Document:

Document

Execution Version

			
	

SECOND AMENDMENT

TO

AMENDED AND RESTATED CREDIT AGREEMENT

DATED AS OF OCTOBER 31, 2022

AMONG

CHORD ENERGY CORPORATION,
AS PARENT,

OASIS PETROLEUM NORTH AMERICA LLC,
AS BORROWER,

THE OTHER CREDIT PARTIES PARTY HERETO,

WELLS FARGO BANK, NATIONAL ASSOCIATION,
AS ADMINISTRATIVE AGENT, ISSUING BANK AND SWINGLINE LENDER

AND

THE LENDERS PARTY HERETO

SECOND AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT
THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Second Amendment”) dated as of October 31, 2022, is among: Chord Energy Corporation, a Delaware corporation (the “Parent”); Oasis Petroleum LLC, a Delaware limited liability company (“OP LLC”), Oasis Petroleum North America LLC, a Delaware limited liability company (the “Borrower”); the other Guarantors listed on the signature pages hereto; each of the Lenders party hereto; and Wells Fargo Bank, National Association, as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”) and as the issuing bank (in such capacity, the “Issuing Bank”).
R E C I T A L S:
A.    The Parent, OP LLC, the Borrower, the Administrative Agent and the Lenders are parties to that certain Amended and Restated Credit Agreement dated as of July 1, 2022 (as amended, amended and restated, restated, supplemented or otherwise modified, the “Credit Agreement”), pursuant to which the Lenders have made certain extensions of credit available to and on behalf of the Borrower.
B.    The Parent, the Borrower, the Administrative Agent, the Issuing Bank and the Lenders party hereto desire to amend certain provisions of the Credit Agreement as set forth herein effective as of the Second Amendment Effective Date (as defined below), subject to the terms and conditions hereof.
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.    Defined Terms.  Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement, as amended by this Second Amendment.  Unless otherwise indicated, all section references in this Second Amendment refer to sections of the Credit Agreement.
Section 2.    Amendments to Credit Agreement.  In reliance on the representations, warranties, covenants and agreements contained in this Second Amendment, and subject to the conditions precedent contained in Section 3 hereof, effective as of the Second Amendment Effective Date, the Credit Agreement shall be amended as follows:
2.1    Amendments to Section 1.02.  
(a)    Each of the following definitions is hereby amended and restated in its entirety to read as follows:
 “Aggregate Elected Commitment Amounts” at any time shall equal the sum of the Elected Commitments, as the same may be increased, reduced or terminated pursuant to Section 2.06(c).  As of the Second Amendment Effective Date, the Aggregate Elected Commitment Amounts are equal to $1,000,000,000.
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“Agreement” means this Amended and Restated Credit Agreement, including any schedules and exhibits hereto, as amended by the First Amendment and Second Amendment, and as the same may from time to time be further amended, restated, amended and restated, supplemented or modified.
(b)    Each of the following definitions is hereby added to Section 1.02 in its appropriate alphabetical order to read as follows:
 “Second Amendment” means that certain Second Amendment to Amended and Restated Credit Agreement, dated as of October 31, 2022 among the Parent, the Borrower, the other Guarantors, the Administrative Agent, the Issuing Bank and the Lenders party thereto.
“Second Amendment Effective Date” has the meaning assigned to such term in the Second Amendment.
2.2    Amendment to Section 2.07(a).  Section 2.07(a) is hereby amended and restated in its entirety to read as follows:
(a)    Second Amendment Borrowing Base.  For the period from and including the Second Amendment Effective Date to but excluding the next Redetermination Date to occur thereafter, the amount of the Borrowing Base shall be an amount equal to $2,750,000,000.  Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments in between Scheduled Redeterminations from time to time pursuant to Section 2.07(e), Section 8.12(c) or Section 9.12(d). The redetermination of the Borrowing Base on the Second Amendment Effective Date pursuant to this Section 2.07(a) shall constitute the October 1, 2022 Scheduled Redetermination.
Section 3.    Assignment and Assumption.  Effective as of the Second Amendment Effective Date, immediately prior to giving effect to the amendments contained in Section 2 above, each Lender has, in consultation with the Borrower, agreed to, and, for an agreed consideration, does hereby reallocate its respective Maximum Credit Amount, Elected Commitment, Commitment and Loans and participations in Letters of Credit, LC Disbursements and Swingline Loans (the “Reallocation”).  On the Second Amendment Effective Date, and after giving effect to the Reallocation, the Elected Commitment and Maximum Credit Amount of each Lender shall be as set forth on Annex I attached to this Second Amendment, which Annex I amends and restates Annex I to the Credit Agreement in its entirety.  Each of the Administrative Agent, each Lender, the Issuing Bank, the Swingline Lender and the Borrower hereby consents and agrees to the Reallocation.  With respect to the Reallocation, each Lender shall be deemed to have sold and assigned its Maximum Credit Amount, Elected Commitment, Commitment, Loans and participations in Letters of Credit, LC Disbursements and Swingline Loans, and each Lender shall be deemed to have acquired the Maximum Credit Amount, Elected Commitment, Commitment, Loans and participations in Letters of Credit, LC Disbursements and Swingline Loans allocated to it from each Lender pursuant to the terms and conditions of the Assignment and Assumption attached as Exhibit F to the Credit Agreement (the “Assignment Agreement”), including Annex 1 to the Assignment Agreement (the “Standard Terms and Conditions”) and the Credit Agreement, as if each Lender had executed such Assignment Agreement with respect to the Reallocation, pursuant to which (i) each Lender shall be an “Assignee”, (ii) each Lender shall be an “Assignor” and (iii) the term “Effective Date” shall be the Second Amendment Effective Date as defined herein.  Such Reallocation shall be without recourse to each Lender and, except as expressly provided in the Assignment Agreement, without representation or warranty by such Lender.  On the Second Amendment Effective Date, (i) the Administrative Agent shall take the 
