10.02(c) below”
with the phrase “Subject to Section 2.13(b) and Section 10.02(c)”.

 

2.14     Amendment
to Section 10.12. The first sentence of Section 10.12 is hereby amended by (i) deleting the word “or” at the end
of clause (g), (ii) adding a comma at the end of clause (h) and (iii) adding the following at the end thereof:

 

or (i) on
a confidential basis to (i) any rating agency in connection with rating the Borrowers or their Subsidiaries or the credit facility
established hereby or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP
numbers with respect to the credit facility established hereby.

 

Section 3.Assignment
and Reallocation of Commitments and Loans. Effective as of the Amendment Effective Date, each Lender party to the Credit Agreement
immediately prior to the Amendment Effective Date (each such Lender, including, for the avoidance of doubt, the Exiting Lender,
an “Existing Lender”) has, in consultation with the Borrowers, agreed to reallocate its respective Commitment,
among other things, to allow BNP Paribas (the “Exiting Lender”) to sell and assign its Commitments and Loans
under the Credit Agreement and allow each of ABN AMRO Capital USA LLC and Standard Chartered Bank (collectively, the “New
Lenders”; and each, a “New Lender”) to become a party to the Credit Agreement as a Lender by acquiring
an interest in the total Commitments (the “Assignment and Reallocation”). On the Amendment Effective Date, and
after giving effect to the Assignment and Reallocation, (a) the Commitment of each Lender (including each New Lender) shall be
as set forth on Schedule 2.01 attached to this Third Amendment, which Schedule 2.01 amends and restates Schedule 2.01 to the Credit
Agreement in its entirety (and for the avoidance of doubt, the Commitment of the Exiting Lender shall be $0); and (b) (i) the Exiting
Lender shall cease to be a “Lender” for all purposes under the Credit Agreement and the other Loan Documents and (ii)
each New Lender shall become a party to the Credit Agreement, as amended by this Third Amendment, as a “Lender”, and
shall have all of the rights and obligations of a Lender under the Credit Agreement, as amended by this Third Amendment, and the
other Loan Documents. Each of the Administrative Agent, each Existing

 

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Lender (including the
Exiting Lender), each Issuing Bank, each New Lender and the Borrowers hereby consents and agrees to the Assignment and Reallocation,
including each New Lender’s acquisition of an interest in the total Commitments and each Existing Lender’s assignment
of its Commitment to the extent effected by the Assignment and Reallocation. With respect to the Assignment and Reallocation, each
Existing Lender shall be deemed to have sold and assigned its Commitment and Loans, and each Existing Lender other than the Exiting
Lender and each New Lender shall be deemed to have acquired the Commitment and Loans allocated to it from each Existing Lender
pursuant to the terms and conditions of the Assignment and Assumption attached as Exhibit A to the Credit Agreement (the “Assignment
Agreement”), as if each Existing Lender and each New Lender had executed such Assignment Agreement with respect to the
Assignment and Reallocation, pursuant to which (i) each Existing Lender other than the Exiting Lender and each New Lender shall
be an “Assignee”, (ii) each Existing Lender shall be an “Assignor” and (iii) the term “Effective
Date” shall be the Amendment Effective Date as defined herein. Such Assignment and Reallocation shall be without recourse
to each Existing Lender and, except as expressly provided in the Assignment Agreement, without representation or warranty by such
Lender. On the Amendment Effective Date, the Administrative Agent shall take the actions specified in Section 10.04(b)(iv), including
recording the Assignment and Reallocation described herein in the Register, and the Assignment and Reallocation shall be effective
for all purposes of the Credit Agreement. Notwithstanding Section 10.04(b)(ii)(C), each New Lender shall not be required to pay
a processing and recordation fee of $3,500 to the Administrative Agent in connection with the Assignment and Reallocation.

 

Section 4.Resignation
of Issuing Bank.

 

4.1Effective
as of the Amendment Effective Date, BNP Paribas, in its capacity as an Issuing Bank (the “Resigning Issuing Bank”)
hereby resigns as an Issuing Bank under the Credit Agreement and the other Loan Documents and shall have no further obligations
in such capacity under the Credit Agreement and the other Loan Documents, except (a) to the extent of any obligation expressly
stated in the Credit Agreement or other Loan Documents as surviving the resignation in such capacity (if any) and (b) with respect
to the Letter of Credit issued by the Resigning Issuing Bank that is outstanding on the Amendment Effective Date (as set forth
on Exhibit A hereto, the “Residual Letter of Credit”), which, until such Residual Letter of Credit is replaced,
terminated or otherwise expired, shall remain the obligation of the Resigning Issuing Bank in accordance with its terms (in each
case, without giving effect to any provisions of such Residual Letter of Credit that require, or otherwise give the Borrowers or
any Subsidiary or beneficiary the right to obtain (whether automatically or by notice or agreement), any extension or renewal of
such Residual Letter of Credit).

 

4.2Notwithstanding
anything to the contrary set forth in Section 2.05(i), the parties hereto hereby confirm that the Resigning Issuing Bank is discharged
from all of its duties and obligations as an Issuing Bank under the Credit Agreement and the other Loan Documents (except (i) to
the extent of any obligation expressly stated in the Credit Agreement or other Loan Document as surviving the resignation in such
capacity (if any) and (ii) with respect to the Residual Letter of Credit, which, until such Residual Letter of Credit is replaced,
terminated or otherwise expired, shall remain the obligation of the Resigning Issuing Bank in accordance with its terms (in each
case, without giving effect to any provisions of

 

    	12

     

    

such Residual
Letter of Credit that require, or otherwise give the Borrowers or any Subsidiary or beneficiary the right to obtain (whether automatically
or by notice or agreement), any extension or renewal of such Residual Letter of Credit).

 

4.3The
Borrowers and the Resigning Issuing Bank hereby agree that the Residual Letter of Credit shall not be extended or renewed (whether
automatically or by notice or agreement) beyond the stated expiration date as in effect on the Amendment Effective Date.

 

4.4The
parties hereto acknowledge and agree that, notwithstanding anything to the contrary set forth in this Agreement, the Credit Agreement
or the other Loan Documents, until the Residual Letter of Credit is replaced, terminated or otherwise expired, (a) the Residual
Letter of Credit shall continue to constitute a “Letter of Credit” under and as defined in the Credit Agreement and
shall be subject to the terms and conditions of Section 2.05 and (b) the Resigning Issuing Bank shall continue to constitute an
“Issuing Bank” under and as defined in the Credit Agreement, solely with respect to the Residual Letter of Credit.
Without limiting the generality of the foregoing, (i) each Lender (for the avoidance of doubt, excluding the Exiting Lender and
including the New Lenders) shall have a participation in the Residual Letter of Credit pursuant to Section 2.05(d) and (ii) the
Borrowers and each Lender (for the avoidance of doubt, excluding the Exiting Lender and including the New Lenders) shall be subject
to the reimbursement obligations of Section 2.05(e) with respect to any LC Disbursements in respect of the Residual Letters of
Credit.

