Document:

Exhibit 10.5

 

FOURTH AMENDMENT TO
 JOINT EXPLORATION AND DEVELOPMENT AGREEMENT

 

This Fourth Amendment to Joint Exploration and Development Agreement (this “Fourth Amendment”) is dated March 7, 2014, by and among EOG RESOURCES, INC. (“EOG”), whose address is 6101 S. Broadway, Suite 200, Tyler, Texas 75703, and ZAZA ENERGY CORPORATION (“ZaZa Corporation”), a Delaware corporation, and ZAZA ENERGY LLC, a Texas limited liability company (“ZaZa LLC” and, together with ZaZa Corporation, “ZaZa”), each having an address of 1301 McKinney, Suite 2800, Houston, Texas 77010.  ZaZa and EOG are sometimes herein referred to collectively as the “Parties.”

 

RECITALS

 

A.                                    On March 21, 2013, the Parties entered into that certain Joint Exploration and Development Agreement (the “Original Agreement”), dated effective as of March 1, 2013 (the “Effective Date”), as amended by that certain First Amendment to Joint Exploration and Development Agreement dated effective March 1, 2013 (the “First Amendment”), and amended further by that certain Second Amendment and First Restatement of Joint Exploration and Development Agreement dated effective March 1, 2013 (the “Second Amendment”), and amended further by that certain Third Amendment and Second Restatement of Joint Exploration and Development Agreement dated effective March 1, 2013 (the “Third Amendment”).  The Original Agreement, as amended by the First Amendment, Second Amendment, and Third Amendment is hereinafter referred to as the “Agreement.”  Capitalized terms used but not defined herein shall have the meanings prescribed for such terms in the Agreement.

 

B.                                    Pursuant to that certain Quitclaim Assignment and Bill of Sale dated effective December 1, 2013, by and between Range and EOG, EOG acquired all of Range’s interests in the Range-ZaZa Leasehold (the “Range Acquisition”).

 

C.                                    EOG desires to acquire from ZaZa, and ZaZa desires to assign to EOG, EOG’s Participation Interest share of the Excess Leases.

 

D.                                    The Parties desire to amend the Agreement as set forth herein to provide for the rights and obligations of the parties following the Range Acquisition and regarding the Excess Leases (as defined below).

 

AGREEMENT

 

For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree that the Agreement shall be amended as follows:

 

1.                                      Section 2.1 of the Agreement is hereby deleted in its entirety and replaced with the following:

 

[*]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

 

2.1                               Designation of Area of Mutual Interest.  Subject to the exceptions set forth in Section 2.3 and Section 2.12, the Parties hereby establish an area of mutual interest consisting of all lands within the Project Area (the “AMI”).

 

2.                                      Section 2.2.1 of the Agreement is hereby deleted in its entirety and replaced with the following:

 

2.2.1                     Except for ZaZa’s obligation to deliver the Third Closing Lease Amendments pursuant to Section 3.11.1, from and after the execution date of the Third Amendment until the termination of the AMI, EOG shall have the exclusive right to acquire Oil and Gas Interests within the AMI.

 

3.                                      Article 2 of the Agreement, “Area of Mutual Interest,” is hereby supplemented to add the following as Section 2.12:

 

2.12                        Waiver of Claims related to Range Acquisition.  Each of ZaZa Corporation and ZaZa LLC hereby releases, acquits and forever discharges EOG and its officers, directors, employees, agents, contractors, subcontractors, partners, representatives, insurers, affiliates, heirs and assigns (collectively “Released Parties”), from and against any and all existing and future claims, demands, losses, damages, liability, and causes of action of any kind whatsoever associated with or related to the Range Acquisition and/or the rights or interests owned by Range and conveyed to EOG pursuant to the Range Acquisition, including any working interests or overriding royalty interests in the Range-ZaZa Leasehold or rights or interests in the Range-ZaZa AMI acquired by EOG thereunder, whether arising pursuant to the Range-ZaZa AMI, the Range-ZaZa JV Agreement, or otherwise, including breach of contract, breach of express warranties, breach of implied warranties, exemplary damages, statutory damages and attorneys’ fees.  Further, each of ZaZa Corporation and ZaZa LLC agrees not to bring or cause to be brought any action against the Released Parties for any damages, injuries, or loss of any nature suffered by ZaZa Corporation, ZaZa LLC, and their respective heirs, successors, assigns, agents, representatives, tenants, lessees, invitees, licensees, and contractors, including but not limited to, actual, direct, incidental, exemplary, statutory and consequential damages, arising out of, occasioned by, or attributable, in whole or in part, directly or indirectly, to the Range Acquisition and/or rights or interests owned by Range and conveyed to EOG pursuant to the Range Acquisition, whether now in existence or that arise in the future.

