Document:

Exhibit 10.1

 

$550,000,000

 

SRC ENERGY INC.

 

6.250% Senior Notes due 2025

 

Registration Rights Agreement

 

This REGISTRATION RIGHTS AGREEMENT dated November 29, 2017 (this “Agreement”) is entered into by and among SRC Energy Inc., a Colorado corporation (the “Company”), J.P. Morgan Securities LLC (“J.P. Morgan”) and Credit Suisse Securities (USA) LLC (“Credit Suisse”) and the several other initial purchasers listed on Schedule 1 to the Purchase Agreement (as defined below) (collectively, the “Initial Purchasers”).

 

The Company and the Initial Purchasers are parties to the Purchase Agreement dated November 14, 2017 (the “Purchase Agreement”), which provides for the sale by the Company to the Initial Purchasers of $550,000,000 aggregate principal amount of the Company’s 6.250% Senior Notes due 2025 (the “Securities”) which will be guaranteed on an unsecured senior basis by any subsidiary of the Company that executes a Subsidiary Guarantee (as defined below) after the date of this Agreement (collectively, the “Guarantors”), it being understood and agreed that there are no Guarantors as of the date hereof.  As an inducement to the Initial Purchasers to enter into the Purchase Agreement, the Company has agreed, and any Guarantors will agree, to provide to the Initial Purchasers and their direct and indirect transferees the registration rights set forth in this Agreement.  The execution and delivery of this Agreement is a condition to the closing under the Purchase Agreement.

 

In consideration of the foregoing, the parties hereto agree as follows:

 

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

 

“Business Day” shall mean any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed.  For purposes of this Agreement, if the day on which any deadline specified in this Agreement expires is not a Business Day, such deadline shall be deemed to expire on the next succeeding Business Day.

 

“Company” shall have the meaning set forth in the preamble and shall also include the Company’s successors.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

“Credit Suisse” shall have the meaning set forth in the preamble.

 

“Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

 

“Exchange Offer” shall mean the exchange offer by the Company and the Guarantors of Exchange Securities for Registrable Securities pursuant to Section 2(a) hereof.

 

1

 

“Exchange Offer Registration” shall mean a registration under the Securities Act effected pursuant to Section 2(a) hereof.

 

“Exchange Offer Registration Statement” shall mean an exchange offer registration statement on Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to such registration statement, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“Exchange Securities” shall mean senior notes issued by the Company and guaranteed by the Guarantors under the Indenture containing terms identical to the Securities (except that the Exchange Securities will not be subject to restrictions on transfer or to any increase in annual interest rate for failure to comply with this Agreement) and to be offered to Holders of Securities in exchange for Securities pursuant to the Exchange Offer.

 

“FINRA” means the Financial Industry Regulatory Authority, Inc.

 

“Free Writing Prospectus” means each free writing prospectus (as defined in Rule 405 under the Securities Act) prepared by or on behalf of the Company or used or referred to by the Company in connection with the sale of the Securities or the Exchange Securities.

 

“Guarantors” shall have the meaning set forth in the preamble.

 

“Holders” shall mean the Initial Purchasers, for so long as they own any Registrable Securities, and each of their successors, assigns and direct and indirect transferees who become owners of Registrable Securities under the Indenture; provided that, for purposes of Sections 4 and 5 hereof, the term “Holders” shall include Participating Broker-Dealers.

 

“Indemnified Person” shall have the meaning set forth in Section 5(c) hereof.

 

“Indemnifying Person” shall have the meaning set forth in Section 5(c) hereof.

 

“Indenture” shall mean the Indenture dated as of November 29, 2017 between the Company and U.S. Bank National Association, as trustee, as the same may be amended from time to time in accordance with the terms thereof.

 

“Initial Purchasers” shall have the meaning set forth in the preamble.

 

“Inspector” shall have the meaning set forth in Section 3(a)(xiv) hereof.

 

“Issuer Information” shall have the meaning set forth in Section 5(a) hereof.

 

“J.P. Morgan” shall have the meaning set forth in the preamble.

 

“Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of the outstanding Registrable Securities; provided that whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, any Registrable Securities owned directly or indirectly by the Company or any of its affiliates shall not be counted in determining whether such consent or approval was given by the Holders of

 

2

 

such required percentage or amount; and provided, further, that if the Company shall issue any additional Securities under the Indenture prior to consummation of the Exchange Offer or, if applicable, the effectiveness of any Shelf Registration Statement, such additional Securities and the Registrable Securities to which this Agreement relates shall be treated together as one class for purposes of determining whether the consent or approval of Holders of a specified percentage of Registrable Securities has been obtained.

 

“Notice and Questionnaire” shall mean a notice of registration statement and selling security holder questionnaire distributed to a Holder by the Company upon receipt of a Shelf Request from such Holder.

 

“Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

 

“Participating Holder” shall mean any Holder of Registrable Securities that has returned a completed and signed Notice and Questionnaire to the Company in accordance with Section 2(b) hereof.

 

“Person” shall mean an individual, partnership, limited liability company, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof.

 

“Prospectus” shall mean the prospectus included in, or, pursuant to the rules and regulations of the Securities Act, deemed a part of, a Registration Statement, including any preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus supplement, including a prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other amendments and supplements to such prospectus, and in each case including any document incorporated by reference therein.

 

“Purchase Agreement” shall have the meaning set forth in the preamble.

 

“Registrable Securities” shall mean the Securities; provided that the Securities shall cease to be Registrable Securities (i) when a Registration Statement with respect to such Securities has become effective under the Securities Act and such Securities have been exchanged or disposed of pursuant to such Registration Statement, (ii) when such Securities cease to be outstanding or (iii) except in the case of Securities that otherwise remain Registrable Securities and that are held by an Initial Purchaser and that are ineligible to be exchanged in the Exchange Offer, when the Exchange Offer is consummated.

 

“Registration Expenses” shall mean any and all expenses incident to performance of or compliance by the Company and the Guarantors with this Agreement, including without limitation: (i) all SEC, stock exchange or FINRA registration and filing fees, (ii) all fees and expenses incurred in connection with compliance with state securities or blue sky laws (including reasonable fees and disbursements of not more than one counsel in any particular jurisdiction for any Underwriters or Holders in connection with blue sky qualification of any Exchange Securities or Registrable Securities), (iii) all expenses of the Company and the Guarantors in preparing or assisting in preparing, word processing, printing and distributing any Registration Statement, any Prospectus, any Free Writing Prospectus and any amendments or supplements thereto, any underwriting agreements, securities sales agreements or other similar

 

3

 

agreements and any other documents relating to the performance of and compliance with this Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating to the qualification of the Indenture under applicable securities laws, (vi) the fees and disbursements of the Trustee and its counsel, (vii) the fees and disbursements of counsel for the Company and the Guarantors and, in the case of a Shelf Registration Statement, the reasonable fees and disbursements of one counsel for the Participating Holders (which counsel shall be selected by the Participating Holders holding a majority of the aggregate principal amount of Registrable Securities held by such Participating Holders and which counsel may also be counsel for the Initial Purchasers, such counsel to be reasonably acceptable to the Company) and (viii) the fees and disbursements of the independent registered public accountants and independent petroleum engineers of the Company and the Guarantors, including the expenses of any special audits, “comfort” letters or letters concerning oil and gas reserve estimates, as applicable, required by or incident to the performance of and compliance with this Agreement, but excluding fees and expenses of counsel to the Underwriters (other than fees and expenses set forth in clause (ii) above) or the Holders and underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Securities by a Holder.

 

“Registration Statement” shall mean any registration statement filed under the Securities Act of the Company and the Guarantors that covers any of the Exchange Securities or Registrable Securities pursuant to the provisions of this Agreement and all amendments and supplements to any such registration statement, including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“SEC” shall mean the United States Securities and Exchange Commission.

 

“Securities” shall have the meaning set forth in the preamble.

 

“Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

 

“Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

 

“Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

 

“Shelf Registration Statement” shall mean a “shelf” registration statement of the Company and the Guarantors that covers all or a portion of the Registrable Securities (but no other securities unless approved by a majority in aggregate principal amount of the Securities held by the Participating Holders) on an appropriate form under Rule 415 under the Securities Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“Shelf Request” shall have the meaning set forth in Section 2(b) hereof.

 

“Subsidiary Guarantees” shall mean the guarantees of the Securities and Exchange Securities by the Guarantors, if any, under the Indenture.

 

4

 

“Staff” shall mean the staff of the SEC.

 

“Target Registration Date” shall mean November 29, 2018.

 

“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to time.

 

“Trustee” shall mean the trustee with respect to the Securities under the Indenture.

 

“Underwriter” shall have the meaning set forth in Section 3(e) hereof.

 

“Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an Underwriter for reoffering to the public.

 

Section 2.                                           Registration Under the Securities Act.  (a) To the extent not prohibited by any applicable law or applicable interpretations of the Staff, the Company and the Guarantors shall use their commercially reasonable efforts to (i) cause to be filed an Exchange Offer Registration Statement covering an offer to the Holders to exchange all the Registrable Securities for Exchange Securities and (ii) have such Registration Statement become and remain effective until 180 days after the last Exchange Date for use by one or more Participating Broker-Dealers; provided that if the letters of transmittal relating to the Exchange Offer as provided to the Company indicate that no Holder is a Broker-Dealer, the Company will not be obligated to maintain the effectiveness of such Registration Statement after the consummation of the Exchange Offer.  The Company and the Guarantors shall commence the Exchange Offer promptly after the Exchange Offer Registration Statement is declared effective by the SEC and use their commercially reasonable efforts to complete the Exchange Offer not later than 60 days after such effective date.

 

The Company and the Guarantors shall commence the Exchange Offer by mailing or making available the related Prospectus, appropriate letters of transmittal and other accompanying documents to each Holder of record stating, in addition to such other disclosures as are required by applicable law, substantially the following:

 

(i)                                     that the Exchange Offer is being made pursuant to this Agreement and that all Registrable Securities validly tendered and not properly withdrawn will be accepted for exchange;

 

(ii)                                  the dates of acceptance for exchange (which shall be a period of at least 20 Business Days from the date such notice is mailed or made available) (the “Exchange Dates”);

 

(iii)                               that any Registrable Security not tendered will remain outstanding and continue to accrue interest but will not retain any rights under this Agreement, except as otherwise specified herein;

 

(iv)                              that any Holder electing to have a Registrable Security exchanged pursuant to the Exchange Offer will be required to (A) surrender such Registrable Security, together with the appropriate letters of transmittal, to the institution and at the address and in the manner specified in the notice, or (B) effect such exchange otherwise

 

5

 

in compliance with the applicable procedures of the depositary for such Registrable Security, in each case prior to the close of business on the last Exchange Date; and

 

(v)                                 that any Holder will be entitled to withdraw its election, not later than the close of business on the last Exchange Date, by (A) sending to the institution and at the address specified in the notice, a telegram, facsimile transmission or letter setting forth the name of such Holder, the principal amount of Registrable Securities delivered for exchange and a statement that such Holder is withdrawing its election to have such Securities exchanged or (B) effecting such withdrawal in compliance with the applicable procedures of the depositary for the Registrable Securities.

 

As a condition to participating in the Exchange Offer, a Holder will be required to represent to the Company and the Guarantors that (i) any Exchange Securities to be received by it will be acquired in the ordinary course of its business, (ii) at the time of the commencement of the Exchange Offer it has no arrangement or understanding with any Person to participate in the distribution (within the meaning of the Securities Act) of the Exchange Securities in violation of the provisions of the Securities Act, (iii) it is not an “affiliate” (within the meaning of Rule 405 under the Securities Act) of the Company or any Guarantor and (iv) if such Holder is a broker-dealer that will receive Exchange Securities for its own account in exchange for Registrable Securities that were acquired as a result of market-making or other trading activities, then such Holder will deliver a Prospectus (or, to the extent permitted by law, make available a Prospectus to purchasers) in connection with any resale of such Exchange Securities.