 

Section 5.Conditions
Precedent. This Third Amendment shall not become effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 10.02 of the Credit Agreement) (the “Amendment Effective Date”):

 

5.1The
Administrative Agent, the Lenders and the Lead Arrangers shall have received all fees and other amounts due and payable to each
such Person (including, without limitation, the fees and expenses of Paul Hastings LLP, as counsel to the Administrative Agent)
on or prior to the Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by the Borrowers pursuant to the Credit Agreement.

 

5.2The
Administrative Agent shall have received from all of the Lenders (including the Exiting Lender and the New Lenders), the Issuing
Banks (including the Resigning Issuing Bank) and the Obligors, counterparts (in such number as may be requested by the Administrative
Agent) of this Third Amendment signed on behalf of such Persons.

 

5.3The
Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and
dated the Amendment Effective Date) of each of Davis Polk & Wardwell LLP, as counsel for the Loan Parties, and Osler, Hosking
& Harcourt LLP, as Alberta counsel for MOCL, each in form and substance satisfactory to the Administrative Agent.

 

5.4Since
December 31, 2016, there has been no change in the business, assets, operations, prospects or condition, financial or otherwise,
of the Company and its

 

    	13

     

    

Subsidiaries
that, taken as a whole, has had or could reasonably be expected to have, a Material Adverse Effect

 

5.5The
Administrative Agent shall have received (i) the audited financial statements of the Company and its Consolidated Subsidiaries
for the fiscal year ended December 31, 2016 and unaudited financial statements for the fiscal quarter and portion of the fiscal
year ended June 30, 2017, and (ii) financial projections and forecasts with respect to the Company and its Consolidated Subsidiaries,
in each case, in form and substance reasonably satisfactory to it.

 

5.6The
Administrative Agent and the Lenders shall have received, and shall be reasonably satisfied in form and substance with, all documentation
and other information required by bank regulatory authorities under applicable “know-your-customer” and anti-money
laundering rules and regulations, including but not limited to the USA PATRIOT Act.

 

5.7The
Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably
request relating to the organization, existence and good standing of each Loan Party, the authorization of the transactions contemplated
hereby and any other legal matters relating to the Loan Parties, this Third Amendment, the other Loan Documents or the transactions
contemplated hereby, all in form and substance satisfactory to the Administrative Agent and its counsel.

 

5.8The
Administrative Agent shall have received a certificate of a Responsible Officer of the Company, dated as of the Amendment Effective
Date, confirming compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.03 of the Credit Agreement.

 

5.9No
Default shall have occurred and be continuing, after giving effect to the terms of this Third Amendment.

 

5.10The
Exiting Lender shall have received all payments pursuant to the Credit Agreement (including payments of principal, interest, fees
and other amounts) due and payable to the Exiting Lender as of the Amendment Effective Date after giving effect to Section 3 of
this Third Amendment.

 

5.11The
Administrative Agent shall have received such other documents as the Administrative Agent or special counsel to the Administrative
Agent may reasonably request.

 

The Administrative
Agent is hereby authorized and directed to declare the occurrence of the Amendment Effective Date when it has received documents
confirming compliance with the conditions set forth in this Section 4 or the waiver of such conditions as agreed to by the Lenders
pursuant to Section 10.02(b) of the Credit Agreement. Such declaration shall be final, conclusive and binding upon all parties
to this Third Amendment for all purposes. For purposes of determining compliance with the conditions specified in this Section
4, each Lender shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent
shall have received written notice from such Lender prior to the proposed Amendment Effective Date specifying its objection thereto.

 

    	14

     

    

Section 6.Miscellaneous.

 

6.1       Confirmation.
The provisions of the Credit Agreement, as amended by this Third Amendment, shall remain in full force and effect following the
effectiveness of this Third Amendment.

 

6.2       Ratification
and Affirmation; Representations and Warranties. Each Borrower and each Guarantor (each, an “Obligor”) hereby:
(a) acknowledges the terms of this Third Amendment; (b) acknowledges, ratifies and affirms its obligations and continued liability
under, the Credit Agreement and the other Loan Documents to which it is party and agrees that the Credit Agreement remains in full
force and effect, except as expressly amended hereby, after giving effect to the amendments contained herein; (c) agrees that the
terms “Agreement”, “this Agreement”, “herein”, “hereinafter”, “hereto”,
“hereof” and words of similar import, as used in the Credit Agreement, shall, unless the context otherwise requires,
refer to the Credit Agreement, as amended hereby, and the term “Credit Agreement” as used in the other Loan Documents
shall mean the Credit Agreement, as amended hereby and (d) represents and warrants to the Lenders that as of the date hereof, after
giving effect to the terms of this Third Amendment: (i) all of the representations and warranties contained in the Credit Agreement
are true and correct, unless such representations and warranties are stated to relate to a specific earlier date, in which case,
such representations and warranties shall continue to be true and correct as of such earlier date and (ii) no Default has occurred
and is continuing.

 

6.3       Counterparts.
This Third Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such
counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart of a
signature page of this Third Amendment by telecopy, emailed pdf or any other electronic means that reproduces an image of the actual
executed signature page shall be effective as delivery of a manually executed counterpart of this Third Amendment.

 

6.4       No
Oral Agreement. This Third Amendment, the Credit Agreement and the other Loan Documents executed in connection herewith and
therewith represent the final agreement AMONG the parties and may not be contradicted by evidence of prior, contemporaneous, or
unwritten oral agreements of the parties. There are no oral agreements between the parties.

 

6.5       GOVERNING
LAW. THIS THIRD AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND EACH BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF
AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND
OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THE CREDIT AGREEMENT OR THIS THIRD

 

    	15

     

    

AMENDMENT,
OR FOR THE RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT
ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED
BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THE CREDIT
AGREEMENT OR THIS THIRD AMENDMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING
ANY ACTION OR PROCEEDING RELATING TO THE CREDIT AGREEMENT OR THIS THIRD AMENDMENT AGAINST ANY BORROWER OR ITS PROPERTIES IN THE
COURTS OF ANY JURISDICTION.

 

6.6       Successors
and Assigns. This Third Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

 

6.7       Loan
Document. This Third Amendment is a “Loan Document” as defined and described in the Credit Agreement, and all of
the terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto.

 

6.8       Severability.
Any provision of this Third Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate
such provision in any other jurisdiction.

 

[SIGNATURES BEGIN NEXT PAGE]

 

    	16

     

    

IN WITNESS WHEREOF,
the parties hereto have caused this Third Amendment to be duly executed as of the date first written above.

