Document:

Exhibit 10.2

 

Execution Version

 

FIRST AMENDMENT TO CREDIT AGREEMENT AND WAIVER

 

This FIRST AMENDMENT TO CREDIT AGREEMENT AND WAIVER (this “Amendment and Waiver”), dated effective as of December 23, 2015 (the “Effective Date”), is by and among EnLink Midstream, LLC a Delaware limited liability company (the “Borrower”), the Lenders party hereto and Bank of America, N.A., as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”).

 

WHEREAS, the Borrower, the lenders party thereto (the “Lenders”), and the Administrative Agent are parties to that certain Credit Agreement dated as of March 7, 2014 (the “Credit Agreement”, the capitalized terms of which are used herein as therein defined unless otherwise defined herein);

 

WHEREAS, the Borrower has notified the Administrative Agent that pursuant to the Common Unit Purchase Agreement dated as of October 29, 2015, between EnLink Midstream, Inc. and EnLink MLP, on October 29, 2015 EnLink Midstream, Inc. acquired 2,849,100 common units representing limited partnership interests in EnLink MLP (the “Subject Units”), which are required to be subject to a first priority, perfected Lien in favor of the Administrative Agent under Section 6.12(b) of the Credit Agreement and delivered to the Administrative Agent pursuant to the Pledge Agreement (the “Subject Requirement”).

 

WHEREAS, the Borrower has requested, and the Lenders party hereto have agreed, subject to the terms and conditions of this Amendment and Waiver, to amend the Credit Agreement and grant a waiver with respect to the Subject Requirement, each as more fully set forth in this Amendment and Waiver; and

 

NOW, THEREFORE, in consideration of the mutual covenants, representations and warranties and agreements herein contained, the parties hereto agree as follows:

 

Section 1.                                           Amendments to the Credit Agreement.  The Credit Agreement is hereby amended as follows:

 

(a)                                 The following new definitions are added, in the appropriate alphabetical order, to Section 1.01 of the Credit Agreement to read as follows:

 

“TOMPC Securities Purchase Agreement” means that certain TOMPC Securities Purchase Agreement dated as of December 6, 2015, by and among TOMPC LLC, Tall Oak Midstream, LLC, EnLink TOM Holdings, LP, EnLink MLP and the Borrower, pursuant to which EnLink TOM Holdings, LP will purchase all of the membership interests of TOMPC LLC on the terms and conditions set forth therein.

 

“TOM-STACK Securities Purchase Agreement” means that certain TOM-STACK Securities Purchase Agreement dated as of December 6, 2015, by and among TOM-STACK, LLC, TOM-STACK Holdings, LLC, Tall Oak Midstream, LLC, FE-STACK, LLC, EnLink TOM Holdings, LP, EnLink MLP and the Borrower, pursuant to which EnLink TOM 

 

 

Holdings,  LP will purchase all of the membership interests of TOM-STACK, LLC on the terms and conditions set forth therein.

 

(b)                                 The definition of Acquisition Period in Section 1.01 of the Credit Agreement is amended to add the following sentence to the end thereof:

 

For the avoidance of doubt, there may be no more than one Acquisition Period with respect to the transactions described in or related to the TOMPC Securities Purchase Agreement and TOM-STACK Securities Purchase Agreement, collectively.

 

(c)                                  The Credit Agreement is hereby amended by replacing Section 5.13(a) in its entirety with the following:

 

(a)                                 (i) No Loan Party or any of its Subsidiaries is engaged nor will engage, principally or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U or X issued by the FRB) and (ii)  no part of the proceeds of any Credit Extension has been or will be used to purchase or carry any margin stock in violation of said Regulation U or X or to extend credit to others for the purpose of purchasing or carrying margin stock in violation of said Regulation U or X.

 

Section 2.                                           Waiver.  The Lenders party hereto, which constitute the Required Lenders, hereby waive the Subject Requirement with respect only to the Subject Units, which waiver shall, upon effectiveness of this Agreement, be effective as of the Effective Date.  This waiver is limited to the extent described herein and shall not be construed to be a waiver of any other terms, provisions, covenants, warranties or agreements contained in the Credit Agreement or any of the Loan Documents.  Without limiting the foregoing, failure to observe or perform any agreement contained in Section 6.12(b) of the Credit Agreement or the Pledge Agreement shall constitute a Default and Event of Default (subject to any grace or cure periods therefor set forth in the Credit Agreement or the Pledge Agreement, as applicable).  The Administrative Agent and the Lenders reserve the right to exercise any rights and remedies available to them in connection with any present or future defaults under the Credit Agreement or any other provision of any Loan Document.

 

Section 3.                                           Conditions Precedent.  This Amendment and Waiver shall become effective as of the Effective Date upon the satisfaction of the following conditions precedent:

 

(a)                                 the Administrative Agent shall have received this Amendment and Waiver, duly executed by the Borrower, the Required Lenders, and the Administrative Agent and duly acknowledged by each Guarantor;

 

(b)                                 the representations and warranties set forth in Section 4 of this Amendment and Waiver shall be true and correct; and

 

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(c)                                  the Borrower shall have paid all costs and expenses that are payable pursuant to Section 10.04 of the Credit Agreement (including the reasonable fees and expenses of Bracewell & Giuliani LLP, counsel to the Administrative Agent) to the extent that the Borrower has received an invoice therefor at least two Business Days prior to the anticipated Effective Date.

 

Section 4.                                           Representations and Warranties.  The Borrower represents and warrants to the Lenders and the Administrative Agent:

 

(a)                                 The execution, delivery and performance by the Borrower of this Amendment and Waiver have been duly authorized by all necessary corporate or other organizational action, and do not and will not (i) violate (A) the terms of the Borrower’s Organization Documents, (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Borrower or its property is subject, or (C) any provision of Law applicable to it, (ii) result in the acceleration of any Indebtedness owed by it, except as could not reasonably be expected to have a Material Adverse Effect, (iii) result in any breach of, or a default under, any material Contractual Obligation to which the Borrower is a party or to which its properties are bound, except as could not reasonably be expected to have a Material Adverse Effect or (iv) result in the creation of any consensual Lien upon any of its material assets except as expressly contemplated in, or permitted by, the Loan Documents.

 

(b)                                 This Amendment and Waiver has been duly executed and delivered by the Borrower and constitutes the Borrower’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

 

(c)                                  No material consent, approval, authorization or order of, or filing, registration or qualification with, any Governmental Authority or third party that has not been obtained is required to be made or obtained by the Borrower pursuant to the provisions of any material Law applicable to it as a condition to its execution, delivery or performance of this Amendment and Waiver, except those that would ordinarily be made or done in the ordinary course of business after the Effective Date.

 

(d)                                 After giving effect to this Amendment and Waiver, the representations and warranties set forth in Article V of the Credit Agreement and the other Loan Documents are true and correct in all material respects (except to the extent such representations and warranties are already qualified as to materiality, in which case such representations and warranties are true and correct in all respects) on and as of the Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (except to the extent such representations and warranties are already qualified as to materiality, in which case such representations and warranties are true and correct in all respects) as of such earlier date, and except that the representations and warranties contained in subsections (a) and (b) of 

 

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Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of Section 6.01 of the Credit Agreement.

 

(e)                                  After giving effect to this Amendment and Waiver, no event has occurred and is continuing that constitutes a Default or an Event of Default.

 

Section 5.                                           Miscellaneous.

 

(a)                                 Modified Terms. On and after the Effective Date, all references to the Credit Agreement or the other Loan Documents in each of the Credit Agreement or the other Loan Documents shall hereafter mean the Credit Agreement or the other Loan Documents as modified by this Amendment and Waiver.  Except as specifically modified hereby or otherwise agreed, the Credit Agreement and the other Loan Documents are hereby ratified and confirmed and shall remain in full force and effect according to their respective terms.

 

(b)                                 Reaffirmation of Obligations.  The Borrower hereby ratifies the Credit Agreement and acknowledges and reaffirms (i) that it is bound by all terms of the Credit Agreement (as modified by this Amendment and Waiver) and the other Loan Documents applicable to it and (ii) that it is responsible for the observance and full performance of its respective Obligations.

 

(c)                                  Loan Document.  This Amendment and Waiver shall constitute a Loan Document under the terms of the Credit Agreement.

 

(d)                                 Expenses.  The Borrower agrees to pay all reasonable and documented out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment and Waiver, including the reasonable fees and expenses of Bracewell & Giuliani LLP, as the Administrative Agent’s legal counsel.

 

(e)                                  Further Assurances.  The Borrower agrees to promptly take such reasonable action, upon the request of the Administrative Agent, as is necessary to carry out the intent of this Amendment and Waiver.

 

(f)                                   Entirety.  This Amendment and Waiver and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.

 

(g)                                  Counterparts; Telecopy.  This Amendment and Waiver may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this Amendment and Waiver or any other document required to be delivered hereunder, by fax transmission or e-mail transmission (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Amendment and Waiver.  Without limiting the foregoing, upon the request of any party, such fax transmission or e-mail transmission shall be promptly followed by such manually executed counterpart.

