Document:

Exhibit 4.8

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT, dated
February 8, 2021 (this “Agreement”), is entered into by and among ConocoPhillips, a Delaware corporation (the
 “Company”), ConocoPhillips Company, a Delaware corporation (the “Guarantor” and, together
with the Company, the “Company Parties”), and Barclays Capital Inc., BofA Securities, Inc., Citigroup Global
Markets Inc., BMO Capital Markets Corp., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA)
Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc.,
TD Securities (USA) LLC and Wells Fargo Securities, LLC, as dealer managers (collectively, the “Dealer Managers”),
in connection with the Company’s offers to exchange (the “COP Exchange Offer”) notes (the “Old
Notes”) issued by Concho Resources Inc., a Delaware corporation (“Concho”), for new notes of the Company
(fully and unconditionally guaranteed by the Guarantor) listed on Schedule A (the “Notes”) and, under certain
conditions, cash, on the terms and subject to the conditions set forth in the Offering Memorandum and Consent Solicitation Statement,
dated December 7, 2020. The Company Parties have agreed to provide to the Holders (as defined below) of the Notes the registration
rights set forth in this Agreement. The execution and delivery of this Agreement is a condition to the Dealer Managers’ obligation
to act and to continue to act (as the case may be) as Dealer Managers under the Dealer Manager and Solicitation Agent Agreement,
dated December 7, 2020, among the Company, the Guarantor, Concho and the Dealer Managers (the “Dealer Manager Agreement”).

 

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

 

1.                 
Definitions and Rules of Interpretation.

 

(a)              
As used in this Agreement, the following terms shall have the following meanings:

 

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

 

“Exchange Act” shall mean
the Securities Exchange Act of 1934.

 

“Exchange Notes” shall
mean unsubordinated unsecured notes of a series issued by the Company and fully and unconditionally guaranteed by the Guarantor
under the Indenture, containing terms substantially identical in all material respects to the applicable series of Notes (except
that the Exchange Notes will not be subject to restrictions on transfer or to any increase in annual interest rate for failure
to comply with this Agreement) and to be offered to Holders in exchange for Registrable Notes of such series pursuant to the Exchange
Offer.

 

“Exchange Offer” shall
mean the exchange offer by the Company Parties of Exchange Notes of each series for Registrable Notes of such series pursuant to
Section 2(a).

 

     

     

    

 

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

 

“FINRA” shall mean the
Financial Industry Regulatory Authority, Inc.

 

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

 

“Holders” shall mean the
holders of Registrable Notes, and each of their successors, assigns and direct and indirect transferees who become owners of Registrable
Notes under the Indenture; provided that, for purposes of Section 4 and Section 5, the term “Holders”
shall include Participating Broker-Dealers.

 

“Indenture” shall mean
the Indenture, dated as of October 9, 2002, among the Company, the Guarantor, as successor to Conoco Inc. and Phillips Petroleum
Company, and the Trustee, as the same may be amended and supplemented from time to time in accordance with the terms thereof with
applicability to the Notes and the Exchange Notes, including by that certain Supplemental Indenture, dated the date hereof, among
the Company, the Guarantor and the Trustee.

 

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

 

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

 

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

 

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

 

“Registrable Notes”
shall mean the Notes; provided that the Notes shall cease to be Registrable Notes upon the earliest to occur of the
following: (i) when a Registration Statement with respect to such Notes has become effective under the Securities Act
and such Notes have been exchanged or disposed of pursuant to such Registration Statement, (ii) when such Notes cease to
be outstanding, (iii) when such Notes have been resold pursuant to Rule 144 (or any successor provision) under the
Securities Act (but not Rule 144A) without regard to volume restrictions, provided that the Company Parties shall
have removed or caused to be removed any restrictive legend on the Notes or (iv) the date that is three years after the date
of this Agreement.

 

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“Registration Default”
shall mean the occurrence of any of the following: (i) the Exchange Offer Registration Statement referenced in Section 2(a)(x)
is not deemed effective on or prior to the Target Registration Date or (ii) if the Exchange Offer is not consummated prior to the
Target Registration Date and, if a Shelf Registration Statement is required pursuant to Section 2(b), such Shelf Registration Statement
is not declared effective on or prior to the later of (x) the Target Registration Date and (y) 60 days after delivery of the applicable
Shelf Request, or (iii) if a Shelf Registration Statement is required pursuant to Section 2(b) and after being declared effective,
such Shelf Registration Statement ceases to be effective or the Prospectus contained therein ceases to be usable for resales of
Registrable Notes (a) on more than two occasions of at least 30 consecutive days during the Shelf Effectiveness Period or (b) at
any time in any 12-month period during the Shelf Effectiveness Period and such failure to remain effective or useable for resales
of Registrable Notes exists for more than 90 days (whether or not consecutive) in any 12-month period.

 

“Registration Expenses”
shall mean any and all expenses incident to performance of or compliance by the Company Parties with this Agreement, including
without limitation: (i) all SEC or FINRA registration and filing fees, (ii) all fees and expenses incurred in connection
with compliance with state securities or blue sky laws (including reasonable fees and disbursements of one counsel for any Underwriters
or Holders in connection with blue sky qualification of any Exchange Notes or Registrable Notes), (iii) all expenses of the
Company Parties in preparing or assisting in preparing, word processing, printing and distributing any Registration Statement,
any Prospectus, any Free Writing Prospectus and any amendments or supplements thereto, any underwriting agreements, securities
sales agreements or other similar agreements and any other documents relating to the performance of and compliance with this Agreement,
(iv) all rating agency fees incurred by the Company Parties (including with respect to maintaining ratings of the Notes and
the Exchange Notes), (v) all fees and disbursements relating to the qualification of the Indenture under applicable securities
laws, (vi) the reasonable fees and disbursements of the Trustee and its one counsel, (vii) the fees and disbursements
of counsel for the Company Parties and, in the case of a Shelf Registration Statement, the reasonable fees and disbursements of
one counsel for the Participating Holders (which counsel shall be selected or replaced by the Participating Holders holding a majority
of the aggregate principal amount of Registrable Notes held by such Participating Holders) and (viii) the fees and disbursements
of the independent registered public accountants of the Company, including the expenses of any special audits or “comfort”
letters required by or incident to the performance of and compliance with this Agreement, but excluding fees and expenses of counsel
to the Underwriters (other than fees and expenses set forth in clause (ii) above) or the Holders and underwriting discounts
and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Notes by
a Holder.

 

“Registration
Statement” shall mean any registration statement of the Company, including the Prospectus contained therein or
deemed a part thereof, all amendments and supplements to any such registration statement, including post-effective
amendments, all exhibits to any such registration statement and any document incorporated by reference therein.

 

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

 

“Securities Act” shall
mean the Securities Act of 1933.

 

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

 

“Shelf Registration Statement”
shall mean a “shelf” registration statement of the Company that covers all or a portion of the Registrable Notes on
an appropriate form under Rule 415 under the Securities Act, or any similar rule that may be adopted by the SEC, and all amendments
and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained
therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“Staff” shall mean the
staff of the SEC.

 

“Target Registration Date”
shall mean May 4, 2022.

 

“Trust Indenture Act” shall
mean the Trust Indenture Act of 1939.

 

“Trustee” shall mean The
Bank of New York Mellon Trust Company, N.A., as successor to The Bank of New York, as trustee with respect to the Notes under the
Indenture.

 

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

 

(b)              
Each of the following terms shall have the meaning set forth in the indicated Section of this Agreement:

 

	Agreement	Preamble
	Company	Preamble
	Company Parties	Preamble
	Concho	Preamble
	COP Exchange Offer	Preamble
	Dealer Manager Agreement	Preamble
	Dealer Managers	Preamble
	Exchange Dates	Section 2(a)(ii)
	Guarantor	Preamble
	Inspector	Section 3(a)(xiv)
	Issuer Information	Section 5(a)
	Notes	Preamble
	Old Notes	Preamble
	Participating Broker-Dealers	Section 4(a)
	Shelf Effectiveness Period	Section 2(b)
	Shelf Request	Section 2(b)
	Underwriter	Section 3(f)

 

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(c)              
 In this Agreement, unless the context otherwise requires:

 

(i)             
references to a Section or Schedule are to a Section of or Schedule to this Agreement; and

 

(ii)            
references to any statute, rule or regulation are to such statute, rule or regulation as amended from time to time.

 

2.                 
Registration Under the Securities Act.

 

(a)              
To the extent not prohibited by any applicable law or applicable interpretations of the Staff, the Company Parties shall
use their commercially reasonable efforts to (x) cause to be filed an Exchange Offer Registration Statement on the appropriate
form under the Securities Act, as selected by the Company, covering an offer to the Holders to exchange all Registrable Notes for
a like aggregate principal amount of Exchange Notes and (y) have such Registration Statement become effective on or before the
Target Registration Date, and, if requested by one or more Participating Broker-Dealers, remain effective until 180 days after
the last Exchange Date for use by such Participating Broker-Dealers. The Company Parties shall commence the Exchange Offer promptly
after (but in no event later than 30 days after) the Exchange Offer Registration Statement is declared effective by the SEC, and
use their commercially reasonable efforts to complete the Exchange Offer not later than 60 days after such effective date.