 

	 	BORROWERS:
	 	 	 
	 	MURPHY OIL CORPORATION
	 	 	 
	 	 	 
	 	By:	/s/ John B. Gardner
	 	Name:	John B. Gardner
	 	Title: 	Vice President and Treasurer
	 	 	 
	 	 	 
	 	MURPHY EXPLORATION & PRODUCTION COMPANY – INTERNATIONAL
	 	 	 
	 	 	 
	 	By:	/s/ John B. Gardner
	 	Name:	John B. Gardner
	 	Title: 	Vice President and Treasurer
	 	 	 
	 	 	 
	 	MURPHY OIL COMPANY LTD.
	 	 	 
	 	 	 
	 	By:	/s/ John B. Gardner
	 	Name:	John B. Gardner
	 	Title: 	Treasurer
	 	 	 
	 	GUARANTORS:
	 	 	 
	 	MURPHY EXPLORATION & PRODUCTION COMPANY
	 	 	 
	 	 	 
	 	By:	/s/ John B. Gardner
	 	Name:	John B. Gardner
	 	Title: 	Vice President and Treasurer
	 	 	 
	 	MURPHY EXPLORATION & PRODUCTION COMPANY – USA
	 	 	 
	 	 	 
	 	By:	/s/ John B. Gardner
	 	Name:	John B. Gardner
	 	Title: 	Vice President and Treasurer

 

    
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	 	JPMORGAN CHASE BANK, N.A., as

                                             Administrative Agent, Issuing Bank and Lender

	 	 	 
	 	 	 
	 	By:       	/s/ Jeffrey C. Miller
	 	Name:  	Jeffrey C. Miller
	 	Title:    	Vice President

 

    
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	 	BANK OF AMERICA, N.A., as Issuing

                           Bank and Lender

	 	 	 
	 	 	 
	 	By:	/s/ Christopher Dibiase
	 	Name: 	Christopher Dibiase
	 	Title:	Director

 

    
[SIGNATURE PAGE TO MURPHY OIL THIRD AMENDMENT]

     

    

 

	 	WELLS FARGO BANK, NATIONAL

                           ASSOCIATION, as Issuing Bank
and

                           Lender

	 	 	 
	 	 	 
	 	By:	/s/ Nathan Starr
	 	Name: 	Nathan Starr
	 	Title:	Vice President

  

    
[SIGNATURE PAGE TO MURPHY OIL THIRD AMENDMENT]

     

    

  

	 	DNB CAPITAL LLC, as
                           Lender

 

	 	 	 
	 	By:	/s/ Philip F. Kurpiewski
	 	Name: 	Philip F. Kurpiewski
	 	Title:	Senior Vice President

 

	 	 	 
	 	By:	/s/ Rune Nilsen, Jr.
	 	Name: 	Rune Nilsen, Jr.
	 	Title:	Senior Vice President

 

 

	 	DNB BANK ASA, NEW YORK

                           BRANCH, as Issuing Bank  

 

	 	 	 
	 	By:	/s/ Philip F. Kurpiewski
	 	Name: 	Philip F. Kurpiewski
	 	Title:	Senior Vice President

 

	 	 	 
	 	By:	/s/ Rune Nilsen, Jr.
	 	Name: 	Rune Nilsen, Jr.
	 	Title:	Senior Vice President

 

 

    
[SIGNATURE PAGE TO MURPHY OIL THIRD AMENDMENT]

     

    

 

	 	THE BANK OF TOKYO-MITSUBISHI

                           UFJ, LTD., as Issuing Bank and Lender

	 	 	 
	 	 	 
	 	By:	/s/ Todd Vaubel
	 	Name: 	Todd Vaubel
	 	Title:	Director

  

    
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	 	THE BANK OF NOVA SCOTIA, as

                           Issuing Bank and Lender

	 	 	 
	 	 	 
	 	By:	/s/ Alan Dawson
	 	Name: 	Alan Dawson
	 	Title:	Director

 

    
[SIGNATURE PAGE TO MURPHY OIL THIRD AMENDMENT]

     

    

 

	 	EXPORT DEVELOPMENT CANADA,

                           as Lender

	 	 	 
	 	 	 
	 	By:	/s/ Philip Sauvé
	 	Name: 	Philip Sauvé
	 	Title:	Senior Associate

 

	 	 	 
	 	By:	/s/ Trevor Mulligan
	 	Name: 	Trevor Mulligan
	 	Title:	Financing Manager

 

 

    
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	 	ABN AMRO Capital USA LLC, as

                           New Lender

	 	 	 
	 	 	 
	 	By:	/s/ John Sullivan
	 	Name: 	John Sullivan
	 	Title:	Managing Director

 

    
[SIGNATURE PAGE TO MURPHY OIL THIRD AMENDMENT]

     

    

 

	 	CAPITAL ONE, NATIONAL

                           ASSOCIATION, as Lender

	 	 	 
	 	 	 
	 	By:	/s/ Christopher Kuna
	 	Name: 	Christopher Kuna
	 	Title:	Vice President

 

    
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	 	REGIONS BANK, as Lender

	 	 	 
	 	 	 
	 	By:	/s/ Kelly L. Elmore III
	 	Name: 	Kelly L. Elmore III
	 	Title:	Managing Director

  

    
[SIGNATURE PAGE TO MURPHY OIL THIRD AMENDMENT]

     

    

 

	 	GOLDMAN SACHS BANK USA, as Lender

	 	 	 
	 	 	 
	 	By:	/s/ Rebecca Kratz
	 	Name: 	Rebecca Kratz
	 	Title:	Authorized Signatory

 

    
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	 	BANCORPSOUTH BANK, as Lender

	 	 	 
	 	 	 
	 	By:	/s/ Ronald L. Hendrix
	 	Name: 	Ronald L. Hendrix
	 	Title:	Executive Vice President

 

    
[SIGNATURE PAGE TO MURPHY OIL THIRD AMENDMENT]

     

    

 

	 	WHITNEY BANK, as Lender 

	 	 	 
	 	 	 
	 	By:	/s/ H. Elder Gwin
	 	Name: 	H. Elder Gwin

	 	Title:	Senior Vice President

 

    
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	 	SIMMONS BANK, as Lender

	 	 	 
	 	 	 
	 	By:	/s/ Robert L. Robinson, IV
	 	Name: 	Robert L. Robinson, IV
	 	Title:	Community President - El Dorado

 

    
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	 	STANDARD CHARTERED BANK, as New Lender

	 	 	 
	 	 	 
	 	By:	/s/ Daniel Mattern
	 	Name: 	Daniel Mattern
	 	Title:	Associate Director

 

    
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	 	BNP PARIBAS, as Resigning Issuing Bank

                           and as Exiting Lender

	 	 	 
	 	 	 
	 	By:	/s/ Sriram Chandrasekaran
	 	Name: 	Sriram Chandrasekaran
	 	Title:	Director

 

	 	 	 
	 	By:	/s/ Vincent Trapet
	 	Name: 	Vincent Trapet
	 	Title:	Director

 

