Document:

Exhibit 4.2

 

 

 

OMNICOM FINANCE HOLDINGS PLC

as Issuer

OMNICOM GROUP INC.

OMNICOM CAPITAL
INC.

as Guarantors

FIRST SUPPLEMENTAL INDENTURE

Dated as of July 8, 2019

DEUTSCHE BANK TRUST COMPANY AMERICAS

as Trustee

Debt Securities

    

     

    

First Supplemental Indenture dated
as of July 8, 2019 (the “First Supplemental Indenture”) among Omnicom Finance Holdings plc, a public limited
company organized under the laws of England and Wales (the “Issuer”), Omnicom Group Inc., a New York corporation
(“OGI”) and Omnicom Capital Inc., a Connecticut corporation (“OCI” and, together with OGI,
collectively referred to as the “Guarantors,” and each, individually, a “Guarantor”; the
Guarantors together with the Issuer collectively referred to as the “Omnicom Companies”), and Deutsche Bank
Trust Company Americas, a New York banking corporation, as Trustee (the “Trustee”).

W I T N E S S E T H:

               WHEREAS,
the Omnicom Companies and the Trustee executed and delivered an indenture dated as of July 8, 2019 (the “Indenture”)
to provide for the issuance by the Issuer from time to time of Securities to be issued in one or more Series as provided in the
Indenture;

WHEREAS, the issuance and sale of up
to €500,000,000 aggregate principal amount of a Series of the Issuer’s 0.800% Senior Notes due 2027 (the “2027
Notes”) and €500,000,000 aggregate principal amount of a Series of the Issuer’s 1.400% Senior Notes due 2031
(the “2031 Notes,” and, together with the 2027 Notes, the “Securities”) have been authorized
by the board of directors of the Issuer;

WHEREAS, the Issuer desires to issue
and sell €500,000,000 aggregate principal amount of the 2027 Notes and €500,000,000 aggregate principal amount of the
2031 Notes on the date hereof;

WHEREAS, the Guarantee of each Series
of the Securities has been authorized by the board of directors of each of the Guarantors;

WHEREAS, the Issuer desires to enter
into this First Supplemental Indenture pursuant to Sections 2.2, 2.14.1 and 9.1 of the Indenture to supplement the Indenture to
establish the form and terms of the Securities, and each Guarantor desires to enter into this First Supplemental Indenture to issue
its Guarantee of each Series of the Securities; and

               NOW,
THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH, that, for and in consideration of the above premises, it is mutually covenanted
and agreed, for the sole, equal and proportionate benefit of all Holders of the Securities, as follows:

ARTICLE
ONE

DEFINITIONS

Section 1.1 Relation to Base
Indenture.    

This First Supplemental Indenture constitutes
an integral part of the Indenture. In the event of inconsistencies between the Indenture and this First Supplemental Indenture,
the terms hereof shall govern.

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Section 1.2. Definitions.

(a)       All
of the terms used in this First Supplemental Indenture which are defined in the Indenture shall have the meanings specified in
the Indenture, unless otherwise provided herein or unless the context otherwise requires, and for the purposes of this First Supplemental
Indenture and the Securities, the following terms have the meanings set forth in this Section:

 

“Below Investment Grade Rating Event”
occurs if both the rating on the applicable Series of Securities is lowered by each of the Rating Agencies and such Securities
are rated below Investment Grade by each of the Rating Agencies on any date from the date of the public notice of an arrangement
that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of a Change
of Control (which period shall be extended so long as the rating of the applicable Series of Securities is under publicly announced
consideration for possible downgrade by any of the Rating Agencies); provided that a Below Investment Grade Rating Event otherwise
arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of
Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control
Triggering Event hereunder) if any of the Rating Agencies making the reduction in rating to which this definition would otherwise
apply does not announce or publicly confirm or inform the Trustee in writing at its request that the reduction was the result,
in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change
of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating
Event).

 

“Change of Control” means
the occurrence of any of the following:

 

		(1)	the sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the assets of OGI and its Subsidiaries taken as a whole to any “person”
(as that term is used in Section 13(d)(3) of the Exchange Act) other than to OGI or one of its Subsidiaries;

 

		(2)	the consummation of any transaction (including without limitation, any merger or consolidation) the result of which is that
any “person” (as that term is used in Section 13(d)(3) of the Exchange Act), other than OGI or one of its wholly owned
Subsidiaries, becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly
or indirectly, of more than 50% of the then outstanding shares of OGI’s Voting Stock, measured by voting power rather than
number of shares; or

 

		(3)	the adoption of a plan relating to the liquidation or dissolution of OGI.

 

Notwithstanding the foregoing, a transaction
shall not be deemed to involve a Change of Control if (i) OGI becomes a wholly owned Subsidiary of a holding company and (ii) the
holders of the Voting Stock of such holding company immediately following such transaction are

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substantially the same as the holders of OGI’s Voting Stock
immediately prior to such transaction.

 

“Change of Control Offer”
has the meaning specified in Section 3.2 of this First Supplemental Indenture. 

 

“Change of Control Payment Date”
has the meaning specified in Section 3.2 of this First Supplemental Indenture.

 

“Change of Control Purchase Price”
has the meaning specified in Section 3.2 of this First Supplemental Indenture.

 

“Change of Control Triggering Event”
with respect to a Series of Securities means the occurrence of both a Change of Control and a Below Investment Grade Rating Event
with respect to such Series.

 

“Comparable Government Bond”
means, in relation to any Comparable Government Bond Rate calculation, at the discretion of an Independent Investment Banker, a
bond that is a direct obligation of the Federal Republic of Germany (“German government bond”), whose maturity is closest
to the Stated Maturity of the Securities to be redeemed, or if such Independent Investment Banker in its discretion determines
that such similar bond is not in issue, such other German government bond as such Independent Investment Banker may, with the advice
of three brokers of, and/or market makers in, German government bonds selected by such Independent Investment Banker, determine
to be appropriate for determining the Comparable Government Bond Rate.

“Comparable Government Bond
Rate” means the price, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards),
at which the gross redemption yield on the Securities to be redeemed, if they were to be purchased at such price on the third Business
Day prior to the date fixed for redemption, would be equal to the gross redemption yield on such Business Day of the Comparable
Government Bond on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time)
on such Business Day as determined by an Independent Investment Banker.

“Consolidated Net Worth”
means the consolidated net worth of OGI, as determined in accordance with GAAP.

 

“Debt” of any person means,
without duplication: (a) all indebtedness of such person for borrowed money; (b) all obligations of such person for the deferred
purchase price of property or services (other than earn-out payment obligations of such person in connection with the purchase
of property or services to the extent they are still contingent); (c) all obligations of such person evidenced by notes, bonds,
debentures or other similar instruments; (d) all obligations of such person created or arising under any conditional sale or other
title retention agreement with respect to property acquired by such person (even though the rights and remedies of the seller or
lender under such agreement in the event of default are limited to repossession or sale of such property); (e) all obligations
of such person as lessee under leases to the extent that such leases have been or should be, in accordance with GAAP, recorded
as finance leases; (f) all obligations,

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contingent or otherwise, of such person in respect of acceptances,
letters of credit or similar extensions of credit; (g) all obligations of such person in respect of Hedge Agreements; (h) all Debt
of others referred to in clauses (a) through (g) above or clause (i) below and other payment obligations guaranteed, directly or
indirectly, in any manner by such person, or in effect guaranteed, directly or indirectly, by such person through an agreement
(1) to pay or purchase such Debt or to advance or supply funds for the payment or purchase of such Debt, (2) to purchase, sell
or lease (as lessee or lessor) property, or to purchase or sell services, primarily for the purpose of enabling the debtor to make
payment of such Debt or to assure the holder of such Debt against loss, (3) to supply funds to or in any other manner invest in
the debtor (including any agreement to pay for property or services irrespective of whether such property is received or such services
are rendered) or (4) otherwise to assure a creditor against loss; and (i) all Debt referred to in clauses (a) through (h) above
secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on
property (including, without limitation, accounts and contract rights) owned by such person, even though such person has not assumed
or become liable for the payment of such Debt.

 

“euro” or “€”
means the single currency introduced at the third stage of the European Economic and Monetary Union pursuant to the Treaty establishing
the European Community, as amended.

“GAAP” means generally accepted
accounting principles in the United States of America.

 

“Hedge Agreements” means
interest rate swap, cap or collar agreements, interest rate future or option contracts, currency swap agreements, currency future
or option contracts and other similar agreements.

 

“Independent Investment Banker”
means an investment bank of international standing appointed by the Issuer.

 

“Investment Grade” means
a rating equal to or higher than Baa3 (or its equivalent under any successor rating categories) by Moody’s and BBB- (or its
equivalent under any successor rating categories) by S&P, or, in each case, if such Rating Agency ceases to rate the applicable
Series of Securities or fails to make a rating of such Securities publicly available for reasons outside of the Issuer’s
and the Guarantors’ control, the equivalent investment grade credit rating by the replacement agency selected by the Issuer
in accordance with the procedures described under clause (2) of the definition of “Rating Agencies.”

 

“Lien” means any lien, security
interest or other charge or encumbrance of any kind, or any other type of preferential arrangement intended to provide security
for the payment or performance of an obligation, including, without limitation, the lien or retained security title of a conditional
vendor and any easement, right of way or other encumbrance on title to real property.

 

“Moody’s” means Moody’s
Investors Service, Inc., and its successors.

 

“par call date” has the meaning
specified in Section 3.1 of this First Supplemental Indenture.

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“Permitted Liens” means such
of the following as to which no enforcement, collection, execution, levy or foreclosure proceeding shall have been commenced: (a) Liens
for taxes, assessments and governmental charges or levies to the extent not yet due and payable, or being contested in good faith
by appropriate proceedings; (b) Liens imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s
and repairmen’s Liens and other similar Liens arising in the ordinary course of business securing obligations that are not
overdue for a period of more than 30 days or that are being contested in good faith and by appropriate proceedings that prevent
the forfeiture or sale of the asset subject to such Lien; (c) pledges or deposits to secure obligations under workers’ compensation
laws or similar legislation or to secure public or statutory obligations or, in any such case, to secure reimbursement obligations
under letters of credit or bonds issued to support such obligations; and (d) easements, rights of way and other encumbrances on
title to real property that do not render title to the property encumbered thereby unmarketable or materially adversely affect
the use of such property for its present purposes.

 

“Rating Agencies” means (1)
each of Moody’s and S&P; and (2) if any of Moody’s or S&P ceases to rate the applicable Series of Securities
or fails to make a rating of the applicable Series of Securities publicly available for reasons outside of the Issuer’s and
the Guarantors’ control, a “nationally recognized statistical rating organization,” as defined in Section 3(a)(62)
of the Exchange Act, selected by the Issuer as a replacement agency for Moody’s or S&P, or both of them, as the case
may be.

 

“Remaining Scheduled Payments”
means, with respect to each Security to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon
that would be due after the related redemption date but for such redemption calculated as if the Stated Maturity of such Security
was the applicable par call date; provided, however, that, if such redemption date is not an interest payment date with respect
to such Security, the amount of the next succeeding scheduled interest payment thereon shall be reduced by the amount of interest
accrued thereon to, but excluding, such redemption date.

 

“S&P” means S&P Global
Ratings, and its successors.

 

“Voting Stock” means, with
respect to any person, capital stock of any class or kind the holders of which are ordinarily, in the absence of contingencies,
entitled to vote for the election of directors (or persons performing similar functions) of such person, even if the right so to
vote has been suspended by the happening of such a contingency.

 

(b)       The
definition of “Business Day” in the Indenture is hereby amended and restated with respect to the Securities as follows:

 

“Business Day” means any day other
than a Saturday or Sunday, (1) which is not a day on which banking institutions in The City of New York or London are authorized
or required by law, regulation or executive order to close and (2) on which the Trans-European Automated Real Time Gross Settlement
Express Transfer system (the “TARGET2” system), or any successor thereto, is open.

 

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ARTICLE TWO

THE SECURITIES

Section 2.1. Terms of the Securities.

The Securities shall have the following
terms, established pursuant to Section 2.2 of the Indenture:

2.1.1. Pursuant to Section 2.2.1 of
the Indenture, the title of the Securities to be issued each as a Series of Securities under the Indenture shall be the “0.800%
Senior Notes due 2027” with respect to the 2027 Notes and the “1.400% Senior Notes due 2031” with respect to
the 2031 Notes;

2.1.2. Pursuant to Section 2.2.2 of
the Indenture, the price or prices at which the Securities of the Series shall be issued shall be 99.838% of the aggregate principal
amount thereof initially for the 2027 Notes and 99.671% of the aggregate principal amount thereof initially for the 2031 Notes;

2.1.3. Pursuant to Section 2.2.3 of
the Indenture, the aggregate principal amount of the Securities that may be authenticated and delivered under this First Supplemental
Indenture shall be limited to €500,000,000 for the 2027 Notes and €500,000,000 for the 2031 Notes;

2.1.4. Pursuant to Section 2.2.4 of
the Indenture, 100% of the applicable Series of Securities shall be payable, unless earlier redeemed pursuant to their terms, on
July 8, 2027, with respect to the 2027 Notes, and July 8, 2031, with respect to the 2031 Notes;

2.1.5. Pursuant to Section 2.2.5 of
the Indenture, the 2027 Notes shall bear interest at a rate equal to 0.800% per annum and the 2031 Notes shall bear interest at
a rate equal to 1.400% per annum; interest on the Securities shall accrue from July 8, 2019 until the principal thereof is paid
or duly provided for; interest on the Securities shall be payable annually in arrears in cash on July 8 of each year, commencing
on July 8, 2020 to Holders of record on June 23 (whether or not a Business Day) immediately preceding the applicable interest payment
date. Interest on the Securities of each Series shall be computed from and including the prior interest payment date (or, in the
case of the first interest payment date, from and including July 8, 2019) to but excluding the next interest payment date on the
basis of the actual number of days elapsed in the period for which interest is being calculated and the actual number of days from
and including the last day on which interest was paid on the Securities of such Series (or July 8, 2019 if no interest has been
paid on the Securities of such Series), to but excluding the next scheduled interest payment date. This payment convention is referred
to as ACTUAL/ACTUAL (ICMA) (as defined in the rulebook of the International Capital Markets Association). In the event that any
principal or interest on the Securities is not paid when due, whether at Maturity or otherwise, then to the extent permitted by
law such overdue principal and interest shall bear interest until paid at the rate of interest set forth in this Section 2.1.5
of this First Supplemental Indenture, compounded annually;

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2.1.6. Pursuant to Section 2.2.6 of
the Indenture, the place or places where the principal of and interest in the Securities shall be payable shall be as set forth
in the Securities, the form of which is attached hereto as Exhibit A for the 2027 Notes and Exhibit B for the 2031
Notes;

2.1.7. Pursuant to Section 2.2.7 of
the Indenture, the Securities shall be subject to redemption at the option of the Issuer as set forth in Article III and Section
13.1 of the Indenture, as modified by Section 3.1 of this First Supplemental Indenture;

2.1.8. Pursuant to Section 2.2.8 of
the Indenture, the Issuer shall not be obligated to redeem or purchase the Securities pursuant to any sinking fund or at the option
of a Holder thereof prior to the Maturity;

