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  EXHIBIT 10.1

 

[FORM
OF]

 

NEITHER
THIS 16% SERIES C UNSECURED CONVERTIBLE PROMISSORY NOTE (THE
“NOTE”) NOR THE SECURITIES INTO WHICH THIS NOTE IS
CONVERTIBLE HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (“ACT”), OR THE SECURITIES LAWS OF ANY
STATE. NEITHER THIS NOTE NOR THE INTERESTS INTO WHICH THIS NOTE IS
CONVERTIBLE MAY BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT
REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS
OR DELIVERY TO TORCHLIGHT ENERGY RESOURCES, INC. OF AN OPINION OF
LEGAL COUNSEL SATISFACTORY TO TORCHLIGHT ENERGY RESOURCES, INC.
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR ANY
APPLICABLE STATE SECURITIES LAWS.

 

16%
SERIES C UNSECURED CONVERTIBLE PROMISSORY NOTE

OF

TORCHLIGHT ENERGY
RESOURCES, INC.

 

	

NOTE NO. 10-2018-____

	

          October
_____, 2018

 

FOR
VALUE RECEIVED, TORCHLIGHT ENERGY RESOURCES, INC., a Nevada
corporation with its principal office located at 5700 Plano
Parkway, Ste. 3600, Plano, Texas 75093 (the “Company” or “Debtor”), unconditionally promises
to pay to ___________________, whose address is
____________________, or the registered assignee, upon presentation
of this 16% Series C Unsecured Convertible Promissory Note (the
“Note”) by the
registered holder hereof (the “Registered Holder” or
“Holder”) at the
office of the Company, the principal amount of $___________
(“Principal
Amount”), together with the accrued and unpaid
interest thereon and other sums as hereinafter provided, subject to
the terms and conditions as set forth below. The effective date of
execution and issuance of this Note is October __, 2018
(“Original Issue
Date”).

 

1.           Series.
This Note is one of a series of duly authorized and issued
promissory notes of the Company designated as its 16% Series C
Unsecured Convertible Promissory Notes in an aggregate principal
face value for all Notes of this Series of a total of $6,000,000
(each, a “Series
Note,” and collectively, the “Series Notes”). Each of the Series
Notes is being issued in accordance with that certain Subscription
Agreement dated as of October ____, 2018, between the Company and
the Registered Holder, and is subject to the terms and conditions
set forth therein. The Holder of this Note with the holders of all
of the Series Notes are sometimes hereinafter collectively referred
to as “Series
Holders.”

 

2.           
Schedule for
Payment of Principal and Interest. The Principal Amount outstanding
hereunder along with all interest earned thereon shall be paid in
one lump sum payment of $____________ on or before April __, 2020
(the “Maturity
Date”), with such interest on the Principal Amount
outstanding hereunder being earned at the rate of 16% per annum, on
a simple interest basis. Accrual of interest on the outstanding
Principal Amount shall commence on the Original Issue Date and
shall continue until payment in full of the outstanding Principal
Amount has been made hereunder. The principal and interest so
payable will be paid to the person whose name this Note is
registered on the records of the Company regarding registration and
transfers of the Note (the “Note Register”). Payments made by
the Company shall be made to all Series Holders at the same
time.

 

 

16% Series C
Unsecured Convertible Promissory Note - Page 1 of 12

 

 

3.           
Payment.
Payment of any sums due to the Holder under the terms of this Note
shall be made in United States Dollars by certified check or wire
transfer of immediately available funds at the option of the
Company. Payments made by the Company shall be made to all Series
Holders at the same time. Payment shall be made at the address last
appearing on the Note Register of the Company as designated in
writing by the Holder hereof from time to time. If any payment
hereunder would otherwise become due and payable on a day on which
commercial banks in Dallas, Texas, are permitted or required to be
closed, such payment shall become due and payable on the next
succeeding day on which commercial banks in Dallas, Texas, are not
permitted or required to be closed ("Business Day") and, with respect to payments of
Principal Amount, interest thereon shall be earned at the then
applicable rate during such extension, if any. The payment of such
funds shall constitute a payment of outstanding principal and
interest hereunder and shall satisfy and discharge the liability
for principal and interest on this Note to the extent of the sum
represented by such payment. The Company shall not make any
repayment of the Principal Amount (or any portion thereof) or any
payment of interest accrued thereon prior to the Maturity Date
unless the Company has provided the Holder with at least ten (10)
and no more than thirty (30) days prior written notice of such
payment.

 

4.           
Company’s
Option to Redeem Note; Prepayment. In the event of a
Fundamental Transaction (as defined in Section 10(a) below), no
less than 100% of the outstanding Principal Amount of the Note,
plus any accrued and unpaid interest thereon, will be subject to
redemption at the option of the Company (a Redemption Amount must
include all unpaid interest that has accrued through the Redemption
Payment Date defined below). The amount of the Note subject to
redemption, as set forth herein (the “Redemption Amount”), must be
redeemed by the Company upon not less than 10 nor more than 30 days
notice to the Holder. If this Note is to be redeemed hereunder, the
Company must redeem all other Series Notes.

 

The
Company shall deliver to the Holder a written Notice of Redemption
(the “Notice of
Redemption”) specifying the date for the redemption
(the “Redemption Payment
Date”), which date shall be the date of closing of the
Fundamental Transaction and shall be at least 10 but not more than
30 days after the date of the Notice of Redemption (the
“Redemption
Period”). A Notice of Redemption shall not be
effective with respect to this Note if the Holder has previously
delivered a Notice of Conversion (as defined in Section 5(b) below)
or subsequently delivers a Notice of Conversion pursuant to Section
5 during the Redemption Period. On the Redemption Payment Date, the
Redemption Amount must be paid by certified check or wire transfer
of immediately available funds to the Holder. After the Redemption
Amount is paid to the Holder, interest will cease to accrue on the
Note.

 

5.           
Conversion
Rights.

 

(a)           
Subject O&G
Interest. The Company’s wholly-owned subsidiary,
Hudspeth Oil Corporation, presently has a 72.5% working interest in
certain oil and gas leases in Hudspeth County, Texas, known as the
Company’s “Orogrande
Project.” The entire Orogrande Project (100% working
interest) is hereinafter referred to as the “Subject O&G
Interest.”

 

 

16% Series C
Unsecured Convertible Promissory Note - Page 2 of 12

 

 

(b)           Conversion
into Working Interest. At any time after the Original Issue
Date but in no event
later than the Maturity Date, the Holder of this Note may, at its
election, convert no less than 100% of the outstanding Principal
Amount hereof plus all accrued but unpaid interest thereon, on the
terms and conditions set forth in this Section 5 and without
payment of additional consideration, into a proportionate working
interest (a “Working
Interest”) in the Subject O&G Interest. The right
to convert a Redemption Amount will terminate at the close of
business on the Business Day immediately prior to the Redemption
Payment Date for such Note provided that if the Company does not
pay the Redemption Amount to the Holder on such date, such related
Notice of Redemption is cancelled and the Holder’s rights of
conversion will remain in effect subject to the terms and
conditions of this Note.

 

The
Holder’s Working Interest (determined on a percentage basis)
is determined by dividing the Principal Amount of the entire amount
of the Note the Holder is converting (disregarding the amount of
unpaid interest that has accrued on such Principal Amount) by
6,000,000 and multiplying the result by 0.06. By way of example, if a Holder elects to
convert its entire $1,000,000 in Principal Amount (regardless of
the amount of unpaid interest that has accrued on such Principal
Amount) into a Working Interest hereunder, then such Holder would
receive 1% of the Subject O&G Interest (i.e., a 1% working
interest in 100% of the entire Orogrande
Project).

 

By
electing to convert its Note into a Working Interest, such Holder
(a “WI Converting Owner”) will be subject to all
agreements, laws, and regulations applying to or otherwise
governing the Subject O&G Interest, all of which have been made
available to Holder. Accordingly, the WI Converting Owner shall be
subject to any and all expenditures pursuant to such agreements
related to the Subject O&G Interest.

