Document:

EX-4.2

 Exhibit 4.2 

Execution Version 
  

 
 SIXTH SUPPLEMENTAL INDENTURE

 among 
 LENNOX
INTERNATIONAL INC., 
 as Issuer 

EACH OF THE GUARANTORS PARTY HERETO, 

as Guarantors 
 and 

U.S. BANK NATIONAL ASSOCIATION, 

as Trustee 
  

 
 Dated as of
November 3, 2016 
  
  

Supplemental to Indenture for Senior Debt Securities 

Dated as of May 3, 2010 

3.000% Notes due 2023 
  

 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	PAGE	 
		  	ARTICLE 1	  			
		  	SCOPE OF SUPPLEMENTAL INDENTURE; GENERAL	  			
			
	Section 1.01.	  	Scope of Supplemental Indenture; General	  	 	1	  
	Section 1.02.	  	Terms of Notes	  	 	2	  
	Section 1.03.	  	Amendments to Base Indenture	  	 	3	  
			
		  	ARTICLE 2	  			
		  	CERTAIN DEFINITIONS	  			
			
	Section 2.01.	  	Certain Definitions	  	 	3	  
	Section 2.02.	  	Rules of Construction	  	 	9	  
			
		  	ARTICLE 3	  			
		  	COVENANTS	  			
			
	Section 3.01.	  	Change of Control Triggering Event	  	 	9	  
	Section 3.02.	  	Limitations on Liens	  	 	10	  
	Section 3.03.	  	Limitations on Sale and Leaseback Transactions	  	 	11	  
	Section 3.04.	  	Future Guarantors	  	 	12	  
	Section 3.05.	  	Applicability of Covenants Contained in the Base Indenture	  	 	12	  
			
		  	ARTICLE 4	  			
		  	THE NOTES	  			
			
	Section 4.01.	  	Form of Notes	  	 	12	  
	Section 4.02.	  	Depositary	  	 	12	  
			
		  	ARTICLE 5	  			
		  	EVENTS OF DEFAULT	  			
			
	Section 5.01.	  	Events of Default	  	 	12	  
			
		  	ARTICLE 6	  			
		  	REDEMPTION	  			
			
	Section 6.01.	  	Optional Redemption	  	 	13	  
	Section 6.02.	  	Optional Redemption by Company	  	 	13	  
	Section 6.03.	  	Applicability of Sections of the Base Indenture	  	 	14	  
			
		  	ARTICLE 7	  			
		  	DEFEASANCE	  			
			
	Section 7.01.	  	Defeasance	  	 	14	  

  
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	 	  	 	  	PAGE	 
			
		  	ARTICLE 8	  			
		  	SUBSIDIARY GUARANTEES	  			
	Section 8.01.	  	Guarantees	  	 	14	  
	 Section 8.02.
	  	Continuing Guarantee	  	 	15	  
	 Section 8.03.
	  	Release of Guarantee	  	 	15	  
	 Section 8.04.
	  	Notation Not Required	  	 	16	  
	 Section 8.05.
	  	Waiver of Subrogation	  	 	16	  
	 Section 8.06.
	  	Execution and Delivery of Guarantees	  	 	16	  
	 Section 8.07.
	  	Notices	  	 	16	  
		  	ARTICLE 9	  			
		  	MISCELLANEOUS	  			
			
	 Section 9.01.
	  	Ratification of Base Indenture	  	 	16	  
	 Section 9.02.
	  	Trustee Makes No Representation; Trustee’s Rights and Duties	  	 	17	  
	 Section 9.03.
	  	New York Law to Govern	  	 	17	  
	 Section 9.04.
	  	Counterparts	  	 	17	  
	 Section 9.05.
	  	Effect of Headings	  	 	17	  
			
	EXHIBIT A.	  	Form of Note	  			
	EXHIBIT B.	  	Form of Supplemental Indenture in Respect of Guarantees	  			

  
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 SIXTH SUPPLEMENTAL INDENTURE, dated as of November 3, 2016 (this “Sixth
Supplemental Indenture”), by and among LENNOX INTERNATIONAL INC., a Delaware corporation (the “Company”), the GUARANTORS (as defined herein) and U.S. BANK NATIONAL ASSOCIATION, as trustee (as defined in the Indenture
referred to below, the “Trustee”), to the Indenture, dated as of May 3, 2010 (the “Base Indenture” and, as supplemented by the First Supplemental Indenture, dated as of May 6, 2010, the Second Supplemental
Indenture, dated as of March 28, 2011, the Third Supplemental Indenture, dated as of October 27, 2011, the Fourth Supplemental Indenture, dated as of December 10, 2013, the Fifth Supplemental Indenture, dated as of August 30,
2016, and this Sixth Supplemental Indenture, the “Indenture”), by and between the Company and the Trustee. 

RECITALS: 
 WHEREAS, the
Company has duly authorized the execution and delivery of the Base Indenture to provide for the issuance from time to time of the Company’s unsecured debentures, notes, or other evidences of indebtedness (as defined in the Indenture, the
“Securities”), to be issued in one or more series; 
 WHEREAS, Section 8.01 of the Base Indenture permits the
Company and the Trustee to enter into indentures supplemental to the Base Indenture to establish the form and terms of any series of Securities as provided by Sections 2.01 and 2.03 of the Base Indenture; 

WHEREAS, the Company desires and has requested the Trustee to join them in the execution and delivery of this Sixth Supplemental
Indenture in order to establish and provide for the issuance by the Company of a new series of Securities designated as its 3.000% Notes due 2023 (the “Notes”), on the terms set forth herein; 

WHEREAS, the Company now wishes to issue Notes in an initial aggregate principal amount of $350,000,000; 

WHEREAS, the conditions set forth in the Indenture for the execution and delivery of this Sixth Supplemental Indenture have been complied
with; and 
 WHEREAS, all things necessary to make this Sixth Supplemental Indenture a valid agreement of the Company, the Guarantors and
the Trustee, in accordance with its terms, and a valid supplement to the Base Indenture have been done; 
 NOW, THEREFORE, THIS SIXTH
SUPPLEMENTAL INDENTURE WITNESSETH: 
 In consideration of the purchase and acceptance of the Notes by the Holders thereof, the Company and
the Guarantors mutually covenant and agree with the Trustee, for the equal and ratable benefit of the Holders of the Notes, as follows: 

ARTICLE 1 
 SCOPE OF SUPPLEMENTAL
INDENTURE; GENERAL 
 Section 1.01. Scope of Supplemental Indenture; General. This Sixth Supplemental Indenture supplements and,
to the extent inconsistent therewith, replaces the provisions of the Base Indenture, to which provisions reference is hereby made. 
 The
changes, modifications and supplements to the Base Indenture effected by this Sixth Supplemental Indenture shall be applicable only with respect to, and govern the terms of, the Notes 

 
(which shall be initially in the aggregate principal amount of $350,000,000) and shall not apply to any other Securities that have been or may be issued under the Indenture unless a supplemental
indenture with respect to such other Securities specifically incorporates such changes, modifications and supplements. Pursuant to this Sixth Supplemental Indenture, there is hereby created and designated a series of Securities under the Indenture
entitled “3.000% Notes due 2023.” The Notes shall be in the form of Exhibit A hereto, the terms of which are incorporated herein by reference. 

All Notes issued under this Sixth Supplemental Indenture shall vote and consent together on all matters as one class, including without
limitation on waivers and amendments, and no Holder of Notes shall have the right to vote or consent as a separate class from other Holders on any matter except matters which affect such Holder only. 

Section 1.02. Terms of Notes. The information applicable to the Notes required pursuant to Section 2.03 of the Base Indenture
is as follows: 
 (a) the title of the Notes shall be “3.000% Notes due 2023”; 

(b) not applicable; 
 (c) the
initial aggregate principal amount of the Notes shall be $350,000,000; 
 (d) the Notes shall be issuable in Dollars; 

(e) principal shall be payable as set forth in the form of Note; 

(f) the rate at which the Notes shall bear interest and interest payment and record dates shall be as set forth in the form of Note; 

(g) the place where the principal of and any interest on the Notes shall be payable shall be as set forth in the Base Indenture; 

(h) the Notes shall be subject to optional redemption as set forth in Article 6 below; 

(i) not applicable; 
 (j) the
Notes shall be issuable in minimum denominations of $2,000 and integral multiples of $1,000 above that amount; 
 (k) not applicable; 

(l) payment of the principal and interest on the Notes shall be made in Dollars; 

(m) not applicable; 
 (n) not
applicable; 
 (o) the Notes may be defeased as set forth in Article 7 below; 

(p) not applicable; 
 (q) the
Notes shall be issuable as Global Securities; 

  
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 (r) U.S. Bank National Association initially shall serve as the trustee, paying agent, registrar
and custodian with respect to the Notes; 
 (s) the events of default set forth in Article 5 below and the covenants set forth in Article 3
below shall be applicable to the Notes; 
 (t) not applicable; and 

(u) not applicable. 

Section 1.03. Amendments to Base Indenture. 

(a) Article 2 of the Base Indenture shall be amended by replacing the final paragraph of Section 2.03 thereof with the following: 

“The Issuer may from time to time, without notice to or the consent of the holders of any series of Securities, create and issue further
Securities of any such series ranking equally with the Securities of such series in all respects (or in all respects other than the payment of interest accruing prior to the issue date of such further Securities or except for the first payment of
interest following the issue date of such further Securities); provided that such further Securities must be part of the same issue as such series for U.S. federal income tax purposes. Such further Securities may be consolidated and form a single
series with the Securities of such series and have the same terms as to status, redemption or otherwise as the Securities of such series.” 

(b) Article 10 of the Base Indenture shall be amended by replacing Section 10.01(b)(4) thereof in its entirety with the following: 

“the Issuer shall have delivered to the Trustee an Opinion of Counsel from a nationally recognized counsel acceptable to the Trustee or a
private letter ruling issued by the United States Internal Revenue Service to the effect that the beneficial owners of the Securities will not recognize income, gain or loss for United States Federal income tax purposes as a result of the
Issuer’s exercise of its option under this Section 10.01(b) and will be subject to United States Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such option had not been
exercised;” 
 ARTICLE 2 

CERTAIN DEFINITIONS 

Section 2.01. Certain Definitions. The following definitions shall apply to the Notes. Capitalized terms used but not defined
herein have the meanings ascribed to such terms in the Base Indenture. 
 “Attributable Debt” with regard to a Sale
and Leaseback Transaction with respect to any Principal Property means, at the time of determination, the present value of the total net amount of rent required to be paid under the lease during the remaining term thereof (including any period for
which the lease has been extended), discounted at the rate of interest set forth or implicit in the terms of the lease (or, if not practicable to determine the rate, the weighted average interest rate per annum borne by the Notes then outstanding)
compounded semi-annually. In the case of any lease that is terminable by the lessee upon the payment of a penalty, the net amount of rent shall be the lesser of (x) the net amount determined assuming termination upon the first date the lease
may be terminated (in which case the net amount shall also include the amount of the penalty, but shall not include any rent that would be required to be paid under the lease subsequent to the first date upon which it may be so terminated) or
(y) the net amount determined assuming no such termination. 

  
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 “Capital Lease Obligations” of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a
balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 

“Change of Control” means the occurrence of any of the following after the Issue Date: 

(a) the direct or indirect sale, lease, 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 Company’s assets and the assets of the Company’s subsidiaries taken as a whole to any “person” or “group” (as those terms are used in
Section 13(d)(3) of the Exchange Act) other than to the Company or one of its subsidiaries; 
 (b) the consummation of any transaction
(including, without limitation, any merger or consolidation) that results in any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act, provided that an employee of the Company or any of the
Company’s subsidiaries for whom shares are held under an employee stock ownership, employee retirement, employee savings or similar plan and whose shares are voted in accordance with the instructions of such employee is not a member of a
“group” solely because such employee’s shares are held by a trustee under said plan) becoming the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of Voting Stock
representing more than 50% of the voting power of the Company’s outstanding Voting Stock or of the Voting Stock of any of the Company’s direct or indirect parent companies; 

(c) the Company consolidates with, or merges with or into, any Person, or any Person consolidates with, or merges with or into, the Company,
in any such event pursuant to a transaction in which any of the Company’s outstanding Voting Stock or the Voting Stock of such other Person is converted into or exchanged for cash, securities or other property, other than any such transaction
in which the Company’s Voting Stock outstanding immediately prior to such transaction constitutes, or is converted into or exchanged for, Voting Stock representing more than 50% of the voting power of the Voting Stock of the surviving Person
immediately after giving effect to such transaction; or 
 (d) the adoption of a plan relating to the Company’s liquidation or
dissolution. 
 Notwithstanding the foregoing, a transaction shall not be deemed to involve a Change of Control solely because the Company
becomes a direct or indirect wholly owned subsidiary of a holding company if the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of the
Company’s Voting Stock immediately prior to that transaction. 
 “Change of Control Offer” has the meaning ascribed to
such term in Section 3.01 of this Sixth Supplemental Indenture. 
 “Change of Control Payment” has the meaning ascribed to
such term in Section 3.01 of this Sixth Supplemental Indenture. 

