Document:

Exhibit 10.1

EXHIBIT 10.1

AMENDMENT TO LETTER AGREEMENT

December 14, 2009

	 
	Digital Angel Corporation 

490 Villaume Avenue 

South St. Paul, MN 55075

Attention: President

Re: Amendment to Prepayment Schedule in November 5, 2009 Letter Agreement

Ladies and Gentlemen:

Reference is made to the November 5, 2009 Letter Agreement (the “Letter Agreement”) entered
into among the signatories to this Amendment to Letter Agreement (this “Amendment”). All defined
terms used herein that are not defined shall have the meanings given to them in the Letter
Agreement.

Reference is also made to the August 31, 2007 Security Agreement (and ancillary agreements)
between Destron Fearing Corporation (f/k/a/ Digital Angel Corporation) (“DFC”) and certain of the
Laurus/Kallina Related Parties (the “Revolver”).

On November 20, 2009, the Company (and certain subsidiaries) completed the McMurdo Sale
Transaction pursuant to the terms of an Amended Sale Agreement. As a result of the final
transaction structure, trade payable balances and timing of payments, and increases in operating
requirements of Signature Industries, the Company did not receive the expected proceeds from the
transaction at closing, which proceeds were intended for payment to the Laurus/Kallina Related
Parties under the Letter Agreement.

The parties hereto wish to amend the Letter Agreement and otherwise agree as follows:

(a) The payment schedule set forth in paragraph (a) on page 2 of the Letter Agreement shall be
modified as follows:

(i) Upon execution of this Amendment, the Company shall pay to the Laurus/Kallina
Related Parties, and the Laurus/Kallina Related Parties will accept from the Company, in
partial satisfaction of the Existing Debt Obligations (as determined prior to application of
payment of the Deferred Monthly Amount) the amount of $3,000,000 in cash (“Partial
Prepayment”). The Company hereby agrees that the Partial Prepayment shall be paid by the
Company and/or its designee to the Laurus/Kallina Related Parties on the date hereof as
follows: $3,000,000, less the November 2009 principal payment of $208,333 already paid, (i.e. $2,791,667) in cash by wire transfer to the account set
forth on Exhibit A to this Amendment. A portion of the required Partial Prepayment may be
satisfied by DFC on behalf of the Company as follows: DFC by its signature below hereby
requests a borrowing of $1,400,000 under the Revolver (subject to unfunded borrowing base
availability as existing on the date of this Amendment) which borrowed amount DFC instructs
the Laurus/Kallina Related Parties to pay in cash by wire transfer to the account set forth
on Exhibit A to this Amendment on behalf of the Company and to apply such paid amount
against the Partial Payment. The Company and affiliated companies signing below (the
“Company Entities”) hereby authorize the Laurus/Kallina Related Parties to apply all
payments made pursuant to this subsection (i) against the scheduled amortizing principal
payments under the Existing Debt Obligations in inverse order of maturity; provided that,
notwithstanding the foregoing, the payments made pursuant to this subsection (i) may also be
applied against the principal portion of the outstanding Monthly Amounts due under the Notes
in December 2009 and January 2010. The Company hereby agrees to make all payments of
interest and principal under the Existing Debt Obligations (and otherwise) per the terms of
the Existing Agreements, including, without limitation unless otherwise expressly modified
herein.

 

1

 

(ii) In addition to the payments described above in subsection (i), the Company hereby
agrees that within three (3) days after execution of this Amendment, the Company shall pay
the Deferral Payment to the Laurus/Kallina Related Parties in the form of cash payment or
common stock of the Company with an aggregate value of $800,000, calculated and issued in
accordance with the terms of the November 26, 2008 Letter Agreement among the parties;

(iii) The Company hereby agrees that on or before February 1, 2010, the Company shall
pay to the Laurus/Kallina Related Parties, and the Laurus/Kallina Related Parties will
accept from the Company, all remaining outstanding amounts in respect of the remaining
Existing Debt Obligations (upon payment per paragraphs (i) and (ii) above, the total
remaining Existing Debt Obligations which are then owing by the Company.