 

(c)           Mechanics
of Holder’s Conversion. In the event that the Holder
elects to convert this Note into a Working Interest pursuant to
this Section 5, the Holder shall give notice of such election by
delivering an executed and completed notice of conversion in the
form attached hereto as Annex A (“Notice of Conversion”) to the
Company no later than the Maturity Date. The Holder must surrender
this Note to the Company with the Notice of Conversion. On the
Conversion Date (as hereinafter defined) and in accordance with a
Notice of Conversion, the Note shall be paid in full and shall be
marked cancelled and the Company shall make the appropriate
reduction of the Principal Amount and accrued interest as entered
in its records and shall provide written notice thereof to the
Holder within five (5) Business Days after the Conversion Date. The
date on which a Notice of Conversion is delivered or telecopied to
the Company in accordance with the provisions hereof shall be
deemed the Conversion Date (the “Conversion Date”). Pursuant to the
terms of the Notice of Conversion and subject to the underlying
agreements and consent requirements, the Company will cause to be
conveyed to the Holder or the Holder’s designee the Working
Interest pursuant to a Farmout and Purchase Agreement by and among
the owners of the Subject O&G Interest and an assignment of the
working interest in the Subject O&G Interests, which will be
made in the usual and customary form, subject to the execution by
the Holder of all documents reasonably necessary to affect the
conveyance of the Working Interest. In the case of the exercise of
the conversion rights set forth herein, the conversion privilege
shall be deemed to have been exercised and the Working Interest
issuable upon such conversion shall be deemed to have been issued
upon the date of receipt by the Company of the Notice of
Conversion. The Holder shall be treated for all purposes as the
record holder of the Working Interest, unless the Holder provides
the Company written instructions to the contrary. Provided,
however, and in spite of anything to the contrary, the conversion
rights provided by this Note are subject to the consent of the
University Lands Board, a division of the University of Texas
System.

 

 

16% Series C
Unsecured Convertible Promissory Note - Page 3 of 12

 

 

(d)           Notwithstanding
the foregoing, the right of the Holder to convert this Note shall
terminate immediately upon the effective time of any MPC Assignment
(as defined below).

 

6.          
[Omitted]

 

7.           Representations
and Warranties of the Company. The Company represents and
warrants to the Holder that:

 

(a)           
Organization. The
Company is validly existing and in good standing under the laws of
the state of Nevada and has the requisite power to own, lease and
operate its properties and to carry on its business as now being
conducted. The Company is duly qualified to do business and is in
good standing in each jurisdiction in which the character or
location of the properties owned or leased by the Company or the
nature of the business conducted by the Company makes such
qualification necessary or advisable, except where the failure to
do so would not have a material adverse effect on the
Company.

 

(b)           Power
and Authority. The Company has the requisite power to
execute, deliver and perform this Note, and to consummate the
transactions contemplated hereby. The execution and delivery of
this Note by the Company and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary
corporate action on the part of the Company. This Note has been
duly executed and delivered by the Company and constitutes a legal,
valid and binding obligation of the Company and is enforceable
against the Company in accordance with its terms except (i) that
such enforcement may be subject to bankruptcy, insolvency,
moratorium or similar laws affecting creditors' rights and (ii)
that the remedy of specific performance and injunctive and other
forms of equitable relief are subject to certain equitable defenses
and to the discretion of the court before which any proceedings
therefor may be brought.

 

8.           
Events
of Defaults and Remedies. The following are deemed to be an
event of default ("Event of
Default") hereunder: (i) the failure by the Company to pay
the Principal Amount (or any portion thereof), or any interest
accrued thereon, on this Note or any other Series Notes as and when
due and payable; (ii) the failure of the Company to perform any
conversion of Notes required under this Note or any other Series
Notes and the continuance of any such failure for 10 days; (iii)
the failure by the Company to observe or perform any covenant or
agreement contained in this Note or any other Series Notes and the
continuance of such failure for a period of 30 days after the
written notice is given to the Company; (iv) the assignment by the
Company for the benefit of creditors, or an application by the
Company to any tribunal for the appointment of a trustee or
receiver of a substantial part of the assets of the Company, or the
commencement of any proceedings relating to the Company under any
bankruptcy, reorganization, arrangement, insolvency, readjustment
of debts, dissolution or other liquidation law of any jurisdiction;
or the filing of such application, or the commencement of any such
proceedings against the Company and an indication of consent by the
Company to such proceedings, or the appointment of such trustee or
receiver, or an adjudication of the Company bankrupt or insolvent,
or approval of the petition in any such proceedings, and such order
remains in effect for 60 days; (v) a default in the payment of
principal or interest when due which extends beyond any stated
period of grace applicable thereto or an acceleration for any other
reason of maturity of any indebtedness for borrowed money of the
Company with an aggregate principal amount in excess of $1,000,000;
and (vi) final unsatisfied judgments not covered by insurance
aggregating in excess of $1,000,000, at any one time rendered
against the Company and not stayed, bonded or discharged within 75
days.

 

 

16% Series C
Unsecured Convertible Promissory Note - Page 4 of 12

 

 

9.           
The
Holder’s Rights and Remedies upon the Occurrence of an Event
of Default. Following the occurrence and during the
continuance of an Event of Default:

 

(a)           Remedies.
The Holder may accelerate and declare any and all of the
obligations under the Note (the “Obligations”) to be immediately
due and payable. In the event that an Event of Default described in
Section 8(v) occurs, the Obligations shall immediately be
accelerated, due and payable without any action on the part of the
Holder.

 

(b)           Exercise
of Remedies. The Holder may by notice to the Company
accelerate the payment of all Obligations (provided that no such
notice shall be required if the Event of Default is under Section
8(v)); the Holder may proceed to enforce payment of any of the
Obligations; and all Obligations shall bear interest payable on
demand at the rate per annum 4% in excess of the applicable rate of
interest provided in Section 2 (the “Default Rate”). Notwithstanding
the foregoing, at any time after such a declaration of acceleration
has been made and before a judgment and/or decree for payment of
the money due has been obtained, the Holder at such time, may
provide written notice to the Company that the Holder may rescind
and annul such declaration and its consequences if all existing
Events of Default, other than the non-payment of the principal and
interest on the Series Notes which have become due solely by such
acceleration, have been cured or waived. No such rescission or
annulment shall affect any subsequent default or impair any right
consequent thereon.

 

(c)           Cumulative
Remedies. The rights and remedies of the Holder shall be
deemed to be cumulative, and any exercise of any right or remedy
shall not be deemed to be an election of that right or remedy to
the exclusion of any other right or remedy.

 

10.           
Limitation on
Merger, Sale or Consolidation.

 

(a)           
General Limitation.
If the Company determines to, directly or indirectly, consolidate
with or merge into another person or sell, lease, convey or
transfer all or substantially all of its assets (computed on a
consolidated basis), whether in a single transaction or a series of
related transactions, to another person or group of affiliated
persons, (a “Fundamental
Transaction”), the Company may not effect such
Fundamental Transaction unless either (i) in the case of a merger
or consolidation, the Company is the surviving entity or (ii) the
resulting, surviving or transferee entity expressly assumes by
supplemental agreement all of the obligations of the Company in
connection with the Notes. Upon any consolidation or merger or any
transfer of all or substantially all of the assets of the Company
in accordance with the foregoing, the successor entity formed by
such consolidation or into which the Company is merged or to which
such transfer is made, shall succeed to, and be substituted for,
and may exercise every right and power of the Company under the
Note with the same effect as if such successor entity had been
named therein as the Company; provided, however, that the foregoing
shall not release the Company from any obligations that arise from
or as a result of such transaction.

 

 

16% Series C
Unsecured Convertible Promissory Note - Page 5 of 12

 

 

(b)           
Orogrande Project
Limitation. The Company may not, directly or indirectly,
sell, lease, convey or transfer any portion of the Orogrande
Project, whether in a single transaction or a series of related
transactions (an “Orogrande
Transaction”) unless the Company (or it affiliate)
retains such portion of the Orogrande Project that will allow each
of the Series Holders to exercise its respective conversion rights
under Section 5 of the Series Notes and receive the same working
interest (and economic prospects with respect thereto) as such
Series Holder would have received if such Orogrande Transaction had
not taken place.

 

(c)           
Notice
Requirements. The Company shall deliver to the Holder a
written notice of a Fundamental Transaction and/or Orogrande
Transaction specifying the date for closing of such transaction,
which date shall be at least 10 but not more than 30 days after the
date of such notice.

 

11.           
Corporate
Obligation. No recourse shall be had for the payment of the
principal or the interest on this Note, or for any claim based
thereon, or otherwise in respect thereof, or based on or in respect
of any Note supplemental thereto, against any incorporator,
stockholder, officer, or director (past, present, or future) of the
Company, whether by virtue of any constitution, statute, or rule of
law, or by the enforcement of any assessment or penalty or
otherwise, all such liability being by the acceptance hereof, and
as part of the consideration for the issue hereof, expressly waived
and released.