  
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 “Change of Control Payment Date” has the meaning ascribed to such term in
Section 3.01 of this Sixth Supplemental Indenture. 
 “Change of Control Triggering Event” means, with
respect to the Notes, (1) the rating of the Notes is lowered by any of the Rating Agencies on any date during the period (the “Trigger Period”) commencing on the earlier of (a) the occurrence of a Change of Control and
(b) the first public announcement by the Company of any Change of Control (or pending Change of Control), and ending 60 days following consummation of such Change of Control (which Trigger Period shall be extended following consummation of a
Change of Control for so long as any of the Rating Agencies has publicly announced that it is considering a possible ratings change), and (2) the Notes are rated below Investment Grade by each of the Rating Agencies on any day during the
Trigger Period; provided that a Change of Control Trigger Event shall not be deemed to have occurred in respect of a particular Change of Control if the Rating Agency making the reduction in rating does not publicly announce or confirm or inform the
Trustee at the Company’s 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 Change of Control. 

Notwithstanding the foregoing, no Change of Control Triggering Event shall be deemed to have occurred in connection with any particular Change
of Control unless and until such Change of Control has actually been consummated. 
 “Comparable Treasury Issue”
means the United States Treasury security selected by an Independent Investment Banker that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Notes. 
 “Comparable Treasury Price” means, with respect to
any redemption date, (1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer than four
such Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations obtained. 

“Consolidated Net Tangible Assets” means the aggregate amount of assets (less applicable reserves and other properly
deductible items) after deducting therefrom (a) all current liabilities (excluding any indebtedness for money borrowed having a maturity of less than 12 months from the date of the Company’s most recent consolidated balance sheet but which
by its terms is renewable or extendable beyond 12 months from such date at the Company’s option) and (b) all goodwill, trade names, patents, unamortized debt discount and expense and any other like intangibles, all as set forth on the
Company’s most recent consolidated balance sheet and determined in accordance with GAAP. 
 “Credit
Agreement” means the Sixth Amended and Restated Credit Facility Agreement, dated August 30, 2016, among the Company, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., Wells Fargo Bank, N.A. and The Bank of
Tokyo-Mitsubishi UFJ, LTD., as syndication agents, and the lenders party thereto, as it may be amended, supplemented or otherwise modified from time to time. 

“DTC” has the meaning ascribed to such term in Section 4.02 of this Sixth Supplemental Indenture. 

“Event of Default” means any event specified as such in Section 5.01 of this Sixth Supplemental Indenture. 

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

  
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 “Excluded Foreign Subsidiary” means any Foreign Subsidiary in respect of which
guaranteeing the Notes would result in an adverse tax consequence to the Company. 
 “Foreign Subsidiary” means any
subsidiary that is organized under the laws of a jurisdiction other than the United States of America or any State thereof or the District of Columbia. 

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

“Global Note” has the meaning ascribed to such term in Section 4.01 of this Sixth Supplemental Indenture. 

“Global Note Holder” has the meaning ascribed to such term in Section 4.02 of this Sixth Supplemental Indenture. 

“Guarantee” has the meaning ascribed to such term in Section 8.01 of this Sixth Supplemental Indenture. 

“Guarantors” means, initially, Advanced Distributor Products LLC, a Delaware limited liability company, Allied Air
Enterprises LLC, a Delaware limited liability company, Heatcraft Inc., a Delaware corporation, Heatcraft Refrigeration Products LLC, a Delaware limited liability company, Lennox Global Ltd., a Delaware corporation, Lennox Industries Inc., a Delaware
corporation, Lennox National Account Services, LLC, a Florida limited liability company, LGL Australia (US) Inc., a Delaware corporation and LGL Europe Holding Co., a Delaware corporation. 

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company. 

“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating category of
Moody’s) or a rating of BBB- or better by S&P (or its equivalent under any successor rating category of S&P), and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected by the
Company under the circumstances permitting the Company to select a replacement agency and in the manner for selecting a replacement agency, in each case as set forth in the definition of “Rating Agency.” 

“Issue Date” means November 3, 2016. 

“Liens” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any
interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or capital lease, upon or with respect to any property or asset of such Person. 

“Material Subsidiary” means each Guarantor and any other subsidiary of the Company (except LPAC Corp. and any Excluded
Foreign Subsidiary) (i) the book value (determined in accordance with GAAP) of whose total assets equals or exceeds ten percent (10%) of the book value of the Company’s consolidated total assets as determined as of the last day of the
Company’s most recent fiscal quarter or (ii) which owns a Principal Property. 
 “Moody’s” means
Moody’s Investors Service, Inc. and its successors. 

  
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 “Nonrecourse Obligation” means indebtedness for borrowed money or lease payment
obligations related to (i) the acquisition of a Principal Property not previously owned by the Company or any subsidiary or (ii) the financing of a project involving the development or expansion of any Principal Property owned by the
Company or any subsidiary, as to which the obligee with respect to such indebtedness or obligation has no recourse to the Company or any subsidiary or any of its or its subsidiaries’ assets other than such Principal Property so acquired,
developed or expanded, as applicable. 
 “Notes” has the meaning ascribed to it in the preamble of this Sixth Supplemental
Indenture. 
 “Permitted Credit Agreement Liens” means: 

(a) any Lien on the Company’s headquarters building located at 2140 Lake Park Blvd., Richardson, Texas; 

(b) any Lien existing on any fixed or capital asset (including equipment) prior to the acquisition thereof by the Company or any of its
subsidiaries or existing on any property or asset of any Person that becomes a subsidiary after the date hereof prior to the time such Person becomes a subsidiary; provided that (i) such Lien is not created in contemplation of or in connection
with such acquisition or such Person becoming a subsidiary, as the case may be, (ii) such Lien shall not apply to any other of the Company’s assets or of the assets of any of the Company’s subsidiaries, (iii) such Lien shall
secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a subsidiary, as the case may be, and extensions, renewals and replacements thereof that do not increase the outstanding principal amount
thereof, and (iv) the aggregate principal amount of all indebtedness secured by Liens permitted by this clause shall not at any time exceed $50,000,000; 

(c) Liens on fixed or capital assets (including equipment), or other assets acquired with purchase money indebtedness, in each case acquired,
constructed or improved by the Company or any of its subsidiaries; provided that (i) such security interests secured indebtedness permitted by the Credit Agreement, including Capital Lease Obligations, (ii) such security interests and the
indebtedness secured thereby are incurred prior to or within 90 days after such acquisition or the completion of such construction or improvement, (iii) the indebtedness secured thereby does not exceed 100% of the cost of acquiring,
constructing or improving such fixed or capital assets and (iv) such security interests shall not apply to any other of the Company’s property or assets or of any of the Company’s subsidiaries; 

(d) Liens on (i) the Company’s property or the property of any of the Company’s subsidiaries securing indebtedness owing to the
Company or a Guarantor permitted by the Credit Agreement and (ii) property of any subsidiary that is not a Material Subsidiary securing Indebtedness owing to any other subsidiary that is not a Material Subsidiary permitted by the Credit
Agreement; 
 (e) Liens securing indebtedness of Foreign Subsidiaries permitted by the Credit Agreement provided that such Liens encumber
only assets of the Foreign Subsidiaries; 
 (f) Liens granted in connection with any Receivable Securitization Facility permitted under the
Credit Agreement on the receivables sold pursuant thereto (together with all collections and other proceeds thereof and any collateral securing the payment thereof), all right, title and interest in and to the lockboxes and other collection accounts
in which proceeds of such receivables are deposited, the rights under the documents executed in connection with such Receivable Securitization Facility and in the equity interests issued by any special purpose entity organized to purchase the
receivables thereunder; 
 (g) Liens on cash securing indebtedness arising in connection with Swap Agreements permitted by the Credit
Agreement; 

  
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 (h) Liens on materials, supplies, components or equipment acquired with purchase money
indebtedness permitted to be incurred under the Credit Agreement, so long as (i) such security interests and the indebtedness secured thereby are incurred prior to or within 90 days after such acquisition, (ii) the indebtedness secured
thereby does not exceed 100% of the cost of acquiring such materials, supplies, components or equipment and (iii) such security interests shall not apply to any other of the Company’s property or assets or the property or assets of any of
the Company’s subsidiaries; and 
 (i) customary call, buy-sell or similar rights negotiated on an arm’s length basis and granted
to third-party joint venture partners in respect of equity interests of the applicable joint venture. 
 “Person” means any
individual, corporation, partnership, limited liability company, business trust, association, joint-stock company, joint venture, trust, incorporated or unincorporated organization or government or any agency or political subdivision thereof. 

“Primary Treasury Dealer” means a primary U.S. government securities dealer in the United States. 

“Principal Property” means any manufacturing plant, warehouse, office building or parcel of real property, including fixtures
but excluding leases and other contract rights which might otherwise be deemed real property, owned by the Company or any of the Company’s Material Subsidiaries, whether owned on the Issue Date or thereafter acquired, that has a book value
(determined in accordance with GAAP) in excess of 2% of the Consolidated Net Tangible Assets of the Company and its consolidated subsidiaries. Any plant, warehouse, office building or parcel of real property or portion thereof which the
Company’s board of directors or the board of directors (or the members, for limited liability companies) of the relevant Material Subsidiary determines is not of material importance to the business conducted by the Company and its subsidiaries
taken as a whole shall not be a Principal Property. 
 “Rating Agency” means each of Moody’s and S&P; provided,
that if any of Moody’s or S&P ceases to provide rating services to issuers or investors, the Company may appoint another “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of the
Exchange Act as a replacement for such Rating Agency. 
 “Receivable Securitization Facility” means, with respect to the
Company or any of its subsidiaries, a transaction or group of transactions typically referred to as a securitization in which the Company or such subsidiary sells its accounts receivable in a transaction accounted for as a true sale to a special
purpose bankruptcy remote entity that obtains debt financing to finance the purchase price. 
 “Redemption Price” has the
meaning ascribed to such term in Section 6.02 of this Sixth Supplemental Indenture. 
 “Reference Treasury Dealer” means
each of J.P. Morgan Securities LLC and Wells Fargo Securities, LLC and their respective successors and two other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Company, except that
if any of the foregoing ceases to be a Primary Treasury Dealer, the Company shall substitute another nationally recognized investment banking firm that is a Primary Treasury Dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the
average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer as of 3:30 p.m.,
New York City time, on the third business day preceding such redemption date. 

  
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 “S&P” means Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc., and its successors. 
 “Sale and Leaseback Transaction” has the
meaning ascribed to such term in Section 3.03 of this Sixth Supplemental Indenture. 
 “subsidiary” means any
corporation, partnership or other legal entity (a) the accounts of which are consolidated with the Company’s in accordance with GAAP and (b) of which, in the case of a corporation, more than 50% of the outstanding voting stock is
owned, directly or indirectly, by the Company or by one or more other subsidiaries, or by the Company and one or more other subsidiaries or, in the case of any partnership or other legal entity, more than 50% of the ordinary equity capital interests
is, at the time, directly or indirectly owned or controlled by the Company or by one or more of the subsidiaries or by the Company and one or more of the subsidiaries. 

“Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or
similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or
any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the
Company or its subsidiaries shall be a Swap Agreement. For the avoidance of doubt, agreements relating to accelerated share repurchase programs, and similar programs or arrangements, shall not be considered Swap Agreements. 

“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual equivalent
yield to maturity (computed as of the third business day immediately preceding such redemption date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to
the Comparable Treasury Price for such redemption date. 
 “Voting Stock” of any specified Person as of any
date means the capital stock of such Person that is at the time entitled to vote generally in the election of the board of directors of such Person. 

Section 2.02. Rules of Construction. Unless the context otherwise requires or except as otherwise expressly provided, the term
“interest” in the Indenture shall be construed to include additional interest, if any. 
 ARTICLE 3 

COVENANTS 
 The following
covenants shall apply in addition to the covenants set forth in the Indenture: 
 Section 3.01. Change of Control Triggering
Event. 
 (a) Upon the occurrence of a Change of Control Triggering Event with respect to the Notes, unless the Company has
exercised its right to redeem the Notes pursuant to Article 6 of this Sixth Supplemental Indenture by giving irrevocable notice to the Trustee in accordance with the Indenture, each Holder of Notes shall have the right to require the Company to
purchase all or a portion of such Holder’s Notes pursuant to the offer described in this Section 3.01 (the “Change of Control Offer”), at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid
interest, if any, to the date of purchase (the “Change of Control Payment”), subject to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date. 

