Document:

Exhibit 4.1

	
 
    	
 
    

 

PLAINS ALL AMERICAN PIPELINE, L.P.

PAA FINANCE CORP.
 as Issuers
 $750,000,000

 

4.500% SENIOR NOTES DUE 2026

 

THIRTIETH

 

SUPPLEMENTAL

 

INDENTURE

 

Dated as of November 22, 2016

 

U.S. BANK NATIONAL ASSOCIATION
 as Trustee

 

 

	
 
    	
 
    

 

 

TABLE OF CONTENTS

 

	
ARTICLE I
    	
 
    	
1
    
	
Section 1.01
    	
Establishment
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II   DEFINITIONS AND INCORPORATION BY REFERENCE
    	
2
    
	
Section 2.01
    	
Definitions
    	
2
    
	
Section 2.02
    	
Other Definitions
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE III   THE NOTES
    	
7
    
	
Section 3.01
    	
Form
    	
7
    
	
Section 3.02
    	
Issuance of Additional   Notes
    	
7
    
	
Section 3.03
    	
Global Security Legend
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   REDEMPTION AND PREPAYMENT
    	
8
    
	
Section 4.01
    	
Optional Redemption
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE V   COVENANTS
    	
8
    
	
Section 5.01.
    	
Compliance Certificate
    	
8
    
	
Section 5.02.
    	
Limitations on Liens
    	
8
    
	
Section 5.03.
    	
Restriction of   Sale-leaseback Transactions
    	
10
    
	
Section 5.04.
    	
SEC Reports; Financial   Statements
    	
11
    
	
Section 5.05.
    	
Subsidiary Guarantees
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE VI   SUCCESSORS
    	
11
    
	
Section 6.01.
    	
Consolidation and   Mergers of the Issuers
    	
11
    
	
Section 6.02.
    	
Rights and Duties of   Successor
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE VII   DEFAULTS AND REMEDIES
    	
12
    
	
Section 7.01.
    	
Events of Default
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII   LEGAL DEFEASANCE AND COVENANT DEFEASANCE
    	
14
    
	
Section 8.01.
    	
Option to Effect Legal   Defeasance or Covenant Defeasance
    	
14
    
	
Section 8.02.
    	
Legal Defeasance and   Discharge
    	
14
    
	
Section 8.03.
    	
Covenant Defeasance
    	
15
    
	
Section 8.04.
    	
Conditions to Legal or   Covenant Defeasance
    	
15
    
	
Section 8.05.
    	
Deposited Money and   U.S. Government Obligations to be Held in Trust; Other Miscellaneous   Provisions
    	
17
    
	
Section 8.06.
    	
Repayment to Issuers
    	
17
    
	
Section 8.07.
    	
Reinstatement
    	
17
    
	
 
    	
 
    	
 
    
	
ARTICLE IX   SUBSIDIARY GUARANTEES
    	
18
    
	
Section 9.01.
    	
Subsidiary Guarantees
    	
18
    
	
Section 9.02.
    	
Limitation on Liability
    	
20
    
	
Section 9.03.
    	
Successors and Assigns
    	
20
    
	
Section 9.04.
    	
No Waiver
    	
20
    

 

i

 

	
Section 9.05.
    	
Modification
    	
20
    
	
Section 9.06.
    	
Execution of   Supplemental Indenture for Future Subsidiary Guarantors
    	
20
    
	
Section 9.07.
    	
Release of Guarantee
    	
21
    
	
 
    	
 
    	
 
    
	
ARTICLE X   MISCELLANEOUS
    	
21
    
	
Section 10.01.
    	
Additional Amendments
    	
21
    
	
Section 10.02.
    	
Integral Part
    	
21
    
	
Section 10.03.
    	
Adoption, Ratification   and Confirmation
    	
21
    
	
Section 10.04.
    	
Counterparts
    	
21
    
	
Section 10.05.
    	
Governing Law
    	
22
    

 

	
EXHIBIT A:
    	
Form of Note
    	
 
    
	
EXHIBIT B:
    	
Form of   Supplemental Indenture
    	
 
    

 

ii

 

THIRTIETH SUPPLEMENTAL INDENTURE dated as of November 22, 2016 (this “Supplemental Indenture”) among PLAINS ALL AMERICAN PIPELINE, L.P., a Delaware limited partnership (the “Partnership”), PAA FINANCE CORP., a wholly owned subsidiary of the Partnership and a Delaware corporation (“PAA Finance” and, together with the Partnership, the “Issuers”), and U.S. BANK NATIONAL ASSOCIATION, as trustee (the “Trustee”).

 

W I T N E S S E T H:

 

WHEREAS, the Issuers have heretofore entered into an Indenture, dated as of September 25, 2002 (the “Original Indenture”), with U.S. Bank National Association (successor to Wachovia Bank, National Association), as trustee;

 

WHEREAS, the Original Indenture, as supplemented by this Supplemental Indenture, is herein called the “Indenture”;

 

WHEREAS, under the Original Indenture, a new series of Debt Securities may at any time be established by the Boards of Directors of the Managing General Partner and PAA Finance in accordance with the provisions of the Original Indenture and the form and terms of such series may be established by a supplemental indenture executed by the Issuers and the Trustee;

 

WHEREAS, the Issuers propose to create under the Indenture a new series of Debt Securities;

 

WHEREAS, additional Debt Securities of other series hereafter established, except as may be limited in the Original Indenture as at the time supplemented and modified, may be issued from time to time pursuant to the Original Indenture as at the time supplemented and modified; and

 

WHEREAS, all conditions necessary to authorize the execution and delivery of this Supplemental Indenture and to make it a valid and binding obligation of the Issuers have been done or performed.

 

NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE I

 

Section 1.01          Establishment.   There is hereby established a new series of Debt Securities to be issued under the Indenture, to be designated as the Issuers’ 4.500% Senior Notes due 2026 (the “Notes”).  Initially, there will be no Subsidiary Guarantors for the Notes.

 

(a)           There are to be authenticated and delivered $750,000,000 principal amount of Notes on the Issue Date, and from time to time thereafter there may be authenticated and delivered an unlimited principal amount of Additional Notes.

 

 

(b)           The Notes shall be issued initially in the form of one or more Global Securities in substantially the form set out in Exhibit A hereto.  The Depositary with respect to the Notes shall be The Depository Trust Company.

 

(c)           Each Note shall be dated the date of authentication thereof and shall bear interest from the date of original issuance thereof or from the most recent date to which interest has been paid or duly provided for.

 

(d)           If and to the extent that the provisions of the Original Indenture are duplicative of, or in contradiction with, the provisions of this Supplemental Indenture, the provisions of this Supplemental Indenture shall govern.

 

ARTICLE II
 DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 2.01          Definitions.  All capitalized terms used herein and not otherwise defined below shall have the meanings ascribed thereto in the Original Indenture.  The following are additional definitions used in this Supplemental Indenture:

 

“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control,” as used with respect to any Person, shall mean the possession directly or indirectly of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise; and the terms “controlling,” “controlled by” and “under common control with” shall have correlative meanings.

 

“Attributable Indebtedness,” when used with respect to any Sale-leaseback Transaction, means, as at the time of determination, the present value (discounted at the rate set forth or implicit in the terms of the lease included in such transaction) of the total obligations of the lessee for rental payments (other than amounts required to be paid on account of property taxes, maintenance, repairs, insurance, assessments, utilities, operating and labor costs and other items that do not constitute payments for property rights) during the remaining term of the lease included in such Sale-leaseback Transaction (including any period for which such lease has been extended).  In the case of any lease that is terminable by the lessee upon the payment of a penalty or other termination payment, such amount shall be the lesser of the amount determined assuming termination upon the first date such lease may be terminated (in which case the amount shall also include the amount of the penalty or termination payment, but no rent shall be considered as required to be paid under such lease subsequent to the first date upon which it may be so terminated) or the amount determined assuming no such termination.

 

“Capital Interests” means any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, including, without limitation, with respect to partnerships, partnership interests (whether general or limited) and any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, such Person.

 

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“Consolidated Net Tangible Assets” means, at any date of determination, the total amount of assets after deducting therefrom: (1) all current liabilities (excluding (a) any current liabilities that by their terms are extendible or renewable at the option of the obligor thereon to a time more than 12 months after the time as of which the amount thereof is being computed; and (b) current maturities of long-term debt); and (2) the amount, net of any applicable reserves, of all goodwill, trade names, trademarks, patents and other like intangible assets, all as set forth on the consolidated balance sheet of the Partnership for its most recently completed fiscal quarter, prepared in accordance with GAAP.

 

“Debt” means any obligation created or assumed by any Person for the repayment of money borrowed, any purchase money obligation created or assumed by such Person, and any guarantee of the foregoing.

 

“Funded Debt” means all Debt maturing one year or more from the date of the creation thereof, all Debt directly or indirectly renewable or extendible, at the option of the debtor, by its terms or by the terms of any instrument or agreement relating thereto, to a date one year or more from the date of the creation thereof, and all Debt under a revolving credit or similar agreement obligating the lender or lenders to extend credit over a period of one year or more.

 

“Guarantee” means a guarantee of the Notes given by a Subsidiary Guarantor pursuant to the Indenture, including any future obligations under Article IX hereof.

 

“General Partner” means PAA GP LLC, a Delaware limited liability company, and its successors and permitted assigns as general partner of the Partnership.

 

“Issue Date” means, with respect to the Notes, the date on which the Notes are initially issued.

 

“Managing General Partner” means (i) Plains All American GP LLC, a Delaware limited liability company (and its successors and permitted assigns), as the general partner of Plains AAP, L.P., a Delaware limited partnership (and its successors and permitted assigns), as the sole member of the General Partner or (ii) the business entity with the ultimate authority to manage the business and operations of the Partnership.

 

“Notes” has the meaning assigned to it in Section 1.01(a) hereof, and includes both the Notes issued on the Issue Date and any Additional Notes issued thereafter.

 

“Obligations” means any principal, interest, liquidated damages, penalties, fees, indemnifications, reimbursement obligations, damages and other liabilities payable under the documentation governing any Debt.

 

“Pari Passu Debt” means any Funded Debt of either of the Issuers, whether outstanding on the Issue Date or thereafter created, incurred or assumed, unless, in the case of any particular Funded Debt, the instrument creating or evidencing the same or pursuant to which the same is outstanding expressly provides that such Funded Debt shall be subordinated in right of payment to the Notes.

 

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“Partnership Agreement” means the Sixth Amended and Restated Agreement of Limited Partnership of Plains All American Pipeline, L.P., dated as of November 15, 2016, as such may be otherwise amended, modified or supplemented from time to time.

 

“Permitted Liens” means:

 

(1)           Liens upon rights-of-way for pipeline purposes;

 

(2)           any statutory or governmental Lien or Lien arising by operation of law, or any mechanics’, repairmen’s, materialmen’s, suppliers’, carriers’, landlords’, warehousemen’s or similar Lien incurred in the ordinary course of business which is not yet due or which is being contested in good faith by appropriate proceedings and any undetermined Lien which is incidental to construction, development, improvement or repair;

 

(3)           the right reserved to, or vested in, any municipality or public authority by the terms of any right, power, franchise, grant, license, permit or by any provision of law, to purchase or recapture or to designate a purchaser of, any property;

 

(4)           Liens of taxes and assessments which are (A) for the then current year, (B) not at the time delinquent, or (C) delinquent but the validity of which is being contested at the time by an Issuer or any Restricted Subsidiary in good faith;

 

(5)           Liens of, or to secure performance of, leases, other than capital leases;

 

(6)           any Lien upon, or deposits of, any assets in favor of any surety company or clerk of court for the purpose of obtaining indemnity or stay of judicial proceedings;

 

(7)           any Lien upon property or assets acquired or sold by an Issuer or any Restricted Subsidiary resulting from the exercise of any rights arising out of defaults on receivables;

 

(8)           any Lien incurred in the ordinary course of business in connection with worker’s compensation, unemployment insurance, temporary disability, social security, retiree health or similar laws or regulations or to secure obligations imposed by statute or governmental regulations;

 

(9)           any Lien in favor of an Issuer or any Restricted Subsidiary;

 

(10)         any Lien in favor of the United States of America or any state thereof, or any department, agency or instrumentality or political subdivision of the United States of America or any state thereof, to secure partial, progress, advance, or other payments pursuant to any contract or statute, or any Debt incurred by an Issuer or any Restricted Subsidiary for the purpose of financing all or any part of the purchase price of, or the cost of constructing, developing, repairing or improving, the property or assets subject to such Lien;

 

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(11)         any Lien securing industrial development, pollution control or similar revenue bonds;

 

(12)         any Lien securing Debt of an Issuer or any Restricted Subsidiary, all or a portion of the net proceeds of which are used, substantially concurrently with the funding thereof (and for purposes of determining such “substantial concurrence,” taking into consideration, among other things, required notices to be given to Holders of Outstanding Debt Securities (including the Notes) in connection with such refunding, refinancing or repurchase, and the required corresponding durations thereof), to refinance, refund or repurchase all Outstanding Debt Securities (including the Notes), including the amount of all accrued interest thereon and reasonable fees and expenses and premium, if any, incurred by the Issuers or any Restricted Subsidiary in connection therewith;

 

(13)         Liens in favor of any Person to secure obligations under the provisions of any letters of credit, bank guarantees, bonds or surety obligations required or requested by any governmental authority in connection with any contract or statute;

 

(14)         any Lien upon or deposits of any assets to secure performance of bids, trade contracts, leases or statutory obligations;

 

(15)         any Lien or privilege vested in any grantor, lessor or licensor or permittor for rent or other charges due or for any other obligations or acts to be performed, the payment of which rent or other charges or performance of which other obligations or acts is required under leases, easements, rights-of-way, licenses, franchises, privileges, grants or permits, so long as payment of such rent or the performance of such other obligations or acts is not delinquent or the requirement for such payment or performance is being contested in good faith by appropriate proceedings;

 

(16)         easements, exceptions or reservations in any property of the Partnership or any of the Restricted Subsidiaries granted or reserved for the purpose of pipelines, roads, the removal of oil, gas, coal or other minerals, and other like purposes for the joint or common use of real property, facilities and equipment, which are incidental to, and do not materially interfere with, the ordinary conduct of its business or the business of the Partnership and its Subsidiaries, taken as a whole;

 

(17)         Liens arising under operating agreements, joint venture agreements, partnership agreements, oil and gas leases, farmout agreements, division orders, contracts for sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements and other agreements arising in the ordinary course of the Partnership’s or any Restricted Subsidiary’s business that are customary in the business of marketing, transportation and terminalling of crude oil and/or marketing of liquefied petroleum gas; or

 

(18)         any obligations or duties to any municipality or public authority with respect to any lease, easement, right-of-way, license, franchise, privilege, permit or grant.

 

5

 

“Principal Property” means, whether owned or leased on the Issue Date or thereafter acquired: (1) any of the pipeline assets of the Partnership or the pipeline assets of any Subsidiary of the Partnership, including any related facilities employed in the transportation, distribution, terminalling, gathering, treating, processing, marketing or storage of crude oil or refined petroleum products, natural gas, natural gas liquids, fuel additives or petrochemicals, and (2) any processing or manufacturing plant or terminal owned or leased by the Partnership or any Subsidiary of the Partnership; except, in the case of either clause (1) or (2), (a) any such assets consisting of inventories, furniture, office fixtures and equipment, including data processing equipment, vehicles and equipment used on, or useful with, vehicles, and (b) any such assets, plant or terminal which, in the good faith opinion of the Board of Directors, is not material in relation to the activities of the Partnership or the activities of the Partnership and its Subsidiaries, taken as a whole.

 

“Restricted Subsidiary” means any Subsidiary of the Partnership owning or leasing, directly or indirectly through ownership in another Subsidiary, any Principal Property.

 

“Sale-leaseback Transaction” means the sale or transfer by an Issuer or any Subsidiary of the Partnership of any Principal Property to a Person (other than an Issuer or a Subsidiary of the Partnership) and the taking back by an Issuer or any Subsidiary of the Partnership, as the case may be, of a lease of such Principal Property.

 

“Subsidiary” means, with respect to any Person: (1) any other Person of which more than 50% of the total voting power of shares or other Capital Interests entitled, without regard to the occurrence of any contingency, to vote in the election of directors, managers or trustees (or equivalent persons) thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination thereof; or (2) in the case of a partnership, more than 50% of the partners’ Capital Interests, considering all partners’ Capital Interests as a single class, is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination thereof.

 

“Subsidiary Guarantors” means each of:

 

(1)           any Subsidiary that executes a supplemental Indenture to provide a Guarantee in accordance with the provisions of the Indenture; and

 

(2)           their respective successors and assigns.

 

Section 2.02          Other Definitions.

 

	
 
    	
 
    	
Defined in
    
	
Term
    	
 
    	
Section
    
	
 
    	
 
    	
 
    
	
“Additional Notes”
    	
 
    	
3.02
    
	
“Covenant Defeasance”
    	
 
    	
8.03
    

 

6

 

	
“Event of Default”
    	
 
    	
7.01
    
	
“Legal Defeasance”
    	
 
    	
8.02
    
	
“Note Obligations”
    	
 
    	
9.01
    
	
“Payment Default”
    	
 
    	
7.01
    
	
“Required Filing Dates”
    	
 
    	
5.04
    
	
“Successor Company”
    	
 
    	
6.01
    

 

ARTICLE III
 THE NOTES

 

Section 3.01          Form.  The Notes shall be issued initially in the form of one or more Global Securities.  The Notes and Trustee’s certificate of authentication shall be substantially in the form of Exhibit A hereto, the terms of which are incorporated in and made a part of this Supplemental Indenture, and the Issuers and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.

 

Section 3.02          Issuance of Additional Notes.  The Issuers may, from time to time, issue an unlimited amount of additional Notes (“Additional Notes”) under the Indenture, which shall be issued in the same form as the Notes issued on the Issue Date and which shall have identical terms as the Notes issued on the Issue Date other than with respect to the issue date, the date of first payment of interest, if applicable, and the payment of interest accruing prior to the issue date.  The Notes issued on the Issue Date shall be limited in aggregate principal amount to $750,000,000.  The Notes issued on the Issue Date and any Additional Notes subsequently issued shall be treated as a single series for all purposes under the Indenture, including waivers, amendments, redemptions and offers to purchase.

 

Section 3.03          Global Security Legend.  Each of the Global Securities shall bear a legend in substantially the following form:

 

THIS GLOBAL SECURITY IS HELD BY OR ON BEHALF OF THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (A) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.08 OF THE ORIGINAL INDENTURE, (B) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.15 OF THE ORIGINAL INDENTURE, (C) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.10 OF THE ORIGINAL INDENTURE AND (D) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY OR ITS NOMINEE WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.

 

7

 

ARTICLE IV
 REDEMPTION AND PREPAYMENT

 

Section 4.01          Optional Redemption.

 

(a)           At their option at any time prior to maturity, the Issuers may choose to redeem all or any portion of the Notes, at once or from time to time.

 

(b)           To redeem the Notes, the Issuers must pay a redemption price in an amount determined in accordance with the provisions of paragraph number 5 of the form of Note in Exhibit A hereto, plus accrued and unpaid interest, if any, to the redemption date (subject to the right of Holders on the relevant record date to receive interest due on the relevant interest payment date).

 

(c)           Any redemption pursuant to this Section 4.01 shall otherwise be made pursuant to the provisions of Sections 3.01 through 3.03 of the Original Indenture.  The actual redemption price shall be set forth in an Officers’ Certificate delivered to the Trustee no later than two Business Days prior to each redemption date.

 

ARTICLE V
 COVENANTS

 

Section 5.01.         Compliance Certificate.

 

(a)           In lieu of the Officers’ Certificate required by Section 4.05 of the Original Indenture, the Issuers and Subsidiary Guarantors shall deliver to the Trustee, within 90 days after the end of each fiscal year, an Officers’ Certificate stating that a review of the activities of the Partnership and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers (one of whom shall be the principal executive, financial or accounting officer of each Issuer and Subsidiary Guarantor) with a view to determining whether the Issuers have kept, observed, performed and fulfilled their obligations under the Indenture, and further stating, as to each such person signing such certificate, that to the best of his or her knowledge the Issuers have kept, observed, performed and fulfilled each and every covenant contained in the Indenture and are not in default in the performance or observance of any of the terms, provisions and conditions of the Indenture (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Issuers are taking or propose to take with respect thereto).

