Document:

EXHIBIT
HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED WITH [* * * *] AND HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

AMENDED
AND RESTATED LICENSE AGREEMENT

 

This
AMENDED AND RESTATED LICENSE AGREEMENT (this “Agreement”), dated as of this 31st day of May, 2018 (“Effective
Date”), is entered into by and between RICH MARKS, LLC, a Delaware limited liability company “Licensor”),
Redneck Riviera Whiskey Co., LLC, a Tennessee limited liability company
(“Licensee”), John D. RICH TISA Trust U/A/D MARCH 27, 2018, DWIGHT
P. WILeS, TRUSTEE (“Trust”), and EASTSIDE DISTILLING,
INC., a corporation organized under the laws of the State of Nevada (“Former Licensee”).

 

WHEREAS,
Licensor and Former Licensee originally entered into a license agreement dated October 20, 2017 (“License Agreement”)
wherein Licensor granted to Former Licensee a license to use the Authorized Trademark (as defined therein) during the Term (as
defined therein) and within the Territory (as defined therein) solely in order to produce, manufacture, distribute and promote
the Authorized Products (as defined therein), subject to the terms and conditions contained therein;

 

WHEREAS,
the License Agreement also granted to Licensor certain consideration rights (“Consideration Rights”) for the
use of Authorized Property;

 

WHEREAS,
in order to comply with the requirements set forth by the Tennessee Alcoholic Beverage Commission to conform to the requirements
of Tennessee Code Annotates Section 57-4-110, in an assignment of license rights agreement dated as of the Effective Date, Licensor
assigned all of its Consideration Rights as set forth in the License Agreement to the Trust;

 

WHEREAS,
the parties to this Agreement acknowledge and agree that the Former Licensee’s subsidiary, Licensee, hereby replaces Former
Licensee as the Licensee in this Agreement;

 

WHEREAS,
Licensor, the Trust, Licensee and Former Licensee desire to amend the License Agreement by entering into this Agreement; and

 

WHEREAS,
this Agreement hereby supersedes and replaces the License Agreement.

 

NOW,
THEREFORE, in consideration of the mutual promises, covenants and conditions contained herein, it is hereby agreed as follows:

 

1.
Definitions. Capitalized terms used herein that are not otherwise defined in context shall have the following meaning:

 

“Artist”
or “JR” means country music singer-songwriter John Rich.

 

“Authorized
Products” means, collectively, the Distilled Spirits Products, the Promotional Materials and the Promotional Items (each
as defined below).

 

“Authorized
Property” means, collectively, the Authorized Trademark and the Brand Intellectual Property (as defined below).

 

“Authorized
Trademark” means that trademark registration identified on Exhibit D attached hereto and made a part hereof.

 

“Brand
Intellectual Property” means any and all Authorized Trademark-related (i) product names, product packaging, slogans,
designs, bottle designs, logos, trade dress, (ii) any and all copyrights and copyrightable works, (iii) any and all product formulas,
recipes, formulations and blends (collectively, the “Product Formulations”), and (iv) all intellectual property
rights and goodwill associated with (i) through (iii) above in any form throughout the world, including any registrations or applications
relating to the foregoing and any extensions, modifications, renewals, reissuance, continuation or continuation in part, reexamination
and improvements thereof.

 

    	 

    	 

    

 

“Case”
means a package containing [****] equivalent of alcoholic beverages.

 

“Control
Group” means those individuals and entities holding in the aggregate, as of the Effective Date, at least fifty percent
(50%), directly or indirectly, of the aggregate issued and outstanding capital stock of Licensee on a fully diluted basis.

 

“Contract
Date” means January 1, 2018.

 

“Contract
Year” means each successive sequential period of twelve (12) months occurring during the Term, with the first of such
period commencing on the Contract Date and expiring twelve (12) months thereafter.

 

“Distilled
Spirits Products” means distilled spirits products produced by Licensee, and those other alcoholic beverage products
agreed to in a Product Extension Amendment (as defined below), as provided for below, bearing some form of the Authorized Trademark
on the label of each such Authorized Product (as permitted herein), and consisting solely of distilled spirits intended for human
consumption; provided, however, notwithstanding the foregoing, “Distilled Spirits Products” shall
not mean and shall not be deemed to include, for any purpose hereunder, unless a Product Extension Amendment is agreed
in advance and in writing with respect thereto in each instance: (i) wine (regardless of alcohol by content); (ii) any cider or
malt beverage products (including, without limitation, beer, sake, hard lemonade, etc.); (iii) any beverage that has distilled
spirits as a non-primary ingredient, including any cordial, aperitif or other similar distilled spirits beverage; (iv) any mixed
or hybrid alcoholic beverages consisting of, based upon, flavored with, or derived from, any of the foregoing items (i) –
(iii), however marketed or branded; or (Iv) any condiment, food or non-alcoholic beverage products intended or marketed for consumption
in connection with the consumption of distilled spirits products, including, without limitation, mixers, mixes, juices and/or
salts. Licensee currently intends to launch the following initial products within the first [****] of the Effective Date: [****].
For the avoidance of doubt, until such time as a Product Extension Agreement is fully executed by the parties hereto with respect
to a particularly defined item of Distilled Spirits Products, Licensor and Artist shall
be under no restriction whatsoever respecting entering into any transaction or arrangement regarding any item set forth in (i)
– (iv) of this definition of Distilled Spirits Products.

 

“Distribution
Channels” shall mean the distribution channel(s) set forth on Exhibit A attached hereto and made a part hereof.

 

“Licensee
Disposition” means the first to occur of any of the following events:

 

(a)
Licensee assigns this Agreement to a wholly or partially owned subsidiary (by operation of law, change of control or otherwise)
without the prior written permission of Licensor, which shall not be unreasonably withheld;

 

(b)
Licensee sells, assigns or otherwise disposes, whether in a single sale or series of related transactions, all or substantially
all of its assets;

 

(c)
the acquisition, directly or indirectly, in any transaction or any number of transactions, by an individual or Group (as defined
by SEC rules), who is not an owner of at least five percent (5%) of the total voting power of Licensee as of the Effective Date,
of at least fifty-one percent (51%) of the total voting power of Licensee; or

 

(d)
the consummation of any merger, consolidation or business combination or similar transaction involving Licensee in which Licensee
is not the continuing or surviving corporation, without the prior written permission of Licensor, which shall not be unreasonably
withheld.

 

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“Licensee
Know-How” means any trade secrets, know-how, methods, processes, technical information, directions, instructions, protocols,
procedures, techniques, raw material sources, concepts and ideas owned, as of the Effective Date, by Licensee and used for the
manufacture, bottling and labeling of distilled spirits products; provided, however, that any of the foregoing shall
only constitute “Licensee Know-How” to the extent not known to Licensor as of the Effective Date or not otherwise
generally known in the distilled spirits industry.

 

“Product
Extension Amendment” means respecting each new possible, proposed distilled spirit alcoholic beverage product not constituting
an Initial Product, a written amendment to this Agreement fully executed by the parties hereto that, at a minimum, contains the
following: (a) business case for market need; (b) sales plans; (c) marketing spend allotment (including
an increase in the Minimum JR Promotional Allowance therefor); and (d) proposed packaging, design and flavor profile.

 

“Promotional
Items” means merchandise, bearing one or more items of the Authorized Property, used for advertising and promotion solely
the Distilled Spirits Products (e.g. hats, t-shirts, glassware and similar items). All Promotional Items will either be given
away as free, promotional, premium items or sold solely in tasting rooms or online webstores wholly owned by Licensee provided
the parties agree in writing upon a royalty to be paid to Licensor therefor prior to any such sales, unless otherwise agreed to
by the parties hereto pursuant to a separate written license agreement. In the event Licensee engages any third party to create
Promotional Items, Licensee shall enter into a work-for-hire (in a form approved by Licensor) assigning all rights to any Promotional
Items to Licensee.

 

“Promotional
Materials” means print advertisements, online, television, radio spots and point of sale materials (at both on and off
premise retail locations) including, without limitation, in connection with any personal appearances which Artist, in his
individual capacity, may make, and with respect to any and all other promotional materials relating to the Authorized Products
occurring during the Term. In the event Licensee engages any third party to create Promotional Materials, Licensee shall enter
into a work-for-hire (in a form approved by Licensor) assigning all rights to any Promotional Materials to Licensee.

 

“Territory”
shall be the United States of America.

 

2.
License Grant.

 

a.
License. Subject to the terms, conditions and obligations hereof (including the exclusivity provisions set forth below),
Licensor hereby grants to Licensee, and Licensee hereby accepts, upon the terms and conditions set forth herein, during the Term
(as defined below) and within the Territory, a non-transferable and non-sublicenseable license to use and exploit the Authorized
Property solely in order to produce, manufacture, distribute, advertise and promote the Authorized Products (the “License”).

 

b.
No Denigration. Neither Licensee nor any distributer, wholesaler or any other third party engaged by Licensee shall denigrate
or permit or allow the denigration of the Authorized Property in connection with the performance of its obligations and rights
under this Agreement, and Licensee shall take any other action not approved by Licensor as provided herein that is harmful or
potentially harmful to or which disparages, ridicules or demeans the goodwill, honor and reputation of Licensor, Artist, or the
Authorized Property.

 

c.
Price Point Consultation. To further protect the value and integrity of the Authorized Trademark and shield it against
denigration resulting from inappropriate pricing of Authorized Products bearing the Authorized Trademark, Licensee agrees to meaningfully
consult with Licensor respecting price points of each of the Distilled Spirits Products hereunder.

 

d.
Limitations. Licensee agrees, during the Term of this Agreement and thereafter, never to challenge or attack the rights
of Licensor in and to the Authorized Trademark or the validity of the License being granted herein. Licensee agrees that it shall
at no time during the Term or thereafter, use or authorize the use of any trademark, trade name or other designation identical
with or confusingly or substantially similar to the Authorized Trademark.

 

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e.
Benefit. Licensee agrees, during the Term of this Agreement and thereafter, that its use of the Authorized Trademark is
solely and entirely governed by this Agreement, and that Licensee shall not acquire any rights whatsoever in or to the Authorized
Trademark other than the rights expressly provided in this Agreement. Licensee agrees and acknowledges that following the expiration
or earlier termination of this Agreement for any reason, Licensee shall not have any right to use for itself in any manner, or
sublicense, the Authorized Trademark to any third party for any purpose, except as specifically provided for in this Agreement
(e.g., during the Sell-Off Period provided in Section 12(b)).

 

f.
No Registration. Licensee agrees that it shall not (and shall insure that no sublicense shall) at anytime, anywhere in
the world, apply for any registration of any element of the Authorized Trademark or any copyright, trademark or other designation
which would adversely affect the ownership of the Authorized Trademark by Licensor or file any document with any governmental
authority to take any action which would affect the ownership of the Authorized Trademark by Licensor.

 

g.
Cooperation. Licensee agrees to cooperate with Licensor in protecting the Authorized Trademark (at Licensor’s cost
and expense) and, for that purpose, Licensee will supply to Licensor from time to time, and at no charge, such samples and information
regarding sales of the Authorized Trademark sold or distributed by Licensee, as reasonably may be requested by Licensor.

 

h.
Sound Recordings/ Musical Compositions. Licensee acknowledges and agrees that no rights are granted herein to use either
any sound recordings containing the performance of Artist or any musical compositions written in whole or in part by Artist).

 

i.
Exclusion. Notwithstanding anything contained herein to the contrary, in no event shall the License granted hereunder be
deemed to include or contain a reference to “Big & Rich” on or in connection with any Authorized Product.

 

j.
Exclusivity.

 

i.
Licensor. Subject to the terms and conditions of this Agreement, except with respect to the Permitted Activities (as defined
below) and provided License is not in breach of this Agreement, Licensor and Artist covenant that within the Territory and commencing
upon the Effective Date and ending upon the expiration or earlier termination of this Agreement, Licensor shall not market or
promote any Distilled Spirits Products under the Authorized Trademark, and Licensor shall not issue a license or authorize any
third party to use or sell, except as specifically provided in this Agreement and otherwise without Licensee’s permission,
any Distilled Spirits Product under the Authorized Trademark. Notwithstanding the foregoing, it is understood and agreed that
(a) Artist may attend and perform at events (e.g., private events, festivals, tours, etc.) that are sponsored by one or more distilled
spirits product brands (and/or their owners and/or distributors), including appearing in public and being photographed at such
sponsored public events, (b) Artist may appear in music videos and/or perform on records produced by other recording artists in
a “featured” capacity, which videos and/or records may include references to and/or depictions of any distilled spirits
product brands as Artist has no control over the content of such videos or records in his capacity as a “featured”
Artist, (c) Artist may own and endorse, in any capacity, directly or indirectly, any entertainment venue, restaurant, bar, spa,
hotel, beach club, grill, nightclub, and/or casino business anywhere where all distilled spirits products receive comparatively
similar prominence, (d) Artist may produce and/or co-write compositions of or with other third party recording artists which productions
or musical compositions may include reference to other distilled spirits products brands; (e) Artist shall not be precluded from
making de-minimis investments in publicly traded competitors of Licensee; and (f) Artist, in his capacity as a Member of “Big
& Rich”, may be sponsored or endorsed by any distilled spirits brand without limitation including respecting tours,
album releases, etc. ((a) – (f), collectively, the “Permitted Activities”). Licensee and Artist shall
be free to engage in whatever business enterprise they desire respecting any of the foregoing.