  
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 (b) Unless the Company has exercised its right to redeem the Notes, within 30 days
following the date upon which the Change of Control Triggering Event occurs with respect to the Notes, or at the Company’s option, prior to any Change of Control but after the public announcement of the pending Change of Control, the Company
shall be required to send a notice to each Holder of Notes, 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 sent, other than as may be required by law (the “Change of Control Payment Date”). The notice, if sent 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 being consummated on or prior to the Change of Control Payment Date. 

(c) On the Change of Control Payment Date, the Company shall, to the extent lawful: 

(i) accept or cause a third party to accept for payment all Notes or portions of Notes properly tendered pursuant to the Change
of Control Offer; 
 (ii) deposit or cause a third party to deposit with the paying agent an amount equal to the Change of
Control Payment in respect of all Notes or portions of Notes properly tendered; and 
 (iii) deliver or cause to be delivered
to the Trustee the Notes properly accepted together with an Officer’s Certificate stating the aggregate principal amount of Notes or portions of Notes being repurchased and that all conditions precedent to the Change of Control Offer and to the
repurchase by the Company of Notes pursuant to the Change of Control Offer have been complied with. 
 (d) The Company shall not be required
to make a Change of Control Offer with respect to the Notes 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 Company and such third party purchases all
the Notes properly tendered and not withdrawn under its offer. 
 (e) The Company shall comply in all material respects 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 Notes as a result of a Change of Control
Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the provisions of this Section 3.01, the Company shall comply with those securities laws and regulations and shall not be deemed to have
breached its obligations under this Section 3.01 by virtue of any such conflict. 
 Section 3.02. Limitations on Liens. 

(a) The Company shall not, and shall not permit any Material Subsidiary to, create, assume or guarantee any indebtedness for money borrowed
that is secured by Liens on any Principal Property without making effective provision for securing the Notes equally and ratably with such indebtedness. 

(b) The restrictions set forth in paragraph (a) in this Section 3.02 shall not apply to: 

  
 10 

 (i) Liens on Principal Property existing at the time the Company or a Material
Subsidiary acquired or leased the Principal Property, including Principal Property owned by the Company or a Material Subsidiary through a merger or similar transaction; 

(ii) Liens on any Principal Property acquired, constructed or improved by the Company or any Material Subsidiary after the
Issue Date, which Liens are created or assumed contemporaneously with, or within 180 days of, such acquisition, construction or improvement and which are created to secure, or provide for the payment of, all or any part of the cost of such
acquisition, construction or improvement; 
 (iii) Liens on property of any Person existing at the time such Person becomes a
Material Subsidiary; 
 (iv) Any Permitted Credit Agreement Lien; 

(v) any Lien renewing, extending, refinancing or replacing any Lien referred to in clauses (i) through (iv) above; or 

(vi) any other Liens on any of the Company’s or its subsidiaries’ assets or properties that secure indebtedness,
liabilities and obligations of the Company or its subsidiaries in an aggregate outstanding amount which, together with all Attributable Debt of the Company and any of its subsidiaries with respect to all Sale and Leaseback Transactions that are
entered into pursuant to Section 3.03(c) hereof and are still in existence, does not exceed 15% of the Company’s Consolidated Net Tangible Assets. 

Section 3.03. Limitations on Sale and Leaseback Transactions. 

(a) The Company shall not, and shall not permit any Material Subsidiary to, enter into any arrangement with any Person providing for
the leasing by the Company or any Material Subsidiary of any Principal Property that has been or is to be sold or transferred by the Company or such Material Subsidiary to such person with the intention of taking back a lease of such property (a
“Sale and Leaseback Transaction”). 
 (b) The restrictions set forth in paragraph (a) in this Section 3.03 shall not
apply if: 
 (i) the Company or such Material Subsidiary would be entitled to incur indebtedness at least equal in amount to
the Attributable Debt with respect to such Sale and Leaseback Transaction secured by a Lien on such Principal Property pursuant to clauses (i) through (v) of Section 3.02(b) of this Sixth Supplemental Indenture without equally and ratably securing
the Notes; 
 (ii) an amount equal to the greater of (1) the net proceeds of the sale or transfer and (2) the
Attributable Debt of the Principal Property sold (as determined by the Company) is applied within 180 days to the voluntary retirement of Notes or other indebtedness of the Company (other than indebtedness subordinated to the Notes) or a Material
Subsidiary, for money borrowed, maturing more than 12 months after the voluntary retirement; 
 (iii) the lease is executed
at the time of, or within 12 months after the latest of, the acquisition, the completion of construction or improvement or the commencement of substantial commercial operation of the applicable Principal Property; 

  
 11 

 (iv) the lease payment in such Sale and Leaseback Transaction is created in
connection with a project financed with, and such obligation constitutes, a Nonrecourse Obligation; 
 (v) the lease is for a
period not exceeding three years; or 
 (vi) the lease is with the Company or another Material Subsidiary. 

(c) Notwithstanding the restrictions set forth in paragraph (a) in this Section 3.03, the Company or any of its subsidiaries may enter into a
Sale and Leaseback Transaction that would otherwise be subject to such restrictions if, after giving effect thereto and at the time of determination, the sum of (i) the aggregate principal amount of indebtedness of the Company and its
subsidiaries secured by Liens permitted solely pursuant to Section 3.02(b)(vi) hereof and (ii) the Attributable Debt of the Company and its subsidiaries with respect to such Sale and Leaseback Transaction and all other Sale and Leaseback
Transactions entered into pursuant to this Section 3.03(c) does not exceed 15% of the Company’s Consolidated Net Tangible Assets. 

Section 3.04. Future Guarantors. From and after the Issue Date, the Company shall cause any Material Subsidiary (including any
future Material Subsidiary) that guarantees payment of more than $50,000,000 of the Company’s indebtedness for money borrowed or more than $50,000,000 of indebtedness for money borrowed of the Company’s other subsidiaries to execute and
deliver to the Trustee a supplemental indenture pursuant to which such Material Subsidiary shall guarantee payment of the Notes, whereupon such Material Subsidiary shall become a Guarantor for all purposes under the Indenture. 

Section 3.05. Applicability of Covenants Contained in the Base Indenture. Each of the agreements and covenants of the Company
contained in Article 3 of the Base Indenture shall apply to the Notes. 
 ARTICLE 4 

THE NOTES 
 Section 4.01.
Form of Notes. The Notes shall initially be issued in the form of one or more Global Securities substantially in the form of Exhibit A attached hereto (the “Global Note”). 

Section 4.02. Depositary. The Depositary for the Global Note shall initially be The Depositary Trust Company
(“DTC”) and the Global Note shall be deposited with, or on behalf of, the Trustee as custodian for DTC and registered in the name of DTC or a nominee of DTC (such nominee being referred to herein as the “Global Note
Holder”). 
 ARTICLE 5 

EVENTS OF DEFAULT 

Section 5.01. Events of Default. The following Events of Default shall apply to the Notes: 

(a) default in the payment of principal or premium on the Notes when due and payable whether at maturity, upon acceleration, redemption, or
otherwise; 
 (b) default in the payment of interest on the Notes when due and payable, if that default continues for a period of 30 days;

  
 12 

 (c) default in the performance of or breach of any of the Company’s other covenants or
agreements in the Indenture, if that default or breach continues for a period of 90 consecutive days after the Company receives written notice from the Trustee or from the Holders of 25% or more in aggregate principal amount of the Notes; 

(d) any Guarantee by a Material Subsidiary ceases for any reason to be, or is asserted in writing by the Company or such Material Subsidiary
not to be, in full force and effect and enforceable in accordance with its terms except to the extent contemplated by the Indenture and any such Guarantee; 

(e) an event of default, as defined in the indenture or instrument under which the Company or any Material Subsidiary has outstanding at least
$75,000,000 aggregate principal amount of indebtedness for money borrowed, occurs and is continuing and such indebtedness, as a result thereof, is accelerated so that the same is or becomes due and payable prior to the date on which the same would
otherwise have become due and payable, and such acceleration is not rescinded or annulled within 30 days after notice thereof has been given, by registered or certified mail, to the Company by the Trustee, or to the Company and the Trustee by the
Holders of at least 25% in aggregate principal amount of the Notes at the time outstanding; 
 (f) a court having jurisdiction enters a
decree or order for: 
 (i) relief in respect of the Company or a Material Subsidiary in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect; 
 (ii) appointment of a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of the Company or a Material Subsidiary or for all or substantially all of the Company’s or a Material Subsidiary’s property and assets; or 

(iii) the winding up or liquidation of the Company’s or a Material Subsidiary’s affairs and such decree or order
remains unstayed and in effect for a period of 60 consecutive days; or 
 (g) the Company or a Material Subsidiary: 

(i) commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or
consents to the entry of an order for relief in an involuntary case under any such law; 
 (ii) consents to the appointment
of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of all or substantially all of the Company’s or a Material Subsidiary’s property and assets; or 

(iii) effects any general assignment for the benefit of creditors. 

ARTICLE 6 
 REDEMPTION 

Section 6.01. Optional Redemption. The Notes shall be redeemable, at the option of the Company, at any time and from time to time,
in whole or in part, on not less than 30 nor more than 60 days’ prior notice transmitted to the Holders of the Notes, with a copy provided to the Trustee. 

Section 6.02. Optional Redemption by Company. The redemption price (the “Redemption Price”) of the Notes shall be
calculated as follows: 

  
 13 

 (a) If the Notes are redeemed prior to September 15, 2023 (the date that is two months prior
to the stated maturity date for the Notes), the Notes shall be redeemable at a Redemption Price equal to the greater of: 

(i) 100% of the principal amount of the Notes to be redeemed; and 

(ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed
(not including interest accrued to the date of redemption), discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 25 basis points, 

plus, in each case, accrued and unpaid interest on the Notes to be redeemed to the date of redemption. 

(b) If the Notes are redeemed on or after September 15, 2023 (the date that is two months prior to the stated maturity date for the
Notes), the Notes will be redeemable at a Redemption Price equal to 100% of the principal amount of such Notes plus accrued and unpaid interest thereon to but excluding the redemption date. 

(c) The Trustee shall not be responsible for the calculation of such Redemption Price. The Company shall calculate such Redemption Price and
promptly notify the Trustee in writing thereof. 
 Section 6.03. Applicability of Sections of the Base Indenture. The provisions
of Article 12 of the Base Indenture in respect of the Notes shall apply to any optional redemption of the Notes except when such provisions conflict with the foregoing. 

ARTICLE 7 
 DEFEASANCE 

Section 7.01. Defeasance. If the Company shall effect a defeasance of the Notes pursuant to Article 10 of the Base Indenture, the
Company shall cease to have any obligation to comply with the covenants set forth in Article 3 hereof. 
 ARTICLE 8 

SUBSIDIARY GUARANTEES 

Section 8.01. Guarantees. 

(a) Each of the Guarantors, as primary obligor and not merely as surety, hereby jointly and severally, irrevocably and fully and
unconditionally guarantees to each Holder and to the Trustee and its successor and assigns (each, a “Guarantee”), on a senior unsecured basis and equal in right of payment to all existing and future senior indebtedness of such
Guarantors, the punctual payment when due of all monetary obligations of the Company under the Indenture and the Notes, whether for principal of or interest on the Notes. 

(b) The obligations of each Guarantor shall be limited to the maximum amount as shall, after giving effect to all other contingent and fixed
liabilities of such Guarantor and after giving effect to any collections from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under its Guarantee, result in the obligations of such
Guarantor under the Guarantee not constituting a fraudulent conveyance or fraudulent transfer under applicable law, or being void or unenforceable under any law relating to insolvency of debtors. 

  
 14 

 (c) Each Guarantor further agrees that (to the fullest extent permitted by law) its obligations
hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Indenture, the Notes or the obligations of the Company or any other Guarantor hereunder or thereunder, the absence of any action to enforce the same,
any waiver or consent by any Holder with respect to any provisions hereof or thereof, any release of any other Guarantor, the recovery of any judgment against the Company, any action to enforce the same, or any other circumstance that might
otherwise constitute a legal or equitable discharge or defense of a Guarantor. 
 (d) Each Guarantor hereby waives (to the fullest extent
permitted by law) the benefit of diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all
demands whatsoever and covenants that (except as otherwise provided in Section 8.03 of this Sixth Supplemental Indenture) its Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes, the Indenture
and the Guarantee. Such Guarantee is a guarantee of payment and not of collection. 
 Section 8.02. Continuing Guarantee. 