(b) Paragraph (b) on page 2 of the Letter Agreement shall have no further effect, the Company
having paid such November Monthly Amounts subsequent to execution of the Letter Agreement.

(c) Upon execution of this Amendment, the Laurus/Kallina Related Parties agree to immediately
resume funding under the Revolver in accordance with the terms thereof.

(d) As of the date of this Amendment and after giving full force and effect to this Amendment,
each of the Laurus/Kallina Related Parties (and their affiliates) hereby confirms that no known
default or known breach by the Company Entities under the Existing Agreements or the Revolver has
occurred prior to or exists as of the date hereof. For the avoidance of doubt, this Amendment and
the Letter Agreement shall be deemed to be Related Agreements and Ancillary Agreements as defined
in the Existing Agreements and any failure by the Company or its designees to make any of the
payments described in Section (a) above when due shall be deemed to be a payment event of default
under and as described in the Existing Agreements. Each of the Company Entities hereby confirms and agrees that no default or breach
by the Laurus/Kallina Related Parties under the Existing Documents or the Revolver has occurred
prior to or exists as of the date hereof.

 

2

 

(e) The Company Entities hereby each represents and warrants to the Laurus/Kallina Related
Parties that: (i) the Existing Agreements (and each Related Agreement as defined therein) and the
Revolver (and each Ancillary Agreement as defined therein) shall remain in full force and effect,
and are hereby ratified and confirmed; (ii) no breach or default of any of its/their obligations
under the terms of the Existing Agreements or the Revolver or any other agreements between any of
the Laurus/Kallina Related Parties and the Company Entities exists as of the date hereof after
giving effect to the Amendment and (iii) each of the Company Entities has the corporate power and
authority to execute and deliver this Amendment; (iv) all corporate action on the part of each of
the Company Entities (including their respective officers and directors) necessary for the
authorization of this Amendment, the performance of all obligations of the undersigned hereunder
has been taken; and (v) this Amendment, when executed and delivered and, to the extent it is a
party thereto, will be valid and binding obligations of the Company Entities. The execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or
remedy of any Laurus/Kallina Related Party, nor constitute a waiver of any provision of any of the
Letter Agreement or Existing Agreements, except as specifically provided herein. This Amendment
shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns and shall be governed by and construed in accordance with the laws of the
State of New York.

(f) This Amendment may be executed by the parties hereto in one or more counterparts, each of
which shall be deemed an original and all of which when taken together shall constitute one and the
same agreement. Any signature delivered by a party by facsimile transmission shall be deemed to be
an original signature hereto.

[SIGNATURE PAGES FOLLOW]

 

3

 

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	LAURUS MASTER FUND, LTD. (In Liquidation)
	 
	 	 	 	 
	 

	 	By:
	 	Laurus Capital Management, LLC, its investment manager
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Scott Bluestein
	 

	 	 	 	Name:Scott Bluestein
	 

	 	 	 	Title: Authorized Signatory
	 
	 	 	 	 
	 	 	KALLINA CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	Laurus Capital Management, LLC, its investment manager
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Scott Bluestein
	 

	 	 	 	Name: Scott Bluestein
	 

	 	 	 	Title: Authorized Signatory
	 
	 	 	 	 
	 	 	VALENS U.S. SPV I, LLC

VALENS OFFSHORE SPV I, LTD.

VALENS OFFSHORE SPV II, CORP.
	 
	 	 	 	 
	 

	 	By:
	 	Valens Capital Management, LLC, its investment manager
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Scott Bluestein
	 

	 	 	 	Name: Scott Bluestein
	 

	 	 	 	Title: Authorized Signatory
	 
	 	 	 	 
	 	 	LV ADMINISTRATIVE SERVICES, INC., as Agent
	 
	 	 	 	 
	 	 	By: /s/ Scott Bluestein
	 	 	Name:Scott Bluestein
	 	 	Title: Authorized Signatory

 

4

 

	 	 	 	 	 
	 	 	PSOURCE STRUCTURED DEBT LIMITED
	 
	 	 	 	 
	 

	 	By:
	 	PSource Capital Limited, its investment consultant
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Charles Lewis
	 

	 	 	 	Name: Charles Lewis
	 

	 	 	 	Title: Authorized Signatory

	 	 	 	 	 
	CONSENTED AND AGREED TO:	 	 
	 

	 	 	 	 
	DIGITAL ANGEL CORPORATION

(f/k/a Applied Digital Solutions, Inc.)	 	 
	 
