Document:

ex10-3.htm

EXHIBIT 10.3

 

GulfMark Offshore, Inc.
842 West Sam Houston Parkway North, Suite 400
Houston, TX 77024

 

November 23, 2016

 

	
Re:
	
Support Agreement (this “Agreement”) regarding the tender of GulfMark Offshore, Inc.’s (the “Company”) 6.375% Senior Notes due 2022 (the “Notes”) for cash 

 

Ladies and Gentlemen:

 

The Company is hereby contemplating (a) a tender offer for up to $300 million aggregate principal amount of the Notes at a tender price of $480 per $1,000 of principal with an early tender fee of $20 per $1,000 of principal and subject to a minimum condition of $250 million (such condition, the “Minimum Condition”, and such tender offer, the “Tender Offer”) and (b) an equity rights offering for the Company’s Class A Common Stock (“Common Stock”) that is to be offered to all holders of shares of Common Stock at the Offer Price (as defined in the Securities Purchase Agreement) (the “Rights Offering”).

 

By execution and delivery of this Agreement, we hereby agree as follows:

 

1.     Participation in the Tender Offer. The holder named on the signature pages hereto (the “Holder”) hereby agrees to tender, and will cause its affiliates to tender, pursuant to, and in accordance with the terms and conditions of, the definitive documents regarding the Tender Offer, and not withdraw, modify, condition, amend or revoke such tender unless the conditions set forth in the definitive documents regarding the Tender Offer are not satisfied or this Agreement is validly terminated pursuant to Section 10 hereof, one-hundred percent (100%) of the Notes held by the Holder and its affiliates (the “Holder’s Notes”) in the Tender Offer as soon as practicable following the commencement of the Tender Offer but no later than 5:00 p.m. New York City time on the eighteenth business day (as defined in Rule 14d-1 under the Securities Exchange Act of 1934, as amended) following the commencement of the Tender Offer.

 

2.     Tender Offer Conditions. The Holder’s obligations under Section 1 of this Agreement and the Company’s acceptance of any Notes tendered by the Holder (or an affiliate) shall be subject to consummation of the Tender Offer upon the terms and subject to the satisfaction of the conditions set forth in the definitive documents regarding the Tender Offer (unless, with respect to only the Minimum Condition, waived by each Investor). The Holder, on behalf of itself and its affiliates, acknowledges that the Company’s acceptance of any Notes tendered will, among other things, be subject to the consummation of the transactions contemplated under the (a) Securities Purchase Agreement and (b) the Term Loan Documents (as defined in the Securities Purchase Agreement).

 

 

 

 

 

3.     Participation in the Rights Offering. Upon the terms and subject to the conditions set forth in the definitive documents regarding the Rights Offering, in consideration of the promises and mutual covenants and agreements herein contained, the Holder hereby agrees to fully subscribe, and will cause its affiliates to fully subscribe, for an amount of shares of Common Stock that is equal to its and their respective initial pro rata allocation of shares of Common Stock available for purchase in the Rights Offering (the “Initial Allocation”), unless the conditions set forth in the definitive documents regarding the Rights Offering are not satisfied or this Agreement is validly terminated pursuant to Section 10 hereof. The Holder hereby agrees that it shall not, and shall cause its affiliates not to, purchase or commit to purchase any shares of Common Stock in the Rights Offering in excess of the Initial Allocation (including through the exercise of any right to acquire additional shares in the event other participants in the Rights Offering do not fully subscribe to purchase their initial pro rata allocation of shares of Common Stock). 

 

4.     Representations and Warranties of the Company. The Company represents and warrants to the Holder as follows:

 

(a)     The Company has the legal capacity and all requisite power and authority to enter into this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.

 

(b)     This Agreement has been duly executed and delivered by the Company. This Agreement is the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally, and is in full force and effect. The Company is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is organized, and the execution and delivery by the Company of this Agreement and the performance of its obligations hereunder and compliance with the terms hereof have been duly authorized by all necessary action on the part of the Company and its board of directors. 

