Document:

EX-4.2

 Exhibit 4.2 

AXIS SPECIALTY FINANCE LLC, Issuer 

AXIS CAPITAL HOLDINGS LIMITED, 

Guarantor 
 AND 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 

Trustee 
 FIRST
SUPPLEMENTAL INDENTURE 
 Dated as of December 10, 2019 

 
  

4.900% Fixed-Rate Reset Junior Subordinated Notes due 2040 

  
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 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I DEFINITIONS
	  	 	1	 
	 Section 1.1
	 	Definition of Terms	  	 	1	 
		
	 ARTICLE II CREATION OF THE JUNIOR SUBORDINATED NOTES
	  	 	7	 
	 Section 2.1
	 	Designation of Series	  	 	7	 
	 Section 2.2
	 	Form of Junior Subordinated Notes	  	 	7	 
	 Section 2.3
	 	Interest Rate	  	 	7	 
	 Section 2.4
	 	Payment of Interest	  	 	8	 
	 Section 2.5
	 	Arrears of Interest	  	 	8	 
	 Section 2.6
	 	Initial Amount of Junior Subordinated Notes	  	 	9	 
	 Section 2.7
	 	Minimum Denomination	  	 	9	 
	 Section 2.8
	 	No Encumbrances	  	 	9	 
	 Section 2.9
	 	No Sinking Fund	  	 	9	 
	 Section 2.10
	 	Supplemental Indentures without the Consent of Securityholders	  	 	10	 
	 Section 2.11
	 	Subordination	  	 	10	 
	 Section 2.12
	 	No Rights of Set-Off	  	 	10	 
	 Section 2.13
	 	Defeasance	  	 	10	 
	 Section 2.14
	 	Variation and Substitution of the Junior Subordinated Notes	  	 	10	 
	 Section 2.15
	 	Agreement to Certain Tax Treatment	  	 	11	 
	 Section 2.16
	 	Calculation Agent	  	 	11	 
		
	 ARTICLE III REPAYMENT AND REDEMPTION OF THE JUNIOR SUBORDINATED NOTES
	  	 	12	 
	 Section 3.1
	 	Repayment at Final Maturity Date	  	 	12	 
	 Section 3.2
	 	Optional Redemption of Junior Subordinated Notes	  	 	12	 
	 Section 3.3
	 	Specified Event Redemption of Junior Subordinated Notes	  	 	13	 
	 Section 3.4
	 	BMA Redemption Requirements	  	 	15	 
	 Section 3.5
	 	Dividend and Other Payment Stoppages During Mandatory Deferral Periods	  	 	15	 
		
	 ARTICLE IV REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
	  	 	16	 
	 Section 4.1
	 	Event of Default Defined; Acceleration of Maturity; Waiver of Default	  	 	16	 
		
	 ARTICLE V MISCELLANEOUS PROVISIONS
	  	 	18	 
	 Section 5.1
	 	Application of First Supplemental Indenture	  	 	18	 
	 Section 5.2
	 	Recitals by the Issuer and the Guarantor	  	 	18	 
	 Section 5.3
	 	Ratification and Incorporation of Base Indenture	  	 	18	 
	 Section 5.4
	 	Executed in Counterparts	  	 	18	 
	 Section 5.5
	 	New York Law to Govern	  	 	18	 
	 Section 5.6
	 	Waiver of Jury Trial	  	 	18	 
	 Section 5.7
	 	Effect of Headings	  	 	18	 
	 Section 5.8
	 	Successors	  	 	18	 
	 Section 5.9
	 	Separability Clause	  	 	19	 
	 Section 5.10
	 	Trust Indenture Act	  	 	19	 

  
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 THIS FIRST SUPPLEMENTAL INDENTURE (the “First Supplemental Indenture”) is
made as of the 10th day of December, 2019, among AXIS SPECIALTY FINANCE LLC, a Delaware limited liability company (the “Issuer”), AXIS CAPITAL HOLDINGS LIMITED, an exempted company incorporated in Bermuda as a holding company (the
“Guarantor”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, as trustee (the “Trustee”). 

RECITALS OF THE ISSUER AND THE GUARANTOR 

WHEREAS, the Issuer, the Guarantor and the Trustee entered into a Junior Subordinated Indenture, dated as of December 10, 2019 (the
“Base Indenture”), pursuant to which junior unsecured subordinated debentures, notes or other evidences of junior unsecured subordinated indebtedness of the Issuer (the “Securities”) may from time to time be issued;

 WHEREAS, the Base Indenture is incorporated herein by this reference; 

WHEREAS, pursuant to Section 8.1(1)(e) of the Base Indenture, the Issuer, the Guarantor and the Trustee may enter into supplemental
indentures to establish the form or terms of Securities of any series as permitted by Sections 2.1 and 2.3 of the Base Indenture; 

WHEREAS, the Issuer desires to issue its Junior Subordinated Notes (as defined in Section 2.1), fully and unconditionally guaranteed by
the Guarantor, as a new series of Securities under the Base Indenture and has duly authorized the creation and issuance of this series of Securities and the execution and delivery of this First Supplemental Indenture to modify the Base Indenture and
provide certain additional provisions as hereinafter set forth (the Base Indenture, as amended and supplemented by this First Supplemental Indenture, is hereinafter referred to as the “Indenture”) solely in respect of the Junior
Subordinated Notes; 
 WHEREAS, the Issuer has requested and hereby requests that the Trustee join with the Issuer and the Guarantor in the
execution of this First Supplemental Indenture, which has been authorized by the Issuer’s managing member and a resolution of the Guarantor’s Board of Directors; and 

WHEREAS, all conditions necessary to authorize the execution and delivery of this First Supplemental Indenture and make it a valid and binding
obligation of the Issuer and the Guarantor, in accordance with its terms, have been done or performed. 
 NOW THEREFORE, in consideration of
the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree, in respect of the Junior Subordinated Notes only and not any other
series of Securities, as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.1 Definition of Terms. Unless otherwise provided herein or unless the context otherwise requires: 

(a) a term defined in the Base Indenture has the same meaning when used in this First Supplemental Indenture; 

 (b) a term defined anywhere in this First Supplemental Indenture has the same meaning
throughout; 
 (c) the singular includes the plural and vice versa; 

(d) headings are for convenience of reference only and do not affect interpretation; 

(e) if any provision of the Applicable Supervisory Regulations referred to in this First Supplemental Indenture or in the Junior Subordinated
Notes in connection with any requirements applying to the Guarantor and/or the Insurance Group is amended or replaced so that there is no corresponding provision in the amended or replacement measures, (i) if the requirement concerned is
entirely dependent on the existence of such a corresponding provision, the requirement shall cease to apply and (ii) if the requirement concerned is partially dependent on the existence of such a corresponding provision, the requirement shall
be deemed modified so that all parts of that requirement solely dependent on that provision shall cease to apply; provided, in each case, that Holders of the Junior Subordinated Notes are not adversely affected thereby; and 

(f) the following terms have the meanings given to them in this Section 1.1(f): 

“accrued and unpaid interest” has the meaning set forth in Section 2.5(c). 

“Applicable Supervisory Regulations” means such insurance supervisory laws, rules and regulations relating to group
supervision or the supervision of single insurance entities, as applicable, which are applicable to the Guarantor or the Insurance Group. “Applicable Supervisory Regulations” shall mean the Group Rules until such time when the BMA no
longer has jurisdiction or responsibility to regulate the Guarantor or the Insurance Group. 
 “Arrears of Interest” has
the meaning set forth in Section 2.5(a). 
 “BMA” means the Bermuda Monetary Authority, or, should the Bermuda
Monetary Authority no longer have jurisdiction or responsibility to regulate the Issuer or the Insurance Group, as the context requires, a regulator that administers the Applicable Supervisory Regulations. 

“BMA Approval” means the BMA has given, and not withdrawn by the applicable redemption date, its prior consent to the
redemption of the relevant Junior Subordinated Notes. 
 “BMA Redemption Requirements” has the meaning set forth in
Section 3.4(a). 
 “Calculation Agent” means, at any time, the Person appointed by the Issuer and that has accepted
such appointment to serve as such agent with respect to the Junior Subordinated Notes at such time. 

  
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 “capital stock” has the meaning forth in Section 3.5. 

A “Capital Disqualification Event” has occurred if the Junior Subordinated Notes cease to qualify, in whole or in part
(including as a result of any transitional or grandfathering provisions or otherwise), for purposes of determining the solvency margin, capital adequacy ratios or any other comparable ratios, regulatory capital resource or level, of the Issuer or
the Insurance Group, where capital is subdivided into tiers, as Tier 2 Capital securities under then-applicable Applicable Supervisory Regulations imposed upon the Issuer by the BMA, which would include, without limitation, the Enhanced Capital
Requirement, except as a result of any applicable limitation on the amount of such capital. 
 “Comparable Treasury Issue”
means the United States Treasury security selected by the Independent Investment Banker as having a maturity comparable to the remaining term of the Junior Subordinated Notes to be redeemed if the Junior Subordinated Notes matured on the Par Call
Date. 
 “Comparable Treasury Price” means (1) the average of four Reference Treasury Dealer Quotations for such
redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such
quotations. 
 “ECR” means the enhanced capital and surplus requirement applicable to the Insurance Group and as defined in
the Insurance Act, or, should the Insurance Act or the Group Rules no longer apply to the Insurance Group, any and all other solvency capital requirements defined in the Applicable Supervisory Regulations. 

“Enhanced Capital Requirement” means the ECR or any other requirement to maintain assets applicable to the Issuer or in
respect of the Insurance Group, as applicable, pursuant to the Applicable Supervisory Regulations. 
 “Event of Default”
has the meaning forth in Section 4.1. 
 “Final Maturity Date” means (1) the Scheduled Maturity Date, if, on the
Scheduled Maturity Date, the BMA Redemption Requirements are satisfied, or (2) otherwise, following the Scheduled Maturity Date, the earlier of (a) the date falling 10 Business Days after the BMA Redemption Requirements are satisfied and
would continue to be satisfied if such payment were made and (b) the date on which a Winding-Up of the Issuer or the Guarantor occurs. 

“Five-Year Treasury Rate” means, as of any Reset Interest Determination Date, as applicable, (1) the yield, under the
heading which represents the average for the immediately preceding week, appearing in the most recently published H.15, with a maturity of five years from the next Reset Date and trading in the public securities market or (2) if there is no
such published U.S. Treasury security with a maturity of five years from the next Reset Date and trading in the public securities markets, the rate will be determined by interpolation or extrapolation on a straight line basis between the most recent
weekly average yield to maturity for two series of U.S. Treasury securities trading in the public securities market, (A) one maturing as close as possible to, but earlier than, the Reset Date following the next succeeding

  
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Reset Interest Determination Date, and (B) the other maturity as close as possible to, but later than, the Reset Date following the next succeeding Reset Interest Determination Date, in each
case as published in the most recently published H.15. If the Five-Year Treasury Rate cannot be determined pursuant to the methods described in clauses (1) or (2) above, then the Five-Year Treasury Rate will be the same interest rate as in
effect for the prior period. 
 “Group Rules” means the Group Solvency Standards, together with the Group Supervision
Rules, as those rules and regulations may be amended or replaced from time to time. 
 “Group Solvency Standards” means the
Bermuda Insurance (Prudential Standards) (Insurance Group Solvency Requirement) Rules 2011, as those rules and regulations may be amended or replaced from time to time. 

“Group Supervision Rules” means the Bermuda Insurance (Group Supervision) Rules 2011, as those rules and regulations may be
amended or replaced from time to time. 
 “Guarantee” means the Guarantor’s full and unconditional guarantee to the
Holders of the Junior Subordinated Notes and to the Trustee of all payment obligations of the Issuer on the Junior Subordinated Notes when due, in accordance with the provisions of the Indenture. 

“H.15” means the weekly statistical release designated as such, or any successor publication, published by the Board of
Governors of the United States Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities.” 

“Independent Investment Banker” means any one of Wells Fargo Securities, LLC, Citigroup Global Markets Inc. and their
successors or, if none of such firms is willing or able to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Issuer. 

“Insurance Act” means the Bermuda Insurance Act 1978, as amended from time to time. 

“Insurance Group” means all subsidiaries of the Guarantor that are regulated insurance or reinsurance companies (or part of
such regulatory group) pursuant to the Applicable Supervisory Regulations. 
 “Interest Payment Date” means January 15
and July 15 of each year. 
 “Interest Rate Reset Spread” has the meaning set forth in Section 2.3. 

A “Mandatory Deferral Event” will be deemed to have occurred if the Guarantor or the Insurance Group is in breach of the
Enhanced Capital Requirement, or would breach the Enhanced Capital Requirement if payment of accrued and unpaid interest on the Junior Subordinated Notes, together with any accrued and unpaid interest on any junior subordinated notes outstanding
that rank equally in right of payment with the Junior Subordinated Notes, were made. 
 “Mandatory Deferral Period” has the
meaning set forth in Section 2.4. 

  
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 “Par Call Date” has the meaning set forth in Section 3.2(a). 

“Qualifying Equivalent Securities” has the meaning set forth in Section 2.14(d). 

“Rating Agency” means any nationally recognized statistical rating organization, as defined in Section 3(a)(62) of the
Securities Exchange Act of 1934, as amended. 
 “Rating Agency Event” has occurred if any Rating Agency that then publishes
a rating for the Issuer amends, clarifies or changes the criteria it uses to assign equity credit to securities such as the Junior Subordinated Notes, which amendment, clarification or change results in (1) the shortening of the length of time
the Junior Subordinated Notes are assigned a particular level of equity credit by that Rating Agency as compared to the length of time they would have been assigned that level of equity credit by that Rating Agency or its predecessor on the initial
issuance of the Junior Subordinated Notes; or (2) the lowering of the equity credit (including up to a lesser amount) assigned to the Junior Subordinated Notes by that Rating Agency as compared to the equity credit assigned by that Rating
Agency or its predecessor on the initial issuance of the Junior Subordinated Notes. 
 “Reference Treasury Dealer” means
each of Wells Fargo Securities, LLC, Citigroup Global Markets Inc. and their respective successors and two other primary U.S. government securities dealers (each a “Primary Treasury Dealer”), as specified by the Issuer; provided,
that (1) if any of the foregoing shall cease to be a Primary Treasury Dealer, the Issuer will substitute therefor another Primary Treasury Dealer and (2) if the Issuer fails to select a substitute within a reasonable period of time, then
the substitute will be a Primary Treasury Dealer selected by the Independent Investment Banker after consultation with the Issuer. 

“Reference Treasury Dealer Quotations” mean, with respect to a Reference Treasury Dealer and any redemption date, the
average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed, in each case, as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by
such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date. 
 “Reset
Date” means the Par Call Date and each date falling on the fifth anniversary of the preceding Reset Date. 
 “Reset
Interest Determination Date” means, in respect of any Reset Period, the day falling two business days prior to the beginning of such Reset Period. 

“Reset Period” means the period from and including the Par Call Date to, but excluding, the next following Reset Date and
thereafter each period from and including each Reset Date to, but excluding, the next following Reset Date. 
 “Scheduled Maturity
Date” means January 15, 2040. 
 “Specified Event” means, with respect to the Junior Subordinated Notes, the
occurrence of any of a Capital Disqualification Event, a Rating Agency Event or a Tax Event. 

  
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 “Specified Event Redemption” has the meaning forth in Section 3.3(a).

 A “Tax Event” will occur with respect to the Junior Subordinated Notes if an opinion of a recognized independent tax
counsel has been delivered to the Trustee stating that, as a result of: (i) any amendment to, clarification of, or change, including any announced prospective change, in the laws or treaties of any Taxing Jurisdiction, or any regulations under
those laws or treaties; (ii) an administrative action with respect to a Taxing Jurisdiction, which means any judicial decision or any official administrative pronouncement, ruling, regulatory procedure, notice or announcement including any
notice or announcement of intent to issue or adopt any administrative pronouncement, ruling, regulatory procedure or regulation; (iii) any amendment to, clarification of, or change in the official position or the interpretation of any
administrative action or judicial decision or any interpretation or pronouncement that provides for a position with respect to an administrative action or judicial decision that differs from the previously generally accepted position, in each case
by any legislative body, court, governmental authority or regulatory body in a Taxing Jurisdiction, regardless of the manner in which that amendment, clarification or change is introduced or made known; or (iv) a threatened challenge asserted
in writing in connection with an audit of the Issuer or the Guarantor or any of their subsidiaries, or a publicly-known threatened challenge asserted in writing against any other taxpayer that has raised capital through the issuance of securities
that are substantially similar to the Junior Subordinated Notes, which amendment, clarification or change is effective or the administrative action is taken or judicial decision, interpretation or pronouncement is issued or threatened challenge is
asserted or becomes publicly-known after the date of the original issuance of the Junior Subordinated Notes, there is more than an insubstantial risk that interest payable by the Issuer or the Guarantor, as applicable, in respect of the Junior
Subordinated Notes is no longer, or within 90 days of the date of the opinion will no longer be, fully deductible by the Issuer or the Guarantor, as applicable, for income tax purposes in the applicable Taxing Jurisdiction, and that non-deductibility cannot be avoided by the Issuer or the Guarantor, as applicable, taking such reasonable measures as it (acting in good faith) deems appropriate. 