 

As soon as practicable after the last Exchange Date, the Company and the Guarantors shall:

 

(i)                                     accept for exchange Registrable Securities or portions thereof validly tendered and not properly withdrawn pursuant to the Exchange Offer; and

 

(ii)                                  deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities or portions thereof so accepted for exchange by the Company and issue, and cause the Trustee to promptly authenticate and deliver to each Holder, Exchange Securities equal in principal amount to the principal amount of the Registrable Securities tendered by such Holder.

 

The Company and the Guarantors shall use their commercially reasonable efforts to complete the Exchange Offer as provided above and shall comply with the applicable requirements of the Securities Act, the Exchange Act and other applicable laws and regulations in connection with the Exchange Offer.  The Exchange Offer shall be subject only to conditions that are customary for exchange offers in similar transactions, including that the Exchange Offer does not violate any applicable law or applicable interpretations of the Staff.

 

(b)                                 In the event that (i) the Company and the Guarantors determine that the Exchange Offer Registration provided for in (a) hereof is not available or the Exchange Offer may not be completed as soon as practicable after the last Exchange Date because it would violate any applicable law or applicable interpretations of the Staff, (ii) the Exchange Offer is not for any other reason completed by the Target Registration Date or (iii) upon receipt of a written request (a “Shelf Request”) from any Initial Purchaser representing that it holds Registrable Securities

 

6

 

that are or were ineligible to be exchanged in the Exchange Offer under applicable law or applicable interpretations of the Staff, the Company and the Guarantors shall use their commercially reasonable efforts to cause to be filed as soon as reasonably practicable after such determination, date or Shelf Request, as the case may be, a Shelf Registration Statement providing for the sale of all the Registrable Securities by the Holders thereof and to have such Shelf Registration Statement become effective; provided that no Holder will be entitled to have any Registrable Securities included in any Shelf Registration Statement, or entitled to use the prospectus forming a part of such Shelf Registration Statement, until such Holder shall have delivered a completed and signed Notice and Questionnaire and provided such other information regarding such Holder to the Company as is contemplated by Section 3(b) hereof.

 

In the event that the Company and the Guarantors are required to file a Shelf Registration Statement pursuant to clause (iii) of the preceding sentence, the Company and the Guarantors shall use their commercially reasonable efforts to file and have become effective both an Exchange Offer Registration Statement pursuant to (a) hereof with respect to all Registrable Securities and a Shelf Registration Statement (which may be a combined Registration Statement with the Exchange Offer Registration Statement) with respect to offers and sales of Registrable Securities held by the Initial Purchasers after completion of the Exchange Offer.

 

The Company and the Guarantors agree to use their commercially reasonable efforts to keep the Shelf Registration Statement continuously effective until the Securities cease to be Registrable Securities (the “Shelf Effectiveness Period”).  The Company and the Guarantors further agree to supplement or amend the Shelf Registration Statement, the related Prospectus and any Free Writing Prospectus if required by the rules, regulations or instructions applicable to the registration form used by the Company for such Shelf Registration Statement or by the Securities Act or by any other rules and regulations thereunder or if reasonably requested by a Holder of Registrable Securities with respect to information relating to such Holder, and to use their commercially reasonable efforts to cause any such amendment to become effective, if required, and such Shelf Registration Statement, Prospectus or Free Writing Prospectus, as the case may be, to become usable as soon as thereafter practicable.  The Company and the Guarantors agree to furnish to any Participating Holder, upon request, copies of any such supplement or amendment promptly after its being used or filed with the SEC.

 

(c)                                  The Company and the Guarantors shall pay all Registration Expenses in connection with any registration pursuant to (a) or (b) hereof.  Each Holder shall pay all underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

 

(d)                                 An Exchange Offer Registration Statement pursuant to (a) hereof will not be deemed to have become effective unless it has been declared effective by the SEC.  A Shelf Registration Statement pursuant to (b) hereof will not be deemed to have become effective unless it has been declared effective by the SEC or is automatically effective upon filing with the SEC as provided by Rule 462 under the Securities Act.

 

In the event that either the Exchange Offer is not completed or the Shelf Registration Statement, if required hereby, is not declared effective (or does not automatically become effective) on or prior to November 29, 2018, the Company will pay liquidated damages to

 

7

 

Holders of Registrable Securities with the effect that the interest rate on the Registrable Securities will be increased by 1.00% per annum from such date until the date the Exchange Offer is completed or the Shelf Registration Statement, if required hereby, is declared effective by the SEC (or becomes automatically effective).  All liquidated damages will be paid by the Company on the next scheduled interest payment date in the same manner as interest is paid on the Securities under the Indenture.

 

If the Shelf Registration Statement, if required hereby, has been declared effective or automatically becomes effective, as the case may be, and thereafter either ceases to be effective or the Prospectus contained therein ceases to be usable at any time during the Shelf Effectiveness Period, and such failure to remain effective or usable exists for more than 30 days (whether or not consecutive) in any 12-month period, unless such failure to remain effective or usable relates or is directly attributable to an acquisition, disposition or comparable material corporate restructuring event affecting the Company, then the Company will pay liquidated damages to the Holders of Registrable Securities with the effect that the interest rate on the Registrable Securities will be increased by 1.00% per annum commencing on the 31st day in such 12-month period and ending on such date that the Shelf Registration Statement has again been declared (or automatically becomes) effective or the Prospectus again becomes usable.

 

(e)                                  Without limiting the remedies available to the Initial Purchasers and the Holders, the Company and the Guarantors acknowledge that any failure by the Company or the Guarantors to comply with their obligations under (a) and (b) hereof may result in material irreparable injury to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, the Initial Purchasers or any Holder may obtain such relief as may be required to specifically enforce the Company’s and the Guarantors’ obligations under (a) and (b) hereof.

 

Section 3.                                           Registration Procedures.  (a) In connection with their obligations pursuant to Section 2(a) and Section 2(b) hereof, the Company and the Guarantors shall as expeditiously as is reasonably practicable:

 

(i)                                     prepare and file with the SEC a Registration Statement on the appropriate form under the Securities Act, which form (x) shall be selected by the Company and the Guarantors, (y) shall, in the case of a Shelf Registration, be available for the sale of the Registrable Securities by the Holders thereof and (z) shall comply as to form in all material respects with the requirements of the applicable form and include all financial statements and oil and gas reserve information required by the SEC to be filed therewith; and use their commercially reasonable efforts to cause such Registration Statement to become effective and remain effective for the applicable period in accordance with Section 2 hereof;

 

(ii)                                  prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary to keep such Registration Statement effective for the applicable period in accordance with Section 2 hereof and cause each Prospectus to be supplemented by any required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424 under the Securities Act; and shall, subject to Section 2, keep each Prospectus current during the period

 

8

 

described in Section 4(3) of and Rule 174 under the Securities Act that is applicable to transactions by brokers or dealers with respect to the Registrable Securities or Exchange Securities;

 

(iii)                               to the extent any Free Writing Prospectus is used, file with the SEC any Free Writing Prospectus that is required to be filed by the Company or the Guarantors with the SEC in accordance with the Securities Act and to retain any Free Writing Prospectus not required to be filed;

 

(iv)                              in the case of a Shelf Registration, furnish to each Participating Holder, to counsel for the Initial Purchasers, to counsel for such Participating Holders and to each Underwriter of an Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each Prospectus, preliminary prospectus or Free Writing Prospectus, and any amendment or supplement thereto, as such Participating Holder, counsel or Underwriter may reasonably request in order to facilitate the sale or other disposition of the Registrable Securities thereunder; and, subject to Section 3(c) hereof, the Company and the Guarantors consent to the use of such Prospectus, preliminary prospectus or such Free Writing Prospectus and any amendment or supplement thereto in accordance with applicable law by each of the Participating Holders and any such Underwriters in connection with the offering and sale of the Registrable Securities covered by and in the manner described in such Prospectus, preliminary prospectus or such Free Writing Prospectus or any amendment or supplement thereto in accordance with applicable law;

 

(v)                                 in the case of a Shelf Registration, use their commercially reasonable efforts to register or qualify the Registrable Securities under all applicable state securities or blue sky laws of such jurisdictions as any Participating Holder shall reasonably request in writing by the time the applicable Registration Statement becomes effective; cooperate with such Participating Holders in connection with any filings required to be made with FINRA; and do any and all other acts and things that may be reasonably necessary or advisable to enable each Participating Holder to complete the disposition in each such jurisdiction of the Registrable Securities owned by such Participating Holder; provided that nothing herein shall require the Company or any Guarantor to (1) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify, (2) file any general consent to service of process in any such jurisdiction or (3) subject itself to taxation in any such jurisdiction if it is not so subject;

 

(vi)                              notify counsel for the Initial Purchasers and, in the case of a Shelf Registration, notify each Participating Holder and counsel for such Participating Holders promptly and, if requested by any such Participating Holder or counsel, confirm such advice in writing (1) when a Registration Statement has become effective, when any post-effective amendment thereto has been filed and becomes effective, when any Free Writing Prospectus has been filed or any amendment or supplement to the Prospectus or any Free Writing Prospectus has been filed (except with respect to documents incorporated by reference therein containing only information regarding the Shelf Registration or the transactions contemplated thereby previously incorporated by reference therein), (2) of any request by the SEC or any state securities authority for

 

9

 

amendments and supplements to a Registration Statement, Prospectus or any Free Writing Prospectus or for additional information after the Registration Statement has become effective, (3) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, including the receipt by the Company of any notice of objection of the SEC to the use of a Shelf Registration Statement or any post- effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act, (4) if, between the applicable effective date of a Shelf Registration Statement and the closing of any sale of Registrable Securities covered thereby, the representations and warranties of the Company or any Guarantor contained in any underwriting agreement, securities sales agreement or other similar agreement, if any, relating to an offering of such Registrable Securities cease to be true and correct in all material respects or if the Company or any Guarantor receives any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose, (5) of the happening of any event during the period a Registration Statement is effective that makes any statement made in such Registration Statement or the related Prospectus or any Free Writing Prospectus untrue in any material respect or that requires the making of any changes in such Registration Statement or Prospectus or any Free Writing Prospectus in order to make the statements therein, in the light of the circumstances in which they were made in the case of the Prospectus or any Free Writing Prospectus, not misleading and (6) of any determination by the Company or any Guarantor that a post-effective amendment to a Registration Statement or any amendment or supplement to the Prospectus (except with respect to documents incorporated by reference therein containing only information regarding the Shelf Registration or the transactions contemplated thereby previously incorporated by reference therein) or any Free Writing Prospectus would be appropriate;

 

(vii)                           use their commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement or, in the case of a Shelf Registration, the resolution of any objection of the SEC pursuant to Rule 401(g)(2) under the Securities Act, including by filing an amendment to such Registration Statement on the proper form, as soon as practicable and provide prompt notice to each Holder or Participating Holder of the withdrawal of any such order or such resolution;

 

(viii)                        in the case of a Shelf Registration, furnish or make available to each Participating Holder, without charge, at least one conformed copy of each Registration Statement and any post-effective amendment thereto (without any documents incorporated therein by reference or exhibits thereto, unless requested);

 

(ix)                              in the case of a Shelf Registration, cooperate with the Participating Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any restrictive legends, to the extent permitted by law, and enable such Registrable Securities to be issued in such denominations and registered in such names (consistent with the provisions of the Indenture) as such Participating Holders may reasonably request at least three Business Days prior to the closing of any sale of Registrable Securities;

