Document:

Exhibit 4.2

 

EXECUTION VERSION

 

 

 

 

REGISTRATION RIGHTS AGREEMENT

 

 

Dated as of May 31, 2017

by and among

 

COEUR MINING, INC.

THE GUARANTORS LISTED ON SCHEDULE I HERETO

 

 

and

 

 

GOLDMAN SACHS & CO. LLC

 

This Registration Rights Agreement (this “Agreement”) is made and entered into as of May 31, 2017, by and among Coeur Mining, Inc., a Delaware corporation (the “Company”), the guarantors listed on Schedule I hereto (the “Guarantors”) and Goldman Sachs & Co. LLC, as initial purchaser (the “Initial Purchaser”), who has agreed to purchase the Company’s 5.875% Senior Notes due 2024 (the “Initial Notes”) pursuant to the Purchase Agreement (as defined below).

 

This Agreement is made pursuant to the Purchase Agreement, dated May 19, 2017 (the “Purchase Agreement”), by and among the Company, the Guarantors and the Initial Purchaser. In order to induce the Initial Purchaser to purchase the Initial Notes, the Company and the Guarantors have agreed to provide the registration rights set forth in this Agreement. The execution and delivery of this Agreement is a condition to the obligations of the Initial Purchaser set forth in Section 7 of the Purchase Agreement. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the Indenture, dated as of May 31, 2017, among the Company, the Guarantors and The Bank of New York Mellon, as trustee, relating to the Initial Notes and the Exchange Notes (as amended or supplemented from time to time, the “Indenture”).

 

The parties hereby agree as follows:

 

	SECTION 1.	DEFINITIONS

 

As used in this Agreement, the following capitalized terms shall have the following meanings:

 

Act: The Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

Affiliate: As defined in Rule 144 of the Act.

 

Broker-Dealer: Any broker or dealer registered under the Exchange Act.

 

Business Day: Any day other than a Saturday, a Sunday or a day on which banking institutions in the City of New York or at a place of payment are authorized by law, regulation or executive order to remain closed.

 

Closing Date: The date hereof.

 

Commission: The Securities and Exchange Commission.

 

Consummate: An Exchange Offer shall be deemed “Consummated” for purposes of this Agreement upon the occurrence of (a) the filing and effectiveness under the Act of the Exchange Offer Registration Statement relating to the Exchange Notes to be issued in the Exchange Offer, (b) the maintenance of such Exchange Offer Registration Statement continuously effective and the keeping of the Exchange Offer open for a period not less than the period required pursuant to Section 3(b) hereof, and (c) the delivery by the Company to the Registrar under the Indenture of Exchange Notes in the same aggregate principal amount as the aggregate principal amount of Initial Notes tendered by Holders thereof pursuant to the Exchange Offer.

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Entitled Securities: Each Initial Note until the earliest to occur of (a) the date on which such Initial Note has been exchanged by a Person other than a Broker-Dealer for an Exchange Note in the Exchange Offer, (b) following the exchange by a Broker-Dealer in the Exchange Offer of an Initial Note for an Exchange Note, the date on which such Exchange Note is sold to a purchaser who receives from such Broker-Dealer on or prior to the date of such sale a copy of the Prospectus contained in the Exchange Offer Registration Statement, (c) the date on which such Initial Note has been effectively registered under the Act and disposed of in accordance with the Shelf Registration Statement, or (d) the date on which such Initial Note is actually sold pursuant to Rule 144 under the Act.

 

Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

Exchange Notes: The Company’s 5.875% Senior Notes due 2024 to be issued pursuant to the Indenture: (i) in the Exchange Offer or (ii) as contemplated by Section 4 hereof.

 

Exchange Notes Issue Deadline: As defined in Section 3(a) hereof.

 

Exchange Offer: The exchange and issuance by the Company of a principal amount of Exchange Notes (which shall be registered pursuant to the Exchange Offer Registration Statement) equal to the outstanding principal amount of Initial Notes that are validly tendered and not withdrawn by such Holders in connection with such exchange and issuance.

 

Exchange Offer Consummation Deadline: As defined in Section 3(a) hereof.

 

Exchange Offer Registration Statement: The Registration Statement relating to the Exchange Offer, including the related Prospectus.

 

Free Writing Prospectus: Each offer to sell or solicitation of an offer to buy the Initial Notes or the Exchange Notes that would constitute a “free writing prospectus” as defined in Rule 405 under the Act, prepared by or on behalf of the Company or used or referred to by the Company in connection with the sale of the Initial Notes or the Exchange Notes.

 

Holders: As defined in Section 2 hereof.

 

Interest Payment Date: As defined in the Initial Notes and Exchange Notes.

 

Person: An individual, trustee, corporation, partnership, limited liability company, joint stock company, trust, unincorporated association, union, business association, firm or other legal entity.

 

Prospectus: The prospectus included in a Registration Statement at the time such Registration Statement is declared effective, as amended or supplemented by any prospectus supplement and by all other amendments thereto, including post-effective amendments, and all material incorporated by reference into such Prospectus.

 

Recommencement Date: As defined in Section 6(d) hereof.

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Registration Default: As defined in Section 5 hereof.

 

Registration Statement: Any registration statement of the Company and the Guarantors relating to (a) an offering of Exchange Notes pursuant to an Exchange Offer or (b) the registration for resale of Entitled Securities pursuant to the Shelf Registration Statement, in each case, (i) that is filed pursuant to the provisions of this Agreement, (ii) including the Prospectus included therein, and (iii) including all amendments and supplements thereto (including post-effective amendments) and all exhibits and material incorporated by reference therein.

 

Rule 144: Rule 144 promulgated under the Act.

 

Shelf Effectiveness Deadline: As defined in Section 4(a) hereof.

 

Shelf Filing Deadline: As defined in Section 4(a) hereof.

 

Shelf Filing Trigger Date: As defined in Section 4(a) hereof.

 

Shelf Registration Statement: As defined in Section 4(a) hereof.

 

Special Interest: As defined in Section 5 hereof.

 

Suspension Notice: As defined in Section 6(d) hereof.

 

Target Registration Date: As defined in Section 3(a) hereof.

 

TIA: The Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb) as in effect on the date of the Indenture.

 

	SECTION 2. 	HOLDERS

 

A Person is deemed to be a holder of Entitled Securities (each, a “Holder”) whenever such Person owns Entitled Securities.

 

	SECTION 3. 	REGISTERED EXCHANGE OFFER

 

(a)                The Company and the Guarantors shall (i) cause the Exchange Offer Registration Statement to be filed with the Commission, (ii) use their commercially reasonable efforts to cause such Exchange Offer Registration Statement to become effective, (iii) in connection with the foregoing, (A) file all pre-effective amendments to such Exchange Offer Registration Statement as may be necessary in order to cause it to become effective, (B) file, if applicable, a post-effective amendment to such Exchange Offer Registration Statement, and (C) cause all necessary filings, if any, in connection with the registration and qualification of the Exchange Notes to be made under the Blue Sky laws of such jurisdictions as are necessary to permit Consummation of the Exchange Offer, and (iv) unless the Exchange Offer shall not be permitted by applicable law or Commission policy (after the procedures set forth in Section 6(a)(i) below have been complied with), upon the effectiveness of such Exchange Offer Registration Statement, (A) commence and Consummate the Exchange Offer on or prior to November 27, 2017 (such date being the “Exchange Offer Consummation Deadline”) and (B) use their commercially reasonable efforts to issue on or prior to 35 Business Days, or longer, if required by applicable securities laws, after the date on which the Exchange Offer Registration Statement was declared effective by the Commission (such 35th Business Day, or such later date required by applicable securities laws, being the “Exchange Notes Issue Deadline”), Exchange Notes in exchange for all Initial Notes tendered prior thereto in the Exchange Offer. The Exchange Offer shall be on the appropriate form permitting (i) registration of the Exchange Notes to be offered in exchange for the Initial Notes that are Entitled Securities and (ii) resales of Exchange Notes by Broker-Dealers that tendered into the Exchange Offer Initial Notes that such Broker-Dealer acquired for its own account as a result of market-making activities or other trading activities (other than Initial Notes acquired directly from the Company or any of its Affiliates) as contemplated by Section 3(c) below.

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(b)               The Company and the Guarantors shall use their commercially reasonable efforts to cause the Exchange Offer Registration Statement to be effective continuously, and shall keep the Exchange Offer open for a period of not less than the minimum period required under applicable federal and state securities laws to Consummate the Exchange Offer; provided, however, that in no event shall such period be less than 20 Business Days. The Company and the Guarantors shall cause the Exchange Offer to comply with all applicable federal and state securities laws. No securities other than the Exchange Notes shall be included in the Exchange Offer Registration Statement. 

 

(c)                The Company shall include a “Plan of Distribution” section in the Prospectus contained in the Exchange Offer Registration Statement and indicate therein that any Broker-Dealer who holds Entitled Securities that were acquired for the account of such Broker-Dealer as a result of market-making activities or other trading activities (other than Initial Notes acquired directly from the Company or any Affiliate of the Company), may exchange such Entitled Securities pursuant to the Exchange Offer. Such “Plan of Distribution” section shall also contain all other information with respect to such sales by such Broker-Dealers that the Commission may require in order to permit such sales pursuant thereto, but such “Plan of Distribution” shall not name any such Broker-Dealer or disclose the amount of Entitled Securities held by any such Broker-Dealer, except to the extent required by the Commission as a result of a change in policy, rules or regulations after the date of this Agreement.