	 	 	 	 
	By:

	 	/s/ Joseph J. Grillo	 	 
	 

	 	Name: Joseph J. Grillo

Title: President	 	 
	 
	 	 	 	 
	DESTRON FEARING CORPORATION

(f/k/a Digital Angel Corporation)	 	 
	 
	 	 	 	 
	By:

	 	/s/ Joseph J. Grillo	 	 
	 

	 	Name: Joseph J. Grillo

Title: President	 	 
	 
	 	 	 	 
	DIGITAL ANGEL TECHNOLOGY CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Joseph J. Grillo	 	 
	 

	 	Name: Joseph J. Grillo

Title: President	 	 
	 
	 	 	 	 
	DIGITAL ANGEL INTERNATIONAL, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Joseph J. Grillo	 	 
	 

	 	Name: Joseph J. Grillo

Title: President	 	 

 

5

 

	 	 	 	 	 
	FEARING MANUFACTURING CO. INC.	 	 
	 

	 	 	 	 
	By:

	 	/s/ Joseph J. Grillo	 	 
	 

	 	Name: Joseph J. Grillo

Title: President	 	 
	 
	 	 	 	 
	FLORIDA DECISION CORPORATION

(f/k/a Pacific Decision Sciences Corporation)	 	 
	 
	 	 	 	 
	By:

	 	/s/ Joseph J. Grillo	 	 
	 

	 	Name: Joseph J. Grillo

Title: President	 	 

 

6exv4w1

Exhibit 4.1

TOTAL CAPITAL

Officer’s Certificate

Pursuant to Sections 102 and 301 of the Indenture

I, Jérôme Schmitt, the Président-Directeur Général of Total Capital, a French société anonyme (the
“Company”), hereby certify that:

1. on
December 8, 2009, I, as duly appointed Président-Directeur Général of the Company, acting
in accordance with article L. 228-40 of the French Code de commerce and pursuant to the resolution
of the Board of Directors of the Company dated September 1, 2009, decided the issuance by the
Company of the US$500,000,000 principal amount of 4.250% Guaranteed
Notes Due 2021 (the “Notes”), the terms of which
are in conformity with the provisions set forth in the Indenture dated October 2, 2009, among the
Company, TOTAL S.A. and The Bank of New York Mellon, as trustee (the “Indenture”), and consist of
the following:

(a) the Company may issue Securities of the same series as the Notes without the
consent of the holders of the Notes; any Securities so issued will have the same terms
as the Notes in all respects, except for the original interest accrual date and the first
interest payment date, as the case may be, so that such Securities will be consolidated
 and form a single series with the Notes; and

(b) the Notes shall have such other terms and provisions as are provided in the form
thereof set forth in Annex A hereto, and shall be issued in substantially such form.

2. all conditions precedent provided for in the Indenture (including any covenants compliance with
which constitutes a condition precedent) relating to the authentication and delivery of the Notes,
as requested in the accompanying Company Order of even date herewith, have been complied with.

The following statements are made pursuant to the provisions of Section 102 of the Indenture:

	(a)	 	the undersigned has read the provisions of the Indenture setting forth the covenants and
conditions relating to the authentication and delivery of the Notes and in respect of
compliance with which this certificate is being delivered, and the definitions in the
Indenture relating thereto;

 

 

	(b)	 	the undersigned has examined the resolutions of the Board of Directors of the Company, such
other corporate records of the Company, and such other documents deemed necessary as a basis
for the opinion hereinafter expressed;
	 
	(c)	 	in the opinion of the undersigned, such examination is sufficient to enable me to express an
informed opinion as to whether or not the covenants and conditions referred to above have been
complied with; and
	 
	(d)	 	the undersigned is of the opinion that such covenants and conditions have been complied with.