 

10

 

(x)                                 upon the occurrence of any event contemplated by Section 3(a)(vi)(5) hereof, use their commercially reasonable efforts to prepare and file with the SEC a supplement or post-effective amendment to the applicable Exchange Offer Registration Statement or Shelf Registration Statement or the related Prospectus or any Free Writing Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered (or, to the extent permitted by law, made available) to purchasers of the Registrable Securities, such Prospectus or Free Writing Prospectus, as the case may be, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and the Company and the Guarantors shall notify the Participating Holders (in the case of a Shelf Registration Statement) and the Initial Purchasers and any Participating Broker-Dealers known to the Company (in the case of an Exchange Offer Registration Statement) to suspend use of the Prospectus or any Free Writing Prospectus as promptly as practicable after the occurrence of such an event, and such Participating Holders and such Participating Broker-Dealers, as applicable, hereby agree to suspend use of the Prospectus or any Free Writing Prospectus, as the case may be, until the Company and the Guarantors have amended or supplemented the Prospectus or the Free Writing Prospectus, as the case may be, to correct such misstatement or omission;

 

(xi)                              a reasonable time prior to the filing of any Registration Statement, any Prospectus, any Free Writing Prospectus, any amendment to a Registration Statement or amendment or supplement to a Prospectus or a Free Writing Prospectus or of any document that is to be incorporated by reference into a Registration Statement, a Prospectus or a Free Writing Prospectus after initial filing of a Registration Statement (except with respect to documents incorporated by reference therein containing only information regarding the Shelf Registration or the transactions contemplated thereby previously incorporated therein), provide copies of such document to the Initial Purchasers and their counsel (and in the case of a Shelf Registration Statement, to the Inspector (as defined below) and its representatives) and make such of the representatives of the Company and the Guarantors as shall be reasonably requested by the Initial Purchasers or their counsel (and in the case of a Shelf Registration Statement, the Inspector and its representatives) available for discussion of such document, provided, that all confidential information that is provided by the Company and the Guarantors shall be kept confidential by each such Person (except for disclosures to such Person’s affiliates and its and their respective employees, legal counsel and other experts or agents who need to know such information in connection with permitted uses thereof and are subject to comparable confidentiality obligations), unless disclosure thereof is required or requested under compulsion of law (whether by oral question, interrogatory, subpoena, civil investigative demand or otherwise), by order or act of any court or governmental or regulatory authority or body, or such information is or has become available to the public generally through the Company or any Guarantor or through a third party without an accompanying obligation of confidentiality owed by such Person to the Company or the Guarantors, or disclosure is made in connection with establishing a due diligence defense in any suit, action or proceeding for the purpose of defending itself, reducing its liability or protecting or exercising any of its rights, remedies or interests, or the Company consents to the non-confidential treatment of such information; and the Company and the Guarantors shall not, at any time after initial filing of a Registration

 

11

 

Statement, use or file any Prospectus, any Free Writing Prospectus, any amendment of or supplement to a Registration Statement or a Prospectus or a Free Writing Prospectus, or any document that is to be incorporated by reference into a Registration Statement, a Prospectus or a Free Writing Prospectus (except with respect to documents incorporated by reference therein containing only information regarding the Shelf Registration or the transactions contemplated thereby previously incorporated therein), of which the Initial Purchasers and their counsel (and, in the case of a Shelf Registration Statement, the Inspector or its representatives) shall not have previously been advised and furnished a copy or to which the Initial Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Inspector or its representatives) shall reasonably object;

 

(xii)         obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the case may be, not later than the initial effective date of a Registration Statement;

 

(xiii)                        cause the Indenture to be qualified under the Trust Indenture Act in connection with the registration of the Exchange Securities or Registrable Securities, as the case may be; cooperate with the Trustee and the Holders to effect such changes to the Indenture as may be required for the Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and execute, and use their commercially reasonable efforts to cause the Trustee to execute, all documents as may be required to effect such changes and all other forms and documents required to be filed with the SEC to enable the Indenture to be so qualified in a timely manner;

 

(xiv)                       in the case of a Shelf Registration, make available for inspection by a representative of the Participating Holders reasonably acceptable to the Company (an “Inspector”), any Underwriter participating in any disposition pursuant to such Shelf Registration Statement, any attorneys and accountants designated by the Inspector and any attorneys and accountants designated by such Underwriter, at reasonable times and in a reasonable manner, all pertinent financial and other records, documents and properties of the Company and its Subsidiaries, and cause the respective officers, directors and employees of the Company and the Guarantors to supply all information reasonably requested by any such Inspector, Underwriter, attorney or accountant in connection with a Shelf Registration Statement; provided that each Person receiving such information shall agree to take such actions as are reasonably necessary to protect the confidentiality of any material non-public information provided;

 

(xv)                          in the case of a Shelf Registration, if reasonably requested by any Participating Holder, promptly include in a Prospectus supplement or post-effective amendment such information with respect to such Participating Holder as such Participating Holder reasonably requests to be included therein and make all required filings of such Prospectus supplement or such post-effective amendment promptly after the Company has received notification of the matters to be so included in such filing;

 

(xvi)                       in the case of a Shelf Registration, enter into such customary agreements and take all such other actions (or use commercially reasonable efforts to cause such actions to be taken) in connection therewith (including those reasonably requested by the Holders of a majority in principal amount of the Registrable Securities covered by the

 

12

 

Shelf Registration Statement) in order to expedite or facilitate the disposition of such Registrable Securities including, but not limited to, an Underwritten Offering and in such connection, (1) to the extent possible, make such representations and warranties to the Participating Holders and any Underwriters of such Registrable Securities with respect to the business of the Company and its Subsidiaries and the Registration Statement, Prospectus, any Free Writing Prospectus and documents incorporated by reference or deemed incorporated by reference, if any, in each case, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings and confirm the same if and when requested, (2) obtain opinions of counsel to the Company and the Guarantors (which counsel and opinions, in form, scope and substance, shall be reasonably satisfactory to the Participating Holders and such Underwriters and their respective counsel) addressed to each Participating Holder and Underwriter of Registrable Securities, covering the matters customarily covered in opinions requested in underwritten offerings, (3) obtain “comfort” letters from the independent registered public accountants of the Company and the Guarantors (and, if necessary, any other registered public accountant of any subsidiary of the Company or any Guarantor, or of any business acquired by the Company or any Guarantor for which financial statements and financial data are or are required to be included in the Registration Statement) addressed to each Participating Holder (to the extent permitted by applicable professional standards) and Underwriter of Registrable Securities, such letters to be in customary form and covering matters of the type customarily covered in “comfort” letters in connection with underwritten offerings, including but not limited to financial information contained in any preliminary prospectus, Prospectus or Free Writing Prospectus, (4) obtain oil and gas reserve report letters from any independent petroleum engineering firms whose reports relating to the Company’s reserves have, prior to the date of such Shelf Registration, been previously publicly disclosed in a filing by the Company and are included or incorporated by reference in the Shelf Registration Statement and (5) deliver such documents and certificates as may be reasonably requested by the Holders of a majority in principal amount of the Registrable Securities being sold or the Underwriters, and which are customarily delivered in underwritten offerings, to evidence the continued validity of the representations and warranties of the Company and the Guarantors made pursuant to clause (1) above and to evidence compliance with any customary conditions contained in an underwriting agreement; and

 

(xvii)                    So long as any Registrable Securities remain outstanding, cause any subsidiary of the Company that becomes required to guarantee the Securities under the terms of the Indenture, to execute a counterpart to this Agreement in the form attached hereto as Annex A and to deliver such counterpart, together with an opinion of counsel as to the enforceability thereof against such entity, to the Initial Purchasers no later than five Business Days following the execution thereof.

 

(b)                                 In the case of a Shelf Registration Statement, the Company may require each Holder of Registrable Securities to furnish to the Company a Notice and Questionnaire and such other information regarding such Holder and the proposed disposition by such Holder of such Registrable Securities as the Company and the Guarantors may from time to time reasonably request in writing.

 

13

 

(c)                                  Each Participating Holder agrees that, upon receipt of any notice from the Company and the Guarantors of the happening of any event of the kind described in Section 3(a)(vi)(3) or Section 3(a)(vi)(5) hereof, such Participating Holder will forthwith discontinue disposition of Registrable Securities pursuant to the Shelf Registration Statement until such Participating Holder’s receipt of the copies of the supplemented or amended Prospectus and any Free Writing Prospectus contemplated by Section 3(a)(x) hereof and, if so directed by the Company and the Guarantors, such Participating Holder will deliver to the Company and the Guarantors all copies in its possession, other than permanent file copies then in such Participating Holder’s possession, of the Prospectus and any Free Writing Prospectus covering such Registrable Securities that is current at the time of receipt of such notice.

 

(d)                                 If the Company and the Guarantors shall give any notice to suspend the disposition of Registrable Securities pursuant to a Registration Statement, the Company and the Guarantors shall extend the period during which such Registration Statement shall be maintained effective pursuant to this Agreement by the number of days during the period from and including the date of the giving of such notice to and including the date when the Holders of such Registrable Securities shall have received copies of the supplemented or amended Prospectus or any Free Writing Prospectus necessary to resume such dispositions.  The Company and the Guarantors may give any such notice only twice during any 365-day period and any such suspensions shall not exceed 30 days for each suspension and there shall not be more than two suspensions in effect during any 365-day period.

 

(e)                                  The Participating Holders who desire to do so may sell such Registrable Securities in an Underwritten Offering if the aggregate principal amount of Registrable Securities to be sold in such Underwritten Offering is not less than $10 million.  In any such Underwritten Offering, the investment bank or investment banks and manager or managers (each an “Underwriter”) that will administer the offering will be selected by the Holders of a majority in principal amount of the Registrable Securities included in such offering and shall be reasonably acceptable to the Company.  No more than two Underwritten Offerings will be permitted in any 12-month period.

 

Section 4.                                           Participation of Broker-Dealers in Exchange Offer.  (a) The Staff has taken the position that any broker-dealer that receives Exchange Securities for its own account in the Exchange Offer in exchange for Securities that were acquired by such broker-dealer as a result of market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed to be an “underwriter” within the meaning of the Securities Act and must deliver a prospectus meeting the requirements of the Securities Act in connection with any resale of such Exchange Securities.

 

The Company and the Guarantors understand that it is the Staff’s position that if the Prospectus contained in the Exchange Offer Registration Statement includes a plan of distribution containing a statement to the above effect and the means by which Participating Broker-Dealers may resell the Exchange Securities, without naming the Participating Broker-Dealers or specifying the amount of Exchange Securities owned by them, such Prospectus may be delivered by Participating Broker-Dealers (or, to the extent permitted by law, made available to purchasers) to satisfy their prospectus delivery obligation under the Securities Act in connection with resales of Exchange Securities for their own accounts, so long as the Prospectus otherwise meets the requirements of the Securities Act.

 

14

 

(b)                                 In light of the above, and notwithstanding the other provisions of this Agreement, the Company and the Guarantors agree to amend or supplement the Prospectus contained in the Exchange Offer Registration Statement for a period of up to 180 days after the last Exchange Date (as such period may be extended pursuant to Section 3(d) hereof but subject to Section 2 hereof), in order to expedite or facilitate the disposition of any Exchange Securities by Participating Broker-Dealers consistent with the positions of the Staff recited in Section 4(a) above.  The Company and the Guarantors further agree that Participating Broker-Dealers shall be authorized to deliver such Prospectus (or, to the extent permitted by law,  make available) during such period in connection with the resales contemplated by this Section 4.