 

Because such Broker-Dealer may be deemed to be an “underwriter” within the meaning of the Act and must, therefore, deliver a prospectus meeting the requirements of the Act in connection with its initial sale of any Exchange Notes received by such Broker-Dealer in the Exchange Offer, the Company and Guarantors shall permit the use of the Prospectus contained in the Exchange Offer Registration Statement by such Broker-Dealer to satisfy such prospectus delivery requirement. To the extent necessary to ensure that the Prospectus contained in the Exchange Offer Registration Statement is available for sales of Exchange Notes by Broker-Dealers, the Company and the Guarantors agree to use their commercially reasonable efforts to keep the Exchange Offer Registration Statement continuously effective, supplemented, amended and current as required by and subject to the provisions of Sections 6(a) and (c) hereof and in conformity with the requirements of this Agreement, the Act and the policies, rules and regulations of the Commission as announced from time to time, for a period of 180 days from the Exchange Notes Issue Deadline or such shorter period as will terminate when all Entitled Securities covered by such Registration Statement have been sold pursuant thereto. The Company and the Guarantors shall provide sufficient copies of the latest version of such Prospectus to such Broker-Dealers, promptly upon request, and in no event later than two Business Days after such request, at any time during such period.

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	SECTION 4. 	SHELF REGISTRATION

 

(a)                Shelf Registration. If (i) the Company and the Guarantors are not (A) required to file the Exchange Offer Registration Statement or (B) permitted to Consummate the Exchange Offer because the Exchange Offer is not permitted by applicable law or Commission policy (after the Company and the Guarantors have complied with the procedures set forth in Section 6(a)(i) below) or (ii) any Holder notifies the Company prior to the 20th Business Day following Consummation of the Exchange Offer that (A) such Holder is prohibited by law or Commission policy from participating in the Exchange Offer, (B) such Holder may not resell the Exchange Notes acquired by it in the Exchange Offer to the public without delivering a prospectus and the Prospectus contained in the Exchange Offer Registration Statement is not appropriate or available for such resales by such Holder or (C) such Holder is a Broker-Dealer and holds Initial Notes acquired directly from the Company or any of its Affiliates, then the Company and the Guarantors, shall:

 

(x) use their commercially reasonable efforts on or prior to 30 days after the earlier of (i) the date as of which the Company determines that the Exchange Offer Registration Statement will not be or cannot be, as the case may be, filed as a result of clause (a)(i) above and (ii) the date on which the Company receives the notice specified in clause (a)(ii) above (such earlier date, the “Shelf Filing Trigger Date” and 30 days after a Shelf Filing Trigger Date, a “Shelf Filing Deadline”), to file a shelf registration statement pursuant to Rule 415 under the Act (which may be an amendment to the Exchange Offer Registration Statement (the “Shelf Registration Statement”)), covering the resale of all Entitled Securities, and

 

(y) use all commercially reasonable efforts to cause such Shelf Registration Statement to become effective on or prior to 90 days after the Shelf Filing Deadline for the Shelf Registration Statement (such 90th day the “Shelf Effectiveness Deadline”).

 

If, after the Company and the Guarantors have filed an Exchange Offer Registration Statement that satisfies the requirements of Section 3(a) above, the Company and the Guarantors are required to file and make effective a Shelf Registration Statement solely because the Exchange Offer is not permitted under applicable federal law (i.e., clause (a)(i)(B) above), then the filing of the Exchange Offer Registration Statement shall be deemed to satisfy the requirements of clause (x) above; provided that, in such event, the Company and the Guarantors shall remain obligated to meet the Shelf Effectiveness Deadline set forth in clause (y).

 

To the extent necessary to ensure that the Shelf Registration Statement is available for sales of Entitled Securities by the Holders thereof entitled to the benefit of this Section 4(a) and the other securities required to be registered therein pursuant to Section 6(b)(ii) hereof, the Company and the Guarantors shall use their commercially reasonable efforts to keep any Shelf Registration Statement required by this Section 4(a) continuously effective, supplemented, amended and current as required by and subject to the provisions of Sections 6(b) and 6(c) hereof and in conformity with the requirements of this Agreement, the Act and the policies, rules and regulations of the Commission as announced from time to time, for a period of at least two years (as extended pursuant to Section 6(d)) following the Closing Date, or such shorter period as will terminate when all Entitled Securities covered by such Shelf Registration Statement have been sold pursuant thereto or are no longer Entitled Securities.

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(b)               Provision by Holders of Certain Information in Connection with the Shelf Registration Statement. No Holder may include any of its Entitled Securities in any Shelf Registration Statement pursuant to this Agreement unless and until such Holder furnishes to the Company in writing, within 15 days after receipt of a request therefor, the information specified in Item 507 or 508 of Regulation S-K, as applicable, of the Act, or other information reasonably requested by the Company and required by Regulation S-K of the Act, for use in connection with any Shelf Registration Statement or Prospectus or preliminary Prospectus included therein. No Holder shall be entitled to Special Interest pursuant to Section 5 hereof unless and until (and from and after such time) such Holder shall have provided all such information. Each selling Holder agrees to promptly furnish additional information required to be disclosed in order to make the information previously furnished to the Company by such Holder not materially misleading and shall promptly supply such other information as the Company may from time to time reasonably request.

 

	SECTION 5.	SPECIAL INTEREST

 

If (i) the Exchange Offer is not Consummated on or prior to the Exchange Offer Consummation Deadline; (ii) the Company and the Guarantors fail to file any Shelf Registration Statement required by this Agreement on or before the Shelf Filing Deadline; (iii) any such Shelf Registration Statement is not declared effective by the Commission on or prior to the Shelf Effectiveness Deadline; (iv) the Company and the Guarantors fail to Consummate the Exchange Offer by the Exchange Notes Issue Deadline; or (v) the Shelf Registration Statement or the Exchange Offer Registration Statement is declared effective but thereafter ceases to be effective or usable in connection with resales of Entitled Securities during the periods specified in this Agreement (each such event referred to in clauses (i) through (v) above, a “Registration Default”), then the Company and the Guarantors hereby jointly and severally agree to pay to each Holder affected thereby special interest (“Special Interest”) at a rate of 0.25% per annum of the principal amount of Entitled Securities held by such Holder with respect to the first 90-day period immediately following the occurrence of such Registration Default. The rate of the Special Interest shall increase by an additional 0.25% per annum with respect to each subsequent 90-day period until all Registration Defaults have been cured, up to a maximum rate of Special Interest for all Registration Defaults of 1.0% per annum of the principal amount of the Entitled Securities outstanding. Notwithstanding anything to the contrary set forth herein, (1) upon Consummation of the Exchange Offer, in the case of clause (i) or (iv) above, (2) the filing of the Shelf Registration Statement, in the case of clause (ii) above, (3) upon the effectiveness of the Shelf Registration Statement, in the case of clause (iii) above, or (4) upon the filing of a post-effective amendment to the Registration Statement or an additional Registration Statement that causes the Exchange Offer Registration Statement (and/or, if applicable, the Shelf Registration Statement) to again be declared effective or made usable in the case of clause (v) above, the Special Interest payable with respect to the Entitled Securities as a result of such clause (i), (ii), (iii), (iv) or (v), as applicable, shall cease.

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All accrued Special Interest shall be paid by the Company and the Guarantors (or the Company and the Guarantors will cause the Paying Agent to make such payment on their behalf) to the Holders entitled thereto, in the manner provided for the payment of interest in the Indenture, on each Interest Payment Date, as more fully set forth in the Indenture, the Initial Notes and the Exchange Notes. Notwithstanding the fact that any securities for which Special Interest are due cease to be Entitled Securities, all obligations of the Company and the Guarantors to pay Special Interest with respect to securities that accrued prior to the time that such securities ceased to be Entitled Securities shall survive until such time as such obligations with respect to such securities shall have been satisfied in full.

 

	SECTION 6. 	REGISTRATION PROCEDURES

 

(a)                Exchange Offer Registration Statement. In connection with the Exchange Offer, the Company and the Guarantors shall (x) comply with all applicable provisions of Section 6(c) below, (y) use commercially reasonable efforts to effect such exchange and to permit the resale of Exchange Notes by Broker-Dealers that tendered in the Exchange Offer Initial Notes that such Broker-Dealer acquired for its own account as a result of its market-making activities or other trading activities (other than Initial Notes acquired directly from the Company or any of its Affiliates) being sold in accordance with the intended method or methods of distribution thereof, and (z) comply with all of the following provisions:

 

(i)                 If, following the date hereof there has been announced a change in Commission policy with respect to exchange offers such as the Exchange Offer, that in the reasonable opinion of counsel to the Company raises a substantial question as to whether the Exchange Offer is permitted by applicable federal law, the Company and the Guarantors hereby agree either to (x) seek a no-action letter or other favorable decision from the Commission allowing the Company and the Guarantors to Consummate an Exchange Offer for such Entitled Securities, or (y) file, in accordance with Section 4(a) hereof, a Shelf Registration Statement to permit the registration and/or resale of the Entitled Securities that would otherwise be covered by the Exchange Offer Registration Statement but for the announcement of a change in Commission policy. In the case of clause (x) above, the Company and the Guarantors hereby agree to pursue the issuance of such a decision to the Commission staff level but shall not be required to take action not commercially reasonable to affect a change of Commission policy. In connection with the foregoing, the Company and the Guarantors hereby agree to take all such other actions as may be requested by the Commission or otherwise required in connection with the issuance of such decision, including without limitation (A) participating in telephonic conferences with the Commission, (B) delivering to the Commission staff an analysis prepared by counsel to the Company setting forth the legal bases, if any, upon which such counsel has concluded that such an Exchange Offer should be permitted, and (C) diligently pursuing a resolution (which need not be favorable and which need not be a written resolution) by the Commission staff.