 

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ii.
Licensee. Licensee agrees that it shall not launch, market or promote any other distilled spirits products bearing the
name, likeness or image of any another male country music artist during the Term of this Agreement, either directly or indirectly,
without the prior express written consent of Licensor.

 

k.
Warrant. The effectiveness of this Agreement (including, without limitation, the grant of the License contained herein)
shall be contingent upon Licensee’s delivery of the following warrants (in a form acceptable
to Licensor): (a) to the Trust or its designee, a warrant for 25,000 shares of Licensee’s
common stock; and (b) to T.J. McDaniel or his designee, a warrant for 5,000 shares of Licensee’s common stock, exercisable
one year after the Effective Date (collectively, the “Warrants”).

 

3.
Term. Unless terminated pursuant to the terms and conditions hereof, the initial period of this Agreement shall commence
as of the Effective Date and shall continue for an initial period of ten (10) years therefrom (the “Initial Period”).
Upon the conclusion of the Initial Period, this Agreement shall automatically renew for one additional ten (10) year period (the
“Automatic Renewal Period”). Thereafter (and only in the event that the Automatic
Renewal Period has occurred, for avoidance of doubt), Licensee shall have the right to renew this Agreement upon written
notice given to Licensor no later than ninety (90) days prior to the expiration of the Automatic Renewal Period for on-going additional
periods of ten (10) years each (each, a “Renewal Period,” and together with the Initial Period and the Automatic
Renewal Period, collectively, the “Term”); provided, however, notwithstanding the foregoing, any and all such
renewals (including, without limitation, the Automatic Renewal Period) shall be subject to, as of the commencement of each Renewal
Period, all of the following: (i) Licensee not then being in breach of this Agreement and (ii) the Annual Case Objective and the
Minimum JR Promotional Allowance having been timely paid in full in each instance.

 

4.
Royalty Upon Licensee Disposition.

 

a.
[****]. Upon and from and after a Licensee Disposition, in consideration of the License granted herein, Licensee shall,
without offset or deduction of any kind or nature and in accordance with the terms and conditions hereof, pay to Trust, per bottle
of Distilled Spirit Product produced for commercialization hereunder, an amount equal to the “[****]” (in accordance
with the amounts and escalating price points) set forth on Exhibit E attached hereto and hereby incorporated herein by
this reference. For the avoidance of doubt, in the event of a Licensee Disposition, Licensee shall not owe Trust a [****] for
any Distilled Spirit Product invoiced for sale before such Licensee Disposition. Upon and from and after a Licensee Disposition,
Licensor in its sole discretion, may terminate the Term immediately upon written notice to Licensee in the event that Licensee
fails to meet any Annual Case Objective (as defined below). If Licensor sends Licensee notice of its intent to so terminate the
Agreement, Licensee shall have an opportunity to cure by, within thirty (30) days of receipt of Licensor’s notice of such
intent to terminate, paying, in full and in immediately available sums, to Trust the difference between the [****] that would
have been paid if Licensee had met the Annual Case Objective (assuming all such items were sold by Licensee during the applicable
period) in the relevant Contract Year and the actual [****] paid to Trust during the relevant Contract Year.

 

b.
Accounting and Payment. Upon and from and after a Licensee Disposition, the [****] shall be paid to Trust on a quarterly
basis in arrears, within thirty (45) days after the end of each calendar quarter during the Term. The [****] shall be accompanied
by a detailed accounting statement and back-up production documentation showing the number of Products produced and the precise
manner in which the [****] was calculated during such calendar quarter.

 

c.
Books and Records. Licensee and any successor or assignee including without limitation, in respect of a Licensee Disposition,
shall maintain invoices and books of account for the production, sale, advertising and promotion of the Authorized Products throughout
the Term and for a period of at least three (3) years thereafter. Such books of account shall be complete and accurate and in
accordance with generally-accepted accounting practices. Licensor, Trust or its designee shall have the right to enter Licensee’s
premises, inspect and photocopy all books and records of Licensee relating to the production, sale, advertising and promotion
of the Authorized Products within five (5) business days after notice to Licensee during the Term and for three (3) years after
the termination or expiration of the Agreement. In the event that underpayments are discovered, Licensee shall immediately render
payment thereof to Trust. If the underpayments are more than five percent (5%), then Licensee shall also reimburse Trust for the
costs of the audit. Licensee shall pay interest at the average prime rate regarding any underpayment from the time period commencing
when the payment should have been made until the date of payment.

 

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5.
Annual Case Objective.

 

a.
Annual Case Objective.

 

i.
Annual Case Objective. Notwithstanding Section 3 above or anything else contained herein to the contrary, the parties hereby
set a requirement to produce, per Contract Year, and measured beginning on the first Authorized Product shipping date, and every
anniversary thereafter, Cases of Authorized Product equal to or exceeding the Annual Case Objective set forth in Section 5(a)(ii)
below (each, an “Annual Case Objective”).

 

ii.
Informational Requirement and Termination Right. In addition to the other informational requirements set forth herein,
Licensee shall provide to Licensor a production report for Case production and sales
occurring in each Contract Year within forty-five (45) days following the applicable Contract Year (the “Annual Production
Report”). The Annual Production Report shall be sent in accordance with Section 16, below. Notwithstanding anything
contained herein to the contrary, in the event that Licensee fails to produce at least as many of the total Authorized Products
in a year than as provided below in an Annual Case Objective, Licensor in its sole discretion, may terminate the Term immediately
upon written notice to Licensee within sixty (60) days from Licensor’s receipt of the applicable Annual Production Report.

 

Annual
Case Objectives: 

 

(a)
[****].

 

b.
Promotional Expenditures. Licensee shall provide to Licensor a report for promotional expenditures (“Promotional
Expenditures”) occurring in each Contract Year of the Term within forty-five (45) days following the applicable Contract
Year (the “Promotional Expenditure Report”). The Promotional Expenditure Report shall be sent in accordance
with Section 16, below.

 

6.
Ownership; Goodwill; Authorized Trademark-Related Whiskey Recipes. 

 

a.
Ownership; Goodwill. Licensee agrees that it shall not contest, deny or dispute the validity of the Authorized Property,
Brand Intellectual Property, or the title of Licensor therein; and shall not in any way, either directly or indirectly,
encourage or assist others in doing so or take any action of any kind inconsistent with the ownership and/or control of all such
intellectual property rights by Licensor. Nothing in this Agreement shall confer upon Licensee a proprietary interest of
any kind in and to the Authorized Property or the Brand Intellectual Property other than
the right to use the Authorized Property strictly in accordance with this Agreement. As between the parties hereto, all goodwill
and any rights arising from Licensee’s use of the Authorized Property hereunder shall inure solely to the benefit of Licensor.

 

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b.
Distilled Spirits Products Formulas. Notwithstanding anything contained herein to the contrary and not in limitation of
any other rights or remedies available to Licensor hereunder, at law or equity, in the event that production and
sale of Authorized Products does not meet any Annual Case Objective described
in Section 5(a) above, Licensee shall immediately deliver to Licensor all cards for all Product Formulations for all Distilled
Spirits Products produced or then in production hereunder.

 

7.
[Intentionally Left Blank.]

 

8.
Quality, Notices, Approvals and Samples.

 

a.
Licensor’s Right of Approval. Licensee acknowledges that the loyalty of Artist’s fans and customers is an asset
of tremendous value to Artist and Licensor. Licensee agrees that all Authorized Products shall be of a quality that is at least
as high as the quality typical of similarly priced alcoholic beverage products in the same product class (i.e., a $[****] authorized
whiskey product will be of a similar quality as a competing $[****] whiskey product). Licensee shall maintain the high professional
standard currently associated with the Authorized Property and do nothing to bring ridicule or scorn on the Authorized Property
or on the Authorized Products. As an essential element and as a material inducement for Licensor’s grant of the License
granted to Licensee herein, Licensee covenants and agrees that the Authorized Products must at all times meet or exceed such standards,
as determined by Licensor.

 

b.
Submission of Proposed Uses for Approval. Licensee shall submit to Licensor for approval samples of each Authorized Product
prior to the manufacture or dissemination thereof. Each Authorized Product shall be submitted with its proposed labeling and/or
packaging, if possible, but no Authorized Product shall be deemed approved unless and until its labeling and packaging are also
approved, if they are submitted separately.

 

c.
Licensor’s Approval of Authorized Products. Licensor shall use its commercially reasonable efforts to send a written
notice of approval or disapproval of each submission as outlined in Section 8.b. promptly following Licensor’s receipt of
the submitted item. Notwithstanding anything to the contrary in this Agreement, failure of Licensee to receive written approval
of any such submitted item, within fifteen (15) days shall constitute disapproval of the Authorized Product. For the avoidance
of doubt, Licensee shall not have the right to use the Authorized Product or any element thereof unless the particular use by
Licensee has been approved by Licensor as provided in this Section 8.c. Licensor acknowledges that time is of the essence and
that these submissions are integral to Licensee’s performing under this Agreement and Licensor shall not unreasonably withhold
or delay approval of, any submission of an Authorized Product reasonably requested by Licensee.

 

d.
Conformity of Authorized Products to Approved Samples. All Authorized Products hereunder shall conform in all respects,
including style, appearance, materials, contents, workmanship and overall quality, to the samples that Licensor has approved in
writing.

 

e.
Withdrawal of Approval. If any Authorized Product fails to conform to the approved sample, then, within seven (7) calendar
days after Licensee’s receipt of written notice to that effect from Licensor, Licensor shall have the right to withdraw
its approval of the Authorized Product(s) by delivery of a further written notice if the failure identified in the initial notice
has not been cured within a further ten (10) calendar days. Licensee shall then, upon receipt of such further notice, cease use
of the particular Authorized Product(s) identified in the notice.

 

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f.
Samples. Upon Licensor’s request, Licensee will furnish to Licensor, without charge, a reasonable number of samples
of each type of Authorized Product, with its usual packaging and labeling, if applicable, to permit Licensor to confirm that Licensor’s
standards are being observed. Licensor or its representatives shall also have the right to visit the plant(s) where the Authorized
Products are made at any time during normal business hours for purposes of quality inspection.

 

g.
Approval Not a Warranty. Licensor’s approval of an Authorized Product does not mean that Licensor has determined
that the item conforms to applicable laws, that the item is safe or fit for its intended purpose or that the item does not infringe
the intellectual property or contractual rights of others. Licensor may also revoke an approval if the item subsequently proves
to be unsafe, to be deficient in quality, to violate any law or to violate the rights of others that are subsequently learned
to have existed at the time approval was granted.

 

h.
Distributors, Manufacturers and Recalls. All Authorized Products will be manufactured, offered for sale, sold, labeled,
packaged and distributed, and advertised, promoted, publicized and otherwise exploited, in accordance with all applicable laws
and regulations. To further safeguard the integrity and value of Licensor’s Authorized Trademark, Licensee will monitor
the performance of its distributors and manufacturers to assure compliance with these laws and regulations in accordance with
the laws of the United States and of all other countries, as applicable. Licensee will terminate any manufacturer and/or distributor
which fails to comply therewith. If any Authorized Product poses a danger or health threat, Licensee shall immediately notify
the appropriate governmental agency and commence any appropriate or necessary product recall, to be paid for solely by Licensee.
In addition, Licensee shall defend, indemnify and hold harmless Licensor and Artist, from and against any action solely brought
against Licensor and/or Artist based upon or seeking such product recall.

 

9.
Required Markings. Licensee will display on all Authorized Products any and all legends, markings or notices that are
required by law or that Licensor may reasonably request from time to time. Notwithstanding the foregoing, Licensee shall not make
any reference to the trademarks comprising the Authorized Trademark without including the ® or TM symbol, as appropriate.
Licensee may only eliminate any or all legends, markings, notices or references with the express prior written approval of Licensor
in each instance. Upon receipt of written notice from Licensor, Licensee shall have thirty (30) days to cure any omissions of
such legends, markings or notices.

 

10.
Personal Services. The parties acknowledge that certain reasonable personal services may be requested of Licensor,
its principals, officers or affiliates, including Artist (each, a “Licensor Principal”). Artist agrees to use
commercially reasonable efforts to attend critical distributor meetings and/or participate in bus routing during non-“Big
& Rich” touring times or during the Artist’s so-called “off season”; provided, however,
in the event of any of the foregoing or in the event that Licensee requests that Artist travel for any other meeting or other
specific purpose related to this Agreement, and such request is approved in writing by Artist, on a case-by-case basis, in each
instance (to be given or withheld in his sole discretion and subject in all instances to Artist’s prior professional commitments
(including, without limitation, touring, performing, recording and composing)), Licensee agrees to pay for such Licensor Principal’s
travel and lodging all on a first class basis (which shall be subject to pre-approval by Licensee in each instance). Subject to
the limitations of this section, Artist agrees to use commercially reasonable efforts to attend mutually agreed upon in writing
in each instance media and customer events, and visit with distributors, chain stores, and selected liquor stores and bars for
promotional events. Additionally, the parties shall use commercially reasonable efforts to conduct meetings or distributor parties
at the location commonly referred to as “Mt. Richmond.”