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actions specified in Section 12.04(b)(iv) of the Credit Agreement, including recording the Reallocation described herein in the Register, and (ii) the Reallocation shall be effective for all purposes of the Credit Agreement.  Notwithstanding Section 12.04(b)(ii)(C) of the Credit Agreement, no Lender shall be required to pay a processing and recordation fee of $3,500 to the Administrative Agent in connection with the Reallocation.  The Standard Terms and Conditions are hereby agreed to and incorporated herein by reference and made a part of the terms of the Reallocation pursuant to this Section 3 as if set forth herein in full.
Section 4.    Conditions Precedent.  This Second Amendment shall become effective as of the date when each of the following conditions is satisfied (or waived in accordance with Section 12.02 of the Credit Agreement) (the “Second Amendment Effective Date”):
4.1    Executed Counterparts of Second Amendment.  The Administrative Agent shall have received from the Borrower, each Guarantor and each Lender (in such number as may be requested by the Administrative Agent) executed counterparts of this Second Amendment signed on behalf of such Person.
4.2    Fees and Expenses.  The Administrative Agent shall have received all fees and other amounts due and payable by the Credit Parties on or prior to the Second Amendment Effective Date, including, to the extent invoiced at least two (2) Business Days prior to the Second Amendment Effective Date, reimbursement or payment of all reasonable out-of-pocket expenses required to be reimbursed or paid by the Borrower pursuant to the Credit Agreement.
4.3    No Default.  No Default, Event of Default or Borrowing Base Deficiency shall have occurred and be continuing as of the Second Amendment Effective Date prior to and after giving effect to the terms of this Second Amendment.
The Administrative Agent is hereby authorized and directed to declare the Second Amendment Effective Date to have occurred when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 4 or the waiver of such conditions as permitted hereby.  Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.
Section 5.    Miscellaneous.
5.1    Confirmation and Effect.  The provisions of the Credit Agreement, as amended by this Second Amendment, shall remain in full force and effect following the effectiveness of this Second Amendment.  Each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or any other word or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference in any other Loan Document to the Credit Agreement or any word or words of similar import shall be and mean a reference to the Credit Agreement as amended hereby.
5.2    No Waiver.  Neither the execution by the Administrative Agent or the Lenders of this Second Amendment, nor any other act or omission by the Administrative Agent or the Lenders or their officers in connection herewith, shall be deemed a waiver by the Administrative Agent or the Lenders of any Defaults or Events of Default which may exist, which may have occurred prior to the date of the effectiveness of this Second Amendment or which may occur in the future under the Credit Agreement and/or the other Loan Documents.  Similarly, nothing contained in this Second Amendment shall directly or indirectly in any way whatsoever either: (a) impair, prejudice or otherwise adversely affect the Administrative Agent’s or the Lenders’ right at any time to exercise any right, privilege or remedy in connection with the Loan Documents with respect to any Default or Event of Default, (b) except to the extent expressly set forth herein, amend or alter any provision of the Credit Agreement, the other Loan 
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Documents, or any other contract or instrument, or (c) constitute any course of dealing or other basis for altering any obligation of the Borrower or any right, privilege or remedy of the Administrative Agent or the Lenders under the Credit Agreement, the other Loan Documents, or any other contract or instrument.
5.3    Ratification and Affirmation; Representations and Warranties.  Each Credit Party hereby: (a) acknowledges the terms of this Second Amendment, (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect as expressly amended hereby and (c) represents and warrants to the Lenders that as of the date hereof, after giving effect to the execution of this Second Amendment: (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (or, if already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct in all respects), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects (or, if already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct in all respects) as of such specified earlier date and (ii) no Default or Event of Default has occurred and is continuing.
5.4    Counterparts.  This Second Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of this Second Amendment by facsimile or other electronic transmission (e.g., “pdf” or “tif”), including via DocuSign or other similar electronic signature technology shall be effective as delivery of a manually executed counterpart hereof.
5.5    No Oral Agreement.  This Second Amendment, the Credit Agreement and the other Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties.  There are no subsequent oral agreements between the parties.
5.6    GOVERNING LAW.  THIS SECOND AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
5.7    Payment of Expenses.  In accordance with Section 12.03 of the Credit Agreement, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket costs and reasonable expenses incurred in connection with this Second Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of Paul Hastings LLP, as counsel to the Administrative Agent.
5.8    Severability.  Any provision of this Second Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
5.9    Successors and Assigns.  This Second Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
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5.10    Loan Document.  This Second Amendment shall constitute a “Loan Document” under and as defined in Section 1.02 of the Credit Agreement.
5.11    No Novation.  The parties hereto agree that this Second Amendment does not in any way constitute a novation of the existing Credit Agreement, but is an amendment of the Credit Agreement.
[Signatures Begin Next Page]
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IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed as of the date first written above.
BORROWER:    OASIS PETROLEUM NORTH AMERICA LLC