2.1.9. Pursuant to Section 2.2.9 of
the Indenture, the Issuer shall not be obligated to redeem or purchase the Securities pursuant to any repurchase obligations or
at the option of a Holder thereof prior to the Maturity, except pursuant to Section 3.2 of this First Supplemental Indenture;

2.1.10. Pursuant to Section 2.2.10, the Securities
shall be issuable in denominations of €100,000 and integral multiples of €1,000 in excess thereof;

 

2.1.11. Pursuant to Section 2.2.11 of the Indenture,
the Securities shall be issued as Global Securities, and the Issuer hereby designates each of Euroclear Bank S.A./N.V. (“Euroclear”)
and Clearstream Banking, S.A., Luxembourg (“Clearstream, Luxembourg”) initially as a Depository for the Securities.
Each Global Security representing the Securities shall be registered initially in the name of BT Globenet Nominees Limited as nominee
for Deutsche Bank AG, London Branch, the common depository of Euroclear and Clearstream, Luxembourg;

2.1.12. Pursuant to Section 2.2.15
of the Indenture, OGI shall be subject to the additional restrictions as set forth in Section 4.1 and Article V of this First Supplemental
Indenture;

2.1.13. Pursuant to Section 2.2.16
of the Indenture, the provisions of Section 13.2 of the Indenture shall apply to the Securities of each Series;

2.1.14. Pursuant to Section 2.2.16
of the Indenture, the provisions of Article VIII of the Indenture shall apply to the Securities of each Series, except that for
purposes of Article VIII of the Indenture, the definition of “Foreign Government Obligations” shall be modified with
respect to the Securities as follows:

“Foreign Government Obligations”
means securities denominated in euro that are (i) direct obligations of the Federal Republic of Germany, the payments of which
are supported by the full faith and credit of the German government or (ii) obligations of a person controlled or supervised by
and acting as an agency or instrumentality of the Federal Republic of Germany the timely payments of which are unconditionally
guaranteed as a full faith and credit obligation of the German government, which, in either case under clauses (i) or (ii) are
not callable or redeemable at the option of the issuer thereof;

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2.1.15. Pursuant to Section 2.2.18
of the Indenture, the obligations of the Issuer under the Indenture and this First Supplemental Indenture with respect to the Securities
issued under this First Supplemental Indenture shall be guaranteed by the Guarantors in accordance with Article XII of the Indenture
with respect to the 2027 Notes and the 2031 Notes, respectively;

2.1.16. Pursuant to Section 2.2.22
of the Indenture, application has been made to have both Series of the Securities listed on The New York Stock Exchange. The listing
application is subject to approval by The New York Stock Exchange. If such a listing is obtained, the Issuer shall have no obligation
to maintain such listing, and the Issuer may delist either Series of the Securities at any time;

2.1.17. Pursuant to Section 2.2.23
of the Indenture, all payments of interest, principal and premium, if any, including payments made upon any redemption or repurchase
of the Securities of either Series, shall be payable in euro. If, on or after June 24, 2019, the euro is unavailable to the Issuer
or, in the case of the Guarantees, the Guarantors due to the imposition of exchange controls or other circumstances beyond the
Issuer’s or the Guarantors’ control or if the euro is no longer being used by the then-member states of the European
Economic and Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions
of or within the international banking community, then all payments in respect of the Securities shall be made in Dollars until
the euro is again available to the Issuer or, in the case of the Guarantees, the Guarantors or so used. In such circumstances,
the amount payable on any date in euro shall be converted into Dollars at the rate mandated by the U.S. Federal Reserve Board as
of the close of business on the second Business Day prior to the relevant payment date or, in the event the U.S. Federal Reserve
Board has not mandated a rate of conversion, on the basis of the most recent Dollar/euro exchange rate published in The Wall
Street Journal on or prior to the second Business Day prior to the relevant payment date. Any payment in respect of the Securities
of either Series so made in Dollars shall not constitute an Event of Default under the Securities of such Series or the Indenture.
Neither the Trustee nor the Paying Agent for the Securities shall have any responsibility for any calculation or conversion in
connection with the foregoing;

2.1.18. Pursuant to Section 2.2 of
the Indenture, the Issuer may, without the consent of the Holders of the Securities of any Series, issue additional Securities
of such Series having the same ranking and the same interest rate, maturity and other terms as the Securities of such Series issued
on the date hereof (except for the issue date, the price to the public, the payment of interest accruing prior to the issue date
of such additional Securities or except for first payment of interest following the issue date of such additional Securities).
Any such additional Securities shall be a part of the Series having the same terms as the Securities of such Series issued on the
date hereof, provided that such additional Securities subsequently issued are fungible for U.S. federal income tax purposes with
any Securities of such Series previously issued; and

2.1.19. Section 2.17 of the Indenture
shall be applicable to the Securities.

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Section 2.2. Amendments to the Indenture.
The Indenture is hereby amended with respect to the Securities only as follows:

(a)       The
phrase, “10:00 a.m., New York City time (or such other time as may be specified pursuant to Section 2.2 with respect to any
Security denominated in a Foreign Currency)”, in Section 4.1 of the Indenture is hereby replaced by, “10:00 a.m., London
time”;

(b)       The
phrase, “Subject to Article V”, in Section 4.5 of the Indenture is hereby replaced by, “Subject to Article V
and Article Five of the First Supplemental Indenture”;

(c)       The
phrase, “to comply with Article V”, in Section 9.1(b) of the Indenture is hereby replaced by, “to comply with
Article V or Article Five of the First Supplemental Indenture”; and

(d)       The
phrase, “otherwise in compliance with Article V of this Indenture”, in Section 12.1.12 of the Indenture is hereby replaced
by, “otherwise in compliance with Article V of this Indenture and Article Five of the First Supplemental Indenture”.

ARTICLE
THREE

ADDITIONAL
REDEMPTION PROVISION

Section 3.1. Optional Redemption.

Prior to April 8, 2027 (the date that
is three months prior to the Stated Maturity of the 2027 Notes) and prior to April 8, 2031 (the date that is three months prior
to the Stated Maturity of the 2031 Notes) (each, a “par call date”), the 2027 Notes and the 2031 Notes, respectively,
shall be redeemable, as a whole or in part, at the Issuer’s option, at any time or from time to time, upon mailed notice
(or electronic notice, as applicable) to the registered address of each Holder of Securities of such Series at least 15 days but
not more than 60 days prior to the redemption. The redemption price shall be equal to the greater of (1) 100% of the principal
amount of the Securities to be redeemed and (2) the sum of the present values of the Remaining Scheduled Payments on such Securities
discounted to the date of redemption, on an annual basis (assuming an ACTUAL/ACTUAL (ICMA) day count fraction), at the applicable
Comparable Government Bond Rate plus 20 basis points with respect to the 2027 Notes and 30 basis points with respect to the 2031
Notes, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date, as calculated by an Independent
Investment Banker.

On or after the applicable par call date,
each Series of the Securities shall be redeemable, as a whole or in part, at the Issuer’s option, at any time or from time
to time, upon mailed notice (or electronic notice, as applicable) to the registered address of each Holder of Securities of such
Series at least 15 days but not more than 60 days prior to the redemption at a redemption price of 100% of the principal amount
of such Securities, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

On and after the redemption date, interest shall
cease to accrue on the Securities or any portion of the Securities called for redemption (unless the Issuer defaults in the payment
of the redemption price and accrued interest). On or before 10:00 a.m. London time on the redemption

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date, the Issuer shall deposit with a Paying Agent (or the Trustee)
money sufficient to pay the redemption price of and accrued interest on the Securities to be redeemed on that date. If less than
all of the Securities of either Series are to be redeemed, the Securities of such Series to be redeemed shall be selected by such
method as the Trustee deems fair and appropriate, subject to the procedures of the Depositories as to Global Securities.

Section 3.2. Repurchase Upon Change
of Control Triggering Event.

Upon the occurrence of a Change of Control Triggering
Event, with respect to a Series of Securities unless the Issuer has exercised its option to redeem such Series of the Securities
pursuant to Section 3.1 of this First Supplemental Indenture or Section 13.1 of the Indenture, each Holder of the Securities of
such Series shall have the right to require the Issuer to repurchase all or a portion of such Holder’s Securities pursuant
to a change of control offer pursuant to, and in accordance with, the provisions of this Section 3.2 (a “Change of Control
Offer”), at a purchase price (the “Change of Control Purchase Price”) equal to 101% of the principal
amount thereof plus accrued and unpaid interest, if any, to the date of repurchase, subject to the right of Holders of Securities
of such Securities on the relevant record date to receive interest due on the relevant interest payment date.

 

Within 30 days following the date upon which
the Issuer becomes aware that a Change of Control Triggering Event has occurred with respect to a Series of Securities, or at the
Issuer’s option, prior to any Change of Control but after the public announcement of the pending Change of Control, the Issuer
shall be required to send, by first class mail or electronic delivery, a notice to each Holder of Securities of such Series, with
a copy to the Trustee, which notice shall govern the terms of the Change of Control Offer. Such notice shall state, among other
things, the purchase date, which must be no earlier than 30 days nor later than 60 days from the date such notice is mailed or
delivered, other than as may be required by law (the “Change of Control Payment Date”). The notice, if mailed
or delivered prior to the date of consummation of the Change of Control, shall state that the Change of Control Offer is conditioned
on the Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date. The Issuer shall not be
required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such
an offer in the manner, at the times and otherwise in compliance with the requirements for such an offer made by the Issuer and
such third party purchases all Securities properly tendered and not withdrawn under its offer.

 

The Issuer shall be required to comply with
the requirements of Rule 14e-1 under the Exchange Act, and any other securities laws and regulations thereunder to the extent those
laws and regulations are applicable in connection with the repurchase of the Securities as a result of a Change of Control Triggering
Event. To the extent that the provisions of any securities laws or regulations conflict with this Section 3.2 and the Securities,
the Issuer shall be required to comply with those securities laws and regulations and shall not be deemed to have breached its
obligations under this Section 3.2 and the Securities by virtue of any such compliance.

 

On each Change of Control Payment Date,
the Issuer shall, to the extent lawful:

		(a)	accept for payment all Securities or portions of Securities properly tendered and not withdrawn pursuant to the Change of Control
Offer;

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		(b)	deposit with the Paying Agent an amount equal to the Change of Control Purchase Price in respect of all Securities or portions
of Securities properly tendered and not withdrawn; and

 

		(c)	deliver or cause to be delivered to the Trustee the Securities properly accepted together with an Officer’s Certificate
stating the aggregate principal amount of Securities or portions of Securities being repurchased.

ARTICLE
FOUR

LIMITATION
ON LIENS

Section 4.1. Limitation on Liens.

OGI shall not, and shall not permit
any of its Subsidiaries to, create or suffer to exist any Lien on or with respect to any of OGI’s properties, whether now
owned or hereafter acquired, to secure any Debt of OGI, any direct or indirect Subsidiary of OGI or any other person without securing
the Securities equally and ratably with such Debt to which such Liens relate for so long as such Debt shall be so secured, other
than:

(a)       Permitted
Liens;

(b)       purchase
money Liens upon or in any real property or equipment acquired or held by OGI or any Subsidiary of OGI in the ordinary course of
business to secure the purchase price of such property or equipment or to secure Debt incurred solely for the purpose of financing
the acquisition of such property or equipment, or Liens existing on such property or equipment at the time of its acquisition (other
than any such Liens created in contemplation of such acquisition that were not incurred to finance the acquisition of such property)
or extensions, renewals or replacements of any of the foregoing for the same or a lesser amount, provided, however, that no such
Lien shall extend to or cover any properties of any character other than the real property or equipment being acquired and fixed
improvements thereon or accessions thereto, and no such extension, renewal or replacement shall extend to or cover any properties
not theretofore subject to the Lien being extended, renewed or replaced;

(c)       Liens
existing on June 24, 2019;

(d)       Liens
on property of a person existing at the time such person is merged into, consolidated with, or acquired by OGI or any Subsidiary
of OGI or becomes a Subsidiary of OGI; provided that such Liens were not created in contemplation of such merger, consolidation
or acquisition and do not extend to any assets other than those of the person so merged into or consolidated with OGI or such Subsidiary
or acquired by OGI or such Subsidiary;

(e)       Liens
granted by Subsidiaries of OGI (other than the Issuer and OCI) to secure Debt owed to OGI or a wholly owned Subsidiary of OGI;

    12

     

    

(f)       Liens
arising out of a judgment, decree or order of court being contested in good faith by appropriate proceedings, provided that adequate
reserves with respect thereto are maintained on the books of OGI or the books of its Subsidiaries, as the case may be, in conformity
with GAAP;

(g)       Debt
of a person existing at the time such person is merged into or consolidated with OGI or becomes a Subsidiary of OGI provided that
such Debt was not created in contemplation of such merger, consolidation or acquisition and provided further that the aggregate
principal amount of such Debt shall not exceed $50,000,000 at any time outstanding;

(h)       Liens
to secure any extension, renewal, refinancing or refunding (or successive extensions, renewals, refinancings or refundings), in
whole or in part, of any Debt secured by Liens referred to above or Liens created in connection with any amendment, consent or
waiver relating to such Debt, so long as such Lien does not extend to any other property, the amount of Debt secured is not increased
(other than by the amount equal to any costs and expenses incurred in connection with any extension, renewal, refinancing or refunding)
and the Debt so secured does not exceed the fair market value (as determined by OGI’s Board of Directors in good faith) of
the assets subject to such Liens at the time of such extension, renewal, refinancing or refunding, or such amendment, consent or
waiver, as the case may be; and

(i)       Liens
otherwise prohibited by this covenant, securing Debt, provided that the aggregate principal amount of such secured Debt shall not
exceed 20% of the Consolidated Net Worth of OGI and its Subsidiaries at any time.

ARTICLE FIVE

SUCCESSORS

 

Section 5.1 When OGI May Merge, Etc.
OGI shall not consolidate with or merge into, or convey, transfer or lease all or substantially all of its properties and assets
to, any person (a “successor person”) unless:

(a)       either
(i) OGI is the continuing person or (ii) the resulting, surviving or transferee person is an entity organized under the laws of
the United States;

(b)       the
successor person expressly assumes by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, OGI’s obligations with respect to its Guarantee of the Securities, the Indenture and this First Supplemental
Indenture; and

(c)       immediately
after giving effect to the transaction, no Default or Event of Default, shall have occurred and be continuing.

OGI shall deliver to the Trustee
prior to the consummation of the proposed transaction an Officer’s Certificate to the foregoing effect and an Opinion of
Counsel stating that the proposed transaction and such supplemental indenture comply with the Indenture and this First Supplemental
Indenture.

    13

     

    

For purposes of the foregoing,
the conveyance, transfer or lease of the properties and assets of one or more Subsidiaries of OGI (other than to OGI or another
Subsidiary of OGI), which, if such assets were owned by OGI, would constitute all or substantially all of the properties and assets
of OGI, shall be deemed to be the transfer of all or substantially all of the properties and assets of OGI, but a bona fide pledge
or hypothecation shall be deemed not to be prohibited by the Indenture and this First Supplemental Indenture.