(a) Each Guarantee shall be a continuing Guarantee and shall, (i) subject to Section 8.03 of this Sixth Supplemental Indenture, remain in
full force and effect until payment in full of the principal amount of all outstanding Notes (whether by payment at maturity, purchase, redemption, defeasance, retirement or other acquisition), (ii) be binding upon such Guarantor and
(iii) inure to the benefit of and be enforceable by the Trustee, the Holders and their permitted successors, transferees and assigns. 

(b) The obligations of each Guarantor hereunder shall continue to be effective or shall be reinstated, as the case may be, if at any time any
payment which would otherwise have reduced or terminated the obligations of any Guarantor hereunder and under its Guarantee (whether such payment shall have been made by or on behalf of the Company or by or on behalf of a Guarantor) is rescinded or
reclaimed from any of the Holders upon the insolvency, bankruptcy, liquidation or reorganization of the Company or any Guarantor or otherwise, all as though such payment had not been made. 

Section 8.03. Release of Guarantee. Notwithstanding the provisions of Section 8.02 of this Sixth Supplemental Indenture, a
Guarantor shall be automatically and unconditionally released from its obligations under the indenture upon: 
 (a) the sale or other
disposition of such Guarantor; 
 (b) the sale or disposition of all or substantially all of the assets of such Guarantor; 

(c) the Company’s exercise of its legal defeasance option or its covenant defeasance option as described in Article 10 of the Base
Indenture or if the Company’s obligations under the Indenture are discharged in accordance with the terms of the Indenture; or 
 (d)
delivery of an Officer’s Certificate to the Trustee that such Guarantor does not guarantee the obligations of the Company under any indebtedness for money borrowed of the Company and that any other guarantees of such Guarantor have been
released other than through discharges as a result of payment by such Guarantor on such guarantees, 
 provided, however, that in the case of clauses (a)
and (b) above, (1) such sale or other disposition is made to a Person other than the Company or one of its subsidiaries and (2) such sale or disposition is otherwise permitted by the Indenture. Upon any such occurrence specified in this
Section 8.03, at the Company’s 

  
 15 

 
request, and upon delivery to the Trustee of an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent under the Indenture relating to such release have
been complied with, the Trustee shall execute any documents reasonably requested by the Company evidencing such release. 

Section 8.04. Notation Not Required. Neither the Company nor any Guarantor shall be required to make a notation on the Notes to
reflect any Guarantee or any release thereof. 
 Section 8.05. Waiver of Subrogation. Each Guarantor hereby irrevocably waives
any claim or other rights which it may now or hereafter acquire against the Company that arise from the existence, payment, performance or enforcement of such Guarantor’s obligations under its Guarantee and the Indenture, including, without
limitation, any right of subrogation, reimbursement, exoneration, indemnification, and any right to participate in any claim or remedy of any Holder of Notes against the Company, whether or not such claim, remedy or right arises in equity, or under
contract, statute or common law, including, without limitation, the right to take or receive from the Company, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim or
other rights. If any amount shall be paid to any Guarantor in violation of the preceding sentence and the Notes shall not have been paid in full, such amount shall have been deemed to have been paid to such Guarantor for the benefit of, and held in
trust for the benefit of, the Holders, and shall forthwith be paid to the Trustee for the benefit of such Holders to be credited and applied upon the Notes, whether matured or unmatured, in accordance with the terms of the Indenture. Each Guarantor
acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and that the waiver set forth in this Section 8.05 is knowingly made in contemplation of such benefits. 

Section 8.06. Execution and Delivery of Guarantees. The Company shall cause each subsidiary that is required to become a Guarantor
pursuant to Section 3.04 of this Sixth Supplemental Indenture to promptly execute and deliver to the Trustee a Supplemental Indenture substantially in the form set forth in Exhibit B to this Sixth Supplemental Indenture, or otherwise in form
and substance reasonably satisfactory to the Trustee, evidencing its Guarantee on substantially the terms set forth in this Article 8. Concurrently therewith, the Company shall deliver to the Trustee an Opinion of Counsel in form and substance
reasonably satisfactory to the Trustee to the effect that such Supplemental Indenture has been duly authorized, executed and delivered by such subsidiary and that, subject to applicable bankruptcy, insolvency, fraudulent transfer, fraudulent
conveyance, reorganization, moratorium and other laws now or hereafter in effect affecting creditors’ rights or remedies generally and to general principles of equity (including standards of materiality, good faith, fair dealing and
reasonableness), whether considered in a proceeding at law or at equity, such Supplemental Indenture is a valid and binding agreement of such subsidiary, enforceable against such subsidiary in accordance with its terms. 

Section 8.07. Notices. Notice to any Guarantor shall be sufficient if addressed to such Guarantor care of the Company at the
address, place and manner provided in Section 11.04 of the Base Indenture. 
 ARTICLE 9 

MISCELLANEOUS 
 Section 9.01.
Ratification of Base Indenture. The Base Indenture, as supplemented by this Sixth Supplemental Indenture, is in all respects ratified and confirmed, and this Sixth Supplemental Indenture shall be deemed part of the Base Indenture in the
manner and to the extent herein and therein provided. 

  
 16 

 Section 9.02. Trustee Makes No Representation; Trustee’s Rights and Duties. The
recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representation as to the validity or sufficiency of this Sixth Supplemental
Indenture and shall not be liable in connection therewith. The rights and duties of the Trustee shall be determined by the express provisions of the Base Indenture and, except as expressly set forth in this Supplemental Indenture, nothing in this
Sixth Supplemental Indenture shall in any way modify or otherwise affect the Trustee’s rights and duties thereunder. 

Section 9.03. New York Law to Govern. The Indenture and the Notes shall be deemed to be a contract under the laws of the State of
New York, and for all purposes shall be construed in accordance with the laws of such State, except as may otherwise be required by mandatory provisions of law. 

Section 9.04. Counterparts. This Sixth Supplemental Indenture may be executed in any number of counterparts, each of which shall
be an original; but such counterparts shall together constitute but one and the same instrument. 
 Section 9.05. Effect of
Headings. The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 

[Signature Page Follows] 

  
 17 

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

					
	LENNOX INTERNATIONAL INC.
		
	By:	 	 /s/ Richard A. Pelini

		 	Name:	 	Richard A. Pelini
		 	Title:	 	Vice President, Corporate Treasurer
	
	 LENNOX INDUSTRIES INC.
 ALLIED AIR
ENTERPRISES LLC
 LENNOX GLOBAL LTD.
 HEATCRAFT INC.

HEATCRAFT REFRIGERATION PRODUCTS LLC
 ADVANCED
DISTRIBUTOR PRODUCTS LLC
 LENNOX NATIONAL ACCOUNT SERVICES LLC

LGL AUSTRALIA (US) INC.
 LGL EUROPE HOLDING CO.

		
	By:	 	 /s/ Richard A. Pelini

		 	Name:	 	Richard A. Pelini
		 	Title:	 	Vice President, Treasurer

  
 [Signature Page to Sixth
Supplemental Indenture] 

					
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	 /s/ Brad Hounsel

		 	Name:	 	Brad Hounsel
		 	Title:	 	Vice President

  
 [Signature Page to Sixth
Supplemental Indenture] 

 EXHIBIT A 

[FACE OF NOTE] 
 THIS
CERTIFICATE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A NOMINEE THEREOF. EXCEPT AS OTHERWISE PROVIDED IN THE INDENTURE, THIS CERTIFICATE MAY BE TRANSFERRED, IN
WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE DEPOSITORY OR TO A SUCCESSOR DEPOSITORY OR TO A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”
OR THE “DEPOSITORY”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INSOMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 LENNOX INTERNATIONAL INC. 

3.000% Note due 2023 
  

			
	No.: 001	  	 CUSIP No.: 526107 AD9

$350,000,000

 LENNOX INTERNATIONAL INC., a Delaware corporation (the “Company”, which term includes
any successor corporation), for value received promises to pay to CEDE & CO., or registered assigns, the principal sum of $350,000,000 on November 15, 2023, unless earlier redeemed as herein provided. 

Interest Payment Dates: May 15 and November 15 (each, an “Interest Payment Date”), commencing on May 15, 2017.

 Interest Record Dates: May 1 and November 1 (each, an “Interest Record Date”). 

Payment of the principal of and interest on this Note shall be made at the office or agency of the Trustee maintained for that purpose in
Dallas Texas, in such currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, for so long as the Notes are represented in global form by one or more Global
Securities, all payments of principal of and interest shall be made by wire transfer of immediately available funds to the Depository or its nominee, as the case may be, as the registered owner of the Global Security representing such Notes. 

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

  
 A-1 

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

 

					
	LENNOX INTERNATIONAL INC.
		
	By:	 	  

		 	Name:	 	Todd M. Bluedorn
		 	Title:	 	Chief Executive Officer

  

							
	Attest:	  	
			
	By:	 	  
	  	
		 	Name:	  	Richard Pelini	  	
		 	Title:	  	Vice President, Corporate Treasurer	  	

 This is one of the Notes of the series designated herein and referred to in the within-mentioned Indenture.

  

			
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

		 	Name:
		 	Title:

 Dated: November 3, 2016 

  
 A-2 

 [REVERSE OF NOTE] 

This Note is one of the duly authorized securities of the Company (herein called the “Notes”) issued and to be issued
in one or more series under an Indenture, dated as of May 3, 2010 (as supplemented from time to time heretofore, the “Base Indenture”), as supplemented by a Sixth Supplemental Indenture, dated as of November 3, 2016 (the
“Sixth Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), between the Company, the guarantors party thereto (the “Guarantors”) and U.S. Bank National Association, as
trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture with respect to the series of Notes represented hereby), 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 Company, the Guarantors, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be,
authenticated and delivered. This Note is a Global Note representing the Company’s 3.000% Notes due 2023 in the aggregate principal amount of $350,000,000. 

The amount of interest payable on any interest payment date shall be computed on the basis of a 360-day year consisting of twelve 30-day
months. In the event that any date on which interest is payable on this Note is not a Business Day, then payment of interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other
payment in respect of any such delay) with the same force and effect as if made on such interest payment date. 
 The Notes of this series
are issuable only in fully registered form without coupons in minimum denominations of $2,000 and integral multiples of $1,000 above that amount. 

The Notes shall be redeemable, at the option of the Company, at any time and from time to time, in whole or in part, on not less than 30 nor
more than 60 days’ prior notice transmitted to the Holders of the Notes, with a copy provided to the Trustee. The Redemption Price of the Notes shall be calculated as follows: 

(a) If the Notes are redeemed prior to September 15, 2023 (the date that is two months prior to the stated maturity date for the Notes),
the Notes shall be redeemable at a Redemption Price equal to the greater of: 
 (i) 100% of the principal amount of the Notes
to be redeemed; and 
 (ii) the sum of the present values of the remaining scheduled payments of principal and interest on
the Notes to be redeemed (not including interest accrued to the date of redemption), discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 25 basis points,

 plus, in each case, accrued and unpaid interest on the Notes to be redeemed to the date of redemption. 

(b) If the Notes are redeemed on or after September 15, 2023 (the date that is two months prior to the stated maturity date for the
Notes), the Notes will be redeemable at a Redemption Price equal to 100% of the principal amount of such Notes plus accrued and unpaid interest thereon to but excluding the redemption date. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker that would
be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes. 

  
 A-3 

 “Comparable Treasury Price” means, with respect to any redemption date,
(1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations obtained. 
 “Independent Investment
Banker” means one of the Reference Treasury Dealers appointed by the Company. 
 “Primary Treasury Dealer” means a
primary U.S. government securities dealer in the United States. 
 “Reference Treasury Dealer” means each of J.P. Morgan
Securities LLC and Wells Fargo Securities, LLC and their respective successors and two other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Company, except that if any of the
foregoing ceases to be a Primary Treasury Dealer, the Company shall substitute another nationally recognized investment banking firm that is a Primary Treasury Dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the
average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer as of 3:30 p.m.,
New York City time, on the third business day preceding such redemption date. 
 “Treasury Rate” means, with respect to any
redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the third business day immediately preceding such redemption date) of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. 
 On
and after any redemption date, interest will cease to accrue on the Notes called for redemption. On or before the redemption date, the Company shall deposit with the Trustee or with one or more paying agents an amount of money sufficient to redeem
on the redemption date all of the Notes so called for redemption at the appropriate redemption price, together with accrued interest to the date fixed for redemption. If the Company is redeeming less than all of the Notes, (a) if the Notes are
represented by global notes, interests in the global notes will be selected for redemption in accordance with the customary procedures of DTC, or (b) if the Notes are represented by Notes in certificated form, the Trustee must select the Notes
to be redeemed by such method as the Trustee deems fair and appropriate in accordance with methods generally used at the time of selection by fiduciaries in similar circumstances. 