 

(c)     The execution, delivery and performance of this Agreement by the Company does not, and the consummation of the transactions contemplated hereby and compliance with the terms hereof, will not conflict with, or result in any violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of, or result in, termination, amendment, cancelation or acceleration of any obligation or to loss of a material benefit under, or to increased, additional, accelerated or guaranteed rights or entitlements of any Person under, or result in the creation of any Encumbrance upon any of the assets or properties of the Company under, (i) any provision of any Contract to which the Company is a party or by which its assets and properties are bound; (ii) any organizational document of the Company; or (iii) any order or any law, rule or regulation applicable to the Company or its assets or properties, except, in the case of clauses (i) and (iii) above, for any such conflict, breach, violation, default, lien, charge or encumbrance that would not, individually or in the aggregate, have a material adverse effect. No consent of, or registration, declaration or filing with, any governmental entity or other Person is required to be obtained or made by or with respect to the Company in connection with the execution, delivery and performance of this Agreement or the consummation of the transactions contemplated hereby.

 

 

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5.     Representations and Warranties of the Holder; Acknowledgements and Undertakings of the Holder. The Holder, on behalf of itself and its affiliates, represents and warrants to the Company as follows:

 

(a)     The Holder has the legal capacity and all requisite power and authority to enter into this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.

 

(b)     This Agreement has been duly executed and delivered by the Holder. This Agreement is the legal, valid and binding obligation of the Holder, enforceable against the Holder in accordance with its terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally, and is in full force and effect. The Holder is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is organized, and the execution and delivery by the Holder of this Agreement and the performance of its obligations hereunder and compliance with the terms hereof have been duly authorized by all necessary action on the part of the Holder and its board of directors or similar governing body. 

 

(c)     The Holder, through its affiliates, beneficially owns the aggregate principal amount of the Notes set forth on its signature page below, which represent all the Notes held by the Holder and its affiliates and which are owned free and clear of any pledge, security interest, claim, lien or other encumbrance of any kind (except for any such encumbrance that may be imposed pursuant to this Agreement and any applicable restrictions on transfer under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws) and the Holder is an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) and in accordance with Regulation D.

 

(d)     The Holder, through its affiliates, beneficially owns the number of shares of Common Stock set forth on its signature page below, which represent all the shares of Common Stock directly or indirectly held by the Holder and its affiliates (except for an additional 20,000 shares of Common Stock held by William Martin, an affiliate of the Holler).

 

(e)     The Holder acknowledges that it has had the opportunity to obtain and review information reasonably requested by the Holder from the Company prior to executing this Agreement or entering into the transactions contemplated hereby. The Holder understands that in the event the Company agrees to disclose additional information to the Holder or to meet with the Holder, the Company may require that the Holder enter into one or more confidentiality agreements in a form that is reasonably acceptable to the Holder.

 

(f)     The Holder is a sophisticated investor with knowledge and experience in business and financial matters, is accustomed to participating in transactions such as the Tender Offer and the Rights Offering, and is able to negotiate the transactions contemplated by this Agreement and to evaluate its merits and risks.

 

 

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(g)     The Holder has conducted its own independent evaluation, made its own analysis and consulted with advisors as it has deemed necessary, prudent or advisable in order for the Holder to make its own determination and decision to enter into the transactions contemplated by this Agreement and to execute and deliver this Agreement. The Holder has adequate information to evaluate the transactions contemplated by this Agreement and has had the opportunity to discuss such information with its advisors. In entering into the transactions contemplated by this Agreement, the Holder is relying entirely upon such independent evaluation and analysis and consultation with its advisors and has not relied upon any oral or written representations and warranties of any kind or nature by any of the Company or its affiliates, including controlling persons (collectively, the “Company Parties”) or anyone affiliated with the Company Parties, except for the information contained in the Term Sheet, the Tender Offer, the Rights Offering or as specifically set forth in this Agreement. None of the Company Parties nor anyone affiliated with the Company Parties has made any representations or warranties, express or implied, regarding the Company or any aspect of the transactions contemplated by this Agreement, except for the information contained in the Term Sheet, the Tender Offer, the Rights Offering or as specifically, and not by implication, set forth in this Agreement, and the Holder is not relying on any representation or warranty not contained in the Term Sheet, this Agreement, the Tender Offer or the Rights Offering.