 

(c)                                  The Initial Purchasers shall have no liability to the Company, any Guarantor or any Holder with respect to any request that they may make pursuant to Section 4(b) hereof.

 

Section 5.                                           Indemnification and Contribution.  (a) The Company and each Guarantor, jointly and severally, agree to indemnify and hold harmless each Initial Purchaser and each Holder, their respective affiliates, directors and officers and each Person, if any, who controls any Initial Purchaser or any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are based upon, (1) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or any omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein not misleading, or (2) any untrue statement or alleged untrue statement of a material fact contained in any Prospectus, any Free Writing Prospectus or any “issuer information” (“Issuer Information”) filed or required to be filed by the Company pursuant to Rule 433(d) under the Securities Act, or any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to any Initial Purchaser or information relating to any Holder furnished to the Company in writing through J.P. Morgan, Credit Suisse or any selling Holder expressly for use therein.  In connection with any Underwritten Offering permitted by Section 3, the Company and the Guarantors, jointly and severally, will also indemnify the Underwriters, if any, selling brokers, dealers and similar securities industry professionals participating in the distribution, their respective affiliates and each Person who controls such Persons (within the meaning of the Securities Act and the Exchange Act) to the same extent as provided above with respect to the indemnification of the Holders, if requested in connection with any Registration Statement, any Prospectus, any Free Writing Prospectus or any Issuer Information.

 

(b)                                 Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company, the Guarantors, the Initial Purchasers and the other selling Holders, the directors of the Company and the Guarantors, each officer of the Company and the Guarantors who signed the Registration Statement and each Person, if any, who controls the Company, the Guarantors, any Initial Purchaser and any other selling Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that arise 

 

15

 

out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to such Holder furnished to the Company in writing by such Holder expressly for use in any Registration Statement, any Prospectus and any Free Writing Prospectus.

 

(c)                                  If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any Person in respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified Person”) shall promptly notify the Person against whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have under paragraph (a) or (b) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided, further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise than under paragraph (a) or (b) above.  If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others entitled to indemnification pursuant to this Section 5 that the Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such proceeding and shall pay the fees and expenses of such counsel related to such proceeding, as incurred.  In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them.  It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be reimbursed as they are incurred.  Any such separate firm (x) for any Initial Purchaser, its affiliates, directors and officers and any control Persons of such Initial Purchaser shall be designated in writing by J.P.  Morgan and Credit Suisse, (y) for any Holder, its directors and officers and any control Persons of such Holder shall be designated in writing by the Majority Holders and (z) in all other cases shall be designated in writing by the Company.  The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or judgment.  No Indemnifying Person shall, without the written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (A) includes an unconditional release of such Indemnified Person from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as 

 

16

 

to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.

 

(d)                                 If the indemnification provided for in paragraphs  (a) and (b) above is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors from the offering of the Securities and the Exchange Securities, on the one hand, and by the Holders from receiving Securities or Exchange Securities registered under the Securities Act, on the other hand, or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) but also the relative fault of the Company and the Guarantors on the one hand and the Holders on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations.  The relative fault of the Company and the Guarantors on the one hand and the Holders on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and the Guarantors or by the Holders and the parties’ relative intent, knowledge,  access to information and opportunity to correct or prevent such statement or omission.

 

(e)                                  The Company, the Guarantors and the Holders agree that it would not be just and equitable if contribution pursuant to this  Section 5 were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in paragraph (d) above.  The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such Indemnified Person in connection with any such action or claim.  Notwithstanding the provisions of this  Section 5, in no event shall a Holder be required to contribute any amount in excess of the amount by which the total price at which the Securities or Exchange Securities sold by such Holder exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  The Holders’ obligations to contribute pursuant to this  Section 5 are several and not joint.

 

(f)                                   The remedies provided for in this  Section 5 are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

 

(g)                                  The indemnity and contribution provisions contained in this  Section 5 shall remain operative and in full force and effect regardless of any termination of this Agreement, (ii) any investigation made by or on behalf of the Initial Purchasers or any Holder or any Person controlling any Initial Purchaser or any Holder, or by or on behalf of the Company or the Guarantors or the officers or directors of or any Person controlling the Company or the 

 

17

 

Guarantors, (iii) acceptance of any of the Exchange Securities and (iv) any sale of Registrable Securities pursuant to a Shelf Registration Statement.

 

Section 6.                                           General.

 

(a)                                 No Inconsistent Agreements.  The Company and the Guarantors represent, warrant and agree that (i) the rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of any other outstanding securities issued or guaranteed by the Company or any Guarantor under any other agreement and (ii) neither the Company nor any Guarantor has entered into, or on or after the date of this Agreement will enter into, any agreement that is inconsistent with the rights granted to the Holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof.

 

(b)                                 Amendments and Waivers.  The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless the Company and the Guarantors have obtained the written consent of Holders of at least a majority in aggregate principal amount of the outstanding Registrable Securities affected by such amendment, modification, supplement, waiver or consent; provided that no amendment, modification, supplement, waiver or consent to any departure from the provisions of Section 5 hereof shall be effective as against any Holder of Registrable Securities unless consented to in writing by such Holder.  Any amendments, modifications, supplements, waivers or consents pursuant to this Section 6(b) shall be by a writing executed by each of the parties hereto.

 

(c)                                  Notices.  All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, registered first-class mail, telex, telecopier, or any courier guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such Holder to the Company by means of a notice given in accordance with the provisions of this Section 6(c), which address initially is, with respect to the Initial Purchasers, the address set forth in the Purchase Agreement; (ii) if to the Company and the Guarantors, initially at the Company’s address set forth in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(c); and (iii) to such other persons at their respective addresses as provided in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(c).  All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged, if telecopied; and on the next Business Day if timely delivered to an air courier guaranteeing overnight delivery.  Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee, at the address specified in the Indenture to the extent required by the Indenture or applicable law.

 

(d)                                 Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors, assigns and transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders; provided that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms of the Purchase Agreement or the Indenture.  If 

 

18

 

any transferee of any Holder shall acquire Registrable Securities in any manner, whether by operation of law or otherwise, such Registrable Securities shall be held subject to all the terms of this Agreement, and by taking and holding such Registrable Securities such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement and such Person shall be entitled to receive the benefits hereof.  The Initial Purchasers (in their capacity as Initial Purchasers) shall have no liability or obligation to the Company or the Guarantors with respect to any failure by a Holder to comply with, or any breach by any Holder of, any of the obligations of such Holder under this Agreement.

 

(e)                                  Third Party Beneficiaries.  Each Holder shall be a third party beneficiary to the agreements made hereunder between the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or advisable to protect its rights hereunder.

 

(f)                                   Counterparts.  This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

(g)                                  Headings.  The headings in this Agreement are for convenience of reference only, are not a part of this Agreement and shall not limit or otherwise affect the meaning hereof.

 

(h)                                 Governing Law.  This Agreement, and any claim, controversy or dispute arising under or related to this Agreement, shall be governed by and construed in accordance with the laws of the State of New York.

 

(i)                                     Compliance with USA Patriot Act.  In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Initial Purchasers are required to obtain, verify and record information that identifies their respective clients, including the Company, which information may include the name and address of their respective clients, as well as other information that will allow the Initial Purchasers to properly identify their respective clients.

 

(j)                                    Entire Agreement; Severability.  This Agreement contains the entire agreement between the parties relating to the subject matter hereof and supersedes all oral statements and prior writings with respect thereto.  If any term, provision, covenant or restriction contained in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable or against public policy, the remainder of the terms, provisions, covenants and restrictions contained herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated.  The Company, the Guarantors and the Initial Purchasers shall endeavor in good faith negotiations to replace the invalid, void or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, void or unenforceable provisions.

 

[Signature Page to Follow.]

 

19

 

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

 

	
 
    	
SRC ENERGY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ James P. Henderson
    
	
 
    	
 
    	
Name: James P. Henderson
    
	
 
    	
 
    	
Title:   Chief Financial Officer
    

 

[Signature Page to Registration Rights Agreement]

 

 

Confirmed and accepted as of the date first above written, each for itself and on behalf of the several Initial Purchasers:

 

	
J.P. MORGAN SECURITIES LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Carly Roddy
    	
 
    
	
 
    	
Name: Carly Roddy
    
	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
CREDIT SUISSE SECURITIES (USA)   LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Ricardo Concha
    	
 
    
	
 
    	
Name: Ricardo Concha
    	
 
    
	
 
    	
Title:   Director
    	
 
    
				

 

[Signature Page to Registration Rights Agreement]

 

 

Annex A

 

Counterpart to Registration Rights Agreement

 

The undersigned hereby absolutely, unconditionally and irrevocably agrees as a Guarantor (as defined in the Registration Rights Agreement, dated November 29, 2017 among SRC Energy Inc., a Colorado corporation, and J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC, each on behalf of itself and the other Initial Purchasers) to be bound by the terms and provisions of such Registration Rights Agreement.

 

IN WITNESS WHEREOF, the undersigned has executed this counterpart as of              ; 20      .

 

	
 
    	
[GUARANTOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:EX-4.4

 Exhibit 4.4 
  

 
 Anheuser-Busch InBev SA/NV 

Gap Long-Term Incentive Plan for SABMiller Employees 

Relating to Shares of Anheuser-Busch InBev 

December 2016 
 Participants’ Guide

 THE “INTRODUCTION” SECTION OF THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. 

 Anheuser-Busch InBev Long-Term Incentive Plan 

for SABMiller employees 
 relating to Shares
of Anheuser-Busch InBev 
 Introduction 

You will find in this section a general description of the Anheuser-Busch InBev Long-Term Incentive Plan for SABMiller employees (relating to Shares of
Anheuser-Busch InBev) (the “Plan”) presented in the form of frequently asked questions (FAQs). This description of the Plan is very general and does not purport to be complete. 

The Plan is intended to provide certain employees of SABMiller and its subsidiaries, as determined by Anheuser-Busch InBev (“Eligible
Employees”) ordinary shares of Anheuser-Busch InBev, which are traded on Euronext Brussels (with a secondary listing on the Mexico and South Africa stock exchanges) (the “Shares”), and to further align the interests of
the Eligible Employees with those of Anheuser-Busch InBev. 
 The Plan is subject to the Belgian legal and regulatory provisions that govern stock
option grant plans. The Plan is not regarded, in the United States, as a qualified plan under Section 401(a) of the US Internal Revenue Code of 1986 (the “Code”). Further, the Plan is not subject to any of the provisions of the
US Employee Retirement Income Security Act of 1974. 
 The contents of this section are for information purposes only. In any case of discrepancy
between the contents of this section and the terms and conditions of the Plan, the provisions of the terms and conditions of the Plan (“Terms and Conditions”) will prevail. Terms beginning with a capital letter have the meaning
ascribed to them in the Terms and Conditions. 
  

	•	 	 How is the Plan administered? 

The Plan is administered by the Board of Directors of Anheuser-Busch InBev (the “Board of Directors”), but the
Board of Directors may delegate part or all powers under the Plan to the Remuneration Committee of Anheuser-Busch InBev (the “Committee”). In such a case, the Committee is responsible for the general administration of the Plan in
accordance with the Plan rules, under the supervision of the Board of Directors; the Committee is also authorised to establish rules for the administration, interpretation and application of the Plan. The Board of Directors and the Committee may sub-delegate certain powers to any third party they deem appropriate. 
 The Board of Directors is
currently composed of three independent directors, nine members appointed by the Stichting Anheuser-Busch InBev (a foundation organised under the laws of the Netherlands, which represents an important part of the interests of the controlling
shareholder group of Anheuser-Busch InBev) and three members appointed by the restricted shareholders in accordance with the terms of Anheuser-Busch InBev’s articles of association. The Board of Directors appoints the members of the Committee
from amongst its members. 
 The Board of Directors may unilaterally modify the practical and/or accessory terms of the Plan at any
time. The Board of Directors may also unilaterally modify the Terms and 

  
  

2 

 
Conditions of the Plan when such modifications are required to comply with any change in legislation. In addition, the Board of Directors may unilaterally modify the Terms and Conditions of the
Plan in any and all other circumstances, provided that such modifications do not adversely affect the rights of the Participants in respect of Options that were granted prior to such modifications. However, shareholders’ approval of any
amendment will be obtained to the extent necessary to comply with Section 422 of the Code (relating to Incentive Stock Options) or any other applicable law, regulation or stock exchange listing requirements. 