Section 5.2 Successor Corporation
Substituted. Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially
all of the assets of OGI in accordance with Section 5.1, the successor corporation formed by such consolidation or into or with
which OGI is merged or to which such sale, lease, conveyance or other disposition is made shall succeed to, and be substituted
for, and may exercise every right and power of, OGI under the Indenture and this First Supplemental Indenture with the same effect
as if such successor person has been named as OGI herein; provided, however, that the predecessor OGI in the case of a sale, lease,
conveyance or other disposition shall not be released from the obligation to pay the principal of and interest, if any, on the
Securities. OGI, the Trustee and the successor person shall enter into a supplemental indenture to evidence the succession and
substitution of such successor person and such discharge and release of OGI.

The provisions of Article V of
the Indenture shall also be applicable to the Securities.

ARTICLE SIX

LIABILITY OF TRUSTEE

 

Section 6.1 Trustee Not Responsible for Recitals.

 

The Trustee shall not be responsible in any
matter whatsoever for or in respect of the validity or sufficiency of this First Supplemental Indenture or for or in respect of
the recitals contained herein, all of which are made solely by the Issuer or for or with respect to (i) the proper authorization
by the Issuer by action or otherwise, (ii) the due execution hereof by the Issuer or (iv) the consequences of any amendment herein
provided for, and the Trustee makes no representation with respect to any such matters.

 

ARTICLE SEVEN

MISCELLANEOUS

Section 7.1. Ratification and
Effect.

Except
as hereby expressly amended, the Indenture is in all respects ratified and confirmed and all the terms, provisions and conditions
thereof shall be and remain in full force and effect.

Upon
and after the execution of this First Supplemental Indenture, each reference in the Indenture to “this Indenture,”
“hereunder,” “hereof” or words of like import referring to the Indenture shall mean and be a reference
to the Indenture as modified hereby.

    14

     

    

Section 7.2 Governing Law.

THIS
FIRST SUPPLEMENTAL INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS
MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

Section 7.3 Counterpart Originals.

This
First Supplemental Indenture may be executed in any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement.

Section 7.4 Effect of Headings.    

The headings of the Articles and Sections
of this First Supplemental Indenture have been inserted for convenience of reference only, are not to be considered a part hereof,
and shall in no way modify or restrict any of the terms or provisions hereof.

Section 7.5.Severability.

In case any provision in this First
Supplemental Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired thereby.

Section 7.6.Modification, Amendment and Waiver.

The provisions of this First Supplemental
Indenture may not be amended, supplemented, modified or waived except by an execution of a Supplemental Indenture executed by each
of the Omnicom Companies and the Trustee. Any such amendment shall comply with Article IX of the Indenture. Until an amendment,
waiver or other action by Holders becomes effective, a consent thereto by a Holder of a Security hereunder is a continuing consent
by the Holder and every subsequent Holder of that Security or portion of the Security that evidences the same obligation as the
consenting Holder’s Security, even if notation of the consent, waiver or action is not made on the Security. However, any
such Holder or subsequent Holder may revoke the consent, waiver or action as to such Holder’s Security or portion of the
Security if the Trustee receives the notice of revocation before the date the amendment, waiver or action becomes effective. After
an amendment, waiver or action becomes effective, it shall bind every Holder.

Section 7.7. Ratification of Indenture;
Supplemental Indenture Part of 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 First Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Securities
heretofore or hereafter authenticated and delivered shall be bound hereby.

    15

     

    

Section 7.8. Trust Indenture Acts
Controls.

If any provision of this First Supplemental
Indenture limits, qualifies or conflicts with any provision of the Trust Indenture Act of 1939, as amended (the “TIA”),
that is required under the TIA to be part of and govern any provision of this First Supplemental Indenture, the provision of the
TIA shall control. If any provision of this First Supplemental Indenture modifies or excludes any provisions of the TIA that may
be so modified or excluded, the provisions of the TIA shall be deemed to apply to the Indenture as so modified or to be excluded
by this First Supplemental Indenture, as the case may be.

Section 7.9. Consent to Jurisdiction;
Service of Process; and Waiver of Jury Trial.

Each of the Issuer and the Guarantors
agrees that any legal suit, action or proceeding brought by any party to enforce any rights under or with respect to this First
Supplemental Indenture, any Security or any other document or the transactions contemplated hereby or thereby may be instituted
in any state or federal court in The Borough of Manhattan, The City of New York, State of New York, United States of America, irrevocably
waives to the fullest extent permitted by law any objection which it may now or hereafter have to the laying of venue of any such
suit, action or proceeding, irrevocably waives to the fullest extent permitted by law any claim that and agrees not to claim or
plead in any court that any such action, suit or proceeding brought in such court has been brought in an inconvenient forum and
irrevocably submits to the non-exclusive jurisdiction of any such court in any such suit, action or proceeding or for recognition
and enforcement of any judgment in respect thereof.

To the extent that the Issuer or any
of the Guarantors or any of their respective Subsidiaries has or hereafter may acquire any immunity from jurisdiction of any court
(including any court in the United States, the State of New York or other jurisdiction in which the Issuer, any of the Guarantors
or any successor thereof may be organized or any political subdivisions thereof) or from any legal process (whether through service
of notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its
property or assets, this First Supplemental Indenture, the Securities, the transactions contemplated hereby or thereby or any other
documents or actions to enforce judgments in respect of any thereof, then each of the Issuer and the Guarantors hereby irrevocably
waives, and shall cause its Subsidiaries to waive, such immunity, and any defense based on such immunity, in respect of its obligations
under the above-referenced documents and the transactions contemplated thereby, to the extent permitted by law.

The Issuer hereby appoints Omnicom
Group Inc., 437 Madison Avenue, New York, New York 10022, Attention: General Counsel (the “Agent for Service”),
and OGI hereby accepts such appointment, as its agent to receive service of process or other legal summons for purposes of any
such suit, action or proceeding that may be instituted in any state or federal court in the Borough of Manhattan, The City of New
York, State of New York, United States of America. The Issuer agrees that service of process upon the Agent for Service shall be
deemed in every respect effective service of process upon the Issuer in any such suit, action or proceeding. The Issuer further
agrees to take any and all action, including the execution and filing of any and all such documents and instruments, as may be
necessary to continue such designation and

    16

     

    

appointment of the Agent for Service in full force and effect so
long as any of the Securities shall be outstanding.

THE PARTIES HERETO HEREBY WAIVE TRIAL
BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE SECURITIES, THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY
OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.

[Signatures pages follow]

    17

     

    

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

	 	OMNICOM FINANCE HOLDINGS PLC 
	 	 	 	 
	 	By:	/s/ Stephen Medhurst
	 	 	Name:	Stephen Medhurst
	 	 	Title:	Director
	 	 
	 	OMNICOM GROUP INC. 
	 	 	 	 
	 	By:	/s/ Philip J. Angelastro
	 	 	Name:	Philip J. Angelastro
	 	 	Title:	Executive Vice President and Chief 
	 	 	 	Financial Officer
	 	 
	 	OMNICOM CAPITAL INC.
	 	 	 	 
	 	By:	/s/ Eric Huttner
	 	 	Name:  	Eric Huttner
	 	 	Title:    	Executive Vice President and Director
	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY 
	 	AMERICAS, as Trustee
	 	 
	 	By:	/s/ Bridgette Casasnovas
	 	 	Name:	Bridgette Casasnovas
	 	 	Title:	Vice President
	 	 	 
	 	By:	/s/ Robert S. Peschler
	 	 	Name:	Robert S. Peschler
	 	 	Title:	Vice President

 

    

     

    

Exhibit A

FORM OF GLOBAL SECURITY FOR THE 0.800%
SENIOR NOTES DUE 2027

THIS GLOBAL SECURITY IS HELD BY THE DEPOSITORY
(AS DEFINED IN THE INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF,
AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE ANY SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION
2.7 OF THE INDENTURE, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO THE INDENTURE AND
(IV) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUER.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE
OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE
OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR TO ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY
OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS GLOBAL SECURITY IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF ANY ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
(AND ANY PAYMENT IS MADE TO SUCH ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY), ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF HAS AN INTEREST
HEREIN.

    Exhibit A-1

     

    

0.800% Senior Notes due 2027

 

ISIN: XS2019814503

Common Code: 201981450

CUSIP No. 68217V AA5

€500,000,000

No. 1

OMNICOM FINANCE HOLDINGS PLC, a public
limited company organized under the laws of England and Wales (the “Issuer,” which term includes any successor person
under the Indenture hereinafter referred to), for value received, hereby promises to pay to BT GLOBENET NOMINEES LIMITED, or registered
assigns, the principal sum of €500,000,000 on July 8, 2027 and to pay interest thereon from July 8, 2019 or from the most
recent interest payment date to which interest has been paid or duly provided for, annually on July 8 in each year, commencing
July 8, 2020, at the rate of 0.800% per annum, set forth below. The interest so payable, and punctually paid or duly provided for,
on any interest payment date shall, as provided in such Indenture, be paid to the person in whose name this Security (or one or
more predecessor securities) is registered at the close of business on the regular record date for such interest, which shall be
June 23 of each year (whether or not a Business Day), next preceding such interest payment date. Any such interest not so punctually
paid or duly provided for shall forthwith cease to be payable to the Holder on such regular record date and may either be paid
to the person in whose name this Security (or one or more predecessor securities) is registered at the close of business on a special
record date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities of this Series not less than 10 days prior to such special record date, or be paid at any time in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the Securities of this Series may be listed, and upon
such notice as may be required by such exchange, all as more fully provided in said Indenture).

Distributions of principal, premium, if any,
and interest with respect to this Security shall be credited in euro to the extent received by Euroclear or Clearstream, Luxembourg
from the Paying Agent to the cash accounts of Euroclear or Clearstream, Luxembourg participants in accordance with the relevant
system’s rules and procedures.

 

Reference is hereby made to the further
provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect
as if set forth at this place.

This Security is fully and unconditionally
guaranteed by Omnicom Group Inc., a corporation duly organized and existing under the laws of the State of New York (“OGI”),
and Omnicom Capital Inc., a corporation duly organized and existing under the laws of the State of Connecticut (“OCI,”
and, together with OGI, the “Guarantors”), as provided in the Indenture.

This Security shall be deemed to be a
contract made under the laws of the State of New York, and for all purposes shall be construed in accordance with and governed
by the laws of said state.

    Exhibit A-2

     

    

By the execution and delivery of this
Security, the Issuer (i) acknowledges that it has irrevocably designated and appointed OGI (together with any successor, the “Agent
for Service”), as its authorized agent upon which process may be served in any suit or proceeding based on or arising out
of the Securities, that may be instituted in any U.S. federal or state court in the Borough of Manhattan in the City of New York,
County and State of New York, or brought under U.S. federal or state securities laws, and acknowledges that the Agent for Service
has accepted such designation, (ii) submits to the jurisdiction of any such court in any such suit or proceeding, and (iii) agrees
that service of process upon the Agent for Service shall be deemed in every respect effective service of process upon the Issuer
in any such suit or proceeding. The Issuer further agrees to take any and all action, including the execution and filing of any
and all such documents and instruments, as may be necessary to continue such designation and appointment of the Agent for Service
in full force and effect so long as any of the Securities shall be outstanding.

Unless the certificate of authentication
hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled
to any benefit under the Indenture or be valid or obligatory for any purpose.

    Exhibit A-3

     

    

IN WITNESS WHEREOF, the Issuer has caused
this instrument to be duly executed.

 

 

	Dated:  	OMNICOM FINANCE HOLDINGS PLC

	 	 	 
	 	By:	 
	 	Name:  	 
	 	Title:    	 
	 	 	 
	 	By:	 
	 	Name:  	 
	 	Title:    	 

 

    Exhibit A-4

     

    

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

	 	Deutsche Bank Trust Company Americas, as 
	 	Trustee	 
	 	 	 
	 	By:	 
	 	 	Authorized Signatory

 

Dated:

    Exhibit A-5

     

    

Reverse of Security

OMNICOM FINANCE HOLDINGS PLC

0.800% Senior Notes due 2027

This Security is one of a duly authorized
issue of securities of the Issuer, designated as its 0.800% Senior Notes due 2027 (herein called the “Securities”),
issued and to be issued in one or more Series under an Indenture, dated as of July 8, 2019 (the “Base Indenture”),
between the Issuer, the Guarantors and Deutsche Bank Trust Company Americas, as Trustee (herein called the “Trustee,”
which term includes any successor trustee under the Indenture), as supplemented by the First Supplemental Indenture dated as of
July 8, 2019, between the Issuer, the Guarantors and the Trustee (the “First Supplemental Indenture” and together with
the Base Indenture, the “Indenture”), to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Issuer, the Guarantors,
the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the Series designated on the face hereof, initially limited in aggregate principal amount to
€500,000,000. Capitalized terms used in this Security and not defined herein have the meaning ascribed thereto in the Indenture.

Deutsche Bank Trust Company Americas,
the Trustee under the Indenture, has been appointed by the Issuer as Paying Agent, Registrar and transfer agent with regard to
the Securities. Deutsche Bank AG, London Branch will serve initially as common depositary of the Depositories with regard to the
Securities.

In case an Event of Default shall have
occurred and be continuing, the principal of and accrued interest on all Securities may be declared, and upon said declaration,
shall become due and payable, in the manner, with the effect and subject to the conditions provided for in the Indenture.

Prior to April 8, 2027 (the “par
call date”), the Securities shall be redeemable, as a whole or in part, at the Issuer’s option, at any time or from
time to time, upon mailed notice (or electronic notice, as applicable) to the registered address of each Holder of Securities of
such Series at least 15 days but not more than 60 days prior to the redemption. The redemption price shall be equal to the greater
of (1) 100% of the principal amount of the Securities to be redeemed and (2) the sum of the present values of the Remaining Scheduled
Payments on such Securities discounted to the date of redemption, on an annual basis (assuming an ACTUAL/ACTUAL (ICMA) day count
fraction), at the applicable Comparable Government Bond Rate plus 20 basis points, plus accrued and unpaid interest thereon, if
any, to, but excluding, the redemption date, as calculated by an Independent Investment Banker.

On or after the par call date, the Securities
shall be redeemable, as a whole or in part, at the Issuer’s option, at any time or from time to time, upon mailed notice
(or electronic notice, as applicable) to the registered address of each Holder of Securities of such Series at least 15 days but
not more than 60 days prior to the redemption at a redemption price of 100% of the principal

    Exhibit A-6

     

    

amount of such Securities, plus accrued and unpaid interest
thereon, if any, to, but excluding, the redemption date.

“Comparable Government Bond”
means, in relation to any Comparable Government Bond Rate calculation, at the discretion of an Independent Investment Banker, a
bond that is a direct obligation of the Federal Republic of Germany (“German government bond”), whose maturity is closest
to the Stated Maturity of the Securities to be redeemed, or if such Independent Investment Banker in its discretion determines
that such similar bond is not in issue, such other German government bond as such Independent Investment Banker may, with the advice
of three brokers of, and/or market makers in, German government bonds selected by such Independent Investment Banker, determine
to be appropriate for determining the Comparable Government Bond Rate.

“Comparable Government Bond
Rate” means the price, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards),
at which the gross redemption yield on the Securities to be redeemed, if they were to be purchased at such price on the third Business
Day prior to the date fixed for redemption, would be equal to the gross redemption yield on such Business Day of the Comparable
Government Bond on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time)
on such Business Day as determined by an Independent Investment Banker.