 

The Company Parties shall commence the Exchange
Offer by mailing and/or electronically delivering, or by causing the mailing and/or electronic delivery of, the related Prospectus
and other accompanying documents to each Holder stating, in addition to such other disclosures as are required by applicable law,
substantially the following:

 

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

 

(ii)            
the dates of acceptance for exchange (which shall be no fewer than 20 Business Days from the date such Prospectus is mailed
and/or electronically delivered) (each, an “Exchange Date”);

 

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

 

(iv)           
that any Holder electing to have a Registrable Note exchanged pursuant to the Exchange Offer will be required to (A) surrender
such Registrable Note to the institution and at the address and in the manner specified in the Prospectus, or (B) effect such
exchange otherwise in compliance with the applicable procedures of the depositary for such Registrable Note, in each case prior
to the close of business on the last Exchange Date with respect to such Exchange Offer; and

 

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

 

As a condition to participating in an Exchange
Offer, a Holder will be required to represent to the Company Parties that (1) any Exchange Notes to be received by it will
be acquired in the ordinary course of its business, (2) at the time of the commencement of such Exchange Offer it has no arrangement
or understanding with any Person to participate in the distribution (within the meaning of the Securities Act) of the Exchange
Notes in violation of the provisions of the Securities Act, (3) it is not an “affiliate” (within the meaning of
Rule 405 under the Securities Act) of the Company, (4) if such Holder is not a broker-dealer, that it is not engaged
in, and does not intend to engage in, the distribution of the Exchange Notes and (5) if such Holder is a broker-dealer that
will receive Exchange Notes for its own account in exchange for Registrable Notes that were acquired as a result of market-making
or other trading activities, then such Holder will deliver a Prospectus (or, to the extent permitted by law, make available a Prospectus
to purchasers) in connection with any resale of such Exchange Notes.

 

As soon as practicable after the last Exchange
Date with respect to an Exchange Offer for Registrable Notes of a series, the Company Parties shall:

 

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

 

(ii)           
in cooperation with the Trustee, effect the exchange of Registrable Notes in accordance with applicable book-entry procedures.

 

The Company Parties shall use commercially
reasonable efforts to complete the Exchange Offer as provided above and shall use reasonable best efforts to comply with the applicable
requirements of the Securities Act, the Exchange Act and other applicable laws and regulations in connection with the Exchange
Offer. The Exchange Offer shall not be subject to any conditions, other than that the Exchange Offer does not violate any applicable
law or applicable interpretations of the Staff and that no action or proceeding has been instituted or threatened in any court
or by or before any governmental agency relating to the Exchange Offer which, in the Company’s judgment, could reasonably
be expected to impair the Company’s ability to proceed with the Exchange Offer.

 

Interest on each Exchange Note will accrue
from the last interest payment date on which interest was paid on the Registrable Note surrendered in the Exchange Offer, or if
no interest has been paid on the Registrable Note surrendered in the Exchange Offer, from the last interest payment date on which
interest was paid on the Old Note surrendered in the COP Exchange Offer.

 

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(b)              
 In the event that the Company Parties determine that the Exchange Offer Registration Statement provided for in Section 2(a)
is not available or the Exchange Offer may not be completed as soon as practicable after the last Exchange Date because it would
violate any applicable law or applicable interpretations of the Staff, or, if for any reason the Company Parties do not consummate
the Exchange Offer by the later of the Target Registration Date and the date the Company receives a written request (a “Shelf
Request”) from any Holder representing that it holds Registrable Notes that are or were ineligible to be exchanged in
the Exchange Offer, the Company Parties shall use their commercially reasonable efforts to cause to be filed and become effective,
as soon as practicable after such determination, date or Shelf Request, as the case may be, a Shelf Registration Statement on the
appropriate form under the Securities Act, as selected by the Company, providing for the sale of all the Registrable Notes by the
Holders thereof and to have such Shelf Registration Statement become effective; provided that (a) no Holder will be
entitled to have any Registrable Notes included in any Shelf Registration Statement, or entitled to use the Prospectus forming
a part of such Shelf Registration Statement, until such Holder shall have delivered a completed and signed Notice and Questionnaire
and provided such other information regarding such Holder to the Company Parties as is contemplated by Section 3(c) and, if
necessary, the Shelf Registration Statement has been amended to reflect such information, and (b) the Company Parties shall
be under no obligation to file or cause to become effective any such Shelf Registration Statement before they are obligated to
file or cause to become effective an Exchange Offer Registration Statement pursuant to Section 2(a).

 

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

 

(c)              
The Company shall pay all Registration Expenses in connection with any registration pursuant to Section 2(a) or Section 2(b).
Each Holder shall pay all underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to
the sale or disposition of such Holder’s Registrable Notes pursuant to the Shelf Registration Statement.

 

(d)              
An Exchange Offer Registration Statement pursuant to Section 2(a) will not be deemed to have become effective unless
it has been declared effective by the SEC. A Shelf Registration Statement pursuant to Section 2(b) will not be deemed to have
become effective unless it has been declared effective by the SEC or is automatically effective upon filing with the SEC as provided
by Rule 462 under the Securities Act.

 

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If a Registration Default occurs with respect
to a series of Registrable Notes, the interest rate on the Registrable Notes (and only the Registrable Notes) of such series will
be increased by (i) 0.25% per annum for the first 90 day period beginning on the day immediately following such Registration
Default and (ii) an additional 0.25% per annum with respect to each subsequent 90 day period, in each case until and including
the date such Registration Default ends, up to a maximum increase of 1.00% per annum. A Registration Default ends with respect
to any Note when such Note ceases to be a Registrable Note or, if earlier, (1) in the case of a Registration Default under
clause (i) or (ii) of the definition thereof, when the Exchange Offer is completed or when the Shelf Registration Statement covering
such Registrable Notes becomes effective or (2) in the case of a Registration Default under clause (iii) of the definition thereof,
when the Registration Statement again becomes effective or the Prospectus again becomes usable. If at any time more than one Registration
Default has occurred and is continuing, then, until the next date that there is no Registration Default, the increase in interest
rate provided for by this paragraph shall apply as if there occurred a single Registration Default that begins on the date that
the earliest such Registration Default occurred and ends on the next date that there is no Registration Default.

 

Notwithstanding anything to the contrary in
this Agreement, if the Exchange Offer is consummated, any Holder who was, at the time the Exchange Offer was pending and consummated,
eligible to exchange and did not validly tender its Registrable Notes in the Exchange Offer, or withdrew its Registrable Notes
for Exchange Notes from the Exchange Offer, will not be entitled to receive any additional interest pursuant to the preceding paragraph,
and upon the completion of the Exchange Offer, such Notes will no longer constitute Registrable Notes hereunder.

 

Any amounts of additional interest due under
this Section 2(d) will be payable in cash on the regular interest payment dates of the Notes. The additional interest will
be determined by multiplying the applicable additional interest rate by the principal amount of the Notes, multiplied by a fraction,
the numerator of which is the number of days such additional interest rate was applicable during such period (determined on the
basis of a 360-day year composed of twelve 30-day months, but it being understood that if the regular interest payment date of
the Notes is not a Business Day and the payment is made on the next succeeding Business Day, no further interest will accrue as
a result of such delay), and the denominator of which is 360.

 

(e)               The
Company Parties shall be entitled to suspend their obligation to file any amendment to a Shelf Registration Statement,
furnish any supplement or amendment to a Prospectus included in a Shelf Registration Statement or any Free Writing
Prospectus, make any other filing with the SEC that would be incorporated by reference into a Shelf Registration Statement,
cause a Shelf Registration Statement to remain effective or the Prospectus or any Free Writing Prospectus usable or take any
similar action if there is a possible acquisition, disposition or business combination or other transaction, business
development or event involving the Company Parties or their subsidiaries that may require disclosure in the Shelf
Registration Statement or Prospectus and the Company Parties determine that such disclosure is not in the best interest of
the Company Parties and their stockholders or if obtaining any financial statements relating to any such acquisition or
business combination required to be included in the Shelf Registration Statement or Prospectus would be impracticable. Upon
the occurrence of any of the conditions described in the foregoing sentence, the Company shall give prompt notice of the
delay or suspension (but not the basis thereof) to the Participating Holders. Upon the termination of such condition, the
Company Parties shall promptly proceed with all obligations that were delayed or suspended pursuant to this Section 2(e) and,
if required, shall give prompt notice to the Participating Holders of the cessation of the delay or suspension (but not the
basis thereof).

 

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(f)               
Without limiting the remedies available to the Holders, the Company Parties acknowledge that any failure to comply with
their obligations under Section 2(a) and Section 2(b) may result in material irreparable injury to 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, any Holder may seek to specifically enforce the Company Parties’ obligations under Section 2(a)
and Section 2(b).