 

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In
addition to the [****], Licensee shall provide to Trust, without off-set or deduction of any kind of nature, those amounts set
forth on Exhibit B under the designation “Minimum JR Promotional Allowance” (in lieu of reimbursing
Artist for expenses for promoting the Distilled Spirits Products hereunder):

 

11.
Termination; Cure of Breach.

 

a.
In addition to all other remedies available at law or in equity, Licensor may terminate this Agreement and all rights granted
to Licensee hereunder upon thirty (30) days’ written notice: (a) should Licensee fail to cure any material breach of this
Agreement within thirty (30) days’ written notice from Licensor of such breach; (b) if Licensee is dissolved; or (c) if
Licensee files a petition in bankruptcy or is adjudicated as bankrupt or insolvent, makes a general assignment for the benefit
of creditors, discontinues its business or if a receiver, trustee or custodian is appointed for Licensee, which receiver, trustee
or custodian is not discharged within thirty (30) days of appointment.

 

b.
Termination by Licensor. In addition to the other termination rights contained herein, Licensor may terminate this Agreement
without prejudice to any rights it may have, whether at law or at equity, upon the occurrence of any one or more of the following
events (each, a “Default”):

 

i.
Licensee breaches Sections 2(a), 2(j)(ii), 8 or 19 and has not cured the breach within thirty (30) days after receipt of written
notice from Licensor of such breach;

 

ii.
Licensee fails to maintain in full force and effect, the insurance referred to herein below and such failure is not cured within
thirty (30) days after receipt of written notice from Licensor of such failure;

 

iii.
Licensee fails to make any payments due hereunder on the date due two or more times in any one calendar year and such failure
is not cured within thirty (30) days after receipt of written notice from Licensor of such failure;

 

iv.
Licensee fails to promptly, fully and timely deliver any of the accounting statements required herein, or fails to give access
to the books and records pursuant to the provisions hereof and such failure is not cured within thirty (30) days after receipt
of written notice from Licensor of such failure;

 

v.
immediately upon written notice, if any governmental agency or other administrative body, office or official vested with appropriate
authority obtains or issues a final, non-appealable judgment or ruling which determines that the Authorized Products are harmful
or defective in any material way, manner or form, or are being manufactured, sold or distributed in contravention of applicable
laws or regulations, or in a manner likely to cause harm;

 

vi.
immediately upon written notice, if Licensee does any act or conducts itself in any manner that, in Licensor’s reasonable
opinion, is offensive to standards of decency of the predominance of the applicable public, morality or social propriety resulting
in public scandal or ridicule, or is disparaging to Licensor, Artist, the Authorized Trademark or Licensor’s or Artist’s
products or services including, without limitation, the Authorized Products;

 

vii.
immediately upon written notice, if Licensee or any parent entity of Licensee is unable to pay its respective debts as they become
due or Licensee or any parent entity of Licensee defaults on any indebtedness and does not cure such default within thirty (30)
days of Licensor’s written notice of same; or

 

viii.
immediately upon written notice, if Licensee pledges, encumbers, grants a security interest in, or permits any lien (whether arising
by operation of law or otherwise) to exist with respect to all or any part of the Authorized Trademark or this Agreement (or any
revenue stream attributable to any of the foregoing) in connection with, or as a part of, any obligation (contractual or otherwise),
or as collateral or security for, any liability or indebtedness (public or private), in any case of Licensee, any affiliate or
related party of Licensee or any other person

 

    	9

    	 

    

 

c.
Termination by Licensee. Licensee shall have the right to terminate this Agreement during the Initial Period in the event
Licensee determines that, in its reasonable business judgment, the business relationship created hereby is not a viable business
upon six (6) months prior written notice (the “Special Termination Notice”)
to Licensor (the “Six Month Termination Window”). For avoidance of doubt, all amounts, including without limitation,
the Minimum JR Promotional Allowance, shall continue to be due and owing during such Six Month Termination Window.

 

d.
Termination by Licensor. In addition to the other termination rights contained herein, Licensor shall have the right to
terminate this Agreement upon Licensor’s receipt of a Rejected Offer (as defined below) or upon the consummation of an IP
Sale (as defined below), after payment in full by Licensor of any then due Sales Bonus to Licensee.

 

12.
Effect of Expiration/Termination. 

 

a.
Post-Term Rights. Upon the effective date of any termination (except as set forth in Section 12.b., below) or expiration
of this Agreement, Licensee will immediately discontinue all use of the Authorized Property and Brand Intellectual Property, whether
in connection with the sale, distribution, advertisement or manufacture of Authorized Products or otherwise, and will promptly
turn over, at no charge, all Product Formulation Cards, materials, items, equipment, bottle, design materials and the like used
to make or reproduce the Authorized Property and Brand Intellectual Property to Licensor, and all items affixed with the Authorized
Property and Brand Intellectual Property to Licensor whether signage, labels, posters, bags, boxes, tags or otherwise, and, hereby
assigns to Licensor, at no cost to Licensor all such rights.

 

b.
Sell-Off Period. Following the termination or expiration of this Agreement, Licensor shall, at its option, be entitled
to designate a person duly licensed to receive distilled spirits from Licensee to purchase from Licensee all existing Authorized
Products within thirty (30) business days after receipt of such inventory following Licensee’s termination at Licensee’s
hard cost; provided, however, if this Agreement was terminated by Licensor due to Licensee’s breach hereof
in accordance herewith, then Licensee shall deliver the foregoing items at no charge to Licensor’s duly-licensed designee,
notwithstanding the foregoing. Provided this Agreement has not been terminated by Licensor for a breach hereof by Licensee in
accordance herewith, and if Licensor’s duly-licensed designee does not acquire the inventory pursuant to the previous sentence,
Licensee may sell-off any existing Authorized Products (“Sell-Off Products”) for a period of six (6) months
(the “Sell-Off Period”). Such Sell-Off Products may be discounted to no lower than [****] of original wholesale
price to allow Licensee to sell through the Sell-Off Products. However, retailers shall be encouraged to sell within the original
MSRP and not drop pricing below the original MSRP for any reason, including that it denigrates the overall perception of the brand.
If, during the Sell-Off Period, Licensee breaches any obligation under the Agreement, Licensor shall be entitled to terminate
all sell-off rights immediately on written notice to Licensee upon the breach of this Agreement by Licensee (i) if such breach
is specified herein as a breach for which no cure is permitted, or (ii) for any other breach, the breach is not cured within ten
(10) days after Licensee’s receipt of notice of breach. In the event (x) Licensor’s duly-licensed designee does not
purchase all of the aforesaid Authorized Products, or (y) all sell-off rights provided have expired, Licensor shall be entitled
to cause all Products in the possession of Licensee to be destroyed on an agreed date, time and place, with Licensor and/or its
representative entitled to be present at such destruction.

 

c.
Termination. In the event that Licensee delivers to Licensor a Special Termination Notice, Licensor
terminates this Agreement, this Agreement expires, or a Non-Renewal Event occurs, Licensee shall make best efforts to promptly
(but no later than ten (10) business days of such event) deliver to Licensor all cards
for all Product Formulations, all Promotional Materials, all Promotional Items and a full, accurate and complete list of all distributor
contacts, all at no charge to Licensor.

 

    	10

    	 

    

 

d.
Distribution Agreements. All distribution arrangements, agreements, contracts, and the like which Licensee enters into
(or are binding on Licensee) with respect to the sale and distribution of the Authorized Products shall provide for, an automatic
termination (without a break-up, termination or other charge or fee of any kind or nature) in the event this Agreement expires
or is terminated for any reason; provided, however, in the event such termination rights are not permitted by applicable
law, Licensee shall advise Licensor of same in writing, and prior to entering into such agreement or arrangement, Licensee shall
obtain Licensor’s prior written approval therefor in each instance.

 

13.
Third-Party Use. In the event that Licensee becomes aware of any unauthorized third-party use of a mark or name that
infringes any of the Authorized Trademarks, Licensee agrees to promptly notify Licensor of such unauthorized use. It is understood
and agreed that Licensor may, at any time, at Licensor’s sole cost and expense, object, pursue or otherwise take action
against such third party in Licensor’s sole discretion. Licensee shall cooperate with and provide commercially reasonably
requested information to Licensor in any such proceeding at Licensee’s sole cost and expense.

 

14.
Representations and Warranties.

 

a.
Each party represents and warrants that it has full power and authority to enter into and perform this Agreement, and that the
person signing this Agreement on behalf of each has been properly authorized and empowered to enter into this Agreement. Each
party further acknowledges that it has read this Agreement, understands it, and agrees to be bound by it.

 

b.
Other than as expressly set forth in the foregoing clause or elsewhere in this Agreement, all rights granted by Licensor to Licensee
under this Agreement are granted on an “AS IS” basis with no representations or warranties of any kind whatsoever.
NO EXPRESS WARRANTIES AND NO IMPLIED WARRANTIES AS TO MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE OR USE OR OTHERWISE
WITH RESPECT TO THE AUTHORIZED PROPERTY OR THE PRODUCTS SHALL APPLY, NOR HAVE ANY BEEN MADE BY LICENSOR. LICENSEE HEREBY WAIVES
ALL SUCH WARRANTIES OR GUARANTIES, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE.

 

15.
Indemnification.

 

a.
Licensee agrees to indemnify and hold harmless Licensor and its parents, subsidiaries and affiliates, and each of their respective
principals, officers, directors, employees, managers and other representatives (including, without limitation, Artist) (collectively,
“Licensor Indemnitees”), from and against any and all liabilities, damages, claims, demands, causes of action,
judgments, costs and expenses (including, without limitation, attorneys’ fees and costs) based upon, arising out of or related
to:

 

	 	i.
    	Licensee’s
    manufacture, distribution, shipment, labeling, advertising, promotion, offering for sale and/or sale of Authorized Products
    and/or the promotional and packaging material therefor; 
	 	 	 
	 	ii.	any
    use of the Authorized Products by any third party; 
	 	 	 
	 	iii.
    	any
    claims based upon any defect or health hazard in any Authorized Product, including, without limitation, claims for death,
    personal injury or other bodily injury; 
	 	 	 
	 	iv.
    	any
    product liability claims; 
	 	 	 
	 	v.	any
    actual or alleged violation of law (including, without limitation, pertaining to charitable sales, promotions and contributions,
    false and unfair advertising, trade label, tortious interference with contract, breach of contract, misappropriation of third
    party proprietary information and unfair trade practices) arising out of or related to the manufacturing, distributing, sale,
    marketing, promotion and/or advertising of the Authorized Products and/or the payment and/or calculation of the [****] and/or
    Minimum Jr Promotional Allowance; 

 

    	11

    	 

    

 

	 	vi.	any
    breach by Licensee of this Agreement, including, without limitation, any of Licensee’s representations, warranties or
    covenants set forth in this Agreement; and 
	 	 	 
	 	vii.	any
    infringement by the Authorized Products (or any aspect or component thereof) upon the intellectual property or proprietary
    rights of any third party (or any misappropriation of such rights), except to the extent that such claim is based upon the
    use of the Authorized Trademark strictly in accordance with this Agreement. 

 

b.
Licensee shall promptly notify Licensor of any action, suit, claim, demand, inquiry or investigation to which the foregoing indemnification
applies. If any Licensor Indemnitee is or may be named in any such action, suit, claim, demand, inquiry or investigation, such
Licensor Indemnitee shall be permitted (but under no circumstances will such Licensor Indemnitee be obligated) to undertake the
defense or settlement thereof at Licensee’s sole cost and expense. Each Licensor Indemnitee may, at any time and without
notice, agree to any settlement or take any remedial or corrective action it deems to be in its best interests. Each Licensor
Indemnitee shall have the right to require Licensee to defend any such claims and, in the event that such Licensor Indemnitee
chooses to have Licensee undertake the defense of any claim hereunder, Licensee shall not settle such claim without Licensor’s
prior written consent.

 

c.
Licensor agrees to indemnify and hold harmless Licensee and its parents, subsidiaries and affiliates, and each of their respective
principals, officers, directors, employees, managers and other representatives (collectively, “Licensee Indemnitees”),
from and against any and all third-party liabilities, damages, claims, demands, causes of action, judgments, costs and expenses
(including, without limitation, attorneys’ fees and costs) based upon, arising out of, or related to any claim that the
Authorized Trademark when used in strict accordance herewith and used as approved by Licensor as provided herein infringes the
United States trademark right of any third party.

 

d.
EXCEPT WITH RESPECT TO LICENSEE’S INDEMNITY OBLIGATIONS PURSUANT TO SECTION 15.a. AND LICENSOR’S INDEMNITY OBLIGATIONS
PURSUANT TO SECTION 15.c ABOVE, NEITHER PARTY HERETO WILL BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL,
PUNITIVE OR SPECIAL DAMAGES, ARISING OUT OF OR RELATED TO THIS AGREEMENT, INCLUDING DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS
INTERRUPTION, LOSS OF BUSINESS INFORMATION AND THE LIKE, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
IN NO EVENT SHALL LICENSOR’S MAXIMUM LIABILITY, IF ANY, UNDER THIS AGREEMENT EXCEED THE AMOUNT OF THE
MINIMUM JR PROMOTIONAL ALLOWANCE THEN ACTUALLY PAID TO LICENSOR UNDER THIS AGREEMENT.