 

4.                                      Article 2 of the Agreement, “Area of Mutual Interest,” is hereby supplemented to add the following as Section 2.13:

 

2.13                        Termination of Range-ZaZa JV Agreement.  Effective as of the date of the Fourth Amendment, the Parties hereby terminate the Range-ZaZa JV Agreement and the Range-ZaZa JOA for all purposes, including the Range-ZaZa AMI.  From and after the termination of the Range-ZaZa JV Agreement and the Range-ZaZa AMI, (a) the lands previously covered by the Range-ZaZa AMI (including any expansions thereof, as of the date of the Fourth Amendment, pursuant to Section

 

[*]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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5.0(b) of the Range-ZaZa JV Agreement) shall continue to be part of the AMI, subject to the terms and provisions of this Agreement, (b) Section 2.4.1 and Section 2.5.2 shall cease to be of force and effect, and (c) for all Acquired Interests, the Participation Interests of the Parties shall be as described in Section 2.5.1.  Notwithstanding the preceding sentence, (i) the JOA will govern all operations on leases within the former Range-ZaZa AMI; and (ii) in the event any Oil and Gas Interest has been acquired, directly or indirectly (including the option or right to acquire), by EOG prior to the date of the Fourth Amendment, and such Oil and Gas Interest lies partially within and partially outside of the Range-ZaZa AMI, then EOG’s subsequent offer to ZaZa to participate in such Oil and Gas Interest pursuant to the terms of this Agreement shall incorporate the entirety of such Oil and Gas Interest and, if ZaZa participates in the acquisition of such Oil and Gas Interest, then (A) the outside boundaries of the AMI shall be expanded to include the entirety of the Oil and Gas Interest acquired, (B) the JOA shall be amended to expand the “Contract Area” (as defined in the JOA) to include the entirety of the Oil and Gas Interest acquired, and (C) the Parties shall execute and file for record a Memorandum of such amendment to the JOA describing such the expansion of the “Contract Area” (as defined in the JOA).

 

5.                                      Section 3.4 of the Agreement is hereby deleted in its entirety and replaced with the following:

 

3.4                               Excess Leases.  All ZaZa Leases within the Project Area in which EOG did not acquire an undivided interest at the First Closing or the Second Closing are referred to herein, collectively, as the “Excess Leases.”  ZaZa represents and warrants, as of the date of the Third Closing, that it has obtained all necessary waivers of Preferential Rights and Required Consents applicable to the Excess Leases.

 

6.                                      Article 3 of the Agreement, “Earning Phases, Commitment Wells and Earning Provisions,” is hereby supplemented to add the following as Section 3.11:

 

3.11                        Third Closing.  The Third Closing shall take place at 10:00 a.m. Central Time on March 18, 2014, at the offices of Baker & McKenzie LLP, 700 Louisiana, Suite 3000, Houston, Texas 77002, or in such other manner or location as may be mutually agreed.

 

3.11.1              Third Closing Lease Amendments.

 

Notwithstanding EOG’s exclusive right to lease in Section 2.2.1, at the Third Closing, ZaZa LLC shall deliver to EOG an undivided seventy-five percent (75%) of 8/8ths interest in the lease extension amendments attached hereto as Exhibit “K”, covering certain Excess Leases (the “Third Closing Lease Amendments”).  On or before August 4, 2014, ZaZa shall pay 100% of the [*] per acre extension payments pursuant to the Third Closing Lease Amendments.