 

3.                 
Registration Procedures.

 

(a)              
In connection with their obligations pursuant to Sections 2(a) and (b), the Company Parties shall use commercially
reasonable efforts to:

 

(i)            
prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary
to keep such Registration Statement effective for the applicable period in accordance with Section 2 and cause each Prospectus
to be supplemented by any required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424 under the
Securities Act; and keep each Prospectus current during the period described in Section 4(3) of, and Rule 174 under,
the Securities Act that is applicable to transactions by brokers or dealers with respect to the Registrable Notes or Exchange Notes;

 

(ii)           
to the extent any Free Writing Prospectus is used, file with the SEC any Free Writing Prospectus that is required to be
filed by the Company Parties with the SEC in accordance with the Securities Act and to retain a copy of any Free Writing Prospectus
not required to be filed;

 

(iii)           in
the case of a Shelf Registration, furnish to each Participating Holder, to counsel for such Participating Holders and to each
Underwriter of an Underwritten Offering of Registrable Notes, if any, without charge, as many copies of each Prospectus,
preliminary prospectus or Free Writing Prospectus, and any amendment or supplement thereto (other than any document that
amends and supplements any Prospectus, preliminary prospectus or Free Writing Prospectus because it is incorporated by
reference therein), as such Participating Holder, counsel or Underwriter may reasonably request in writing in order to
facilitate the sale or other disposition of the Registrable Notes thereunder; and, subject to Section 3(d), the Company
Parties consent to the use of such Prospectus, preliminary prospectus or such Free Writing Prospectus and any amendment or
supplement thereto in accordance with applicable law by each of the Participating Holders and any such Underwriters in
connection with the offering and sale of the Registrable Notes covered by and in the manner described in such Prospectus,
preliminary prospectus or such Free Writing Prospectus or any amendment or supplement thereto in accordance with applicable
law;

 

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(iv)          
register or qualify the Registrable Notes under all applicable state securities or blue sky laws of such jurisdictions of
the United States as any Participating Holder shall reasonably request in writing by the time the applicable Registration Statement
becomes effective; cooperate with such Participating Holders in connection with any filings required to be made with FINRA; and
do any and all other acts and things within the Company Parties’ reasonable control that may be reasonably necessary to enable
each Participating Holder to remove any legal impediments to completing the disposition in each such jurisdiction of the Registrable
Notes owned by such Participating Holder; provided that neither of the Company Parties shall be required to (1) qualify
as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be
required to so qualify, (2) execute or file any general consent to service of process in any such jurisdiction or (3) subject
itself to taxation or service of process in any such jurisdiction if it is not already so subject;

 

(v)            notify
counsel for the Dealer Managers (it being understood that for purposes of this Agreement, such references to such counsel
shall mean counsel on the date of this Agreement unless the Dealer Managers notify the Company in writing otherwise) and, in
the case of a Shelf Registration, notify each Participating Holder and counsel for such Participating Holders (it being
understood that for purposes of this Agreement, references to such counsel shall only be applicable to the extent that the
Company has been provided with contact information for such counsel) promptly and, if requested by any such Participating
Holder or counsel, confirm such advice in writing (1) when a Registration Statement has become effective, when any
post-effective amendment thereto has been filed and becomes effective, when any Free Writing Prospectus has been filed or any
amendment or supplement to the Prospectus or any Free Writing Prospectus has been filed, (2) of the issuance by the SEC
or any state securities authority of any stop order suspending the effectiveness of a Registration Statement or the
initiation of any proceedings for that purpose, including the receipt by the Company Parties of any notice of objection of
the SEC to the use of a Shelf Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2)
under the Securities Act, (3) if, between the applicable effective date of a Shelf Registration Statement and the
closing of any sale of Registrable Notes covered thereby, the representations and warranties of the Company Parties contained
in any underwriting agreement, securities sales agreement or other similar agreement, if any, relating to such offering of
such Registrable Notes cease to be true and correct in all material respects or if the Company Parties receive any
notification with respect to the suspension of the qualification of the Registrable Notes for sale in any U.S. jurisdiction
or the initiation of any proceeding for such purpose, (4) of the happening of any event during the period a Registration
Statement is effective that makes any statement made in such Registration Statement or the related Prospectus or any Free
Writing Prospectus untrue in any material respect or that requires the making of any changes in such Registration Statement
or Prospectus or any Free Writing Prospectus in order to make the statements therein not misleading and (5) of any
determination by the Company Parties that a post-effective amendment to a Registration Statement or any amendment or
supplement to the Prospectus or any Free Writing Prospectus would be appropriate;

 

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(vi)         
notify counsel for the Dealer Managers or, in the case of a Shelf Registration, notify each Participating Holder and counsel
for such Participating Holders, of any request by the SEC or any state securities authority for amendments and supplements to a
Registration Statement, Prospectus or any Free Writing Prospectus or for additional information after the Registration Statement
has become effective;

 

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

 

(viii)       
in the case of a Shelf Registration, furnish to each Participating Holder, without charge, upon request, at least one conformed
copy of each Registration Statement and any post-effective amendment thereto (without any documents incorporated therein by reference
or exhibits thereto, unless requested), if such documents are not available via EDGAR;

 

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

 

(x)            upon
the occurrence of any event contemplated by Section 3(a)(v)(4), prepare and file with the SEC a supplement or
post-effective amendment to the applicable Exchange Offer Registration Statement or Shelf Registration Statement or the
related Prospectus or any Free Writing Prospectus or any document incorporated therein by reference or file any other
required document so that, as thereafter delivered (or, to the extent permitted by law, made available) to purchasers of the
Registrable Notes, such Exchange Offer Registration Statement, Shelf Registration Statement, related Prospectus or Free
Writing Prospectus, as the case may be, will not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;
and the Company Parties shall notify the Participating Holders (in the case of a Shelf Registration Statement) and the Dealer
Managers and any Participating Broker-Dealers known to the Company Parties (in the case of an Exchange Offer Registration
Statement) to suspend use of the Prospectus or any Free Writing Prospectus as promptly as practicable after the occurrence of
such an event, and such Participating Holders, the Dealer Managers and such Participating Broker-Dealers, as applicable,
hereby agree to suspend use of the Prospectus or any Free Writing Prospectus, as the case may be, until the Company Parties
have amended or supplemented the Prospectus or the Free Writing Prospectus, as the case may be, to correct such misstatement
or omission; provided that the Company Parties shall not be required to take any action pursuant to this Section
3(a)(x) during any suspension period pursuant to Sections 2(e) or 3(d);

 

    11

     

    

 

(xi)          
a reasonable time prior to the filing of any Registration Statement, any Prospectus, any Free Writing Prospectus, any amendment
to a Registration Statement or amendment or supplement to a Prospectus or a Free Writing Prospectus, provide copies of such document
to the Dealer Managers and their counsel (and, in the case of a Shelf Registration Statement, to the Participating Holders and
their counsel) and make such of the representatives of the Company Parties as shall be reasonably requested by the Dealer Managers
or their counsel (and, in the case of a Shelf Registration Statement, the Participating Holders or their counsel) available for
discussion of such document at reasonable times and upon reasonable notice; and the Company Parties shall not, at any time after
initial filing of a Registration Statement, use or file any Prospectus, any Free Writing Prospectus, any amendment of or supplement
to a Registration Statement or a Prospectus or a Free Writing Prospectus, of which the Dealer Managers and their counsel (and,
in the case of a Shelf Registration Statement, the Participating Holders and their counsel) shall not have previously been advised
and furnished a copy or to which the Dealer Managers or their counsel (and, in the case of a Shelf Registration Statement, the
Participating Holders or their counsel) shall reasonably object in writing within two Business Days after the receipt thereof,
unless the Company Parties believe that use or filing of such Prospectus, Free Writing Prospectus, or any amendment of or supplement
thereto is required by applicable law;

 

(xii)        
obtain a CUSIP number for each series of Exchange Notes (or of Registrable Notes of each series that are registered on a
Shelf Registration Statement) not later than the initial effective date of a Registration Statement;

 

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

 

(xiv)         in
the case of a Shelf Registration, make available for inspection by a representative of the Participating Holders (an
 “Inspector”) and any Underwriters participating in the applicable disposition pursuant to such Shelf
Registration Statement, one firm of attorneys and one firm of accountants designated by a majority in aggregate principal
amount of the Registrable Notes held by the Participating Holders and one firm of attorneys and one firm of accountants
designated by such Underwriters, at reasonable times and in a reasonable manner, all pertinent financial and other records,
documents and properties of the Company and its subsidiaries reasonably requested by any such Inspector, Underwriter,
attorney or accountant, and cause the respective officers, directors and employees of the Company Parties to supply all
information reasonably requested by any such Inspector, Underwriter, attorney or accountant in connection with customary due
diligence related to the offering and sale of Registrable Notes under a Shelf Registration Statement, subject to such parties
conducting such investigation entering into confidentiality agreements as the Company Parties may reasonably require and to
any applicable privilege or pre-existing contractual confidentiality obligations;

 

    12

     

    

 

(xv)         
if reasonably requested by any Participating Holder, promptly include or incorporate by reference in a Prospectus supplement
or post-effective amendment such information with respect to such Participating Holder as such Participating Holder reasonably
requests to be included therein, based upon a reasonable belief that such information is required to be included therein or is
necessary to make the information about such Participating Holder not misleading, and make all required filings of such Prospectus
supplement or such post-effective amendment as soon as reasonably practicable after the Company Parties have received notification
of the matters to be so included in such filing; and

 

(xvi)         in
the case of a Shelf Registration, enter into such customary agreements and take all such other actions in connection
therewith (including those requested by the Participating Holders of a majority in principal amount of the Registrable Notes
covered by the Shelf Registration Statement) in order to expedite or facilitate the disposition of such Registrable Notes
including, but not limited to, in connection with an Underwritten Offering, (1) to the extent possible, making such
representations and warranties to the Participating Holders and any Underwriters of such Registrable Notes with respect to
the business of the Company and its subsidiaries and the Registration Statement, Prospectus, any Free Writing Prospectus and
documents incorporated by reference or deemed incorporated by reference, if any, in each case, in form, substance and scope
as are customarily made by issuers and guarantors, as applicable, to underwriters in underwritten offerings and consistent
with the applicable representations and warranties in the Dealer Manager Agreement and confirm the same if and when
requested, (2) obtaining opinions of counsel to the Company Parties (which counsel and opinions, in form, scope and
substance, shall be reasonably satisfactory to the Participating Holders and such Underwriters and their respective counsel)
addressed to the Underwriters of Registrable Notes, covering the matters customarily covered in opinions requested in
underwritten offerings and consistent with the opinions delivered pursuant to the Dealer Manager Agreement, as modified for a
registered offering, provided that, if required by the Underwriters, counsel for the Participating Holders shall
provide an opinion to the Underwriters covering the matters customarily covered in opinions requested from selling
securityholders by underwriters in underwritten offerings, in connection with an Underwritten Offering, (3) in
connection with an Underwritten Offering, obtain “comfort” letters from the independent registered public
accountants of the Company (and, if necessary, any other registered public accountant of any subsidiary of the Company, or of
any business acquired by the Company for which financial statements and financial data are or are required to be included in
the Registration Statement) addressed to the Underwriters of Registrable Notes, such letters to be in customary form and
covering matters of the type customarily covered in “comfort” letters in connection with underwritten offerings,
including but not limited to financial information contained in any preliminary prospectus, Prospectus or Free Writing
Prospectus and (4) in connection with an Underwritten Offering, deliver such documents and certificates as may be
reasonably requested by the Underwriters, and which are customarily delivered in underwritten offerings, to evidence the
continued validity of the representations and warranties made pursuant to clause (1) above and to evidence compliance
with any customary conditions contained in an underwriting agreement.