 

(b)           The Issuers shall, so long as any of the Notes are outstanding, deliver to the Trustee, forthwith and in any event within five days upon any officer of an Issuer becoming aware of any Default or Event of Default or an event which, with notice or the lapse of time or both, would constitute an Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Issuers are taking or propose to take with respect thereto.

 

Section 5.02.         Limitations on Liens.  The Issuers will not, nor will they permit any Subsidiary of the Partnership to, create, assume, incur or suffer to exist any Lien upon any Principal Property or upon any Capital Interests of any Restricted Subsidiary, whether owned or

 

8

 

leased on the Issue Date or thereafter acquired, to secure any Debt of an Issuer or any other Person (other than Debt Securities), without in any such case making effective provision whereby all of the Notes shall be secured equally and ratably with, or prior to, such Debt so long as such Debt shall be so secured. This restriction shall not apply to:

 

(a)           Permitted Liens;

 

(b)           any Lien upon any property or assets created at the time of acquisition of such property or assets by an Issuer or any Restricted Subsidiary or within one year after such time to secure all or a portion of the purchase price for such property or assets or Debt incurred to finance such purchase price, whether such Debt was incurred prior to, at the time of or within one year after the date of such acquisition;

 

(c)           any Lien upon any property or assets to secure all or part of the cost of construction, development, repair or improvements thereon or to secure Debt incurred prior to, at the time of, or within one year after completion of such construction, development, repair or improvements or the commencement of full operations thereof (whichever is later), to provide funds for any such purpose;

 

(d)           any Lien upon any property or assets existing thereon at the time of the acquisition thereof by an Issuer or any Restricted Subsidiary (whether or not the obligations secured thereby are assumed by an Issuer or any Restricted Subsidiary); provided, however, that such Lien only encumbers the property or assets so acquired;

 

(e)           any Lien upon any property or assets of a Person existing thereon at the time such Person becomes a Restricted Subsidiary by acquisition, merger or otherwise; provided, however, that such Lien only encumbers the property or assets of such Person at the time such Person becomes a Restricted Subsidiary;

 

(f)            any Lien upon any property or assets of an Issuer or any Restricted Subsidiary in existence on December 10, 2003 or provided for pursuant to agreements existing on December 10, 2003;

 

(g)           Liens imposed by law or order as a result of any proceeding before any court or regulatory body that is being contested in good faith, and Liens which secure a judgment or other court-ordered award or settlement as to which an Issuer or the applicable Restricted Subsidiary, as the case may be, has not exhausted its appellate rights;

 

(h)           any extension, renewal, refinancing, refunding or replacement (or successive extensions, renewals, refinancings, refundings or replacements) of Liens, in whole or in part, referred to in clauses (a) through (g), inclusive, of this Section 5.02; provided, however, that any such extension, renewal, refinancing, refunding or replacement Lien shall be limited to the property or assets covered by the Lien extended, renewed, refinanced, refunded or replaced and that the obligations secured by any such extension, renewal, refinancing, refunding or replacement Lien shall be in an amount not greater than the amount of the obligations secured by the Lien extended, renewed, refinanced, refunded or replaced and any expenses of the Issuers and

 

9

 

the Restricted Subsidiaries (including any premium) incurred in connection with such extension, renewal, refinancing, refunding or replacement; or

 

(i)            any Lien resulting from the deposit of moneys or evidence of indebtedness in trust for the purpose of defeasing Debt of an Issuer or any Restricted Subsidiary.

 

Notwithstanding the foregoing provisions of this Section 5.02, the Issuers may, and may permit any Restricted Subsidiary to, create, assume, incur or suffer to exist any Lien upon any Principal Property or Capital Interests of a Restricted Subsidiary to secure Debt of an Issuer or any Person (other than Debt Securities) that is not excepted by clauses (a) through (i), inclusive, of this Section 5.02 without securing the Notes, provided that the aggregate principal amount of all Debt then outstanding secured by such Lien and all other Liens not excepted by clauses (a) through (i), inclusive, of this Section 5.02, together with all Attributable Indebtedness from Sale-leaseback Transactions (excluding Sale-leaseback Transactions permitted by clauses (a) through (d), inclusive, of Section 5.03), does not exceed 10% of Consolidated Net Tangible Assets.

 

Section 5.03.         Restriction of Sale-leaseback Transactions.  The Issuers will not, and will not permit any Subsidiary of the Partnership to, engage in a Sale-leaseback Transaction, unless:

 

(a)           such Sale-leaseback Transaction occurs within one year from the date of completion of the acquisition of the Principal Property subject thereto or the date of the completion of construction, development or substantial repair or improvement, or commencement of full operations on such Principal Property, whichever is later;

 

(b)           the Sale-leaseback Transaction involves a lease for a period, including renewals, of not more than three years;

 

(c)           the Attributable Indebtedness from that Sale-leaseback Transaction is an amount equal to or less than the amount the Issuers or such Subsidiary would be allowed to incur as Debt secured by a Lien on the Principal Property subject thereto without equally and ratably securing the Notes under Section 5.02; or

 

(d)           the Issuers or such Subsidiary, within a one-year period after such Sale-leaseback Transaction, applies or causes to be applied an amount not less than the net sale proceeds from such Sale-leaseback Transaction to (A) the prepayment, repayment, redemption, reduction or retirement of any Pari Passu Debt of an Issuer or any Subsidiary of the Partnership, or (B) the expenditure or expenditures for Principal Property used or to be used in the ordinary course of business of the Partnership or its Subsidiaries.

 

Notwithstanding the foregoing provisions of this Section 5.03, the Issuers may, and may permit any Subsidiary of the Partnership to, effect any Sale-leaseback Transaction that is not excepted by clauses (a) through (d), inclusive, of this Section 5.03, provided that the Attributable Indebtedness from such Sale-leaseback Transaction, together with the aggregate principal amount of then outstanding Debt (other than Debt Securities) secured by Liens upon

 

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Principal Properties not excepted by clauses (a) through (i), inclusive, of Section 5.02, does not exceed 10% of Consolidated Net Tangible Assets.

 

Section 5.04.         SEC Reports; Financial Statements.

 

(a)           Whether or not the Partnership is then subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Partnership shall electronically file with the Commission, so long as the Notes are Outstanding, the annual, quarterly and other periodic reports that the Partnership is required to file (or would otherwise be required to file) with the Commission pursuant to Sections 13 and 15(d) of the Exchange Act, and such documents shall be filed with the Commission on or prior to the respective dates (the “Required Filing Dates”) by which the Partnership is required to file (or would otherwise be required to file) such documents, unless, in each case, such filings are not then permitted by the Commission.

 

(b)           If such filings are not then permitted by the Commission, or such filings are not generally available on the Internet free of charge, the Issuers shall provide the Trustee with, and the Trustee will mail to any Holder of Notes requesting in writing to the Trustee copies of, such annual, quarterly and other periodic reports specified in Sections 13 and 15(d) of the Exchange Act within 15 days after the respective Required Filing Dates.

 

(c)           [Intentionally omitted.]

 

(d)           The Partnership shall provide the Trustee with a sufficient number of copies of all reports and other documents and information that the Trustee may be required to deliver to Holders of Notes under clause (b) of this Section 5.04.

 

(e)           Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Partnership’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).

 

Section 5.05.         Subsidiary Guarantees.  If any Subsidiary (or its successor) of the Partnership that is not then a Subsidiary Guarantor guarantees Debt of either of the Issuers, in either case after the Issue Date, then the Partnership shall cause such Subsidiary (or successor) to execute and deliver a supplemental Indenture providing for the guarantee of the payment of the Notes pursuant to Article IX hereof.

 

ARTICLE VI
 SUCCESSORS

 

With respect to the Notes, the provisions of this Article VI shall preempt the provisions of Article X of the Original Indenture in their entirety.

 

Section 6.01.         Consolidation and Mergers of the Issuers.  Neither Issuer shall consolidate or amalgamate with or merge with or into any Person, or sell, convey, transfer, lease or otherwise dispose of all or substantially all its assets to any Person, whether in a single

 

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transaction or a series of related transactions, except (1) in accordance with the provisions of the Partnership Agreement, and (2) unless: (a) either (i) such Issuer shall be the surviving Person in the case of a merger or (ii) the resulting, surviving or transferee Person if other than such Issuer (the “Successor Company”) shall be a partnership, limited liability company or corporation organized and existing under the laws of the United States, any state thereof or the District of Columbia (provided that PAA Finance may not merge, amalgamate or consolidate with or into another Person other than a corporation satisfying such requirement for so long as the Partnership is not a corporation) and the Successor Company shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, the due and punctual payment of the principal of, premium, if any, and interest on all of the Notes, and the due and punctual performance or observance of all the other obligations under the Indenture to be performed or observed by such Issuer; (b) immediately after giving effect to such transaction or series of transactions, no Default or Event of Default would occur or be continuing; (c) if such Issuer is not the continuing Person, then each Subsidiary Guarantor, unless it has become the Successor Company, shall confirm that its Guarantee shall continue to apply to the obligations under the Notes and the Indenture; and (d) such Issuer shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, amalgamation, merger, sale, conveyance, transfer, lease or other disposition and such supplemental Indenture (if any) comply with this Section 6.01 and any other applicable provisions of the Indenture.

 

Section 6.02.         Rights and Duties of Successor.  In case of any consolidation, amalgamation or merger where an Issuer is not the continuing Person, or disposition of all or substantially all of the assets of an Issuer in accordance with Section 6.01, the Successor Company shall succeed to and be substituted for such Issuer with the same effect as if it had been named herein as the respective party to the Indenture, and the predecessor entity shall be released from all liabilities and obligations under the Indenture and the Notes, except that no such release will occur in the case of a lease of all or substantially all of an Issuer’s assets.  In case of any such consolidation, amalgamation, merger, sale, conveyance, transfer, lease or other disposition, such changes in phraseology and form (but not in substance) may be made in the Notes thereafter to be issued as may be appropriate.

 

ARTICLE VII
 DEFAULTS AND REMEDIES

 

Section 7.01.         Events of Default.  With respect to the Notes, the provisions of this Section 7.01 shall preempt the provisions of the first and final paragraphs of Section 6.01 of the Original Indenture in their entirety.

 

(a)           An “Event of Default” occurs if:

 

(i)            the Issuers default for 60 days in the payment when due of interest on the Notes;

 

(ii)           the Issuers default in the payment when due of principal of or premium, if any, on the Notes at maturity, upon redemption or otherwise;

 

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(iii)          failure by an Issuer or any Subsidiary Guarantor for 90 days after receipt of notice by the Issuers from the Trustee or to the Issuers and the Trustee by the Holders of at least 25% in principal amount of the Notes then Outstanding to comply with any other term, covenant or warranty in the Indenture or the Notes (provided that notice need not be given, and an Event of Default shall occur, 90 days after any breach of the provisions of Section 6.01 hereof);

 

(iv)          default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Debt of an Issuer or any of the Partnership’s Subsidiaries (or the payment of which is guaranteed by the Partnership or any of its Subsidiaries), whether such Debt or guarantee now exists or is created after the Issue Date, if that default (A) is caused by a failure to pay principal of or premium, if any, or interest on such Debt prior to the expiration of the grace period provided in such Debt (a “Payment Default”) or (B) results in the acceleration of the maturity of such Debt to a date prior to its originally stated maturity, and, in each case described in clause (A) or (B), the principal amount of any such Debt, together with the principal amount of any other such Debt under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $25.0 million or more; provided, further, that if any such default is cured or waived or any such acceleration rescinded, or such Debt is repaid, within a period of 30 days from the continuation of such default beyond the applicable grace period or the occurrence of such acceleration, as the case may be, such Event of Default and any consequential acceleration of the Notes shall be automatically rescinded, so long as such rescission does not conflict with any judgment or decree;

 

(v)           except as permitted by the Indenture, any Guarantee shall cease for any reason to be in full force and effect (except as otherwise provided in the Indenture) or is declared null and void in a judicial proceeding or any Subsidiary Guarantor, or any Person acting on behalf of any Subsidiary Guarantor, shall deny or disaffirm its obligations under the Indenture or its Guarantee;

 

(vi)          an Issuer or any Subsidiary Guarantor pursuant to or within the meaning of any Bankruptcy Law:

 

(A)          commences a voluntary case,

 

(B)          consents to the entry of an order for relief against it in an involuntary case,

 

(C)          consents to the appointment of a custodian of it or for all or substantially all of its property,

 

(D)          makes a general assignment for the benefit of its creditors, or

 

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(E)           generally is not paying its debts as they become due; or

 

(vii)         a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(A)          is for relief against an Issuer or any Subsidiary Guarantor in an involuntary case;

 

(B)          appoints a custodian of an Issuer or any Subsidiary Guarantor or for all or substantially all of the property of an Issuer or any Subsidiary Guarantor; or

 

(C)          orders the liquidation of an Issuer or any Subsidiary Guarantor;

 

and the order or decree remains unstayed and in effect for 60 consecutive days.

 

(b)           In the case of an Event of Default arising from Section 7.01(a)(vi) or 7.01(a)(vii) hereof involving an Issuer (and, for the avoidance of doubt, excluding any such Event of Default that involves only one or more Subsidiary Guarantors), the principal amount of all Outstanding Notes and interest thereon shall become due and payable immediately without further action or notice. If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then Outstanding Notes may declare the principal amount of all the Notes and interest thereon to be due and payable immediately by a notice in writing to the Issuers (and to the Trustee if given by the Holders) and upon any such declaration such principal amount and interest thereon shall be due and payable immediately.

 

ARTICLE VIII
 LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 8.01.         Option to Effect Legal Defeasance or Covenant Defeasance.  The Issuers may, at the option of the Boards of Directors evidenced by a Board Resolution set forth in an Officers’ Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be applied to all outstanding Notes and Guarantees upon compliance with the conditions set forth below in this Article VIII.

 

Section 8.02.         Legal Defeasance and Discharge.  Upon the Issuers’ exercise under Section 8.01 hereof of the option applicable to this Section 8.02, each of the Issuers and the Subsidiary Guarantors shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have been discharged from its obligations with respect to all outstanding Notes and Guarantees on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that each of the Issuers shall be deemed to have paid and discharged the entire Debt represented by the outstanding Notes, which shall thereafter be deemed to be “Outstanding” only for the purposes of Section 8.05 hereof and the other Sections of the Indenture referred to in (a) and (b) below, and to have satisfied all its other obligations under such Notes and the Indenture, and each of the Subsidiary Guarantors shall be deemed to have discharged its obligations under its Guarantee (and the Trustee, on

 

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demand of and at the expense of the Issuers, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder:

 

(a)           the rights of Holders of Outstanding Notes to receive solely from the trust fund described in Section 8.04 hereof, and as more fully set forth in such Section, payments in respect of the principal of, premium on, if any, and interest on such Notes when such payments are due,

 

(b)           the Issuers’ obligations with respect to such Notes under Sections 2.07, 2.08, 2.09 and 4.02 of the Original Indenture,

 

(c)           the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Issuers’ obligations in connection therewith,

 

(d)           this Article VIII, and

 

(e)           the Issuers’ rights of optional redemption under Section 4.01 hereof.

 

Subject to compliance with this Article VIII, the Issuers may exercise their option under this Section 8.02 notwithstanding the prior exercise of their option under Section 8.03 hereof.

 

Section 8.03.         Covenant Defeasance.  Upon the Issuers’ exercise under Section 8.01 hereof of the option applicable to this Section 8.03, each of the Issuers shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from its obligations under the covenants contained in Sections 5.02, 5.03, 5.04 and 5.05 hereof with respect to the Outstanding Notes on and after the date the conditions set forth in Section 8.04 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not “Outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “Outstanding” for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes).  For this purpose, Covenant Defeasance means that, with respect to the Outstanding Notes, the Issuers may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 7.01 hereof, but, except as specified above, the remainder of the Indenture, the Guarantees and such Notes shall be unaffected thereby.

 

Section 8.04.         Conditions to Legal or Covenant Defeasance.  The following shall be the conditions to the application of either Section 8.02 or 8.03 hereof to the Outstanding Notes:

 

In order to exercise either Legal Defeasance or Covenant Defeasance:

 

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(a)           the Issuers must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders of the Notes, cash in Dollars, U.S. Government Obligations, or a combination thereof, in such amounts as shall be sufficient, in the written opinion of a nationally recognized firm of independent public accountants, to pay the principal of, premium on, if any, and interest on the Outstanding Notes at the Stated Maturity thereof or on the applicable redemption date, as the case may be, and the Issuers must specify whether the Notes are being defeased to maturity or to a particular redemption date;

 

(b)           in the case of an election under Section 8.02 hereof, the Issuers shall have delivered to the Trustee an Opinion of Counsel confirming that (i) the Issuers have received from, or there has been published by, the Internal Revenue Service a ruling or (ii) since the date of the Indenture, there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Outstanding Notes shall not recognize income, gain or loss for federal income tax purposes as a result of such Legal Defeasance and shall be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

 

(c)           in the case of an election under Section 8.03 hereof, the Issuers shall have delivered to the Trustee an Opinion of Counsel confirming that the Holders of the Outstanding Notes shall not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and shall be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;

 

(d)           no Default or Event of Default shall have occurred and be continuing either (i) on the date of such deposit (other than a Default or Event of Default resulting from the incurrence of Debt all or a portion of the proceeds of which shall be applied to such deposit) or (ii) insofar as Section 7.01(a)(vi) or 7.01(a)(vii) hereof is concerned, at any time in the period ending on the 91st day after the date of deposit;

 

(e)           such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, any agreement or instrument (other than the Notes and the Indenture) to which the Partnership or any of its Subsidiaries is a party or by which the Partnership or any of its Subsidiaries is bound;

 

(f)            the Issuers shall have delivered to the Trustee an Opinion of Counsel to the effect that after the 91st day following the deposit, the trust funds shall not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally;

 

(g)           the Issuers shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Issuers with the intent of preferring the Holders over any other creditors of the Issuers or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Issuers; and

 

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(h)           the Issuers shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for or relating to the Legal Defeasance or the Covenant Defeasance have been complied with.

 

Section 8.05.         Deposited Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions.  Subject to Section 8.06 hereof, all money and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and the Indenture, to the payment, either directly or through any paying agent (including an Issuer acting as paying agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required by law.

 

The Issuers shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or U.S. Government Obligations deposited pursuant to Section 8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the Outstanding Notes.

 

Anything in this Article VIII to the contrary notwithstanding, the Trustee shall deliver or pay to the Issuers from time to time upon the written request of the Issuers any money or U.S. Government Obligations held by it as provided in Section 8.04 hereof which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(a) hereof), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

Section 8.06.         Repayment to Issuers.  Any money deposited with the Trustee or any paying agent, or then held by the Issuers, in trust for the payment of the principal of, premium on, if any, or interest on any Note and remaining unclaimed for two years after such principal, premium, if any, or interest has become due and payable shall be paid to the Issuers on their written request or (if then held by the Issuers) shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured creditor, look only to the Issuers for payment thereof, and all liability of the Trustee or such paying agent with respect to such trust money, and all liability of the Issuers as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such paying agent, before being required to make any such repayment, may at the expense of the Issuers cause to be published once, in The New York Times and The Wall Street Journal (U.S. edition), notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining shall be repaid to the Issuers.

 

Section 8.07.         Reinstatement.  If the Trustee or paying agent is unable to apply any Dollars or U.S. Government Obligations in accordance with Section 8.02 or 8.03 hereof, as

 

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the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Issuers’ obligations under the Indenture and the Notes and the Subsidiary Guarantors’ obligations under the Guarantees shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or paying agent is permitted to apply all such money in accordance with Section 8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Issuers make any payment of principal of, premium on, if any, or interest on any Note following the reinstatement of their obligations, the Issuers shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee or paying agent.

 

ARTICLE IX
 SUBSIDIARY GUARANTEES

 

Section 9.01.         Subsidiary Guarantees.  (a)  Each Subsidiary Guarantor hereby jointly and severally unconditionally and irrevocably guarantees on a senior basis to each Holder and to the Trustee and its successors and assigns (i) the full and punctual payment of principal, premium, if any, and interest with respect to, the Notes when due, whether at maturity, by acceleration, by redemption or otherwise, and all other monetary obligations of the Issuers under the Indenture (including obligations to the Trustee) and the Notes and (ii) the full and punctual performance within applicable grace periods of all other obligations of the Issuers under the Indenture and the Notes (all the foregoing being hereinafter collectively called the “Note Obligations”).  Each Subsidiary Guarantor further agrees that the Note Obligations may be extended or renewed, in whole or in part, without notice or further assent from each such Subsidiary Guarantor, and that each such Subsidiary Guarantor shall remain bound under this Article IX notwithstanding any extension or renewal of any Note Obligation.