 

3.11.2              Assignment of Excess Leases.

 

[*]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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In consideration for [*] per Net Acre covered by the Excess Leases (the “Excess Lease Consideration”), which shall be paid by EOG to ZaZa partially in the form of the Excess Lease Cash Consideration (as defined in Section 3.11.3) and partially in the form of the Excess Lease Carry Obligation, at the Third Closing, ZaZa shall deliver to EOG an assignment substantially in the form attached as Exhibit “G-2”, assigning to EOG an undivided seventy-five percent (75%) of 8/8ths interest (except that, with respect only to Range-ZaZa Leasehold, the assignment shall be an undivided fifty percent (50%) of 8/8ths interest) in the Excess Leases, and all associated rights therewith.  For avoidance of doubt, EOG shall have no reassignment obligation with respect to the Excess Leases, regardless whether EOG fully satisfies its Commitment Well requirements with respect to Phase II.

 

3.11.3              Excess Lease Cash Consideration.

 

At the Third Closing, EOG shall remit to ZaZa $4,700,000.00 (the “Excess Lease Cash Consideration”), in cash (U.S. dollars) by federal funds wire transfer to an account designated by ZaZa.

 

7.                                      Article 3 of the Agreement, “Earning Phases, Commitment Wells and Earning Provisions,” is hereby supplemented to add the following as Section 3.12:

 

3.12                        Test Obligation Wells. EOG shall commence operations for drilling, on any jointly owned leasehold within the Project Area selected by EOG after consultation with ZaZa, into any zone or formation selected by EOG after consultation with ZaZa, (a) one (1) test well on or before July 1, 2014, and (b) if the Excess Lease Carry Obligation is not exhausted as of December 31, 2014, a second test well on or before December 31, 2014, (collectively, the “Test Obligation Wells”).  For purposes of clarity, the Test Obligation Wells are not “Commitment Wells,” as that term is used in this Agreement.

 

8.                                      Article 3 of the Agreement, “Earning Phases, Commitment Wells and Earning Provisions,” is hereby supplemented to add the following as Section 3.13:

 

3.13                        Additional Carried Interest.  Beginning on the earlier of May 1, 2014 or the exhaustion of EOG’s Cash Carry Obligation under Section 3.3, EOG shall carry ZaZa’s interest in the Costs through Completion on the Test Obligation Wells until the carry amount reaches a total amount equal to the difference between the Excess Lease Consideration and the Excess Lease Cash Consideration, which is estimated to be $9,130,230.00 (the “Excess Lease Carry Obligation”); provided that the Excess Lease Carry Obligation may also be applied, at ZaZa’s election, to any other costs related to the Parties’ activities under this Agreement, including drilling and operational costs and costs related to the acquisition and delivery of the Third Closing Lease Amendments.  On July 1, 2015, if EOG has not exhausted the Excess Lease Carry Obligation, then EOG shall remit payment to ZaZa, in cash (U.S. dollars) by federal funds wire transfer to an account designated by ZaZa, the balance of the Excess Lease Carry Obligation.  If such

 

[*]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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payment is made by EOG, then EOG’s cash carry obligations under this Agreement shall be deemed satisfied and the costs of all subsequent operations shall be borne by the Parties in accordance with their respective Participation Interests.

 

9.                                      The last sentence in Section 5.4(c) of the Agreement is hereby deleted in its entirety and replaced with the following:

 

From and after January 1, 2014, EOG shall make all delay rental payments, shut-in well payments, extension payments and/or renewal leases, and all other payments (but excluding all option to lease payments), that are required to maintain the ZaZa Leases in full force and effect within the Project Area, whether inside or outside of the currently elected Phase(s), and ZaZa shall reimburse EOG for ZaZa’s Participation Interest share thereof; provided, however, that EOG’s obligation to make such payments shall cease for any ZaZa Lease that EOG is required to reassign to ZaZa pursuant to Section 5.3(e) upon such reassignment to ZaZa.

 

10.                               In Appendix 2 to the Agreement, “Definitions,” the following defined terms shall be amended and restated in their entirety as follows:

 

“Agreement” means the Original Agreement, as amended by the First Amendment, Second Amendment, Third Amendment, and Fourth Amendment.

 

“Excess Lease Consideration” has the meaning assigned to such term in Section 3.11.2.

 

“Third Closing” means the closing of those certain Transactions related to payment of the Third Closing Cash Consideration, the delivery of the Third Closing Lease Amendments, and the assignment of the Excess Leases.