If you would like more information about the Plan or its administrators, please contact your local People Director. For US Participants,
please contact Martin Fidalgo at AB InBev Services LLC, 250 Park Avenue, 10123 New York, (212)573-4388. 
  

	•	 	 Who may participate in the Plan? 

The Plan rules allow the Committee to select any employees of SABMiller and its subsidiaries (at the time of the business combination
with Anheuser-Busch InBev SA/NV) in its sole discretion as “Eligible Employees” to whom Options may be offered. All such employees who have been informed by their local People Department that they are “Eligible Employees” qualify
to participate in the Plan. 
  

	•	 	 What securities are offered under the Plan? 

The number of Options to be granted under the Plan between 15 December 2016 and 15 December 2017 shall not exceed
1,750,000. The underlying Shares may be issued Shares held in Anheuser-Busch InBev’s treasury or acquired by Anheuser-Busch InBev for the purpose of the Plan. The Shares may be in dematerialized or registered form, as determined by
Anheuser-Busch InBev. 
  

	•	 	 What do I have to do to participate in the Plan? 

There are three main steps in the participation process: 
  

	 	(i)	 you receive from Anheuser-Busch InBev an Offer Letter, which can be in electronic form, informing you that you are an
Eligible Employee. This letter also indicates the number of Options offered to you by Anheuser-Busch InBev and their Exercise Price; 

  

	 	(ii)	 you decide whether or not you wish to participate in the Plan – you have three choices: (i) you accept all the
Options, (ii) you accept only part of the Options or (iii) you refuse all the Options; 

  

	 	(iii)	 once you have made your choice, you should complete and return/submit your Acceptance Form (which can, in certain
situations, be an on-line form to be completed directly on the Anheuser-Busch InBev intranet or on the secured LTI Website mentioned in the Offer Letter) in accordance with the instructions contained in the
Offer Letter. 

  

	•	 	 Will I have to pay something to participate in the Plan? 

You do not have to pay anything to Anheuser-Busch InBev to participate in the Plan. Anheuser-Busch InBev will bear the costs related to
the set-up of the Plan. However, Participants have to pay the Exercise Price when they decide to exercise the Options. 

Participating in the Plan may result in the obligation for you to pay local taxes and social security contributions in accordance with
applicable tax and social security legislation. 

  
  

3 

 In addition, any costs you incur for the financing of the exercise of your Options (if
applicable) will have to be borne by you. Similarly, any costs, fees and taxes and social security contributions that may arise upon the exercise of your Options and subsequent sale of Shares you have purchased from Anheuser-Busch InBev will have to
be borne by you. 
  

	•	 	 What will the Option exercise price be? 

The Exercise Price of the Options is the one indicated in your Offer Letter. 

 

	•	 	 Do I need to open a securities account to participate in the Plan? 

Participating in the Plan does not require that you open a securities account in your home country or in Belgium. Your Options will be
recorded in a register in electronic form maintained by Anheuser-Busch InBev (or by a third party appointed by Anheuser-Busch InBev to that effect). 

When you exercise your Options, if you receive Shares in registered form, you do not need to have a securities account and ownership will
be evidenced through registration in the electronic shareholders’ register of Anheuser-Busch InBev. However, if the Shares are delivered to you in book-entry form, you will need to have a securities account to which the Shares can be
transferred. 
  

	•	 	 How can I get information on my portfolio of Options? 

You can have access to your portfolio of Options through the secured LTI Website mentioned in the Offer Letter (or any successor website
thereof). 
 All transactions on your Options (e.g. exercise) will be carried out electronically from the LTI Website. 

 

	•	 	 When can I exercise my Options? 

You can exercise your Options on any Trading Day during the Exercise Period set forth in your Offer Letter except as otherwise provided
in the Terms and Conditions. 
 You can, of course, never exercise your Options during a Closed Period (as defined in Anheuser-Busch
InBev’s Code of Dealing) or in breach of any prohibition of insider dealing applying to you. 
  

	•	 	 How can I exercise my Options? 

The exercise of your Options is in principle fully electronic (no paper exercise) and is managed through the LTI Website. All you need to
do to exercise your Options is to log on to the LTI Website and follow the instructions. 
 The methods of exercise are the following:

  

	 	(i)	 Regular exercise 

Under a regular exercise, you pay the Exercise Price to Anheuser-Busch InBev in cash and you subsequently receive the corresponding
Shares from Anheuser-Busch InBev. 
 The Exercise Price of your Options must be paid to Anheuser-Busch InBev in euros, which is the
official currency in Belgium and the currency of your Options. Your Exercise Price in euros must reach the bank account of Anheuser-Busch InBev in Belgium within 10 Banking Days from the date of exercise. If you pay your

  
  

4 

 
Exercise Price from a bank account which is not denominated in euros, please make sure that you give the right instructions to your bank so that a net amount in euros that is equal to your
Exercise Price effectively reaches the bank account of Anheuser-Busch InBev in due time. All costs related to the transfer of your Exercise Price to Anheuser-Busch InBev in Belgium (e.g. foreign exchange commission or international bank transfer
fees) will have to be borne by you. 
 The Shares you have purchased from Anheuser-Busch InBev under a regular exercise will then be
delivered to you in book-entry form on your securities account or in registered form through a registration in the electronic shareholders’ register of Anheuser-Busch InBev. 

 

	 	(ii)	 Cashless exercise 

In Anheuser-Busch InBev’s sole discretion, it may also set up a mechanism whereby you may finance the exercise of your Options
through a cashless exercise. 
 Under a cashless exercise, the Shares you have purchased will be sold on the market and a portion of
the sale price equivalent to your Exercise Price will be transferred to Anheuser-Busch InBev for payment of the Exercise Price of your Options. The rest of the sale price less any brokerage costs and other fees (in other words, your net gain) will
be paid to you in euros (or in US dollars after conversion of the amount in euros into US dollars) either directly or through your employer, who will withhold, to the extent required, any applicable local taxes and social security contributions. If
payments go through your employer, payments may be made on the same schedule as payroll payments and therefore may occur after a reasonable delay, without accruing any interest. 

 

	•	 	 What happens if I do not exercise my Options? 

Once your Options have become exercisable, you may exercise your Options at any time up to and including the last day of the Exercise
Period. However, your Options may not, in any circumstances, be exercised during any Closed Period (as defined in Anheuser-Busch InBev’s Code of Dealing) or in breach of any applicable laws prohibiting insider dealing. Once the Exercise Period
is over, if not yet exercised, all of your Options will lapse and you will no longer have any rights in respect of the Options. 
  

	•	 	 What happens to my Options and Shares if I leave Anheuser-Busch InBev? 

Depending on the circumstances of your departure, your Options either may become null and void or may survive your departure. A departure
from SABMiller, Anheuser-Busch InBev or any of their subsidiaries may also affect the period during which you may exercise your Options. 

Leaving SABMiller, Anheuser-Busch InBev or any of their subsidiaries (for whatever reason) will have no impact on the Shares you have
purchased from Anheuser-Busch InBev pursuant to the exercise of your Options. 

  
  

5 

 If your employment terminates due to Dismissal (other than Dismissal for Serious
Cause), Retirement or Redundancy, following injury, ill-health or disability or due to Outsourcing or Divestiture: 
  

	 	(i)	 all Options that were not exercisable on the date of the end of employment will be treated as follows:

  

	 	(a)	 a pro-rata portion of your Options will become immediately and unconditionally
exercisable until the expiry of a 12-month period starting on the day following the date of the end of employment; 

  

	 	(b)	 the remaining Options will be automatically void; 

 

	 	(ii)	 all Options that were exercisable on the date of the end of employment may be exercised until the expiry of a 12-month period starting on the day following the date of the end of employment. 

If your employment terminates due to Resignation or Dismissal for Serious Cause, all Options, whether or not exercisable on
the date of the end of employment, will be automatically void (except to the extent that Options were exercised before the date of the end of employment in accordance with the Terms and Conditions). 

If your employment terminates due to your death, your Options that were not exercisable at that time will
become immediately exercisable and, together with all Options that are exercisable at that time, will remain exercisable until the expiry of a 12-month period starting on the day following your death. 

 

	•	 	 Can I transfer my stock options? 

Your Options may not be transferred or encumbered or otherwise pass to any third party. 

 

	•	 	 What rights and obligations attach to Anheuser-Busch InBev Shares? 

Upon exercise, your Anheuser-Busch InBev Shares will entitle you to all the rights and benefits generally attached to the ordinary
shares. Anheuser-Busch InBev will, at its discretion, deliver Shares in dematerialised form or in registered form. The Shares acquired upon exercise of Options give rights to the dividends paid on such Shares after the date of exercise. 

Your Anheuser-Busch InBev Shares acquired upon exercise of Options are not subject to any transfer restrictions under the rules of the
Plan. 
  

	•	 	 What does it mean to participate in the Plan? 

Participation in, and the operation of, the Plan will not form part of or affect your contract of employment or your employment
relationship, nor will they give you the right to continued employment. Participation in one grant of Options under the Plan does not indicate that you will participate, or be considered for participation, in any later grants. You are not entitled
to any compensation or other benefit in respect of the Plan. 
 You should understand that the value of Anheuser-Busch InBev Shares can
go down as well as up and that past performance of Anheuser-Busch InBev Shares is no indication of actual future performance. 

  
  

6 

	•	 	 Incorporation of certain documents by reference 

Anheuser-Busch InBev will file a Registration Statement on Form S-8 with the US Securities and
Exchange Commission (the “SEC”) covering the ordinary shares to be delivered pursuant to the Options. 
 The SEC
allows us to “incorporate by reference” the information filed with it, which means that we can disclose important information to you by referring you to those documents. The information incorporated by reference is an important part of
this prospectus. Information that we file later with the SEC will automatically update and supersede information pertaining to the same subject in this prospectus or in earlier filings with the SEC. We incorporate by reference into this prospectus:

  

	 	(i)	 Anheuser-Busch InBev’s Annual Report on Form 20-F (File No. 001-34455) filed in the US with the SEC on 14 March 2016; and 

  

	 	(ii)	 all documents filed by Anheuser-Busch InBev in the US under Sections 13(a) or 15(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”) since 31 December 2015. 

 To the extent designated
therein, certain current reports of Anheuser-Busch InBev in the US on Form 6-K, and all documents filed by Anheuser-Busch InBev in the US under Section 13(a), 13(c), 14 or 15(d) of the Exchange Act after
the date of this prospectus, but prior to the filing of a post-effective amendment which indicates that all securities offered hereby have been sold or which deregisters all securities then remaining unsold, will be deemed to be incorporated by
reference in this prospectus and to be part of this prospectus from the date of filing of such documents. 
  

	•	 	 How can I obtain additional information? 

You may receive copies of the documents described above and any of the documents that we are required to deliver to employees pursuant to
Rule 428(b) of the Securities Act free of charge by submitting a request to your local People Director. Some of these documents are also available for viewing in the Investor section of our website at
www.ab-inbev.com. 