 

    13

     

    

 

(b)              
The Company Parties will comply in all material respects with all rules and regulations of the SEC to the extent and so
long as they are applicable to the Exchange Offer or the Shelf Registration.

 

(c)              
In the case of a Shelf Registration Statement, the Company Parties may require, as a condition to including such Holder’s
Registrable Notes in such Shelf Registration Statement, each Holder of Registrable Notes to furnish to the Company Parties a Notice
and Questionnaire and such other information regarding such Holder and the proposed disposition by such Holder of such Registrable
Notes and other documentation necessary to effectuate the proposed disposition as the Company Parties may from time to time reasonably
request in writing and require such Holder to agree in writing to be bound by all provisions of this Agreement applicable to such
Holder. Each Holder of Registrable Notes as to which any Shelf Registration is being effected agrees to furnish promptly to the
Company Parties all information required to be disclosed so that the information previously furnished to the Company Parties by
such Holder is not materially misleading and does not omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading in the light of the circumstances under which they were made.

 

(d)              
Each Participating Holder agrees that, upon receipt of any notice from the Company Parties of the happening of any event
of the kind described in Section 3(a)(v)(2), such Participating Holder will forthwith discontinue disposition of Registrable
Notes pursuant to the Shelf Registration Statement until it receives notice from the Company Parties of the cessation of any event
of the kind described in Section 3(a)(v)(2), and upon receipt of any notice from the Company Parties of the happening of any event
of the kind described in Section 3(a)(v)(4), such Participating Holder will forthwith discontinue disposition of Registrable
Notes pursuant to the Shelf Registration Statement until it receives the copies of the supplemented or amended Prospectus and any
Free Writing Prospectus contemplated by Section 3(a)(x) and, if so directed by the Company Parties, such Participating Holder
will deliver to the Company Parties all copies in its possession, other than permanent file copies then in such Participating Holder’s
possession, of the Prospectus and any Free Writing Prospectus covering such Registrable Notes that is current at the time of receipt
of such notice.

 

(e)               If
the Company Parties shall give any notice to suspend the disposition of Registrable Notes pursuant to a Registration
Statement, the Company Parties shall not be required to maintain the effectiveness thereof during the period of such
suspension, and the Company Parties shall extend the period during which such Registration Statement shall be maintained
effective pursuant to this Agreement by the number of days during the period from and including the date of the giving of
such notice to and including the date when the Holders of such Registrable Notes shall have received copies of the
supplemented or amended Prospectus or any Free Writing Prospectus necessary to resume such dispositions or notice that such
amendment or supplement is not necessary; provided that no such extension shall be made in the case where such
suspension is solely a result of the Company Parties’ compliance with Section 3(c) or any other suspension at the
request of a Holder.

 

    14

     

    

 

(f)               
The Participating Holders who desire to do so may sell such Registrable Notes in an Underwritten Offering. In any such Underwritten
Offering, the investment bank or investment banks and manager or managers (each an “Underwriter”) that will
administer the offering will be selected by the Holders of a majority in principal amount of the Registrable Notes included in
such offering, subject in each case to consent by the Company (which shall not be unreasonably withheld or delayed so long as such
bank or manager is internationally recognized as an underwriter of debt securities offerings). All fees, costs and expenses of
the Underwriters, except for Registration Expenses, shall be borne solely by the Participating Holders.

 

(g)              
No Holder of Registrable Notes may participate in any Underwritten Offering hereunder unless such Holder (i) agrees
to sell such Holder’s Registrable Notes on the basis provided in any underwriting arrangements approved by the Persons entitled
hereunder to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such underwriting arrangements.

 

4.                 
Participation of Broker-Dealers in Exchange Offer.

 

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

 

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

 

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

 

    15

     

    

 

(c)              
The Dealer Managers shall have no liability to the Company Parties or any Holder with respect to any request that such Dealer
Managers may make pursuant to Section 4(b).

 

5.                 
Indemnification and Contribution.

 

(a)              
The Company Parties will, jointly and severally, indemnify and hold harmless the Dealer Managers, each Holder, their respective
directors, officers and employees, each person, if any, who controls any Dealer Manager or any Holder within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act, and each affiliate of any Dealer Manager within the
meaning of Rule 405 under the Securities Act from and against any and all losses, claims, damages and liabilities, joint or several,
to which such Dealer Manager, Holder, director, officer, employee, controlling person or affiliate may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of
or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, any
Prospectus as amended or supplemented, any Free Writing Prospectus or any “issuer information” (“Issuer Information”)
filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or arise out of or are based upon the omission
or alleged omission to state therein a material fact necessary in order to make the statements therein in the light of the circumstances
under which they were made not misleading, and will reimburse each such Dealer Manager, Holder, director, officer, employee, controlling
person or affiliate for any legal or other out-of-pocket expenses reasonably incurred by such Dealer Manager, Holder, director,
officer, employee, controlling person or affiliate in connection with investigating or defending any such loss, damage, liability,
action or claim as such expenses are incurred; provided that the Company Parties shall not be liable in any such case to
the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in any Registration Statement, any Prospectus as amended or supplemented, any Free
Writing Prospectus or any Issuer Information in reliance upon and in conformity with information relating to any Dealer Manager
or any Holder furnished to the Company Parties in writing by such Dealer Manager or by such Holder expressly for use therein.

 

(b)               Each
Holder will, severally and not jointly, indemnify and hold harmless the Company Parties, the Dealer Managers and the selling
Holders, the directors, officers and employees of the Company Parties and any Dealer Manager, each Person, if any, who
controls the Company Parties, any Dealer Manager and any selling Holder (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) and each affiliate of any Dealer Manager within the meaning of Rule
405 under the Securities Act against any losses, claims, damages or liabilities to which the Company Parties, or such Dealer
Manager or selling Holder, director, officer, employee, controlling person or affiliate may become subject, under the
Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) that
arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement, any Prospectus as amended or supplemented or any Free Writing Prospectus, or arise out of or are
based upon the omission or alleged omission to state therein a material fact necessary in order to make the statements
therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in any Registration Statement, any Prospectus as amended or supplemented
or any Free Writing Prospectus in reliance upon and in conformity with written information relating to such Holder furnished
to the Company Parties by such Holder; and each Holder will reimburse the Company Parties, and such Dealer Manager, selling
Holder, director, officer, employee, controlling person and affiliate for any legal or other out-of-pocket expenses
reasonably incurred by such Person or Persons in connection with investigating, or defending any such loss, damage,
liability, action or claim as such expenses are incurred, but only with reference to information relating to such Holder
furnished to the Company Parties in writing by such Holder expressly for use in any Registration Statement, any Prospectus or
any Free Writing Prospectus.

 

    16

     

    

 

(c)              
Promptly after receipt by an indemnified party under subsection (a) or (b) of this Section 5 of notice of the commencement
of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such
subsection, notify the indemnifying party in writing of the commencement thereof; but the omission to so notify the indemnifying
party shall not relieve it from any liability which it may have to any indemnified party except to the extent such omission materially
prejudices the indemnifying party. In case any such action shall be brought against any indemnified party, the indemnifying party
shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly
notified, assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with
the consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified
party under such subsection for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by
such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, and shall not be liable
for any settlement of any proceeding effected without its written consent, such consent not to be unreasonably withheld, delayed
or conditioned.

 

(d)               To
the extent the indemnification provided for in subsection (a) or (b) of this Section 5 is unavailable to an
indemnified party or insufficient in respect of any losses, claims, damages or liabilities referred to therein (or actions in
respect thereof), then each indemnifying party under such paragraph, in lieu of indemnifying such indemnified party
thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims,
damages or liabilities in such proportion as is appropriate to reflect the relative benefits received by the Company Parties
from the offering of the Notes or Exchange Notes, on the one hand, and the Holders from receiving Notes or Exchange Notes
registered under the Securities Act, on the other. If, however, the allocation provided by the immediately preceding sentence
is not permitted by applicable law, then each indemnifying party shall contribute to such amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only the relative benefits but also the relative fault
of the Company Parties on the one hand and the Holders on the other in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of the Company Parties on the one hand and the Holders on the other shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the Company Parties on the one hand
or such Holder on the other and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

 

    17

     

    

 

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

 

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

 

(g)              
The indemnity and contribution provisions contained in this Section 5 shall remain operative and in full force and
effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of the Dealer
Managers, any Holder, any Person controlling any Dealer Manager or any Holder or any affiliate of any Dealer Manager, or by or
on behalf of the Company Parties, their officers or directors or any Person controlling the Company Parties, (iii) any acceptance
of any of the Exchange Notes in the Exchange Offer and (iv) any sale of Registrable Notes pursuant to a Shelf Registration
Statement.

 

6.                 
General.

 

(a)              
No Inconsistent Agreements. Each of the Company Parties represents, warrants and agrees that it has not entered into,
and on or after the date of this Agreement will not enter into, any agreement that is inconsistent with the rights granted to the
Holders of Registrable Notes in this Agreement or otherwise conflicts with the provisions hereof.