Upon the occurrence of a Change of Control Triggering Event with respect to the Notes, unless the Company has exercised its right to redeem
the Notes as described above by giving irrevocable notice to the Trustee in accordance with the Indenture, each Holder of Notes shall have the right to require the Company to purchase all or a portion of such Holder’s Notes pursuant to the
offer described below (the “Change of Control Offer”), at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase (the “Change of Control
Payment”), subject to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date. 

  
 A-4 

 Unless the Company has exercised its right to redeem the Notes, within 30 days following
the date upon which the Change of Control Triggering Event occurs with respect to the Notes or at the Company’s option, prior to any Change of Control but after the public announcement of the pending Change of Control, the Company shall be
required to send a notice to each Holder of Notes, 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 sent, other than as may be required by law (the “Change of Control Payment Date”). The notice, if sent 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 being consummated on or prior to the Change of Control Payment Date. 

On the Change of Control Payment Date, the Company shall, to the extent lawful: (i) accept or cause a third party to accept for payment
all Notes or portions of Notes properly tendered pursuant to the Change of Control Offer; (ii) deposit or cause a third party to deposit with the paying agent an amount equal to the Change of Control Payment in respect of all Notes or portions
of Notes properly tendered; and (iii) deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officer’s Certificate stating the aggregate principal amount of Notes or portions of Notes being repurchased
and that all conditions precedent to the Change of Control Offer and to the repurchase by the Company of Notes pursuant to the Change of Control Offer have been complied with. 

The Company shall not be required to make a Change of Control Offer with respect to the Notes 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 Company and such third party purchases all Notes properly tendered and not withdrawn under its offer. 

The Company shall comply in all material respects with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as
amended (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 Notes as a result of a Change of Control
Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the Change of Control Offer provisions of the Notes, the Company shall comply with those securities laws and regulations and shall not be
deemed to have breached its obligations under the Change of Control Offer provisions of the Notes by virtue of any such conflict. 

“Change of Control” means the occurrence of any of the following after the Issue Date: 

(a) the direct or indirect sale, lease, 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 Company’s assets and the assets of the Company’s subsidiaries taken as a whole to any “person” or “group” (as those terms are used in
Section 13(d)(3) of the Exchange Act) other than to the Company or one of its subsidiaries; 
 (b) the consummation of any transaction
(including, without limitation, any merger or consolidation) that results in any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act, provided that an employee of the Company or any of the
Company’s subsidiaries for whom shares are held under an employee stock ownership, employee retirement, employee savings or similar plan and whose shares are voted in accordance with the instructions of such employee is not a member of a
“group” solely because such employee’s shares are held by a trustee under said plan) becoming the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of Voting Stock
representing more than 50% of the voting power of the Company’s outstanding Voting Stock or of the Voting Stock of any of the Company’s direct or indirect parent companies; 

  
 A-5 

 (c) the Company consolidates with, or merges with or into, any Person, or any Person consolidates
with, or merges with or into, the Company, in any such event pursuant to a transaction in which any of the Company’s outstanding Voting Stock or the Voting Stock of such other Person is converted into or exchanged for cash, securities or other
property, other than any such transaction in which the Company’s Voting Stock outstanding immediately prior to such transaction constitutes, or is converted into or exchanged for, Voting Stock representing more than 50% of the voting power of
the Voting Stock of the surviving Person immediately after giving effect to such transaction; or 
 (d) the adoption of a plan relating to
the Company’s liquidation or dissolution. 
 Notwithstanding the foregoing, a transaction shall not be deemed to involve a Change of
Control solely because the Company becomes a direct or indirect wholly owned subsidiary of a holding company if the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the
same as the holders of the Company’s Voting Stock immediately prior to that transaction. 
 “Change of Control Triggering
Event” means, with respect to the Notes, (1) the rating of the Notes is lowered by any of the Rating Agencies on any date during the period (the “Trigger Period”) commencing on the earlier of (a) the occurrence of
a Change of Control and (b) the first public announcement by the Company of any Change of Control (or pending Change of Control), and ending 60 days following consummation of such Change of Control (which Trigger Period shall be extended
following consummation of a Change of Control for so long as any of the Rating Agencies has publicly announced that it is considering a possible ratings change), and (2) the Notes are rated below Investment Grade by each of the Rating Agencies
on any day during the Trigger Period; provided that a Change of Control Trigger Event shall not be deemed to have occurred in respect of a particular Change of Control if the Rating Agency making the reduction in rating does not publicly announce or
confirm or inform the Trustee at the Company’s 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 Change of Control. 

Notwithstanding the foregoing, no Change of Control Triggering Event shall be deemed to have occurred in connection with any particular Change
of Control unless and until such Change of Control has actually been consummated. 
 “Investment Grade” means a
rating of Baa3 or better by Moody’s (or its equivalent under any successor rating category of Moody’s) or a rating of BBB- or better by S&P (or its equivalent under any successor rating category of S&P), and the equivalent
investment grade credit rating from any replacement rating agency or rating agencies selected by the Company under the circumstances permitting the Company to select a replacement agency and in the manner for selecting a replacement agency, in each
case as set forth in the definition of “Rating Agency.” 
 “Moody’s” means Moody’s Investors Service,
Inc. and its successors. 
 “Person” means any individual, corporation, partnership, limited liability company, business
trust, association, joint-stock company, joint venture, trust, incorporated or unincorporated organization or government or any agency or political subdivision thereof. 

“Rating Agency” means each of Moody’s and S&P; provided, that if any of Moody’s or S&P ceases to provide
rating services to issuers or investors, the Company may appoint another “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of the Exchange Act as a replacement for such Rating Agency. 

  
 A-6 

 “S&P” means Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc., and its successors. 
 “Voting Stock” of any specified Person as
of any date means the capital stock of such Person that is at the time entitled to vote generally in the election of the board of directors of such Person. 

The indebtedness evidenced by this Note is, to the extent provided in the Indenture, the senior and unsecured obligation of the Company and
will rank equally in right of payment to all of the Company’s existing and future senior unsecured and unsubordinated indebtedness. This Note will, to the extent provided in the Indenture, be guaranteed, jointly and severally, by each of the
Guarantors party to the Indenture on a senior unsecured basis. This Note may hereafter be entitled to certain other Guarantees made for the benefit of the Holders. Reference is made to Article 8 of the Sixth Supplemental Indenture for terms relating
to such Guarantees, including the release, termination and discharge thereof. Neither the Company nor any Guarantor shall be required to make any notation on this Note to reflect any Guarantee or any such release, termination or discharge. 

The Notes are initially limited to $350,000,000 aggregate principal amount. The Company may from time to time, without notice to or the
consent of the Holders of the Notes, create and issue additional Notes ranking equally and ratably with the Notes of this series in all respects (other than the issue price, the date of the issuance, the payment of interest accruing prior to the
issue date of such additional Notes and the first payment of interest following the issue date of such additional Notes), provided that such Notes must be part of the same issue as the Notes initially issued for U.S. federal income tax purposes. Any
such additional Notes shall be consolidated and form a single series with the Notes initially issued, including for purposes of voting and redemptions. 

The Notes are not entitled to the benefit of any sinking fund. 

The Indenture imposes certain limitations on the ability of the Company to, among other things, merge or consolidate with any other Person,
and requires that the Company comply with certain further covenants, such as Limitations on Liens and Limitations on Sale and Leaseback Transactions as further described in the Indenture, all of which are applicable to this Note. All such covenants
and limitations are subject to a number of important qualifications and exceptions. 
 The Indenture contains provisions for the defeasance
at any time of (a) the entire indebtedness of the Company on this Note and (b) certain restrictive covenants and the related defaults and Events of Default, upon compliance by the Company with certain conditions set forth therein, which
provisions apply to this Note. 
 If an Event of Default with respect to Notes of this series shall occur and be continuing, the principal
of the Notes of this series may (subject to the conditions set forth in the Indenture) be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture contains provisions permitting, with certain exceptions therein provided, the Company and the Trustee, without the consent of
any of the Holders of the outstanding Notes, to modify and amend the Indenture for the purpose of, among other things, curing any ambiguity, defect or inconsistency. 

  
 A-7 

 The Indenture also contains provisions permitting the Holders of a majority in aggregate
principal amount of the outstanding Notes, on behalf of the Holders of all Notes, to waive any past default or Event of Default with respect to the Notes and its consequences, except a default in the payment of the principal of or interest on any of
the Notes or in respect of a covenant or other provision which, under the terms of the Indenture, cannot be modified or amended without the consent of the Holder of each outstanding Note. 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the currency, herein prescribed. 

No director, officer, employee, incorporator or stockholder, as such, of the Company, any Guarantor or any other obligor in respect of any
Note or any subsidiary of any thereof shall have any liability for any obligation of the Company, any Guarantor or any other obligor in respect of any Note under the Indenture, the Notes or any Guarantee, or for any claim based on, in respect of, or
by reason of, any such obligation or its creation. Each Holder, by accepting this Note, hereby waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. 

This Note shall be governed by and construed in accordance with the law of the State of New York. 

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

  
 A-8 

 EXHIBIT B 

[Form of Supplemental Indenture in Respect of Subsidiary Guarantees] 

SUPPLEMENTAL INDENTURE, dated as of             ,
20     (this “Supplemental Indenture”), among [name of Guarantor(s)] (the “Guarantor(s)”), Lennox International Inc., a Delaware corporation (the “Company”), and each other then
existing Guarantor under the Indenture referred to below (the “Existing Guarantors”), and [name of trustee], as Trustee under the Indenture referred to below. 

RECITALS 
 WHEREAS, the
Company, any Existing Guarantors and the Trustee have heretofore become parties to an Indenture, dated as of May 3, 2010 (the “Base Indenture” and, as supplemented by the Sixth Supplemental Indenture (the “Sixth
Supplemental Indenture”), dated as of November 3, 2016, the “Indenture”), providing for the issuance of 3.000% Notes due 2023 of the Company (the “Notes”); 

WHEREAS, Section 8.06 of the Sixth Supplemental Indenture provides that the Company is required to cause the Guarantors to execute and deliver
to the Trustee a supplemental indenture evidencing its guarantee of the punctual payment when due of all monetary obligations of the Company under the Indenture and the Notes on the terms and conditions set forth herein and in Article 8 of the Sixth
Supplemental Indenture; 
 WHEREAS, each Guarantor desires to enter into such supplemental indenture for good and valuable consideration,
including substantial economic benefit in that the financial performance and condition of such Guarantor is dependent on the financial performance and condition of the Company, the obligations hereunder of which such Guarantor has guaranteed; and

 WHEREAS, pursuant to Section 8.01 of the Base Indenture, the parties hereto are authorized to execute and deliver this Supplemental
Indenture to amend the Indenture, without the consent of any Holder; 
 NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt of which is hereby acknowledged, the Guarantors, the Company, the Existing Guarantors and the Trustee mutually covenant and agree for the benefit of the Holders of the Notes as follows: 

1. Defined Terms. As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein
as therein defined. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section
hereof. 
 2. Agreement to Guarantee. [The] [Each] Guarantor, as primary obligor and not merely as surety, hereby jointly and
severally, irrevocably and fully and unconditionally guarantees to each Holder and to the Trustee and its successor and assigns ([the] [each, a] “Guarantee”), on a senior unsecured basis and equal in right of payment to all existing
and future senior indebtedness of such Guarantor(s), the punctual payment when due of all monetary obligations of the Company under the Indenture and the Notes, whether for principal of or interest on the Notes, on the terms and subject to the
conditions set forth in Article 8 of the Sixth Supplemental Indenture and agrees to be bound by (and shall be entitled to the benefits of) all other applicable provisions of the Indenture as a Guarantor. 

  
 B-1 

 3. Termination, Release and Discharge. [The] [Each] Guarantor’s Guarantee shall terminate
and be of no further force or effect, and [the] [each] Guarantor shall be released and discharged from all obligations in respect of such Guarantee, as and when provided in Section 8.03 of the Sixth Supplemental Indenture. 

4. Parties. Nothing in this Supplemental Indenture is intended or shall be construed to give any Person, other than the Holders and the
Trustee, any legal or equitable right, remedy or claim under or in respect of [the] [each] Guarantor’s Guarantee or any provision contained herein or in Article 8 of the Sixth Supplemental Indenture. 

5. Governing Law. This Supplemental Indenture and the Notes shall be deemed to be a contract under the laws of the State of New York, and for
all purposes shall be construed in accordance with the laws of such State, except as may otherwise be required by mandatory provisions of law. 

6. Ratification of Indenture; Supplemental Indentures Part of Indenture. The Indenture, as supplemented by this Supplemental Indenture, is in
all respects ratified and confirmed, and this Supplemental Indenture shall be deemed part of the Indenture in the manner and to the extent herein and therein provided. The recitals contained herein shall be taken as the statements of the Company,
and the Trustee assumes no responsibility for the correctness of the same. 
 7. Counterparts. This Supplemental Indenture may be executed
in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument. 