    
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Schedule 2.01

 

Commitments

 

	

Lender	Amount of Commitment	Percentage of Commitment
	JPMorgan Chase Bank, N.A.	$110,000,000.00	10.000000000%
	Bank of America, N.A.	$110,000,000.00	10.000000000%
	DNB Capital, LLC	$110,000,000.00	10.000000000%
	Export Development Canada	$110,000,000.00	10.000000000%
	Wells Fargo Bank, National Association	$110,000,000.00	10.000000000%
	The Bank of Nova Scotia	$110,000,000.00	10.000000000%
	The Bank of Tokyo-Mitsubishi UFJ, Ltd.	$110,000,000.00	10.000000000%
	ABN AMRO Capital USA LLC	$50,000,000.00	4.545454545%
	Capital One, National Association	$50,000,000.00	4.545454545%
	Regions Bank	$50,000,000.00	4.545454545%
	BancorpSouth Bank	$40,000,000.00	3.636363636%
	Goldman Sachs Bank USA	$40,000,000.00	3.636363636%
	Whitney Bank	$40,000,000.00	3.636363636%
	Simmons Bank	$35,000,000.00	3.181818181%
	Standard Chartered Bank	$25,000,000.00	2.272727272%
	Total:	$1,100,000,000	100.000000000%

 

     

     

    

Exhibit A

 

Residual Letter of Credit

 

	Issuing Bank	LC No.	
        Issue

        Date
	
        Expiration

        Date
	Face Amount	Accrual	Beneficiary	Applicant
	BNP Paribas	4133373	12/16/2014	3/31/2018	£32,000,000.00	No	Trustees of the MURCO 1981 Pension Scheme	MURCO Petroleum Ltd.Exhibit 10.1

	
 
    

 

TAX MATTERS AGREEMENT 

by and between

 

FIDELITY NATIONAL 

FINANCIAL, INC.,

 

and

 

CANNAE HOLDINGS, INC,

 

dated as of November 17, 2017

	
 
    

 

 

TAX MATTERS AGREEMENT

 

This TAX MATTERS AGREEMENT (the “Agreement”), dated as of November 17, 2017, is entered into by and between FIDELITY NATIONAL FINANCIAL, INC., a Delaware corporation (“FNF”), and CANNAE HOLDINGS, INC. a Delaware corporation and a direct, wholly-owned subsidiary of FNF (“Splitco”).

 

W I T N E S S E T H

 

WHEREAS, FNF and Splitco entered into the Reorganization Agreement pursuant to which FNF agreed to contribute to Splitco 100% of FNF’s interest in Fidelity National Financial Ventures, LLC (the “Contribution”) and to distribute shares of Splitco Common Stock held by FNF to the holders of FNFV Common Stock in redemption of 100% of the FNFV Common Stock (the “Redemption”) as described therein;

 

WHEREAS, the parties intend that the Contribution and the Redemption shall qualify as a tax-free reorganization under Sections 368(a) and 355 of the Code and a distribution to which Sections 355 and 361 of the Code apply, respectively; and

 

WHEREAS, the parties wish to (a) provide for the payment of Tax liabilities and entitlement to Refunds thereof, allocate responsibility for, and cooperation in, the filing of Tax Returns, and provide for certain other matters relating to Taxes, and (b) set forth certain covenants and indemnities relating to the preservation of the intended Tax treatment of the Contribution and the Redemption.

 

NOW, THEREFORE, in consideration of the mutual promises and undertakings contained herein and in any other document executed in connection with this Agreement, the parties agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

1.1          For purposes of this Agreement, the following terms shall have the meanings set forth below:

 

Agreement shall have the meaning given in the Preamble.

 

Business Day shall mean a day except a Saturday, a Sunday or other day on which the banks in New York City are authorized or required by Law to be closed.

 

Code shall mean the United States Internal Revenue Code of 1986, as amended.

 

Contribution shall have the meaning given in the Recitals.

 

Disqualifying Action shall mean (i) any action by a member of the FNF Group that, or the failure to take any action within its control which, negates the Tax-Free Status of the Transactions, or (ii) any event or series of events, as a result of which any Person or Persons

 

 

(directly or indirectly) acquire, or have the right to acquire, from FNF and/or one or more direct or indirect holders of outstanding shares of FNF equity interests, equity interests that, when combined with any other changes in ownership of FNF equity interests, causes the Redemption to be a taxable event to FNF as a result of the application of Section 355(e) of the Code or to be a taxable event as a result of a failure to satisfy the requirements described under  Treasury Regulation Sections 1.355-(2)(c) or (d); provided, however, the term “Disqualifying Action” shall not include any action (i) taken on or prior to the Redemption or (ii) required or expressly permitted under any Transaction Document or that is undertaken pursuant to the Restructuring.

 

Extraordinary Transaction shall mean any action that is not in the ordinary course of business, but shall not include any action that is undertaken pursuant to the Restructuring.

 

Final Determination shall have the meaning given to the term “determination” by Section 1313 of the Code with respect to United States federal Tax matters and with respect to foreign, state and local Tax matters Final Determination shall mean any final settlement with a relevant Tax Authority that does not provide a right to appeal or any final decision by a court with respect to which no timely appeal is pending and as to which the time for filing such appeal has expired.  For the avoidance of doubt, a Final Determination with respect to United States federal Tax matters shall include any formal or informal settlement entered into with the IRS with respect to which the taxpayer has no right to appeal.

 

FNF shall have the meaning given in the Preamble.

 

FNF Consolidated Group shall mean the affiliated group of corporations within the meaning of Section 1504(a) of the Code of which FNF is the common parent corporation, and any other group filing consolidated, combined or unitary Tax Returns under state, local or foreign Law that includes at least one member of the FNF Group, on the one hand, and at least one member of the Splitco Group, on the other hand.

 

FNF Group shall mean, individually and collectively, as the case may be, FNF and each of its present and future direct and indirect subsidiaries, including any corporations that would be members of the affiliated group of which FNF is the common parent corporation if they were includible corporations under Section 1504(b) of the Code (in each case, including any successors thereof), other than a member of the Splitco Group.

 

Indemnified Party shall mean any Person which is seeking indemnification from an Indemnifying Party pursuant to the provisions of this Agreement.

 

Indemnifying Party shall mean any Person from which an Indemnified Party is seeking indemnification pursuant to the provisions of this Agreement.

 

IRS shall mean the United States Internal Revenue Service.

 

Opinion shall mean an opinion obtained by Splitco (at its sole expense) in form and substance reasonably satisfactory to FNF providing that the completion of a proposed action by the Splitco Group (or any member thereof) prohibited by Section 5.1(a) or (b) should not

 

2

 

affect the Tax-Free Status of the Transactions. Any Opinion shall be delivered by a nationally recognized U.S. tax advisor reasonably acceptable to FNF.