 

    	12

    	 

    

 

 

16.
Notices. Any notice, payment or other form of communication, including any modification of this Agreement, will be
duly made when personally delivered to the party to be notified, or when sent by facsimile, overnight courier (e.g., FedEx),
or mailed, return receipt requested, to the address set forth below or to such other addresses a party may designate by notice
pursuant hereto. Notices, payments and other forms of communication shall be sent to:

 

	 	To
    Licensor:	RICH
    MARKS, LLC
	 	 	c/o
    Tri Star Sports and Entertainment Group
	 	 	11
    Music Circle South
	 	 	Nashville,
    TN 37203
	 	 	 
	 	with
    a copy to:	Greenberg
    Traurig LLP
	 	 	Terminus
    200
	 	 	3333
    Piedmont Road, NE
	 	 	Suite
    2500
	 	 	Atlanta,
    Georgia 30305
	 	 	Attn:
    Jess L. Rosen, Esq.
	 	 	 
	 	If
    to Trust:	DWIGHT
    P. WILES
	 	 	TRUSTEE
    OF THE JOHN D. RICH TISA TRUST U/A/D MARCH 27, 2018 Wiles + Taylor & Company, P.C.
	 	 	900
    Division Street
	 	 	Nashville
    TN 37203
	 	 	 
	 	If
    to Licensee: 	REDNECK
    RIVIERA WHISKEY CO., LLC 
	 	 	1001
    SE Water Ave. Ste.390
	 	 	Portland,
    OR 97214-2149 
	 	 	 
	 	with
    a copy to:	Dickinson
    Wright PLLC
	 	 	2600
    W. Big Beaver Rd.
	 	 	Suite
    300
	 	 	Troy
    MI 48084
	 	 	Attn:
    Michael T. Raymond, Esq.

 

17.
Dispute Resolution; Choice of Laws. THIS AGREEMENT HAS BEEN ENTERED INTO IN THE STATE OF TENNESSEE, AND THE VALIDITY,
INTERPRETATION AND LEGAL EFFECT OF THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF TENNESSEE APPLICABLE TO CONTRACTS
ENTERED INTO AND PERFORMED ENTIRELY WITHIN THE STATE OF TENNESSEE (WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES UNDER
TENNESSEE LAW). THE TENNESSEE COURTS (STATE AND FEDERAL), SHALL HAVE SOLE EXCLUSIVE JURISDICTION OF ANY CONTROVERSIES REGARDING
THIS AGREEMENT; ANY ACTION OR OTHER PROCEEDING WHICH INVOLVES SUCH A CONTROVERSY SHALL BE BROUGHT IN THOSE COURTS IN NASHVILLE,
TENNESSEE AND NOT ELSEWHERE. THE PARTIES WAIVE ANY AND ALL OBJECTIONS TO VENUE IN THOSE COURTS AND HEREBY SUBMIT TO THE JURISDICTION
OF THOSE COURTS. ANY PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY, AMONG OTHER METHODS, BE SERVED UPON a PARTY BY DELIVERING IT
OR MAILING IT, BY REGISTERED OR CERTIFIED MAIL OR BY OVERNIGHT COURIER OBTAINING PROOF OF DELIVERY, DIRECTED TO THE ADDRESS DESCRIBED
IN SECTION 16 ABOVE OR SUCH OTHER ADDRESS AS A PARTY MAY DESIGNATE PURSUANT TO SECTION 16 ABOVE. ANY SUCH DELIVERY OR MAIL SERVICE
SHALL BE DEEMED TO HAVE THE SAME FORCE AND EFFECT AS PERSONAL SERVICE WITHIN THE STATE OF TENNESSEE.

 

    	13

    	 

    

 

18.
Miscellaneous. This Agreement is the complete and exclusive statement of the agreement between the parties as to the
subject matter hereof and supersedes all proposals or agreements, oral or written, and all other communications between the parties
related to the subject matter of this Agreement. This Agreement can be modified only by a written agreement duly signed by the
persons authorized to sign agreements on behalf of Licensee and Licensor, respectively. Neither party shall have the right to
assign (by operation of law, merger, change of control or otherwise), transfer or license or sublicense any of its rights hereunder
without the consent of the other party, which such party may withhold at its sole discretion. If any provision of this Agreement
is adjudged by any court to be void, illegal or unenforceable, in whole or in part, this adjudication shall not affect the remainder
of such provision or the validity and continuation of the remainder of this Agreement. If as a result of such adjudication, continuation
of this Agreement would be inconsistent with the fundamental intentions of the parties, the parties shall use reasonable business
efforts to agree on substitute provision(s), which, while valid, will achieve as closely as possible the same effects as the invalid
provision(s). Neither party shall be deemed the drafter of this Agreement. The relationship between Licensor and Licensee hereunder
shall at all times be that of independent contractors, and nothing contained in this Agreement shall render or constitute Licensor
and Licensee joint venturers, partners, or agents of each other or allow a party to legally bind the other party with respect
to any third party. Captions contained in this Agreement are for reference purposes only and do not constitute part of this Agreement.
This Agreement may be executed in one or more counterparts, each of which is deemed an original, but all of which together will
constitute one and the same instrument.

 

19.
Non-Disparagement. Excepting any truthful statements made by a party pursuant to a court order, legal proceeding, or
otherwise required by law, neither party shall disparage or denigrate the other party or its representatives.

 

20.
Buy-Out.

 

a.
If, during the Term of this Agreement, Licensor enters into material discussions with a third party respecting a potential sale
of solely the Authorized Property from Licensor, Licensor shall inform Licensee of such discussions within ten (10) days of such
discussion. Licensor is not required to disclose the identity of the potential purchaser during these preliminary discussions.
Except for those termination rights contained herein, Licensor may not terminate this Agreement while it is negotiating a sale
of the Authorized Property with a potential purchaser.

 

b.
In the event that Licensor shall at any time during the Term of this Agreement receive a bona-fide, signed, written offer (a “Purchase
Offer”) from a potential purchaser to acquire the Authorized Property with respect to the Authorized Products, Licensor
shall submit a redacted copy of such Purchase Offer to Licensee within [****] from the date Licensor receives the Purchase Offer.
Licensee shall have the right, exercisable by written notice to Licensor within [****] form the date of delivery of the Purchase
Offer to Licensee, to purchase such rights and interests for the same price and on the same terms and conditions as are contained
in the Purchase Offer. If Licensee does not exercise the above-described right of first refusal by delivering written notice and
an offer to purchase in the same form and upon the same terms and conditions as are contained in the Purchase Offer within such
[****] period (a “Rejected Offer”), Licensor may complete the sale to such potential purchaser pursuant in
substantial occurrence with the terms of the Purchase Offer, provided that if the sale to the potential purchaser is not completed
in substantial accordance with the terms and conditions of the Purchase Offer, or if there is a material change to the terms of
the Purchaser Offer, Licensee shall again have the right of first refusal provided herein under the new terms of the offer.

 

c.
In the event of a sale of the Authorized Property by Licensor during the Term (an “IP
Sale”):

 

i.
to remit to Licensee, upon the consummation of such IP Sale, fifty percent (50%) of those
out-of-pocket marketing expenses (and, for avoidance of doubt, not in respect of payments of [****]) approved by Licensor in each
case in writing which were expended by Licensee solely in promoting the Distilled Spirits Products hereunder as of the consummation
of such IP Sale (collectively, the “Marketing Reimbursement”).

 

    	14

    	 

    

 

ii.
to remit to Licensee, upon the consummation of such IP Sale (or in the event that not
all compensation is paid upon the closing of such IP Sale, when and as such compensation
is actually received by Licensor), a sales bonus (the “Sales Bonus”) based on a percentage set forth on Exhibit
C attached hereto and hereby incorporated herein by this reference (the “Applicable Percentage”) of the
Net Purchase Price (as defined below), actually received by Licensor in such IP Sale.
The Applicable Percentage shall only apply to that amount actually received by Licensor respecting the IP
Sale and shall not include amounts respecting holdbacks, escrows, Reimbursements and costs, expenses, taxes and the like
paid or owing to any unaffiliated third party as part of, or in connection with, or paid to a third-party respecting indemnification
claims made by the purchaser, as of any such IP Sale (the “Net Purchase Price”).
Further, in the event that the foregoing purchase and sale also contemplates the sale of any other intellectual property owned
and/or held by Licensor and/or Artist, directly or indirectly (e.g., “REDNECK RIVIERA” in IC 25), then only that part
of the Net Purchase Price applicable to the Authorized Property actively under license hereunder (e.g., the Initial Products only
if Licensee is manufacturing and causing the active distribution of same at the time of such purchase and sale) shall be considered
in computing the Sales Bonus hereunder. Subject to the foregoing, the Sales Bonus will be calculated by applying the Applicable
Percentage on a percentage basis, and adding all of the relevant tiers together. For instance, below are examples of possible
Sales Bonus amounts:

 

	Net
    Purchase Price	Sales
    Bonus	Calculation
	[****]	[****]	[****]
	[****]	[****]	[****]

 

iii.
Six Month Termination Window. Notwithstanding anything contained herein to the contrary, in the event that an IP
Sale is consummated during the Six Month Termination Window, Licensee shall only and solely be entitled to the Marketing
Reimbursement (and not for avoidance of doubt, Licensee shall not be entitled to any Sales Bonus or other amount).

 

21.
Ownership.

 

a.
Materials. Any and all designs, logos, depictions, graphic representations and/or other creative renderings incorporating,
depicting and/or embodying any one or more elements of the Authorized Property, in any and all media now known or hereafter invented,
including modifications to the Authorized Property in any media now or hereafter invented (including, specifically all elements
of the Brand Intellectual Property) (collectively, “Materials”), and all rights, including all copyrights and
trademark rights in and to the Materials, shall be solely and exclusively owned by Licensor. Without limiting the foregoing, Licensor
acknowledges and confirms that all of its services in connection with the creation of the Materials are and shall be rendered
for, at the instigation and under the overall direction and supervision of Licensor, and the Materials is and at all times shall
be regarded as a “work made for hire” (as that term is used in the U.S. Copyright Act, 17 U.S.C. § 101, et
seq. (the “Act”)) by Licensee for Licensor. Without limiting the acknowledgment contained in the previous
sentence, Licensor hereby assigns, grants and delivers (and hereby further agrees to assign, grant and deliver) exclusively unto
Licensor all rights, title and interests of every kind and nature whatsoever in and to the Materials and all copies and versions
thereof, including all copyrights therein and thereto and all renewals thereof. Licensee further agrees to execute and deliver
to Licensor, its successors and assigns, such other and further instruments and documents as Licensor reasonably may request for
the purpose of establishing, evidencing and enforcing or defending its complete, exclusive, perpetual and worldwide ownership
of all rights, title and interests of every kind and nature whatsoever, including all copyrights, in and to the Materials, and
Licensee hereby constitutes and appoints Licensor as their respective agent and attorney-in-fact, with full power of substitution,
to execute and deliver such documents or instruments as they may respectively fail or refuse to execute and deliver within ten
(10) days (or such shorter period as designated by Licensor if reasonably necessary), this power and agency being coupled with
an interest and being irrevocable. Licensee covenants, warrants and represents that the Materials will not violate or infringe
any copyright of any person, firm or corporation, and each has and will order, commission or otherwise obtain or receive from
any other person (other than an “employee” working “within the scope of employment” (as those terms are
understood under the Act)) any work on or contribution to the Materials without obtaining a valid and binding work-for-hire and/or
assignment agreement in a form approved in advance by Licensor.

 

    	15

    	 

    

 

b.
Delivery Upon Termination. Any and all Materials shall be sent to Licensor at no cost and prepaid at Licensor’s request
not later than thirty (30) days following the expiration or earlier termination of this Agreement for any reason.

 

c.
Clarity. For avoidance of doubt, as between the parties hereto, Licensor shall own all modifications, adjustments, changes,
variations, revisions, adaptations and/or alterations to any element of the Authorized Property and any/and all derivations and
derivative works thereof (collectively, “Modifications”) and any act or action by or for Licensee shall not
convert such Authorized Property and/or Modifications into Licensee property.

 

22.
Insurance. 

 

a.
Liability. Licensee shall throughout the Term of this Agreement and for a period of three (3) years thereafter, obtain
and maintain at its own cost and expense that general liability and product liability insurance acceptable to Licensor. Such policy
must be written with a licensed insurance company with a Best’s rating of not less than A-VIII and, with respect to each
policy name Licensor and Artist as an additional named insured. Each policy shall provide for ten (10) days’ notice to Licensor
from the insurer by registered or certified mail, return receipt requested, in the event of any modification, cancellation or
termination of such insurance. Licensee agrees to furnish Licensor certificates of insurance evidencing same within thirty (30)
days after execution of this Agreement.