  
  

7 

 Terms and Conditions 
  

	1	 Definitions 

When used in this document, the following terms shall have the meaning ascribed to them as indicated below, unless expressly indicated
otherwise: 
  

			
	Acceptance Form	  	 the form whereby an Eligible Employee accepts all or part of the Options or refuses the Options, to be completed by the Eligible
Employee in paper format and/or in electronic format on the LTI Website or on the Anheuser-Busch InBev intranet, as indicated in the Offer Letter;

		
	Anheuser-Busch InBev	  	 Anheuser-Busch InBev SA/NV, with its registered office at Grand Place 1, B-1000 Brussels,
Belgium;

		
	Anheuser-Busch InBev Group	  	 Anheuser-Busch InBev and its subsidiaries;

		
	Banking Day	  	 any day other than a Saturday, a Sunday or a public holiday in Belgium and in the United States, on which banks in Belgium and
in the United States are open for business;

		
	Board of Directors	  	 the board of directors of Anheuser-Busch InBev;

		
	Code	  	 the US Internal Revenue Code of 1986, as amended;

		
	Code of Dealing	  	 the Anheuser-Busch InBev Code of Dealing, as amended from time to time;

		
	Closed Period	  	 any period defined as such in the Code of Dealing;

		
	Committee	  	 the Remuneration Committee of Anheuser-Busch InBev;

		
	Data Controller	  	 shall have the meaning ascribed to it in Section 20.1 of these Terms and Conditions;

		
	Data Processor	  	 shall have the meaning ascribed to it in Section 20.4 of these Terms and Conditions;

		
	Dismissal	  	 termination of employment by SABMiller, Anheuser-Busch InBev or any of their subsidiaries, excluding any termination of
employment due to a transfer within the Anheuser-Busch InBev Group.

		
	Dismissal for Serious Cause    	  	 termination of employment for serious cause (as defined in relevant local law or, if no such definition exists, as determined by the
Chief People Officer – or any other person designated by the Chief People Officer – in his sole discretion) by SABMiller, Anheuser-Busch InBev or any of their
subsidiaries;

  
  

8 

			
	Divestiture	  	 a situation whereby the Participant’s employer is no longer a subsidiary of Anheuser-Busch InBev following a divestiture through
the sale of shares in the said Anheuser-Busch InBev subsidiary or otherwise;

		
	Eligible Employee	  	 an employee of SABMiller or its subsidiaries (at the time of the business combination with Anheuser-Busch InBev) who received an
Offer Letter;

		
	Exchange Act	  	 the Securities Exchange Act of 1934, as amended;

		
	Exercise Form	  	 the form whereby a Participant notifies Anheuser-Busch InBev or any third party designated by Anheuser-Busch InBev to that effect of
his/her decision to exercise all or part of his/her Options in accordance with Section 7.4, to be completed by the Participant in paper format and/or in electronic format on the LTI Website, as the case may be;

		
	Exercise Period	  	 the period defined as such in the Offer Letter;

		
	Exercise Price	  	 the price per Option that a Participant must pay for the exercise of his/her Options, as set out in the Offer Letter;

		
	Expiry Date	  	 the last day of the Exercise Period;

		
	Fair Market Value	  	 on a particular date shall be (i) the opening sale price per Share during normal trading hours on the national securities
exchange on which the Share is principally traded for such date or the closing sale price per Share on the last preceding date on which there was a sale of such Share on such exchange, (ii) if the Shares are then traded in an over-the-counter market, the average of the closing bid and asked prices for the Shares during normal trading hours in such over-the-counter market for such date or the last preceding date on which there was a sale of such Shares in such market, or (iii) if the Shares are not then listed on a national securities exchange or
traded in an over-the-counter market, such value as the Committee, in its sole discretion, shall determine;

		
	Incentive Stock Option (“ISO”)	  	 an Option that is intended to qualify for special federal income tax treatment pursuant to Sections 421 and 422 of the Code (or a
successor provision thereof) and which is so designated in the applicable Offer Letter. Under no circumstances shall any Option that is not specifically designated as an Incentive Stock Option be considered an Incentive Stock Option;

		
	Leave of Absence	  	 a leave of absence authorised by the Participant’s employer for any reason;

		
	LTI Website	  	 the secured internet website referred to in the Offer

  
  

9 

			
		  	 Letter (and any successor thereof) through which a Participant can accept/refuse the Options offered to him/her, monitor his/her
portfolio of Options and exercise his/her Options;

		
	Non-Qualified Stock Option (“NQSO”)	  	 an Option that is not designated in the applicable Offer Letter as an Incentive Stock Option and is not intended to qualify for
special federal income tax treatment;

		
	Offer Date	  	 the date of the Offer Letter;

		
	Offer Letter	  	 the notification, in paper format (letter) and/or in electronic format (e-mail), as
determined by Anheuser-Busch InBev, whereby Anheuser-Busch InBev offers Options to an Eligible Employee;

		
	Offer Period	  	 the period defined as such in the Offer Letter;

		
	Option	  	 the right to purchase from Anheuser-Busch InBev one existing Share in accordance with these Terms and Conditions, which has been
offered to an Eligible Employee and which has been accepted by the Eligible Employee through the sending of an Acceptance Form to Anheuser-Busch InBev in due time;

		
	Outsourcing	  	 a situation whereby (i) a Participant is dismissed by SABMiller, Anheuser-Busch InBev or any of their subsidiaries in the
framework of a collective dismissal (in the meaning of and as defined under applicable local law according to the jurisdiction of the Participant) and is re-employed, together with the other persons who have
been likewise dismissed, by a third-party company which is not an affiliate of Anheuser-Busch InBev and which provides services to Anheuser-Busch InBev; or (ii) a Participant is transferred by SABMiller, Anheuser-Busch InBev or any of their
subsidiaries in the framework of applicable local law, implementing the European Union Council Directive 2001/23/EC of 12 March 2001 or its equivalent in the jurisdiction of the Participant, to a third-party company which is not an affiliate of
Anheuser-Busch InBev and which provides services to Anheuser-Busch InBev;

		
	Participant	  	 any Eligible Employee who has completed and returned an Acceptance Form in accordance with Section 5.2 and who has accepted all
or part of the Options, or any Successor to whom Options have been transferred in accordance with these Terms and Conditions;

		
	Personal Data	  	 shall have the meaning ascribed to it in Section 20.2 of these Terms and Conditions;

		
	Plan	  	 the Anheuser-Busch InBev Long-Term Incentive Plan;

  
  

10 

 
					
			
	Pro-Rata Formula	  	 PRO =
	 	 HO×M

		  	 	     36

		  	 where:
	 	
			
		  	 PRO
	 	 means the number of Options that will remain in full force and effect following the termination of employment, rounded to the closest
whole number

			
		  	 HO
	 	 means the number of Options held by the Participant immediately prior to the termination of employment

			
		  	 M
	 	 means the number of full calendar months of employment of the Participant within the Anheuser-Busch InBev Group during the period
from 1 December 2016 until the date of termination of employment;

		
	Redundancy	  	 as defined under the law governing the employment of the Participant;

		
	Resignation	  	 termination of employment by a Participant with SABMiller, Anheuser-Busch InBev or any of their subsidiaries, excluding
any termination of employment due to a transfer within the Anheuser-Busch InBev Group;

		
	Retirement	  	 as defined under the law governing the employment of the Participant;

		
	SABMiller	  	 SABMiller Limited, with its registered office at AB InBev House, Church Street West, Woking, Surrey, GU21 6HS,
United Kingdom;

		
	SEC	  	 the US Securities and Exchange Commission;

		
	Share	  	 an ordinary share of Anheuser-Busch InBev (ISIN: BE0974293251);

		
	Shareholders’ Meeting	  	 the shareholders’ meeting of Anheuser-Busch InBev;

		
	Successor	  	 the successor of a Participant as determined under the applicable law of succession and/or the persons designated by a
Participant, in accordance with the applicable law of succession, to inherit the rights of the Participant under the Plan after the death of the Participant;

		
	Trading Day	  	 any day on which the regulated market of Euronext Brussels and the New York Stock Exchange are open for
trading.

  
  

11 

	2	 Approval of the Plan Documentation 

The Plan forms part of an agreement between the Participant and Anheuser-Busch InBev. By returning to Anheuser-Busch InBev a duly
completed Acceptance Form in accordance with Section 5.2, the Participant unconditionally agrees to be bound by these Terms and Conditions. 
  

	3	 Persons Eligible for Options 

Options under the Plan, including Incentive Stock Options, may be offered to such Eligible Employees as the Committee shall select in its
sole discretion. 
  

	4	 Shares Available for Options 

The number of Options to be granted under the Plan between 15 December 2016 and 15 December 2017 shall not exceed
1,750,000. The underlying Shares may be issued Shares held in Anheuser-Busch InBev’s treasury or acquired by Anheuser-Busch InBev for the purposes of the Plan. Any Shares delivered by Anheuser-Busch InBev, any Shares with respect to which
Options are granted by Anheuser-Busch InBev and any Shares with respect to which Anheuser-Busch InBev becomes obliged to grant as Options, through the assumption of, or in substitution for, outstanding options previously granted by an acquired
entity, shall not be counted against the Shares available for Options under this Plan. 
  

	5	 Acceptance of the Options 

 

	5.1	 Full or partial acceptance 

An Eligible Employee to whom Options are offered has the possibility of accepting only part of them. To that effect, the Eligible
Employee shall mention in the Acceptance Form the exact number of accepted Options. If an Eligible Employee accepts only part of the Options, he/she shall be deemed to have refused the other Options offered to him/her. 

 

	5.2	 Mode of acceptance 

  

	 	5.2.1	 General 

The mode of acceptance of the Options is set out in the Offer Letter and, at the choice of Anheuser-Busch InBev, takes the form of an
electronic acceptance or of a paper-form acceptance. 
  

	 	5.2.2	 Electronic acceptance 

In the case of acceptance of the Options in electronic form, the Eligible Employee must confirm and submit his/her choice through the
LTI Website or the Anheuser-Busch InBev intranet, as specified in the Eligible Employee’s Offer Letter. 
 The Acceptance Form
must be completed online and submitted during the Offer Period and, to the extent applicable, after having accepted the terms of use of the LTI Website. 

If the LTI Website or the Anheuser-Busch InBev intranet, as the case may be, is not accessible (for technical reasons or otherwise)
during the Offer Period, the Eligible Employee must ask his/her local People Department for an Acceptance Form in paper format and return it to Anheuser-Busch InBev in accordance with Section 5.2.3 below. 

  
  

12 

 Failure to complete and submit the Acceptance Form as set out above will be deemed to
constitute a refusal by the Eligible Employee of all Options offered to him/her. 
  

	 	5.2.3	 Paper-form acceptance 

In the case of acceptance of the Options in paper form, the Eligible Employee must complete, date and sign the Acceptance Form attached
to the Offer Letter and return it to the address indicated on it. The completed Acceptance Form must reach Anheuser-Busch InBev, or any third party designated by it to that effect, during the Offer Period. 

Failure to return the completed, dated and signed Acceptance Form as set out above will be deemed to constitute a refusal by the
Eligible Employee of all Options offered to him/her. 
  

	6	 Transferability 

Except for transfers as a result of death (see Section 8.2 below), Options may not be transferred or encumbered with any security,
pledge or other right, or otherwise pass to any third party. 
  

	7	 Exercise of the Options 

 

	7.1	 Exercise Price 

The Exercise Price of the Options is specified in the Offer Letter and will not be less than 100% (or 110%, in the case of ISOs granted
to an individual described in Section 422(b)(6) of the Code (relating to certain 10% owners)) of the Fair Market Value of a Share on the date of grant. 
  