 

(b)               Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given unless the Company Parties
have obtained the written consent of Holders of at least a majority in aggregate principal amount of the outstanding
Registrable Notes affected by such amendment, modification, supplement, waiver or consent; provided that no amendment,
modification, supplement, waiver or consent to any departure from the provisions of Section 5 shall be effective as
against any Holder of Registrable Notes unless consented to in writing by such Holder. Any amendments, modifications,
supplements, waivers or consents pursuant to this Section 6(b) shall be by a writing executed by each of the parties
hereto. Each Holder of Registrable Notes outstanding at the time of any such amendment, modification, supplement, waiver or
consent thereafter shall be bound by any such amendment, modification, supplement, waiver or consent effected pursuant to
this Section 6(b), whether or not any notice, writing or marking indicating such amendment, modification, supplement,
waiver or consent appears on the Registrable Notes or is delivered to such Holder. Notwithstanding the foregoing, each Holder
may waive compliance with respect to any obligation of the Company Parties under this Agreement as it may apply or be
enforced by such particular Holder.

 

    18

     

    

 

(c)              
Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery,
registered first-class mail, email, telecopier, or any courier guaranteeing overnight delivery (i) if to the Company Parties
or any Dealer Manager, initially at its address set forth in the Dealer Manager Agreement and thereafter at such other address(es),
notice of which is given in accordance with the provisions of this Section 6(c) and (ii) if to a Holder or any other
Person, at the most current address given by such Holder or such other Person to the Company Parties by means of a notice given
in accordance with the provisions of this Section 6(c). All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; three Business Days after being deposited in the mail, postage prepaid,
if mailed; when receipt is acknowledged, if emailed or telecopied; and on the next Business Day if timely delivered to an air courier
guaranteeing overnight delivery.

 

(d)              
Majority of Holders. Whenever an action or determination under this Agreement requires a majority of the aggregate
principal amount of the applicable Holders, in determining such majority, if the Company shall issue any additional Notes under
the Indenture prior to consummation of the Exchange Offer or, if applicable, the effectiveness of any Shelf Registration Statement,
then such additional Notes and the Registrable Notes to which this Agreement relates shall be treated together as one class for
purposes of determining whether the consent or approval of Holders of a specified percentage of Registrable Notes has been obtained.

 

(e)               Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors, assigns and transferees of
each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders; provided that
nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Notes in violation of
the terms of the Indenture. If any transferee of any Holder shall acquire Registrable Notes in any manner, whether by
operation of law or otherwise, such Registrable Notes shall be held subject to all the terms of this Agreement, and by taking
and holding such Registrable Notes such Person shall be conclusively deemed to have agreed to be bound by and to perform all
of the terms and provisions of this Agreement and such Person shall be entitled to receive the benefits hereof. The Dealer
Managers (in their capacity as Dealer Managers) shall have no liability or obligation to the Company Parties with respect to
any failure by a Holder to comply with, or any breach by any Holder of, any of the obligations of such Holder under this
Agreement.

 

    19

     

    

 

(f)               
Third Party Beneficiaries. Each Holder (including any Participating Broker-Dealer for purposes of Sections 4 and
5) shall be a third party beneficiary of the agreements made hereunder between the Company Parties, on the one hand, and the Dealer
Managers, on the other hand, and shall have the right to enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights or the rights of other Holders (including Participating Broker-Dealers for purposes
of Sections 4 and 5) hereunder, as applicable.

 

(g)              
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument, and shall become effective when one or more
counterparts have been signed by each of the parties and delivered (by telecopy, electronic delivery or otherwise) to the other
parties. Signatures to this Agreement transmitted by facsimile transmission, by email in “portable document format”
(“.pdf”) form, or by any other electronic means intended to preserve the original graphic and pictorial appearance
of a document, will have the same effect as physical delivery of the paper document bearing the original signature.

 

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

 

(i)                
Governing Law; Waiver of Jury Trial. This Agreement, and any claim, controversy
or dispute arising under or related to this Agreement, shall be governed by and construed in accordance with the laws of the State
of New York, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW THAT
WOULD APPLY THE LAW OF ANY OTHER JURISDICTION. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF
THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. THE PARTIES HERETO EACH HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY
IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

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

 

    20

     

    

 

(k)              
Notes Held by the Company Parties or their Affiliates. Whenever the consent or approval of Holders of a specified
percentage of a series of Registrable Notes is required hereunder, Registrable Notes of such series held by the Company Parties
or their “affiliates” (as such term is defined in Rule 405 under the Securities Act) shall not be counted in determining
whether such consent or approval was given by the Holders of such required percentage.

 

    21

     

    

 

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

 

	 	CONOCOPHILLIPS
	 	 	 	 
	 	By:	/s/ Glenda M. Schwarz
	 	 	Name:	Glenda M. Schwarz
	 	 	Title:	Vice President and Treasurer
	 	 	 	 
	 	CONOCOPHILLIPS COMPANY
	 	 	 	 
	 	By:	/s/ Glenda M. Schwarz
	 	 	Name:	Glenda M. Schwarz
	 	 	Title:	Vice President and Treasurer

 

[Signature Page
to Registration Rights Agreement]

 

     

     

    

 

Confirmed and accepted as of the date first above written:

 

	BARCLAYS CAPITAL INC.	 
	 	 	 
	By: 	/s/ Pamela Au	 
	 	Name: Pamela Au	 
	 	Title:   Managing Director	 

 

	BOFA SECURITIES, INC.	 
	 	 	 
	By: 	/s/ David Scott	 
	 	Name: David Scott	 
	 	Title:   Managing Director	 

 

	CITIGROUP GLOBAL MARKETS INC.	 
	 	 	 
	By: 	/s/ Adam D. Bordner	 
	 	Name: Adam D. Bordner	 
	 	Title:   Director	 

 

	BMO CAPITAL MARKETS CORP.	 
	 	 	 
	By: 	/s/ Ashlyn Primm	 
	 	Name: Ashlyn Primm	 
	 	Title:   Global Head of Liability Management, Managing Director	 

 

	CREDIT AGRICOLE SECURITIES (USA) INC.	 
	 	 	 
	By: 	/s/ Ivan Hrazdira	 
	 	Name: Ivan Hrazdira	 
	 	Title:   Managing Director	 

 

	GOLDMAN SACHS & CO. LLC	 
	 	 	 
	By: 	/s/ Michael Rost	 
	 	Name: Michael Rost	 
	 	Title:   Managing Director	 

 

[Signature Page
to Registration Rights Agreement]

 

     

     

    

 

	HSBC SECURITIES (USA) INC.	 
	 	 	 
	By: 	/s/ Jeremy Warren	 
	 	Name: Jeremy Warren	 
	 	Title:   Managing Director	 

 

	MIZUHO SECURITIES USA LLC	 
	 	 	 
	By: 	/s/ Michael L. Saron	 
	 	Name: Michael L. Saron	 
	 	Title:   Managing Director	 

 

	MUFG SECURITIES AMERICAS INC.	 
	 	 
	By: 	/s/ Thomas Reader	 
	 	Name: Thomas Reader	 
	 	Title:   Managing Director	 

 

	RBC CAPITAL MARKETS, LLC	 
	 	 	 
	By: 	/s/ Scott Primrose	 
	 	Name: Scott Primrose	 
	 	Title:   Authorized Signatory	 

 

	SMBC NIKKO SECURITIES AMERICA, INC.	 
	 	 	 
	By: 	/s/ Omar F. Zaman	 
	 	Name: Omar F. Zaman	 
	 	Title:   Managing Director	 

 

	TD SECURITIES (USA) LLC	 
	 	 	 
	By: 	/s/ Luiz Lanfredi	 
	 	Name: Luiz Lanfredi	 
	 	Title:   Director	 

 

[Signature Page to Registration Rights Agreement]

 

     

     

    

 

	WELLS FARGO SECURITIES, LLC	 
	 	 	 
	By: 	/s/ Carolyn Hurley	 
	 	Name: Carolyn Hurley	 
	 	Title:   Managing Director	 

 

[Signature Page to Registration Rights Agreement]

 

     

     

    

 

SCHEDULE A

 

	
        Title
        of Series of Notes
	
        CUSIP
        No. of Notes
	
        Aggregate
Principal 

Amount Outstanding

	
        144A
	
        Regulation
        S

	3.750% Notes due 2027	20825CAV6	U20845AD2	$	981,172,000.00
	4.300% Notes due 2028	20825CAX2	U20845AE0	$	972,920,000.00
	2.400% Notes due 2031	20825CAZ7	U20845AF7	$	489,351,000.00
	4.875% Notes due 2047	20825CBB9	U20845AG5	$	799,770,000.00
	4.850% Notes due 2048	20825CBD5	U20845AH3	$	589,822,000.00tsla-ex1039_377.htm

 

Certain identified information has been omitted from this document because it is not material and would be competitively harmful if publicly disclosed, and has been marked with “[***]” to indicated where omissions have been made.

Exhibit 10.39

2021 Pricing Agreement (Japan Cells)

PPA Effective Date: 10/01/2020

				
	
Seller’s Vendor Number with Tesla:
	
106644
			
	
[***] Pricing Validity Period: 
	
1/1/2021
	
through
	
7/31/2022

	
[***] Volume Commitment Period: 
	
1/1/2021
	
through
	
7/31/2022

	
[***] Pricing Validity Period:
	
1/1/2021
	
through
	
3/31/2022

	
[***] Volume Commitment Period:
	
4/1/2021
	
through
	
3/31/2022

	
Seller Guaranteed Capacity Commitment during each Volume Commitment Period:
	
See Section 3 below

	
Payment Terms:
	
[***] – DAP (Incoterms 2010) Fremont, California or Oakland Port or FCA (Incoterms 2010) Seller’s designated location in Japan, as applicable (depending on Cell type) 

	
1.
	