 

b.
Errors and Omissions. Licensee shall throughout the Term of this Agreement obtain and maintain at its own cost and expense
that errors and omissions insurance acceptable to Licensor. Such policy must be written with a licensed insurance company with
a Best’s rating of not less than A-VIII and shall specifically name by endorsement to the policy Licensor, Artist and Trust
as an additional named insured. The amount of coverage shall be for a minimum mutually agreed upon commercially reasonable amount.
The policy shall provide for ten (10) days’ notice to Licensor from the insurer by registered or certified mail, return
receipt requested, in the event of any modification, cancellation or termination of the insurance. Licensee agrees to furnish
Licensor certificates of insurance evidencing same within thirty (30) days after execution of this Agreement.

 

23.
Injunctive Relief/General. Licensee acknowledges that a breach of any of the covenants contained in this Agreement
(including Licensee’s failure to cease utilizing the Authorized Property and/or Brand
Intellectual Property upon the expiration or earlier termination of the Term) will
cause irreparable injury to Licensor for which the remedy at law may be inadequate and would be difficult to ascertain. Therefore,
in the event of the breach of threatened breach of any such covenants by Licensee, Licensor shall be entitled, in addition to
any other rights and remedies it may have at law or in equity, to an injunction to restrain Licensee from any threatened or actual
activities in violation of any such covenants. Licensee hereby consents and agrees that temporary and permanent injunctive relief
may be granted in any proceedings which might be brought to enforce any such covenants without the necessity of proving of actual
damages or posting a bond, and in the event Licensor does apply for such an injunction, Licensee shall not raise as a defense
thereto that the Licensor has an adequate remedy at law.

 

24.
[Intentionally Left Blank.]

 

    	16

    	 

    

 

25.
Quality Standards. To further protect the integrity and value of the Authorized Property, Licensee (i) agrees that
the Distilled Spirits Products shall be manufactured, bottled and produced at production facilities approved by Licensor (“Approved
Production Facilities”) and conform in each case in all material organoleptic respects (taste, color, and bouquet) to
the specifications and quality standards as mutually agreed upon by the parties hereto, and (ii) represents, warrants and covenants
that the Distilled Spirits Products shall be merchantable and fit for human consumption. Additionally, Licensee represents, warrants
and covenants at all times during the Term that the Distilled Spirits Products manufactured, bottled and shipped by Licensee hereunder
will be free from defects and will not be adulterated or misbranded within the meaning of the United States Federal Food, Drug
and Cosmetic Act, (any federal alcohol regulation promulgated by the U.S. Alcohol and Tobacco Tax and Trade Bureau or its predecessor
agency (collectively the “TTB”), or state alcohol commission regulation, or within the meaning of any state
or other food, alcohol or drug law) and that such Distilled Spirits Products will be processed, bottled, packaged, labeled, stored,
transported, packed and shipped in compliance with all other applicable U.S. federal, state, and local laws, rules, and regulation.
Licensee shall obtain all necessary permits, approvals and licenses necessary or appropriate to perform its obligations hereunder
(including, without limitation the bottling, labeling, distribution and sale of the Authorized Products) and shall at all times
comply with the terms and conditions of such permits, approvals and licenses. Moreover, Licensee represents, warrants and covenants
at all time during the Term, it will not use any ingredients in the Distilled Spirits Products that are not in compliance with
any food, health and safety laws or regulations. Licensee shall permit inspection of the Distilled Spirits Products and the Approved
Production Facilities upon reasonable notice solely for determination of compliance with the terms hereof. Notwithstanding anything
contained herein to the contrary, if Licensor determines that any Distilled Spirit Product is not in strict compliance with the
provisions of this Section 25, it shall send written notice of same to Licensee and Licensee shall have thirty (30) days from
the date of receipt of such notice to cure such failure and any failure to fully do so within such thirty day period shall give
Licensor the right to immediately terminate this Agreement upon written notice to Licensee.

 

[Signature
on Next Page.]

 

    	17

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

 

	LICENSOR:	 	LICENSEE:
	RICH
    MARKS, LLC	 	REDNECK
    RIVIERA WHISKEY CO., LLC 
	 	 	 	 
	By:
                                         

        
	/s/John
    D. Rich	 	By:
    	/s/Grover
                                         T. Wickersham

	 	(authorized
                                         signatory)

        
	 	 	(authorized
                                         signatory)

        

	 	 	 	 	 
	Print
    name	John
    D. Rich	 	Print
    name:	Grover
    T. Wickersham
	Title:	CEO	 	Title:	Manager

        

 

	TRUST:	 	FORMER
    LICENSEE:
	John
    D. RICH TISA Trust U/A/D MARCH 27, 2018, DWIGHT P. WILES, TRUSTEE  	 	EASTSIDE
    DISTILLING, INC. 
	 	 	 
	By:

        
	/s/Dwight
    P. Wiles	 	By:	/s/Grover
    T. Wickersham
	 	(authorized
                                         signatory)

        
	 	 	(authorized
    signatory)
	 	 	 	 	 
	Print
    name:	Dwight
                                         P. Wiles

        
	 	Print
    name:	Grover
    T. Wickersham
	Title:	Trustee	 	Title:	Chairman,CEO

 

    	18

    	 

    

 

Exhibit
A

 

Distribution
Channels

 

	1.	Online
    – solely in the Territory
	2.	Distributors
    – solely in the Territory
	3.	Retail
    stores – solely in the Territory 
	4.	State
    liquor stores (e.g. ABC Stores) – solely in the Territory
	5.	Direct-to-Consumer
    (where permitted) – solely in the Territory 

 

    	 

    	 

    

 

Exhibit
B

 

Annual
Case Objective (Contract Years [****])

 

	 	Initial
    Products	[****]
	Year	[****]	[****]
	Year
    1	[****]	 
	Year
    2	[****]	 

 

Minimum
JR Promotional Allowance

 

	[****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****]
    

 

    	 

    	 

    

 

Exhibit
C

 

Applicable
Percentages

 

	Bonus
    Amount Tier of Net Purchase Price	Applicable
    Percentage
	[****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****
	****	****]

 

    	 

    	 

    

 

Exhibit
D

 

U.S.
Federal Registration for REDNECK RIVIERA, International Class 33, Serial Number 86976840.

 

    	 

    	 

    

 

Exhibit
E

 

[****]
Per Case (12x 750 mL bottles / 24x 375 mL bottles, or equivalent) Invoiced

 

	Retail
Price Points	[****]	[****]	[****]
	 	 	 	 
	[****]
    Per Case	[****]	[****]	[****]next_Exhibit 101_backstop_8K

Exhibit 10.14

 

BACKSTOP COMMITMENT AGREEMENT

This BACKSTOP COMMITMENT AGREEMENT (this “Agreement”), dated as of April 11, 2018, is by and between NextDecade Corporation, a Delaware corporation (“NextDecade” or the “Company”), and York Capital Management Global Advisors, LLC, severally on behalf of certain funds or accounts advised by it or its Affiliates (the “Backstopper”).  Each of NextDecade and the Backstopper are referred to herein as a “Party” and collectively as the “Parties.”

RECITALS:

WHEREAS, the Company has commenced a convertible preferred equity and warrant offering (the “Convertible Preferred Equity Offering”), pursuant to which Offering Participants shall subscribe to purchase shares of convertible preferred stock (the “Convertible Preferred Stock”), which include associated Warrants (as defined herein), issued by the Company substantially on the terms and conditions set forth in the Certificate of Designations of the Series A Convertible Preferred Stock attached to this Agreement as Exhibit C (the “Certificate of Designations”) at the Purchase Price, with targeted aggregate gross proceeds to the Company of $35,000,000 (the “Offering Proceeds”); and

WHEREAS, to facilitate consummation of the Convertible Preferred Equity Offering, subject to the terms herein, the Company is willing to sell at its election, and the Backstopper is willing to commit to purchase the Backstop Amount in accordance with the terms of this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

Section 1.        DEFINITIONS.  As used in this Agreement, the following terms shall have the following meanings:

“Addendum” has the meaning assigned to it in Section 10.10.

“Affiliate” means, with respect to any specified Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person.

“Agreement” has the meaning assigned to it in the preamble hereto; it includes the Exhibits hereto.

“Assumption Agreement” has the meaning assigned to it in Section 10.10.

“Backstop Amount” means $23,199,785.

“Backstopper Default” means the failure by the Backstopper to deliver and pay all amounts required to be paid pursuant to this Agreement.

 

 

 

“Backstop Fee” means the Backstop Amount times a percentage, where such percentage is: (a) 3.0%, if the Closing occurs within thirty (30) days of the date of this Agreement; (b) 3.5%, if the Closing occurs more than thirty (30) but less than sixty-one (61) days after the date of this Agreement; (c) 4.0%, if the Closing occurs more than sixty (60 but less than ninety-one (91) days after the date of this Agreement and (d) 4.5%, if the Closing has not occurred before ninety-one (91) days after the date of this Agreement, in each case, payable in Common Stock valued at the volume weighted average trading price of the Common Stock during the thirty trading day period ending on (and including) the last trading day immediately prior to the announcement of this Agreement (and the transactions contemplated hereby) through Company press release or filing on a Form 8-K with the U.S. Securities and Exchange Commission.

“Backstopper Material Adverse Effect” means any event, circumstance, development, change or effect that, individually or in the aggregate with all other events, circumstances, developments, changes or effects, has or would reasonably be expected to prevent, materially delay or materially impair the ability of the Backstopper to consummate the transactions contemplated hereby.

“Backstopper Termination” means the termination of this Agreement by the Backstopper.

“Backstopper Termination Event” has the meaning assigned to it in Section 8(a).

“Backstop Percentage” means 66.2851%.

“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in the City of New York.

“Closing” has the meaning assigned to it in Section 2.6.

“Closing Date” has the meaning assigned to it in Section 2.6.

“Commitment” has the meaning assigned to it in Section 2.1.

“Commitment Outside Date” means one hundred and twenty (120) days from the date hereof.

“Common Stock” means the common stock of the Company, $0.0001 par value.

“Company” has the meaning assigned to it in the preamble hereto.

“Control” (including the terms “control” “controlled by” and “under common control with”), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly or as trustee, personal representative or executor, of the power to direct or cause the direction of the affairs, policies or management of a Person, whether through the ownership of voting securities, as trustee, personal representative or executor, by contract, credit arrangement or otherwise.

“Convertible Preferred Equity Offering” has the meaning assigned to it in the Recitals hereto.

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“Convertible Preferred Stock” has the meaning assigned to it in the Recitals hereto.

“Definitive Documentation” means this Agreement and any other documents or exhibits related to or contemplated in the foregoing.

“Draw Fee” means 2.75% multiplied by the amount funded by the Backstopper pursuant to Section 2.3 of this Agreement, payable in shares of Common Stock valued at the volume weighted average trading price of the Common Stock during the thirty trading day period ending on (and including) the last trading day immediately prior to the announcement of this Agreement (and the transactions contemplated hereby) through Company press release or filing of a Form 8-K with the U.S. Securities and Exchange Commission.

 “Encumbrance” means any security interest, pledge, mortgage, lien, claim, option, charge or encumbrance.

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder, or any successor statute.

“Governmental Authority” means any federal, national, supranational, foreign, state, provincial, local, county, municipal or other government, any governmental, regulatory or administrative authority, agency, department, bureau, board, commission or official or any quasi-governmental or private body exercising any regulatory, taxing, importing or other governmental or quasi-governmental authority, or any court, tribunal, judicial or arbitral body, or any Self-Regulatory Organization.

“Indemnified Party” means the Backstopper and each of its Affiliates and each of their  respective directors, managers, officers, principals, partners, members, equity holders (regardless of whether such interests are held directly or indirectly), trustees, controlling persons, predecessors, successors and assigns, subsidiaries, employees, agents, advisors, attorneys and representatives.

“Law” means any federal, national, supranational, foreign, state, provincial, local, county, municipal or similar statute, law, common law, writ, injunction, decree, guideline, policy, ordinance, regulation, rule, code, Order, constitution, treaty, requirement, judgment or judicial or administrative doctrines enacted, promulgated, issued, enforced or entered by any Governmental Authority.

“Legal Proceedings” means any legal, governmental, administrative, judicial or regulatory investigations, audits, actions, suits, claims, arbitrations, demands, demand letters, claims, notices of noncompliance or violations, or proceedings.

“Material Adverse Effect”  means any effect, change, event, occurrence, development, or state of facts that, individually or in the aggregate with all other such effects, changes, events, occurrences, developments, or states of fact, (A) has had, or would reasonably be expected to have, a material adverse effect on the business, assets, liabilities, condition (financial or otherwise), or results of operations of the Company and its subsidiaries, taken as a whole or (B) would, or would reasonably be expected to, prevent or materially impair the ability of the Company to consummate the transactions contemplated by this Agreement, but expressly excluding in each case any such

3

 

 

effect, change, event, occurrence, development, or state of facts, either alone or in combination, to the extent arising out of or resulting from:

 

(a)            the execution or delivery of this Agreement, the consummation of the transactions contemplated by this Agreement or the public announcement or other publicity with respect to any of the foregoing;

(b)            general economic conditions (or changes in such conditions) in the United States or conditions in the global economy generally that do not affect the Company and its subsidiaries, taken as a whole, disproportionately when considered in the context of the liquefied natural gas export industry generally (in which case only such disproportionate impact shall be considered);

(c)            changes in the trading price or trading volume of the Common Stock.