	7.2	 Exercise Period 

Subject to Sections 7.3 and 8, the Options may be exercised only during the Exercise Period. The Options that are not exercised within
the Exercise Period automatically expire and become null and void. 
  

	7.3	 Exercise limitations 

The Options may not, in any circumstances, be exercised during a Closed Period or in breach of the Code of Dealing or any applicable laws
prohibiting insider dealing. 
  

	7.4	 Terms of exercise 

  

	 	7.4.1	 General 

  

	 	(i)	 An Option will be deemed exercised upon receipt by Anheuser-Busch InBev, or any other person designated to that effect
by Anheuser-Busch InBev, at any time during the Exercise Period (but not later than 11.59 p.m. Brussels time on the Expiry Date) of the following: 

  

	 	(a)	 a duly completed Exercise Form explicitly mentioning the number of Options being exercised by the Participant; and

  

	 	(b)	 any other statements and documents that the Chairman of the Board of Directors, the Committee or any other person
designated to that 

  
  

13 

	 	 
effect by the Committee deems necessary or desirable in order to comply with all applicable legal and regulatory provisions. 

 

	 	(ii)	 The exercise of the Options will be processed by Anheuser-Busch InBev, or by any person or entity designated for this
purpose by Anheuser-Busch InBev, as soon as administratively and/or legally possible. 

  

	 	7.4.2	 Regular exercise 

  

	 	(i)	 Full payment of the Exercise Price (as well as related costs, taxes and duties, if any) must reach Anheuser-Busch InBev
at the latest 10 Banking Days after the date of exercise, in the manner indicated on the Exercise Form and/or the LTI Website. Transfer of ownership of the Shares will occur following receipt by Anheuser-Busch InBev of the Exercise Price (as well as
related costs, taxes and duties, if any). 

  

	 	(ii)	 If the Participant fails to pay the Exercise Price within the timeframe provided in Section 7.4.2(i),
Anheuser-Busch InBev will, at its sole discretion, be authorized to cancel the exercise of the Options. 

  

	 	7.4.3	 Cashless exercise 

  

	 	(i)	 Anheuser-Busch InBev may, at its sole discretion, set up a mechanism of cashless exercise whereby a Participant may
elect to simultaneously exercise Options and sell the Shares underlying the exercised Options. In that case, the Exercise Price will be paid to Anheuser-Busch InBev from the proceeds of the sale of the Shares, in accordance with
Section 7.4.3(iii). 

  

	 	(ii)	 By opting for a cashless exercise, the Participant irrevocably: 

 

	 	(a)	 where relevant, instructs Anheuser-Busch InBev to appoint a financial intermediary to sell the Shares underlying the
exercised Options on the market; and 

  

	 	(b)	 instructs Anheuser-Busch InBev to: (i) deliver, on the Participant’s behalf, the Shares underlying the
exercised Options to such financial intermediary for their sale on the market; and (ii) collect from that financial intermediary the proceeds of the sale of those Shares. 

 

	 	(iii)	 Following the delivery of the Shares by Anheuser-Busch InBev to the financial intermediary, the obligation of
Anheuser-Busch InBev to deliver Shares (or the sale proceeds thereof) to the Participant will be set off against the obligation of the Participant to pay the Exercise Price to Anheuser-Busch InBev. Any amount in excess of the Exercise Price
collected by Anheuser-Busch InBev, after payment of all applicable costs, fees and taxes due by the Participant as a result of the cashless exercise will be transferred to the Participant after the effective sale of the Shares, without accruing any
interest. If payments are processed through your employer, payments may be made on the same schedule as payroll payments and therefore may occur after a reasonable delay, without accruing any interest. 

  
  

14 

	8	 Situation upon Termination of Service 

 

	8.1	 Ordinary rules 

This Section 8.1 shall apply if the employment of a Participant ends for any of the following reasons: 

 

	 	(i)	 Dismissal (other than Dismissal for Serious Cause); 

 

	 	(ii)	 Retirement; 

  

	 	(iii)	 Redundancy; 

  

	 	(iv)	 termination of employment following injury, ill-health or disability, in each
case as established to the satisfaction of Anheuser-Busch InBev; 

  

	 	(v)	 Outsourcing; or 

  

	 	(vi)	 Divestiture. 

In case of termination of employment for any of the above listed reasons: 

 

	 	(i)	 all Options which were not exercisable under Section 7.2 above on the date of the end of employment will be subject
to the following rules: 

  

	 	(a)	 a portion of these Options will become immediately and unconditionally exercisable, but only during a 12-month period starting on the day following the date of the end of employment; the portion of Options that will remain in full force and effect as indicated above will be calculated by Anheuser-Busch InBev on the
basis of the Pro-Rata Formula; and 

  

	 	(b)	 the remaining Options will automatically expire and become null and void; and 

 

	 	(ii)	 all Options which, on the date of the end of employment, were exercisable according to Section 7.2 above may be
exercised, but only during a 12-month period starting on the day following the date of the end of employment. 

The rules set out above shall apply notwithstanding any recourse that might be introduced by a Participant against the termination of
employment. 
  

	8.2	 Resignation and Dismissal for Serious Cause 

In case of Resignation or Dismissal for Serious Cause of a Participant: 

 

	 	(i)	 all Options which were not exercisable under Section 7.2 above on the date of the end of employment will
automatically expire and become null and void; and 

  

	 	(ii)	 all Options which, on the date of the end of employment, were exercisable according to Section 7.2 above will
automatically expire and become null and void, unless they were exercised before the date of the end of employment. 

The rules set out above shall apply notwithstanding any recourse that might be introduced by a Participant against Dismissal for Serious
Cause. 

  
  

15 

	8.3	 Death 

In case of death of a Participant: 
  

	 	(i)	 all Options which were not exercisable under Section 7.2 above on the date of death of the Participant, will become
immediately and unconditionally exercisable (in the case of death, by the Successors), but only during a 12-month period starting on the day following the death of the Participant; and 

 

	 	(ii)	 all Options which, on the date of death of the Participant, were exercisable according to Section 7.2 above may be
exercised by the Successors, but only during a 12-month period starting on the day following the death of the Participant. 

 

	8.4	 Treatment of ISOs 

ISOs shall be treated as NQSOs if they are exercised later than three (3) months after a Participant’s termination of
employment. If Section 8.1 applies with respect to ISOs upon the disability of a Participant and the disability is as described in Section 22(e)(3) of the Code, such ISOs shall be treated as NQSOs if they are exercised later than one
(1) year after termination of employment. If the disability is not as described in Section 22(e)(3), such ISOs shall be treated as NQSOs if they are exercised later than three (3) months after termination of employment. 

 

	8.5	 Leave of Absence 

A Participant who is as of the Offer Date on a Leave of Absence, or following the Offer Date commences a Leave of Absence, shall be
deemed to remain employed by SABMiller, Anheuser-Busch InBev or any of their subsidiaries unless the Leave of Absence extends beyond the second anniversary of the date on which the Leave of Absence commenced, in which event the Participant will be
deemed to have resigned, in the meaning of this Section 8 and for the application of the Plan only, on and as of the Leave of Absence expiration date. 

Notwithstanding the above, for purposes of the Pro-Rata Formula under Section (a), the Leave of
Absence will only be included in the number of full calendar months of employment provided it has been granted for medical reasons, including maternity leave, or provided the law governing the employment of the Participant would require this. 

For purposes of ISOs, if a Leave of Absence exceeds three (3) months and SABMiller, Anheuser-Busch InBev or any of their
subsidiaries is required, either by statute or contract, to reemploy the Participant upon expiration of such leave, Options will continue to be treated as ISOs during such Leave of Absence. If reemployment upon expiration of a Leave of Absence that
exceeds three (3) months is not so guaranteed, six (6) months after the first day of such leave any ISOs held by the Participant shall cease to be treated as ISOs and shall be treated for tax purposes as NQSOs. 

 

	9	 Special Rules for Incentive Stock Options 

 

	9.1	 To the extent that the aggregate Fair Market Value (determined as of the time the Option is granted) of the stock with
respect to which ISOs granted under the Plan and all other plans of Anheuser-Busch InBev are first exercisable by any Participant during any calendar year shall exceed the maximum limit (currently USD 100,000) imposed from time to time under

  
  

16 

	 	 
Section 422 of the Code, such Options shall be treated as NQSOs, taking Options into account in the order in which they are granted. 

 

	9.2	 Notwithstanding Section 3, to the extent required under Section 422 of the Code, an ISO may not be granted
under the Plan to a Participant who, at the time the Option is granted, owns stock possessing more than 10% of the total combined voting power of all classes of stock of his or her employer corporation or of its parent or subsidiary corporations (as
such ownership may be determined for purposes of Section 422(b)(6) of the Code) unless (i) at the time such ISO is granted the Exercise Price is at least 110% of the Fair Market Value of the Shares subject thereto and (ii) the ISO by
its terms is not exercisable after the expiration of five (5) years from the date granted. 

  

	9.3	 To the extent that an ISO fails to meet any of the requirements of Section 422 of the Code, it shall cease
to be an ISO but shall, from the date of the failure, continue in effect as a NQSO. 

  

	10	 Amendment to the Capital Structure and Anti-dilution Measures 

 

	10.1	 Anheuser-Busch InBev expressly reserves the right to proceed with corporate changes that have an impact on its capital,
such as capital increases, including by incorporation of reserves in the capital, capital decreases, issuance of convertible bonds, subscription rights or options, stock splits or reverse stock splits, combinations or reclassifications of the
Shares, mergers, (partial) demergers, as well as the right to amend the articles of association, including the clauses governing the allocation of profits or liquidation boni. 

 

	10.2	 In the event that such corporate changes would have an unfavourable effect on the Options, the Exercise Price and/or the
number of Options and/or the number of Shares to which the Options give rights will be adjusted for the purpose of safeguarding the interests of the holders of Options, as determined at the sole discretion of the Board of Directors, subject to any
required action by the Shareholders’ Meeting; provided, however, that with respect to ISOs, any such adjustment shall be made in accordance with Section 424 of the Code. The terms of such adjustment will be communicated to the Participants
in due time. 

  

	10.3	 In the event that Anheuser-Busch InBev would be merged into another company, the rights and obligations of
Anheuser-Busch InBev under the Plan will automatically be transferred to the absorbing company and the Options will no longer give the Participants the right to purchase Shares, but instead the right to purchase shares of the absorbing company. The
number of shares of the absorbing company to which each Option will give right and the exercise price thereof will be determined at the sole discretion of the Board of Directors and communicated to the Participants in due time; provided, however,
that with respect to ISOs, any such assumption shall be made in accordance with Section 424 of the Code. 

  

	11	 Nature and Characteristics of the Shares 

 

	11.1	 General 

The Shares to be purchased upon exercise of the Options are existing ordinary shares of Anheuser-Busch InBev with all rights and benefits
generally attached to such Shares. Anheuser-Busch InBev will, at its discretion, deliver Shares in dematerialised form or in registered form. 

  
  

17 

	11.2	 Dividends 

The Shares acquired upon exercise of Options give right to the dividends paid on such Shares after the date of exercise. No dividends
will be paid on the Options. 
  

	11.3	 Transferability 

The Shares acquired upon exercise of Options are not subject to any transfer restrictions under the rules of the Plan. 

