Exhibit 10.1

 

FIRST AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT

 

THIS FIRST AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY
AGREEMENT (this “Amendment”), dated as of April 6, 2015, is entered into by and
among the Lenders signatory hereto, PNC BANK, NATIONAL ASSOCIATION, in its
capacity as agent for the Lenders (in such capacity, the “Agent”), EMERGE ENERGY
SERVICES LP, a Delaware limited partnership (the “Parent Guarantor”), and each
of the undersigned Borrowers.  Terms used herein without definition shall have
the meanings ascribed to them in the Credit Agreement defined below.

 

RECITALS

 

A.                                    The Lenders, Agent, Parent Guarantor and
Borrowers have previously entered into that certain Amended and Restated
Revolving Credit and Security Agreement, dated as of June 27, 2014 (as amended,
modified and supplemented from time to time, the “Credit Agreement”), pursuant
to which the Lenders have made certain loans and financial accommodations
available to Borrowers.

 

B.                                    The Required Lenders, Agent, Parent
Guarantor and Borrowers, pursuant to Section 16.2(b) of the Credit Agreement,
now wish to amend the Credit Agreement on the terms and conditions set forth
herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

 

1.                                      Amendment to Credit Agreement. 
Section 6.5(b) of the Credit Agreement is hereby amended and restated to read in
its entirety as follows:

 

“Total Leverage Ratio.  Maintain, (i) when measured as of the last day of each
fiscal quarter ending after the Closing Date but prior to June 30, 2015, for the
four fiscal quarter period then ended, a Total Leverage Ratio of not greater
than (x) 3.00:1.00 or (y) with respect to each such measurement occurring during
the first two full fiscal quarters following a Permitted Acquisition for total
consideration (as described in clause (vi) of the definition of Permitted
Acquisition) of $30,000,000 or more, 3.50:1.00, and (ii) when measured as of the
last day of each fiscal quarter ending on or after June 30, 2015, for the four
fiscal quarter period then ended, a Total Leverage Ratio of not greater than
3.50:1.00.”

 

2.                                      Effectiveness of this Amendment.  The
following conditions shall have been satisfied, as determined by Agent, before
this Amendment is effective:

 

(a)                                 Agent shall have received this Amendment,
fully executed by each Credit Party, Agent and Lenders constituting Required
Lenders;

 

(b)                                 Each of the representations and warranties
made by any Credit Party in or pursuant to this Amendment, the Credit Agreement
and the Other Documents shall be true and correct in all material respects (or,
if such representation and warranty is, by its terms, limited by materiality
(including a Material Adverse Effect), then such representation and warranty
shall be true in all

 

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respects) on and as of the date hereof as if made on and as of the date hereof
(except to the extent any such representation or warranty specifically relates
to a certain prior date); and

 

(c)                                  The Parent Guarantor shall have paid to the
Agent for the account of each Applicable Lender (as defined below) a consent fee
equal to 0.10% of such Applicable Lender’s Commitment as of the date hereof.
“Applicable Lender” shall mean each Lender that has executed and delivered to
the Agent its signature page to this Amendment prior to 12:00 noon, New York
City time, on April 3, 2015 or such later date and time specified by the Parent
Guarantor and notified in writing to the Lenders by the Agent (the “Consent
Deadline”).

 

(d)                                 All fees required to be paid pursuant to the
Fee Letter, dated as of March 25, 2015, by and among the Parent Guarantor, the
Agent and PNC Capital Markets LLC, shall have been paid in full.

 

(e)                                  All other documents and legal matters in
connection with the transactions contemplated by this Amendment shall have been
delivered or executed or recorded, as required by Agent.

 

3.                                      Representations and Warranties.  Each
Credit Party represents and warrants as follows:

 

(a)                                 Authority.  Such Credit Party has the
requisite corporate power and authority to execute and deliver this Amendment,
and to perform its obligations hereunder and under the Other Documents (as
amended or modified hereby) to which it is a party.  The execution, delivery and
performance by such Credit Party of this Amendment have been duly approved by
all necessary corporate action and no other corporate proceedings are necessary
to consummate such transactions.

 

(b)                                 Enforceability.  This Amendment has been
duly executed and delivered by each Credit Party.  This Amendment and each Other
Document (as amended or modified hereby) is the legal, valid and binding
obligation of each Credit Party, enforceable against each Credit Party in
accordance with its terms, and is in full force and effect.

 

(c)                                  Due Execution.  The execution, delivery and
performance of this Amendment are within the power of each Credit Party, have
been duly authorized by all necessary corporate action, have received all
necessary governmental approval, if any, and do not contravene any law or any
contractual restrictions binding on any Credit Party.