Capitalized terms used herein and not otherwise defined herein shall have the meanings given to
them in the Indenture.

IN WITNESS WHEREOF, I have hereunto signed my name.

	 	 	 	 	 
	 	 	 
	Dated: December 15, 2009 	/s/ Jérôme Schmitt
 	 
	 	Name:  	Jérôme Schmitt 	 
	 	Title:  	Chairman and Chief Executive Officer 	 

 

 

Annex A

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS GLOBAL SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

Total Capital.

4.250%
Guaranteed Note Due 2021

			
	 	 	 
	No. [___]	 	U.S.$ [___]
	 	 	CUSIP 89152U AB8
	 	 	ISIN US89152U AB89

Total Capital, a société anonyme duly organized and existing under the laws of the
Republic of France with a capital of €300,000 having its registered office at 2, place Jean
Millier, La Défense, 92400 Courbevoie, France, for a term that will expire on December 15, 2098,
with the Registry of Commerce and Companies (Registre du commerce et des sociétés) of Nanterre
under No. 428 292 023 (herein called the “Company”, which term includes any successor or substitute
corporation under the Indenture hereinafter referred to), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of [___] (U.S.$ [___])
on December 15, 2021, and to pay interest thereon from December 15, 2009 or from the most recent
Interest Payment Date to which interest has been paid or duly
provided for, semi-annually on June 15 and December 15, in each year,
commencing June 15, 2010, at the rate of 4.250% per annum, until the
principal hereof is paid or made available for payment. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest, which shall be
the June 1 or December 1, (whether or not a Business Day), as the case may be, next preceding
such

 

 

Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith
cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person
in whose name this Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10
days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Securities of this
series may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture.

If any deduction or withholding for any present or future taxes, assessments or other governmental
charges of the jurisdiction (or any political subdivision or taxing authority thereof or therein)
in which the Company is incorporated, shall at any time be required by such jurisdiction (or any
such political subdivision or taxing authority thereof or therein) in respect of any amounts to be
paid by the Company of principal of or interest on a Security of any series, then the Company will
pay to the Holder of a Security of such series such additional amounts as may be necessary in order
that the net amounts paid to such Holder of such Security, after such deduction or withholding,
shall be not less than the amounts specified in such Security to which such Holder is otherwise
entitled; provided, however, that the Company shall not be required to make any payment of
additional amounts for or on account of:

(a) any tax, assessment or other governmental charge which would not have been imposed but for (i)
the existence of any present or former connection between such Holder (or between a fiduciary,
settlor, beneficiary, member or shareholder of, or possessor of a power over, such Holder, if such
Holder is an estate, trust, partnership or corporation) and the taxing jurisdiction or any
political subdivision or territory or possession thereof or area subject to its jurisdiction,
including, without limitation, such Holder (or such fiduciary, settlor, beneficiary, member,
shareholder or possessor) being or having been a citizen or resident thereof or being or having
been present or engaged in trade or business therein or having or having had a permanent
establishment therein or (ii) the presentation of a Security of such series (where presentation is
required) for payment on a date more than 30 days after the date on which such payment became due
and payable or the date on which payment thereof is duly provided for, whichever occurs later;

(b) any estate, inheritance, gift, sale, transfer, personal property or similar tax, assessment or
other governmental charge;

(c) any tax, assessment or other governmental charge that is payable otherwise than by withholding
from payments of (or in respect of) principal of, or any interest on, the Securities of such
series;

(d) any tax, assessment or other governmental charge that is imposed or withheld by reason of the
failure by the Holder or the beneficial owner of the Security of such series (i) to provide
information concerning the nationality, residence or identity of the Holder or such beneficial
owner or (ii) to make any declaration or other similar claim or satisfy any information or
reporting requirements, which, in the case of (i) or (ii), is required or imposed by a statute,
treaty, regulation or administrative practice of the taxing jurisdiction as a precondition to
exemption from all or part of such tax, assessment or other governmental charge;

 

 

(e) any tax, assessment or other governmental charge which such Holder would have been able to
avoid by presenting such Security to another Paying Agent;