“Taxing Jurisdiction” means the United States, the State of Delaware or Bermuda, or any political subdivision thereof, or any
authority or agency therein having the power to tax, or any other jurisdiction from or through which the Issuer or the Guarantor makes a payment on the Junior Subordinated Notes or the Guarantee or in which the Issuer or the Guarantor generally
becomes subject to taxation, or any jurisdiction in which a successor of the Issuer or the Guarantor is formed. 
 “Tier 2
Capital” means “Tier 2 Ancillary Capital” under the Group Supervision Rules or, if the Group Supervision Rules are amended so as to no longer refer to Tier 2 Ancillary Capital in this respect, the nearest corresponding concept (if
any) under the Group Supervision Rules, as amended. 
 “Treasury Rate” means (1) the yield, under the heading which
represents the average for the immediately preceding week, appearing in the most recently published H.15 for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining term of the
Junior Subordinated Notes (assuming the Junior Subordinated Notes matured on the Par Call Date), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be
interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest 

  
 6 

 
month) or (2) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per year equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption
date. The Treasury Rate shall be calculated on the third Business Day preceding the redemption date. 
 “Winding-Up” will occur, with respect to any Person, if: (i) at any time an order is made, or an effective resolution is passed, for the winding-up of such Person
(except, in any such case, a solvent winding-up solely for the purpose of a reorganization, merger or amalgamation or the substitution in place of such Person of a successor in business of such Person, the
terms of which reorganization, merger, amalgamation or substitution (A) have previously been approved in writing by the Trustee or by Holders of a majority in aggregate principal amount of the Outstanding Junior Subordinated Notes and
(B) do not provide that the Junior Subordinated Notes or any amount in respect thereof shall thereby become payable); or (ii) an administrator of such Person is appointed and such administrator gives notice that it intends to declare and
distribute a dividend. 
 ARTICLE II 

CREATION OF THE JUNIOR SUBORDINATED NOTES 

Section 2.1 Designation of Series. Pursuant to the terms hereof and Sections 2.1 and 2.3 of the Base Indenture, the Issuer hereby
creates a new series of its Securities designated as its “4.900% Fixed-Rate Reset Junior Subordinated Notes due 2040” (the “Junior Subordinated Notes”) and such Junior Subordinated Notes shall be deemed
“Securities” for all purposes under the Indenture. 
 Section 2.2 Form of Junior Subordinated Notes. The Junior
Subordinated Notes shall be substantially in the form set forth in Exhibit A hereto, which is incorporated herein and made part hereof. 

Section 2.3 Interest Rate. The Junior Subordinated Notes will bear interest (i) from the Issue Date to, but excluding, the
Par Call Date at the fixed rate of 4.900% per annum and (ii) from, and including, the Par Call Date, during each Reset Period, at a rate per annum equal to the Five-Year Treasury Rate as of the most recent Reset Interest Determination Date plus
3.186% (the “Interest Rate Reset Spread”) to be reset on each Reset Date. The applicable interest rate for each Reset Period will be determined by the Calculation Agent, as of the applicable Reset Interest Determination Date.
Promptly upon such determination, the Calculation Agent shall notify the Issuer of the interest rate for the relevant Reset Period. The Issuer shall then promptly notify the Trustee and paying agent in writing of such interest rate. The Calculation
Agent’s determination of any interest rate and its calculation of the amount of interest for any Reset Period beginning on or after the Par Call Date will be on file at the Issuer’s offices as set forth in Section 11.4 of the Base
Indenture, will be made available to any Holder of the Junior Subordinated Notes upon request and will be final and binding in the absence of manifest error. 

  
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 Section 2.4 Payment of Interest. If, as of any Interest Payment Date, a
Mandatory Deferral Event has occurred and is continuing, the Issuer and the Guarantor shall be required to defer payment of all (and not less than all) of the interest accrued on the Junior Subordinated Notes as of such Interest Payment Date (a
“Mandatory Deferral Period”). Any such accrued interest, the payment of which is so deferred, so long as such interest remains unpaid, will constitute Arrears of Interest on the Junior Subordinated Notes and will be subject to
Section 2.5. The Issuer shall provide to the Trustee an Officers’ Certificate identifying the beginning of the Mandatory Deferral Period and shall notify the Holders of the Junior Subordinated Notes at least five Business Days before the
first Interest Payment Date during the Mandatory Deferral Period unless the Mandatory Deferral Event occurs within such five Business Day period, in which case the Issuer shall so notify the Holders of the Junior Subordinated Notes promptly
following the occurrence of such Mandatory Deferral Event. 
 Notwithstanding any other provision of the Indenture or the Junior
Subordinated Notes, the deferral resulting from a Mandatory Deferral Event will constitute neither an Event of Default nor a default of any kind, and will not give Holders of the Junior Subordinated Notes or the Trustee any right to accelerate
repayment of the Junior Subordinated Notes or any other remedies. 
 Section 2.5 Arrears of Interest. 

(a) Any interest in respect of the Junior Subordinated Notes not paid on an Interest Payment Date, together with any interest in respect of
the Junior Subordinated Notes not paid on an earlier Interest Payment Date will, so long as the same remains unpaid, constitute “Arrears of Interest” in respect of the Junior Subordinated Notes. Arrears of Interest shall be
cumulative and bear interest at the interest rate payable on the Junior Subordinated Notes (such cumulative interest also constituting Arrears of Interest). Arrears of Interest on the Junior Subordinated Notes will remain outstanding, and will
accumulate interest, for so long as they remain unpaid. Any reference in the Indenture or a Junior Subordinated Note to principal, premium or interest in respect of the Junior Subordinated Notes, any redemption amount and any other amounts in the
nature of principal shall be deemed also to refer to Arrears of Interest applicable to the Junior Subordinated Notes that may be payable under the Indenture. 

(b) So long as no Event of Default or Mandatory Deferral Event has occurred and is continuing, at the Issuer’s option, Arrears of
Interest on the Junior Subordinated Notes may be paid in whole or in part to the Persons in whose names the Junior Subordinated Notes are registered as of the close of business on the 15th calendar day (whether or not such date is a Business Day)
immediately preceding the date on which payment of such Arrears of Interest is to be made, at any time upon the expiration of not more than 15 nor less than five Business Days’ written notice to the Trustee preceding such record date, the
Paying Agent and the Holders of the Junior Subordinated Notes to such effect (which written notice shall specify the amount of such Arrears of Interest). 

  
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 (c) If not previously paid, Arrears of Interest with respect to the Junior Subordinated
Notes shall become due and payable, and shall be paid in whole (and not in part), on the earliest of: 
 (i) so long as no
Event of Default or Mandatory Deferral Event has occurred and is continuing, the next Interest Payment Date for the Junior Subordinated Notes; 

(ii) the date of redemption of the Junior Subordinated Notes in accordance with Article III; 

(iii) the date on which a Winding-Up of the Issuer or the Guarantor occurs; or 

(iv) the Final Maturity Date for the Junior Subordinated Notes; 

provided that, in the event of there being Arrears of Interest on the Final Maturity Date, such Arrears of Interest
shall be paid before any repayment of principal. Any references in the Indenture to “accrued and unpaid interest” shall include any Arrears of Interest. 

Section 2.6 Initial Amount of Junior Subordinated Notes. 

(a) The Junior Subordinated Notes initially will be issued in the aggregate principal amount of $425,000,000 and may, upon execution of this
First Supplemental Indenture, be executed by the Issuer and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver said Junior Subordinated Notes in accordance with an Issuer Order. 

(b) The Issuer may, without notice to or the consent of the Holders of the Junior Subordinated Notes, issue additional notes having the same
ranking and the same interest rate, maturity and other terms as the Junior Subordinated Notes, except for the public offering price and issue date and, in some cases, the first interest payment date and first interest accrual date; provided
that, if any such additional notes are not fungible with the Junior Subordinated Notes for U.S. federal income tax purposes, such additional notes will have one or more separate CUSIP numbers from the Junior Subordinated Notes. Any additional notes
having such similar terms will, together with the Junior Subordinated Notes, constitute a single series of Securities under the Indenture. No additional notes may be issued if an Event of Default or Mandatory Deferral Event has occurred and is
continuing with respect to the Junior Subordinated Notes. 
 Section 2.7 Minimum Denomination. The Junior Subordinated Notes
shall be issuable only in registered form and without coupons in denominations of $2,000 and any integral multiples of $1,000 in excess thereof. 

Section 2.8 No Encumbrances. By purchasing the Junior Subordinated Notes, each Holder of the Junior Subordinated Notes is deemed
to agree and acknowledge that no security or encumbrance of any kind is, or will at any time be, provided by the Issuer, the Guarantor or any of their respective affiliates to secure the rights of Holders of the Junior Subordinated Notes. 

Section 2.9 No Sinking Fund. The Junior Subordinated Notes do not have the benefit of any mandatory redemption or sinking fund
obligation and are not redeemable at the option of the Holders of the Junior Subordinated Notes. 

  
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 Section 2.10 Supplemental Indentures without the Consent of Securityholders.
Solely with respect to the Junior Subordinated Notes, Section 8.1(1)(a) of the Base Indenture shall not apply. 
 Section 2.11
Subordination. The Junior Subordinated Notes are contractually subordinated in right of payment to any existing and future liabilities of the Guarantor’s subsidiaries (other than the Issuer and AXIS Specialty Finance PLC), including
amounts owed to holders of reinsurance and insurance policies issued by its reinsurance and insurance company subsidiaries. 

Section 2.12 No Rights of Set-Off. The Indenture does not in any way give rise to any
rights of set-off, recoupments or counterclaims against any claims and obligations of the Issuer, the Guarantor or any of the Insurance Group to any Person in whose names the Junior Subordinated Notes are
registered or any creditor of the Issuer, the Guarantor or any of the Insurance Group. 
 Section 2.13 Defeasance. The
provisions of Article X of the Base Indenture for defeasance at any time of (a) the entire indebtedness of the Issuer pursuant to the Junior Subordinated Notes and (b) restrictive covenants set forth in Sections 9.1 and 3.5 of the Base
Indenture and the related Events of Default, upon compliance by the Issuer with the conditions set forth therein, shall apply to the Junior Subordinated Notes. 

Section 2.14 Variation and Substitution of the Junior Subordinated Notes. 

(a) If a Specified Event occurs, the Issuer may, as an alternative to redemption of the Junior Subordinated Notes, at any time, without the
consent of any Holder, vary any term or condition of the Junior Subordinated Notes or substitute all (but not less than all) of the Junior Subordinated Notes for other securities, so that the varied Junior Subordinated Notes or the substituted
securities, as the case may be, become Qualifying Equivalent Securities. 
 (b) In the event of a substitution pursuant to this
Section 2.14, the principal amount of the Qualifying Equivalent Securities to be received by Holders shall be equal to the principal amount of the Junior Subordinated Notes substituted. 

(c) Any variation or substitution of the Junior Subordinated Notes is subject to its prior notification by the Issuer to the Holders by no
more than 60 nor less than 30 calendar days’ prior notice by the Issuer to the Holders (which notice shall be irrevocable and shall specify the date fixed for such variation or substitution) and to: 

(i) the Issuer being in compliance with the Applicable Supervisory Regulations on the date of such variation or substitution
(giving effect to such variation or substitution), and such variation or substitution not resulting directly or indirectly in a breach of the Applicable Supervisory Regulations; 

(ii) the Issuer complying with the rules of any stock exchange (or any other relevant authority) on which the Issuer has had
the Junior Subordinated Notes listed or admitted to trading; 

  
 10 

 (iii) in respect of substitution only, all payments of interest, including
Arrears of Interest, and any other amount payable under the Junior Subordinated Notes that, in each case, has accrued to Holders of the Junior Subordinated Notes and has not been paid, being satisfied in full on or prior to the date thereof; and

 (iv) immediately after the substitution or variation not triggering the right on the Issuer’s part to redeem the
Junior Subordinated Notes pursuant to Section 3.3(a). 
 (d) “Qualifying Equivalent Securities” means securities which
have terms not materially less favorable to the Holders than the Junior Subordinated Notes, as reasonably determined by the Issuer or the Guarantor in consultation with an independent investment bank, consulting firm or comparable expert of
international standing on the subject, and which: 
 (i) satisfy the criteria for the eligibility for inclusion of the
proceeds of the Junior Subordinated Notes, under the Applicable Supervisory Regulations; 
 (ii) contain terms providing for
the same interest rate and interest payment dates applying to the Junior Subordinated Notes; 
 (iii) rank senior to or have
the same ranking as the Junior Subordinated Notes; 
 (iv) preserve all obligations as to repayment of the Junior
Subordinated Notes, including (without limitation) as to timing of such repayment (including preserving the same Scheduled Maturity Date and Final Maturity Date); 

(v) do not contain terms providing for loss absorption through principal write-down or conversion to ordinary shares; and 

(vi) preserve any rights to any accrued and unpaid interest, and any existing rights to other amounts payable under the Junior
Subordinated Notes which has accrued to Holders and not been paid. 
 Section 2.15 Agreement to Certain Tax Treatment. The
Issuer, the Guarantor and AXIS Specialty U.S. Holdings, Inc. agree, and each Holder and beneficial owner of the Junior Subordinated Notes will, by accepting the Junior Subordinated Notes or a beneficial interest therein, be deemed to have agreed, to
treat the Junior Subordinated Notes as indebtedness of AXIS Specialty U.S. Holdings, Inc. for U.S. federal income tax purposes, unless otherwise required by applicable law. 

Section 2.16 Calculation Agent. Unless the Issuer has validly redeemed all Outstanding Junior Subordinated Notes on the Par Call
Date, the Issuer will appoint a Person as Calculation Agent with respect to the Junior Subordinated Notes prior to the Reset Interest Determination Date preceding the Par Call Date. The Issuer may appoint itself or an affiliate as Calculation Agent.
The Issuer may, in its sole discretion, remove the Calculation Agent in accordance with the agreement between the Issuer and the Calculation Agent; provided that the Issuer shall appoint a successor Calculation Agent who shall accept such
appointment prior to the effectiveness of such removal; further, provided, that the Issuer shall promptly notify the Trustee in writing of the appointment of a Calculation Agent and of any removal of a Calculation Agent. 

  
 11 

 ARTICLE III 

REPAYMENT AND REDEMPTION OF THE JUNIOR SUBORDINATED NOTES 

Section 3.1 Repayment at Final Maturity Date. 

(a) Unless previously redeemed or purchased and cancelled, the Junior Subordinated Notes shall become finally due and payable, and shall be
repaid, on the Final Maturity Date at a price equal to the principal amount thereof, together with accrued and unpaid interest on the Junior Subordinated Notes to, but excluding, the Final Maturity Date. 

(b) The Issuer shall notify the Trustee and the Holders of the Junior Subordinated Notes in writing not less than 10 Business Days prior to
the Scheduled Maturity Date (or as soon as reasonably practicable if the BMA Redemption Requirements are no longer satisfied as of a date less than 10 Business Days prior to the Scheduled Maturity Date) if the BMA Redemption Requirements will not be
satisfied on the Scheduled Maturity Date, which written notice shall state the cause of the failure to satisfy such conditions, and the repayment of the Junior Subordinated Notes shall be deferred until such time as the BMA Redemption Requirements
are satisfied. In such event, the Issuer shall further notify the Trustee and the Holders of the Junior Subordinated Notes in writing not more than 10 Business Days following the satisfaction of the BMA Redemption Requirements that such conditions
have been satisfied and stating the date that final payment on the Junior Subordinated Notes will occur, which shall be the 15th Business Day following the date such conditions were satisfied. If at any time following the date of such written notice
and prior to the stated repayment date the BMA Redemption Requirements are no longer satisfied, the above notice provisions shall again apply. 

(c) In the event the Scheduled Maturity Date and the Final Maturity Date are not the same, failure to repay the Junior Subordinated Notes on
the Scheduled Maturity Date will constitute neither an Event of Default nor a default of any kind and will not give Holders of the Junior Subordinated Notes or the Trustee any right to accelerate repayment of the note the Junior Subordinated Notes
or any other remedies. 
 Section 3.2 Optional Redemption of Junior Subordinated Notes. 