 

12.           
Listing
of Registered Holder of Note. This Note will be registered
as to principal amount in the Holder’s name on the books of
the Company at its principal office in Plano, Texas (the
“Note
Register”), after which no transfer hereof shall be
valid unless made on the Company’s books at the office of the
Company, by the Holder hereof, in person, or by attorney duly
authorized in writing, and similarly noted hereon.

 

13.           
Registered Holder
Not Deemed a Stockholder. This Note shall not
confer upon the Holder any rights to vote or receive dividends or
be deemed the holder of shares of the Company for any purpose, nor
shall anything contained in this Note be construed to confer upon
the Holder hereof, as such, any of the rights of a stockholder of
the Company or any right to vote, give or withhold consent to any
corporate action (whether any reorganization, issue of stock,
reclassification of stock, consolidation, merger, conveyance or
otherwise), receive notice of meetings, receive dividends or
subscription rights, or otherwise.

 

14.           
Waiver
of Demand, Presentment, Etc. The Company hereby expressly waives
demand and presentment for payment, notice of nonpayment, protest,
notice of protest, notice of dishonor, notice of acceleration or
intent to accelerate, bringing of suit and diligence in taking any
action to collect amounts called for hereunder and shall be
directly and primarily liable for the payment of all sums owing and
to be owing hereunder, regardless of and without any notice,
diligence, act or omission as or with respect to the collection of
any amount called for hereunder.

 

15.           
Attorney’s
Fees. The Company
agrees to pay all costs and expenses, including without limitation
reasonable attorney's fees, which may be incurred by the Holder in
collecting any amount due under this Note or in enforcing any of
Holder’s conversion rights as described herein.

 

16.           
Enforceability.
In case any provision of this Note is held by a court of competent
jurisdiction to be excessive in scope or otherwise invalid or
unenforceable, such provision shall be adjusted rather than voided,
if possible, so that it is enforceable to the maximum extent
possible, and the validity and enforceability of the remaining
provisions of this Note will not in any way be affected or impaired
thereby.

 

 

16% Series C
Unsecured Convertible Promissory Note - Page 6 of 12

 

 

17.           Intent
to Comply with Usury Laws. In no event will the interest to be
paid on this Note exceed the maximum rate provided by law. It is
the intent of the parties to comply fully with the usury laws of
the State of Texas; accordingly, it is agreed that notwithstanding
any provisions to the contrary in this Note, in no event shall such
Note require the payment or permit the collection of interest
(which term, for purposes hereof, shall include any amount which,
under Texas law, is deemed to be interest, whether or not such
amount is characterized by the parties as interest) in excess of
the maximum amount permitted by the laws of the State of Texas. If
any excess of interest is unintentionally contracted for, charged
or received under this Note, or in the event the maturity of the
indebtedness evidenced by the Note is accelerated in whole or in
part, or in the event that all of part of the Principal Amount or
interest of this Note shall be prepaid, so that the amount of
interest contracted for, charged or received under this Note, on
the amount of the Principal Amount actually outstanding from time
to time under this Note shall exceed the maximum amount of interest
permitted by the applicable usury laws, then in any such event (i)
the provisions of this paragraph shall govern and control, (ii)
neither the Company nor any other person or entity now or hereafter
liable for the payment thereof, shall be obligated to pay the
amount of such interest to the extent that it is in excess of the
maximum amount of interest permitted by such applicable usury laws,
(iii) any such excess which may have been collected shall be either
applied as a credit against the then unpaid principal amount
thereof or refunded to the Company at the Holder’s option,
and (iv) the effective rate of interest shall be automatically
reduced to the maximum lawful rate of interest allowed under the
applicable usury laws as now or hereafter construed by the courts
having jurisdiction thereof. It is further agreed that without
limitation of the foregoing, all calculations of the rate of
interest contracted for, charged or received under the Note which
are made for the purpose of determining whether such rate exceeds
the maximum lawful rate of interest, shall be made, to the extent
permitted by applicable laws, by amortizing, prorating, allocating
and spreading in equal parts during the period of the full stated
term of the Note evidenced thereby, all interest at any time
contracted for, charged or received from the Company or otherwise
by the Holders in connection with this Note.

 

18.           
Governing Law;
Consent to Jurisdiction. This Note shall be governed by and
construed in accordance with the laws of the State of Texas without
regard to the conflict of laws provisions thereof. In any action
between or among any of the parties, whether rising out of this
Note or otherwise, each of the parties irrevocably consents to the
exclusive jurisdiction and venue of the federal and/or state courts
located in Plano, Texas.

 

19.           
Amendment and
Waiver. Any waiver or amendment hereto shall be in writing
signed by the Holder. No failure on the part of the Holder to
exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof, nor shall any single or partial
exercise by the Holder of any right hereunder preclude any other or
further exercise thereof or the exercise of any other rights. The
remedies herein provided are cumulative and not exclusive of any
other remedies provided by law.

 

 

16% Series C
Unsecured Convertible Promissory Note - Page 7 of 12

 

 

20.           
Restrictions
Against Transfer or Assignment. This Note may not be sold,
transferred, assigned, pledged, hypothecated or otherwise disposed
of by the Registered Holder hereof, in whole or in part, unless and
until either (i) the Note has been duly and effectively registered
for resale under the Securities Act of 1933, as amended, and under
any then applicable state securities laws; or (ii) an exemption from such registration
requirements is then available with respect to any such proposed
sale or disposition. Any transfer of this Note otherwise
permissible hereunder shall be made only at the principle office of
the Company upon surrender of this Note for cancellation and upon
the payment of any transfer tax or other government charge
connected therewith, and upon any such transfer a new Series Note
will be issued to the transferee in exchange therefor.

 

Notwithstanding the
foregoing, or any other provision herein to the contrary, the
Company acknowledges and agrees that (i) the Note is the subject of
a Put Option Agreement, dated as of the date hereof (the
“Put Option
Agreement”), by and between the Holder and McCabe
Petroleum Corporation, a Texas corporation (“MPC”), (ii) the Put Option
Agreement provides the Holder with an option to assign its rights
under this Note with respect to the Principal Amount and any
interest accruing thereon on or after the date of such assignment
to MPC (an “MPC
Assignment”) pursuant to the terms of the Put Option
Agreement, (iii) should the Holder elect to exercise such option
(which election shall be at the sole discretion of the Holder and
shall not be restricted by this Note), the resulting MPC Assignment
shall be effective in accordance with the terms of the Put Option
Agreement, and the consent of the Company shall not be required in
any way with respect to such MPC Assignment and (iv) any interest
accruing on the Principal Amount prior to the effective time of any
MPC Assignment shall remain payable to the Holder and, at such time
as interest under the Note is otherwise due and payable hereunder,
the Company shall pay the portion of such interest attributable to
the period prior to the MPC Assignment to the Holder and the
remainder of such interest (and any portion of the Principal Amount
that remains unpaid as of the time of such MPC Assignment) to MPC,
and the Company shall make the appropriate notations in the Note
Register to reflect such payment obligations. As between the Holder
and the Company, the MPC Assignment shall be evidenced by the
delivery to the Company of an allonge, in the form attached hereto
as Annex B (the “Allonge”), duly executed
by the Holder, which Allonge, when so executed and delivered, shall
be a part of this Note for all purposes hereunder.

 

21.           
Entire
Agreement; Headings. This Note constitutes the entire
agreement between the Holder and the Company pertaining to the
subject matter hereof and supersedes all prior and contemporaneous
agreements, representations and understandings, written or oral, of
such parties. The headings are for reference purposes only and
shall not be used in construing or interpreting this
Note.

 

22.           
Notices. Any
notices or other communications required or permitted hereunder
shall be sufficiently given if in writing and delivered in person,
or sent by registered or certified mail (return receipt requested)
or recognized overnight delivery service, postage pre-paid, or sent
by email addressed as follows, or to such other address as such
party may notify to the other parties in writing:

 

(a)           
If to the Company, to it at the following address:

 

5700
Plano Parkway, Ste. 3600

Plano,
Texas 75093

Attn:
John Brda, President

Email:
john@torchlightenergy.com

 

 

16% Series C
Unsecured Convertible Promissory Note - Page 8 of 12

 

 

(b)           If
to Registered Holder, then to the address listed on the front of
this Note, unless changed, by notice in writing as provided for
herein.