 

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(h)                                 GOVERNING LAW.  THIS AMENDMENT AND WAIVER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

(i)                                     Successors and Assigns.  This Amendment and Waiver shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

(j)                                    Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction, service of process and waiver of jury trial provisions set forth in Sections 10.14 and 10.15 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

 

(k)                                 No Waiver. The execution, delivery and effectiveness of this Amendment and Waiver shall not operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

 

[Remainder of this page blank; signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment and Waiver to be duly executed and delivered by their respective duly authorized officers as of the Effective Date.

 

 

	
 
    	
 
    	
BORROWER:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ENLINK MIDSTREAM, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
EnLink   Midstream Manager, LLC,
    
	
 
    	
 
    	
 
    	
its   managing member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ Ruben Garcia Espejo
    
	
 
    	
 
    	
 
    	
Name:
    	
Ruben   Garcia Espejo
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice   President – Finance and Treasurer
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

Each of the undersigned, as party to certain Security Documents securing and supporting the Borrower’s obligations under the Loan Documents, represents and warrants that it has no defenses to the enforcement of the Security Documents and that according to their terms the Security Documents will continue in full force and effect to secure the Borrower’s obligations under the Loan Documents, as the same may be amended, supplemented, or otherwise modified, and acknowledges, represents, and warrants that the liens and security interests created by the Security Documents are valid and subsisting and create a perfected Lien in the Collateral to the extent, and with the priority, contemplated by the Security Documents to secure the Borrower’s obligations under the Loan Documents, as the same may be amended, supplemented, or otherwise modified.

 

Furthermore, each of the undersigned hereby ratifies, confirms, and acknowledges that its obligations under the Loan Documents are in full force and effect and that it continues to unconditionally and irrevocably guarantee the full and punctual payment and performance, when due, whether at stated maturity or earlier by acceleration or otherwise, of all of the Obligations, as such Obligations may have been amended by this Amendment and Waiver.  Each of the undersigned hereby acknowledges that its execution and delivery of this Amendment and Waiver do not indicate or establish an approval or consent requirement by it under the Credit Agreement in connection with the execution and delivery of amendments, modifications or waivers to the Credit Agreement or any of the other Loan Documents.

 

 

	
 
    	
ENLINK   MIDSTREAM, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ruben Garcia Espejo
    
	
 
    	
Name:
    	
Ruben   Garcia Espejo
    
	
 
    	
Title:
    	
Vice   President – Finance and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ACACIA   NATURAL GAS CORP I, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ruben Garcia Espejo
    
	
 
    	
Name:
    	
Ruben   Garcia Espejo
    
	
 
    	
Title:
    	
Vice   President – Finance and Treasurer
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
ADMINISTRATIVE   AGENT:
    
	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A., as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ DeWayne D. Rosse
    
	
 
    	
Name:
    	
DeWayne D. Rosse
    
	
 
    	
Title:
    	
Assistant Vice   President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
LENDERS:
    
	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Adam H. Fey
    
	
 
    	
Name:
    	
Adam H. Fey
    
	
 
    	
Title:
    	
Director
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
CITIBANK,   N.A., as a Lender and L/C Issuer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eamon Baqui
    
	
 
    	
Name:
    	
Eamon Baqui
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
WELLS   FARGO BANK, N.A., as a Lender and L/C Issuer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brandon Kast
    
	
 
    	
Name:
    	
Brandon Kast
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
BANK   OF MONTREAL, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Melissa Guzmann
    
	
 
    	
Name:
    	
Melissa Guzmann
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
ROYAL   BANK OF CANADA, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jim Allred
    
	
 
    	
Name:
    	
Jim Allred
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
THE   BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mark Oberreuter
    
	
 
    	
Name:
    	
Mark Oberreuter
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
BARCLAYS   BANK PLC, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Luke Syme
    
	
 
    	
Name:
    	
Luke Syme
    
	
 
    	
Title:
    	
Assistant Vice   President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
COMPASS   BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Blake Kirshman
    
	
 
    	
Name:
    	
Blake Kirshman
    
	
 
    	
Title:
    	
Senior Vice President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
COMERICA   BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert C. Pitcock
    
	
 
    	
Name:
    	
Robert C. Pitcock
    
	
 
    	
Title:
    	
Relationship Manager
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
CREDIT   SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nupur Kumar
    
	
 
    	
Name:
    	
NUPUR KUMAR
    
	
 
    	
Title:
    	
AUTHORIZED SIGNATORY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stefan Dickenmann
    
	
 
    	
Name:
    	
Stefan Dickenmann
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
DEUTSCHE   BANK AG NEW YORK BRANCH, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ming K. Chu
    
	
 
    	
Name:
    	
Ming K. Chu
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott Flieger 
    
	
 
    	
Name:
    	
Scott Flieger 
    
	
 
    	
Title:
    	
Managing Director
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
GOLDMAN   SACHS BANK USA, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jerry Li
    
	
 
    	
Name:
    	
JERRY LI
    
	
 
    	
Title:
    	
AUTHORIZED SIGNATORY
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
JPMORGAN   CHASE BANK, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Debra Hrelja
    
	
 
    	
Name:
    	
Debra Hrelja
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
MORGAN   STANLEY BANK, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dmitriy Barskiy
    
	
 
    	
Name:
    	
Dmitriy Barskiy
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
PNC   BANK, NATIONAL ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tom Byargeon
    
	
 
    	
Name:
    	
Tom Byargeon
    
	
 
    	
Title:
    	
Managing   Director
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
MIZUHO   BANK, LTD., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Donna L.   DeMagistris
    
	
 
    	
Name:
    	
Donna L. DeMagistris
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
UBS   AG, STAMFORD BRANCH, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Houssem Daly
    
	
 
    	
Name:
    	
Houssem Daly
    
	
 
    	
Title:
    	
Associate   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kenneth Chin
    
	
 
    	
Name:
    	
Kenneth Chin
    
	
 
    	
Title:
    	
Director
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick Jeffrey
    
	
 
    	
Name:
    	
Patrick Jeffrey
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
AMEGY   BANK NATIONAL ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jill McSorley
    
	
 
    	
Name:
    	
Jill McSorley
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
THE   BANK OF NOVA SCOTIA, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mark Sparrow
    
	
 
    	
Name:
    	
Mark Sparrow
    
	
 
    	
Title:
    	
Director
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
CREDIT   AGRICOLE CORPORATE AND INVESTMENT BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dixon Schultz
    
	
 
    	
Name:
    	
Dixon Schultz
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Willis
    
	
 
    	
Name:
    	
Michael Willis
    
	
 
    	
Title:
    	
Managing Director
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
FIFTH   THIRD BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
THE   HUNTINGTON NATIONAL BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Margaret Niekrash
    
	
 
    	
Name:
    	
Margaret Niekrash
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
RAYMOND   JAMES BANK N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott G. Axelrod
    
	
 
    	
Name:
    	
Scott G. Axelrod
    
	
 
    	
Title:
    	
Senior Vice President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
REGIONS   BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard Kaufman
    
	
 
    	
Name:
    	
Richard Kaufman
    
	
 
    	
Title:
    	
Senior Vice President
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
SUMITOMO   MITSUI BANKING CORPORATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)

 

 

	
 
    	
SUNTRUST   BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Shannon Juhan
    
	
 
    	
Name:
    	
Shannon Juhan
    
	
 
    	
Title:
    	
Director
    

 

Signature Page to First Amendment and Waiver to Credit Agreement (ENLC)Exhibit 10.1

 

CONTRIBUTION AND EXCHANGE AGREEMENT

 

BETWEEN

 

MONROAD, LLC

 

AND

 

MONGOLIA HOLDINGS, INC

 

Executed on December 28, 2015

 

     

     

    

 

Section
1.          SCHEDULES TO THE CONTRIBUTION AND EXCHANGE AGREEMENT BETWEEN
MONROAD, LLC AND MONGOLIA HOLDINGS, INC.