(f) any tax, assessment or other governmental charge which is imposed on a payment pursuant to the
European Union Directive 2003/48/EC regarding the taxation of savings income or any other directive
amending, supplementing or replacing such directive, or any law implementing or complying with, or
introduced in order to conform to, such directive or directives; or

(g) any combination of items (a), (b), (c), (d), (e) and (f) above; nor shall additional amounts be
paid with respect to any payment of the principal of, or any interest on, any Security of such
series to any Holder who is a fiduciary or partnership or other than the sole beneficial owner of
such payment to the extent such payment would be required by the laws of the jurisdiction (or any
political subdivision or taxing authority thereof or therein) to be included in the income for tax
purposes of a beneficiary or settlor with respect to such fiduciary or a member of such partnership
or a beneficial owner who would not have been entitled to such additional amounts had it been the
Holder of such Security.

The foregoing provisions shall apply mutatis mutandis to any withholding or deduction in respect of
any amount to be paid by the Company of principal of or interest on a Security of any series (i)
for or on account of any present or future taxes, assessments or governmental charges of whatever
nature of any jurisdiction in which any successor or substitute Person to the Company is organized,
or any political subdivision or taxing authority thereof or therein; or (ii) if another Person
merges into or transfers its assets to the Company pursuant to Section 801, for or on account of
any taxes, assessments or governmental charges levied by the jurisdiction in which such other
Person is organized, or by any political subdivision or taxing authority thereof, as a result of
(x) the Company’s being treated as engaged in a trade or business, or having a permanent
establishment, in such jurisdiction and (y) the payment of principal or interest being allocable or
attributable to such trade or business or permanent establishment.

Payment of the principal of (and premium, if any) and interest on this Security will be made at the
Corporate Trust Office of the Trustee, as Paying Agent, in The City of New York, in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts; provided, however, that at the option of the Company payment of interest
may be made by check mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register.

Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

 

 

In Witness Whereof, the Company has caused this instrument to be duly executed.

Dated:
[                     ], 2009

	 	 	 	 	 
	 	Total Capital

 	 
	 	By  	 	 
	 	 	Name:  	Jérôme Schmitt 	 
	 	 	Title:  	Chairman and Chief Executive Officer 	 

	 	 	 	 	 
	Attest:
	 	 	 	 
	 

	 	 

Name: Marielle de Coninck
	 	 
	 

	 	Title: Company Secretary	 	 

Trustee’s Certificate of Authentication

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

Dated:
[                     ], 2009

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Trustee

 	 
	 	By  	 	 
	 	 	 
	 	Authorized Signatory

 	 

 

 

Reverse of Security

This Security is one of a duly authorized issue of securities of the Company (herein called the
“Securities”), issued and to be issued outside France in one or more series under an Indenture,
dated as of October 2, 2009 (herein called the “Indenture”), among the Company, as issuer, TOTAL
S.A., as Guarantor (herein called the “Guarantor”), and The Bank of New York Mellon, as Trustee
(herein called the “Trustee”, which term includes any successor trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made for a statement of
the respective rights, limitation of rights, duties and immunities thereunder of the Company, the
Guarantor, the Trustee and the Holders of the Securities and of the terms upon which the Securities
are, and are to be, authenticated and delivered. This Security is one of the series designated on
the face hereof, initially limited in aggregate principal amount to
U.S.$500,000,000.

The Securities of this series are subject to redemption upon not less than 30 nor more than 60
days’ notice by mail, as a whole or in part, at any time and from time to time at a redemption
price (the “Optional Mark-Whole Redemption Price”) equal to the greater of (i) 100% of the
principal amount of the notes to be redeemed and (ii) the sum of the present values of the
remaining scheduled payments of principal and interest on the Securities to be redeemed (not
including any portion of payments of interest accrued to the date of redemption (the “Redemption
Date”)) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate plus 15 basis points, plus accrued and
unpaid interest to the Redemption Date.

For purposes of determining the Optional Make-Whole Redemption Price, the following definitions are
applicable.