8. Headings. The section headings herein are for convenience only and shall not affect the construction hereof. 

  
 B-2 

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

			
	[NAME OF GUARANTOR(S)]
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	LENNOX INTERNATIONAL INC.
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	[NAME OF TRUSTEE], as Trustee
		
	By:	 	  

		 	Name:
		 	Title:

  
 B-3Exhibit 10.1

 

Execution Copy

 

**Confidential portions
have been omitted pursuant to a request for confidential treatment and have been filed separately with the Securities and Exchange
Commission (the “Commission”)**

 

LICENSE AGREEMENT

 

This License Agreement (the "Agreement"),
dated as of May 20, 2015 by and between Dekel Pharmaceuticals Ltd., corporate number 51-419250-9, a private company incorporated
under the laws of Israel (the “Licensor”), and Therapix Biosciences Ltd., company number 51-358165-2, a public
company whose shares are listed for trading on the Tel Aviv Stock Exchange ("TASE" and collectively, the “Licensee”).
Licensee, on the one hand, and Licensor, on the other, may each individually be referred to in this Agreement as a “Party”
and collectively referred to in this Agreement as the “Parties”.

 

WITNESSETH:

 

WHEREAS, Licensor is the sole owner of certain
technology, know-how, information, materials, and results relating to PEA combination drug therapies technology, as more fully
described below; and

 

WHEREAS, Licensor has offered to Licensee, and
Licensee is desirous of obtaining from Licensor, an exclusive, irrevocable, worldwide, royalty-bearing, sublicensable license for
the use of the Licensed Technology, all on the terms and conditions hereinafter set forth; and

 

NOW THEREFORE, the parties hereto hereby agree
as follows:

 

		1.	DEFINITIONS

 

		1.1.	"Calendar Quarter" shall mean the respective periods
of three (3) consecutive calendar months ending on March 31, June 30, September 30 or December 31, for so long as this Agreement
is in effect.

 

		1.2.	"First Commercial Sale" will mean the first sale
of a Licensed Product by the Licensee after receipt of all governmental and other regulatory approvals required to market and sell
the Licensed Product have been obtained in the country in which such Licensed Product is sold.

 

		1.3.	"Licensee's Development Obligation" shall mean the
obligations imposed on Licensee in accordance with Section 4.

 

		1.4.	"Licensed Know-How" shall mean any information, knowledge,
ancillary materials, results, devices trade secrets, inventions, know-how, data, processes, techniques, procedures, compositions,
materials, devices, methods, formulas, protocols and information, whether or not patentable, together with any documentation, data,
information or other materials related, covered or used by the Licensed Patents, and all improvements, updates, derivatives, modifications
and enhancements thereto made by Licensor by the Effective Date (if any).

 

    

     

    

 

		1.5.	“Licensed Patents” shall mean (i) the U.S., foreign
or international patent and/or patent applications set forth on Exhibit A attached hereto, (ii) the Patent Rights,
and (iii) any and all patent rights covering the Licensed Know-how. Exhibit A shall include and shall be updated from time to time
to reflect inclusion of new Licensed Patents.

 

		1.6.	"Licensed
                                         Product" shall mean any product that comprises, contains or incorporates
                                         the Licensed Technology.

 

		1.7.	"Licensed Technology" shall mean the Licensed Patents
and Licensed Know-How, and other intellectual property owned by or licensed to Licensor related thereto.

 

		1.8.	"M&A
                                         Transaction" shall mean a transaction or series of transactions involving
                                         (i) a sale or transfer of all or substantially all of the assets of the Company, (ii)
                                         a sale or transfer of all or substantially all of share capital, (iii) a merger or consolidation,
                                         (iv) dissolution or liquidation, or (v) the consummation of any transaction or series
                                         of related transactions having similar effect as any of the foregoing.

 

		1.9.	"Net
                                         Sales" shall mean the gross amount invoiced by or on behalf of Licensee,
                                         on sales of products under the License, less the following reasonable and customary deductions:
                                         (i) all trade, cash and quantity credits, discounts, refunds or rebates to the extent
                                         actually allowed and taken; (ii) amounts for claims, allowances or credits for returns,
                                         retroactive price reductions, or chargebacks; (iii) prepaid freight, sales taxes, duties
                                         and other governmental charges (including value added tax) to the extent separately stated
                                         on the invoice, and (iv) credits for uncollectible amounts on previously sold products,
                                         provided that reasonable efforts have been made to collect such amounts and provided
                                         that such amounts have been written off on Licensee's books in accordance with generally
                                         accepted accounting principles.

 

		1.10.	"Patent
                                         Rights" shall mean any and all (a) patents, (b) pending patent
                                         applications, including, without limitation, all provisional applications, continuations,
                                         continuations-in-part, divisions, reissues, renewals, and all patents granted thereon,
                                         and (c) all patents-of-addition, reissue patents, reexaminations and extensions
                                         or restorations by existing or future extension or restoration mechanisms, including,
                                         without limitation, supplementary protection certificates or the equivalent thereof.

 

		1.11.	"Special
                                         Consideration" shall mean the consideration detailed under Section 3.3.

 

		1.12.	"Sublicense
                                         Receipts" shall mean the gross amount actually received by Licensee
                                         from a third party to whom Licensee, at its sole discretion, granted any rights under
                                         the License with respect to the development, manufacturing, marking, sale or distribution
                                         of any rights under the License, except for limited, revocable, non-exclusive licenses
                                         granted to subcontractors in the ordinary course of business for the sole purpose of
                                         provision of services to Licensee, and which is not Net Revenues. Sublicense Receipts
                                         specifically exclude (i) any amounts received as grants in connection with government
                                         programs, or otherwise as research grants from national or international not-for-profit
                                         funding bodies, or in connection with an M&A Transaction, (ii) reimbursement for
                                         patent expenses, and (iii) payments committed to cover costs actually incurred by Licensee
                                         under, and in accordance with detailed budgets and workplans included in sublicense agreement
                                         with Sublicensees.

 

		1.13.	"Transaction Consideration" shall mean the consideration
detailed under Section 3, along with Licensee's Development Obligation.

 

    2

     

    

 

		2.	LICENSE

 

		2.1.	As of the Effective Date (as defined below), Licensor hereby grants to Licensee
and Licensee hereby accepts, an exclusive, irrevocable, worldwide, royalty-bearing, sublicensable license for the purpose of research
and development, manufacturing, sale, distribution, marketing and commercialization of the Licensed Technology and the Licensed
Products,(the “License").

 

Licensor shall freely
develop, manufacture, sell, distribute and commercialize any of its intellectual property (the "Licensor's Activity"),
provided, however, that (i) such intellectual property is not incorporated or covered by the Licensed Technology;
and (ii) such Licensor's Activity shall not result in a product which competes with the Licensed Product.

 

		2.2.	Sublicense Rights. Licensor grants to Licensee the right to grant
sublicenses of any right under the License to third parties (each a "Sublicensee"), provided that: (i)
Licensee has notified Licensor in writing of the sublicense of rights to each Sublicensee; (ii) a sublicense will be no broader
than the License and shall contain, inter alia, restrictions on use of the License and other applicable requirements as severe
as those imposed on Licensee herein. In the event that this Agreement is terminated, Licensor will accept existing Sublicensees
in good standing at the date of termination and will enter into a direct license agreement with the sublicense at the terms and
conditions of the sublicense. Licensee shall be obligated to enforce the terms and restrictions on use of the License against any
Sublicensee.

 

		2.3.	Licensor shall, at Licensee’s reasonable request, provide to Licensee
assistance, including consultation of Licensor’s personnel, with respect to the License, including in connection with application
of the Licensed Technology to Licensee’s technology and commercialization of the Licensed Products.

 

		2.4.	The Parties hereby agree that the execution, delivery and performance of
this Agreement and any of the provisions hereof are subject to (i) the receipt of approval by all relevant organs of both Parties
according to the Companies Law and any applicable regulations; (ii) completion of appropriate filings with and obtainment of the
required approvals of the Israeli Securities Authority and the TASE (and the OTCQB, if required);
and (iii) with respect to Licensee, an investment in the Licensee, whether by Licensor or by a third party, in one or multiple
transactions, in the aggregate amount not lower than US$ 350,000. The License granted hereby shall become effective as of the attainment
of the later of sub-Sections (i)-(iii) above (the "Effective Date").

 

		3.	LICENSE CONSIDERATION

 

		3.1.	Immediately following the Effective Date, Licensee shall be issued with 200,000
Ordinary Shares of Licensee, par value NIS 0.01 per share (the "Ordinary Shares"), at a price per share
equal to NIS 0.5 (the "Upfront Payment").

 

The value of the Upfront
Payment shall be NIS 100,000, and shall be set off against the Royalty Payments detailed under Section 3.3.

 

    3

     

    

 

		3.2.	Option(s).

 

3.2.1Immediately
following the Effective Date, Licensee hereby grants Licenser an option to purchase Ordinary Shares of Licensee, in an aggregate
purchase price of up to US$ 500,000, at an exercise price of NIS 0.5 per share (the "Initial Option").
Licensor shall notify the Licensee with respect to the exercise of the Initial Option by providing the Licensee with an written
notice with respect to such exercise. Unless exercised in accordance with this Section 3.2.1, the Initial Option shall expire within
90 days following the Effective Date (the "Initial Option Expiration Date").

 

3.2.2In the event
that Licensor elected to exercise its Initial Option in accordance with Section 2.2.1 above, Licensee shall grant the Licensor
with an additional option to purchase Ordinary Shares of Licensee, according to which Licensor shall be entitled to purchase up
to 4 additional Ordinary Shares, at an exercise price equal to NIS 0.65, for each Ordinary Share it purchased under the Initial
Option (the "Additional Option"). The Additional Option shall be limited to an aggregate purchase price
of US$ 2,000,000, and the number of shares underlying the Additional Option shall be reduced accordingly.

 

Licensor shall notify
the Licensee with respect to the exercise the Additional Option by providing the Licensee with a written notice with respect to
such exercise. The Additional Option shall expire within 12 months following the Initial Option Expiration Date.

 

3.2.3Notwithstanding
anything to the contrary herein, Licensor hereby acknowledges that the exercise of the Initial Option and/or of the Additional
Option (or part thereof) might be subject to Tender Offer regulation, as prescribed under the Companies Law and regulations promulgated
thereof. Licensor hereby agrees to abide and comply with such rules and regulations, as applicable.

 

		3.3.	Royalty Payments.

 

Licensee shall
pay Licensor the amounts set forth in this Section 3.3. Such amounts shall be payable, on a Licensed Product-by-Licensed Product
and country-by country basis until the later of (i) ten (10) years from the date of the First Commercial Sale of such Licensed
Product in such country, and (ii) the last to expire or terminate of any of the Patent Rights in such country: 

3.3.1Net
Sales. Licensee shall pay Licensor an amount equal to [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION].

 

3.3.2Sublicense
Receipts. Licensee shall pay Licensor an amount equal to [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION].

 

    4

     

    

 

3.3.3Milestone
Payments. Licensee shall pay Licensor the following milestone payments:

 

3.3.3.1Upon the
Licensee's success of pre-clinical studies with Licensed Product, Licensee shall pay Licensor an amount equal to US$ 25,000, either
by cash or equity equivalent based on NIS 0.5 per Ordinary Share, at Licensee's sole discretion;

 

3.3.3.2Upon the
Licensees success of a phase 1/2a study with the "entourage molecules" with Licensor's PEA based formulation, Licensee
shall pay Licensor an amount equal to US$ 75,000, either by cash or equity equivalent based on NIS 0.5 per Ordinary Share, at Licensee's
sole discretion; and

 

3.3.3.3 Upon
the earlier of (i) generating net revenues of at least US$ 200,000 from the commercialization of the Licensed Product by
Licensee; or (ii) approval of the FDA/EMA of a drug product based on the Licensed Product – an amount equal to US$
75,000, either by cash or equity equivalent based on NIS 0.5 per Ordinary Share, at Licensee's sole discretion.

 

3A. Reports.

 

3A.1. Within sixty (60) days after
the conclusion of each Calendar Quarter commencing with the first Calendar Quarter in which Licensee first receives Net Sales,
Licensee shall deliver to Licensor a report, certified by Licensee's Chief Financial Officer, containing the following information:

 

		(i)	The number of units of Licensed Products sold by Licensee or its Sublicensees to independent third
parties in each country for the applicable Calendar Quarter;

 

		(ii)	The gross amount billed for Licensed Products sold by Licensee or its Sublicensees during the applicable
Calendar Quarter in each country;

 

		(iii)	A calculation of Net Sales for the applicable Calendar Quarter in each country, including a listing
of applicable deductions;

 

		(iv)	The total amount payable to Licensor in US Dollars with respect to the Net Sales for the applicable
Calendar Quarter, together with the exchange rates used for conversion.