By:    _/s/ Michael Lou___________________
Name:    Michael Lou
Title:    Executive Vice President and Chief
Financial Officer

GUARANTORS:    CHORD ENERGY CORPORATION
OASIS PETROLEUM LLC
OASIS PETROLEUM MARKETING LLC
OASIS WELL SERVICES LLC
OMS HOLDINGS LLC
OASIS PETROLEUM PERMIAN LLC
    OASIS INVESTMENT HOLDINGS LLC
    WHITING HOLDINGS LLC
    WHITING OIL AND GAS CORPORATION

By:    _/s/ Michael Lou______________
Name:    Michael Lou
Title:    Executive Vice President and Chief Financial Officer

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

ADMINISTRATIVE AGENT,
SWINGLINE LENDER,
ISSUING BANK AND LENDER:    WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent, Issuing Bank, a Swingline Lender and a Lender

By:    _/s/ Michael Real______________
Name:    Michael Real
Title:    Managing Director

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

LENDERS:    CITIBANK, N.A., as a Lender

By:    _/s/ Cliff Vaz______________
Name:    Cliff Vaz
Title:    Vice President

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

JPMORGAN CHASE BANK, N.A.,
as a Lender

By:    _/s/ Dalton Harris______________
Name:    Dalton Harris
Title:    Authorized Officer

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

ROYAL BANK OF CANADA, as a Lender

By:    _/s/ Emilee Scott______________
Name:    Emilee Scott
Title:    Authorized Signatory

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

CAPITAL ONE, NATIONAL ASSOCIATION,
as a Lender

By:    _/s/ Matthew Brice______________
Name:    Matthew Brice
Title:    Director
Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH,
as a Lender

By:    _/s/ Kevin A. James______________
Name:    Kevin A. James
Title:    Authorized Signatory

By:    _/s/ Donovan C. Broussard________
Name:    Donovan C. Broussard
Title:    Authorized Signatory