 

(b)           Each Subsidiary Guarantor waives presentation to, demand of, payment from and protest to the Issuers of any of the Note Obligations and also waives notice of protest for nonpayment.  Each Subsidiary Guarantor waives notice of any Default or Event of Default under the Notes or the Note Obligations.  The obligations of each Subsidiary Guarantor hereunder shall not be affected by (i) the failure of any Holder or the Trustee to assert any claim or demand or to enforce any right or remedy against the Issuers or any other Person under the Indenture, the Notes or any other agreement or otherwise; (ii) any extension or renewal of any thereof; (iii) any rescission, waiver, amendment or modification of any of the terms or provisions of the Indenture, the Notes or any other agreement; (iv) the release of any security held by any Holder or the Trustee for the Note Obligations or any of them; (v) the failure of any Holder or Trustee to exercise any right or remedy against any other guarantor of the Note Obligations; or (vi) any change in the ownership of such Subsidiary Guarantor, except as provided in Section 9.02 hereof.

 

(c)           Each Subsidiary Guarantor further agrees that its Guarantee herein constitutes a guarantee of payment, performance and compliance when due (and not a guarantee of collection) and waives any right to require that any resort be had by any Holder or the Trustee to any security held for payment of the Note Obligations.

 

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(d)           The obligations of each Subsidiary Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason other than indefeasible payment in full of the Note Obligations, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever or by reason of the invalidity, illegality or unenforceability of the Note Obligations or otherwise.  Without limiting the generality of the foregoing, the obligations of each Subsidiary Guarantor herein shall not be discharged or impaired or otherwise affected by the failure of any Holder or the Trustee to assert any claim or demand or to enforce any remedy under the Indenture, the Notes or any other agreement, by any waiver or modification of any thereof, by any default, failure or delay, willful or otherwise, in the performance of the obligations, or by any other act or thing or omission or delay to do any other act or thing which may or might in any manner or to any extent vary the risk of any Subsidiary Guarantor or would otherwise operate as a discharge of any Subsidiary Guarantor as a matter of law or equity.

 

(e)           Each Subsidiary Guarantor further agrees that its Guarantee herein shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of principal, premium, if any, or interest with respect to any Note Obligation is rescinded or must otherwise be restored by any Holder or the Trustee upon the bankruptcy or reorganization of either of the Issuers or otherwise.

 

(f)            In furtherance of the foregoing and not in limitation of any other right which any Holder or the Trustee has at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the failure of the Issuers to pay the principal, premium, if any, or interest with respect to any Note Obligation when and as the same shall become due, whether at maturity, by acceleration, by redemption or otherwise, or to perform or comply with any other Note Obligation, each Subsidiary Guarantor hereby promises to and shall forthwith pay, or cause to be paid, in cash, to the Holders or the Trustee an amount equal to the sum of (i) the unpaid principal amount of such Note Obligations, (ii) accrued and unpaid interest on such Note Obligations (but only to the extent not prohibited by law) and (iii) all other monetary Note Obligations of the Issuers to the Holders and the Trustee.

 

(g)           Each Subsidiary Guarantor agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any Note Obligations guaranteed hereby until payment in full of all Note Obligations.  Each Subsidiary Guarantor further agrees that, as between it, on the one hand, and the Holders and the Trustee, on the other hand, (i) the maturity of the Note Obligations guaranteed hereby may be accelerated as provided in Article VII hereof for the purposes of any Subsidiary Guarantor’s Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Note Obligations guaranteed hereby, and (ii) in the event of any declaration of acceleration of such obligations as provided in Article VII hereof, such Note Obligations (whether or not due and payable) shall forthwith become due and payable by such Subsidiary Guarantor for the purposes of this Section 9.01.

 

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(h)           Each Subsidiary Guarantor also agrees to pay any and all costs and expenses (including reasonable attorneys’ fees) incurred by the Trustee or any Holder in enforcing any rights under this Section 9.01.

 

Section 9.02.         Limitation on Liability.  Any term or provision of the Indenture to the contrary notwithstanding, the maximum, aggregate amount of the Note Obligations guaranteed hereunder by any Subsidiary Guarantor shall not exceed the maximum amount that, after giving effect to all other contingent and fixed liabilities of such Subsidiary Guarantor and to any collections from or payments made by or on behalf of any other Subsidiary Guarantor in respect of its obligations under its Guarantee, can be hereby guaranteed without rendering the Indenture, as it relates to any Subsidiary Guarantor, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer.

 

Section 9.03.         Successors and Assigns.  This Article IX shall be binding upon each Subsidiary Guarantor and, except as provided in Section 9.07, its successors and assigns and shall inure to the benefit of the successors and assigns of the Trustee and the Holders and, in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges conferred upon that party in the Indenture and in the Notes shall automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions of the Indenture.

 

Section 9.04.         No Waiver.  Neither a failure nor a delay on the part of either the Trustee or the Holders in exercising any right, power or privilege under this Article IX shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise of any right, power or privilege.  The rights, remedies and benefits of the Trustee and the Holders herein expressly specified are cumulative and not exclusive of any other rights, remedies or benefits which either may have under this Article IX at law, in equity, by statute or otherwise.

 

Section 9.05.         Modification.  No modification, amendment or waiver of any provision of this Article IX, nor the consent to any departure by any Subsidiary Guarantor therefrom, shall in any event be effective unless the same shall be in writing and signed by the Trustee, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  No notice to or demand on any Subsidiary Guarantor in any case shall entitle such Subsidiary Guarantor to any other or further notice or demand in the same, similar or other circumstances.

 

Section 9.06.         Execution of Supplemental Indenture for Future Subsidiary Guarantors.  Each Subsidiary which is required to become a Subsidiary Guarantor pursuant to Section 5.05 hereof shall promptly execute and deliver to the Trustee a supplemental Indenture in substantially the form of Exhibit B hereto pursuant to which such Subsidiary shall become a Subsidiary Guarantor under this Article IX and shall guarantee the Note Obligations.  Concurrently with the execution and delivery of such supplemental Indenture, the Issuers shall deliver to the Trustee an Opinion of Counsel to the effect that such supplemental Indenture has been duly authorized, executed and delivered by such Subsidiary and that, subject to the application of bankruptcy, insolvency, moratorium, fraudulent conveyance or transfer and other

 

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similar laws relating to creditors’ rights generally and to the principles of equity, whether considered in a proceeding at law or in equity, the Guarantee of such Subsidiary Guarantor is a legal, valid and binding obligation of such Subsidiary Guarantor, enforceable against such Subsidiary Guarantor in accordance with its terms.

 

Section 9.07.         Release of Guarantee.  Provided that no Default shall have occurred and shall be continuing under the Indenture, the Guarantee of a Subsidiary Guarantor under this Article IX shall terminate and be of no further force and effect, and such Subsidiary Guarantor shall be released from the Indenture and all Note Obligations, upon the following events:

 

(a)           upon any sale or other disposition of all or substantially all of the assets of such Subsidiary Guarantor (including by way of merger, consolidation or otherwise) to any Person that is not an Affiliate of either of the Issuers (provided such sale or other disposition is not prohibited by the Indenture);

 

(b)           upon any sale or other disposition of all of the Equity Interests of a Subsidiary Guarantor, to any Person that is not an Affiliate of either of the Issuers; or

 

(c)           following the release or discharge of all guarantees by such Subsidiary Guarantor of any Debt of the Issuers (other than any Debt Securities), upon delivery by the Issuers to the Trustee of a written notice of such release or discharge from the guarantees.

 

ARTICLE X
 MISCELLANEOUS

 

Section 10.01.      Additional Amendments.  With respect to the Notes, references to (A) “Section 6.01” in the Original Indenture shall be deemed to be references to “Section 7.01” of this Supplemental Indenture; (B) “Section 11.02” in the Original Indenture shall be deemed to be references to “Section 8.06” of this Supplemental Indenture; (C) “Section 6.01(g) or (h)” in the Original Indenture shall be deemed to be references to “Section 7.01(a)(vi) or (a)(vii)” of this Supplemental Indenture; and (D) “Article X” in the Original Indenture shall be deemed to be references to “Article VI” of this Supplemental Indenture.

 

Section 10.02.      Integral Part.  This Supplemental Indenture constitutes an integral part of the Indenture.

 

Section 10.03.      Adoption, Ratification and Confirmation.  The Original Indenture, as supplemented and amended by this Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed.

 

Section 10.04.      Counterparts.  This Supplemental Indenture may be executed in any number of counterparts, each of which when so executed shall be deemed an original; and all such counterparts shall together constitute but one and the same instrument.

 

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Section 10.05.      Governing Law.  THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

Section 10.06.      Recitals; Trustee Makes No Representation; Trustee’s Rights and Duties.  The recitals contained herein shall be taken as the statements of the Issuers, and the Trustee assumes no responsibility for the correctness of the same.  The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture and shall not be liable in connection therewith. The rights and duties of the Trustee shall be determined by the express provisions of the Original Indenture, and nothing in this Supplemental Indenture shall in any way modify or otherwise affect the Trustee’s rights and duties thereunder.

 

[Signatures on following pages]

 

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SIGNATURES

 

	
 
    	
ISSUERS:
    
	
 
    	
 
    
	
 
    	
PLAINS ALL AMERICAN PIPELINE,   L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
PAA GP LLC
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
PLAINS AAP, L.P.
    
	
 
    	
 
    	
its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
PLAINS ALL AMERICAN GP   LLC
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Sharon Spurlin
    
	
 
    	
 
    	
Name:
    	
Sharon Spurlin
    
	
 
    	
 
    	
Title:
    	
Vice President and   Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PAA FINANCE CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Sharon Spurlin
    
	
 
    	
 
    	
Name:
    	
Sharon Spurlin
    
	
 
    	
 
    	
Title:
    	
Vice President and   Treasurer
    

 

Signature Page to Thirtieth Supplemental Indenture

 

 

	
 
    	
TRUSTEE:
    
	
 
    	
 
    
	
 
    	
U.S. BANK NATIONAL   ASSOCIATION,
    
	
 
    	
as Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Shazia Flores
    
	
 
    	
 
    	
Name:  Shazia Flores
    
	
 
    	
 
    	
Title:    Vice President
    

 

Signature Page to Thirtieth Supplemental Indenture

 

 

EXHIBIT A

 

(Form of Face of Note)

 

	
CUSIP 72650R BL5
    	
No.       
    
	
ISIN US72650RBL50
    	
$                          
    

 

PLAINS ALL AMERICAN PIPELINE, L.P.
 PAA FINANCE CORP.

 

4.500% Senior Notes due 2026

 

Plains All American Pipeline, L.P., a Delaware limited partnership, and PAA Finance Corp., a Delaware corporation, jointly and severally promise to pay to           , or registered assigns, the principal sum of                 Dollars [or such greater or lesser amount as may be endorsed on the Schedule attached hereto](1) on December 15, 2026.

 

Interest Payment Dates:  June 15 and December 15

Record Dates:  June 1 and December 1

 

 

	
 
    	
PLAINS ALL AMERICAN   PIPELINE, L.P.
    
	
 
    	
By:
    	
PAA GP LLC, its General   Partner
    
	
 
    	
By:
    	
Plains AAP, L.P., its   Sole Member
    
	
 
    	
By:
    	
Plains All American GP   LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
PAA FINANCE CORP.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
						

 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

 

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

 

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

 

(1)  To be included only if the Note is issued in global form.

 

A-1

 

(Form of Back of Note)

 

4.500% Senior Notes due 2026

 

[THIS GLOBAL SECURITY IS HELD BY OR ON BEHALF OF THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (A) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.08 OF THE ORIGINAL INDENTURE, (B) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.15 OF THE ORIGINAL INDENTURE, (C) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.10 OF THE ORIGINAL INDENTURE AND (D) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY OR ITS NOMINEE WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.](2)

 

Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

 

1.     Interest.  Plains All American Pipeline, L.P., a Delaware limited partnership (the “Partnership”), and PAA Finance Corp., a Delaware corporation (“PAA Finance” and, together with the Partnership, the “Issuers”), jointly and severally promise to pay interest on the principal amount of this Note at 4.500% per annum from November 22, 2016 until maturity.  The Issuers shall pay interest semi-annually on June 15 and December 15 of each such year, or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”). Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance. The first Interest Payment Date shall be June 15, 2017.  The Issuers shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a rate that is 1% per annum in excess of the rate then in effect; and they shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful.  Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

 

2.     Method of Payment.  The Issuers shall pay interest on the Notes (except defaulted interest) to the Persons who are registered Holders of Notes at the close of business on the June 1 or December 1 next preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.17 of the Original Indenture with respect to defaulted interest, and the Issuers shall pay principal (and premium, if any) of the Notes upon surrender thereof to the Trustee or a paying agent on or after the Stated Maturity thereof.  The Notes shall be payable as to principal, 

 

(2)  To be included only if the Note is issued in global form.

 

A-2

 

premium, if any, and interest at the office or agency of the Trustee maintained for such purpose within or without The City and State of New York, or, at the option of the Issuers, payment of interest may be made by check mailed to the Holders at their addresses set forth in the register of Holders, and provided that payment by wire transfer of immediately available funds shall be required with respect to principal of and interest and premium, if any,  on, each Global Security and all other Notes the Holders of which shall have provided wire transfer instructions to the Issuers or the paying agent on or prior to the applicable record date.  Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

3.     Paying Agent and Registrar.  Initially, U.S. Bank National Association, the Trustee under the Indenture, shall act as paying agent and Registrar.  The Issuers may change any paying agent or Registrar without notice to any Holder.  The Issuers or any of their Subsidiaries may act in any such capacity.

 

4.     Indenture.  The Issuers issued the Notes under an Indenture dated as of September 25, 2002 (the “Original Indenture”), as supplemented by the Thirtieth Supplemental Indenture dated as of November 22, 2016 (the “Supplemental Indenture” and, together with the Original Indenture, the “Indenture”) among the Issuers and the Trustee.  The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb).  The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms.  To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.  The Notes are joint and several obligations of the Issuers initially in aggregate principal amount of $750 million.  The Issuers may issue an unlimited aggregate principal amount of Additional Notes under the Indenture.  Any such Additional Notes that are actually issued shall be treated as issued and outstanding Notes (and as the same series (with identical terms other than with respect to the issue date, the date of first payment of interest, if applicable, and the payment of interest accruing prior to the issue date) as the initial Notes) for all purposes of the Indenture, including waivers, amendments, redemptions and offers to purchase.  To secure the due and punctual payment of the principal and interest on the Notes and all other amounts payable by the Issuers under the Indenture and the Notes when and as the same shall be due and payable, whether at maturity, by acceleration or otherwise, according to the terms of the Notes and the Indenture, the Subsidiary Guarantors have unconditionally guaranteed the Note Obligations under the Indenture and the Notes on a senior basis pursuant to the terms of the Indenture.

 

5.     Optional Redemption.

 

(a)           At their option at any time prior to maturity, the Issuers may choose to redeem all or any portion of the Notes at once or from time to time.

 

(b)           To redeem the Notes before the Par Call Date, the Issuers must pay a redemption price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed, and (ii) as determined by the Quotation Agent (as defined below), the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be

 

A-3

 

redeemed that would have been due if the Notes matured on the Par Call Date (not including any portion of those payments of interest accrued as of the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below) plus 35 basis points, plus, in either case, accrued and unpaid interest to the date of redemption (subject to the right of Holders on the relevant record date to receive interest due on the relevant interest payment date).

 

(c)           To redeem the Notes on or after the Par Call Date, the Issuers must pay a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to the date of redemption (subject to the right of Holders on the relevant record date to receive interest due on the relevant interest payment date).

 

For purposes of determining any redemption price, the following definitions shall apply:

 

“Adjusted Treasury Rate” means, with respect to any date of redemption, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the date of redemption.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed, calculated as if the maturity date of the Notes were the Par Call Date (the “Remaining Life”), that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of the Notes.

 

“Comparable Treasury Price” means, with respect to any date of redemption, (a) the average of the Reference Treasury Dealer Quotations for the date of redemption, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (b) if the Trustee obtains fewer than four Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations.

 

“Par Call Date” means September 15, 2026 (three months prior to the maturity date).

 

“Quotation Agent” means a Primary Treasury Dealer (as defined below) appointed by the Issuers.

 

“Reference Treasury Dealer” means J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC, each a primary U.S. Government securities dealer in the United States (a “Primary Treasury Dealer”), or their respective successors; provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Issuers shall substitute another Primary Treasury Dealer.

 

A-4

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any date of redemption, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding that date of redemption.

 

6.     Notice of Redemption.  Notice of redemption shall be mailed at least 30 days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address.  Notes in denominations larger than $2,000 may be redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed.  Unless the Issuers default in payment of the redemption price, on and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption.

 

7.     Denominations, Transfer, Exchange.  The Notes are in registered form without coupons in minimum denominations of $2,000 and integral multiples of $1,000.  The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Issuers may require a Holder to pay any taxes or other governmental charges required by law or permitted by the Indenture.  The Issuers need not exchange or register the transfer of any Note or portion of a Note selected for redemption or repurchase, except for the unredeemed or unrepurchased portion of any Note being redeemed or repurchased in part.  Also, the Issuers need not exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or repurchased or during the period between a record date and the corresponding Interest Payment Date.

 

8.     Persons Deemed Owners.  The registered Holder of a Note shall be treated as its owner for all purposes.

 

9.     Amendment, Supplement and Waiver.  Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of a majority in aggregate principal amount of the then Outstanding Notes, and any existing default or compliance with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority in aggregate principal amount of the then Outstanding Notes.  Without the consent of any Holder of a Note, the Indenture or the Notes may be amended or supplemented for any of the purposes set forth in Section 9.01 of the Original Indenture (as amended by the Supplemental Indenture), including to cure any ambiguity, defect or inconsistency, to provide for the assumption of an Issuer’s obligations to Holders of the Notes in case of a merger or consolidation of such Issuer or sale of all or substantially all of such Issuer’s assets, to add or release Subsidiary Guarantors (or their successors) pursuant to the terms of the Indenture, to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights under the Indenture of any Holder of the Notes, to comply with the requirements of the Commission to permit the qualification of the Indenture under the Trust Indenture Act, to evidence or provide for the acceptance of appointment under the Indenture of a successor Trustee, to add any additional Events of Default, to secure the Notes or the Guarantees or to establish the form or terms of any other series of Debt Securities.

 

A-5

 

10.  Defaults and Remedies.  Events of Default with respect to the Notes include: (i) default for 60 days in the payment when due of interest on the Notes; (ii) default in payment when due of principal of or premium, if any, on the Notes at maturity, upon redemption or otherwise, (iii) failure by an Issuer or any Subsidiary Guarantor for 90 days after notice to comply with any of the other agreements in the Indenture (provided that notice need not be given, and an Event of Default shall occur, 90 days after any breach of the provisions of Section 6.01 of the Supplemental Indenture); (iv) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Debt of an Issuer or any of the Partnership’s Subsidiaries (or the payment of which is guaranteed by the Partnership or any of its Subsidiaries), whether such Debt or guarantee now exists or is created after the Issue Date, if that default (a) is caused by a failure to pay principal of or premium, if any, or interest on such Debt prior to the expiration of the grace period provided in such Debt (a “Payment Default”) or (b) results in the acceleration of the maturity of such Debt to a date prior to its original stated maturity, and, in each case described in clause (a) or (b), the principal amount of any such Debt, together with the principal amount of any other such Debt under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $25.0 million or more, subject to the proviso set forth in Section 7.01(a)(iv) of the Supplemental Indenture; (v) except as permitted by the Indenture, any Guarantee shall cease for any reason to be in full force and effect (except as otherwise provided in the Indenture) or is declared null and void in a judicial proceeding or any Subsidiary Guarantor, or any Person acting on behalf of any Subsidiary Guarantor, shall deny or disaffirm its obligations under the Indenture or its Guarantee and (vi) certain events of bankruptcy or insolvency with respect to an Issuer or any of the Subsidiary Guarantors.  If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then Outstanding Notes may declare all the Notes to be due and payable.  Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency involving an Issuer, but not any Subsidiary Guarantor, all Outstanding Notes shall become due and payable without further action or notice.  Holders may not enforce the Indenture or the Notes except as provided in the Indenture.  Subject to certain limitations, Holders of a majority in aggregate principal amount of the then Outstanding Notes may direct the Trustee in its exercise of any trust or power.  If and so long as the board of directors, an executive committee of the board of directors or trust committee of Responsible Officers of the Trustee in good faith so determines, the Trustee may withhold from Holders of the Notes notice of any continuing Default (except a Default relating to the payment of principal, premium, if any, or interest) if it determines that withholding notice is in their interests.  The Holders of a majority in aggregate principal amount of the Notes then Outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes waive any past Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of interest on, the principal of, or premium, if any, on the Notes or any other Default specified in Section 6.06 of the Original Indenture.  The Issuers and the Subsidiary Guarantors are required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Issuers are required upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default.