 

3A.2. In addition to the reports delivered pursuant
to Section 3A.1, Licensee shall notify Licensor in writing within thirty (30) days of the receipt of any Sublicense Receipts. Licensee
shall remit to Licensor all amounts due with respect to such Sublicense Receipts within sixty (60) days of the receipt of such
Sublicense Receipts by Licensee.

 

		4.	ANTI-SHELVING AND COMMERCIALIZATION

 

		4.1.	The Licensee undertakes, at its own expense, to use its commercially reasonable
efforts to lead, manage and fund activities, costs and expenses in connection with the Licensed Technology formulation development
and maintenance, including, without limitation, pre-clinical studies, GM manufacturing, clinical testing and patent filings and
persecutions of the Licensed Technology, by a total annual investment cap of [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT
TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION], or in accordance with an annual
research and development plan and budget, which shall include, inter alia, timeframes and development milestones, to be mutually
agreed on between the Parties (the "Development Plan").

 

    5

     

    

 

		4.2.	Licensee shall be entitled, from time to time, to make such adjustments to the Development Plan
as the Licensee believes, in its good faith judgment, are needed in order to improve the Licensee's ability to meet the development
milestones under the Development Plan (the "Development Milestones"). Licensee shall notify Licensor promptly
regarding material changes to the Development Plan. Notwithstanding the foregoing or anything to the contrary in this Agreement,
the Licensee shall not be entitled to make any material change the Development Milestones or the time frames for achieving the
Development Milestones without Licensor's prior written consent which shall not be unreasonably withheld. If Licensor has
not approved or rejected the request within 30 days as of submission by the Licensee, such request shall be deemed approved. Any
consent by Licensor shall not be required in connection with a Development Milestone delayed or revised due to a decision or recommendation
of a regulatory agency.

 

		4.3.	Within sixty (60) days after the end of each calendar year, the Licensee shall furnish Licensor
with a written report on the progress of its efforts during the prior year to develop and commercialize the Licensed Product.

 

		4.4.	If the Licensee materially breaches any of its obligations pursuant to Sections 4.1 or 4.2 above
or pursuant to the Development Plan or Development Milestones (and such breach is not remedied or approved by Licensor according
to Sections 4.2 or 4.2 above), the provisions of Section 11.2.2 below shall apply with respect to such breach.

 

		5.	PATENT PROSECUTION AND MAINTENANCE

 

		5.1.	Prosecution. Licensee will, at its own costs and expenses, be solely responsible
for the preparation, filing, prosecution and maintenance of all patent applications and patents included in the Licensed Technology.
Licensee will instruct its patent counsel to copy Licensor on any patent application or notice of each official action of any patent
office (including but not limited to office actions, payment of fees, abandonment of applications etc.). Licensor will have the
right, but not the obligation, to propose changes to any filing and responses, which Licensee will consider (and Licensee will
direct the patent counsel to consider) prior to submitting the patent application or the response to office action.

 

		5.2.	Notwithstanding the foregoing, and only in the event that Licensor decides, at its sole discretion,
to abandon a patent or patent application or not to file a patent application in specific countries, Licensee shall have the right,
but not the obligation, to make decisions with respect to the preparation, filing, prosecution and maintenance of such patent applications
and patents, at its own costs and expense. Licensor shall notify Licensee of any such decision within a commercially reasonable
period of time and at least ten (10) business days before any official dead-line. Any costs and expenses paid by Licensee toward
the preparation, filing, prosecution and maintenance of such patent applications and patents will be set-off against the Special
Consideration and reduce Licensee's payment obligation accordingly.

 

    6

     

    

 

		6.	REPRESENTATIONS AND WARRANTIES

 

		6.1.	Warranties by Licensor.

 

6.1.1Licensor
hereby represents and warrants that (i) the Licensed Technology does not infringe upon or make unauthorized use of any intellectual
property rights of any third party, and that the Licensed Technology is free and clear of all claims, security interests, charges,
liens, encumbrances or other adverse claims or third party rights; (ii) Licensor has never received any charge, complaint, claim,
demand, or notice alleging any such interference, infringement, misappropriation, or violation; (iii) Licensor is the sole and
exclusive owner of all right, title and interest in and to the Licensed Technology;
(iv) there are no superior rights which would prevent Licensee from fully exercising its rights under the License;
(v) there is no action, suit, claim, hearing, arbitrations or other legal proceeding or investigation by or before any entity of
any nature pending or threatened against the Licensor, in relation to the Licensed Technology.

 

6.1.2Licensor
hereby further represents that it has not granted any rights to third parties in additional patents developed alone or jointly
with others, which may be commercially competitive with the patents and patent applications under the Licensed Technology.

 

6.1.3There are
no amounts that shall be required to be paid by Licensor or by any other related party to any third party as a result of the exploitation
of the Licensed Technology.

 

6.1.4Each person
who is an inventor of or who has or has had any rights in the Licensed Technology has assigned and has executed an agreement assigning
its entire right, title, and interest in such to the Licensor in all countries and jurisdictions applicable.

 

6.1.5All applicable
information in connection with the Licensed Technology has been kept confidential or has been disclosed to third parties only under
terms of confidentiality. No breach of such confidentiality has been committed by any third party.

 

6.1.6The representations
and warranties of Licensor in this Agreement, and the information, documents and materials furnished to Licensee in connection
with its period of diligence prior to the Effective Date, do not, taken as a whole, (a) contain any untrue statement of a material
fact, or (b) omit to state any material fact necessary to make the statements or facts contained therein, in light of the circumstances
under which they were made, not misleading.

 

    7

     

    

 

		6.2.	Mutual Representations, Warranties and Covenants.

 

Licensor and Licensee
each represents and warrants to the other, as of the Effective Date that:

 

6.2.1The execution
and delivery of this Agreement and the performance by it of the transactions contemplated hereby do not violate: (i) such Party’s
Articles of Association or other organizational documents; (ii) in any material respect, any agreement, instrument, or contractual
obligation to which such Party is bound; (iii) any requirement of any applicable law; or (iv) any order, writ, judgment, injunction,
decree, determination, or award of any court or governmental entity presently in effect applicable to such Party.

 

6.2.2This Agreement
is a legal, valid, and binding obligation of such Party enforceable against it in accordance with its terms and conditions, subject
to the effects of bankruptcy, insolvency, or other laws of general application affecting the enforcement of creditor rights, judicial
principles affecting the availability of specific performance, and general principles of equity (whether enforceability is considered
a proceeding at law or equity).

 

		7.	CONFIDENTIALITY

 

		7.1.	Licensee shall not disclose to others any information and data relating to the objects and contents
of the Licensed Technology to others or use such information except as necessary to exercise its rights under this Agreement and
the License. Licensor shall not disclose to others any information or data relating to Licensee’s technology or business,
which comes to Licensor’s knowledge in connection with this Agreement, or use such information except in performing its obligations
hereunder.

 

		7.2.	Excluded from the foregoing undertaking of confidentiality is (i) information which is in the public
domain at the date of the signing hereof or which becomes part of the public domain thereafter other than through the receiving
party’s violation of any of the provisions of this Agreement; (ii) information in the receiving party’s possession
prior to disclosure by the other party, as evidenced by the receiving party’s written records; (iii) information received
by the receiving party from an independent third party who has no obligation of confidentiality to disclosing party; and (iv) information
independently developed by, as evidenced by the receiving party’s written records, or for, the receiving party, provided
that the third party independently developing such information has no obligation of confidentiality to disclosing party. Licensee
may disclose to its personnel, agents and subcontractors, confidential information as shall be necessary for the exercise by it
of its rights or obligations under this Agreement, provided that such persons shall agree to be bound by a similar undertaking
of confidentiality.

 

		7.3.	A disclosure by the receiving party of confidential information in response to a valid order by
a court or other governmental body, or as otherwise required by law, and to such extent necessary, shall not be considered to be
a breach of this Agreement, provided, however, that the receiving party shall provide the disclosing party with prompt prior written
notice ,as soon as legally permissible, to enable the disclosing party to seek a protective order or otherwise prevent or contest
such disclosure.

 

		7.4.	The Parties shall keep the terms and conditions of this Agreement strictly confidential and will
not disclose it or provide a copy of this Agreement or any part thereof to any third party, nor issue any statements or releases
pertaining to this Agreement or the Parties’ discussions, without the other Party’s prior written consent, which shall
not be unreasonably withheld or delayed. Notwithstanding the above, Licensor specifically acknowledges and understands that Licensee
is a public company traded on the Tel-Aviv Stock Exchange. Accordingly, (a) Licensee's Confidential Information may be considered
as "inside information" pursuant to Israeli securities laws and regulations; and (b) Licensee is required to make certain
disclosures and publications under applicable laws which may include this Agreement and/or the Parties' engagement, such disclosure
not to be deemed a breach of this Section, provided that such disclosures are limited to those required and are provided
to Licensee for comment a reasonable time in advance of such disclosures.

 

    8

     

    

 

For the purpose of this
Section, "Confidential Information" shall mean all ideas, data and information of any kind, including,
without limitation, technology, know-how, technical data, products, works of authorship, assets, operations, contractual relationships,
business plans or any other aspect of a Party's business or technology, disclosed, provided or otherwise made available by one
Party to the other.

 

		7.5.	Notwithstanding anything to the contrary herein, Licensee shall be entitled to disclose this Agreement
to potential investors subject to standard confidentiality obligations, and such disclosure shall not be deemed breach of this
Agreement.

 

		7.6.	The termination of this Agreement for whatever reason shall not release the parties from any of
its obligations under this Section 7.

 

		8.	TITLE

 

		8.1.	Subject to the License, all right, title and interest in and to all ideas, methods, processes,
techniques and know-how comprising the Licensed Technology and any documents or other materials containing Licensed Technology
shall vest in Licensor exclusively.

 

		8.2.	It is hereby expressly agreed that all right, title and interest in and to the ideas, methods,
developments, modifications, improvements, processes, techniques and know-how made or developed by Licensee and which are based
on the Licensed Technology (the "Developments") shall vest in Licensee exclusively. It is further agreed
that results of all experimentation and clinical trials relating to any of Licensee’s proprietary technology, no matter by
whom performed, including but not limited to results gained from experiments relating to the use of the Licensee’s proprietary
technology together with the Licensed Technology, shall vest solely in Licensee.

 

		8.3.	All ideas, methods, processes, techniques and know-how made or developed by Licensee prior to and/or
in the course of or related to the performance of this Agreement and/or exercise of the Licensee shall vest in Licensee exclusively.

 

		9.	INFRINGEMENT

 

		9.1.	Licensor will indemnify Licensee against any cost, liability and expense (including
reasonable counsel fees) sustained by it in connection with any claim, suit or proceeding brought by any third party based on
a claim that the Licensed Technology infringes a patent, copyright, trademark or other intellectual property right of any third
party; provided, however, that Licensee shall:

 

		(i)	Give Licensor prompt written notice, as soon as legally permissible, of any such claim,
suit or proceeding;

 

		(ii)	Reasonably cooperate with Licensor in relation to any such claim, suit or proceeding
by way of, inter alia, the provision of assistance, information and authority necessary to perform the above.

 

		9.2.	Licensee may, at Licensee's sole discretion, set off such indemnified amounts
due by Licensor to Licensee against the Transaction Consideration.

 

    9

     

    

 

		10.	INDEMNIFICATION; LIMITATION OF LIABILITY

 

		10.1.	Indemnification by Licensor. Subject to the provisions of this Section 10, Licensor agrees
to defend, indemnify and hold harmless Licensee and its directors, officers, agents, employees, successors and assigns, from and
against any and all actions, causes of action, judgments, awards and liabilities (collectively, the “Losses”)
to the extent arising from or relating to (i) any breach by Licensor of any of its covenants or provisions contained in this Agreement;
and (ii) any breach of any warranty or representation of Licensor contained in this Agreement. Notwithstanding anything to the
contrary herein, Licensor shall not be liable under this Section 10 with respect to any Losses directly attributable to the gross
negligence or willful misconduct of Licensee or to any breach by Licensee of any of its covenants or agreements, warranty or representation
contained in this Agreement.

 

		10.2.	Indemnification by Licensee. Subject to the provisions of this Section 10, Licensee agrees
to defend, indemnify and hold harmless Licensor and its respective directors, officers, agents, employees, successors and assigns,
from and against any and all Losses to the extent arising from or relating to the exercise by Licensee of the License or any other
rights granted herein. Notwithstanding anything to the contrary herein, Licensee shall not be liable under this Section 10 with
respect to any Losses directly attributable to the gross negligence or willful misconduct of Licensor or to any breach by Licensor
of any of its covenants or agreements, warranty or representation contained in this Agreement.