 

(ii)               As a condition to its participation in the Exchange Offer, each Holder (including, without limitation, any Holder who is a Broker-Dealer) shall furnish, upon the request of the Company, prior to the Consummation of the Exchange Offer, a written representation to the Company and the Guarantors (which may be contained in the letter of transmittal contemplated by the Exchange Offer Registration Statement) to the effect that (A) it is not an Affiliate of the Company, (B) it is not engaged in, and does not intend to engage in, and has no arrangement or understanding with any Person to participate in, a distribution of the Exchange Notes to be issued in the Exchange Offer, (C) it is acquiring the Exchange Notes in its ordinary course of business, and (D) only if such Holder is a Broker-Dealer that will receive Exchange Notes in exchange for Initial Notes that such Broker-Dealer acquired for its own private account as a result of market making or other trading activities, it will deliver a Prospectus, as required by law, in connection with any sale of such Exchange Notes. As a condition to its participation in the Exchange Offer each Holder using the Exchange Offer to participate in a distribution of the Exchange Notes shall acknowledge and agree that, if the resales are of Exchange Notes obtained by such Holder in exchange for Initial Notes acquired directly from the Company or an Affiliate thereof, it (1) could not, under Commission policy as in effect on the date of this Agreement, rely on the position of the Commission enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings Corporation (available May 13, 1988), as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993, and similar no-action letters (including, if applicable, any no-action letter obtained pursuant to clause (i) above), and (2) must comply with the registration and prospectus delivery requirements of the Act in connection with a secondary resale transaction and that such a secondary resale transaction must be covered by an effective registration statement containing the selling security holder information required by Item 507 or 508, as applicable, of Regulation S-K.

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(iii)             Prior to effectiveness of the Exchange Offer Registration Statement, the Company and the Guarantors shall provide a supplemental letter to the Commission (A) stating that the Company and the Guarantors are registering the Exchange Offer in reliance on the position of the Commission enunciated in Exxon Capital Holdings Corporation (available May 13, 1988), Morgan Stanley and Co., Inc. (available June 5, 1991) as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993, and, if applicable, any no-action letter obtained pursuant to clause (i) above, (B) including a representation that the Company and Guarantors have not entered into any arrangement or understanding with any Person to distribute the Exchange Notes to be received in the Exchange Offer and that, to the best of the Company’s and each Guarantor’s information and belief, each Holder participating in the Exchange Offer is acquiring the Exchange Notes in its ordinary course of business and has no arrangement or understanding with any Person to participate in the distribution of the Exchange Notes received in the Exchange Offer, and (C) any other undertaking or representation required by the Commission as set forth in any no-action letter obtained pursuant to clause (i) above, if applicable.

 

(b)               Shelf Registration Statement. In connection with the Shelf Registration Statement, the Company and the Guarantors shall:

 

(i)                 comply with all the provisions of Section 6(c) below and use commercially reasonable efforts to effect such registration to permit the sale of the Entitled Securities being sold in accordance with the intended method or methods of distribution thereof (as indicated in the information furnished to the Company pursuant to Section 4(b) hereof), and pursuant thereto the Company and the Guarantors will prepare and file with the Commission a Registration Statement relating to the registration on any appropriate form under the Act, which form shall be available for the sale of the Entitled Securities in accordance with the intended method or methods of distribution thereof within the time periods and otherwise in accordance with the provisions hereof, and

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(ii) issue to any Holder or purchaser of Initial Notes covered by any Shelf Registration Statement contemplated by this Agreement, upon the request of any such Holder or purchaser, registered Initial Notes having an aggregate principal amount equal to the aggregate principal amount of Initial Notes in the names as such Holder or purchaser shall designate.

 

(c)                General Provisions. In connection with any Registration Statement and any related Prospectus required by this Agreement, the Company and the Guarantors shall:

 

(i)                 use commercially reasonable efforts to keep such Registration Statement continuously effective and provide all requisite financial statements for the period specified in Section 3 or 4 of this Agreement, as applicable. Upon the occurrence of any event that would cause any such Registration Statement or the Prospectus contained therein (A) to contain an untrue statement of material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, or (B) not to be effective and usable for resale of Entitled Securities during the period required by this Agreement, the Company and the Guarantors shall file promptly an appropriate amendment to such Registration Statement curing such defect, and, if Commission review is required, use commercially reasonable efforts to cause such amendment to be declared effective as soon as practicable. 

 

(ii)               Prepare and file with the Commission such amendments and post-effective amendments to the applicable Registration Statement as may be necessary to keep such Registration Statement effective for the applicable period set forth in Section 3 or 4 hereof, as the case may be; cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Act, and to comply fully with Rules 424, 430A, and 462, as applicable, under the Act in a timely manner; and comply with the provisions of the Act with respect to the disposition of all securities covered by such Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the sellers thereof set forth in such Registration Statement or supplement to the Prospectus;

 

(iii)             advise (a) each Holder whose Entitled Securities have been included in a Shelf Registration Statement (in the case of a Shelf Registration Statement), and (b) each Holder who has provided notice to the Company promptly and, if requested by such Holder, confirm such advice in writing, (A) when the Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with respect to any applicable Registration Statement or any post-effective amendment thereto, when the same has become effective, (B) of any request by the Commission for amendments to the Registration Statement or amendments or supplements to the Prospectus or for additional information relating thereto, (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement under the Act or of the suspension by any state securities commission of the qualification of the Entitled Securities for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the preceding purposes, and (D) of the happening of any event that requires the Company to make changes in the Registration Statement or the Prospectus in order that the Registration Statement or the Prospectus, any amendment or supplement thereto or any document incorporated by reference therein do not contain an untrue statement of material fact nor omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus, in light of the circumstances under which they were made) not misleading. If at any time the Commission shall issue any stop order suspending the effectiveness of the Registration Statement, or any state securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the Entitled Securities under state securities or Blue Sky laws, the Company and the Guarantors shall use commercially reasonable efforts to obtain the withdrawal or lifting of such order at the earliest possible time;

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(iv)             subject to Section 6(d), if any fact or event contemplated by Section 6(c)(iii)(D) above shall exist or have occurred, prepare a supplement or post-effective amendment to the Registration Statement or related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of Entitled Securities, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

(v)               furnish to each Holder whose Entitled Securities have been included in a Shelf Registration Statement (in the case of a Shelf Registration Statement) in connection with such exchange, registration or sale, if any, before filing with the Commission, copies of any Registration Statement or any Prospectus included therein or any amendments or supplements to any such Registration Statement or Prospectus (including all documents incorporated by reference after the initial filing of such Registration Statement), which documents will be subject to the reasonable review and comment of such Holders in connection with such sale, if any, for a period of at least three Business Days, and the Company will not file any such Registration Statement or Prospectus or any amendment or supplement to any such Registration Statement or Prospectus (including all such documents incorporated by reference) to which such Holders shall reasonably object within three Business Days after the receipt thereof;

 

(vi)             make available, at reasonable times, for inspection by a representative of the Holders selected by the Holders of a majority in principal amount of Entitled Securities included in a Shelf Registration Statement (in the case of a Shelf Registration Statement) and any attorney or accountant retained by the Holders of a majority in principal amount of Entitled Securities included in such Shelf Registration Statement, all financial and other records, pertinent corporate documents of the Company and the Guarantors reasonably requested and cause the Company’s and the Guarantors’ officers, directors and employees to supply all information reasonably requested by any such representative, attorney or accountant in connection with such Registration Statement or any post-effective amendment thereto subsequent to the filing thereof and prior to its effectiveness; provided that any representative, attorney or accountant requesting or receiving such information shall agree to be bound by reasonable confidentiality agreements and procedures with respect thereto;

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(vii)           if requested by any Holders whose Entitled Securities have been included in a Shelf Registration Statement (in the case of a Shelf Registration Statement) in connection with such exchange, registration or sale, promptly include in any Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information with respect to such Holders as such Holders may reasonably request to have included therein, including, without limitation, information relating to the “Plan of Distribution” of the Entitled Securities and the use of the Registration Statement or Prospectus for market making activities; and make all required filings of such Prospectus supplement or post-effective amendment as soon as practicable after the Company is notified of the matters to be included in such Prospectus supplement or post-effective amendment;

 

(viii)         furnish to each Holder, upon written request, whose Entitled Securities have been included in a Shelf Registration Statement (in the case of a Shelf Registration Statement) in connection with such exchange, registration or sale, without charge, at least one copy of the Registration Statement, as first filed with the Commission, and of each amendment thereto, including all documents incorporated by reference therein and all exhibits (including exhibits incorporated therein by reference);

 

(ix)             deliver to each Holder whose Entitled Securities have been included in a Shelf Registration Statement (in the case of a Shelf Registration Statement) without charge, as many copies of the Prospectus (including each preliminary prospectus) and any amendment or supplement thereto as such Holders reasonably may request; the Company and the Guarantors hereby consent to the use (in accordance with law and subject to Section 6(d) hereof) of the Prospectus and any amendment or supplement thereto by each selling Holder in connection with the offering and the sale of the Entitled Securities covered by the Prospectus or any amendment or supplement thereto;

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(x)               enter into such agreements (including an underwriting agreement), and make such representations and warranties, and take all such other actions in connection therewith in order to expedite or facilitate the disposition of the Entitled Securities pursuant to any Registration Statement contemplated by this Agreement, all to such extent as may be customarily and reasonably requested by the Initial Purchaser or, in the case of registration for resale of Entitled Securities pursuant to the Shelf Registration Statement, by any Holder or Holders of Entitled Securities who hold at least 50% in aggregate principal amount of such class of Entitled Securities; provided, that, the Company and the Guarantors shall not be required to enter into any such agreement more than once with respect to all of the Entitled Securities and, in the case of a Shelf Registration Statement, may delay entering into such agreement if the Board of Directors of the Company determines in good faith that it is in the best interests of the Company and the Guarantors not to disclose the existence of or facts surrounding any proposed or pending material corporate transaction involving the Company and the Guarantors. In such connection, the Company and the Guarantors shall:

 

(A)        upon the request of any Holder, furnish (or in the case of paragraphs (2) and (3), use its commercially reasonable efforts to cause to be furnished) to each such Holder (in the case of the Shelf Registration Statement) and any underwriter, upon Consummation of the Exchange Offer or the effectiveness of the Shelf Registration Statement, as the case may be:

 