 

A-6

 

11.  Trustee Dealings with Issuers.  The Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Issuers or their Affiliates, and may otherwise deal with the Issuers or their Affiliates, as if it were not the Trustee.

 

12.  No Recourse Against Others.  The General Partner and its directors, officers, employees and members (in their capacities as such) shall not have any liability for any obligations of the Issuers under the Notes.  In addition, the Managing General Partner and its directors, officers, employees and members shall not have any liability for any obligations of the Issuers under the Notes.  Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.

 

13.  Authentication.  This Note shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

 

14.  Abbreviations.  Customary abbreviations may be used in the name of a Holder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

15.  CUSIP and ISIN Numbers.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuers have caused CUSIP and corresponding ISIN numbers to be printed on the Notes, and the Trustee may use CUSIP and corresponding ISIN numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

 

The Issuers shall furnish to any Holder upon written request and without charge a copy of the Indenture.  Requests may be made to:

 

Plains All American Pipeline, L.P.
 333 Clay Street, Suite 1600

Houston, Texas  77002

Attention:  Investor Relations

 

A-7

 

Assignment Form

 

To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to

 

	
 
    
	
(Insert   assignee’s soc. sec. or tax I.D. no.)
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
(Print or type   assignee’s name, address and zip code)
    

 

and irrevocably appoint                                                                                                                                                           agent to transfer this Note on the books of the Issuers.  The agent may substitute another to act for him.

	
 
    

 

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

 

	
Signature Guarantee:
    	
 
    
	
 
    	
(Signature must be   guaranteed by a financial institution that is a member of the Securities   Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion   Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signature   Program (“MSP”) or such other signature guarantee program as may be   determined by the Registrar in addition to, or in substitution for, STAMP, SEMP   or MSP, all in accordance with the Securities Exchange Act of 1934, as   amended.)
    

 

A-8

 

SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE(3)

 

The original principal amount of this Global Note is $                        .  The following increases or decreases in this Global Note have been made:

 

	
Date of
   Exchange
    	
 
    	
Amount of
   decrease in
   Principal
   Amount
   of
   this Global Note
    	
 
    	
Amount of
   increase in
   Principal Amount
   of
   this Global Note
    	
 
    	
Principal
   Amount of
   this Global Note
   following such
   decrease
   (or increase)
    	
 
    	
Signature of
   authorized
   signatory of
   Trustee or Note
   Custodian
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

(3)  To be included only if the Note is issued in global form.

 

A-9

 

EXHIBIT B

 

FORM OF SUPPLEMENTAL INDENTURE

 

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of                    , among Plains All American Pipeline, L.P., a Delaware limited partnership (the “Partnership”), PAA Finance Corp., a Delaware corporation (“PAA Finance” and, together with the Partnership, the “Issuers”),                          (the “Subsidiary Guarantor”), a direct or indirect subsidiary of Plains All American Pipeline, L.P. (or its successor), a Delaware limited partnership (the “Partnership”), and U.S. Bank National Association, as trustee under the indenture referred to below (the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, the Issuers have heretofore executed and delivered to the Trustee an indenture (the “Original Indenture”), dated as of September 25, 2002, as supplemented by the Thirtieth Supplemental Indenture (the “Thirtieth Supplemental Indenture” and, together with the Original Indenture, the “Indenture”) dated as of November 22, 2016, among the Issuers and the Trustee, providing for the issuance of the Issuers’ 4.500% Senior Notes due 2026 (the “Notes”);

 

WHEREAS, Section 5.05 of the Thirtieth Supplemental Indenture provides that under certain circumstances the Partnership is required to cause the Subsidiary Guarantor to execute and deliver to the Trustee a supplemental indenture pursuant to which the Subsidiary Guarantor shall unconditionally guarantee all of the Issuers’ obligations under the Notes pursuant to a Guarantee on the terms and conditions set forth herein; and

 

WHEREAS, pursuant to Section 9.01 of the Original Indenture, the Issuers and the Trustee are authorized to execute and deliver this Supplemental Indenture;

 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Issuers, the Subsidiary Guarantor and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders of the Notes as follows:

 

1.  Definitions.

 

(a)  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 

(b)           For all purposes of this Supplemental Indenture, except as otherwise herein expressly provided or unless the context otherwise requires:  (i) the terms and expressions used herein shall have the same meanings as corresponding terms and expressions used in the Indenture; and (ii) the words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

 

B-1

 

2.     Agreement to Guarantee.  The Subsidiary Guarantor hereby agrees, jointly and severally with all other Subsidiary Guarantors under the Indenture, if any, to guarantee the Issuers’ obligations under the Notes on the terms and subject to the conditions set forth in Article IX of the Thirtieth Supplemental Indenture and to be bound by all other applicable provisions of the Indenture.  Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

 

3.     GOVERNING LAW.  THIS SUPPLEMENTAL INDENTURE SHALL BE DEEMED TO BE A NEW YORK CONTRACT, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

4.     Recitals; Trustee Makes No Representation; Trustee’s Rights and Duties.  The recitals contained herein shall be taken as the statements of the Issuers, and the Trustee assumes no responsibility for the correctness of the same.  The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture and shall not be liable in connection therewith. The rights and duties of the Trustee shall be determined by the express provisions of the Original Indenture, and nothing in this Supplemental Indenture shall in any way modify or otherwise affect the Trustee’s rights and duties thereunder.

 

5.     Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

 

6.     Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction thereof.

 

B-2

 

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

 

	
 
    	
PLAINS ALL AMERICAN   PIPELINE, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
PAA GP LLC, its General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Plains AAP, L.P., its   Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Plains All American GP   LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
PAA FINANCE CORP.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
[SUBSIDIARY GUARANTOR],
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
U.S. BANK NATIONAL   ASSOCIATION, as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

B-3Exhibit 10.1

 

 

 

 

THIRD

 

AMENDED AND RESTATED

 

AGREEMENT AND PLAN OF MERGER

 

by and among

 

DATARAM CORPORATION,

 

DATARAM ACQUISITION SUB, INC.

 

U.S. GOLD CORP.

 

AND

 

COPPER KING LLC

 

 

 

Dated as of November 28, 2016

 

 

 

 

 

 

     

     

    

THIRD AMENDED AND RESTATED AGREEMENT AND PLAN
OF MERGER

 

This Third Amended and Restated
Agreement and Plan of Merger (this “Agreement”) is entered into as of November 28, 2016, by and among DATARAM
CORPORATION, a Nevada corporation (“Parent”); DATARAM ACQUISITION SUB, INC., a Nevada corporation and wholly-owned
subsidiary of the Parent (“Buyer”); U.S. GOLD CORP., a Nevada corporation (the “Company”);
and Copper King LLC, a principal stockholder of the Company (the “Stockholder”). Parent, Buyer, Company and
the Stockholder are each a “Party” and collectively, the “Parties” to this Agreement. This
Agreement amends and restates the Agreement and Plan of Merger between the Parties dated as of June 13, 2016 (the “Original
Agreement”) and amended and restated on July 29, 2016 (the “First Amended and Restated Agreement”)
and September 14, 2016 (the “Second Amended and Restated Agreement”).

 

 

R E C I T A L S

 

WHEREAS, the Company is an exploration
stage company that owns certain mining leases and other mineral rights comprising the Copper King gold and copper development project
located in the Silver Crown Mining District of southeast Wyoming (the “Copper King Project”);

 

WHEREAS, on May 25, 2016, the Company
entered into a Purchase and Sale Agreement, as Amended and Restated agreement with Nevada Gold Ventures, LLC and Americas Gold
Exploration, Inc. (the “Keystone Agreement”) pursuant to which the Company will acquire certain mining claims
related to a gold development project in Eureka County, Nevada (the “Keystone Project” and, together with the
Copper King Project, the “Properties”), subject to the satisfaction of certain closing conditions as set forth
in the Keystone Agreement (the “Keystone Acquisition”);

 

WHEREAS, the Keystone Acquisition
closed on June 8, 2016;

 

WHEREAS, the Properties contain
probable reserves and all of the Company’s activities are exploratory in nature;

 

WHEREAS, the Stockholder owns 20,000
shares of the Company’s 0% Series A Convertible Preferred Stock which are convertible into Sixty Million (60,000,000) shares
of the Company’s Common Stock;

 

WHEREAS, the Boards of Directors
of each of the Parent, Buyer and the Company have each approved the acquisition of the Company by the Parent through the merger
of the Company with and into the Buyer, with Company surviving such merger, upon the terms and subject to the conditions set forth
in this Agreement, whereby all of the issued and outstanding shares of the capital stock and other securities of the Company will
be converted into the right to receive the Merger Consideration (as defined herein);

 

    -1- 

     

    

 

WHEREAS, effective July 11, 2016,
the Parent effected a reverse split of its issued and outstanding Common Stock on a three for one basis (the “Parent Reverse
Stock Split”);

 

WHEREAS, the Parties amended and
restated the Original Agreement on June 29, 2016 in order to:

(a)       update
certain capitalization changes of the Parties;

(b)       update
certain aspects of the Merger Consideration;

(c)       reflect
the Parent Reverse Stock Split; and

 

WHEREAS, the Parties amended and
restated the First Amended and Restated Agreement on September 14, 2016 in order to:

		(a)	adjust the terms of the Escrow Agreement;

		(b)	update certain aspects of Parent’s capitalization;

		(c)	provide for the registration of certain of the Merger Consideration pursuant to a registration
statement on Form S-4; and

 

WHEREAS, the Parties have agreed
to amend and restate the Second Amended and Restated Agreement in order to:

		(a)	Remove the requirement that the “Management Consideration” (as previously defined in
the Second Amended and Restated Merger Agreement) be issued under an equity incentive plan of Parent;

		(b)	Remove the covenant that Parent issue certain restricted stock grants at Closing;

		(c)	Reflect the planned issuance of a one-time dividend for holders of Preferred Series D stock by
the Parent;

		(d)	Reflect the results of the US Gold private placement to include the issuance by US Gold of Preferred
Series C shares for investors and issuance by US Gold of warrant shares for LaidLaw (placement agent);

		(e)	Reflect the issuance by US Gold of stock options as part of US Gold’s acquisition of Keystone;

		(f)	Reflect the issuance by US Gold of common stock for management compensation paid in equity;

		(g)	Update certain aspects of Parent’s capitalization;

		(h)	Update certain aspects of US Gold’s capitalization; and

		(i)	Reflect other changes to the capital structure which reflect known and planned issuances for both
the Parent and US Gold.

 

    -2- 

     

    

 

A G R E E M E N T

 

NOW, THEREFORE, in consideration
of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and intending to be legally bound the parties agree as follows:

 

 

ARTICLE
I

DEFINITIONS

 

For all purposes of this Agreement,
except as otherwise expressly provided:

 

(a)       the
terms defined in this Article I have the meanings assigned to them in this Article I and include the plural as well as
the singular,

 

(b)       all
accounting terms not otherwise defined herein have the meanings assigned under GAAP,

 

(c)       all
references in this Agreement to designated “Articles,” “Sections” and other subdivisions are to the designated
Articles, Sections and other subdivisions of the body of this Agreement,

 

(d)       pronouns
of either gender or neuter shall include, as appropriate, the other pronoun forms, and

 

(e)       the
words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement
as a whole and not to any particular Article, Section or other subdivision.

 

As used in this Agreement and the
schedules delivered pursuant to this Agreement, the following definitions shall apply:

 

“AAA Rules” has
the meaning set forth in Section 9.17.

 

“Action” means
any action, complaint, claim, charge, petition, investigation, suit or other proceeding, whether civil or criminal, in law or in
equity, or before any mediator, arbitrator or Governmental Entity.

 

“Affiliate” means
with respect to any specified Person, any other Person that directly or indirectly through one or more intermediaries, controls,
or is controlled by, or is under common control with, such specified Person.

 

    -3- 

     

    

 

“Agreement” means
this Agreement and Plan of Merger, as amended or supplemented, together with all exhibits and schedules attached or incorporated
by reference.

 

“Approval” means
any approval, authorization, consent, qualification or registration, or any waiver of any of the foregoing, required to be obtained
from, or any notice, statement or other communication required to be filed with or delivered to, any Governmental Entity or any
other Person.

 

“Articles of Merger”
has the meaning set forth in Section 2.2.

 

“Business Day”
means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by law to be closed in New
York, New York.

 

“Buyer” has the
meaning set forth in the preamble to this Agreement.

 

“Certificates”
has the meaning set forth in Section 2.7.

 

“Claim” has the
meaning set forth in Section 8.3.

 

“Claim Notice”
has the meaning set forth in Section 8.3.

 

“Closing” has
the meaning set forth in Section 2.11.

 

“Closing Date”
means the date of the Closing as set forth in Section 2.11.

 

“Common Consideration”
has the meaning set forth in Section 2.5.

 

“Common Share” and
“Common Shares” have the meanings set forth in Section 2.5.

 

“Common Stock”
means the common stock, par value $0.001 per share, of the Parent.

 

“Company” has
the meaning set forth in the preamble to this Agreement.

 

“Conditions Precedent”
has the meaning set forth in Section 6.5.

 

“Contract” means
any agreement, contract, arrangement, bond, loan commitment, franchise, indemnity, indenture, instrument, lease, license or understanding,
whether or not in writing.

 

“Effective Time”
has the meaning set forth in Section 2.2.

 

    -4- 

     

    

 

“Encumbrance”
means any claim, charge, easement, encumbrance, lease, covenant, security interest, lien, option, pledge, rights of others, or
restriction (whether on voting, sale, transfer, disposition or otherwise), whether imposed by agreement, understanding, law, equity
or otherwise, except for any restrictions on transfer generally arising under any applicable federal or state securities law.

 

“Environmental Law”
shall mean any Law which relates to or otherwise imposes liability or standards of conduct concerning discharges, emissions, releases
or threatened releases of noises, pathogens, odors, pollutants, or contaminants or hazardous or toxic wastes, substances or materials,
whether as matter or energy, into air (whether indoors or out), water (whether surface or underground) or land (including any subsurface
strata), or otherwise relating to their manufacture, processing, generation, distribution, use, treatment, storage, disposal, cleanup,
transport or handling, including the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended,
the Superfund Amendments and Reauthorization Act of 1986, as amended, the Resource Conservation and Recovery Act of 1976, as amended,
the Toxic Substances Control Act of 1976, as amended, the Federal Water Pollution Control Act Amendments of 1972, the Clean Water
Act of 1977, as amended, the National Environmental Policy Act of 1969, and any state provision analogous to any of the foregoing.

 

“Escrow Agent”
means a mutually agreed to third party that is in the business of providing the escrow services similar to the services required
herein.

 

“Escrow Agreement”
has the meaning set forth in Section 2.10.

 

“Escrow Period”
has the meaning set forth in Section 2.10.

 

“Escrow Shares”
has the meaning set forth in Section 2.10.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

“GAAP” means generally
accepted accounting principles in the United States, as in effect from time to time.

 

“General Mining Law”
means the General Mining Law of 1872, as amended.

 

“Governmental Entity”
means any government or any agency, bureau, board, commission, court, department, official, political subdivision, tribunal or
other instrumentality of any government, whether federal, state or local, domestic or foreign.

 

“Hazardous Substance”
means any material, substance, form of energy or pathogen which:

 

    -5- 

     

    

 

(a)       constitutes
a “hazardous substance”, “toxic substance” or “pollutant”, “contaminant”, “hazardous
material”, “hazardous chemical”, “regulated substance”, or “hazardous waste” (as such
terms are defined by or pursuant to any Environmental Law); or

 

(b)       is
otherwise regulated or controlled by, or gives rise to liability under, any environmental law.

 

“Indemnified Party”
has the meaning set forth in Section 8.3.

 

“Indemnifying Party”
has the meaning set forth in Section 8.3.

 

“Intellectual Property”
means all of the following in any jurisdiction throughout the world:

 

(a)       all
inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and all U.S.
and foreign patents, patent applications, and patent disclosures, together with all reissuances, continuations, continuations-in-part,
revisions, extensions, and reexaminations thereof;

 

(b)       all
trademarks, service marks, brand names, certification marks, trade dress, logos, trade names, domain names, assumed names and corporate
names, together with all translations, adaptations, derivations, and combinations thereof and including all goodwill associated
therewith, and all applications, registrations, and renewals in connection therewith;

 

(c)       all
copyrightable works, all copyrights, and all applications, registrations, and renewals in connection therewith;

 

(d)       all
mask works and all applications, registrations, and renewals in connection therewith;

 

(e)       all
trade secrets and confidential information (including ideas, research and development, know-how, formulas, compositions, manufacturing
and production processes and techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing
and cost information, and business and marketing plans and proposals);

 

(f)       all
computer software (including source code, object code, diagrams, data and related documentation);

 

(g)       all
other proprietary rights;

 

(h)       all
copies and tangible embodiments of the foregoing (in whatever form or medium);

 

    -6- 

     

    

 

(i)       licenses,
immunities, covenants not to sue and the like relating to the foregoing; and

 

(j)       any
claims or causes of action arising out of or related to any infringement or misappropriation of any of the foregoing.

 

“Knowledge”
or “Known” shall mean the actual knowledge (without investigation) of the Stockholder, the Company, the Parent
or the Buyer, as the case may be.

 

“Law” means any
constitutional provision, statute or other law, rule, regulation, or interpretation of any Governmental Entity and any Order.

 

“Loss” means any
action, cost, damage, disbursement, expense, liability, loss, deficiency, diminution in value, obligation, penalty or settlement
of any kind or nature, whether foreseeable or unforeseeable, including but not limited to, interest or other carrying costs, penalties,
legal, accounting and other professional fees and expenses incurred in the investigation, collection, prosecution and defense of
claims and amounts paid in settlement, that may be imposed on or otherwise incurred or suffered by the specified Person.

 

“Material Adverse Effect”
means, with respect to any Person:

 

(a)       a
material adverse effect on the condition (financial or otherwise), business, prospects, assets, liabilities, or results of operations
of such Person; or

 

(b)       a
material adverse effect on the ability of such Person to consummate the transactions contemplated by this Agreement.

 

“Merger” has the
meaning set forth in Section 2.1.

 

“Merger Consideration”
has the meaning set forth in Section 2.5.

 

“NRS” means the
Nevada Revised Statutes.

 

“Non-Escrow Shares”
has the meaning set forth in Section 2.10.

 

“Order” means
any decree, injunction, judgment, order, ruling, assessment or writ of any Governmental Entity.

 

“Parent” has the
meaning set forth in the preamble to this Agreement.

 

“Parent Indemnified Party”
has the meaning set forth in Section 8.1.

 

“Parent Indemnifying Party”
has the meaning set forth in Section 8.2.

 

    -7- 

     

    

 

“Parent Shares”
shall mean shares of Common Stock and all shares of Parent Series C Convertible Stock, par value $0.001 per share, delivered to
the stockholders of the Company as part of the Merger Consideration.

 

“Parent Series C Certificate
of Designation” has the meaning set forth in Section 2.5.

 

“Parent Series C Preferred
Stock” means the 0% Series C Convertible Preferred Stock, par value $0.001 per share, of the Parent as shall be set forth
in a certificate of designation filed by the Company with the Secretary of State of the State of Nevada on or prior to the Effective
Date, substantially in the form of Exhibit A annexed hereto.

 

“Person” means
an association, a corporation, an individual, a partnership, a limited liability company, a trust or any other entity or organization,
including a Governmental Entity.

 

“Pre-Closing Tax Returns”
has the meaning set forth in Section 7.2.

 

“Preferred Consideration”
has the meaning set forth in Section 2.5.

 

“Preferred Share”
and “Preferred Shares” have the meanings set forth in in Section 2.5.

 

“Regulation D”
has the meaning set forth in Section 3.6.