 

(d)                                 No Default.  No Event of Default or Default
has occurred and is continuing.

 

4.                                      Choice of Law.  This Amendment shall be
governed by and construed in accordance with the laws of the State of New York
applied to contracts to be performed wholly within the State of New York.

 

5.                                      Counterparts; Electronic Signatures. 
This Amendment may be executed in any number of and by different parties hereto
on separate counterparts, all of which, when so executed, shall be deemed an
original, but all such counterparts shall constitute one and the same
agreement.  Any signature delivered by a party by facsimile or other similar
method of electronic transmission shall be deemed to be an original signature
hereto.

 

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6.                                      Reference to and Effect on the Other
Documents.

 

(a)                                 Upon and after the effectiveness of this
Amendment, each reference in the Credit Agreement to “this Agreement,”
“hereunder,” “hereof” or words of like import referring to the Credit Agreement,
and each reference in the Other Documents to “the Credit Agreement,” “thereof”
or words of like import referring to the Credit Agreement, shall mean and be a
reference to the Credit Agreement as modified and amended hereby.

 

(b)                                 Except as specifically amended above, the
Credit Agreement and all Other Documents, are and shall continue to be in full
force and effect and are hereby in all respects ratified and confirmed and shall
constitute the legal, valid, binding and enforceable obligations of Borrowers to
Agent and the Lenders.

 

(c)                                  The execution, delivery and effectiveness
of this Amendment shall not, except as expressly provided herein, operate as a
waiver of any right, power or remedy of the Agent and/or the Lenders under any
of the Other Documents, nor constitute a waiver of any provision of any of the
Other Documents.

 

(d)                                 To the extent that any terms and conditions
in any of the Other Documents shall contradict or be in conflict with any terms
or conditions of the Credit Agreement, after giving effect to this Amendment,
such terms and conditions are hereby deemed modified or amended accordingly to
reflect the terms and conditions of the Credit Agreement as modified or amended
hereby.

 

7.                                      Estoppel.  To induce Agent and the
Lenders to enter into this Amendment and to continue to make advances to
Borrowers under the Credit Agreement, each Credit Party hereby acknowledges and
agrees that, as of the date hereof, there exists no right of offset, defense,
counterclaim or objection in favor of the Borrowers as against Agent or any
Lender with respect to the Obligations.

 

8.                                      Integration.  This Amendment, together
with the Credit Agreement and the Other Documents, incorporates all negotiations
of the parties hereto with respect to the subject matter hereof and is the final
expression and agreement of the parties hereto with respect to the subject
matter hereof.

 

9.                                      Severability.  If any part of this
Amendment is contrary to, prohibited by, or deemed invalid under Applicable Laws
or regulations, such provision shall be inapplicable and deemed omitted to the
extent so contrary, prohibited or invalid, but the remainder hereof shall not be
invalidated thereby and shall be given effect so far as possible.

 

10.                               Submission of Amendment.  The submission of
this Amendment to the parties or their agents or attorneys for review or
signature does not constitute a commitment by Agent or the Lenders to modify the
Credit Agreement, and this Amendment shall have no binding force or effect until
all of the conditions to the effectiveness of this Amendment have been satisfied
as set forth herein.

 

11.                               Guarantors’ Acknowledgment.  With respect to
the amendments to the Credit Agreement effected by this Amendment, each
Guarantor hereby acknowledges and agrees to this Amendment and confirms and
agrees that its Guaranty (as modified and supplemented in connection with this
Amendment) is and shall continue to be, in full force and effect and is hereby
ratified and confirmed in all respects except that, upon the effectiveness of,
and on and after the date of this Amendment, each reference in such Guaranty to
the Credit Agreement, “thereunder,” “thereof” or words of like import referring
to the Credit Agreement, shall mean and be a reference to the Credit Agreement
as amended or modified by this Amendment.  Although Agent and the Lenders have
informed the Guarantors of the matters set forth above, and each Guarantor has
acknowledged the same, each Guarantor understands and agrees

 

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that neither Agent nor any Lender has any duty under the Credit Agreement, the
Guaranty or any other agreement with any Guarantor to so notify any Guarantor or
to seek such an acknowledgement, and nothing contained herein is intended to or
shall create such a duty as to any transaction hereafter.

 

[signature pages follow]

 

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IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date
first above written.