Pursuant to Sections 2.3(7), 2.3(8) and 12.1 of the Base Indenture, the provisions of this Article III shall apply to the Junior Subordinated
Notes and shall, with respect of the Junior Subordinated Notes, supersede and replace the provisions of Article XII of the Base Indenture in their entirety as follows: 

(a) Subject to Section 3.4(a), at any time prior to January 15, 2030 (the “Par Call Date”), and provided that the
BMA Redemption Requirements have been satisfied and will continue to be satisfied if the optional redemption payment were made on the Junior Subordinated Notes, the Issuer may redeem the Junior Subordinated Notes, in whole at any time or in part
(equal to $2,000 and integral multiples of $1,000 in excess thereof), at the Issuer’s option, at a redemption 

  
 12 

 
price equal to the greater of: (A) 100% of the principal amount of the Junior Subordinated Notes to be redeemed, and (B) an amount equal to the sum of the present values of the remaining
scheduled payments of principal and interest on such Junior Subordinated Notes (not including any portion of such payments of interest accrued as of such redemption date) that would be due if the Junior Subordinated Notes matured on the Par Call
Date, discounted to such redemption date on a semi-annual basis (assuming a 360-day year comprising twelve 30-day months) at the Treasury Rate, plus 50 basis points;
plus, in each case, accrued and unpaid interest on such Junior Subordinated Notes to, but excluding, such redemption date. 
 (b) Subject to
Section 3.4(a), beginning on the Par Call Date or on any subsequent scheduled Interest Payment Date, and provided that the BMA Redemption Requirements have been satisfied and will continue to be satisfied if the optional redemption payment were
made on the Junior Subordinated Notes, the Issuer may redeem the Junior Subordinated Notes, in whole at any time or in part (equal to $2,000 and integral multiples of $1,000 in excess thereof), at the Issuer’s option, at a redemption price
equal to 100% of the principal amount of the Junior Subordinated Notes to be redeemed plus accrued and unpaid interest to, but excluding, such redemption date. 

(c) Notice of any optional redemption will be mailed at least 15 days but not more than 60 days before the redemption date to each Holder of
the Junior Subordinated Notes to be redeemed. The notice of redemption with respect to Section 3.2(a) need not set forth the redemption price but only the manner of calculation thereof. The Issuer shall notify the Trustee and the Holders of the
Junior Subordinated Notes in writing not less than 10 Business Days prior to the applicable redemption date (or as soon as reasonably practicable if the BMA Redemption Requirements are no longer satisfied as of a date less than 10 Business Days
prior to the applicable redemption date) if the BMA Redemption Requirements will not be satisfied on the applicable redemption date, which written notice shall state the cause of the failure to satisfy such conditions, and the redemption shall be
deferred until such time as the BMA Redemption Requirements are satisfied. In such event, the Issuer shall further notify the Trustee and the Holders of the Junior Subordinated Notes in writing not more than 10 Business Days following the
satisfaction of the BMA Redemption Requirements that such conditions have been satisfied and stating the new redemption date for the Junior Subordinated Notes, which shall be the 15th Business Day following the date such conditions were satisfied.
If at any time following the date of such written notice and prior to the new redemption date the BMA Redemption Requirements are no longer satisfied, the above notice provisions shall again apply. 

(d) Unless the Issuer defaults in payment of the redemption price (including, for this purpose, a
non-payment in the event the BMA Redemption Requirements have not been satisfied), on and after the redemption date, interest will cease to accrue on the Junior Subordinated Notes or portions thereof called
for redemption. 
 Section 3.3 Specified Event Redemption of Junior Subordinated Notes. 

(a) Subject to Section 3.4(a) and provided that the BMA Redemption Requirements have been satisfied and will continue to be satisfied if
the redemption payment were made on the Junior Subordinated Notes, the Issuer may redeem the Junior Subordinated Notes at its option, in whole but not in part, at any time at a redemption price equal to (1) 100% of the

  
 13 

 
principal amount, plus accrued and unpaid interest, if any, on such Junior Subordinated Notes to, but excluding, such redemption date, within 90 days of the date on which the Issuer has
reasonably determined that, as a result of (i) any amendment to, or change in, the laws or regulations of Bermuda that is enacted or becomes effective after the initial issuance of the Junior Subordinated Notes; (ii) any proposed amendment
to, or change in, those laws or regulations that is announced or becomes effective after the initial issuance of the Junior Subordinated Notes; or (iii) any official administrative decision, judicial decision, administrative action or other
official pronouncement interpreting or applying those laws or regulations that is announced after the initial issuance of the Junior Subordinated Notes, a Capital Disqualification Event has occurred; (2) 102% of the principal amount, plus accrued
and unpaid interest, if any, on such Junior Subordinated Notes to, but excluding, such redemption date, within 90 days after the occurrence of a Rating Agency Event; and (3) 100% of the principal amount, plus accrued and unpaid interest, if any, on
such Junior Subordinated Notes to, but excluding, such redemption date, after the occurrence of a Tax Event (each, a “Specified Event Redemption”); provided that, at the time of such Specified Event Redemption, the BMA
Redemption Requirements are satisfied and will continue to be satisfied after the redemption payment is made and, if not so satisfied, such Specified Event Redemption will be deferred until such time as the BMA Redemption Requirements are satisfied.

 (b) Notice of any Specified Event Redemption will be mailed at least 15 days but not more than 60 days before the redemption date to the
Trustee and each Holder of Junior Subordinated Notes to be redeemed at its registered address (which notice will be irrevocable). The Issuer shall notify the Trustee and the Holders of the Junior Subordinated Notes in writing not less than 10
Business Days prior to the applicable redemption date (or as soon as reasonably practicable if the BMA Redemption Requirements are no longer satisfied as of a date less than 10 Business Days prior to the applicable redemption date) if the BMA
Redemption Requirements will not be satisfied on the applicable redemption date, which written notice shall state the cause of the failure to satisfy such conditions, and the Specified Event Redemption shall be deferred until such time as the BMA
Redemption Requirements are satisfied. In such event, the Issuer shall further notify the Trustee and the Holders of the Junior Subordinated Notes in writing not more than 10 Business Days following the satisfaction of the BMA Redemption
Requirements that such conditions have been satisfied and stating the new redemption date for the Junior Subordinated Notes, which shall be the 15th Business Day following the date such conditions were satisfied. If at any time following the date of
such written notice and prior to the new redemption date the BMA Redemption Requirements are no longer satisfied, the above notice provisions shall again apply. 

(c) Such notice shall state the specified redemption date, the facts establishing the right of the Issuer or the Guarantor to redeem the
Junior Subordinated Notes, and that all Outstanding Junior Subordinated Notes shall be redeemed at the applicable redemption price on the redemption date automatically and without any further action by the Holders of the Junior Subordinated Notes.

 (d) Unless the Issuer defaults in the payment of the redemption price (including, for this purpose, a
non-payment in the event the BMA Redemption Requirements have not been satisfied), on and after the redemption date, interest will cease to accrue on the Junior Subordinated Notes to be redeemed. 

  
 14 

 Section 3.4 BMA Redemption Requirements. 

(a) Notwithstanding anything to the contrary set forth herein, (i) prior to January 15, 2025, the Junior Subordinated Notes may be
redeemed only with BMA Approval, and (ii) the Junior Subordinated Notes may not be redeemed at any time or repaid on the Scheduled Maturity Date if the Enhanced Capital Requirement would be breached immediately before or after giving effect to
such redemption or repayment of the Junior Subordinated Notes, unless, in the case of each of clause (i) and (ii), the Guarantor, the Issuer or another subsidiary of the Guarantor replaces the capital represented by the Junior Subordinated
Notes to be redeemed or repaid with capital having equal or better capital treatment as the Junior Subordinated Notes under the Group Rules (collectively the “BMA Redemption Requirements”). 

(b) In the event that the Junior Subordinated Notes are not redeemed or repaid as a result of a failure to satisfy the BMA Redemption
Requirements, interest on the Junior Subordinated Notes will continue to accrue and be paid on each Interest Payment Date (subject to Section 2.5) until the first date on which final payment on the Junior Subordinated Notes may be made as
described in Section 3.1, at which time the Junior Subordinated Notes will become due and payable, and will be finally repaid at the principal amount of the Junior Subordinated Notes, together with any accrued and unpaid interest in the manner
and subject to the conditions of Section 3.4(a). 
 (c) Notwithstanding any provision of the Junior Subordinated Notes or the
Indenture, in the event of non-payment on a scheduled redemption date or the Scheduled Maturity Date resulting from a failure to satisfy the BMA Redemption Requirements in accordance with this
Section 3.4, the Junior Subordinated Notes to be redeemed or repaid will not become due and payable on such date, and such non-payment will constitute neither an Event of Default nor a default of any kind
with respect to the Junior Subordinated Notes, and will not give Holders of the Junior Subordinated Notes or the Trustee any right to accelerate repayment of the Junior Subordinated Notes or any other remedies. 

(d) An Officers’ Certificate relating to the Junior Subordinated Notes in connection with repayment or any redemption under this Article
III certifying that (i) the BMA Redemption Requirements have not been met or would not be met if the Junior Subordinated Notes were repaid or the applicable redemption payment were made, (ii) the BMA Redemption Requirements have been met
and would continue to be met if the Junior Subordinated Notes were to be repaid or the applicable redemption payment were made or (iii) no such BMA Redemption Requirements apply shall, in the absence of manifest error, be treated and accepted
by the Trustee, the Holders of the Junior Subordinated Notes and all other interested parties as correct and sufficient evidence thereof, shall be final and binding on such parties, and the Trustee shall be entitled to rely on such Officers’
Certificate without liability to any Person and shall have no duty to ascertain the existence of any such manifest error. 

Section 3.5 Dividend and Other Payment Stoppages During Mandatory Deferral Periods. So long as the Junior Subordinated Notes
remain outstanding, if a Mandatory Deferral Event has occurred and is continuing, and for so long as any Arrears of Interest remain outstanding, then the Issuer will not: (i) declare or pay any dividends or distributions on its preferred shares
or common shares (collectively, “capital stock”), other than a dividend payable solely in the form of 

  
 15 

 
equity securities, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of the warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks equally with or junior to such capital stock; or (ii) repurchase, redeem or otherwise acquire for consideration any shares of capital stock, directly or indirectly (other than (1) as a result of a
reclassification of capital stock for or into other capital stock or the exchange or conversion of one share of capital stock for or into another share of capital stock, (2) through the use of the proceeds of a substantially contemporaneous
sale of capital stock or (3) as required by or necessary to fulfill the terms of any employment contract, benefit plan or similar arrangement with or for the benefit of one or more employees, directors or consultants). 

ARTICLE IV 
 REMEDIES
OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT 
 Section 4.1 shall supersede and replace Section 5.1 of the Base
Indenture in its entirety as follows: 
 Section 4.1 Event of Default Defined; Acceleration of Maturity; Waiver of Default.
“Event of Default” with respect to Securities of any series wherever used herein, means each one of the following events which shall have occurred and be continuing (whatever the reason for such Event of Default and whether it shall
be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body) unless it is either inapplicable to a particular
series or it is specifically deleted or modified in an indenture supplemental hereto, if any, under which such series of Securities is issued: 

(a) a default for 30 days in the payment of any interest upon any of the Junior Subordinated Notes (other than during a Mandatory Deferral
Period); 
 (b) a default in payment of principal or any premium when due, other than if the Issuer is required to postpone payment due to
failure to satisfy the BMA Redemption Requirements, in accordance with the Indenture; 
 (c) the Issuer or the Guarantor shall commence a
voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment or taking possession
by a receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar official) of the Issuer or the Guarantor or for any substantial part of its or their property, or make any general assignment for the benefit of creditors, or shall
admit in writing its inability to pay its or their respective debts generally as they become due; or 
 (d) the Guarantee ceases to be in
full force and effect or is declared to be null and void and unenforceable (other than by reason of release of the Guarantor in accordance with the terms of the Indenture). 

  
 16 

 If an Event of Default described in clause (a), (b) or (d) occurs and is continuing,
then, and in each and every such case, except for any series of Securities the principal of which shall have already become due and payable, either the Trustee or the Holders of not less than 33% in aggregate principal amount of the Securities of
each such affected series then Outstanding hereunder (voting as a single class) by notice in writing to the Issuer and the Guarantor (and to the Trustee if given by Securityholders), may declare the entire principal (or, if the Securities of any
such affected series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of such series) of all Securities of all such affected series, and the interest accrued thereon, if any, to be due and
payable immediately, and upon any such declaration, the same shall become immediately due and payable. 
 The foregoing provisions, however,
are subject to the condition that if, at any time after the principal (or, if the Securities are Original Issue Discount Securities, such portion of the principal as may be specified in the terms thereof) of the Securities of any series (or of all
the Securities, as the case may be) shall have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the Issuer or the Guarantor shall pay
or shall deposit with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of such series (or of all the Securities, as the case may be) and the principal of any and all Securities of each such series (or
of all the Securities, as the case may be) which shall have become due otherwise than by acceleration (with interest upon such principal and, to the extent that payment of such interest is enforceable under applicable law, on overdue installments of
interest at the same rate as the rate of interest or Yield to Maturity (in the case of Original Issue Discount Securities) specified in the Securities of each such series (or at the respective rates of interest or Yields to Maturity of all the
Securities, as the case may be) to the date of such payment or deposit) and such amount as shall be sufficient to cover reasonable compensation to the Trustee and each predecessor Trustee, its agents, attorneys and counsel, and all other expenses
and liabilities incurred, and all advances made, by the Trustee and each predecessor Trustee except as a result of negligence, bad faith or willful misconduct, and if any and all Events of Default under the Indenture, other than the non-payment of the principal of Securities which shall have become due by acceleration, shall have been cured, waived or otherwise remedied as provided herein, then and in every such case the Holders of a majority
in aggregate principal amount of all the Securities of each such series, or of all the Securities, in each case voting as a single class, then Outstanding, by written notice to the Issuer, the Guarantor and to the Trustee, may waive all defaults
with respect to each such series (or with respect to all the Securities, as the case may be) and rescind and annul such declaration and its consequences, but no such waiver or rescission and annulment shall extend to or shall affect any subsequent
default or shall impair any right consequent thereon. 
 For all purposes under the Indenture, if a portion of the principal of any Original
Issue Discount Securities shall have been accelerated and declared due and payable pursuant to the provisions hereof, then, from and after such declaration, unless such declaration has been rescinded and annulled, the principal amount of such
Original Issue Discount Securities shall be deemed, for all purposes hereunder, to be such portion of the principal thereof as shall be due and payable as a result of such acceleration, and payment of such portion of the principal thereof as shall
be due and payable as a result of such acceleration, together with interest, if any, thereon and all other amounts owing thereunder, shall constitute payment in full of such Original Issue Discount Securities. 

  
 17 

 ARTICLE V 

MISCELLANEOUS PROVISIONS 

Section 5.1 Application of First Supplemental Indenture. Each and every term and condition contained in this First Supplemental
Indenture that modifies, amends or supplements the terms and conditions of the Base Indenture with respect to the Junior Subordinated Notes shall apply only to the Junior Subordinated Notes created hereby and not to any past or future series of
Securities issued under the Base Indenture. 
 Section 5.2 Recitals by the Issuer and the Guarantor. The recitals and statements
in this First Supplemental Indenture are made by the Issuer and the Guarantor only and not by the Trustee, and the Trustee assumes no responsibility for their correctness. 

The Trustee makes no representations as to the validity, adequacy or sufficiency of this First Supplemental Indenture or of the Junior
Subordinated Notes. The Trustee shall not be accountable for the use or application by the Issuer of the Junior Subordinated Notes or the proceeds thereof. All of the provisions contained in the Base Indenture in respect of the rights, privileges,
immunities, powers and duties of the Trustee shall be applicable in respect of the Junior Subordinated Notes and of this First Supplemental Indenture as fully and with like effect as if set forth herein in full. 

Section 5.3 Ratification and Incorporation of Base Indenture. As supplemented hereby, the Base Indenture is in all respects
ratified and confirmed, and the Base Indenture and this First Supplemental Indenture shall be read, taken and construed as one and the same instrument. 

Section 5.4 Executed in Counterparts. This First Supplemental Indenture may be simultaneously executed in several counterparts,
each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument. 

Section 5.5 New York Law to Govern. This First Supplemental Indenture shall be deemed to be a contract under the laws of the State
of New York, and for all purposes shall be construed in accordance with the laws of such state. 
 Section 5.6 Waiver of Jury
Trial. EACH OF THE ISSUER, THE GUARANTOR AND THE TRUSTEE, AND EACH HOLDER OF A SECURITY BY ITS ACCEPTANCE THEREOF, HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THE INDENTURE, THE JUNIOR SUBORDINATED NOTES OR THE TRANSACTION CONTEMPLATED HEREBY. 

Section 5.7 Effect of Headings. The Article and Section heading herein are for convenience only and shall not affect the
construction hereof. 
 Section 5.8 Successors. All covenants and agreements in this First Supplemental Indenture by the parties
hereto shall bind their successors and assigns, whether or so expressed or not. 

  
 18 

 Section 5.9 Separability Clause. If any provision of this First Supplemental
Indenture or of the Securities, or the application of any such provision to any Person (as defined in the Indenture) or circumstance, shall be held to be invalid, illegal or unenforceable, the remainder of the Indenture or of the Securities, or the
application of such provision to Persons or circumstances other than those as to whom or which it is invalid, illegal or unenforceable, shall not in any way be affected or impaired thereby. 

Section 5.10 Trust Indenture Act. If and to the extent that any provision of this First Supplemental Indenture limits, qualifies
or conflicts with the duties imposed by, or with another provision (an “incorporated provision”) included in the Indenture by operation of, Sections 310 to 318, inclusive, of the Trust Indenture Act of 1939, such imposed duties or
incorporated provision shall control. 
 [Signature pages follow] 

  
 19 

 IN WITNESS WHEREOF, each party hereto has caused this instrument to be signed in its name
and behalf by a duly authorized officer, all as of the day and year first above written. 
  