(1)          a certificate, dated such date, signed on behalf of the Company and each Guarantor by (x) the Chief Executive Officer or any Vice President, and (y) a principal financial or accounting officer of the Company and such Guarantor, confirming, as of the date thereof, such matters as such Holders may reasonably request;

 

(2)          an opinion, dated the date of Consummation of the Exchange Offer or the date of effectiveness of the Shelf Registration Statement, as the case may be, of counsel for the Company and the Guarantors in customary form and covering the matters customarily covered in opinions requested in underwritten offerings, including negative assurance; and

 

(3)          a customary comfort letter, dated the date of Consummation of the Exchange Offer, or as of the date of effectiveness of the Shelf Registration Statement, as the case may be, from the Company’s independent accountants, in the customary form and covering matters of the type customarily covered in comfort letters to underwriters in connection with underwritten offerings, and affirming the matters set forth in the comfort letters delivered pursuant to Section 7(f), (g) (h) and (i) of the Purchase Agreement; and

 

(B)         deliver such other documents and certificates as may be reasonably requested by the selling Holders to evidence compliance with the matters covered in clause (A) above and with any customary conditions contained in any agreement entered into by the Company and the Guarantors pursuant to this clause (xi);

 

(xi)             prior to any public offering of Entitled Securities, cooperate with the selling Holders and their counsel in connection with the registration and qualification of the Entitled Securities under the securities or Blue Sky laws of such jurisdictions as the selling Holders may request and do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Entitled Securities covered by the applicable Registration Statement; provided, however, that the Company and the Guarantors shall not be required to register or qualify as a foreign corporation where it is not now so qualified or to take any action that would subject it to the service of process in suits or to taxation, in any jurisdiction where it is not now so subject;

12

(xii)           in connection with any sale of Entitled Securities that will result in such securities no longer being Entitled Securities, cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Entitled Securities to be sold and not bearing any restrictive legends; and to register such Entitled Securities in such denominations and such names as the selling Holders may request at least two Business Days prior to such sale of Entitled Securities;

 

(xiii)         use commercially reasonable efforts to cause the disposition of the Entitled Securities covered by the Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the seller or sellers thereof to consummate the disposition of such Entitled Securities, subject to the proviso contained in clause (xii) above;

 

(xiv)         provide a CUSIP number for all Entitled Securities not later than the effective date of a Registration Statement covering such Entitled Securities and provide the Trustee under the Indenture with printed certificates for the Entitled Securities which are in a form eligible for deposit with the Depository Trust Company;

 

(xv)           otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make generally available to its security holders with regard to any applicable Registration Statement, as soon as practicable, a consolidated earnings statement meeting the requirements of Rule 158 under the Act (which need not be audited) covering a twelve-month period beginning after the effective date of the Registration Statement (as such term is defined in paragraph (c) of Rule 158 under the Act);

 

(xvi)         cause the Indenture to be qualified under the TIA not later than the effective date of the first Registration Statement required by this Agreement and, in connection therewith, cooperate with the Trustee and the Holders to effect such changes to the Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the TIA; and execute and use its commercially reasonable efforts to cause the Trustee to execute, all documents that may be required to effect such changes and all other forms and documents required to be filed with the Commission to enable such Indenture to be so qualified in a timely manner; and

 

(xvii)       provide promptly to each Holder, upon written request, each document filed with the Commission pursuant to the requirements of Section 13 or Section 15(d) of the Exchange Act.

13

(d)               Restrictions on Holders. Each Holder agrees by acquisition of an Entitled Security that, upon receipt of the notice referred to in Section 6(c)(iii)(C) or any notice from the Company of the existence of any fact of the kind described in Section 6(c)(iii)(D) hereof (in each case, a “Suspension Notice”), such Holder will forthwith discontinue disposition of Entitled Securities pursuant to the applicable Registration Statement until (i) such Holder has received copies of the supplemented or amended Prospectus contemplated by Section 6(c)(iv) hereof, or (ii) such Holder is advised in writing by the Company that the use of the Prospectus may be resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus (in each case, the “Recommencement Date”). Each Holder receiving a Suspension Notice hereby agrees that it will either (i) destroy any Prospectuses, other than permanent file copies, then in such Holder’s possession which have been replaced by the Company with more recently dated Prospectuses, or (ii) deliver to the Company (at the Company’s expense) all copies, other than permanent file copies, then in such Holder’s possession of the Prospectus covering such Entitled Securities that was current at the time of receipt of the Suspension Notice. The time period regarding the effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended by a number of days equal to the number of days in the period from and including the date of delivery of the Suspension Notice to the Recommencement Date.

 

	SECTION 7.	REGISTRATION EXPENSES

 

All expenses incident to the Company’s and the Guarantors’ performance of or compliance with this Agreement will be borne by the Company, regardless of whether a Registration Statement becomes effective, including without limitation: (i) all registration and filing fees and expenses; (ii) all fees and expenses of compliance with federal securities and state Blue Sky or securities laws; (iii) all expenses of preparation, printing and distribution of any Registration Statement, any Prospectus, any Free Writing Prospectus and any amendments and supplements thereto and printing of certificates (if any) for the Exchange Notes to be issued in the Exchange Offer; (iv) all fees and disbursements of counsel for the Company and the Guarantors and, in the case of a Shelf Registration Statement, the reasonable and documented fees of one counsel for all of the Holders of Entitled Securities selected by the Holders of a majority in principal amount of Entitled Securities being registered; (v) all application and filing fees in connection with listing the Exchange Notes on a national securities exchange or automated quotation system pursuant to the requirements hereof; and (vi) all fees and disbursements of independent certified public accountants of the Company and the Guarantors (including the expenses of any special audit and comfort letters required by or incident to such performance); provided, however, that in no event shall the Company or the Guarantors be responsible for any underwriting discounts, commissions or fees, brokerage commissions or transfer taxes, if any, attributable to the sale or other disposition of Entitled Securities.

 

The Company will, in any event, bear its and the Guarantors’ internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expenses of any annual audit and the fees and expenses of any Person, including special experts, retained by the Company or the Guarantors.

 

	SECTION 8.	INDEMNIFICATION

 

(a)                The Company and the Guarantors agree, jointly and severally, to indemnify and hold harmless each Holder, its directors, officers and each Person, if any, who controls such Holder (within the meaning of Section 15 of the Act or Section 20 of the Exchange Act), from and against any and all losses, claims, damages, liabilities or judgments, (including without limitation, any legal or other expenses incurred in connection with investigating or defending any matter, including any action that could give rise to any such losses, claims, damages, liabilities or judgments) caused by any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, preliminary prospectus or Prospectus, Free Writing Prospectus or any “issuer information” (as defined in Rule 433 of the Act) filed or required to be filed pursuant to Rule 433(d) under the Act (or in any amendment or supplement thereto), or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except insofar as such losses, claims, damages, liabilities or judgments are caused by an untrue statement or omission or alleged untrue statement or omission that is based upon information relating to any of the Holders furnished in writing to the Company by or on behalf of any of the Holders.

14

(b)               Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company and the Guarantors, and their respective directors and officers, and each Person, if any, who controls (within the meaning of Section 15 of the Act or Section 20 of the Exchange Act) the Company, or the Guarantors to the same extent as the foregoing indemnity from the Company and the Guarantors set forth in section (a) above, but only with reference to information relating to such Holder furnished in writing to the Company by or on behalf of such Holder expressly for use in any Registration Statement. In no event shall any Holder, its directors, officers or any Person who controls such Holder be liable or responsible for any amount in excess of the amount by which the total amount received by such Holder with respect to its sale of Entitled Securities pursuant to a Registration Statement exceeds the sum of: (i) the amount paid by such Holder for such Entitled Securities plus (ii) the amount of any damages that such Holder, its directors, officers or any Person who controls such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.

 

(c)                In case any action shall be commenced involving any Person in respect of which indemnity may be sought pursuant to Section 8(a) or 8(b) (the “indemnified party”), the indemnified party shall promptly notify the Person against whom such indemnity may be sought (the “indemnifying party”) in writing and the indemnifying party shall assume the defense of such action, including the employment of counsel reasonably satisfactory to the indemnified party and the payment of all fees and expenses of such counsel, as incurred (except that in the case of any action in respect of which indemnity may be sought pursuant to both Sections 8(a) and 8(b), a Holder shall not be required to assume the defense of such action pursuant to this Section 8(c), but may employ separate counsel and participate in the defense thereof, but the fees and expenses of such counsel, except as provided below, shall be at the expense of the Holder). Any indemnified party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the indemnified party unless (i) the employment of such counsel has been specifically authorized in writing by the indemnifying party, (ii) the indemnifying party has failed to assume the defense of such action or employ counsel reasonably satisfactory to the indemnified party, or (iii) the named parties to any such action (including any impleaded parties) include both the indemnified party and the indemnifying party, and the indemnified party has been advised by such counsel that there may be one or more legal defenses available to it which are different from or additional to those available to the indemnifying party (in which case the indemnifying party shall not have the right to assume the defense of such action on behalf of the indemnified party). In any such case, the indemnifying party shall not, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all indemnified parties and all such fees and expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by a majority of the Holders, in the case of the parties indemnified pursuant to Section 8(a), and by the Company and Guarantors, in the case of parties indemnified pursuant to Section 8(b). The indemnifying party shall indemnify and hold harmless the indemnified party from and against any and all losses, claims, damages, liabilities and judgments by reason of any settlement of any action effected with its written consent. No indemnifying party shall, (x) without the prior written consent of the indemnified party (which consent shall not be unreasonably withheld), effect any settlement or compromise of, or consent to the entry of judgment with respect to, any pending or threatened action in respect of which the indemnified party is or could have been a party and indemnity or contribution may be or could have been sought hereunder by the indemnified party, unless such settlement, compromise or judgment includes an unconditional release of the indemnified party from all liability on claims that are or could have been the subject matter of such action, and does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of the indemnified party, or (y) be liable for any settlement of any such action effected without its written consent (which consent shall not be unreasonably withheld), but it settled with the consent of the indemnifying party or if there is a final judgment of the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by Section 8(a) or (b) hereof, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt of such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnifying party in accordance with such request or disputed in good faith the indemnified party’s entitlement to such reimbursement prior to the date of such settlement.