 

11.                               Appendix 2 to the Agreement is hereby amended to delete the definition of “Assigned Excess Leases” in its entirety.

 

12.                               Appendix 2 to the Agreement is hereby supplemented to include the following definitions:

 

“Excess Lease Carry Obligation” has the meaning assigned to such term in Section 3.13.

 

“Excess Lease Cash Consideration” has the meaning assigned to such term in Section 3.11.3.

 

“Excess Leases” has the meaning assigned to such term in Section 3.4.

 

“Fourth Amendment” means that certain Fourth Amendment to Joint Exploration and Development Agreement dated [      ], by and among the Parties.

 

[*]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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“Range Acquisition” means EOG’s acquisition of all of Range’s interests in the Range-ZaZa Leasehold, pursuant to that certain Quitclaim Assignment and Bill of Sale dated effective December 1, 2013, by and between Range and EOG.

 

“Released Parties” has the meaning assigned to such term in Section 2.12.

 

“Test Obligation Wells” has the meaning assigned to such term in Section 3.12.

 

“Third Closing Lease Amendments” has the meaning assigned to such term in Section 3.11.1.

 

Except as expressly set forth herein, all terms and conditions of the Agreement shall remain unchanged and in full force and effect.  The Parties hereby ratify and confirm the Agreement as amended herein.

 

[Signature page follows]

 

[*]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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IN WITNESS WHEREOF, the Parties have executed and delivered this Fourth Amendment as of the date first written above.

 

 

	
ZaZa Energy Corporation
    	
 
    	
ZaZa Energy LLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Todd Brooks
    	
 
    	
By:
    	
/s/ Todd Brooks
    
	
 
    	
Todd Brooks
    	
 
    	
 
    	
Todd Brooks
    
	
 
    	
President & CEO
    	
 
    	
 
    	
President & CEO
    
	
 
    	
 
    	
 
    
	
Date: 3/6/14
    	
 
    	
Date: 3/6/14
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EOG Resources, Inc.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Ernest J. LaFleure
    	
 
    	
 
    
	
 
    	
Ernest J. LaFleure
    	
 
    	
 
    
	
 
    	
Vice President and GM
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date: 3/7/2014
    	
 
    	
 
    

 

Signature Page to Fourth Amendment

 

 

Exhibit “K”

 

[*]

 

[*]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.Exhibit 10.6

 

EXECUTION VERSION

 

AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT

 

This AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT (this “Amendment”), is made and entered into this 12th day of March, 2014, by and among ZAZA ENERGY CORPORATION, a Delaware corporation (the “Company”), and each of the holders of Securities (as defined in the Securities Purchase Agreement, as defined below) that is a signatory to this Amendment.

 

RECITALS

 

1.                                      The Company and the holders of the Securities are parties to that certain Securities Purchase Agreement dated February 21, 2012, as amended by (a) a letter agreement dated as of March 1, 2012, (b) a letter agreement dated as of March 22, 2012, (c) that certain Waiver and Amendment No. 1 to Securities Purchase Agreement dated as of June 8, 2012, as amended by that certain letter agreement dated as of June 28, 2012 (the “First Amendment”), (d) that certain Waiver and Amendment No. 2 to Securities Purchase Agreement dated as of July 25, 2012, (e) that certain Waiver and Amendment No. 3 to Securities Purchase Agreement dated as of October 16, 2012 (the “Third Amendment”), (f) that certain Amendment No. 4 to Securities Purchase Agreement dated as of December 17, 2012 and (g) that certain Amendment No. 5 to Securities Purchase Agreement and Amendment No. 1 to Sanchez Consent dated as of March 28, 2013 (as amended, the “Existing Securities Purchase Agreement”; and as amended by this Amendment and as may be further amended, restated, supplemented or otherwise modified from time to time, the “Securities Purchase Agreement”).

 

2.                                      Pursuant to the Existing Securities Purchase Agreement, the Company issued, and the holders of Notes purchased, (a) the Company’s 8.00% Senior Secured Notes due February 21, 2017, in the aggregate principal amount of $100,000,000 (collectively, the “Notes”) and (b) the Company’s warrants to purchase 26,315,789 shares of the Company’s Common Stock (as adjusted pursuant to the terms thereof, the “Warrants”).