			
	 AXIS SPECIALTY FINANCE LLC,
 as
Issuer

		
	By:	 	/s/ Andrew M. Weissert
	Name:	 	Andrew M. Weissert
	Title:	 	President and Chief Executive Officer
	
	 AXIS CAPITAL HOLDINGS LIMITED,
 as
Guarantor

		
	By:	 	/s/ Peter Vogt
	Name:	 	Peter Vogt
	Title:	 	Chief Financial Officer

 [Signature Page to First Supplemental Indenture] 

 
			
	 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee

		
	By:	 	/s/ Lawrence M. Kusch
	Name:	 	Lawrence M. Kusch
	Title:	 	Vice President

 [Signature Page to First Supplemental Indenture] 

 Exhibit A 

[THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO, UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, TO AXIS SPECIALTY FINANCE LLC OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF [             ] OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
[            ] OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,[            ], HAS AN INTEREST HEREIN.] 

[UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO THE NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.] 

			
	No. [    ]	 	CUSIP No. [    ]
		 	ISIN No. [    ]

 AXIS SPECIALTY FINANCE LLC 

4.900% Fixed-Rate Reset Junior Subordinated Notes 

Due 2040 
 Fully and unconditionally

 guaranteed by 
 AXIS CAPITAL
HOLDINGS LIMITED 
  

			
	Principal Amount:	  	$[    ]
		
	Regular Record Date:	  	with respect to each Interest Payment Date, the close of business on the preceding January 1 or July 1, as the case may be (whether or not a Business Day)
		
	Original Issue Date:	  	[    ], 20[    ]
		
	Final Maturity Date:	  	(1) January 15, 2040 (the “Scheduled Maturity Date”), if, on the Scheduled Maturity Date, the BMA Redemption Requirements are satisfied, or (2) otherwise, following the Scheduled Maturity Date, the earlier
of (a) the date falling 10 Business Days after the BMA Redemption Requirements are satisfied and would continue to be satisfied if such payment were made and (b) the date on which a Winding-Up of
AXIS Specialty Finance LLC or AXIS Capital Holdings Limited occurs
		
	Interest Payment Dates:	  	January 15 and July 15, commencing [    ], 20[    ]
		
	Interest Rate:	  	(i) from the Issue Date to, but excluding, the Par Call Date, at the fixed rate of 4.900% per annum and (ii) from, and including, the Par Call Date, during each Reset Period, at a rate per annum equal to the Five-Year Treasury
Rate as of the most recent Reset Interest Determination Date plus 3.186% to be reset on each Reset Date
		
	Authorized Denomination:	  	$2,000 or any integral multiples of $1,000 in excess thereof

 AXIS Specialty Finance LLC, a limited liability company organized under the laws of Delaware (the
“Issuer,” which term includes any successor entity under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to [            ], or
registered assigns, the principal sum of [    ] DOLLARS on the Final Maturity Date shown above, and to pay interest thereon from the Original Issue Date shown above, or from the most recent Interest Payment Date to which interest
has been paid or duly provided for, semi-annually in arrears on each Interest Payment Date as specified above, commencing on [    ], 20[    ], and on the 

 
Final Maturity Date at the rate per year shown above until the principal hereof is paid or made available for payment subject to Sections 2.4, 2.5 and 3.1 of the First Supplemental Indenture. The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an Interest Payment Date that is the Final Maturity Date or a redemption date) will, as provided in the Indenture, be paid to the Person in whose
name this Note is registered at the close of business on the Regular Record Date as specified above next preceding such Interest Payment Date, provided that any interest payable at the Final Maturity Date or on a redemption date will be paid to the
Person to whom principal is payable. Except as otherwise provided in the Indenture, any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the Holders on such Regular Record Date and may be paid
as provided in Section 2.7 of the Base Indenture. 
 Payments of interest on this Note will include interest accrued to but excluding
the respective Interest Payment Dates. Interest payments for this Note shall be computed and paid on the basis of a 360-day year comprising twelve 30-day months. In the
event that any date on which interest is payable on this Note is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in
respect of any such delay), except that, if such Business Day is in the next succeeding calendar year, payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on the date the payment
was originally payable. Payments of interest on this Note shall be subject to Sections 2.4 and 2.5 of the First Supplemental Indenture. 

Payment of the principal of and interest due at the Final Maturity Date or a redemption date of this Note shall be made upon surrender of this
Note at the Corporate Trust Office of the Trustee. The principal of and interest on this Note shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.
Payment of interest (including interest on an Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Issuer, (i) by check mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register or (ii) by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least 15 days prior to the date for payment by the Person
entitled thereto. 
 The Junior Subordinated Notes (as defined on the reverse hereof) are unsecured junior subordinated obligations of the
Issuer and rank equally in right of payment with all future unsecured and junior subordinated debt of the Issuer. The Junior Subordinated Notes are subordinated in right of payment, in the manner and to the extent set forth in the Indenture, to the
prior payment in full of all Senior Indebtedness and Subordinated Indebtedness. The Junior Subordinated Notes are contractually subordinated in right of payment to any existing and future liabilities of AXIS Capital Holdings Limited’s (the
“Guarantor”) subsidiaries (other than the Issuer and AXIS Specialty Finance PLC), including amounts owed to holders of reinsurance and insurance policies issued by its reinsurance and insurance company subsidiaries. 

 The Guarantor does hereby fully and unconditionally guarantee (the
“Guarantee”) to the Holders and to the Trustee all payment obligations of the Issuer on this Note when due, in accordance with the provisions of the Indenture, as provided below. The Guarantee ranks equally in right of payment with
all future unsecured and junior subordinated debt of the Guarantor. The Guarantee is subordinated in right of payment, in the manner and to the extent set forth in the Indenture, to the prior payment in full of all Senior Indebtedness and
Subordinated Indebtedness. The Guarantee is contractually subordinated in right of payment to any existing and future liabilities of the Guarantor’s subsidiaries (other than the Issuer and AXIS Specialty Finance PLC), including amounts owed to
holders of reinsurance and insurance policies issued by its reinsurance and insurance company subsidiaries. Nothing contained in this paragraph shall apply to the claims of, or payments to, the Trustee under or pursuant to Section 5.3 or
Section 6.6 of the Base Indenture. 
 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF,
WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. 
 Unless the certificate of
authentication hereon has been executed by the Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

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

 

			
	AXIS SPECIALTY FINANCE LLC, 
as Issuer
		
	By:	 	 
	Name:	 	
	Title:	 	

 CERTIFICATE OF AUTHENTICATION 

This is one of the 4.900% Fixed-Rate Reset Junior Subordinated Notes due 2040 referred to in the within-mentioned Indenture. 

 

			
	THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., 
	as Trustee
		
	By:	 	 
		 	Authorized Signatory
		
	Dated:	 	

 (Reverse Side of Note) 

1. The Indenture and the Junior Subordinated Notes. This Note is one of a duly authorized issue of Junior Subordinated Notes of the
Issuer issued and issuable in one or more series under a Junior Subordinated Indenture dated as of December 10, 2019 (the “Base Indenture”), as supplemented by the First Supplemental Indenture dated as of December 10, 2019
(the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), among the Issuer, the Guarantor and The Bank of New York Mellon Trust Company, N.A., as Trustee (the
“Trustee,” which term includes any successor trustee under the Indenture), to which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Issuer,
the Guarantor, the Trustee and the Holders of the Junior Subordinated Notes issued thereunder and of the terms upon which said Junior Subordinated Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on
the face hereof as 4.900% Fixed-Rate Reset Junior Subordinated Notes due 2040 (the “Junior Subordinated Notes”), initially limited in aggregate principal amount of $425,000,000; provided, however, that the Issuer may, without notice
to or the consent of the Holders of the Junior Subordinated Notes, issue additional notes having the same ranking and the same interest rate, maturity and other terms as the Junior Subordinated Notes, except for the public offering price and issue
date and, in some cases, the first interest payment date and first interest accrual date; provided that, if any such additional notes are not fungible with the Junior Subordinated Notes for U.S. federal income tax purposes, such additional notes
will have one or more separate CUSIP numbers from the Junior Subordinated Notes. Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture. 

2. Exchange. This Note is exchangeable in whole or from time to time in part for Junior Subordinated Notes in definitive registered
form only as provided herein and in the Indenture. If (i) at any time the Depositary notifies the Issuer that it is unwilling or unable to continue as Depositary for this Note, and the Issuer does not appoint a successor Depositary within 90
days after the Issuer receives such notice, (ii) at any time, the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Issuer has not appointed
a successor depositary within 90 days after the Issuer learns that the Depositary has ceased to be so registered or (iii) the Issuer, in its sole discretion, determines at any time that this Note will no longer be represented by a global note,
this Note shall be exchangeable for Junior Subordinated Notes in definitive registered form, provided that the definitive Junior Subordinated Notes so issued in exchange for this Note shall be in denominations of $2,000 and integral multiples of
$1,000 in excess of $2,000, without coupons, and be of like aggregate principal amount and tenor as the portion of this Note to be exchanged. Except as provided above, owners of beneficial interests in this Note will not be entitled to have Junior
Subordinated Notes registered in their names, will not receive or be entitled to physical delivery of Junior Subordinated Notes in definitive registered form and will not be considered the Holders thereof for any purpose under the Indenture. Neither
the Issuer, the Guarantor, the Trustee, any Paying Agent nor the Security Registrar shall have any responsibility or liability for any aspect of records relating to or payments made on account of beneficial ownership interests in this Note, or for
maintaining, supervising or reviewing any records relating to such beneficial ownership interests. 

 3. Amendment and Modification, Waiver. The Indenture permits, with certain exceptions
as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Junior Subordinated Notes under the Indenture at any time by the Issuer and the Trustee with the consent
of the Holders of not less than a majority in aggregate principal amount of the Junior Subordinated Notes at the time Outstanding. 
 The
Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Junior Subordinated Notes at the time Outstanding, on behalf of the Holders of all Junior Subordinated Notes, to waive compliance by the
Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders
of this Note and of any Junior Subordinated Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 

4. No Impairment of Obligation to Pay Interest. No reference herein to the Indenture and no provision of this Note or of the Indenture
shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the time, place and rate, and in the coin or currency, as herein prescribed; provided that, in all
instances, payments of interest on this Note shall be subject to Sections 2.4 and 2.5 of the First Supplemental Indenture. 
 5.
Transfer. As provided in the Indenture and subject to certain limitations therein set forth, the surrender of this Note for registration of transfer at the office or agency of the Issuer for such purpose, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Issuer or the Security Registrar and duly executed by, the Holder hereof or his/her attorney duly authorized in writing, and thereupon one or more new Junior Subordinated Notes, of
authorized denominations and of like tenor and for the same aggregate principal amount, will be issued to the designated transferee or transferees. No service charge shall be made for any such exchange or registration of transfer, but the Issuer may
require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due
presentment of this Note for registration of transfer, the Issuer, the Trustee, any Person authorized by the Issuer to pay the principal of or any premium or interest on any Securities on behalf of the Issuer (“Paying Agent”) and
the Security Registrar may deem and treat the Person in whose name this Note is registered as the absolute owner hereof for all purposes, whether or not this Note be overdue and notwithstanding any notice of ownership or writing thereon made by
anyone other than the Security Registrar, and neither the Issuer nor the Trustee nor any Paying Agent nor the Security Registrar shall be affected by notice to the contrary. 

 6. Denominations. The Junior Subordinated Notes are issuable only in registered form
without coupons in denominations of $2,000 and integral multiples of $1,000 in excess of $2,000. As provided in the Indenture and subject to certain limitations therein set forth, Junior Subordinated Notes are exchangeable for a like aggregate
principal amount of Junior Subordinated Notes of a different authorized denomination, as requested by the Holder surrendering the same upon surrender of the Senior Note or Junior Subordinated Notes to be exchanged at the office or agency of the
Issuer. 
 7. No Recourse. No recourse shall be had for payment of the principal of or interest on this Note, or for any claim based
hereon, or otherwise in respect hereof, or based on or in respect of the Indenture, against any incorporator, as such or against any past, present or future shareholder, officer or director, as such, of the Issuer or of any successor, either
directly or through the Issuer or any successor, under any rule, law, statute or constitutional provision, or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and
released, by the acceptance hereof and as part of the consideration for the issuance hereof. 
 8. Governing Law. This Note shall be
deemed to be a contract under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of such state. 

 ABBREVIATIONS 

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

			
	TEN COM – as tenants in common	  	UNIF GIFT MIN ACT – Custodian under
Uniform Gift to Minors Act
		
		  	                                      
              
		  	(State)
		
	TEN ENT – as tenants by the entireties	  	
		
	JT TEN – as joint tenants with rights of	  	 CUST — Custodian
 survivorship and not
as
 tenants in common

 Additional abbreviations may also be used 

though not on the above list. 
  

			
	FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE
	 
	 
	 
	(please insert Social Security or other identifying number of assignee)
	the within Note and all rights thereunder, hereby irrevocably constituting and appointing
	 
	 
	 
	agent to transfer said Note on the books of the Issuer, with full power of substitution in the premises.
		
	Dated:	  	 
		
		  	 
		  	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement, or any change whatever.COMMON STOCK PURCHASE AGREEMENT

This COMMON STOCK
PURCHASE AGREEMENT (this “Agreement”), dated as of October 24, 2019, is entered into by and between NextDecade
Corporation, a Delaware corporation (“NextDecade” or the “Company”), and Ninteenth Investment
Company LLC, a limited liability company organized under the laws of the United Arab Emirates (the “Purchaser”).
NextDecade and the Purchaser are referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS:

WHEREAS, the Purchaser
has indicated its interest to the Company in participating in an offering (the “Common Stock Equity Offering”)
by the Company of shares of Common Stock (as defined herein); and

WHEREAS, the Company
desires to sell to the Purchaser, and the Purchaser desires to purchase from the Company, Common Stock as more fully set forth
herein.

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 10.9.

“Affiliate”
means (i) with respect to any Person other than the Purchaser, any other Person which directly or indirectly controls or is controlled
by or is under common control with such Person, and (ii) solely with respect to the Purchaser, Mubadala Investment Company PJSC
and its Subsidiaries. As used in this definition, “control” (including its correlative meanings, “controlled
by” and “under common control with”) shall mean possession, directly or indirectly, of power to direct or cause
the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by
contract or otherwise); provided, however, the term Affiliate shall not include (a) direct or indirect portfolio companies of the
Purchaser or an Affiliate of the Purchaser or (b) any third-party investment manager with discretionary authority to trade on behalf
of the Purchaser or an Affiliate of the Purchaser, so long as in each of clauses (a) and (b), such Person excepted from the definition
has not been provided by such Purchaser with confidential information regarding the Company obtained in its capacity as the Purchaser
(it being understood and agreed that, (i) confidential information regarding the Company will presumptively not be deemed to have
been shared if such Person is restricted from accessing such information through compliance with standard practices and procedures
restricting the flow of information and (ii) the disclosure of such confidential information to a director, officer or employee
of the Purchaser or an Affiliate thereof does not, in and of itself, constitute disclosure to a Person described in clause (a)
above of which such director, officer or employee is also a director, officer or employee).

    	 	1 	 

     

    

 

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

“Assumption
Agreement” has the meaning assigned to it in Section 10.9.

“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.

“Brownsville
Leases” means (i) that certain Lease Agreement by and between Brownsville Navigation District of Cameron County, Texas
and Rio Grande LNG, LLC dated March 6, 2019 and (ii) that certain Lease Agreement by and between the Brownsville Navigation District
of Cameron County, Texas and NextDecade, LLC dated March 8, 2017.

“CFIUS”
means the Committee on Foreign Investment in the United States or any successor entity, and any member agency thereof acting in
such capacity.

“CFIUS
Clearance” means the Parties shall have received (a) a written notice issued by CFIUS stating that CFIUS has concluded
that the Common Stock Equity Offering is not a “covered transaction” and not subject to review under applicable law,
(b) a written notice issued by CFIUS that it has determined that there are no unresolved national security concerns with respect
to the Common Stock Equity Offering, and has concluded all action under the DPA or (c) either (i) the President of the United States
shall have determined not to use his powers pursuant to the DPA to unwind, suspend, condition or prohibit the consummation of the
Common Stock Equity Offering or (ii) the period allotted for presidential action under the DPA shall have passed without any determination
by the President.