 

Passthrough Tax Return shall mean an information Tax Return filed by an entity in which Splitco directly or indirectly owns an interest, which Tax Return reports Taxes that flow through and are or will be required to be reported on a Tax Return of a member of the FNF Group.

 

Person shall mean and includes any individual, corporation, company, association, partnership, joint venture, limited liability company, joint stock company, trust, unincorporated organization, or other entity.

 

Post-Redemption Taxable Period shall mean a taxable period that begins after the Redemption Date, and, in the case of any Straddle Period, the portion of such Straddle Period beginning the day after the Redemption Date.

 

Pre-Redemption Taxable Period shall mean a taxable period that ends on or before the Redemption Date, and, in the case of any Straddle Period, the portion of such Straddle Period ending on the Redemption Date.

 

Redemption shall have the meaning given in the Recitals.

 

Redemption Date shall mean the date on which the Redemption shall be effected.

 

Refund shall mean any refund of Taxes, including any reduction in liability for such Taxes by means of a credit, offset or otherwise.

 

Reorganization Agreement shall mean the Reorganization Agreement by and between FNF and Splitco, dated as of November 17, 2017.

 

Restricted Period shall mean the period commencing upon the Redemption Date and ending at the close of business on the first day following the second anniversary of the Redemption Date.

 

Restructuring shall mean the Contribution and the Redemption.

 

Ruling shall mean a private letter ruling, in form and substance reasonably satisfactory to FNF, providing that the completion of a proposed action by the Splitco Group (or any member thereof) prohibited by Section 5.1(a) or (b) would not affect the Tax-Free Status of the Transactions.

 

Safe Harbor VIII Person shall mean an employee, independent contractor or director of any member of the Splitco Group, or any other Person, in each case, who is permitted to receive Splitco stock under Safe Harbor VIII in Treasury Regulations Section 1.355-7(d).

 

Splitco shall have the meaning given in the Preamble.

 

3

 

Splitco Group shall mean, individually and collectively, as the case may be, Splitco and each of its present and future direct and indirect subsidiaries, including any corporations that would be members of the affiliated group of which Splitco is the common parent corporation if they were includible corporations under Section 1504(b) of the Code (in each case, including any successors thereof).

 

Splitco Tax Liability shall mean any Splitco Liability relating to Taxes, whether owed to a Tax Authority or to FNF, including in respect of any reduction in Taxes attributable to use of a Tax Item that constitutes an FNF Retained Asset.

 

Straddle Period shall mean a taxable period that begins on or before and ends after the Redemption Date.

 

Tax or Taxes shall mean all taxes, charges, fees, imposts, levies or other assessments, including, without limitation, all net income, gross receipts, capital, sales, use, gains, ad valorem, value added, transfer, franchise, profits, inventory, capital stock, license, withholding, payroll, employment, social security, unemployment, excise, severance, stamp, occupation, property and estimated taxes, custom duties, fees, assessments and charges of any kind whatsoever, together with any interest and any penalties, fines, additions to tax or additional amounts imposed by any Tax Authority and shall include any transferee liability in respect of taxes.

 

Tax Authority shall mean the IRS and any other domestic or foreign governmental authority or any subdivision, agency, commission or entity thereof or any quasi-governmental or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax.

 

Tax Detriment shall mean an increase in the Tax liability (or reduction in Refund or credit or item of deduction or expense, including any carryforward) of a taxpayer (or of a consolidated, combined or unitary Tax group of which it is a member) for any taxable period.

 

Tax-Free Status of the Transactions shall mean the qualification of the Contribution and the Redemption as a reorganization within the meaning of Section 368(a) of the Code and a distribution to which Section 355 of the Code applies and in which the Splitco Common Stock distributed is “qualified property” under Section 361(c) of the Code.

 

Tax Item shall mean any item of income, gain, loss, deduction, expense or credit, or other attribute that may have the effect of increasing or decreasing any Tax.

 

Tax Notice shall have the meaning given to such term in Section 4.3.

 

Tax Return shall mean any return, report, certificate, form or similar statement or document (including any related or supporting information or schedule attached thereto and any information return, or declaration of estimated Tax) supplied or required to be supplied to, or filed with, a Tax Authority in connection with the payment, determination, assessment or collection of any Tax or the administration of any Laws relating to any Tax and any amended Tax return or claim for Refund.

 

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Transfer Taxes shall mean all sales, use, transfer, real property transfer, intangible, recordation, registration, documentary, stamp or similar Taxes imposed on the Contribution or Redemption.

 

Transaction Documents shall mean this Agreement and the Reorganization Agreement.

 

Transaction Taxes shall mean any Tax Detriment incurred by FNF, Splitco or any of their respective Affiliates as a result of the Contribution or the Redemption failing to qualify as a reorganization within the meaning of Section 368(a) of the Code and a distribution to which Section 355 of the Code applies or corresponding provisions of other applicable Laws with respect to Taxes.

 

Treasury Regulations shall mean the final and temporary (but not proposed) income Tax regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations).

 

1.2          Capitalized terms not otherwise defined in this Agreement shall have the meaning ascribed to them in the Reorganization Agreement.

 

ARTICLE II

 

TAX RETURNS, INDEMNIFICATION AND PAYMENT

 

2.1          Preparation of Tax Returns.

 

(a)           FNF shall prepare and timely file, or cause to be prepared and timely filed, taking into account applicable extensions, all Tax Returns of each FNF Consolidated Group for taxable periods beginning on or before the Redemption Date.

 

(b)           After the Redemption Date, Splitco shall prepare and timely file, or cause to be prepared and timely filed, taking into account all applicable extensions, all Passthrough Tax Returns to the extent that Splitco possesses the ability to prepare and file, or to cause the preparation and filing of, such Tax Returns, whether through express provisions of the governing documents, ownership interest or otherwise, and all such Tax Returns shall be prepared on a basis consistent with past practices and prior Tax reporting positions.  Splitco shall provide to FNF, (i) at least 30 days prior to the applicable deadline for filing of any such Tax Return, and (ii) as soon as practical, in the case of any other Passthrough Tax Return in respect of which Splitco possesses review or approval rights, whether through express provisions of the governing documents, ownership interest or otherwise, a copy of such Tax Return, along with supporting workpapers, for FNF’s review and comment, and to the extent FNF has any comments with respect to such Tax Returns, Splitco shall incorporate, or cause to be incorporated, such comments in such Tax Returns.

 

(c)           Notwithstanding anything to the contrary in this Agreement, for all Tax purposes, the parties shall report any Extraordinary Transactions that are caused or permitted to occur by Splitco or any of its respective subsidiaries on the Redemption Date after the

 

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completion of the Restructuring as occurring on the day after the Redemption Date pursuant to Treasury Regulations Section 1.1502-76(b)(1)(ii)(B) or any similar or analogous provision of state, local or foreign Law.  The parties hereto agree that neither party will make a ratable allocation election under Treasury Regulations Sections 1.1502-76(b)(2)(ii)-(iii ) and 1.706-4(a)(3) or any other similar provision of state or local Law, and all allocations between the Pre-Redemption Taxable Period and the Post-Redemption Taxable Period shall be made on a “closing of the books method.”