(d)            conditions (or changes in such conditions) generally affecting the liquefied natural gas export industry that do not affect the Company and its subsidiaries, taken as a whole, disproportionately (in which case only such disproportionate impact shall be considered);

(e)            conditions (or changes in such conditions) in the financial markets, credit markets or capital markets in the United States or any other country or region, including (i) changes in interest rates in the United States or any other country and changes in exchange rates for the currencies of any countries or (ii) any suspension of trading in securities (whether equity, debt, derivative or hybrid securities) generally (other than a suspension of the trading of the Company’s Common Stock for more than five (5) trading days, which constitutes a Material Adverse Effect, provided such suspension is not part of a broader suspension of securities) on any securities exchange or over-the-counter market operating in the United States or any other country or region in each case, that do not affect the Company as a whole disproportionately when considered in the context of the oil and gas exploration and production industry generally (in which case only such disproportionate impact shall be considered);

(f)            any actions taken or omitted to be taken at the written request or with the written consent of the Backstopper (for the avoidance of doubt, actions taken or omitted upon the decision of the Company’s board of directors shall not be considered to be at the written request or with the written consent of the Required Backstop Parties unless such a written request or consent is separately provided to the Company by the Backstopper); or

(g)            any changes in any Laws or any accounting regulations or principles that do not affect the Company, taken as a whole, disproportionately when considered in the context of the oil and gas exploration and production industry generally (in which case only such disproportionate impact shall be considered).

“Non-Backstopper Participant” means an Offering Participant that is not a Backstopper.

4

 

 

“Offering Documents” means, collectively, all related agreements, documents, or instruments in connection with the Convertible Preferred Equity Offering, including this Agreement.

“Offering Participants” means those Persons that are entitled, pursuant to the Offering Documents, to purchase Convertible Preferred Stock and Warrants in the Convertible Preferred Equity Offering.

“Offering Proceeds” has the meaning assigned to it in the Recitals hereto.

“Order” means any order, writ, judgment, injunction, decree, rule, ruling, directive, stipulation, determination or award made, issued or entered by or with any Governmental Authority, whether preliminary, interlocutory or final.

“Origination Fee” means shares of Convertible Preferred Stock (but excluding the associated Warrants) issued by the Company to the Backstopper, at the Closing, with principal amount equal to two percent (2%) of Purchase Price multiplied by the number of shares of Convertible Preferred Stock purchased by the Backstopper pursuant to Section 2.3.

“Party” has the meaning assigned to it in the preamble hereto.

“Person” means any individual, partnership, firm, corporation, limited liability company, association, joint venture, trust, Governmental Authority, unincorporated organization or other entity, as well as any syndicate or group that would be deemed to be a person under Section 13(d)(3) of the Exchange Act.

 “Purchase Price” means $1,000 per share of Convertible Preferred Stock.

 “Required Backstop Amount” means, the Offering Proceeds less investment contributions for the Convertible Preferred Equity Offering from Non-Backstopper Participants, provided that the Required Backstop Amount cannot be less than zero ($0).

“Required Backstop Parties” means the holders of a majority of the outstanding Convertible Preferred Stock issued in respect of this Backstop Agreement and any similar agreement dated of even date herewith.

“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder, or any successor statute.

“Self-Regulatory Organization” means any securities exchange, futures exchange, contract market, any other exchange or corporation or similar self-regulatory body or organization applicable to a Party to this Agreement.

“Warrants” means the detached warrants, in a form reasonably acceptable to the Backstopper, representing the right to acquire a number of shares of Common Stock of the Company equal to (a) the Backstop Percentage multiplied by (b)(i) 0.50% multiplied by (ii) the number of shares of Common Stock of the Company outstanding on the exercise date, on a fully diluted basis, at an exercise price of $0.01 per share.

5

 

 

Section 2.        BACKSTOP COMMITMENT.

2.1   Backstop.  Subject to and in accordance with the terms and conditions set forth herein, upon Company’s exercise of its right to call the Backstop Amount set forth in Section 2.3, the Backstopper irrevocably commits to purchase, at the Closing, up to a number of shares of Convertible Preferred Stock (and accompanying Warrants) determined by dividing (i) the Backstop Amount by (ii) the Purchase Price (the “Commitment”).

2.2   Backstop Fee.  The Company agrees to issue the Backstop Fee to the Backstopper, or its designated Affiliate, on the Closing Date regardless of the number of shares of Convertible Preferred Stock that the Company caused to be purchased by the Backstopper.  If the Closing has not occurred by the Commitment Outside Date, then the Backstop Fee shall be issued on the Commitment Outside Date unless (i) a Backstopper Default has occurred and has not been remedied; (ii) any of the conditions set forth in Section 7 hereof are not satisfied as of the Commitment Outside Date; or (iii) the Agreement has been terminated in accordance with Sections 8(a)(iii), 8(b)(B)(i) or 8(b)(B)(ii).

2.3   Call Option.  The Company shall have the right, exercisable in its sole discretion, to require the Backstopper or an Affiliate thereof, if designated by the Backstopper, to deliver to the Company at Closing an amount equal to the Backstop Percentage multiplied by the Required Backstop Amount, by delivering written notice of the decision to exercise such right to the Backstopper no less than three (3) Business Days prior to the Closing.

2.4   Draw Fee.  If the Company elects to exercise its call rights under Section 2.3, then the Company agrees to issue the Draw Fee to the Backstopper, or its designated Affiliate, on the Closing Date.

2.5   Additional Equity.  For the avoidance of doubt, to the extent the Company exercises its call rights under Section 2.3, the Company shall also issue to the Backstopper, at the Closing, the Origination Fee and the Warrants.

2.6   Closing Date.  The closing of the transactions contemplated hereby (the “Closing”) will occur on or before the Commitment Outside Date, unless extended by the mutual consent of the Parties (the “Closing Date”).

2.7   Rounding of Shares.  The number of shares of Convertible Preferred Stock and Common Stock issued to the Backstopper pursuant to the terms of this Agreement shall be rounded to avoid fractional shares.

2.8   Transfer Taxes.  All of the Convertible Preferred Stock issued to the Backstopper pursuant to this Agreement will be delivered with any and all issue, stamp, transfer or similar taxes or duties payable in connection with such delivery duly paid by the Company.

2.9   Registration Rights.  Prior to the earlier of (a) the Closing and (b) the Commitment Outside Date, the Company shall enter into a registration rights agreement, in customary form reasonably acceptable to the Backstopper  (the “Registration Rights Agreement”) providing the Backstopper with registration rights in respect of all shares of Common Stock issuable to the Backstopper in respect of (i) the conversion of any Convertible Preferred Stock received by the

6

 

 

Backstopper in accordance with this Agreement, (ii) the Backstop Fee and (iii) the Draw Fee.  The Registration Rights Agreement shall include two demand registration rights, exercisable following a reasonable time after the Closing (with no more than one demand right exercisable within any 180-day period).  If the Company is eligible to use Form S-3, the Company will prepare, and use its commercially reasonable efforts to maintain the effectiveness of, a resale shelf registration statement on Form S-3.  In addition, the Registration Rights Agreement shall include unlimited customary “piggyback” registration rights.

Section 3.        REPRESENTATIONS AND WARRANTIES OF NEXTDECADE.  The Company hereby represents and warrants to the Backstopper as of the date hereof and as of the Closing Date (except for representations and warranties that are made as of a specific date, which are made only as of such date), on behalf of itself and not any other Party, as follows:

3.1   Organization and Qualification; Subsidiaries.  NextDecade has been duly organized and is validly existing and, except as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, is in good standing under the laws of its jurisdictions of organization, with the requisite power and authority to own its properties and conduct its business as currently conducted.

3.2   Authorization; Enforcement; Validity.  NextDecade has all necessary corporate power and authority to enter into this Agreement and to carry out its obligations hereunder including, the issuance of (a)  the Convertible Preferred Stock and the Warrants (and the Common Stock issuable upon the conversion and/or exercise of the Convertible Preferred Stock and Warrants, as applicable), (b) the Common Stock pursuant to the Backstop Fee and the Draw Fee, and (c) the Convertible Preferred Stock pursuant to the Origination Fee.  The execution and delivery by NextDecade of this Agreement, the performance by NextDecade of its obligations hereunder, have been duly authorized by all requisite action on the part of NextDecade, and no other action on the part of NextDecade is necessary to authorize the execution and delivery by NextDecade of this Agreement or the consummation of the transactions contemplated by this Agreement.  This Agreement has been duly executed and delivered by NextDecade, and assuming due authorization, execution and delivery by the other Parties, this Agreement constitutes the legal, valid and binding obligation of NextDecade, enforceable against NextDecade in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium or similar Laws now or hereafter in effect relating to creditors’ rights generally and subject to general principles of equity.

3.3   No Conflicts.  Assuming that all consents, approvals, authorizations and other actions described in Section 3.4 have been obtained, and except as may result from any facts or circumstances relating solely to the Backstopper, the execution, delivery and performance by NextDecade of this Agreement and the consummation of the transactions contemplated hereby do not and will not: (a) violate, conflict with or result in the breach of the certificate of incorporation, articles of incorporation, bylaws, certificate of formation, operating agreement, limited liability company agreement or similar formation or organizational documents of NextDecade or any of its subsidiaries; (b) conflict with or violate any Law or Order applicable to NextDecade or any of its respective assets or properties; or (c) violate, conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give to others any rights

7

 

 

of termination, amendment, acceleration, suspension, revocation or cancellation of, any note, bond, mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise or other instrument or arrangement to which NextDecade or any of its subsidiaries is a party or to which any of their respective assets or properties are subject, or result in the creation of any Encumbrance on any of their respective assets or properties, except, in the case of clauses (b) and (c), for any such conflict, violation, breach or default that would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

3.4   Consents and Approvals.  The execution, delivery and performance by NextDecade of this Agreement do not require any consent, approval, authorization or other Order of, action by, filing with or notification to, any Governmental Authority or any other Person under any of the terms, conditions or provisions of any Law or Order applicable to NextDecade or by which any of its assets or properties may be bound, any contract to which NextDecade is a party or by which NextDecade may be bound, except for (a) any consent, approval, authorization or other Order of, action by, filing with or notification to, any Governmental Authority or any other Person under any of the terms, conditions or provisions of any Law or Order applicable to NextDecade that, if not made or obtained, would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

Section 4.       REPRESENTATIONS AND WARRANTIES OF THE BACKSTOPPER.  The Backstopper represents and warrants to NextDecade as of the date hereof and as of the Closing Date (except for representations and warranties that are made as of a specific date, which are made only as of such date), as follows:

4.1   Organization and Qualification; Subsidiaries.  The Backstopper has been duly organized and is validly existing and, except as would not reasonably be expected to have, individually or in the aggregate, a Backstopper Material Adverse Effect, is in good standing under the laws of its jurisdiction of organization, with the requisite power and authority to own its properties and conduct its business as currently conducted.

4.2   Authorization; Enforcement; Validity.  The Backstopper has all necessary corporate, limited liability company or equivalent power and authority to enter into this Agreement and to carry out, or cause to be carried out, its obligations hereunder in accordance with the terms hereof.  The execution and delivery by the Backstopper of this Agreement and the performance by the Backstopper of its obligations hereunder have been duly authorized by all requisite action on the part of the Backstopper, and no other action on the part of the Backstopper is necessary to authorize the execution and delivery by the Backstopper of this Agreement or the consummation of the transactions contemplated by this Agreement.  This Agreement has been duly executed and delivered by the Backstopper, and assuming due authorization, execution and delivery by the Company, this Agreement constitutes the legal, valid and binding obligation of the Backstopper, enforceable against the Backstopper in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium or similar Laws now or hereafter in effect relating to creditors’ rights generally and subject to general principles of equity.

4.3   No Conflicts.  The execution, delivery, and performance by the Backstopper of this Agreement do not and will not (a) violate any provision of the organizational documents of the

8

 

 

Backstopper; (b) conflict with or violate any Law or Order applicable to the Backstopper or any of its respective assets or properties; or (c) violate, conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, any note, bond, mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise or other instrument or arrangement to which the Backstopper is a party or to which any of its assets or properties are subject, or result in the creation of any Encumbrance on any of its assets or properties, except, in the case of clauses (b) and (c), for any such conflict, violation, breach or default that would not reasonably be expected to have, individually or in the aggregate, a Backstopper Material Adverse Effect.

4.4   Consents and Approvals.  The execution, delivery and performance by the Backstopper of this Agreement do not require the Backstopper to obtain any  consent, approval, authorization or other Order of, action by, filing with or notification to, any Governmental Authority or any other Person under any of the terms, conditions or provisions of any Law or Order applicable to the Backstopper or by which any of its assets or properties may be bound, any contract to which the Backstopper is a party or by which the Backstopper may be bound, except for any consent, approval, authorization or other Order of, action by, filing with or notification to, any Governmental Authority or any other Person under any of the terms, conditions or provisions of any Law or Order applicable to the Backstopper that, if not made or obtained, would not reasonably be expected to have, individually or in the aggregate, a Backstopper Material Adverse Effect with respect to the Backstopper.