“CFIUS
Cooperation Actions” shall mean each Party to this Agreement shall promptly inform the other, unless prohibited by applicable
law, of any communication from CFIUS or its member agencies regarding any of the transactions contemplated by this Agreement in
connection with any CFIUS filing. In connection with and without limiting the foregoing, to the extent reasonably practicable and
unless prohibited by applicable law, each Party shall (i) give each other reasonable advance notice of all meetings with CFIUS
or its member agencies relating to the transaction contemplated hereby, (ii) give each other an opportunity to participate in each
of such meetings, (iii) keep such other Party reasonably apprised with respect to any oral communications with CFIUS regarding
the transaction contemplated hereby, (iv) cooperate in the filing of any joint CFIUS notice and any presentations related thereto,
(v) provide each other with a reasonable advance opportunity to review and comment upon, and consider in good faith the views of
the other with respect to, all written communications with CFIUS, except for those that may include confidential business information
or involve personal identifier information and (vi) provide each other (or counsel of each Party, as appropriate) with copies of
all written communications to or from CFIUS, except for those excluded above. Any such disclosures, rights to participate or provisions
of information by one Party to the other may be made on a counsel-only basis to the extent required under applicable law or as
appropriate to protect confidential business information.

    	 	2 	 

     

    

 

“CFIUS
Filing Actions” shall mean the Parties to this Agreement submit or cause to be submitted (i) if required, promptly after
the date of this Agreement, a joint draft notice and other appropriate documents to CFIUS within the meaning of 31 C.F.R. §800.401(f)
to obtain a CFIUS Clearance, (ii) as soon as possible after the joint draft notice referenced in clause (i) has been updated per
CFIUS’s comments (if a draft notice was required), a formal voluntary notice of the transaction to CFIUS within the meaning
of 31 C.F.R. §800.402 to obtain a CFIUS Clearance, and (iii) as soon as possible (and in any event in accordance with pertinent
regulatory requirements) any other submissions that are formally requested by CFIUS to be made, or which the Parties mutually agree
should be made, in each case in connection with this Agreement and the transaction contemplated hereby.

“Charter
Documents” means, collectively, the certificate of incorporation, articles of incorporation, bylaws, certificate of designations
or board resolutions establishing the terms of any security, certificate of formation, operating agreement, limited liability company
agreement and similar formation or organizational documents of any entity.

“Closing”
has the meaning assigned to it in Section 2.3.

“Closing
Actions” has the meaning assigned to it in Section 2.4.

“Closing
Date” has the meaning assigned to it in Section 2.3.

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

“Code”
means the Internal Revenue Code of 1986.

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

“Common
Stock Equity Offering” has the meaning assigned to it in the Recitals hereto.

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

“Company
Benefit Plan” means each (i) “employee benefit plan” within the meaning of Section 3(3) of ERISA, (ii) other
benefit and compensation plan, contract, policy, program, practice, arrangement or agreement, including, but not limited to, pension,
profit-sharing, savings, termination, executive compensation, phantom stock, change-in-control, retention, salary continuation,
vacation, sick leave, disability, death benefit, insurance, hospitalization, medical, dental, life (including all individual life
insurance policies as to which the Company or its Subsidiaries are the owners, the beneficiaries, or both), employee loan, educational
assistance, fringe benefit, deferred compensation, retirement or post-retirement, severance, equity or equity-based, incentive
and bonus plan, contract, policy, program, practice, arrangement or agreement, and (iii) other employment, consulting or other
individual agreement, plan, practice, policy, contract, program, and arrangement, in each case, (x) which is sponsored or maintained
by the Company or any of its ERISA Affiliates in respect of any current or former employees, directors, independent contractors,
consultants or leased employees of the Company or any of its Subsidiaries or (y) with respect to which the Company or any of its
Subsidiaries has any actual or potential liability.

    	 	3 	 

     

    

 

“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.

“Counsel
VDR” means that certain virtual data room maintained by the Company and made available to the Purchaser’s counsel
on September 19, 2019 and until the Closing Date.

“DPA”
means Section 721 of the U.S. Defense Production Act of 1950, as amended, including the implementing regulations thereof, codified
at 31 C.F.R. Parts 800 and 801.

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

“Environmental
Claim” means any claim, action, cause of action, suit, proceeding, investigation, Order, demand or notice by any Person
alleging liability (including liability for investigatory costs, cleanup costs, governmental response costs, natural resources
damages, property damages, personal injuries, attorneys’ fees, consultants’ fees, fines or penalties) arising out of,
based on, resulting from or relating to (a) the presence or Release of, or exposure to, any Hazardous Materials; (b) circumstances
forming the basis of any violation, or alleged violation, of any Environmental Law; or (c) any other matters covered or regulated
by, or for which liability is imposed under, Environmental Laws.

“Environmental
Laws” means all applicable Laws relating to pollution, the protection, restoration or remediation of or prevention of
harm to the environment or natural resources (including plant and animal species), or the protection of human health and safety,
including Laws relating to: (i) the exposure to, or Releases or threatened Releases of, Hazardous Materials; (ii) the generation,
manufacture, processing, distribution, use, treatment, containment, disposal, storage, transport or handling of Hazardous Materials;
or (iii) recordkeeping, notification, disclosure and reporting requirements respecting Hazardous Materials.

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

“ERISA
Affiliate” means any Person (whether or not incorporated) that together with the Company or any of its Subsidiaries is
treated as a single employer within the meaning of Section 414 of the Code.

“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.

“Final
Order” means a final, nonappealable Order of a court of competent jurisdiction.

“FID”
means the board of directors of the Company has affirmatively voted or consented to undertake construction of the liquefied natural
gas liquefaction and export facility to be located on the U.S. Gulf Coast known as the Rio Grande LNG Project and the Company has
given a full notice to proceed under a fixed price, date certain engineering, procurement and construction contract with respect
to the construction of such facility.

    	 	4 	 

     

    

 

“Fundamental
Representations” means (i) with respect to the Company, those representations and warranties of the Company set forth
in Sections 3.1 (Organization and Qualification; Subsidiaries), 3.2 (Authorization; Enforcement; Validity),
3.3 (No Conflicts), 3.4 (Consents and Approvals), 3.5 (Capitalization) and 3.6
(Valid Issuance), and (ii) with respect to the Purchaser, those representations and warranties of the Purchaser set forth
in Sections 4.1 (Organization and Qualification), 4.2 (Authorization; Enforcement; Validity), 4.3 (No Conflicts) and 4.4 (Consents
and Approvals).

“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.

“Hazardous
Materials” means: (a) any pollutants, contaminants, hazardous materials, hazardous wastes, hazardous substances, toxic
wastes, solid wastes, and toxic substances as those or similar terms are defined under any Environmental Laws; (b) any asbestos
or asbestos containing material; (c) polychlorinated biphenyls (“PCBs”); or PCB containing materials or fluids;
(d) per- and polyfluoroalkyl substances; (e) radon; (f) any petroleum, petroleum hydrocarbons, petroleum products, crude oil and
any fractions or derivatives thereof; (g) any radioactive materials, substances or wastes; and (h) any other substance, material,
chemical, waste, pollutant, or contaminant that is subject to regulation or could give rise to liability under any Laws relating
to pollution, waste, human health and safety, or the environment.

“Indebtedness”
means with respect to any Person, without duplication: (a) any obligations for borrowed money or obligations issued or incurred
in substitution or exchange for obligations for borrowed money; (b) any obligations evidenced by bonds, notes, debentures, mortgages,
letters of credit or other debt instruments or securities; (c) any obligations owing as deferred purchase price of property, services,
securities or other assets (including all seller notes and “earn-out” payments); (d) all obligations as lessee under
any leases which are required to be capitalized in accordance with GAAP; (e) any net cash payment obligations in respect of interest
rate, currency or commodity swaps, collars, caps, hedges, futures contract, forward contract, option or other derivative instruments
or arrangements that will be payable upon termination thereof (assuming they were terminated on the date of determination); (f)
all obligations requiring the reimbursement of any obligor under any performance bond, letter of credit or similar credit transaction;
(g) all indebtedness of others secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise,
to be secured by) any Encumbrance on property owed or acquired by any such Person; (h) all obligations of any such Person under
conditional sale or other title retention agreements relating to property or assets purchased by any such Person; (i) any accrued
interest, premiums, penalties, breakages, “make whole amounts” and other obligations relating to the foregoing that
would be payable in connection with the repayment of the foregoing; and (j) any obligations to guarantee any of the foregoing types
of obligations on behalf of a Person.

    	 	5 	 

     

    

 

“Indemnified
Party” means the Purchaser, 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.

“Insolvency
Event” means, with respect to any Person, the occurrence of any of the following:

(a) such Person
shall (A) (i) voluntarily commence any proceeding or file any petition seeking relief under Title 11 of the United States Code,
Sections 101 et. seq. (the “Bankruptcy Code”) or any other federal, state or foreign bankruptcy, insolvency,
liquidation or similar Law, (ii) consent to the institution of, or fail to contravene in a timely and appropriate manner, any such
proceeding or the filing of any such petition, (iii) apply for or consent to the appointment of a receiver, trustee, custodian,
sequestrator or similar official for such Person or for a substantial part of its property or assets, (iv) file an answer admitting
the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of
creditors or (vi) take any action for the purpose of effecting any of the foregoing or (B) such Person shall become unable, admit
in writing its inability or fail generally to pay its debts as they become due; or

(b) an involuntary
proceeding shall be commenced or an involuntary petition shall be filed seeking (A) relief in respect of such Person or of a substantial
part of the property or assets of such Person, under the Bankruptcy Code or any other federal, state or foreign bankruptcy, insolvency,
receivership or similar Law, (B) the appointment of a receiver, trustee, custodian, sequestrator or similar official for such Person
or for a substantial part of the property of such Person or (C) the winding-up or liquidation of such Person; and such proceeding
or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall
have been entered.

“Intellectual
Property” means the following intellectual property rights, both statutory and common law rights, if applicable: (a)
copyrights and registrations and applications for registration thereof, (b) trademarks, service marks, trade names, slogans, domain
names, logos, trade dress, and registrations and applications for registrations thereof, (c) patents, as well as any reissued and
reexamined patents and extensions thereto, and any patent applications, continuations, continuations in part and divisional applications
and patents issuing therefrom, and (d) trade secrets and confidential information, including ideas, designs, concepts, compilations
of information, methods, techniques, procedures, processes and other know-how, whether or not patentable.

“JVN”
has the meaning assigned to it in Section 5.7.

“Knowledge”
means with respect to the Company, the actual knowledge after due inquiry of the persons set forth on Schedule 1.1(a).

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

    	 	6 	 

     

    

 

“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 the case of the foregoing clause (A) any such 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; provided, however, that the exception set forth in this clause
(a) shall not apply to the representations and warranties set forth in clauses (b) and (c) of Section 3.3 or to the representations
and warranties set forth in Section 3.4;

(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 as compared to other similarly situated participants
in the liquefied natural gas export industry (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 as compared to other similarly situated participants in the liquefied natural
gas export industry (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, 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
as compared to other similarly situated participants in the liquefied natural gas export industry (in which case only such disproportionate
impact shall be considered);

    	 	7 	 

     

    

 

(f)             any
actions taken or omitted to be taken at the written request or with the written consent of the Purchaser; or

(g)            any
changes in any Laws or any accounting regulations or principles that do not affect the Company, taken as a whole, disproportionately
as compared to other similarly situated participants in the liquefied natural gas export industry (in which case only such disproportionate
impact shall be considered).

Notwithstanding any provision of the
preceding sentence to the contrary, the occurrence of an Insolvency Event in respect of the Company or any Subsidiary of the Company
shall be deemed to constitute a Material Adverse Effect.

“Material
Contracts” means (i) all “material contracts” of the Company within the meaning of Item 601 of Regulation
S-K of the SEC, as well as (ii) all contracts, agreements, indentures, notes, bonds, loans, leases, subleases, conditional sales
contracts, mortgages, licenses, sublicenses, obligations, promises, undertakings, commitments or other binding arrangements (in
each case, whether written or oral) of the Company and its Subsidiaries, which, solely in the case of sub-clause (ii) of this definition,
shall be limited to any of the items listed in (ii) that either the Company or any Subsidiary party thereto would, pursuant to
the terms thereof, (A) recognize future revenues in excess of One Million Dollars ($1,000,000), (B) incur liabilities or obligations
in excess of One Million Dollars ($1,000,000), (C) would reasonably be likely to suffer damages or losses in excess of One Million
Dollars ($1,000,000) by reason of the breach or termination thereof or (D) have any material restrictions on the business of the
Company or its Subsidiaries.

“NASDAQ”
means NASDAQ, Inc.

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

“OFAC”
means the Office of Foreign Assets Control of the U.S. Department of the Treasury.

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

“Party”
or “Parties” 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.

“Permits”
means all permits, consents, approvals, registrations, licenses, authorizations, qualifications and filings with and under all
federal, state, local or foreign Laws and Governmental Authorities.

“Purchase
Price” has the meaning assigned to it in Section 2.2.

    	 	8 	 

     

    

 

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

“Purchaser
Default” means the failure by the Purchaser to deliver and pay the Purchase Price to be paid pursuant to this
Agreement.

“Purchaser
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 Purchaser to consummate the transactions contemplated hereby.

“Purchaser
Rights Agreement” means the Purchaser Rights Agreement, in substantially the form attached hereto as Exhibit E.

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

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

“Registration
Rights Agreement” means the Registration Rights Agreement, in substantially the form attached hereto as Exhibit D.

 

“Release”
means any release, spill, emission, discharge, leaking, pouring, dumping, emptying, pumping, injection, deposit, disposal, dispersal,
leaching or migration into the indoor or outdoor environment (including, without limitation, soil, sediment, ambient air, surface
water, groundwater and surface or subsurface strata) or into or out of any property, including the movement of Hazardous Materials
through or in the air, soil, surface water, groundwater or property.

 

“[***]”
has the meaning assigned to it in Section 2.4(j).

 

“Sanctioned Person”
means any Person that is the target of Sanctions, including, (a) any Person listed in any Sanctions related list of designated
Persons maintained by OFAC or the U.S. Department of State, by the United Nations Security Council, the European Union or Her Majesty’s
Treasury of the United Kingdom, (b) any Person located, organized or resident in a Sanctioned Territory, or (c) any Person directly
or indirectly owned or controlled by any such Person or Persons described in the foregoing clauses (a) and (b).

 

“Sanctions”
means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by relevant Governmental
Authorities, including, but not limited those administered by the U.S. government through OFAC or the U.S. Department of State,
the United Nations Security Council, the European Union and enforced by its member states, the United Nations or Her Majesty’s
Treasury of the United Kingdom.

 

“SEC”
has the meaning assigned to it in Section 3.7(a).

 

“SEC Reports”
has the meaning assigned to it in Section 3.7(a).

 

    	 	9 	 

     

    

 

“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.

“Subsidiary”
means, with respect to any Person, any other Person of which the first Person owns, directly or indirectly, securities or other
ownership interests having voting power to elect a majority of the board of directors or other Persons performing similar functions
for such Person (or, if there are no such voting interests, more than 50% of the equity interests allowing for effective control
of the second Person).

“Survival
Period” has the meaning assigned to it in Section 10.3.

“Tax”
(and, with correlative meaning, “Taxes” and “Taxable”) means: (a) any taxes, customs, duties, charges,
fees, levies, penalties or other assessments, fees and other governmental charges imposed by any Governmental Authority, including,
but not limited to, income, profits, gross receipts, net proceeds, windfall profit, severance, property, personal property (tangible
and intangible), production, sales, use, leasing or lease, license, excise, duty, franchise, capital stock, net worth, employment,
occupation, payroll, withholding, social security (or similar), unemployment, disability, payroll, fuel, excess profits, occupational,
premium, severance, estimated, alternative or add-on minimum, ad valorem, value added, turnover, transfer, stamp or environmental
tax, or any other tax, custom, duty, fee, levy or other like assessment or charge of any kind whatsoever, together with any interest,
penalty, addition to tax, or additional amount attributable thereto; and (b) any liability for the payment of amounts with respect
to payment of a type described in clause (a), including (i) as a result of being a member of an affiliated, consolidated, combined
or unitary group, (ii) as a result of succeeding to such liability as a result of merger, conversion or asset transfer or (iii)
as a result of any obligation under any Tax sharing, Tax allocation, Tax indemnity, or similar agreement or arrangement.

“Tax Representations”
means those representations and warranties of the Company set forth in Section 3.18.

“Tax Returns”
means any return, report, statement, information return or other document (including any amendments thereto and any related or
supporting information) filed or required to be filed with any Governmental Authority in connection with the determination, assessment,
collection or administration of any Taxes or the administration of any laws, regulations or administrative requirements relating
to any Taxes.

“Transaction
Documents” means this Agreement and any other documents or exhibits related hereto or contemplated hereby.

“Treasury
Regulations” means the regulations promulgated under the Code, by the United States Department of the Treasury, as such
regulations may be amended from time to time. All references herein to specific sections of the regulations shall be deemed also
to refer to any corresponding provisions of succeeding regulations, and any reference to temporary regulations shall be deemed
also to refer to any corresponding provisions of final regulations.

    	 	10 	 

     

    

 

“USRPHC”
has the meaning assigned to it in Section 3.18(e).

“VDR”
means that certain virtual data room maintained by Donnelley Financial Solutions hosted by the Company with the project name “Project
Mariner” made available to the Purchaser on September 11, 2019 and until the Closing Date.

Section 2.        AGREEMENT
TO SELL AND PURCHASE.