“Independent Investment Banker”
means an investment bank of international standing appointed by the Issuer.

“Remaining Scheduled Payments”
means, with respect to each Security to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon
that would be due after the related redemption date but for such redemption calculated as if the Stated Maturity of such Security
was the par call date; provided, however, that, if such redemption date is not an interest payment date with respect to such Security,
the amount of the next succeeding scheduled interest payment thereon shall be reduced by the amount of interest accrued thereon
to, but excluding, such redemption date.

On and after the redemption date, interest shall
cease to accrue on the Securities or any portion of the Securities called for redemption (unless the Issuer defaults in the payment
of the redemption price and accrued interest). On or before 10:00 a.m. London time on the redemption date, the Issuer shall deposit
with a Paying Agent (or the Trustee) money sufficient to pay the redemption price of and accrued interest on the Securities to
be redeemed on that date. If less than all of the Securities of either Series are to be redeemed, the Securities of such Series
to be redeemed shall be selected by such method as the Trustee deems fair and appropriate, subject to the procedures of the Depositories
as to Global Securities.

 

In the event of redemption of this Security
in part only, a new Security or Securities of this Series and of like tenor for the unredeemed portion hereof shall be issued in
the name of the Holder hereof upon the cancellation hereof; provided that in the case of a Global Security, an appropriate book-entry
adjustment may be made in lieu of the issuance of a new Security.

    Exhibit A-7

     

    

The Indenture contains provisions that
permit the Issuer to elect either (1) to defease and be discharged from the entire indebtedness of this Security or (2) to be released
from its obligations under certain restrictive covenants and Events of Default with respect to this Security, in each case upon
payment in full of the Securities and compliance with certain conditions set forth in the Indenture.

Upon the occurrence of Change of Control
Triggering Event with respect to the Securities of this Series, the Issuer shall be required to make an offer to repurchase the
Securities of this Series on the terms set forth in Section 3.2 of the First Supplemental Indenture.

The provisions of Article XIII of the
Base Indenture shall apply to this Series of the Securities.

If an Event of Default with respect to
Securities of this Series shall occur and be continuing, the principal of the Securities of this Series may be declared due and
payable in the manner and with the effect provided in the Indenture.

The Indenture permits the amendment thereof
and the modification of the rights and obligations of the Issuer and the Guarantors and the rights of the Holders of the Securities
of each Series to be affected under the Indenture at any time by the Issuer, the Guarantors and the Trustee with the consent of
the Holders of a majority in principal amount of the Securities at the time outstanding of each Series to be affected, with certain
exceptions as therein provided with respect to certain modifications or amendments which may not be made without the consent of
each Holder of such Security affected thereby. The Indenture also permits certain amendments and modifications thereto from time
to time by the Issuer, the Guarantors and the Trustee without the consent of the Holders of any Series of the Securities to be
affected thereby for certain specified purposes, including curing ambiguities, defects or inconsistencies and making any such change
that does not adversely affect the legal rights of any Holder of such Series of the Securities, as provided therein.

The Indenture contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each Series at the time outstanding, on behalf of
the Holders of all Securities of such Series, to waive compliance by the Issuer or any of the Guarantors with certain provisions
of the Indenture and certain past defaults under the Indenture and their consequences with respect to such Series. Any such consent
or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security
and of any Security issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Security.

No reference herein to the Indenture
and no provision of this Security or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and any premium and Interest on this Security at the times, place and rate, and in the coin
or Currency, herein prescribed.

As provided in the Indenture and subject
to certain limitations therein set forth, the transfer of this Security is registrable in the security register, upon surrender
of this Security for

    Exhibit A-8

     

    

registration of transfer at the office or agency of the Issuer
in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Issuer and the security Registrar duly executed by, the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this Series and of like tenor, of
authorized denominations and for the same aggregate principal amount, shall be issued to the designated transferee or transferees.

The Securities of this Series are issuable
only in registered form without coupons in denominations of €100,000 and integral multiples of €1,000 in excess thereof.
As provided in the Indenture and subject to certain limitations therein set forth, Securities of this Series are exchangeable for
a like aggregate principal amount of Securities of this Series and of like tenor of a different authorized denomination, as requested
by the Holder surrendering the same.

No service charge shall be made for any
such registration of transfer or exchange, but the Issuer may require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

Prior to due presentment of this Security
for registration of transfer, the Issuer, the Guarantors, the Trustee and any agent of the Issuer, the Guarantors or the Trustee
may treat the person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security
is overdue, and none of the Issuer, the Guarantors, the Trustee or any such agent shall be affected by notice to the contrary.

No recourse shall be had for the payment
of the principal of (and premium, if any) or interest on this Security, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder,
officer or director, as such, past, present or future, of the Issuer, any of the Guarantors or of any successor corporation, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released.

All terms used in this Security which
are defined in the Indenture shall have the meanings assigned to them in the Indenture.

    Exhibit A-9

     

    

Exhibit B

FORM OF GLOBAL SECURITY
FOR THE 1.400% SENIOR NOTES DUE 2031

THIS GLOBAL SECURITY IS HELD BY THE DEPOSITORY
(AS DEFINED IN THE INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF,
AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE ANY SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION
2.7 OF THE INDENTURE, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO THE INDENTURE AND
(IV) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUER.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE
OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE
OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR TO ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY
OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS GLOBAL SECURITY IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF ANY ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
(AND ANY PAYMENT IS MADE TO SUCH ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY), ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF HAS AN INTEREST
HEREIN.

    Exhibit B-1

     

    

1.400% Senior Notes due 2031

ISIN: XS2019815062

Common Code: 201981506

CUSIP No. 68217V AB3

€500,000,000

No. 1

OMNICOM FINANCE HOLDINGS PLC, a public
limited company organized under the laws of England and Wales (the “Issuer,” which term includes any successor person
under the Indenture hereinafter referred to), for value received, hereby promises to pay to BT GLOBENET NOMINEES LIMITED, or registered
assigns, the principal sum of €500,000,000 on July 8, 2031 and to pay interest thereon from July 8, 2019 or from the most
recent interest payment date to which interest has been paid or duly provided for, annually on July 8 in each year, commencing
July 8, 2020, at the rate of 1.400% per annum, set forth below. The interest so payable, and punctually paid or duly provided for,
on any interest payment date shall, as provided in such Indenture, be paid to the person in whose name this Security (or one or
more predecessor securities) is registered at the close of business on the regular record date for such interest, which shall be
June 23 of each year (whether or not a Business Day), next preceding such interest payment date. Any such interest not so punctually
paid or duly provided for shall forthwith cease to be payable to the Holder on such regular record date and may either be paid
to the person in whose name this Security (or one or more predecessor securities) is registered at the close of business on a special
record date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities of this Series not less than 10 days prior to such special record date, or be paid at any time in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the Securities of this Series may be listed, and upon
such notice as may be required by such exchange, all as more fully provided in said Indenture).

Distributions of principal, premium, if any,
and interest with respect to this Security shall be credited in euro to the extent received by Euroclear or Clearstream, Luxembourg
from the Paying Agent to the cash accounts of Euroclear or Clearstream, Luxembourg participants in accordance with the relevant
system’s rules and procedures.

 

Reference is hereby made to the further
provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect
as if set forth at this place.

This Security is fully and unconditionally
guaranteed by Omnicom Group Inc., a corporation duly organized and existing under the laws of the State of New York (“OGI”),
and Omnicom Capital Inc., a corporation duly organized and existing under the laws of the State of Connecticut (“OCI,”
and, together with OGI, the “Guarantors”), as provided in the Indenture.

This Security shall be deemed to be a
contract made under the laws of the State of New York, and for all purposes shall be construed in accordance with and governed
by the laws of said state.

    Exhibit B-2

     

    

By the execution and delivery of this
Security, the Issuer (i) acknowledges that it has irrevocably designated and appointed OGI (together with any successor, the “Agent
for Service”), as its authorized agent upon which process may be served in any suit or proceeding based on or arising out
of the Securities, that may be instituted in any U.S. federal or state court in the Borough of Manhattan in the City of New York,
County and State of New York, or brought under U.S. federal or state securities laws, and acknowledges that the Agent for Service
has accepted such designation, (ii) submits to the jurisdiction of any such court in any such suit or proceeding, and (iii) agrees
that service of process upon the Agent for Service shall be deemed in every respect effective service of process upon the Issuer
in any such suit or proceeding. The Issuer further agrees to take any and all action, including the execution and filing of any
and all such documents and instruments, as may be necessary to continue such designation and appointment of the Agent for Service
in full force and effect so long as any of the Securities shall be outstanding.

Unless the certificate of authentication
hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled
to any benefit under the Indenture or be valid or obligatory for any purpose.

    Exhibit B-3

     

    

IN WITNESS WHEREOF, the Issuer has caused
this instrument to be duly executed.

 

	Dated:  	
        OMNICOM FINANCE HOLDINGS PLC

        By:                                                                    

        Name:

        Title:

        By:                                                                    

        Name:

        Title:

 

    Exhibit B-4

     

    

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

	 	Deutsche Bank Trust Company Americas, as 
	 	Trustee	 
	 	 	 
	 	By:	 
	 	 	Authorized Signatory

 

Dated:

    Exhibit B-5

     

    

Reverse of Security

OMNICOM FINANCE HOLDINGS PLC

1.400% Senior Notes due 2031

This Security is one of a duly authorized
issue of securities of the Issuer, designated as its 1.400% Senior Notes due 2031 (herein called the “Securities”),
issued and to be issued in one or more Series under an Indenture, dated as of July 8, 2019 (the “Base Indenture”),
between the Issuer, the Guarantors and Deutsche Bank Trust Company Americas, as Trustee (herein called the “Trustee,”
which term includes any successor trustee under the Indenture), as supplemented by the First Supplemental Indenture dated as of
July 8, 2019, between the Issuer, the Guarantors and the Trustee (the “First Supplemental Indenture” and together with
the Base Indenture, the “Indenture”), to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Issuer, the Guarantors,
the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the Series designated on the face hereof, initially limited in aggregate principal amount to
€500,000,000. Capitalized terms used in this Security and not defined herein have the meaning ascribed thereto in the Indenture.

Deutsche Bank Trust Company Americas,
the Trustee under the Indenture, has been appointed by the Issuer as Paying Agent, Registrar and transfer agent with regard to
the Securities. Deutsche Bank AG, London Branch will serve initially as common depositary of the Depositories with regard to the
Securities.

In case an Event of Default shall have
occurred and be continuing, the principal of and accrued interest on all Securities may be declared, and upon said declaration,
shall become due and payable, in the manner, with the effect and subject to the conditions provided for in the Indenture.

Prior to April 8, 2031 (the “par
call date”), the Securities shall be redeemable, as a whole or in part, at the Issuer’s option, at any time or from
time to time, upon mailed notice (or electronic notice, as applicable) to the registered address of each Holder of Securities of
such Series at least 15 days but not more than 60 days prior to the redemption. The redemption price shall be equal to the greater
of (1) 100% of the principal amount of the Securities to be redeemed and (2) the sum of the present values of the Remaining Scheduled
Payments on such Securities discounted to the date of redemption, on an annual basis (assuming an ACTUAL/ACTUAL (ICMA) day count
fraction), at the applicable Comparable Government Bond Rate plus 30 basis points, plus accrued and unpaid interest thereon, if
any, to, but excluding, the redemption date, as calculated by an Independent Investment Banker.

On or after the par call date, the Securities
shall be redeemable, as a whole or in part, at the Issuer’s option, at any time or from time to time, upon mailed notice
(or electronic notice, as applicable) to the registered address of each Holder of Securities of such Series at least 15 days but
not more than 60 days prior to the redemption at a redemption price of 100% of the principal

    Exhibit B-6

     

    

amount of such Securities, plus accrued and unpaid interest
thereon, if any, to, but excluding, the redemption date.

“Comparable Government Bond”
means, in relation to any Comparable Government Bond Rate calculation, at the discretion of an Independent Investment Banker, a
bond that is a direct obligation of the Federal Republic of Germany (“German government bond”), whose maturity is closest
to the Stated Maturity of the Securities to be redeemed, or if such Independent Investment Banker in its discretion determines
that such similar bond is not in issue, such other German government bond as such Independent Investment Banker may, with the advice
of three brokers of, and/or market makers in, German government bonds selected by such Independent Investment Banker, determine
to be appropriate for determining the Comparable Government Bond Rate.

“Comparable Government Bond
Rate” means the price, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards),
at which the gross redemption yield on the Securities to be redeemed, if they were to be purchased at such price on the third Business
Day prior to the date fixed for redemption, would be equal to the gross redemption yield on such Business Day of the Comparable
Government Bond on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time)
on such Business Day as determined by an Independent Investment Banker.

“Independent Investment Banker”
means an investment bank of international standing appointed by the Issuer.

“Remaining Scheduled Payments”
means, with respect to each Security to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon
that would be due after the related redemption date but for such redemption calculated as if the Stated Maturity of such Security
was the par call date; provided, however, that, if such redemption date is not an interest payment date with respect to such Security,
the amount of the next succeeding scheduled interest payment thereon shall be reduced by the amount of interest accrued thereon
to, but excluding, such redemption date.

On and after the redemption date, interest shall
cease to accrue on the Securities or any portion of the Securities called for redemption (unless the Issuer defaults in the payment
of the redemption price and accrued interest). On or before 10:00 a.m. London time on the redemption date, the Issuer shall deposit
with a Paying Agent (or the Trustee) money sufficient to pay the redemption price of and accrued interest on the Securities to
be redeemed on that date. If less than all of the Securities of either Series are to be redeemed, the Securities of such Series
to be redeemed shall be selected by such method as the Trustee deems fair and appropriate, subject to the procedures of the Depositories
as to Global Securities.

 

In the event of redemption of this Security
in part only, a new Security or Securities of this Series and of like tenor for the unredeemed portion hereof shall be issued in
the name of the Holder hereof upon the cancellation hereof; provided that in the case of a Global Security, an appropriate book-entry
adjustment may be made in lieu of the issuance of a new Security.

    Exhibit B-7

     

    

The Indenture contains provisions that
permit the Issuer to elect either (1) to defease and be discharged from the entire indebtedness of this Security or (2) to be released
from its obligations under certain restrictive covenants and Events of Default with respect to this Security, in each case upon
payment in full of the Securities and compliance with certain conditions set forth in the Indenture.

Upon the occurrence of Change of Control
Triggering Event with respect to the Securities of this Series, the Issuer shall be required to make an offer to repurchase the
Securities of this Series on the terms set forth in Section 3.2 of the First Supplemental Indenture.

The provisions of Article XIII of the
Base Indenture shall apply to this Series of the Securities.

If an Event of Default with respect to
Securities of this Series shall occur and be continuing, the principal of the Securities of this Series may be declared due and
payable in the manner and with the effect provided in the Indenture.

The Indenture permits the amendment thereof
and the modification of the rights and obligations of the Issuer and the Guarantors and the rights of the Holders of the Securities
of each Series to be affected under the Indenture at any time by the Issuer, the Guarantors and the Trustee with the consent of
the Holders of a majority in principal amount of the Securities at the time outstanding of each Series to be affected, with certain
exceptions as therein provided with respect to certain modifications or amendments which may not be made without the consent of
each Holder of such Security affected thereby. The Indenture also permits certain amendments and modifications thereto from time
to time by the Issuer, the Guarantors and the Trustee without the consent of the Holders of any Series of the Securities to be
affected thereby for certain specified purposes, including curing ambiguities, defects or inconsistencies and making any such change
that does not adversely affect the legal rights of any Holder of such Series of the Securities, as provided therein.