4.5   Investor Representation.  (i) It is either (A) a qualified institutional buyer as defined in Rule 144A of the Securities Act, (B) an accredited investor as defined in Rule 501(a)(1), (2), (3), or (7) under the Securities Act, (C) a non‐U.S. person under Regulation S under the Securities Act, or (D) the foreign equivalent of (A) or (B) above, and (ii) any securities of the Company acquired by the Backstopper under this Agreement will have been acquired for investment and not with a view to distribution or resale in violation of the Securities Act.

4.6   Sufficient Funds.  The Backstopper has sufficient assets and the financial capacity to perform all of its obligations under this Agreement, including the ability to fully fund the Commitment.

Section 5.        ADDITIONAL COVENANTS.

5.1   Commercially Reasonable Efforts.  Each of the Company and the Backstopper hereby agrees to use its commercially reasonable efforts to timely satisfy (if applicable) each of the conditions applicable to such Party under Sections 6 and 7, respectively, of this Agreement.

5.2   Further Assurances.  Each Party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other Party may reasonably request to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

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5.3       Use of Proceeds. The Company shall use the Offering Proceeds from the transactions contemplated hereby solely as provided for in Exhibit D to this Agreement.

5.4       Expenses.  The Company shall bear all of its own expenses in connection with the execution, delivery and performance of this Agreement and the transactions contemplated hereby, including without limitation all fees and expenses of its agents, representatives, counsel and accountants.  At Closing the Company shall reimburse such expenses for the Backstopper, provided that such reimbursement shall be capped at the lesser of (i) $75,000 and (ii) one-half percent (0.5%) of the Backstopper’s investment pursuant to Section 2.1(b) above.

5.5   Conduct of the Business of Company.  From the date hereof until the Closing Date, except (a) as expressly permitted by this Agreement, (b) as required by Law, or (c) with the written consent of the Backstopper (such consent not to be unreasonably withheld, conditioned or delayed), the Company shall conduct its business and operations in the ordinary course of business consistent with past practice and use commercially reasonable efforts to (i) preserve intact its present business organization; (ii)  maintain good relationships with its vendors, suppliers, and others having material business relationships with it; and (iii) manage its working capital in the ordinary course of business consistent with past practice.

Section 6.        CONDITIONS TO THE BACKSTOPPER’S OBLIGATIONS.  The obligations of the Backstopper to consummate the transactions contemplated hereby pursuant to this Agreement on the Closing Date shall be subject to the satisfaction at or prior to the Closing Date of each of the following conditions, any one or more of which may be waived in writing by the Backstopper except as provided below for Section 6.3:

6.1   Representations and Warranties.  (a) All of the representations and warranties made by the Company in this Agreement shall be true and correct in all material respects as of the Closing Date as though made at and as of the Closing Date (except to the extent such representations and warranties expressly speak as of an earlier date, which shall be true and correct as of such date); and (b) the Company shall have performed and complied in all material respects with all agreements and covenants required by this Agreement to be performed by the Company on or prior to the Closing Date or such earlier date as may be applicable.

6.2   Material Adverse Effect.  Since the date of this Agreement, there shall not have occurred, and there shall not exist, any event that constitutes, individually or in the aggregate, a Material Adverse Effect.

6.3   Independent Committee. The transactions contemplated hereby and by the Convertible Preferred Equity Offering have been approved by an independent committee of the Company’s board of directors that has been advised by independent counsel.

6.4   No Legal Impediment to Issuance. No Law or Order shall have become effective or been enacted, adopted or issued by any Governmental Authority that prohibits the implementation of this Agreement or the transactions contemplated herein.

6.5   Registration Rights.  The Company shall have delivered an executed Registration Rights Agreement to the Backstopper.

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Section 7.       CONDITIONS TO THE COMPANY’S OBLIGATIONS.  The obligations of the Company to issue and sell to the Backstopper the Convertible Preferred Stock, the Warrants, and the Backstop Fee pursuant to this Agreement shall be subject to the satisfaction at or prior to the Closing Date of each of the following conditions, any one or more of which may be waived in writing by the Company:

7.1   Representations and Warranties.  (a) All of the representations and warranties made by the Backstopper in this Agreement shall be true and correct in all material respects as of the date hereof and as of the Closing Date as though made at and as of the Closing Date (except to the extent such representations and warranties expressly speak as of an earlier date, which shall be true and correct as of such date) and (b) the Backstopper shall have performed and complied in all material respects with all agreements and covenants required by this Agreement to be performed by the Backstopper on or prior to the Closing Date.

7.2   No Legal Impediment to Issuance. No Law or Order shall have become effective or been enacted, adopted or issued by any Governmental Authority that prohibits the implementation of the Plan or the transactions contemplated by this Agreement.

Section 8.        TERMINATION.

(a)            Termination by the Backstopper.  This Agreement may be terminated at any time by the Backstopper following the occurrence of any of the following events (each a “Backstopper Termination Event”) immediately upon delivery of written notice to the Company; provided,  however that the Backstopper shall not be permitted to terminate this Agreement if at the time of such termination the Backstopper is in breach of any representation, warranty or covenant applicable to it in any material respect under this Agreement:

(i)              the Closing does not occur on or before the Commitment Outside Date;

(ii)             in the event of a breach by the Company of any representation, warranty, covenant or other agreement contained in this Agreement which would give rise to the failure of any of the conditions set forth in Section 6 hereof to be satisfied, which failure cannot be cured or is not cured before the earlier of (A) fifteen (15) Business Days after receipt of written notice thereof by the Company from the Backstopper and (B) the Commitment Outside Date; or

(iii)            any Governmental Authority of competent jurisdiction, enters a Final Order declaring this Agreement or any material portion hereof to be unenforceable.

(b)            Termination by the Company.  This Agreement may be terminated by the Company: (A) at any time; provided, however, that the Company shall be obligated to pay the Backstopper the Backstop Fee within ten (10) Business Days of notifying the Backstopper of such termination; (B)  following the occurrence of any of the following events immediately upon delivery of written notice to the Parties except as set forth below; provided,  however that the Company shall not be permitted to terminate this Agreement if, at the time of such termination, the Company is in breach of any representation, warranty or covenant applicable to it in any material respect under this Agreement:

11

 

 

(i)              in the event that a breach by the Backstopper of any representation, warranty, covenant or other agreement contained in this Agreement which would give rise to the failure of any of the conditions set forth in Section 7 hereof to be satisfied, which failure cannot be cured or is not cured before the earlier of (A) fifteen (15) Business Days after receipt of written notice thereof by the Backstopper from the Company and (B) the Commitment Outside Date; or

(ii)             any Governmental Authority of competent jurisdiction, enters a Final Order declaring this Agreement or any material portion hereof to be unenforceable.

(c)            The Backstopper agrees that, in the event of a Backstopper Default, the Backstopper will be liable to the Company for the consequences to the Company of the Backstopper Default and that the Company can enforce rights of damages and/or specific performance pursuant to Section 10.18.

(d)            Mutual Termination.  This Agreement may be terminated by the mutual written consent of the Company and the Backstopper; provided, however that the Parties may agree that in this instance, no Backstop Fee is payable by the Company.

(e)            Effect of Backstopper Termination.  Upon a termination of this Agreement in accordance with Section 8(a), the Backstopper shall have no continuing liability or obligation to any other Party hereunder and the provisions of this Agreement shall have no further force or effect with respect to the Backstopper, except for the provisions in this Section 8 and Sections 2.2 (as applicable),  9, and 10, each of which shall survive termination of this Agreement; provided,  however, that no such termination shall relieve the Backstopper from liability for its breach or non-performance of its obligations hereunder prior to the date of such termination and the rights of the Company as it relates to such breach or non-performance by the Backstopper shall be preserved in the event of the occurrence of such breach or non-performance and no such termination shall impact the liability of the Company for payment of the Backstop Fee.

(f)             Effect of Company or Mutual Termination.  Upon a termination of this Agreement in accordance with Sections 8(b) or 8(d), neither Party shall have any continuing liability or obligation to the other Party hereunder and the provisions of this Agreement shall have no further force or effect except for the provisions in this Section 8 and Sections 2.2 (as applicable), 9, and 10, each of which shall survive termination of this Agreement; provided that no such termination shall relieve either Party from liability for its breach or non-performance of its obligations hereunder prior to the date of such termination and the rights of the other Party as it relates to such breach or non-performance by the Party shall be preserved in the event of the occurrence of such breach or non-performance.

Section 9.        INDEMNIFICATION; EXCULPATION.  The Company agrees to indemnify and hold harmless the Indemnified Parties from and against any and all claims, damages, losses, liabilities and expenses (including, without limitation, fees and disbursements of counsel), that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or relating to this Agreement, the Definitive Documentation, or the transactions contemplated hereby or thereby, solely to the extent such

12

 

 

Definitive Documentation or transactions contemplated thereby relate to this Agreement and the Convertible Preferred Equity Offering, any use made or proposed to be made with the proceeds of the Commitments, or any claim, litigation, investigation or proceeding relating to any of the foregoing, regardless of whether any Indemnified Party is a party thereto, and the Company shall reimburse each Indemnified Party upon demand for reasonable fees and expenses of counsel (which, so long as there are no conflicts among such Indemnified Parties, shall be limited to one law firm serving as counsel for the Indemnified Parties) and other expenses incurred by it in connection with investigating, preparing to defend or defending, or providing evidence in or preparing to serve or serving as a witness with respect to, any lawsuit, investigation, claim or other proceeding relating to any of the foregoing, irrespective of whether the transactions contemplated hereby are consummated, except to the extent such claim, damage, loss, liability, or expense is found in a final, non-appealable order of a court of competent jurisdiction to have resulted from such Indemnified Party’s bad faith, actual fraud, gross negligence, or willful misconduct.  No Indemnified Party shall have any liability (whether direct or indirect, in contract, tort or otherwise) to the Company for or in connection with the transactions contemplated hereby, except to the extent such liability is found in a final, non-appealable order of a court of competent jurisdiction to have resulted from such Indemnified Party’s bad faith, actual fraud, gross negligence or willful misconduct.  In no event, however, shall the Company or any Indemnified Party be liable on any theory of liability for any special, indirect, consequential or punitive damages.  Without the prior written consent of the Indemnified Parties, the Company agrees that it will not enter into any settlement of any lawsuit, claim or other proceeding arising out of this Agreement, the Definitive Documentation, or the transactions contemplated hereby or thereby, solely to the extent such Definitive Documentation or transactions contemplated thereby relate to this Agreement and the Convertible Preferred Equity Offering, unless such settlement (i) includes an explicit and unconditional release from the party bringing such lawsuit, claim or other proceeding of all Indemnified Parties and (ii) does not include a statement as to or an admission of fault, culpability, or a failure to act by or on behalf of any Indemnified Party.  No Indemnified Party shall be liable for any damages arising from the use by unauthorized persons of any information made available to the Indemnified Parties by the Company or any of its representatives through electronic, telecommunications or other information transmission systems that is intercepted by such persons.  No Indemnified Party shall settle any lawsuit, claim, or other proceeding arising out of this Agreement, the Definitive Documentation, or the transactions contemplated hereby or thereby without the prior written consent of the Company (such consent not to be unreasonably withheld or delayed).  Notwithstanding the foregoing, an Indemnified Party shall be entitled to no indemnification by the Company for any claim, damage, loss, liability, or expense incurred by or asserted or awarded against such Indemnified Party for any violation of Law by such Indemnified Party.

Section 10.      MISCELLANEOUS.

10.1 Payments.  All payments made by or on behalf of the Company or any of their Affiliates to the Backstopper or its assigns, successors or designees pursuant to this Agreement shall be without withholding, set-off, counterclaim or deduction of any kind.

10.2 Arm’s Length Transaction.  The Company acknowledges and agrees that (i) the Commitments, the Convertible Preferred Equity Offering and any other transactions described in this Agreement are an arm’s-length commercial transaction between the Parties and (ii) the

13

 

 

Backstopper has not assumed nor will it assume an advisory or fiduciary responsibility in the Company’s favor with respect to any of the transactions contemplated hereby or the process leading thereto, and the Backstopper has no obligation to the Company with respect to the transactions contemplated hereby except those obligations expressly set forth in this Agreement or the Offering Documents to which it is a party.

10.3 Confidentiality.  The Parties agree that this Agreement shall not be disclosed to any Person other than (i) the Company and the Backstopper and their respective applicable officers, directors, employees, Affiliates, members partners, attorneys, accountants, agents and advisors, (ii) Persons that have entered into non-disclosure or similar agreements with a Party agreeing not to disclose information related to this Agreement or the transactions contemplated by this Agreement, and (iii) in any legal, judicial or administrative proceeding or as otherwise required by law or regulation or as requested by a governmental authority (in which case the Company and the Backstopper agree, to the extent permitted by law, to inform each other promptly in advance thereof (other than in connection with any audit or examination by bank accountants or any governmental, regulatory or self-regulatory authority exercising examination or regulatory authority over a Party)).