 

A
notice or communication will be effective (i) if delivered in
person or by overnight courier, on the Business Day it is
delivered, (ii) if sent by registered or certified mail, the
earlier of the date of actual receipt by the party to whom such
notice is required to be given or 3 days after deposit in the
United States mail and (iii) if sent by email, on the date
sent.

 

[Remainder of page
intentionally left blank. Signature page follows.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16% Series C
Unsecured Convertible Promissory Note - Page 9 of 12

 

 

IN WITNESS WHEREOF, Torchlight Energy
Resources, Inc. has caused this Note to be duly executed in its
corporate name by the manual signature of its
President.

 

 

	

 

	

TORCHLIGHT ENERGY RESOURCES,
INC.

	

 

	

 

	
 

	

 

	

 

	

 

	
 

	
 

	
By:  

	
 

	

 

	

 

	
 

	

 

	
John Brda,
President

	

 

 

Consent to
conversion of Note into Working Interest:

 

By its
signature below, Hudspeth Oil Corporation consents to the
conversion of the Holder’s Note into a Working Interest, in
the event such Holder elects to convert under the terms and
conditions of this Note.

 

 

	

 

	

HUDSPETH
OIL CORPORATION

	

 

	

 

	
 

	

 

	

 

	

 

	
 

	
 

	
By:  

	
 

	

 

	

 

	
 

	

 

	
John Brda,
President

	

 

 

  

 

 

 

 

 

 

16% Series C
Unsecured Convertible Promissory Note - Page 10 of 12

 

 

ANNEX
A

NOTICE
OF CONVERSION

 

 

The
undersigned (“Holder”) hereby elects to convert the
entire principal amount and all accrued and unpaid interest thereon
under the 16% Series C Unsecured Convertible Promissory Note (the
“Note”) due April __, 2020 of Torchlight Energy
Resources, Inc., a Nevada corporation (the “Company”),
into a Working Interest (as defined in the Note), according to the
conditions of the Note, as of the date written below. If the
Working Interest is to be assigned in the name of a person other
than the undersigned, the undersigned will pay all transfer taxes
payable, if any, with respect thereto and is delivering herewith
such certificates and opinions as reasonably requested by the
Company in accordance therewith. No fee will be charged to the
Holder for any conversion, except for such transfer taxes, if
any.

 

Conversion
Election:

 

 

Date:____________________________________

 

Signature:________________________________________

 

Name:___________________________________________

 

Address:_________________________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

16% Series C
Unsecured Convertible Promissory Note - Page 11 of 12

 

 

ANNEX
B

ALLONGE
TO NOTE

 

Reference is made
to the 16% Series C Unsecured Convertible Promissory Note, dated
effective October [___], 2018, made by Torchlight Energy Resources,
Inc., as such note has been amended or modified prior to the date
hereof (the “Note”). Terms capitalized but not defined
herein shall have the meaning ascribed to such terms in the Note.
This Allonge is attached to and made a permanent part of the
Note.

 

Pay to
the order of McCabe Petroleum Corporation:

 

(a)           all
unpaid Principal Amount as of _____________, 20__ (the
“Assignment Date”); and

 

(b)           all
interest accruing on the Principal Amount on or after the
Assignment Date.

 

Executed to be
effective as of the Assignment Date.

 

 

	

 

	
[HOLDER]

	

 

	

 

	

 

	

 

	

 

	
 

	
By:  

	
 

	

 

	

 

	

Name 

	

 

	

 

	

Title 

	

 

 

 

 

 

 

 

 

 

 

 

 

 

16% Series C
Unsecured Convertible Promissory Note - Page 12 of 12EX-4.1

 Exhibit 4.1 

Execution Version 

AFLAC INCORPORATED, 
 AS
ISSUER 
 AND 

THE BANK OF NEW YORK MELLON 

TRUST COMPANY, N.A., 
 AS
TRUSTEE 
 FIFTEENTH SUPPLEMENTAL INDENTURE 

Dated as of October 18, 2018 
  

 

¥29,300,000,000 

1.159% Senior Notes due 2030 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	ARTICLE I	  

	
	1.159% SENIOR NOTES DUE 2030	  

			
	 Section 1.01
	 	 Establishment
	  	 	1	 
	 Section 1.02
	 	 Definitions
	  	 	2	 
	 Section 1.03
	 	 Payment of Principal and Interest
	  	 	3	 
	 Section 1.04
	 	 Denominations
	  	 	3	 
	 Section 1.05
	 	 Global Securities
	  	 	3	 
	 Section 1.06
	 	 Transfer
	  	 	4	 
	 Section 1.07
	 	 Defeasance
	  	 	4	 
	 Section 1.08
	 	 Additional Amounts
	  	 	4	 
	 Section 1.09
	 	 Tax Redemption
	  	 	6	 
	 Section 1.10
	 	 Further Issues
	  	 	7	 
	
	ARTICLE II	  

	
	MISCELLANEOUS PROVISIONS	  

			
	 Section 2.01
	 	 Recitals by the Company
	  	 	8	 
	 Section 2.02
	 	 Ratification and Incorporation of Original Indenture
	  	 	8	 
	 Section 2.03
	 	 Executed in Counterparts
	  	 	8	 
	 Section 2.04
	 	 New York Law to Govern
	  	 	8	 
			
	 Exhibit A
	 	 Form of Global Note
	  	 	A-1	 
	 Exhibit B
	 	 Form of Certificate of Authentication
	  	 	B-1	 

  

 THIS FIFTEENTH SUPPLEMENTAL INDENTURE (this “Fifteenth Supplemental Indenture”) is
made as of the 18th day of October, 2018, by and between AFLAC INCORPORATED, a Georgia corporation, as issuer (the “Company”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, as trustee (the
“Trustee”): 
 WHEREAS, the Company has heretofore entered into a Senior Indenture, dated as of May 21, 2009 (the
“Original Indenture”), with the Trustee; 
 WHEREAS, the Original Indenture is incorporated herein by reference, and the Original
Indenture, as supplemented by this Fifteenth Supplemental Indenture, is herein called the “Indenture”; 
 WHEREAS, under the
Original Indenture, a new series of senior notes may at any time be established by the Board of Directors of the Company in accordance with the provisions of the Original Indenture and the terms of such series may be described by a supplemental
indenture executed by the Company and the Trustee; 
 WHEREAS, the Company proposes to create under the Indenture a new series of senior
notes; 
 WHEREAS, additional senior notes of other series hereafter established, except as may be limited in the Original Indenture as at
the time supplemented and modified, may be issued from time to time pursuant to the Indenture as at the time supplemented and modified, and all senior notes issued by the Company of any one series need not be issued at the same time and, unless
otherwise so provided, may be reopened for issuances of additional senior notes of such series; and 
 WHEREAS, all things necessary to
authorize the execution and delivery of this Fifteenth Supplemental Indenture and make it a valid and binding agreement of the Company, in accordance with its terms, have been done. 

NOW THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
 ARTICLE I 

1.159% SENIOR NOTES DUE 2030 

Section 1.01 Establishment. There is hereby established a new series of senior notes to be issued under the Indenture, to be
designated as the Company’s 1.159% Senior Notes due 2030 (the “Senior Notes”). 
 There are to be authenticated and delivered
Senior Notes, initially limited in aggregate principal amount to ¥29,300,000,000, and no further Senior Notes shall be authenticated and delivered except as provided by Sections 2.8, 2.9, 2.11, 8.5 or 12.3 of the Original Indenture and the
terms of this Fifteenth Supplemental Indenture; provided, however, that the Company may 

  
 1 

 
re-open this series of Senior Notes and the aggregate principal amount of the Senior Notes may be increased in the future, without the consent of the
holders of the Senior Notes, with the same ranking, interest rate, maturity date and other terms and with the same CUSIP and ISIN numbers as the Senior Notes other than with respect to: (i) the date of issuance, (ii) the issue price and
(iii) the date from which interest shall accrue and the amount of interest payable on the first Interest Payment Date following the issuance of any such additional Senior Notes (which terms shall be set forth in a Board Resolution accompanying
the Order pursuant to which any such additional Senior Notes are authenticated). Any such additional Senior Notes and the Senior Notes established pursuant hereto shall be considered collectively as a single class for all purposes of the Indenture;
provided that such additional Senior Notes are fungible for United States federal income tax purposes with any then-existing Senior Notes. The Senior Notes shall be issued in fully registered form. 