“Treasury Rate” means, with respect to any Redemption Date, the rate per year equal to the
semi-annual equivalent yield to maturity or interpolated (on a day count basis) of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of
its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

“Comparable Treasury Issue” means the U.S. Treasury security or securities selected by the
Quotation Agent as having an actual or interpolated maturity comparable to the remaining term of
the Securities of this series to be redeemed that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new issues of corporate debt securities
of comparable maturity to the remaining term of such Securities.

“Comparable Treasury Price” means, with respect to any Redemption Date, the average of the
Reference Treasury Dealer Quotations for such Redemption Date.

“Quotation Agent” means one of the Reference Treasury Dealers appointed by Total Capital and TOTAL
S.A.

“Reference Treasury Dealer” means Banc of America Securities LLC or
its  respective affiliates which are primary U.S. government
securities dealers, and its
respective successors, and three other primary U.S. government securities dealers selected by Total
Capital and TOTAL S.A., provided, however, that if any of the foregoing shall cease to be a primary
U.S. government securities dealer in the United States (a “primary treasury dealer”), Total Capital
and TOTAL S.A. shall substitute therefor another primary treasury dealer.

 

 

“Reference Treasury Dealer Quotations” means with respect to each Reference Treasury Dealer and any
Redemption Date, the average, as determined by the Quotation Agent, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 3:30 p.m. New York
time on the third Business Day preceding such Redemption Date.

Interest will be computed on the basis of a 360-day year of twelve 30-day months.

“Business Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a day on which banking or trust institutions in The City of New York are authorized
generally or obligated by law, regulation or executive order to close.

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

In the event of redemption of this Security in part only, a new Security or Securities of this
series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.

This Security is also redeemable prior to Stated Maturity as permitted under Section 1108
(“Optional Redemption Due to Changes in Tax Treatment”); the date specified for the Securities of
this series, for the purpose of said Section 1108, is December 15, 2009.

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the Guarantor and the rights of the
Holders of the Securities of each series to be affected under the Indenture at any time by the
Company, the Guarantor and the Trustee with the consent of the Holders of a majority in principal
amount of the Securities at the time Outstanding of each series to be affected. The Indenture also
contains provisions permitting the Holders of specified percentages in principal amount of the
Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of
such series, to waive compliance by the Company or the Guarantor, or both, with certain provisions
of the Indenture and certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder
and upon all future Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall
not have the right to institute any proceeding with respect to the Indenture or for the appointment
of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount of the Securities
of this series at the time Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable
indemnity, and the Trustee shall not have received from the Holders of a majority in principal
amount of Securities of this series at the time Outstanding a direction inconsistent with such
request, and shall have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by
the

 

 

Holder of this Security for the enforcement of any payment of principal hereof or any premium or
interest hereon on or after the respective due dates expressed or provided for herein.

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

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of
this Security is registrable in the Security Register, upon surrender of this Security for
registration of transfer at the office or agency of the Company in any place where the principal of
(and premium, if any) and interest on this Security are payable, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Company and the Security Registrar
duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one
or more new Securities of this series, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

The Securities of this series are issuable only in registered form without coupons in denominations
of U.S.$ 1,000 and any integral multiple thereof. As provided in the Indenture and subject to
certain limitations therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series of a different authorized denomination, as
requested by the Holder surrendering the same.

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

Prior to due presentment of this Security for registration of transfer, the Company, the Guarantor,
the Trustee and any agent of the Company, the Guarantor or the Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes (subject to Section 307
of the Indenture), whether or not this Security be overdue, and neither the Company, the Guarantor,
the Trustee nor any such agent shall be affected by notice to the contrary.

The Indenture provides that the Company and the Guarantor, at the Guarantor’s option, (a) will be
discharged from any and all obligations in respect of the Securities (except for certain
obligations to register the transfer or exchange of Securities, replace stolen, lost or mutilated
Securities, maintain paying agencies and hold moneys for payment in trust) or (b) need not comply
with certain restrictive covenants of the Indenture, in each case if the Company or the Guarantor
deposits, in trust, with the Trustee money or U.S. Government Obligations which, through the
payment of interest thereon and principal thereof in accordance with their terms, will provide
money, in an amount sufficient to pay all the principal (including any mandatory sinking fund
payments) of, and premium, if any, and interest on, the Securities on the dates such payments are
due in accordance with the terms of such Securities and Guarantee, and certain other conditions are
satisfied.