 

	Schedule No.	 	Description
	 	 	 
	1(a)	 	The Inventory of Monroad, LLC
	1(b)	 	The Equipment and Machinery of Monroad, LLC
	1(c)	 	The Office Furniture and Fixtures of Monroad, LLC
	1(d)	 	The Automobiles, Trucks, Forklifts and Other Vehicles of Monroad, LLC
	1(f)	 	The Other Assets of Monroad, LLC
	1(i)	 	The Assumed Liabilities of Monroad, LLC
	3(a)	 	Exceptions to Profits and Losses of Monroad
	4(a)	 	The Excluded Assets of Monroad, LLC
	7(a)	 	Exceptions to Title of Monroad, LLC
	7(c)	 	Legal Proceedings; Claims of Monroad, LLC
	7(d)	 	Material Agreements, Contracts, Commitments, Obligations and Understandings of Monroad, LLC
	7(e)	 	Court Orders and Decrees of Monroad, LLC
	7(g)	 	Governmental Licenses, Permits, Etc. of Monroad, LLC
	7(h)	 	Hazardous Material and Nuisance
	7(i)	 	Employee Benefit Plans
	7(m)	 	The Holder’s Undisclosed Liabilities and Conditions of Monroad, LLC
	7(n)	 	Compliance with Laws of Monroad, LLC
	7(p)	 	Changes Outside of Ordinary Course of Monroad, LLC
	7(r)	 	Cancellable Contracts
	7(t)	 	Insurance of Monroad, LLC
	7(u)	 	Rights of Third Parties of Monroad, LLC
	12(p)	 	List of Agreements to be Assigned and Assumed of Monroad, LLC

 

 

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Section
2.          EXHIBITS TO THE CONTRIBUTION AND EXCHANGE AGREEMENT BETWEEN
MONROAD, LLC AND MONGOLIA HOLDINGS, INC

 

	Exhibit No.	 	Description
	 	 	 
	2(a)	 	Form of: 6% Class A Mongolia Holdings Inc. Certificate of Designation
	 	 	 
	7(l)	 	Monroad LLC Financial Statements
	 	 	 
	12(i)	 	Form of Non-Competition Agreement

 

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CONTRIBUTION AND EXCHANGE
AGREEMENT (the “Agreement”) dated December 28, 2015 (hereinafter referred to as the “Signing Date” or the
“Signing”) by and among Monroad, LLC, a Mongolian limited liability company; Garamgaibaatar Batkhuu, the sole shareholder
of Monroad, LLC., or his assigns (the “Holder”); Mongolia Holdings, Inc., a Delaware corporation (“MNHD”);
and HERC, LLC, a Mongolia limited liability company and wholly owned subsidiary of MNHD (“HERC”). Each party to the
Agreement may occasionally be referred to as a “Party” or together may be referred to as the “Parties”.

 

WITNESSETH

 

WHEREAS, HERC is a
wholly-owned subsidiary Mongolia Holdings, Inc.;

 

WHEREAS, the Holder
is the sole shareholder of Monroad LLC, a business primarily focused on road construction and equipment rental among other activities
in Mongolia (the “Business”), which Business shall continue to operate as currently organized and shall be reconstituted
as wholly owned subsidiary and new business operations or businesses of HERC;

 

WHEREAS, the Holder
wishes to contribute and HERC wishes to acquire all of the capital stock and ownership of Monroad, LLC from the Holder and certain
other tangible and intangible assets associated with the Business and set forth on and set forth on Schedule I attached
hereto (the “Assets”); and

 

WHEREAS, HERC is willing
to assume certain liabilities of Monroad and the Holder is willing to transfer such liabilities.

 

NOW, THEREFORE, in
consideration of the foregoing and the terms, conditions, representations, warranties and mutual covenants appearing in this Agreement,
the parties hereto hereby agree as follows:

 

Section 1.          Contribution.         
Upon the terms and subject to the conditions set forth in this Agreement and in exchange for the MNHD Shares (defined below),
at the Closing (as hereinafter defined), Holder shall contribute, assign, transfer and deliver to HERC, and HERC shall acquire,
accept and take possession of all of Holder’s right, title and interest in and to all of the issued and outstanding ownership
and securities of Monroad LLC (“Stock”) from the Holder. The Stock shall be conveyed free and clear of all liabilities,
obligations, liens, security interests and encumbrances of any character whatsoever, except for those liabilities and obligations,
if any, which are expressly assumed by HERC hereunder (the “Assumed Liabilities”), as set forth on Schedule 1(i)
attached hereto.”

 

Section 2.          Exchange.
In full consideration for the contribution, transfer, conveyance, assignment and delivery of the Stock by Holder to HERC as set
forth in Section 1 and in reliance upon the representations and warranties made herein by Holder and for other consideration set
forth herein, MNHD hereby agrees to deliver to Holder at the Closing (as hereinafter defined) ONE MILLION (1,000,000) Shares of
6% Series A Convertible Preferred Shares of MNHD (the “MNHD Shares”) in the form of Certificate of Designation and
Preferences annexed hereto as Exhibit 2(a), with a face value of Sixteen Dollars ($16.00) per share in exchange for the Stock.”
MNHD Shares shall be delivered to Holder at the Closing as described in Section 3 below.

 

     

     

    

  

Section 3.          Description
of Components of Contribution and Exchange.

 

(a)          Contribution
and Exchange at Closing. Upon the completion by the parties of their respective closing conditions under this Agreement (unless
waived in writing by the parties hereto), HERC shall deliver to Holder the MNHD Shares, in exchange for delivery of the Stock at
the Closing.

 

(b)          Effective
Date. The parties hereto agree that the contribution of the Stock in exchange for the MNHD Shares shall be accounted for as if
such transactions had occurred prior to the opening of business on the Closing Date (the “Effective Date”) regardless
of when the Closing in fact occurs. MNHD shall realize any operating profit or loss from the operation of Monroad LLC after the
Effective Date, except as set forth on Schedule 3(b) attached hereto.”

 

Section 4.          Conversion.
The MNHD Shares shall be convertible at any time, and from time to time, into such number of shares of MNHD Common Stock so that
the total one million MNHD Shares, on a fully converted basis, will be equal to 49% of the total issued and outstanding common
shares of MNHD, at the time of the Closing, which shall be more fully described in the Certificate of Designation and Preferences
annexed hereto as Exhibit 2(a). Notwithstanding the foregoing, the holders of the MNHD Shares shall have no preemptive rights nor
anti-dilution protection post closing other than for splits, dividends and similar combinations of MNHD Common Stock.

 

Section 5.          Non-Assumption
of Liabilities. It is understood and agreed by the parties hereto that the Stock and underlying Assets will be sold, conveyed,
transferred and assigned to HERC at the Closing free and clear of all liens, charges and encumbrances whatsoever, and it is further
understood and agreed by the parties hereto that HERC does not assume, accept or undertake any obligations, commitments, duties,
debts or liabilities of any kind whatsoever (the “Obligations”), except for the Assumed Liabilities assumed by HERC
pursuant to this Agreement as listed in Schedule 1(i) attached hereto.

 

Section 6.          Signing
and Closing. The Signing Date shall take place on December 28, 2015. The closing of contribution and exchange of the Stock
provided for in Sections 1 and 2 of this Agreement (the “Closing”) shall take place only after exchange of written
confirmation from one Party to other, that Condition Precedent obligations have been fully satisfied, or waved. The Place of the
closing shall be the New York Offices of Davidoff Hutcher & Citron LLP on or around the 30th day of January, 2016,
or such other time and place as the parties may agree. The day on which the Closing occurs is sometimes hereinafter referred to
as the “Closing Date.”

 

Section 7.          Representations
and Warranties of the Holder. The Holder warrants and represents to HERC and MNHD as follows:

 

(a)          Title.
Except as set forth in Schedule 7(a) of this Agreement, the Holder owns, and at the Closing shall have, good, valid and
marketable title to the Stock and underlying Assets and full right to transfer title to the Stock and Assets free and clear of
all liens, mortgages, charges, liabilities, claims, security interests or encumbrances of every type whatsoever, except the Assumed
Liabilities, statutory liens and liabilities created by HERC.

 

    	 	2	 

     

    

  

Except as set forth
in Schedule 7(a) of this Agreement, the contribution, conveyance, transfer and delivery of the Stock by the Holder to HERC
pursuant to this Agreement will transfer full legal and equitable right, title and interest in the Stock and underlying Assets
to HERC, free and clear of all liens, mortgages, charges, claims, liabilities, security interests and encumbrances of any nature
whatsoever, except the Assumed Liabilities, statutory liens and liabilities created by HERC.

 

(b)          Capacity;
Organization; Existence. The Holder has full capacity to enter into and perform under this Agreement, and all other agreements
to be entered into in connection with the transactions contemplated hereby (the “Other Agreements”) and to consummate
such transactions; and no other consent or joinder of any other persons or corporations is required. This Agreement has been, and
each of the Other Agreements executed by the Holder hereunder will at the Closing, be duly authorized, executed and delivered by
the Holder. This Agreement constitutes, and each of the Other Agreements executed by the Holder will constitute, the legal, valid
and binding obligations of the Holder enforceable in accordance with their respective terms, except as such enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’ rights generally or
by general equitable principles. Monroad, LLC is duly organized and validly existing under the laws of Mongolia. Monroad, LLC has
full power and authority to conduct its business as it is now being conducted and is duly qualified to do business in each jurisdiction
where the nature of the property owned or leased, or the nature of the business conducted by the Holder requires such qualification.
Monroad, LLC has all necessary licenses and authority to operate its business as now being conducted in Mongolia.

 

(c)          Legal
Proceedings; Claims. Except as set forth in Schedule 7(c) of this Agreement, the Holder and Monroad, LLC is not a party
to any pending litigation, arbitration or administrative proceeding or investigation, with respect to or relating to the Stock
or underlying Assets or the Business and, to the Holder’s knowledge and belief, no litigation, arbitration or administrative
proceeding or investigation that would have a material adverse effect on the Stock or underlying Assets or the Business is threatened.
Except as set forth in Schedule 7(c) of this Agreement, there are no warranties or other claims pending relating to any
products or services sold by the Business.