This 2021 Pricing Agreement (Japan Cells) (the “PPA”) is entered into by the Tesla, Inc. and Tesla Motors Netherlands B.V. (collectively, “Tesla”) and Panasonic Corporation of North America (“PNA”), and SANYO Electric Co., Ltd. acting through Tesla Energy Business Division, the assignee of the Supply Agreement from Panasonic Corporation, acting through Energy Company (“Sanyo”) (collectively, “Seller”) (each a “Party”; collectively, the “Parties”) with respect to the cylindrical lithium-ion battery cells referenced herein made by or on behalf of Seller (collectively, "Cells") in Japan. The Parties shall meet and confer in good faith to finalize an agreed, written Specification for each type of Cells, including the agreed watt-hour (Wh) capacity and size.  The pricing herein shall apply to Cells produced by Seller in Japan and continue throughout the Pricing Period. Terms used herein with initial capitalization have the meanings given where used or in the Japan Contract (as defined below). Unless expressly stated otherwise, all quarterly dates in this PPA refer to the calendar year and not a Party’s fiscal year. Subject to Exhibit C, in the event of any conflict between the terms of this PPA and the 2019 Pricing Agreement (Japan Cells) between the Parties (the “2019 PPA”), the terms of the 2019 PPA shall take precedence over those in this PPA to the extent of the conflict until the end of the Pricing Validity Period in the 2019 PPA. 

	
2.
	
Orders.  Tesla and any of its Affiliates (“Authorized Purchaser”) may order goods pursuant to Orders issued directly to Seller and each such Order shall be governed by the Japan Contract.  The applicable delivery dates will be specified in Orders issued and accepted per Section 3 (Forecasts and Orders) of the Supply Agreement or otherwise agreed in writing by the Parties.  Seller shall direct all invoices under an Order to the Tesla entity identified in the Order.  

	
3.
	
Volumes.  

	
 
	
a.
	
[***] Cell Volumes.

	
 
	
i.
	
Seller shall guarantee availability of [***] Cells produced on [***] at [***] Japan (“[***]”) during the [***] Volume Commitment Period up to a volume of [***] Cells (the “[***] Seller Guaranteed Capacity Commitment”). Seller and Tesla shall have a good faith discussion with regard to a corresponding reduction in Seller’s Guaranteed Capacity Commitment in the event that Tesla significantly reduces its Orders for [***] Cells as a result of [***].

 

2021 Pricing Agreement (Japan Cells)Page 1 of 12

 

	
 
	
ii.
	
Tesla commits to order and purchase a minimum volume of [***] conforming and non-defective [***] Cells produced on [***] during the [***] Volume Commitment Period (“[***] Purchase Commitment”).  

	
 
	
iii.
	
In the event that the actual production volume of [***] Cells produced on [***] during the [***] Volume Commitment Period exceeds the [***] Seller Guaranteed Capacity Commitment and Tesla desires to purchase a volume of [***] Cells in excess of the [***] Purchase Commitment, the Parties shall discuss Tesla’s request in good faith. 

	
 
	
iv.
	
If Tesla and its Authorized Purchasers fail, collectively, to order an aggregate volume of [***] Cells produced on [***] from Seller at least equal to the [***] Purchase Commitment during the [***] Volume Commitment Period and purchase the Cells delivered by Seller in connection with such Orders, then, [***], Tesla will, [***] subject to Sections 3.c through 3.e. below, [***] for the shortfall volume not ordered pursuant to the foregoing clause (“[***] Shortfall Volume”) (and neither Tesla nor its Authorized Purchasers would [***]); provided that, upon Tesla’s request to Seller in writing [***], the Parties shall discuss in good faith [***] by Tesla and/or its Authorized Purchasers for the [***] Shortfall Volume (subject to the then [***] of [***]) before the end of the [***] Volume Commitment Period as an alternative to the foregoing [***]; further provided that the [***] in response to [***] shall be [***] after the end of [***] Volume Commitment Period.

	
 
	
b.
	
[***] Cell Volumes.

	
 
	
i.
	
Seller shall guarantee availability of [***] Cells produced at the [***] and [***] factories on the production lines specified in Exhibit A during the [***] Volume Commitment Period up to a volume of [***] Cells (“[***] Seller  Guaranteed Capacity Commitment”). Seller and Tesla shall have a good faith discussion with regard to [***] in the event that Tesla significantly reduces its orders for [***]  Cells as a result of [***].

	
 
	
ii.
	
Tesla commits to purchase a minimum of [***] conforming and non-defective [***] Cells produced during the [***] Volume Commitment Period (“[***] Purchase Commitment”). 

	
 
	
iii.
	
If Tesla and its Authorized Purchasers fail, collectively, to order an aggregate volume of [***] Cells from Seller at least equal the [***] Purchase Commitment during the [***] Volume Commitment Period and purchase the Cells delivered by Seller in connection with such Orders, then, [***], Tesla will, [***] subject to Sections 3.c through 3.e below, [***] for the shortfall volume not ordered pursuant to the foregoing clause (“[***] Shortfall Volume”) (and neither Tesla nor its Authorized Purchasers would [***]); provided that, upon Tesla’s request to Seller in writing [***], the Parties shall discuss in good faith an [***] by Tesla and/or its Authorized Purchasers for the [***] Shortfall Volume (subject to the then [***] of the specified production lines set forth above) before the end of the [***] Volume Commitment Period as an alternative to the foregoing [***]; further provided that the [***] produced on such production lines in [***] shall be [***] after the [***] Volume Commitment Period. In addition, if the aggregate volumes of [***] Cells ordered and purchased by Tesla and its Authorized Purchaser during the [***]  Volume Commitment Period are below [***] Cells, the Parties agree to discuss in good faith [***] for [***].

	
 
	
c.
	
After notifying Tesla in writing, Seller shall use Commercially Reasonable Efforts (as defined below) [***]. If and to the extent that Seller is able to [***], Tesla's Shortfall Volume payment obligations as set forth in Section 3.a and 3.b. above, as applicable, shall be [***]. “Commercially Reasonable Efforts” means taking all such steps and performing in such a manner as a well-managed company would undertake where it was acting in a determined, prudent and reasonable manner to achieve a particular desired result for its own benefit.

 

2021 Pricing Agreement (Japan Cells)Page 2 of 12

 

	
 
	
d.
	
For the avoidance of doubt, Tesla’s purchase commitments hereunder shall be deemed to be satisfied and shall be reduced, as applicable, to the extent that one or more Authorized Purchasers purchases Cells in connection with this PPA.

	
 
	
e.
	
Tesla’s purchase commitments shall be reduced by the quantity of Cells that are [***].  

	
4.
	
Pricing

	
 
	
a.
	
Baseline and Unit Price.  The price per Cell payable by Tesla is referred to as the “Unit Price.” The Parties agree that the Unit Prices for Cells will be firm and fixed prices determined with reference to the applicable baseline price (“Baseline Price”) and the applicable adjustments set forth herein and will not change for any reason except as expressly set forth herein.  No further amounts shall be payable by Tesla for any reason, except as may be applicable per Section 3 (Volumes) and Section 5 (Customs) herein. The Unit Prices for Cells will not increase for any reason except as expressly contemplated in this PPA or otherwise mutually agreed by the Parties through either a formal signed amendment hereof or an Order that is issued by Tesla and accepted by Seller. The Parties will adjust the [***] according to the method described in Exhibit B.

	
 
	
b.
	
[***] Cells Pricing

	
 
	
i.
	
Baseline Price: The Baseline Price for the ‘[***]’ Cells during the [***] Pricing Period shall be the applicable rate set forth in Table 4-A, based on the date of delivery of the Cells. The Parties agree that the following Baseline Prices include a depreciation charge based on an annual aggregate volume of [***] Cells. The Parties will adjust the [***] according to the method described in Exhibit B. 

	
 
	
ii.
	
Table 4-A: ‘[***]’ Cell Baseline Prices.

				
	
 
	
Table 4-A – ‘[***]’ Cell Baseline Prices

	
 
	
Baseline Price
	
[***]

	
 
	
[***]
	
[***] 

	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]

*  The above [***] is for reference only and calculated using a currency exchange rate of USD1:JPY[***].

**  Transportation cost ([***]/cell) to Oakland is not included in above. 

	
 
	
iii.
	
Metals Adjustment.  At the beginning of each [***] during the [***] Pricing Period, the metals identified below will be adjusted as follows:  the Parties will measure the [***] per the applicable index or metric for the applicable measurement window in Table 4-B below (this is the “Index Average Cost”), and adjust the Baseline Price (up or down) based on the difference between the then-current Index Average Cost for each material and the baseline commodity assumptions set forth below. For purposes of this adjustment, the raw materials prices shall be converted from United States Dollars (USD) into Japanese Yen (JPY) using the average trailing exchange rate and the average trailing commodity prices for the applicable [***] period set forth in Table 4-B below.

							
	
Table 4-B: ‘[***]’ Cell Metals Adjustment and Currency Exchange

	
Cell Material
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
Index/Metric
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
Measurement Window
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
 
	
 
	
 

 

2021 Pricing Agreement (Japan Cells)Page 3 of 12

 

							
	
Table 4-B: ‘[***]’ Cell Metals Adjustment and Currency Exchange

	
Cell Material
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
Content per Cell: [***]
	
[***] per Cell
	
[***] per Cell
	
[***] per Cell ([***])

 

[***] per Cell ([***])
	
[***] per Cell ([***])

 

[***] per Cell ([***])
	
N/A

	
Commodity Price Baseline
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]JPY/USD

	
 
	
 
	
 

 

	
 
	
iv.
	