 

PARENT GUARANTOR:

EMERGE ENERGY SERVICES LP

 

 

 

 

 

 

By:  EMERGE ENERGY SERVICES GP LLC, its General Partner

 

 

 

 

 

By:

/s/ Robert Lane

 

 

Name: Robert Lane

 

 

Title: Chief Financial Officer

 

 

BORROWERS:

EMERGE ENERGY SERVICES OPERATING LLC

 

 

 

 

 

By:

/s/ Robert Lane

 

 

Name: Robert Lane

 

 

Title: Chief Financial Officer

 

 

 

ALLIED ENERGY COMPANY LLC DIRECT FUELS LLC SUPERIOR SILICA SANDS LLC

 

 

 

 

By: EMERGE ENERGY SERVICES OPERATING LLC, its sole member

 

 

 

 

 

By:

/s/ Robert Lane

 

 

Name: Robert Lane

 

 

Title: Chief Financial Officer

 

 

 

ALLIED RENEWABLE ENERGY, LLC

 

 

 

 

By: ALLIED ENERGY COMPANY LLC, its sole member

 

 

 

 

 

By: EMERGE ENERGY SERVICES OPERATING LLC, its sole member

 

 

 

 

 

By:

/s/ Robert Lane

 

 

Name: Robert Lane

 

 

Title: Chief Financial Officer

 

Signature Page to First Amendment to Amended and Restated Revolving Credit and
Security Agreement

 

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EMERGE ENERGY DISTRIBUTORS INC.

 

 

 

 

 

By:

/s/ Warren B. Bonham

 

 

Name: Warren B. Bonham

 

 

Title: Vice President

 

Signature Page to First Amendment to Amended and Restated Revolving Credit and
Security Agreement

 

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AGENT AND LENDER:

PNC BANK, NATIONAL ASSOCIATION

 

 

 

 

 

By:

/s/ Ron Eckhoff

 

 

Name:

Ron Eckhoff

 

 

Title:

Vice President

 

Signature Page to First Amendment to Amended and Restated Revolving Credit and
Security Agreement

 

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A LENDER:

BANK OF AMERICA, N.A.

 

 

 

 

 

By:

/s/ Julie Castano

 

 

Name:

Julie Castano

 

 

Title:

SVP

 

Signature Page to First Amendment to Amended and Restated Revolving Credit and
Security Agreement

 

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A LENDER:

Wells Fargo Bank, N.A.

 

 

 

 

 

By:

/s/ Whitney Wilson

 

 

Name:

Whitney Wilson

 

 

Title:

Vice President

 

Signature Page to First Amendment to Amended and Restated Revolving Credit and
Security Agreement

 

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A LENDER:

BRANCH BANKING AND TRUST COMPANY

 

 

 

 

 

By:

/s/ Lance McKoy

 

 

Name:

Lance McKoy

 

 

Title:

Senior Vice President

 

Signature Page to First Amendment to Amended and Restated Revolving Credit and
Security Agreement

 

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A LENDER:

Santander Bank, NA

 

 

 

 

 

By:

/s/ Aidan Lanigan

 

 

Name:

Aidan Lanigan

 

 

Title:

Senior Vice President

 

 

 

 

 

 

 

By:

/s/ Alex Lurye

 

 

Name:

Alex Lurye

 

 

Title:

Vice President

 

Signature Page to First Amendment to Amended and Restated Revolving Credit and
Security Agreement

 

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A LENDER:

MORGAN STANLEY BANK, N.A.

 

 

 

 

 

By:

/s/ Dmitriy Barskiy

 

 

Name:

Dmitriy Barskiy

 

 

Title:

Authorized Signatory

 

Signature Page to First Amendment to Amended and Restated Revolving Credit and
Security Agreement

 

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A LENDER:

Royal Bank of Canada

 

 

 

 

 

By:

/s/ Jay T. Sartain

 

 

Name:

Jay T. Sartain

 

 

Title:

Authorized Signatory

 

Signature Page to First Amendment to Amended and Restated Revolving Credit and
Security Agreement

 

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A LENDER:

Amegy Bank N.A.

 

 

 

 

 

By:

/s/ Jesse Greadington, III

 

 

Name:

Jesse Greadington, III

 

 

Title:

Assistant Vice President

 

Signature Page to First Amendment to Amended and Restated Revolving Credit and
Security Agreement

 

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A LENDER:

 

Stifel Bank & Trust

 

 

 

 

 

 

 

 

By:

/s/ John H. Phillips

 

 

 

Name:

John H. Phillips

 

 

 

Title:

Executive Vice President

 

Signature Page to First Amendment to Amended and Restated Revolving Credit and
Security Agreement

 

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