All terms used in this Security which are defined in the Indenture shall have the meanings assigned
to them in the Indenture.

 

 

Guarantee of Total S.A.

For value received, TOTAL S.A., a société anonyme duly organized and existing under the laws of the
Republic of France (herein called the “Guarantor”, which term includes any successor corporation
under the Indenture referred to in the Security upon which this Guarantee is endorsed), hereby
unconditionally guarantees to the Holder of the Security upon which this Guarantee is endorsed and
to the Trustee referred to in such Indenture due and prompt payment of the principal of (and
premium, if any) and interest (including additional amounts) on such Security, when and as the same
shall become due and payable, whether at the Stated Maturity, by declaration of acceleration, call
for redemption or otherwise, according to the terms thereof and of the Indenture referred to
therein. In case of the failure of Total Capital, a société anonyme duly organized and existing
under the laws of the Republic of France (herein called the “Company”, which term includes any
successor corporation under such Indenture) punctually to make any such principal, premium or
interest (including additional amounts) payment, the Guarantor hereby agrees to cause any such
payment to be made promptly when and as the same shall become due and payable, whether at the
Stated Maturity, by declaration of acceleration, call for redemption or otherwise, and as if such
payment were made by the Company.

The Guarantor hereby further agrees, subject to the limitations and exceptions set forth below,
that if any deduction or withholding for any present or future taxes, assessments or other
governmental charges of the jurisdiction (or any political subdivision or taxing authority thereof
or therein) in which the Guarantor is incorporated, shall at any time be required by such
jurisdiction (or any such political subdivision or taxing authority thereof or therein) in respect
of any amounts to be paid by the Guarantor under this Guarantee, the Guarantor will pay to the
Holder of a Security of such series such additional amounts as may be necessary in order that the
net amounts paid to such Holder of such Security, after such deduction or withholding, shall be not
less than the amounts specified in such Security to which such Holder is otherwise entitled;
provided, however, that the Guarantor shall not be required to make any payment of additional
amounts for or on account of:

(a) any tax, assessment or other governmental charge which would not have been imposed but for (i)
the existence of any present or former connection between such Holder (or between a fiduciary,
settlor, beneficiary, member or shareholder of, or possessor of a power over, such Holder, if such
Holder is an estate, trust, partnership or corporation) and the taxing jurisdiction or any
political subdivision or territory or possession thereof or area subject to its jurisdiction,
including, without limitation, such Holder (or such fiduciary, settlor, beneficiary, member,
shareholder or possessor) being or having been a citizen or resident thereof or being or having
been present or engaged in trade or business therein or having or having had a permanent
establishment therein or (ii) the presentation of a Security of such series (where presentation is
required) for payment on a date more than 30 days after the date on which such payment became due
and payable or the date on which payment thereof is duly provided for, whichever occurs later;

(b) any estate, inheritance, gift, sale, transfer, personal property or similar tax, assessment or
other governmental charge;

(c) any tax, assessment or other governmental charge that is payable otherwise than by withholding
from payments of (or in respect of) principal of, or any interest on, the Securities of such
series;

 

 

(d) any tax, assessment or other governmental charge that is imposed or withheld by reason of the
failure by the Holder or the beneficial owner of the Security of such series (i) to provide
information concerning the nationality, residence or identity of the Holder or such beneficial
owner or (ii) to make any declaration or other similar claim or satisfy any information or
reporting requirements, which, in the case of (i) or (ii), is required or imposed by a statute,
treaty, regulation or administrative practice of the taxing jurisdiction as a precondition to
exemption from all or part of such tax, assessment or other governmental charge;

(e) any tax, assessment or other governmental charge which such Holder would have been able to
avoid by presenting such Security to another Paying Agent;