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

CITIZENS BANK, N.A., as a Lender

By:    _/s/ Kelly Graham________
Name:    Kelly Graham
Title:    Vice President

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

ZIONS BANCORPORATION, N.A. DBA
AMEGY BANK, as a Lender

By:    _/s/ John Moffitt________
Name:    John Moffitt
Title:    Senior Vice President

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

BOKF, NA DBA BANK OF TEXAS, as a Lender

By:    _/s/ Bradley Kuhn________
Name:    Bradley Kuhn
Title:    Senior Vice President

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

TRUIST BANK, as a Lender

By:    _/s/ James Giordano        
Name:    James Giordano
Title:    Managing Director

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

COMERICA BANK, as a Lender

By:    _/s/ Isabel Araujo        
Name:    Isabel Araujo
Title:    Portfolio Manager

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

REGIONS BANK, as a Lender

By:    _/s/ Katie Hammons            
Name:    Katie Hammons
Title:   Vice President

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

GOLDMAN SACHS BANK USA, as a Lender

By:    _/s/ Andrew B. Vernon        
Name:    Andrew B. Vernon
Title:   Authorized Signatory

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

MIZUHO BANK, LTD., as a Lender

By:    _/s/ John Davies        
Name:    John Davies
Title:   Authorized Signatory

Signature Page to Second Amendment to Amended and Restated Credit Agreement 
(Oasis Petroleum North America LLC)
    

ANNEX I
LIST OF MAXIMUM CREDIT AMOUNTS
AND ELECTED COMMITMENTS
Aggregate Maximum Credit Amounts and
Aggregate Elected Commitment Amounts
												
	Name of Lender	Applicable Percentage	Maximum
Credit Amount	Elected Commitment
	Wells Fargo Bank, National Association	9.500000000%	$285,000,000.00	$95,000,000.00
	Citibank, N.A.	9.500000000%	$285,000,000.00	$95,000,000.00
	Citizens Bank, N.A.	9.500000000%	$285,000,000.00	$95,000,000.00
	JPMorgan Chase Bank, N.A.	9.500000000%	$285,000,000.00	$95,000,000.00
	Mizuho Bank, Ltd.	9.500000000%	$285,000,000.00	$95,000,000.00
	Royal Bank of Canada	9.500000000%	$285,000,000.00	$95,000,000.00
	Truist Bank	9.500000000%	$285,000,000.00	$95,000,000.00
	BOKF, NA dba Bank of Texas	6.250000000%	$187,500,000.00	$62,500,000.00
	Canadian Imperial Bank Of Commerce, New York Branch	6.250000000%	$187,500,000.00	$62,500,000.00
	Regions Bank	6.250000000%	$187,500,000.00	$62,500,000.00
	Capital One, National Association	5.000000000%	$150,000,000.00	$50,000,000.00
	Comerica Bank	3.500000000%	$105,000,000.00	$35,000,000.00
	Goldman Sachs Bank USA	3.500000000%	$105,000,000.00	$35,000,000.00
	Zions Bancorporation, N.A. dba Amegy Bank	2.750000000%	$82,500,000.00	$27,500,000.00
	TOTAL	100.000000000%	$3,000,000,000.00	$1,000,000,000.00Document

EXHIBIT 10.1

Certain identified information has been excluded from this exhibit (indicated by double asterisks) because it is both (i) not material and (ii) the type of information that the registrant treats as private or confidential. 