The Indenture contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each Series at the time outstanding, on behalf of
the Holders of all Securities of such Series, to waive compliance by the Issuer or any of the Guarantors with certain provisions
of the Indenture and certain past defaults under the Indenture and their consequences with respect to such Series. Any such consent
or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security
and of any Security issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Security.

No reference herein to the Indenture
and no provision of this Security or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and any premium and Interest on this Security at the times, place and rate, and in the coin
or Currency, herein prescribed.

As provided in the Indenture and subject
to certain limitations therein set forth, the transfer of this Security is registrable in the security register, upon surrender
of this Security for

    Exhibit B-8

     

    

registration of transfer at the office or agency of the Issuer
in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Issuer and the security Registrar duly executed by, the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this Series and of like tenor, of
authorized denominations and for the same aggregate principal amount, shall be issued to the designated transferee or transferees.

The Securities of this Series are issuable
only in registered form without coupons in denominations of €100,000 and integral multiples of €1,000 in excess thereof.
As provided in the Indenture and subject to certain limitations therein set forth, Securities of this Series are exchangeable for
a like aggregate principal amount of Securities of this Series and of like tenor of a different authorized denomination, as requested
by the Holder surrendering the same.

No service charge shall be made for any
such registration of transfer or exchange, but the Issuer may require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

Prior to due presentment of this Security
for registration of transfer, the Issuer, the Guarantors, the Trustee and any agent of the Issuer, the Guarantors or the Trustee
may treat the person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security
is overdue, and none of the Issuer, the Guarantors, the Trustee or any such agent shall be affected by notice to the contrary.

No recourse shall be had for the payment
of the principal of (and premium, if any) or interest on this Security, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder,
officer or director, as such, past, present or future, of the Issuer, any of the Guarantors or of any successor corporation, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released.

All terms used in this Security which
are defined in the Indenture shall have the meanings assigned to them in the Indenture.

    Exhibit B-9Exhibit 4.1

 

Execution Version

 

REGISTRATION RIGHTS AGREEMENT

 

BY AND AMONG

 

NGL ENERGY PARTNERS LP

 

AND

 

THE PURCHASERS NAMED ON SCHEDULE A HERETO

 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of July 2, 2019, by and among NGL Energy Partners LP, a Delaware limited partnership (the “Partnership”), and each of the Persons set forth on Schedule A to this Agreement (each, a “Purchaser” and collectively, the “Purchasers”).

 

WHEREAS, this Agreement is entered into in connection with the closing of the issuance and sale of the Preferred Units (as defined below) and the Warrants (as defined below), pursuant to the Class D Preferred Unit and Warrant Purchase Agreement, dated as of July 2, 2019 (the “Purchase Agreement”), by and among the Partnership and the Purchasers;

 

WHEREAS, the Partnership has agreed to provide the registration and other rights set forth in this Agreement for the benefit of the Purchasers pursuant to the Purchase Agreement; and

 

WHEREAS, it is a condition to the obligations of each Purchaser and the Partnership under the Purchase Agreement that this Agreement be executed and delivered;

 

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each party hereto, the parties hereby agree as follows:

 

ARTICLE I
 DEFINITIONS

 

Section 1.01                             Definitions.  Capitalized terms used herein without definition shall have the meanings given to them in the Purchase Agreement.  The terms set forth below are used herein as so defined:

 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.  As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.  For avoidance of doubt, for purposes of this Agreement, (i) the Partnership, on the one hand, and the Purchasers,

 

 

on the other hand, shall not be considered Affiliates and (ii) any fund, entity or account managed, advised or sub-advised, directly or indirectly, by a Purchaser or any of its Affiliates, shall be considered an Affiliate of such Purchaser.  For purposes of this Agreement, any fund, entity or account managed, advised or sub-advised, directly or indirectly, by any Purchaser or any of its Affiliates or the direct or indirect equity owners, including limited partners, of such Purchaser or Affiliate, shall be considered an Affiliate of such Purchaser.

 

“Agreement” has the meaning specified therefor in the introductory paragraph of this Agreement.

 

“Amended Partnership Agreement” means the Sixth Amended and Restated Agreement of Limited Partnership of the Partnership, as amended as of the Closing Date.

 

“Business Day” means any day other than a Saturday, Sunday, any federal legal holiday or day on which banking institutions in the State of New York or State of Oklahoma are authorized or required by law or other governmental action to close.

 

“Closing Date” means July 2, 2019.

 

“Common Unit” has the meaning specified therefor in Article I of the Amended Partnership Agreement.

 

“Common Unit Price” means $14.54.

 

“Common Unit Registrable Securities” means the Common Units issued or issuable upon the exercise of the Warrants or upon redemption of the Preferred Units, and includes any type of ownership interest issued to the Holders as a result of Section 3.04 of this Agreement.

 

“Delay Liquidated Damages” has the meaning specified therefor in Section 2.03 of this Agreement.

 

“Effective Date” means, with respect to a particular Shelf Registration Statement, the date of effectiveness of such Shelf Registration Statement.

 

“Effectiveness Deadline” has the meaning specified therefor in Section 2.01(a) of this Agreement.

 

“Effectiveness Period” means the period beginning on the Effective Date for the Registration Statement and ending at the time all Registrable Securities covered by such Registration Statement have ceased to be Registrable Securities.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Existing Registration Rights Agreement” means the First Amended and Restated Registration Rights Agreement dated as of October 3, 2011 by and among the Partnership and the investors party thereto, as amended from time to time.

 

2

 

“General Partner” means NGL Energy Holdings LLC, a Delaware limited liability company.

 

“Governmental Authority” means any federal, state, local or foreign government, or other governmental, regulatory or administrative authority, agency or commission or any court, tribunal, or judicial or arbitral body.

 

“Holder” means the record holder of any Registrable Securities.  In accordance with Section 3.05 of this Agreement, for purposes of determining the availability of any rights and applicability of any obligations under this Agreement, including, calculating the amount of Registrable Securities held by a Holder, a Holder’s Registrable Securities shall be aggregated together with all Registrable Securities held by other Holders who are Affiliates of such Holder.

 

“In-Kind LD Amount” has the meaning specified therefor in Section 2.01(b) of this Agreement.

 

“Included Registrable Securities” has the meaning specified therefor in Section 2.02(a) of this Agreement.

 

“Launch” has the meaning specified therefor in Section 2.04 of this Agreement.

 

“Law” means any statute, law, ordinance, regulation, rule, order, code, governmental restriction, decree, injunction or other requirement of law, or any judicial or administrative interpretation thereof, of any Governmental Authority.

 

“LD Period” has the meaning specified therefor in Section 2.01(b) of this Agreement.

 

“LD Termination Date” has the meaning specified therefor in Section 2.01(b) of this Agreement.

 

“Liquidated Damages” has the meaning specified therefor in Section 2.01(b) of this Agreement.

 

“Liquidated Damages Multiplier” means the sum of (a) the product of the Common Unit Price times the number of Warrant Common Unit Registrable Securities held by the applicable Holder plus (b) the product of the Preferred Unit Price times the number of Preferred Unit Registrable Securities held by the applicable Holder.

 

“Losses” has the meaning specified therefor in Section 2.09(a) of this Agreement.

 

“Managing Underwriter” means, with respect to any Underwritten Offering, the book-running lead manager of such Underwritten Offering.

 

“NYSE” means The New York Stock Exchange, Inc.

 

“Opt-Out Notice” has the meaning specified therefor in Section 2.02(a) of this Agreement.

 

3

 

“Partnership” has the meaning specified therefor in the introductory paragraph of this Agreement.

 

“Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

 

“Piggyback Threshold Amount” means $5.0 million.

 

“Post-Launch Withdrawing Selling Holders” has the meaning specified therefor in Section 2.04 of this Agreement.

 

“Preferred Unit Price” means $1,000.

 

“Preferred Units” means the Class D Preferred Units of the Partnership initially purchased and sold pursuant to the Purchase Agreement and issued pursuant to the Amended Partnership Agreement.

 

“Preferred Unit Registrable Securities” means the Preferred Units, all of which are subject to the rights of Preferred Unit Registrable Securities provided herein until such time as such securities cease to be Registrable Securities pursuant to Section 1.02.

 

“Purchase Agreement” has the meaning specified therefor in the recitals of this Agreement.

 

“Purchaser” and “Purchasers” have the meanings specified therefor in the introductory paragraph of this Agreement.

 

“Registrable Securities” means the Common Unit Registrable Securities and the Preferred Unit Registrable Securities.

 

“Registrable Securities Amount” means the calculation based on the product of the Common Unit Price times the number of Registrable Securities.

 

“Registration Expenses” has the meaning specified therefor in Section 2.08(b) of this Agreement.

 

“Registration Statement” has the meaning specified therefor in Section 2.01(a) of this Agreement.

 

“SEC” means the U.S.  Securities and Exchange Commission.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Selling Expenses” has the meaning specified therefor in Section 2.08(b) of this Agreement.

 

“Selling Holder” means a Holder who is selling Registrable Securities under a Registration Statement pursuant to the terms of this Agreement.

 

4

 

“Selling Holder Indemnified Persons” has the meaning specified therefor in Section 2.09(a) of this Agreement.

 

“Shelf Registration Statement” means a registration statement under the Securities Act to permit the public resale of the Registrable Securities from time to time as permitted by Rule 415 under the Securities Act (or any successor or similar provision adopted by the SEC then in effect).

 

“Underwritten Offering” means an offering (including an offering pursuant to a Shelf Registration Statement) in which Registrable Securities are sold to one or more underwriters on a firm commitment basis for reoffering to the public or an offering that is a “bought deal” with one or more investment banks.

 

“Underwritten Offering Notice” has the meaning specified therefor in Section 2.04 of this Agreement.

 

“VWAP Price” means, for each such period of measurement, the volume weighted average closing price of a Common Unit on the national securities exchange on which the Common Units are then listed (or admitted to trading).

 

“Warrant” has the meaning specified therefor in Section 1.01 of the Purchase Agreement.

 

“Warrant Common Unit Registrable Securities” means the Common Units issued or issuable upon the exercise of the Warrants.

 

Section 1.02                             Registrable Securities.  Any Registrable Security shall cease to be a Registrable Security at the earliest of the following: (a) when a registration statement covering such Registrable Security becomes or has been declared effective by the SEC and such Registrable Security has been sold or disposed of pursuant to such effective registration statement; (b) when such Registrable Security has been sold or disposed of (excluding transfers or assignments by a Holder to an Affiliate) pursuant to Rule 144 under the Securities Act (or any successor or similar provision adopted by the SEC then in effect) under circumstances in which all of the applicable conditions of Rule 144 (as then in effect) are met; (c) when such Registrable Security is held by the Partnership or one of its direct or indirect subsidiaries; or (d) when such Registrable Security has been sold or disposed of in a private transaction in which the transferor’s rights under this Agreement are not assigned to the transferee of such securities pursuant to Section 2.11 hereof.

 

ARTICLE II
 REGISTRATION RIGHTS

 

Section 2.01                             Shelf Registration.

 

(a)                                 Shelf Registration.  Within 180 calendar days of the Closing Date, the Partnership shall use commercially reasonable efforts to prepare and file a Shelf Registration Statement with the SEC to permit the public resale of all Registrable Securities on the terms and conditions specified in this Section 2.01 (a “Registration Statement”).  The Registration Statement filed

 

5

 

with the SEC pursuant to this Section 2.01(a) shall be on Form S-3 or, if Form S-3 is not then available to the Partnership, on Form S-1 or such other form of registration statement as is then available to effect a registration for resale of the Registrable Securities, covering the Registrable Securities, and shall contain a prospectus in such form as to permit any Selling Holder covered by such Registration Statement to sell such Registrable Securities pursuant to Rule 415 under the Securities Act (or any successor or similar provision adopted by the SEC then in effect) at any time beginning on the Effective Date for such Registration Statement; provided, however, such Registration Statement shall not be filed on a shelf registration statement that automatically becomes effective upon filing.  The Partnership shall use commercially reasonable efforts to cause a Registration Statement filed pursuant to this Section 2.01(a) to be declared effective within 360 calendar days after the Closing Date (the “Effectiveness Deadline”).  A Registration Statement shall provide for the resale pursuant to any method or combination of methods legally available to, and requested by, the Selling Holders, including by way of an Underwritten Offering, if such an election has been made pursuant to Section 2.04 of this Agreement.  During the Effectiveness Period, the Partnership shall use commercially reasonable efforts to cause a Registration Statement filed pursuant to this Section 2.01(a) to remain effective, and to be supplemented and amended to the extent necessary to ensure that such Registration Statement is available or, if not available, that another registration statement is available for the resale of the Registrable Securities until the date on which all Registrable Securities have ceased to be Registrable Securities.  The Partnership shall prepare and file a supplemental listing application with the NYSE (or such other national securities exchange on which the Warrant Common Unit Registrable Securities are then listed and traded) to list the Warrant Common Unit Registrable Securities covered by a Registration Statement and shall use commercially reasonable efforts to have such Warrant Common Unit Registrable Securities approved for listing on the NYSE (or such other national securities exchange on which the Registrable Securities are then listed and traded) by the Effective Date of such Registration Statement, subject only to official notice of issuance.  Within two Business Days of the Effective Date of a Registration Statement, the Partnership shall notify the Selling Holders of the effectiveness of such Registration Statement.

 

When effective, a Registration Statement (including the documents incorporated therein by reference) will comply as to form in all material respects with all applicable requirements of the Securities Act and the Exchange Act and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any prospectus contained in such Registration Statement, in the light of the circumstances under which a statement is made).  If the Managing Underwriter of any proposed Underwritten Offering of Registrable Securities (other than an Underwritten Offering of Included Registrable Securities pursuant to Section 2.02) advises the Partnership that the inclusion of all of the Selling Holders’ Registrable Securities that the Selling Holders intend to include in such offering exceeds the number that can be sold in such offering without being likely to have an adverse effect on the price, timing or distribution of the Registrable Securities offered or the market for the Registrable Securities, then the Registrable Securities to be included in such Underwritten Offering shall include the number of Registrable Securities that such Managing Underwriter advises the Partnership can be sold without having such adverse effect, with such number to be allocated (i) first, to the Selling Holders, allocated among such Selling Holders pro rata on the basis of the number of Registrable Securities held by each such Selling Holder or in such other manner as such Selling Holders may agree, and (ii) second, to any other holder of securities of the Partnership having rights of registration that

 

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are neither expressly senior nor subordinated to the Holders in respect of the Registrable Securities.