 

(d)          Description
of Material Contracts. Schedule 7(d) contains a complete and correct list as of the date hereof of all material agreements,
contracts and commitments, obligations and understandings which are not set forth in any other Schedule delivered hereunder, of
the following types, written or oral (the “Material Agreements”) which relate to the Business and to which Monroad,
LLC and the Holder is a party or by which it or any of its properties are bound, as of the date hereof:

 

    	 	3	 

     

    

  

Security agreements
and other agreements and instruments relating to the borrowing of money or extension of credit; stock option, pension, retirement,
deferred compensation, hospitalization and other life, health or disability insurance, holiday, sick leave, severance, vacation,
tuition reimbursement, personal loan and product purchase discount, policy manuals, or other plans, agreements, trusts, funds or
arrangements for the benefit of employees (whether or not legally binding); and (ii) purchase contracts or other contracts. All
of the Material Agreements constitute valid and legally binding obligations of the parties thereto, enforceable in accordance with
their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and
similar laws affecting creditors’ rights generally or by general equitable principles, are in full force and effect and,
except as otherwise specified in Schedule 7(d), are validly assignable to HERC without the consent of any party so that,
after the assignment thereof to HERC pursuant hereto, HERC will be entitled to the full benefits thereof. There is not under any
Material Agreement any existing default by Monroad, LLC or the Holder, or event, which, after notice or lapse of time, or both,
would constitute a default or result in a right to accelerate or loss of rights under any Material Agreement. The Holder and Monroad,
LLC have not received any written notice of termination of any Material Agreement. True and complete copies of all of the Material
Agreements have been made available to HERC.

 

(e)          Court
Orders and Decrees. Except as set forth on Schedule 7(e), the officers of Monroad, LLC or the Holder have not received
written notice that there is outstanding, pending, or threatened any order, writ, injunction or decree of any court, governmental
agency or arbitration tribunal against or affecting the Stock, Business or underlying Assets.

 

(f)          Approvals
and Authorizations. The Holder and Monroad, LLC have obtained all necessary consents, approvals or authorizations in connection
with the transactions contemplated hereby that are required by law in order to make this Agreement binding upon the Holder and
Monroad, LLC, except for those consents, approvals or authorizations which individually or in the aggregate would not have a materially
adverse effect on the Stock, or underlying Assets or the Business.

 

(g)          Governmental
Licenses. Schedule 7(g) attached hereto contains a correct and complete list of all governmental and administrative
consents, permits, appointments, approvals, licenses, certificates and franchises which are required in connection with the Business
of Monroad, LLC and the Holder’s execution, delivery or performance of this Agreement, all of which have been obtained and
are in full force and effect. The Holder or Monroad, LLC have not received any written notice of any violation with respect to
any such consent, permit, license or other regulatory order that remain unabated. Except as set forth on Schedule 7(j), the Holder
and Monroad, LLC is in material compliance with all Laws and Environmental Laws material to the Business, its properties or operation
as presently conducted.

 

(h)          Hazardous
Material and Nuisance. Except as disclosed on Schedule 7(h) attached hereto, to Holder’s and Monroad, LLC’s
knowledge there are no claims pending or threatened against the Holder or Monroad, LLC relating to the Business and/or the Stock
or underlying Assets, for, with respect to, or as direct or indirect result of, the presence on or under, or the escape, seepage,
leakage, spillage, discharge, or emission discharging, from the real property of the Holder or Monroad, LLC of any “Hazardous
Material,” including, without limitation, any losses, liabilities, damages, injuries, costs, expenses, reasonable fees of
counsel or claims asserted or arising under any environmental protection law of Mongolia or any other applicable national or local
statute, law, ordinance, code, rule, regulation, order or decree now or at any time hereafter in effect, regulating, relating to
or imposing liability or standards of conduct concerning any Hazardous Material.

 

    	 	4	 

     

    

  

(i)          Employee
Benefit Plans. Except as disclosed on Schedule 7(i) attached hereto, there is not now nor, since the Holder has owned
the Business, has there ever been any “Employee Benefit Plan” (as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”)), or any other profit sharing, deferred compensation, bonus, stock
option, stock purchase, pension or other compensation plan, or any other plan or arrangement to benefit employees maintained or
contributed to by Monroad, LLC or the Holder or any person, firm or corporation (an “Affiliate”) which are members
of a “controlled group of corporations” (within the meaning of Section 414(b) of the Code, except that 50% will be
substituted for 80% in Section 1563(a) of the Code) with the Holder and in which any of the employees of Monroad, LLC and the Holder
or any Affiliate participates or is eligible to participate. No funding deficiency exists or has existed with respect to any Employee
Benefit Plan covering any present or former employee of the Monroad, LLC or the Holder or any Affiliate which may cause or result
in a lien upon any of the Stock, Business or underlying Assets.

 

(j)          Absence
of Certain Business Practices. Neither the Holder, Monroad, LLC nor to their knowledge, any of its officers, employees or agents
acting on their behalf, nor any other person acting on their behalf, has, directly or indirectly, within the past three (3) years
given or agreed to give any gift or similar benefit to any customer, supplier, governmental employee or other person who is or
may be in a position to help or hinder Monroad, LLC or the Business (or assist Monroad, LLC or the Holder in connection with any
actual or proposed transaction) that (i) might subject Monroad, LLC or the Holder to any damage or penalty in any civil, criminal
or governmental litigation or proceeding, or (ii) if not given in the past would have had a materially adverse effect on the Stock
or underlying Assets, business or operation of the Business and if not continued in the future, would adversely affect the Stock
or underlying Assets, the Business or its operations or prospects.

 

(k)          Brokers.
Monroad, LLC and the Holder have not entered into and will not enter into any agreement, arrangement or understanding with any
person or firm which will result in an obligation of HERC or MNHD to pay any finder’s fee, brokerage commission, or similar
payment in connection with the transactions contemplated by this Agreement.

 

(l)          Financial
Statements. The Holder has delivered to HERC during the process of HERC’s due diligence investigation copies of all financial
statements requested by HERC (hereinafter collectively called the “Financial Statements”) and which are attached hereto
as Exhibit 7(l). The Financial Statements were prepared by management of the Holders in the ordinary course of business and audited
by Od Burtgel Audit LLC, Mongolian Certified Accountants, for periods through and including the period ended December 31, 2014
(the “Balance Sheet Date”) and are materially complete and correct as shown on and as prepared from the books and records
of the Monroad, LLC and fairly present the financial condition of Monroad, LLC as at their respective dates and the results of
Monroad, LLC operations for the periods covered thereby, and are true and correct statements in all material respects of the financial
condition of Monroad, LLC at such Balance Sheet Date, and do not include or omit to state any fact which renders such Financial
Statements materially false or misleading. The Financial Statements of the Business are prepared in accordance with International
Financial Reporting Standards (“IFRS’).

 

    	 	5	 

     

    

  

(m)          Absence
of Undisclosed Liabilities and Conditions. Except as and to the extent reflected or reserved against on the face of the Financial
Statements, and subject to the representations set forth in (l) above, or as set forth on Schedule 7(m) attached hereto,
as of the Closing Date, the Business had no debts, liabilities or obligations (whether due or to become due, absolute, accrued,
contingent or otherwise) of any nature whatsoever, including, without limitation, any foreign or domestic tax liabilities or deferred
tax liabilities incurred in respect of or measured by the Business’ income, or its period prior to the Closing or any other
debts, liabilities or obligations relating to or arising out of any act, transaction, circumstance or state of facts which occurred
or existed on or before the Closing Date, whether or not then known, due or payable. The Financial Statements do not include any
assets or liabilities of any entity other than the Monroad, LLC, nor any expense of any entity other than Monroad, LLC. The Holder
and Monroad, LLC have no knowledge of any currently existing facts that materially adversely affect the Stock, Business or underlying
Assets.

 

(n)          Compliance
With Laws. Except as disclosed on Schedule 7(n), to Holder’s and Monroad, LLC’s knowledge the operations
and activities of Monroad, LLC and the Business concerning the Stock or underlying Assets have previously and continued to comply
in all respects with all applicable Mongolian laws, statutes, codes, ordinances, rules, regulations, permits, judgments, orders,
writs, awards, decrees or injunctions (collectively, the “Laws”), as in effect on or before the date of this Agreement,
including, without limitation, all rules and regulations of the equivalent Mongolian Occupational Safety and Health Administration.
Neither the ownership nor use of the Stock or underlying Assets nor the conduct of the Business as presently conducted conflicts
with the rights of any other person, firm or corporation or violates, or with or without the giving of notice or the passage of
time, or both, will violate, conflict with or result in a default, right to accelerate or loss of rights under, any terms or provisions
of the Monroad, LLC’s Certificate of Formation or By-laws as presently in effect, or any lien, encumbrance, mortgage, deed
of trust, lease, license, agreement, understanding (hereinafter collectively referred to as “Liens”), or Laws to which
Monroad, LLC and Holder is a party or by which it or Monroad, LLC, the Business, Stock or underlying Assets may be bound or affected.
The Holder and Monroad, LLC have not received any written notice or communication from any third party asserting a failure to comply
with any Laws, nor has Monroad, LLC or the Holder received any written notice that any authority or third party intends to seek
enforcement against it to compel compliance with any such Laws.