 

“SEC” means the
United States Securities and Exchange Commission.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

“Series A Preferred Stock”
means the 0% Series A Convertible Preferred Stock, par value $0.0001 per share, of the Company.

 

“Series B Preferred Stock”
means the 0% Series B Convertible Preferred Stock, par value $0.0001 per share, of the Company.

 

“Series C Preferred Stock”
means the 0% Series C Convertible Preferred Stock, par value $0.0001 per share, of the Company.

 

“Share” and “Shares”
has the meaning set forth in Section 2.5 and includes all options, warrants or other securities convertible into Shares.

 

“Stockholder”
has the meaning set forth in the preamble to this Agreement.

 

    -8- 

     

    

 

“Stockholder Indemnified
Party” has the meaning set forth in Section 8.2.

 

“Stockholder Indemnifying
Party” has the meaning set forth in Section 8.1.

 

“Straddle Period”
has the meaning set forth in Section 7.3.

 

“Surviving Entity”
has the meaning set forth in Section 2.1.

 

“Tax” (and, with
correlative meaning, “Taxes”) means:

 

(a)       any
federal, state, local or foreign net income, gross income, gross receipts, windfall profit, severance, property, production, sales,
use, license, excise, franchise, escheat, employment, payroll, withholding, alternative or add-on minimum, ad valorem, value added,
transfer, stamp, or environmental tax, or any other tax, custom, duty, governmental fee or other like assessment or charge of any
kind whatsoever, together with any interest or penalty, addition to tax or additional amount imposed by any governmental authority;
and

 

(b)       any
liability of the Company for the payment of amounts with respect to payments of a type described in clause (a) as a result of being
a member of an affiliated, consolidated, combined or unitary group, or as a result of any obligation of the Company under any Tax
Sharing Arrangement or Tax Indemnity Agreement.

 

“Tax Claim” has
the meaning set forth in Section 7.6.

 

“Tax Indemnity Agreement”
means any written or unwritten agreement or arrangement pursuant to which the Company may be required to indemnify or reimburse
another party for any liability relating to Taxes.

 

“Tax Period” has
the meaning set forth in Section 3.7

 

“Tax Return” means
any return, report or similar statement required to be filed with respect to any Tax (including any attached schedules), including
any information return, claim for refund, amended return or declaration of estimated Tax.

 

“Tax Sharing Arrangement”
means any written or unwritten agreement or arrangement for the allocation or payment of Tax liabilities or payment for Tax benefits
with respect to a consolidated, combined or unitary Tax Return which includes the Company.

 

“Threshold” has
the meaning set forth in Section 8.1(c).

 

    -9- 

     

    

 

ARTICLE
II

THE MERGER

 

2.1       The
Merger. At the Effective Time and upon the terms and subject to the conditions of this Agreement, including the satisfaction
of the Conditions Precedent set forth in Section 6.5 herein, and in accordance with the Chapter 92A of the NRS, the Company
shall be merged with and into Buyer (the “Merger”). Following the Merger:

 

(a)       The
Company shall continue as the surviving entity (the “Surviving Entity”) and wholly owned subsidiary of Parent
incorporated and domiciled in the State of Nevada; and

 

(b)       The
separate corporate existence of the Buyer shall cease.

 

Parent, as the sole owner of Buyer, hereby approves
the Merger and this Agreement.

 

2.2       Effective
Time. Subject to the terms and conditions set forth in this Agreement, on the Closing Date, Articles of Merger, substantially
in the form of Exhibit B annexed hereto (the “Articles of Merger”) shall be duly executed
and acknowledged by Buyer and the Company and thereafter delivered to the Secretary of State of Nevada for filing. The Merger shall
become effective at such time as a properly executed copy of the Articles of Merger are duly filed with the Secretary of State
of Nevada, or such later time as Parent and the Stockholder may agree upon and as set forth in the Articles of Merger (the time
the Merger becomes effective being referred to herein as the “Effective Time”).

 

2.3       Effects
of the Merger. The Merger shall have the effects set forth in the NRS. Without limiting the generality of the foregoing
and subject thereto, at the Effective Time, all the properties, rights, privileges, powers and franchises of the Company and Buyer
shall vest in the Surviving Entity, and all debts, liabilities and obligations of the Company and Buyer shall become the debts,
liabilities and obligations of the Surviving Entity. At the Effective Time, the Surviving Entity shall be incorporated and domiciled
in the State of Nevada. The parties agree to cooperate and deliver any further documentation and information as may be required
by the Secretary of State of the State of Nevada to cause the Surviving Entity to be domiciled in the State of Nevada at the Effective
Time or as soon as thereafter practicable.

 

2.4       Articles
of Incorporation, Bylaws and Directors and Officers. The articles of incorporation of the Buyer shall, without further
action, be terminated, and the articles of incorporation and bylaws of the Company in effect at the Effective Time shall be the
articles of incorporation and bylaws of the Surviving Entity until amended in accordance with applicable Law. The officers and
directors of the Company and the Buyer in office immediately prior to the Effective Time shall be the officers and directors of
the Surviving Entity effective as of the Effective Time, as set forth on Schedule 2.4 hereto.

 

    -10- 

     

    

 

2.5       Conversion
of Shares. At the Effective Time, by virtue of the Merger (and without any action on the part of Buyer or the Company)
the shares of common stock, par value $0.0001 per share of the Company (each, a “Common Share” and, collectively,
the “Common Shares”) and the outstanding shares of Series A Preferred Stock, Series B Preferred Stock and Series
C Preferred Stock of the Company (each a “Preferred Share” and, collectively, the “Preferred Shares”
and, together with the Common Shares, the “Shares”) issued and outstanding immediately prior to the Effective
Time shall, collectively, be converted into the right to receive the Common Consideration, or, at the election of any holder of
Shares, the Preferred Consideration. The “Common Consideration” is the aggregate consideration consisting of
shares of Common Stock. The “Preferred Consideration” is the aggregate consideration consisting of Parent Series
C Preferred Stock, the terms of which are set forth in a certificate of designation to be filed by the Parent with the Secretary
of State of the State of Nevada substantially in the form of Exhibit A, annexed hereto (the “Parent Series
C Certificate of Designation”). The Preferred Consideration, together with the Common Consideration, shall hereinafter
be referred to as the “Merger Consideration”). The Merger Consideration shall be allocated as follows and is
being presented in terms of Common Stock on an “as converted” basis but may be issued in the form of Parent Series
C Preferred Stock pursuant to this Section 2.5:

 

(a)       One
Million Five Hundred Eighty Three Thousand and Three Hundred Thirty Three (1,583,333) shares of Common Stock shall be issued to
those holders of Common Shares set forth on Schedule 2.5(a) hereof, subject to the execution and delivery by such holder of a two
year lockup agreement, the form of which is attached hereto as Exhibit C (the “Two Year Lockup Agreement”);

 

(b)       One
Hundred Fifty One Thousand Five Hundred Fifteen (151,515) shares of Common Stock shall be issued holders of Common Shares issued
to a certain member of USG management set forth on Schedule 2.5(b) hereof, pursuant to an employment agreement as compensation
for services performed between June 1, 2016 and January 31, 2017, subject to the execution and delivery by such holder of a one
year lockup agreement (“One Year Lockup Agreement”);

 

(c)       Twenty
Two Million Three Hundred and Eighty Four Thousand and Ninety Three (22,334,893) shares of Common Stock shall be issued to the
holders of Series A Preferred Stock;

 

(d)       One
Million Eight Hundred Sixty Six Thousand Seven Hundred and Seventeen (1,866,717) shares of Common Stock shall be issued to the
holders of Series B Preferred Stock the receipt of which shall be conditioned on the receipt of a one year lockup agreement (the
“One Year Lockup Agreement”) from each holder of Series B Preferred Stock, the form of which is attached hereto
as Exhibit D;

 

    -11- 

     

    

 

(e)       Eighteen
Million Ninety Four Thousand Three Hundred and Sixty Two (18,094,362) shares of Common Stock shall be issued to holders (the “Company
Laidlaw Investors”) of Series C Preferred Stock issued in connection with the Company’s private placement of Eleven
Million Nine Hundred Forty Two Thousand Two Hundred Seventy Nine ($11,942,279) Dollars (inclusive of Laidlaw’s over-allotment
option) of the Company’s securities (the “Company Financing”) pursuant to which Laidlaw & Company
(UK), Ltd. (“Laidlaw”) served as placement agent, based on a 3:1 ratio with each three Common Shares underlying
such shares of Series C Preferred Stock of the Company held by a Company Laidlaw Investor entitled to receive one share of Common
Stock;

 

(f)       One
Million Eight Hundred and Nine Thousand Four Hundred and Thirty Six (1,809,436) Five-year cashless warrants with an exercise price
of $0.66 per share, which are immediately exercisable (“Laidlaw Warrants”) to be issued by the Parent in assumption
of the obligations of the Company to issue warrants to Laidlaw in connection with services performed by Laidlaw for the Company’s
private placement, to purchase shares of Common Stock;

 

(g)       One
Million Eight Hundred and Fifty Thousand (1,850,000) shares of Common Stock shall be issued to the holders of Common Shares of
the Company issued in connection with the closing of the Keystone Acquisition (each, a “Keystone Holder”), set
forth on Schedule 2.5(g) hereof, the receipt of which shall be conditioned on the receipt of a Two Year Lockup Agreement (the “Two
Year Lockup Agreement”) from each Keystone Holder, the form of which is attached hereto as Exhibit C; and

 

(h)       Nine
Hundred Twenty Five Thousand Eight Hundred Thirty Three (925,833) Five-year options with an exercise price of $0.90 per share,
which vest 1/24 each month over the 2 years from the original date of issue, shall be issued to holders of options issued in connection
with the closing of the Keystone Acquisition (each, a “Keystone Options”), set forth on Schedule 2.5(h) below,
to purchase shares of Common Stock.

 

The Merger Consideration for holders
of record, in the aggregate and on an “as converted” and fully diluted basis, shall not exceed Forty Eight Million
Six Hundred Sixteen Thousand Eighty Nine (48,616,089) shares of Common Stock and equivalents, to include the Laidlaw Warrants to
purchase up to One Million Eight Hundred and Nine Thousand Four Hundred Thirty Six (1,809,436) shares of Common Stock and Keystone
Options to purchase up to Nine Hundred Twenty Five Thousand Eight Hundred Thirty Three (925,833) shares of Common Stock.

 

2.6       Intentionally
Omitted. 

 

    -12- 

     

    

 

2.7       Exchange
of Shares for Merger Consideration. At the Effective Time, the Shares issued and outstanding immediately prior
to the Effective Time shall no longer be outstanding and shall automatically be cancelled and retired and shall cease to exist,
and each certificate previously evidencing any such Shares (the “Certificates”) shall thereafter represent the
right to receive only the Merger Consideration.

 

2.8       Buyer
Common Stock. Each share of Buyer common stock, par value $0.001 per share, held by Parent immediately prior to the
Effective Time shall, by virtue of the Merger and without any action on the part of the Parent, be converted into the right to
receive one (1) share of common stock of the Surviving Entity.

 

2.9       Delivery
of Certificates.

 

(a)       Delivery.
At the Closing, the Parent shall deliver the Merger Consideration pursuant to Section 2.5. Upon delivery of the Merger Consideration,
any certificates or book entry records of the Shares shall forthwith be cancelled.

 

(b)       No
Further Transfers. The Merger Consideration paid upon the cancellation of Shares in accordance with the terms hereof shall
be deemed to have been paid in full satisfaction of all rights pertaining to such Shares. From and after the Effective Time, there
shall be no further registration of transfers on the transfer books of the Surviving Entity of the Shares that were outstanding
immediately prior to the Effective Time.

 

(c)       Certificates.
If any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming
such Certificate to be lost, stolen or destroyed and, if required by Parent, the posting by such person of a bond in such reasonable
amount as Parent may direct as indemnity against any claim that may be made against it with respect to such Certificate, Parent
shall deliver in exchange for such lost, stolen or destroyed Certificate the applicable Merger Consideration with respect thereto.

 

2.10       Escrow.
At the Effective Time, in accordance with the terms of an escrow agreement (the “Escrow
Agreement”), substantially in the form of Exhibit E annexed hereto, Parent
shall deliver:

 

(a)       to
the Escrow Agent, ten percent (10%) of the Stockholder Merger Consideration, which shall
be deposited into escrow from the Merger Consideration issuable to the Stockholder in shares of Parent Series C Preferred Stock
(the “Escrow Shares”); and

 

(b)       to
the stockholders of the Company, the remaining Merger Consideration (the “Non-Escrow Shares”).

 

    -13- 

     

    

 

The Escrow Shares shall be available
to secure any claims that may arise with respect to the representations, warranties, covenants or indemnification obligations of
the Stockholder and the Company pursuant to this Agreement during the escrow period (“Escrow Period”) of twelve (12)
months following the Closing Date as well as against the failure by the Company to deliver, during the Escrow Period a new preliminary
economic report of the Copper King Project (the “New Report”) in which case the Escrow Shares shall serve to reimburse
the Parent, by the forfeiture of such shares, in accordance with the valuation of such Escrow Shares set forth in the Escrow Agreement
in such aggregate amount as shall be determined by the parties. In no event shall the indemnification obligations of the Stockholder
under this Agreement exceed the Escrow Shares. The Escrow Shares shall not be available for sale, transfer or other disposition
by the Stockholder during the Escrow Period.

 

2.11       The
Closing. Upon the terms and subject to the conditions of this Agreement, the transactions contemplated by this Agreement
shall take place at a closing (the “Closing”) to be held at the offices of Sichenzia Ross Friedman Ference Kesner
LLP, at such other place or at such other time or on such other date as the Stockholder, the Company, Buyer and Parent may mutually
agree upon in writing, provided that all conditions to closing have been satisfied and closing deliveries required of the parties
in this Article II have been delivered (the day on which the Closing takes place being the “Closing Date”).
The Closing may, with the consent of all parties, take place by delivering an exchange of documents by facsimile transmission or
electronic mail with originals to follow by overnight mail service courier.

 

2.12       Closing
Deliveries by the Stockholder and the Company. At the Closing, against delivery of, among other things, the Merger Consideration,
the Stockholder shall deliver or cause to be delivered to Parent:

 

(a)       The
Certificates, if such Shares were issued in certificated form, in accordance with Section 2.9;

 

(b)       Accredited
Investor Questionnaires from all holders of Shares;

 

(c)       All
minute books, seals and other records of the Company provided that such minute books, seals and other records shall not be required
to be received by Parent prior to the Closing;

 

(d)       Certificates
of the Secretary of State and the taxing authorities of the State of Nevada and the State of Wyoming dated not more than five (5)
business days prior to the Closing Date, attesting to the incorporation and foreign qualification, respectively, and good standing
of the Company as a corporation in its jurisdiction of incorporation and foreign corporation qualified to do business, and to the
payment of all state taxes due and owing thereby;

 

    -14- 

     

    

 

(e)       Copies,
certified by the Secretary of State of Nevada, of the Articles of Incorporation of the Company, and all amendments thereto;

 

(f)       Copies,
certified by the Secretary or Assistant Secretary of the Company as of the Closing Date, of the bylaws of the Company, and all
amendments thereto;

 

(g)       A
copy, certified as of the Closing Date by the Secretary or Assistant Secretary of Company, of the resolutions of the Board of Directors
of the Company authorizing the Company’s execution, delivery and performance of this Agreement, the consummation of the transactions
contemplated herein, and the taking of all such other corporate action as shall have been required as a condition to, or in connection
with the consummation of the contemplated transactions;

 

(h)       The
Escrow Agreement, duly executed by the Company and the Stockholder;

 

(i)       The
Articles of Merger duly executed by the Company; and

 

2.13       Closing
Deliveries by Parent and Buyer. At the Closing, against delivery of, among other things, the Certificates, Buyer and
Parent shall deliver to the applicable holder of Shares:

 

(a)       The
Non-Escrow Shares;

 

(b)       Certificates
of the Secretary of State and the taxing authorities of the State of Nevada dated not more than five (5) business days prior to
the Closing Date, attesting to the incorporation and good standing of Parent as a corporation in its jurisdiction of incorporation,
and to the payment of all state taxes due and owing thereby;

 

(c)       Copies,
certified by the Secretary of State of Nevada of the Articles of Incorporation of the Parent, and all amendments thereto;

 

(d)       A
copy, certified as of the Closing Date by the Secretary or Assistant Secretary of Parent, of the bylaws of Parent and all amendments
thereto and resolutions of the Board of Directors of Parent authorizing Parent’s execution, delivery and performance of this
Agreement, the consummation of the transactions contemplated herein, and the taking of all such other corporate action as shall
have been required as a condition to, or in connection with the consummation of the contemplated transactions;

 

(e)       Certificates
of the Secretary of State and the taxing authorities of the State of Nevada dated not more than five (5) business days prior to
the Closing Date, attesting to the incorporation and good standing of Buyer as a corporation in its jurisdiction of incorporation,
and to the payment of all state taxes due and owing thereby;

 

    -15- 

     

    

 

(f)       Copies,
certified by the Secretary of State of Nevada of the Articles of Incorporation of Buyer, and all amendments thereto;

 

(g)       Copy,
certified as of the Closing Date by the Secretary or Assistant Secretary of Buyer, of the bylaws of Buyer and all amendments thereto
and resolutions of the Board of Directors of Buyer authorizing Buyer’s execution, delivery and performance of this Agreement,
the consummation of the transactions contemplated herein, and the taking of all such other corporate action as shall have been
required as a condition to, or in connection with the consummation of the contemplated transactions;

 

(h)       The
Escrow Agreement, duly executed by the Parent and Buyer, as applicable;

 

(i)       The
Articles of Merger duly executed by the Parent and Buyer, as applicable;

 

(j)       All
approvals required for issuance of the Merger Consideration shall have been obtained including approval of the Parent’s stockholders
of this Agreement, the consummation of the Merger and the issuance of the Merger Consideration pursuant to NASDAQ Listing Rule
5635 and the approval of the Listing of the Additional Shares Application by The NASDAQ Stock Market relating to the listing and
issuance of the Common Consideration and the shares of Common Stock issuable upon conversion of the Preferred Consideration (the
“Stockholder and NASDAQ Approvals”); and

 

(k)       Evidence
of the resignation of two members from the Board of Directors of the Parent to be determined by the Parent, the Company and the
Stockholder and the evidence of appointment of three (3) designees (“Designees”) of the Company to the Board
of Directors of the Parent, to be effective on the eleventh day following the date on which the Parent meets its information obligations
under the Exchange Act, including the filing and mailing of a Schedule 14f-1 related to the foregoing (the “Schedule 14f-1”).
The Designees will meet the definition of “independent director” in the listing requirements for NASDAQ Stock Market
LLC (or for any other exchange or trading system on which the Company’s securities are subsequently listed), any other requirements
of applicable laws and regulations, and any additional director independence standards adopted by the Parent.

 

(l)       Evidence
that during the past ten years, none of the current or proposed directors, executive officers, promoters, control persons, or nominees
of the Parent, Buyer, or Company, has been:

 

(i)       the
subject of any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer
either at the time of the bankruptcy or within two years prior to that time;

 

    -16- 

     

    

 

(ii)       convicted
in a criminal proceeding or is subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

 

(iii)       subject
to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or any
Federal or State authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in
any type of business, securities or banking activities;

 

(iv)       found
by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated
a federal or state securities or commodities law;

 

(v)       the
subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently
reversed, suspended or vacated, relating to an alleged violation of:

 

(A)       any
Federal or State securities or commodities law or regulation;

 

(B)       any
law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent
injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal
or prohibition order; or

 

(C)       any
law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

 

(vi)       the
subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization
(as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29)
of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary
authority over its members or persons associated with a member.

 

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF STOCKHOLDER 

AND THE COMPANY

 

The Stockholder and the Company hereby
each represent and warrant as of the Closing Date to Buyer and Parent as follows:

 

    -17- 

     

    

 

3.1       Organization
and Qualification of the Company.

 

(a)       The
Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada.

 

(b)       The
Company has all necessary corporate power and authority over the assets now owned by it. The Company is licensed or qualified to
do business in the State of Wyoming. The Stockholder has delivered to Buyer complete and correct copies of the charter and bylaws
of the Company as in effect as of the Closing Date.