 

(b)                                 Failure to Go Effective.  If a Registration Statement required to be filed by Section 2.01(a) is not declared effective on or prior to the Effectiveness Deadline, then each Holder shall be entitled to a payment in cash (with respect to each Registrable Security held by the Holder), as liquidated damages and not as a penalty, of 0.25% of the Liquidated Damages Multiplier per 30-day period, which shall accrue daily, for the first 60 calendar days immediately following the Effectiveness Deadline, increasing by an additional 0.25% of the Liquidated Damages Multiplier per 30-calendar-day period, which shall accrue daily, for each subsequent 30-calendar-day period (i.e., 0.5% for 61-90 calendar days, 0.75% for 91-120 calendar days and 1.00% thereafter), up to a maximum of 1.00% of the Liquidated Damages Multiplier per 30-calendar-day period, until such time as such Registration Statement is declared effective or when the Registrable Securities covered by such Registration Statement cease to be Registrable Securities (the “Liquidated Damages”).  The Liquidated Damages payable pursuant to the immediately preceding sentence shall be payable within 10 Business Days after the end of each such 30-calendar-day period.  Any Liquidated Damages shall be paid to each Holder in immediately available funds; provided, however, if the Partnership certifies that it is unable to pay Liquidated Damages in cash because such payment would result in a breach of any covenant or constitute a default under a credit facility, indenture, note purchase agreement or other debt instrument filed as an exhibit to the Partnership’s periodic reports filed with the SEC, then the Partnership may pay such Liquidated Damages using as much cash as permitted without breaching any such credit facility or other debt instrument and shall pay the balance of such Liquidated Damages (the “In-Kind LD Amount”) in kind in the form of the issuance of additional Common Units.  Prior to any issuance of Common Units as Liquidated Damages, the Partnership shall promptly (A) prepare and file an amendment to such Registration Statement prior to its effectiveness adding such Common Units to such Registration Statement as additional Registrable Securities and (B) prepare and file a supplemental listing application with the NYSE (or such other national securities exchange on which the Registrable Securities are then listed and traded) to list such additional Common Units.  The determination of the number of Common Units to be issued as Liquidated Damages shall be equal to the In-Kind LD Amount divided by the VWAP Price calculated for the consecutive 10 trading day period ending on the close of trading on the trading day immediately preceding the date on which the Liquidated Damages payment is due, less a discount to such average closing price of 7.0%.  The accrual of Liquidated Damages to a Holder shall cease (an “LD Termination Date,” and, each such period beginning on an Effectiveness Deadline and ending on an LD Termination Date being, an “LD Period”) at the earlier of (1) the Registration Statement being declared effective and (2) when the Holder’s Registrable Securities covered by such Registration Statement cease to be Registrable Securities.  Any amount of Liquidated Damages shall be prorated for any period of less than 30 calendar days accruing during an LD Period.  If the Partnership is unable to cause a Registration Statement to be declared effective on or prior to the Effectiveness Deadline as a result of an acquisition, merger, reorganization, disposition or other similar transaction, then the Partnership may request a waiver of the Liquidated Damages, and each Holder may individually grant or withhold its consent to such request in its discretion.  Nothing in this Section 2.01(b) shall relieve the Partnership from its obligations under Section 2.01(a).

 

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Section 2.02                             Piggyback Rights.

 

(a)                                 Participation.  So long as a Holder has Common Unit Registrable Securities, if the Partnership proposes to file (i) a shelf registration statement other than a Registration Statement contemplated by Section 2.01(a), (ii) a prospectus supplement to an effective shelf registration statement relating to the sale of equity securities of the Partnership for its own account or that of another Person, or both, other than a Registration Statement contemplated by Section 2.01(a) and Holders may be included without the filing of a post-effective amendment thereto, or (iii) a registration statement, other than a shelf registration statement, in each case, for the sale of Common Units in an Underwritten Offering for its own account or that of another Person, or both, then promptly following the selection of the Managing Underwriter for such Underwritten Offering, the Partnership shall give notice of such Underwritten Offering to each Holder (together with its Affiliates) holding at least the Piggyback Threshold Amount of the then-outstanding Common Unit Registrable Securities (calculated based on the Common Unit Price) and such notice shall offer such Holders the opportunity to include in such Underwritten Offering such number of Common Unit Registrable Securities (the “Included Registrable Securities”) as each such Holder may request in writing; provided, however, that (A) the Partnership shall not be required to provide such opportunity to any such Holder that does not offer a minimum of the Piggyback Threshold Amount of Common Unit Registrable Securities (based on the Common Unit Price), or such lesser amount if it constitutes the remaining holdings of such Holder, and (B) if the Partnership has been advised by the Managing Underwriter that the inclusion of Common Unit Registrable Securities for sale for the benefit of the Holders will have an adverse effect on the price, timing or distribution of the Common Units in the Underwritten Offering, then (x) if no Common Unit Registrable Securities can be included in the Underwritten Offering in the opinion of the Managing Underwriter, the Partnership shall not be required to offer such opportunity to the Holders or (y) if any Common Unit Registrable Securities can be included in the Underwritten Offering in the opinion of the Managing Underwriter, then the amount of Common Unit Registrable Securities to be offered for the accounts of Holders shall be determined based on the provisions of Section 2.02(b).  Any notice required to be provided in this Section 2.02(a) to Holders shall be provided on a Business Day and receipt of such notice shall be confirmed by the Holder.  Each such Holder shall then have five Business Days (or three Business Days in connection with any overnight or bought Underwritten Offering) after notice has been delivered to request in writing the inclusion of Common Unit Registrable Securities in the Underwritten Offering.  If no written request for inclusion from a Holder is received within the specified time, each such Holder shall have no further right to participate in such Underwritten Offering.  If, at any time after giving written notice of its intention to undertake an Underwritten Offering and prior to the closing of such Underwritten Offering, the Partnership shall determine for any reason not to undertake or to delay such Underwritten Offering, the Partnership may, at its election, give written notice of such determination to the Selling Holders and, (1) in the case of a determination not to undertake such Underwritten Offering, shall be relieved of its obligation to sell any Included Registrable Securities in connection with such terminated Underwritten Offering, and (2) in the case of a determination to delay such Underwritten Offering, shall be permitted to delay offering any Included Registrable Securities as part of such Underwritten Offering for the same period as the delay in the Underwritten Offering.  Any Selling Holder shall have the right to withdraw such Selling Holder’s request for inclusion of such Selling Holder’s Common Unit Registrable Securities in such Underwritten Offering by giving written notice to the Partnership of such withdrawal at or prior to the time of pricing of such Underwritten Offering.  Any Holder may

 

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deliver written notice (an “Opt-Out Notice”) to the Partnership requesting that such Holder not receive notice from the Partnership of any proposed Underwritten Offering; provided, however, that such Holder may later revoke any such Opt-Out Notice in writing.  Following receipt of an Opt-Out Notice from a Holder (unless subsequently revoked), the Partnership shall not be required to deliver any notice to such Holder pursuant to this Section 2.02(a) and such Holder shall no longer be entitled to participate in Underwritten Offerings by the Partnership pursuant to this Section 2.02(a).

 

(b)                                 Priority.  If the Managing Underwriter of any proposed Underwritten Offering of Common Units included in an Underwritten Offering involving Included Registrable Securities pursuant to this Section 2.02 advises the Partnership that the total amount of Common Units that the Selling Holders and any other Persons intend to include in such offering exceeds the number of Common Units that can be sold in such offering without being likely to have an adverse effect on the price, timing or distribution of the Common Units offered or the market for the Common Units, then the Common Units to be included in such Underwritten Offering shall include the number of Common Unit Registrable Securities that such Managing Underwriter advises the Partnership can be sold without having such adverse effect, with such number to be allocated (i) first, to the Partnership or other party or parties requesting or initiating such registration or to any other holder of securities of the Partnership having rights of registration pursuant to the Existing Registration Rights Agreement and (ii) second, by the Selling Holders who have requested participation in such Underwritten Offering and by the other holders of Common Units (other than holders of Common Unit Registrable Securities) with registration rights entitling them to participate in such Underwritten Offering, allocated among such Selling Holders and other holders pro rata on the basis of the number of Common Unit Registrable Securities or Common Units proposed to be sold by each applicable Selling Holder or other holder in such Underwritten Offering (based, for each such participant, on the percentage derived by dividing (x) the number of Common Units proposed to be sold by such participant in such Underwritten Offering by (y) the aggregate number of Common Units proposed to be sold by all participants in such Underwritten Offering) or in such manner as they may agree. The allocation of Common Units to be included in any Underwritten Offering other than an Underwritten Offering involving Included Registrable Securities pursuant to this Section 2.02 shall be governed by Section 2.01(a).

 

(c)                                  Termination of Piggyback Registration Rights.  Each Holder’s rights under this Section 2.02 shall terminate upon such Holder ceasing to hold at least the Piggyback Threshold Amount of Common Unit Registrable Securities (calculated based on the Common Unit Price).

 

Section 2.03                             Delay Rights.

 

Notwithstanding anything to the contrary contained herein, the Partnership may, upon written notice to (i) all Holders, delay the filing of a Registration Statement required under Section 2.01(a), or (ii) any Selling Holder whose Registrable Securities are included in a Registration Statement or other registration statement contemplated by this Agreement, suspend such Selling Holder’s use of any prospectus that is a part of such Registration Statement or other registration statement (in which event the Selling Holder shall discontinue sales of the Registrable Securities pursuant to such Registration Statement or other registration statement contemplated by this Agreement but may settle any previously made sales of Registrable

 

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Securities) if the Partnership (x) is pursuing an acquisition, merger, reorganization, disposition or other similar transaction and the General Partner determines in good faith that the Partnership’s ability to pursue or consummate such a transaction would be materially adversely affected by any required disclosure of such transaction in such Registration Statement or other registration statement or (y) has experienced some other material non-public event the disclosure of which at such time, in the good faith judgment of the General Partner, would materially adversely affect the Partnership; provided, however, in no event shall (A) filing of such Registration Statement be delayed under clauses (x) or (y) of this Section 2.03 for a period that exceeds 90 calendar days or (B) such Selling Holders be suspended under clauses (x) or (y) of this Section 2.03 from selling Registrable Securities pursuant to such Registration Statement or other registration statement for a period that exceeds an aggregate of 45 calendar days in any 180 calendar-day period or 90 calendar days in any 365 calendar-day period, in each case, exclusive of days covered by any lock-up agreement executed by a Selling Holder in connection with any Underwritten Offering.  Upon disclosure of such information or the termination of the condition described above, the Partnership shall provide prompt notice, but in any event within one Business Day of such disclosure or termination, to the Selling Holders whose Registrable Securities are included in such Registration Statement and shall promptly terminate any suspension of sales it has put into effect and shall take such other reasonable actions to permit registered sales of Registrable Securities as contemplated in this Agreement.

 

If (i) the Selling Holders shall be prohibited or prevented from selling their Registrable Securities under a Registration Statement or other registration statement contemplated by this Agreement as a result of a delay or suspension pursuant to the immediately preceding paragraph in excess of the periods permitted therein or (ii) a Registration Statement or other registration statement contemplated by this Agreement is filed and is declared effective but, during the Effectiveness Period, shall thereafter cease to be effective or fail to be usable for its intended purpose without being succeeded within 60 calendar days by a post-effective amendment thereto, a supplement to the prospectus or a report filed with the SEC pursuant to Section 13(a), 13(c), 14 or l5(d) of the Exchange Act, then, until the suspension is lifted or the Registration Statement required under Section 2.01(a), a post-effective amendment, supplement or report is filed with the SEC, but not including any day on which a suspension is lifted or such Registration Statement, amendment, supplement or report is filed with the SEC, if applicable, each Selling Holder shall be entitled to a payment (with respect to each Registrable Security) from the Partnership, as liquidated damages and not as a penalty, of 0.25% of the Liquidated Damages Multiplier per 30-calendar-day period, which shall accrue daily, for the first 60 calendar days immediately following the earlier of (x) the date on which the suspension or delay period exceeded the permitted period and (y) the 31st calendar day after such Shelf Registration Statement ceased to be effective or failed to be usable for its intended purposes, with such payment amount increasing by an additional 0.25% of the Liquidated Damages Multiplier per 30-day period, which shall accrue daily, for each subsequent 30-calendar-day period (i.e., 0.5% for 61-90 calendar days, 0.75% for 91-120 calendar days and 1.00% thereafter), up to a maximum of 1.00% of the Liquidated Damages Multiplier per 30-day period (the “Delay Liquidated Damages”).  For purposes of this paragraph, a suspension or delay shall be deemed lifted with respect to a Selling Holder on the date that (A) notice that the suspension has been terminated is delivered to such Selling Holder, (B) the Registration Statement required under Section 2.01(a) is filed with the SEC, or (C) a post-effective amendment or supplement to the prospectus or report is filed with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the

 

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Exchange Act.  Any Delay Liquidated Damages shall cease to accrue pursuant to this paragraph upon the earlier of (1) a suspension or delay being deemed lifted and (2) when such Selling Holder no longer holds Registrable Securities included in such Registration Statement, and shall be payable within 10 Business Days after the end of each such 30-day period.  Any amount of Delay Liquidated Damages shall be prorated for any period of less than 30 calendar days in which the payment of Delay Liquidated Damages ceases.  Any Delay Liquidated Damages shall be paid to each Selling Holder in immediately available funds.

 

Section 2.04                             Underwritten Offerings.  In the event that any Holder or Holders that are Affiliates of each other (the “Electing Holders”) elect to include, other than pursuant to Section 2.02 of this Agreement, at least the lesser of (i) $15.0 million of Common Unit Registrable Securities in the aggregate (calculated based on the expected gross proceeds of the Underwritten Offering of such Common Unit Registrable Securities) and (ii) 100% of the then outstanding Common Unit Registrable Securities held by such Electing Holders under a Registration Statement pursuant to an Underwritten Offering, the Partnership shall, upon request by the Electing Holders (such request, an “Underwritten Offering Notice”), retain underwriters to permit the Electing Holders to effect such sale through an Underwritten Offering; provided, however, that each Holder, together with its Affiliates, shall have the option and right to require the Partnership to effect not more than four Underwritten Offerings in the aggregate, subject to a maximum of one Underwritten Offering during any 90-day period.  Upon delivery of such Underwritten Offering Notice to the Partnership, the Partnership shall as soon as practicable (but in no event later than one Business Day following the date of delivery of the Underwritten Offering Notice to the Partnership) deliver notice of such Underwritten Offering Notice to all other Holders, who shall then have two Business Days from the date that such notice is given to them to notify the Partnership in writing of the number of Common Unit Registrable Securities held by such Holder that they want to be included in such Underwritten Offering.  Any Holders notified about an Underwritten Offering by the Partnership after the Partnership has received the corresponding Underwritten Offering Notice may participate in such Underwritten Offering, but shall not count toward the $15.0 million of Common Unit Registrable Securities required under clause (i) of this Section 2.04 to request an Underwritten Offering pursuant to an Underwritten Offering Notice.  In connection with any Underwritten Offering under this Agreement, the Holders of a majority of the Common Unit Registrable Securities being sold in such Underwritten Offering shall be entitled to select the Managing Underwriter or Underwriters, but only with the consent of the Partnership, which shall not be unreasonably withheld, delayed or conditioned.  In connection with an Underwritten Offering contemplated by this Agreement in which a Selling Holder participates, each Selling Holder and the Partnership shall be obligated to enter into an underwriting agreement that contains such representations, covenants, indemnities and other rights and obligations as are customary in underwriting agreements for firm commitment offerings of securities.  No Selling Holder may participate in such Underwritten Offering unless such Selling Holder agrees to sell its Common Unit Registrable Securities on the basis provided in such underwriting agreement and completes and executes all questionnaires, powers of attorney, indemnities and other documents reasonably required under the terms of such underwriting agreement.  Each Selling Holder may, at its option, require that any or all of the representations and warranties by, and the other agreements on the part of, the Partnership to and for the benefit of such underwriters also be made to and for such Selling Holder’s benefit and that any or all of the conditions precedent to the obligations of such underwriters under such underwriting agreement also be conditions precedent to its obligations.  No Selling Holder shall

 

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be required to make any representations or warranties to or agreements with the Partnership or the underwriters other than representations, warranties or agreements regarding such Selling Holder, its authority to enter into such underwriting agreement and to sell, and its ownership of, the securities whose offer and resale will be registered, on its behalf, its intended method of distribution and any other representation required by Law.  If any Selling Holder disapproves of the terms of an underwriting, such Selling Holder may elect to withdraw therefrom by notice to the Partnership, the Electing Holders and the Managing Underwriter; provided, however, that any such withdrawal must be made no later than the time of pricing of such Underwritten Offering.  If all Selling Holders withdraw from an Underwritten Offering prior to the pricing of such Underwritten Offering, the events will not be considered an Underwritten Offering and will not decrease the number of available Underwritten Offerings the Holders have the right and option to request under this Section 2.04.  No such withdrawal or abandonment shall affect the Partnership’s obligation to pay Registration Expenses pursuant to Section 2.08; provided, however, that if (A) certain Selling Holders withdraw from an Underwritten Offering after the public announcement at launch (the “Launch”) of such Underwritten Offering (such Selling Holders, the “Post-Launch Withdrawing Selling Holders”), and (B) all Selling Holders withdraw from such Underwritten Offering prior to pricing, other than in either clause (A) or (B) as a result of the occurrence of any event that would reasonably be expected to permit the Partnership to exercise its rights to suspend the use of a Registration Statement or other registration statement pursuant to Section 2.03, then the Post-Launch Withdrawing Selling Holders shall pay for all reasonable Registration Expenses incurred by the Partnership during the period from the Launch of such Underwritten Offering until the time all Selling Holders withdraw from such Underwritten Offering.