10.4 Survival.  The representations and warranties made in this Agreement will not survive the Closing and shall expire and be of no further force and effect simultaneously therewith.

10.5 No Waiver of Rights.  All waivers hereunder must be made in writing, and the failure of any Party at any time to require another Party’s performance of any obligation under this Agreement shall not affect the right subsequently to require performance of that obligation.  Any waiver of any breach of any provision of this Agreement shall not be construed as a waiver of any continuing or succeeding breach of such provision or a waiver or modification of any other provision.

10.6 Notices.  All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by an internationally recognized overnight courier service, by email or registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for any Party as shall be specified by such Party in a notice given in accordance with this Section).

(a)        If to the Company, to:

NextDecade Corporation

3 Waterway Square Place, Suite 400

The Woodlands, Texas 77380

Attention:        Krysta De Lima, General Counsel

krysta@next-decade.com

 

 

 

 

 

 

 

 

 

 

 

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With a copy (which shall not constitute notice to the Company) to:

 

King & Spalding LLP

1100 Louisiana Street

Houston, Texas 77002

Fax: (713) 751-3290

Attention: Jeffery K. Malonson

 

(b)        If to the Backstopper, to:

York Capital Management Global Advisors,  LLC

767 Fifth Avenue, 17th Floor

New York, NY 10153

Attention:        Brian Traficante

btraficante@yorkcapital.com

 

with a copy (which shall not constitute notice to the Backstopper) to:

Weil, Gotshal & Manges LLP

767 5th Avenue

New York, NY 10153

Attention:        Jaclyn L. Cohen

jackie.cohen@weil.com

 

Any of the foregoing addresses may be changed by giving notice of such change in the foregoing manner, except that notices for changes of address shall be effective only upon receipt.

10.7 Headings.  The section and subsection headings in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

10.8 Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, 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 transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.

10.9 Entire Agreement.  This Agreement and the agreements and documents referenced herein constitute the entire agreement of the Parties with respect to the subject matter hereof and supersede all prior agreements and undertakings, both written and oral, between the Parties with respect to the subject matter hereof.

10.10  Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.  Except as set forth

15

 

 

below, neither this Agreement nor any of the rights, interests or obligations under this Agreement will be assigned by either Party (whether by operation of law or otherwise) without the prior written consent of the other Party.  Notwithstanding the foregoing, the rights, obligations and interests hereunder may be assigned, delegated or transferred, in whole or in part, by the Backstopper to Affiliates and/or one or more third-parties satisfactory to the Company; provided,  however, that such transferee, as a condition precedent to such transfer, becomes a Party to this Agreement and assumes the obligations of the Backstopper under this Agreement by executing an addendum substantially in the form set forth in Exhibit A (the ”Addendum”) and  an assumption in substantially the form set forth in Exhibit B hereto (the “Assumption Agreement”) and deliver the same to the Company in accordance with Section 10.6, and provided,  further, that (a), with respect to a transfer to an Affiliate of a Backstopper, the Backstopper either (i) shall have provided an adequate equity support letter or a guarantee of such Affiliate-transferee’s Commitment, in form and substance reasonably acceptable to the Company or (ii) shall remain fully obligated to fund such Commitment and (b), with respect to a transfer to a third party, the Company, acting in good faith, shall have consented in writing to such transfer (which consent shall not be unreasonably withheld, conditioned or delayed) and shall have determined, in its reasonable discretion, after due inquiry and investigation, that such transferee is reasonably capable of fulfilling such obligations, or, absent such a determination, the proposed transferee shall have deposited with an agent of the Company or into an escrow account under arrangements satisfactory to the Company funds sufficient, in the reasonable determination of the Company, to satisfy such proposed transferee’s Commitment.  Any transfer that is made in violation of the immediately preceding sentence shall be null and void ab initio, and the Company shall have the right to enforce the voiding of such transfer.

10.11  No Third-Party Beneficiaries.  This Agreement shall be binding upon and inure solely to the benefit of the Parties and their respective successors and permitted assigns and, except as expressly set forth in Section 9, nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever.

10.12  Amendment.  This Agreement may not be altered, amended, or modified except by a written instrument executed by or on behalf of the Company and the Backstopper.

10.13  Governing Law.  This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of New York, without regard to the conflicts of law principles thereof.

10.14  Consent to Jurisdiction.  Each of the Parties (a) irrevocably and unconditionally agrees that any actions, suits or proceedings, at Law or equity, arising out of or relating to this Agreement or any agreements or transactions contemplated hereby shall be heard and determined within the State of Texas; (b) irrevocably submits to the jurisdiction of such court in any such action, suit or proceeding; (c) consents that any such action, suit or proceeding may be brought in such courts and waives any objection that such Party may now or hereafter have to the venue or jurisdiction or that such action or proceeding was brought in an inconvenient court; and (d) agrees that service of process in any such action, suit or proceeding may be effected by providing a copy thereof by any of the methods of delivery permitted by

16

 

 

Section 10.6 to such Party at its address as provided in Section 10.6 (provided that nothing herein shall affect the right to effect service of process in any other manner permitted by Law).

10.15  Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER THEORY).  EACH OF THE PARTIES HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.15.

10.16  Currency.  Unless otherwise specified in this Agreement, all references to currency, monetary values and dollars set forth herein shall mean United States (U.S.) dollars and all payments hereunder shall be made in United States dollars.

10.17  Counterparts.  This Agreement may be executed and delivered (including by facsimile or electronic transmission) in one or more counterparts, and by the different Parties in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.

10.18  Specific Performance.  Each Party acknowledges that, in view of the uniqueness of the securities referenced herein and the transactions contemplated by this Agreement, the other Party would not have an adequate remedy at law for money damages in the event that this Agreement has not been performed in accordance with its terms, and therefore agrees that the other Party shall be entitled to specific performance and injunctive or other equitable relief as the sole and exclusive remedy of any such breach, without the necessity of proving the inadequacy of monetary damages as a remedy.

10.19  Rules of Construction.  The Parties and their respective legal counsel participated in the preparation of this Agreement, and therefore, this Agreement shall be construed neither against nor in favor of any of the Parties, but rather in accordance with the fair meaning thereof. Unless the context of this Agreement clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the term “including” is not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder” and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement.  Section, subsection, clause, schedule, annex and exhibit references are to this Agreement unless otherwise specified.  Any reference to this Agreement shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements,

17

 

 

substitutions, and supplements thereto and thereof, as applicable.  Whenever the context may require, any pronoun includes the corresponding masculine, feminine and neuter forms.

[No further text appears; signature pages follow]

 

 

18

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written.

 

	

	

	

	

	
 

	
    

	
NEXTDECADE CORPORATION

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Matthew K. Schatzman                      

	
 

	
 

	
Name:  Matthew K. Schatzman

	
 

	
 

	
Title: President and Chief Executive Officer

	
 

	
 

	
 

 

[Backstop Commitment Agreement]

 

 

	

	

	

	

	
 

	
    

	
York Capital Management Global Advisors, LLC, severally on behalf of certain funds or accounts

	
 

	
 

	
advised by it or its affiliates 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ John J. Fosina

	
 

	
 

	
Name: John J. Fosina

	
 

	
 

	
Title: Chief Financial Officer

	
 

	
 

	
 

 

 

[Backstop Commitment Agreement]

 

 

Exhibit A

ADDENDUM

Reference is made to that certain Backstop Commitment Agreement (as amended, modified or supplemented from time to time, the “Agreement”) by and between NextDecade Corporation, a Delaware corporation (“NextDecade”), and York Capital Management Global Advisors, LLC, severally on behalf of certain funds or accounts advised by it or its affiliates or a successor thereof.  Each capitalized term used but not defined herein shall have the meaning given to it in the Agreement.

Upon execution and delivery of this Addendum by the undersigned, as provided in Section 10.10 of the Agreement, the undersigned hereby becomes the Backstopper, as applicable thereunder and bound thereby effective as of the date of the Agreement.

By executing and delivering this Addendum, the undersigned represents and warrants, for itself and for the benefit of the Company, that:

(a)       as of the date of this Addendum, the undersigned has executed and delivered an Assumption and Joinder Agreement therefor (a copy of which is attached to this Addendum);

(b)       as of the date of this Addendum, with respect to each transferee that (i) is an individual, such transferee has all requisite authority to enter into this Addendum and to carry out the transactions contemplated by, and perform its respective obligation under, the Agreement and (ii) is not an individual, such transferee is duly organized, validly existing, and in good standing under the laws of the state of its organization, and has all requisite corporate, partnership, or limited liability company power and authority to enter into this Addendum and to carry out the transactions contemplated by, and perform its respective obligations under, the Agreement;

(c)       assuming the due execution and delivery of the Agreement by NextDecade, the Addendum and the Agreement are legally valid and binding obligations of it, enforceable against it in accordance with its terms, except as may be limited by bankruptcy, insolvency or similar laws, or by equitable principles relating to or limiting creditors’ rights generally; and

(d)       as of the date of this Addendum, it is not aware of any event that, due to any fiduciary or other duty to any other person, would prevent it from taking any action required of it under the Agreement and this Addendum.

By executing and delivering this Addendum to NextDecade, the undersigned agrees to be bound by all the terms of the Agreement.

The undersigned acknowledges and agrees that once delivered to NextDecade, it may not revoke, withdraw, amend, change or modify this Addendum unless the Agreement has been terminated.

 

 

THIS ADDENDUM SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

This Addendum may be executed in one or more counterparts, each of which, when so executed, shall constitute the same instrument and the counterparts may be delivered by facsimile transmission or by electronic mail in portable document format (.pdf).

[Signature on Following Page]

 

 

 

IN WITNESS WHEREOF, the Parties have caused this Addendum to be duly executed and delivered by their proper and duly authorized officers as of this [__] day of [___].

 

	
 

	
    

	
TRANSFEREE WHO BECOMES A 

	
 

	
 

	
BACKSTOPPER

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[NAME]

	
 

	
 

	
 

	
 

	
 

	
as a Backstopper

	
 

	
 

	
Name:

 

 

 

Exhibit B

ASSUMPTION AND JOINDER AGREEMENT

Reference is made to (i) that certain Backstop Commitment Agreement (as amended, modified or supplemented from time to time, the “Agreement”), dated as of April 11, 2018, by and between NextDecade Corporation, a Delaware corporation (“NextDecade”), and York Capital  Management Global Advisors,  LLC, severally on behalf of certain funds or accounts advised by it or its affiliates, or a successor thereof, and (ii) that certain Addendum, dated as of [__], [__] (the “Transferor Addendum”) submitted by                     , as transferor (the “Transferor”).  Each capitalized term used but not defined herein shall have the meaning given to it in the Agreement.

As a condition precedent to becoming the Backstopper, the undersigned (the “Transferee”) hereby agrees to become bound by all the terms, conditions and obligations set forth in the Agreement and the Transferor Addendum copies of which are attached hereto as Annex I.  This Assumption and Joinder Agreement shall take effect and shall become an integral part of the Agreement and the Transferor Addendum immediately upon its execution, and the Transferee shall be deemed to be bound by all of the terms, conditions and obligations of the Agreement and the Transferor Addendum as of the date thereof.  The Transferee shall hereafter be deemed to be the “Backstopper” and a “Party” for all purposes under the Agreement.

[Signatures on Following Page]

 

 

 

IN WITNESS WHEREOF, this Assumption and Joinder Agreement has been duly executed by each of the undersigned as of the date specified below.

	
Date:  [___]

	
    

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name of Transferor

	
 

	
Name of Transferee

	
 

	
 

	
 

	
 

	
 

	
 

	
Authorized Signatory of Transferor

	
 

	
Authorized Signatory of Transferee

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(Type or Print Name and Title of Authorized Signatory)

	
 

	
(Type or Print Name and Title of Authorized Signatory)

	
 

	
 

	
 

	
 

	
 

	
Address of Transferee:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Attn:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Tel:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Fax:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
E-mail:

	
 

	
 

	
 

	
 

	
 

	
 

25

 

 

Exhibit C

CERTIFICATE OF DESIGNATIONS

OF

SERIES A CONVERTIBLE PREFERRED STOCK

 

26

 

 

Exhibit D

USE OF PROCEEDS

Proceeds from the Convertible Preferred Equity Offering shall be used by the Company for development activities related to the liquefaction of natural gas and the sale of liquefied natural gas (“LNG”) in international markets, including:

    Development activities related to the Rio Grande LNG terminal facility at the Port of Brownsville in southern Texas and an associated 137-mile Rio Bravo pipeline to supply gas to the terminal, in each case, including activities and businesses reasonably complementary or ancillary thereto and reasonable extensions thereof;

    Development activities related to an approximate 1,000-acre site near Texas City, Texas for a second potential LNG terminal, including activities and businesses reasonably complementary or ancillary thereto and reasonable extensions thereof; and

    Development activities conducted in overseas locations (including, but not limited to China and Singapore) in direct support of the Company’s businesses as set forth above.

 

 

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