15

(d)               To the extent that the indemnification provided for in this Section 8 is unavailable to an indemnified party in respect of any losses, claims, damages, liabilities or judgments referred to therein, then each indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or judgments (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors, on the one hand, and the Holders, on the other hand, from their sale of Entitled Securities, or (ii) if the allocation provided by clause 8(d)(i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause 8(d)(i) above but also the relative fault of the Company and the Guarantors, on the one hand, and of the Holder, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or judgments, as well as any other relevant equitable considerations. The relative fault of the Company and the Guarantors, on the one hand, and of the Holder, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or such Guarantor, on the one hand, or by the Holder, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and judgments referred to above shall be deemed to include, subject to the limitations set forth in Section 8(c) hereof, any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim.

16

The Company, the Guarantors and each Holder agree that it would not be just and equitable if contribution pursuant to this Section 8(d) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities or judgments referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any matter, including any action that could have given rise to such losses, claims, damages, liabilities or judgments. Notwithstanding the provisions of this Section 8, no Holder, its directors, its officers or any Person, if any, who controls such Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the total amount received by such Holder with respect to the sale of Entitled Securities pursuant to a Registration Statement exceeds the sum of: (i) the amount paid by such Holder for such Entitled Securities plus (ii) the amount of any damages that such Holder has otherwise paid or become liable to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute pursuant to this Section 8(d) are several in proportion to the respective principal amount of Entitled Securities held by each Holder hereunder and not joint.

 

	SECTION 9.	 RULE 144A AND RULE 144

 

The Company and each Guarantor agrees with each Holder, for so long as any Entitled Securities remain outstanding and during any period in which the Company or such Guarantor (i) is not subject to Section 13 or 15(d) of the Exchange Act, to make available, upon request of any Holder, to such Holder or beneficial owner of Entitled Securities in connection with any sale thereof and any prospective purchaser of such Entitled Securities designated by such Holder or beneficial owner, the information required by Rule 144A(d)(4) under the Act in order to permit resales of such Entitled Securities pursuant to Rule 144A under the Act, and (ii) is subject to Section 13 or 15(d) of the Exchange Act, to make all filings required thereby in a timely manner in order to permit resales of such Entitled Securities pursuant to Rule 144.

 

	SECTION 10.  	MISCELLANEOUS

 

(a)                Remedies. The Company and the Guarantors acknowledge and agree that any failure by the Company and/or the Guarantors to comply with their respective obligations under Sections 3 and 4 hereof may result in material irreparable injury to the Initial Purchaser or the Holders for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, the Initial Purchaser or any Holder may obtain such relief as may be required to specifically enforce the Company’s and the Guarantors’ obligations under Sections 3 and 4 hereof. The Company and the Guarantors further agree to waive the defense in any action for specific performance that a remedy at law would be adequate.

17

(b)               Free Writing Prospectus. The Company represents, warrants and covenants that it (including its agents and representatives) will not prepare, make, use, authorize, approve or refer to any “written communication” (as defined in Rule 405 under the Act) in connection with the issuance and sale of the Initial Notes and the Exchange Notes, other than (i) any communication pursuant to Rule 134, Rule 135 or Rule 135c under the Act, (ii) any document constituting an offer to sell or solicitation of an offer to buy the Initial Notes or the Exchange Notes that falls within the exception from the definition of prospectus in Section 2(a)(10)(a) of the Act, or (iii) a prospectus satisfying the requirements of section 10(a) of the Act or of Rule 430, Rule 430A, Rule 430B, Rule 430C or Rule 431 under the Act.

 

(c)                No Inconsistent Agreements. The Company and any Guarantor will not, on or after the date of this Agreement, enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. The Company and any Guarantor have not previously entered into, nor is currently a party to, any agreement granting any registration rights with respect to its securities to any Person that would require such securities to be included in any Registration Statement filed hereunder. The rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of the Company’s and the Guarantors’ securities under any agreement in effect on the date hereof.

 

(d)               Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to or departures from the provisions hereof may not be given unless (i) in the case of Section 5 hereof and this Section 10(d)(i), the Company has obtained the written consent of Holders of all outstanding Entitled Securities, and (ii) in the case of all other provisions hereof, the Company has obtained the written consent of Holders of a majority of the outstanding principal amount of Entitled Securities (excluding Entitled Securities held by the Company or its Affiliates). Notwithstanding the foregoing, a waiver or consent to departure from the provisions hereof that relates exclusively to the rights of Holders whose Entitled Securities are being tendered pursuant to the Exchange Offer, and that does not affect directly or indirectly the rights of other Holders whose Entitled Securities are not being tendered pursuant to such Exchange Offer, may be given by the Holders of a majority of the outstanding principal amount of Entitled Securities subject to such Exchange Offer.

 

(e)                Additional Guarantors. The Company shall cause any of its Restricted Subsidiaries (as defined in the Indenture) that becomes, prior to the consummation of the Exchange Offer, a Guarantor in accordance with the terms and provisions of the Indenture to become a party to this Agreement as a Guarantor.

 

(f)                Third Party Beneficiary. The Holders shall be third party beneficiaries to the agreements made hereunder between the Company and the Guarantors, on the one hand, and the Initial Purchaser, on the other hand, and shall have the right to enforce such agreements directly to the extent they may deem such enforcement necessary or advisable to protect its rights or the rights of Holders hereunder.

18

(g)               Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand delivery, mail, facsimile or electronic transmission:

 

    (i)                 if to a Holder, at the address set forth on the records of the Registrar under the Indenture, with a copy to the Registrar under the Indenture; and

 

    (ii)               if to the Company or the Guarantors:

 

Coeur Mining, Inc.

104 S. Michigan Avenue, Suite 900

Chicago, Illinois 60603

 Attention: General Counsel

 

Facsimile No.: (208) 667-2213

 

With a copy to:

 

Gibson, Dunn & Crutcher LLP

200 Park Avenue

New York, New York 10156

Attention: Steven Shoemate

 Facsimile: (212) 351-5316

 

All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied; and on the next Business Day, if timely delivered to an air courier guaranteeing overnight delivery.

 

Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee at the address specified in the Indenture.

 

(h)               Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties, including without limitation and without the need for an express assignment, subsequent Holders; provided that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Entitled Securities in violation of the terms hereof or of the Purchase Agreement or the Indenture. If any transferee of any Holder shall acquire Entitled Securities in any manner, whether by operation of law or otherwise, such Entitled Securities shall be held subject to all of the terms of this Agreement, and by taking and holding such Entitled Securities such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement, including the restrictions on resale set forth in this Agreement and, if applicable, the Purchase Agreement, and such Person shall be entitled to receive the benefits hereof.

 

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

19

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

 

(k)               Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAW RULES THEREOF.

 

(l)                 Severability. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

 

(m)             Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the registration rights granted with respect to the Entitled Securities. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter.

 

[Signature Pages Follow]

20

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

 

	 	
COEUR MINING, INC.

	 	 
	 	
By:

	
/s/ Peter C. Mitchell

	 	 	
Name:

	
Peter C. Mitchell

	 	 	
Title:

	
Sr. Vice President and Chief Financial Officer

	 	
COEUR ALASKA, INC.

	 	 
	 	
By:

	
/s/ Peter C. Mitchell

	 	 	
Name:

	
Peter C. Mitchell

	 	 	
Title:

	
Sr. Vice President and Chief Financial Officer

	 	
COEUR CAPITAL, INC.

	 	 
	 	
By:

	
/s/ Peter C. Mitchell

	 	 	
Name:

	
Peter C. Mitchell

	 	 	
Title:

	
Sr. Vice President and Chief Financial Officer

	 	
COEUR EXPLORATIONS, INC.

	 	 
	 	
By:

	
/s/ Peter C. Mitchell

	 	 	
Name:

	
Peter C. Mitchell

	 	 	
Title:

	
Sr. Vice President and Chief Financial Officer

	 	
COEUR ROCHESTER, INC.

	 	 
	 	
By:

	
/s/ Peter C. Mitchell

	 	 	
Name:

	
Peter C. Mitchell

	 	 	
Title:

	
Sr. Vice President and Chief Financial Officer

	 	
COEUR SOUTH AMERICA CORP.

	 	 
	 	
By:

	
/s/ Peter C. Mitchell

	 	 	
Name:

	
Peter C. Mitchell

	 	 	
Title:

	
Sr. Vice President and Chief Financial Officer

S-1

	 	
WHARF RESOURCES (U.S.A), INC.

	 	 
	 	
By:

	
/s/ Peter C. Mitchell

	 	 	
Name:

	
Peter C. Mitchell

	 	 	
Title:

	
Sr. Vice President and Chief Financial Officer

	 	
WHARF RESOURCES MANAGEMENT INC.

	 	 
	 	
By:

	
/s/ Peter C. Mitchell

	 	 	
Name:

	
Peter C. Mitchell

	 	 	
Title:

	
Sr. Vice President and Chief Financial Officer

	 	
WHARF REWARD MINES INC.

	 	 
	 	
By:

	
/s/ Peter C. Mitchell

	 	 	
Name:

	
Peter C. Mitchell

	 	 	
Title:

	
Sr. Vice President and Chief Financial Officer

	 	
WHARF GOLD MINES INC.

	 	 
	 	
By:

	
/s/ Peter C. Mitchell

	 	 	
Name:

	
Peter C. Mitchell

	 	 	
Title:

	
Sr. Vice President and Chief Financial Officer

	 	
GOLDEN REWARD MINING COMPANY LIMITED PARTNERSHIP

	 	 
	 	
By:

	
/s/ Peter C. Mitchell

	 	 	
Name:

	
Peter C. Mitchell

	 	 	
Title:

	
Sr. Vice President and Chief Financial Officer

S-2

	 	GOLDMAN SACHS & Co. LLC
	 	 	 	 
	 	By 	/s/ Raffael Fiumara
	 		 Name:	Raffael Fiumara
	 		 Title:	Vice President

S-3

SCHEDULE I

 

Guarantors

 

Coeur Alaska, Inc.