 

Section 2.05                             Sale Procedures.

 

In connection with its obligations under this Article II, the Partnership shall, as expeditiously as possible:

 

(a)                                 use its reasonable best efforts to prepare and file with the SEC such amendments and supplements to a Registration Statement and the prospectus used in connection therewith as may be necessary to keep such Registration Statement effective for the Effectiveness Period and as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such Registration Statement;

 

(b)                                 if a prospectus supplement will be used in connection with the marketing of an Underwritten Offering from a Registration Statement and the Managing Underwriter at any time shall notify the Partnership in writing that, in the sole judgment of such Managing Underwriter, inclusion of detailed information to be used in such prospectus supplement is of material importance to the success of the Underwritten Offering of such Registrable Securities, the Partnership shall use its reasonable best efforts to include such information in such prospectus supplement;

 

(c)                                  furnish to each Selling Holder (i) as far in advance as reasonably practicable before filing a Registration Statement or any other registration statement contemplated by this Agreement or any supplement or amendment thereto, upon request, copies of reasonably complete drafts of all such documents proposed to be filed (including exhibits and each

 

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document incorporated by reference therein to the extent then required by the rules and regulations of the SEC), and provide each such Selling Holder the opportunity to object to any information pertaining to such Selling Holder and its plan of distribution that is contained therein and make the corrections reasonably requested by such Selling Holder with respect to such information prior to filing a Registration Statement or such other registration statement or supplement or amendment thereto, and (ii) such number of copies of such Registration Statement or such other registration statement and the prospectus included therein and any supplements and amendments thereto as such Selling Holder may reasonably request in order to facilitate the sale or other disposition of the Registrable Securities covered by such Registration Statement or other registration statement;

 

(d)                                 if applicable, use its reasonable best efforts to register or qualify the Registrable Securities covered by a Registration Statement or any other registration statement contemplated by this Agreement under the securities or blue sky laws of such jurisdictions as the Selling Holders or, in the case of an Underwritten Offering, the Managing Underwriter, shall reasonably request; provided, however, that the Partnership shall not be required to qualify generally to transact business in any jurisdiction where it is not then required to so qualify or to take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject;

 

(e)                                  promptly notify each Selling Holder, at any time when a prospectus relating thereto is required to be delivered by any of them under the Securities Act, of (i) the filing of a Registration Statement or any other registration statement contemplated by this Agreement or any prospectus or prospectus supplement to be used in connection therewith, or any amendment or supplement thereto, and, with respect to such Registration Statement or any other registration statement or any post-effective amendment thereto, when the same has become effective; and (ii) the receipt of any written comments from the SEC with respect to any filing referred to in clause (i) and any written request by the SEC for amendments or supplements to such Registration Statement or any other registration statement or any prospectus or prospectus supplement thereto;

 

(f)                                   immediately notify each Selling Holder, at any time when a prospectus relating thereto is required to be delivered by such Selling Holder under the Securities Act, of (i) the happening of any event as a result of which the prospectus or prospectus supplement contained in a Registration Statement or any other registration statement contemplated by this Agreement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any prospectus contained therein, in the light of the circumstances under which a statement is made); (ii) the issuance or express threat of issuance by the SEC of any stop order suspending the effectiveness of such Registration Statement or any other registration statement contemplated by this Agreement, or the initiation of any proceedings for that purpose; or (iii) the receipt by the Partnership of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the applicable securities or blue sky laws of any jurisdiction.  Following the provision of such notice, the Partnership agrees to as promptly as practicable amend or supplement the prospectus or prospectus supplement or take other appropriate action so that the prospectus or prospectus supplement does not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or

 

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necessary to make the statements therein not misleading in the light of the circumstances then existing and to take such other commercially reasonable action as is necessary to remove a stop order, suspension, threat thereof or proceedings related thereto;

 

(g)                                  upon request and subject to appropriate confidentiality obligations, furnish to each Selling Holder copies of any and all transmittal letters or other correspondence with the SEC or any other governmental agency or self-regulatory body or other body having jurisdiction (including any domestic or foreign securities exchange) relating to such offering of Registrable Securities;

 

(h)                                 in the case of an Underwritten Offering, furnish, or use its reasonable best efforts to cause to be furnished, to the underwriters upon request, (i) an opinion of counsel for the Partnership dated the date of the closing under the underwriting agreement and (ii) a “comfort” letter, dated the pricing date of such Underwritten Offering and a letter of like kind dated the date of the closing under the underwriting agreement, in each case, signed by the independent public accountants who have certified the Partnership’s financial statements included or incorporated by reference into the applicable registration statement, and each of the opinion and the “comfort” letter shall be in customary form and covering substantially the same matters with respect to such registration statement (and the prospectus and any prospectus supplement included therein) as have been customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to the underwriters in Underwritten Offerings of securities by the Partnership and such other matters as such underwriters and Selling Holders may reasonably request;

 

(i)                                     otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as reasonably practicable, an earnings statement, covering a period of twelve months beginning within three months after the Effective Date of such Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder;

 

(j)                                    make available to the appropriate representatives of the Managing Underwriter and Selling Holders access to such information and Partnership and General Partner personnel as is reasonable and customary to enable such parties to establish a due diligence defense under the Securities Act; provided, that the Partnership need not disclose any non-public information to any such representative unless and until such representative has entered into a confidentiality agreement with the Partnership;

 

(k)                                 use its reasonable best efforts to cause all Common Unit Registrable Securities registered pursuant to this Agreement to be listed on each securities exchange or nationally recognized quotation system on which the Common Units are then listed or quoted; provided, however, that the Partnership shall have no obligation to cause any Preferred Unit Registrable Securities registered pursuant to this Agreement to be listed on any securities exchange or nationally recognized quotation system;

 

(l)                                     use its reasonable best efforts to cause the Registrable Securities to be registered with or approved by such other governmental agencies or authorities as may be necessary by

 

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virtue of the business and operations of the Partnership to enable the Selling Holders to consummate the disposition of such Registrable Securities;

 

(m)                             provide a transfer agent and registrar for all Registrable Securities covered by such registration statement not later than the Effective Date of such registration statement;

 

(n)                                 enter into customary agreements and take such other actions as are reasonably requested by the Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition of Common Unit Registrable Securities (including, making appropriate officers of the General Partner available to participate in any “road show” presentations before analysts, and other customary marketing activities (including one-on-one meetings with prospective purchasers of the Common Unit Registrable Securities)), provided, however, that in the event the Partnership, using reasonable best efforts, is unable to make such appropriate officers of the General Partner available to participate in connection with any “road show” presentations and other customary marketing activities (whether in person or otherwise), the Partnership shall make such appropriate officers available to participate via conference call or other means of communication in connection with no more than one “road show” presentation per Underwritten Offering;

 

(o)                                 if requested by a Selling Holder, (i) incorporate in a prospectus supplement or post-effective amendment such information as such Selling Holder reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering, and (ii) make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment;

 

(p)                                 if reasonably required by the Partnership’s transfer agent, the Partnership shall promptly deliver any authorizations, certificates, opinions or directions required by the transfer agent which authorize and direct the transfer agent to transfer Registrable Securities without legend upon sale by the Holder of such Registrable Securities under a Registration Statement; and

 

Notwithstanding anything to the contrary in this Section 2.05, the Partnership shall not name a Holder as an underwriter as defined in Section 2(a)(11) of the Securities Act in any Registration Statement without such Holder’s consent.  If the staff of the SEC requires the Partnership to name any Holder as an underwriter as defined in Section 2(a)(11) of the Securities Act, and such Holder does not consent thereto, then such Holder’s Registrable Securities shall not be included on such Registration Statement, such Holder shall no longer be entitled to receive Liquidated Damages under this Agreement with respect to such Holder’s Registrable Securities and the Partnership shall have no further obligations hereunder with respect to Registrable Securities held by such Holder, unless such Holder has not had an opportunity to conduct customary underwriter’s due diligence with respect to the Partnership at the time such Holder’s consent is sought.

 

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Each Selling Holder, upon receipt of notice from the Partnership of the happening of any event of the kind described in Section 2.05(f), shall forthwith discontinue offers and sales of the Registrable Securities by means of a prospectus or prospectus supplement until such Selling Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 2.05(f) or until it is advised in writing by the Partnership that the use of the prospectus may be resumed and has received copies of any additional or supplemental filings incorporated by reference in the prospectus, and, if so directed by the Partnership, such Selling Holder shall, or shall request the Managing Underwriter, if any, to deliver to the Partnership (at the Partnership’s expense) all copies in their possession or control, other than permanent file copies then in such Selling Holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice.

 

Section 2.06                             Cooperation by Holders.

 

The Partnership shall have no obligation to include Registrable Securities of a Holder in a Registration Statement or in an Underwritten Offering pursuant to Section 2.02(a) who has failed to timely furnish after receipt of a written request from the Partnership such information that the Partnership determines, after consultation with its counsel, is reasonably required in order for the registration statement or prospectus supplement, as applicable, to comply with the Securities Act, and any such Holder shall not be entitled to Liquidated Damages or Delay Liquidated Damages in connection with the applicable Registration Statement or other registration statement contemplated by this Agreement.

 

Section 2.07                             Restrictions on Public Sale by Holders of Registrable Securities.

 

Each Holder of Common Unit Registrable Securities that participates in an Underwritten Offering will enter into a customary letter agreement with underwriters providing such Holder will not effect any public sale or distribution of Common Unit Registrable Securities during the 60 calendar-day period beginning on the date of a prospectus or prospectus supplement filed with the SEC with respect to the pricing of any Underwritten Offering, provided that (i) the duration of the foregoing restrictions shall be no longer than the duration of the shortest restriction generally imposed by the underwriters on the Partnership or the officers, directors or any other Affiliate of the Partnership or the General Partner on whom a restriction is imposed and (ii) the restrictions set forth in this Section 2.07 shall not apply to any Common Unit Registrable Securities that are included in such Underwritten Offering by such Holder.  In addition, this Section 2.07 shall not apply to any Holder that is not entitled to participate in such Underwritten Offering, whether because such Holder delivered an Opt-Out Notice prior to receiving notice of the Underwritten Offering or because such Holder (together with its Affiliates) holds less than the Piggyback Threshold Amount of the then-outstanding Common Unit Registrable Securities (calculated based on the Common Unit Registrable Securities Amount) or because the Common Unit Registrable Securities held by such Holder may be disposed of without restriction pursuant to any section of Rule 144 under the Securities Act (or any successor or similar provision adopted by the SEC then in effect).

 

16

 

Section 2.08                             Expenses.

 

(a)                                 Expenses.  Subject to the last sentence of Section 2.04, the Partnership shall pay all reasonable Registration Expenses as determined in good faith by the General Partner, including, in the case of an Underwritten Offering, the reasonable Registration Expenses of an Underwritten Offering, regardless of whether any sale is made pursuant to such Underwritten Offering.  Each Selling Holder shall pay its pro rata share of all Selling Expenses in connection with any sale of its Registrable Securities hereunder.  Each Selling Holder’s pro rata allocation of Selling Expenses shall be the percentage derived by dividing (i) the number of Registrable Securities sold by such Selling Holder in connection with such sale by (ii) the aggregate number of Registrable Securities sold by all Selling Holders in connection with such sale.  In addition, except as otherwise provided in Sections 2.08 and 2.09 hereof, the Partnership shall not be responsible for legal fees incurred by Holders in connection with the exercise of such Holders’ rights hereunder.

 

(b)                                 Certain Definitions.  “Registration Expenses” means all expenses incident to the Partnership’s performance under or compliance with this Agreement to effect the registration of Registrable Securities on a Registration Statement pursuant to Section 2.01(a) or an Underwritten Offering covered under this Agreement, and the disposition of such Registrable Securities, including, without limitation, all registration, filing, securities exchange listing and NYSE fees, all registration, filing, qualification and other fees and expenses of complying with securities or blue sky laws, fees of the Financial Industry Regulatory Authority, Inc., fees of transfer agents and registrars, all word processing, duplicating and printing expenses, any transfer taxes, and the fees and disbursements of counsel and independent public accountants for the Partnership, including the expenses of any special audits or “comfort” letters required by or incident to such performance and compliance, and the reasonable fees and disbursements of one counsel for the Selling Holders participating in such Registration Statement or Underwritten Offering to effect the disposition of such Registrable Securities, selected by the Holders of a majority of the Registrable Securities initially being registered under such Registration Statement or other registration statement as contemplated by this Agreement, subject to the reasonable consent of the Partnership.  “Selling Expenses” means all underwriting discounts and selling commissions or similar fees or arrangements allocable to the sale of the Registrable Securities, and fees and disbursements of counsel to the Selling Holders, except for the reasonable fees and disbursements of counsel for the Selling Holders required to be paid by the Partnership pursuant to Sections 2.08 and 2.09.

 

Section 2.09                             Indemnification.