 

3.                                      The Company desires to amend certain provisions of the Existing Securities Purchase Agreement.

 

4.                                      The holders of the Securities have agreed to make such amendments, in each case subject to the terms and conditions set forth in this Amendment.

 

AGREEMENT

 

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby covenant and agree to be bound as follows:

 

Section 1.                                          Capitalized Terms. Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Securities Purchase Agreement (including, for the avoidance of doubt, any terms defined herein as set forth on Exhibit A hereto), unless the context otherwise requires.

 

 

Section 2.                                          Amendments to Existing Securities Purchase Agreement. Subject to the satisfaction of the conditions precedent set forth in Section 3, the Existing Securities Purchase Agreement is hereby amended in the manner specified in Exhibit A hereto. Such amendments are referred to herein collectively as the “Amendments.”

 

Section 3.                                          Effectiveness of Amendments. The Amendments shall become effective upon satisfaction (or waiver by the Required Holders) of all of the following conditions:

 

(a)                                 Amendment. Execution and delivery of this Amendment by the Company and each of the Required Holders, and execution and delivery of the Guarantor Acknowledgement attached hereto by the Guarantors.

 

(b)                                 Representations and Warranties.  The representations and warranties in Section 4 shall be true and correct in all respects on the date hereof.

 

(c)                                  Expenses.   The Company shall have paid the reasonable fees and disbursements of the holders of the Securities’ special counsel in accordance with Section  8 below.

 

Section 4.                                          Representations and Warranties.           To induce the holders of the Securities to enter into this Amendment and to consent to the Amendments, the Company hereby represents and warrants to each of the holders of Securities that:

 

(a)                                 the execution, delivery and performance of this Amendment have been duly authorized by all requisite corporate authority or other action on the part of the Company, this Amendment has been duly executed and delivered by the Company, and this Amendment constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its terms;

 

(b)                                 each of the representations and warranties set forth in the Securities Purchase Agreement and the other Transaction Documents are true and correct in all material respects as of the date hereof, except (i) to the extent that such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date), (ii) that the financial statements referred to in Paragraph 9C shall be deemed to refer to the financial statements most recently delivered by the Company pursuant to Paragraph 6A(i) or 6A(ii), and (iii) as disclosed in the First Amendment or the Third Amendment;

 

(c)                                  no Default or Event of Default has occurred and is continuing as of the date hereof; and

 

(d)                                 no events have taken place and no circumstances exist at the date hereof which would give any Credit Party a basis to assert a defense, offset or counterclaim to any claim of any holder of a Security with respect to the obligations of the Credit Parties.

 

Section 5.                                          Transaction Document.                This Amendment shall be deemed to constitute a Transaction Document for all purposes under the Securities Purchase Agreement.

 

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Section 6.                                          Effect of Amendment. Except as set forth expressly herein, all terms of the Securities Purchase Agreement shall be and remain in full force and effect. The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the holders of Notes under the Securities Purchase Agreement, nor constitute a waiver of any provision of the Securities Purchase Agreement, except as expressly provided herein. Any and all notices, requests, certificates and other instruments executed and delivered after the execution and delivery of this Amendment may refer to the Securities Purchase Agreement without making specific reference to this Amendment, but nevertheless all such references shall include this Amendment unless the context otherwise requires.

 

Section 7.                                          Release.

 

(a)                                 In consideration of the agreements of the holders of Securities contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Credit Party, on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges each holder of Securities, and its successors and assigns, and its present and former shareholders, partners, members, managers, consultants, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives, and all persons acting by, through, under or in concert with any of them (each holder of Securities and all such other Persons being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”) of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, recoupment, rights of setoff, demands and liabilities whatsoever (individually, a “Claim” and collectively, “Claims”) of every name and nature, known or unknown, contingent or mature, suspected or unsuspected, both at law and in equity, which any Credit Party or any of its respective successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this Amendment, including, without limitation, for or on account of, or in relation to, or in any way in connection with the Securities Purchase Agreement, or any of the other Transaction Documents or transactions thereunder or related thereto.

 

(b)                                 Each Credit Party understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

 

(c)                                  Each Credit Party agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above.