2.1       Sale
and Purchase of Shares. Subject to the terms of this Agreement, at the Closing, the Company hereby agrees to issue and sell
to the Purchaser, and the Purchaser hereby agrees, to purchase from the Company, 7,974,482 shares of Common Stock (the “Closing
Shares”) free and clear of all Encumbrances (except for any restriction on transfer under the Securities Act or applicable
“blue sky” laws).

2.2       Purchase
Price. The purchase price for the Common Stock to be purchased by the Purchaser hereby shall be $6.27 per share such
that the aggregate purchase price to be paid by the Purchaser shall be $50,000,000.00 (the “Purchase Price”).

2.3       Closing.
Subject to the terms of this Agreement, the closing of the transactions contemplated hereby (the “Closing”)
will occur on the first Business Day following the satisfaction or waiver of all conditions to the obligations of the Parties to
consummate the transactions or such other date as may be agreed by the mutual consent of the Parties (the “Closing Date”).
The Closing shall take place at the offices of NextDecade Corporation, 1000 Louisiana Street, Suite 3900, Houston, Texas 77002
or such other place as the Parties mutually agree. The Parties agree that the Closing may occur via delivery of facsimiles or photocopies
of the applicable Transaction Documents. Unless otherwise provided herein, all proceedings to be taken and all documents to be
executed and delivered by all Parties at the Closing will be deemed to have been taken and executed simultaneously, and no proceedings
will be deemed to have been taken nor documents executed or delivered until all have been taken, executed and delivered.

2.4       Actions
at the Closing. At the Closing, the Purchaser and the Company (as applicable) shall take or cause to be taken the following
actions (“Closing Actions”):

(a)            Payment
of the Purchase Price. The Purchaser shall pay the Purchase Price in respect of the shares purchased by the Purchaser pursuant
to Section 2.1 to the Company by wire transfer of immediately available funds to the account specified by the Company to
the Purchaser in writing not less than five (5) Business Days prior to the Closing.

(b)            Issuance
of Common Stock. The Company shall deliver to the Purchaser a true, correct and complete certificate representing the shares
of Common Stock registered in the name of the Purchaser (or evidence of the Purchased Shares issued in book-entry form with a notation
in the Company’s stock transfer records), containing the restrictive legend set forth in Section 4.9, purchased by the Purchaser
pursuant to this Section 2, duly authorized by all requisite corporate action on the part of the Company.

    	 	11 	 

     

    

 

(c)            Purchaser
Rights Agreement. The Purchaser and the Company shall execute and deliver the Purchaser Rights Agreement.

(d)            Registration
Rights Agreement. The Purchaser and the Company shall execute and deliver the Registration Rights Agreement.

(e)            Good
Standing Certificate. The Company shall deliver a certificate of the Secretary of State of the State of Delaware, dated as
of a recent date, to the effect that the Company is in good standing.

(f)        Company
Officer’s Certificate. The Company shall deliver an officer’s certificate, dated as of the Closing Date, substantially
in the form attached to this Agreement as Exhibit G.

(g)        Company
Secretary’s Certificate. The Company shall deliver a certificate of the Secretary of the Company, dated the Closing Date,
substantially in the form attached to this Agreement as Exhibit H, certifying as to (i) the certificate of incorporation
of the Company, (ii) board resolutions authorizing the execution and delivery of the Transaction Documents and the consummation
of the transactions contemplated thereby, and (iii) the incumbent officers authorized to execute the Transaction Documents, setting
forth the name and title and bearing the signatures of such officers.

(h)       Legal
Opinion. The Purchaser shall have received a written opinion of K&L Gates LLP dated as of the Closing Date, substantially
in the form attached to this Agreement as Exhibit I.

(i)        Cross
Receipt. The Purchaser and the Company shall deliver a cross receipt, dated the Closing Date, executed by (1) the Company confirming
that the Company has received the Purchase Price and (2) the Purchaser confirming that the Purchaser has received the shares of
Common Stock as and in the manner contemplated by clause (b) above.

(j)        [***].

(k)       [***].

(l)        [***].

(m)       Lock
Up Letter. The Purchaser shall deliver a lock up letter substantially in the form attached to this Agreement as Exhibit
M.

(n)       Form
W-8 BEN. The Purchaser shall deliver a validly completed and executed Internal Revenue Service Form W-8 BEN establishing the
Purchaser’s exemption from U.S. withholding Tax.

    	 	12 	 

     

    

 

(o)        Additional
Documents. The Company shall have delivered such other documents relating to the transactions contemplated by this Agreement
as the Purchasers or their counsel may reasonably request.

2.5       Transfer
Taxes. All of the Common Stock issued to the Purchaser 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.

2.6       Additional
Stock Issuances. In addition to the Closing Shares, the Company shall issue shares of Common Stock to the Purchaser upon the
occurrence of the following, without any further consideration being payable by the Purchaser:

(a)       If
(i) FID does not occur on or before January 1, 2021 and (ii) the Purchaser has not disposed of or transferred any of the Closing
Shares prior to such date, the Company shall, on the first Business Day following such date, issue to the Purchaser 398,725 shares
of Common Stock (subject to adjustment for any subdivision, split, combination or other reclassification occurring after the date
hereof).

(b)       If
(i) FID does not occur on or before July 1, 2021 and (ii) the Purchaser has not disposed of or transferred any of the Closing Shares
or any shares of Common Stock issued pursuant to Section 2.6(a) prior to such date, the Company shall, on the first Business
Day following such date, issue to the Purchaser 398,725 shares of Common Stock (subject to adjustment for any subdivision, split,
combination or other reclassification occurring after the date hereof). This issuance shall be in addition to the issuance referenced
in Section 2.6(a) above.

Section 3.        REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

The Company hereby
represents and warrants to the Purchaser as of the date hereof (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. The Company and each of its Subsidiaries has been duly organized and is validly existing and
is in good standing under the laws of its jurisdictions of organization, with the requisite power and authority to own and lease
its properties and conduct its business as it is being conducted on the date of this Agreement. The Company has been duly qualified
as a foreign corporation for the transaction of business and is in good standing under the laws of each other jurisdiction in which
it owns or leases properties, or conducts any business so as to require such qualification.

3.2       Authorization;
Enforcement; Validity. The Company has all necessary corporate power and authority to enter into this Agreement and to carry
out its obligations hereunder, including the issuance to the Purchaser of the Common Stock pursuant to Section 2.1 of this
Agreement. The execution and delivery by the Company of this Agreement and the performance by the Company of its obligations hereunder,
have been duly authorized by all requisite action on the part of the Company, and no other action on the part of the Company or
any of its Subsidiaries is necessary to authorize the execution and delivery by the Company of this Agreement or the consummation
of the transactions contemplated by this Agreement. This Agreement has been duly executed and delivered by the Company, and assuming
due authorization, execution and delivery by the Purchaser, this Agreement constitutes the legal, valid and binding obligation
of the Company, enforceable against the Company 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.

    	 	13 	 

     

    

 

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 Purchaser, the execution, delivery
and performance by the Company 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 Charter Documents of the Company or any of its Subsidiaries; (b) conflict
with or violate any Law or Order applicable to the Company or any of its Subsidiaries, or any of its or their 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 Company 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.

3.4       Consents
and Approvals. Except as set forth in Schedule 3.4, the execution, delivery and performance by the Company of this Agreement
do not require any material 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
Company or any of its Subsidiaries or by which any of its or their assets or properties may be bound, any contract or agreement
to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries may be bound.

3.5       Capitalization.

(a)            As
of the date of this Agreement, and immediately prior to the issuance and sale of the Common Stock, the capitalization of the Company
and each of its Subsidiaries is set forth in Schedule 3.5(a).

(b)            Except
as set forth in Schedule 3.5(b), there are no outstanding options, warrants, “phantom” stock rights, claims,
calls, puts, commitments, stock appreciation rights, convertible or exchangeable securities, including any convertible debt securities,
or other contracts or rights of any nature obligating the Company or any of its Subsidiaries to issue, return, redeem, repurchase,
transfer, deliver or sell equity interests or other securities or ownership interests in the Company or any of its Subsidiaries,
and no Person is entitled to any preemptive or similar right with respect to the issuance of securities or other equity interests
in the Company or any of its Subsidiaries.

    	 	14 	 

     

    

 

(c)            Except
as set forth in Schedule 3.5(c), (x) to the Knowledge of the Company, there are no voting agreements, voting trusts, shareholder
agreements, proxies or other similar agreements or understandings with respect to the equity interests of the Company or any of
its Subsidiaries or that restrict or grant any right, preference or privilege with respect to the transfer of such equity interests,
and (y) there are no contracts to declare, make or pay any dividends or distributions, whether current or accumulated, or due or
payable, on the equity interests of the Company or any of its Subsidiaries.

(d)            Except
for the shares of preferred stock, par value $0.0001 per share, authorized by its Charter Documents and outstanding shares of Series
A Convertible Preferred Stock and the Series B Convertible Preferred Stock, the Company has no authorized or outstanding class
of equity securities ranking as to dividends, redemption or distribution of assets upon a liquidation senior to or pari passu
with the Common Stock.

3.6       Valid
Issuance.

(a)            Upon
payment of the Purchase Price and the occurrence of the Closing, the Purchaser will be the owner, of record and beneficially, of
7,974,482 duly and validly issued, fully paid, and non-assessable shares of Common Stock. The Purchaser shall have good and valid
title to such shares of Common Stock, free and clear of any Encumbrances (except for any restriction on transfer under the Securities
Act or applicable “blue sky” laws).

(b)            Assuming
the accuracy of the Purchaser’s representations and warranties set forth herein, the offer, sale and issuance of such Common
Stock as contemplated hereby are exempt from the registration and qualification of the Securities Act, and will be issued in compliance
with all applicable federal and state securities and blue sky laws. Neither the Company nor any Person acting on behalf of the
Company has taken any action that would cause the loss of such exemption.

3.7       SEC
Reports; Financial Statements.

(a)            The
Company has filed or furnished with the Securities and Exchange Commission (“SEC”) all forms, reports, schedules,
proxy statements (collectively, and in each case including all exhibits and schedules thereto and documents incorporated by reference
therein and including all registration statements and prospectuses filed with the SEC, the “SEC Reports”) required
to be filed or furnished by the Company under the Exchange Act or the Securities Act during the 12 months preceding the date hereof.
As of its date of filing or furnishing, each SEC Report complied in all material respects with the requirements of the Exchange
Act or the Securities Act, and none of such SEC Reports (including any audited or unaudited financial statements and any notes
thereto or schedules included therein) contained when filed or furnished (except to the extent revised or superseded by a subsequent
filing with the SEC that is publicly available prior to the date hereof) any untrue statement of a material fact or omitted or
omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the
circumstances under which they were made, not misleading.

    	 	15 	 

     

    

 

(b)            Each
of the consolidated financial statements (including the notes thereto) included in the SEC Reports (i) complied as to form required
by published rules and regulations of the SEC related thereto as of its date of filing with the SEC, (ii) complied in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto, (iii)
was prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the
notes thereto or otherwise permitted by the SEC on Form 10-Q or any successor form under the Exchange Act) and (iv) presents fairly
in all material respects the consolidated financial position of Company and its consolidated Subsidiaries as of the dates thereof
and the consolidated results of their operations and cash flows for the periods then ended, subject (in the case of unaudited financial
statements) to normal year-end adjustments and any other adjustments described therein or in the notes or schedules thereto or
the absence of footnotes (none of which are material).

(c)            The
unaudited balance sheet and the related unaudited statement of operations, unaudited statement of stockholders’ equity and
unaudited statement of cash flows for the Company’s most recently filed Quarterly Report on Form 10-Q as of the date of this
Agreement (i) present fairly in all material respects the financial condition of the Company as of such date and the results of
operations for the three (3) month period then ended and (ii) were prepared on a basis consistent with the Company’s past
practice, subject to normal year-end adjustments and the absence of footnotes.

3.8       Undisclosed
Liabilities. Except as set forth in Schedule 3.8, and except for liabilities included or reserved for in the unaudited
consolidated balance sheet of the Company or disclosed in the notes thereto included in the Company’s most recently filed
Quarterly Report on Form 10-Q, as of the date of this Agreement, neither the Company nor any of its Subsidiaries has incurred liabilities,
including contingent liabilities, or any other obligations of a nature required to be disclosed on a consolidated balance sheet
or in the notes thereto, except liabilities that are not material and were incurred in the ordinary course of business subsequent
to the date of the consolidated balance sheet contained in the Company’s most recently filed Quarterly Report on Form 10-Q
as of the date of this Agreement.

3.9       Contracts.
Except as set forth in Schedule 3.9, neither the Company nor any of its Subsidiaries is, or to the Knowledge of the Company,
is alleged to be (nor, to the Company’s Knowledge, is any other party to any Material Contract) in material default under,
or in material breach or material violation of, any Material Contract, and no event has occurred which, with the giving of notice
or passage of time or both, would constitute a material default by the Company or any other party under any Material Contract.
Neither the Company nor any of its Subsidiaries is aware of any circumstances whereby any party could give notice of its intention
to terminate any Material Contract, and, to the Knowledge of the Company, no party has sought to repudiate, disclaim or vary any
Material Contract to the detriment of the Company or any of its Subsidiaries. Other than Material Contracts which have terminated
or expired in accordance with their terms, each of the Material Contracts is in full force and effect and is a legal, valid and
binding obligation of the Company and, to the Knowledge of the Company, the other parties thereto enforceable against the Company
and, to the Knowledge of the Company, such other parties in accordance with its terms (subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally
and general equitable principles (whether considered in a proceeding in equity or at law). Schedule 3.9 lists all of the
Material Contracts. A complete and accurate copy of each Material Contract has been made available to Purchaser or its counsel
in the VDR or in the Counsel VDR at least two (2) Business Days prior to the date hereof. Schedule 3.9 provides a true and
correct list, organized by borrower, of all Indebtedness of the Company and its Subsidiaries. Except as set forth on Schedule
3.9, neither the Company nor any of its Subsidiaries has any liabilities arising under any other Indebtedness.

    	 	16 	 

     

    

 

3.10     Affiliate
Transactions. Except as set forth in Schedule 3.10 or otherwise disclosed in the SEC Reports, there are no transactions
between the Company, on the one hand, and any (A) officer or director of the Company or any of its Subsidiaries, (B) to the Knowledge
of the Company, record or beneficial owner of five (5) percent or more of the voting securities of the Company or (C) Affiliate
or family member of any such officer or director or, to the Knowledge of the Company, record or beneficial owner, on the other
hand, except employee benefit plans, executive compensation or director compensation, employment agreements, consulting agreements,
indemnification agreements and similar transactions. Neither the Company nor any of its Subsidiaries is a guarantor or indemnitor
of any indebtedness of any of the persons set forth in the foregoing clause (A) or, to the Knowledge of the Company, clauses (B)
through (C).

3.11     Title.
The Company and each of its Subsidiaries has good and marketable title to their respective owned properties, real estate and assets,
and good leasehold title to their respective leasehold estates in leased properties, real estate and assets (including the Brownsville
Leases, as applicable), in each case, subject to no Encumbrances, other than Encumbrances that would not reasonably be expected
to result in, individually or in the aggregate, a Material Adverse Effect. The Company and each of its Subsidiaries is the sole
lessee with respect to their respective leased real estate, including the Brownsville Leases, as applicable. Except as set forth
in Schedule 3.11, there are no notices, disputes, claims, demands or accommodations relating to or in respect of the Company’s
and each of its Subsidiaries’ owned and leased real estate, and such real estate is not subject to any legal suits, actions,
disputes, claims or demands arising from the acquisition, alienation or use of such real estate.

3.12     Compliance
with Law; Permits.

(a)            Neither
the Company nor any of its Subsidiaries (i) is in material violation or default of the Charter Documents of the Company or any
of its Subsidiaries, (ii) is in material violation or default of any Order or any Law or (iii) except as disclosed in Schedule
3.12, has received any written notice of, and to the Knowledge of the Company, no investigation or review is in process or
threatened by any Governmental Authority with respect to, any violation or alleged violation of any Order or Law.

(b)            The
Company and its Subsidiaries hold all material Permits necessary for the lawful conduct of their respective businesses as they
are presently being conducted. All material Permits are in full force and effect. The Company and its Subsidiaries are in compliance
with the terms of all material Permits. There are no pending or, to the Knowledge of the Company, threatened, modifications, amendments,
cancellations, suspensions, limitations, nonrenewals or revocations of any material Permit. There has occurred no event which (whether
with notice or lapse of time or both) could reasonably be expected to result in or constitute the basis for such a modification,
amendment, cancellation, suspension, limitation, nonrenewal or revocation thereof. Copies of all material Permits that have been
obtained by the Company or any of its Subsidiaries and copies of applications for material Permits made by the Company or any of
its Subsidiaries have been made available in the VDR or in the Counsel VDR at least two (2) Business Days prior to the date hereof.