 

	12	 Expenses and Taxes 

All costs related to the attribution of the Options and the delivery of the Shares will be paid by Anheuser-Busch InBev, except taxes on
stock exchange transactions, capital gains taxes and income and social security taxes on the income received by the Participants in connection with the offering, the ownership or the exercise of the Options and with the acquisition of the Shares.
All financing costs related to the acquisition of the Shares shall be borne by the Participants. In case of a regular exercise, the Participants shall ensure that the bank account of Anheuser-Busch InBev is credited with the net Exercise Price
amount in euros. To the extent permitted by law, Anheuser-Busch InBev may withhold from any payment or delivery of Shares any income or social security taxes that are required to be withheld under any applicable law, rule or regulation. 

 

	13	 Administration of the Plan 

 

	13.1	 Delegation to the Committee 

 

	 	13.1.1	 The Board of Directors may delegate part or all powers under the Plan to the Committee. In the case of a delegation of
powers, the Committee shall: (i) be responsible for the general administration of the Plan in accordance with the provisions thereof, under the supervision of the Board of Directors; and (ii) be authorised to establish rules for the
administration, interpretation and application of the Plan and, if necessary, to interpret, amend and cancel these rules, in compliance with these Terms and Conditions. 

 

	 	13.1.2	 In the case of a delegation of powers, the Board of Directors will retain full authority to exercise all the rights and
obligations of the Committee under the Plan at any time whatsoever or to delegate them to another committee constituted by the Board of Directors. 

  

	13.2	 (Sub-)delegation to any third party 

 

	 	13.2.1	 The Board of Directors and the Committee may (sub-)delegate certain well-specified powers to any third party they
deem appropriate. 

  

	 	13.2.2	 In the case of a (sub-)delegation of powers, the Board of Directors and the Committee will retain full authority
to exercise all the rights and obligations so delegated. 

  

	13.3	 Limitation of liability 

Neither Anheuser-Busch InBev nor any member of the Board of Directors or the Committee shall be liable for: 

 

	 	(i)	 any action or determination made in good faith with respect to the Plan; or 

  
  

18 

	 	(ii)	 any action or determination with respect to the Plan or ISOs granted under the Plan that results in the Plan or such
ISOs (individually or entirely) failing to meet the requirements of Section 422 of the Code. 

  

	14	 Notification Upon Disqualifying Disposition of ISO 

If a Participant disposes of Shares acquired upon exercise of an ISO in a “disqualifying disposition” within the meaning of
Section 422 of the Code, that is, disposes of them less than: 
  

	 	(i)	 two years after the ISO Offer Date; or 

 

	 	(ii)	 one year from the issue or transfer of Shares to the Participant upon exercise, 

or in any other disqualifying disposition within the meaning of Section 422 of the Code, the Participant shall notify Anheuser-Busch
InBev of the date and terms of such disposition in writing within 15 days thereof. 
  

	15	 Electronic Register, Electronic Evidence and Consent to Electronic Delivery 

 

	15.1	 Electronic options register 

The Options may be recorded in an options register in electronic form, the maintenance of which may be outsourced by Anheuser-Busch InBev
to a third party. 
  

	15.2	 Electronic evidence 

Electronic approvals, instructions, orders, statements and communications between a Participant, Anheuser-Busch InBev, Anheuser-Busch
InBev affiliates and any third party to which powers have been sub-delegated by Anheuser-Busch InBev for the administration of the Plan will have the same legal status as written approvals, instructions,
orders, statements and communications unless otherwise provided by applicable law. The written recording or the written reproduction of electronic approvals, instructions, orders, statements and communications received by Anheuser-Busch InBev,
Anheuser-Busch InBev affiliates and any third party to which powers have been sub-delegated by Anheuser-Busch InBev for the administration of the Plan, will constitute conclusive evidence between the
Participant, Anheuser-Busch InBev, Anheuser-Busch InBev affiliates and any third party to which powers have been sub-delegated by Anheuser-Busch InBev for the administration of the Plan, unless evidence to the
contrary is provided by the Participant or unless otherwise provided by applicable law. 
  

	15.3	 Consent to electronic delivery 

As a condition to receiving the Options, each Participant consents to delivery of all subsequent information relating to the Options by
electronic means, including e-mails to the Participant and postings on the LTI Website, Anheuser-Busch InBev’s website or intranet. Such information may include, among others, financial information
concerning Anheuser-Busch InBev and other information relevant to a Participant’s decision whether or not to exercise the Options. In order to access such information, Participants will be required to access the LTI Website and/or
Anheuser-Busch InBev’s e-mail system, website and/or intranet. By acceptance of the Options, each Participant is deemed to acknowledge that he/she has such access to the LTI Website, the e-mail system of Anheuser-Busch InBev and its website and intranet and ordinarily uses them in the ordinary course of 

  
  

19 

 
his/her employment. Participants may obtain paper copies of any such information by submitting a request to receive paper copies to his/her People Department. 

 

	16	 Matrimonial Regime 

In the event that the matrimonial regimes of Participants confer ownership or other rights on their spouses with respect to the Options,
those Participants undertake that their spouses shall appoint them as their sole representatives for all matters arising in relation to the Options. 
  

	17	 Death 

In the event of a Participant’s death, any Successor acquiring Options shall inform Anheuser-Busch InBev of the Participant’s
death as soon as possible following the date of death. 
  

	18	 Modification to the Terms and Conditions 

The Board of Directors or the Committee may unilaterally modify at any time the practical and/or accessory modalities of the Terms and
Conditions. 
 It may also unilaterally modify the Terms and Conditions when such modifications are required to comply with any change
in legislation. 
 In addition, the Board of Directors may unilaterally modify the Terms and Conditions in any and all other
circumstances, provided that such modifications do not adversely affect the rights of the Participants in respect of Options that were granted prior to such modifications. 

Shareholder approval/confirmation of any amendment shall be obtained to the extent necessary to comply with Section 422 of the Code
(relating to Incentive Stock Options) or any other applicable law, regulation or stock exchange listing requirements. 
 Where the
Board of Directors or the Committee has determined that a delivery of Shares under the Plan would be prohibited by (or unreasonably difficult under) any law, rule or regulation in any jurisdiction, it may decide (at any time) not to deliver Shares
to the relevant Participants upon exercise and to pay an amount in cash equal to the Fair Market Value, on the date of exercise, of the Shares to which such Participants are entitled, less the corresponding Exercise Price and less any withholding in
accordance with Clause 12. Such payment will take place in the currency determined by the Board of Directors or the Committee. 
  

	19	 Nature of the Plan 

Notwithstanding any provisions to the contrary included in the Terms and Conditions, the Offer Letter, the Acceptance Form or any other
document relating to the Plan: 
  

	 	(i)	 the acquisition of Shares by the Participant is unrelated to his occupational pension rights or pension claims, so that
this acquisition cannot affect these occupational pension rights and claims; 

  

	 	(ii)	 the Plan, the Offer Letter and the Acceptance Form or any other document relating to the Plan do not confer upon the
Participant any right to continued employment for any period of specific duration or interfere with or otherwise restrict in any way 

  
  

20 

	 	 
the rights of SABMiller, Anheuser-Busch InBev or any of their subsidiaries to terminate the Participant’s employment according to the applicable regulations in respect of termination
thereof; and 

  

	 	(iii)	 the grant of Options cannot be considered as a right acquired for the future. 

 

	20	 Privacy and Processing of Personal Data 

To enable the proper set-up and management of the Plan and the Options register, personal
information about each Participant will need to be collected and used. This Section 20 sets out the obligations of Anheuser-Busch InBev and the rights of Participants regarding this collection and use, and provides the legally required
information in this respect. 
  

	20.1	 Identity of the person responsible for your Personal Data 

Anheuser-Busch InBev is the so-called “Data Controller”, which is responsible
for the collection and use of Personal Data necessary to set-up and manage the Plan and the Options register of Anheuser-Busch InBev in electronic form. 

 

	20.2	 Nature of the Personal Data 

The following items of information relating to the Participants will be collected and used: 

 

	 	(i)	 his/her identification data (e.g. name, private or professional contact details); 

 

	 	(ii)	 electronic identification data; 

 

	 	(iii)	 personal characteristics (e.g. date of birth, gender, nationality); 

 

	 	(iv)	 financial data (e.g. details regarding bank account); 

 

	 	(v)	 employment data (e.g. mobility, start date); 

 

	 	(vi)	 details of all rights and other entitlement to Shares awarded, cancelled, vested, unvested or outstanding,

 together, the “Personal Data”. 

 

	20.3	 Why and how Personal Data is collected and used 

The Personal Data will either be collected via the Acceptance Form and the Exercise Form or extracted from Anheuser-Busch InBev’s
SAP system or employment management tools. It will be used exclusively for the purposes of the administration of the Plan and the maintenance of the Options register of Anheuser-Busch InBev in electronic form. 

 

	20.4	 Other persons having access to the Personal Data and purpose thereof 

The Data Controller can transfer the Personal Data to the following categories of recipients: 

 

	 	(i)	 third party service providers designated by the Data Controller to collect or use Personal Data on behalf of the Data
Controller in accordance with this Section 20 for the purpose of implementing, administrating and managing the Plan and the Options register in electronic form (“Data Processors”); 

 

	 	(ii)	 the employer of the Participant for the above purposes; 

  
  

21 

	 	(iii)	 regulatory authorities for the purpose of complying with legal obligations in connection with the Plan; and

  

	 	(iv)	 any member of the Anheuser-Busch InBev Group. 

Such recipients may be located in jurisdictions outside the European Economic Area (EEA) that may not provide an adequate level of
personal data protection. The Data Controller relies upon the consent of the Participant to transfer the data to such jurisdictions, his/her consent in this respect being requested at the time of signature of the Acceptance Form and/or its
submission through the LTI Website. 
  

	20.5	 Legal basis allowing Anheuser-Busch InBev to collect and use Personal Data 

Through his/her signature of the Acceptance Form and/or its submission through the LTI Website, the Participant gives his/her consent to
the collection and processing of his/her Personal Data as described in this Section 20. This consent will be relied upon by the Data Controller as the justification for collecting and using Personal Data. 

 

	20.6	 Rights of the Participants 

The Participant can exercise his/her right to request access to and rectification or erasure of his/her Personal Data or restriction of
processing concerning the Participant or to object to processing as well as the right to data portability by sending a written and signed request to the contact person identified in the Acceptance Letter. 

The Participants may withdraw their consent for the processing of their Personal Data in the context of the Plan at any time, but should
be aware that such processing is a prerequisite for further participation to the Plan and that the Data Controller may still need to process Personal Data after such withdrawal of consent to comply with its legal obligations and/or its contractual
obligations towards the Participants under the Plan. Such withdrawal will not affect the lawfulness of processing based on consent before its withdrawal. 

Finally, if Participants are not satisfied with how Anheuser-Busch InBev processes their Personal Data, they have the right to make a
complaint to the Belgian Privacy Commission, which can be contacted online via its website www.privacycommission.be. 
  

	20.7	 Storage period of the Personal Data 

Personal Data will be stored for a period of five (5) years after the termination of the Plan. 

 

	21	 Effective Date and Term of Plan 

Unless sooner terminated by the Board of Directors, the Plan, including the provisions regarding the grant of Options, shall terminate on
the date upon which all the Shares underlying the Options have been delivered to Participants. All Options granted under the Plan prior to its termination shall remain in effect until such Options have been exercised or terminated in accordance with
the Terms and Conditions of the Plan and the Offer Letter. 
  

	22	 Severability 

If any provision in this document is held to be illegal, invalid or unenforceable, in whole or in part, under any applicable law, that
provision will be deemed not to form part of this document, and the legality, validity or enforceability of the remainder of this document will not be affected. 

  
  

22 

	23	 Applicable Law – Competent Court 

The Options, the Shares and these Terms and Conditions are governed by Belgian law. The courts of Brussels will have exclusive
jurisdiction for any dispute relating thereto. 

  
  

23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00277-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00277-of-00352.parquet"}]]