 

(h)     The execution, delivery and performance of this Agreement by the Holder does not, and the consummation of the transactions contemplated hereby and compliance with the terms hereof, will not conflict with, or result in any violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of, or result in, termination, amendment, cancelation or acceleration of any obligation or to loss of a material benefit under, or to increased, additional, accelerated or guaranteed rights or entitlements of any Person under, or result in the creation of any Encumbrance upon any of the assets or properties of the Holder or its affiliates under, (i) any provision of any Contract to which the Holder or its affiliates is a party or by which its or their assets and properties are bound; (ii) any organizational document of the Holder or its affiliates; or (iii) any order or any law, rule or regulation applicable to the Holder or its affiliates or their respective assets or properties, except, in the case of clauses (i) and (iii) above, for any such conflict, breach, violation, default, lien, charge or encumbrance that would not, individually or in the aggregate, have a material adverse effect. No consent of, or registration, declaration or filing with, any governmental entity or other Person is required to be obtained or made by or with respect to the Holder or its affiliates in connection with the execution, delivery and performance of this Agreement or the consummation of the transactions contemplated hereby; provided, however, that following the execution, delivery and performance of this Agreement, the Holder and its affiliates will be required to amend their Schedule 13D with respect to their beneficial ownership of securities of the Company currently on file with the Securities and Exchange Commission to, among other things, describe the transactions contemplated hereby, include a copy of this Agreement as an exhibit thereto and update their beneficial ownership of securities of the Company resulting from the transactions contemplated hereby. 

 

 

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6.     Covenants.

 

(a)     Prior to the valid termination of this Agreement in accordance with Section 10 below (the date of such valid termination, the “Termination Date”), the Holder will not, and will cause its affiliates not to, withdraw, modify, condition, amend or revoke any tender contemplated by this Agreement.

 

(b)     Prior to the Termination Date and subject to the terms and conditions of this Agreement, the Holder agrees not to, and will cause its affiliates not to, (i) take, or cause to be taken, directly or indirectly, any action inconsistent with the consummation of, or any action opposing, the Tender Offer or the Rights Offering, (ii) enter into any agreement, arrangement or understanding with any Person, or take any other action, that violates or conflicts with or would reasonably be expected to violate or conflict with, or result in or give rise to a violation of or conflict with, the Holder’s representations, warranties, covenants and obligations under this Agreement, or (iii) take any action that could restrict or otherwise affect the Holder’s legal power, authority and right to comply with and perform its covenants and obligations under this Agreement.

 

(c)     Prior to the Termination Date, the Holder agrees that, without the Company’s prior written consent, it will not, and will cause its affiliates not to, Transfer (i) any of the Holder’s Notes or any interest therein, in whole or in part, unless the transferee of such Notes agrees in writing (the form and substance of which shall be approved by the Company and each Investor) to be bound by the terms and conditions of this Agreement and (ii) any of the Holder’s or its affiliates’ rights in connection with the Rights Offering, in whole or in part.

 

(d)     The Company and the Holder agree that the Company shall not, without the prior written consent of the Holder, disclose the name of the Holder or amount of the Holder’s Notes held by the Holder (or its affiliates) or that the Holder has entered into this Agreement in any public manner, including in the Tender Offer and Rights Offering or any related press release; provided, however, that  the Company may disclose such name or amount to the extent that it is required to do so by the Securities and Exchange Commission, the NYSE or The Financial Industry Regulatory Authority or pursuant to any other law, rule or regulation and  the Company may disclose the aggregate percentage or aggregate principal amount of Notes held by holders who have signed support agreements with the Company agreeing to tender their Notes in the Tender Offer (without naming such holders); provided, further, however, that the Company may disclose such name or amount if such information is or becomes generally available to the public other than as a result of a breach of this Agreement by the Company.

 

(e)     The Company agrees to commence the Tender Offer as soon as practicable and to provide the Holder with the offering documents governing the Tender Offer and such other documents relating thereto as the Holder may reasonably request in advance of the commencement. 

 

(f)           For three years following the date hereof, William Martin shall have the right to remain a member of the Company’s board of directors; provided, however, that this right shall terminate in the event that the Holder and its affiliates cease to beneficially own in the aggregate ten percent (10%) or more of the issued and outstanding shares of Common Stock.  In the event that a vacancy is created at any time as a result of death, disability, retirement, or resignation of William Martin, the Holder shall have the right to designate and appoint another Person to be a member of the Company’s board of directors by providing written notice thereof to the Company.