 

		10.3.	To invoke the indemnification undertakings provided for herein, the Party seeking indemnification
(the “Indemnified Party”) shall give prompt notice in writing after any such claim, demand or proceeding
becomes known to the Party from which indemnification is sought (the “Indemnifying Party”) The Indemnifying
Party shall have the sole discretion to settle any claims without the respective Indemnified Party’s consent (unless such
settlement would require such Indemnified Party to make any unindemnified payment or adversely affect its rights, including but
not limited to any of its rights in or to the Licensed Technology, the Developments and other intellectual property rights, as
applicable, in which case the written consent of the Indemnified Party shall be required prior to such settlement, and such consent
shall not be unreasonably withheld). The Indemnifying Party shall have the sole right to retain and select counsel to represent
its interests in defending any claim as part of its indemnification obligation and such Party shall fully control such defense
at its sole cost and expense. Upon request and at the Indemnifying Party’s sole cost and expense, the Indemnified Party shall
provide reasonable assistance necessary to defend any claim. In the case of a final award of damages in any such matter, the Indemnifying
Party shall pay such award, but shall not be responsible for any settlement made without its prior written consent, which shall
not be unreasonably withheld.

 

		10.4.	Limitation on Liability. Except in connection with fraud or intentional misrepresentation
on the part of either Party, the aggregate liability of the Licensee under this Agreement or any document or certificate executed
or delivered in connection with this Agreement shall not exceed the aggregate amount actually paid by Licensee to Licensor under
this Agreement.

 

    10

     

    

 

		10.5.	No Consequential Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, NO
PARTY TO THIS AGREEMENT SHALL BE LIABLE TO OR OTHERWISE RESPONSIBLE TO THE OTHER PARTY OR ANY AFFILIATE OF THE OTHER PARTY FOR
LOST REVENUES OR PROFITS OR INCIDENTAL, CONSEQUENTIAL, PUNITIVE, EXEMPLARY OR MULTIPLIED DAMAGES OR ATTORNEYS FEES OR COSTS THAT
ARISE OUT OF OR RELATE TO THIS AGREEMENT OR THE PERFORMANCE OR BREACH HEREOF OR ANY LIABILITY RETAINED OR ASSUMED HEREUNDER; PROVIDED,
HOWEVER, THAT THE FOREGOING SHALL NOT BE CONSTRUED TO PRECLUDE RECOVERY IN RESPECT OF ANY LOSS DIRECTLY INCURRED OR SUFFERED FROM
THIRD PARTY CLAIMS IN CONNECTION WITH INTELLECTUAL PROPERTY AND CONFIDENTIALITY.

 

		11.	TERM AND TERMINATION

 

		11.1.	The term of this Agreement shall commence on the Effective Date and hall continue in full force
and effect unless earlier terminated as provided in this Article 11.

 

		11.2.	Termination 

 

11.2.1Without
Cause. Licensee may terminate this Agreement upon sixty (60) days prior written notice to the Licensor.

 

11.2.2Termination
for Default. In the event that either Party commits a material breach of its obligations
under this Agreement and such party fails to cure such breach within one hundred and twenty (120) days after receiving written
notice thereof, the other party may terminate this Agreement immediately upon written notice to the party in breach.

 

11.2.3Termination
for Bankruptcy. Each Party may terminate this Agreement upon notice to the other Party if such other Party (a) suffers
bankruptcy proceedings under any law which is not dismissed or stayed within ninety (90) days; (b) is adjudicated insolvent or
bankrupt, which adjudication is not dismissed within one hundred and twenty (120) days; (c) admits in writing its inability to
pay a significant portion of its debts; (d) voluntarily has a custodian, receiver or trustee appointed for it or substantially
all of its assets; or (e) involuntarily has a custodian, receiver or trustee appointed for it or substantially all of its assets,
which custodian, receiver or trustee is not discharged within ninety (90) days.

 

		11.3.	Effect of Termination. 

 

11.3.1Termination
of Rights. Upon termination of this Agreement by either Party pursuant to any of the provisions of Section 11.2, the rights
granted to Licensee by Licensor under the License shall terminate and the Licensed Technology shall be reverted to Licensor ("Termination
Effect"). The Licensee shall return or transfer to Licensor, within forty five 45 days of termination of the License,
all material, in soft or hard copy, relating directly to the Licensed Technology (other than Developments which shall be subject
to the provisions of Section 11.3.2 below), and it may not make any further use thereof.

 

    11

     

    

 

11.3.2Notwithstanding
anything to the contrary, in the event that the Transaction Consideration due to Licensor during the first year as of the Effective
Date is not duly paid by Licensee, in addition to the Termination Effect, all intellectual property under the License, including
any Developments (as defined above), shall be licensed to Licensor by Licensee, and licensor shall pay to Licensee the applicable
Special Consideration, mutatis mutandis.

 

11.3.3Notwithstanding
anything to the contrary herein, in the event that Licensee terminates this Agreement in accordance with Section 11.2.3, Licensor
shall transfer and assign to Licensee all rights and title in and to the Licensed Technology, to the extent legally permissible,
for no consideration.

 

11.3.4Accruing
Obligations. Termination or expiration of this Agreement shall not relieve the parties of obligations accruing prior to
such termination or expiration, including obligations to pay amounts accruing hereunder up to the date of termination or expiration.
Licensor shall refund all unspent payments in accordance with the respective Development Plan attributable to any payment previously
made by Licensee to Licensor. Alternatively, Licensee shall be entitled to credit such refundable amounts against payments due
from Licensee to Licensor in connection with this Agreement.

 

The parties shall
work together in good faith to secure an orderly wind-down of termination that will minimize the costs to the Parties of such wind-down.

 

11.3.5Survival.
The Parties’ respective rights, obligations and duties under Sections 7 through 10 and 11.3, as well as any rights, obligations
and duties which by their nature extend beyond the expiration or termination of this Agreement, shall survive any expiration or
termination of this Agreement.

 

		12.	MISCELLANEOUS
                                         PROVISIONS

 

		12.1.	Governing Law. It is expressly agreed that the validity, performance and construction
of this Agreement shall be governed by the laws of the State of Israel. Any dispute arising under or in relation to this Agreement
shall be resolved in the competent court for the Tel Aviv-Jaffa district, and each of the parties hereby submits irrevocably to
the jurisdiction of such court.

 

		12.2.	Assignment.

 

12.2.1None of
the rights, privileges, or obligations set forth in, arising under, or created by this Agreement may be assigned or transferred
without the prior consent in writing of each party to this Agreement, except by the Licensee in the event of an M&A Transaction,
provided, however that the assignee agrees in writing to be bound by the terms hereof.

 

12.2.2Notwithstanding
the above, Licensor may assign the Initial Option and/or the Additional Option (or any part thereof) to a third party, provided,
however, that such third party shall exercise such assigned Initial Option and/or the Additional Option (or any part thereof) in
full (the "Assignee" and the "Assigned Option"). In the event that the Assigned Option
would not entitle the Assignee, upon exercise, to 25% or more of the voting rights in the Licensee, the assignment shall be subject
to the prior written approval of the Licensee's management.

 

    12

     

    

 

In the event that
the Assigned Option would entitle the Assignee, upon exercise, to 25% or more of the voting rights in the Licensee, the assignment
shall be subject to the prior written approval of the Licensee's Audit Committee.

 

For the purpose of
calculating the percentage of the voting threshold herein, the voting rights shall be calculated aggregately based on any voting
rights in the Licensee held by such Assignee immediately prior to such assignment in addition to any prior Assigned Option(s) granted
to any third party under this provision.

 

Licensor is not entitled
to assign any provision or right provided hereunder other than as set above.

 

12.2.3Any assignment
in accordance with this Section 11 shall be subject to any additional approvals and procedures as prescribed under the applicable
law and regulation.

 

		12.3.	Invoices. All payments due according to this Agreement shall be paid against applicable
invoice, to be submitted to the Licensee at least fourteen (14) days before such payment is due.

 

		12.4.	Value Added Tax. All amounts to be paid pursuant to this Agreement are exclusive
of Value Added Tax; Licensor shall add Value Added Tax,
as required by law, to all such amounts. If Licensee is required is required to withhold any amounts payable hereunder to Licensor
due to applicable law, such amount will be deducted from the payment to be made by Licensee and remitted to the appropriate taxing
authority for the benefit of Licensor. Licensee will cooperate with Licensor to provide information and records as Licensor may
require in connection with any application by Licensor to the tax authorities.

 

		12.5.	Expenses. Each Party shall bear its own expenses involved in the making of this Agreement

 

		12.6.	Severability. In the event that any term or provision of this Agreement shall be
unenforceable or invalid under any applicable law or be so held by applicable court decision, such unenforceability or invalidity
shall not render this Agreement unenforceable or invalid as a whole, and, in such event, such provision shall be changed and interpreted
so as to best accomplish the objectives of such unenforceable or invalid provision within the limits of applicable law or applicable
court decisions.

 

		12.7.	Notices. All notices or other communications required or permitted to be given pursuant
to this Agreement shall be in writing and shall be telecopies or mailed by registered or certified airmail, postage prepaid, or
otherwise delivered by hand or by messenger, to both the Licensor and Licensee, according to their registered addresses, or such
other address with respect to a Party as such party shall notify the other Party. Any notice sent in accordance with this Section
11.6 shall be effective: (i) if mailed, seven (7) business days after mailing; (ii) if sent by messenger, upon delivery; and (iii)
if sent via telecopies, upon transmission and electronic confirmation of receipt or (if transmitted and received on a non-business
day) on the first business day following transmission and electronic confirmation of receipt.

 

    13

     

    

 

		12.8.	Waiver and Survival. No term or provision hereof shall be deemed waived and no breach
hereof shall be deemed consented to or excused, unless such waiver, consent or excuse shall be expressed in writing and signed
by the party claimed to have so waived, consented or excused. Should either party consent, waive or excuse a breach by the other
party, such consent, waiver or excuse shall not constitute a consent to, waiver of, or excuse of any other or subsequent breach
whether or not of the same kind as the original breach.

 

		12.9.	Force Majeure. Neither Party shall be responsible for any delay or failure in performance
hereunder caused in whole or in part by fires, strikes, floods, embargoes, acts of sabotage, riots, civil unrest, accidents, delays
of carriers or suppliers, voluntary or mandatory compliance with any governmental act, regulation or request, acts of God or by
public enemy, or other acts or omissions occurring without the fault or negligence of the Parties.

 

		12.10.	Entire Agreement and Amendment. This Agreement, along with the exhibits annexed hereto,
sets forth the entire agreement and understanding of the parties with respect to the subject matter hereof, and contains all of
the promises, undertakings and other representations made by the Parties to each other prior to its execution, all of which are
merged herein. This Agreement supersedes and shall prevail over all prior oral and written agreements and understandings with respect
to the subject matter hereof. Each party acknowledges that it is not entering into this Agreement on the basis of any representations
not expressly contained herein. No subsequent amendment to this Agreement will be of any effect unless executed in writing and
signed by both of the Parties.

 

		12.11.	Due Execution. Subject to Section 2.4 above, each Party represents that the execution,
delivery and performance by such party of this Agreement and all transactions contemplated hereby have been duly and validly authorized
by all necessary actions on the part of such Party and that neither this Agreement nor the performance hereunder by either Party
is in violation of such Party’s obligations, contractual or otherwise, to any government, agency or any other Party or Parties.

 

		12.12.	Headings. The headings and captions contained in this Agreement shall not be considered
to be a part hereof for purposes of interpreting same, but are for convenience only.

 

		12.13.	Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together shall constitute one and the same Agreement.

 

    14

     

    

 

IN WITNESS WHEREOF, the parties have caused
this Agreement (which includes the clauses on the attached schedules or exhibits) to be executed by their duly authorized representatives
as of the date first above written.

 

	THERAPIX BIOSCIENCES LTD.

	 	DEKEL PHARMACEUTICALS LTD.
	 	 	 	 
	/s/ Zohar Heiblum	/s/ Amit Berger	 	/s/ Ascher Shmulewitz
	Signature (By)	 	Signature (By)
	 	 	 	 
	Zohar Heiblum	Amit Berger	 	Ascher Shmulewitz
	Name	 	Name
	 	 	 	 
	Director	Director	 	Chairman
	Title	 	Title
	 	 	 	 
	20 May 2015	20 May 2015	 	20
    May 2015
	Date	 	Date

 

    

     

    

 

Exhibit A

 

Patents and Patent Applications

 

[THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT
TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION]

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