 

2.2          Tax Attributes.  Tax attributes for Pre-Redemption Taxable Periods and any Straddle Period shall be allocated to the members of the FNF Group and the members of the Splitco Group, as applicable, in accordance with the Code and Treasury Regulations (and any applicable state, local and foreign Laws or regulations).  FNF shall determine the amounts of such attributes as of the Redemption Date, and the parties hereby agree to compute all Tax liabilities for taxable years ending after the Redemption Date consistently with that determination.

 

2.3          Indemnification by FNF.  FNF hereby covenants and agrees, on the terms and subject to the limitations set forth in this Agreement, to pay (or cause to be paid) and, from and after the Closing, to indemnify, defend and hold harmless the Splitco Group from and against any Losses incurred by the Splitco Group, to the extent arising out of or relating to (i) any Taxes pursuant to Treasury Regulations Section 1.1502-6 (or comparable provision under any other applicable Law) by reason of a member of Splitco having been a member of an FNF Consolidated Group on or prior to the Redemption Date, excluding any Taxes described in Section 2.4, (ii) any reduction in a Tax payable by the FNF Group by reason of the use or offset of any Tax Item that constitutes a Splitco Asset, but, for the avoidance of doubt, without duplication of any prior payment or other accrual, and (iii) any Taxes that arise from or are attributable to a Disqualifying Action.

 

2.4          Indemnification by Splitco.  Splitco hereby covenants and agrees, on the terms and subject to the limitations set forth in this Agreement, to pay (or cause to be paid) and, from and after the Closing, to indemnify, defend and hold harmless the FNF Group from and against any Losses incurred by the FNF Group, to the extent arising out of or relating to (i) any Splitco Tax Liability, but, for the avoidance of doubt, without duplication of any prior payment or other accrual, (ii) any Transaction Taxes, (iii) any Taxes arising as a result of the Restructuring, and (iv) all Transfer Taxes, except, in each case, for Taxes that arise from or are attributable to a Disqualifying Action.

 

2.5          Indemnity Amount.  The amount of any indemnification payment pursuant to this Agreement shall be reduced by the amount of any reduction in Taxes actually realized by the Indemnified Party as a result of the event giving rise to the indemnification payment by the end of the taxable year in which the indemnity payment is made, and shall be increased if and to the extent necessary to ensure that, after all required Taxes on the indemnity payment are paid (including Taxes applicable to any increases in the indemnity payment under this Section 2.5), the Indemnified Party receives the amount it would have received if the indemnity payment was not taxable.

 

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2.6          Payment.  If the Indemnifying Party is required to indemnify the Indemnified Party pursuant to Article II, the Indemnified Party shall submit its calculations of the amount required to be paid pursuant to this Article II (which shall be net of any Tax benefit realized by the Indemnified Party) showing such calculations in sufficient detail so as to permit the Indemnifying Party to understand the calculations.  Subject to the following sentence, the Indemnifying Party shall pay to the Indemnified Party, no later than ten (10) Business Days after the Indemnifying Party receives the Indemnified Party’s calculations, the amount that the Indemnifying Party is required to pay the Indemnified Party pursuant to Article II.  If the Indemnifying Party disagrees with such calculations, it must notify the Indemnified Party of its disagreement in writing within ten (10) Business Days of receiving such calculations.  Any dispute regarding such calculations shall be resolved in accordance with Section 6.12 of this Agreement.

 

2.7          Penalties, Additions to Tax and Interest.  Penalties, additions to Tax and interest on any Tax deficiencies or overpayments will be allocated as the underlying deficiencies or overpayments are allocated under this Agreement.

 

2.8          Characterization of Payments.  For all Tax purposes, FNF and Splitco agree to treat (i) any amount payable with respect to any Tax under this Agreement as occurring immediately prior to the Redemption, as an inter-company distribution or a contribution to capital, as the case may be and (ii) any payment of interest or non-federal Taxes by or to a Tax Authority as taxable or deductible, as the case may be, to the party entitled under this Agreement to retain such payment or required under this Agreement to make such payment, in either case except as otherwise mandated by applicable Law.

 

2.9          Time Limits.  Any claim under this Article II with respect to a Tax liability must be made no later than thirty (30) days after the expiration of the applicable statute of limitations (including any extensions thereof) for assessment of such Tax liability.

 

2.10        Payment of Transfer Taxes.  All Transfer Taxes shall be borne solely by Splitco. The party required by applicable Law shall remit payment for any Transfer Taxes and duly and timely file any related Tax Returns, subject to any indemnification rights it may have against the other party, which shall be paid in accordance with this agreement.

 

ARTICLE III

 

COOPERATION AND RECORD RETENTION

 

3.1          Cooperation; Maintenance and Retention of Records.  FNF and Splitco shall, and shall cause the FNF Group and the Splitco Group respectively to, provide the requesting party with such assistance and documents as may be reasonably requested by such party in connection with (i) the preparation of any Tax Return of any member of the FNF Group or the Splitco Group with respect to a Pre-Redemption Taxable Period, (ii) the conduct of any audit or other proceeding relating to liability for, Refunds of or adjustments with respect to Taxes in a Pre-Redemption Taxable Period attributable to any member of the FNF Group or the Splitco Group and (iii) any matter relating to the Restructuring.  FNF and Splitco shall retain or cause to be retained all Tax Returns, schedules and workpapers, and all material records or other

 

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documents relating thereto, until the expiration of the statute of limitations (including any waivers or extensions thereof) of the taxable periods to which such Tax Returns and other documents relate or until the expiration of any additional period that any party reasonably requests, in writing, with respect to specific material records or documents.  A party intending to destroy any material records or documents shall provide the other party with reasonable advance notice and the opportunity to copy or take possession of such records and documents.  The parties hereto will notify each other in writing of any waivers or extensions of the applicable statute of limitations that may affect the period for which the foregoing records or other documents must be retained.

 

ARTICLE IV

 

REFUNDS, CARRYBACKS AND AUDITS

 

4.1          Refunds of Taxes.  FNF shall be entitled to all Refunds relating to Taxes (plus any interest thereon received with respect thereto from the applicable Tax Authority) for which FNF is or may be liable pursuant to Article II of this Agreement, and Splitco shall be entitled to all Refunds relating to Taxes (plus any interest thereon received with respect thereto from the applicable Tax Authority) for which Splitco is or may be liable pursuant to the provisions of Article II of this Agreement.  A party receiving a Refund to which another party is entitled pursuant to this Agreement shall pay the amount to which such other party is entitled (plus any interest thereon received with respect thereto from the applicable Tax Authority less any Taxes payable by reason of the receipt of such Refund and interest) within ten (10) days after the receipt of the Refund.