 

 

 

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7.     Non-Solicit. The Holder hereby covenants and agrees that it will not, and will not authorize, permit or cause its affiliates and its and their respective officers, directors, employees, partners, members, controlling persons, agents, advisors and other representatives (“Representatives”) to, directly or indirectly, take any action to solicit, encourage, facilitate, initiate or engage in discussions or negotiations with, or provide any information to or enter into any agreement with any Person or facilitate, any inquiries or submission of proposals or offers from any Person (other than each Investor and its respective affiliates) concerning any Acquisition Transaction, or resolve, agree or propose to take any such action. The Holder shall, and shall, if applicable, cause each of its Representatives to cease and cause to be terminated any existing activities, discussions or negotiations by the Holder, any affiliate of the Holder or any Representative of the Holder or its affiliates with any Person (other than each Investor and its affiliates) conducted heretofore with respect to any Acquisition Transaction. The Holder shall promptly (but in no case later than 24 hours after receipt) advise each Investor, orally and in writing, of any inquiry, proposal or offer regarding an Acquisition Transaction and the price and other terms and conditions of any such inquiry, proposal or offer and the identity of the Person making any such inquiry, proposal or offer, and shall provide each Investor copies of all documents provided to them or their Representatives in connection therewith. 

 

8.     Counterparts. This Agreement may be executed in any number of counterparts and by different parties and separate counterparts, each of which when so executed and delivered, shall be deemed an original, and all of which, when taken together, shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or portable document format (PDF) shall be effective as delivery of a manually executed counterpart of this Agreement.

 

9.     Choice of Laws; Forum. The validity of this Agreement, the construction, interpretation, and enforcement hereof, and the rights of the parties hereto with respect to all matters arising hereunder or related hereto shall be determined under, governed by, and construed and enforced in accordance with the internal laws of the State of New York without regard to conflicts of laws principles (but including and giving effect to Sections 5-1401 and 5-1402 of the New York General Obligations Law). The parties hereby irrevocably and unconditionally consent to the sole and exclusive jurisdiction of the courts of the State of New York located in New York County and the United States District Court for the Southern District of New York for any action, suit or proceeding arising out of or relating to this Agreement and the transactions contemplated hereby, and the parties hereby agree not to commence any action, suit or proceeding related thereto except in such courts. The parties further hereby irrevocably and unconditionally waive any objection to the laying of venue of any action, suit or proceeding arising out of or relating to this Agreement and the transactions contemplated hereby in such courts and hereby further irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. 

 

10.     Termination of Agreement. Unless otherwise agreed to in writing by the Company, each Investor and the Holder, the rights and obligations of the Company and the Holder under this Agreement shall terminate on the earliest to occur of:

 

(a)     November 24, 2016, if the Tender Offer shall not have been commenced by such date;

 

 

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(b)     forty five days after the commencement of the Tender Offer if the conditions set forth in the definitive documents regarding the Tender Offer are not satisfied by such date (or, with respect to the Minimum Condition, waived by each Investor), unless the Tender Offer has been extended by the Company, in which case the forty-five day period shall be extended to allow for the consummation of the Tender Offer within such extended period of time; and

 

(c)     the Company shall have provided written notice to the Holder that it has determined not to proceed with, or has determined to terminate, the Tender Offer, or to modify the terms of, the definitive documents regarding the Tender Offer that are attached hereto in a way that will materially adversely affect the Holder in a manner that is disproportionate to other holders of Notes participating in the Tender Offer without the Holder’s prior written consent, it being agreed and understood by the Holder that any amendment, extension or other modification to the expiration deadline shall not be deemed to materially adversely affect the Holder, nor shall the waiver of the Minimum Condition by each Investor.   

 

11.     The Company’s Right of Assignment. The parties hereto agree that neither this Agreement nor any of the rights or obligations of any party under this Agreement shall be assigned, in whole or in part (by operation of law or otherwise), by the Holder without the prior written consent of the Company and each Investor. The parties hereto agree that the Company may assign or otherwise transfer its rights or obligations under this Agreement to a direct parent entity or wholly-owned subsidiary of the Company with the prior written consent of each Investor. Subject to the foregoing, this Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer on any Person other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except the provisions of this Agreement shall be for the benefit of, and directly enforceable by, each Investor.

 

12.     Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter of this Agreement, and supersedes all other prior negotiations, agreements and understandings, whether written or oral, among the parties with respect to the subject matter of this Agreement; provided, however, that any confidentiality agreement executed by any party hereto shall survive this Agreement and shall continue in full force and effect irrespective of the terms hereof.