 

(a)                                 By the Partnership.  In the event of a registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Partnership shall indemnify and hold harmless each Selling Holder thereunder, its directors, officers, managers, partners, employees and agents and each Person, if any, who controls such Selling Holder within the meaning of the Securities Act and the Exchange Act, and its directors, officers, managers, partners, employees or agents (collectively, the “Selling Holder Indemnified Persons”), against any losses, claims, damages, expenses or liabilities (including reasonable attorneys’ fees and expenses) (collectively, “Losses”), joint or several, to which such Selling Holder Indemnified Person may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such Losses (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact (in the case

 

17

 

of any prospectus, in light of the circumstances under which such statement is made) contained in (which includes documents incorporated by reference in) such Registration Statement or any other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus supplement or final prospectus contained therein, or any amendment or supplement thereof, or any free writing prospectus relating thereto or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in light of the circumstances under which they were made) not misleading, and shall reimburse each such Selling Holder Indemnified Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or resolving any such Loss or actions or proceedings; provided, however, that the Partnership shall not be liable in any such case if and to the extent that any such Loss arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by such Selling Holder Indemnified Person in writing specifically for use in such Registration Statement or such other registration statement, or prospectus supplement, as applicable.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Selling Holder Indemnified Person, and shall survive the transfer of such securities by such Selling Holder.

 

(b)                                 By Each Selling Holder.  Each Selling Holder agrees severally and not jointly to indemnify and hold harmless the Partnership, the General Partner, its directors, officers, employees and agents and each Person, if any, who controls the Partnership within the meaning of the Securities Act or of the Exchange Act, and its directors, officers, employees and agents, to the same extent as the foregoing indemnity from the Partnership to the Selling Holders, but only with respect to information regarding such Selling Holder furnished in writing by or on behalf of such Selling Holder expressly for inclusion in such Registration Statement or any other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus supplement or final prospectus contained therein, or any amendment or supplement thereof, or any free writing prospectus relating thereto; provided, however, that the liability of each Selling Holder shall not be greater in amount than the dollar amount of the proceeds (net of any Selling Expenses) received by such Selling Holder from the sale of the Registrable Securities giving rise to such indemnification.

 

(c)                                  Notice.  Promptly after receipt by an indemnified party hereunder of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying party in writing thereof, but the omission to so notify the indemnifying party shall not relieve it from any liability that it may have to any indemnified party other than under this Section 2.09.  In any action brought against any indemnified party, it shall notify the indemnifying party of the commencement thereof.  The indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party and, after notice from the indemnifying party to such indemnified party of its election so to assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 2.09 for any legal expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation and of liaison with counsel so selected; provided, however, that, (i) if the indemnifying party has failed to assume the defense or employ counsel reasonably acceptable to

 

18

 

the indemnified party or (ii) if the defendants in any such action include both the indemnified party and the indemnifying party and counsel to the indemnified party shall have concluded that there may be reasonable defenses available to the indemnified party that are different from or additional to those available to the indemnifying party, or if the interests of the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying party, then the indemnified party shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the reasonable expenses and fees of such separate counsel and other reasonable expenses related to such participation to be reimbursed by the indemnifying party as incurred.  Notwithstanding any other provision of this Agreement, no indemnifying party shall settle any action brought against any indemnified party with respect to which such indemnified party is entitled to indemnification hereunder without the consent of the indemnified party, unless the settlement thereof imposes no liability or obligation on, and includes a complete and unconditional release from all liability of, and does not contain any admission of wrongdoing by, the indemnified party.

 

(d)                                 Contribution.  If the indemnification provided for in this Section 2.09 is held by a court or government agency of competent jurisdiction to be unavailable to any indemnified party or is insufficient to hold them harmless in respect of any Losses, then each such indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Loss in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of such indemnified party, on the other hand, in connection with the statements or omissions that resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that in no event shall such Selling Holder be required to contribute an aggregate amount in excess of the dollar amount of proceeds (net of Selling Expenses) received by such Selling Holder from the sale of Registrable Securities giving rise to such indemnification.  The relative fault of the indemnifying party on the one hand and the indemnified party on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact has been made by, or relates to, information supplied by such party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The parties hereto agree that it would not be just and equitable if contributions pursuant to this paragraph were to be determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to herein.  The amount paid by an indemnified party as a result of the Losses referred to in the first sentence of this paragraph shall be deemed to include any legal and other expenses reasonably incurred by such indemnified party in connection with investigating, defending or resolving any Loss that is the subject of this paragraph.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who is not guilty of such fraudulent misrepresentation.

 

(e)                                  Other Indemnification.  The provisions of this Section 2.09 shall be in addition to any other rights to indemnification or contribution that an indemnified party may have pursuant to law, equity, contract or otherwise.

 

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Section 2.10                             Rule 144 Reporting.

 

With a view to making available the benefits of certain rules and regulations of the SEC that may permit the sale of the Registrable Securities to the public without registration, the Partnership agrees to use its reasonable best efforts to:

 

(a)                                 make and keep public information regarding the Partnership available, as those terms are understood and defined in Rule 144 under the Securities Act (or any successor or similar provision adopted by the SEC then in effect), at all times from and after the date hereof;

 

(b)                                 file with the SEC in a timely manner all reports and other documents required of the Partnership under the Securities Act and the Exchange Act at all times from and after the date hereof; and

 

(c)                                  so long as a Holder owns any Registrable Securities, furnish, unless otherwise available electronically at no additional charge via the SEC’s EDGAR system, to such Holder forthwith upon request a copy of the most recent annual or quarterly report of the Partnership, and such other reports and documents as such Holder may reasonably request in availing itself of any rule or regulation of the SEC allowing such Holder to sell any such securities without registration.

 

Section 2.11                             Transfer or Assignment of Registration Rights.

 

The rights to cause the Partnership to register Registrable Securities granted to the Purchasers by the Partnership under this Article II may be transferred or assigned by any Purchaser to one or more transferees or assignees of Registrable Securities, subject to the transfer restrictions provided in Section 4.12 of the Amended Partnership Agreement, provided, however, that (a) the Partnership is given written notice prior to any said transfer or assignment, stating the name and address of each of the transferee or assignee and identifying the Registrable Securities with respect to which such registration rights are being transferred or assigned and (b) each such transferee or assignee assumes in writing responsibility for its portion of the obligations of such Purchaser under this Agreement.

 

Section 2.12                             Limitation on Subsequent Registration Rights.

 

From and after the date hereof, the Partnership shall not, without the prior written consent of (a) the Holders of a majority of the then outstanding Common Unit Registrable Securities and (b) the Holders of a majority of the then outstanding Preferred Unit Registrable Securities, enter into any agreement with any current or future holder of any equity securities of the Partnership that would allow such current or future holder to require the Partnership to include equity securities in any registration statement filed by the Partnership on a basis that is superior in any respect to the rights granted to the Holders pursuant to this Agreement.

 

Section 2.13                             Limitation on Obligations for Preferred Unit Registrable Securities.

 

Notwithstanding anything to the contrary in this Agreement, nothing contained herein shall be construed to require the Partnership to (a) conduct an underwritten offering for the public sale, resale or any other disposition of Preferred Unit Registrable Securities, (b) except as expressly provided in this Agreement, otherwise assist in the public resale of any Preferred Unit Registrable Securities, (c) provide any Holder of Preferred Unit Registrable Securities any rights

 

20

 

to include any Preferred Unit Registrable Securities in any underwritten offering relating to the sale by the Partnership or any other Person of any securities of the Partnership or (d) cause any Preferred Unit Registrable Securities to be listed on any securities exchange or nationally recognized quotation system.

 

Section 2.14                             Obligation to Obtain Rating for Preferred Units.

 

If requested by any Holder, the Partnership shall use commercially reasonable efforts to obtain and maintain a rating from a nationally recognized rating agency (chosen by the Holders holding at least a majority of the Preferred Units then outstanding) with respect to the Preferred Units. The Partnership shall be entitled to reimbursement from the Holders holding Preferred Units for all direct costs paid to the applicable rating agency by the Partnership in obtaining the initial rating, which costs shall be shared by such Holders pro rata (based, for each such Holder on the percentage derived by dividing (x) the number of Preferred Units held by each such Holder, by (y) the aggregate number of Preferred Units outstanding at the time such rating is obtained). After the date on which a rating has been obtained for the Preferred Units, if requested by the Holders of 75% of the Preferred Units then outstanding, the Partnership shall use commercially reasonably efforts to cause such rating on the Preferred Units to be withdrawn.

 

ARTICLE III
 MISCELLANEOUS

 

Section 3.01                             Communications.

 

All notices and other communications provided for or permitted hereunder shall be made in writing by facsimile, electronic mail, courier service or personal delivery:

 

(a)                                 if to a Purchaser:

 

To the respective address listed on Schedule A hereof with copies to (which shall not constitute notice):

 

Kirkland & Ellis LLP

609 Main Street

Houston, TX 77002

Attention:  John Pitts and Julian Seiguer

Facsimile: (713) 835-3601

Email: john.pitts@kirkland.com

Email: julian.seiguer@kirkland.com

 

(b)                                 if to a transferee of a Purchaser, to such Holder at the address provided pursuant to Section 2.11 above; and

 

(c)                                  if to the Partnership:

 

NGL Energy Partners LP

6120 South Yale Avenue

 

21

 

Suite 805

Tulsa, Oklahoma 74136

Attention: H. Michael Krimbill

Facsimile: (918) 492-0990

Email: michael.krimbill@nglep.com

 

with a copy to (which shall not constitute notice):

 

Hunton Andrews Kurth LLP

600 Travis St., Suite 4200

Houston, Texas 77002

Attention: G. Michael O’Leary and Henry Havre

Facsimile: (713) 220-4285

Email: moleary@huntonak.com

Email: henryhavre@huntonak.com

 

All such notices and communications shall be deemed to have been received at the time delivered by hand, if personally delivered; when receipt acknowledged, if sent via facsimile or sent via Internet electronic mail; and when actually received, if sent by courier service or any other means.

 

Section 3.02                             Successor and Assigns.

 

This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties, including subsequent Holders of Registrable Securities to the extent permitted herein.

 

Section 3.03                             Assignment of Rights.

 

All or any portion of the rights and obligations of any Purchaser under this Agreement may be transferred or assigned by such Purchaser only in accordance with Section 2.11 hereof.

 

Section 3.04                             Recapitalization, Exchanges, Etc.  Affecting the Common Units.

 

The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all units of the Partnership or any successor or assign of the Partnership (whether by merger, acquisition, consolidation, reorganization, sale of assets or otherwise) that may be issued in respect of, in exchange for or in substitution of, the Registrable Securities, and shall be appropriately adjusted for combinations, unit splits, recapitalizations, pro rata distributions of units and the like occurring after the date of this Agreement.

 

Section 3.05                             Aggregation of Registrable Securities.

 

All Registrable Securities held or acquired by Persons who are Affiliates of one another shall be aggregated together for the purpose of determining the availability of any rights and applicability of any obligations under this Agreement.

 

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Section 3.06                             Specific Performance.

 

Damages in the event of breach of this Agreement by a party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed that each such Person, in addition to and without limiting any other remedy or right it may have, shall have the right to an injunction or other equitable relief in any court of competent jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground of lack of jurisdiction or competence of the court to grant such an injunction or other equitable relief.  The existence of this right shall not preclude any such Person from pursuing any other rights and remedies at law or in equity that such Person may have.

 

Section 3.07                             Counterparts.

 

This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, including facsimile or .pdf counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement.

 

Section 3.08                             Headings.

 

The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

Section 3.09                             Governing Law.

 

This Agreement, including all issues and questions concerning its application, construction, validity, interpretation and enforcement, shall be construed in accordance with, and governed by, the laws of the State of New York.

 

Section 3.10                             Severability of Provisions.

 

Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting or impairing the validity or enforceability of such provision in any other jurisdiction.

 

Section 3.11                             Entire Agreement.

 

This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the rights granted by the Partnership set forth herein.  This Agreement, the Purchase Agreement and the Amended Partnership Agreement supersede all prior agreements and understandings between the parties with respect to such subject matter.

 

23

 

Section 3.12                             Amendment.

 

This Agreement may be amended only by means of a written amendment signed by the Partnership, the Holders of a majority of the then outstanding Common Unit Registrable Securities and the Holders of a majority of the then outstanding Preferred Unit Registrable Securities; provided, however, that no such amendment shall materially and adversely affect the rights of any Holder hereunder without the consent of such Holder.

 

Section 3.13                             No Presumption.

 

If any claim is made by a party relating to any conflict, omission or ambiguity in this Agreement, no presumption or burden of proof or persuasion shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a particular party or its counsel.

 

Section 3.14                             Obligations Limited to Parties to Agreement.

 

Each of the parties hereto covenants, agrees and acknowledges that no Person other than the Purchasers (and their permitted transferees and assignees) and the Partnership shall have any obligation hereunder.  Notwithstanding that one or more of the Purchasers may be a corporation, partnership or limited liability company, no recourse under this Agreement or under any documents or instruments delivered in connection herewith or therewith shall be had against any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the Purchasers or any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate thereof, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any applicable Law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the Purchasers or any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate thereof, as such, for any obligations of the Purchasers under this Agreement or any documents or instruments delivered in connection herewith or therewith or for any claim based on, in respect of or by reason of such obligation or its creation, except in each case for any transferee or assignee of a Purchaser hereunder.

 

Section 3.15                             Independent Nature of Purchaser’s Obligations.

 

The obligations of each Purchaser under this Agreement are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under this Agreement.  Nothing contained herein, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement.  Each Purchaser shall be entitled to independently protect and enforce its rights, including, the rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose.

 

24

 

Section 3.16                             Interpretation.

 

Article and Section references are to this Agreement, unless otherwise specified.  All references to instruments, documents, contracts and agreements are references to such instruments, documents, contracts and agreements as the same may be amended, supplemented and otherwise modified from time to time, unless otherwise specified.  The words “include,” “includes” and “including” or words of similar import shall be deemed to be followed by the words “without limitation.” Whenever any determination, consent or approval is to be made or given by a Purchaser under this Agreement, such action shall be in such Purchaser’s sole discretion unless otherwise specified.  Unless expressly set forth or qualified otherwise (e.g., by “Business” or “trading”), all references herein to a “day” are deemed to be a reference to a calendar day.

 

(Signature pages follow)

 

25

 

IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first above written.

 

	
 
    	
NGL ENERGY PARTNERS LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
NGL Energy Holdings LLC,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ H. Michael Krimbill
    
	
 
    	
Name:
    	
H. Michael Krimbill
    
	
 
    	
Title:
    	
Chief Executive Officer
    

 

Signature Page to Registration Rights Agreement

 

 

	
 
    	
PURCHASERS:
    
	
 
    	
 
    
	
 
    	
EIG   NEPTUNE EQUITY AGGREGATOR, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
EIG   Neptune Equity GP, LLC,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
EIG   Asset Management, LLC,
    
	
 
    	
 
    	
its   managing member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian P. Boland
    
	
 
    	
Name:
    	
Brian   P. Boland
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kathleen P. Turner
    
	
 
    	
Name:
    	
Kathleen   P. Turner
    
	
 
    	
Title:
    	
Associate   Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
FS   ENERGY AND POWER FUND
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
FS/EIG   Advisor, LLC,
    
	
 
    	
 
    	
its   investment advisor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian P. Boland
    
	
 
    	
Name:
    	
Brian   P Boland
    
	
 
    	
Title:
    	
Authorized   Person
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kathleen P. Turner
    
	
 
    	
Name:
    	
Kathleen   P. Turner
    
	
 
    	
Title:
    	
Authorized   Person
    

 

Signature Page to Registration Rights Agreement

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