 

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(d)                                 In entering into this Amendment, each Credit Party has consulted with, and has been represented by, legal counsel and expressly disclaims any reliance on any representations, acts or omissions by any of the Releasees and hereby agrees and acknowledges that the validity and effectiveness of the release set forth above does not depend in any way on any such representations, acts and/or omissions or the accuracy, completeness or validity hereof. The provisions of this Section 7 shall survive the termination of this Amendment and the other Transaction Documents and the payment in full of the Notes.

 

(e)                                  Each Credit Party acknowledges and agrees that the release set forth above may not be changed, amended, waived, discharged or terminated orally.

 

Section 8.                                          Fees and Expenses; Indemnification. Whether or not the Amendments become effective, the Company agrees to pay on demand all reasonable costs and expenses of the holders of the Securities (including the reasonable fees and expenses of the holders of the Securities’ special counsel) in connection with the preparation, negotiation, execution and delivery of this Amendment as provided in Paragraph 13B(1) of the Securities Purchase Agreement. Nothing in this Section 8 shall limit the Company’s obligations pursuant to Paragraphs 13B(1) and 13B(2) of the Securities Purchase Agreement.

 

Section 9.                                          Governing Law. THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE INTERNAL LAWS OF THE STATE OF NEW YORK, EXCLUDING CHOICE-OF-LAW PRINCIPLES OF THE LAWS OF SUCH STATE THAT WOULD PERMIT THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

 

Section 10.                                   Severability. Whenever possible, each provision of this Amendment and any other statement, instrument or transaction contemplated hereby or thereby or relating hereto or thereto shall be interpreted in such manner as to be effective, valid and enforceable under the applicable law of any jurisdiction, but, if any provision of this Amendment or any other statement, instrument or transaction contemplated hereby or thereby or relating hereto or thereto shall be held to be prohibited, invalid or unenforceable under the applicable law, such provision shall be ineffective in such jurisdiction only to the extent of such prohibition, invalidity or unenforceability, without invalidating or rendering unenforceable the remainder of such provision or the remaining provisions of this Amendment or any other statement, instrument or transaction contemplated hereby or thereby or relating hereto or thereto in such jurisdiction, or affecting the effectiveness, validity or enforceability of such provision in any other jurisdiction.

 

Section 11.                                   Counterparts. This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, each of which shall be deemed an original and all of which, taken together, shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile transmission or by electronic mail in pdf form shall be as effective as delivery of a manually executed counterpart hereof.

 

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Section 12.                                   Binding Nature. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

Section 13.                                   Entire Understanding. The Existing Securities Purchase Agreement, together with this Amendment, set forth the entire understanding of the parties with respect to the matters set forth herein, and shall supersede any prior negotiations or agreements, whether written or oral, with respect thereto.

 

Section 14.                                   Headings. The headings of the sections of this Amendment are inserted for convenience only and shall not be deemed to constitute a part of this Amendment.

 

[The remainder of this page is intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date and year first above written.

 

	
 
    	
ZAZA ENERGY CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Todd A. Brooks
    
	
 
    	
Name:   
    	
Todd   A. Brooks
    
	
 
    	
Title:   
    	
President   and Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MSDC ZEC INVESTMENTS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Marcello Liguori
    
	
 
    	
Name:   
    	
Marcello   Liguori
    
	
 
    	
Title:   
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SENATOR SIDECAR MASTER FUND LP
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Senator   Investment Group LP,
    
	
 
    	
 
    	
its   investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Evan Gartenlaub
    
	
 
    	
Name:   
    	
Evan   Gartenlaub
    
	
 
    	
Title:   
    	
General   Counsel and
    
	
 
    	
 
    	
Chief   Compliance Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
O-CAP   OFFSHORE MASTER FUND, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jared Sturdtrane
    
	
 
    	
Name:
    	
Jared   Sturdtrane
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
O-CAP   PA1lTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jared Sturdtrane
    
	
 
    	
Name:
    	
Jared   Sturdtrane
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CAPITAL   VENTURES INTERNATIONAL
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Martin Kobinger
    
	
 
    	
Name:
    	
Martin   Kobinger
    
	
 
    	
Title:
    	
Investment   Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BLACKWELL PARTNERS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jannine Lall
    
	
 
    	
Name:   
    	
Jannine   Lall
    
	
 
    	
Title:   
    	