(f) any tax, assessment or other governmental charge which is imposed on a payment pursuant to
the European Union Directive 2003/48/EC regarding the taxation of savings income or any other
directive amending, supplementing or replacing such directive, or any law implementing or complying
with, or introduced in order to conform to, such directive or directives;

or (g) any combination of items (a), (b), (c), (d), (e) and (f) above; nor shall additional amounts
be paid with respect to any payment of the principal of, or any interest on, any Security of such
series to any Holder who is a fiduciary or partnership or other than the sole beneficial owner of
such payment to the extent such payment would be required by the laws of the jurisdiction (or any
political subdivision or taxing authority thereof or therein) to be included in the income for tax
purposes of a beneficiary or settlor with respect to such fiduciary or a member of such partnership
or a beneficial owner who would not have been entitled to such additional amounts had it been the
Holder of such Security.

The foregoing provisions shall apply mutatis mutandis to any withholding or deduction in respect of
any amount to be paid by the Guarantor of principal of or interest on a Security of any series (i)
for or on account of any present or future taxes, assessments or governmental charges of whatever
nature of any jurisdiction in which any successor to the Guarantor is organized, or any political
subdivision or taxing authority thereof or therein; or (ii) if another Person merges into or
transfers its assets to the Guarantor pursuant to Section 801, for or on account of any taxes,
assessments or governmental charges levied by the jurisdiction in which such other Person is
organized, or by any political subdivision or taxing authority thereof, as a result of (x) the
Guarantor’s being treated as engaged in a trade or business, or having a permanent establishment,
in such jurisdiction and (y) the payment of principal or interest being allocable or attributable
to such trade or business or permanent establishment.

The Guarantor hereby agrees that its obligations hereunder shall be as if it were principal debtor
and not merely surety, and shall be absolute and unconditional, irrespective of, and shall be
unaffected by, any invalidity, irregularity or unenforceability of such Security or such Indenture,
any failure to enforce the provisions of such Security or such Indenture, or any waiver,
modification or indulgence granted to the Company with respect thereto, by the Holder of such
Security or such Trustee, or any other circumstance which may otherwise constitute a legal or
equitable discharge of a surety or guarantor; provided, however, that, notwithstanding the
foregoing, no such waiver, modification or indulgence shall, without the consent of the Guarantor,
increase the principal amount of such Security or the interest rate thereon or increase any premium
payable upon redemption thereof. The Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of merger or bankruptcy of the Company, any
right to require a proceeding first against the Company, protest

 

 

or notice with respect to such Security or the indebtedness evidenced thereby and all demands
whatsoever, and covenants that this Guarantee will not be discharged except by payment in full of
the principal of (and premium, if any) and interest on such Security. This Guarantee is a
guarantee of payment and not of collection.

The Guarantor shall be subrogated to all rights of the Holder of such Security against the Company
in respect of any amounts paid to such Holder by the Guarantor pursuant to the provisions of this
Guarantee; provided, however, that the Guarantor shall not be entitled to enforce, or to receive
any payments arising out of or based upon, such right of subrogation until the principal of (and
premium, if any) and interest on all Securities of the same series issued under such Indenture
shall have been paid in full.

No reference herein to such Indenture and no provision of this Guarantee or of such indenture shall
alter or impair the guarantee of the Guarantor, which is absolute and unconditional, of the due and
punctual payment of the principal of (and premium, if any) and interest on the Security upon which
this Guarantee is endorsed at the times, place and rate, and in the cash or currency prescribed
therein.

This Guarantee shall not be valid or obligatory for any purpose until the certificate of
authentication of such Security shall have been manually executed by or on behalf of the Trustee
under such Indenture.

All terms used in this Guarantee which are defined in such Indenture shall have the meanings
assigned to them in such Indenture.

IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be signed manually or in facsimile
by a person duly authorized in that behalf.

Dated:
[                     ], 2009

	 	 	 	 	 
	 	TOTAL S.A.

 	 
	 	By  	 	 
	 	 	Name:  	Jérôme Schmitt 	 
	 	 	Title:  	Treasurer 	 

	 	 	 	 	 
	Attest:
	 	 	 	 
	 

	 	 

Name: Charles Paris de Bollardière
	 	 
	 

	 	Title: Secretary

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