 

13.     Specific Performance. Each party agrees that irreparable damage may occur in the event any provision of this Agreement was not performed in accordance with the terms hereof and that the parties and, in accordance with Section 12, each Investor, shall be entitled to specific performance of the terms hereof, in addition to any other remedy at law or in equity.

 

14.     Amendment; Waiver.    This Agreement may not be amended except by an instrument in writing signed by the Company, the Investors and the Holder. Each party hereto may waive any right of such party hereunder by an instrument in writing signed by such party and delivered to the other parties hereto; provided that the Company may not waive any rights hereunder without the prior written consent of each Investor.

 

 

 

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15.     Certain Definitions; Interpretation.    

 

(a)     The following capitalized terms, as used in this Agreement, shall have the meanings set forth below:

 

(i)     “Acquisition Transaction” means any contract, proposal, indication of interest or offer from any Person or group of Persons (other than each Investor and its affiliates) relating to any transaction or a series of related transactions, including any merger, amalgamation, reorganization, consolidation, tender offer, self-tender, exchange offer, stock acquisition, asset acquisition, business combination, recapitalization, liquidation, dissolution, joint venture or similar transaction, involving, directly or indirectly, (a) assets or businesses of the Company and/or its subsidiaries, (b) the acquisition of beneficial ownership (as defined under Section 13(d) of the Securities Exchange Act of 1934, as amended) by any Person of more than 10% of any class of capital stock, other equity security or voting power of the Company or any of its subsidiaries, (c) any tender offer or exchange offer that if consummated would result in any Person or group beneficially owning more than 10% of the voting stock of the Company or any of its subsidiaries, or (d) the Notes (unless pursuant to the Tender Offer). 

 

(ii)     “Contract” means any agreement, contract, commitment, undertaking, understanding, license, lease, indenture, instrument, obligation or other agreement, in each case, as from time to time amended, modified, restated or supplemented, and all attachments and exhibits thereto. 

 

(iii)     “Encumbrance” means any security interest, pledge, mortgage, deed of trust, lien (statutory or other), charge, option to purchase, lease, or other right to acquire any interest or any claim, restriction, covenant, title defect, hypothecation, assignment, deposit arrangement, imperfection of title, condition, right of first offer or refusal, third party right or claim, or other encumbrance of any kind or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement). 

 

(iv)     “Investors” means, together, MFP Partners, L.P. and Franklin Mutual Advisers, LLC, as investment manager on behalf of certain funds and accounts. 

 

(v)     “Transfer” means, directly or indirectly, to sell, transfer, lease, exchange, assign, pledge, encumber, tender, hypothecate or similarly dispose of (by merger, by testamentary disposition, by operation of law, by gift or otherwise), or otherwise create any Encumbrance on, either voluntarily or involuntarily, or to enter into any Contract, option or other arrangement or understanding (including any profit sharing arrangement) with respect to the sale, transfer, exchange, assignment, pledge, Encumbrance, hypothecation, tender or similar disposition of (by merger, by testamentary disposition, by operation of law, by gift or otherwise).

 

 

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(vi)     “Person” means any individual, corporation, limited liability company, limited or general partnership, joint venture, association, joint-stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity, or any group comprised of two or more of the foregoing.

 

(vii)     “Securities Purchase Agreement” means that certain Securities Purchase Agreement, by and among the Company and each Investor, dated as of the date hereof. 

 

(b)     The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this Agreement unless otherwise specified. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 

 

[Signature pages follow]

 

 

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Please evidence your agreement to the foregoing by executing and returning a copy of this Agreement.

 

	
 
	
Sincerely,

 

GULFMARK OFFSHORE, INC.

 
	 
	
 
	
By:
	/s/ Quintin V. Kneen 	 
	
 
	
Name:

Title:
	
Quintin V. Kneen
President and Chief Executive Officer	 

 

 

Signature Page to Support Agreement

 

 

 

 

Accepted and Agreed to:

 

RAGING CAPITAL MANAGEMENT, LLC

 

	
By: 
	
/s/ William C Martin
	
 

	
Name:
	William C Martin	
 

	
Title:
	Managing Member	
 

	 	 	 
	Address:	Ten Princeton Avenue
P.O. Box 228
Rocky Hill, New Jersey 08553	 

 

 

$85,179,000 Principal Amount of 6.375% Senior Notes due 2022 

 