The Senior Notes shall be issued in the form of one or more Global Securities (as defined below) in substantially the form set out in
Exhibit A hereto. 
 The form of the Trustee’s Certificate of Authentication for the Senior Notes shall be substantially in the
form set forth in Exhibit B hereto. 
 Each Senior Note shall be dated the date of authentication thereof and shall bear interest from
the date of original issuance thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for. 

Section 1.02 Definitions. The following defined terms used herein shall, unless the context otherwise requires, have the meanings
specified below. Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Original Indenture. 

“Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day in which banking institutions in the
City of New York, Tokyo, or London are authorized and obligated by law, regulation or executive order to close. 
 “Global
Security” means, with respect to any series of securities, a security authenticated and delivered under the Original Indenture executed by the Company and held by the Trustee as custodian for the Depositary, all in accordance with the Original
Indenture, which shall be registered in the name of the Depositary or its nominee. 
 “Interest Payment Date” means April 18
and October 18 of each year, commencing on April 18, 2019. 
 “Non-U.S. Holder”
means a beneficial owner of a Senior Note (other than a partnership or other entity or arrangement treated as a partnership for United States federal income tax purposes) that is not a U.S. holder. 

“Regular Record Date” means, with respect to each Interest Payment Date, the close of business on April 4 or October 4
immediately preceding such Interest Payment Date. 
 “Stated Maturity” means October 18, 2030. 

  
 2 

 Section 1.03 Payment of Principal and Interest. The principal of the Senior
Notes shall be due at Stated Maturity. The unpaid and outstanding principal amount of the Senior Notes, and any overdue installment of interest thereon to the extent permitted by law, shall bear interest at the rate of 1.159% per year until paid or
made available for payment, such interest to accrue from the most recent Interest Payment Date on which interest has been paid or duly provided for or, if no interest has been paid, from October 18, 2018. Interest shall be paid semi-annually in
arrears on each Interest Payment Date, commencing on April 18, 2019, to the Person in whose name the Senior Notes are registered on the Regular Record Date for such Interest Payment Date, provided that interest payable at the Stated Maturity or
on a redemption date as provided herein will be paid to the Person to whom principal is payable. Any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the holders on such Regular Record Date and
may be paid as provided in Section 2.7 of the Original Indenture. 
 Payments of interest on the Senior Notes will include interest
accrued to but excluding the respective Interest Payment Dates. Interest payments for the Senior Notes shall be computed and paid on the basis of a 360-day year consisting of twelve 30-day months. In the event that any date on which interest is payable on the Senior Notes is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a
Business Day (and without any interest or other payment in respect of any such delay), except that, if such next succeeding Business Day is in the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day,
in each case with the same force and effect as if made on the date the payment was originally payable. 
 Payment of the principal, premium,
if any, and interest due at the Stated Maturity of, or on a redemption date for, the Senior Notes shall be made upon surrender of the Senior Notes at the Corporate Trust Office of the Trustee. The principal of and interest on the Senior Notes shall
be paid in Japanese yen. Payments of interest (including interest on any Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security register or (ii) by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least 15 days prior to
the date for payment by the Person entitled thereto. 
 Section 1.04 Denominations. The Senior Notes will be issued only in
denominations of ¥100,000,000 and integral multiples of ¥10,000,000 in excess thereof. 
 Section 1.05 Global
Securities. The Senior Notes will initially be represented by one or more fully registered global notes. Each such Senior Note will be deposited with, or on behalf of, a common depositary, and registered in the name of the nominee of the common
depositary for the accounts of Clearstream Banking, S.A. (“Clearstream”) and Euroclear Bank SA/NV (“Euroclear”). The Senior Notes may be held through Clearstream or Euroclear, either as a participant in such systems or
indirectly through organizations which are participants in such systems. Clearstream and Euroclear will hold interests in the Senior Notes on behalf of their respective participating organizations or customers through customers’ securities
accounts in Clearstream’s or Euroclear’s names on the books of their respective depositaries. Book-entry interests in the Senior Notes and all transfers relating to the Senior Notes will be reflected in the book-entry records of
Clearstream and Euroclear. 

  
 3 

 Owners of beneficial interests in such Global Securities will not be entitled to have the
Senior Notes registered in their names, will not receive or be entitled to receive physical delivery of the Senior Notes in definitive form and will not be considered the owners or holders of the notes under the Indenture, including for purposes of
receiving any reports delivered by the Company or the Trustee pursuant to the Indenture. Accordingly, each person owning a beneficial interest in a Senior Note must rely on the procedures of the depositary and, if such person is not a participant,
on the procedures of the participant through which such person owns its interest, in order to exercise any rights of a holder of the Senior Notes. 

Section 1.06 Transfer. No service charge will be made for any registration of transfer or exchange of Senior Notes, but payment
will be required of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 

Section 1.07 Defeasance. The provisions of Sections 10.4 and 10.5 of the Original Indenture will apply to the Senior Notes.

 Section 1.08 Additional Amounts. All payments of principal and interest in respect of the Senior Notes will be made free and
clear of, and without deduction or withholding for or on account of any present or future taxes, duties, assessments or other governmental charges of whatsoever nature imposed, levied, collected, withheld or assessed by the United States or any
political subdivision or taxing authority of or in the United States (collectively, “Taxes”), unless such withholding or deduction is required by law. 

In the event such withholding or deduction of Taxes is required by law, subject to the limitations described below, the Company will pay to
any Non-U.S. Holder such additional amounts (“Additional Amounts”) as may be necessary in order that every net payment of principal of or interest on the Senior Notes (including upon redemption),
after deduction or withholding for or on account of such Taxes, will not be less than the amount provided for in such Senior Notes to be then due and payable before deduction or withholding for or on account of such Taxes. 

However, the Company’s obligation to pay Additional Amounts shall not apply to: 

(a) any Taxes which would not have been so imposed, withheld or deducted but for: 

(1) the existence of any present or former connection between such holder or beneficial owner (or between a fiduciary, settlor, beneficiary,
member or shareholder or other equity owner of, or a person having a power over, such holder or beneficial owner, if such holder or beneficial owner is an estate, a trust, a limited liability company, a partnership, a corporation or other entity)
and the United States, including, without limitation, such holder or beneficial owner (or such fiduciary, settlor, beneficiary, member, shareholder or other equity owner or person having such a power) being or having been a citizen or resident or
treated as a resident of the United States or being or having been engaged in a trade or business in the United States or being or having been present in the United States or having or having had a permanent establishment in the United States; 

  
 4 

 (2) the failure of such holder or beneficial owner to comply with any applicable
certification, information, documentation or other reporting requirement concerning the nationality, residence, identity or connection with the United States of such holder or beneficial owner or otherwise to establish entitlement to a partial or
complete exemption from such Taxes (including, but not limited to, the requirement to provide Internal Revenue Service Form W-8BEN,
Form W-8BEN-E, Form W-8ECI, or any subsequent versions thereof or successor thereto, and including, without limitation,
any documentation requirement under an applicable income tax treaty); or 
 (3) such holder’s or beneficial owner’s present or
former status as a personal holding company, foreign personal holding company, controlled foreign corporation, passive foreign investment company or foreign tax exempt organization with respect to the United States or as a corporation that
accumulates earnings to avoid United States federal income tax; 
 (b) any Taxes imposed, withheld or deducted by reason of the holder or
beneficial owner: 
 (1) owning or having owned, directly or indirectly, actually or constructively, 10% or more of the total combined voting
power of all classes of the Company’s stock, 
 (2) being a bank receiving interest described in section 881(c)(3)(A) of the Internal
Revenue Code, or 
 (3) being a controlled foreign corporation with respect to the United States that is related to the Company by stock
ownership; 
 (c) any Taxes which would not have been so imposed, withheld or deducted but for the presentation by the holder or beneficial
owner of Senior Note for payment on a date more than 10 days after the date on which such payment became due and payable or the date on which payment of the Senior Note is duly provided for and notice is given to holders, whichever occurs
later, except to the extent that the holder or beneficial owner would have been entitled to such additional amounts on presenting such Senior Note on any date during such 10-day period; 

(d) any estate, inheritance, gift, sales, transfer, capital gains, personal property, excise, wealth, interest equalization or similar Taxes;

 (e) any Taxes which are payable otherwise than by withholding from any payment of principal of or interest on such Senior Note; 