 

Coeur Capital, Inc.

 

Coeur Explorations, Inc.

 

Coeur Rochester, Inc.

 

Coeur South America Corp.

 

Wharf Resources (U.S.A), Inc.

 

Wharf Resources Management Inc.

 

Wharf Reward Mines Inc.

 

Wharf Gold Mines Inc.

 

Golden Reward Mining Company Limited PartnershipExhibit 4.1

 

B. Riley Financial, Inc.

 

and

 

U.S. Bank National Association,

 

as Trustee

 

SECOND SUPPLEMENTAL INDENTURE

 

Dated as of May 31, 2017

 

to the Indenture dated as of November 2,
2016

 

7.50% Senior Notes due 2027

 

     

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	ARTICLE 1 APPLICATION OF SECOND SUPPLEMENTAL INDENTURE	1
	 	 	 
	Section 1.01.	Application of Second Supplemental Indenture.	1
	 	 	 
	ARTICLE 2 DEFINITIONS	1
	 	 	 
	Section 2.01.	Certain Terms Defined in the Indenture.	1
	 	 	 
	Section 2.02.	Definitions.	1
	 	 	 
	ARTICLE 3 FORM AND TERMS OF THE NOTES	2
	 	 	 
	Section 3.01.	Form and Dating.	2
	 	 	 
	Section 3.02.	Terms of the Notes.	2
	 	 	 
	Section 3.03.	Optional Redemption.	3
	 	 	 
	ARTICLE 4 CERTAIN COVENANTS	3
	 	 	 
	Section 4.01.	Merger, Consolidation or Sale of Assets.	4
	 	 	 
	Section 4.02.	Reporting.	4
	 	 	 
	Section 4.03.	Payment of Taxes.	4
	 	 	 
	ARTICLE 5 EVENTS OF DEFAULT	4
	 	 	 
	Section 5.01.	Events of Default.	4
	 	 	 
	ARTICLE 6 MISCELLANEOUS	5
	 	 	 
	Section 6.01.	Trust Indenture Act Controls.	5
	 	 	 
	Section 6.02.	New York Law to Govern.	5
	 	 	 
	Section 6.03.	Counterparts.	5
	 	 	 
	Section 6.04.	Severability.	5
	 	 	 
	Section 6.05.	Ratification.	6
	 	 	 
	Section 6.06.	Effectiveness.	6
	 	 	 
	Section 6.07.	Trustee Makes No Representation.	6
	 	 	 
	EXHIBIT A Form of 7.50% Senior Note due 2027	A-1

 

     

     

    

 

SECOND SUPPLEMENTAL INDENTURE

 

SECOND SUPPLEMENTAL INDENTURE (this “Second Supplemental Indenture”),
dated as of May 31, 2017, between B. Riley Financial, Inc., a Delaware corporation (the “Company”), and U.S. Bank National
Association, as trustee (the “Trustee”).

 

RECITALS OF THE COMPANY

 

WHEREAS, the Company and the Trustee executed and delivered
an Indenture, dated as of November 2, 2016 (the “Base Indenture,” as supplemented by the First Supplemental Indenture,
dated November 2, 2016 (the “First Supplemental Indenture”) and together with this Second Supplemental Indenture, the
“Indenture”), to provide for the issuance by the Company from time to time of Securities to be issued in one or more
series as provided in the Indenture;

 

WHEREAS, Section 9.1 of the Base Indenture provides, among
other things, that the Company and the Trustee may enter into indentures supplemental to the Base Indenture, without the consent
of any Holders of Securities, to establish the form of any Security, as permitted by Section 2.1 of the Base Indenture, and to
provide for the issuance of the Notes (as defined below), as permitted by Section 3.1 of the Base Indenture, and to set forth the
terms thereof;

 

WHEREAS, the Company desires to execute this Second Supplemental
Indenture, pursuant to Section 2.1 of the Base Indenture, to establish the form and, pursuant to Section 3.1 of the Base Indenture,
to provide for the issuance, of a series of its senior notes designated as its 7.50% Senior Notes due 2027 (the “Notes”),
in an initial aggregate principal amount of $60,375,000. The Notes are a series of securities as referred to in Section 3.1 of
the Base Indenture.

 

WHEREAS, the Company has requested that the Trustee execute
and deliver this Second Supplemental Indenture;

 

WHEREAS, all things necessary have been done by the Company
to make this Second Supplemental Indenture, when executed and delivered by the Company, a valid supplement to the Indenture; and

 

WHEREAS, all things necessary have been done by the Company
to make the Notes, when executed by the Company and authenticated and delivered in accordance with the provisions of the Indenture,
the valid obligations of the Company;

 

NOW, THEREFORE, in consideration of the premises stated herein
and the purchase of the Notes by the Holders thereof, the Company and the Trustee mutually covenant and agree for the equal and
proportionate benefit of the respective Holders from time to time of the Notes as follows:

 

ARTICLE
1

APPLICATION
OF SECOND SUPPLEMENTAL INDENTURE

 

Section 1.01. Application of Second Supplemental Indenture.

 

Notwithstanding any other provision of this Second Supplemental
Indenture, all provisions of this Second Supplemental Indenture are expressly and solely for the benefit of the Holders of the
Notes, and any such provisions shall not be deemed to apply to any other securities issued under the Base Indenture and shall not
be deemed to amend, modify or supplement the Base Indenture for any purpose other than with respect to the Notes. Unless otherwise
expressly specified, references in this Second Supplemental Indenture to specific Article numbers or Section numbers refer to Articles
and Sections contained in this Second Supplemental Indenture as they amend or supplement the Base Indenture, and not the Base Indenture
or any other document. All Initial Notes and Additional Notes, if any, shall be treated as a single class for all purposes of this
Indenture, including waivers, amendments, redemptions and offers to purchase.

 

ARTICLE
2

DEFINITIONS

 

Section 2.01. Certain Terms Defined in the Indenture.

 

For purposes of this Second Supplemental Indenture, all capitalized
terms used but not defined herein shall have the meanings ascribed to such terms in the Base Indenture, as amended hereby.

 

Section 2.02. Definitions. (a) For the benefit of the Holders
of the Notes, the following terms shall have the meanings set forth in this Section 2.02:

 

    	 	1	 

     

    

 

“Additional Notes” has the meaning specified in Section
3.02(b) of this Second Supplemental Indenture.

 

“Depositary” has the meaning specified in Section 3.01(c)
of this Second Supplemental Indenture.

 

“Global Notes” means the Notes in the form of Global
Securities issued to the Depositary or its nominee, substantially in the form of Exhibit A.

 

“Initial Notes” has the meaning specified in Section
3.02(b) of this Second Supplemental Indenture.

 

“Notes” has the meaning specified in the recitals of
this Second Supplemental Indenture.

 

“person” has the meaning given thereto in Section 13(d)(3)
of the Exchange Act.

 

ARTICLE
3

FORM
AND TERMS OF THE NOTES

 

Section 3.01. Form and Dating.

 

a) The Notes and the Trustee’s certificate of authentication
shall be substantially in the form of Exhibit A attached hereto. The Notes shall be executed on behalf of the Company by an Officer
of the Company. The Notes may have notations, legends or endorsements required by law, stock exchange rules or usage. Each Note
shall be dated the date of its authentication. The Notes and any beneficial interest in the Notes shall be in minimum denominations
of $25 and integral multiples of $25 in excess thereof.

 

b) The terms and notations contained in the Notes shall constitute,
and are hereby expressly made, a part of the Indenture, and the Company and the Trustee, by their execution and delivery of this
Second Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.

 

c) Global Notes. The Notes shall be issued initially in the form
of fully registered Global Securities, which shall be deposited on behalf of the purchasers of the Notes represented thereby with
The Depository Trust Company, New York, New York (the “Depositary”) and registered in the name of Cede & Co., the
Depositary’s nominee, duly executed by the Company and authenticated by the Trustee.

 

d) Book-Entry Provisions. This Section 3.01(d) shall apply only
to the Global Notes deposited with or on behalf of the Depositary. The Company shall execute and the Trustee shall, in accordance
with this Section 3.01(d), authenticate and deliver the Global Notes that shall be registered in the name of the Depositary or
the nominee of the Depositary and shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instructions.

 

e) Paying Agent. The Company initially appoints the Trustee as Paying
Agent for the payment of the principal of (and premium, if any) and interest on the Notes and the office of the Trustee at U.S.
Bank National Association, 633 West Fifth Street, 24th Floor Los Angeles, California 90071, is hereby designated as the Place of
Payment where the Notes may be presented for payment.

 

Section 3.02. Terms of the Notes. The following terms relating
to the Notes are hereby established:

 

a) Title. The Notes shall constitute a series of Securities
having the title “7.50% Senior Notes due 2027”.

 

b) Principal Amount. The aggregate principal amount of the
Notes that may be initially authenticated and delivered under the Indenture (the “Initial Notes”) shall be $60,375,000
(except for Notes authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Notes
pursuant to Sections 3.4, 3.5, 3.6, 9.6 or 11.7 of the Base Indenture). The Company may from time to time, without the consent
of the Holders of Notes, issue additional Notes (in any such case “Additional Notes”) having the same ranking and the
same interest rate, Maturity and other terms as the Initial Notes. Any Additional Notes and the Initial Notes shall constitute
a single series under the Indenture and all references to the Notes shall include the Initial Notes and any Additional Notes unless
the context otherwise requires.

 

c) Maturity Date. The entire outstanding principal amount
of the Notes shall be payable on May 31, 2027.