5,113,155 shares of Class A Common Stock 

 

 

Signature Page to Support AgreementKIBUSH
CAPITAL CORPORATION

STATEMENT OF DESIGNATION, POWERS,

PREFERENCES AND RIGHTS OF

SERIES B PREFERRED STOCK

 

Pursuant
to NRS 78.1955

 

The
undersigned, Chief Executive Officer and President of Kibush Capital Corporation, a Nevada corporation (the “Corporation”),
DOES HEREBY CERTIFY that the following resolutions were duly adopted by the Board of Directors of the Corporation by unanimous
written consent on November 17, 2016:

 

WHEREAS,
the Board of Directors is authorized within the limitations and restrictions stated in the second amended and restated Articles
of Incorporation of the Corporation, to provide by resolution or resolutions for the issuance of 50,000,000 shares of Preferred
Stock $.001 par value per share, of the Corporation, in such Series B with such rights, preferences, privileges, qualifications,
and restrictions thereof as the Corporation’s Board of Directors shall fix by resolution or resolutions providing for the
issuance thereof duly adopted by the Board of Directors; and

 

WHEREAS,
it is the desire of the Board of Directors, pursuant to its authority as aforesaid, to authorize and fix the terms of a series
of Preferred Stock and the number of shares constituting such series; and

 

NOW,
THEREFORE, BE IT RESOLVED:

 

1.       Designation
and Authorized Shares. The Corporation shall be authorized to issue five million (5,000,000) shares of Series B Preferred
Stock, $.001 par value per share (the “Series B Preferred Stock”).

 

2.       Voting.
Except as otherwise expressly required by law, each holder of Series B Preferred Stock shall be entitled to vote on all matters
submitted to shareholders of the Corporation and shall be entitled to one hundred (100) votes for each share of Series B Preferred
Stock owned at the record date for the determination of shareholders entitled to vote on such matter or, if no such record date
is established, at the date such vote is taken or any written consent of shareholders is solicited. Except as otherwise required
by law, the holders of shares of Series B Preferred Stock shall vote together with the holders of Common Stock on all matters
and shall not vote as a separate class.

 

3.       Liquidation.

 

3.1       Upon
the liquidation, dissolution or winding up of the business of the Corporation, whether voluntary or involuntary, each holder of
Series B Preferred Stock shall be entitled to receive a preferential amount of cash equal to one dollar ($1.00) for each share
thereof, out of assets of the Corporation legally available therefor. All preferential amounts to be paid to the holders of Series
B Preferred Stock in connection with such liquidation, dissolution or winding up shall be paid before the payment or setting apart
for payment of any amount for, or the distribution of any assets of the Corporation to, the holders of the Corporation’s
Common Stock. If any such distribution the assets of the Corporation shall be insufficient to pay the holders of the outstanding
shares of Series B Preferred Stock (or the holders of any class or series of capital stock ranking on a parity with the Series
B Preferred Stock as to distributions in the event of a liquidation, dissolution or winding up of the Corporation) the full amounts
to which they shall be entitled, such holders shall share ratably in any distribution of assets in accordance with the sums which
would be payable on such distribution if all sums payable thereon were paid in full.

 

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3.2Any
distribution in connection with the liquidation, dissolution or winding up of the Corporation, or any bankruptcy or insolvency
proceeding, shall be made in cash to the extent possible. Whenever any such distribution shall be paid in property other than
cash, the value of such distribution shall be the fair market value of such property as determined in good faith by the Board
of Directors of the Corporation. The Corporation shall, upon receipt of such determination of fair market value, give prompt written
notice of the determination to each holder of shares of Series B Preferred Stock.

 

4.       Conversion.

 

4.1       Conversions
at Option of Holder. For a period of ten years beginning on the date of issuance, each share of Series B Preferred Stock shall
be convertible into five (5) shares of Common Stock (the “Conversion Shares”), at the option of the Holder, at any
time from and after the Original Issue Date (as defined below). Holders shall effect conversions by providing the Corporation
with the form of conversion notice attached hereto as Annex A (a “Notice of Conversion”). Each Notice
of Conversion shall specify the number of shares of Series B Preferred Stock to be converted, the number of shares of Series B
Preferred Stock owned prior to the conversion at issue, the number of shares of Series B Preferred Stock owned subsequent to the
conversion at issue and the date on which such conversion is to be effected, which date may not be prior to the date the Holder
delivers such Notice of Conversion to the Corporation by facsimile (the “Conversion Date”). If no Conversion
Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion to the Corporation
is deemed delivered hereunder. The calculations and entries set forth in the Notice of Conversion shall control in the absence
of manifest or mathematical error.