BINDING TERM SHEET

    
This Binding Term Sheet (the “term sheet”) is dated July 29 2022 (the “Effective Date”), by and among Tipico USA Technology, Inc., a Delaware corporation (“Tipico”), Tipico US Group Corp., a Delaware corporation ((“Tipico US Group”), Gannett Media Corp., a Delaware corporation (“Gannett Media”), and Gannett SB, Inc., a Delaware corporation (“Gannett SB”). Tipico and Gannett Media are each individually referred to herein as an “Agreement Party” and collectively referred to herein as the “Agreement Parties.”  Tipico US Group and Gannett SB are each individually referred to herein as a “Warrant Party” and collectively referred to herein as the “Warrant Parties.” Tipico, Gannett Media and Gannett SB are each individually referred to herein as a “Party” and collectively referred to herein as the “Parties.” 
BACKGROUND
(A)The Agreement Parties entered into a Strategic Alliance Agreement (the “Agreement”) with an Effective Date of July 26, 2021 whereby Tipico would utilize Gannett Media’s various assets and solutions to market and promote the Tipico Gambling Services as set forth therein. In addition, pursuant to the Agreement, Tipico US Group  issued a warrant to Gannett SB with a $0.00 strike price to acquire up to 4,990 shares of common stock, representing a minority interest, of Tipico US Group, a portion of which vested upon signing and the remainder of which vests in four tranches based upon qualified player referrals (the “Tipico Warrant”).
(B)The Agreement Parties have mutually consented to terminate the Agreement and have agreed terms for the full and final settlement of the early termination and wish to record those terms of settlement, on a binding basis, in this term sheet and to set forth the terms of a new agreement between the Parties (the “New Agreement”).  The Warrant Parties have mutually consented to terminate the Tipico Warrant and have agreed terms for the purchase of the Tipico Warrant and wish to record those terms, on a binding basis, in this term sheet.  It is understood that the New Agreement will be solely a media partnership and not include any grant of equity (or rights to equity) to Gannett Media or any of its Affiliates by Tipico US Group or its Affiliates.
(C)The Parties agree that the Agreement is hereby terminated as of the Effective Date, as defined below (the “Termination”).  For the avoidance of doubt, the exclusivity provisions set forth in the Agreement shall be of no further force or effect, it being understood the New Agreement will set forth any applicable exclusivity provisions.
(D)All defined terms in this term sheet shall have the same meaning as under the Agreement unless otherwise defined herein.  All dollar amounts set forth herein are US dollars.
For good and valuable consideration, the Parties hereby agree as follows:
1.EFFECT OF THIS AGREEMENT
The Parties hereby agree that on signature by an authorized representative of both Parties, this term sheet shall immediately be fully and effectively binding on them. The Parties may agree the terms of a long-form agreement and other related documentation customary for transactions of this type that 
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contain (among other things) customary representations, warranties and indemnities. The Parties will use commercially reasonable efforts to negotiate and execute such long-form agreement and other documentation promptly following the date of this binding term sheet. However, until such time as this binding term sheet is replaced by any such further documentation, this binding term sheet remains binding on, and memorializes the legal and enforceable rights and obligations of, the Parties.  The Parties acknowledge that Gannett Media is in receipt of a payment of twenty million dollars ($20,000,000) from Tipico under the Agreement (the “Funds”); such Funds will continue to be held by Gannett Media and used to apply to and offset payments required to be made by Tipico under the New Agreement.
2.NEW AGREEMENT
The Parties agree to the material terms of the New Agreement as set forth in Exhibit A.
3.TIPICO WARRANT PURCHASE
The purchase price for the Tipico Warrant will be [**], payable upon execution of this term sheet by applying the Funds and delivery of the Tipico Warrant by Gannett SB to Tipico US Group (or any of its Affiliates) and allocable as follows:
o[**] with respect to the vested portion of the Tipico Warrant
o[**] with respect to the unvested portion of the Tipico Warrant

Gannett SB represents and warrants to Tipico that: (i) Gannett SB has, and at the time of sale of the Tipico Warrant to Tipico US Group (or any of its Affiliates) will have, good and valid title to the Tipico Warrant, free and clear of all liens, security interests, encumbrances, equities and claims, with no defects of title whatsoever (other than any restrictions set forth in the Tipico Warrant and related agreements and securities law); and (ii) Gannett SB is not a party to or bound by any agreement, or any judgment, decree or ruling of any governmental authority, affecting or relating to Gannett SB’s right to transfer the Tipico Warrant.
 