 

    	 	2	 

     

    

 

d) Interest Rate. The rate at which the Notes shall bear
interest shall be 7.50% per annum; the date from which interest shall accrue on the Notes shall be May 31, 2017, or the most recent
Interest Payment Date to which interest has been paid or provided for; the Interest Payment Dates for the Notes shall be January
31, April 30, July 31 and October 31 of each year, beginning July 31, 2017; the interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date, will be paid, in immediately available funds, to the Persons in whose names the Notes
(or predecessor Notes) are registered (which shall initially be the Depositary) at the close of business on the Regular Record
Date for such interest, which shall be the January 15, April 15, July 15 or October 15 (whether or not a Business Day), as the
case may be, preceding such Interest Payment Date. Interest shall be computed on the basis of a 360-day year comprised of twelve
30-day months. For so long as the Notes are represented in global form by one or more Global Securities, all payments of principal
(and premium, if any) and interest shall be made by wire transfer of immediately available funds to the Depositary or its nominee,
as the case may be, as the registered owner of the Global Security representing such Notes. In the event that definitive Notes
shall have been issued, all payments of principal (and premium, if any) and interest shall be made by wire transfer of immediately
available funds to the accounts of the registered Holders thereof; provided, that the Company may elect to make such payments at
the office of the Paying Agent in The City of Los Angeles; and provided further, that the Company may at its option pay interest
by check to the registered address of each Holder of a definitive Note.

 

e) Currency. The currency of denomination of the Notes is
United States Dollars. Payment of principal of and interest and premium, if any, on the Notes shall be made in United States Dollars.

 

f) Sinking Fund. The Notes are not subject to any sinking
fund.

 

g) Additional Interest. At the Company’s election,
the sole remedy with respect to an Event of Default due to a failure to comply with reporting requirements under the Trust Indenture
Act or under Section 4.02 below, for the first 180 calendar days after the occurrence of such Event of Default, consists exclusively
of the right to receive additional interest on the Notes at an annual rate equal to (1) 0.25% for the first 90 calendar days after
such default and (2) 0.50% for calendar days 91 through 180 after such default. On the 181st day after such Event of Default, if
such violation is not cured or waived, the Trustee or the Holders of not less than 25% of the outstanding principal amount of the
Notes may declare the principal, together with accrued and unpaid interest, if any, on the Notes to be due and payable immediately.
If the Company chooses to pay such additional interest, the Company must notify the Trustee and the Holders of the Notes by certificate
of the Company’s election at any time on or before the close of business on the first business day following the Event of
Default.

 

Section 3.03. Optional Redemption.

 

a) The provisions of Article 11 of the Base Indenture, as supplemented
by the provisions of this Second Supplemental Indenture, shall apply to the Notes.

 

b) The Notes shall be redeemable as a whole or in part at any time
and from time to time on or after May 31, 2020 at the Company’s option, upon notice not fewer than 30 days and not more than
60 days prior to the date fixed for redemption to each Holder of Notes to be redeemed, at a redemption price equal to the principal
amount plus any unpaid interest payable thereon accrued to, but excluding, the date fixed for redemption.

 

c) If less than all of the Notes are to be redeemed, the particular
Notes to be redeemed will be selected not more than 45 days prior to the redemption date by the Trustee from the outstanding Notes
not previously called for redemption, by lot, or in the Trustee’s discretion, on a pro-rata basis, provided that the unredeemed
portion of the principal amount of any Notes will be in an authorized denomination (which will not be less than the minimum authorized
denomination) for such Notes. The Trustee will promptly notify us in writing of the Notes selected for redemption and, in the case
of any Notes selected for partial redemption, the principal amount thereof to be redeemed.

 

d) Unless the Company defaults on the payment of the redemption
price, on and after the date of redemption, interest will cease to accrue on the Notes called for redemption.

 

ARTICLE
4

CERTAIN
COVENANTS

 

The following covenants shall be applicable to the Company for so
long as any of the Notes are Outstanding. Nothing in this Article will, however, affect the Company’s rights or obligations
under any other provision of the Base Indenture, the First Supplemental Indenture or this Second Supplemental Indenture.

 

    	 	3	 

     

    

 

Section 4.01. Merger, Consolidation or Sale of Assets.

 

The Company shall not merge or consolidate with or into any other
Person (other than a merger of a wholly owned Subsidiary of the Company into the Company) or sell, transfer, lease, convey or otherwise
dispose of all or substantially all of its property (provided that, for the avoidance of doubt, a pledge of assets pursuant to
any secured debt instrument of the Company or its Subsidiaries shall not be deemed to be any such sale, transfer, lease, conveyance
or disposition) in one transaction or series of related transactions unless:

 

a) the Company shall be the surviving Person (the “Surviving
Person”) or the Surviving Person (if other than the Company) formed by such merger or consolidation or to which such sale,
transfer, lease, conveyance or disposition is made shall be a corporation or limited liability company organized and existing under
the laws of the United States of America, any state thereof or the District of Columbia;

 

b) the Surviving Person (if other than the Company) expressly assumes,
by supplemental indenture in form reasonably satisfactory to the Trustee, executed and delivered to the Trustee by such Surviving
Person, the due and punctual payment of the principal of, and premium, if any, and interest on, all the Notes Outstanding, and
the due and punctual performance and observance of all the covenants and conditions of this Indenture to be performed by the Company;

 

c) immediately before and immediately after giving effect to such
transaction or series of related transactions, no Default or Event of Default shall have occurred and be continuing; and

 

d) in the case of a merger where the Surviving Person is other than
the Company, the Company shall deliver, or cause to be delivered, to the Trustee, an Officer’s Certificate and an Opinion
of Counsel, each stating that such transaction and the supplemental indenture, if any, in respect thereto comply with this Section
4.01 and that all conditions precedent in this Indenture relating to such transaction have been complied with.

 

Section 4.02. Reporting.

 

If, at any time, the Company is not subject to the reporting requirements
of Sections 13 or 15(d) of the Exchange Act to file any periodic reports with the Securities and Exchange Commission, the Company
agrees to furnish to Holders and Trustee, for the period of time during which the Notes are outstanding, its audited annual consolidated
financial statements, within 90 days of its fiscal year end, and unaudited interim consolidated financial statements, within 45
days of its fiscal quarter end (other than our fourth fiscal quarter). All such financial statements will be prepared, in all material
respects, in accordance with Generally Accepted Accounting Principles, as applicable.

 

Section 4.03. Payment of Taxes.

 

The Company will pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, all taxes, assessments and governmental charges levied or imposed upon the Company or
upon the income, profits or property of the Company, except where the failure to do so would not be reasonably expected to have
a material adverse effect on the business, assets, financial condition or results of operations of the Company; provided, however,
that the Company shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment or charge
whose amount, applicability or validity is being contested in good faith by appropriate proceedings.

 

ARTICLE
5

EVENTS
OF DEFAULT

 

Section 5.01. Events of Default.

 

Solely for the benefit of the Holders of the Notes, Section 5.1
of the Base Indenture is hereby deleted in its entirety and replaced with the following:

 

“Section 5.1 Events of Default

 

“Event of Default”, wherever used herein with respect
to the Notes means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary
or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule
or regulation of any administrative or governmental body):

 

(1) default in the payment of any interest upon any Note when it
becomes due and payable, and continuance of such default for a period of 30 days;

 

    	 	4	 

     

    

 

(2) default in the payment of the principal of any Note when due
and payable;

 

(3) default in the performance, or breach, of any covenant of the
Company in this Indenture with respect to the Notes, and continuance of such default or breach for a period of 60 days after there
has been sent to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount
of the Notes, a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is
a “Notice of Default” hereunder;

 

(4) the entry by a court having jurisdiction in the premises of
(A) a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable federal or
state bankruptcy, insolvency, reorganization or other similar law or (B) a decree or order adjudging the Company a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect
of the Company under any applicable federal or state law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator
or other similar official of the Company or of any substantial part of its property, or ordering the winding up or liquidation
of its affairs, and the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect
for a period of 90 consecutive days; or

 

(5) the commencement by the Company of a voluntary case or proceeding
under any applicable federal or state bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding
to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a decree or order for relief in respect of the
Company in an involuntary case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization or other
similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition
or answer or consent seeking reorganization or relief under any applicable federal or state law, or the consent by it to the filing
of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator
or similar official of the Company or of any substantial part of its property, or the making by the Company of an assignment for
the benefit of creditors, or the admission by the Company in writing of its inability to pay its debts generally as they become
due, or the taking of corporate action by the Company in furtherance of any such action.

 

Subject to the provisions of Section 6.1 hereof, the Trustee shall
not be deemed to have knowledge of an Event of Default hereunder (except for those described in paragraphs (1) and (2) above if
the Trustee is then the Paying Agent) unless a Responsible Officer of the Trustee shall have actual knowledge thereof or shall
have received written notice thereof and such notice references the Notes and this Indenture.

 

ARTICLE
6

MISCELLANEOUS

 

Section 6.01. Trust Indenture Act Controls.

 

If any provision of this Second Supplemental Indenture limits, qualifies
or conflicts with another provision which is required to be included in this Second Supplemental Indenture by the Trust Indenture
Act, the required provision shall control. If any provision of this Second Supplemental Indenture modifies or excludes any provision
of the Trust Indenture Act which may be so modified or excluded, the latter provision shall be deemed to apply to this Second Supplemental
Indenture as so modified or to be excluded, as the case may be.

 

Section 6.02. New York Law to Govern.

 

This Second Supplemental Indenture and the Notes shall be governed
by and construed in accordance with the laws of the State of New York.

 

Section 6.03. Counterparts.

 

This Second Supplemental Indenture may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument. The exchange of copies of this Second Supplemental Indenture and of signature pages by facsimile,
PDF or other electronic transmission shall constitute effective execution and delivery of this Second Supplemental Indenture as
to the parties hereto and may be used in lieu of the original Second Supplemental Indenture and signature pages for all purposes.