 

    	 	6	 

     

    

  

(o)          Taxes.
As of the Closing Date, all taxes, including, without limitation, income, property, sales, use, franchise, added value, employees’
income withholding and social security taxes, imposed by any governmental entity whatsoever, which are due or payable by Monroad,
LLC or the Holder in connection with Monroad, LLC or the Business, and all interest and penalties thereon, have been paid in full,
all tax returns required to be filed in connection therewith have been timely filed and all deposits required by law to be made
by Monroad, LLC and the Holder with respect to employee’s withholding taxes have been duly made. Monroad, LLC and the Holder
have not been delinquent in the payment of any tax, assessment or governmental charge or deposit and have no tax deficiency or
claim outstanding, proposed or assessed against it. Except for amounts accrued, but not payable as of the Effective Date, (i) the
Monroad, LLC or Holder is not liable for the payment of any taxes relating to the Stock, or underlying Assets or the operation
of Monroad, LLC or the Business, and (ii) HERC shall have no liability for any taxes related to the ownership or operation of Monroad,
LLC, the Stock or underlying Assets or the Business prior to the Effective Date. The Holder or Monroad, LLC does not know of any
tax deficiency or claim outstanding, proposed, or assessed against it with respect to any taxes, including, without limitation,
income, property, sales, use, franchise, valued-added, employees’ income withholding, and social security taxes imposed by
the Mongolia or by an foreign country or by any state, municipality, subdivision, or instrumentality of Mongolia or of any foreign
country, or by any other taxing authority that could have a material effect on HERC, Monroad, LLC, the Stock or underlying Assets,
or the Business, or result in the imposition of a tax lien upon any of the Stock or underlying Assets.

 

(p)          Absence
of Changes or Events. Without limiting the foregoing, since the Balance Sheet Date and through the Signing Date, there has
been no material adverse change in the Business or Monroad, LLC. Except as set forth in Schedule 7(p) attached hereto, since
the Balance Sheet Date, Monroad, LLC and the Holder have conducted its business only in the ordinary course and has not:

 

(i)          Incurred
any obligation or liability, except current liabilities for trade or business obligations incurred in the ordinary course of business
and consistent with its prior practice, none of which liabilities materially and adversely affects Monroad, LLC, the Stock or underlying
Assets or the Business;

 

(ii)         Mortgaged,
pledged or subjected to lien, charge, security interest or any other encumbrance or restriction on any of Monroad, LLC, the Stock
or underlying Assets;

 

(iii)        Except
for the sale of Inventory, in the ordinary course of business, sold, transferred, leased to others or otherwise disposed of any
of Monroad, LLC, the Stock or underlying Assets;

 

(iv)        Received
any notice of termination of any agreement or suffered any damage, destruction or loss which has had or, with the passage of time,
could have a material adverse effect on Monroad, LLC, the Stock or underlying Assets or the Business;

 

(v)         Made
any change in its pricing, advertising or personnel practices inconsistent with Monroad, LLC’s prior practice and prudent
business practices prevailing in the industry;

 

(vi)        Suffered
any change, event or condition which, has had or may have a material adverse effect on Monroad, LLC, the Stock or underlying Assets,
the Business or the operations or prospects thereof,

 

    	 	7	 

     

    

  

(vii)       Entered
into any transaction, contract or commitment other than in the ordinary course of business which had a material adverse effect
on Monroad, LLC, the Stock or underlying Assets or the Business; or

 

(viii)      Instituted,
settled or agreed to settle any litigation, action or proceeding before any court or governmental body relating to Monroad, LLC,
the Holder, the Stock or underlying Assets or the Business.

 

(q)          Accounts
Receivable; Inventory.

 

(i)          The
Accounts Receivable of Monroad, LLC are valid subsisting claims for the aggregate amounts thereof reflected in the Financial Statements
net of the reserves or allowances for doubtful receivables reflected in the Financial Statements or thereafter in the Monroad,
LLC’s books and records uniformly maintained in accordance with the Financial Statements, accounted for in accordance with
IFRS, and the Holder or Monroad, LLC knows of no reason that would make such Accounts Receivable, taken as a whole, not collectible.

 

(ii)         The
Inventory of the Monroad, LLC (a) has been purchased in the ordinary course of business, (b) has been fully paid for unless otherwise
reflected in the Financial Statements, (c) is marketable or adequate provision for obsolescence has been provided, and (d)
Monroad, LLC or the Holder knows no reason that would make such Inventory, taken as a whole, not marketable.

 

(r)          Labor
Relations. The Holder and Monroad, LLC, in connection with the Business, is not (i) a party to any collective bargaining agreement
relating to any of its employees and its employees have not recognized, are not required to recognize, and have not received a
demand for recognition by, any collective bargaining representative, (ii) a party to any contract with and has no liability to
any of its employees, agents, consultants, officers, sales representatives, distributors or dealers that is not cancelable by Monroad,
LLC without penalty on not more than thirty (30) days’ notice, except as set forth on Schedule 7(r) attached hereto,
(iii) subject to any strike or work stoppage in effect or threatened against Monroad, LLC or the Business nor has any strike or
work stoppage been authorized by any order, writ, injunction or decree of any court of Mongolia or any foreign federal, state,
municipal or other governmental agency or instrumentality.

 

(s)          Books
and Records. The books and records of the Monroad, LLC are, in all material respects, complete and correct and have been maintained
in accordance with standard business practice.

 

(t)          Insurance.
Schedule 7(t) contains a correct and complete description of all policies of insurance by or on behalf of the Monroad, LLC
or Holder in which Monroad, LLC or the Holder is named as an insured party, beneficiary or loss payable payee. The Holder and Monroad,
LLC have at all times prior to the date hereof maintained and will at all times prior to the Closing Date maintain such insurance
coverage. There is no default notice of cancellation or non-renewal with respect to any material provision contained in any such
policy. Schedule 7(t) contains a correct and complete description of all outstanding insurance claims in excess of $5,000 made
by or against Monroad, LLC or the Holder for damage to or loss of property or income which have been referred to insurers or which
Monroad, LLC or the Holder believes to be covered by commercial insurance within the five years preceding the Effective Date.

 

    	 	8	 

     

    

  

(u)          Rights
of Third Parties. Other than as disclosed in Schedule 7(u), or specifically provided for in this Agreement, the Holder
and Monroad, LLC have not entered into any leases, licenses, easements or other agreements, recorded or unrecorded, granting rights
to third parties in any real or personal property of Monroad, LLC or the Holder, and no person or other corporation has any right
to possession, use or occupancy of any of the Assets of Monroad, LLC or the Business.

 

(v)         Relationships
with Vendors and Customers. The Holder and Monroad, LLC have no knowledge of any present conditions or state of facts or circumstances
which would materially adversely affect Monroad, LLC or the Business after the Closing Date. To Monroad, LLC or the Holder’s
knowledge its relationships with its customers, clients and vendors are satisfactory. The Holder and Monroad, LLC have no knowledge
of any material outstanding claims of any of its customers or clients presently outstanding, pending or threatened against them.
The Holder and Monroad, LLC have no knowledge of any present condition or state of facts or circumstances which would prevent the
Business and operations of Monroad, LLC from being carried on by HERC after the Closing Date in essentially the same manner as
it is presently being carried on.

 

(w)          Schedules.
The Holder and Monroad, LLC have delivered to HERC complete and correct Schedules, in form and substance reasonably acceptable
to HERC, as of the Signing Date, and complete and correct copies of the documents and other material from which such schedules
were compiled.

 

(x)          Accuracy.
No representation, warranty, covenant or statement by the Holder or Monroad, LLC in this Agreement, the Schedules attached hereto
and the certificates or other documents furnished or to be furnished to HERC pursuant hereto, contains or will contain any untrue
statement of a material fact, or omits or will omit to state a material fact required to be stated herein or therein or necessary
to make the statements contained herein or therein, in light of the circumstances under which they were made, not false or materially
misleading.

 

Section 8.          Representations
and Warranties of HERC and MNHD. Each of HERC and MNHD, jointly and severally, warrants and represents to the Holder as
follows:

 

(a)          Capacity.
HERC and MNHD have full right, power and capacity to execute, deliver and perform their respective obligations under this Agreement
and the other documents required to be executed by HERC or MNHD in connection herewith and to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this Agreement
will not, constitute a breach of any term or provision of the certificate of incorporation or by-laws of HERC or MNHD or constitute
a default under any material law, rule, regulation, indenture, instrument, mortgage, deed of trust, or other agreement or instrument
to which HERC or MNHD is a party or by which they are bound.

 

    	 	9	 

     

    

 

(b)          Organization.