 

4.2       Anti-Dilution
Protection.

 

(a)       Adjustment
for Subdivision or Combination of Common Stock.

 

(i)       If
the Corporation at any time subdivides (by any stock split, stock dividend, re-capitalization or otherwise) one or more classes
of its outstanding shares of Common Stock into a greater number of shares, the number of shares issuable upon conversion of the
Series B Preferred Stock will be proportionately increased.

 

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(ii)       If
the Corporation at any time combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding
shares of Common Stock into a smaller number of shares, the number of shares issuable upon conversion of the Series B Preferred
Stock will be proportionately reduced.

 

(b)       Adjustment
for Reclassification, Exchange, or Substitution. If the Common Stock issuable upon the conversion of the Series B Preferred
Stock shall be changed into the same or a different number of shares of any class or classes of stock, whether by capital reorganization,
reclassification, or otherwise (other than a subdivision or combination of shares or stock dividend provided for above, or a reorganization,
merger, consolidation, or sale of assets provided for elsewhere in this Section 4.2), then and in each such event the holder of
each share of Series B Preferred Stock shall have the right thereafter to convert such share into the kind and amount of shares
of stock and other securities and property receivable upon such reorganization, reclassification, or other change, by holders
of the number of shares of Common Stock into which shares of Series B Preferred Stock might have been converted immediately prior
to such reorganization, reclassification, or change, all subject to further adjustments as provided herein,

 

(c)       Reorganization,
Mergers, Consolidations, or Sales of Assets. If at any time or from time to time there shall be a capital reorganization of
the Common Stock (other than a subdivision or combination of shares or stock dividend provided for above, or a reorganization,
merger, consolidation, or sale of assets provided for elsewhere in this Section 4.2) or a merger or consolidation of the Corporation
with or into another corporation, or the sale of all or substantially all of the Corporations assets to any other person, them
as a part of such reorganization, merger, consolidation, or sale provision shall be made so that the holders of the Series B Preferred
Stock shall thereafter be entitled to receive upon conversion of the Series B Preferred Stock, the number of shares of stock or
other securities or property of the Corporation, or of the successor corporation resulting from such merger or consolidation or
sale, to which a holder of Common Stock deliverable upon conversion would have been entitled on such capital reorganization, merger,
consolidation, or sale. In any such case, appropriate adjustment shall be made in the application of the provisions of this Section
4 with respect to the rights of the holders of the Series B Preferred Stock after reorganization, merger, consolidation, or sale
to the end that the provisions of this Section 4 (including the number of shares issuable upon conversion of the Series B Preferred
Stock) shall be applicable after that event as nearly equivalent as may be practicable.

 

(d)       Notices
of Record Date. In the event of (i) any taking by the Corporation of a record of the holders of any class or series of securities
for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution or (ii) any
reclassification or recapitalization of the capital stock of the Corporation, any merger or consolidation of the Corporation to
any other corporation, entity, or person, or voluntary or involuntary dissolution, liquidation, or winding up of the Corporation,
the Corporation shall mail to each holder Series B Preferred at least 30 days prior to the record date specified therein, a notice
specifying (i) the date on which any such record is to be taken for the purpose of such dividend or distribution and a description
of such dividend or distribution, (ii) the date on which any such reorganization, reclassification, transfer, consolidation, merger,
dissolution, liquidation, or winding up is expected to become effective, and (iii) the time, if any is to be fixed, as to when
the holders of record of Common Stock (or other securities) for securities for securities or other property deliverable upon such
reorganization, reclassification, transfer, consolidation, merger, dissolution, liquidation, or winding up.

 

    	 	3	 

     

    

 

(e)       Fractional
Shares. No fractional shares of Common Stock shall be issued upon conversion of Series B Preferred Stock. In lieu of any fractional
shares to which the holder would otherwise be entitled, the Corporation shall issue a whole share.