    	 	17 	 

     

    

 

3.13     Litigation.
Except as set forth in Schedule 3.13, no action, suit, claim, demand, hearing, investigation or other proceeding is pending
against the Company or any of its Subsidiaries, or, to the Knowledge of the Company, any officer, director, manager, member, shareholder
or employee of any such Person, and none of the Company or any of its Subsidiaries, or, to the Knowledge of the Company, any officer,
director, manager, member, shareholder or employee of any such Person, is subject to any outstanding injunction, judgment, order,
decree, ruling or charge or, to the Knowledge of the Company, is threatened with being made a party to any action, suit, proceeding,
hearing or investigation of, in, or before any Governmental Authority or before any arbitrator. The Company does not believe that
any of the legal proceedings set forth on Schedule 3.13 will, individually or in the aggregate, result in a Material Adverse
Effect. There are no legal or governmental actions, suits or proceedings pending, threatened or contemplated that are required
to be disclosed in the SEC Reports and are not so disclosed.

3.14     Intellectual
Property. Except as set forth in Schedule 3.14, the Company and its Subsidiaries own or have obtained valid and enforceable
licenses for, or other legal and valid rights to use, all Intellectual Property necessary for the conduct of the business of the
Company and its Subsidiaries as currently conducted and as presently proposed to be conducted. To the Knowledge of the Company,
the Intellectual Property owned by or exclusively licensed to the Company and its Subsidiaries is valid and enforceable, and there
have been no and there are not currently any proceedings, claims, lawsuits, office actions or other matters challenging the validity,
enforceability or ownership of the same. The Company’s Intellectual Property, and the conduct of the businesses of the Company
and its Subsidiaries, has not violated, infringed or misappropriated, and do not violate, infringe or misappropriate any Intellectual
Property of any third party. Neither the Company nor any of its Subsidiaries has received from any third party a claim in writing
that the Company or any of its Subsidiaries is infringing the Intellectual Property rights of any third party. The Company and
its Subsidiaries have taken all reasonable measures consistent with industry practice to (i) protect and preserve the confidentiality
of all trade secrets and confidential information owned, used or held by the Company and its Subsidiaries, and (ii) protect and
maintain its rights in all Intellectual Property created or developed by, for or on behalf of the Company and its Subsidiaries.

3.15       Environmental
Matters.

(a)       The
Company and its Subsidiaries are and have at all times been in compliance in all material respects with all Environmental Laws.

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(b)       (i)
The Company and its Subsidiaries hold all Permits required pursuant to Environmental Law (“Environmental Permits”)
to conduct their operations and occupy and use their real properties as they are currently operated, occupied and used, (ii) all
such Environmental Permits are in full force and effect, (iii) the Company and its Subsidiaries are and have at all times been
in compliance in all material respects with all Environmental Permits, (iv) there are no pending or, to the Knowledge of the Company,
threatened, modifications, amendments, cancellations, suspensions, limitations, nonrenewals or revocations of any Environmental
Permit, and (v) there has occurred no event which (whether with notice or lapse of time or both) could reasonably be expected to
result in or constitute the basis for such a modification, amendment, cancellation, suspension, limitation, nonrenewal or revocation
thereof.

(c)       The
Company and its Subsidiaries have not Released any Hazardous Materials in, on, at, or under any real property that require any
investigation, remediation, cleanup, removal, or corrective or remedial action pursuant to Environmental Law or that would reasonably
be expected to result in a liability of the Company or any of its Subsidiaries.

(d)       To
the Knowledge of the Company, there are no locations or premises where Hazardous Materials have been Released such that (A) the
Company or any of its Subsidiaries would reasonably be expected to be obligated to investigate, remove, remediate, clean up or
otherwise respond to pursuant to any Environmental Laws or (B) would reasonably be expected to result in a liability of the Company
or any of its Subsidiaries.

(e)       There
are no Environmental Claims pending, or to the Knowledge of the Company threatened against the Company or any of its Subsidiaries,
and there no actions, activities, circumstances, facts, conditions, events or incidents, including the presence or Release of,
or exposure to, any Hazardous Material, which would be reasonably likely to form the basis of any such Environmental Claim.

3.16     Company
Benefits Plans.

(a)            Schedule
3.16 lists each material Company Benefit Plan.

(b)            Neither
the Company nor any of its ERISA Affiliates has ever maintained, sponsored, contributed to, or had an obligation to maintain, sponsor
or contribute to, or has any liability under or with respect to (i) a “defined benefit plan,” as defined in Section
3(35) of ERISA, (ii) a pension plan subject to the minimum funding standards of Section 302 of ERISA or Section 412 of the Code,
(iii) a “multiemployer plan,” as defined in Section 3(37) of ERISA, (iv) a “multiple employer plan” (within
the meaning of Section 413 of the Code), (v) a “voluntary employees’ beneficiary association” (within the meaning
of Section 501(c)(9) of the Code), (vi) an organization or trust described in Sections 501(c)(17) or 501(c)(20) of the Code or
(vii) a “welfare benefits fund” described in Section 419(e) of the Code. No current or former employee, officer, director,
consultant or other service provider of the Company or any of its Subsidiaries is or may become entitled under any Company Benefit
Plan to receive health, life insurance or other welfare benefits (whether or not insured), beyond their retirement or other termination
of service, other than health continuation coverage as required by Section 4980B of the Code.

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(c)            Each
Company Benefit Plan has been administered in all material respects in accordance with its terms and applicable Law. Each Company
Benefit Plan intended to be qualified under Section 401(a) of the Code has either received a favorable determination letter from
the IRS or may rely on a favorable opinion letter issued by the IRS, and, to the Knowledge of the Company, nothing has occurred
since the date of such determination or opinion letter that would reasonably be expected to adversely affect such qualification.

(d)            Except
as would not be reasonably likely to result in a Material Adverse Effect, there are no actions, suits, audits or investigations
by any Governmental Authority or other claims (except for routine claims for benefits) pending or, to the Knowledge of the Company,
threatened, against or involving any Company Benefit Plan.

(e)            Neither
the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby will (whether alone
or upon the occurrence of any additional or further acts or events) (i) result in any payment becoming due to any current or former
employee, officer, director or independent contractor of the Company or any Subsidiary thereof or satisfy any prerequisite (whether
exclusive or non-exclusive) to any payment or benefit to any current or former employee, director or independent contractor of
the Company or any Subsidiary thereof, (ii) increase any benefits under any Company Benefit Plan, (iii) result in the acceleration
of the time of payment, vesting or funding of any such benefits under any Company Benefit Plan, or (iv) result in the forgiveness
of any indebtedness of any current or former employee, officer, director or independent contractor of the Company or any Subsidiary
thereof.

3.17     Labor.

(a)            Neither
the Company nor any of its Subsidiaries is a party to any labor or collective bargaining agreement.

(b)            There
are no (i) strikes, work stoppages, work slowdowns or lockouts pending or, to the Knowledge of the Company, threatened against
or involving the Company or any of its Subsidiaries, (ii) demands for recognition, representation proceedings, petitions seeking
representation, or union organizing or decertification activity pending or, to the Knowledge of the Company, threatened involving
any employees of the Company or any of its Subsidiaries, or (iii) unfair labor practice charges, grievances or complaints pending
or, to the Knowledge of the Company, threatened by or on behalf of any employee or group of employees of the Company or any of
its Subsidiaries, except in each case as would not have a Material Adverse Effect.

(c)            The
Company and its Subsidiaries are in compliance in all material respects with all applicable Laws respecting labor, employment and
employment practices, including (A) hiring, termination, terms and conditions of employment, wages and hours, equal opportunity,
classification of employees and contractors, including as exempt and non-exempt, and as employees and independent contractors,
background checks, and legal authorization to work in the United States, (B) unfair labor practices, (C) collective bargaining,
and (D) the Worker Adjustment and Retraining Notification Act of 1998, as amended, or any similar applicable state, local or foreign
Law.

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3.18     Tax
Matters. Except as set forth in Schedule 3.18:

(a)            As
of the date of this Agreement, the Company has timely filed all material Tax Returns required to be filed (after giving effect
to any extensions that have been requested by and granted to such party by the applicable Governmental Authority) and has paid
or caused to be paid on its behalf all Taxes due and owing, other than those (i) that are being contested in good faith and for
which adequate reserves have been established in accordance with GAAP or (ii) that, if not paid, would not reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect. All such Tax Returns are true, correct and complete in all
material respects. There are no past, current, pending or, to the Knowledge of the Company, threatened audits, claims, disputes,
or proceedings by any Governmental Authority relating to Taxes. The Company has not waived any statutes of limitation or agreed
to any extension of time with respect to any Tax assessment or deficiency. The Company has not received written notice from any
Governmental Authority in a jurisdiction where it does not file Tax Returns claiming that it is subject to Tax in that jurisdiction.
There are no liens for Taxes against the property of the Company or the Project except for Taxes not yet due and payable.

(b)            The
Company has complied with all Laws relating to the withholding and collection of Taxes relating to the Company. The Company has
not engaged in any reportable transaction within the meaning of Treasury Regulations Section 1.6011-4(b).

(c)            Neither
the Company nor any of its Subsidiaries has made an election under Section 965(h) of the Code.

(d)            The
Company (A) has not entered into any agreement with any Governmental Authority that would impact the amount of Taxes due by it,
(B) has never been a member of an affiliated, combined, consolidated or unitary group for purposes of filing any Tax Return or
has any liability for the Taxes of any other Person (1) under Treasury Regulations Section 1.1502-6 (or any similar provision of
state, local or foreign law), or (2) as a transferee or successor, by Contract, or otherwise, or (C) is not a party to, or has
any liability under, any Tax sharing, Tax allocation, Tax indemnity, or similar agreement or arrangement.

(e)        The
Company is not a United States real property holding company (“USRPHC”) within the meaning of Section 897 of
the Code.

3.19     Investment
Company Act. The Company is not and, after giving effect to the transactions contemplated by this Agreement will not be, an
“investment company” as that term is defined in, nor is the Company otherwise subject to registration or regulation
under, the Investment Company Act of 1940.

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3.20     OFAC
and Related Matters. None of the transactions contemplated hereby will violate (i) any Sanctions, or (ii) the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, Public Law 107-56
(October 26, 2001). The Company is in compliance with Sanctions in all material respects. There are no pending or threatened claims
or legal actions, or investigations by any Governmental Authority, of or against the Company, nor are there any judgments imposed
(or threatened to be imposed) upon the Company by or before any Governmental Authority, in each case, in connection with any alleged
violation of Sanctions. Neither the Purchase Price nor any other proceeds received by the Company hereunder will be used in any
dealings or transactions with any Sanctioned Person or in any manner that will result in a violation of Sanctions. The Company
has not violated any provision of the U.S. Foreign Corrupt Practices Act of 1977 or the U.K. Bribery Act 2010. None of the Company
nor any of its Subsidiaries, nor, to the Knowledge of the Company, any director, officer, agent, employee, Affiliate or Person
acting on behalf of the Company or its Subsidiaries is a Sanctioned Person or has done business on behalf of the Company or its
Subsidiaries with or for the benefit of any Sanctioned Person or otherwise violated Sanctions. The Company will not directly or
indirectly use the proceeds of the sale of the Common Stock, or lend, contribute or otherwise make available such proceeds to any
Subsidiary or other Person, for the purpose of transacting business with or financing the activities of any Sanctioned Person or
otherwise in violation of Sanctions. There have been no false or fictitious entries made in the books or records of the Company
or any of its Subsidiaries relating to any payment that the Sanctions prohibits, and neither the Company nor any of its Subsidiaries
has established or maintained a secret or unrecorded fund for use in making any such payments.

3.21     Broker;
Fees. Neither the Company nor any of its Subsidiaries has employed any broker or finder, or incurred any liability for any
brokerage or finders’ fees or any similar fees or commissions in connection with the transactions contemplated by this Agreement
for which the Purchaser is liable.

3.22     Insurance.

(a)       Schedule
3.22 lists all material insurance policies maintained by, or for the benefit of, the Company or any of its Subsidiaries. Complete
and accurate copies of each insurance policy listed on Schedule 3.22 have been made available in the VDR or in the Counsel
VDR at least two (2) Business Days prior to the date hereof. All such policies are in full force and effect and none are void or
voidable.

(b)       The
Company and all of its Subsidiaries have maintained all material insurance that is required by applicable Law.

(c)       No
claim of ten million U.S. Dollars (U.S. $10,000,000) or more has been made by the Company or any of its Subsidiaries under any
policy of insurance and no claim of one million U.S. Dollars (U.S. $1,000,000) or more under any such policy is outstanding.

(d)       All
premiums due in respect of such insurance policies have been paid when due.

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3.23     Securities
Law Compliance. Neither the Company nor any of its Affiliates, nor any person acting at its or their instruction, has conducted
any general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) in connection
with Common Stock Equity Offering. Neither the Company nor any of its Affiliates, nor any person acting at its or their instruction,
has, directly or indirectly, made any offers or sales of any Company security or solicited any offers to buy any security, under
circumstances that would require registration under the Securities Act of the Common Stock Equity Offering as contemplated hereby.

3.24     Reporting
Company; Form S-3. The Company is, and will be immediately after the consummation of the transactions contemplated hereby,
eligible to register the shares of Common Stock sold in the Common Stock Equity Offering on a registration statement on Form S-3
under the Securities Act.

3.25     Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) of the Exchange Act, and the Company
has taken no action designed to terminate, or reasonably likely to have the effect of terminating, the registration of the Common
Stock under the Exchange Act nor has the Company received any notification in writing that the SEC is contemplating terminating
such registration. Except as described in Schedule 3.25, the Company has not, in the two years preceding the date hereof,
received notice from the NASDAQ in writing to the effect that the Company is not in compliance with the listing or maintenance
requirements of such exchange.

3.26     Disclosure
Controls and Procedures. The Company has established and maintains and evaluates “disclosure controls and procedures”
(as such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act) and “internal control over financial reporting”
(as such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act); such disclosure controls and procedures are designed
to ensure that material information relating to the Company, including its consolidated Subsidiaries, is made known to the Company’s
Chief Executive Officer and its Chief Financial Officer by others within those entities, and such disclosure controls and procedures
are effective to perform the functions for which they were established; the Company’s independent auditors and the Audit
Committee of the Board have been advised of: (i) all significant deficiencies, if any, in the design or operation of internal controls
which could adversely affect the Company’s ability to record, process, summarize and report financial data; and (ii) all
fraud, if any, whether or not material, that involves management or other employees who have a role in the Company’s internal
controls; all material weaknesses, if any, in internal controls have been identified to the Company’s independent auditors;
since the date of the most recent evaluation of such disclosure controls and procedures and internal controls, there have been
no significant changes in internal controls or in other factors that could significantly affect internal controls, including any
corrective actions with regard to significant deficiencies and material weaknesses; the principal executive officers (or their
equivalents) and principal financial officers (or their equivalents) of the Company have made all certifications required by the
Sarbanes-Oxley Act and any related rules and regulations promulgated by the SEC, and the statements contained in each such certification
are complete and correct.

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3.27       Compliance
with the Sarbanes-Oxley Act. The Company, its Subsidiaries and the Company’s directors and officers are each in compliance
in all material respects with all applicable effective provisions of the Sarbanes-Oxley Act and the rules and regulations of the
SEC and the NASDAQ promulgated thereunder.

Section 4.       REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER.

The Purchaser represents
and warrants to the Company as of the date hereof (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. The Purchaser has been duly organized and is validly existing and is in good standing (to the extent such
concept exists) 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 Purchaser 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 Purchaser of this Agreement and the performance by the Purchaser of its obligations hereunder
have been duly authorized by all requisite action on the part of the Purchaser, and no other action on the part of the Purchaser
is necessary to authorize the execution and delivery by the Purchaser of this Agreement or the consummation of the transactions
contemplated by this Agreement. This Agreement has been duly executed and delivered by the Purchaser, and assuming due authorization,
execution and delivery by the Company, this Agreement constitutes the legal, valid and binding obligation of the Purchaser, enforceable
against the Purchaser 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 Purchaser of this Agreement do not and will not (a) violate
any provision of the organizational documents of the Purchaser; (b) conflict with or violate any Law or Order applicable to
the Purchaser 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 Purchaser 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 Purchaser Material Adverse Effect.

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4.4       Consents
and Approvals. The execution, delivery and performance by the Purchaser of this Agreement do not require the Purchaser 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 Purchaser or by which any
of its assets or properties may be bound, any contract to which the Purchaser is a party or by which the Purchaser 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 Purchaser
that, if not made or obtained, would not reasonably be expected to have, individually or in the aggregate, a Purchaser Material
Adverse Effect with respect to the Purchaser.

4.5       Purchaser
Representation. (i) The Purchaser 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), (7) or (8) 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 Purchaser 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 Purchaser has sufficient assets (or the ability to call sufficient capital from its equityholders) and the financial
capacity to perform all of its obligations under this Agreement, including the ability to fully fund the Purchase Price at the
Closing.

4.7       Reliance
on Exemptions. The Purchaser understands that the shares of Common Stock are being offered and sold to it in reliance upon
specific exemptions from the registration requirements of United States federal and state securities Laws and that the Company
is relying upon the truth and accuracy of, and the Purchaser’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Purchaser set forth herein in order to determine the availability of such exemptions
and the eligibility of the Purchaser to acquire the Common Stock offered hereunder.