Lithium Adjustment.  Each [***] during the Pricing Period starting [***], the Baseline Price shall adjust as follows:  the Parties will measure the [***] prices for [***] for the applicable measurement window in the table below, and adjust the Baseline Price (up or down) based on the difference between the then-current Index Average Cost and the baseline commodity assumption set forth below.

		
	
Table 4-C:  ‘[***]’ Cell Lithium Adjustment

	
Cell Material
	
[***]

	
Index/Metric
	
[***]

	
Measurement Window
	
See Table 4-D below

	
Content per Cell: [***]  Baseline
	
[***] per Cell ([***])

[***] per Cell ([***])

	
Commodity Price Baseline
	
[***]

	
Measurement Window for Currency Exchange
	
[***] average at [***] prior to delivery ([***])

 

		
	
Table 4-D:  ‘[***]’ Cell Measurement Window for Lithium Adjustment 

	
Pricing Period
	
Measurement Window

	
Calendar Year [***]
	
[***]

	
Calendar Year [***]
	
[***]

	
Calendar Year [***]
	
[***]

	
Calendar Year [***]
	
[***]

 

	
 
	
c.
	
‘[***]’ Cell Pricing

	
 
	
i.
	
Baseline Price.    The Baseline Price for ‘[***]’ Cells during the [***] Pricing Period shall be the applicable rate set forth in Table 4-E in each case based on the date of delivery of the Cells.  The baseline pricing shown in Table 4-E was calculated using [***] per Cell [***]. If the actual [***] per Cell [***] of [***] Cells is [***] than the agreed [***] specification, the Parties agree to discuss in good faith [***]. 

	
 
	
ii.
	
Table 4-E: ‘[***]’ Cell Baseline Prices.

						
	
 
	
Table 4-E – ‘[***]’ Cell Baseline Prices 

	
 
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
Baseline 

(Yen/cell)
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

*  Transportation cost to Fremont ([***]/cell) is [***] in above.

	
 
	
iii.
	
Metals Adjustment.  At the [***] during the [***] Pricing Period, the metals identified below will be adjusted as follows:  the Parties will measure the [***] per the applicable index or metric 

 

2021 Pricing Agreement (Japan Cells)Page 4 of 12

 

	
 
		
for the applicable measurement window in Table 4-G below (this is the “Index Average Cost”), and adjust the Baseline Price (up or down) based on the difference between the then-current Index Average Cost for each material and the baseline commodity assumptions set forth below. For purposes of this adjustment, the raw materials prices shall be converted from United States Dollars (USD) into Japanese Yen (JPY) using the [***] and the [***] for the applicable [***] period set forth in Table 4-I below.

					
	
Table 4-G: ‘[***]’ Cell Metals Adjustment

	
Cell Material
	
[***]
	
[***]
	
[***]
	
[***]

	
Index/Metric
	
[***]
	
[***]
	
[***]
	
[***]

	
Measurement Window
	
Per Table 4-I below
	
Per Table 4-I below
	
Per Table 4-I below
	
Per Table 4-I below

	
 
	
 

	
Content Per

Cell: [***]
	
[***] per Cell
	
[***] per Cell
	
[***] per Cell ([***])

 

[***] per Cell ([***])
	
[***] per Cell ([***])

 

[***] per Cell ([***])

	
Commodity Price Baseline
	
[***]
	
[***]
	
[***]
	
[***]

	
Exchange Rate (Yen/$) *
	
[***] (* Baseline assumes [***] JPY/USD)

               

	
 
	
iv.
	
Lithium Adjustment.  At the [***] during the [***] Pricing Period, the Baseline Price shall adjust as follows:  the Parties will measure the [***] based [***] for the applicable measurement window in Table 4-I below, and adjust the Baseline Price (up or down) based on the difference between the then-current Index Average Cost for [***] and the baseline commodity assumption set forth below. For purposes of this adjustment, the raw materials prices shall be converted from United States Dollars (USD) into Japanese Yen (JPY) using [***] and the [***] for the applicable [***] period set forth in Table 4-I below.

 

		
	
Table 4-H:  ‘[***]’ Cell Lithium Adjustment

	
Cell Material
	
[***]

	
Index/Metric
	
Average of actual price paid for [***], provided that Tesla must approve in writing the pricing for all new [***] volume commitments created after the PPA Effective Date.  If Seller fails to obtain Tesla’s prior written consent, the price for purposes of this adjustment shall not exceed the [***] and made available to Seller from [***].

	
Measurement Window
	
See Table 4-I below

	
Content per [***] Cell Baseline
	
[***] per Cell till [***]

[***] per Cell from [***]

	
Commodity Price Baseline
	
[***] 

	
Exchange rate (Yen/$) *
	
[***] (*Baseline assumes [***]JPY/USD)

             

				
	
Table 4-I:  ‘[***]’ Cell Measurement Windows for Metals and Lithium Adjustments 
and corresponding Currency Exchange

	
Pricing Period
	
Measurement Window: Metals
	
Measurement Window: Lithium
	
Measurement Window: Currency Exchange

	
Calendar Year [***]
	
[***]
	
[***]
	
[***]

 

2021 Pricing Agreement (Japan Cells)Page 5 of 12

 

				
	
Calendar Year [***]
	
[***]
	
[***]
	
[***]

	
Calendar Year [***]
	
[***]
	
[***]
	
[***]

	
Calendar Year [***]
	
[***]
	
[***]
	
[***]

	
 
	
v.
	

	
 
	
d.
	
Line Conversion. In connection with any conversion of [***] production lines between production of [***], the Parties shall [***] the following[***] in connection with [***] which may include a [***]; and [***].  Tesla shall [***], except to the extent expressly provided herein or agreed in writing by both Parties prior to the conversion. Without limiting anything to the contrary herein, the Parties will discuss in good faith if Tesla requests that Seller convert [***] to a [***] from the production of [***], and Seller will [***] except as agreed in writing by both Parties.  

	
5.
	
Customs.  Upon arrival at the port of entry to the United States, Cells will be moved under customs bond by [***] designated customs broker into [***] Foreign Trade Zone (FTZ) against the bond of [***] selected carrier.  Seller shall provide all [***] required for passage through customs and governmental reporting through [***] FTZ.  [***] will act as the importer of record for purposes of each such shipment.  In the event that new, additional, or increased duties or tariffs are imposed on the import of Cells after the PPA Effective Date, including any antidumping duties, countervailing duties, or ‘national security’ or similar tariffs (collectively, “New Duties”),  the Parties shall explore all options to minimize the impact of such New Duties, the Parties shall discuss options to share responsibility for the cost of such New Duties, and [***] shall undertake Commercially Reasonable Efforts to minimize New Duties.

	
6.
	
Material Sourcing.  

	
 
	
a.
	
Seller will comply with the Tesla Supplier Code of Conduct which is available at https://www.tesla.com/sites/default/files/about/legal/tesla-supplier-code-of-conduct.pdf and, to the extent applicable, the Tesla Human Rights And Conflict Minerals Policy which is available at https://www.tesla.com/about/legal#human-rights-and-conflict-minerals-policy (the foregoing two policies are referred to, collectively, as “Tesla’s Conduct Policies”).

	
 
	
b.
	
Sustainability. Tesla and Seller each acknowledge the importance of maintaining a sustainable supply chain, in which vendors and suppliers at all levels comply in full with all applicable Laws, industry standards, and Tesla’s Conduct Policies (defined above), in each case with respect to sustainable labor practices, including a zero-tolerance policy with respect to child or forced labor and robust safety standards (collectively, the “Sustainability Standards”). Accordingly, the Parties agree as follows: 

	
 
	
i.
	
Seller shall contractually require its suppliers and sub-suppliers to [***] for purposes of production of Cells under this PPA. “Minerals” means any form of cobalt and/or ‘conflict minerals’ (as that term is used in Tesla’s Conduct Policies). 

	
 
	
ii.
	
At least [***] during the Term, Seller shall [***] (collectively, “Minerals Suppliers”). Seller shall conduct each [***] in accordance with [***], including as applicable the [***] from [***] and the commitments adopted [***], [***] firm with relevant industry experience. The scope and methodology of [***], and shall schedule [***] to facilitate [***]. Seller will provide Tesla and its independent auditors with a [***]. Seller shall complete each [***] and deliver a [***] during the Term. 

	
 
	
iii.
	
If and to the extent that a [***], then the Parties shall promptly discuss in good faith and one of the following shall apply:

	
 
	
(i)
	
Seller shall promptly: (a) cause the [***] and provide evidence to Tesla that [***]; and/or (b) [***] related to this PPA [***]); or 

 

2021 Pricing Agreement (Japan Cells)Page 6 of 12

 

	
 
	
(ii)
	
If Seller is unable to achieve compliance as contemplated in Subsection (i) above, the Parties shall promptly [***]). 

7.Capital Investment for [***] Cell.

	
 
	
a.
	
Seller commits to [***] in [***] to [***] the [***] Seller Guaranteed Capacity Commitment. The aggregate amount of [***] for the foregoing shall be [***] JPY.

	
 
	
b.
	
The Parties agree and acknowledge that Seller shall be entitled to [***](including, without limitation, [***]) in connection with the foregoing [***] through the [***] on [***] at the [***] provided in this PPA and in any successive pricing agreement (until [***]), which the Parties agree and acknowledge include [***] for [***] of the [***] in accordance with Exhibit B, provided that [***].

	
 
	
c.
	
Seller will [***].  If Tesla’s program of the [***] Cells produced on [***] is terminated prior to [***], Seller shall [***] as agreed in writing by the Parties following a good faith discussion.  The Parties acknowledge and agreed that this Section 7 shall survive expiration or termination of this PPA. Tesla’s obligation to [***] shall be reduced to the extent that Seller [***] after the termination of this PPA [***].  