Assistant   Treasurer, DUMAC, Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BLACKWELL PARTNERS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Geoffrey D. Keegan
    
	
 
    	
Name:   
    	
Geoffrey   D. Keegan
    
	
 
    	
Title:   
    	
Investment   Manager, DUMAC, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PERMAL   TALARA LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deborah Watson
    
	
 
    	
Name:
    	
Deborah   Watson
    
	
 
    	
Title:
    	
Director
    
				

 

[AMENDMENT NO.6 TO SECURITIES PURCHASE AGREEMENT]

 

 

GUARANTOR ACKNOWLEDGEMENT

 

Each of the undersigned hereby acknowledges and agrees to the terms of the Amendment No. 6 to Securities Purchase Agreement, dated March 12, 2014 (the “Amendment”), including, without limitation, Section 7 of the Amendment, amending that certain Securities Purchase Agreement, dated February 21, 2012, as amended (as amended, the “Securities Purchase Agreement”), among ZaZa Energy Corporation, a Delaware corporation, and the holders of Securities party thereto. Each of the undersigned hereby confirms that the Guaranty Agreement to which the undersigned are a party remains in full force and effect after giving effect to the Amendment and continues to be the valid and binding obligation of each of the undersigned, enforceable against each of the undersigned in accordance with its terms.

 

Capitalized terms used herein but not defined are used as defined in the Securities Purchase Agreement.

 

Dated as of March 12, 2014.

 

 

	
 
    	
ZAZA HOLDINGS, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Todd A. Brooks
    
	
 
    	
Name:   
    	
Todd   A. Brooks
    
	
 
    	
Title:   
    	
President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ZAZA ENERGY, LLC,
    
	
 
    	
a   Texas limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Todd A. Brooks
    
	
 
    	
Name:   
    	
Todd   A. Brooks
    
	
 
    	
Title:   
    	
President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TOREADOR RESOURCES CORPORATION,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott Gaille
    
	
 
    	
Name:   
    	
Scott   Gaille
    
	
 
    	
Title:   
    	
Chief   Complience Officer & General Counsel
    

 

[GUARANTOR ACKNOWLEDGEMENT]

 

 

	
 
    	
ZAZA ENERGY DEVELOPMENT, LLC,
    
	
 
    	
a   Texas limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Todd A. Brooks
    
	
 
    	
Name:   
    	
Todd   A. Brooks
    
	
 
    	
Title:   
    	
President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ZAZA PETROLEUM MANAGEMENT, LLC,
    
	
 
    	
a   Texas limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Todd A. Brooks
    
	
 
    	
Name:   
    	
Todd   A. Brooks
    
	
 
    	
Title:   
    	
President   and Chief Executive Officer
    

 

[GUARANTOR ACKNOWLEDGEMENT]

 

 

Exhibit A

 

Paragraph 6A(ii) — Financial Statements; Reserve Reports. Paragraph 6A of the Existing Securities Purchase Agreement is hereby amended by amending and restating clause (ii) in its entirety to read as follows:

 

“(ii) as soon as practicable and in any event within ninety (90) days after the end of each fiscal year of the Company, consolidated statements of income, cash flows and members’ equity of the Company and its Subsidiaries for such year, and a consolidated balance sheet of the Company and its Subsidiaries as at the end of such year, setting forth in each case in comparative form corresponding figures from the preceding annual audit, all in reasonable detail and satisfactory in form to the Required Holder(s) and reported on by a firm of independent public accountants of recognized national standing, whose report shall be without exception as to the scope of the audit and shall not be subject to any “going concern” or like qualification or exception (other than with respect to the fiscal years ended December 31, 2012 and December 31, 2013) and shall state that such consolidated financial statements present fairly, in all material respects, the financial position of the Company and its Subsidiaries in conformity with GAAP; provided that the delivery within the time period specified above of the Company’s Form 10-K for such fiscal year (together with the Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in accordance with the requirements therefor and filed with the SEC, together with the accountant’s report described above, shall be deemed to satisfy the requirements of this paragraph 6A(ii); provided, further, that the Company shall be deemed to have made such delivery of such Form 10-K if it shall have timely made Electronic Delivery thereof, in which event the Company shall separately deliver, concurrently with such Electronic Delivery;”

 

Exhibit A-1

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