4.CONSIDERATION UNDER NEW AGREEMENT
The Agreement Parties agree to the consideration terms of the New Agreement as set forth in Exhibit A.
5.RELEASE
Each Party acknowledges that the grant of the consideration, as described in this term sheet, is in part in consideration of full and final settlement of, and each Party hereby releases and forever discharges, all and/or any actions, claims, rights, demands and set-offs, whether in this jurisdiction or any other, whether or not presently known to the Parties or to the law, and whether in law or equity, that it, its Related Parties (as defined below) or any of them ever had, may have or hereafter can, shall or may have against the other Party or any of its Related Parties arising out of or connected with the Agreement and the Tipico Warrant and the termination thereof (together the “Released Claims”).  Notwithstanding anything to the contrary contained herein, the Released Claims shall not include any right or obligation of any Party under or related to this term sheet or the New Agreement.
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6.AGREEMENT NOT TO SUE
6.1Each Party agrees on behalf of itself and on behalf of its Related Parties, not to sue, commence, voluntarily aid in any way, prosecute or cause to be commenced or prosecuted against the other Party or its Related Parties any action, suit or other proceeding concerning the Released Claims, in this jurisdiction or any other.
6.2Clause 6.1 shall not apply to, and the Released Claims shall not include any claims in respect of any breach of or otherwise under this term sheet.
6.3“Related Parties” means, with respect to any Party, all persons and entities controlled by, controlling or under common control with such Party.
7.COSTS
The Parties shall each bear their own legal costs in relation to this term sheet and the New Agreement except as otherwise provided herein or therein.
8.WARRANTIES AND AUTHORITY
8.1Each Party warrants and represents that it has not sold, transferred, assigned or otherwise disposed of its interest in the Released Claims.
8.2Each Party warrants and represents to the other with respect to itself that it has the full right, power and authority to execute, deliver and perform this term sheet and the New Agreement and will perform its obligations in full compliance with applicable law.
9.INDEMNITIES
Each Party hereby indemnifies, and shall keep indemnified, the other Party against all costs and damages (including the entire legal expenses of the Parties) incurred (a) in all future actions, claims and proceedings in respect of any of the Released Claims which it or its Related Parties or any of them may bring against the other Party or its Related Parties or any of them  or (b) related to or arising from third party claims alleging or resulting from an alleged breach of this term sheet (including but not limited to the matters contemplated by clause (a)) or the New Agreement by the indemnifying party. 
10.NO ADMISSION
This term sheet is entered into, in part, in connection with the compromise of the Agreement and in the light of other considerations. It is not and shall not be represented or construed by the Parties as, an admission of liability or wrongdoing on the part of any Party to this term sheet or any other person or entity.
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11.CONFIDENTIALITY
11.1The terms of this term sheet, and the substance of all negotiations in connection with it, are confidential to the Parties and their advisers, who shall not disclose them to, or otherwise communicate them to, any third party without the written consent of the other Party other than:
(a)To the Parties' respective auditors, insurers and lawyers on terms which preserve confidentiality.
(b)Pursuant to an order of a court of competent jurisdiction, or pursuant to any proper order or demand made by any competent authority or body where they are under a legal or regulatory obligation to make such a disclosure. 
(c)As far as necessary to implement and enforce any of the terms of this term sheet; and
(d)To issue an agreed statement or press release in terms to be agreed by the Parties 
12.MISCELLANEOUS
The provisions of Sections 14 and 15 (other than Section 15.4) of the Agreement are incorporated herein by reference.
WITHOUT LIMITING EITHER PARTY’S INDEMNIFICATION OBLIGATIONS SET FORTH IN SECTION 9, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR DELAYS, INDIRECT, SPECIAL, INCIDENTAL, RELIANCE, OR CONSEQUENTIAL DAMAGES OF ANY KIND (INCLUDING LOST PROFITS), INTERRUPTIONS, SERVICE FAILURES, AND OTHER PROBLEMS INHERENT IN USE OF THE INTERNET AND ELECTRONIC COMMUNICATIONS OR OTHER SYSTEMS OUTSIDE OF THE PARTY’S REASONABLE CONTROL REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE, EVEN IF INFORMED OF THE POSSIBILITY OF SUCH DAMAGES IN ADVANCE, EXCEPT IN THE CASE OF FRAUD, WILLFUL MISCONDUCT, OR BREACH OF SECTIONS 3, 5, 6, 9 OR 11.  The Parties agree that the limitations specified in this Section 12 will survive and apply even if any limited remedy specified in this term sheet is found to have failed of its essential purpose.

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	This term sheet has been entered into on the date stated first above written.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

						
	TIPICO USA TECHNOLOGY, INC.

By:    /s/ Adrian Vella    
Name:    Adrian Vella
Title:    President
	GANNETT MEDIA CORP.

By: /s/ Michael E. Reed                       
Name:    Michael E. Reed
Title:    CEO

		

GANNETT SB, INC.

By: /s/ Michael E. Reed                   
Name:    Michael E. Reed
 Title:        CEO

			
	TIPICO US GROUP CORP. 