 

4.2          Carrybacks.  Unless otherwise required by applicable Law, neither Splitco nor any of the members of the Splitco Group shall carry back any Tax Item from a Post-Redemption Taxable Period to any Pre-Redemption Taxable Period of an FNF Consolidated Group, unless the member is not permitted under applicable Law to forgo carrying back the Tax Item before it carries the Tax Item forward.  Notwithstanding any other provision in this Agreement to the contrary, FNF shall be entitled to any Refunds resulting from a carry back permitted by the prior sentence.

 

4.3          Audits and Proceedings.

 

(a)           If after the Closing Date, an Indemnified Party or any of its Affiliates receives any notice, letter, correspondence, claim or decree from any Tax Authority (a “Tax Notice”) and, upon receipt of such Tax Notice, believes it has suffered or potentially could suffer any Tax liability for which it is indemnified pursuant to Sections 2.3 or 2.4, the Indemnified Party shall deliver such Tax Notice to the Indemnifying Party within ten (10) days of the receipt of such Tax Notice; provided, however, that the failure of the Indemnified Party to provide the Tax Notice to the Indemnifying Party shall not affect the indemnification rights of the Indemnified Party pursuant to Sections 2.3 or 2.4, except to the extent that the Indemnifying Party is prejudiced by the Indemnified Party’s failure to deliver such Tax Notice.  Subject to Section 4.3(b) below, the Indemnifying Party shall have the right to (i) handle, defend, conduct and control, at its own expense, any Tax audit or other proceeding that relates to such Tax Notice and (ii) compromise or settle any such Tax audit or other proceeding that it has the authority to

 

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control pursuant to this Section 4.3(a) subject, in the case of a compromise or settlement that could materially adversely affect the Indemnified Party, to the Indemnified Party’s consent, which consent shall not be unreasonably withheld, conditioned or delayed.

 

(b)           Notwithstanding Section 4.3(a), (i) Splitco and FNF shall have the right to jointly control any audit or proceeding relating to Transaction Taxes or the Tax-Free Status of the Transactions, and (ii) neither Splitco nor FNF shall compromise or settle any such audit or proceeding without the other party’s consent (such consent not to be unreasonably withheld, conditioned or delayed).

 

(c)           If the Indemnifying Party fails within a reasonable time after notice to defend any Tax Notice or the resulting audit or proceeding as provided herein, the Indemnified Party shall control such audit or proceeding; provided, however, that (i) the Indemnified Party shall keep the Indemnifying Party reasonably informed as to the status of such audit or proceedings (including by providing copies of all notices received from the relevant Tax Authority), (ii) the Indemnifying Party shall have the right to review and comment on any correspondence from the Indemnified Party to the relevant Tax Authority prior to submission of such correspondence to the Tax Authority and (iii) the Indemnified Party shall not settle or compromise any such audit or proceeding without the Indemnifying Party’s prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed).  The Indemnifying Party shall pay to the Indemnified Party the amount of any Tax liability within ten (10) days after a Final Determination of such Tax liability.

 

ARTICLE V

 

TAX-FREE STATUS OF THE TRANSACTIONS

 

5.1          Covenants.

 

(a)           During the Restricted Period, none of Splitco or any of its subsidiaries (or any officers or directors acting on behalf of Splitco or its subsidiaries, or any Person acting with the implicit or explicit permission of any such officers or directors) shall take or fail to take any reasonably required action if such action (or the failure to take such reasonably required action) would (i) be inconsistent with any covenant or representation made by Splitco or any of its subsidiaries in any Transaction Document, or (ii) prevent, or be reasonably likely to prevent, the Contribution or the Redemption from qualifying for the intended Tax-Free Status of the Transactions.

 

(b)           Without limiting the generality of the foregoing, during the Restricted Period, subject to Section 5.1(c) and (d), none of Splitco or any of its subsidiaries (or any officers or directors acting on behalf of Splitco or its subsidiaries, or any Person acting with the implicit or explicit permission of any such officers or directors) shall:

 

(i)            enter into any agreement, understanding, arrangement or substantial negotiations, as defined in Treasury Regulations Section 1.355-7(h), pursuant to which any Person or Persons would (directly or indirectly) acquire, or have the right to acquire, Splitco equity interests.  For these purposes, an acquisition of Splitco equity

 

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interests shall include any recapitalization, repurchase or redemption of Splitco equity interests, any issuance of Splitco equity interests (including any nonvoting stock) or an instrument exchangeable or convertible into such an equity interest (whether pursuant to an exercise of stock options, as a result of a capital contribution or otherwise), any option grant, any amendment to the certificate of incorporation (or other organizational document) of Splitco, or any other action (whether effected through a shareholder vote or otherwise) affecting the voting rights of Splitco equity interests (including through the conversion of any such equity interests into another class of equity interests); or

 

(ii)           sell or transfer, or cease to actively engage, in its active trade or business for purposes of Section 355(b) of the Code.

 

(c)           Notwithstanding the foregoing, Splitco and its Affiliates may take any action prohibited by the foregoing if: (i) FNF receives prior written notice describing the proposed action in reasonable detail, and (ii) Splitco delivers to FNF either (x) an Opinion or (y) a Ruling.  For the avoidance of doubt, the FNF Group’s right to indemnification for Transaction Taxes shall be determined without regard to whether Splitco satisfies any or all of the requirements of this Section 5.1(c).

 

(d)           Notwithstanding any provision of this Agreement to the contrary, Splitco shall be permitted to issue to a Safe Harbor VIII Person reasonable Splitco equity based compensation for services rendered to a member of the Splitco Group, including issuing options to acquire Splitco Common Stock, issuing Splitco Common Stock upon the exercise of such an option and issuing restricted Splitco Common Stock.

 

5.2          Cooperation and Other Covenants.

 

(a)           Notice of Subsequent Information.  Each of FNF, on the one hand, and Splitco, on the other hand, shall furnish each other with a copy of any document or information that could be expected to have an impact on the Tax-Free Status of the Transactions.

 

(b)           Post-Closing Cooperation.  No member of the Splitco Group shall file any request for a Ruling without the prior written consent of FNF if a favorable Ruling would be reasonably likely to have the effect of creating any actual or potential obligations of, or limitations on, any member of the FNF Group.

 

ARTICLE VI

 

MISCELLANEOUS

 

6.1          Termination of Prior Tax Matters Agreements; Regulatory Agreements.

 

(a)           This Agreement shall take effect on the Redemption Date and shall replace all other Tax sharing, indemnification and similar agreements, whether or not written, in respect of any Taxes between or among the FNF Group on the one hand and the Splitco Group on the other (other than this Agreement and any other Transaction Document), except to the extent prohibited by applicable regulatory requirements as of the Redemption (“Regulatory

 

10

 

Agreements”).  All such replaced agreements, other than Regulatory Agreements, shall be canceled as of the Redemption, and any rights or obligations of the FNF Group or the Splitco Group existing thereunder shall be fully and finally settled without any payment by any party thereto.  Following the Redemption, the parties hereto shall cooperate with each other to terminate all Regulatory Agreements and to make all regulatory filings necessary in connection therewith.