 

3.2       Capitalization.

 

(a)       The
authorized capital stock of the Company consists of 200,000,000 shares of common stock and 50,000,000 shares of preferred stock.
As of the date hereof, after giving effect to the Merger and the consummation of the transactions contemplated hereby, the capitalization
of the Company will be as set forth on Schedule 3.2 hereof.

 

(b)       Except
as set forth in Section 3.2(a), there are no shares of capital stock of the Company issued and outstanding. All of the outstanding
shares of Common Stock and all of the outstanding shares of Company’s preferred stock have been duly authorized and validly
issued and are fully paid and non-assessable. None of the outstanding shares of Common Stock or Company preferred stock were issued
in violation of any preemptive rights or are subject to any preemptive rights of any Person. All of the Shares have been issued
and granted in all material respects in compliance with applicable securities Laws and other requirements of Law. No legend or
other reference to any Encumbrance appears upon any certificate representing the Shares, except for customary legends with respect
to transfer restrictions for restricted securities under federal and state securities Laws. The holders of all capital stock of
the Company are set forth on Section 3.2(a).

 

(c)       Except
as set forth in Section 3.2(a), there are no outstanding options, warrants, agreements, conversion rights, preemptive rights
or other rights to subscribe for or purchase from the stockholders of the Company or the Company or any contracts or commitments
providing for the issuance of, or the granting of rights to acquire:

 

(i)       any
capital stock or other ownership interests of the Company, including, but not limited to the Company Shares; or

 

(ii)       any
securities convertible into or exchangeable for any such capital stock or other ownership interests.

 

    -18- 

     

    

 

There are no outstanding contractual
obligations or plans of any of the stockholders of the Company or the Company to transfer, issue, repurchase, redeem or otherwise
acquire any outstanding shares of capital stock or other ownership interests of the Company, including, but not limited to the
Shares. The Company neither owns nor has any contract, agreement or understanding to acquire, any equity securities or other securities
of any Person or any direct or indirect equity or ownership interest in any other business. There are no outstanding bonds, debentures,
notes, or other indebtedness of the Company having the right to vote (or convertible into, or exchangeable for, securities having
the right to vote) on any matter on which the holders of the shares of the Company common stock may vote.

 

3.3       Stock
Ownership by Stockholder. The Stockholder has good title to, and is the sole record and beneficial owners of, 20,000
shares of Series A Preferred Stock and the shares of Series A Preferred Stock owned by the Stockholder are free and clear of any
and all Encumbrances. The Stockholder is not a party to any voting trusts, stockholders agreements, proxies or other agreements
or understandings in effect with respect to the voting or transfer of any of the shares of Series A Preferred Stock owned by the
Stockholder other than such which will terminate upon the consummation of the transactions contemplated by this Agreement.

 

3.4       Authorization;
Enforceability. The execution, delivery and performance of this Agreement by the Stockholder and the Company and the
consummation by the Stockholder and the Company of the transactions contemplated hereby have been duly authorized by all requisite
corporate action on the part of the Stockholder and the Company, respectively. This Agreement has been duly executed and delivered
by the Stockholder and the Company, and assuming due authorization, execution and delivery by Buyer and Parent, this Agreement
constitutes a valid and binding obligation of the Stockholder and the Company enforceable against the Stockholder and the Company
in accordance with its terms, except to the extent that the enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar Laws, or by equitable principles relating to the rights of creditors generally.

 

3.5       No
Conflict; Governmental Consents. The execution, delivery and performance of this Agreement by the Stockholder and the
Company do not and will not:

 

(a)       violate,
conflict with or result in the breach of any provision of the charter, articles of organization, bylaws or operating agreement
of the Company or the Stockholder, as applicable;

 

(b)       conflict
with or violate in any material respect any Law or Order applicable to the Stockholder or, to the Knowledge of the Stockholder,
the Company; or

 

    -19- 

     

    

 

(c)       conflict
with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would
become a default) under, require any consent under, or give to others any rights of termination, amendment, acceleration, suspension,
revocation or cancellation of, or result in the creation of any Encumbrance on any of the shares of Series A Preferred Stock owned
by the Stockholder or on any of the other assets or properties of the Stockholder pursuant to, any note, bond, mortgage, indenture,
license, permit, lease, sublease or other Contract to which the Stockholder is a party or by which any of the shares of Series
A Preferred Stock owned by the Stockholder or any of such other assets or properties is bound or affected, except as would not
reasonably be expected to result in a Material Adverse Effect on the Stockholder.

 

The execution, delivery and performance
of this Agreement by the Stockholder and, to the Knowledge of the Stockholder, the Company, do not and will not require any Approval
or Order of any Governmental Entity.

 

3.6       Additional
Stockholder Representations.

 

(a)       The
Stockholder represents that it is an “accredited investor” as such term is defined in Rule 501 of Regulation D (“Regulation
D”) promulgated under the Securities Act and that the Stockholder is able to bear the economic risk of an investment in the
Parent Shares. The Stockholder hereby acknowledges and represents that:

 

(i)       such
Stockholder has knowledge and experience in business and financial matters, prior investment experience, including investment in
securities that are non-listed, unregistered and/or not traded on a national securities exchange or the Stockholder has employed
the services of a “purchaser representative” (as defined in Rule 501 of Regulation D), attorney and/or accountant to
read all of the documents furnished or made available by the Parent to the Stockholder to evaluate the merits and risks of such
an investment on the Stockholder’s behalf;

 

(ii)       the
Stockholder recognizes the highly speculative nature of this investment; and

 

(iii)       the
Stockholder is able to bear the economic risk that the Stockholder hereby assumes.

 

(b)       The
Stockholder understands that the Parent Shares have not been registered under the Securities Act by reason of a claimed exemption
under the provisions of the Securities Act that depends, in part, upon such Stockholder’s investment intention. In connection
with the foregoing, the Stockholder hereby represents that the Stockholder is purchasing the Parent Shares for the Stockholder’s
own account for investment and not with a view toward the resale or distribution to others. The Stockholder, if an entity, further
represents that it was not formed for the purpose of purchasing the Parent Shares. The Stockholder understands and hereby acknowledges
that the Company is under no obligation to register any of the Parent Shares under the Securities Act or any state securities or
“blue sky” laws.

 

    -20- 

     

    

 

(c)       The
Stockholder and the Company on behalf of each other stockholder of the Company, consents to the placement of a legend on any certificate
or other document evidencing the Parent Shares that such Parent Shares have not been registered under the Securities Act or any
state securities or “blue sky” laws and setting forth or referring to the restrictions on transferability and sale
thereof contained in this Agreement. The Stockholder and the Company are aware that the Parent will make a notation in its appropriate
records with respect to the restrictions on the transferability of such Parent Shares. The legend to be placed on each certificate
shall be in form substantially similar to the following:

 

“[NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN][THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED
BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY
BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES

 

3.7       Taxes.
During the period beginning on the date of inception through and including the Closing Date (such period, the “Tax Period”):

 

(a)       All
Tax Returns required to be filed by or with respect to the Company in respect of the Tax Period have been timely filed, and, to
the Knowledge of the Stockholder, all such Tax Returns are complete and correct in all material respects. The Company has paid
(or there has been paid on its behalf) all Taxes, whether shown on any Tax Returns, that are due from or with respect to it for
the periods covered by such Tax Returns and have made all required estimated payments of Tax sufficient to avoid any penalties
for underpayment.

 

(b)       To
the Knowledge of the Stockholder, no claim has been made, in respect to the Tax Period, by an authority in a jurisdiction where
the Company does not file a Tax Return that the Company may be subject to taxation in that jurisdiction and no basis exists for
any such claim. There is no proposed assessment and no audit, examination, suit, investigation or similar proceeding pending or
to the Knowledge of the Stockholder, proposed or threatened with respect to Taxes of the Company for the Tax Period and, to the
Knowledge of the Stockholder, no basis exists therefore.

 

    -21- 

     

    

 

3.8       Litigation;
Compliance with Laws.

 

(a)       To
the Knowledge of the Stockholder, there is no Action pending or threatened against or affecting any of the Company or its respective
assets.

 

(b)       Neither
the Stockholder nor the Company are:

 

(i)       in
violation of any applicable Law; or

 

(ii)       subject
to or in default with respect to any Order to which any of them, or any of their respective properties or assets (owned or used),
is subject.

To the Knowledge of the Stockholder,
the Company, since inception, has been in compliance with each Law that is or was applicable to it or use of any of its assets,
except as would not reasonably be expected to result in a Material Adverse Effect on the Company.

 

(c)       Neither
the Stockholder nor, to the Knowledge of the Stockholder, the Company, has received either in its own capacity or as a representative
of the Company, since inception, any notice or other communication (whether oral or written) from any Governmental Entity or any
other Person regarding:

 

(i)       any
actual, alleged, possible, or potential violation of, or failure to comply with, any Law; or

 

(ii)       any
actual, alleged, possible, or potential obligation on the part of the Company to undertake, or to bear all or any portion of the
cost of, any remedial action of any nature, except as would not reasonably be expected to result in a Material Adverse Effect on
the Company.

 

3.9       No
Brokers or Finders. No agent, broker, finder, or investment or commercial banker, or other Person or firm engaged by or acting
on behalf of the Stockholder, the Company, or any of their respective Affiliates, in connection with the negotiation, execution
or performance of this Agreement or the transactions contemplated by this Agreement, is or will be entitled to any brokerage or
finder’s or similar fee or other commission as a result of this Agreement or such transactions.

 

3.10       Mining
Law Compliance. To the Knowledge of the Stockholder, the Company (and its subsidiaries) is compliant with applicable state
and federal mining statutes, including the General Mining Law of 1872, as amended, the Nevada Revised Statutes and the Wyoming
Statutes. The Company represents and warrants that:

 

    -22- 

     

    

 

(a)       the
unpatented mining claims which are a part of the Properties have been located and appropriate record made thereof in compliance
with the laws of the United States and the laws of the State of Nevada;

 

(b)       the
claim maintenance fees have been paid for the year beginning on September 1 prior to the effective date of this Agreement and appropriate
record made thereof;

 

(c)       there
is no claim of adverse mineral rights affecting the Properties;

 

(d)       subject
to the paramount interest of the United States, the Company controls the full undivided possessory title to the unpatented mining
claims which are a part of the Properties; and

 

(e)       the
Company’s possessory right to the unpatented mining claims which are a part of the Properties is free and clear of all liens
and encumbrances.

 

3.11       Intellectual
Property Rights. To the Knowledge of the Stockholder, the Company does not own or have the
rights to any Intellectual Property.

 

3.12       Environmental
Matters.

 

(a)       To
the Company’s Knowledge, the Company is operating the Properties in material compliance with all applicable Environmental
Laws;

 

(b)       The
Company has not, and, to Company’s Knowledge, no other person has, used, stored, disposed of, released or managed (whether
by act or omission) any Hazardous Substances in a manner that could reasonably be expected to result in the owner or operator of
the Properties incurring any material liability or expense;

 

(c)       The
Company has not received any written notice from any governmental body that the Company is in violation of any Environmental Law
in connection with its operation of the Properties; and

 

(d)       The
Company is not subject to any pending or, to the Company’s Knowledge, threatened Action in connection with the Properties
involving a demand for damages, injunctive relief, penalties or other potential liability with respect to a violation of any Environmental
Law or release of any Hazardous Substance.

 

3.13       Mine
Safety Disclosures. The Company represents and warrants that it has not received any citations,
orders, or notices from the Mine Safety and Health Administration or the Federal Mine Safety and Health Review Commission which
would, if the Company were a publicly reporting corporation, require disclosure under Item 104 of Regulation S-K.

 

    -23- 

     

    

 

3.14       Indebtedness
and Other Contracts. Except as set forth on Schedule 3.14 annexed hereto, neither the Company
nor any of its subsidiaries:

 

(a)       has
any outstanding Indebtedness (as defined below);

 

(b)       is
a party to any contract, agreement or instrument, the violation of which, or default under which, by the other party(ies) to such
contract, agreement or instrument could reasonably be expected to result in a Material Adverse Effect;

 

(c)       is
in violation of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness, except where
such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect; or

 

(d)       is
a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the
Company’s officers, has or is expected to have a Material Adverse Effect. 

 

For purposes of this Agreement: 

(a)       “Indebtedness”
of any Person means, without duplication:

 

(i)       all
indebtedness for borrowed money;

 

(ii)       all
obligations issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation,
“capital leases” in accordance with generally accepted accounting principles) (other than trade payables entered into
in the ordinary course of business);

 

(iii)       all
reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments;

 

(iv)       all
obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection
with the acquisition of property, assets or businesses;

 

(v)       all
indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either
case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies
of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property);

 

(vi)       all
monetary obligations under any leasing or similar arrangement which, in connection with generally accepted accounting principles,
consistently applied for the periods covered thereby, is classified as a capital lease;

 

    -24- 

     

    

 

(vii)       all
indebtedness referred to in clauses (i) through (vi) above secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any mortgage, claim, lien, tax, right of first refusal, pledge, charge, security
interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any Person, even
though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness; and

 

(viii)       all
Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (i) through (vii)
above.

 

(b)       “Contingent
Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect
to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring
such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will
be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will
be protected (in whole or in part) against loss with respect thereto.

 

3.15       Disclosure.
To the Knowledge of the Stockholder all factual information (taken as a whole) heretofore or contemporaneously requested by Parent
or Buyer (or their financial advisor) and furnished to Parent or Buyer by or on behalf of Stockholder and the Company or their
representatives for purposes of or in connection with this Agreement or the transactions contemplated herein was materially true
and accurate on the date as of which such information is dated and the Stockholder does not believe such factual information is
materially incomplete in any respect. By way of example, and not as a limitation, Stockholder has no reason to believe the information
contained in the preliminary economic report on the Copper King Project dated August 24, 2012 and undertaken by Mine Development
Associates is not true and correct in all material respects as of the original date of issuance of such report.

 

3.16       Statements;
Proxy Statement/Prospectus. None of the information supplied or to be supplied by the Company
or the Stockholder for inclusion or incorporation by reference in the S-4 (as defined herein) will at the time the S-4 becomes
effective under the Securities Act:

 

(a)       contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order
to make the statements therein not misleading; and

 

    -25- 

     

    

 

(b)       the
proxy statement/prospectus to be sent to the stockholders of the Parent in connection with the meetings of the Parent’s stockholders
(the “Parent’s Stockholder Meeting”) to consider the adoption of this Agreement (such proxy statement/prospectus
as amended or supplemented is referred to herein as the “Proxy Statement/Prospectus”) shall not, on the date the Proxy
Statement/Prospectus is first mailed to the Parent’s stockholders, at the time of the Parent’s Stockholder Meeting
and at the Closing Date, contain any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not false
or misleading, or omit to state any material fact necessary to correct any statement in any earlier communication with respect
to the solicitation of proxies for the Parent’s Stockholder Meeting which has become false or misleading.

 

The Proxy Statement/Prospectus will
comply as to form in all material respects with the provisions of the Exchange Act and the rules and regulations thereunder. If
at any time prior to the Closing Date, any event relating to the Company or any of its affiliates, officers or directors should
be discovered by the Company which should be set forth in an amendment to the S-4 or a supplement to the Proxy Statement/Prospectus,
the Company shall promptly inform Parent.

 

 

ARTICLE
IV

INTENTIONALLY OMITTED

 

 

ARTICLE
V

REPRESENTATIONS AND WARRANTIES OF PARENT

 

Parent and Buyer jointly and severally
represent and warrant to the Company and the Stockholder as of the Closing Date and agree as follows:

 

5.1       Organization
and Authority of Parent and Buyer.

 

(a)       Parent
is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and the execution,
delivery and performance of this Agreement by the Parent and the consummation by Parent of the transactions contemplated hereby
have been duly authorized by all requisite action on the part of Parent. The Parent Shares to be issued to the stockholders of
the Company as part of the Merger Consideration have been duly authorized by all necessary corporate action on the part of Parent
and, upon receipt of the Shares from the stockholders of the Company, if such Shares are certificated, at the Effective Time, will
be validly issued, fully paid and non-assessable. This Agreement has been duly executed and delivered by Parent, and assuming due
authorization, execution and delivery by the Stockholder, the Company and Buyer, this Agreement constitutes a valid and binding
obligation of Parent enforceable against Parent in accordance with its terms, except to the extent that the enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws, or by equitable principles relating to the rights
of creditors generally.

 

    -26- 

     

    

 

(b)       Buyer
is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and the execution,
delivery and performance of this Agreement by the Buyer and the consummation by Buyer of the transactions contemplated hereby have
been duly authorized by all requisite action on the part of Buyer. This Agreement has been duly executed and delivered by Buyer,
and assuming due authorization, execution and delivery by the Stockholder, the Company and the Parent, this Agreement constitutes
a valid and binding obligation of Buyer enforceable against Buyer in accordance with its terms, except to the extent that the enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws, or by equitable principles relating to the
rights of creditors generally.

 

(c)       Buyer
does not own, operate or lease any properties and was created solely for purposes of the transactions contemplated by this Agreement.
The Buyer has delivered to the Stockholder and the Company complete and correct copies of the charter and bylaws of the Buyer as
in effect as of the Closing Date.

 

(d)       The
Parent has good title to, and is the sole record and beneficial owner of, 100% of the issued and outstanding shares of the Buyer
and such shares are free and clear of any and all Encumbrances. The Parent is not a party to any voting trusts, stockholder agreements,
proxies or other agreements or understandings in effect with respect to the voting or transfer of any of the shares of the Buyer
owned by the Parent other than such which will terminate upon the consummation of the transactions contemplated by this Agreement.

 

5.2       Capitalization.

 

(a)       The
authorized capital stock of the Parent consists of 54,000,000 shares of Common Stock and 5,000,000 shares of preferred stock. As
of the date hereof, after giving effect to the Merger and the consummation of the transactions contemplated hereby, the capitalization
of the Parent will be as set forth on Schedule 5.2 hereof. All of the outstanding shares of Common Stock and all of the
outstanding shares of Parent’s preferred stock have been duly authorized and validly issued and are fully paid and non-assessable.
None of the outstanding shares of Common Stock or Parent preferred stock were issued in violation of any preemptive rights or is
subject to any preemptive rights of any Person. No legend or other reference to any Encumbrance will appear upon any certificate
representing the Merger Consideration, except for customary legends with respect to transfer restrictions for restricted securities
under federal and state securities Law.

 

(b)       Except
as set forth in the Parent’s filings with the SEC, there are no outstanding options, warrants, agreements, conversion rights,
preemptive rights or other rights to subscribe for or purchase from the Parent, or any plans, contracts or commitments providing
for the issuance of, or the granting of rights to acquire:

 

    -27- 

     

    

 

(i)       any
capital stock or other ownership interests of the Parent, including, but not limited to the Parent Shares; or

 

(ii)       any
securities convertible into or exchangeable for any such capital stock or other ownership interests.

 

Except as set forth in the Parent’s
filings with the SEC, there are no outstanding contractual obligations or plans of the Parent to transfer, issue, repurchase, redeem
or otherwise acquire any outstanding shares of capital stock or other ownership interests of the Parent. There are no outstanding
bonds, debentures, notes or other indebtedness of Parent having the right to vote (or convertible into, or exchangeable for, securities
having the right to vote) on any matter on which holders of shares of Parent common stock may vote.

 

(c)       The
authorized capital stock of the Buyer consists of Three Thousand (3,000) shares of common stock and no shares of preferred stock.
As of the date hereof, there are One Thousand (1,000) shares of common stock outstanding, 100% of which are held by the Parent.
All of the shares of Buyer common stock, have been duly authorized and validly issued and are fully paid and non-assessable. None
of the outstanding shares of Buyer’s common stock, were issued in violation of any preemptive rights or is subject to any
preemptive rights of any Person.

 

(d)       There
are no outstanding options, warrants, agreements, conversion rights, preemptive rights or other rights to subscribe for or purchase
from the Buyer, or any plans, contracts or commitments providing for the issuance of, or the granting of rights to acquire:

 

(i)       any
capital stock or other ownership interests of the Buyer, including, but not limited to the Buyer shares; or

 

(ii)       any
securities convertible into or exchangeable for any such capital stock or other ownership interests.

 

There are no outstanding contractual
obligations or plans of the Buyer to transfer, issue, repurchase, redeem or otherwise acquire any outstanding shares of capital
stock or other ownership interests of the Buyer. There are no outstanding bonds, debentures, notes or other indebtedness of Buyer
having the right to vote (or convertible into, or exchangeable for, securities having the right to vote) on any matter on which
holders of shares of Buyer common stock may vote.