By:    /s/ Adrian Vella    
Name:    Adrian Vella
Title:    President

	

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EXHIBIT A

•Term of Strategic Media Partnership: Four (4) years starting 1 August 2022

•Termination Of Existing Deal - Existing Strategic Alliance Agreement to be mutually terminated to coincide with the execution of this term sheet
 
•Minimum Annual Commitment –as outlined in Exhibit 1 (“Minimum Annual Commitment”) which results in a Total Commitment under the New Agreement (including Service Fees) of [**].

•Quarterly Media Spend Allocation - To be determined for each annual period of the Strategic Media Partnership to meet the agreed upon Minimum Annual Commitment as illustrated in the example provided in Exhibit 1. 
oQuarterly periods to coincide with calendar year quarters (i.e., Q3 July – September)
oQuarterly media plans for the third (3rd) and fourth (4th) quarters of 2022 to be submitted by August 1st, 2022
oThe media below has been committed to prior to execution of this agreement and will thus maintain pricing as shown below [**]
oFuture Quarterly media plans to be agreed upon ninety (90) days prior to quarter
oQuarterly media spend allocation to be at least fifteen percent (15%) of Minimum Annual Commitment for a given quarter (“Minimum Quarterly Commitment”)
oIf actual spend in a quarter is above the agreed quarterly allocation, the excess will apply to Minimum Quarterly Commitment in next quarter for the annual period; any excess over Minimum Quarterly Commitment or Minimum Annual Commitment will not roll over to subsequent annual periods
oOnly spend on Owned and Operated media and, to the extent expressly set forth herein, will be applied against the Minimum Quarterly Commitment and Minimum Annual Commitment.  No other spend will be credited or applied against such minimums.

•Owned and Operated Media Discount & Services – As detailed in Exhibit 5, Owned and Operated media to be provided at a twenty-five percent (25%) discount to Rate Card
oRate Card means the rates that are generally made available to advertisers at any time at the same or similar level of advertising dollars spent as Tipico’s Minimum Annual Commitment for that annual period
oDiscount to adjust upward based upon increased annual spend as outlined in Exhibit 4. 
oAny third-party media coordinated by Gannett (i.e., Dark Social) subject to additional fifteen percent (15%) account services fee
Account services fees will be applied toward Minimum Quarterly Commitment and Minimum Annual Commitment
oGannett to provide access to creative production services at fair market rates 
Production must follow GET Creative schedule in Exhibit 3 and can be utilized for Gannett on-platform, Gannett-managed third-party media, paid social and Tipico owned and operated channels 
GET Creative will provide layered PSD file templates for all creative assets, which Tipico may edit and use as they see fit
Creative production costs will be applied toward Minimum Quarterly Commitment and Minimum Annual Commitment up to ten percent (10%) of Minimum Annual Commitment. 
oBranded content that runs on O&O platforms will be reduced by twenty percent (20%) from Rate Card 
Branded content cost will be applied toward Minimum Quarterly Commitment and Minimum Annual Commitment
oProgrammatic 
Non-guaranteed preferred deal/fixed rate (PD) – Tipico receives additional ten percent (10%) discount off standard IAB units at rate card on top of standard 25% discount, or then applicable discount per Exhibit 4. Cannot facilitate high-impact and take-overs through non-guaranteed programmatic channels.
Non-guaranteed private auctions/floor (PA) – Tipico receives additional twenty percent (20%) discount off standard IAB units at rate card on top of standard 25% discount, or then 
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applicable discount per Exhibit 4. Cannot facilitate high-impact and take-overs through non-guaranteed programmatic channels.
oGannett to provide Tipico access to marketing, research, and creative team services at fair market rate
Associated fees to be credited against the Minimum Quarterly Commitment and Minimum Annual Commitment up to ten percent (10%) of the Minimum Annual Commitment  
oTen percent (10%) of actual media spend but no more than $350,000 to be paid as services fee for account management, planning and staffing
Paid quarterly net-thirty (30) days corresponding to actual quarterly media spend; 10% of Annual Minimum Commitment must be met during annual period
Continued Gannett support on par with Minimum Annual Commitment

•Exclusivity
oTipico to retain exclusive category rights in Colorado, Indiana, Iowa, New Jersey, and Ohio during the term based on satisfying the Minimum Annual Commitment outlined in Exhibit 1
oTipico will have “Exclusive Sports Betting and iGaming Partner” designation in the states in which it owns exclusive category rights
oTipico may use “Official Betting Partner” designation for any nationally focused advertising