 

Section 6.04. Severability. If any provision of this Second
Supplemental Indenture or the Notes shall be held to be illegal or unenforceable under applicable law, then the remaining provisions
hereof shall be construed as though such invalid, illegal or unenforceable provision were not contained therein.

 

    	 	5	 

     

    

 

Section 6.05. Ratification.

 

The Base Indenture, as supplemented and amended by the First Supplemental
Indenture, as supplemented and amended by this Second Supplemental Indenture, is in all respects ratified and confirmed. The Indenture
shall be read, taken and construed as one and the same instrument. All provisions included in this Second Supplemental Indenture
supersede any conflicting provisions included in the Base Indenture, as supplemented and amended by the First Supplemental Indenture,
unless not permitted by law. The Trustee accepts the trusts created by the Indenture, and agrees to perform the same upon the terms
and conditions of the Indenture.

 

Section 6.06. Effectiveness.

 

The provisions of this Second Supplemental Indenture shall become
effective as of the date hereof.

 

Section 6.07. Trustee Makes No Representation.

 

The recitals contained herein are made by the Company and not by
the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to the
validity or sufficiency of this Second Supplemental Indenture. All rights, protections, privileges, indemnities and benefits granted
or afforded to the Trustee under the Indenture shall be deemed incorporated herein by this reference and shall be deemed applicable
to all actions taken, suffered or omitted by the Trustee in each of its capacities hereunder, and each agent, custodian and other
Person employed to act under this Second Supplemental Indenture.

 

[Remainder of page intentionally left blank.]

 

    	 	6	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental
Indenture to be duly executed as of the date first above written.

 

	 	B. RILEY FINANCIAL, INC.
	 	 	 
	 	By:	/s/ Phillip J. Ahn
	 	 	Name: Phillip J. Ahn
	 	 	Title: Chief Financial Officer & Chief Operating Officer

 

[Signature Page to Supplemental Indenture]

 

    	 	7	 

     

    

 

	 	U.S. Bank National Association, as Trustee
	 	 	 
	 	By:	/s/ Bradley Scarbrough
	 	 	Name: Bradley Scarbrough
	 	 	Title: Vice President

 

[Signature Page to Supplemental Indenture]

 

    	 	8	 

     

    

 

EXHIBIT A

 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY (AS DEFINED IN THE INDENTURE) OR A NOMINEE THEREOF. THIS
GLOBAL SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR ITS NOMINEE ONLY
IN LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN
DEFINITIVE FORM, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT 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, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE
TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS 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.

 

B. RILEY FINANCIAL, INC.

 

7.50% Senior Note due 2027

 

	No. [●]	Principal Amount
	CUSIP No. 05580M 306	$60,375,000

 

B. Riley Financial, Inc., a Delaware corporation (hereinafter called
the “Company”, which term includes any successor Person under the Indenture referred to below), for value received,
hereby promises to pay to Cede & Co., or registered assigns, the principal sum of Sixty Million Three Hundred Seventy-Five
Thousand U.S. Dollars (U.S. $60,375,000) on May 31, 2027 and to pay interest thereon from May 31, 2017 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for, quarterly on January 31, April 30, July 31 and October
31 in each year (each an “Interest Payment Date”), beginning July 31, 2017 at the rate of 7.50% per annum, until the
principal hereof is paid or duly made available for payment. The interest so payable and punctually paid or duly provided for on
any Interest Payment Date shall, as provided in such Indenture, be paid to the Person in whose name this Note (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 January 15,
April 15, July 15 or October 15 (whether or not a Business Day), as the case may be, preceding such Interest Payment Date. Any
such interest which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease
to be payable to the Holder hereof on the relevant Regular Record Date by virtue of having been such Holder, and may be paid to
the Person in whose name this Note (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
the Notes not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture.

 

Payment of the principal of (and premium, if any) and the interest
on this Note shall be made at the designated office of the Trustee (as defined below) at U.S. Bank National Association, 633 West
Fifth Street, 24th Floor Los Angeles, California 90071, in such 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, for so long as the Notes are represented in global
form by one or more Global Securities, all payments of principal (and premium, if any) and interest shall be made by wire transfer
of immediately available funds to the Depositary or its nominee, as the case may be, as the registered owner of the Global Security
representing such Notes. In the event that definitive Notes shall have been issued, all payments of principal (and premium, if
any) and interest shall be made by wire transfer of immediately available funds to the accounts of the registered Holders thereof;
provided, that the Company may at its option pay interest by check to the registered address of each Holder of a definitive Note.

 

    	 	A-1	 

     

    

 

This Note is one of the duly authorized series of Securities of
the Company, designated as the Company’s “7.50% Senior Notes due 2027”, initially limited to an aggregate principal
amount of $60,375,000 all issued or to be issued under and pursuant to an Indenture (the “Base Indenture”), dated as
of November 2, 2016, between the Company and U.S. Bank National Association, as trustee (hereinafter referred to as the “Trustee”),
as supplemented by the First Supplemental Indenture thereto, dated as of November 2, 2016 (the “First Supplemental Indenture”),
as supplemented by the Second Supplemental Indenture (the “Second Supplemental Indenture”, and together with the Base
Indenture and the First Supplemental Indenture, the “Indenture”). Reference is hereby made to the Indenture for a description
of the respective rights, limitation of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the
Holders of the Notes.

 

The Company may redeem the Notes as a whole or in part, at any time
and from time to time on or after May 31, 2020 at the Company’s option, upon notice sent not fewer than 30 days and not more
than 60 days prior to the date fixed for redemption to each Holder of Notes to be redeemed, at a redemption price equal to the
principal amount plus any unpaid interest payable thereon accrued to, but excluding, the date fixed for redemption.

 

If less than all of the Notes are to be redeemed, the Notes to be
redeemed shall be selected not more than 45 days prior to the redemption date by the Trustee from the outstanding Notes not previously
called for redemption, by lot, or in the Trustee’s discretion, on a pro-rata basis, provided that the unredeemed portion
of the principal amount of any Notes will be in an authorized denomination (which will not be less than the minimum authorized
denomination) for such Notes. The Trustee will promptly notify the Company in writing of the Notes selected for redemption and,
in the case of any Notes selected for partial redemption, the principal amount thereof to be redeemed.

 

The Notes are not subject to any sinking fund.

 

If an Event of Default with respect to the Notes shall occur and
be continuing, the principal of the Notes may be declared due and payable in the manner and with the effect 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 Securities
of each series to be affected 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 Securities at the time Outstanding of each series affected thereby.
The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities
of any series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive 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 Note 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 Note.

 

No reference herein to the Indenture and no provision of this Note
or of the Indenture shall alter or impair the right of the Holder of this Note, which is absolute and unconditional, to receive
payment of the principal of and interest on this Note at the times herein and in the Indenture prescribed and to institute suit
for the enforcement of any such payment unless the Holder of this Note shall have consented to the impairment of such right.

 

As provided in the Indenture and subject to certain limitations
set forth therein, the transfer of this Note may be registered in the Security Register, upon surrender of this Note 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
Note 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 by his attorney duly authorized in writing, and thereupon one or
more new Notes of this series and of any authorized denominations and of a like aggregate principal amount and tenor, shall be
issued to the designated transferee or transferees.

 

The Notes are issuable only in registered form without coupons in
minimum denominations of $25 and integral multiples of $25 in excess thereof. Subject to certain limitations therein set forth
in the Indenture and in this Note, the Notes are exchangeable for a like aggregate principal amount of Notes of this series in
different authorized denominations, as requested by the Holders surrendering the same.

 

No service charge shall be made for any such registration of transfer
or for exchange of this Note, but the Company or the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or exchange of a Note, other than in certain
cases provided in the Indenture.

 

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

 

    	 	A-2	 

     

    

 

The Indenture contains provisions whereby (i) the Company may be
discharged from its obligations with respect to the Notes (subject to certain exceptions) or (ii) the Company may be released from
its obligations under specified covenants and agreements in the Indenture, in each case if the Company irrevocably deposits with
the Trustee money or U.S. Government Obligations sufficient to pay and discharge the entire indebtedness on all Notes of this series,
and satisfies certain other conditions, all as more fully provided in the Indenture.

 

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

 

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

 

    	 	A-3	 

     

    

 

Unless the certificate of authentication hereon has been executed
by or on behalf of the Trustee under the Indenture by the manual signature of one of its authorized signatories, this Note shall
not be entitled to any benefits 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: [●]

 

	 	B. RILEY FINANCIAL, INC.
	 	 	 
	 	By:	 
	 	 	Name: Phillip J. Ahn
	 	 	Title: Chief Financial Officer & Chief Operating Officer

 

[Signature Page to Global Note]

 

    	 	A-4	 

     

    

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

Dated: [●]

 

	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 	 	 
	 	By:	 
	 	 	Authorized Signatory

 

[Signature Page to Global Note]

 

    	 	A-5	 

     

    

 

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	UNIF GIFT MIN ACT - . . .Custodian
	in common	(Cust) (Minor)
	TEN ENT - as tenants by	Under Uniform Gifts to
	the entireties	Minor Act
	JT TEN - as joint tenants	 	 
	with right of	 	 
	survivorship and	 	 
	not as tenants in	 	 
	common	 	(State)

 

	Additional abbreviations may also be used though not in the above list.
	 
	 
	FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
	 
	 
	(Please insert Assignee’s legal name)
	 
	 
	(Please insert Social Security or other identifying number of Assignee)
	 
	 
	 
	 
	(Please print or typewrite name and address including postal zip code of Assignee)

 

the within Note of B. RILEY FINANCIAL, INC. and does hereby irrevocably
constitute and appoint attorney to transfer the said Note on the books of the Company, with full power of substitution
in the premises.

Dated:

 

	 	Your Signature:	 
	 	 	(Sign exactly as your name appears on the
	 	 	face of this Note)

 

 

 

[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-6

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