 

(i)          HERC
is a corporation duly organized, validly existing and in good standing under the laws of Mongolia, and is a wholly owned subsidiary
of Mongolia Holdings, Inc. HERC has the corporate power and authority to carry on its business as now conducted and as will be
conducted as supplemented by the Business, and to own, lease or operate the properties and assets now used by it in connection
with Monroad, LLC and the Business following the Closing Date.

 

(ii)         MNHD
is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, and MNHD has corporate
power and authority to carry on its business as now conducted and to own, lease or operate the properties and assets now used by
it in connection therewith. MNHD is duly qualified and in good standing to do business in each jurisdiction in which the nature
of its business or the ownership or leasing of its properties make such qualification necessary. All of the MNHD Shares upon issuance
shall be validly issued, fully paid and non-assessable.

 

(c)          Consents
and Approvals. No governmental license, permit or authorization, and no registration or filing with any court, governmental
authority or regulatory agency, is required in connection with HERC’s and MNHD’s execution, delivery or performance
of this Agreement.

 

HERC and MNHD each
shall execute, deliver and perform its obligations under this Agreement and no consent or other approval or any other party is
required to be obtained by HERC or MNHD in connection with the transactions contemplated hereby.

 

(d)          Legal
Proceedings. Neither MNHD nor HERC is a party to or affected by any pending litigation, arbitration or any governmental proceeding
or investigation that would in any manner affect its entering into this Agreement or performing the transactions contemplated hereby
or that might result in any material and adverse change in the financial condition, business or properties of HERC or MNHD and
to the best of their respective knowledge no such litigation, arbitration, proceeding or investigation is threatened.

 

(e)          Accuracy.
No representation, warranty, covenant or statement by HERC or MNHD in this Agreement, any Exhibit attached hereto, the Schedules
attached hereto and the certificates or other documents furnished or to be furnished to the Holder pursuant hereto (including the
Schedules, if any, provided for in this Section 8 and Exhibits thereto), contains or will contain any untrue statement of a material
fact, or omits or will omit to state a material fact required to be stated herein or therein or necessary to make the statements
contained herein or therein, in light of the circumstances under which they were made, not false or materially misleading.

 

(f)          Binding
Obligation. This Agreement, and any other agreement required to be delivered by HERC or MNHD pursuant to this Agreement, has
been duly executed and delivered by HERC and MNHD and constitutes the legal, valid and binding obligation of HERC and MNHD, enforceable
against HERC and MNHD in accordance with its terms, except to the extent that such enforceability may be limited by general principles
of equity or bankruptcy, insolvency and other similar laws affecting the enforcement of creditors’ rights generally. All
action of the Board of Directors of HERC and MNHD and all other corporate action necessary to authorize the execution, delivery
and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly taken.

 

    	 	10	 

     

    

  

(g)          Brokers;
Finders. With the exception of the introducing firm, Liberty Partners, LLC, or as otherwise disclosed, no agent, broker, investment
banker, person or firm acting on behalf of HERC or MNHD or any firm or corporation affiliated with HERC or MNHD or under their
authority is or will be entitled to any brokers’ or finders’ fee or any other commission or similar fee directly or
indirectly from the Holder or any person or entity affiliated with the Holder in connection with any of the transactions contemplated
hereby.

 

Section 9.          Survival
of Representations and Warranties. All representations and warranties made by Monroad, LLC, the Holder or HERC and MNHD
in this Agreement, including, without limitation, all representations and warranties made in any Exhibit or Schedule hereto or
certificate delivered hereunder, shall survive the Closing until and through the first anniversary of the Closing Date (the “Survival
Date”) provided, however, that all representations and warranties made by the Monroad, LLC and the Holder in Sections 7(h),
7(i), 7(n) and 7(o) hereof shall survive the Closing until and through one (1) month after the expiration of the applicable statute
of limitations (the “Extended Survival Date”).

 

Section 10.         Covenants
of the Holder and Monroad, LLC. The Holder and Monroad, LLC hereby covenant and agree:

 

(a)          Further
Assurances. The Holder and Monroad, LLC hereby agree that from time to time at the reasonable request of HERC or MNHD, and
without further consideration, to execute and deliver such additional instruments and to take such other action as HERC or MNHD
may reasonably require to convey, assign, transfer and deliver the Stock, underlying Assets and Business of Monroad, LLC, and otherwise
to carry out the terms of this Agreement.

 

(b)          Access
to Information; Confidentiality.

 

(i)          Subsequent
to the date hereof and prior to the Closing Date, the Holder and Monroad, LLC will continue to give to HERC, MNHD, their counsel,
accountants, and other representatives, full and free access to all properties, books, contracts, commitments and records of Monroad,
LLC and the Holder relating to the Stock or underlying Assets so that HERC and MNHD may have full opportunity to make such investigation
as they shall desire. HERC and MNHD covenant and agree to notify Monroad, LLC and Holder of any misrepresentation or breach of
warranty of which either becomes aware as a result of any such investigation.

 

(ii)         From
and after the date of this Agreement until the Closing or the termination of this Agreement, the Holder, Monroad, LLC and their
respective employees and representatives will maintain the confidentiality of all documents and information of a confidential nature
disclosed to either of them in the course of their negotiations and the their due diligence review of MNHD and HERC and will in
no event use any such confidential information for any purpose other than for the evaluation of the transactions contemplated herein
and in the event of termination of this Agreement will destroy all copies of documentation which MNHD or HERC may have delivered
to Monroad LLC or the Holder and will not use any confidential information from the MNHD or HERC for their own benefit.

 

    	 	11	 

     

    

  

(c)          Closing
Documents. The Holder and Monroad, LLC shall execute and deliver all instruments and documents required under Section 12 as
a condition precedent to the Closing hereof and take all action required to carry out the terms of this Agreement and to consummate
the transactions contemplated hereby.

 

(d)          Conduct
of Business. From the date of this Agreement to the Closing Date, except as expressly disclosed in the Schedules to this Agreement,
the Holder and Monroad, LLC shall conduct its operations as engaged in at the date of this Agreement according to its ordinary
course of business, shall maintain its records and books of account in a manner that fairly and currently reflects its financial
condition and results of operations and shall not engage in any transactions other than as contemplated by this Agreement.

 

Section 11.         Covenants
of HERC and MNHD. HERC and MNHD hereby covenant and warrant as follows:

 

(a)          Noninterference.
HERC and MNHD shall not take or omit to take any action that (i) if taken or omitted on or before the date of this Agreement, would
make untrue any of the representations and warranties contained in Section 8 of this Agreement, or (ii) would interfere with HERC’s
or MNHD’s ability to perform or would prevent performance of any of its obligations under this Agreement or any of the other
agreements or instruments provided for herein.

 

(b)          Closing
Documents. HERC and MNHD shall execute and deliver all instruments and documents required under Section 15 as a condition precedent
to the Closing hereof and take all action required to carry out the terms of this Agreement and to consummate the transactions
contemplated hereby.

 

(c)          Confidentiality.
From and after the date of this Agreement until the Closing or the termination of this Agreement, HERC, MNHD and their respective
employees and representatives will maintain the confidentiality of all documents and information of a confidential nature disclosed
to either of them in the course of their negotiations and HERC’s and MNHD’s due diligence review of Monroad, LLC and
will in no event use any such confidential information for any purpose other than for the evaluation of the transactions contemplated
herein and in the event of termination of this Agreement will destroy all copies of documentation which Monroad, LLC or Holder
may have delivered to MNHD or HERC and will not use any confidential information from the Holder or Monroad LLC for their own benefit.

 

Section 12.         Conditions
Precedent to HERC’s and MNHD’s Obligations. The obligations of HERC and MNHD under this Agreement are subject
to the following conditions (any of which may be waived in writing in whole or in part by HERC or MNHD):

 

(a)          There
shall not have been any breach of the representations, warranties, covenants and agreements of the Holder contained in this Agreement
or the Schedules hereto and all such representations and warranties shall be true at all times on or before the Closing as if given
at such times, except to the extent that any such representation or warranty is expressly stated to be true as of some other time.

 

    	 	12	 

     

    

  

(b)          Monroad
LLC and the Holder shall have performed and complied in all material respects with all covenants, agreements and conditions required
by this Agreement to be performed or complied with by it prior to or at the Closing Date. All documents and instruments required
in connection with this Agreement shall be reasonably satisfactory in form and substance to HERC and MNHD.

 

(c)          HERC
shall have received a certificate dated the date of the Closing and signed by the Holder, certifying that the conditions specified
in subsections (a) and (b) above have been fulfilled.

 

(d)          HERC
shall have received a certificate dated the date of the Closing and signed by the Holder and Monroad LLC, certifying that there
has been no material adverse change in Monroad, LLC, the Stock or underlying Assets since the Signing Date and the Holder and Monroad
LLC have operated the Business in the ordinary course.

 

(e)          The
Holder shall have obtained and delivered to HERC any required consents or approvals of any other third parties whose consent is
required to the transactions contemplated hereunder.

 

(f)          HERC
shall have received documentation and such other good and sufficient instruments of transfer and conveyance as, in the reasonable
opinion of counsel to HERC or MNHD, shall be effective to vest in HERC good and valid title to the Stock, Business or underlying
Assets, as herein provided.