•Future Exclusivity 
oFuture Regulated State Exclusivity - Tipico receives right of first offer (ROFO) for exclusivity in NEW states legalizing online betting and/or iGaming (i.e. states which have not legalized online betting or iGaming as of the date of this term sheet)
•Tipico to notify Gannett in writing no later than ninety (90) days post legalization (the date the sports betting and or iGaming bill was passed) of its intent to secure exclusivity based on the current State Media Value (Exhibit 2) as determined for the annual period in which the state legalizes. 
•New state exclusivity to be added through an amendment to the New Agreement with corresponding State Media Value added to the applicable Minimum Annual Commitment for such annual period prorated based on Tipico launch date in such New State based upon a mutually agreed upon start date for media spend
oLive Sports Betting States Exclusivity – States in which sports betting or iGaming have been legalized on the date of this term sheet may be added to exclusivity list with six (6) months’ advance written request by Tipico 
•To be based on the current State Media Value (Exhibit 2) as determined for the annual period for the launch of the Tipico sportsbook or online Casino in the state
•Live sports betting states that are added to exclusive list shall be done so through an amendment to the New Agreement with corresponding State Media Value added to the applicable Minimum Annual Commitment for such annual period prorated based on a mutually agreed upon start date for media spend 
•National Media Elements - Gannett shall provide Tipico offers/odds in the following national media elements free of charge during the term. Tipico odds/offers will be provided on an exclusive basis in Tipico exclusive states and a non-exclusive base in all other states. Tipico will pay Gannett a CPA of [**] for each Qualified Player (QP) generated through these assets as long as Tipico agrees to participate in these channels [**].   
oSponsored Editorial
oBest Bets Widget
oOdds & Scores Hub
oAffiliate Links

•Teams will make their best effort to continue collaboration on existing and future integrations (i.e., single sign-on capabilities)

•Tipico to have ROFO to participate in Gannett owned events 
oEvent opportunities and associated cost to be presented to Tipico no less than eight (8) months in advance of go-live, with binding agreement to participate required no later than seven (7) months in advance
oEvent cost will be reduced by twenty percent (20%) off fair market value and count towards the Minimum Quarterly Commitment and Minimum Annual Commitment, up to twenty percent (20%) of the Minimum Annual Commitment

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•Syndication
oSubject to the exclusivity rights of Tipico under the New Agreement and any gaming laws, Gannett permitted to syndicate sports betting content to third-party platforms

•New Agreement to include customary default, termination, warranty, representation, and indemnification provisions.   

Cash Consideration:
Payments due under the New Agreement (including the purchase price for the Tipico Warrant) will first come from the Funds (see estimates in table below). Once the Funds have been exhausted Tipico will be responsible for making all additional payments due on a timely basis. [**]

Exhibit 1 – Minimum Annual Commitment [**]

Quarterly Minimum Spend Example [**]

Exhibit 2 – 2022 State Media Value 

State Media Value to be adjusted annually by January 31st based on the current market value of sports audience as determined by unique users, rate card and market demand. Future increases not to exceed three percent (3%) annual growth, on a cumulative basis, in the State Media Value. [**]

Exhibit 3
GET CREATIVE production schedule

						
	Timeline
	Creative Product	Timing
	Concepting	2 weeks
	Digital Ads	3 - 4 weeks
	Social Ads	3 weeks
	Print Ads	3 - 4 weeks
	Email	4 weeks
	Audio	12 – 14 weeks
	Video	12 – 14 weeks
	Written Content	4 – 5 weeks
	One-sheet & Brochure	4 – 5 weeks
	Branded content article	6 weeks
	Branded content interactive	9 – 10 weeks
	Branded content video	12 – 14 weeks

Exhibit 4 [**]

Exhibit 5
Owned & operated (O&O) media eligible for the discount to include:
•Standard IAB units, including high-impact and take-overs, direct and programmatic guaranteed (PG) advertising
•sponsorship of video franchises (i.e. Lorenzo’s Locks) or features (i.e. Expert Picks)
•podcasts
•Standard print advertising placements, excluding stickers, inserts and cover wraps

Upon agreement by both parties, other media may be added during the term. 

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