 

    -28- 

     

    

 

5.3       Litigation;
Compliance with Laws.

 

(a)       To
the Knowledge of the Buyer, there is no Action pending or threatened against or affecting the Buyer or any of its assets.

 

(b)       Except
as set forth in the Parent’s filings with the SEC, to its Knowledge, neither the Parent nor the Buyer is in violation of
any applicable Law or, to the Knowledge of the Parent or the Buyer, subject to or in default with respect to any Order to which
it, or its properties or assets (owned or used), is subject except as would not reasonably be expected to result in a Material
Adverse Effect on the Parent or Buyer, as the case may be. To the Knowledge of the Buyer, at all times since inception, Buyer has
been in compliance with each Law that is or was applicable to it or to the conduct or operation of its business or the ownership
or use of any of its assets, except as would not reasonably be expected to result in a Material Adverse Effect on the Buyer.

 

(c)       To
the Knowledge of the Parent and except as may be set forth in the Parent’s filings with the SEC, there is no Action pending
or threatened against or affecting the Parent or any of its assets.

 

5.4     No Conflict; Governmental
Consents(a)     .

 

(a)       The
execution, delivery and performance of this Agreement by the Parent and Buyer do not and will not:

 

(i)       violate,
conflict with or result in the breach of any provision of the charter or by-laws of the Parent or Buyer;

 

(ii)       conflict
with or violate in any material respect any Law or Order applicable to any of the Parent or Buyer; or

 

(iii)       conflict
with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would
become a default) under, require any consent under, or give to others any rights of termination, amendment, acceleration, suspension,
revocation or cancellation of, or result in the creation of any Encumbrance on any of the assets or properties of the Parent or
Buyer pursuant to, any note, bond, mortgage, indenture, license, permit, lease, sublease or other Contract to which the Parent
or Buyer is a party or by which any of its assets or properties is bound or affected, except as would not reasonably be expected
to result in a Material Adverse Effect on the Parent or Buyer.

 

    -29- 

     

    

 

(b)       Except
for the (i) listing of the Common Consideration and the shares of Common Stock issuable upon conversion of the Preferred Consideration
with The NASDAQ Capital Market, if required (which includes Stockholder and NASDAQ Approvals), and (ii) filing and effectiveness
of a Form S-4 Registration Statement (the “S-4”) with the SEC in accordance with the Securities Act, the execution,
delivery and performance of this Agreement by the Parent does not and will not require any Approval or Order of any Governmental
Entity.

 

5.5       SEC
Reporting. Parent has filed all forms, reports, statements, certifications and other documents (including all exhibits,
amendments and supplements thereto) required to be filed by it with the SEC pursuant to the Exchange Act or other applicable United
States federal securities Laws. None of the Parent’s subsidiaries is required to file periodic reports with the SEC. To the
Parent’s Knowledge, no investigation by the SEC with respect to the Parent or any of its subsidiaries is pending or threatened.

 

5.6       Officer
and Directors. To the Parent’s Knowledge, none of the officers or directors of Parent or any of its subsidiaries:

 

(i)       has
been convicted of any felony or misdemeanor or named as a subject of a criminal proceeding within the past ten (10) years (excluding
traffic violations and other minor offenses but including in connection with the purchase or sale of any security, involving the
making of a false filing with the SEC, or arising out of the conduct of the business of an underwriter, broker, dealer, municipal
securities dealer, or investment adviser);

 

(ii)       is
subject to any order, judgment, or decree of any court of competent jurisdiction temporarily or preliminarily enjoining or restraining,
or is subject to any order, judgment, or decree of any court of competent jurisdiction, entered within the past five (5) years,
permanently enjoining or restraining such person from engaging in or continuing any conduct or practice in connection with the
purchase or sale of any security, involving the making of a false filing with the SEC, or arising out of the conduct of the business
of an underwriter, broker, dealer, municipal securities dealer, or investment adviser;

 

(iii)       is
subject to an order of the SEC entered pursuant to Sections 15(b), 15B(a), or 15B(c) of the Exchange Act, or Section 203(e) or
(f) of the Investment Advisers Act of 1940;

 

(iv)       is
suspended or expelled from membership in, or suspended or barred from association with a member of, a national securities exchange
registered under Section 6 of the Exchange Act or a national securities association registered under Section 15A of the Exchange
Act for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade; or

 

    -30- 

     

    

 

(v)       is
subject to a United States Postal Service false representation order entered under 39 U.S.C. Section 3005 within the past five
(5) years or is subject to a restraining order or preliminary injunction entered under 39 U.S.C. Section 3007 with respect to conduct
alleged to have violated 39 U.S.C. Section 3005.

 

5.7       No
Brokers or Finders. Except as set forth on Schedule 5.7, no agent, broker, finder, or investment or commercial banker, or other
Person or firm engaged by or acting on behalf of any of the Parent, the Buyer, or any of their respective Affiliates, in connection
with the negotiation, execution or performance of this Agreement or the transactions contemplated by this Agreement, is or will
be entitled to any brokerage or finder’s or similar fee or other commission as a result of this Agreement or such transactions.

 

5.8       Disclosure.
To the Knowledge of the Parent and the Buyer all factual information (taken as a whole) heretofore or contemporaneously requested
by Stockholder or the Company and furnished to the Stockholder or the Company by or on behalf of the Parent or the Buyer or its
representatives for purposes of or in connection with this Agreement or the transactions contemplated herein was materially true
and accurate on the date as of which such information is dated and neither the Parent nor the Buyer believes such factual information
is materially incomplete in any respect.

 

 

ARTICLE
VI

ADDITIONAL AGREEMENTS

 

6.1       Assumption
of Risk by Parent and Buyer; No Reliance.

 

(a)       Each
of Parent and Buyer, on behalf of themselves and their respective officers, directors, stockholders and affiliates hereby acknowledge
and agree that:

 

(i)       it
has had sufficient opportunity to conduct and has conducted a thorough due diligence investigation of the Company and the Properties
prior to the date hereof;

 

(ii)       the
representations and warranties set forth in Article III are, subject to the limited recourse set forth in Articles VII and VIII,
for informational purposes only, and, except as set forth in Articles VII and VIII, shall not give rise to any Claim in any manner
(including, without limitation, breach of contract); and

 

    -31- 

     

    

 

(iii)       it
is sophisticated in business transactions of the nature contemplated by this Agreement and understands the risks of engaging in
a such a transaction with limited representations and warranties made by the Stockholder and limited recourse for breach thereof.

 

(b)       
Each of Parent and Buyer, on behalf of themselves and their respective officers, directors, stockholders and affiliates, hereby
acknowledge and agree that:

 

(i)       neither
the Company nor the Stockholder or their respective Affiliates or representatives has made or makes any representation or warranty,
express or implied, relating to the Company or the Properties or assets or otherwise except for those representations and warranties
expressly set forth in Article III; and

 

(ii)       no
Person has been authorized by the Stockholder to make any representation or warranty relating to the Company or its assets or otherwise
in connection with the Merger, and if made, such statement must not be relied upon as having been authorized by the Company or
the Stockholder.

 

6.2       Notices
and Consents. Each of the Stockholder and Parent agree that, in the event any Approval necessary
to preserve the Company’s assets (including the Properties) is not obtained prior to the Closing, the Stockholder will, subsequent
to the Closing, on the reasonable request of Parent and at Parent’s sole cost and expense, cooperate with the Surviving Entity
and Parent in attempting to obtain such Approval as promptly thereafter as practicable. 

 

6.3       Taking
of Necessary Action; Further Action. If, at any time after the Closing Date, any further action is necessary or desirable
to carry out the purposes of this Agreement and to vest the Surviving Entity with full right, title and possession to all assets
(including the Properties), property, rights, privileges, powers and franchises of the Company, the officers and directors of the
Surviving Entity are fully authorized in the name of the Surviving Entity or otherwise to take and will take, all such actions
at Parent’s expense.

 

6.4       Stockholder’s
Obligation to Close. The Stockholder’s obligation to close the transaction set forth
in this Agreement is expressly made subject to the satisfaction of the following conditions: 

 

(a)       Parent
shall have obtained Stockholder and NASDAQ Approvals for the issuance of the Merger Consideration and the consummation of the Merger;
and

 

(b)       Receipt
by stockholders of the Company of the Non-Escrow Shares and receipt by the Escrow Agent of the Escrow Shares.

 

    -32- 

     

    

 

6.5       Conditions
Precedent. The Closing of the Merger and related transactions or actions contemplated by
this Agreement are expressly subject to and contingent upon the satisfaction of the following conditions precedent (the “Conditions
Precedent”): 

(a)       Parent
shall have obtained Stockholder and NASDAQ Approvals;

 

(b)       Parent
shall have received approval from the NASDAQ Capital Market of an additional listing application covering the Merger Consideration,
if required;

 

(c)       The
filing by the Parent of the Schedule 14f-1;

 

(d)       The
Company shall have closed the Keystone Acquisition;

 

(e)       The
Company shall have closed the Company Financing and received at least Three Million Dollars ($3,000,000) in net proceeds from the
sale of its securities;

 

(f)       Delivery
of a fairness opinion issued to Parent relating to the Company, the Properties and the Merger Consideration in customary form;

 

(g)       Parent
shall have obtained the requisite approval of holders of its voting capital to increase the number of authorized shares of its
Common Stock to Two Hundred Million (200,000,000) shares from Fifty Four Million (54,000,000) shares;

 

(h)       Immediately
preceding the Closing Date, the Parent shall not have more than Four Million Nine Hundred Forty Five Thousand One Hundred Eighty
Two (4,945,182) shares of Common Stock and equivalents outstanding on a fully diluted basis to include the issuance of a one-time
special dividend for holders of Preferred Series D stock as set forth on Schedule 6.5(h) hereto;

 

(i)       Immediately
preceding the Closing Date, the Company shall not have more than Forty Eight Million Six Hundred Fifteen Thousand Two Hundred Eighty
Nine (48,615,289) shares of Common Stock and equivalents outstanding on a fully diluted basis;

 

(j)       Immediately
preceding the Closing Date, except as set forth on Schedule 3.2 hereof, there shall not be any outstanding equity awards held by
any of the named executive officers, directors, consultants, service providers, placement agents, or employees of either the Company,
Parent or combined Company, or planned issuances thereof;

 

    -33- 

     

    

 

(k)       The
representations and warranties of the Company and the Stockholder contained in this Agreement shall have been true and correct
in all material respects on the date of this Agreement (except whether such representations are qualified by material or material
adverse effect, which shall be true and correct in all respects) and shall be true and correct as of the Closing Date as if made
on the Closing Date and the Company and the Stockholder shall have performed, satisfied and complied in all respects with the covenants,
agreements and conditions required to be performed, satisfied or complied with by the Company and the Stockholder in connection
with the consummation of the transactions contemplated by this Agreement at or prior to the Closing Date and the Company shall
deliver a certificate, executed by its Chief Executive Officer, dated as of the Closing Date, certifying that the foregoing is
true;

 

(l)       The
Board of Directors of Parent shall have declared as a special dividend a right entitling each stockholder as of the Record Date
(as defined below) to a proportionate ownership interest, record or beneficial, equal to their ownership interest in the Parent,
of the Parent Assets (as defined below) or the net proceeds therefrom, as, when and if the Board of Directors of the Parent elects
to divest such Parent Assets within eighteen (18) months of the Closing Date. The record date of such special dividend (the “Record
Date”) will be no less than five (5) business days prior to the Closing Date;

 

(m)       The
Company and/or Parent shall have made payment under those certain change in control or employment agreements for Officers of the
Parents set forth on Schedule 6.5(m) hereto in the amounts included in such Schedule; and,

 

(n)       The
SEC shall have declared the S-4 effective.  No stop order suspending the effectiveness of the S-4 or any part thereof
shall have been issued and no proceeding for that purpose, and no similar proceeding in respect of the Proxy Statement/Prospectus,
shall have been initiated or threatened in writing by the SEC.

 

6.6       Further
Assurances. Parent, Buyer and the Stockholder shall (and Parent shall cause the Surviving Entity to) provide reasonable
cooperation to each other and their professional auditors with respect to any audit, legal or tax inquiries or procedures following
the Closing Date including, without limitation, in order to permit Parent to have prepared, at its sole cost and expense, audited
financial statements as required for filing with the SEC.

 

6.7       Legal
Representation. Parent and Buyer, on the one hand, and the Company and the Stockholder, on
the other hand, hereto acknowledge that they have been represented by independent legal counsel in the preparation of this Agreement.
Parent, the Company, the Stockholder and Buyer each hereby explicitly waive any conflict of interest and other allegations that
it/they have not been represented by its own counsel.

 

    -34- 

     

    

 

6.8       Financial
Matters. At the Closing Date, all intercompany obligations recorded on the books and records
of the Parties, due and owing from the Company to Stockholder, or from Stockholder to the Company shall be cancelled. All bank
accounts of the Company shall be maintained and any balances on the date hereof shall be conveyed and transferred to Buyer and
the Surviving Entity by virtue of the Merger.

 

6.9       Company
Financial Statements. The Company shall, not later than 20 days after execution of this Agreement,
deliver to the Parent its financial statements for the prior two (2) fiscal years (or since inception) audited by a PCAOB firm
and unaudited financial statements for any interim period as well as pro forma financial statements of the post-Merger balance
sheet of the Parent and the Surviving Entity, on a consolidated basis, and such additional information as is required for the Parent’s
S-4 relating to the approval by the Parent’s stockholders of this Agreement, the Merger, the issuance of the Merger Consideration
and the transactions contemplated hereby and thereby and the related Current Reports on Form 8-K required in connection with the
Closing of the Merger.

 

6.10       Existing
Parent Assets. The Parties acknowledge that it may be in the best interests of both the Parent
and its stockholders that the Parent, after Closing of the Merger, divest itself of the existing pre-Merger assets which directly
support its memory products and solutions business.  These assets include computer memory products, design and engineering
services, contract and flexible manufacturing solutions, simulation labs, financial programs, buyback / trade-in / trade-up programs,
software tools and solutions, related intellectual property and customer lists.  It further includes but is not limited its
four business lines and associated brands and trademarks which support and provide complimentary solutions to the market (namely
Princeton Memory, Micro Memory Bank (MMB), MemoryStore.com, 18004Memory.com).  These are collectively referred to as the “Parent
Assets”.  The Parties agree that between the date hereof and the Closing Date they will consider this issue, determine
if in fact such a divestiture is in the best interests of the Parent and its stockholders, and review the most effective means
of undertaking such a divestiture, taking into account all legal, economic and tax considerations as are appropriate. The parties
further agree that in the event of any such divestiture, ownership of the Parent Assets, or the proceeds thereof, will be for the
benefit of the stockholder of the Parent prior to consummation of the Merger.

 

6.11       New
Report. Within twelve (12) months of the Closing Date, the Company, as the Surviving Company,
shall deliver to Parent the New Report.

 

6.12       S-4/Proxy
Statement/Prospectus.

 

(a)       As
promptly as practicable after the execution of this Agreement, the Parent shall prepare and file with the SEC the S-4, which shall
include a document or documents that will constitute:

 

    -35- 

     

    

 

(i)       the
prospectus forming part of the registration statement on the S-4; and

 

(ii)       the
Proxy Statement/Prospectus.  Parent shall use all commercially reasonable efforts to cause the S-4 to become effective
as promptly as practicable after the date hereof, and, prior to the effective date of the S-4, the parties hereto shall take all
action required under any applicable laws in connection with the Merger and the issuance of the Merger Consideration.

 

The Company shall provide promptly
to the Parent such information concerning its business and financial statements and affairs as may be required or appropriate for
inclusion in the Proxy Statement/Prospectus and the S-4, or in any amendments or supplements thereto, and cause its counsel and
auditors to cooperate with the Parent’s counsel and auditors in the preparation of the Proxy Statement/Prospectus and the
S-4.

 

(b)       As
promptly as practicable after the effective date of the S-4, the Proxy Statement/Prospectus shall be mailed to the stockholders
of the Parent. Parent shall cause the Proxy Statement/Prospectus to comply as to form and substance in all material respects with
the applicable requirements of:

 

(i)       the
Exchange Act;

 

(ii)       the
Securities Act; and

 

(iii)       the
rules and regulations of The NASDAQ Stock Market LLC.

 

Parent will notify the
Company promptly of the receipt of any:

 

(i)       comments
from the SEC or its staff or any other government officials;

 

(ii)       notice
that the S-4 has become effective;

 

(iii)       the
issuance of any stop order; or

 

(iv)       request
by the SEC or its staff or any other government officials for amendments or supplements to the S-4, the Proxy Statement/Prospectus
or for additional information and, except as may be prohibited by any Governmental Entity, will supply the Company with copies
of all correspondence between such Parent or any of its representatives, on the one hand, and the SEC or its staff or any other
government officials, on the other hand, with respect to the S-4, the Proxy Statement/Prospectus, the Agreement or any related
document or filing.  

 

    -36- 

     

    

 

Parent will cause all documents that
it is responsible for filing with the SEC or other regulatory authorities under this Section 6.12(b) to comply in all material
respects with all applicable requirements of law and the rules and regulations promulgated thereunder.

 

(c)       Each
of Company and the Parent shall promptly inform the other of any event which is required to be set forth in an amendment or supplement
to the Proxy Statement/Prospectus, the S-4 or any related filing or document and the Parent shall amend or supplement the Proxy
Statement/Prospectus to the extent required by law to do so. Parent shall advise the Company, promptly after it receives notice
thereof, of the time when the S-4 has become effective or any supplement or amendment has been filed, of the issuance of any stop
order, or of any request by the SEC for an amendment of the Proxy Statement/Prospectus or the S-4 or comments thereon and responses
thereto or requests by the SEC for additional information.

 

(d)       Parent
shall keep the S-4 continuously effective under the Securities Act until all securities covered by the S-4 have been sold, or may
be sold without restrictions pursuant to Rule 144, as determined by the counsel to the Parent pursuant to a written opinion letter
to such effect, addressed and acceptable to the Company’s transfer agent and the affected stockholder of the Company.

 

 

ARTICLE
VII

TAX MATTERS

 

7.1       Conveyance
Taxes. Parent and Buyer shall pay and be solely responsible for any transfer or gains, sales, use, transfer, value added,
stock transfer, and stamp taxes, any transfer, recording, registration, and other fees, and any similar Taxes which become payable
in connection with the transactions contemplated by this Agreement, and shall file such applications and documents as shall permit
any such Tax to be assessed and paid on or prior to the Closing Date in accordance with any available pre-sale filing procedure.
Each party hereto shall execute and deliver all instruments and certificates necessary to enable the other party or parties to
comply with the foregoing.

 

7.2       Pre-Closing
Tax Returns. The Company shall timely prepare and file all Tax Returns of the Company required to be filed by the Company
with respect to a period ending on or before the Closing Date (each such Tax Return, a “Pre-Closing Tax Return”).
Parent and Buyer shall cause the Company to execute and timely file any Pre-Closing Tax Return prepared in accordance with this
Section 7.2 that will be filed after the Closing Date. The cost of preparing all Pre-Closing Tax Returns shall be paid by the Company
and/or the Stockholder. All such Pre-Closing Tax Returns shall be prepared and filed in a manner consistent with the past practice
of the Company unless otherwise required by applicable Law. The Stockholder, the Buyer and the Parent will cooperate in good faith
in connection with the exchange of information necessary for the preparation of all Pre-Closing Tax Returns.

 

    -37- 

     

    

 

7.3       Straddle
Period. The Parent and Buyer shall timely prepare or cause to be prepared and file or cause to be filed any Tax Returns
of the Company required to be filed by the Company, as the case may be, with respect to a period beginning before the Closing Date
and ending after the Closing Date (a “Straddle Period”) relating to Taxes a portion of which is owed by the
Company and the Stockholder with respect to any pre-closing tax period or portion thereof (“Straddle Period Returns”).
All Straddle Period Returns shall be prepared and filed in a manner consistent with the past practice of the Company unless otherwise
required by applicable Law. The Stockholder shall have the right to review and comment on each Straddle Period Return prior to
the filing of such return. The Stockholder, Parent and the Buyer agree to consult and resolve in good faith any issues and comments
arising as a result of the review of each Straddle Period Return, and mutually to consent to filing as promptly as possible to
each Straddle Period Return. The cost of preparing all Straddle Period Returns shall be paid by the Parent or the Buyer.