 

(g)          HERC
shall have received originals or certified copies, reasonably satisfactory in form and substance to HERC, of all such corporate
documents of Monroad LLC and the Holder as HERC shall reasonably require, including without limitation the following:

 

(i)          the
Articles of Formation of Monroad LLC and all amendments thereto and restatements thereof certified as of a recent date by the appropriate
agency;

 

(ii)         the
Operating Agreement of Monroad LLC and all amendments thereto and restatements thereof certified as of the Closing Date by an officer
of Monroad LLC and the Holder;

 

(iii)        certificate
of existence from the by the appropriate agency, certifying as of a recent date that the Monroad, LLC exists and is in good standing
under the laws of Mongolia;

 

(h)          HERC
shall have received certified resolutions of Monroad, LLC and the Holder authorizing the transactions contemplated by this Agreement.

 

(i)          The
Holder shall enter in a Non-Competition Agreement with HERC in the form annexed hereto as Exhibit 12(i).

 

    	 	13	 

     

    

  

(j)          HERC
shall have received assumption and assignment agreements for each agreement requiring such agreement to be executed in order to
be assigned and such other good and sufficient instruments of conveyance, assignment and transfer, in form and substance satisfactory
to HERC, as shall be effective to vest in HERC good and marketable title to the Stock, Monroad, LLC, the Business or underlying
Assets to put HERC in actual possession and operating control thereof and to assist HERC in exercising all rights with respect
thereto as set forth on Schedule 12(j) attached hereto.

 

(k)          Since
the Balance Sheet Date and through the Closing Date, there shall not have occurred any material change in the Stock or underlying
Assets or the condition (financial or otherwise) of Monroad, LLC, the Business, its properties or prospects.

 

(l)          HERC
shall have received all documents required to be delivered to HERC under any other provision of this Agreement.

 

(m)          HERC
shall have received a Certificate of Incumbency identifying the Officers and Managers of the Monroad, LLC before Closing.

 

(n)          All
applicable Mongolian, foreign, state or local filing and licensing requirements related to or in connection with the proposed transaction
have been satisfied, and all applicable Mongolian, foreign, state or local regulatory approvals required to consummate the proposed
transaction have been received.

 

Section 13.         Condition
of Assets.

 

(a)          Except
as otherwise provided herein, the Fixed Assets will be transferred “as is, where is and with all faults.”

 

(b)          It
is understood and agreed that the contribution and exchange transaction has been adjusted by prior negotiation to reflect that
the Fixed Assets are indirectly contributed by Holder and accepted by HERC subject to the foregoing.

 

Section 14.         Risk
of Loss; Damage to or Destruction of Assets.

 

Holder assumes all
risks and liability for damage or injury occurring to the Assets by fire, storm, accident, or other casualty until the Closing
has been consummated. If the Assets sustain major or material damage during the period from and after the Signing Date and prior
to the Closing caused by fire or other casualty, either Holder or HERC may respectively elect to terminate this Agreement by written
notice to the other within fifteen (15) days after notice of such event, or at Closing, whichever is earlier. If neither Holder
nor HERC so elects pursuant to this Section 14 to terminate its obligations under this Agreement, the Closing will take place as
provided herein and Holder will have no obligation of repair or replacement.

 

Section 15.         Conditions
Precedent to the Holder’s Obligations. The obligations of the Holder under this Agreement are subject to the following
conditions (any of which may be waived in writing in whole or in part by the Holder):

 

    	 	14	 

     

    

  

(a)          There
shall not have been any breach of the representations, warranties, covenants and agreements of HERC or MNHD contained in this Agreement,
and all such representations and warranties shall be true at all times at and before the Closing, except to the extent that any
such representation or warranty is expressly stated to be true as of some other time.

 

(b)          HERC
and MNHD each shall have performed and complied in all material respects with all agreements and conditions required by this Agreement
to be performed or complied with by either of them. All documents and instruments required in connection with this Agreement shall
be reasonably satisfactory in form and substance to the Holder.

 

(c)          The
Holder shall have received a certificate dated the date of the Closing and signed by HERC and MNHD, certifying that the conditions
specified in subsections (a) and (b) above have been fulfilled.

 

(d)          At
the Closing, Holder shall have received the MNHD Shares as set forth in Sections 2 and 3 hereof.”

 

(e)          The
Holder shall have received copies of the minutes and resolutions of the Board of Directors of HERC and MNHD showing the authorization
and approval by such Boards of the execution and delivery by HERC and MNHD to the Holder of this Agreement and the agreements and
instruments provided for herein and of the performance of the obligations of HERC and MNHD under this Agreement and such other
instruments and agreements, and evidencing the authority of each person executing this Agreement and such other instruments and
agreements on behalf of each of them to do so, certified as of a recent date by an officer of HERC and MNHD, as the Holder may
reasonably request.

 

(f)          The
Holder shall have received a certificate of good standing from each of HERC and MNHD and a certificate of incumbency identifying
the officers and directors of HERC and MNHD immediately before Closing.

 

(g)          The
Holder shall have received all documents required to be delivered to the Holder under any other provision of this Agreement.

 

(h)          The
common shares of MNHD, as quoted on OTC Markets, shall have traded at a price equal to or above two US dollars per share ($2.00)
on the last trading day before the Closing.

 

(i)          The
Hertz Equipment Rental franchise license for Mongolia shall remain in full force and effect.

 

(j)          Two
obligations recorded in Item 13 of the most recent MNHD Form 10K, in the amounts of $731,198 and $798,361 (as of year end 2014)
shall each be released in an amount equal to 90% of the now current obligation, under a Board approved plan of conversion to common
stock.

 

(k)          The
Holder shall be satisfied that liquidity and resources are sufficient to execute the newly envisioned strategy of the business
operations combined under this Agreement.

 

    	 	15	 

     

    

  

Section 16.         Conditions
Precedent to Obligations of Both Holder and HERC. The obligations of both the Holder and HERC to complete this transaction
shall be subject to the fulfillment at or prior to the Closing Date of the following conditions:

 

(a)          No
Injunctions. No action or proceeding shall have been instituted or threatened by any public authority or private person prior
to the Closing before any court or administrative body to restrain, enjoin or otherwise prevent the consummation of this transaction
or to recover any damages or obtain other relief as a result of this transaction.

 

(b)          Due
Diligence. The Holder and HERC shall each have been afforded the opportunity to complete their respective due diligence and
conduct a review of the business and prospects of the other, and shall be reasonably satisfied as to such business and prospects.

 

(c)          Consents.
Any consent to the transaction considered by Monroad, LLC, the Holder or HERC to be necessary or advisable under any agreement
or contract, the withholding of which might have, in the judgment of the Holder or HERC, a material adverse effect on the financial
condition of the Business, shall have been obtained.

 

(d)          Approval.
Approval by the respective shareholders or members (if required) and Boards of Directors or Managers, and to all requisite corporate
authorizations, of the parties thereto.

 

Section 17.         Termination.

 

(a)          This
Agreement may be terminated at any time prior to the Closing Date:

 

(i)          By
mutual written consent of the Holder, HERC and MNHD; or (ii) By HERC, if the Holder has materially breached any of its representations,
warranties or covenants under this Agreement; or (iii) By the Holder, if HERC or MNHD have materially breached any of its representations,
warranties or covenants under this Agreement, or (ii) By either party if the Closing has not occurred by March 30, 2016 (the “Exclusivity
Period”).

 

(b)          In
the event of termination of this Agreement, Sections 10 (b)(ii), 11(c), 23, 24, 26, and 29 of this Agreement shall survive any
such termination.

 

Section 18.         Exclusivity.
The Holder, Monroad, LLC and their affiliates and their respective officers, directors, employees and agents shall not initiate,
solicit, encourage, directly or indirectly, or accept any offer or proposal, regarding the possible acquisition by any person other
than HERC and MNHD (including any material assets) and shall not (other than in the ordinary course of business as heretofore conducted)
provide any confidential information regarding Monroad, LLC, its assets or business to any person other than HERC and its representatives
for a period ending the earlier of (i) July 1, 2016, or (ii) termination by HERC or MNHD as set forth in paragraph 17 above (the
“Exclusivity Period”), unless HERC and Holder mutually agree to an extension of the Exclusivity Period.

 

Section 19.         Bulk
Sale Act. The Holder and HERC agree to waive compliance with all applicable State Bulk Sales Acts and the rules and regulations
promulgated thereunder.

 

    	 	16	 

     

    

  

Section 20.         Orderly
Transfer. The Holder and Monroad, LLC shall, and hereby agrees to, cooperate with HERC and MNHD in all reasonable ways,
at no direct or indirect cost to HERC or MNHD, in effecting any orderly transfer to HERC of the Stock, Business or underlying Assets
to be acquired by HERC hereunder.