4.8       Restricted
Securities. The Purchaser understands that the shares of Common Stock offered hereunder have not been registered under the
Securities Act by reason of a specific exemption from the registration provisions of the Securities Act. The Purchaser understands
that such shares of Common Stock are characterized as “restricted securities” under applicable U.S. federal and state
securities Laws and that, pursuant to these Laws, the Purchaser must hold the shares of Common Stock indefinitely unless such shares
are subsequently registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification
requirements is available.

4.9       Restrictive
Legend. The Purchaser understands that certificates evidencing the Securities may bear the following or substantially similar
legends, reflecting the restricted nature of the Securities to which the Purchaser has agreed in this Agreement:

THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED
OF UNLESS (I) SOLD PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT, (II) SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO
RULE 144 OR 144A OF SAID ACT, OR (III) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT IS PROVIDED TO THE COMPANY. THE SECURITIES REPRESENTED HEREBY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY SUCH SECURITIES.

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4.10       Broker;
Fees. The Purchaser has not employed any broker or finder or incurred any liability for any brokerage or finders’ fees
or any similar fees or commissions in connection with the transactions contemplated by this Agreement for which the Company or
any of its Subsidiaries is liable.

4.11       Confidentiality.
Except as set forth on Schedule 4.11, the Purchaser has not disclosed the fact that the Parties contemplated the transactions
contemplated by this Agreement nor any of the terms of this Agreement to anyone other than the Purchaser’s attorneys, advisors
and consultants who had a need to know and who have assisted the Purchaser in connection with the transactions contemplated by
this Agreement.

Section 5.        ADDITIONAL
COVENANTS.

5.1       Commercially
Reasonable Efforts. Each of the Company and the Purchaser 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.

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

5.4       Expenses.
Each Party 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.

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 Purchaser (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. Without limiting the generality of the foregoing,
and, except as contemplated in this Agreement or as described in Schedule 5.5, during the period from the date of this Agreement
through the Closing Date, without the prior written consent of the Purchaser (which consent shall not be unreasonably withheld
or delayed), the Company shall not, and shall not permit any of its Subsidiaries to:

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(a)            amend
any of its Charter Documents;

(b)            split,
combine, subdivide or reclassify any of its equity securities;

(c)            authorize,
sell, issue or grant any equity securities or sell, issue or grant any option, warrant or right to acquire any equity securities
or sell, issue or grant any security convertible into or exchangeable for equity securities, or sell, transfer or dispose of, or
grant or permit any Encumbrance on, any equity interest, except (i) with respect to shares of the Company’s Series A Convertible
Preferred Stock and Series B Convertible Preferred Stock or (ii) upon the exercise or conversion of any equity securities or any
option, warrant or right to acquire any equity securities outstanding as of the date hereof;

(d)            except
as required pursuant to applicable Law or the terms of any Company Benefit Plan in existence as of the date hereof, (A) make or
grant any increases in the compensation or fringe benefits of any current or former employee or service provider of the Company
or its Subsidiaries except in the ordinary course of business consistent with past practice (x) for current employees whose annual
base salary or annual fee is less than $150,000 or (y) in respect of fringe benefits, increases in fringe benefits that do not
result in a material increase in cost to the Company or its Subsidiaries; (B) take any action to accelerate the vesting or payment
of any compensation or benefits under any Company Benefit Plan or any action to fund or secure the payment of compensation or benefits
under any Company Benefit Plan; (C) amend, adopt or terminate any Company Benefit Plan other than in connection with routine, immaterial
or ministerial amendments to health and welfare plans that do not materially increase benefits or result in a material increase
in administrative costs; or (D) enter into, modify or terminate any collective bargaining agreement or other agreement or arrangement
with any labor union, works council, labor organization or other employee-representative body.

(e)            declare,
set aside for payment or pay any dividend on, or make any other distribution in respect of its equity interests or otherwise make
any payments to any holder of such interests in its capacity as such, except with respect to shares of the Company’s Series
A Convertible Preferred Stock and Series B Convertible Preferred Stock;

(f)            take
or fail to take any action the result of which would cause the creation of an Encumbrance on any of its equity interests;

(g)            make
any material change to its financial reporting and accounting methods other than as required by a change in GAAP;

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(h)            make
any material change in its Tax reporting or Tax accounting methods, including making or changing any material Tax elections except
as required by applicable Law;

(i)            change
its entity classification for Tax purposes;

(j)            acquire
any Person or other business organization, division or business by merger, consolidation, purchase of an equity interest or assets,
or by any other manner;

(k)            take
any action to liquidate, dissolve, or wind up its business; or

(l)            commit
itself to do any of the foregoing.

5.6       Public
Announcements. No press release or other public announcement related to this Agreement or the transactions contemplated herein
shall be issued or made without the joint prior written consent and approval of the Company and the Purchaser (which consent shall
not be unreasonably withheld, conditioned or delayed), unless such release or announcement is required by law or the rules of any
securities exchange on which securities of the Company are traded (including, for the avoidance of doubt, any Current Report on
Form 8-K required to be filed by the Company with the SEC describing this Agreement or the transactions contemplated herein), in
which case the Purchaser shall be afforded a reasonable opportunity to review such public announcement prior to publication.

5.7       Joint
Voluntary Notification. The Parties agree to consult and determine in good faith as expeditiously as possible whether a Joint
Voluntary Notification (“JVN”) of the transactions contemplated by the Transaction Documents to CFIUS under
the DPA is desirable and should be filed prior to the Closing. If either of the Parties determines in its sole discretion that
such a JVN should be filed, the Parties shall use commercially reasonable efforts to (i) take the CFIUS Filing Actions and the
CFIUS Cooperation Actions, (ii) obtain the CFIUS Clearance as promptly as practicable, (iii) comply at the earliest practicable
date with any request for information or documentary material received by the Purchaser or any of their Affiliates from any governmental,
regulatory or stock exchange authority, and (iv) avoid the entry of any governmental order whether temporary, preliminary or permanent,
with respect to CFIUS Clearance, that would have the effect of prohibiting, preventing or restricting consummation of the transactions
contemplated hereby, provided that for the avoidance of doubt, commercially reasonable efforts under clauses (i) to (iv)
shall not require the Purchaser to accept any proposed mitigation agreement that would have an adverse economic impact on the Purchaser
or unduly limit the Purchaser’s governance rights in the Company. The Purchaser shall pay the cost of all fees payable to
a governmental, regulatory or stock exchange authority in connection with filings in connection with obtaining CFIUS Clearance.

5.8        Entity
Classification. The Company shall not take any action that would cause it to be treated other than as a corporation for U.S.
federal income tax purposes.

    	 	28 	 

     

    

 

Section 6.        CONDITIONS
TO THE PURCHASER’S OBLIGATIONS. The obligations of the Purchaser 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 Purchaser:

6.1       
Representations and Warranties. 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 on and as of the Closing Date (except to the extent
such representations and warranties expressly speak as of an earlier date, in which case such representations and warranties shall
be true and correct as of such date).

6.2       Performance
of Closing Actions. The Company shall have performed each of the Closing Actions required to be performed by them at the Closing.

6.3       No
Legal Impediment to Issuance; No Material Adverse Effect. 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,
and no Material Adverse Effect shall have occurred.

6.4       [***].

6.5       CFIUS
Matters. The Parties shall have received the CFIUS Clearance or shall have otherwise determined to each of their reasonable
satisfaction that CFIUS Clearance is not required under applicable law.

Section 7.       CONDITIONS
TO THE COMPANY’S OBLIGATIONS. The obligations of the Company to issue and sell to the Purchaser the Common Stock
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. All of the representations and warranties made by the Purchaser in this Agreement shall
be true and correct in all material respects as of the Closing Date as though made on and as of the Closing Date (except to the
extent such representations and warranties expressly speak as of an earlier date, in which case such representations and warranties
shall be true and correct as of such date).

7.2       Performance
of Closing Actions. The Purchaser shall have performed each of the Closing Actions required to be performed by it at the Closing.

7.3       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 by this Agreement.

7.4       CFIUS
Matters. The Parties shall have received the CFIUS Clearance or shall have otherwise determined to each of their reasonable
satisfaction that CFIUS Clearance is not required under applicable law.

    	 	29 	 

     

    

 

Section 8.        TERMINATION.

(a)            Termination
by the Purchaser. This Agreement may be terminated at any time prior to the Closing by the Purchaser following the occurrence
of any of the following events (each a “Purchaser Termination Event”) immediately upon delivery of written notice
to the Company; provided, however that the Purchaser shall not be permitted to terminate this Agreement if at the
time of such termination the Purchaser 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 Closing Date;

(ii)             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 Purchaser
and (B) the Closing Date;

(iii)            the
Company breaches any representation or warranty in any material respect or breaches any covenant applicable to it in any material
respect under this Agreement and if such breach is curable, it is not cured before the earlier of (A) fifteen (15) Business Days
after receipt of written notice by the Company from the Purchaser and (B) the Closing Date; or

(iv)             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 at any time prior to the Closing by the Company 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:

(i)              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 Purchaser from the Company
and (B) the Closing Date;

(ii)             the
Purchaser breaches any representation or warranty in any material respect or breaches any covenant applicable to it in any material
respect under this Agreement and if such breach is curable, it is not cured before the earlier of (A) fifteen (15) Business
Days after receipt of written notice by the Purchaser from the Company and (B) the Closing Date;

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

    	 	30 	 

     

    
(iv)            the
Closing does not occur on or before the Closing Date.

(c)            Purchaser
Default. Subject to Section 10.18, the Purchaser agrees that, in the event of a Purchaser Default, the Company shall
be entitled to all remedies available at law and at equity, including to enforce rights of damages and/or specific performance
pursuant to Section 10.17.

(d)            Mutual
Termination. This Agreement may be terminated by the mutual written consent of the Company and the Purchaser.

(e)            Effect
of Purchaser Termination. Upon a termination of this Agreement in accordance with Section 8(a), the Purchaser shall
have no continuing liability or obligation to the Company and the provisions of this Agreement shall have no further force or effect
with respect to the Purchaser, except for the provisions in Sections 8, 9, and 10, each of which shall survive
termination of this Agreement; provided, however, that no such termination shall relieve the Purchaser 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 Purchaser shall be preserved in the event of the occurrence of such breach
or non-performance.

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

(g)            Effect
of Mutual Termination. Upon a termination of this Agreement in accordance with Section 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 Sections 8, 9, and 10, each of which shall survive termination
of this Agreement; provided, however, 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 such Party shall be preserved in the event of the occurrence of such breach or non-performance.

    	 	31 	 

     

    

 

Section 9.       INDEMNIFICATION.
The Company agrees to indemnify, defend and hold harmless the Indemnified Parties from and against any and all claims, damages,
losses, liabilities, actions, suits, proceedings 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 this Agreement (including
as a result of any breach or inaccuracy of any representation, warranty or covenant of the Company herein), the other Transaction
Documents, or the transactions contemplated hereby or thereby, any use made or proposed to be made by the Company with the proceeds
of the Common Stock Equity Offering, or any claim, litigation, investigation, inquiry 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 and documented 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 Order 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 other Transaction Documents, or the transactions contemplated hereby or thereby, 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 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 other Transaction Documents, 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 (x) any violation of Law by such Indemnified Party, or (y)
to the extent that a claim, damage, loss, liability or expense is attributable to the Purchaser’s breach of any of the representations,
warranties, covenants or agreements made by the Purchaser in this Agreement or in the other Transaction Documents.

Section 10.      MISCELLANEOUS.

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

    	 	32 	 

     

    

 

10.2     Arm’s
Length Transaction. The Company acknowledges and agrees that (i) the Common Stock Equity Offering and any other transactions
described in this Agreement are an arm’s-length commercial transaction between the Parties and (ii) the Purchaser 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 by this Agreement or the process leading thereto, and the Purchaser has no obligation to the Company
with respect to the transactions contemplated by this Agreement except those obligations expressly set forth in this Agreement
or the Transaction Documents to which it is a party.

10.3     Survival.
The representations, warranties, covenants, agreements and obligations of the Parties shall survive the Closing as follows (each
such survival period, a “Survival Period”): (i) except for Fundamental Representations and the Tax Representations,
the representations and warranties made by each Party in this Agreement shall survive the Closing until the first anniversary of
the Closing; (ii) Fundamental Representations shall survive the Closing until the fifth anniversary of the Closing, (iii) Tax Representations
shall survive the Closing for the full period of all applicable statutes of limitations related thereto (after giving effect to
any waiver or extension thereof), and (iv) the covenants, agreements, obligations and other undertakings of the Parties shall survive
the Closing until fully performed in accordance with their terms. All liability of the Indemnifying Parties with respect to the
representations, warranties, covenants, agreements and obligations hereunder shall be extinguished at the end of the applicable
Survival Period, except to the extent that notice of an alleged breach of such representations, warranties, covenants, agreements
or obligations has been provided before such date; provided that if notice is given prior to the expiration of the applicable Survival
Period, the claim with respect to such representation, warranty, covenant, agreement or obligation shall continue indefinitely
until finally resolved.

10.4     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.

10.5     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 10.5).

(a)        If
to the Company, to:

NextDecade Corporation

1000 Louisiana
Street, Suite 3900

Houston, Texas
77002

Attention:        Krysta
De Lima, General Counsel

kdelima@next-decade.com

 

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

 

K&L Gates
LLP

214 North Tryon
Street, 47th Floor

Charlotte, North
Carolina 28202

Attention:        Sean
M. Jones

Sean.Jones@klgates.com

 

    	 	33 	 

     

    

 

(b)        If
to the Purchaser, to the address set forth on Exhibit F.

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.

10.6     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.

10.7     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.

10.8     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.

10.9     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 below, neither this Agreement nor any of the rights, interests or obligations under this
Agreement may 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 Purchaser to (i) any Affiliate of the Purchaser upon notice to but without the consent of the Company
or (ii) one or more other third parties with the consent of the Company, which consent shall not be unreasonably withheld or delayed;
provided, however, that any such transferee, as a condition precedent to such transfer, becomes a Party to this Agreement
and assumes the obligations of the Purchaser with respect to the transferred shares under this Agreement by executing an addendum
substantially in the form set forth in Exhibit A (the “Addendum”) and an assumption agreement in
substantially the form set forth in Exhibit B hereto (the “Assumption Agreement”) and deliver the
same to the Company in accordance with Section 10.5, and provided, further, that (a) with respect to
a transfer to an Affiliate of the Purchaser, the Purchaser either (i) shall have provided an adequate equity support letter or
a guarantee of such Affiliate-transferee’s obligations, in form and substance reasonably acceptable to the Company or (ii)
shall remain fully obligated to fund the Purchase Price, 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 obligations; and provided, further,
that in no event shall the Purchaser make an assignment of any of its rights, obligations or interests under this Agreement that,
to the Purchaser’s actual knowledge, would violate applicable Law. 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.

    	 	34 	 

     

    

 

10.10      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.

10.11      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 Purchaser.

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

10.13      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 by the federal or state courts located in the State of Delaware; (b) irrevocably submits to the jurisdiction
of such courts 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 of such courts or
that such action or proceeding was brought in an inconvenient forum; 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 Section 10.5
to such Party at its address as provided in Section 10.5 (provided that nothing herein shall affect the right to effect
service of process in any other manner permitted by Law).

10.14      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 10.14.

    	 	35 	 

     

    

 

10.15      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.

10.16      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. Signatures of the Parties transmitted by electronic mail shall be deemed
to be their original signatures for all purposes.

10.17      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, without the necessity of proving the inadequacy of monetary damages as a
remedy.

10.18      Waiver
of Consequential Damages. Notwithstanding any provision in this Agreement to the contrary, in no event shall any Party or its
Affiliates, or their respective managers, members, shareholders or representatives, be liable hereunder at any time for punitive,
incidental, consequential special or indirect damages, including loss of future profits, revenue or income, or loss of business
reputation of any other Party or any of its Affiliates, whether in contract, tort (including negligence), strict liability or otherwise,
and each Party hereby expressly releases each other Party, its Affiliates, and their respective managers, members, shareholders,
partners, consultants, representatives, successors and assigns therefrom.

    	 	36 	 

     

    

 

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. All definitions set forth in this Agreement are deemed applicable whether the words defined are used in this Agreement
in the singular or in the plural, and correlative forms of defined terms have corresponding meanings. The term “including”
is not limiting and means “including without limitation.” 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,
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]

 

    	 	37 	 

     

    

 

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

	 	 	 
	 	NEXTDECADE CORPORATION
	 	 
	 	 
	 	By:	 /s/ Matthew Schatzman
	 	Name: Matthew Schatzman
	 	Title: Chief Executive Officer
	 	 

 

    	 	 	 

     

    

 

	 	 	 
	 	
        PURCHASER

         

	 	NINTEENTH INVESTMENT COMPANY LLC
	 	 
	 	 
	 	By:	 /s/ Robert Murphy
	 	Name: Robert Murphy
	 	Title: Senior Vice President, M&A

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