 

7.4       Last
Day of Taxable Period. If the Company is permitted under any applicable foreign, state or local income tax Law to treat
the Closing Date as the last day of a taxable period of the Company, the Stockholder and the Parent and Buyer shall treat (and
cause their respective Affiliates to treat) the Closing Date as the last day of such taxable period (i.e., a deemed closing
of the books for Tax purposes). For all purposes under this Agreement, in the case of Taxes that are payable with respect to any
Straddle Period, the portion of any such Tax that is allocable to the portion of the period ending on the close of the Closing
Date shall be, in the case of Taxes that are based upon or related to income or receipts, be equal to the amount which would be
payable if the taxable year ended on the Closing Date.

 

7.5       Tax
Cooperation. The Stockholder, the Parent and the Buyer shall, upon written request of the other:

 

(a)       each
provide the other with such assistance as may be reasonably requested by any of them in connection with the preparation of any
Tax Return, audit, or other examination by any taxing authority or judicial or administrative proceedings relating to liability
for Taxes or such returns;

 

(b)       each
retain and provide the other with any records or other information that may be relevant to such Tax Returns, audit or examination,
proceeding, or determination; and

 

(c)       each
provide the other with any final determination of any such audit or examination, proceeding, or determination that affects any
amount required to be shown on any such Tax Returns.

 

    -38- 

     

    

 

Without limiting the generality of
the foregoing, the Buyer and Parent shall retain until the applicable statues of limitations (including any extensions) have expired,
copies of all Pre-Closing Tax Returns and Straddle Period Returns, supporting work schedules, and other records or information
that may be relevant to such returns, and shall not destroy or otherwise dispose of any such records without first providing the
Stockholder with a reasonable opportunity to review and copy the same. Each party shall bear its own expenses in complying with
the foregoing provisions.

 

7.6       Required
Notification. The Buyer shall promptly notify the Stockholder in writing upon receipt by the Buyer or any of its Affiliates
of notice of any audits, examinations, adjustments or assessments relating to Taxes with respect to any Pre-Closing Tax Returns
and any Straddle Period Returns, and with respect to amounts which would be paid by the Stockholder or for which any of the Buyer
or its Affiliates may be entitled to receive indemnity under this Agreement (each, a “Tax Claim”). The Stockholder,
in its sole discretion, may contest such Tax Claim in any permissible forum and shall otherwise have the sole right at their sole
expense to direct, control and settle any administrative or judicial proceedings relating to such Tax Claim, provided that:

 

(a)       the
Stockholder notifies the Buyer in writing within twenty (20) days (or if a response to such Tax Claim is required within thirty
(30) days and the Internal Revenue Service (or any other applicable state or local tax authority) refuses to grant an extension
of at least ten (10) days, fifteen (15) days; provided that the Buyer shall be required to use reasonable efforts to obtain such
an extension) of the Buyer's notification of the Stockholder of such Tax Claim of their intent to exercise their right to direct,
control, and settle such Tax Claim;

 

(b)       the
Buyer shall be entitled to participate at its sole expense in such administrative or judicial proceedings; and

 

(c)       to
the extent any settlement of any such proceeding is reasonably expected to increase any Tax to the Buyer or its Affiliates in respect
of any Tax not indemnified under this Agreement by the Stockholder at the time of such settlement, the Stockholder may not settle
any such proceeding without the prior written consent of the Buyer.

 

 

ARTICLE
VIII

INDEMNIFICATION

 

8.1       Obligations
of Stockholder.

 

(a)       Indemnification
by Stockholder. Subject to the limitations set forth this Section 8.1 and otherwise in this Article VIII, the Stockholder
(the “Stockholder Indemnifying Party”), agree to indemnify and hold harmless Parent, the Surviving Entity and
their respective directors, officers and Affiliates and their successors and assigns (each a “Parent Indemnified Party”)
from and against any and all Losses of the Parent Indemnified Parties, to the extent directly or indirectly resulting or arising
from or based upon:

 

    -39- 

     

    

 

(i)       breach
of any representation or warranty set forth in Article III; and

 

(ii)       all
Taxes to the extent resulting from or relating to the ownership, management or use of and the operation of the Company prior to
and including the Closing Date.

 

(b)       Intentionally
Omitted.

 

(c)       Limitations
on Liability. The obligations of the Stockholder under this Section 8.1 shall be subject to the following limitations:

 

(i)       The
Stockholder shall not have any liability to any Parent Indemnified Party with respect to Losses arising out of any of the matters
referred to in Section 8.1(a), until such time as the amount of all such liability shall collectively exceed $10,000 (the “Threshold”),
whereupon the Losses exceeding the Threshold shall be payable by the Stockholder.

 

(ii)       Parent
waives, on behalf of itself and any Parent Indemnified Party, any right to multiply actual damages or recover consequential, indirect,
special, punitive or exemplary damages (including, without limitation, damages for lost profits or loss of business opportunity)
arising in connection with or with respect to the indemnification provisions hereof or any right to recovery from any source other
than the Escrow Shares. For the avoidance of doubt, the Stockholder’s indemnification obligation is limited to the
Escrow Shares.

 

(iii)       
In no event shall the Stockholder’s aggregate liability to any Indemnified Party under Section 8.1 exceed the after
tax amount of such Claim and all Claims shall be net of any insurance proceeds reasonably expected to be received in respect of
Losses subject to such Claim. The Parent Indemnified Parties shall use all reasonable efforts to collect any amounts available
under applicable insurance policies with respect to Losses subject to a Claim.

 

8.2       Obligations
of Parent. Parent, Buyer and the Surviving Entity (collectively, the “Parent Indemnifying Parties”)
agree to indemnify and hold harmless the Stockholder and its agents, representatives and Affiliates and its successors and assigns
(each, a “Stockholder Indemnified Party”) from and against any and all Losses of the Stockholder Indemnified
Party, directly or indirectly, as a result of, or based upon or arising from:

 

(a)       the
ownership, management and operation of the Company and the Surviving Entity after the Closing Date, except:

 

    -40- 

     

    

 

(i)       to
the extent any such Losses are subject to indemnification by the Stockholder pursuant to Section 8.1; or

 

(ii)       to
the extent any such Losses are the result of fraud committed by the Stockholder; and

 

(b)       Buyer
shall not have any liability to the Stockholder Indemnified Party with respect to Losses arising out of any of the matters referred
to in Section 8.2, until such time as the amount of all such liability shall collectively exceed the Threshold, whereupon the Losses
exceeding the Threshold shall be payable by Buyer. Also, in no event shall Buyer’s aggregate liability under Section 8.2
exceed the after-tax amount of such Claims.

 

8.3       Procedure.
A Stockholder Indemnified Party or a Parent Indemnified Party (each, an “Indemnified Party”) shall give the
Parent Indemnifying Party or Stockholder Indemnifying Party (each, an “Indemnifying Party”), as applicable,
notice (a “Claim Notice”) of any matter which an Indemnified Party has determined has given or could reasonably
give rise to a right of indemnification under this Agreement (a “Claim”), within forty-five (45) days of such
determination; provided, however, that any failure of the Indemnified Party to provide such Claim Notice shall not release the
Indemnifying Party from any of its obligations under this Article VIII except to the extent the Indemnifying Party is materially
prejudiced by such failure and shall not relieve the Indemnifying Party from any other obligation or liability that it may have
to any Indemnified Party otherwise than under this Article VIII except to the extent the Indemnifying Party is materially prejudiced
by such failure. Upon receipt of the Claim Notice, the Indemnifying Party shall be entitled to assume and control the defense of
such Claim at its expense if it gives notice of its intention to do so to the Indemnified Party within ten (10) Business Days of
the receipt of such Claim Notice from the Indemnified Party; provided, however, that:

 

(a)       Indemnified
Party must approve of the selection of legal counsel by Indemnifying Party, which approval shall not be unreasonably withheld,
delayed or conditioned; and

 

(b)       if
there exists or is reasonably likely to exist a conflict of interest that would make it inappropriate in the judgment of the Indemnified
Party, in its reasonable discretion, for the same counsel to represent both the Indemnified Party and the Indemnifying Party, then
the Indemnified Party shall be entitled to retain its own counsel, in each jurisdiction for which the Indemnified Party determines
counsel is required, at the expense of the Indemnifying Party.

 

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In the event the Indemnifying Party
exercises the right to undertake any such defense against any such Claim as provided above, the Indemnified Party shall cooperate
with the Indemnifying Party in such defense and make available to the Indemnifying Party, at the Indemnifying Party’s expense,
all witnesses, pertinent records, materials and information in the Indemnified Party’s possession or under the Indemnified
Party’s control relating thereto as is reasonably required by the Indemnifying Party. Similarly, in the event the Indemnified
Party is, directly or indirectly, conducting the defense against any such Claim, the Indemnifying Party shall cooperate with the
Indemnified Party in such defense and make available to the Indemnified Party, at the Indemnifying Party’s expense, all such
witnesses, records, materials and information in the Indemnifying Party’s possession or under the Indemnifying Party’s
control relating thereto as is reasonably required by the Indemnified Party. No such Claim may be settled by the Indemnifying Party
without the prior written consent of the Indemnified Party, which consent shall not be unreasonably withheld, delayed or conditioned
so long as:

 

(a)       there
is no payment or other consideration required of the Indemnified Party; and

 

(b)       such
settlement does not require or otherwise involve any restrictions on the conduct of Business by the Indemnified Party.

 

8.4       Survival.

 

(a)       The
representations and warranties of the Stockholder and Parent contained in this Agreement, including the Exhibits and the Schedules
to this Agreement, shall survive the Closing until the first (1st) anniversary of the Closing Date. An Indemnifying Party is not
required to make any indemnification payment hereunder unless a Claim is delivered to the Indemnifying Party on or before 5:00
p.m. ET of the one year anniversary of the Closing Date, except with respect to Claims of fraud committed by the Indemnifying Party.

 

(b)       Any
matter as to which a Claim has been asserted by a Claim Notice to the other party that is pending or unresolved at the end of any
applicable limitation period shall continue to be covered by this Article VIII notwithstanding any applicable statute of limitations
(which the parties hereby waive) until such matter is finally terminated or otherwise resolved by the parties under this Agreement
or by a final, nonappealable judgment of a court of competent jurisdiction and any amounts payable hereunder are finally determined
and paid.

 

8.5       Notice
by Indemnifying Party. The Indemnifying Party agrees to notify the Indemnified Party of any liabilities, claims or misrepresentations,
breaches or other matters covered by this Article VIII upon discovery or receipt of notice thereof (other than such claims from
the Indemnified Party).

 

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8.6       Exclusive
Remedy. Other than rights to equitable relief, to the extent available under applicable law, each of the parties acknowledges
and agrees that the sole and exclusive remedy for any Losses arising from Claims described in Sections 8.1 and 8.2
or any other Claims of every nature arising in any manner in connection with this Agreement, shall be indemnification in accordance
with this Article VIII.

 

8.7       Mitigation.
Prior to the resolution of any Claim for indemnification under this Agreement, the Indemnified Party shall utilize all commercially
reasonable efforts, consistent with normal past practices and policies and good commercial practice, to mitigate such Losses.

 

8.8       Consequential
and Other Damages. No party shall be liable for any lost profits or consequential, special, punitive, indirect or incidental
Losses or damages in connection with this Agreement.

 

 

ARTICLE
IX

MISCELLANEOUS

 

9.1     Amendments; Waivers.
This Agreement and any schedule or exhibit attached hereto may be amended only by agreement in writing of all parties. No waiver
of any provision nor consent to any exception to the terms of this Agreement or any agreement contemplated hereby shall be effective
unless in writing and signed by the party to be bound and then only to the specific purpose, extent and instance so provided.

 

9.2       Exclusivity.
Subject to any fiduciary obligations applicable to its boards of directors, the Company shall not (and shall not cause or permit
any of their affiliates to) engage in any discussions or negotiations with any person or take any action that would be inconsistent
with this Agreement or the transactions contemplated hereby. The Company shall notify the Parent immediately if any person makes
any proposal, offer, inquiry, or contact with respect to any of the foregoing.

 

9.3       Intentionally
Omitted.

 

9.4       Schedules;
Exhibits; Integration. Each schedule and exhibit delivered pursuant to the terms of this Agreement shall be in writing
and shall constitute a part of this Agreement, although schedules need not be attached to each copy of this Agreement. This Agreement,
together with such schedules and exhibits, constitutes the entire agreement among the parties pertaining to the subject matter
hereof and supersedes all prior agreements and understandings of the parties in connection therewith.

 

    -43- 

     

    

 

9.5       Governing
Law. This Agreement, the legal relations between the parties and any Action, whether contractual or non-contractual,
instituted by any party with respect to any matter arising between the parties, including but not limited to matters arising under
or in connection with this Agreement, such as the negotiation, execution, interpretation, coverage, scope, performance, breach,
termination, validity, or enforceability of this Agreement, shall be governed by and construed in accordance with the internal
laws of the State of New York without reference to principles of conflicts of laws. Subject to the provisions of Section 9.17,
the parties hereto hereby irrevocably submit to the exclusive jurisdiction of the courts of the State of New York and the Federal
Courts of the United States of America located within the Eastern or Southern District of New York with respect to any matter arising
between the parties, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation
or enforcement hereof or thereof, that it is not subject thereto or that such action, suit or proceeding may not be brought or
is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement or any such document
may not be enforced in or by such courts, and the parties hereto irrevocably agree that all claims with respect to such action
or proceeding shall be heard and determined in such a New York State or Federal court. The parties hereby consent to and grant
any such court jurisdiction over the person of such parties and over the subject matter of such dispute and agree that mailing
of process or other papers in connection with any such action or proceeding in any manner as may be permitted by applicable Law,
shall be valid and sufficient service thereof. With respect to any particular action, suit or proceeding arising between the parties,
including but not limited to matters arising under or in connection with this Agreement, venue shall lie solely in any New York
County or any Federal Court of the United States of America sitting in the Eastern or Southern District of New York.

 

9.6       No
Assignment. Neither this Agreement nor any rights or obligations under it are assignable without the express written
consent of the Stockholder and Parent.

 

9.7       Headings.
The descriptive headings of the Articles, Sections and subsections of this Agreement are for convenience only and do not constitute
a part of this Agreement.

 

9.8       Counterparts.
This Agreement and any amendment hereto or any other agreement (or document) delivered pursuant hereto may be executed in one or
more counterparts and by different parties in separate counterparts. All of such counterparts shall constitute one and the same
agreement (or other document) and shall become effective (unless otherwise provided therein) when one or more counterparts have
been signed by each party and delivered to the other party.

 

    -44- 

     

    

 

9.9       Publicity
and Reports. The Stockholder and Parent shall coordinate all publicity relating to the transactions contemplated by
this Agreement and, except as required by Law, no party shall issue any press release, publicity statement or other public notice
relating to this Agreement, or the transactions contemplated by this Agreement, without obtaining the prior consent of each of
the Stockholder and Parent.

 

9.10       Parties
in Interest. This Agreement shall be binding upon and inure to the benefit of each party, and nothing in this Agreement,
express or implied, is intended to confer upon any other person any rights or remedies of any nature whatsoever under or by reason
of this Agreement. Nothing in this Agreement is intended to relieve or discharge the obligation of any third person to any party
to this Agreement.

 

9.11       Notices.
Any notice or other communication hereunder must be given in writing and:

 

(a)       delivered
in person;

 

(b)       transmitted
by facsimile; or

 

(c)       mailed
by certified mail, postage prepaid, return receipt requested as follows:

 

If to PARENT or BUYER,
addressed to:

DATARAM CORPORATION

777 Alexander Road, Suite 100

Princeton, New Jersey 08543

Attn: Chief Executive Officer

Facsimile:    (609) 799-6734

 

With a copy to:

Sichenzia Ross Ference Kesner LLP

61 Broadway, 32nd Floor

New York, New York 10006

Attn: Harvey Kesner, Esq.

 

    -45- 

     

    

 

If to STOCKHOLDER, addressed to the
addresses set forth on the signature page hereto.

 

If to the COMPANY, addressed to:

U.S. GOLD CORP.

Suite 102, Box 604

1910 East Idaho Street

Elko, NV  89801

Attn: Chief Executive Officer

 

With a copy to:

Laxague Law, Inc.

1 East Liberty, Suite 600

Reno, Nevada 89501

Attn: Joseph Laxague, Esq.

 

or to such other address or to such other person as
either party shall have last designated by such notice to the other party. Each such notice or other communication shall be effective:

 

(a)       if
given by facsimile, when transmitted to the applicable number so specified in (or pursuant to) this Section 9.11 and
an appropriate answerback is received;

 

(b)       if
given by mail, three (3) days after such communication is deposited in the mails by certified mail, return receipt requested, with
postage prepaid and addressed as aforesaid; or

 

(c)       if
given by any other means, when actually delivered at such address.

 

9.12       Remedies;
Waiver. To the extent permitted by Law, all rights and remedies existing under this Agreement are cumulative to and
not exclusive of, any rights or remedies otherwise available under applicable Law. No failure on the part of any party to exercise
or delay in exercising any right hereunder shall be deemed a waiver thereof, nor shall any single or partial exercise preclude
any further or other exercise of such or any other right.

 

9.13       Attorney’s
Fees. In the event of any Action by any party to enforce against another party a right or claim, each party shall pay
its own fees, costs and expenses incurred in such Action, and no arbitrator shall have authority to make an award of attorney’s
fees in contravention of this provision. Attorney’s fees incurred in enforcing any final judgment in respect of this Agreement
are recoverable as a separate item.

 

    -46- 

     

    

 

9.14       Severability.
If any provision of this Agreement is determined to be invalid, illegal or unenforceable by any Governmental Entity, the remaining
provisions of this Agreement to the extent permitted by Law shall remain in full force and effect; provided that the essential
terms and conditions of this Agreement for all parties remain valid, binding and enforceable. In event of any such determination,
the parties agree to negotiate in good faith to modify this Agreement to fulfill as closely as possible the original intents and
purposes hereof. To the extent permitted by Law, the parties hereby to the same extent waive any provision of Law that renders
any provision hereof prohibited or unenforceable in any respect.

 

9.15       Entire
Agreement. This Agreement constitutes and includes that entire agreement of the parties with reference to the subject
matter hereof and supersedes all prior agreements and understandings relating to the subject matter hereof. No promise or representation
of any kind has been made to any of the parties to this Agreement by any other party or parties to this Agreement or anyone acting
for any of such parties, except as is expressly stated in this Agreement.

 

9.16       Time
is of the Essence. Time is of the essence in interpreting and enforcing this Agreement.

 

9.17       Arbitration.
Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be resolved by binding arbitration
administered before one arbitrator by the American Arbitration Association under its Commercial Arbitration Rules in effect on
the date of this Agreement (herein the “AAA Rules”), and judgment on the award rendered by the arbitrator may
be entered in any court having jurisdiction thereof. The arbitrator shall be selected pursuant to the AAA Rules and shall be a
neutral and impartial lawyer with excellent academic and professional credentials:

 

(a)       who
is or has been practicing law for at least fifteen (15) years, specializing in general commercial litigation or general corporate
and commercial matters; and

 

(b)       who
has both training and experience as an arbitrator and is generally available to serve as an arbitrator. The arbitration shall be
governed by the arbitration law of the Federal Arbitration Act and shall be held in the City of New York, County of New York.

 

9.18       Expenses.
All fees and expenses incurred by any party hereto shall be paid by such party.

 

    -47- 

     

    

 

9.19       Disclosures.
Each exception stated in the Schedules attached hereto shall be deemed to be disclosed under any Section of Article III or Article
V specifically identified therein and any other Section or Sections to which such disclosure relates.

 

 

[SIGNATURE PAGE FOLLOWS]

 

    -48- 

     

    

IN WITNESS WHEREOF, each
of the parties hereto has caused this Agreement to be executed by its duly authorized officers as of the day and year first above
written.

 

 

PARENT:

 

DATARAM CORPORATION

 

By: /s/ David A. Moylan      

Name: David A. Moylan

Title: Chief Executive Officer

 

 

 

BUYER:

 

DATARAM ACQUISITION SUB, INC.

 

By: /s/ David A. Moylan      

Name: David A. Moylan

Title: Chief Executive Officer

 

 

 

COMPANY:

 

U.S. GOLD CORP.

 

By: /s/ David S. Rector      

Name: David S. Rector

Title:      Chief Operating Officer

 

 

 

STOCKHOLDER:

 

COPPER KING LLC

 

By: /s/ John Stetson      

Name: John Stetson

Title:      Managing Member

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