 

Section 21.         Parties
in Interest. Subject to Section 32, this Agreement shall be binding upon and shall inure to the benefit of the parties
and their successors and assigns. Nothing herein expressed or implied is intended or shall be construed to confer upon or to give
any person, firm, or corporation other than the parties hereto any rights or remedies under or by reason hereof.

 

Section 22.         Entire
Agreement. This instrument, including the Schedules and Exhibits hereto contains the entire agreement and understanding
among the parties hereto with respect to the subject matter hereof and shall not be modified or affected by any offer, proposal,
statement or representation, oral or written, made by or for any party in connection with the negotiation of the terms hereof.
All references herein to this Agreement shall specifically include, incorporate and refer to the Schedules and Exhibits attached
hereto which are hereby made a part hereof. There are no representations, promises, warranties, covenants, undertakings or assurances
(express or implied) other than those expressly set forth or provided for herein and in the other documents referred to herein.
This Agreement may not be modified or amended orally, but only by writing signed by all the parties hereto.

 

Section 23.         Governing
Law; Consent to Jurisdiction. This Agreement and all rights and obligations hereunder shall be governed by, and construed
in accordance with, the laws of the State of Delaware, applicable to agreements made and to be performed wholly within said State,
without regard to the conflicts of laws principles of such State.

 

Section 24.         Expenses.
Each party hereto shall pay its own expenses and fees incidental to the preparation of this Agreement, the carrying out of the
provisions of this Agreement and the consummation of the transactions contemplated hereby, except as hereinafter described.

 

Section 25.         No
Fault. In the event of a failure to Close, for any reason including default by either Party, notwithstanding anything to
the contrary contained in this Agreement, neither Party shall be liable to the other for any direct, consequential, special, indirect,
incidental, exemplary or punitive damages of any kind or nature whatsoever, or any transaction cost, advisory fee, lost income
or profits, regardless of whether arising from breach of contract or tort, even if advised of the possibility of such loss or damage
or if such loss or damage could have been reasonably foreseen.

 

Section 26.         Arbitration.
Any dispute with respect to this Agreement shall be resolved by mediation and, if mediation is not successful, then by arbitration
as provided herein.

 

    	 	17	 

     

    

  

The parties agree first
to endeavor to settle the dispute in an amicable manner by mediation administered by the American Arbitration Association (the
“AAA”) or such other mediation service as is mutually agreeable to the parties to the dispute under either the AAA’s
Commercial Mediation Rules or such other commercial mediation rules as is mutually agreeable to the parties to the dispute. The
mediation shall take place in Los Angeles, California, with representatives of the parties present with full authority to negotiate
a settlement. The parties must participate in the Mediation process with a neutral mediator for at least 10 hours over at least
2 days prior to commencement of any arbitration. If a party to the dispute refuses to participate in the mediation, the party demanding
mediation may either compel mediation by seeking an appropriate order from a court of competent jurisdiction or proceed immediately
to arbitration. Thereafter, any unresolved dispute shall be settled by arbitration administered by the AAA or such other arbitration
service as is mutually agreeable to the parties to the dispute in accordance with the AAA’s Commercial Arbitration Rules
or such other commercial arbitration rules as is mutually agreeable to the parties to the dispute. Judgment upon the award rendered
by the arbitrator(s) may be entered in any court having jurisdiction thereof, and the resolution of the disputed matter as determined
by the arbitrator(s) shall be binding on the parties. Any such mediation or arbitration shall be conducted in Los Angeles.

 

Any party may, without
inconsistency with this Agreement, seek from a court any interim or provisional relief that may be necessary to protect the rights
or property of that party pending the establishment of the arbitral tribunal, or pending the arbitral tribunal’s determination
of the merits of the controversy.

 

The arbitrator(s) may
award costs and fees to the prevailing party if, in his/her (their) discretion, the non-prevailing party did not prosecute the
arbitration or settlement of the dispute in good faith. “Costs and fees” for this purpose shall mean reasonable pre-award
expenses of the arbitration, including fees for the arbitrator(s), administrative fees, travel expenses, out-of-pocket expenses
such as copying and telephone, court costs, witness fees and attorneys’ fees. Except as otherwise awarded by the arbitrator(s),
all costs and fees shall be borne by the party incurring such costs and fees.

 

The award shall be
in writing and shall be signed by the arbitrator(s) and shall include a statement regarding the disposition of any statutory claim.

 

Section 27.         Left
Intentionally Blank

 

Section 28.         Severability.
If any part of this Agreement is held to be unenforceable or invalid under, or in conflict with, the applicable law of any jurisdiction,
the unenforceable, invalid or conflicting part shall, to the extent permitted by applicable law, be narrowed or replaced, to the
extent possible, with a judicial construction in such jurisdiction that effectuates the intent of the parties regarding this Agreement
and such unenforceable, invalid or conflicting part. To the extent permitted by applicable law, notwithstanding the unenforceability,
invalidity or conflict with applicable law of any part of this Agreement, the remaining parts shall be valid, enforceable and binding
on the parties.

 

Section 29.         Notices.

 

(a)          All
notices, requests, consents and demands by the parties hereunder shall be delivered by hand, by telecopier, by recognized national
overnight courier or by deposit in the United States mail, postage prepaid, by registered or certified mail, return receipt requested,
addressed to the party to be notified at the addresses set forth below:

 

    	 	18	 

     

    

  

(i)          if
to the Holder:

 

Tengis Garamgaibaatar

Bayangol district Khoroo 20

Ulaanbaatar, Mongolia

 

with a copy to:

 

MDS & KHANLEX LLP

Maizorig Janchivdorj

5th Floor, Express Tower, Baga toiruu, 1 Khoroo,

Chingeltei district, Ulaanbaatar Mongolia 

 

(ii)         if
to MNHD or HERC:

 

Mongolia Holdings, Inc

2300 W. Sahara Avenue

Suite 800

Las Vegas, NV 89102

(702) 949-9449 Office

(702) 932-1577 Fax

 

with a copy to:

 

Elliot H. Lutzker

Davidoff Hutcher & Citron LLP

605 Third Ave., 34th Floor

New York, NY 10158

Direct: (646) 428-3210

Main: (212) 557-7200

Fax: (212) 286-1884

 

(b)          Notices
given by mail shall be deemed effective on the earlier of the date shown on the proof of receipt of such mail or, unless the recipient
proves that the notice was received later or not received, three (3) days after the date of mailing thereof. Other notices shall
be deemed given on the date of receipt. Any party hereto may change the address specified herein by written notice to the other
parties hereto.

 

Section 30.         Amendment;
Non-Waivers. Any provision of this Agreement may be amended, if and only if, such amendment is written and signed by each
party to this Agreement. Neither any failure nor any delay on the part of any party to this Agreement in exercising any right,
power or privilege hereunder shall operate as a waiver of any rights of such party, unless such waiver is made by a writing executed
by the party and delivered to the other parties hereto, nor shall a single or partial exercise of any right preclude any other
or further exercise of any other right, power or privilege accorded to any party hereto.

 

    	 	19	 

     

    

  

Section 31.         Disclosure.
From and after the date of this Agreement until the Closing or the termination of this Agreement, the Holder or Monroad, LLC will
not (i) solicit or encourage inquiries or proposals with respect to, or furnish any information relating to, or participate in,
any negotiations or discussions concerning the sale of Monroad, LLC, the Stock, Business or underlying Assets with anyone other
than MNHD and HERC; or (ii) unless otherwise required by law, neither party shall make any public announcement without prior approval
of the language of such announcement by the other.

 

Section 32.         Assignment.
This Agreement may not be assigned by any party without the prior written consent of the other parties.

 

Section 33.         Further
Action. Each of the parties hereto shall use its best efforts to take or cause to be taken, and to cooperate with the other
parties hereto to the extent necessary with respect to, all action, and to do, or cause to be done, consistent with applicable
law, all things necessary, proper or advisable to consummate and make effective the transactions contemplated by this Agreement.

 

Section 34.         Headings.
The headings contained herein are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

 

Section 35.         Counterparts.
This Agreement may be executed and delivered in multiple counterpart copies, each of which shall be an original and all of which
shall constitute one and the same agreement.

 

- The balance of this page left intentionally
blank –

 

    	 	20	 

     

    

  

IN WITNESS WHEREOF, the parties hereto have
executed and delivered this Agreement on the date first above written.

 

	 	SOLE SHAREHOLDER OF MONROAD, LLC
	 	(HOLDER)
	 	 	 
	 	By:	  /s/ Garamgaibaatar Batkhuu
	 	 	Garamgaibaatar Batkhuu
	 	 	 
	 	MONROAD, LLC
	 	 	 
	 	By:	  /s/ Tengis Garamgaibaatar
	 	 	
        Tengis Garamgaibaatar, CEO

	 	 
	 	HERC, LLC
	 	(HERC)
	 	 	 
	 	By:	  /s/ Gary Kucher
	 	 	Gary Kucher, Sole Director
	 	 	 
	 	MONGOLIA HOLDINGS, INC.
	 	(MNHD)
	 	 	 
	 	By:	  /s/ Brad Siniscalchi
	 	 	Brad Siniscalchi, President

 

    	 	21

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