 

(b)           If following the Redemption, any member of the FNF Group or the Splitco Group, as applicable, is required to make any payment to a member of the other group pursuant to any Regulatory Agreement (a “Regulatory Payment”), the party hereto that is a member of the same group as the recipient of the Regulatory Payment shall promptly make a payment to the other party hereto in an amount equal to the Regulatory Payment (a “Repayment”) so that each group, on a consolidated basis, will be in the same economic position that such group would be in if this Agreement were the only tax sharing or tax allocation agreement or arrangement between or among the members of the FNF Group and the members of the Splitco Group. Any obligation of either party to make a Repayment may be satisfied, in whole or in part, through offsetting the obligation to make a Repayment against any entitlement of such party to receive payment from the other party pursuant to any provision of this Agreement.

 

6.2          Specific Performance.  Each party hereto hereby acknowledges that the benefits to the other party of the performance by such party of its obligations under this Agreement are unique and that the other party hereto is willing to enter into this Agreement only in reliance that such party will perform such obligations, and agrees that monetary damages may not afford an adequate remedy for any failure by such party to perform any of such obligations. Accordingly, each party hereby agrees that the other party will have the right to enforce the specific performance of such party’s obligations hereunder and irrevocably waives any requirement for securing or posting of any bond or other undertaking in connection with the obtaining by the other party of any injunctive or other equitable relief to enforce their rights hereunder.

 

6.3          No Third-Party Beneficiary Rights.  Nothing expressed or referred to in this Agreement is intended or will be construed to give any Person other than the parties hereto and their respective successors and assigns any legal or equitable right, remedy or claim under or with respect to this Agreement, or any provision hereof, it being the intention of the parties hereto that this Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the parties to this Agreement and their respective successors and assigns.

 

6.4          Notices.  All notices and other communications hereunder shall be in writing and shall be delivered in person, by facsimile (with confirming copy sent by one of the other delivery methods specified herein), by overnight courier or sent by certified, registered or express air mail, postage prepaid, and shall be deemed given when so delivered in person, or when so received by facsimile or courier, or, if mailed, three (3) calendar days after the date of mailing, as follows:

 

If to FNF, to:

 

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Fidelity National Financial, Inc.
 601 Riverside Avenue

Jacksonville, Florida 32204
 Attention:  General Counsel

Facsimile:  (904) 633-3055

 

If to Splitco, to:

 

Cannae Holdings, Inc.
 1701 Village Center Circle

Las Vegas, Nevada 89134

Attention: General Counsel
 Facsimile: (702) 323-7334

 

or to such other address as the party to whom notice is given may have previously furnished to the other party in writing in the manner set forth above.

 

6.5          Governing Law; Jurisdiction; Waiver of Jury Trial.

 

(a)           This Agreement shall be governed by, and construed in accordance with, the Laws of the State of Delaware, applicable to contracts executed in and to be performed entirely within that State, without giving effect to any choice or conflict of laws provisions or rules that would cause the application of the laws of any other jurisdiction.

 

(b)           Each of the parties hereto irrevocably agrees that any legal action or proceeding with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by the other party hereto or its successors or assigns, shall be brought and determined exclusively in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, any state or federal court within the State of Delaware).  Each of the parties hereto hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any court other than the aforesaid courts.  Each of the parties hereto hereby irrevocably waives, and agrees not to assert as a defense, counterclaim or otherwise, in any action or proceeding with respect to this Agreement, (i) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve in accordance with this Section 6.5, (ii) any claim that it or its property is exempt or immune from the jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (iii) to the fullest extent permitted by the applicable Law, any claim that (x) the suit, action or proceeding in such court is brought in an inconvenient forum, (y) the venue of such suit, action or proceeding is improper or (z) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.

 

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Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 6.4 shall be deemed effective service of process on such party.

 

(c)           EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR THE ACTIONS OF ANY PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

6.6          Severability.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof. Any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  Upon a determination that any provision of this Agreement is prohibited or unenforceable in any jurisdiction, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the provisions contemplated hereby are consummated as originally contemplated to the fullest extent possible.

 

6.7          Amendments; Waivers.  Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective.  No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  Except as otherwise provided herein, the rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by applicable Law.  Any consent provided under this Agreement must be in writing, signed by the party against whom enforcement of such consent is sought.

 

6.8          No Strict Construction; Interpretation.

 

(a)           The parties hereto each acknowledge that this Agreement has been prepared jointly by the parties hereto and shall not be strictly construed against any party hereto.

 

(b)           When a reference is made in this Agreement to an Article or Section, such reference shall be to an Article of, or a Section of, this Agreement unless otherwise indicated.  The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”.  The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein.  The definitions contained in this

 

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Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neutral genders of such term.  Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein.  References to a Person are also to its permitted successors and assigns and references to a party means a party to this Agreement.

 

6.9          Headings.  The headings contained in this Agreement are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement.

 

6.10        Counterparts.  This Agreement may be executed in two or more identical counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same agreement. The Agreement may be delivered by facsimile transmission or email scan transmission of a signed copy thereof.

 

6.11        Confidentiality.  Each of FNF and Splitco shall hold, and each of the FNF Group and the Splitco Group shall use its reasonable best efforts to hold, in strict confidence all information concerning the other party obtained by it prior to the Redemption Date or furnished to it by such other party pursuant to this Agreement pursuant to and in accordance with the terms of Section 4.5 of the Reorganization Agreement.

 

6.12        Dispute Resolutions.  Resolution of any and all disputes between the parties arising under this Agreement that relates to any provision of Tax Law shall be settled by a nationally recognized accounting firm mutually acceptable to the parties, and the resolution of such accounting firm shall be binding on the parties.  Each of FNF and Splitco shall bear half of the fees, costs and expenses of the accounting firm.

 

6.13        Effective Date.  This Agreement shall become effective only upon the occurrence of the Redemption.

 

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The parties have caused this Agreement to be duly executed by their respective authorized officers as of the date first above written.

 

	
 
    	
FIDELITY NATIONAL FINANCIAL, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Michael L Gravelle
    
	
 
    	
 
    	
Name:
    	
Michael L. Gravelle
    
	
 
    	
 
    	
Title:
    	
Executive Vice President, General Counsel   and Corporate Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CANNAE HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Michael L Gravelle
    
	
 
    	
 
    	
Name:
    	
Michael L. Gravelle
    
	
 
    	
 
    	
Title:
    	
Executive Vice President, General Counsel   and Corporate Secretary
    

 

[SIGNATURE PAGE TO TAX MATTERS AGREEMENT]

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