(f) any Taxes which are payable by a holder that is not the beneficial owner of the Senior Note, or a portion of the Senior Note, or that is a
fiduciary, partnership, limited liability company or other similar entity, but only to the extent that a beneficial owner, a beneficiary or settlor with respect to such fiduciary or member of such partnership, limited liability company or similar
entity would not have been entitled to the payment of an additional amount had such beneficial owner, settlor, beneficiary or member received directly its beneficial or distributive share of the payment; 

(g) any Taxes required to be withheld by any paying agent from any payment of principal of or interest on any Senior Note, if such payment can
be made without such withholding by any other paying agent; 

  
 5 

 (h) any Taxes that would not have been imposed, withheld or deducted but for a change in any
law, treaty, regulation, or administrative or judicial interpretation that becomes effective after the applicable payment becomes due or is duly provided for, whichever occurs later, to the extent such change in law, treaty, regulation or
administrative interpretation would apply retroactively to such payment; 
 (i) any Taxes imposed, withheld or deducted under
Sections 1471 through 1474 of the Internal Revenue Code (or any amended or successor provisions that are substantively comparable) and any current or future regulations or official interpretations thereof (“FATCA”), any agreement
(including any intergovernmental agreement) entered into in connection therewith, or any law, regulation or other official guidance enacted in any jurisdiction implementing FATCA or an intergovernmental agreement in respect of FATCA; or 

(j) any combination of items (a), (b), (c), (d), (e), (f), (g), (h) and (i). 

For purposes of this section, the acquisition, ownership, enforcement or holding of or the receipt of any payment with respect to a Senior
Note will not constitute a connection (1) between the holder or beneficial owner and the United States or (2) between a fiduciary, settlor, beneficiary, member or shareholder or other equity owner of, or a person having a power over, such
holder or beneficial owner if such holder or beneficial owner is an estate, a trust, a limited liability company, a partnership, a corporation or other entity and the United States. 

Any reference in the Indenture or in the Senior Notes to principal or interest shall be deemed to refer also to Additional Amounts which may
be payable under the provisions of this section. 
 Except as specifically provided in the Senior Notes, the Company will not be required to
make any payment with respect to any tax, duty, assessment or other governmental charge imposed by any government or any political subdivision or taxing authority of or in any government or political subdivision. 

Section 1.09 Tax Redemption. Except as provided below, the Senior Notes may not be redeemed prior to the Stated Maturity. Unless
previously redeemed or repurchased and canceled, the Senior Notes will be repayable at par, including Additional Amounts, if any, on October 18, 2030, or such earlier date on which the same shall be due and payable in accordance with the terms
and conditions of the notes. However, if the Stated Maturity is not a Business Day, the Senior Notes will be payable on the next succeeding Business Day and no interest shall accrue for the period from the Stated Maturity to such payment date. 

The Senior Notes may be redeemed at the option of the Company, in whole but not in part, at a redemption price equal to 100% of the principal
amount of the Senior Notes to be redeemed, together with interest accrued and unpaid on the Senior Notes to be redeemed to, but excluding, the date fixed for redemption, at any time, on giving not less than 30 nor more than 60 days’ notice
if: 
 (a) the Company has or will become obligated to pay Additional Amounts as a result of any change in or amendment to the laws,
regulations or rulings of the United States or any political subdivision or any taxing authority of or in the United States affecting taxation, or any change in or amendment to an official application, interpretation, administration or enforcement
of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after October 12, 2018, or 

  
 6 

 (b) any action shall have been taken by a taxing authority, or any action has been brought
in a court of competent jurisdiction, in the United States or any political subdivision or taxing authority of or in the United States, including any of those actions specified in (a) above, whether or not such action was taken or brought with
respect to the Company, or any change, clarification, amendment, application or interpretation of such laws, regulations or rulings shall be officially proposed, in any such case on or after October 12, 2018, which results in a substantial
likelihood that the Company will be required to pay Additional Amounts on the next interest payment date. 
 However, no such notice of
redemption shall be given earlier than 90 days prior to the earliest date on which the Company would be, in the case of a redemption for the reasons specified in (a) above, or there would be a substantial likelihood that the Company would
be, in the case of a redemption for the reasons specified in (b) above, obligated to pay such Additional Amounts if a payment in respect of the notes were then due and at the time such notification of redemption is given such circumstance
remains in effect. 
 Prior to the mailing of any notice of redemption pursuant to this section, the Company will deliver to the Trustee:

 (1) a certificate signed by one of its duly authorized officers stating that the Company is entitled to effect such redemption and setting
forth a statement of facts showing that the conditions precedent to the Company’s right so to redeem have occurred, and 
 (2) a written
opinion of independent legal counsel of recognized standing to the effect that the Company has or will become obligated to pay such Additional Amounts as a result of such change or amendment or that there is a substantial likelihood that the Company
will be required to pay such Additional Amounts as a result of such action or proposed change, clarification, amendment, application or interpretation, as the case may be. 

Such notice, once delivered by the Company to the Trustee, will be irrevocable. 

Section 1.10 Further Issues. The Company may from time to time, without notice to or the consent of the registered holders of
Senior Notes, create and issue further notes ranking equally with the Senior Notes in all respects. Such further notes may be consolidated and form a single series with the Senior Notes and have the same terms as to status, redemption or otherwise
as the notes (other than the issue date of such further notes and first payment of interest following the issue date of such further Senior Notes); provided that such additional Senior Notes are fungible for United States Federal income tax purposes
with any then-existing Senior Notes. 

  
 7 

 ARTICLE II 

MISCELLANEOUS PROVISIONS 

Section 2.01 Recitals by the Company. The recitals in this Fifteenth Supplemental Indenture are made by the Company only and not
by the Trustee, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Fifteenth Supplemental Indenture or of the Senior Notes. The Trustee shall not be
accountable for the use or application by the Company of the Senior Notes or the proceeds thereof. All of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be
applicable in respect of the Senior Notes and of this Fifteenth Supplemental Indenture as fully and with like effect as if set forth herein in full. 

Section 2.02 Ratification and Incorporation of Original Indenture. As supplemented hereby, the Original Indenture is in all
respects ratified and confirmed, and the Original Indenture and this Fifteenth Supplemental Indenture shall be read, taken and construed as one and the same instrument. 

Section 2.03 Executed in Counterparts. This Fifteenth Supplemental Indenture may be simultaneously executed in several
counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument. 

Section 2.04 New York Law to Govern. This Fifteenth Supplemental Indenture and each Senior Note shall be deemed to be a contract
under the laws of the state of New York, and for all purposes shall be construed in accordance with the laws of such state, except as may be required by mandatory provisions of law. 

  
 8 

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

					
	AFLAC INCORPORATED,
	as Issuer
		
	By:	 	 /s/ Frederick J. Crawford

		 	Name:	 	Frederick J. Crawford
		 	Title:	 	Executive Vice President and
		 		 	Chief Financial Officer

 [Signature Page to Supplemental Indenture] 

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

					
	THE BANK OF NEW YORK MELLON
	TRUST COMPANY, N.A.,
	as Trustee
		
	By:	 	 /s/ Karen Yu

		 	Name:	 	Karen Yu
		 	Title:	 	Vice President

 [Signature Page to Supplemental Indenture] 

 Exhibit A 

1.159% Senior Note due 2030 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE FIFTEENTH SUPPLEMENTAL INDENTURE TO THE ORIGINAL INDENTURE HEREINAFTER REFERRED TO.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, SA/NV, AS OPERATOR OF THE EUROCLEAR SYSTEM (“EUROCLEAR”) AND CLEARSTREAM BANKING, S.A. (“CLEARSTREAM” AND, TOGETHER WITH EUROCLEAR,
“EUROCLEAR/CLEARSTREAM”), TO AFLAC INCORPORATED OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS MADE TO THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
EUROCLEAR/CLEARSTREAM), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED, HAS AN INTEREST HEREIN. 