 

(f)       Notices.
Any notice required by the provisions of this Section 4 to be given to the holder of shares of the Series B Preferred Stock
shall be deemed given when personally delivered to such holder or five (5) business days after the same has been deposited in
the United Sates mail, certified or registered mail, return receipt requested, postage prepaid, and addressed to each holder of
record at his address appearing on the books of the Corporation.

 

(g)       Payment
of Taxes. The Corporation will pay all taxes and other governmental charges that may be imposed in respect of the issue or
delivery of shares of Common Stock upon conversion of shares of Series B Preferred Stock.

 

(h)       No
Dilution or Impairment. The corporation shall not amend its Articles of Incorporation or participate in any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, for the purpose
of avoiding or seeking to avoid the observance or performance of any of the terms to be observed or performed hereunder by the
Corporation, but will at all times in good faith assist in carrying out all such action as may be reasonably necessary or appropriate
in order to protect the conversion rights of the holders of the Series B Preferred Stock against dilution or other impairment.

 

(i)       Reservation
of Common Stock. The corporation agrees that the number of shares of Common Stock sufficient to provide for the conversion
of the Series B Preferred stock upon the basis herein set forth will at all times that the shares of Series B Preferred Stock
are issued and outstanding be reserved for the conversion thereof.

 

5.       Redemption.
At the option of the Corporation, at any time prior to the tenth (10th) anniversary date of the Original Issue
Date, the Corporation may redeem the Series B Preferred Stock at a purchase price equal to the Stated Value. The Corporation shall
give the holders of the Series B Preferred Stock at least five (5) days prior written notice of its intention to redeem the Series
B Preferred Stock. “Original Issue Date” shall mean the dates of issuance of the Series B Preferred Stock.

 

    	 	4	 

     

    

 

6.       Record
Holders. The Corporation and its transfer agent, if any, for the Series B Preferred Stock may deem and treat the record holder
of any shares of Series B Preferred Stock as reflected on the books and records of the Corporation as the sole true and lawful
owner thereof for all purposes, and neither the Corporation nor any such transfer agent shall be affected by any notice to the
contrary.

 

7.       Restriction
and Limitations. Except as expressly provided herein or as required by law, so long as any shares of Series B Preferred Stock
remain outstanding, the Corporation shall not, without the unanimous vote or written consent of the holders of the then outstanding
shares of the Series B Preferred Stock, take any action which would adversely and materially affect any of the preferences, limitations
or relative rights of the Series B Preferred Stock, including without limitation cancel or modify adversely and materially the
voting rights as provided in Section 2 herein.

 

8.       Stated
Value. The stated value of the Series B Preferred Stock shall be $0.03 per share (the “Stated Value”).

 

IN
WITNESS WHEREOF, the undersigned has executed this Certificate of Designation, Powers, Preferences and Rights of Series B Preferred
Stock this 17th day of November, 2016.

 

	 	KIBUSH
    CAPITAL CORPORATION
	 	 	 
	 	By:	 
	 	 	Warren
    Sheppard
	 	 	President

 

    	 	5	 

     

    

 

ANNEX
A

 

NOTICE
OF CONVERSION

 

(To
be Executed by the Registered Holder in order to convert shares of the Series B Preferred Stock)

 

The
undersigned hereby elects to convert the number of shares of the Series B Preferred Stock indicated below, into shares of common
stock, $.001 par value per share (the “Common Stock”), of Kibush Capital Corporation, a Nevada corporation
(the “Corporation”), according to the conditions hereof, as of the date written below. If shares are to be
issued in the name of a person other than undersigned, the undersigned will pay all transfer taxes payable with respect thereto
and is delivering herewith such certificates and opinions as reasonably requested by the Corporation in accordance therewith.
No fee will be charged to the Holder for any conversion, except for such transfer taxes, if any.

 

Conversion
calculations:

 

Date
to Effect Conversion

 

_________________________________

 

Number
of shares of Preferred Stock owned prior to Conversion

 

_________________________________

 

Number
of shares of Preferred Stock to be Converted

 

_________________________________

 

Stated
Value of shares of Preferred Stock to be Converted

 

_________________________________

 

Number
of shares of Common Stock to be Issued

 

_________________________________

 

Applicable
Set Price

 

_________________________________

 

Number
of shares of Preferred Stock subsequent to Conversion

 

_________________________________

 

	 	[HOLDER]
	 	 	 
	 	By:	        
	 	Name:	 
	 	Title:	 

 

    	 	6

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