	
8.
	
Miscellaneous. 

	
 
	
a.
	
The Parties’ Supply Agreement dated October 5, 2011 (as amended) (“Supply Agreement”), Non-Disclosure Agreement for Commercial Agreement, Japan dated July 1, 2019 (“NDA”), and  the letter agreement of May 26, 2020 regarding [***] Cell Production (“[***] Cell Investment Letter”) are incorporated by reference as integral parts hereof.  

	
 
	
b.
	
The Supply Agreement, the NDA, this PPA, the [***] Cell Investment Letter, and Orders issued by or for Tesla hereunder (collectively, “Japan Contract”) constitute the entire agreement between the Parties with respect to the subject matter herein and supersede all prior oral or written representations or agreements by the Parties with respect to its subject matter. No subsequent terms, conditions, understandings, or agreements purporting to modify the terms of this PPA will be binding unless in writing and signed by both Parties.  For the avoidance of doubt, the terms and conditions of the 2019 Pricing Agreement dated September 17, 2019 shall continue to apply to the sale of [***] Cells by Seller to Authorized Purchasers on and after the Effective Date of this PPA.

	
 
	
c.
	
In the event of a conflict between or among the document comprising the Japan Contract, the conflict shall be resolved per Section 15.e (Entire Agreement) of the Supply Agreement.  

	
 
	
d.
	
This PPA may be executed in counterparts, each of which when so executed and delivered will be deemed an original, and all of which taken together will constitute one and the same instrument.

[Signature page follows]

 

2021 Pricing Agreement (Japan Cells)Page 7 of 12

 

Agreed by authorized representatives of each Party and signed by the Parties as of the PPA Effective Date.

			
	
Tesla, Inc.
	
 
	
Tesla Motors Netherlands B.V.

	
By: /s/ Dinesh Swamynathan

Printed: Dinesh Swamynathan

Title: Director, Supply Chain

Date: 12/28/2020
	
 
	
By: /s/ Stephan Werkman

Printed: Stephan Werkman

Title: Director

Date: 12/29/2020

 

			
	
Panasonic Corporation of North America
	
 
	
Sanyo Electric Co., Ltd.

	
By: /s/ Kenji Shimonishi

Printed: Kenji Shimonishi

Title: Chief Financial Officer

Date: 12/23/2020
	
 
	
By: /s/ Keisuke Matsukara

Printed: Keisuke Matsukara

Title: Director

Date: 12/24/2020

 

 

 

2021 Pricing Agreement (Japan Cells)Page 8 of 12

 

 

Exhibit A - [***] and [***] Factories Production Lines

					
	
Factories
	
Line
	
Cell type
	
Customers
	
Anticipated Monthly Capacity (millions of Cells / month)

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]

 

Any contents described in the above schedule are for reference only and will not constitute Seller’s commitment in any respect.  Seller reserves its right to change any of them at any time at its sole discretion so long as Seller fulfills its obligation of [***]. 

 

2021 Pricing Agreement (Japan Cells)Page 9 of 12

 

 

Exhibit B Volume-Based Adjustment

	
1.
	
[***] Cell [***] Adjustment.

The [***] adjustment of the ‘[***]’ lithium-ion battery cells shall consist of following two adjustments, i.e., “Adjustment A” and “Adjustment B” and both such adjustments shall apply to the ‘[***]’ lithium-ion battery cell Unit Prices simultaneously.

	
A.
	
Adjustment A.

	
1)
	
General.  The ‘[***]’ lithium-ion battery cell Unit Prices include a [***] which is based on the agreed annual quantities reflected in [***] (‘baseline cell quantity’) of the table below (as applicable, this is the “[***] Cell Quantity”) and the [***]. The [***] based on the [***] Cell Quantities is set forth in [***] (‘Baseline cost/cell’) of the table below (this is the “[***] Cell [***]”). 

	
2)
	
[***] Adjustment.  

	
 
	
a)
	
At the [***] during the Pricing Period (as applicable, the “[***]”), the Parties shall adjust the Unit Price for [***] as set forth in Section 2(b) below based on [***] for ‘[***]’ lithium-ion battery cells in Japan for such [***].  This [***] shall include the [***]. The [***] shall include [***]. Seller shall [***]. The [***] in the [***] may only [***]. 

	
 
	
b)
	
The adjustment to Item Prices shall be calculated as illustrated through the examples in [***] of the table below (this is the “[***] Adjustment”).  This adjustment is subject to the following:  

	
 
	
i)
	
If and to the extent that the [***];

	
 
	
ii)
	
If and to the extent that the [***]; and

	
 
	
iii)
	
If and to the extent that the [***]. 

	
3)
	
[***] Adjustment.  

	
 
	
a)
	
At the [***], the Parties shall adjust the Item Price for the [***] as set forth in Section 3(b) below based on the [***] (this is the “[***] Cell [***]”). 

	
 
	
b)
	
This adjustment is subject to the following:  

	
 
	
i)
	
The Parties will determine the [***] quantities of ‘18650’ lithium-ion battery cells produced in Japan and sold to (i) Tesla, any Affiliate of Tesla, or any authorized purchaser of Tesla (the “Tesla Quantity”), [***]during the Prior Year (collectively, the [***] are referred to herein as the “[***]”).  The [***] shall include any and all battery cells [***] such as [***] and form factor ‘[***]’, and similar battery cells, without regard to the [***] of such battery cells.  

	
 
	
ii)
	
If and to the extent that the [***];

	
 
	
iii)
	
If and to the extent that the [***]); and

	
 
	
iv)
	
If and to the extent that the [***]. 

	
4)
	
If and to the extent that [***], the Parties shall adjust the table to reflect the [***].

	
5)
	
The foregoing adjustments in Sections 2) and 3) together with Secion B.2) below are [***] lithium-ion battery [***] under the Japan Contract, and it is understood that Tesla shall [***].  Unless otherwise agreed by both parties, the total amounts [***] shall not exceed the amounts shown in [***] of the table below for the purpose of this Adjustment A.

 

[***]

 

B.  Adjustment B. 

 

2021 Pricing Agreement (Japan Cells)Page 10 of 12

 

	
1)
	
General.  The ‘[***]’ lithium-ion battery cell Unit Prices include a [***] which is based on [***] of the table below. The [***] of the table below (this is the “[***] Cell [***]”). 

2)   True-Up Adjustment.  

	
 
	
a)
	
At the [***], the Parties shall adjust the Item Price for the [***] based on the [***], relative to the [***] (this is the “[***] Cell [***]”). 

	
 
	
b)
	
This adjustment is subject to the following:  

	
 
	
i)
	
The Parties will determine the [***] quantities of ‘[***]’ lithium-ion battery cells produced in Japan and sold to Tesla, any Affiliate of Tesla, or any authorized purchaser of Tesla (the “[***] Tesla Quantity B”), [***].

	
 
	
ii)
	
If and to the extent that the [***] Tesla Quantity is [***], the adjustment shall be based on [***] in the [***] Tesla Quantity B;

	
3)
	
Unless otherwise agreed by both parties, the total amounts recoverable by Seller hereunder for [***].

	

	
[***]

 

	
2.
	
[***] Cell [***] Adjustment.

	
1)
	
General.  The ‘[***]’ lithium-ion battery cell Unit Prices include a [***] which is based on the [***] (‘[***]’) of the table below.  

2)   2021 True-Up Adjustment. 

	
 
	
a)
	
At the [***], the Parties shall adjust the Item Price for the [***] based on the [***] (this is the “[***] Cell [***]”). 

	
 
	
b)
	
This adjustment is subject to the following: 

	
 
	
i)
	
The Parties will determine the actual, [***] ‘[***]’ lithium-ion battery cells produced on [***] in Japan (“[***]”) and sold to (i) Tesla, any Affiliate of Tesla, or any authorized purchaser of Tesla (the “[***] Tesla Quantity [***] during [***] (collectively, the [***] are referred to herein as the “[***]”). The [***] shall include any and all battery cells [***] and form factor ‘[***]’, and similar battery cells, without regard to the [***] of such battery cells.  

	
 
	
ii)
	
If and to the extent that the [***];

	
 
	
iii)
	
If and to the extent that the [***];

	
 
	
iv)
	
If and to the extent that the [***]; and

	
 
	
v)
	
If and to the extent that the [***];

[***]

 

	
3)
	
If and to the extent [***], the Parties shall adjust the table to [***].

4)    The foregoing adjustments are [***] lithium-ion battery [***], and it is understood that Tesla shall have [***].  Unless otherwise agreed by both parties, [***].

 

5)     The [***] adjustment of the [***] lithium-ion battery cells produced on [***] shall be made based on the same methodology as set forth above. 

 

 

2021 Pricing Agreement (Japan Cells)Page 11 of 12

 

Exhibit C– Agreement Regarding 

2020 Commitment under the 2019 PPA

 

In complete and final settlement and resolution of all claims and potential claims relating to i) [***]; and ii) [***], the Parties agree as follows:

	
 
	
1.
	
The [***] is agreed to be [***];

 

	
 
	
2.
	
The actual [***] is agreed to be [***]; and 

 

	
 
	
3.
	
In addition, as a result of the Parties’ good faith discussion on the impact of [***], Tesla shall [***]. 

 

	
 
	
4.
	
Tesla shall [***] within the timeframes indicated below:

 

		
	
Date
	
Amount

	
[***]
	
[***]

	
[***]
	
[***]

 

	
 
	
5.
	
Panasonic agrees to provide [***]. During the course of [***], if the Parties reasonably determine that [***], the Parties shall have a good faith discussion on [***].

 

 

 

2021 Pricing Agreement (Japan Cells)Page 12 of 12

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