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

  
 A-1 

 No. 1 

CUSIP No. 001055 AV4 
 ISIN No.
XS1892836104 
 AFLAC INCORPORATED 

1.159% Senior Notes due 2030 
  

			
	Principal Amount:	  	¥29,300,000,000
		
	Regular Record Date:	  	with respect to each Interest Payment Date, the close of business on April 4 or October 4 immediately preceding such Interest Payment Date
		
	Original Issue Date:	  	October 18, 2018
		
	Stated Maturity:	  	October 18, 2030
		
	Interest Payment Dates:	  	April 18 and October 18, commencing on April 18, 2019
		
	Interest Rate:	  	1.159% per year
		
	Authorized Denomination:	  	¥100,000,000 and integral multiples of ¥10,000,000 in excess thereof

 Aflac Incorporated, a Georgia corporation (the “Company,” which term includes any successor
corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to The Bank of New York Depository (Nominees) Limited, the registered holder hereof, as nominee of The Bank of New York Mellon, London
Branch, as common depositary for Euroclear/Clearstream, or registered assigns, the principal sum of TWENTY NINE BILLION THREE HUNDRED MILLION JAPANESE YEN (¥29,300,000,000) on the Stated Maturity shown above, and to pay interest thereon, and on
any overdue installment of interest thereon to the extent permitted by law, from the most recent Interest Payment Date on which interest has been paid or duly provided for or, if no interest has been paid, from the Original Issue Date shown
above, semi-annually in arrears on each Interest Payment Date as specified above, commencing on April 18, 2019, and on the Stated Maturity at the rate per year shown above until the principal hereof or such overdue installment is paid or made
available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an Interest Payment Date that is the Stated Maturity) will, as provided in the Indenture, be paid to the Person in
whose name this Note (as defined on the reverse hereof) is registered at the close of business on the Regular Record Date as specified above next preceding such Interest Payment Date, provided that any interest payable at the Stated Maturity or on a
redemption date will be paid to the Person to whom principal is payable. Except as otherwise provided in the Indenture, any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the holders on such
Regular Record Date and may be paid as provided in Section 2.7 of the Original Indenture. 

  
 A-2 

 Payments of interest on this Note (as defined on the reverse hereof) will include interest
accrued to but excluding the respective Interest Payment Dates. Interest payments for this Note shall be computed and paid on the basis of a 360-day year consisting of twelve
30-day months. In the event that any date on which interest is payable on this Note is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a
Business Day (and without any interest or other payment in respect of any such delay), except that, if such next succeeding Business Day is in the next succeeding calendar year, payment shall be made on the immediately preceding Business Day, in
each case with the same force and effect as if made on the date the payment was originally payable. For the purposes of this Note, “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day in which banking
institutions in the City of New York, Tokyo, or London are authorized and obligated by law, regulation or executive order to close. 

Payment of the principal, premium, if any, and interest due at the Stated Maturity of, or on a redemption date for, this Note shall be made
upon surrender of this Note at the Corporate Trust Office of the Trustee. The principal of and interest on this Note shall be paid in Japanese yen. Payment of interest (including interest on an Interest Payment Date) will be made, subject to such
surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security register or (ii) by wire transfer at such place and to such account at
a banking institution as may be designated in writing to the Trustee at least 15 days prior to the date for payment by the Person entitled thereto. 

The Senior Notes (as defined on the reverse hereof) will be unsecured obligations of the Company and will rank equally in right of payment
with all the other unsecured, unsubordinated indebtedness of the Company from time to time outstanding. The Senior Notes will rank senior to any subordinated indebtedness of the Company. 

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. 
 Unless the certificate of authentication hereon has been executed by the
Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 A-3 

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

 

			
	AFLAC INCORPORATED,
	as Issuer
		
	By:	 	  

		 	Name:
		 	Title:

  

	
	 Attest:
  

 

	Name:
	Title:

  
 A-4 

 CERTIFICATE OF AUTHENTICATION 

This is one of the 1.159% Senior Notes due 2030 referred to in the within-mentioned Indenture. 

 

							
		 		 	THE BANK OF NEW YORK MELLON
		 		 	TRUST COMPANY, N.A.
		 		 	as Trustee
				
	Dated: October 18, 2018	 		 	By:	 	  

		 		 		 	Authorized Signatory

  
 A-5 

 (Reverse Side of Note) 

This note (the “Note”) represents one of a duly authorized issue of senior notes of the Company issued and issuable in one or more
series under a Senior Indenture dated as of May 21, 2009 (the “Original Indenture”), as supplemented by the Fifteenth Supplemental Indenture dated as of October 18, 2018 (the “Fifteenth Supplemental Indenture” and,
together with the Original Indenture, the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which
Indenture and all indentures incidental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the holders of the Senior Notes (as defined
below) issued thereunder and of the terms upon which said Senior Notes are, and are to be, authenticated and delivered. The Securities represented by this Note are one of the series designated on the face hereof as 1.159% Senior Notes due 2030 (the
“Senior Notes”), initially limited in aggregate principal amount to ¥29,300,000,000; provided, however, that the aggregate principal amount of the Senior Notes may be increased in the future, without the consent of the holders of the
Senior Notes, as provided in the Fifteenth Supplemental Indenture. Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture. 

This Note is exchangeable in whole or from time to time in part for Senior Notes of this series in definitive registered form only as provided
in the Indenture. 
 If an Event of Default with respect to the Senior Notes shall occur and be continuing, the principal of the Senior
Notes may be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture. 
 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 rights of the holders of the Senior Notes under the Indenture at any time by the Company
and the Trustee with the consent of the holders of not less than a majority in aggregate principal amount of the Senior Notes at the time Outstanding. The Indenture also contains provisions permitting the holders of specified percentages in
principal amount of the Senior Notes at the time Outstanding, on behalf of the holders of all Senior Notes, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders of this Note and of any Senior Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 
 The Indenture contains provisions for
defeasance at any time of (i) the entire indebtedness of the Company pursuant to this Note and (ii) restrictive covenants and the related Events of Default, upon compliance by the Company with certain conditions set forth therein, which
provisions apply to this Note. 
 All payments of principal and interest in respect of the Senior Notes will be made free and clear of, and
without deduction or withholding for or on account of any present or future taxes, duties, assessments or other governmental charges of whatsoever nature imposed, levied, collected, withheld or assessed by the United States or any political
subdivision or taxing authority of or in the United States (collectively, “Taxes”), unless such withholding or deduction is required by law. 

  
 A-6 

 In the event such withholding or deduction of Taxes is required by law, subject to the
limitations described below, the Company will pay to any Non-U.S. Holder such additional amounts (“Additional Amounts”) as may be necessary in order that every net payment of principal of or interest
on the Senior Notes (including upon redemption), after deduction or withholding for or on account of such Taxes, will not be less than the amount provided for in such Senior Notes to be then due and payable before deduction or withholding for or on
account of such Taxes. 
 However, the Company’s obligation to pay Additional Amounts shall not apply to: 

(a) any Taxes which would not have been so imposed, withheld or deducted but for: 

(1) the existence of any present or former connection between such holder or beneficial owner (or between a fiduciary, settlor, beneficiary,
member or shareholder or other equity owner of, or a person having a power over, such holder or beneficial owner, if such holder or beneficial owner is an estate, a trust, a limited liability company, a partnership, a corporation or other entity)
and the United States, including, without limitation, such holder or beneficial owner (or such fiduciary, settlor, beneficiary, member, shareholder or other equity owner or person having such a power) being or having been a citizen or resident or
treated as a resident of the United States or being or having been engaged in a trade or business in the United States or being or having been present in the United States or having or having had a permanent establishment in the United States; 

(2) the failure of such holder or beneficial owner to comply with any applicable certification, information, documentation or other reporting
requirement concerning the nationality, residence, identity or connection with the United States of such holder or beneficial owner or otherwise to establish entitlement to a partial or complete exemption from such Taxes (including, but not limited
to, the requirement to provide Internal Revenue Service Form W-8BEN, Form W-8BEN-E,
Form W-8ECI, or any subsequent versions thereof or successor thereto, and including, without limitation, any documentation requirement under an applicable income tax treaty); or 

(3) such holder’s or beneficial owner’s present or former status as a personal holding company, foreign personal holding company,
controlled foreign corporation, passive foreign investment company or foreign tax exempt organization with respect to the United States or as a corporation that accumulates earnings to avoid United States federal income tax; 

(b) any Taxes imposed, withheld or deducted by reason of the holder or beneficial owner: 

(1) owning or having owned, directly or indirectly, actually or constructively, 10% or more of the total combined voting power of all classes
of the Company’s stock, 

  
 A-7 

 (2) being a bank receiving interest described in section 881(c)(3)(A) of the Internal
Revenue Code, or 
 (3) being a controlled foreign corporation with respect to the United States that is related to the Company by stock
ownership; 
 (c) any Taxes which would not have been so imposed, withheld or deducted but for the presentation by the holder or beneficial
owner of Senior Note for payment on a date more than 10 days after the date on which such payment became due and payable or the date on which payment of the Senior Note is duly provided for and notice is given to holders, whichever occurs
later, except to the extent that the holder or beneficial owner would have been entitled to such additional amounts on presenting such Senior Note on any date during such 10-day period; 

(d) any estate, inheritance, gift, sales, transfer, capital gains, personal property, excise, wealth, interest equalization or similar Taxes;

 (e) any Taxes which are payable otherwise than by withholding from any payment of principal of or interest on such Senior Note; 

(f) any Taxes which are payable by a holder that is not the beneficial owner of the Senior Note, or a portion of the Senior Note, or that is a
fiduciary, partnership, limited liability company or other similar entity, but only to the extent that a beneficial owner, a beneficiary or settlor with respect to such fiduciary or member of such partnership, limited liability company or similar
entity would not have been entitled to the payment of an additional amount had such beneficial owner, settlor, beneficiary or member received directly its beneficial or distributive share of the payment; 

(g) any Taxes required to be withheld by any paying agent from any payment of principal of or interest on any Senior Note, if such payment can
be made without such withholding by any other paying agent; 
 (h) any Taxes that would not have been imposed, withheld or deducted but for a
change in any law, treaty, regulation, or administrative or judicial interpretation that becomes effective after the applicable payment becomes due or is duly provided for, whichever occurs later, to the extent such change in law, treaty, regulation
or administrative interpretation would apply retroactively to such payment; 
 (i) any Taxes imposed, withheld or deducted under
Sections 1471 through 1474 of the Internal Revenue Code (or any amended or successor provisions that are substantively comparable) and any current or future regulations or official interpretations thereof (“FATCA”), any agreement
(including any intergovernmental agreement) entered into in connection therewith, or any law, regulation or other official guidance enacted in any jurisdiction implementing FATCA or an intergovernmental agreement in respect of FATCA; or 

(j) any combination of items (a), (b), (c), (d), (e), (f), (g), (h) and (i). 

  
 A-8 

 For purposes of this section, the acquisition, ownership, enforcement or holding of or the
receipt of any payment with respect to a Senior Note will not constitute a connection (1) between the holder or beneficial owner and the United States or (2) between a fiduciary, settlor, beneficiary, member or shareholder or other equity
owner of, or a person having a power over, such holder or beneficial owner if such holder or beneficial owner is an estate, a trust, a limited liability company, a partnership, a corporation or other entity and the United States. 

Any reference in the Indenture or in the Senior Notes to principal or interest shall be deemed to refer also to Additional Amounts which may
be payable under the provisions of this section. 
 Except as specifically provided in the Senior Notes, the Company will not be required to
make any payment with respect to any tax, duty, assessment or other governmental charge imposed by any government or any political subdivision or taxing authority of or in any government or political subdivision. 

Except as provided below, the Senior Notes may not be redeemed prior to the Stated Maturity. Unless previously redeemed or repurchased and
canceled, the Senior Notes will be repayable at par, including Additional Amounts, if any, on October 18, 2030, or such earlier date on which the same shall be due and payable in accordance with the terms and conditions of the notes. However,
if the Stated Maturity is not a business day, the Senior Notes will be payable on the next succeeding business day and no interest shall accrue for the period from the Stated Maturity to such payment date. 

The Senior Notes may be redeemed at the option of the Company, in whole but not in part, at a redemption price equal to 100% of the principal
amount of the Senior Notes to be redeemed, together with interest accrued and unpaid on the Senior Notes to be redeemed to, but excluding, the date fixed for redemption, at any time, on giving not less than 30 nor more than 60 days’ notice
if: 
 (a) the Company has or will become obligated to pay Additional Amounts as a result of any change in or amendment to the laws,
regulations or rulings of the United States or any political subdivision or any taxing authority of or in the United States affecting taxation, or any change in or amendment to an official application, interpretation, administration or enforcement
of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after October 12, 2018 or 
 (b)
any action shall have been taken by a taxing authority, or any action has been brought in a court of competent jurisdiction, in the United States or any political subdivision or taxing authority of or in the United States, including any of those
actions specified in (a) above, whether or not such action was taken or brought with respect to the Company, or any change, clarification, amendment, application or interpretation of such laws, regulations or rulings shall be officially
proposed, in any such case on or after October 12, 2018, which results in a substantial likelihood that the Company will be required to pay Additional Amounts on the next interest payment date. However, no such notice of redemption shall be
given earlier than 90 days prior to the earliest date on which the Company would be, in the case of a redemption for the reasons specified in (a) above, or there would be a substantial likelihood that the Company would be, in the case of a
redemption for the reasons specified in (b) above, obligated to pay such Additional Amounts if a payment in respect of the notes were then due and at the time such notification of redemption is given such circumstance remains in effect. 

  
 A-9 

 Prior to the mailing of any notice of redemption pursuant to this section, the Company will
deliver to the Trustee: 
 (1) a certificate signed by one of its duly authorized officers stating that the Company is entitled to effect
such redemption and setting forth a statement of facts showing that the conditions precedent to the Company’s right so to redeem have occurred, and 

(2) a written opinion of independent legal counsel of recognized standing to the effect that the Company has or will become obligated to pay
such Additional Amounts as a result of such change or amendment or that there is a substantial likelihood that the Company will be required to pay such Additional Amounts as a result of such action or proposed change, clarification, amendment,
application or interpretation, as the case may be. 
 Such notice, once delivered by the Company to the Trustee, will be irrevocable. 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on this Note at the time, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security
register, upon surrender of this Note for registration of transfer at the office or agency of the Company for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company or the Security
registrar and duly executed by, the holder hereof or his attorney duly authorized in writing, and thereupon one or more new Senior Notes, of authorized denominations and of like tenor and for the same aggregate principal amount, will be issued to
the designated transferee or transferees. No service charge shall be made for any such exchange or registration of transfer, but the Company will require payment of a sum sufficient to cover any tax or other governmental charge payable in connection
therewith. 
 Prior to due presentment of this Note for registration of transfer, the Company, the Trustee, any Person authorized by the
Company to pay the principal of or any premium or interest on any Senior Note on behalf of the Company (a “Paying Agent”) and the Security registrar may deem and treat the Person in whose name this Note is registered as the absolute owner
hereof for all purposes, whether or not this Note be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the Security registrar, and neither the Company nor the Trustee nor any Paying Agent nor the
Security registrar shall be affected by notice to the contrary. 
 The Senior Notes are issuable only in registered form without coupons in
denominations of ¥100,000,000 and integral multiples of ¥10,000,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Senior Notes are exchangeable for a like aggregate principal amount of
Senior Notes of a different authorized denomination, as requested by the holder surrendering the same upon surrender of the Senior Note or Senior Notes to be exchanged at the office or agency of the Company. 

  
 A-10 

 No recourse shall be had for payment of the principal of or interest on this Note, or for
any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture, against any incorporator, as such or against any past, present or future shareholder, officer or director, as such, of the Company or of any
successor, either directly or through the Company or any successor, under any rule, law statute or constitutional provision, or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being
expressly waived and released, by the acceptance hereof and as part of the consideration for the issuance hereof. 
 Unless the certificate
of authentication hereon has been executed by the Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

This Note shall be governed by, and construed in accordance with, the internal laws of the state of New York. 

  
 A-11 

 ABBREVIATIONS 

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

			
	TEN COM – as tenants in common	  	 UNIF GIFT MIN ACT – Custodian under Uniform Gift to Minors Act

 

		  	(State)
	TEN ENT – as tenants by the entireties	  	
		
	JT TEN – as joint tenants with rights of survivorship and not as tenants in common	  	CUST – Custodian

 Additional abbreviations may also be used 

though not on the above list. 
 FOR VALUE
RECEIVED, the undersigned hereby sell(s) and transfer(s) unto 
 PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE 

 
  
  

 
 (please insert Social Security or other identifying
number of assignee) 
 the within Note and all rights thereunder, hereby irrevocably constituting and appointing 

 
  
  

 
  

 
 agent to transfer said Note on the books of the
Company, with full power of substitution in the premises. 
  

			
	Dated:	  	  

		  	  

		  	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement, or any change whatever.

  
 A-12 

 Exhibit B 

CERTIFICATE OF AUTHENTICATION 
 This is one of
the 1.159% Senior Notes due 2030 referred to in the within-mentioned Indenture. 
  

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

		 		 		 	Authorized Signatory

  
 B-1

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